Vwi AV lj RAI vy, OF MICH. BESGGGS66666666665996656665S256582656S3 VOL. II, NO. 3 MAY, 1924 oo Research Bulletin OF THE National Education Association BABaaGaaanaaaasaaaoaoGaaGaaaaaaaaane HNOOSHSOOSOOOOHOOS Teachers’ Retirement Allowances NDOOOOOOOHOOHOOgOgoggs A Statement and an Explanation of the Fundamental Princi- ples of a Teachers’ Retirement System.... Why Every State Should Enact a Sound Teacher Retire ment Law ... > ” ; The Teachers’ Interest in Retirement Legislation. . . State and Local Retirement Systems Now in Effect Income and Outgo for Retirement Systems in Representa- tive States . Where to Write Concerning Details of State and Local Re tirement Systems eis'vnd Selected References on Teacher Retirement Systems The Text of a State Teacher Retirement Law. J, 4) 4) 7) 7) & %, 4, o @ @ @ F 8 & & F, & @ @ PUBLISHED BY THE RESEARCH DIVISION OF THE NATIONAL EDUCATION ASSOCIATION 1201 SIXTEENTH STREET NORTHWEST, WASHINGTON, D.C. Entered as second-class matter February 10, 1923, at the Post Office at Washington, D. C., under Act of August 24, 1912. Acceptance for mailing at special] rate of postage pro- vided for in Section 1103, Act of October 3, 1917, authorized February 10, 1923 HOOSHOHHSHHOHOOSBOHGOOOODOSSSDO HOO OOOH OOo GEGE6 66666566 56G6G66565655449 Research Bulletin of the National Education Association Published five times each year in January, March, May, September, and November by the Research Division of the National Education Association of the United States. The payment of the $5.00 membership fee of the National Education Association entitles one to receive the Research Bulletin and certain other publications of the National Education Association for one year. One dollar of each $5.00 membership fee is for a year’s subscription to the Research Bulletin. Subscription to non-members is $1.00 per year; single numbers may be purchased for 25 cents, and in quantities at a reduced rate. Those entitled to receive the Research Bulletin regularly are asked to report at once any change of address, giving old as well as new address. Entered as second-class matter February 10, 1923, at the Post Office at Washington, D. C., under Act August 24, 1912. Acceptance for mailing at special rate of postage provided for in Section 1103, Act of October 3, 1917, authorized February 10, 1923. Director of Research, John K. Norton. Assistant Director of Research, Margaret M. Alltucker. Executive and Editorial Offices, 1201 Sixteenth Street Northwest, Washington, D. C. Fees and Publications of the National Education Association The National Education Association has three classes of membership: 1. The $2.00 N. E. A. Membership entitles one to all of the privileges of membership and to receive The Journal of the National Education Association for one year. 2. The $5.00 N. E. A. Membership entitles one to all the privileges of membership and to receive the following publications of the National Education Association for one year (a) The Journal of the National Education Association; (b) The Annual Volume of Addresses and Proceedings; (c) The Research Bulletin; (d) Occasional Bulletins, and Reports. 3. The $100.00 N. E. A. Life Membership entitles one to the privileges of membership and to receive the publications listed under the $5.00 N. E. A. Membership for life. Fees and Publications of Departments of the National Education Association Several Departments of the National Education Association have their own separate membership fees and issue Department publications. One of the N. E. A. membership fees listed above must be paid before one can a of any Department of the Association The payment of one of the membership fees of the Natienal Education Association (see above does not inelude membership in any Department having a membership fee. The membership fees of the Departments which issue publications follow: 1. The Department of Superintendence—$5.00 Membership entitles one to receive for one year: (a) The Yearbook of the Department of Superintendence; (b) The Official Report of the Winter Meeting and Occasional Bulletins. 2. The Department of Elementary School Principals—$2.00 Membership entitles one te receive for ome year: (a) The Yearbook of the Department of Elementary Schoo! Prin- cipals; (b) The Quarterly Bulletin of the Department of Elementary School Principals. Membership fees of the National Education Association and its Departments, and in- — concerning all publications should be sent to 1201 Sixteenth St. N. W., Washingten, ol od TABLE OF CONTENTS 4 Statement and an Explanation of the Fundamental Princ Beginners to be Exempt. Early Retirement Disability. Guarantees of a Retirement System to Teachers Death Benefits Individual Accounts | Rights under Previous Annuity Systems Safeguarded Credit for Past Service Where No Retirement Systen Existed Cost to Teachers and Public Service and Deposits Concurrent Amount of Deposits Fixed Every State Should Enact a Sound Teacher R« The Teachers’ Interest in Retirement Legislation State and Local Retirement Systems Now in Effect State-wide Teacher Retirement Laws Teacher Retirement Laws Affecting Cities of and Second Classes otate States Where No Teacher Retirement Law Is Tabular Staternent of Teachers’ Retirement Systems Map—State and Local Teacher Retirement Laws Income and Outgo for Retirement Systems in Representative States Where to Write Concerning Details of State and Local Retirement Systems Secretaries of State Retirement Systems Secretaries of Local Retirement Systems Selected References on Teacher Retirement Systems. The Text of a State Teacher Retirement Law. LIST OF TABLES Table 1—How a Teachers’ Retirement Fund Is Built Up—and the Retirement Allowance It Guarantees Table 2.—Income and Outgo of Representative State Teacher Retirement Funds—Fiscal Year 1922 84 84 Table 3.—Income and Outgo of Representative State Teacher Retirement Funds—Fiscal Year 1923 FOREWORD Jp UTURE progress demands that the children of the United States shall have t best teachers that the Nation can produce. The teacher is the heart of the scho and for that reason, the teaching personnel should be kept at the highest possible stan ard. A sound teacher-retirement system is a leading factor in enlisting and retaini: capable men and women in the profession. This principle was early recognized by the National Education Association, as show by the following excerpt from the 1896 Volume of Proceedings: “At the annual meeting of the National Education Association in Philadelphia in February 1891, the following resolution was adopted by the Department of Superintendence: ‘Justice as well as the best public service requires the retirement and pensioning of teach¢ after a service of thirty years, and upon carefully devised conditions. We recommend t! enactment of laws in the several States to permit and to regulate the retirement and pensio1 of professional teachers.’ “This is the first record . . . of any concerted action being taken in this country look toward this much-to-be-desired project.” Since the adoption of the above resolution the National Education Association has led in the retirement movement, as is shown by the bibliography on page 87. The Divisi of Research has made a study of the progress of this movement and has also collect: and analyzed all existing retirement laws as well as statements of principles whi: should govern sound teacher-retirement legislation. Special emphasis was given the question of retirement at the-Washington meeting of the Delegate Assembly. In this Bulletin is concentrated the outstanding material that has resulted fr the Association’s recent work in the teacher-retirement field. It includes the 1924 Report of the Committee of One Hundred on Retirement Allowances, of which Phili E. Carlson, of Minneapolis, Minnesota, was chairman. ‘This report, after being re viewed by each of the oné hundred members of the Committee, was presented to the entire Delegate Assembly and unanimously adopted by that body. Other materi: valuable to those interested in teacher retirement has been added to the report. As this Bulletin stands, it brings together in brief compass the most pertinent and pra tical material that has yet been made available to those responsible for retirement legislation. It is hoped that it will stimulate the activities of both teachers and th public at large to secure sound teacher-retirement legislation in every State. J. W. Crastree, Secretary, National Education Association A Statement and An Explanation of the Fundamental Principles of a Teachers’ Retirement System ’ [. Beginners to be Exempt—During the ining years while young teachers have not manently allied themselves with the pro- on, participation in the plan uld be optional. Beyond a specified age twenty-five, for example), it should be re- annuity quired. It is difficult, if not impossible, to interest the beginning teacher in a retirement system for the following reasons: (1) A young per- son, just starting out in any profession, is not ypt to consider old age so seriously as to make arrangements for (2) The beginning teacher often does not look definite retirement; forward to teaching as a life profession; and (3) The initial salary of a teacher is usually small in comparison with the salary which may reasonably be expected after a few years of service. It is therefore unwise to compel a teacher immediately upon entering the profession to become a member of a retirement association ind make deposits in a retirement fund. Such compulsory membership would be unwise for two reasons: (1) It would invite opposition from a large group which is not interested in retirement allowances; and (2) A fluctuating membership in a scientific retirement system complicates the bookkeeping of the retirement It renders it extremely difficult to establish reliable experience tables, which issociation. are an essential part of a sound retirement system. The Committee does not care to recom mend a definite age at which compulsory membership shall begin. The age of 25 is given merely as an example. This may be considered too low in some States and too high in others. Statistics show that in some States more than 80 per cent of the teachers are under 25 years of age. When this is the case membership would only be compulsory for the other 20 per cent, who in all prob- ability have decided to make teaching a life profession. For this group membership can- ; ' Pages 69-83 include the 1924 Report of the Committee Education Association, on the not be left to the voluntary decision of each teacher. It must be compulsory to insure ample provision for his retirement. II. Early Retirement the service before the regular retirement age Teachers leaving should retain their rights to all moneys accu- mulated in their accounts. Teachers’ deposits should be witkdrawable immediately upon re- The public's in the form tirement from teaching service. deposits should be withdrawable of an annuity or death benefit only-upon reach- ing the retirement age. [In drafting Articles of Incorporation and By-Laws must be made for complete justice to all mem- for a retirement system, provision bers of the system. ‘Teachers who quit teach- ing before they become superannuated should not forfeit the money which they have paid into the retirement fund. FEach teacher’s deposit, together with the public’s deposit to fund, should be considered his personal property the moment his credit, in a retirement it has been deposited. The teacher’s deposit, together with interest uccumulations, should be at his disposal at any time he decides to stop teaching. In other words, his own deposit must be consid- ered a savings account until the amount thus saved is transferred into the retirement fund at the time of retirement upon an annuity. The amount deposited in a teacher’s re- tirement fund by withdrawable by the teacher, except in the form of an annuity, which the teacher may apply for upon reaching the retirement age. This age should be specified in the Organic Act. the public should not be If the teacher dies in service, the entire a cumulation in his account, including the con tributions made by the teacher and by th State for the teacher, should be payable to his designated beneficiaries or his heirs. If he has no heirs, it should go to his estate. Problem of Retirement Allowances of the National [69] III. Disability—4dn adequate retirement allowance should be provided for every per- manently disabled teacher regardless of the amount in his account at the time of such disability. The cost of a disability allowance can be met in one of three ways: (1) The entire cost may be borne by the employer—in this case the public; (2) the teachers may carry the load as a matter of group sympathy; or (3) both the public and the teachers may share the cost. It matters little by which one of these three ways the cost is met. Experience has demon- strated that disability costs are so small as to be almost negligible. However, the system should under no cir- cumstances allow the burden of permanent disability to fall on the unfortunate individual teacher. The Organic Act creating a retire- ment system should contain a definite pro- vision for the immediate retirement of the permanently disabled teacher regardless of his age or the amount accumulated in his retire- ment fund. IV. Guarantees of a Retirement System to Teachers and to the Public—Retirement ages and rules should be so defined and admin- istered as to retain teachers during efficient service and provide for their retirement when satisfactory service is no longer possible. The retirement annuity should be sufficient to en- able the retiring teacher to live in reasonable comfort, thereby removing the temptation to remain in the classroom beyond the period of efficient service. A retirement system should have these two desirable effects: (1) It should hold out suf- ficient inducement to lead young men and women of ability to enter the teaching pro- fession; and (2) It should encourage long continued service on the part of the efficient teacher. Both the teacher and the public must be assured certain definite results. Every teacher must be assured the absolute certainty of a retirement allowance. Furthermore, the amount of this allowance must be adequate so that the retired teacher can maintain a respectable standard of living. The public must have the guarantee that its board of edu- cation has the right to ask the superann teacher to retire. In the last analysis, the benefits of a t ers’ retirement system must accrue pri to the boys and girls attending our schools. ‘They are