Gambar halaman
PDF
ePub

TABLE IX. Showing the total maximum cost of retiring at age 70 all employees now in the classified civil service in the District of Columbia on annuities equal to one-half pay (maximum, $600), maximum deduction from salary, 8 per cent.

[blocks in formation]

1 For net cost to Government after deducting future loss from superannuation, see Table X, p. 53.

COST OF ESTABLISHING PROPOSED PLAN.

The foregoing table shows merely the aggregate appropriations required of the Government during the next 50 years, distributed according to the present age of the employees who are to receive them, and takes no account of the saving that would result from the removal of the superannuated. In considering any plan of retirement it is but fair to consider not only the expense which the Government must incur to establish the plan, but also the saving resulting from its establishment. The total appropriations given in the preceding table are shown in the table that follows, distributed according to amount required each year until the plan is finally self-supporting, and as an offset to these appropriations is given the loss that will result each year from superannuation if no plan of retirement is established. In the last column of this table is shown the maximum annual cost over the loss from superannuation, or the actual cost of es

tablishing the proposed plan. With each year, following the twentieth, the annual appropriation required for the plan will be less than the amount that the Government will lose through superannuation if no plan is adopted. The amounts prefixed by a minus sign (-) in the last column of the table are the annual and increasing gains to the Government under the plan. At the end of 36 years the saving under the plan will exceed the amount advanced in excess of the loss from superannuation during the first 20 years. With each succeeding year the saving will increase, because the appropriation required will diminish, until finally, at the end of 50 years, the plan will be selfsupporting and no further appropriations will be required. On the other hand, if no plan of retirement is adopted the loss from superannuation will increase as long as the service continues to grow.

It should be remembered also that the estimate of loss from superannuation is based on the very conservative returns made by department chiefs, and the commission believes that in fact the loss from superannuation will equal the cost of the proposed plan in possibly 8 or 10 years instead of in 20 years, and that the Government will have saved the entire cost of the plan in the course of 20 years instead of in 36 years.

TABLE X.-Showing (a) the maximum amount required to be appropriated by the Government to retire 22,754 employees now in the permanent classified civil service in the District of Columbia on annuities equal to half pay (maximum annuity, $600), provided each employee below 70 years of age be required to deposit with the Government monthly such sum as will, with interest at 4 per cent, compounded annually, provide such annuity on reaching age 70, provided that no monthly deposit by any employee now in the service shall exceed 8 per cent of the monthly pay (where such monthly deposit of 8 per cent, with interest, will not provide the required annuity, the Government to provide the difference); (b) the amount of salaries paid but not earned that would be saved if all employees were retired at age 70; and (c) the net cost to the Government of establishing the plan, and the gain to the Government from its establishment.

[blocks in formation]

1 The increasing annual loss that will take place if no plan of retirement is adopted can not be shown beyond the thirty-sixth year because of the large number of persons who will hereafter enter the service at ages above 34, and hence reach the age of 70 (from which age the loss is calculated) within the next 36 years.

The gain to the Government from the establishment of the plan will continue to increase because the Government will be relieved of the increasing burden of superannuation, while the appropriation required to put the plan into operation will diminish until finally at the end of 50 years it will cease.

The following table shows the deductions that are required at various ages to provide the annuities of half pay, with maximum annuity of $600. The deductions are based on the Combined Experience Table of Mortality and interest at 4 per cent, compounded

annually, and are sufficient to permit (1) the return to an employee leaving the service prior to the age of retirement, of all contributions with interest at 4 per cent, compounded annually; and (2) the return to the legal representatives of an employee dying after retirement, of any balance of the amount on hand at the date of retirement not paid in annuities. These rates are made possible by the use of 4 per cent interest instead of 34 per cent interest, and the elimination of optional settlements with retiring employees under which a selection would be exercised against the Government, since employees in poor health would take cash and employees physically above the average would take annuities. Under the proposed plan all employees remaining in the service to age 70 are required to take the one form of annuity settlement.

TABLE XI.-Showing the amount required to be deposited monthly from various ages to age 70 to provide an annuity payable quarterly during remainder of life (first payment in 3 months after reaching age 70), such annuity to equal half pay (maximum annuity, $600), with provision for return at death of annuitant of balance on deposit at date of retirement and not thereafter paid in annuities.

[Combined Experience Table of Mortality; interest at 4 per cent, compounded annually.]

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][ocr errors][merged small][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][ocr errors][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

For annual salaries of $1,200 or less the annuity will be 50 per cent of salary. For annual salaries above $1,200 the annuity will be $600.

* For annual salaries of $1,200 or less the figures shown in column (h) are per cents of salaries. For annual salaries above $1,200 the figures are dollars.

TABLE XI.-Showing the amount required to be deposited monthly from various ages to age 70 to provide an annuity payable quarterly during remainder of life, etc.-Con.

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

For annual salaries of $1,200 or less the annuity will be 50 per cent of salary. For annual salaries above $1,200 the annuity will be $600.

2 For annual salaries of $1,200 or less the figures shown in column (h) are per cents of salaries. For annual salaries above $1,200 the figures are dollars.

RECOMMENDATIONS OF THE COMMISSION.

As a result of its investigation, the commission makes four recommendations, the first three referring respectively to those at the age of retirement when the plan goes into effect, to those remaining in the service after the plan goes into effect, and to those who shall come into the service after the plan goes into effect. The fourth

« SebelumnyaLanjutkan »