Williston graphic. (Williston, Williams County, N.D.) 1895-1919, 1913-12-11
TEACHERS FUND
LAW CRITICIZED
TEACHERS INSURANCE FUND
CONSIDERABLY CRITICIZED
BY INSURANCE MEN

BY INSURANCE MEN
Fargo, Dec. 6.-The North Dakota
teachers insurance and retirement
+, fund, which on Jan. 1, 1914, goes in
to effect, has been the subject of Sc
we're criticism in Fargo insurance cir
cles and by people generally.
The new law provides that "In be-
coming a teacher in the public schools
after Jan. 1, 1914, he or she shall be
conclusively deemed to join the fund
and 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
to about SIS per year. A teacher
paying into the fund for about twen-
ty five years would have paid alto
gether 1915 and after retirement
would be entitled to receive that
amount the rest of his or her life.
"Swindling the teachers the coun-
try by compelling them to contributH
? to unsound schemes which can only
pay fraction of their obligations"
said 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-
ing the teachers retirement insurance
pealing it altogether and distribut-
among the contributors entitled there
to.
"The reckless disregard of insur-
ance principles exemplifed in this
state-forced scheme is remarkable, 4
teacher paying into the fund for twen-
ty-fve years at the rate of SIS per
year would have paid altogether 1915,
and she would then be entitled to re-
ceivc an annuity of that amount for
the rest of her life.
"a statement prepared by the actu-
ary of The Wisconsin state department
showed that sixty-two annuitants
paid an average of s86S,71 into the
fund, of total of s22,s60, and have
received therefor annuities ct $375.S4,
In order to have the fund on self
supporting basis they should pay as
much as S4,962.25 each.
s'Thus the besetting vice Of assess
ment pension schemes the rude prin-
ciple of first come first served and the
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 even
assessment insolvency.
"The money Of young teachers IS
taken and placed at interest for the
purpose of paying annuitles to older
teachers on their retirement, but when
those young teachers become old there
will be little or nothing left IN the
found for them.
"Another point Of seeing 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 con-
tribute to a fund which they can never
eniov themselves but simply help tc
build up for the benefit of somebody
else.
"By all means a state should either
establish sound pension scheme fol
it's servants or none at all, is the ad
vice of The Life Insurance 1ndepend
ent on this subject, and it is pretty
sound advice, too. If the state KEEP
it's hands off the problem private
agencies would handle it and handle
It satisfactorily. Annuities at ade
ouate rates in reliable companies
would by judicious canvassing be pur:
chased by many teachers, but the fact
that the teachers are to be assessed
for pension fund under state aus
pices and presumably reliable, does
not dispose them to seek proper pro-
lection elsewhere. It is rather a pc
culiar position for a state enlighten
ed enough to sell insurance to its
citizens and yet negligent of the duty
of guaranteeing proper superannua'
tion scheme to its teachers"