The sun., 1915-11-14
NEED FOR CURB ON
PENSIONS IS SEEN
City Investigation Bureau
Shows How Expenditures
Have Grown in 10 Years.
SHOT At LEGISLATION

The Bureau ot Municipal Investiga-
ton and Statistics Of the Department
OF Finance. In reporting 20 Cor ptroller
Prendergast the financial transactions o.
the city's pension funds for the ten
years ended January last. takes a
shot at the liberality with which the
Legislature disposes of public money in
making mandatory tho contributions
which the city mus, make to these nine
pension funds.
This is declared to be particularly so
with respect to the departments Of edu-
cation. police. fire and street cleaning.
where the accounts run into the mill
ions. 1t Is pointed out that In addition
to numerous fees associated with these
departments there go into the funds
other extensive appropriations. The
teachers fund, for example, receives
per cent. OF the city's share Of the ex-
else tax on liquor licenses, the police
fund $3.50, 900 annually from IL and the
City College I per cent 1t Is also dis
closed that the police and street cleaning
departments divert unexpended bal
ances OF salary appropriations to their
pension funds. and when annuities are
granted by tho commissioner in either
the Are or police department the city
must provide the necessary sums either
by buigetary allowance or through spe-
ciai revenue bonds.
The total receipts of all OF the funds
during the last ten years were s35,9s3,-
$50. OF this amour, s29.'1+.t'o, or s2.e
per cent. OF the whole. was contributed
by the city. and S5,230.ls+. or li.5 per
cent. was paid by prospective benehci-
aries through reductions of their sila-
ries. 4 total OF sl,0SS.,76 came from
interest on bank deposits and miscel-
laneous accretions.
In the case OF the tcachTs and the
policemen expenditures have exceeded
receipts during the ten years. Espe-
c,ally is this true. according to the re-
port. OF the Department of Education
fund. Since 1905 not only have eNpendi-
lures exceeded receipts by $4,000 hut
also the balance has been on the wrong
side for each of the last five years. so
the amount in the fund. which was
N,35S,3O5 go on January l. 1910. was
reduced to 1905. .4325I ON December 81
1914. 1t is declared that to pay now
to the present annuitants their usual
80 per cent allowance would trench into
the ss0O.o00 reserve required by law.
Direct appropriations to the Police
Department fund have grown from s193.-
gt6.26 in 1905 to sl.i5o.o00 In lyli !.
The privilcg. Of calling for issues Of
! special revenue bonds 10 supply dehcicr-
cies in the Fire Department, which was
granted by the Legislature In 1912. has
been taken advantage OF TO the eNten,
, OF Sl21.Oe1 co In that wear. Sli9,14l.10
! in 1913 and s2o7,314si in 1914. No
! percentage on salaries Is paid by the
members OF the Fire Department. An
! other instance Of rapid increase in cost
Is furnished by the annuities granted
to incapacitated employees NJ thirty
I years service whose departments have
| no special pension fund. The disburse.
| ments for this purpose In 1914 were
s30.95s.b0 and In 1914 ss7,ol2,s0.
The report concludes that "all the sys-
! TENS We're established In total, disregard
OF the principles of mathematics and
the practical experience and business
/ methods of prosperous insurance com.
panies. Ii Is automatic that ways mus,
I be found Of either increasing receipts
| or diminishing expenditures"