the ones who suffe: the superannuated teacher is retained. an adequate retirement salary is provid a board of education need have no about asking the superannuated teacl give up his place to a more youthful t or administrator. _ Death Benefits—Sums accumulat the accounts of teachers who die in and unused portions of the accounts of ri teachers should be paid either to desig) beneficiaries or to the estates of such tea “17 A sound retirement system will mak possible for every teacher to build estate. Whether his death occurs in or during his retirement, the sums lated in a teacher’s retirement fund sh paid to his designated beneficiary, to his or to his estate. ‘This fund must be upon as a trust fund which belongs t teacher; and which he can dispose of death, according to the particular selected by the teacher previous to his de The teacher should always be given choice of a straight life annuity or an as annuity of a certain number of equal ments. If he chooses the former, he matically gives up all claim to any u portion of his trust fund. If he chooses + assured annuity of a certain number o ments he automatically directs that the due of his trust fund be paid to his estat Under no circumstances should a te be compelled to forfeit his rights to eith portion or to all the funds of the retire: system when he dies. VI. Individual Accounts—The an board should open an account with each vidual teacher. Sums deposited in tha count by the teacher and by the public sh be held in trust for that teacher. Under no circumstances should the deposited by one teacher be used to pay annuities of another teacher. Each indi teacher must be assured that his annuity [70] oT J atte teed Or, und ] plar ante re tired ignated } ‘achers, lake ccumu vuld be 5 heirs looked option leath. en the issured il pay- auto- unused ses an f pay- eacher ther a rement nnuity h indi at ac- ) h Ou ld tract is an inviolable contract between sol- vent parties. He can only be given absolute assurance of this when he knows that both his deposits and the public’s deposits are set aside in a trust fund for him. A State or a city might repeal its law. But no State or city can touch any part of the de retirement posits made by the teacher and by State or city to a trust built up to provide for the teacher’s retirement. each teacher are, therefore, of vital import Individual accounts for ance. VII. Rights under Previous Annuity Systems Safeguarded—The public should guarantee active teachers all the be nefits which they had a reasonable right to expect under the old system. Furthermore, it should guar antee retired teachers the annuity promised at the time of their retirement. Teacher retirement systems are already in effect in many places. Many of these are un- sound. ‘They should be replaced by new sys- tems that are in accord with sound principles. When such replacements are proposed, the promises made the teachers under the old sys- tem should be observed. For example, if the old system promised a retirement allowance of $400 after twenty years’ service and $600 after thirty years, teachers should be guaran- teed these expectations under the new system. Or, if the teacher has taught eighteen years under the old system, at the time the new plan is adopted, he should be guaranteed eight- een twentieths of $400 at the time the new system goes into effect. ers already retired under the old system should be guaranteed the full annuity the time of retirement. Money for these purposes should be pro vided from the funds of the old system, and if these are inadequate, from public funds by the creation of a sinking fund similar to that described in section VIII of this discussion. In ne case should the teachers enrolling in the new retirement system be called upon to finance the obligations created by the old. The promise made by the public under the old system should be paid for by the public. It would be unfair to set up a plan whereby in the future a teacher codperating with the State in building a retirement fund that guar- antees his retirement at superannuation, Furthermore, teach- promised at should in addition be required to pay for the promises made by the State to a former gen- of teachers. Such an would be unjust and would not receive the eration arrangement approval of any group of teachers. It would probably prevent the adoption of a new system no matter how sound it might be otherwise. VIII. Credit for Past Service Where no Retirement System has Existed—Upon the adoption of a retirement plan, where none exists, teachers should be given credit for their Funds for this pur- publi . entire period of service. pose should be provided by the When a retirement system is adopted in a community, where none has existed, teachers should be given credit for their past service. [It is as important to the State that these teachers be retired upon superannuation as that teachers entering the profession under the new system be retired when old age has lowered their efficiency. Therefore, at the time the retirement system is adopted the pro- vision should be made from public funds for a credit to each teacher’s retirement fund just as if the new system had been in operation during the entire period of the teacher’s service. should definitely provide for a sinking fund for this The act creating the new system purpose. The creation of such a sinking fund is extremely important, whether for the pur- pose of meeting obligations created under an old system as described in paragraph VII, or for the purpose of providing for the retire- ment of superannuated teachers in a commun- retire- If such a fund is not ity which previously has not had a ment plan in effect. provided for as an integral part of the new system, the new system will be unsound at the outset. IX. Cost to Teachers and Public—The sums deposited by the teachers and by the public during the period of the annuity con- tract should be approximately equal. The cost of a retirement system may be met in one of three ways: (1) By the public, (2) by the teachers, (3) by both the teachers and the public. ‘The great majority of the recently enacted laws accept the last method. Most people agree that this plan is best, pro- [71] vided the teachers and the public contribute approximately the same amount over a long period of years. Under this plan the teacher’s contribution begins at a certain specific age, and continues as a constant percentage of his salary. The public begins at the same time to make a deposit which is a specified mini- mum percentage of the teacher’s salary. This percentage increases each year until a certain maximum rate has been reached. The deposit made by the public will be comparatively small during the early part of a teacher’s service, will increase each year, and becomes comparatively large during the last years of service. If the proper percentages are chosen, deposits over a period of about thirty years will be approximately the same for the teacher and the public. This plan is fair because it does not require the public to pay large amounts into the funds of teachers who retire from teaching at an early age, and it guarantees the teacher sub- stantial help from public funds when he really needs it. The State’s contributions to the teacher’s annuity fund do not cease until the teacher retires. Table 1, on page 73, shows the plan actually works. In this table we have a teacher joining the retirement system who is receiving a salary of $1,200, column 2. He contributes five per cent of his salary, column 3, the first year and five per cent of each suc- ceeding year’s salary. The amount of the teacher’s annual contribution, five per cent of his salary, is given in column 4. The ac- cumulated value of the teacher’s contributions, plus interest at four per cent is given in column 5. In this instance it is $5092 at the end of thirty years of service. This sum alone is sufficient to guarantee a teacher an annual income of $384 beginning at the age of fifty- five and continuing for the rest of his life, as-is shown at the foot of the table. The State’s deposits are figured in columns 6 to 8. They begin at two per cent of the teacher’s salary and increase to a maximum of nine per cent, column 6. The sums con- tributed each year by the State, and their accumulative value plus interest, are shown in columns 7 and 8. At the end of thirty years the State’s deposits are worth $5233. This sum alone will guarantee a teacher an annual income of $395 beginning at the age how of fifty-five and continuing for the rest life, as is given at the foot of the table. Column 9 shows the accumulated both deposits, the teacher’s and the the figure in each case being the sum and 8 teacher’s annuity fund from both his « the State’s deposits is worth $10,325 end of thirty years’ service. This su guarantee him an annual income of $7 ginning at age fifty-five and life, as is shown at the foot of the t amounts given in columns 5 contin The retirement allowances at age if ~ ; twenty-five years’ service and rvice thirty-five years’ se foot of the table. X. Service and Deposits Concur: De posits in the teacher should be made by the teacher the public, the period of service. annuity j unt " urrenity regularly and ne It is important in drafting new pl provision be made for regular deposits part of the teacher and on the part public concurrently with the time the is in service. ‘The diffic being met today in adopting sound ret reason suc h legislation is that this has not alway done in the past. As a result, many present systems are so fat have such large accrued liabilities, tl behind, t islature is unwilling to vote the sum sary to bring payments up to date. bad enough to make this mistake in the It would be suicidal to repeat the mist the future. a new plan is adopted that it contains It should always be insisted vision sinking fund which becomes the basis teacher’s retirement allowance upon r: requiring annual payments int superannuation. XI. Amount of Deposits Fixed—7 posit to be made in the teacher's ind account by the teacher and by the should be definitely fixed in the Organ creating the retirement system. The deposits to be made by the t and by the public must be definitely in the Organic Act. Too often in th definite contributions to be paid by the t have been provided for, but the amou [72] yublic’s deposit has been uncertain and nite. All future retirement laws should definitely the ints to be deposited by the teachers and by this method whereby the public are to be determined. If ne the exact amount of the fund which is TABLE I—HOW A TEACHER’S RETIREMENT FUND IS BUILT being built up is known, it can be depended lanned accord- contributions upon, and expenditures can ingly. It that the from the public and from the teacher be made mandatory by the Org pre- is essential L his inding ch ince for n vents any UP—AND THE RETIREMENT ALLOWANCE IT GUARANTEES > ar -) each of paid by each year cent lary teacher Per v u Si Sources of retirement From teachers’ deposits From State’s deposits Total annual retirement allowance This ta>le is explained in detail in the acc a retirement annuity fund is built up, by whicl 25 is guaranteed an annual income for life, after teachi1 foot of the table. by year Amount paid State each Annu income guaranteed if retired after 30 years’ service 35 years’ service at age of 55. at age of 6 ission of Section IX ho joins the retirement periods indicated, of the Why Every State Should Enact a Sound Teacher Retirement Law I. A Sound Teacher Retirement Law Protects Children from Teachers Ren- dered Incompetent by Advanced Age Because: 1. It sets up a plan which makes it im- possible for any teacher to reach old age and infirmity without provision having been made for his retirement. A sound teacher retirement law requires that all teachers in public school work must join the retirement system. Young teachers need not join immediately upon entering the profession, but they are required to join at a sufficiently early age so that there is time before they reach an advanced age to build up a sum large enough to provide for their support following retirement. A sound re- tirement plan, therefore, makes it impossible for a teacher to reach the time when old age has seriously reduced her efficiency without provision having been made for her retire- ment. 2. It frees school boards from the necessity of continuing to employ teachers rendered in- competent by advanced age. Without a retirement plan, school boards are too often forced to make one of the fol- lowing choices: , a. The retention of a teacher after it is clear he is incompetent from old age. b. The dismissal of a teacher, who has given years of faithful service, with the knowledge that he has no means of support. School boards confronted with this situa- tion, usually continue employment. School boards are human. The years of self-sacri- ficing service—the effectiveness of the teach- er’s work in his early career—exercise strong appeals. The aged teacher is seldom dismissed no matter how great his incompetency. School boards should not have to make this choice. ‘They should be free to see that none but competent teachers are employed. Superannuated, infirm teachers should never be kept in the classroom to leave the marks of their disability upon the plastic children Such a It is made unnece under their control. be made unnecessary. by a sound teacher retirement system. practice s| 3. It frees teachers from the continuing in service after advanced ag: mecessil seriously reduced their effectiveness. Superannuated teachers are not anxio hold on to their positions. Under pr conditions they are often forced to do s to accept charity. When confronted wit! alternative, they appeal to the sentiment boards and school officials and exert polit pressure in retaining their existence of a sound retirement system n it unnecessary for a teacher to methods to continue in service after ag lowered his effectiveness. positions. adopt II. A Sound Teacher Retirement Law Tends to Attract Capable Young People into the Teaching Profession Because 1. It partly compensates for the lower muneration that teaching offers during a service. Many young people would be willing enter teaching, even though it promises smaller income than that paid in other fi if in addition they did not have to face t possibility of a dependent old age. To: children are being taught in the public sch: to study the possibilities of a field of we before they enter it. Young people wit! sufficient native ability to make good teach may be expected to exercise foresight. Th: may be expected to avoid a field of se: which promises neither a large reward security in old age. Too great a strain sh not be placed on the missionary spirit. sound teacher retirement system guarant: reasonable security in old age and the: removes one bar to the recruiting of an quate supply of teacher candidates. 