Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-06-11
PLAN FOR ORGANIZATION
OF TEACHERS PENSIONS
Would Afford Protection Both for
Individuals and Their Families
Against Dependence.
COMMISSION MAKES REPORT
Joint Body, Composed OF Rcpresen-
tatives Of Leading College Associa-
lions, Recommend System to Car
negie Foundation.

NE" YORK, June 10-To cnable
college teachers or professors. when
they enter that profession. to protect
ooth themselves and their families
against dependence. plan for the or
Sanization of a teachers insurance and
annuity association TO offer both in
suranco and old-age annuities to col
lege teachers upon most ADVANTAGEOUS
terms has been recommended to the
Carnegie Foundation for the Advance
ment Of Teaching by special commits
sion organized to consider that sub
oect. This proposed association would
be subject to tho supervision OF the
insurance department OF the State
The commission was "A joint one, rep
rcsenting the Carnegie Foundation. the
American Association Of University
Professors. the Association Of Ameri-
can Universities. the Association of
american Colleges, and tho National
Association of state Universities. For
years the Carnegie Foundation had
been giving constant study TO the pen
sion problem in an effort to evolve a
system that would be fair TO the teach
er, financially sound. and within rea-
sonable cost
All the material bearing on this sub
Ject which had been collected by tho
foundation was submitted to the com
mission In November last, and this
commission has made It's report
to the foundation in what is declared
TO be "the most careful and scientific
expression of the fundamentals of
pension system which has ever been
formulated. 1t conforms both TO the
results OF economic and social expert
ence and to the requirements Of ac-
tuarial science"
It's conclusions. based upon expert
advice. are declared TO be OF great in
terest and Importance to all colleg.
teachers OF the United States and Can
ada. The commission recommended to
the trustees of the Carnegie Founda-
ton. as the fundamental principles OF
sound pension system for teachers,
the following:
The function of a pension system is
to secure to the individual who par
ticipates in it's protection against the
risk OF dependence due to old age or
to disability.
OBLIGATION FIRST
RESTS on INDIVIDUAL
The obligation TO secure this pro-
lection for himself and for his family
rests first upon the individual
Men either on salary or on wages
The employer. whether a government
a corporation or an individual, has a
direct financial interest in the estab-
lishmcne Of some pension system which
shall enable old or disabled employees
to retire under satisfactory conditions.
The obligation of the employer to CO.
operate In sustaining pension system
Is primarily financial one, and in the
second place moral one.
"A pension system designed for any
group Of industrial o. vocational work
ers should rest upon the cooperation
OF employees and employer
Teachers pensions should be sti-
pendiary In character. amounting to a
fair proportion of the active pay.
In actuarial terms. a pension is a
deferred annuity upon the life of one
or more individuals. payable upon the
fullflment of certain conditions.
In order that an individual partici-
pating In pension system may be as
sured OF his annuity when due. one
condition Is indispe nsable-there must
De set aside, year by year. the reserve
necessary. with it's accumulated inter-
est. to provide the annuity at the age
agreed upon.
pension system conducted upon
the actuarial basis of setting aside
year by year. the necessary reserve
Is the only pension system whose cost
can be accurately estimated in advance
"A method by which a pension 10
paid for in advance in annual or
monthly installments is the most prac-
tical plan which can be devised for
purchasing deferred annuity, provid-
ed that the contributions begin early
in the employees career.
~ pension system should apply to
group whose members live under
comparable financial and economic con-
ditions. To attain it's full purpose.
participation in the pension system to
the extent of an agreed minimum
should form a condition of entering the
service or employment the members
or which are cooperating In the PEN
sion system"
with regard to the present pensions
OF the Carnegie Foundation, the COM
mission expressed the opinion that the
extension to all teachers now in the
associated institutions Of the privilege
or continuing in the present system
would completely meet their expecta
tons. The commission had no infor-
nation whether the great sum neces