Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1940-12-04
Commission Sets Cost
At $1,S34,953
Continued from Page One)

has announced he favors a retire.
ment system for the state and re-
Gently predicted at Charlotte that
one for teachers would be enacted
by the next legislature.
Each employee would contribute
| five per cent Of his annual pay to
| the fund, and the state would appro-
pirate enough money to provide to-
tai annuity equivalent to twice the
annuity which the employees contri-
buttons would provide.
The commission estimated that at
the maximum it would cost 81 .367.-
7l3 in state funds for the first year
to start the proposed plan for teach
ers, and S467,235 to start it for gen
eral employees, a total Of 81 ,834.953 to
be appropriated from the general.
highway and agricultural funds for
the first wear.
A board Of trustees, composed Of
three members to be appointed by
the governor one representing the
teaching profession. one from general
:tate employees and one represent
ing the public. along with the state
treasurer attorney general, super
intendent of public instruction and
commissioner Of insurance, would
administer the fund.
"The retirement commission hope"
hit its proposal may prove accept
able." said the report, submitted to
Governor Hoey and the advisory
budget commission under instruc-
tons Of the 1899 legislature.
1T believes that the adoption Of
retirement system along the lines
proposed will be forward step for
the state to take both as means of
protecting the service against inef-
ficiencv caused by approximation
and disability and as a means OF
protection for the individual en-
,10--oc"
Treasurer Charles M. Johnson was
chairman Of the commission, author
lied by the 1889 legislature when 1t
deferred action on several proposed
HlanS. Other members were James a.
Cray, D. Hidden Ramsey, Kemp +.
Lewis and Holmes Davis, and BaX-
ter Durham was executive secretary
eve secured the nation and the
world to learn of experiences with
retirement systems" Durham COM
mented, 1--WE found out just how
things were in other places. Our
actuarial tables and figures were pre-
pared by the best man in the county
in that line, George B. Buck of New
York, who is chairman of the board
Of 'actuarieS for the government IN
social security matters" He notice
that the recommended plan follow
ed closely the proposals made by
teachers of the state to the 1889 leg
islature.
The proposed system is simple IN
operatlon,' the commission reported
Each member saves five per cent OF
his salary throughout active service.
When he retires. his savings with in
terest are used to provide an annuity
to which is added a pension from
contributions made by the state, the
cost of providing the allowance is
taken care Of by the accumulation OF
JOINT contributions by the state and
the member during the years of the
members active service. This is the
most cconomical procedure to follow
and is in accordance with the most
approved method of retirement fl
nancing. While the five per cent
contribution is recommended with a
matching benefit to be provided by
the state, the plan may be easily
adapted OF lower rate of contri-
button :"
The commission noted that 'exper-