Page 6--Tuesday, August 8, 1978-The Michigan Daily
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New- retirement law will benefit
A AC -For corn- "You're going to have a problem." capable people will go aomewhere
ies large and small ar)ss the coun- IN THE PAST, mandatory retire- else," says Ken Seeling of Walt Disney
raising the mandatory retirement ment gave employer and employee a Enterprises in Los Angeles.
to 70 means sticky problems but graceful way to end a declining career. Congress agreed, writing into the law
possibly substantial savings. Now personnel experts agree that an exemption that allows mandatory
he problems will gome from havin~g business must do better, formal retirement before -age 70 for top
lie oema wi soe fro having evaluations of person's work. policymakers who will get pensions of
yae tohrdens aroti em-ry "Employers are going to have to take more than $27,000 a year.
yees' performance, particuary more responsibility," says A.Haeworth SOME BELIEVE that the fewer
r emolovees and executives. Robertson, vice president of William M. people who retire, the fewer minorities,,
mis T A Y h ardritoesufid Mercer Inc., an employee benefits con- young people and women who will be
meni about hiring minorities and sulting firm. hired. "If we have very many staying
nen if older, white male employees "People will have to be told well in on, ,it would really damage
k until age 70 or beyond. r d advance how they are doing and promotions ... and equal employment
ut the new federal law forbidding evidence accumulated to document opportunity hiring," said Pacific
efitsy mairensibefoneplas work performance," said Sweeney. Telephone's Sweeney.
refits, mainly for pension plans. If EXECUTIVES POSE a particular A study by Sears, the giant retailer
e ork beyd 6, a savings to the problem. Businessmen argue that new supports this, suggesting that each
i results. With pensions eating up people and new ideas are needed in retirement triggers four promotions
ver larger pert of the benefit dollar, executive jobs. And high-level and the hiring of one new worker. The
nesses look for any possible executives are notoriously unwilling to change in mandatory retirement
hats hgive up power. means it will hire 7,000 fewer workers
ness bais s magnified any ty "There are always people waiting to and not make some 33,000 promotions
the Social Security system. move up. If nothing happens, those and job changes in the next five years,
pensions
Sears says. It adds that projected
nationally, the change could add one
per cent to the nation's unemployment
rate.
A Labor Department study says,
however, that fewer than 200,000 older
people would stay on, with minimal im-
pact on joblessness.
SOME challenge the basis for worries
about affirmative action. Jack Ossof-
sky, executive director of the National
Council on Aging and a lobbyist for the
new law, says the issue is one of
discrimination.
Private pension experts say they
don't know what the new law will do to
pension plans, but most see little effect
in the next five years.
ALL THE FORCES in the environ-
ment encouraging early retirement are
still there. Changing the law won't
change those," said Robertson, a for-
mer chief actuary for Social Security.
Preliminary government estimates say
raising mandatory retirement age will
save the-system .08 per cent of Social
Security's covered payroll, the total
pay of those covered by the system,
over the next 75 years.
THAT DOESN'T sound like much.
But-with a $1 trillion payroll, it means
savings averaging $800 million an-
nually. Because the effects of a higher
retirement age will be felt most 30 or
more years from now, the bulk of the
savings will occur in the next century -
when Social Security will be in financial
trouble and most in need of help.
help.
There is a critical gap in knowledge
about the impact of raising the man-
datory retirement age - no one knows
how many workers will stay on the job.
This means predictions of problems
and savings could change
dramatically, depending on how many
older Americans continue working.
Businessmen say personnel decisions
are going to be much tougher when the
new law goes into effect next year.
"SAY TWO PEOPLE work side-by-
side for years. One is pretty good and
one isn't so good," explains Jim
Sweeney of Pacific Telephone here.
"Along comes age 62 or 65 and the
company says to the not-so-good em-
ployee, you've got to retire. But it tells
the other one he can stay on.
Battered
GRAHAM, Texas (AP)-Water
began receding here yesterday as this
storm-ravaged state dug out from un-
der widely separated floods that killed
at least 25 people. Five persons were
missing.