2. It gives a better guarantee of pror tion within the profession. A sound teacher retirement system ma} [74] e shi ild Necessary eSSity of age has xious to present O SO or ith this nent of olitical The e the oda ‘hools work with chers They rvice nor ould A 1tees adt ‘+ unnecessary for those who occupy the more onsible positions in the teaching profession to “hang on” after the normal age for retire- ment has been reached and their efficiency is seriously reduced. ‘Thus the paths of promo- ion are kept open for the more capable of the inger teachers. No service that denies competency a reasonable chance to advance re — “ a position of responsibility can expect to to Nation’s best recruit its fair share of the minds. 3. It removes the discouraging example of superannuated teachers who lack the means of supporting themselves in reasonable com- fort. Young people of sufficient insight to make successful teachers are quick to learn from observation. Examples too often come to their attention of superannuated teachers com- pelled to continue in service, or to suffer deprivation in retirement. Such cases are likely to nullify all efforts to recruit the pro- fession. A sound teacher retirement system remedies the situation and makes it easier to obtain capable young people as recruits for the teaching field. 4. It dignifies the teaching profession, so that capable young people may enter it with out apology. The existence of aged teachers dependent upon charity for support cannot but seriously lower the general respect for the teaching profession. “The laborer is worthy of his hire.’ Young people of worth cannot be expected to offer themselves in large number for a profession, the service of which is so lightly valued by society that its members are often found destitute in old age. III. A Sound Teacher Retirement Sys- tem Tends to Keep Capable Teachers in the Classroom Because: 1. It makes it unnecessary for capable peo- ple to seek more remunerative employment than teaching in order to provide for their old age. The idealism of youth prompts many young people of unusual capacity to enter the teach- ing profession. The large number of such people who leave teaching for other work, not necessarily more congenial, but always more remunerative, is discouraging to those anxious [75] t keep the schools at a high level of efficiency. The deciding factor in many of these cases is not that the economic return during active service is small, but that it is impossible to save enough to provide for old age. The desire to render teaching service becomes less powerful than the fear of reaching old age in a dependent condition. ‘This fear is re- moved where a sound retirement system is in effect. more capable teachers in the profession. As a result, it is easier to retain the 2. It makes each year of teaching service a step toward inde pende nce, rather than de- pendence, in old age. Sound teacher retirement systems provide for the building up of a fund for each teacher over a period of years which is the basis of the income received after With each added year of service this fund increases retirement. until it eventually is sufficient to provide for retirement. Each year of service brings the teacher that much nearer to the time when old age is protected. ‘This is the reverse of the situation where a retirement plan is not in force, and each year brings a teacher nearer to the time when he will be partly or wholly dependent upon relatives or charity for sup- port. A sound retirement system is, there- fore, an important factor in keeping teachers of independence and ability in the profession. makes continuance in the teaching 3. It profession an absolute guarantee of security in old age. In the better organized retirement systems the fund built up as a basis for the teacher’s retirement annuity is his personal property. It cannot be taken by legislative action or otherwise, any more than property of other kinds can be confiscated without proper re- turn. It is as sound an investment as a good piece of real estate or a liberty bond. The retirement income, whereas not large, is as secure as it is possible to make it. This tends to hold capable people in the profession, be- cause teaching protects old age. There is no necessity for swinging over into some more lucrative work in order to provide for the future. IV. A Sound Teacher Retirement Sys- tem Increases the Efficiency of the Teacher in the Classroom Because: 1. It lengthens the period of teaching ef- ficiency by removing from the mind of the teacher the fear of a destitute old age. More and more responsibilities have been placed upon the school during the last few decades. The result is a rapid increase in the burden of classroom and other school work placed upon each teacher. If the period of effective service of each teacher is not to be seriously reduced, unnecessary worry must be avoided. Enthusiasm and optimism are es- sential to the best teaching. ‘These qualities are not the possession of a mind harassed by fear for the future. A properly planned teacher retirement system lengthens — the period ot teaching efficiency by removing one of the main causes of worry from the lives of teachers and by preserving the hopeful out- look on life so vital to effective instruction. 2. It makes it possible for a teacher to in- west in study, training, and travel without en- dangering the provision made for his later years. The danger of getting into a ‘‘rut” threat- ens every teacher. The teacher’s work is with immature minds. He misses the stim- ulus that comes from constant contact with one’s equals. Too often he gets into a “rut” and loses much of his value as a teacher. The best protection that a teacher has from this danger is study or trave!. If he is able to come into occasional contact with adult minds in a first-class teacher-training institu- tion and to get the broader insight that comes from travel his effectiveness in the classroom is constantly improved. Without a teacher retirement system, additional study, travel and similar self-improvement are often delayed too long. The teacher hesitates to deplete each year’s meagre savings—his only assurance for the future. Under a sound retirement system the teacher, early in his career, may establish the habit of regularly investing a part of his income for the purpose of improv- ing his effectiveness in the classroom without the fear of thereby endangering the comfort of his declining years. 3. It improves the morale of a teaching force by keeping open the paths of promotion. Nothing can do more to break down the morale of a teaching force than being required to work under the direction of superannuated superiors. Furthermore, the younger t ers in the force whose capability would er them to promotion are denied such recog when superannuated people are too lon; tained in the more responsible positions. often under present conditions it is imp for the board to remove teachers in the responsible positions when they reach su; nuation. have enabled the occupants to take on responsibilities. Dismissal often means rivation not only to the one dismissed a family or other dependents. An adeq retirement system frees the school bo this situation. The administrative and pervisory positions can be kept free from wood and the paths of promotion kept The morale of the teaching force can | at a high point with untold benefit 1 children. The salaries paid in these po 4. It increases the child's respect |} teacher and thereby makes his work effective. Part of the influence of teaching on dren is lost if the child does not respect one doing the teaching. In this day and the teacher can hardly expect to claim respect from young people that is vital fective instruction, if he not only recei small compensation during active servic is also often dependent in old age. Th actment of a retirement law is a recognit by society of the value of the teacher’s ser Without this recognition, his ability to fluence the lives of children is seriously) duced. V. A Sound Teacher Retirement Sys tem in the Long Run Means a Substantia Saving to the General Public Because: 1. It makes possible the replacement superannuated teachers, who receive the ma mum salaries, by younger teachers, who be at a smaller salary. Most progressive school adopted salary schedules under which teache: begin at a minimum salary that increases 01 a period of years to a maximum that is fr fifty to one hundred per cent larger than t minimum. Teachers of long experience, course, receive the maximum. Therefo: when a teacher rendered incompetent by o! systems [76] h ive teacl reacl is m does Tunc annt caus ploy tinu buti Tron re s retained in the classroom not only is teaching done, but the cost to the public } ; large. An adequate retirement plan makes ssible to retire teachers when superannua- is reached and to replace them with ger teachers who for several years re » a salary considerably less than that paid the retiring teacher. A _ retirement plan, refore, makes for greater efficiency at a smaller cost. ). It protects the public from the waste of expensive school plant manned by a super suated teacher. [he wastefulness of a factory, equipped vith expensive machinery, but not producing ip to capacity, is readily recognized. ‘The oduct of a school—education and training or children—is less easily measured than that if a factory. In the long run, however, the school’s product is far more vital to the public velfare than that of any factory. ‘The waste f providing and equipping a _ schoolroom nd then manning it with a superannuated teacher—incapable of turning out a sound educational product—is more serious than when a factory underproduces. Poor work manship in a factory merely wastes raw ma terials. Poor workmanship in a schoolroom misshapes lives. 3. It guarantees the public a definite and valuable return for its share of the cost. Under the best retirement plans the younge! teachers are not required to join until they reach a certain age. Until they join, there is no cost to the public. does join, the contributions made from public funds in his early career for building up an annuity are very small. ‘This is proper be cause there is no superannuation risk in em If the teacher con- If a young teacher ploying a young teacher. tinues in the profession, however, the contri- butions toward his annuity fund that come from public funds gradually increases as the age of superannuation approaches. ‘Thus, no money is wasted building up funds for young teachers who may leave the profession before they reach superannuation. It all goes to provide insurance against the employment of superannuated teachers. A valuable return is guaranteed the public at a minimum cost. [77] 7 ind costly pe 1 1 \ majority of the States 1 many local munities have recognized that a plan for the retirement of teachers is essential to the zreatest school efficiency that school systems without tirement s tem will eventually provide f le in some torm. lhe enactment of a 1 t ler re tirement, based upon princi that are the lt of experience and caret s to be desired by all progressive « nunities. t prevents the adoption of ill ed measures which are too often t iltern nd which in the end not only pr: and destructive of teaching m« f the purpose for which originated | enactment of a sound measure at the makes the problem of teacher retirement a comparatively simple one both administra tively and financially and protects a State trom the costly mistakes that have been made n some places. 5 / sl ; j ; i} ‘ Its cost to tie generai public 1S Smdaii en compared u ith the benefits received. "he cost of a sound teacher retirement sys tem to the public is small. Provision is made for the retirement of teachers in some of the best laws at an annual cost that is less than 5 per cent of all school expenditures. The ictual money savings in other directions that result from a sound retirement system more than offset this small cost. In addition there are the important benefits that a retirement system guarantees in the form of more ef fective work in the Nation’s classroom VI. The Adoption of a Sound Teacher Retirement System is in Accord with the Best Thought of the Day Because: |. Private industry has already recognized retirement plans as essential to good business. An editorial in World’s Work of February. 1923, states: “Practically every railroad now pensions its workers; while hundreds of in dustrial and adopted pension systems. Most large em- commercial institutions have ployers of labor find pensions essential to the eficiency of their staffs. Only in this way can they prevent their organizations from -be- ing clogged with a large number of useless workers. One of their greatest problems has been the disposition of the considerable num- ber of veteran employees—men and women who had rendered many years’ efficient service, but who, because of the infirmities of age, had outlived their economic usefulness. Even the most mechanical practitioner of “ef- ficiency” recognizes that humanity and grati- tude are imponderables that cannot be disre- garded ; the idea of discharging these worn-out employees, and thereby reducing them to want or to the charity of relatives, was so utterly repugnant that almost no decent employers ever did so. The result was that useless workmen and executives were kept at work; not only was their labor a liability, but their presence prevented the promotion of effective men. In this way the pension system became an economic necessity. The time is probably not far distant when every prosperous em- ployer of labor will have adopted some plan providing for the future of its workers. The assurance that his old age is safe from want should be part of the compensation for the daily service. Properly regarded it is not philanthrepy; it is simply business.” 