Evening star., 1911-08-13
Information for Benefit of Gov
ernment Employees.
PROGRESS IN PENSIONS
Systems Adopted by Municipalities
Here and in Europe.
WORK OF GENERAL COMMITTEE
Views of Former Senator Dick, in
Charge Of Movement for
Classified Clerks.

SASA<SSxAAOA
Along with its work in securing legisla-
tfon for the benefit of the classified clerks
in the government service, the committee
of one hundred. recently organized, is
making a comprehensive study Of various
civil pension systems in operation In the
United States and in other countries.
Some Of these systems are quite old
and the literature on the subject Is vol
luminous, but former Senator Charles
Dick. director Of the work Of the COM
mittee, reports marked progress In the in
quiry.
The investigation being carried on by
the committee will result in the publica-
ton later of series of articles on these
various pension systems for the purpose
of advising Congress and the public as
to the progress made in this country and
elsewhere In establishing civil pensions,
the mistakes that have been made by
other nations, and pointing out the dan
gers to be avoided by Congress when it
legislates on the subject.
Systems in Cities.
Upon being asked regarding the work
former Senator Dick said:
In the past ten years civil pensions
have been established in a large number
of cities in tn United States. and are
maintained b. q considerable number of
railroads and industrial corporations. The
United States is one of the few leading
nations which does not maintain a gen
eral civil pension list. Officers of our
army. navy and Marine Corps draw three
fy1IQ ART favc v~.tf~
1859 federal judges who have served ten
years and reached the age of seventy
years may retire with full pay for the
remainder Of their lives.
The oldest municipal pension fund in
the United States was founded by New
York city in 1857 for its policemen. In
1871 similar fund was started for men,
bers of the fire department Police and
firemen pension funds are now maintained
in nearly one hundred cities in about
thirty states. The prime motive in estab-
fishing these pension funds was un-
doubtedly the extra hazardous nature of
the occupation. 1t Is for the same reason
that the number Of years service re-
quired to entitle one to a pension is COM
paratively small. ranging from fifteen to
twenty-five years. These funds also pay
pensions on retirement for disability.
Methods Adopted.
"In a very few cases the cities them
selves contribute nothing to these funds.
while in half the number the entire ex-
pense is borne by the city. In those
cases where the employees do not con-
tribute directly to the fund they gen.
orally maintain mutual benefit associa-
tions and pay in either event from one
half Of per cent to 21z per cent Of their
salary, ordinarily about 1 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 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 condition and regulation 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
I'm some the state pays the annuities,
while in other cases the cities pay them.
In the majority of the systems teachers
contribute from 1 to 2 per cent Of their
and the state or city helps bear the eX-
pense. Both age and disability pensions
are generally paid. Some of the annui-
ties are meager, while others are liberal.
In quite number of cases male teachers
are required to teach five years longer
than female teachers to become entitled
to the age pension.
Among Transportation Companies.
There are over twenty-five trans
portation companies in the United States
and Canada, employing close to million
men, who pay out every year nearly
three millions dollars to about seven
thousand old and disabled employees. This
represents a rapid development. for it
is only eleven years since the first rail-
road pension scheme, maintained 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 compul-
sorry at seventy years of age, and the age
limit for new employees in order to be
entitled to draw pension varies from
thirty-tive to forty-tve years of age. The
pension paid varies according to salary
or wages and length of service. The rail-
roads prefer to bear the entire expense
themselves.
In 1867 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. 1t was
reduced in 1873, the contributions were
inadequate. and the government paid the
difference No return was made of any
payments in case of death or resignation
before reaching the pensionable age. A
political issue that became very acute
arose over the way In which the party
in power executed the law, and Ii was
said this was one of the issues which
brought the present party into power. A
new law was enacted in 1888 providing
for a fiat rate OF assessment of per
cent on all salaries, and each employe
gets back, with 4 per cent interest all
that he pays in. This is not enough to
buy an adequate annuity for the Older
clerks as the government contributes
nothing, and the law on that account is
not generally satisfactory.
General Law in Britain.
THE frst general pension law in
Great Britain was passed In 1910, ana
was a straight government pension
system. 1t proved very expensive
and in 1922 was abolished. and en-
pIoyes 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
contributions. The main objection to
this was that nothing was returned In
case an employe died or resigned be-
fore 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
countries. have had experience with
civil service retirement systems run
ming back over fifty years. and have