As the rivers and creeks of central
Texas and portions of the hill country
began edging back toward their banks
after a week of torrential rain and
flooding, some. texans were looking
with a wary eye to the south.
TROPICAL STORM BESS turned
southward yesterday afternoon and
took a path roughly parallel to the
shore, said hurricane foecaster Gil
Clark.
But as the storm bore down on
southeast Mexico late yesterday, the
National hurricane Center in Miami
reported the development of a strong
new tropicaldepression east of the
Windward Islands.
The center said the new depression,
with winds up to 35 miles per hour, was
located about 860 miles southeast of San'
Juan, Puerto Rico, and was moving
west at about 12 miles per hour.
Because it was so far out to sea,
forecasters said, it could strengthen
greatly before reaching the continent
Texas eyes new storm
THE CENTER SAID the depression,
with winds of 35 mph, might develop in- underwater," said Police Chief Willi
to another tropical storm-which would Paul.
mean winds of 39 mph-and warned Bill McAda of the federal disa:
small craft in the Windward Islands not Assistance Administration said ae
to venture far from shore. surveys showed that about 150 hoi
and 40to50 businesses were inundat
Water and electric utilities were . HE SAID YOUNG County was ad
knocked out for an indefinite period to the list of those declared disa:
because of the flood waters in Graham, areas and thereby eligible for fed
a town of 7,500 residents south of funds and programs.
Wichita Falls. "We just don't know how State forecasts for the first part of
long it's going to take for this stuff to go week called for scattered shower
away, but all our city operations are parts of south Texas.
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Cons tanza 's successor:
Still an open question
WASHINGTON (AP)-National
women's groups circulated names
yesterday of several candidates to suc-
ceed Midge Costanza as President Car-
ter's chief aide on women's issues.
But the White House remained tight-
lipped on who it is considering for the
job, and when a decision will be made.
NOR WAS IT KNOWN whether the
duties of the job will change.
Among the names being circulated
were those of Arvonne Fraser, a State
Department official and wife of Rep.
Donald Fraser, (D-Minn.); Ann
Saunier of Dayton, Ohio; Connie
Plunkett, a friend of the Carters from
Carrollton, Ga.; and Jefflyn Johnson,
who runs a management consultant.
firm here.
Rosalyn Carter has been discussing
possible candidates with her husband
and his staff, according to Mary Hoyt,
Ms. Carter's press secretary.
COSTANZA RESIGNED the $56,000-
a-year position as assistant to the
president last week, citing differences
of style and approach with the Carter
administration.
Several months ago, her duties were
reduced mainly to lobbying for
ratification of the Equal Rights Amen-
dment and heading an inter-
departmental task force on women.
Previously, she was Carter's liaison
with various interest groups, including
minorities and women.
BEFORE SHE LEAVES the White
Housestaff Sept. 1 Costanza is expected
to help choose her successor. She retu;-
ns from vacation ina week.
Jody Powell, Carter's press
secretary, said he didn't know whether
the White-avse. had a-list-of Possible
successors, whether the job duties
would change or when a replacement
would be announced.
Mildred Jeffrey,, president of the
National Women's Political Caucus,
said women have been sending her
organization names of possible
replacements for Costanza.
"WE ARE PROCEEDING slowly,"
she said. "There are many fine women
who are qualified. We are under the
impression that the White House will
not be moving quickly on this."
A list of names of persons who are
qualified and interested in the job will
be given to the White House "at some
point," Jeffrey said.
Saunier, human resources executive
for the Mead Corm., said she was in-
terested in the job.
SHE WAS INTERVIEWED by
Costanza for a position as head of the
Natioal Advisory Committee on Women
several months ago, but removed her-
self from consideration because the
administration had provided no money
for the committee's operations.
Ms. Fraser, coordinator of Women in
Development for the Agency for Inter-
national Development, said she would
consider taking the job if it is offered.
She was regional coordinator for Car-
ter's presidential campaign in Wiscon-
sin, Iowa and Minnesota, and has been
active in Women's Equity Action
League, a splinter group from the
National Organization for women.
MR. FRASER SAID she returned
yesterday from a two-week tri to Africa