2. A retirement plan has already been put in effect in all important public services. The Secretary of the United States Civil Service Commission recently issued figures which show that at least 1,000,000 public em- ployees have already been brought under laws providing for retirement upon reaching super- annuation. More than 300,000 teache: already included under some kind of a ; ment system. Some of the plans now fect were poorly devised in the beginnin; but imperfectly accomplish the purpose. experience now available makes it possil draft plans that effectually achieve thei: pose. No community can successfully pete for its share of the Nation’s supe: teachers that does not make use of this , perience. The public welfare demands ¢! the teaching profession be guaranteed greater efficiency that comes to any form service, private or public, from the adopt of a sound plan for the retirement of superannuated employees. 3. The public in general contributes lions of dollars each year for the support insurance companies that offer protection | the future. The public in general is recognizing the in portance of insurance against old age. 1923 nearly two billions was expended by public for life insurance. At present, life surance policies to the value of fifty-five | lions are outstanding in the United Stat The sound teacher-retirement system is not ing more than an insurance plan, administ and partly financed by the public, whe one of the most important public ser\ teaching, is guaranteed the greater efficie: that comes from insurance against the ployment of superannuated employees. teachers left too long in charge. against the children and society. F THE superannuated teachers are held too long the young, ambitious, progressive teachers become discouraged because of the lack of opportunity for advancement and go into other work, and the schools and children suffer great loss in that way and also suffer from the lack of force and vitality in the teaching of the superannuated Children must not be subjected to wrong training or poor training of mind and heart and character because of incompetency of the teacher, or because of the superannuation of the teacher. That would be an unforgivable crime While basing the claim for pensions for teachers chiefly upon the welfare of the schools, the children, and society we do not mean to minimize the claim for teachers’ pensions for the sake of the teachers themselves, based upon the character and nature of the teachers’ work. The teacher’s salary at best is comparatively small, and if he gives his work the de- votion it must have properly to impress the minds, hearts, and character of his pupils he cannot have the time or the disposition to make business investments like people of other callings. If he makes these sacrifices on small pay social justice requires that he shall receive a pension when he is too old to work longer, or is disabled and cannot work longer, as a reward for past devoted services or as deferred compensation on account of low salaries.— David B. Johnson. Addresses and Proceedings, N. E. A., 1910, p 146-147. 1s that od rm loptic n of t 1 } iif ( it The Teacher’s Interest in Retirement Legislation 1. The form of teacher retirement legisla- tion which promises most in benefits to the public also promises most in benefits to the teat her. The public and the teacher have a common interest in sound teacher retirement legisla- tion. The public is interested because such legislation promises greater efficiency in the classroom and protects children from teachers The teacher is anxious for the elevating effect that rendered incompetent by advanced age. a sound retirement system has upon the pro- fession in general and for the benefits that such a system guarantees him as an individual. There is no necessary conflict between these two interests. The retirement plan which promises the greatest increases in efficiency to the teaching body is the one which in the end will bring the greatest benefits to the in- dividual teacher. It is important that the teacher realize, however, that the public often has little in- terest in the benefits accruing to the teacher from a retirement system. The public may with justification take the attitude that it owes no one a living except as payment for service rendered, and reject retirement plans advocated principally on the basis of sympathy for teachers as a group. both to draft retirement legislation in the form that guarantees the greatest returns to the public and to advocate its enactment be- cause of the benefits which will accrue to the children from its enactment. Whereas the public may be expected to exercise reasonable interest in the welfare of the teacher as such, that interest is likely to be less consistent and It is a wise policy to form a weaker foundation which to build an adequate retirement system, than is a general realization that a retirement system promises increased teaching efficiency. This principle is fundamental to progress in retirement legislation and its acceptance by teachers and their committees in drafting and promoting retirement legislation will in the end bring about the greatest advances in the direction of guaranteeing all teachers the bene- fits that come from sound retirement legisla- tion. upon 2. The support of sound t legislation on the part of all tea her retirement hers ts a pro- fessional duty. sound the It is coming to be accepted that retirement efficiency of the profession. It is, teacher legislation increases therefore, the duty of every member of the profession possessed of a proper professional spirit to place no obstacle in the way of such legisla tion. that the enactment of retirement legislation means no It may be possible, in exceptional cases, individual teachers exist for whom personal benefit. The opposition to the enact- ment of a measure, or its lukewarm support, on such a basis is unworthy of any member of a group deserving classification among the professions. legislation teacher retirement entail no hardship upon any teacher. Sound can If after being a member of a retirement system for a number of years he chooses to withdraw from the profession, the deposits made toward build- ing up his annuity fund are returned to him. Joining a retirement system, therefore, means no personal sacrifice, even though a teacher may not continue in the profession until the normal On the other hand, the failure of a small group of teachers to support retirement legislation may make such legislation difficult or impossible of enact- ment, and result in both to and children. Every teacher should give his support to the enactment of a sound teacher retirement system if for no other reason than his interest in the advancement of the fession. for retirement. age harm teachers pro- 3. Every teacher has a direct personal in- terest in the enactment of sound retirement legislation. Teachers, like other people, sometimes re- fuse to face facts. They refuse to recognize that: (1) Human beings must look forward to old age. (2) Practically all old teachers did not expect to keep on in the profession when they first began teaching. (3) Many teachers who have given their lives to the profession are actually destitute at the present time. A recent investigation covering but 12 States revealed 1263 teachers dragging out the last years of their lives in painful poverty. It is no answer to say: “That will never happen to me.” It has happened already to thousands who have said the same thing. In the absence of a sound teacher retirement system there is a possibility that it will happen to any teacher. No one can predict his future with certainty. In fact, it is more likely to happen to a teacher than to a member of other groups. The man or woman who marries and raises a family has given “hostages to fortune.’ At the time when he reaches old age his de- pendents become capable of supporting him. Other means failing, men or women who raise families may expect their children to care for them in their old age. How true this is need not be emphasized to the teacher who often is discharging this very duty. When the unmarried teacher reaches old age, how- ever, his dependents have usually ceased to exist. Few of the many teachers who now have others, partially or wholly, dependent upon them may look forward to protection in old age as a result of the care which they give these dependents. In short, the unmarried teacher is in a peculiar} position. There is a greater possi- bility of this teacher becoming a public charge than almost any other member of society. Teachers’ salaries should’ be large enough to permit saving; but usually they are not. In the few cases where they are, the absolute guarantee of a retirement law is still neces- sary to insure the teacher against unforseen want and the child against a teacher in- capacitated through old age. Every teacher, therefore, has an exceptional interest in seeing that the extra hazard of dependence in old age, which service in the profession means, should be met by the enactment of a sound teacher retirement system. 4. Sound teacher retirement legislation is based upon sound business principles, which may be freely accepted by all teachers without loss of self respect. A sound teacher retirement law is a straight business proposition in which two interested groups, the public and the teachers, share the cost of supporting a proposition that brings benefit to both. The retirement annuity is in no sense a gratuity or a matter of charity as the “pension” systems of the past so ofter been. It is salary that he receives during his peri actual service. He has fully he may accept it without question. A may support retirement legis without any feeling that it involves a loy of his own self respect, or that in whi profession is held. as much the teacher’s as earned sound 5. A teacher retirement system exe important influence upon promotion within the profession. advancem: One important effect of a sound teach tirement system is often teachers. A properly drafted plan guar annuities to all members of the profess an amount that makes it reasonable to e retirement upon reaching the normal ret ment age. In some retirement mistake has been made of placing so low maximum retirement annuity that those the upper levels of the profession recei the higher salaries refuse to retire unles actually forced to do so. As a result path of promotion is blocked and too a percentage of the most desirable teachi: positions are occupied by people. Promising people in the lowe: are thereby denied the promotion that sh: be their right. It is important, therefore, t! there be a reasonable relationship between t teacher’s salary at the time of retirement ai the amount of the annuity. complished with justice to all when « teacher is required to contribute a percent of his salary over a long period of years the building up of an annuity fund. 7] placing of a maximum amount which a teac! may receive from public funds guarant: that no one share unduly in the income f: this source. OV erlooked systems superannuat This may 6. Exact information is now availabl guide those in charge of the drafting of tirement legislation. In drafting such leg tion teachers’ committees should avail th selves of expert advice. Out of the experience gained in the admi: tration of teacher retirement systems dur the past generation has come a mass of e) information and a clarification of the p: ciples that should guide those charged with t! drafting of retirement legislation. Legislati £80] ild not be drafted which does not draw n this experience and thus avoid the ikes that have been so frequently made in serious This does not mean teachers’ or- stated The her’s decision, based upon an analysis of past. zations need accept dogmatically nciples or plans laid down by experts. ll the facts in the case, is often worth as much as that of an expert. iraw their own conclusions. Teachers should They should, wever, always have the advice of experts 1 this field, and careful consideration should e given to their recommendations. A sound teacher retirement system need not be a com- plicated affair, but it does need to be based pon generally accepted principles and to void the errors that have brought such un- fortunate results in many of the old unsound | ‘pension”’ systems. 7. The enactment of sound legislation must be based upon a proper education of the public nd united effort on the part of the teaching profession. There are still those among the general public so short sighted that they are unable to see the benefits that accrue to the children from the enactment of sound teacher retire- ment legislation. In spite of the small cost that an annuity plan adds to public expendi- tures, and the many savings which it brings, they oppose all efforts to enact such legislation. It is necessary to educate carefully such people as well as those who more re its benefits. In carrying on this important actually obtaining the enactment of teachers should preserve a united front sound teacher tion 7 he legislation too often have defeated such legis by arraying one group in the opponents ol retirement lation profession against another, such as elementary teachers beginning When they ar what against secondary teachers, o1 teachers against those of experience. ever teachers allow this to be done the losers. All teachers, no matte: type of educational position they hold, should ay proach the problem of retirement legislation in a spirit marked by a willingness to accept reasonable compromises, and an ability to sec the other teachers’ viewpoint. There should be a willingness to submerge non-essentials, in dividual likes and dislikes, and individual in terests to the larger benefits that come to the profession as a whole from the enactment of legislation based upon sound principles rathe: than upon the desire to make special excep tions for any individual or group in the pro fession. Controversial points should be de cided with the greatest possible fairness, and then all should stand together. teachers of any accept and act truths will to a large degree determine thei: The readiness State or these with which com munity upon simple success in promoting the enactment of sound teacher retirement legislation. PUBLIC SCHOOL EFFICIENCY AND TEACHER RETIREMENT SYSTEMS ‘THE OUTSTANDING reason why a State should enact a law providing for a sound teacher retirement system is that such a law makes for public school efficiency. It is the children of the Nation who suffer most from the failure to provide annuities mak- ing possible the retirement of aged, infirm, and therefore incompetent teachers. A retirement law attracts competent people to the teaching profession. fails to guarantee protection in old age the most capable fail to enter the profession, or else leave it and accept employment in more remunerative occupations, where they can assure themselves a competence for their old age. Retirement at a reasonable age makes possible sufficient promotions and advance- ments so that the morale of the rank and file of the teachers can be kept high. enactment of an adequate retirement law, therefore, is a step in the direction of a better public school.