Evening star., 1945-11-05

Compulsory System.
@. May I get back my contribu-
tions when I leave, even though I
have served more than years, since
do not want retirement or other
benefits?
A. No. Coverage is automatic ex-
cept for certain legislative employees
who may elect to come in. Other
wise, the plan is not voluntary. 1t
does not permit each employe to
accept or reject its provisions as he
chooses. Aside from the fact the
Government intended to establish a
definite scheme of insurance for
each employe, it must be under
stood that group system supported
in part by employer or Federal con-
tributions could not operate eff
ciently and scientifically unless all
employees automatically joined and
remained members. Moreover, many
young people who believe they have
no use for retirement benefits would
unquestionably repent later and
want coverage.
TAXATION OF benentS.
@. How much of my annuity is
exempt from income tax?
A. At present the whole amount
of civil service annuity is taxable
the same as any other annuity.
Two congressional bills have been
introduced, however, which would
exempt these annuities from tax
alton to place them on a par with
those made under the Federal So
cial Security and Railroad Retire
ment Acts. H. r. 2948, which would
eliminate taxes up to $l,440 of an
nuity each year, was passed by the
House and referred to the Senate
Finance Committee. The other,
which would exempt all annuity
paid, has not been acted on. 1t
must be borne in mind, though, that
even if either bill becomes law, an
nuitants will be in the same po-
sition as other taxpayers as to all
other types of income.
Five-Year Status.
@. If I redeposit contributions
which were refunded to me or buy
up service for which I made no
contribution SO as to equal at least
five years, will I get permanent re-
instatement status for civil service
jobsi
A. No. Some employees have con-
fused the "f1ve-year rule" under the
Retirement Act with the five years
service needed for permanent REIN
statement rights for civil service
positions. Except for the fact that
five years is the crucial period, the
two rules have nothing in common.
For Retirement Act purposes, serv-
ing five years in the Government
Cor armed forces, whether or not
continuously or with contributions
at all times, means that you are
entitled to disability or retirement
annuity and that you may not draw
refund of contributions. For job
status purposes, being five years in
civil service positions on "perma-
nent" appointment means that you
may be reinstated at any time to
a position for which you qualify,
without further examination; with
less than five years, the duration
of your reinstatement rights equals
the length of your service. Since
these provisions apply to different
laws governing separate programs,
redepositing contributions, paying
up for non-contributory service, or
conversely withdrawing refunds on
resignation would have no effect on
job rights.
@. My husband is in ill health
and may be forced to retire on a
disability annuity. How can he
arrange to leave part of his annuity
so as to provide for me and for
the children?
A. The Retirement Act permits
joint and survivor options under
which selected beneficiary, can
obtain a lifetime annuity after the
employe dies If he agrees to accept
reduced annuity for himself. Un-