The Wyandotte herald. (Wyandotte, Mich.) 1879-1943, 1939-02-03
PENSION PLAN
IS DUE FOR
APRIL VOTE

The Council. at its session Tuesday
night, took action toward referen-
dunn on the pensiOning of the police
men and firemen employed by the city.
The action, which City Attorney w.
Hugh williams described as an zen
abling ordinance" will be placed on
the primary ballot for the voters To
determine whether they want TO en-
bark on a pension system. Should this
be approved, second ordinance con-
tanning exact provisions Of the plan
decided upon, would go to a vote at
the final election in April.
Mr. Williams, prior to Tuesday
nights vote, explained to the Council
that there was no provision in the pre-
sent charter, either for fliShing
pensions for employees, or for z refer
endum on an ordinance. Hence the
course recommended by him.
In a communication addressed to the
subcommittee of the pension commit
tee OF uhe city, John =. Rae has sub
nlitted a brief outline of a system pro-
posed at a previous meeting.
Mr. Rae wrote:
The cost of this system wOflld APP
proximate $3.50 annually to the fire
men and policemen and 81, $50 annual
~ 10 the city for the Iirst Ten Years
of operation. After that time the costs
to the city would equal the Cost 10
the men.
If the city creates other pension
systems to take care Of other employees,
further OUTLAWS of considerable sums
in the initial years will be necessary.
IL is also suggested that after period
of ten years when costs to the tax
payers will materially decrease, the
provisions of the proposed system
might be amended by referendum
This is Mr.. RAGS outline of pro-
posed system:
Conditions of Retirement
Voluntary retirement at go, after a
minimum of 80 years of service. Pen
sions to be so per cent OF the average
annual salary Of the preceding 5 years
with 1 per cent additional for each
year OF service over 80.
Compulsory retirement at 50, pen
sion to be 90 per cent of the average
annual salary for the preceding 80
years. with per cent additional for
each year Of service over 80. Where
the policeman or fireman reaches the
age az 6 with less than 80 years Of
: Asrxice pension 10 n 30 per @1eeof-a4
the annual salary over the preceding
3 years multiplied by the actual NUM-
her Of years Of service divided by 80.
Death benefits.-When policeman
or fireman v killed in the line OF duty
a pension Of 30 per cent Of his average
salary for the last ) years to be grant
ed to his widow for life or until she
remarries. If widow dies or remarries
before any of the deceaSed's children
attain the age of Is then the pension
goes TO the child or children until they
reach Is. II here be no wife or children
the pension to go to parents if they
were dependent on the deceased.
Retirement for total disability
Where a policeman or fireman becomes
totally incapacitated for duty as ma
rural and proximate result Of the &C
tual performance of dnty without will
full negligence on his part he shall
after medical examination be retired
at 50 per cent Of his average salary
for the preceding i've years.
Any amounts which may be paid o.
payable under the provisions Of the
workmen's compensation. OK pension
or similar Law to the policeman OF
fireman or to the dependents OF q DO
.liceknan or fireman, on account Of dis
ability or death, to be Offset against
and payable in lieu Of any benefit
payable out of funds provided BY th'
city under the provisions Of the retire
ment system on account Of such dis
ability or death.
The retirement system TO be set VI
on an actuarial basis with the city
assuming the obligation Of all accrued
liabilities at the time Of Inauguration
of the system.
The retirement system to become ef
tht voters by referendum.
Means Of Financing
A deduction OF 4 per cent from ths
salary Of each fireman and policeman
and such additional sums from th<
general fund OF the city as viii b
necessary to pay benefits as previously
outlined. The amount OF the City's cur
rent contribution under the retiremen
proyisf0ns outlined above will be ap
uroximately per cent plus the cost u
liauidating an initial deficit of $3.50,
ono. On q 8 per cent earning basis i
win cost So 900 q year for ten years
TO nquidate the deficit, the dty's con
trfbution therefore for the first tel
wears will be per cent of the payroll
plus $4,000.
All contributions made by the EN-
uloye to be considered the property O
such employe and to be returned 4
bim or his dependents with 5 per cen
simple interest in the event he resigns
4. discharged or dies before he il re
tired. =,
.,s.soro the sum of All his contribution
Illus 3 per cent simple interest ha'
he.en returned 20 him in the form Of
,ension. the difference between his ar
,r,n,uiated contributions plus pc
cent siuzple Interest ana tne aneon
,,,5S TO him rs a pension 10 90 TO IN
.,s;,endenrs. The pension fund to be in
.sssed In such securities As are ieea
-,.~eefments I'm this st&te-for sinkin'