Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-31


csc says President Eisenhower
row. and the new 61a per cent
checks of Federal employees be-
come effective for the first pay
period after that. The present
salary deduction rate is 6 per
cent. And employees who wo d
have had to retire before October
because Of the 70-year manda-
tory retirement age may stay ON
until October 81 to qualify for
the increased benefits.
Here are some of CSC's COM
parsons between the old and new
benefits.
COMPUTING ANNUITIES -
Annuities will be computed by
" per cent of salary Tor / per
cent plus $25 if this formula is
larger) for five years of service.
The next five years of service will
be computed at a IA per cent
rate Tor l per cent plus $3.50. All
years Of service in excess 10
years will be computed at 2 per
cent Cor l per cent plus $25 in
those rare cases where employees
would get a larger annuity by
this formula. The salary to be
computed will be the highest five
years average salary an employee
drew while he was in Govern
ment.
Here is an example: An en-
ploye with a highest five years
average salary of $4,000 annually
Iretires after 80 years service.
Under the old formula, he would
have drawn an annuity of $2,7OO
a year. Under the new one he
will draw $3.375 a year. The an
nuity is arrived at through the
following way. The first five
years of service is computed at
112 per cent of $4,000 times 5
for $3.50. The second five years
is computed at ia per cent of
$4,000 times 5 for $525. The 20
years of service in excess of the
first 10 years are computed at
2 per cent of $4,000 times 20
for $4,000. The total annuity,
therefore. is $3,375.
A second example: For an en-
ploye whose average nigh FIVE
year salary was $4,000 and who
retires after 80 years service, the
annuity under the old system
would have been $3.50 a year
Under the new system he will
receive $2,275. The annuity will
be figured this way: The / per
cent plus $25 formula will be
used for the first five years since
this is greater than the ~ per
cent computation. This will
amount to sos times 5-$325-
for the first five years. The Sec
ond five years would be COM
puted at 134 per cent of $4,000
times 5, for a total of $3.50. The
remaining 20 years would be
computed at per cent of $4,000
times 20, for $1,000. The total
would be $2,275 annual annuity
MORE COMPARISONS-Here
are some more csc comparisons
between the old and the new
retirement benefits.
Annuity Reductions for Earlier
Retirement
Old-Three per cent for each
year under age go retirement
permitted at age SIS after 80
years of service)
New-One per cent for each
year under age so retirement
permitted at age SIS after 80
years service.)
Annuity Reductions On Retire
ment to Provide Annuity for
Surviving Spouse
Old-5 per cent of first SIS. 1000
plus 10 per cent of annuity over
ST. 500, plus "a of / per cent fol
each year spouse is under age so
New-21a per cent of first
So 400, plus 10 per cent of an
nuity over $4,000. Reductions
are applied only to the portion
of the annuity the retiring
employe designates as a basis
for survivor annuity.
Disability Retirement
Old-No minimum disability
Employe who becomes disabled
latter five years of civilian service
may retire on immediate an
nuity. Annuity is stopped il
employe RECEIVERS from disability
New-The minimum disability
ANNUITY is the lesser of 40 pei
cent Of average salary, or the
ANNUITY computed under the
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