Average membership was 487 in the increase (subject to a maximum when the survivor annuity also com-
credit unions operating under State provision) is 12 percent of the flrst mences before 1958. Consider, for
charters and 498 for those operating $1,500 of the annual annuity and 8 example, the case of a retired em-
under the Federal act. Loans Out- percent of the balance. The follow- ployee whose annuity commencedin
standing totaled $1.6 billion, while ing tabulation shows the graded in- June 1955, at which time he was
paid-in share capital amounted to $2 surance applicable for those with an aged 62 and his wife was aged 60
billion. The average member in a annuity commencing at different or over. If his full annuity was
State-chartered credit union had dates in the past and in the near $1,500 a year, by taking an annuity
$279 in shares at the end of 1954, future: reduced by 5 percent (to $1,425) he
while average shareholdings among could provide a survivor annuity of
members of Federal credit unions -- $750 for his wife. Under the provi-
amounted to $259. sions of the new legislation, the em-
mwntage tncrensr ployee annuity is increased by 12
State-chartered credit unions held opplicablP to previ-
ous annuity percent, or to $1,596. The amount of
55 percent of all assets held by credit Comnwncirlg datr of annuity ,
unions in 1954. Their average assets Ewess
the widow’s annuity will depend
First upon the date of death of the hus-
amounted to $160,351, compared $1,500 over
with an average of $142,961for Fed- band. Thus, if it commenced in
-I- December 1955, it would be $825 a
eral credit unions. Before July 1955... .-_ :; 8
Based on total shareholdings,there July-December 1955-e. -.. 7 year (110 percent of $750); if it were
.January-June 1956. -. .- 8 6
was no appreciable difference be- July-December 1956__.. -.-.__ 6 4 to commence in December 1957, it
.January-June 19%. .-- . ..__ -_ 4 would be $765 (102 percent of $750).
tween State-chartered and Federal July-December 1957. .._.._._ ? :
credit unions in the overall dividend and if it were to commence after
rate-3 percent in 1954. 1957,no increase over the previously
The increases apply not only to scheduled amount of $750 would be
the regular annuity based on the provided.
Civil Service Retirement compulsory contributions but also to Approximately 300,000 annuitants
Act Amendments, 1955” any additional annuity purchased by benefited immediately from the en-
Only one law significantly amend- voluntary deposits of the employee actment of this legislation. The in-
ing the Civil Service Retirement Act (even though the latter are, of creased cost in the flrst full year of
was enacted in 1955 by the Eighty- course, not affected by the pay in. operation was estimated at about $45
fourth Congress, flrst session. On creases). million, while the total increase in
August 11, the President signed Pub- A maximum provision limits the cost over all future years, allowing
lic Law No. 369, which increased the amount of the increases. The sum for discounting at 3percent com-
of the previous regular annuity and pound interest, is about $450 million.
annuities of those then on the rolls
and those who will enter before 1958. the increase in both the regular an- No provision was made in the legis-
The increases were effective for Oc. nuity and the voluntary annuity (if
tober 1955. Another feature of the any) may not exceed $4,104 annu-
legislation is the liberalization of the ally ($342 monthly). Table 1 shows Table l.-Zllustrative annual in-
retirement system for Members of how this maximum provision works creases in civil service retirement
out for various illustrative caseswith annuities granted under Public
Congress. Law No. 369 to annuitants who re-
regular and voluntary annuities of tired before July 1955
Perhaps the primary reason for in- -
creasing the annuities of persons varying sizes. From one point of
now on the rolls was the enactment view, the bill discriminates in favor Amount of annuity before Amount of increase 1
of recent salary increases for classi- of those with voluntary annuities.
fied and postal employees (amount- If two individuals retired at the same
Bawd on Rased on
ing to about V/2--8 percent), in rec- time with the same total annuity, maxi-
formula 2 mum 3
ognition of recent cost-of-living and the first had a voluntary an-
changes. With such increases, for nuity while the second did not (or
a given grade classification the an. had a smaller voluntary annuity),
nuity payable for those retiring sev. the former in some casesreceives a
era1 years hence would, if no change greater increase.
were made in the retirement pro- The increases also affect the
visions, be signiilcantly larger than amounts paid to survivor annuitants Ii
for those already retired and those whose annuities begin before 1958, 104
retiring currently. Accordingly, some with the amount of the increase 1,104
adjustment seemed appropriate. based on the starting date of the
Under Public Law No. 369, for an- survivor annuity. The increases do * Actual inerwsc is smaller of fiewes shown in 2
nuitants on the rolls before July 1955 not apply, however, to all survivor mlumns below. first $1.560 of total annuity before in-
a 12 percent of
benefits based on the earnings of crease, plus 8 percent of remainder. (before increase).
3 $4,104 minus regular annuity
*Prepared in the Division of the Actu- present retired employees (or those 4 Distribution between regular annuity and oohm-
tarp annuity dors not affect the amount of increase.
ary. retiring before 1958) but rather only 5 Not spplimblr to this case.
