The midland journal. (Rising Sun, Md.) 1885-1947, 1928-12-07
FRIDAY, DECEMBER Z, 1928
GOVERNOR EXPLAINS TEACH
ERS, PENSION ACT

GOVERNOR EXPLAINS TEACH
ERS' PENSION ACT
/ Governor Richie on Friday issu-
ed a statement explaining the States
obligations under the new Teachers
Retirement act and the operation Of
the law.
The Governors statement follows.
II want to advise the public OF
what will be the effect on future
State appropriations of the Teach
ers' retirement system, which was
enacted by the Legislature Of 1927.
"The appropriation for retired
teachers for the fiscal year 1880 viii
be $S44,O47, and for 1881 1885,
E87S. These figures compare with
appropriations Of $4,000 for 1925
and 1927, $4,000 for 1928 and
500 900 for 1929, made uHE8er the
old system Of a fiat pension OF $4OO
for retired teachers.
"The States $844,047 appropria.
ton for 1880 includes $411,S9S fol-
Baltimore city teachers, and !. the
$885,S73 State appropriation TO,
1881 includes $432,487 for Balti
more city teachers.
"The Baltimore City teachers
never before have been included II
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, the result will be 6
contribution by the State to Balti.
more city's retirement fund for Bal
timore city teachers Of $411,S93 for
1880 and $432,4S7 for 1881.
1.-THE Teachers Retirement act
provides for the raising Of a fund
which is invested and administered
by a board of trustees, consisting OF
the State Superintendent of Schools
the State Comptroller, the State
Treasurer and two elected teachers.
Ultimately this fund will amount tc
perhaps $12.000,O00 or more.
"The fund and its income is EN-.
ployed to pay teachers and other
school officials covered by the Law
I(I) an annuity and (2} pension
upon their retirement for age or dis
ability. Retirement is optional at
so years of age and compulsory al
70 years Of age. Death benefits
also are 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.
sThe plan is worked out SO that
the amount of the pension will be
approximately the same, and both
together will be certain. proportion
If the teachers average annual sal
larry during the ten years preceding
retirement.
1.-THE amount in dollars. OF course
will vary according to length of ser
vice, but in the average case thf
total retired pay will be about hall
Of the teachers average salary fol
the preceding ten years.
"The salaries now paid elementary
school teachers average something
less than $1,000 year. and the sal
aries of the high school teachers
average about $I.4O0 a year.
1.-THE States obligations under the
aw are as follows:
"For the fiscal year 1880 thu
States appropriations for prior ser
vice 3.S3 per cent OF the pay roll
and for pensions, 2.S6 per cent, o,
s.69 per cent in all, will be S844,-
DAT. For the fiscal year 1881 j.
will be $SSs,S73. the increase being
iue to the fact that the appropria
tion is based upon the pay roll
which increases on an average o
three per cent year.
Until this law went into effect
the State, as already stated, was
paying a Nat pension Of $40O to re
:ired teachers, the annual appropri-
atoms for 1925. 1926 and 1927 be,
ing $4,000; for 1928 $4,000 and
,or 1929, 100000. These appro
priations, however, have not beer
sufficient to pay these tlat pensions
% all retired teachers.
1.-THE States contribution to the
retirement fund under the new Law
this year is $4,000, but 1880 II
the first year the States full obliga
ton under this law will begin"
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Don't seek experience. you'll ge'