Evening star., 1947-06-13
|RetirennentFund
|WithdrawaIsGet
Committed. K.
Action Is Agreed On
To Reduce Cost of
Lunqer-Chuvez Bill

Legislation to permit dismissed
Federal workers to withdraw
their contributions to the civil
service retirement fund regard
less of the number of years they
worked for the Government was
agreed to today by a House Civil
Service Subcommittee.
The provision will be lacked on
to the LANCER Chavez omnibus re-
tirement bill in an effort to cut
down the cost of the measure, it
was said today by Representative
Stevenson, Republican, OF Wiscon-
sin, chairman of the subcommittee.
Mr.. Stevenson said the provision
would not only decrease the cost Of
the LANCER bill, but that it would al
leviate the financial plight of
thousands of dismissed employees
who cannot withdraw their retire
ment contributions if they have
been in the Government for more
than five years.
Would Reduce Paper Work.
The decreased cost would result
from the elimination of paper work
in connection with keeping the rec
ords of thousands of workers who
would take advantage of such a
provision, Mr.. Stevenson said. Under
the present law, the records of dis
missed employees are kept until they
are 81, when annuity payments
begin.
Under the amendment agreed to
by the committee, any employe may
withdraw his money from the fund,
plus per cent interest.
The subcommittee will meet again
next Tuesday on the omnibus bill
and Mr.. Stevenson predicted action
on it at that time.
A measure similar to the with
drawal provision agreed to by the
subcommittee has been introduced
by Representative Jones, Republic
can, of Washington. This bill, which
has already received House Civil
Service Committee approval, allows
any one with less than 10 years OF
service to withdraw their retirement
contributions.
Two Chances for Passage.
The subcommittee action today
was taken to increase
the chance of passage of the with
drawal provision. In this way, it Is
contained in two bills. If the LANCER
Chavez bill should fail of passage.
the Jones bill could be brought up
for quick House action.
Thousands of employees leaving
Government work in the present
economy wave would benefit by the
proposed law which was introduced
by Representative Jones, Republi-
can, of Washington. Experts have
estimated 1t would save the Gov
ernment money since the annuities
eventually would exceed the con-
tributions. te
The committee, before voting to
report the bill favorabIy, amended
it to exclude years spent in military
service in computing the 10 years.
That means those with lengthy
service with the armed forces still
could get the refund if they spent
less than 10 years as civilian en-
ploye of the Government.
The committee, meanwhile, voted
to report favorably today
bill which would create an indie
pendent loyalty board to investigate
present and prospective Federal
workers, Chairman Rees said.
1t amends the loyalty measure
upon which hearings were held last =,
week by removing the board from
the Jurisdiction of the Civil Service
Commission.
Preliminary Probe Provided.
Under it, the commission would
conduct only preliminary investi-
CATION of each employe and apph-
cant. Discovery of any "derogatory
information" about any employe
would mean a further investigation
by the FBI, which would report to
the loyalty board.
This board would be composed OF
five members appointed by the Presi-
dent. They would pass on their
findings on loyalty matters to the
heads of agencies, listing employees
who should be discharged or appl-
cants who should not be hired on
disloyalty grounds.
Any refusal of an agency head to
comply with the boards recon-
mendations would be referred to the
President by the board. 1t also
would report each year to Congress
on the status of cases referred to
the President.