— Research Bulletin of t No. 1, January, 1923, p. 58. he National Education Association. Vol. 1, If a State The State and Local Retirement Systems Now in Effect The progress of the teacher retirement movement as indicated by the enactment of State and local measures is indicated in the tabulations and the map which follow. The data relative to the situation in the States resulted from a survey made in co- operation with the secretaries of State teacher retirement boards during May and June, 1924. The tabulation of local measures re- sulted from a survey made with the assistance of State and local superintendents and secre- taries of local retirement boards. It lists the great majority of important local retirement systems now in existence. Copies of practically all of the State and local laws referred to, where they are avail- able, are on file in the Research Division of the National Education Association together with official reports and bulletins issued by many retirement boards. Exact information as to where the text of any teacher retire- ment measure can be located may be obtained by addressing the National Education Associa- tion. It was impracticable to summarize the pro- visions of the many State and local teacher retirement measures now in effect. The ac- companying tabular statement of nine repre- sentative city and State teachers’ retirement systems ‘gives the principal provisions incor- porated in these measures. ‘The nine retire- ment measures tabulated do not constitute a complete list of the sound retirement systems of the country. Other retirement laws than the ones included might have been selected and included in the insert on page 83 headed Tabular Statement of Teachers’ Retirement Systems. State Wide Teacher Retirement Laws are in effect in the following States: 12. Montana 13. Nevada 1. Arizona 2. California 3. Connecticut 14. New Jersey 4. District of Columbia 15. New York 5. Illinois 16. North Dakota 6. Indiana 17.. Ohio : 7. Maine 18. Pennsylvania 8. Maryland 19. Rhode Island 9. Massachusetts 20. Vermont 10. Michigan 21. Virginia 11. Minnesota 22. Wisconsin In the above States, the following cities a counties have local teacher retirement syste independent of the State systems: Detroit, Mich. Duluth, Minn. Peoria, Ill. Minneapolis, Mint Terre Haute, Ind. St. Paul, Minn. Allegany Co., Md. New York, N. Y. Baltimore, Md. Bristol, R. | Baltimore Co., Newport, R. I. Boston, Mass. Providence, R. I. Milwaukee, Wis. State Teacher Retirement Laws A ffectin Cities of the First and Second Class are effect in the following States: Cities operating retirement systems und such State Laws are: 1. Colorado New Haven, Conn. Chicago, Ill. Md. Cafion City Colorado Sprir gs Denver Greeley . Kansas ~ opeka . Kentucky Lexington Louisville Newport Des Moines New Orleans Portland Salt Lake City Bellingham Everett Seattle Spokane Tacoma Parkersburg Wheeling No State Law Relative to Teacher Retir ment is in Effect in the following States: . Alabama 9. New Hampshir . Arkansas 10. New Mexico , Delaware 11. North Carolina ‘ Florida . Oklahoma . Georgia . South Carolina ‘ Idaho +. South Dakota - Mississippi . Tennessee . Nebraska 6. Texas 17. Wyoming In the above States where there are no per: missive or mandatory laws relative to teach retirement, the following cities and counties have local retirement systems: Mobile Co., Ala. Manchester, N. H. Wilmington, Del. Nashua, N. H. Columbus, Ga. New Hanover Co., > Greenville, Miss. Charleston, S. C. Yazoo City, Miss. Nashville, Tenn. San Antonio, Texas . lowa . Louisiana . Oregon . Utah - Washington 9. West Virginia oN Aw ONE [82] t x Cities ap rings States: rolina rolina ] Name of State and Method of I-xpenses date when | adminis- borne law tration Dy became Mass Teachers State Retire ‘14 minent Board 3 I ‘ ty | Conn Board of State 5 mem- 191 bers Vi Loard of State + mem vio bers N. Y. City Board of City of | 7 mem- New 11917 bers York N.J Board of State | 7 mem- 1919 | bers | | Pa Board of State 7 mem- 1017 bers Ohio State leachers Board are as- 1920 > mem sessed not bers to exceed $1.00 per year Wis Annuity Expenses Board of | paid from 1921 7 mem- Contin- bers, also | gent three re- Fund. tirement Contin- boards of | gent 5 mem- Fund de- bers each. | rives its income from the state \ Minne- Board of | City of apolis 9mem- | Minne | | bers. apolis. | 1924. | This statement was prepared in June, 1924, with the assistance of the Secretaries of the Retirement Boards and the facts given verified by them in each case. mber up optional! or com- puisory Compul sory Optional Compul- sory Compul- sory Compul- sory Compul- sory Compul- sory for all teach- ers over age 25. Compul- sory for all teach- ers over age 25. Pe yn fund \ Fr the state Annual appropriation for the payment of incurred pensions These pensions are equal to the annuity the teacher is able to purchase from her own accumulated contributions. Teach- ers who served in the State prior to the date the retirement systern was estab lished receive a per sion approximately equal to the pensior they would have re ceived had the retire ment law been in ef fect during their en tire period of service Thus the state’s por tion of the pensior paid to the teacher is not on an actuarial basis as no sinking fund is created to meet future pensions of the present teac! ing force. State appropriates at retirement a equal to the accumu- lated teachers’ sav- ings which is to be used to purchase a life annuity. Thus the state’s portion of the pension paid to the teacher is not on an actuarial basis as no sinking fund is created to meet fu ture pensions of the present teac hing force sum State pays annually to annuity fund cre- ating a sinking fund be for annuities to paid to the present teaching force The amount paid annual- ly equals the amount the teacher pays to the annuity fund. An actuarially sound ba- sis, City pays each month asum which is the actuarial equiv- alent of the monthly contributions of those entering service since 1917, the effective date of the law. Also City pays annually $1,000,000 on ac- count of liability for old teachers. State pays annual con- tributions which are sufficient to create a sinking fund from which is paid to teach- ers at retirement a pension of 1/140 of average salary multi- plied by number of years of service. The state pays an- nually into the fund an amount which will be sufficient to pur- chase a pension of 1/160 of the teacher's average annual salary for the last 10 years of service, multiplied by the total years of | service. Thus the | teacher who has taught 40 years will receive from the state \4 of her average sal- ary for the last 10 years The local taxing dis- tricts of the state con- tribute 4.7% of the total payroll of teach- ers. This is estab- lished as a sinking fund to be drawn upon when paying the teacher a pension This rate may be changed by the Actu ary. An amount depen-| 5% of teacher's sal- dent on the teacher's deposit and term of service. Maximum 200 % of teachers’ de- sit plus 25.00. Maximum amount $325.00 per annum per . source of the state's deposit is a surtax on incomes above $3,- 000.00. This has pro- duced more than $1,- | 300,000.00 for 1921. dent on deposit and term of service. average ary | accordance with age teacher. The | B From the teachers Board establishes percentage of teach- er’s salary each year This percentage must not less than 3 be or more than 7% Minimum $35.00 Maximum $100.00 Only rate has established since which is one been organization pay 5% of Minimum Maximum Teachers salary $25.00 $100.00 Board establishes per of teacher's centage salary each year Only one rate has been established since organization, which is | 5 Minimum, $16.00 Maximum, $100.00. Teachers desiring to be retired on one- half salary pay on the 6% of sal- This varies in and service. Teachers pay from 4% to 7% of salary. Average 4%. mulated payments are sufficient to pur- chase an annuity of | 1/140 of average sal- ary multiplied by years of service. Teacher pays from to 5% of her sal- into the annuity 3% ary fund toage. Theamount paid by teacher is suf- ficient to purchase an annuity of 1 her average salary for the last 10 years, mul- tiplied by the num- ber of years of ser- vice Teacher pays 4% of salary. | her monthly Maximum $80.00 per annum ary to Retirement fund. v0 ary. Accu- | This percent- | age varies according | 160 of | 6 allowances Retirement A B Paid by state Paid by teach An annuity paid the teac!} A pension is paid by the State which is equal to | in such the annuity to/ amount as |} which the teach- | accumulat er is entitled | savings with from her own | terest will p savings accumu- | chase lated with inter- est. Teachers who served in the State prior to the date the retirement system was es- tablished receive & pension ap- proximately equal to the pen- sion they would | have received had the retire- ment law been in effect during their entire pe- riod of service. An annuity The matches the in- | paid the teact curred pensions | from her ac paid theteachers. | mulated deposits These payments/in an amount are made only to/| equal to that teachers who | which her acc havereceivedan- | mulations w nuity payments | purchase. from their accu- mulated savings State paysapen-| An annuity is sioninanamount | peid teacher in equivalent to | such an amount what the teach- | as the teacher's ers’ accumulated | accumulated savings will pur- | savings with chase, plus arbi- | terest will pur trary sum (now | chase. $150) to increase | allowance not to | exceed 4% aver- age annual salary during entire ser- vice. City pays the | Teacher pur- teacher a pen-/| chases an anpnu sion of 4 of her | ity of 4% of her average salary | average salary for last 10 years. | for last 10 yeears Thus the city | Annuity pur- matches the | chased from the | teacher’ssavings. | accumulated de- For “present | posits of the teachers” (old | teacher. New group) city adds | entrants since | 1/140 of average | 1917. salary for each | year of prior ser- | vice, i.e. before | August 1, 1917. State pays a pen- | Teacher pur- sion of 1/140 of | chases an annu- average salary | ity with her sav- multiplied by | ings of 1/140 of number of years | average _ salary of service. Mini- | multiplied by mum $200 per | number of years year. | of service. Min- | mum 200 per | annum. — “ State pays pen- | Teacher receives | Teachers under |sion to teacher| from her own | which is 1/160 of | contributions an her average sal- | annuity which is ary for the last equal to 1/160 of 10 years of ser- her average sal- vice multiplied | ary for the last by the number of | 10 years multi- years of service. | plied by the number of years | of service State pays a pen- sion equal to that which the teach- from the annuity fund to which 6 years of tinuous service Teacher receives | ers’ accumulated payments will purchase. For | service prior to | 9/1/20, 1 1/3% of members aver- age salary (not to exceed $2000) for | the ten years im- mediately pre- ceding retire- | ment. she has contrib- uted an annuity in such an amount as her | accumulated savings will pur- chase. Minimum $300.00 per an- | num after 36 years of service The teacher re- ceives such a pension as accu- mulated state's deposits will pur- chase. |An amount depen- | 5% of teacher's sal- | The teacher re- the teacher's | | ceives such a . | pension as accu- mulated city’s | deposits will pur- | chase. | | | J The teacher re- ceives such an annuity as the teacher's accu- mulated savings in the fund will purchase. The teacher re ceives an annuity s the teachers accu- mulated savings such Teachers | secutive service A Requirements Teachers under 60 years of age d having 20 years’ service in | - ~ 128s ast oO years continu- | en years of ser- vice con- 10 years city ser- Vice 10 years of ser- vice 62 and years of age having 10 years of service are eligible for disability bene- fits when they become disabled. 10 years’ service required. Teachers must secutive service before they | have 5 years con- | eligible for disa- bility benefits. | Disability B Allowances Annuity pur- chased by mem- bers’ own accu- mulated contri- butions with in- terest and the pension from the state based on service. Total re- tiring allowance cannot exceed re- tiring allowance which teacher would have re- ceived had she remained in ser- vice until 60 years of age. Reduced pension depending in amount on term of service Amount paid dis- abled teachers is such an allow- ance as the accu- mulated savings of both state's and teacher's savings may pur- chase, plus an ad- ditional amount which is deter- mined by the Board. Total not to exceed 4 av- erage salary dur- ing entire ser- vice 20% of average salary from the city plus the an- nuity earned by teacher’s contri- butions plus, for “present teach- ers” the 1/140 under 6A. Annuity paid teacher is 1/70 of average salary | multiplied by number of years of service. Mini- mum is 30% of salary or $300.00 | Amount of disa- bility benefits are reduced pensions depending upor term of service | Teacher receives reduced pension. Minimum 30% of her salary. Teacher receives a monthly annu-/| both the teach- ity of $25.00 and such additional monthly benefit as her accumu- la savings and state’s de- posits will pur- chase. must have 5 years con- before they are | eligible for disa- | in the fund will | bility benefits. | purchase | | An amount equal | In case of death to the annuity and pension at | er’s and | deposits are pay- | abl age 50 TABULAR STATEMENT OF TEACHERS’ RE7 g Consideration granted prior her I Case death, | Case of signat I estate of teacher | tea receives the total tot gs savings of teach- | lated w er accumulated witli terest d i A I teacl SAN r’s s. N g | teacher I S Not Ir ngs ror at ror ti In cas death Afte t ATte alter ¢ ears the stat t estat the | lI t - teacher will re-!