Evening star., 1945-09-28
BY IRVING LADIMER and
ROBERT ]. MEYERS.

Questions and comment followed
close after publication OF the SIX
original articles in this series. All
letters requiring answer received the
personal consideration of the au-
thors, who were pleased to be con-
suited and will be glad to continue
this service Inquiries should be
addressed to The Star for the at
tention of this column.
Paradoxically, many inquiries of a
general nature were marked eonfl-
Dental or personal and were ham
died accordingly. This approach
confirmed the. belief that Govern
ment employees are unwilling or un-
able to discuss openly with super
visors the subject of rights under
their own Retirement Act.
If this series has aired the prob
lems-Whether or not it has pro-
vided all the ansWers-it will have
accomplished its purpose. The re-
tirement system is public, informa-
ton about its operation is free, and
the benefits it accords come as q
matter of right. Take full ad-
vantage of this Government pro-
gram.
This final pair of articles under
takes to answer, in general terms
the questions of widest interest and
significance Most queries were
concerned with the difficult prob
lens of refund and redeposits and
purchase of service credits.
Redeposit of Funds.
A number of letters questioned the
desirability and necessity of return
ing refunds previously received
which had not been redeposited
upon return to Government service
If the redeposit is made, you get
credit for the period of employment
which the refund represented:
otherwise you do not. If you had
less than five years service and drew
your refund after January "a, 1912,
you must redeposit it in order to get
any benefit. Redeposits are highly
recommended for all persons except
those who, at the anticipated retire
ment date, will have IS or more years
of service, irrespective of the period
covered by the refund. The excep-
tion applies also to persons who have
more than 80 years and whose earn
ings average under $4,000 per year.
1t should be noted that service rem
dered before August. 1920, is auto
matically credited, whether Or not a
refund for service after that date is
repaid.
To illustrate the above points,
consider an individual who was in
Government civil service employ
ment from August, 1905, to August,
1925, and received a refund of $500
covering service from August, 1920,
through August, 1925. and who re-
turned to service in January, 1886.
If he planned to retire in January,
1916, it would be most profitable to
redeposit for the five years 1920-25)
since he would then have credit for
80 years rather than only 25 years
and would qualify for options not
otherwise available.
BY paying back the $500 plus 4
per cent compound interest from
date of return to service (January,
,i1936), the annuitant would get a
benefit increased not, only by this
iiadditional amount in the individual
account but also by the Government
share based on this extra service;
moreover, by having 80 years of serv-
ice he could retire at 60 instead of g.
if he chose.
On the other hand, if this en-
ploye were to wait until January
1856, to retire and so complete IS
years of service without counting
the period 1920-25, he would not
find it worthwhile to make the re-
deposit since the annuity might not
be Increased one cent thereby.
Those for whom redeposit has
been advised in the preceding para
graphs, will find it a gilt-edged in
vestQlent. both as to yield and Sc
curity. 1t even is worthwhile tc
make an outside loan just before re-
tirement to make this payment. II
you live the average length of life
you will get back several times youl
initial investment Even if yol
die prematurely. the death benefit
under the non-forfeiture annuity
option will, with the additional an
nuity you have received, more thar
equal the loan for the redeposit.
Don't get redeposit or refund pre-.
viously received confused with pur-
chase of service credit for periods
of Government employment not sub.
tJect to retirement deductions. II
4 most cases it is not advisable to pur.
chase service credit, since at bes
you only get back your moneys
;lWorth," while at worst your bene.