The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1917-06-11
Teachers Insurance and An
nuity Assn Recommended
to Carnegie Foundation.
WILL HELP CAUSE
OF EDUCATION
BY Assuring Best Talent.
Wornout Teachers Not a
Charge on Society.
BY ASSOCIATED PRESS.


New York, June 10.-To enable col
lege teachers or professors when they
enter that profession, to protect both
themselves and their families against
dependence, a plan for the organiza-
ton of Teachers Insurance and An
nuity Association to offer both insur-
anCe and old age annuities to college
teachers upon most advantageous
terms has been recommended to the
Carnegie Foundation for the Advance
ment of Teaching, by a special COM
mission organized to consider that
subject. This proposed association
would be subject to the supervision
of the insurance department of the
state.
The commission was a joint one
representing the Carnegie Founda-
ton, the American Association of
University Professors, the Associa-
ton of American Colleges and the
National Association of State Univer-
sites. For years the Carnegie Foun-
dation had been giving constant study
to the pension problem in an effort to
evolve a system that would be fair to
the teacher, financially sound, and
within reasonable cost.
All the material bearing on this
subject which had been collected by
the Foundation was submitted to the
commission in November last, and
this commission now has made its re-
port to the Foundation in what is
declared to be "the most careful and
scientific expression of the fundamen-
tails of a pension system which has
ever been formulated. 1t conforms
both to the results of economic and
social experience and to the require
ments of actuarial science"
Its conclusions, based upon expert
advice, are declared to be of great
interest and Importance to all college
teachers of the United States and
Canada. The commission recommend
ed to the trustees of the Carnegie
Foundation, as the Fundamental prin-
ciples of a sound pension system for
teachers, the following:
"The function of a pension system
is to secure to the individual who
participates in it protection against
the risk of dependence due to old age
or to disability.
''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
are, in the economic sense, employees.
The employer, whether a government,
a corporation, or an individual, has
a direct financial interest in the estab-
ishment of some pension system
which shall enable old or disabled
employees to retire under satisfactory
conditions. The obligation of the
employer to cooperate in sustaining
a pension system is primarily a tinan-
ciaI one, and in the second place a
moral one.
"a pension system designed for
any group of industrial or vocational
workers should rest upon the cooper
alton of employees and employers
Teachers pensions should be sti-
Dendiary in character, amounting to
a fair proportion of the active pay.
an actuarial terms a pension is a
deferred annuity upon the life of one
or more individuals, payable upon the
fuIfllment of certain conditions.
"Tn order that an individual par
+icipating in a pension system may be
assured of his annuity when due, one
condition is indispensable: There
must be set aside, year by year, the
reserve necessary, with its accumu-
lated interest, to provide the annuity
at the age agreed upon.
"a pension system conducted upon
the actuarial basis of setting aside
YEAR bv year, the necessary reserve is
the only pension system whose cost
can be accurately estimated in adj
vance.
Maid for in advance in annual or
monthly installments is the most
practical plan which can be devised
For purchasing a deferred annuity
provided that the contributions begin
esrlv in the employees career.
"A pension system should apply to
q groi1p whose members live under
@oTparable financial and economic
Conditions. To attain its full pur-
nose. participation in the pension sys-
Fem to the extent of an agreed mini
,,,lIn, should form a condition Of en-
+arino the service or employment the
members of which are cooperating
in the pension system"
With regard to the present pen
s;one of the Carnegie Foundation, the
commission expressed the opinion