European Stars and Stripes (Newspaper) - October 31, 1990, Darmstadt, Hesse                                Page 8 a a a the stars and stripes wednesday. October 31.1990lump-sum retirement option to end5-year freeze affects most Federal workers by Chuck Vinch Washington Bureau Washington Congress has made it official a the popular Lump sum retirement option temporarily disappears dec. 1 for nearly All Federal employees. The five year freeze part of the deficit reduction package approved this past weekend is expected to save the government $7.6 billion through 1994, although the Money eventually will be spent. The option is selected by almost 50,000 retirees a year More than 70 percent of All those eligible even though most of it is taxable and taking it causes the total value of the pension to drop by As much As 20 percent according to the office of personnel management. The two part payment represents about 7 percent of a retirees lifetime Federal salary. The average Lump sum Benefit is $23,000, although payments can go As High As $100,000, pm officials said. The first Check representing half an employees contribution to the pension fund usually is paid soon after separation. The second Check is paid one year after separation and includes interest earned Over that time. Many employees tend to Overlook the negative aspects of the Lump sum option some experts said. Paul Yurachek who conducts retirement seminars for Federal agencies said government employees should think carefully before choosing the option. He said the payment propels most people into a higher tax bracket. Besides cutting the lifetime annuity value by up to 20 percent As much As half of the Lump sum payment can be lost to taxes he said. And employees under age 55 Are subject to an additional 10 percent Early retirement surtax Yurachek said. Every year that a Federal employee stays on the Job boosts his or her pension by about 2 percent and a higher pension makes annual Cost of living adjustments Worth More he said. The three year salary average used to compute benefits also increases each year a worker stays on the Job he said. People who Are Good financial planners and can comfortably Roll their Lump sum Money into High yield investments can Benefit from Tailung the option he said. A few employees Are exempted from the five year freeze provided they meet the usual age and service requirements a congressional staffer said. They include a workers who Are involuntarily separated As a result of layoffs or the abolishment of their jobs. A workers with terminal illnesses such As cancer or aids. These employees get 100 percent Lump sum payments Over six months rather than a year. A workers mobilized because of operation desert shield or asked to delay retirement because of the Middle East crisis. Those employees have until oct. 1, 1991, to retire and qualify for Lump sum payments. Freezing the retirement option for five years does not actually save Money in the Long run because the Lump sum represents benefits that otherwise must be paid in smaller instalments Over a longer time. New French fighter constructor Serge assault unveils in Paris a development Model of the rafale c 01, which will be Frances main Jet fighter in the Early 21st Century. It is to be available in five versions starting in 1996.prelate in Vatican scandal retires Vatican City a archbishop Paul c. Mar Cinkus the Burly american prelate implicated in Italy a biggest postwar banking scandal retired from Vatican service tuesday. The 68-year native of Cicero 111., said he planned to return to the United states and take up pastoral work in Chicago. The Vatican said Pope John Paul ii had accepted the resignation after repeated requests from Marcinkus that he be allowed to quit his Post As Deputy governor of the Vatican an Independent City state. The 6-foot-4 prelate who acted As a bodyguard to the Pope during his Early foreign travels headed the Vatican Bank a formally known As the Institute for religious works a for 20 years. But in a sweeping restructuring of the scandal tainted Bank last year the Vatican eliminated Marcinkus Post As president. He remained on in the Deputy governors position. A i have never done anything wrong a said Marcinkus by Telephone adding that some Day a i would like to set the record  but he said a i done to want people to think i have sour grapes. I want to leave Here on a Nappy  warrants for the arrest of Marcinkus and two Lay Vatican Bank officials were issued in 1987 after italian prosecutors charged them As accessories to the fraud it bankruptcy of Banco Ambrosiano Italy a largest private Bank which collapsed in 1982 with the disappearance of $1.3 billion. But the arrests were never carried out. Italy a constitutional court ruled that a Vatican italian treaty precluded any interference by italian authorities in Vatican affairs. The missing Money was in Loans made to 10 Dummy companies in latin America controlled by the Vatican Bank. Banco Ambrosiano had Lent the Money during the presidency of Roberto Calvi popularly known As a a god a banker because of his close ties with the Vatican. Calvi was found hanging from a London Bridge in june 1982. The Vatican Bank a major shareholder in Banco Ambrosiano agreed to pay $250 million to Banco ambro Sianos creditors but denied any wrongdoing. But the scandal led the Vatican to bring in leading Lay financial experts to manage the Bank. The affair also probably Cost Marcinkus promotion to Cardinal for which he had been rumoured to be in line before the scandal broke. He had been a familiar figure on the Golf course of one of Rome a most exclusive clubs but lowered his Public profile following the Ambrosiano Case. In a statement Marcinkus said he has spent 40 years away from Home. A now that i am free from administrative responsibilities i plan to return to the United states and make myself useful in whatever pastoral work i May be Able to do much like Many priests of my diocese Are doing a he said. Cardinal Joseph Bernardin of Chicago praised Marcinkus for his a great dedication to the Church and his personal  military Roundup nato extends naval Mission in med for another 6 weeks Naples Italy a amps a nato has extended the schedule of its naval on Call Force Mediterranean for six weeks and has ordered it to operate in the Eastern Mediterranean. The Force of eight ships each from a different Alliance nation was activated sept. 14 for a scheduled exercise. The activation was supposed to have ended wednesday. But nato announced monday that the activation will continue through dec. 11. The decision was made in response to a request on sept. 10 by Secretary of state James Baker to the North Atlantic Council. The flotillas Mission will be to demonstrate nato Solidarity in the Southern Region to report on shipping and to enhance preparation. The Force also a will compensate for the absence of other nato units deployed to the persian Gulf area a said . Navy capt. Steve Taylor a nato spokesman in Naples Italy. The Force originally was scheduled to operate Only in the Western and Central Mediterranean but it was ordered into the Eastern Mediterranean about two weeks ago. The Force under the control of the Naples headquartered Allied naval forces Southern Europe now is in route to a port Call in Taranto Italy Taylor said. After maintenance in Taranto the Force will visit Palermo Sicily before returning to the Eastern , Heidelberg teams win cheer leading contest Lan Stuhl Germany a amps a teams from Darmstadt and Heidelberg took top honors at the Usa eur youth services cheer leading championships on sunday. In the senior division for Ages 16-19, Darmstadt finished first and Amberg placed second. In the Junior division for students 13-15, Ramstein edged Heidelberg for first place. Approximately 75 cheerleaders from nine teams participated in the event before a crowd of about 200 spectators. The teams were judged for areas such As technique spirit formations and Overall Appeal. World today nepalese Center to study atmosphere in Himalayas Katmandu Nepal a Nepal has opened what it said was the worlds highest research Center to conduct studies on the atmosphere in the Himalayas. The Center a three Story Pyramid shaped Laboratory was opened at louche at an Altitude of 16,400 feet at the base of the 23,488-foot mount Yumori. The lab was a joint project of the Royal Nepal Academy of science and technology and the italian National research Council