The Republican. [volume] (Oakland, Md.) 1877-current, 1928-12-06
TEACHERS PENSION ACT
EXPLAINEDBY GOV.RTTCHIE
States Executive Sets Out the
Obligations of Commonwealth
Under New Law.
Baltimore Sun, Nov. 80, 1928

baltimore Sun, Nov. ~, 1921
Governor Richie yesterday issued
statement explaining the States obi
cations under the new Teachers Re-
tirement act and the operation Of the
law.
His explanation, he said, was not
designed to criticize the act, but to
clarity what he believed was a public
lack of understanding concerning it.
The Governors statement follows:
81 want to advise the public of what
will be the effect on future State ap-
preparations of the Teachers retire
ment system, which was enacted by
the Legislature of 1927.
SS44.O47 For 1880.
"The appropriation for retired
teachers for the fiscal year 1880 will
be $S44,047, and for 1881, 885,873.
These figures compare with appropria-
tions of $4,000 for 1925 and 100000
for 1929, made under the old system
of a fiat pension of $4OO for retired
teachers.
"The States $844,O47 appropria-
ton for 1880 includes $411,893 for
Baltimore city teachers and the $685.
873 State appropriation for 1881 in
cludes $432,487 for Baltimore city
teachers.
State Aids City
"The Baltimore city teachers never
before have been included in the
States pension system. They always
have been cared for under Baltimore
city's own system. The Legislature,
however, included them under the new
law, and inasmuch as the Baltimore
city law, of course, will continue, tho
result will be a contribution by the
State to Baltimore city's retirement
fund for Baltimore city teachers of
SAIL, 1893 for 1880 and 1882, 487 for
1881.
81 am issuing this statement not to
criticize in any way the appropria
IlOIS lequlleu Ny IllS lS" law, DuC III
order that the public may understand
the States obligations under it, and
also to explain, as WE'LL as very diff
cult and complicated subject can be
explained briefly, the operation of the
new law, l do not think that either is
very we'll understood by the public at
large.
Administered By Board.
"The Teachers Retirement act pro-
vides for the raising of fund which
is invested and administered by a
board of trustees, consisting of the
State Superintendent of Schools, the
State Comptroller,> the State Treas
urer and two elected teachers. Ulti-
mately this fund will amount to per-
haps $12,0OO,000 or more.
"The fund and it's income is en-
ployed to pay teachers and other
school officials covered by the law ()
an annuity and (2) a pension upon
their retirement for age or disability.
Retirement is optional at 60 years of
age. Death benefits are also provided
for.
"The teachers themselves make up
the annuity fund, except that the
State, as will be explained, contrib
utes during the first thirty years, and
the State makes up the pension fund.
Annuity and Pension Same
"The plan is worked out so that the
amount of the annuity and the amount
of the pension will be approximately
the same, and both together will be
certain proportion of the teachers av-
erage annual salary during the ten
years preceding retirement.
"The amount in dollars, of course,
will vary according to length of SER
vice, but in the average case the total
retired pay will be about half of the
teachers average salary for the pre-
ceding ten years.
"The salary now paid elementary
school teachers average something
less than $1,000 year, and the sal
aries of the high school teachers av-
erage about $1,400.
Contributions Vary.
"The principal of the annuity fund
is made up of annual contributions
from the teachers out of their salaries,
which vary according to age and sex
from 4.0S per cent to IT'S per cent.
These percentages always will remain
practically the same. The teacher is
permitted to withdraw his or her con-
tribution at any time.
"The existing teachers all go under
the system, and the State is required
to assume the prior service obliga-
tons of the existing teachers, by which
is meant the amount these teachers
would have contributed to the annuity
fund if the law had been in effect
when they entered the States teach
ing service.
Liability For Prior Service
"The total liability of the State for
this prior service is approximately
81 100 600 and this is an1ortized over