The Richmond palladium and sun-telegram., 1915-12-21

would be easy to calculate what the
cost would be to this community 1t
is probable that all or nearly all the
teachers in the city would accept its
provisions.
A committee Of Richmond teachers,
after investigation. reports that from
one-third to one-halt OF those eligible
to retire in this city would probably do
so. If we accept this estimate as ap-
proximately correct any one may cal
culate from the following facts the
average yearly cost to the taxpayers
OF Richmond.
Pension Statistics.
Average age at which forty one
teachers become eligible to retire after
thirty-five years Of service, 81 years
Expectancy of life at age of 81 is
16 years.
Average age at which teachers could
retire with maximum annuity of $500,
81 years.
Expectancy Of life at age of 62, -
years.
Average number of teachers eligible
% retire each year for Is years, 18.
Number OF teachers eligible to re-
ire in 1916, 13.
Average number on pension roll
ach year for Is years if all retire as
oon as eligible, (This is the maximum
averaged, "a.
Average number on roll If one-half
retire, II.
Average number on roll if one third
etire, g.
If only one-half or one third retire
he average annuity would approx
mate, $500.
Average annual payment to teachers
on basis of one-half retiring, $8,4OO.
Average annual payment to teachers
on basis Of one-third retiring, s5.60O
Average annual collection from
teachers after first year if all join,
$4,000
Payments by teachers first year,
1916, (approximate). 100000.
Produces Tables.
Based on these averages Mr.. Giles
presents two hypothetical tables per-
tanning to the financing OF the pension
system. The one based on half the
retirement OF half the teachers eligi-
BILE to retire shows that the first year
$4,000 would be paid into the fund
and at the end Of the year there would
be a balance OF $30,60O. the additional
5000 representing interest at 5 per
cent This fund would te sufficient to
provide for all pension annuities for
six years. The sew tn year deficit
Of $500 would have to be provided
for out Of the tuition fund. The next
three years a deficit of $500 each
year would be provided out Of the
same fund
II only one-third OF the teachers re-
tired who were eligible to do so no
deficit would have to be provided out
Of the tuition fund until the twelfth
year. That deficit would be $1,505.
The thirteenth and fourteenth years
there would be each year a deficit Of
$3,5OO.
The foregoing figures would indi-
cate that an average increase OF from
two to five cents in the tax rate of the
city would probably cover the expense
OF operating the law" the statement
concludes. 1T is true, also, that the
arrearages and assessments Of teach
ers during the first few years would
defer deficit In the fund for several
years before any increased levy would
be necessary. 1t must be admitted.
however, that receipts from gifts and
bequests are uncertain, that interest
on the average Is not a very large
item and that outside of these re-
sources what retired teacher receives
after the first year is paid by the COM
munity It is these facts which the
community must consider in making
its decision whether or not it will ac-
cept the contract implied in this law"