Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-01

aspect. The measure must be cl
1T can come up for Senate action.
However. the bills sponsors
feel they have made a satisfac-
tory exclamation regarding the
cost, and they expect the policy
group to schedule Senate action
within the next week or two.
The bills sponsors estimate
the cost to the retirement fund
at $3.50 million a year. However,
several conservative Southerners
on the policy committee ques-
TONED this figure, declaring that
administration officials say the
cost will be closer to $500 million
a year
The difference centers around
Silt million additional which
the bill would bring into the re-
tirement fund as a result of rails
ing the Governments interest on
Federal bonds purchased by the
civil service retirement system
from 3 to 31a per cent.
Administration officials say
this is actually no savings at all,
but merely bookkeeping trans
action. They say the cost to the
Federal Government would re-
main the same. the only differ
ence being that the Silt million
would be transferred from the
Treasury to the civil service re-
tirement system. The ultimate
cost to the American taxpayer
would be the same, they declare
/ However, the bills sponsors
point out that the Government
previously paid as high as 4 per
cent interest on the bonds and
that increasing the present
per cent interest rate to 31a per
cent is long overdue. Further
more, they declare that if the
Government didn't sell bonds to
the civil service retirement sys-
TEN. it would have to sell bonds
elsewhere and pay at least a
per cent interest rate. Therefore
the proposed 312 per cent in
tereSt rate contained in the bill
would still save the Government
money, they declare.
The retirement bill was APP
proved several weeks ago by the
Senate Civil Service Committee
Part Of the measures cost would
be betrayed by having Federal
workers contribute 2 per cent
of their salary instead of the
present 6 per cent.
~
HEALTH INSURANCE-Fed-
eral employe leaders who at
tended special meeting yester-
day Of the Senate Civil Service
Committee on health insurance
report that some progress was
made.
The committees staff, acting
to end the dispute which has
held up action on the major
health insurance plan. met with
employe leaders and representa-
tiveS Of private health insurance
lgroups.
Roy Hallbeck, legislative direc-
tor of the AFL-CIO National
Federation Of Post Office Clerks,
proposed that the major health
insurance legislation for Govern
ment workers be amended to
have the way for eventual pay
roll deduction for employees and
also Government-financed basic
health insurance.
Under this proposal. Federal
employees this year would receive
free Of charge major health in
surance coverage for themselves
and their families. The major
health insurance would ; apply
to long. expensive illness which
entail expenses over and above
those covered by regular private
basic health insurance plans.
The bill also would be
amended to direct the Genera.
Accounting Office to make q
study and make recommends.
tons to Congress next year fol
a system Of payroll deductions
for basic health insurance COW
erage.
Presumably the GAO would be-
requested to furnish details of q
basic health insurance plar
whereby the Government would
pay at least half the cost and
the employees the other half.
This would give Federal en-
ployes both major and basic
health insurance benefits-the
former free of charge and the
latter at a half cost. Meanwhile
Federal workers would get the