Evening star., 1947-05-28
Commission Officials
Dispute s1o5,314,l9
Retirement Bill Cost
BY Joseph YOUNG

ment ofncials today acknowledged
they had erred on their cost esti-
mates of the LANCER Chavez civil
service retirement bill, but they en-
phatically disagreed with an actu-
arial report that the measure would
cost the Government an additional
$105, ,324 ,269 annually.
The report made yesterday to the
House Civil Service Committee was
regarded as drastic setback to the
bills chances OF passage, irasmuch
as supporters of the legislation had
contended that its enactment would
not cost the Government any money
for many years. Even then, the
bills sponsors contended the cost
wouldn't amount to more than ST.
000, 600 or s., ,000, 900 year.
The report was prepared by the
Board of Actuaries of the Civil
Service Retirement Fund. The board,
which administers the retirement
fund, is composed OF two non-Gov-
ernment actuaries and one actuary
from the Treasury Department. It
operates independently Of the Civil
Service Commission.
Confer on Figures.
Warren B. Irons. chief OF the
commissions retirement division,
said today, 1--WE were a little low
in our cost estimate, but I think
that the boards estimate Is much
too high. The cost probably will be
somewhere between the two esti-
mates"
Mr.. Irons also stuck to the COM
missions contention that the bill
wouldn't cost the Government any
additional money for a number of
years. He revealed his division and
the Actuarial Board were holding
daily sessions in an attempt to arrive
at a new cost figure.
Representative Stevenson, Repub-
lican, OF Wisconsin, sponsor of the
House bill, said the actuarial report
came as a bombshelI to me-" He
intimated that, If the $105, ,O00, 900
figure is proved to be correct, he
would not press for passage of the
bill. Mr.. Stevenson, who is also the
chairman Of the House Civil Service
subcommittee holding hearings on
the bill, said he was not satisfied
with either report, however, and
that his group would meet again
next week to hear both sides.
Fund Not Actuarily Sound.
II introduced this bill after was
assured that it would not cost the
Government any additional money
for a number Of years and might
eventually cost about $4,000, 600 or
S., 600, 900 year in about 80 years"
Mr.. Stevenson said. Now, I'm not
certain what it will cost. Our COM
mittee is going to call back both the
commission retirement officials and
the Board Of Actuaries and try to
get the real facts"
Mr.. Irons said he didn't think the
bills cost would be anywhere near"
the boards estimate. For one thing,
MIR. Irons declared, the board went
on the assumption that the Federal
retirement fund is actuarily sound,
when as matter of fact it never
has been"
This assumption raised the esti-
mated by many millions of dollars,
Mr.. Irons asserted.
Government employees groups.
which consider this bill the most i'm
portant piece of legislation affecting
Federal workers during this session
OF Congress, assert that most Of the
cost would be Offset by the increase
IN the employees salary contribution
from the present per cent to per
cent. 80 Is -
The bill already has been ap-
proved by the Senate Civil Service
Committee, but has encountered
Senate opposition on the cost ques-
ton. Chairman LANCER plans to
bring 1t up for action in a week or |
two.
One Of the groups most affected
by the bill are those Government
employees already retired. These
former employees declare the in
creased cost of living has made it
virtually impossible for them to get
along on their present pensions. The
bill would increase their payments
by Is per cent or $500, which ever
is smaller. /
Also, the bill would increase an
nulty benefits to Government work.
ers upon retirement and would
provide survivorship insurance pay
ments to widows and orphans of de-
ceased Federal ernnloves