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Show Page HILL TOP TIMES 6 August 13, 1976 oruice Retirement System Civil The Financing The Air Force has provided civilian personnel offices with a detailed fact sheet on how the Civil Service Retirement System is financed. It has been prepared because of "considerable interest in the present and future costs of the system and the financial soundness of the retirement fund." Public Law enacted in 1969, regulated the method of financing the system. 91-9- 3, Air Force personnel officials noted that the Civil Service Commission (CSC) earlier this year told a Senate committee that the CSC considers the retirement fund to be financially sound and believes the current financing provisions to be adequate. However, it was noted that the CSC continues to study other retirement an effort to find improved systems in alternative financing methods. Copies of the fact sheet may be reviewed in the labor and employe relations office of the base civilian personnel branch, Bldg. 1245, ext. 7128. (LOGNEWS) Following are some published facts about financing the Civil Service retirement system: Public Law 3 (1969) provides the current method of financing the Civil Service Retirement System. There are four major financing provisions: 91-9- Employe-Agenc- y Contributions The first provision increased employe and matching agency contributions to 7 per cent of payroll (7.5 per cent for firefighters and law enforcement officers). This 14 per cent of payroll is higher than the "static normal cost" of the system, which is now estimated at 13.77 per cent of interest. For example, the October 1975 General Schedule pay increase of 5 per cent generated an additional retirement liability of $1.1 billion. In effect, it increased average salaries which would be used in the computation of annuities. This $1.1 billion liability will be funded in 30 equal annual appropriations to the Retirement Fund of $70 million. The first payment will be on June 30, 1976 and the last one in 2005. The liberalization of benefits for law enforcement officers August Climatology By Maj. Edward J. Perantoni. Det. fi, 15th Weather Squadron August will he the last hot. dry month before the fall season sets in The mean daily maximum temperature that can bo expected will be 86 degrees, down only two degrees from July: and the mean daily minimum temperature will be 62 degrees. As for extremes, a scorching 101 degrees was recorded in August. 19f9 and a chilly 39 degrees recorded in August, ' 14. For those of you who cultivated your tomato patch late, you can rest assured that your plants will still be safe from a freeze. However, this does not mean that they can be left in the tender loving arms of Mother Nature, because she will provide you with only four days of rain out of 31 for a mean total of 0 82 inches. With such a small amount of precipitation, it is no wonder that the mean relative humidity w ill be only 35 per cent with a morning maximum of 45 per cent and an afternoon minimum of 25 per cent. Even though there has been few- thunderstorm days during the past several weeks, that does not mean that the season is finished. We can expect six days of thunderstorms with the most active period being between 6 and 11 p m. local. As with most thunderstorms, we will have the usual blowing dust and gusty winds As for cloud cover, statistics indicate that the sky will be partly cloudy most of the month. Thirty five per cent of the time the sky will be clear and ten pT cent of the time the sky will be overcast. Part of the overcast condition can le attributed to thunderstorm activity and part can be attributed to that one cold front that will pas thro-.rarea in the latter .? thi-down and getting us part of August, cooling fall for prepared Office Monster Bites 30-ye- ar Gayle Anderson Ogden ALC Safety Office By R. The ear shattering shriek ended in a crash and sudden silence. Then a low sobbing moan stirred the stunned office staff into activity. The injured girl was comforted 30-ye- ar without moving her back, awaiting more professional treatment. Personnel crowded around the office cubicle, sympathy and concern showing on every face. What happened? How badly was the girl hurt? Finally the welcome sight of white cloaked attendents with a stretcher. The doctor appeared, examined the injured girl and directed painstaking positioning of the slight figure on the canvas stretcher. He spoke briefly with the concerned supervisor and then he, too. departed, following the swiftly moving litter and bearers. The Office Monster had once again claimed a victim. What sort of cruel, malicious creature threatens the peace and safety of the office environment? A huge, eyes, needle sharp teeth, and grotesque thing of blood-re- wish it were so. Wish that the THING AH claws? slashing that cripples and disables so many of our office workers each year could be so easily identified. No, our monster is even more horrible. It lies ignored until the victim is ripe for the kill. Then it strikes - shattering spines, tearing tendons and muscle, fracturing and chipping bones. We have all seen the deadly off ice monster, but not all of us have recognized the brute in his clever disguises. Sometimes it lurks a.s a drawer left open, just right for tripping the unwary prey. Sometimes it hides in the office chair, casters ready ir.nxent guise of a sw.vel-typ- e to jump out from ur.der a worker using it as a step ladder. At other times th- - merciless beast stretches out as a loose extension ( rd.f r a spill of water, an unnoticed paper clip or pencil, ther. infinite patience it waits to unleash its Service). Military Benefits The third major financing provision states that benefits based on military service credited toward Civil Service Retirement will be paid directly from general revenues on an annual basis. In fiscal year 1975, an estimated $409 million in such benefits was paid. Interest Paid Yearly The fourth and final financing provision stipulates that interest on the "unfunded" liability will bepaid each year. The estimated unfunded liability of the Fund was $90.4 billion as of July 1, 1974. At a rate of 5 per cent, one year's interest on this amount would be $4.5 billion. 