Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1916-10-27
NO SHORTAGE N
PENSION RESERVES
CHARGES IN INSPECTION
BUREAUS REPORT

That there i9 deficiency of 5OO,-
600 or any sim whatever ia pension
fund reserves of the industrial insur-
ance commission, rs charged by the
bureau of inspection, is denied by the
commission in a report written by
John M. Wilson the republican men,
her, who declares the published aaser-
tion of the alleged shortage to be
incorrect and m .eleading."
As assistant attorney general. Mr..
Wilson was legal advisor of the in
dustrial insurance commission ant.
convicted Gillics twice last winter for
frauds upon tie accident funds of the
department, following which Wilson
was appointed commissioner upon re-
organization of that body. He is con-
sidered an authority on industrial ir-
surance law and administration in
this state.
In reply to the bureaus findings he
made the following official state
mcnt:
incorrect and Misleading"
1uc 6tateuonL CuC
report Of the bureau of inspection of
it's examination Of tho industrial in
surance department to the effect that
a shortage of 100000 exists in the
reserve fund is both incorrect and
misleading and an unjust criticism
upon the administration of the law
by the department.
1.-THE plain truth is that there is
no shortage in the reserve fund. This
statement is based upon an assump-
ticn that under the present method of
computing reserves the fund is now
insufficient to the extent of approxi-
mately 100000 by reason of the fact
that the law itsolf does not provide
for the putting aside Of sufficient
sum to care for the expectancy Of
life under the American mortality
tables.
Subdivision e. section s, of chap
ter "a, laws OF 1911, being the Work
mems Compensation Law. provides
that for every case of injury result
ing in death or permanent total dis
ability, 1t shall be the duty Of the
department TO forthwith notify the
state treasurer, and he shall set apart
out of the accident fund sum OF
money for the case to be known as
the estimated lump valuo of the
monthly payments provided for it. to
be calculated upon the theory that
monthly payment Of $40 to a person
80 years of age, is equal to lump
sum payment, according to the expec-
fancy of life as fixed by the Ameri-
can mortality tables Of $4,000. but
the total in no case to exceed the
sum Of $4,000"
Commissions Hands Tied.
He tnen quotes an opinion given
by the attorney general January 9,
1912, and adds:
1T will thus be seen that the law
by its plain provision and as inter-
preted by the attorney general, lin
it's the amount which can be set aside
by the commission in any particular
case to $4,000.
1T is further provided in sub
division e. section 5. above quoted.
that amy deficiency shall be made
good out of and any balance or over
plus shall revert to the accident
fund
"It develops from actual expert.
ence in the administration OF the law
that the sum Of $4,000 is inadequate
to provide 4 sufficient reserve fund
to pay pensions throughout the ex-
pectancy of life. 1t is still an open
question as to whether the refund
into the accident fund by reason OF
deaths and remarriages will be suf-
ficient to take care of the insufficient
sum originally set aside to the re-
serve under the limitation OF $4Ooo.
ut is a fact that the reserve fund
neces ssary to provide pensions Tor the
period of life expectancy to wlcows
and totally disabled persons unasr
80 years of age is more than $4ooo
Whether that will be over-balanced
by the reversion1 above mentloheu
cannot be definitely determined unth
the law has been administered ror
loncer period of years. 1t was intendeu
nv the law that, &C is plainly express
u.
ed, If there is a deficiency 1t sha'i os
set aside later. The inconsistency OF
this provision would require the IN.
dustries of the future to take care OF
the accidents of today, directly con-
trarv to the statement Of tho policy
of the law
Legislature Must Amend. .,
However, .hose matters are all
matters for legislative consideration
Two legislatures have been in session
since the law vas passed and no cor
rcctions have pean made, presuii"oiy
for the reason that the experience V.
the administratio of the Jaw WAS i''
sufficient to enable them to proV'oe
the remedy if any is needed. H. rs d
matter of fact. the present systei" u
reserves as provided by the law Is
inadequate, it should be remedled D.!