New-York tribune., 1916-07-03
Insurance Plan to Re-
place SyStem'FOund
UnsOund.
$4,225,000 PAID
OUT IN 10 YEARS
Professors Will Get Annu-
tiles and Dividends Under
New Scheme, Head Says.

The Carnegie Foundation for the
Advancement of Teaching, which since
its founding, ten years ago, has paid
out s4,225O00 in pensions TO aged pro-
fessors, confesses in its latest bulletin
that its pension scheme has been found
"unsound," and suggests that it be
abandoned.
As a substitute for the oollapsing
scheme-the most extensive Of its kind
ever attempted in the educational field
the foundation plans 10 go into the
practical insurance business. offering
teachers a system Of term insurance,
followed by an annuity for life, accu-
mulated by actual financial deposits
made by the teacher and his institu-
tion.
Opposition 10 Plan Arises.
With the issue of the bulletin yes
terday II became known that the Amer
lean Association Of College Professors
had been warned of the foundations
plan to abandon its pension scheme
A committee of prominent educators
has been appointed by the professors
20 investigate the proposed system.
This committee will make public its
report late in the summer. and it Is
believed that the attitude of the ma
iority OF teachers throughout the coun-
t-.- r.sef = . . 80 = 4
ings. Much opposition, IL is known, has
already developed at Columbia and
New York universities to the new Car
negie plan.
Retreat from the old plan Of bestow
ing pensions upon certain teachers was
foreshadowed more than year ago,
when Mcneil Sayre, a former employe
of the foundation, announced his be
lief that the organization had reached
q point where IL was unable TO meet its
obligations. The statement was de-
MED by Mr.. Carnegie, who asserted
that the income from the foundations
S14,250.000 endowment was ample TO
meet all demands.
Will Not Stop Old Pensions.
The system now proposed has not
been formally adopted by the founda
tion, but the bulletin in which it ap
pears Is written by DR.. Henry S.
Pritchett. president Of the foundation,
and is issued with the consent of the
trustees.
Immediate retreat from the present
pension system is not contemplated,
Mr.. Pritchett asserts. The complete
change from the old TO the new will
take many years. There is apparently
no intention TO cut off the pensions al
ready granted.
The new insurance and annuities are
10 be offered TO teachers at cost. and
will be handled by an agency controlled
by the foundation. incorporated under
the laws Of this state and under the
supervision of the State Insurance De
partment. The agency will be known
as the Teachers Insurance and Annuity
Association. Il is to have a paid up
surplus to insure its stability, and a
moderate share Of its capital stock will
be owned by the foundation. IL will be
strict business organization, collect
ing is deposits and paying out its divi-
dends as an ordinary insurance COM
pany, but presumably conducted with
more benefit 10 its clients.
Pension Plan Found False.
The entire administrative expense
will be paid by the foundation, which
expects 10 use its entire income TO de-
veiop the new system. Each client will
have a contract guaranteeing definite
benefits. Liberal interest is to be paid
on all deposits. Protection against dis
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