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


The bill (S-2875 increases the
computation factor for employees
generally from is per cent of
the high Swear average salary"
times years of service to 2 per
cent of the high 5-year average
salary" times years of service
with respect to all service in ex-
cess of 5 years. The present is
per cent computation rate would
remain for the first years of
computation. For lower-salaried
iemployes the present 1-per-cent-
Iplus-$25 formula could be used
for the first 5 years computation
If this amount was more than is
per cent formula.
Here is an example of how
the bill would apply to an en-
Iploye with 30 years of service
whose highest f1ve-year average
was $4,000. Under present law
ne would receive an annuity. Of
s2.250 a year Under the Johns
ton bill he would receive $2.875,
an increase of $625. This figure
lis arrived at thusly: $4,000 times
lis per cent times 5 years of
service is $375; $4,000 times 2
per cent times rs years of serv-
ice is $4,000; the $375 added to
the $500 totals $2,875.
2. Optional Retirement
The bill permits optional re-
tirement after 80 years of serv-
ice at any age. However, if under
the age of go at the time of re-
tirement, the annuity of the
employee is reduced on sliding
scale based on the number OF
months the employe is under the
age of so at the time of retire
ment.
The employees annuity is re-
duced by only 1/12 of / per cent
for each month under the age of
60 up to 80 months, by 70 of l
per cent of each month over 80
months and by 1/6 of l per cent
for each month over so months.
3. Involuntary Separation
The bill authorizes an immedi-
ate annuity to employees involun-
tarily separated through no fault
of their own who have attained
the age of SO years and have
rendered at least 20 years of
service. Under present law. a
void exists with respect to en-
ployes with 20 years but less
than rs years of service. Such
employees cannot withdraw their
contributions from the retire
ment fund and they must wait
until they reach the age of So
years before becoming entitled
to deferred annuity.
The bill alleviates this situa-
ton at least with respect to
Iolder-age employees who have
reached the point in life when
it is difficult. if indeed not i'm
possible to start another career,
by providing an immediate an
nuity on reduced basis to en-
ployes involuntarily separated
who have attained the age of so
years and have rendered 20 years
of service.
SurvivOrship Benefits-EmpIOyes
Under the bill-the same as
under present law-employes &C
quire survivorship coverage upon
completion of 5 years of service.
A. Covered male employees
Survived by:
/. Widow only-Regardless of
her age. she gets an immediate
annuity equal to so per cent of
the annuity earned by her hus-
band at the time of his death.
payable until her death or re-
marriage. Under present law, she
receives no annuity until she
attains the age of so years.
2. Widow and children-Widow
receives immediate annuity the
same as above, plus $500 per
year for each child under the age
of 10. Under the present law,
the annuity of each child ranges
from minimum Of a few dol
lars a month to maximum of
$3.50 per year.
3. Children only-Each child
under the age of 10 receives an
immediate annuity of S720 per
year. Under present law, the
annuity of each child ranges
from a few dollars a month to
a maximum of $480 per year.
B. Covered female employees
Survived by:
/. Widower only-The bill pro-
vides an immediate annuity
equal to so per cent of the an
nuity earned by the wife at the
time of her death to dependent"
physically disabled) widowers