Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-18
j. 5. Pensions
Boost Backed
ByHouseGroup
Vote Unanimous
In Federal Workers
Retirement Bill
By JOSEPH YOUNG

mittee today approved legislation
to liberalize substantially the
civil service retirement benefits
Of Federal workers and their
families.
While the bill isn't quite as
liberal as the senate-approved
measure, it would retain Federal
employe salary contributions at
the present 6 per cent rate. The
Senate-approved measure pro-
vides for a 7 per cent Federal
employee salary deduction to pay
for the increased benefits.
The House committees vote in
approving the bill was unan-
imous. However, Chairman Muir
ray said he felt the employee SAL
airy contribution should have
been Z per cent as provided in
the Senate bill and that he will
seek to restore the Z per cent
In House-Senate conference.
On Middle Ground
The House measure strikes a
middle ground between the Sen.
ate's bill and proposals made by
the administration
The key changes made by the
House group in the Senate-ap-
proved bill are:
/. Annuities would be comput-
ed on a one-and-t hree-quarter
per cent basis on all years Of
service or on a one-per-cent-
plus-$30 formula, whichever is
greater. The present computa-
ton rate is one-and-one half per
cent or one-per-cent- plus-$25,
whichever is greater. The Sem
ate-approved bill provides that
annuities would be computed on
a one-and-a-half per cent or
one-per-cent-plus-$25 formula
for five years of service, and on a
two per cent basis for all years in
excess of five.
2. Employees could retire after
30 years of service after reach
ing the age of SIS at a financial
penalty of half of what it is
now. At present, employees re-
firing after 80 years Of service
at age IS or older must take
three per cent cut in, annuities
for each year they are under so.
The House committees bill
would assess the penalty at one
and-a-half per cent for each
year under age so, The Senate
approved bill would allow en-
ployes to retire after 80 years
service regardless of age.
3. Federal retirees could des-
ignate their surviving spouSeS to
receive a one-half survivorShip
annuity at only a three per cent
reduction in the retiree's an
nuity on the first $2,400 of his
or her annual pension and ten
per cent on any amount over
$2,400. AnnuitantS now must
take a five per cent cut on the
first $500 of their annual an
nuity and ten per cent on any
amount above that in order to
qualify their SpouseS for an
eventual survivorship annuity.
4. The House committees bill
would become effective on the
first day of the month so days
after it was signed into law. The
Senate bill will become effective
January l, 1857.
Other Provisions Kept
The House committees bill re-
tanned all of the other Senate
provisions including greatly lib
eralized survivorship benefits for
the families of present Federal
employees and more liberalized
disability retirement pensions.
Cost of the House commit
tees bill would be $278 million
a year, compared to a $454
million annual cost for the Sem
ate bill. However, the Senate's
bill would be reduced another
$50 million if it's Z per cent
salary contribution were retained
for an overall total cost of 1884
million.
The House committees bill
approved today followed closely
along lines proposed by Repre-
sentative Rees, Republican OF
Kansas, the groups ranking
minority member. The Rees
proposal is thought to have the
support Of the administration.
Chairman Murray said he
hoped to get the committee
print of the bill ready in a few
days so the legislation can be
scheduled for house action by
the end of this week or early
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