The Washington times., 1912-03-03
PENS|ONCOMM|TTEE
POINTS TO SYSTEMS
STARTED IN CITIES
Important Conclusions Are
Drawn From Study of
Civic and State Plans.

Teachers pension systems in various
States and cities are cited by the Com
mittee of One Hundred in its latest bull
letin as good examples OF superannu-
alton pensioning in practical form. and
lessons from the experience Of those In
charge Of these pension systems are
freely drawn by the COMMITTEES, which
is working for the establishment OF
pensions for Government clerks. Col
lection Of data on this subject was
made, however, not by former Senator
Charles Dick, director Of the Commit
tee Of One Hundred. but by the Blu
reau Of Labor Of the Department OF
Commerce and Labor.
The statistics were published as a
Senate document after the Bureau OF
Labor had collected them. The Com
mittee OF one hundred now tabulates
these figures and utilizes them to point
a moral and preach a lesson.
How to Frame q System.
There Is the greatest variety. says the
bulletin of the committee. in the essen
tial features of these pension systems,
and many Of them have been materially
changed since they were inaugurated.
1t 10 believed to be likely that other
changes must be made before all Of
them will be established on firm finan-
ciaI basis. 10 realized that q pen
sion system must be actuarially sound
II II Is to survive. and while an expert
might detect weaknesses at q glance,
the fatal defects which may exist in
the cases Of most OF these teachers
pension funds may not appear for
years.
The committee takes the position that.
with administration costs eliminated, a
teachers pension system cannot with
safety charge less for an annuity than
a life insurance company. The impor-
lance Of this fact is emphasized because
IS per cent Of the teachers pension
funds are maintained jointly by the
teachers and the municipality or the
State in which they teach. or entirely
by the voluntary contributions of the
teachers themselves. In nine cases, the
report declares. the teachers pay all,
while In seven they pay nothing, among
the latter being the State pension sys-
tens OF Maryland, New Jersey, and
Rhode Island. the permanent pension
fund of Boston, the pension system of
Charleston, 8. c.. the retirement fund
of the College of the City Of New York,
and the Elkin fund in Philadelphia.
New York Pension Plan.
The Elkin fund Is q pure benefaction,
being a donation of 8. 10000 and from
the interest an annuity OF $500 Is paid
teachers OF twenty-five years service
who are incapacitated and are without
means OF support" The pension fund
for the College of the City of New York
pays generously and Is supported entire
ly by the city. Rhode Island and New
Jersey pay adequate pensions, one-half
the average pay of the past five years,
specified in the former State to be not
over 500 a year. Maryland appropriates
$4,000 year and pays not over 500
a year to teachers OF twenty-five years
service In the State who are without
means of comfortable support.
Boston leYtes a tax of cents On each
5000 OF taxable property and pays $3.50
4 year to teachers incapacitated in the
service who are sixty-hve years OF age
or who have taught thirty years, twenty
of which shall have been in the city.
Charleston pensions its teachers over
the age OF sixty-five who have taught
in the city twenty-five years, or who
have taught twenty years and have be-
come incapacitated, II they stand in
need OF maintenance" but the pension
is only one-half the pay at time OF re-
ttrement and not over $50 a year.
The committee takes the position that
a 'teachers' pension system to be ade-
quate and a real pension system must
provide an annuity for old age which
will support one in decency and com
fort. Most OF the pension systems aim
at that result and pay nhnuities rang
ing from 500 TO $500, avera Eing some.
what over 500.