| Pr ceive both state's teache g v1 Pr and te her s ac- I cumulated sav- | 4 ings. Prior to 6 years only teach- t ers savy gs witl compound inter- est at 4 Estate will re- Teacher r ev her T's celve teacher's | total sa gs wit i total savings | comr erest wit! 4 with 4 com- pound pound interest plus % last sal- ary if eligible for retirement at deat} In case of Death, Resignation or Dis s total deposits of the teacher accumulated with 3% est compounded annually are payal ther to tl of the teacher, or the benef ar her teacher herself Estate teacher Teacher re ves t I’ receives total of | tal of her s ngs total of teacher's savings | accur ted wit! gs or accumulated | terest. Not g fro mulated with terest the stat terest. Nothing from the th state Estate receives | Teacher receives her Teacher total savings of | total savings with ac- | her tota teacher with ac- | cumulated interest with acc cumulated inter- | ed intere est. | In case of death | In case of resignation | State's both State’s and teacher's er’s and state's | teacher's deposits are ts are deposits are pay- | payable to the teach- | to teach able to the estate | er with interest. The | interest lof the teacher | state’s deposits are | deposits | with interest not payable until the | payable teacher is 50 years of | teacher age and then are pay- | years of able as a life annuity. | then the Teacher’s deposits are | payable payable immediately. | annuity | In case of resignation | City’s | both the teach- | both city's and | teacher’s city’s | teacher's deposits are | its are payable to the teach- | to er. The city’s depos-| City’s « | its are not payable | are not | until the teacher is 50 | until tea | years of age and then | 50 years e to the estate of the teacher. | are payable as a life | and the: | annuity for such term | are payal | of years as the teach- | life annv er may elect. Teach-| such te | er’s deposits are pay- | years a able immediately. teacher elect. In arrangement it follows the tabular statement reproduced in tk ERS’ RETIREMENT SYSTEMS , ) r to time teacher is eligible | until teach- lj snsion . d by Contribution by Req " f old | State to pension A we . re ter 8 at date fund for the ( rirement ser sfer fiscal year end- tio! Dismissal g in 1923 signati In case of dis Ve ry | N i ° $5,8 setts is P yn to mem eives her missal teacher it ag f 60 I 8 entire ex bers $280,300.32 s accumu receives her total | Compulsory requir paying to | Reimbursement nterest savings accumu it age 70 for s } when they to cities for pen ated with inter ment 1 which | sions paid by cit est $ s lit for their | ies $73,027.16 e State | Expense of ad- late tl ministration $10, syste 044.36 Total i $363,371.84 i teach- | Accumulated | 60 years Min I J ‘ ry as the | $173,321.74 Nothing | teacher’s sav- 15 year t s sound te ings Nothing $1 $ 8,09 from the state Fe $1 ) H Vi $ is $2 he « | | | After 6 vears, | Men6 30) N ‘ 24 I did not as- | Appropriation for] both state’s and | Women 60 ‘ { $195.5 fit ibility in | fiscal year ending teacher's secu 54 8. 3¢ d teach June 30, 1924, is ars only | mulated savings $20,000.00. Pay- ngs with | Prior to 6 years $ . ments made by terest at only teacher's State to June 1, savings wit! 1924, is $16,864.- ympound inter 13 st at 4 } | | ves her | Teacher receives | Optior st | 35 vear $2.8 $194,007.80 | I f ) n August 1, | City contributed} with 4 her total savings ge ¢ r service ( 1,967.74 | s t took over the | in 1923 $3,274,- terest with 4 com- 35 vears annuit ( > 346.00 pel ‘ pavro of about O00 pound interest service, and | of % $ 10,000 per annum compulsor erage s 32 i ur produce for - r , tur a liability “ f t 10 million \ ) x Dismissal of teacher, the | Age 62 or af- | 35 years if | $1,¢ 21,092 } $5,500,006 ( t New Jersey did as- | New Jersey paid ummulated with 344 % inter- | ter 35 years teacher le ibility for old | $1,049,000.00 avable either to the estate | of servic« under age i rs, estimated to | during past year.| y of the teacher, or to the 62 the State $394,- . ) er year during the the teaching who were teach- g at the date of fer | Teacher receives | Optional at | 10 yea ¢ H Met f $1 10,000.00 assumed liabil- |$1,840,107.44. total of her sav- | age 62.Com- t s d_ teachers ings only, accu- | pulsory ut I 129,000.00 | t establishing the ng from | mulated with in- | 70 years vith t 225,501.88 t pension law terest. Nothing terest at ae Pore : gr 7 st« > o2U S00 SS terminec )- from the state i ahaite $30,000.- ives her | Teacher receives | 60 years of | 36 vears McC 38. OOF $14,932,617 17 I Stat pension | Local taxing dis- with ac- | her total savings | age or 36) under ag tock’s ‘ 342,000.00 pays pensions | tricts pay 4.4 '% ferest with accumulat- | years of ser- | 60 1 various cities | of teaching pay- ed interest vies Tota $15,305,122.22 joined in the | roll in that dis- state fund. This lia- | trict to the fund y is assessed | This amounted to wainst the cities and | $3,339,257.33 is not assumed state State's and | Teac her| There Not de-/| About Ret ids It is ied liabilities June 30, 1923, teacher’s depos-| may stop | no re termined. | 18,000 Bonds $880,000.00 | it st ‘ oa gee | Wise ~ aa ay its are payable | teaching at | quired Stocks SL WW 4 Oe Ce ere to teacher with | any time | time of Mortgages ; oth interest. State’s | and get such | service Other Collateral tas .|8 3 its are | deposits are not | a pension as | See ar Cash 107 988 33 ntil the | payable until | her accumu- swer t 2 oval 957 ,YSS.99 years of | teacher is 5O | lated depos- No. 9. Wisconsin may invest in such are pay- | years of age and | its and the | assets as & lite insurance com nnuity.| then they are |state’s de- pany invests in, such as mor osits are | payable as a life | posits will gage | ans, bonds and loans on diately. | annuity. purchase. accumulated deposits of teac! | State’s de- | ers | posits are | not payable | until teach- er is 50 years of | age. Teach- er's payable immediate- | ly } ignation | City’s and | Teacher eed. te |} \il- | Not de- | 2,000 $400,000 \ ed by the city. | $70,000.00. and | teacher’s depos- | may stop | no re- termined | sits are | its are payable | any time | quired e teach- | to teacher. | teaching at | time of 3 depos- | City’s deposits | and get such | service | payable | are not payable | a pension as | See an her is 50 | until teacher is | her accumu-|swer to nd then | 50 years of age | lated depos- | No. 9 is a life| and then they | its and the | } ich term | are payable as a| city’s de- e teach- | life annuity for | posits will | Teach- | such term of | purchase are pay-| years as the/| City’s de- | tely. | teacher may | posits are | elect. | not payable ; | er is 50 years of age. Teacher's payable im- | mediately. nt reproduced in the January, 1923, Research Bulletin of ational Education Association which was prepared for the Minnesota Teachers’ Retirement Fund by R. B } | ! Mothersill, Actuary YAY roy et st J po wo re eee USS 4 Onset y ae 4Siprey | ZA iP i & dd A "i *S8eTO pucoes pie 3813 9U3 JO SOTTO ATUO SZOeZFV — OPT FIA, 6283S 30U 3nq ‘MET JUOMeTTIOH toyoRe!, 07876 Me ae'l 2UpUBITIOH Seyoee] SPT 9399S ws | , SURRIO MOM, QI: mel {UPUBATZON seyOVeL 03835 OM Ba he gl >|! 9° a ' eZ. aa pt), “Aba: y /p Mle oper What do accident TABLE 2. Income and Outgo for Retirement Systems in es it cost? teacher sent to Representative States This is one of the questions commonly asked about systems of insurance, Through an inquiry INCOME AND OUTGO OF REPRESENTATIVE STATE TEACHER RE retirement, secretaries of etc. FUNDS—FISCAL YEAR 1922 » 3 ables State-wide teacher retirement systems come and expenditures of these the fiscal years of tained. ot og 2 and 3 and 1923 ive the eTIRE MEN} States California. Illinois . has Michigan. . Minnesota. . New Jersey. North Dakota Pennsylvania. . Virginia Connecticut. .... aes husetts.... Payments by State into retire- ment fund (appropria- tions, etc.) $340 , 236 9,996 327 ,370 36,000 312,093 78 995 12,é 740, | 71,427,62 20 , 637 3,680,394 20,000 10,000. 76.89). . . 50) Income pesiann into retire- | ment fund from other sources (teachers’ | contribu- | tions, etc.) 3 60} $294,933 49} 385,813 80} 280,871. oo Co 80)1, ,046 , 830. 197,279.56 ia 166,703 00} 1/1,280,475 89.860. 88/2, 810, 168.7: 00| 22,856 00) 118,987. 934,713.02! 7 36 Total Income Amount paid to teachers in pensions $635,170. 05)? $262 »25 395,810 607, 36,000 1,358,923 197,279 244,926 .2 12,376 1,674,713. 2,708,097. 110,497 6,490, 563. 42,856 .7 128 , 987 .3 741. 20) 84) 00) 86} 56 23} ,V0OO —— ,605 , 208 , 769 . 3% , 468 5,697 , 241 »405 694.00 »112.69 Notes: payrol ls, invest 1 These include reimbursements to cities for pensions — locally ete ~ 4th being paid from previous year. bonds etc., making a total of $609,077.29. cluded $187, 423.30 invested in bonds and $7,512.25 for refunds. the fiscal year 1923 instead of 1922 2 This § The total! disbursements included this amount * This amount covers refunds etc § Does not include ? Payments from cities and school districts. 30, Cost of Admin- istration $6,413 6,978.5 13,656 10,422 30,118 5,623.8 000 20 , 590 .§ 1,318 39, 000 .| 537 amount ‘TT New York Cit TABLE 3. FUNDS—FISCAL YEAR 1923 INCOME AND OUTGO OF REPRESENTATIVE STATE TEACHER RETIREMENT California Connecticut. . New York ° Pennsylvania | | | | North Dakota. . Payments by State into retire- ment fund (appropria- tions, etc.) $317 , 232 173,321. 306 , 105 80, i Income Payments into retire- | ment fund from other sources (teachers’ contribu- tions, etc. ) 22) $296,564. 74| 432,147 14} 291,017. 00) 1. 84/1,124,966. 1.64 210,592. 203 , 847. | eee # .00/1, 170,371. 82|1,535,126. 30) Notes: ,629 34 4,051,219. 00} 00! 24,941 121,070. $613,796 605 , 469. 597,122. 80,000. 1,488,338. 210,592. 272,278. 88.61 12,1 2,219,371 131, :070. 69 4 1 34 . 87 60 67 00) 40) 68) 97 74 Amount paid to teachers in pensions $371,607 54,381 .7 466 ,723 80,000 298 , 262 98 , 607 106,471 8,057 776,430 831,760 31,852 337 ,992.: 1,148.96 101,858 "30,000 Outgo Cost of Admin- istration Other! expenses 65, O85 480.7 80 381 123,7 308.5 806 S62, 38 YOU, 30 ] 101 30,722 ; 1,310 41,000 1 These include reimbursements to cities for pensions paid locally etc amount and in addition $206,450.00 invested in bonds ete., making a total of $584,795.03. « These total disbursements included $91,927.56 invested in bonds and $9,623.14 for refunds. City, and figures given are for the fiscal year 1924 instead cf 1923. * The total disbursements included § This amount covers refunds « § Does not include New Y * Payments from cities and schoo! districts [84] Massac Michig: Minnes Montar Nevada Pennsy Rhode Vermor Virginia Wiscon Where to Write Concerning Details of State and Local Retirement Systems What measures were used to secure the pas-__ similar questions can best be answered by direct Bm the ge of the teacher-retirement law of a partic- correspondence with local secretaries of retire lar State; how local retirement systems have ment-fund boards or local veloped and how they are administered; hat obstacles have been met and how they been overcome; why one city or State 3s framed its law in a particular way, what ® % whom correspondence sh ahd be ad ; advantages are, and the expenditures for dressed concerning details of State and local STEMS toy } | school superintend were ents. ilts. The following directories give information cal retirement systems—these and many retirement systems. DIRECTORY OF STATE WIDE TEACHER RETIREMENT SYSTEMS Person to whom correspondence should be addressed relative to retirement Address | C. O. Case, State Supt. of Public Instruction Phoenix, Ariz. Miss Marion H. Ketcham, Ass’t. Sec’y., Public School Teachers’ Retire- | Box 615, Sacramento, Calif. ment Salary Fund Board. Miss Dorothy M. Shanley, Ass’t. Sec’y. Teachers’ Retirement Fund Board State Capitol, Hartford, Conn. | Maj. Raymond O. Wilmarth, Sec’y. Teachers’ Retirement Fund Board Franklin School Building, Washington, D. C. .| R. O. Clarida, Sec’y., Teachers’ Retirement Fund Board State Capitol, Springfield, Tl. .| Estes Duncan, Ex. Sec’y., Teachers’ Retirement Fund Board 22 State House, Indian- | apolis, Ind Dr. Augustus O. Thomas, State Supt. of Public Instruction Augusta, Maine. | Albert S. Cook, State Supt., of Public Instruction Baltimore, Md. Clayton L. Lent, Sec’y., Teact 1ers’ Retirement Board 204 State House, Boston, Mass. Mrs. Laribee, Sec’y. Teachers’ Retirement Fund Board American State Savings Bank Bidg., Lansing, Mich. | M. A. Morse, Sec’y. Teachers’ Retirement Fund Board 211 Historica! Bldg., St. Paul, Minn. | Miss May Trumper, State Supt. of Public Instruction Helena, Mont. or Miss Pearl Stimson, Sec’y. Teachers’ Retirement Fund Board State Capitol, Helena, Mont. Reanes Charles Priest, Ex. Sec’y. Teachers’ Retirement Fund Board Carson City, Nev. 40 411.50 ersey... ee Enright, Sec’y. Teachers’ Pension and Annuity Fund.... P. O. Box, 840, Trenton, N.J. ; Seige ork. . Lantman, Sec’y. Teachers’ Retirement Fund Board Albany, N. Y. = —f North Dakota...| P. S. Berg, Supt. of Schools Dickinson, N. Dak. = Ohio. . ..| W. E. Kershner, Sec’y. Teachers’ Retirement Fund Board 324 Rowland Building, Co- lumbus, Ohio. Pennsylvania...| H. H. Baish, Sec’y. Teachers’ Retirement Fund Board Harrisburg, Pa. Rhode Island...| Walter E. Ranger, Commissioner of Education Providence, R. I. -EMENT ermo Miss Bertha L. Buzzell, Sec’y. Teachers’ Retirement Fund Board Montpelier, Vt. Virginia ........| Harris Hart, State Supt. of Public Instruction Richmond, Va. Wisconsin R. E. Loveland, Sec’y. Teachers’ Retirement Fund Board. State Capitol, Madison, Wis. The above names and addresses were obtained through an inquiry sent to State Superintendents of Public Instruction by the Division of Research. EVOLUTION OF TEACHERS’ RETIREMENT ALLOWANCES HE HISTORY of the movement for teachers’ retirement in this country may be divided into three periods. The first period opened in 1869 with the establishment of teachers’ assurance and mutual-aid associations. The second period began in 1894 with the securing of retirement legislation, but without due regard to sound principles. The third period is now opening with a movement toward reorganization of existing retirement funds and the establish- ment of new funds on a sound basis.—Paul Studensky—Teachers’ Pension Systems in the United States. RETIREMENT SYSTEM PROMOTES EFFICIENCY SCHOOL employees’ retirement system is desirable for at least four reasons, as follows: (a) the elimination from active school service of those who have lost their efficiency be- cause of advancing age, or mental or physical disability; (b) the improvement of the morale of those who remain in service; (c) the retention in the service of the best of the present employees, many of whom in the absence of such a system resign to accept positions elsewhere; and (d) the attraction to the service of a higher grade of employees.—Pennsylvania Circular issued by Retirement Board. DIRECTORY OF STATE TEACHER RETIREMENT SYSTEMS WHICH APPLY TO CITI THE FIRST AND SECOND CLASS AND LOCAL RETIREMENT SYSTEMS Alabama.......| Mobile County. Colorado | Canon City Colorado Springs Denver... Greely. . Pueblo. Connecticut....