Evening star., 1946-04-07

annual salary should be paid to the So
cial security fund just as for industrial
workers.
Government employees should get the
same social security benefits as others.
based on the taxed portion of Govern
ment and Government pay, plus
modified civil service retirement and dis
ability benefits.
Civil service benefits should be COM
puted, as at present, for all service be-
fore the merger but, thereafter, on the
single, simple basis Of IL per cent of
average pay for each year worked. Thus,
an employe who has 20 years of service,
all under the modified plan, would re-
tire on one-fourth of his average Fed
eral pay plus social security benefit.
Retirement on a full benefit should
take place at age IS (probably to agree
with the social security provision) but
should be allowed as early as age so on
greatly reduced benefit, perhaps as
much as IS per cent reduction at that
age. Since full retirement is now pos
sible at age go or 81, the report suggests
that the recommended retirement age Of
IS could be lowered.
Full disability benefits should be pro-
vided, as now, at any age.
Other Proposals.
The report also suggests that all work.
ers be insured for retirement annuities,
regardless of length of employment. To-
day, those who leave the Government
after having served less than five years
get only refunds of contributions; those
who leave with five or more get de-
ferred, but not full, annuities.
The death payment would be increased
for certain short-term employees. At
present, in case of death before retire.
ment, all deductions plus interest are.
refunded. The report recommends that
If death occurs in service, the benefit be
raised to a half years salary. This
break" would generally apply only for
those with less than 10 years of Gov
ernment employment.
Minor complexities of the existing
plan would be eliminated if the report
were to be accepted. Notable among
these would be discontinuance of the 81
per month tontine deduction and re-
moval of the various limitations in serv-
ice requirements and distinctions be-
tween voluntary and compulsory resig-
nations which affect retirement age and
benefit amount.
What would the Technical Commit
tees method of coordination mean for
the average Government worker In
dollars and cents?
Consider Tom Adams who starts as
file clerk at about 81 500 year and ad-
vances to $4,000 over a period 40 years.
Under the existing civil service plan, his
retirement benefit at age go would be
roughly $125 month. Under the sug-
gested coordination he would get about
500 a month at go plus $45 a month at
IS in social security benefits or somewhat
more in total than at present. More
over, when his wife reached IS, the So
cial Security Board would pay the family
$23 more as long as she lived and, if
Tom died before his wife, she would get
almost $35 month for the rest of her
life. The civil service plan, as every
Federal employe unhappily knows, offers
no such allowances for dependents.
Benefits for Children.
The merger would also provide chill
dren's benefits not now available. If
Tom Adams died leaving a widow and
two children, there would be monthly
social security benefit totaling almost
$50 for the family. 1t would continue
until the older child reached Is and
then would drop to $55 payable until
the youngster became 18. Later. when
Toms widow attains IS, she would get
the $35 widows benefit.
Although the committee report sug-
gested age IS as the starting point for
all civil service retirement payments,
it noted the possibility of using age so
instead. The example above assumes
adoption OF the lower age as more in
keeping with the present plan and with
the trend toward liberalization.
The reports recommendations are gen.
orally advantageous but some may
provoke argument. The civil service
system has been amended frequently
since the present basic law was enacted
in 1920 and is as result very complex
program now. Simpliication without
substantial injustice to any individual
is called for. For example, the elimina-
ton of the tontine deduction and the
larger lump-sum death payment win
meet with, and merit, universal ap-
proval Similarly, the removal of all
distinctions in benefit based on volun-
tary as contrasted with involuntary
resignation is highly desirable pro-
posal. Many quits are simply advance
recognition of reduction in force COM
ing and should not be penalized.
The report suggests equalization Of
qualifying conditions for all employees,
regardless of length of service. Such a
modification would cut out earlier re-
tirement on full annuity and the use of
more generous formulas for calculating
benefits for employees with long service.
These employees are apt to object, and
perhaps justifably so, for they have long
been encouraged to look forward to COM
paratively high retirement pay.
More Liberal Basis Urged.
Another recommendation which may
founder on shoals of opposition is the
substitution of single formula of IL
per cent of average pay for the present
4. Much is to be said for this change
on the ground of wider understanding
If it is tied to the proposal to add social
security benefits, the combined retire.
ment annuities would be about the same