Evening star., 1917-10-01
Social Insurance, in Effect.

From the standpoint Of employees. re-
tirement legislation is in effect social in
surance. From the standpoint of the
government the administrative feature is
important. and both government and
public must take into consideration the
financial or actuarial features. No sys-
tenn is sound which does not conform to
sound actuarial experience.
Failure to calculate from the actuary's
standpoint has resulted in the failure of
many retirement systems. Even the
Carnegie pension scheme for college pro-
fessors with its enormous reserves has
found 1t necessary to plan reorganization
on an actuarial basis. The system was
established without due consideration of
costs and expenditures over period of
years. Such insurance problems as re-
serve. assessment basis. advantages of a
straight or contributory plan and the
taken into account
There Is no doubt. from experience,
that any system ought to have an act
uarial reserve. This view is supported
by present governmental practice, in
Guiding the more recent municipal sys-
TENS established under the British gov
ernment. My main idea has been to get
together thorough analysis of all the
OF government, Of employees and the pub
lie. and to present the arguments on
both sides Of mooted questions
More Complex Than Supposed.
THE most casual consideration of
pension plans indicate that the prob
| lem is a more complex one than is gen
| orally supposed 1t is not merely a
question of voting a certain fund or a
! certain scale of pensions and the ages
at which they are to be paid Failure
to consider the questions involved have
! resulted in one long record of disa sters
| for retirement projects.
These problems include the question
| Of what shall be done, in the event of
] a contributory plan. with the man who
retires after paying for years. before
the age at which his pension is pay
| able. Also the question of what Is Ia
be done if he dies shortly after he
has become eligible for a pension
| that Is whether his widow is entitled to
his pension. Then there are the argu-
| ments for and against a Straight pen
experience in working out all these
problems, the expert opinions upon
them. and the arguments on both sides
where there Is difference of opinion.
II have not sought to urge one plan
as opposed to another. 1 have endeavor
| ed to show what must be considered IL
putting any one scheme into operation
! l have not sought to recommend any
policy to the government. but simply
! to place at the disposal of officials thu
Sbest opinions available on all aspects O.
the questions involved So far as / know
such a study has not been made before,
Scope Of Mr.. Meriam's Work.
| A reading of the first chapter give,
an idea of the scope of Mr.. Merriam,
| work He considers therein the thre,
parties to the system, defining the OBJ
jects to be sought by each Thos,
sought by the government are listed a,
| ..the elimination of the superannuated
Improvement Of morale, retention O.
/ men now lost. attracting men to tn,
service" and these are summed up az
Improvement of the STAFF" which is tn,
sole object of governmental considera
tion.
In respect to employees future entranc,
must be considered. as well as the statu
of present employees. The scheme mus,
be such that the employe does not los,
j his freedom of contract.
4 He then deals with five objections from
!, the public point of view. which are
Continued on Second Ra0al