The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1919-06-27
Upper House Adopts MuIberger
Substitute 18 to Ia.
REPORT ON PENSION SYSTEM
SoIons Urge Appointment of Special
Body to Make Further Investiga-
ton and Report to Next SEES
sion of Legislature.
By FRED l.. HOLMES.

the legislature Tuesday night when,
tTH vote Of 18 to IA, the senate adopt
ed the Mulberger substitute permit
ting the sale of beer containing 20 per
cent of alcohol as Misunderstanding
beverage. Action On the measure
came at the close of an all-day session
at which nothing but dry enforcement
measures were considered. 1t is ex-
pected that the Mulberger bill will ar
rive in the assembly ON Thursday for
consideration.
The Mulberger bill provides for the
appointment of prohibition commits
aoner by the governor at an annual
salary of $4,000, and the term of office
four years. The department is given
an annual appropriation of $4,000 to
enforce the dry regime. Amendments
incorporated in the Mulberger substi-
tuteN provide for search and seizure,
gives towns cities and villages the
option of prohibiting the sale of 25
per cent beer in their localities and
further provides that localities now
dry shall continue dry unless by IA
vorable vote by the people of that To-
cality. If the bill is finally approved
by the assembly and signed by the gov
ernor it will become effective January
16, 1920. It's provisions, however,
must be submitted to a vote of the
people at the November election of
1920 and if approved will continue in
oh To
be in effect On January /, 1921. Pro
visions are incorporated in this bill
exempting patent medicines and ex-
tracts, and common councils, town and
village boards may license nOnintoxi-
eating beverages at fee not exceed
ing 500 annually.
That the teachers pension system
will have to be revised and improved
is the report of the special joint legis-
lative committee appointed to look in
to the matter following charges made
on the floor Of the senate early in the
session that the fund was insOlvent.
The teachers pension fund was Gre
ated in 1911, without adequate study
of the subject and without advice Of
an actuary."
Strange as it may SEEM" says the
report mo attention was given to the
question of future liabilities until
1917, when the board sought the adj
vice of the actuary Of the insurance
department, who made a valuation of
the annuitieS as of December 81, 1917,
70 f11n
board several things in the law that,
in his opinion, should be changed.
According to this valuation, the
present value of the annuities on De-
cember 81, 1917, was $1,231 600. This
means it would require 81 ,231 900 as
a present sum to be invested at 31a
per cent compound interest to pay an
nual inStallments to the end of life of
all annuitants who had entered upon
their annuities at that time. This does
not include the liability to those who
are paying into the fund and are still
teaching. If these were included the
liabilities would be materially in
creased, but owing to the present way
the law is drawn it is practically i'm
possible to get accurate figures on
these liabilities.
"You can get some idea of the enor-
nous deficit of the fund from the fact
that on December p, 1917, when the
present value of the annuities then en-
tered upon was $1,231 900, the total
assets on hand amounted to only
S552,OOO and this included the equity
of those who were still teaching, while
the 81, 231, 900 represents only the liza
bilities of those who have quit teach
ing and have begun to draw their an
nuities. A similar valuation is being
made as Of December 81, 1918.
$50 far we have dwelt on the finan-
cial side of the problem and have
pointed out that the present law,
adopted ostensibly on the plea, at least
in part, that it would improve the
teaching profession by inducing teach
ers to stay in the service really puts
premium on withdrawal in the prime
of life. The committee feels, however
| that teachers who have paid their
money into the fund in good faith and
| have depended upon it are entitled to
some consideration. That teachers
salaries are too low is generally adj
| mitted.
Under the present retirement law,
| the teachers not only are induced to
| retire in the prime of life, but the
| teachers actually pay only from about
| 6 to 10 per cent Of the cost of the pen
| sion. This seems ridiculously low
| compared with the requirements OF
| other states, where teachers pay at
least so per cent Of the cost.
| "Your committee finds that the fund
| has been administered in highly sat
isfactory manner by the board of trus-
/ tees and that the interests of the
teachers and of the fund have been
safeguarded in every way consistent
with law Great care has been exer-
cised in the matter of investing the