The Barre daily times. (Barre, Vt.) 1897-1959, 1917-06-11
TEACHERS PENSION SCHEME
Recommended to Carnegie Foundation BY
Special Commission.

New York. June Ito enable college
teachers or professors when they enter
that profession, TO protect both them
selves and their families against depend
ence, a plan for the organization of a
! teachers insurance and annuity associa'
tion to offer both insurance and old age
annuities to college teachers upon most
advantageous terms has been recon-
mended to the Carnegie Foundation for
the Advancement of Teaching, by n spe-
cial commission organized to consider
that subject. This proposed association
would be subject TO the supervision OF
the insurance department of the state.
! The commission was joint one repre-
senting the Carnegie Foundation, the
American Association of University Pro-
| fessors, the Association of American Uni
versities, the Association of American
Colleges, and the National Association of
State Universities For years the Carne-
gle Foundation had been giving constant
study to the pension problem in an ef-
| fort to evolve system that would be
/ fair to the teacher, financially sound and
within reasonable cost.
All the material bearing on this sub
ject which had been collected by the
foundation was submitted to the com
mission in November, last, and this com
mission now has made its report to- the
foundation in what is declared to be "the
most careful and scientific expression OF
the fundamentals of a pension system
which has ever been formulated II con-
forms both to the results of economic and
social experience and to the requirements
of actuarial science"
It's conclusions, based upon expert ad-
vice, are declared to be of great interest
and Importance to all college teachers OF
the United States and Canada. The com
mission recommended to the trustees OF
the Carnegie Foundation, as the funda-
mental principles of a sound pension sys-
tenn for teachers, the following:
'The function of pension system is to
secure to the individual who participates
in it protection against the risk of de-
pendence due to old age or to disability.
"The obligation to secure this protec-
ton 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 government, cor
poration, or an individual. has a direct
financial interest in the establishment of
some pension system which shall enable
old or disabled employees to retire under
satisfactory conditions. The obligation
of the employer to cooperate in sustain !
ing pension system is primarily finan-
cial one, and in the second place moral
one.
"a pension system designed for any
group of industrial or vocational work.
ers should rest upon the cooperation of
employees and employer.
Teachers pensions should be stipen-
diary in character, amounting to fair |
proportion of the active pay.
"In actuarial terms a pension is de- |
ferred annuity upon the life of one or
more individuals, payable upon the full.
fillment of certain conditions.
an order that an individual participant
ing in pension system may be assured
Of his annuity when due, one condition ID
There must be set aside
year by year, the reserve necessary, with
It's accumulated interest, to provide the
annuity at the age agreed upon
A pension system eOnutNIfu upon the
actuarial basis of setting aside, year by
rear, the necessary reserve is the only
pension system whose cost can be accur-
ltely estimated in advance.
"a method by which pension is paid
or in advance in annual or monthly in
,tallments is the most practical plan
which can be devised for purchasing
deferred annuity, provided that the con
,ributions begin early in the employees
areer.
"A pension system should apply to a
,roup whose members live under COM
parable financial and economic conditions.
TO attain its full purpose, participation
n the pension system to the extent of an
greed minimum should form condi-
ion of entering the service or employ
nent the members of which are cooper
ting in the pension system"
With regard to the present pensions OF
he Carnegie Foundation, the commits
ion expressed the opinion that the ex-
ension to all teachers now in the asso-
lated institutions of the privilege of
ontinuing in the present system would
meet their expectations. The
commission had no information whether
he great sum necessary to do this could
e obtained.