Evening star., 1932-08-21
PENSIONS COSTING
GOTHAM HUGE SUM
Move to Cut City Employees
Pay Fixes Attention on
Retirement Plan.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, August 20 (N.AN.A)
Mayor Walkers appeal to the 144,0o(
city employees to help him reduce the
budget by voluntarily contributing ons
months salary has failed. Too many
of those receiving mandatory salaries
objected.
When the mayor made his plea he
warned those on the mandatory roll
that If they did not come to the aid oil
the city in the emergency the city
would be forced to go to the State
Legislature for power to make reduc-
tions. and. in that event, there was
grave danger that their pensions IN
the END would be affected.
The mayor evidently knew what he
was talking about The publication OF
the employees refusal to adopt his plan
was followed quickly by an announce
ment that rs civic organizations mao
begun a movement for calling a special
session Of the State Legislature TO op-
tain legislation enabling the city 10
reduce such salaries as those over
which it now has no power.
System Under Spotlight.
The controversy over the subject,
lasting several weeks, has served to call
attention to the growth in appropria
tions for CITY pensions and how Varl-
ous systems under which the money is
disburSed are conducted.
Taken as a whole, the pension sys-
fem of this city is financial mosaic
It began with caring for disabled ano
sl1perannuated fremen, policemen ano
school teachers. The firemen con-
tribute nothing to their fund. the po-
licemen 2 per cent of their salaries
and the school teachers considerably
moro. based on years OF service. LII
addition to these assessments, the po-
lice and firemen services nave otneI
sources of revenue, which, under tne
law. flow directly into the 1unoS ano
conceal their real cost.
But in addition to these sources OF
revenue. the city makes appropriations
to meet the deficits. The city's budgetary
contributions to the teachers pensions
have grown to S7,634.261 since 1918, IN
creasing more than 285 per cent. The
contributions to the Fire Department s
pension fund has been increasing an
nuaIly for years, but the exact amount
has escaped public attention as the
appropriations have been met annually
by the issue of revenue bonds, winch
have been refunded the following year
in debt service. For 1881 the city pro-
yided S2,515,685.91.
Police Fund Cited.
In the case of the police fund the
city. in 1881, appropriated S4,524.l2o 10
meet the accrued deficit. rs an lnol-
cation of the growth of the police pen
sions. the report of the pension fund
shows a total payment for 1881 q So
862.o28, to 6,549 persons, a rM1oer
equal to 339 per cent of the total num-
ber of policemen now on duty.
There are various other special FUNDS
for special classes of city employees
But the most important Is that Whlcn
came into being on October l, lSzo'
On that day general law went lnIo
effect providing that all city employees
except those in the exempt ana non
cornpetitive classes, entering the citys
service after that date should become
members of a retirement system. The
Board of Estimate and Apportlon-
ment-a body equivalent to the select
council in other citieS-waS placed IN
charge of the funds. There are many
public-spirited citizens who think TINS
was a mistake, for it put the retire
ment fund into politics.
Later. some of the weaker special
services found themselves in more OF
less trouble and the city admitted them
to this general system, thus increasing
the citys liability for its share in their
pensions AS an evidence OF TINS IN
crease, in 1927, the city's pension ma
bility was s14,773,827.12, and in the
wear 1892 it was S25, ,791, ,767,45, rise
g nr 40 cent
Consolidation Is Proposed.
A consolidation of the dozen or more
oension systems into a single system
administered on much more nearly
self-supporting basis has been suggest
ed to the board of estimate by the clIl-
zens' union. In a public letter. tne
union says :.
1T is estimated that if some curb Is
not placed upon the present eXtraVa-
CANT and unbusinesslike management
of the funds, and the overllberal con-
tributions OF the city money, the Iak-
PAYERS within the next 10 years Wal! De
called upon to provide more than sou.
oO0 600 annually for pensions. 1t is
uncomfortable that they VIII pe "lilihs
or able to pay such toll"
It is quite likely that if the LeglSla-
ture is called in session to give the city
more authority over the citys pay roll
an attempt will be made to eradicate
the evils which have been generated py
too loose governing OF these vast sums
of money. In recent years the pupnc
frequently has been outraged by some
public official, facing charges OF theil
or bribery, suddenly deciding to evaoe
trial by retiring on pension. MANY
people seem to think crooks shoulont
be rewarded with an annuity.
Closer Scrutiny Needed.
There are numerous cases that indi-
cate the rccd for a olo~cr 5-rutlny OF
money awarded. A few OF these VIII
show the general character.
The widow of a city emplcye cla meo
q pension on the ground that her hus-
hand had contracted fatal disease
through sealing letters in the depart
ynent in which he was employed. Tne
state Labor Board made short work oil
the claim, but the local doctors, some
of whom have since been accused OF
splitting fees in accident cases, were
considerate. They awarded her pen
sion of $1,000 a year.
Tn a case before the Board OF Estl-
mate, man contemplating retirement
died before he filed his papers, but
the board. moved by the pea CT his son
a practicing attorney. decided that the
fathers widow should receive some
$1,000, alleging they believed the deac
man had intended to comply with the
Jaw
If the refusal Of the mandatory
c'asses results IN a singe pension Tvs
ten. condurtsd b. men outside "the
orparization" the citv viii Sh rt4y G2lr
more than It would through the vo-un-
tary cut Of che months Fay in the
salaries Of its employees.
(Copyrisht. 1892. by North American News
paper Alliance, Inc)