River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1921-02-10
TEACHERS FUND
is INSOLvENT
Startling Disclosures as to Fl
nanciaI Condition Made
by investigators.
CAN PAY ONLY 23C ON DOLLAR
Special Legislative Committee Makes
Report-unless Legislature Acts
1t Will Soon Be Impossible to
Pay Promised Annuities.


nature were made by the special legis-
lative committee which for the past
two years has been investigating the
financial condition of the teachers re-
tirement fund in this state.
The fund is In such condition that
unless some steps are taken at this
session of the legislature to amend the
law and place the fund on solvent
basis, it will soon be impossible TO pay
the annuities promised under the law.
To pay the teachers In Wisconsin
who are at present contributing to the
fund the benefits promised to them
when they retire the sum of S13,3S1,-
761. with interest, from now on will be
needed.
To Offset this obligation the re-
sources of the fund consist of assets
on hand, $6S5,000; contributions of
teachers during the next 36 years, ST.
261.013, together with all of the state
appropriations for the next SO years
WHICH Is cuulNdlcHt u pi,oJo,-t-, man
ing total of S3.041, 400.
Stated in other terms, If all present
members of the retirement fund are
treated equitably, the fund can pay only
% cents on each dollar of promised
benefits To pay even this proportion
to the present teachers will use up all
of their own contributions, all of the
accumulated assets and all of the state
appropriation for the next 36 years, so
that new teachers would receive no as.
sistance from the state during that
period.
Under the law the state does not
guarantee the obligations of the fund
in any way; on the contrary, the law
requires that the board of trustees of
the retirement fund ratahly reduce the
annuities whenever, in the Judgment of
the board, the condition of the fund
shall require such reduction. The ex-
animation of the condition of the fund
made by the legislative committee
shows that a pro rata reduction OF 70
cents on the dollar will be necessary.
unless the law is changed and addi-
tional resources provided.
eff no change is made in the law"
said Senator Antoine Kuckuk. chairman
of the legislative committee, land an
nuities are paid TO teachers now on
the retired list and those eligible.
It means that the other $4,000 teachers
I'm the state must continue to contrib
uate with little hope of ever receiving
a dollar of benefit for themselves"
A bill to deal with the unemployment
situation will be introduced soon
by Senator Henry A. Huber. This bin
does not apply to farmers or employ
ees of the state, cities, towns. villages
or school districts, or individual en-
pioyers who hire less than three work
men.
Only those who are not able to OBJ
tain suitable employment are eligible
to receive unemployment compensation
fer limited period. Like the work
mems compensation act. which penal
ICES industries where worllmen are
forced to leave their work-unem-
ployed because of the lack of safe
guards in the factory-so this act pro-
cides that industry shall compensate
workmen temporarily when they are
| forced out of employment and are UNI
able to obtain other suitable employ
ment.
All employers that are not exempted
shall insure their liability for the pay
ment of unemployment compensation
in any mutual insurance company that
is already insuring or that is capable
of insuring employers liability under
the workmen's compensation act. A
! premium is put on good management.
Those employers that are most regular
in the employment of their workmen
pay the lowest premium.
No new commissions or state ma
cfinery will be necessary for execu-
| tion and administration of this act.
The Industrial commission shall cure
or the administration, in cooperation
with the compensation insurance
board. The system will function
through the state free employment of
fees. Deputies already appointed by
the industrial commission may pass
upon the applications for unempioy-
ment compensation. IN contested cases
the procedure is similar to the work
| mems compensation act. A state adj
visory hoard of five, representing both
employers and employees, shall be ap-
pointed by the industrial commission
to serve without pay, according to
provisions of the measure.
Bill to Pay Taxes Semi-Annually.