Page 12-Sunday, December 10, 1978-The Michigan Daily
MILITARY, CIVIL SERVICE AFFECTED:
Carter may cut pensions
WASHINGTON (AP) - As part of its
anti-inflation program, the Carter ad-
ministration is considering a proposal
to cut back automatic cost-of-living ad-
justments in military and civil service
pensions.,
The proposal would scrap the current
twice-a-year boosts in the federal pen-
sions, substituting a single yearly in-
crease parallel to the annual inflation
adjustments -made in Social Security
benefits.
THE PROPOSAL could save tax-
payers - and cost the pensioners - as
much as $400 million to $500 million a
year depending on the rate of inflation,
officials estimate.
It could thus give further impetus to
President Carter's pledge to trim the
government's $39 billion deficit to less
than $30 billion in the fiscal 1980 budget
that he will submit to Congress next
month.
But the move also is sure to infuriate
pensioners and their various lobbying
organizations, who fought bitterly
against the adoption of the present cost-
of-living adjustment formula in place of
a more generous one considered
earlier.
THE ADMINISTRATION officials,
who asked not to be named, said
' ^ yrtt t ,y t~ta >t J .; : + . /
__- bibte to VIP
gffor thlat .sperial. I
41
41
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t V'J I A 1 J
President Carter has not made a final
decision on whether to seek the cut-
back.
But they pointed out that the move
would be consistent with anti-inflation
pronouncements calling on all groups in
America to make sacrifices in the in-
terest of combatting rising prices.
"I think they're pretty serious," one
Civil Service Commission official said.
"I think it's going to be part of the
budget, if it isn't already."
IF CARTER decides to seek revisions
in the pension plan, the action would
complement another controversial set
of proposals to trim future pay raises
for federal blue-collar and white-collar
workers.
As reported earlier, presidential ad-
visers say Carter is convinced that
federal workers tend to be paid more
than civilians doing the same work, and
has ordered aides to draft "pay
reform" proposals.
The administration considered both
"pay reform" and pension cutback
proposals during the last Congress. But
it discarded them on grounds that they
would stir up too much controversy
when White House lobbyists already
had their hands full pressing for com-
prehensive revision of civil service per-
sonnel practices.
The civil service revisions, which
Carter called the centerpiece of his
governmental reorganization efforts,
were passed overwhelmingly by
Congress.
By contrast, there was a protracted
legislative battle before Congress in
1976 to alter the pension adjustment
formula that was allowing civil service
and military pensioners to get cost-of-
living increases that exceeded the rate
of inflation.
Kemp f House Daily Photo by ANDY FREEBER
Ann Arbor's most famous historic building, the Kempf House, was open for visitors this weekend. The white Greek reviva
style house at 312 S. Division Street is part museum and part history, providing a neat synopsis of the city's growth ar
development. Built around 1850-the exact date is unknown-Kempf House was occupied by musician and teacher Reub
Kempf and his family over a 63-year period. Since the city of Ann Arbor purchased the house in 1969-to restore it and mal
it a historic building-the furnishings include some originals from the 1800s, like the 98-year-old Steinway grand piano and
Chippendale secretary from bout 1760. Kempf House will be open again from 2:00 until 5:00 today, and on Friday, the Tappa
Junior High School French Club will hold a bake sale there.
SIX fired at S.
(Continued from Page 1)
Quad cafeteria
unfair in her firing, and never ex-
plained' to the workerswhy she was
punishing them.
"She should have let us know what
was going on, but all she did was punch
us out, and said if we left we would be
fired," said Hirzel.
Teachout said the workers under-
stood they were disobeying policy.
"I GAVE THEM the option to stay or
leave, so they knew what they were
doing," she said. "This was job aban-
donment, so I had the right to fire
rt" %lI DC C AAA DT
Fall % %\ U JIX C l IVl"F\
1979
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them."
Her job was to enforce the new polic
Teachout claimed, and said she thoug
her docking would show the worke
they were supposed to obey the rule.
The workers who were fired fe
Teachout had no right to expect the
to work without being paid. Margueri~
Mills, one of thedishroom work leads
said, "What she did was totall
unreasonable, expecting us to wor
without being paid."
Craig Bateman, one of the dishroor
employees who was fired, said, "Wh
difference does it make if we take o
break in the cafeteria? We shouldn
have to stand around in the dishroor
waiting for more dishes to come."
South Quad Building Director Mar
Bewley said she was not aware of th
problem, although she realized ther
was some concern because of the brea
policy, but had no idea it has escalate
to such a point.
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