Evening star., 1951-01-28
Pension Plan
Inequalities
Continued From Page C-1D

81 UdU II lllele were C1cdI 1llleo
of employment and advancement,
so that all credits earned by an
employe would be under one
scheme.
An attempt has been made to
protect coverage under CSR. En-
ployes who once had such cover
age will be placed under the
retirement act when rehired for
temporary or indefinite appoint
ments. This policy, however, does
not take care of those who enter
as temporaries under social Sc
curity and later are blanketed un-
der the retirement act. Nor does
it help those who leave Govern
ment work for good or for a short
period, since service under CSR
is not credited under the Social
Security Act.
To this confusion must be
added the fact that money con-
tributed toward OASI benefits
cannot be withdrawn, in keeping
with the social insurance prin-
ciple. Also, contributions are not
returned at death when monthly
benefits are not payable. AS a
result. movement to and from
jobs covered by different retire
ment systems may severally handi-
cap both career and intermittent
workers. Even if this be con-
sidered appropriate in cases OF
voluntary transfers. on the theory
of taking the bad with the good,
there is no justification for this
consequence when coverage is
compulsory and no choice of sys-
tenn is offered to Government
workers. There may also be un-
warranted benefits which some
individuals will gain if they ac-
cidentally or deliberately work into
the right pattern of employment
They will draw substantial ray
mentS under both systems.
Old Report Cited
The need for coordination was
we'll recognized over 10 years ago
by the Presidents Committee en-
Civil Service Improvement. Their
report stated lhaJ some means
should be developed ior combin-
ing the systems. so that the dis
advantages of complete separation
may be avoided and advantages
of each plan may be enjoyed by
Federal employees" This commit
tee noted that some of the en-
ploye groups have indicated cppo-
sition, but 1t is doubtful il they
fully understand that by CO.
ordination is meant not the sub
stitution of social security for the
existing plan, but rather method
of setting up floor of protection
for both retirement and survivors
at least equal to social security
benefits. with supplementary pro-
vision under existing Federal plans
such that total benefits ere rot
lowered from those now IN effect"
Finally. the report emphasizes
that since the Government is both
the employer for CSR and admin
istrator for OASI there is no ex-
cuse "for being doubly liberal in
some cases and in others restrictive
even to the extent of providing no
benefits at all under certain cir
cumstances."
Evidently realizing an oppor-
tunity to correct this inequity,
several of the Federal organiza-
tions with separate retirement
systems obtained coverage under
the Social Security Act. For ex-
ample, Federal Reserve Bank en-
ployes are now under social Sc
curity. Their own annuity plan
has been modified, in the pattern
adopted by thousands of private
companies, by using OASI bene-
fits as a foundation and supple
menting with their own benefits.
Contributions were not increased,
but were divided between the two
schemes. FRB employees will now
be entitled to the full range of
benefits under both systems, in
cluding, for example, new sur
vivor benefits under OASI and
disability benefits which are given
under the FRB schemes.
Needless Fears
The example set by FRB in
Government and by private in
dustry is proof that an efficient
combination of basic social secur-
ity and staff benefits is possible
and workable. There need be no
fear that integration will displace
or weaken the benefits established
for Federal workers. It is we'll
recognized by now that individual
employees or groups Gncluding the
Governmen0 should velop
plans which meet specific needs
that cannot be met by a general
system. AT the same time, no one
should lose out in basic protec-
ton, if he leaves the staff system
or, worse, be induced to remain
for fear of losing rights built up
over many years.
Essentially. adoption of basic
social security complemented by
Federal civil service retirement
for all regular civil servants
would be nothing more than
slipping OASI with it's full bene-
fits and taxes under the Civil
Service Retirement Act. An en-
ploye would earn eligibility and
credits toward two sets of bene-
fits SO long as he remained in
Government and would continue,
without any loss, to add to his
OASI protection as long as he
worked at a job covered under
social security. This type of
integration is proceeding at a
rapid rate, on a voluntary basis
as provided by the social security