| New Haven Delaware Wilmington. . Columbus... Illinois. .......| Chicago. . Peoria Terre Haute.. Des Moines... Massachusetts .| Boston. . Detroit. . Minnesota.....| Duluth. Minneapolis St. Paul... Mississippi.....| Greenville. Yazoo City.... New Hampshire; Manchester.. Nashua. New York New York. North Carolina .| New Hanover Co Oregon. Rhode Island...| Bristol... . Newport.... Providence. . South Carolina.| Charleston.... Tennessee Nashville. . San Antonio. ... Everett....... Spokane........ State City or outs New Orleans... . | Allegheny County.| Mrs. Margaret S. Upham, Sec’y. Retirement Fund Board Salt Lake City....| Person to whom correspondence should be addressed relative to retirement systems S. S. Murphy, Co. Supt of Schools O. B. Drake, Supt of Schools. F. H. Bair, Supt. of Schools.... Jesse H. Newlon, Supt. of Schools G. E. Brown, Supt. of Schools. . J. F. Keating, Supt. of Schools Arthur E. Booth | Miss Florence Ramo, Sec’y., Retirement Fund Board R. B. Daniel. Supt. of Schools Miss Mary M. Abbe, Sec’y., Retirement Fund Board Miss Catherine C. Quinn, Financial Sec’y., Retirement Fund Board. or Miss Ruth E. Samples, Recording Sec’y., Teacher Retire- ment Fund Miss Lulu B. Johnson, Sec’y., Retirement Fund Board. | Miss Mae E. Francis, State Supt. of Public Instruction . W. Miley, State Supt. of Public Instruction..... ey Walby, Sec’y., Teacher Board of Insurance and uity | Miss Anna Voegtle, Sec’y. Retirement Fund Board > F. Pete on of Schools. . . Tete, -Treasurer, Board of Trustees, Teachers’ etirement Fund. Miss Mollie R. Hobbs, Sec’y., Retirement Fund Board | Baltimore County. Miss M. Cassie Ady, Sec’y., Retirement Fund Board William F. Reagan, Executive Officer, Boston Retirement Board. George E. Parker, Sec’y., Retirement Fund Board... | Miss Pauline Blackshaw, Sec’y., Retirement Fund Board Francis Cleary, Sec’y., Retirement Fund Board.... Miss Florence Rood, Sec’y., Retirement Fund Board E. E. Bass, Supt. of Schools . E. G. Olden, Sec’ 59 9g Council. Frank A. Morris, S Honorable Sec’y. of 7h yam Magnus Gross, Sec’y. Teachers’ Retirement System | J. A. Orell, County Auditor. . 'D. A. Grout, Supt. of Schools... | Benjamin H. MacDougall, Sec’y., Retirement Fund Board | Alfred R. C. Gatzenmeier, Sec’y., Retirement Fund Board | Col. Henry B. Rose, Sec’y., Retirement Fund Board. | A. B. Rhett, Sec’y., Retirement Fund Board | Baxter Cato, Sec’y., Retirement Fund Board. . | C. A. Arnold, Sec’y., Treas., Pension Society... George King, Sec’y., Retirement Fund Board. | z ena Warren, Sec’y., Retirement Fund Board... . Mansfield, Retirement Fund Board 4 p 3 ‘Knutson, Sec’y., Retirement Fund Board. . | | Miss Clara L. Jahnke, Sec’y., Retirement Fund Board John O. Peterson, Sec’y., Retirement Fund Board H. E. Ogders, Supt. of Schools . | Miss Martha E. Wilson, Sec’y., Retirement Fund Board | Miss Margaret Costello, Sec’y., Retirement Fund Board The above names and addresses retirement system. were supplied by the superintendent of schools of each city or county having a teacher Address Mobile Co., Mobil Canon City, Colo Colorado Springs, Denver, Colo. Greeley, Colo. Pueblo, Colo. New Haven High Schog New Haven, Conn Wilmington High Schoo, Delaware Ave. & Mop. roe St., Wilmingtm, Del. Columbus, Ga. = Clark St., cagy 602 M adison Ave., Peon tll ny 412 Cornhill St., Peoriy, 912 N. 9th St., Tem Haute, Ind. Des Moines, Iowa Topeka, Kans. Lexington, Ky. 322 E. Breckinridge S, Louisville, Ky. Newport, Ky. Municipal Bidg., Ne Orleans, La. Washington St., Cun. berland, Md. Walbrook Ave. & Sma! wood St., Baltimon Md. Towson, Md. Room 22, City Hal, Boston, Mass. 1354 - amen Detr Mich 226 w First Ave, £ Duluth, Minn. 3325 Third Ave., Sout Minneapolis, Minn. Woman’s Club Bid, St. Paul, Minn. Greenville, Miss. Yazoo City, Miss. Manchester, N. H. Concord, N. H. Municipal Bidg., New York, N. Y. New Hanover County Wilmington, N. C. Portland, Ore. Bradford St., Bristol, R.I 10 Peckham Ave., New- port, R. I 9 Exchange Terrace Providence, R. I. Charleston, S. C. Stahiman Bidg., Nasb- ville, Tenn. 1005 Barnett St., Sa Antonio, Tex. 311 City & County Bld, Salt Lake City, Utah Bellingham, Wash. Everett, Wash. 843 Central Bidg., Seattle, Wash. Administration Bldz., Spokane, Wash. Central School Sixth Floor), Tacoma, Wash Parkersburg, W. Va Wheeling, W. Va. School Administration Bidg., 10th & Praire St., Milwaukee, Wis [86] forni 40p. A br Mobile, Colo. ak — Colo, 0. be High Schoo, m, Conn, High Schoo, Ave. & Mop. Wilmingtm, a. St., Chicag, | Ave., Peoriy| St., Peoris St., Tem Towa. 5. y. ‘inridge § Ky. . City Hal, ss. ay, Detroit, Selected References on Teacher Retirement Systems As a result of the work of the Committee the Problem of Retirement Allowances ere is available in the Research Division of e National Education Association current d comprehensive information concerning the rogress of the teacher retirement movement. ommittees charged with investigations in the eld of teacher retirement may obtain assist- ce in their work by communicating with the \ssociation. Below are listed some of the best references or the use of those studying teacher retire- ent allowance problems. This list was as- mbled in co6peration with the secretaries of tate and local teacher boards. eferences to other publications in this field, ued subsequent to the publication of this be obtained by addressing the retirement ALIFORNIA STATE Boarp oF EpucaTion. Report of the Public School Teachers’ Retirement Salary Fund Board for Ten Years. Sacramento, Cali- fornia, California State Printing Office, 1924. 40p. A brief history of the development of the Cali- prnia public school teachers’ retirement salary nd. ARNEGIE FOUNDATION FOR THE ADVANCEMENT OF Teacuinc. 522 Fifth Avenue, New York City. Furst, Ciype, AND KanopeL, I. L. Pensions for Public School Teachers, Bulletin 12, 1918. This report was prepared for the Committee on alaries, Pensions and Tenure of the National ducation Association, Joseph Swain, Chairman. Discusses the social philosophy of pensions, and ates the fundamental principles of pensions. A imple outline of a “model” pension law is in- luded, drawn up with the special needs of Ver- njont in mind, accompanied by actuary tables, ibliography, and index. FIFTEENTH ANNUAL ReEporT, 1920, pp. 89 and 100. Contains critical review of Studensky’s Teachers’ Pension System in the United States, referred to low. Reviews pension legislation in the follow- ng States and cities: California, Connecticut, In- i Iowa, Michigan, Nevada, New Jersey, ashington, Wisconsin, Chicago, Minneapolis, ew York State and New York City. —SIXTEENTH ANNUAL REPORT OF THE PRESIDENT 1921. Reviews and proposed actuarial valuations amendments to representative state teacher retire- The discusses the position of the actuary in ment laws. section on “actuaries and pen- sions” the development of pension plans. —SEVENTEENTH ANNUAL REPORT OF THE PRESIDENT, 1922. Includes in addition to a discussion of pension and retirement several and cities five pages of and answers “For the guidance of teacher associations and committees that desire to play an intelligent part in the forming of pension systems.” systems legislation in States questions —EIGHTEENTH ANNUAL REPORT OF THE PRESIDENT, 1923. The latest developments in teachers’ pensions are enumerated as well as a discussion of amendments to pension laws in the States of California, Kan- sas, Maine, Minnesota, and Washington, and in the cities of Minneapolis and St. Paul. Hoop, WILLIAM R. Review of Education Legisla- 1912-20. U. S. Bureau of Education, Bul- letin 1922, No. 13. On page 13 is a very progress of teachers’ pension legislation during the year 1919-20. Concludes that sion laws are, in general, toward a larger par- ticipation of public funds in the support of the system, clearer definition of terms, and financial soundness through the application of scientific actuarial data and more businesslike administra- tion, and states that: “At the close of the year 1920 a survey of the country as a whole discovers few States that have made no beginning with the re- tirement of superannuated or disabled teachers.” 110n, brief review of the tendencies in pen- t1OUSMAN, IDA E. A Teacher's Version of the Pierson Law. 519 Garden Street, Hoboken, New Jersey. A simplified version of the New Jersey Teacher Retirement Fund Law arranged so that its pro- visions may be easily understood by laymen. NATIONAL EDUCATION ASSOCIATION. 1201 Sixteenth Street, Washington, D. C.—Ryan, W. Carson, and KING, Roperta, State Pension Systems for Public School Teachers. U. S. Bureau of Edu- cation, Bulletin 1916, No. 14, p. 46. Prepared for Committee on Teachers’ Salaries, Pensions and Tenure of the National Education Association, Joseph Swain, Chairman. Introductory statement followed by tabulation giving provisions of State pension funds as they existed in 1915. Selected bibliography and typical retirement laws. [87] ‘ hi ; | 4 } 4 ‘ ae —Swain, Josep. Report of Committee on Pen- sions. Volume of Addresses and Proceedings of N. E. A. 1918. p. 757-761. A brief history of the movement for teachers’ pensions in the United States, together with an analysis of some of the difficulties that have arisen in regard to the various pension systems. The re- port concludes with a statement as to how these difficulties may be avoided and corrected. —Swain, JosepH. Report of the Committee on Salaries, Tenure and Pensions. Volume of Ad- dresses and Proceedings of N. E. A. 1919. p. 537-538. A brief statement of progress. Concludes with statement that salaries alone will not keep people in the teaching profession. “The only solution is a system of pensions that will provide generously for the teacher, will be fair to *he public, and will promote the efficiency of the schol.” —Carr, Joun W. Preliminary Report of Com- mittee on Pensions. Volume of Addresses and Proceedings of N. E. A. 1921. p. 155-157. A statement of general principles believed to be fundamental to any sound pension system and a report of progress. —Carison, Puip E. Report of the Subcommittee on Pensions. Volume of Addresses and Pro- ceedings of N. E. A. 1922. p. 287-289. Suggestions as to how satisfactory teachers’ re- tirement systems may be secured. —CAarison, Poiuie E. Report of Committee on Pensions. Volume of Addresses and Proceedings of N. E. A. 1923. p. 376-390. Statement of difficulties in way of progress in the several States, and ideals relative to retire- ment allowances which the National Education Association should seek to further. —RESEARCH BULLETIN OF THE N. E. A. Facts on State Educational Needs. Volume 1, No. 1, Jan- uary, 1923. p. 58-61. Discussion of public school efficiency and teacher retirement systems. Lists State and local retire- ment laws in the United States; presents a tabular several representative ret furnishes a _ selected an analysis of systems; and bibliography. New York TEACHERS’ PENSION SURVEY Committ: Report of Effects on City’s and Teach, Liabilities under New York Teachers’ Reti; System. New York City Teachers, 1924 Shows effects on City’s and Teachers’ Lia under New York Teachers’ Retirement Sys (1) substitution of “5-Year Average” Sala “10-Year Average” Salary as a basis amount of retirement allowance; and (2 tion of retirement after “30 Years’ Servic retirement after “35 Years’ Service” in law. Eighteen pages of carefully prepared t: show just what such changes in the present would mean for every teacher in the New City system. STUDENSKY, PAUL. The Pension Problem and } Philosophy of Contributions. New York, The Pension Publishing Co., 1917. 20p. Points out the different objects sought establishment of a retirement system and devotes , chapter to a discussion of the wholly-contributo system, the non-contributory system, and the part contributory system. The final chapter includes the conclusions of the writer with regard to the three types of system. —, —. TEACHERS’ PENSION SYSTEMS IN THE Unitep States. New York, D. Appleton & ( £920. 460p. A comprehensive study and discussion of the theories back of retirement funds; traces the his- tory of the development of retirement funds in de- tail in States and cities. Contains suggestions and information as to method of procedure for the adoption of pension fund laws. Summary of State and city laws. Bibliography. SUPREME CourT, STATE OF WISCONSIN. Supreme Court Decision in Teachers’ Retirement Fund Case. Wisconsin Teachers’ Association, 61! Beaver Building, Madison, 1923. 13p. Decision written by Justice Owen, together with discussion as to constitutionality of Wiscons Teacher Retirement Law. TEACHERS’ PENSIONS ‘THER ARE many reasons for teachers’ pensions. organization is not effective unless there is a satisfactory method of retiring aged or infirm workers, with the consequent freedom from anxiety concerning such risks on the part of the workers. Only a satisfactory pension system can prevent either the dis- missal of aged or infirm teachers without resources, or the sacrifice of the best interests of the schools in order to continue the employment of teachers who are no longer capable. Socially, men and women of character and intelligence are willing to undertake difficult public service that is poorly paid; but it is too much to expect them also to sacrifice the prospect of security and dignity in old age and disability. Educationally, there is a great need to attract, retain, and advance able people in teaching as a perma- nent career. A good pension system helps to do this.— Joseph Swain. Preeedings, N. E. A., 1918, p. 758. Economically the work of an Addresses and [88] retir Ment ann tated OM MITTEE Teacher; etiremen 4. 31p Liabilities System of alary for for the substity. Vice” for | Present ed tables sent law ew York and the irk, The evotes a ributory > partly- udes the he three IN THE ) & Co, of the the his- 3 in de- ns and for the »f State upreme Fund n, 61! ir with sconsin The Text of a State Teacher Retirement Law b | = A number of States have adopted retirement op. Sepeene S.ws that embody most of the sound principles Sasent mes § retirement legislation. A comparison of 7 eer a eel he features of a number of such laws is made te teachers’ retirement yossible by the tabulation inserted at p. 83. me apna —" Following is given the text of the New ‘ork state law in practically complete form. ploye This ty, Ge villages, 9 nclusion makes easily available to legislative s pai Jmissions are indicated thus: ommittees the text of at least one carefully oo rafted retirement law. ; NEW YORK STATE TEACHERS’ RETIREMENT FUND FOR PUBLIC SCHOOL TEACHERS ection 1100. Definitions. e of New Y« 1101. Establishment of retirement system gece ph paren tgp ecagsn 1102. Membership of system. ayy “at « iad 1103. Retirement board; members; terms ed board of educatior o1 of office. 