Evening star., 1944-03-09
Civil Service
RetirementU Unit
aces Shake-up
Promise Follows
Charges Of Delay
In Handling Work
BY DON S. WARREN.

Reorganization of the staff and
a revision of methods in the Re-
tirement Division has been promised
by the Civil Service Commission as
a result of charges of mismanage-
ment, delays and alleged disregard
OF problems, the staff OF the House
Civil Service Investigating Com
mittee reported last night.
A seven-fold program OF admins
trative improvement, outlined by
Commission President Harry B.
Mitchell, was appended to a pre-
liminary report to the House COM
mittee by its staff director, E. j.
Mccormack, which contended that
mismanagement was largely the
cause of the creation of a great
and increasing" backlog in the di-
visions work.
The Mccormack report showed
that as of last December 81, there
were 143,385 unprocessed applica-
tions from former Government en-
ployes for refunds of salary deduc-
tions made for retirement, which
may be claimed by those who held
Government jobs for less than five
years. This figure, however, was said
to represent probably "only the
lesser portion" of the potential
backlog since applications go to the
division from 1881 points of origin
and since there may be delays at
each point. At the end of last year
the War and Navy Departments
alone had ION hand" 100000 refund
applications.
New Applications Mount.
Also, new APPLICATIONS were COM
ing in at rate amounting to 1876
per cent Of payments, so that the
division monthly was falling $4,000
more cases behind. Soon after the
war ends, 100000 more applica.
tions might be expected, the report
said.
After "some" Of the conditions
referred to in the Mccormack re-
port had been outlined to high COM
mission officials at a recent confer
ence, the investigator said, the i'm
provement program was outlined in
Ia letter from Mr. Mitchell.
Saying improved processes already
had been adopted, Mr.. Mitchell
added that the following changes
soon would be put into effect: Ap-
pointment of an associate chief of
division, to act as production man
ager; creation of a small proce-
dures- -and-methods staff to survey
work activities, prepare manuals Of
instruction and otherwise set up
controls for "bottlenecks";; review Of
the competence of section heads
and other operating supervisors;
appointment and assignment to the
division of an outstanding acttlary;
the commission will continue purge
on Congress desirability OF estab-
fishing adequate retirement records;
development Of q small STAFF to
study insurance and economic fea-
lures of retirement laws and rela-
tionship between civil service retire.
ment and similar systems, and a
survey of needs Of the division. by
the new associate chief, as soon as
he Is selected and put to work.
Funds Adequate.
The Mccormack report empha-
sized that the cash and invested
reserve of the retirement and dis
ability fund amounted to more than
81 900 900, ,0oo-that only eight life
insurance companies of the United
States had assets Of this size. In
summing up its scathing criticisms
OF the commission, its subordinate
chiefs and their practices, the re-
port said:
unfortunately, there seems to be
a tendency in Government to cure
all administrative evils with one or
more OF three palliatives: Increase
OF personnel, removal to more
spacious quarters, and reorganiza-
ton, usually referred to as stream
lining AS this inquiry progressed
1t became evident that all three of
these curatives were being con-
sidered by the commission"
While agreeing that some addi-
tlonal personnel was needed, the in
vestigators protested that a Retire
ment Division proposal for 3l5 more
workers at an annual cost of s525. =
600 was based on present operating
methods" and added:
There is every reason for a Gov
ernment employe, particularly one
entering the armed services, to ex.
pect and receive promptly upon
separation, the return of his funds
deposited by him, under specific
agreement, with the Federal Gov
ernment. No bank. insurance
company, or other fiduciary institu-
ton could escape criticism of the
proper Federal or State agencies.
or long remain in existence, if
operated under the conditions re-
f1ected in this report.
The obligation of a Government
agency to compare favorably with
a private institution, in this respect,
is more important when it is
realized the average citizen con-
slders his Government to be the
best bank in the world"
Complaints Listed.
Among specific complaints were
the following:
That there was delay of nearly
two years before the Retirement
Division got approval of a request
for d high personnel priority rat
ing for the division SO as to be able
to keep or get qualified workers to
meet the anticipated looming work
load;
That there was frequently dem
onstrated lack of close adminis-
trative connection between the di-
vision and the commissions Cen
tral Office;
That repeated pleas from the di-
vision as to needed extra help went
unheeded;
That while the Mather Build
ing, the division headquarters, is not
modern, it afforded more space per
worker than was required. but was
inefficiently used. On this point
the report states: In some in
stances, Offices are cluttered with
excess files and furniture. Desks
on6 fi1pc Yronv oococ ora ,>;1ol