New-York tribune., 1917-06-11
Commission Reports Pres
ent System of Aiding
Teachers Unsound
Annuity Method
Is Recommended
Would Have College In
structors Shoulder Obi
cations to Families

Abandonment OF the present system
Of free pensions for college teachers
from the Carnegie Foundation for the
Advancement of Teaching has been
recommended by a special commission
appointed to study the subject, tne
Foundation states in bulletin made
public yesterday. The recommends
tions uphold plan put forward by the
Foundation in July, 1916.
II is proposed to organize teachers
insurance and annuity association
which would "enable college teachers
or professors, when they enter their
profession, to protect both themselves
and their families against dependence
Insurance and old age annuities
would be offered to college teachers
upon most advantageous terms. The
pension fund would thus become an
Insurance fund, a motive Of the change
being that mo permanent advantage
will accrue to any profession by hftlhg
from the shoulders of It's members d"
load which under morai and economic
laws they ought TO bear"
One of the salient features OF the
commissions recommendation con
Germs obligatory participation by teach-
ers in the insurance system. lie
commission declares: TO attain us
full purpose, participation IN the per
sion system TO the extent OF 'an agreed
minimum should form condition OF
entering the service or employment, the
members of which are cooperating AZ
the pension system
Radical changes in the present sys-
tenn have been long forecast Admls-
sion was made by the Foundation IN
July. shortly after the appointment
of the commission. that its pension sys-
tenn had been found "unsound.' The
problem faced by the Foundation has
been said to be that its expenditures
were annually increasing, as pensioners
were added TO its lists,without pro-
portionate increases in income.
The commissions recommendations
in fact state that pension system con-
Quoted upon the basis Of setting aside,
year by year, the necessary reserve,
is the only system whose cost can be
accurately estimated in advance.
More than two years ago Mcneil
Sayre, a pension expert and former
member of the Foundation, declared
items. This Andrew Carnegie denied,
asserting that the income from the
Foundations Sl5,000,0O0 endowment
was enough to meet its needs.
Mr.. Carnegie determined to establish
the pension fund in April. 1905, and
gave the development OF his idea into
the hands Of the presidents of twenty
five leading American universities and
colleges Since its organization the
Foundation has paid out almost $1,000
600 in pensions.
For years, according to the announce
ment made yesterday, the Foundation
has 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.
The commission was a Joint one,
representing the Carnegie Foundation,
the American Association of Cniver-
sity Professors, the Association Of
American Universities, the Association
of American Colleges and the National
Association of State Universities. All
material concerning the subject OF pen
sions which had been collected by the
Foundation was turned over to the
commission last November The re-
port, containing the radical recommen-
dations, which the commission submit
ted, is said 10 be "the most careful
and scientific expression Of the funda-
mentals of pension system which has
ever been formulated. conforming both
60 the results of economic and social
experience and TO the requirements OF
actuarial science"
Its recommendations to the trustees
Of the Foundation reveal continued
marked desire. which has been in evi-
dence in many Of the Foundations bull
letns, 10 solve the question of correct
social philosophy in pension admins
tration.
"The function Of a pension system
says the commissions report, sis 10 Sc
cure 20 the individual who participates
in IL protection against the risk of
dependence due 10 old age or 10 dis
ability. The obligation TO secure this
protection for himself and for his fam
lily 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-
lishment Of some pension system which
shall enable old or disabled employees
10 retire under satisfactory conditions
The obligation of the employer TO CO.
operate IN sustaining a pension system
is primarily a financial one, and in the
second place. a moral one. A pension
system designed for any group Of vo-
cational WORKERS should rest upon the
cooperation Of employees and employer.
"in order that an individual partici-
pating IN a pension system may be as
Iured Of his annuity when due. one con-
Gition is indispensable. There must be
set aside, year by year, the reserve
neces sary, with its accumulated inter
est, 20 provide the annuity at The age
agreed upon A system conducted upon
the actuarial basis Of setting aside the
necessary reserve is the only pension
system whose cost can be accurately cs-
timatcd in advance
The Foundations bulletin is not con-
elusive as 90 the absolute termination
Of the present pension system. II inti-
mates that there is 10 present intention
20 bring - 20 an end. but declares that
the commission had no Information
whether the great sum" necessary "a
extend the present system 20 all teach
ers in associated colleges could be OBJ
tanned.
Dr. Henry s. Pritchct'. president Of
the Foundation. saiG last July that "a
change completely from The old system
20 the new would take many years.
], is expected that most college teach.
ers wll agree with the committee
Recommendations, though there nave
fccn reports that some opposition "a
the new plan has developed
Among announced features Of tho
new plan tnr DIcrlag ~ The .ns1-
rance and snnuitics % the teachers Al
cost. The association would be man
agcd By an agency controlled By the