Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-04-29
Present law provides annuities

Present law provides annuities
only to widowers of members.
2. WidoWer and children
Dependent widower" receives
an immediate annuity the same
as above. plus 5000 per year for
each child under the age of 10.
Under present law. the surviving
dependent widower" and chill
dren of an employee do not re-
ceive survivorship benefits.
3. Children only.-Each child
under the age of Is receives an
immediate annuity of $720 per
year. Under present law. the an
nuity of each child ranges from
a few dollars a month to a maxi
mum of $3.50 per year.
Annuitants
The bill reduces the service
prerequisite for election of survi-
Worship benefits from Is years
to S years and extends the right
of election to employees with en-
'titlement to deferred annuities.
A. Cost of survivorship cleo
ton -
The bill provides for a 10 per
cent reduction on that portion
iof the annuitant's annuity as
exceeds $2,40O per year. Under
present law, the annuity of an
Iemploye making the survivor
ship election is reduced by
per cent of the first $500 OF
his or her annuity, and by 1C
lper cent of all in excess thereof
plus three-fourths of l per cent
for each year the designated
spouse is under age so when the
employe retires.
B. Bentfits from survivorshir
election
The bill provides that a surviv-
ing widow or widower receive an
automatic immediate annuity
equal to so per cent of the an
Inuitant's earned annuity as does
not exceed $4,000. and when SC
elected by the annuitant, the
Surviving widow or WidoWer re-
Iceives in addition thereto so per
cent of the annuitant'S earned
ANNUITY as exceeds S2,400, both
amounts payable Immediately
and until the survivor remarries
or dies. Under present law, the
widow or widower designated at
the time of retirment receives
an annuity beginning at age SO
and payable until the survivor
remarries or dies.
Disability Benefits
The bill provides that the
annuity of any employee retired
due to total disability after meet
ing the five-year service require
ment be: Cd 40 per cent OF
his high five-year average sal
ary." or 90 the amount of his
earned annuity had he continued
to work until reaching the age
of so years. whichever is the
lesser. Present law provides nc
minimum for a total disability
annuity but accords the employe
only the amount of his earned
ANNUITY at the time the disability
occurs.
The bill provides further that
an employe retired due to total
disability shall not be deemed
as being restored to earning Ca
pacity until his income is equal
to 80 per cent of the current
rate of pay" of the position he
held at the time of the disability
Under present law, it is based on
the salary of the position at the
time he incurred the disability
Thus. under present law, an en-
ploye disabled when the pay of
grade GS-5 was $4,000 would be
removed from the disability roll
if his outside income reached
$1,000. But another employee
who became disabled a few years
later when the pay of GS-5 had
risen to $4,000 would not be re-
moved from the disability roll
until his outside income reached
$4,000. The bill corrects this in
equity.
Continuity of COverage
The bill provides a method
for the transfer of service credit
between civil service retirement
and social security to provide
continuity Of coverage to en-
ployes who shift back and forth
between Federal and private en-
ployment. Under the method
provided when an employee with
less than 20 years of service
leaves the Government he would