Evening star., 1947-03-09
Senate Hearing Open,
tuesday on Federal
Retirement Measure
By Joseph YOUNG

The Senate Civil Service Com
mittee will begin hearings Tues
day on the Langer-Chav re
tirement bill providing for wide
spread liberalization of the civi
service retirement program.
One Of the more important piece
Of legislation to Government EN-
ployes in many years, the bill i
considered by major union employees
groups as their number one legisla'
tive goal at this session Of Congress
The bill would grant survivorshiI
insurance benefits for zt1e FIRST tim,
to Government e<drfcS6 and theil
families, increase Ainlity payment.
and lower the retirement age. i
also would increase annuity pay.
ments to those Federal workers al.
ready retired.
Deduction Would Be Higher.
To help defray the cost of the bill
Federal employees would pay 6 pei
cent instead of the present S pei
cent deduction from their salaries
Actuaries who prepared the bill say
the cost would be high, but they
have not yet compiled a definite
estimate.
Federal employe groups feel the
legislation has fighting chance o1
passage and are expected to throw
their weight behind the measure
The bill was written by Chairman
LANCER of the Senate Civil Service
Committee and Senator Chavez
Democrat, of New Mexico.
Here are some of the major pro.
visions Of the bill:
/. Government would payfmonth.
ly benefits to the dependents o.
Federal employees who die. At pres.
ent, the survivors get only the lumr
sum that an employe has paid intc
the retirement system plus &C.
cured interest. Federal employt
unions feel that families of Fedora
workers should have the same pro.
tective benefits as dependents ol
employees in private industry under
social security, without having te
bring the Federal Retirement Sys.
tenn under social security control.
$500 Top for Widow.
Depending on an employees salary
and the number of years he was
employed, his widow could receive
a maximum 5000 a years so long
as she lives or until she. remarries
The amount would be increased a
maximum of $1,000 for three OF
more children under 18 years old.
The average survivorship pay
ments to widow with several minor
children, however, would be nearly
$1,000. The average payment to
a childless widow would be about
$500 a year.
In the case of a woman employe,
her dependent wdower and chill
dren, or dependent parents If there
were no other dependents would get
the same benefits as the survivors
Of male employees. The husband or
the others, however, would have
had to be dependent on her for
support to be eligible for survivor
ship benefits.
Annuities Would Increase.
IA $500 annual increase ir
annuity payments would be made
to Government workers who carr
about $4,000 a year-and it is esti.
mated that the average Fedora
wage Is about $2,500 annually. How.
ever, Ahe overall annuity increas.
for the entire Government servic.
is expected to average about 5000 {
year.
Annual annuity payments for re.
tired Federal workers will be com.
puted on a $25 base, plus one pei
cent of their highest average salary
over five consecutive years multi.
piled by years of service not to ex.
ceed IS.
For example, take the case of 8
So $2,500-a-year Federal worker who
now is entitled to $1,000 year wher
he or she retires at so with 30 years
of service. Under the LANCER.
Chavez Bill, one per cent of thu
$4,000 salary, which is $25, would bt
added to the $25 base for al
salaries. This makes $50. Multi.
piled by 80 years of service, thi.
makes an annuity payment Of 81 ,50t
annually. If the employe retired al
go with only 10 years of service, tht
annuity payment would be so multi.
piled by 10, or $500 year.
On salaries over 5000 a year
the annuity would be determined b!
taking III per cent Of the highes
average salary over any consecutive
flve-year period, multiplied by year
Of service not exceeding IS.
Retirement. .Liberalized.
8. Retirement at the age of 81
years with five years service woult
be permitted, instead of the presen
optional retirement at 81 years will
is years of service, or go years o
age with 80 years service. Th
mandatory retirement age at 7
would remain the same as it is now
Also, retirement would be per
nitted at the age Of so on a re
duced annuity basis after 20 year
of service, with the approval Of tn
employing agency. However, NJ
such approval would be required i
the sum Of years and age is 80 o
more.
4. Employees who are now retiret
would receive rs per cent in
crease in their pensions, or a fla
$500, whichever is smaller. Ais,
dependent survivors of retired EN-
ployes would be entitled to survivor
ship benefits.
S. Employees who are 10 years OLE
or more. who have at least fiv'
years of service and are dismissed
through no fault of their own
would be made eligible for a pen
sion at the age of IS at a IS pc
cent discount.
6. The dollar-a- month tontint
charge deduction from the paychecl
of every Federal worker would b.
discontinued.
Leaders OF Government employees
unions. together with Civil Servic,
Commission officials and the com
mittee's staff of experts who pre-
pared the legislation, are expected
to be among the opening witnesse
at the hearing. a,s.