The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1925-01-22
PUT MORE MONEY
in FARM LOANS
Teachers Retirement Fund
Board Wants to Aid
Badger Farmers.
ASK BLAINE'S ASSENT

Madison, Wis. Legislation per-
hitting the state annuity board to in
vest more teachers retirement system
funds in Wisconsin farm loans is ask
ed in the report of the board filed
with Governor Blaine today.
1t is the Judgment of the annuity
board that the law should be amend
ed so that larger sums can be invested
in farm loans in the state, without adj
ditional cost to the taxpayers by pro-
yiding that the expenses of investment
be paid out Of interest received. Ap-
plications for farm loans should be
made direct to the annuity board IN
Madison and payment of fees or COM
missions to obtain leans IS not neces-
sary, says the report.
Needs More Money.
Legislative investigation concluded
in 1921 revealed that the teachers re-
tirement fund was unsatisfactory and
could not continue to pay the pensions
promised with the funds provided, 1t
was stated. A new law was passed,
upon recommendation of the special
legislative committee, placing the fund
upon financially sound basis. Rapid
liquidation of deficits resulting from
the old law enacted in 1911 was re-
ported. The complete deficit will be
wiped out within the next 40 years.
according to the report.
Of the $5,665,00 of assets of the
fund, $1,919,20O have been invested in
Wisconsin farm loans, the report
states. Other investments include
Wisconsin municipal bonds, 1852, lao;
government bonds, $1,66s,26S, and 9TH
er Wisconsin real estate and municipal
loans, $71,312.
The rate of interest earned during
each fiscal year since the establish
ment of the state retirement system,
and credited to the various funds of
the system, was reported as follows :
For 1922, 4,69 per cent; for 1928, 5.33
per cent, and for 1924, sos per cent.
Calls for Legislation.
Because Of a limitation on the ex-
penses which may be incurred by the
annuity board, it is impossible to ex-
tend the Wisconsin farm loan invest
ments until remedial legislation has
been enacted, says the report asking
for the legislation.
"In extending the investment in
mortgage loans, the annuity board has
been handicapped by the amount OF
money that it can spend for expenses
of administration" it is declared.
The state retirement system includ-
es all of the public and educational in
stitutions of the state, from the one
room school to the state university
except the public schools Of Milwaukee
where a separate retirement system il
in operation. All teachers over 81
years of age automatically become
members of the retirement system
At the present time there are approx
mately $4,000 teachers contributing tc
the fund.-
Two Sources for Fund.
Contributions to the fund are made
in two ways. Teachers pay into the
fund five per cent of their salaries
During the past three years, the teach
ers have contributed to the fund ST.
019,337 The state provides for a sur
tax on all taxable incomes in excess
of $4,000. which produces approximate
~ $1,000,000 a year. For the three
years that the surtax has been in OPP
Grafton the fund has been enriched by
$3,263, 705 from surtax receipts. In
terest on investments and profits on
the sale of bonds and other items have
increased the total receipts of the fund
to $6,420,74S.
Teachers who leave their schools are
allowed to withdraw their payments
with interest. During the past three
years members deposits withdrawn
amount to $167,796.20; death benefit
payments, $16s,258.S4; pensions to re-
tired teachers, $457905.19. Admins
tration expenses for the three years
have been $74,999.31. The total dis
bursements for all purposes during the
past three years aggregate 1858 ,959,
leaving a net balance in the fund on
June %, 1924, of 1851 1889.
Balance to State.
After setting up the trust funds re-
CURED by the law, to provide for flu
ture benefit payments and making the
necessary provisions for the wiping
out of the old deficit, there remains a
balance of $11S,295 from the surtax
receipts to be returned to the general
fund of the state.
The Wisconsin teachers annuity law
has become the model for other cities
and states. Since the enactment OF
the law in 1921, essential features of
the Wisconsin law have been put into
effect in the city of Minneapolis. The
cities of st. Paul and st. Louis are in
process of working out similar plans
and the National Educational associa-
tion has approved of program which
virtually adopts the Wisconsin system.