The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-07-04
PENSION PLAN
FOR TEACHERS
IS ALL WRONG
More Universal System Needed
to Assure Success.
Carnegie Foundation Finds
Fault With Scheme.
SH0UL D ABANDON PRESENT ONE
Substitute Systematic Method
Under Bureau Head.
Make 1t on an Annuity Basis
Like Life Insurance.
More Universal System Needed
to Assure Success.
Carnegie Foundation Finds
Fault With Scheme.
SHOULD ABANDON PRESENT ONE
Substitute Systematic Method
Under Bureau Head.

New York, July 4.-The Carnegie
Foundation for the Advancement of
Teaching made public here plan of
far-reaching scope for insurance and
annuities for college professors in the
United States and Canada
The pension system which the foun-
dation adopted when it was estab-
lished ten years ago, and which has
consisted largely in the granting of
retiring allowances to aged professors
in certain colleges, has. it is frankly
declared, been found 'unsound' and it
is proposed to do away with it.
The faults of the present system and
the features of the new plan were set
forth In a report by DR.. Henry S.
Prichett, president of the founda-
ton, which was given out today. While
the new plan has not yet been adopted,
the report in favor of it has been is
sued with the full authority of the
trustees of the foundation, and some
time during the year they will con-
slider the question of putting the
scheme into practice.
Must Contribute to Fund.
The new plan proposes a system of
term insurance for teachers to the age
for life, accumulated by contributions
from the teachers and their respective
institutions. On it's part, the fOunda-
ton proposes to use its entire income
for the maintenance and development
of the system, contributing toward
protection of teachers against disabil-
ity, guaranteeing pensions for widows,
paying all expenses of administration,
and securing a good rate of interest
on all accommodations.
THE primary object says the re-
port, sis to construct a relief system
available to the great body of college
teachers
1.-The weaknesses OF the present pen
sion system as shown by experience of
ten years are these:
Under the existing rules a college
teacher acquires claim for a pension
only after twenty-five years of service
fn PROFESSIONAL grade or thirty years
OF service as professor and instructor
or as an instructor alone. This means
that the typical teacher is between 55
and so years of age before he has
under the rules, any protection for
himself or his family. As system of
relief, therefore, the existing pension
system touches but small PROPORTION
OF the men and women who teach in
the colleges and universities 1t holds
out to the man of 80 hope of security
which is likely to be illusory.
.'The fundamental defect in the ex-
lsung pension system lies in the as
sumption that free pensions for college
teachers would be permanently justi-
fled. In the light of ten years of ex-
per1ence and in the light of the expert
ence OF European pension systems, this
sumption seems to rest upon a de-
fect1ve social philosophy. No perma-
nent advantage will accrue to any call
ing or any profession by lifting from
the shoulders of it's members a load
which under moral and economic laws
they ought to BEAR
The immediate abandonment of the
pension system already inaugurated
by the foundation would NOT be in
tended, but the transportation from
one system to the other would he a.
matter of many years. 1t is proposed
that the new business of insurance
and annuities for teachers should be
carried on through a sub-agency con-
controlled by the foundation, which
might be called the Teachers Insur-
ance and Annuity association, incor-
porated under the laws of New York.
with moderate capital stock owned
by the foundation, and a paid-up sur
plus to insure complete stability
Such an agency would do a pure in
surance and annuity business under
the strict scrutiny of the state insur-
ance department. It would offer only
legitimate insurance including term
insurance to end at the age of 65 or
later, ordinary life policies, and life
policies paid-up in twenty, twenty
five and thirty years.
Widespread Demand for 1t.
For receiving deposits of teachers
and accumulationS toward annuities
there would be organized a second
sub-agency which might be termed
the Teachers Saving association. Such
colleges and teachers as enter into
the system would be given some par
ticipation in the direction of the bust
ness.
In reaching it's conclusion in favor
of this self-contributory form of a re-
lief system, investigators representing
the foundation have made a study of
the personal statements of some 1000
college teachers, and it appears that
there is a widespread demand for such
a