Evening star., 1947-04-25
New Retirement Bill
Has Good Chance IN
Senate, Sponsors Say
By Joseph Young

bill TO l1beral1ze retirement DenedgS
flor Government employees today ex-
pressed belief that the measure
stands a good chance of Senate
passage.
Members Of the Senate Civil Serv-
lice Committee, which yesterday
finally approved the measure after
weeks of deadlock, said the outlook
for Senate approval was consider
ably brighter than it was several
weeks ago. 4
| Chairman LANCER OF the commit
tee and Senator Chavez, Democrat,
lof New Mexico, co-sponsors Of the
measure, expressed the belief that
the bills chances were considerably
Increased when 1t was rewritten so
that the Government would not
have to increase its payments to the
Federal retirement fund. The bill
lprovides that Federal workers pay
l6 per cent of their salaries to the
fund, instead Of the present per
lcent.
Early Action to Be Sought.
| Senator LANCER said he would seek
to bring up the bill as soon as pos
sible. The bill would grant substan-
itial liberalization of retirement ben
efits to Federal workers. including
those employees who face dismissal
during the current Federal reduction
in force program.
Meanwhile, on the House side,
Representative Stevenson, Repub-
lican, OF Wisconsin, chairman of the
House Civil Service Subcommittee
lon retirement legislation, said his
group viii meet next week to con-
slider the LANCER Chavez bill.
Mr.. Stevenson has gone on rec
ord as favoring liberalization OF
the Federal retirement system and
introduced bill identical with the
original LANCER Chavez measure In
the House when Chairman LANCER
first introduced his bill In the SEN
ate.
May Offer Similar Bill.
Now, with the Senate Civil Serv-
ice Committees bill considerably re-
vised, there Is a possibility that Mr.
Stevenson will withdraw his bill
and introduce a new one conform
ing to the measure reported yester-
day by the Senate Civil Service
Committee. This would be in the
interest of expediting action in the
HOUSE.
The bill approved yesterday by
Senator Langer's group is the same
in most major respects as the meas
ure adopted-and then dropped
by the committee more than a
month ago. The committees official
bill increases annuity benefits to
Federal employees on retirement, as
well as providing larger payments
to those workers already retired,
and grants survivorship benefits
to the wives and children of de-
ceased Federal employees.
The new bill, however, gives de-
cided help to the thousands, of Gov
ernment employees who face dismis-
sal during the coming months. Un-
der terms of the bill, Government
worker with five years or more of
service to his credit, who Is invol-
unfairly separated. would get ar
annuity on reaching the age of 81
/ Could Deduct Contributions.
Such employees could deduct their
contributions to the retirement fund
when they leave the Government
and stin be eligible for a reduced
ANNUITY on reaching the age of 62
II they do not withdraw their con-
tributions when leaving the Federal
service they will receive a full an
nuity benefit at 81 years OF age
based on the amount of time they
served In the Government.
The decision to aid these employees
was reached after Senator LANCER
and other committee members
pointed out that Government en-
ployes are not covered by Social
Security and that the thousands OF
workers who are losing their jobs
will have received no old-age credit
for the time spent In the Federal
lservice.
These employees involuntarily sep
Earated from the Federal payroll who
have less than five years of service
would not be eligible for pensions
but would get back their deductions
plus 4 per cent interest. Starting
next year, however, this interest
would be reduced to 3 per cent.
i Employees with more than but
less than 10 years OF service to their
credit, who voluntarily leave the
Government, would get only a re-
fund Of the money they put in. They
would not be eligible for pensions
Those workers who voluntarily re-
tire after 10 years Of service would
get pensions at the age Of IS.