Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-06-20
U.S.. Pensions Rise
Opposed by Young
CSC Chairman
Cites 5 Increases
In Last 8 Years
BY DON S. WARREN

~~AS "AAAAAAAAotA nClOAi VOOdy CAl1CW
its weight against Senate bills
which would grant an increase in
.annuities to the $4,000 retired
employees of the Government in
amounts ranging from 500 to
$500.
In hearing before the. Scott
Subcommittee of the Senate Post
Office and Civil Service Commit
tee, Philip Young, chairman of
the Civil Service Commission,
said the retirees had been granted
five increases in annuitieS in the
last eight years. He also argued
that a further round of increases
was not justified by any increase
in the cost of living over the past
three years.
Furthermore, Mr.. Young said.
the cost of the increases to the
taxpayers proposed in Senate
bills must be considered. He
estimated that the cost would
be from $66 million upward. Mr..
Young said that the annuity of
the retired employee who was
receiving $50 a month in 1947
is now $87 or an increase of "A
lper cent.
The position taken by the adj
ADMINISTRATION brought quick pro-
tests and some challenges from
one Senator and some of the
witnesses urging approval of the
increased pensions.
Neuberger Protests
Senator Neuberger, Democrat
of Oregon, protested that any
comparison of pensions with the
cost of living should be carried
back to 1889 when, be stressed.
there came the first real impact
of imitation.
He said sit is not presenting
fair picture if you cautiously
take only this particular period
of the last eight years"
A similar position was taken
by some other witnesses. includ-
ling jerome J. Heating. vice pres
ident of the National Associa-
ition of Letter Carriers, and
Thomas G. Walters, operations
director for the Government EN-
Iployes' Council of the AFL-CIO.
Mr.. Heating argued also that
lit was not fair to tie the meas
lure of annuities for Government
Iretirees only to the cost of living.
Rather. he said, annuities should
Ibe geared to the present stand
ards of living. He said that
Since 1899 there had been a 200
per cent increase in pensions
granted by private industries
and that since 1899 profits had
gone up 300 per cent.
He said these facts should be
considered in any reference to
a "a per cent increase in PEN
IsionS since 1899.
One Proposal Improved
Mr.. Young, first witness at to-
days hearing, Endorsed only one
proposal to liberalize the retire.
ment system. That was to abol-
lish the $4,l04 ceiling carried in
the 1855 annuities adjustment.
The Civil Service Commission
chairman said he could see no
legal or moral obligations on the
Government to provide full re-
tirement income to employees
whose working careers total 40
or as years, but who spent only
5 or 10 years in Federal Gov
eminent service.
Mr.. Young said all present
annuities and all those which
will start before January /. 1858,
either have been or will be sub
Jected to an increase under ex-
listing law in line with the latest
general increase in Federal SAL
aries.
Need of Boost Denied
"Since there has been no per-
Iceptible rise in the cost of living
in the past three years." he add
ed, land as pay adjustments
were taken into account as re-
Gently as last year, it is evident
that the factors of pay adjust
ment and cost of living suggest
no need whatever for a further
round Of increases in existing
annuities."
Mr.. Walters voiced hope that
the committee would bring out
a bill including provision for the
widow or widower of Govern
ment employe who died prior to
February 30. 1913. the cut of
date for provision for survivors.
Statements supporting the
move for increased annuities also
were submitted by the American
Federation OF Government En-
iployes: William c. Doherty, pres
ident of the National Association
of Letter Carriers, and by other
groups representing Government
workers and retired personnel.