Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-04-08
BY JOSEPH YOUNG

AZ Wv ~ MI NANN
retirement division estimates that
the revised Johnston retirement
bill would cost $349 million a
year-a sizeable drop from the
estimated $52l million annual
cost of the original measure.
/ The nearly 5000 million re-
ductlon in cost has boosted the
chances of the Johnston measure
which would provide sizeable in
creases in the annuity and fam
lily survivorship benefits of Fed
eral employees.
/ The 1921 million cost factor
had been the most serious OBJ
stacle in the path of the Johnston
bill. The administration had
stressed the more than half a
billion dollar annual cost as one
OF its principle objections TO
the measure. Economy advocates
in Congress also we're taken
aback by the cost figures.
Trimming the bills cost to
the estimated $349 million a
year is expected to enhance its
chances in Congress this year
While it is too early yet to
predict with any certainty its
passage. at least its chances of
passage in the revised or further
modified form are considerably
better than they were several
months ago.
The revised measure has been
tentatively approved by a Senate
civil Service subcommittee
headed by Senator Scott, Demo-
crat of North Carolina. Chair
man Johnston of the full COM
mlttee is the bills sponsor.
The original bill would have
boosted annuity and family
survivorship benefits by 33 per
cent. The revised measure would
increase annuities by about 25
per cent. Family Survivorship
benefits. however, would be in
creased by at least so per cent
under the revised bill. The
annuity phase of the bill entails
the most cost. Therefore. it was
possible to trim the proposed
annuity increases somewhat and
increase family Survivorship
benefits considerably and yet
make a savings in the estima ted
cost of the bill
The measure would still retain
the provision for optional retire
ment after 30 years of service.
regardless of age. at a lesser f.
nanclal penalty TO the employee.
Also. provisions are included to
credit short-time Federal en-
ployeS with social security serv-'
ice when they leave the Govern
ment. However, the bill would
provide for no other tieup with
social security as requested by
the administration.
Employees leaving the Govern
ment with less than 20 years of
service would still have the
option of foregoing social securi-
ty credit and receiving a de-
iferred annuity at the regular re-
Itirement age if they have an
other Federal service to qualify.
Also. the bill would provide
free wife survivorship benefits
for retired employees drawing
annuities OF 50, 400 or less a year.
instead Of the free $4,000 annual
annuity cutoff originally pro-
posed. At present all Federal
annuitants have to take a cut in
their pensions if their wives are
to get SO per cent of their an
nuities in the event OF their
death.
EMPLOYEES TO PAY MORE
Under the revised bill. Federal
employees would pay more for
their increased retirement and
family survivorship insurance
benefits. They would pay per
cent of their salaries, compared
TO the present 6 per cent raise.
Other provisions would in
crease the Governments interest
to the civil service retirement
system on Federal bonds pur-
chased by CS retirement. Also.