The Washington herald., 1911-08-13
CLERKS PENSION
BILL WILL PASS
Continued from Page One.

| 1S1. a similar fund was started for men,
bers Of the fire department Police and
| firemen pension funds are now main
tained in nearly a hundred cities in
! about thirty States. The prime motive
| in establishing these pension funds was
! undoubtedly the extra hazardous nature
| Of the occupation. 1t is for the same
| reason that the number of years service
required to entitle one to a pension is
comparatively small. ranging from fif-
teen to twenty-five years. These funds
also pay pensions on retirement for dis
ability. In a very few cases the cities
themselves contribute nothing to these
funds, while in half the number the en-
tire expense is borne by the city. in
those cases where the employees do not
contribute directly to the fund, they gen.
orally maintain mutual benefit associa-
tions. and pay in either event from one
half Of per cent to 211 per cent of their
salary, ordinarily about l per cent. The
annuity paid is commonly one-half of
the salary
Teachers pension funds are compare
lively Of recent origin. The government
bulletin published a year and half ago
shows forty-six such funds in operation.
There is the greatest possible variety in
the way these funds are acquired, and
In the conditions and regulations under
which they are operated. No two are
exactly alike, except possibly within the
same State. In seven cases the teachers
bear none OF the expense, while in nine
they bear 1t all In some the State pays
the annuitles while in other cases the
cities pay them. In the majority of the
systems teachers contribute from l to
. per cent of their salary for a per-
iod of about thirty years, and the State
or city helps bear the expense. Both
age and disability pensions are generally
paid. Some OF the annuites are meager,
while others are liberal. In quite num-
ber of cases male teachers are required
to teach five years longer than female
teachers to become entitled to the age
pension.
Pay Out Millions.
There are over twenty-five transpor-
tation companies in the United States
and Canada, employing close to 1000. 900
men. who pay out every year nearly $S,-
100000 to about 1000 old and disabled en-
ployes This represents a rapid devel-
Opment. for 1t Is only eleven years since
the first railroad pension scheme main
tained entirely by the railroad company
was put into operation. These systems
have more points of resemblance than Of
difference. In most of them retirement
is compulsory at seventy years of age.
and the age limit for new employees in
order to be entitled to draw a pension
varies from thirty-five to forty-ive
years of age The pension paid varies
according to salary or wages and length
Of service. The railroads prefer to bear
the entire expense themselves.
In 1851 the Dominion of Canada came
into being and three years later super
annuation act was passed. This was to
some extent a straight pension system.
While the clerks contributed at first from
to per cent of their salaries, II was
reduced in 1873 the contributions being
inadequate, and the government paid the
difference. No return was made Of any
payments in case of death or resigna-
tion before reaching the pensionable age.
"A political issue arose over the way
in which the party in power executed the
law. that became very acute, and it was
said this was one OF the issues which
brought the present party into power A
new law was enacted in 1898 providing
for a fiat rate of assessment of per cent
on all salaries, and each employe gets
back, with per cent interest, all
that he pays in. This is not enough
to buy an adequate annuity for the
older clerks, as the government con-
tributes nothing, and the law on that ac-
count is not generally satisfactory.
Changes In England.
The first general pension law in Great
Britain was passed in 1910 and was a
straight government pension system. 1t
proved very expensive. and in 1922 was
abolished. and employees were compelled
to contribute.
This new law lasted only two years,
and was followed by another period OF
free pensions, which in turn was soon
succeeded by a law compelling contribu-
tions. The main objection to this was
that nothing was returned in case an
employc died or resigned before reaching
retirement. The last law of 1909 extends
the benefits of the pension fund to those
who resign and TO the dependents of those
who die in service.
New Zealand and New South Wales,
though both comparatively young coun-
tries, have had experience with civil
service retirement systems running back
over fifty years, and have changed the
systems seven times. New South Wales
maintained a pension system pure and
simple for thirty years, and then changed
to the contributory plan. each employe
paying per cent of his salary.
This system soon proved insolvent be-
cause the younger clerks were paying
the pensions of the older ones. and was
abolished, and a compulsory endowment
insurance law enacted, which Is still in
force.
Law in New Zealand.
New Zealand started with a straight
pension law, but, finding 1t expensive,
abolished it for all thereafter entering
the civil service; thea came compul
sorry savings scheme and later a COM
pulsory life insurance law. Both proved
inadequate for superannuated employees,
and in 1907 a pension law was passed re-
quiring contributions from all employees
of from to 10 per cent of the salary.
dependent on age at time of entering the
service. This law Is not expected to
make a self-supporting fund. and the
government contributes what is neces-
sary to pay all pensions in full.
Reference might be made TO the civil
pension system in force in Continental
Europe, but the experience Of English
speaking countries teaches plainly the
best course for the United States TO pur-
sue. A fair system can be devised whic h
will in time become self-sustaining."