20 Social Security
lation for financing this increased ceive a separate annuity based on (1) 2% percent of average pay
cost, which thus must be met over that service; otherwise he could re- as a Member of Congress since Au-
the future by increased Government ceive only a refund of contributions gust 1946, multiplied by years of ser-
contributions. for the other service. Public Law No. vice in Congress and creditable mili-
The remainder of the legislation 369 provides that all or any part of tary service.
affected the retirement system for other service may be included with (2) 2% percent of average pay as
Members of Congress, established in the congressional service. Such other a Member of Congress since August
the Civil Service Retirement Act. service is creditable only if per- 1946, multiplied by creditable years
Many provisions applicable to gen- formed before his separation from of service as an employee of Congress
eral Government employees are also service as a Member of Congress and (not in excess of 15 years).
applicable to Members of Congress, only if he is separated from that (3) 1% percent of average pay as
but certain provisions-including the service after July 1, 1955. The an- a Member of Congress since August
method of computing annuities--are nuity is based on his average pay as 1946, multiplied by years of all other
different. a Member of Congress since August creditable service.
Previously a Member of Congress 1946, and on the percentages used in The law will greatly increase the
who had other credited Government computing annuities based only on annuities of Members of Congress
service could not include it with his each type of service under the pro- who retire in the future with sub-
congressional service in computing visions covering such service alone. stantial amounts of relatively low-
his annuity. If he had at least 5 The annuity will be computed as the paid service in some other branch of
Years of other service, he could re- sum of the following: the Government.
Washington, Vol. 2, Sept.-Oct. 1955,
Recent Pzdlzcations* pp. 1’79-184.
A report on an investigation into
the “black market” in babies.
Social Security Administration Actuary, Social Security Adminis.
tration, Washington 25, D. C. General
BUREAU OF PUBLIC State
Methods for Establishing Work- INTERNATIONAL SERVICE. OFFICE OF BUCHANAN, NORMAN S., and ELLIS,
load and Staffing Standards. COMMISSIONER. Observation as a HOWARD S. Approaches to Eco-
Washington: The Bureau, June Way of Learning for International nomic Development. NewYork:
1955. 17 pp. Processed. Limited Social Workers. Washington: The Twentieth Century Fund, 1955.
free distribution; apply to the Service, June 1955. 19 pp. Proc- 494 pp. $5.
Bureau of Public Assistance, Social essed. Limited free distribution: An analysis of economic problems
Security Administration, Washing. apply to International Service, of underdeveloped areas.
ton 25, D. C. Social Security Administration, CUBER, JOHN F., and KENKEL, WIL.
CHILDREN’S BUREAU. L ea d e Ts h i p Washington 25, D. C. LIAM F. Social Stratification in
Through Consultation: How a INTERNATIONAL SERVICE. OFFICE OF the States. New York:
State Welfare Department Builds COMMISSIONER. Social Workers Appleton - Century - Crofts, Inc.,
Strengths in Agencies Providing Abroad Assess Their Training in 1954. 359 pp. $4.
Group Care for Children. Wash- the United States. (International “Family Allowance Scheme in the
ington: The Bureau, 1955. 44 pp. Technical Cooperation Series, No. Federal Republic of Germanv.”
Processed. 4.) Washington : The Service, Industry and Labour, Geneva] Vol.
Report of a regional conference 1955. 2’7 pp. Processed. Limited 13, June 1, 1955, PP. 519-521. 25
held in Nashville, Tenn., in Novem. free distribution; apply to Interna- cents.
ber 1954. Limited free distribution; tional Service, Social Security Ad- GARCIA CRUZ,
MIGUEL. La Seguridad
apply to the Children’s Bureau, So- ministration, Washington 25, D. C. Social :Bases, Evolution, Zmpor-
cial Security Administration, Wash- LOURIE, REGINALD S. “Delinquency tancia Economica, Social y Poli-
ington 25, D. C. Prevention-A Health Worker’s tica. Mexico City: Instituto
GREVILLE, T. N. E. Present Values of Job, Too.” Children, Washington, Mexican0 de1 Seguro Social, 1955.
OASZ Benefits in Current Payment Vol. 2, Sept.-Oct. 1955, pp. 168-172. 231 pp.
Status, 1940-54. (Actuarial Study 25 cents. The nature of social security and
No. 42.) Washington: Division MACDOUGALL, J. A. Analysis of Bene- information on the various national
of the Actuary, July 1955. 18 pp. fits, OASZ Program, 1954 Amend- systems, with a special chapter on
Processed. Limited free distribu- ments. (Actuarial Study No. 41.1 Mexico’s program.
tion: apply to the Division of the Washington: Social Security Ad- GUATEMALA. INSTITUTE GUATEMAL-
ministration, Division of the Actu- TECO DE SEGURIDAD SOCIAL. Zn-
*Prepared in the Library. Department ary, May 1955. 48 PP. Processed.
of i%?alth, Education, and Welfare. Orders forme Anual de la Gerencia, Ejer-
Limited free distribution; apply to cicio Julio 1954 - Junio 1955.
for items listed should be directed to
publishers and booksellers: Federal pub- Division of the Actuary, Social Se- Guatemala City: The Institute.
lications for which prices are listed should curity Administration, Washington 1955. 64 pp. Processed.
be ordered from the Superintendent of 25, D. C. The 1955 report on Guatemala’s
Documents, ‘U. S. Oovernment Printing THORNHILL, MARGARET A. “Unpro- program, which provides cash and
Oflice, Washington 25. D. C. tected Adoptions.” Children, medical benefits for work-connected
Bulletin, November 1955 21