The Waterbury Democrat., 1931-04-14


 Systems issued today Q report urg- ing enactment of two bills provid- ing for a contributory pension sys- tenn for employees of the State. counties and municipalities. The plan allows retirement 2. tho age of 65 for men and 60 for wonon after 20 years of continuous service, and reduircs contribution service, and requires contribution from employees amounting to I per cent of their salaries, this amount to be equalIed by contributions from the State county or municipality.
 In making it's investigation, the Commission excluded plans relating.
 (1.) To relief provision at State or community expense for inc desti- tute or dependent aged, and
 (2.) To pension systems adminis- tered by the State to which any employed citizen is eligible.
 The Commission confined It's study to "pension systems, contri- butory or otherwise providing for the proper retirement of employees of tho State or public. corporations on tho basis of years of service. att tained age or disability"
 In Three Parts.
 Tho report was presented in three
 CD Elements of Penson Sys- tenn for Public Employees. includ. ing the desirable elements and the dangers to be guarded against.
 (2.) Outline of Existing SystemS, representing an exhaustive study of pension plans in this state and in- ciuding description of plans used In other states.
 (3.) Conclusions and Recommen- dations, presenting drafts for pro. posed legislative acts. Two separ- ate Bills are suggested. ono dealing with pensions for State employees, the other with pensions for eni- pI0yees of counties and municipaIi- ties, which arc hereafter referred to as "politicai subdivisions" Tho Bills arc alike in so far as eligi- bility, contributions required. nge, years of service, etc. arc concerned and differ only in relation 10 speci- fcatlons for administration of the plan.
 The main provisions of the pen sion plan follow:
 I. Contributions.
 The plan Is contributory, provid- ing for a sharing of the financial responsibility between the employee and the employer. The employee will contribute per cent of his salary, this percentage being subject The State Cor political subdlvision) will make a contribution equal 10 that of the employee. The amount subject to contributions and pen- sions will he limited to maximum of e6,000 annually.
 2. Age
 Men may have the option of re- tiying at 65 years of age and wom. on .at GO years Retirement will be compulsory at 70 years for men and 60 years for women. unless the Re- tirement board continues them in service from year to year, when this Is in the interest of the State. In no event shall an employee be con- men and G8 for women after the Act has been in effect four years.
 2. Service
 Tho option to retire will be ai- lowed after 20 years of continuous service.
 (. Amount of Pension Annuity
 The employee will receive 1 ga per cent of his pay (not exceeding a salary of $8,000) for every year of service before the initiation of the pension plan and per cent of his pay for each year of service after the initiation of the plan.
 Tho cost for past years of service before adoption of the plan would be born entirely by the State Cor political subdiyislon), since 1t would not be possible to tax employees now for previous years.
 In no case will the amount be less than 20 per cent of the average pay for tho hve years immediately preceding pension.
 $. Membership
 Membership will be optional for employees who entered the service before the adoption the service be- fore the adoption of tho plan. but will be compulsory for new em- ployees after they have been in the service for one year.
 In the case of the State. those who will not be eligible will be elected officials. judges, teachers Retirement system, and those com missioners who are heads of depart ments. to bc named specifically.
 In the casc of political anbdivi- sions these subdivisions with the State will decide before the institu- ton of the plan what departments and individuals, are eligible.
 c. Return of Contributions
 In no case will contributions be forfeited. An employee withdraw ing from the plan before the age of retirement may recover the amount of his contributions with in- terest compounded at per cent. If he has contributed for at least ten years, he may leave his contri- buttons in the fund until he has att tained pension age for paid up annuity.
 In the event of death the legal representatives, of an employee may buttons with interest compounded