The Bridgeport evening farmer., 1916-03-10
BRUERE SEES PERIL
IN PlLING PENSION
DEBT OF NEW YORK
Chamberlain Says Promo
ton of Unsound Pension
Plans Is Criminal Folly

New York, March 9.-Un1ess the
present city pension systems are put
upon sound foundation the city will
soon have to face an outlay that will
loom above all other financial prob
1ems, in the opinion of Chamberlain
Henry Bruere in a report to the Com
nittee on Pensions. Of which he is the
Secretary and Vice Chairman.
The report covers the nine funds
affecting $4,000 employees. Eight
are department funds and apply to
policemen, f1remen, teachers, street
cleaners, college professors, Health
Supreme Court funds. The ninth
fund covers all other municipal en-
ployes, and is known as the Grady
Law fund. The report presents for
the first time since the establishment
of city pension funds in 1857 an analy-
sis of their financial transactions and
a digest of pension provisions.
The City Chamberlain is frank to
say that the city will probably meet
the problem when it comes by escap-
ing payment, a course that Will, in his
opinion, have disastrous results to
employees and be destructive OF, eff
cheney in municipal service. His in
vestig ation has shown that all the
funds were launched with no ade-
quate calculation of future cost and
no provision to take care of increases.
In 1894 the city paid $685. 72 in
pensions; in 1904, $2,226,305, and in
1914 $5,o5s.167 to $500 claimants.
This Mr.. Bruere says, is only a, small
Beginning. flpast methods are fol-
lowed, he warns, the annual payments
may reach $1O,00O,OOo in ten years,
and $4o,00o,00o in thirty years.
The bulk of the funds is supplied by
the city. OF $60,028,272 received by
the funds from 1857 to 1914 the city
gave $50, 1o1, 416. In 1914 the city
contributed $4,467,61O of the $5,342,-
5o7 total. Few taxpayers realize to
what an extent they support the
funds OF the 1871, 416 contributed
by the city in the past 2,225,96S
was received from miscellaneous city
revenues, such as excise condemned
property, masked ball permits and
the like. In 1914 the ctty's indirect
or disguised support amounted to
S2,s03.e5S.
-Four of the pension funds are all
ready backed by the appropriating
powers of the city" Mr.. Bruere
writes ''They are those Of the po
lice, the 1remen, and the Supreme
Court. The city embarked on this
carte blanche procedure in 1904, the
first appropriation amounting to
$197, 900, and in 1914 it had increas-
ed to $1,664,553. During the past
eleven years the city has added ST.
S45,44s to it's indirect contribution to
the four funds. The demands of the
police and fire funds will inevitably
increase from the present 16 per cent.
and II per cent to about 35 per cent.
and 45 per cent. respectively of the
annual salary expenditures. The
bulk of this demand viii fall upon di-
rect taxation.
+The other five funds, including
that Of the teachers, are still restrict
mainly proceeds from miscellaneous
city revenues. The demands Of the
teachers fund have already outgrown
its resources, and a movement is in
progress to make the city assume the
deficiency. The same condition will
be reached in time by the other four
funds
The report points out that carrying
superannuated employees on the pay
rolls is q heavy charge upon the bud
get and efficiency. About 43 per cent
of all those in service work under
pension provisions which will not al
low them to retire. Another striking
defect of the system, Mr.. Bruere finds
is that 81 per cent. of the municipal
personnel or 2S,272 persons, can take
pensions long before there is any OBJ
legation for the taxpayer to support
them. Allowances based upon length
of service he finds unfair. AS proof,
he says that in the Fire Department
q high official was permitted to re-
tire in full health at the age of At on
a pension of $4,000 year or so per
cent. of his $4,000 salary. One
Fire Commissioner in the last week
of his administration retired six high
officials at more than half pay.
The Chamberlain condemns healthy
sharers in the city pension funds be-
ing re-employed by the city. He
found ffty-six pensioned fremen and
policemen employed in city depart
ments. drawing $40 PIT in annual pen
efons and $65,393 in salaries. Other
defects in the system are that the
present disability provision is too lib
eral, and that the contributions re-
quired from employees have no logical
relations to their prospective pen