New-York tribune., 1917-04-10
A Vicious Pension Scheme
Bill for Teachers Unjust Both to Them
and to Taxpayers


Sir: The Lockwood Ellenbogen teachers
pension bill now before the New York Legis-
ature it has already passed the Senate and
is a special order in the Assembly for Tues
day. April 1O-is based upon a vicious prln-
cipe If that principle is enacted INTO law
the city Of New York will be committed to
policy OF continuous injustice to both ITS
employees and its taxpayers. The matter
can be shortly put. The city's employe
either receives already wage commensurate
with the character OF his position in the
citv's civil service or he does not. If the
former is the case it is n wanton eXtrava-
gance to compel the city for all time here
after to make 20 each Of its civil employees,
because he lives to be sixty-five years old IN
an occunation endangerng neither life, limb
nor health, a present every year for the rest
Of his life Of sum equal to one-quarter OF
the annual salary paid him while he was
working for the city. On the other hand. if
he is not now sufficiently paid it is a gross
injustice for the city to say TO him:
I'VE are not paying you enough to expect
YOU 10 be efficient. and we shall keep on
underpaying you, but if you live twenty or
thirty, or forty years longer as the case may
be) until you are sixty-fve years old. we shall
require you to do no further work and during
the scanty portion of your life yet remaining
We will allow you every year from the clty's
treasury a sum equal to one-fourth Of the
insufficient salary paid you while you were
IN our employ
The history Of civil pensions for hundred
years has demonstrated that when they are
deferred payments for work already done and
their receipt is contingent on the employees
growing old enough he is far more apt to be
interested in attaining the prescribed age
than in the efficient performance of the duties
of his position and his official superior. who
is perhaps in the same predicament, Will be
slow TO discharge him for neficiency.
The wise employer knows full well that if
he is to keep his employees Interested and
efficient he must pay them for their work as
they do it and on a scale that recognizes the
quality OF the services expected. The com
petent. wideawake man who does not receive
such pay Will either quit his job or relax his
diligence.
Either 20 convert public employees into
dependent class with hands outstretched for
charitable dole or to substitute the promise
Of pensions BY and by for the payment now
OF a Just and adequate return for the ser
vices rendered is vicious in principle and
demoralizing to the public service There 10
no need to adopt either course.
The Pomerene bill in the United States
Senate embodies the true principle TO be OBJ
served and the sound public policy TO be fol-
lowed in establishing a system Of pensions
for the governments civil employees. The
Senate Committee on the Civil Service has
unanimously reported in favor of the bill.
Briefly the bill provides as follows;
A retiring age is fixed and the amount OF
the annuity to be paid thereafter The en-
ploye contributes each year such percentage
Of his earnings as invested and compounded
AZ AZ per cent interest annually would pro-
duce the annuity The government guaran-
tees the safety Of the fund and the rate OF
interest II the employe is separated from
the service before reaching the retiring age
he or his estate gets back all his contribu-
tions with a, per cent compound interest
Ii after reaching the retiring age he dies
without having exhausted the sum invested
for him. his estate gets the surplus.
This is a manly, straightforward and bust
nessike arrangement into which any man
can enter without any loss of sef-respect. II
is neither an extravagant pseudo-humanitar
ian scheme nor does it make the payment OF
any part OF the employees wages contingent
upon his growing old.
HORACE f. DEMING.
Chairman Committee on Superannuatlon.
HENRY ". HARD0N.
Chairman Committee on Law. Civil Service
Reform Association.
New York. April :, 1917.