3 Public Law provided that the full amount of the military service benefits and interest on the unfunded liabilitv would not be paid until 1980 and later. Ten per cent of these amounts was paid in 1971 and it was to increase each year in increments of 10 per cent until it reaches 100 per cent in 1980. In fiscal year 1975. the scheduled payment was 50 per cent of the total of the two amounts or $2.45 billion. These amounts are transferred to the Fund by the Treasury each year from general revenues not otherwise appropriated. d 91-9- -- Outlays Increase vicious dcstriii.?:',:, The office M aster is real. It doesn't display the and spectacular gore disfigurement of the industrial machine accident monster, but it can bite harder and leave more lasting injuries. A simple spill from a chair cost a prettv m- rotary two major operations, more than $100,000 m medical and other related expenses, with eventual medical retirement due to partial paralysis. The Office Monster can be conquered. How? By exposing its disguises Recognizing the traps before they can be sprung Watch for tripping hazards. Keep floors clean and free of or obstacles. Avoid haste. Inspect office furniture ar.d equipment regularly so repairs or replacement action can be initiated. In short - take a good look at your iUtf Search out the monster and destroy him he destroys yfu Monster killing wv,ponsare supplied by AFR the number of retirees, amount of salaries ar.d level of annuities increase each year, the outlays of the Civil Service Retirement System increase. Each of these increases is As provided for under Public Law financing provisions. The prospective increase in the number of retirees is considered in evaluating the existing liabilities. Salary-increasegenerate 30 annual installments to pav off the increased liability. Consumer Price Index-relateannuity increases add amounts to the unfunded liability. While the unfunded liability-inot amortized, payment of interest will keep it from growing to the Fund. large enough endanger As long as there is a work-forcgenerating income, there should be no need to pay off the unfunded liability. 91-9- 3 - s d s vp-,l- e - b Expose Disguise and firefighters created additional prospective benefits presently worth $664 million which is being funded by annual period. appropriations of $41 million over a Through June 30, 1975, there were 25 such liabilities being amortized with a total scheduled annual appropriation of $1,495 billion. (Additional retirement liability resulting from Postal Service salary increases due to negotitations with the employe unions is paid into the Fund over a period by the Postal payroll. (The static normal cost is the per cent of payroll which should be contributed to the Fund for a typical group of new employes each year until they retire without consideration of future inflation and salary increases which are considered "dynamic" costs and are covered by other financing provisions. These amounts, when added to agency and employe contributions and investment income, will be adequate to finance expected disbursements. In 1980, for instance, total receipts are expected to be over about $5 billion higher than expected $20 billion, disbursements. On July 1, 1965, the Fund balance was $20.5 billion. On July l, 1975, it was $39 billion. It is estimated to reach $60.4 billion in 1980. The second major financing provision stipulates that the cost of new benefits or salary increase on which benefits are based be amortized in 30 equal annual installments of principal and le-for- e 127-10- Disbursements Rising paragraph Disbursements from the Civil Service Retirement Fund rose from $2.4 billion in fiscal year 1969 to $7 2 billion in 1975. and undercurrent Office of Management and Budget assumption are expected to be almost $15billion in W) Employe and agency matching contributions v.re $2 H billion in 1969. $5 billion in 1975, and are exr-ctto be over $6 billion in Vm Thus, while employe and agency r f r.tr, t tons alone were sufficient to meet disbursement "for 1969. they would have been inadequate n and f !;rr. H Take years 1ro iflrs Additional . Pavmnts Pubbc Law financing provided additional into the Fund of over $4 billion in fiscal year W, ,,r,j is expected to provrJp over $10 billion additional in '' 9l-fi- aiiaM for pure has- use or Kierything adertid in th- plication mint be made or of h purchaser. without ibrto r.risnn national regard Patronage olor, r !iio, f pairnn. confirmed iota t ion or r ' tin f this poJi of cquat opportuniti M n f t rtisr-- will - rf. rn. r result mil- r fuvh'- ifni ,! MorM-di- f,y S,rr 1 ls;.if: , i ad- - j, ,.,' ,.'!' , T o At A stock n America. 2fK) vvars ;it tt V-- X 4 v. , -- x!$m vimc locution. ion. :,:r. y -, lif sjt a,r ( ,fv |