Evening star., 1952-03-04
GroupsAssa
Civil Service Stand
Against Pension Rise
Retired Workers Urge
Senate Unit to Approve
LiberuIized Benefits

EmplOye groups today attacked
the Civil Service Commissions OPP
position to increased annuities for
retired Federal employees as "cruel
and heartless."
! The testimony was heard as q
Senate Civil Service Committee
began hearing on legislation to
|liberalize the civil service retire
|ment system.
The opening witness, Jerome j
Heating, secretary of the National
Association of Letter Carriers
AFL. declared the commission
Opposition was also unsound.
Funds Held Ample.
Vigorously disputing the com.
missions contention that the
present civil service retirement
fund could not stand payment oi
additional benefits, the union Off.
Icial declared that Congress ha.
never intended that the fund be
Operated on an actuarily funded
basis.
Mr.. Keating declared that there
is enough money in the fund te
pay all benefits. Furthermore
the subcommittee was told, il
would not be desirable to have g
completely funded Government
retirement plan.
"A completely funded plan il
based upon the assumption that
something may happen to bring
the life of the organization tc
an end" Mr.. Heating declared
I'm the event this happens, funds
would be available to pay all
earned benefits. This could moi
happen with the Federal Govern
ment--if the Federal Government,
ever ceased operating there woulc
be no civil service retirement"
Mr.. Keating said there now is
nearly $4.5 billion in the retire
ment, fund, more than enough tt
pay its own way.
Others Augment Pensions.
Mr.. Keating declared that ir
recent, years many private firm;
have augmented the pensions Ct
their employees because of the rise
in the cost of living.
THE Government has an OBJ.
legation to it's former employe:
over and above what it has fol
other citizens he declared
When employees retired they
looked forward to security Ir
the meantime, they have helpless
ly watched prices soar. When ar
|annuitant who retired in 1885
went to the grocery store with
$40. he received SO worth of gro.
ceries. According to the Bureau
of Labor Statistics, that same
amount Of groceries now costs
him $3.50 :. These people must
receive consideration"
The bill before the committee
provides an increase of $12O to
$3.50 year in annuities for re-
tired workers, now receiving pen
sionS Of less than $2,400 year
Those receiving more than $2,40O
in annuities would not benefit
under provisions of the legislation
The bill also would increase slight
ly the annuities of present en-
ployes when they retire and grant
substantial increases in survivor
ship insurance benefits to the
families Of deceased employees.
Urges Immediate Action.
Marcellus c. Shield, first vice
president Of the National Associa-
tion Of Retired Civil Employees,
urged immediate action on behalf
Of retired Federal employees.
Their annuities have. in most
instances been cut In purchas-
ing power by ~ per cent since
they were granted" Mr.. Shield
declared. Many Of them have
had to absorb this decrease by a
lowered standard Of living, ex-
small savings or seeking
employment which their physical
made unwise.
'They resent this legislation
being termed a 'gratuity' by the
commission. What they seek Is
partial justice. II they sought
The full justice Of restoration of
The loss Of purchasing power Of
heir. annuities due to imitation,
hey would be asking d rs per-
,ent or more increase