The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-12-06
TEACHERS FUND
LAW CRITICISED
NEW NORTH DAKOTA TEACHERS
INSURANCE AND RETIREMENT
FUND, WHICH GOES INTO EF-
Feet JAN. T., CONSIDERABLY
CRITICIZED REINSURANCE MEN

The North Dakota teachers insur-
ance and retirement fund, which on
Jan. l, 1914, goes into effect, has been
the subject Of severe criticism in Far
go insurance circles and by people
generally.
The new Law provides that lin be-
coming a teacher in the public schools
after Jan. 1, 1914, he or she shall be
c~onclusively deemed to join the fund
n to undertake and agree to pay
such assessments, and to have such
assessments deducted from his or her
salary as herein provided,
The North Dakota law is largely
copied after the law now in effect in
Wisconsin where annual levies are
made upon all public school teachers
for the general state teachers retire
ment fund. The assessment amounts
70 about SIS per year. A teacher
paying into the fund for about twenty
five years would have paid altogether
1915 and after retirement would be
entitled to receive that amount the
rest OF his or her life.
~"Swindling the teachers Of the coun .
try by compelling them to contribute
TO unsound schemes which can only
pay a fraction Of their obligations, -
said a prominent Fargo insurance man
in discussing the new law today, ZAP
pears to be quite the rule rather than
the exception. In Wisconsin the
teachers pension scheme is so bad
that a bill has been introduced re-
pealing it altogether and distribute
ing the teachers retirement insurance
among the contributors entitled there
to.
The reckless disregard Of insur-
ance principles eXemplified in this
state-forced scheme is remarkable. A
teacher paying into the fund for TWEEN
ty-five years at thu rate of SIS per
year would have paid altogether $$75,
and she would then be entitled to re-
celve an annuity of that amount for
the rest of her life.
"A statement prepared by the actu-
airy Of the Wisconsin state department
showed that sixty-two annuitants
fund, or a total Of $22, $50, and have
received therefor annuities of $375.S4.
In order to have the fund on a self
supporting basis they should pay as
much as $4,962.25 each.
Thus the besetting vice of assess
ment pension schemes the rude prin
ciple Of first come first served and tn,
devil take the. hindmost' is embodied
in the Wisconsin scheme and that in
an intensified form. The dispropor-
ton between contributions charged
and benefits promised is enormous
and goes beyond all records Of ever
assessment insolvency.
The money of young teachers is
taken and placed at interest for the
purpose Of paying annuities to older
teachers on their retirement, but when
those young teachers become old theme
will be little or nothing left in the
fund for them.
Another point of seeming unfair
ness about this law is that many of
the young teachers may marry long
before they have served the required
length of time and retire from active
service, thereby being forced
to contribute to a fund which
they can never enjoy themselves but
simply help to build up for the benefit
Of somebody else. IA,
BY all means a state should either
establish a sound pension scheme for
It's servants or none at all, is the ad-
vice of The Life Insurance Independ-
ent on this subject, and it Is pretty
sound advice. too. If the state kept
its hands off the problem private
agencies would handle it and handle
1t satisfactorily. Annuities at ADEQUATE
rates in reliable companies would bv
judictous canvassing be purchased by
many teachers, but the fact that the
teachers are to be assessed for a. pen
sion fund under state auspices and
presumably reliable, does not DISPOSE
them to seek proper protection else
where. 1t is rather a peculiar position
for a state enlightened enough to sell
insurance to it's citizens and vet neg
ligent of the duty Of guaranteeing a
proper approximation scheme to its
teachers"