33
L e a g u e of O re g o n
C ities
(Continued from page 32)
equal 1/60 of the average salary, times
the number of years of service. This
means that an employee with 30 years of
service w o u l d receive an annunity
amounting to half salary. The California
plan uses the 1/70 formula, which means
that an employee with 35 years of service
would receive half salary. Contributions
are increased for employees engaged in
hazardous occupations requiring retire
ment at an earlier age than the normal,
so that they can build up their credits in
a shorter period of time. The California
system makes this type of provision for
employees of police departments, fire de
partments, and the California State P a
trol. The New York system classifies em
ployees into five groups as follows: 1,
clerical and administrative, 2, mechanics
and laborers, 3, institutional, 4, firemen,
and 5, policemen.
12 A large percentage of the workers of
this country are now members of some
public or private retirement system or
are covered by the old age insurance
provisions of the social security act. In
view of the existence of a national policy
designed to provide most private em
ployees with a sufficient income to keep
them off relief rolls after retirement, it
would contribute to that national policy
if every retirement system would keep
contribution of employees who have been
members of the system for a period of
years, and would provide an annunity at
retirement age. A person transferring to
private employment or to public employ
ment covered by another retirement sys
tem would not earn full pension rights
either under the social security act or
under the ordinary retirement system. By
withholding his contributions and paying
an annunity, the objectives of these other
systems would be aided just as the Ore
gon system would be aided when em
ployees covered under other systems with
similar provisions became members of
the Oregon system. The Federal retire
ment act for civil service employees has,
for several years, provided that Federal
civil service employees that have contri
buted to the Federal svstem for 5 years
are no longer permitted to withdraw
their contributions, but will receive a
small annuity upon reaching age 62.
13 The primary objective of a retirement
system for the point of view of the public
or the employing agency, is to secure the
retirement of persons who are no longer
able to carry the responsibilities of their
work. To achieve this objective, it is ne
cessary to provide for the retirement also
of employees who become permanently
disabled prior to the normal age of re
tirement. A number of systems provide
for full retirement of employees who be
come permanently disabled after 10 or
15 yea^s of service.
14 The desire to “ die in the harness,” so
prevalent among aged individuals, can be
dealt with only through compulsory re
tirement, if one of the main objectives
of a retirement system is to be fulfilled.
15 Most plans permit those employees who
M o d e rn M erit
S y s te m P ra c tic e
(Continued from page 15)
Education Service, and as a vice
president of the International Pri
son Congress. He has served also as
instructor or faculty member in
three outstanding institutions of
higher learning. Mark Graves entered
the New York State service as an ex
aminer of accounts in 1907. He rose
through the ranks by merit promo
tions and finally became State Tax
Commissioner. He is president of the
National Tax Association, a member
of the Council of State Governments
and a Director of the Albany Sav
ings Bank.
REMOVAL OF THE INEFFICIENT
The old complaint that stagnating
civil service employees cannot readily
be removed applies to an outmoded
period. Modern merit system practice
provides for quick removal of ineffi
cient, drowsy or insubordinate employ
ees who have become unfit for contin
ued service. The old idea of hedging
the executive with restrictions and in
hibitions against removals has given
way to safe and sensible administrative
control over removals, which assures
fairness to the employee while not ham
stringing the executive.
cannot be replaced readily, or who have
unusual ability, to be employed past the
compulsory retirement age at the request
of the employing agency.
OSBURN HOTEL
and Apartments
Home Owned and Operated
Eugene, Oregon