Milford chronicle., 1930-11-14
new RETIREMENT
PLAN FOR STATE
SCHOOL TEACHERS
Scheme Provides For In
surance Company To
Handle Annuities In
stead Of The State.

A new teachers retirement bill
will be presented to the 1881 ses-
sion of the State Legislature, rec
ommending that the annuities be
placed with an insurance company
instead of in the hands of State
commission as was proposed two
years ago. The bill affects approxi-
mately 1900 teachers.
This recommendation will be
made by a committee appointed by
the State Department of Public In
struction some time ago. 1t is COM
posed of H. Fletcher Brown, vice
president of the DUPONT Company,
as chairman; John S. Shilling, as
sistant superintendent of public in
struetion in charge of high school
work; DR.. Walter L. Hullihen, pres
ident of the University of Delaware;
Miss Ellen Samworth, principal OF
the Thomas F. Bayard School, rep
resenting the teachers association
of Wilmington and Secretary OF
State Charles H. Grantland, repre-
senting the State.
The second meeting of the COM
mittee was held this week in Mr.
Browns office in the du Pont Build
ing, when representatives of three
large insurance companies were
given an opportunity to submit data
covering the issuance of this kind
of insurance. After all had been CIV
en- an opportunity to be heard, Mr..
Shilling, speaking for the commit
tee, announced that the committee
would consider the facts as submit
ted and would select the company
at a later meeting, which the COM
mittee would recommend. This rec
Ommendation will be in the bill
when it is ready to be presented.
The chief reason why the bill pre-
sented in 1929 was turned down in
the Senate, the committee said, was
because it did not contain any def
mite statement of costs covering a
period of twenty years. The bill did,
however, pass in the House.
The exact cost to the teacher and
State will be contained in the new
bill to be presented. The cost, to-
gether with other facts, is now be-
ing considered by the committee
and when the bill has been drafted,
it will contain the figures as sub |
mitted by the company that will be !
recommended to handle the annui-
ties.
The committee said, the cost OF |
providing the teachers with annui- |
ties will be greatly reduced to both |
the State and the teacher by giving |
the annuities over to an insurance !
company.
The committee in its recOmmen-
dation will say that the cost of pay
ing such annuities shall be equally /
divided between the State and the
teacher. The cost to each to be ar
rived at by the committee after the
company has been selected.
Aside from the recommendation
that the annuities be handled by an
insurance company, and also the
exact cost, the new bill in most
other respects will be similar to the
one presented two years ago.
The terms of the bill presented at
the 1929 session of the legislature,
DrOVlQeQ JudL Ju6 LSdCu0I anu LhS
employer would each contribute an
sum equal to per cent of the sal
ary and these contributions would
be placed to the credit of the indi-
vidual teacher and accumulate so
that at the age of sixty they could
buy an annuity. This same rule will
apply in the new bill, it was stated,
and the teacher can retire at 65 on
an annuity as provided under the
terms of the insurance. The an
nuities, according to the recommen-
1ation, would be paid monthly and
would be based on the amount of
salary the individual was receiving
At the time of retirement.
Under the terms of the bill pre-
sented two years ago, the State T..
would have been compelled to ap-
Dropriate for the maintenance of an
)ffice and for bookkeeping system,
about $500 peryea and $25,1 to
guarantee the annuities of those
who would retire at once.
All members of the committee
we're present with the exception of
Mr.. Grantland. who is ill.
The next meeting will be held at
he call of the chair.