1 of trustees of the , 1104. Election of elected*members of trict thereof, provided board. oe bey - “ co = : 1105. Vacancies in board; meetings; 1 “teacher.” shall also it i oaths of office; quorum; expenses. the state educat e 1106. Officers of board; custody of funds. h empl ' 1107. Investment of funds; interest; ac- ' — Pe phere , . . , counts; reports. of duties pertaining t t In 1108. Statements of teachers’ service; de cases of doubt, tl t t ne termination of service creditable; ae oe et 2 service certificates. a he ee ee <« 1109. Superannuation retirement. red aul twenty-one. vv e re 1109-a. Disability retirement. rement system created by t s be ous 1109-b. Withdrawal and death benefits. I 1109-c. Optional allowances. ae _ riage 1109-d. Benefits to participants in old re- Se EE a doe tirement fund. ) was a mem) 1109-e. Funds enumerated. r before the f é' 1109-f. Annuity savings fund; contribu- as wormed se aye anit weak tions and payments. peaslam oveti : 1109-g. Annuity reserve fund; pension ac- ment system crea cumulation fund. ) “New ent oi 1109-h. Pension reserve fund. ee the . 1109-i. Expense fund. ») “Contribut i] ( 1109-j. Duties of employer. ement sy » has at 1109-k. Collection of contributions. ngs fund a6 ivr . by : 1109-1. Discontinuance of local district pen- - , ae Pag Sages 3 > os sion systems. this article. 1109-m. Transfer of contributions between “Regular interest” retirement systems. ; “+ “Aes ca = oe ‘ inal 1109-n. State supervision. the amounts deducted f ation of 1109-0. Exemption from taxation. winery ro ee ee oth 1109-p. Protection against fraud. University of the St : 3 This law became effective August 1, 1921. See Hducatic INo. 759, June, 1922, pp. 292-315, Albany, N. Y. [89] “Final compensation five years of service immediately preceding his date of retirement. average salary” shall mean the earnable as a (11) annual average teacher during the ‘ (12) “Annuity” shall mean the annual payments for life derived from contributions made by contributor as provided in this article. All annuities shall be paid in equal monthly installments. (13) “Pension” shall mean the annual payments for life derived from payments made by an employer as provided in this article. All pensions shall be paid in equal monthly installments. (14) “Retirement allowance” plus the annuity. (15) “Annuity reserve” shall mean the present value of all payments to be made on account of any annuity, or benefit in lieu of any annuity, computed upon the basis of such mortality tables as shall be adopted by the retirement board with regular interest. (16) “Pension reserve” shall mean the present value of all payments to be made on account of any pension, or benefit in lieu of any pension, computed upon the basis of such mortality tabies as shall be adopted by the retirement board with regular interest. (17) “Retirement fund” shall mean the state teachers’ retirement fund for pu lic school teachers of the state of New York as created by chapter one hundred and forty of the laws of nineteen hundred and ten, chapter four hundred and forty-nine of the laws of nineteen hun- dred and eleven, chapter forty-four of the laws of nine- teen hundred and fourteen and chapter one hundred and shall mean the pension three of the laws of nineteen hundred and nineteen. (18) “Lecal district pension system’ shall mean any teachers’ retirement system or other arrangement for the payment of pensions or amnuities to teachers ex- clusive of the retirement fund, created im any city or school district of this state prior to the first day of August, nineteen hundred and twenty-one. § r101. Establishment of retirement system. (1) The retirement system shall be established on the first day of August, nineteen hundred and twenty-one, and shall be known as the “New York state teachers’ retirement system.” (2) The retirement system so created shall have the powers and privileges of a corporation, and under its corporate name all of its business shall be transacted. § 1102. Membership of system. (1) The membership of the retirement system shall consist of the following: (a) All teachers who were teachers on or before the first day of August, nineteen hundred and twenty-one, who shall file with the retirement board applications for membership, except those specifically excluded under subdivision four of this section. (b) All teachers who were not teachers on or before the first day of August, nineteen hundred and twenty- one, except those specifically excluded under subdivision four of this section. (2) The retirement board may, in its discretion, deny the right to become members to any class of teachers whose compensation is only partly paid by the employer or who are serving on a temporary or any other than a per annum basis, and it may also, in its discretion, make optional with members in any such class their individual entrance into membership. (3) The membership of any person in the retirement system shall cease if he shall be continuously a sent without pay for a period of more than two years, or if in any five-year period after he last became a member, he shall render less than two years of service as a teacher, or upon the withdrawal by a contributor of his accumulated deductions as provided in this article or upon retirement on a pension, or at death. (4) Teachers who are members or who become mem- bers of a locai district pension system maintained under the laws of the state from appropriations or con- tributions made wholly or partly by an employer shall be excluded from membership in this retirement system. 1 To save space the wording of the law has been shortened. inclosing them in parentheses. [90] But should more than two-thirds of participating in such local district pension system apply for membership in the retirement syst created ; article by a petition duly signed and . 2 l by their employers and filed with the tirement board all the \eachers included in the me ership of su local district pension system shall become members the retirement system created by this ticle at suc time within three months after the filing suc tition as the retirement board shall designate The the local district pension system of which they were members shall be dissolved and discontinued as vided in section eleven hundred and nine-l of this article. § 1103. Retirement board; members; terms of office. (1) The general administration and responsibility f the proper operation of the retirement syster and for making effective the provisions of this article i ereby vested in a retirement board which all be organized immediately after the appointment of its members. The retirement board shall from time to time estalish rules and regulations for the administratio: transaction of its business and for the control of the funds created herein, (etc.)! : (2) The retirement board shall consist of seven me bers as follows: (a) One member, who is not an employes f the state, who shall be an executive officer of unk authorized to do business in this state, elected by the board of regents of the university of the state of New Follo term It se York to serve for a term of three years wing the completion of the initial term, the stated ice of such member shall be three yea: (b) Two administrative officers of the New York state school system, appointed by the commissioner of education, one to serve for two years and one to serve for three years. Members of the retirement fund board (are eligible unde (c) The comptroller of the state of New member appointed by him who shall ! successor is appointed (d) Three members elected from among present f f of the retirement system, one to serve for one yea yne for two years, one for three years. Following the com pletion of the initial terms, the stated terms of service of such members shall be three years § 1ro4. Election of elected members of board. An annual convention of the members of the retirement system shall be held for the purpose of elect- ing members of the board of retirement of the retire- ment system. Said convention shall be composed of delegates selected as hereinafter provided for each terri- tory constituting the jurisdiction of a district tendent, of a village or city superintendent, which tory shall constitute a territorial unit of in the assembly of delegates. Said convention shall be superin- terri representation called to order by a member of the retirement board designated by said board, and shall organize by the election of a chairman and a secretary. Each territorial unit shall be entitled to be represented in such con- vention by one delegate for each two hundred members of the retirement system in said unit and one delegate for any fraction over one hundred; provided, that eac! unit shall be entitled to at least one delegate Said delegate shall be. elected by a vote of a majority of the members of the retirement system voting at a held for the purpose of electing such delegates. _ Said meeting shall organize by the election of a chair- man and secretary. Said secretary shall, within days after said meeting, forward to the board of the retirement system a certificate containing the mames and addresses of the delegates elected to the annual convention, and shall furnish the delegates elected with a certificate of their election. In a vacancy in the delegation from any unit, the remain ing delegates from such unit may fill such vacancy... § 1105. Vacancies in board; meetings; oaths of office; quorum; €xpenses. (1) A vacancy occurring during meeting five retirement case of Such departures from the actual text are indicated by he term of an appointed member shal the unexpired term by the appointment in the same manner as s predecessor. occurrin during a term mn tne case of an ber shall be filled, until the next annual delegates, by the commissioner of educati be filled for the unexpired term by the next annual convention in addition t election. (2) Until the election of three membe to serve on the board (the other men powered to perform the ities of the re Such me vers shall ¢ ap] nted withi: this article takes effect (3) The board shall meet annually meetings ° : ‘ at (4) Each member of the retirement | take the constitutional oat office (5) A majority of the members of the r shall constitute a juorun (6) he members of the retirement boa with compensation, but they shall be the expense fund for all actual necessary « any loss of salary o ut they may the retirement board § 1106. Officers of board; custody of ft board shall elect f it president and vice- ide and shall |} empl y a secretary ant secure the Sé technical and administrat employees sary for the transactio1 the business ment system. The comp ation of all px by the retirement board 1 all other « board necessary for the oper operati ment system shall be pak at such amounts as the retirement board sha (2) The counsel of th state educati shall be the legal adviser of the retire (3) The treasurer of the state of New custodian of the funds of the retiremer bursemer from the funds of the retireme be made by the treasurer only upon a the retirement board by resolution d the board by a of meeting (4) The trez additional lajority ol te hall sta snail and ‘ (5) furnish annua ol the ihe treasurer sha tirement board a sworn statement funds in his custody belonging to the reti § 1107. Investment of funds; interest; ac« ports. (1) The members of the retiremer be the trustees of the several funds <« article, and shall d mine from time part of the moneys belonging to the reti shall be invested. When such board shall upon the investment of any moneys version or sale of any securities, it shal duly adopted by a majority vote of the n board, direct the tre ire to so invest t convert or sell the securities Invest made only in securities in which the truste« ings bank may invest the moneys deposit provided by section one hundred and f banking law. It shall be the duty of tl collect the interest thereon as the same b and payable and also the principal ther the same when so collected to the credit of ment system. (2) The retirement board shall annually a lar interest on the mean amount for the prece: in each of the funds created by this article, the expense fund. The amount so allows payable to said funds and shall be anm thereto by the retirement board. All is upon the entire amount of the funds bel retirement system shall be used for this ; the amount so earned is in excess of the re in which case the excess amount shall be « 1 See note 90 1, p gi r cx in de leg ecess 1 cal en te t the é board serve pa ‘ € gaged et t i tment i | be Dis T S a ted a € é < € te ints re- 1 shall by this ne what system termine 1 con- esoiution eys or 1 be it a Sa ‘ e1 as x OF the is to es due ace e retire w regu- ing year excepting shall be credited t earned g to the e, unless to ements, the [91] ension 1ccumu f leficiency in the é ed es eguirements of the funds, exclusive the pension accumulation fund, shall be paid f t ensio accumulation fund. kKxcept as lerelt t vided « member nor em- ployee of the retirem« have any interest direct or indirect 1 the e ofits of any invest- ment made by the ; lirectly or in- directly receive any me t for his services. And no member n ‘ d board directly indirectly, fo ' f s gent or partner of thers ior a cort t w in fficer, stock- olde mem be ts funds or de- posits l any except to make such current a : . are authorized by the board; nor ployee of said board become become in any manne ar ry or borrowed f the " (4) The ret é e for mainte ’ e of t member show- ing the : itions and the nt st rar 1 collect and kee] n convent ‘ i hall be neces- " the nortality and S¢ ‘ table f such other inf at e actuarial valua- ti f the ass the various funds created |} this of the mortality and servic ex pe ind beneficiaries of ¢ sten t ‘ m time to time sha pt the t iluation purposes ands lete nnuities to be allowed on the is f the tions of members. { At such t t board may deem t necessary and t t the first three ears the f ‘ ind each quin- quennial period the fte ement board shall have epared familiar with etire ent syste ‘ ymplete valua- tic of the pres« ‘ and liabilities of the various fu te ticle with the ex- ceptior f the iary shall make } estigat rvice experience f the men t ‘ and shall re- t fully upon it tior recommendations us he shall d le formation of the etirement | m of the retire- nent systen (6) The re é board shall be ‘ te ublic The et sh annually a eport § 1108. Statements of teachers’ service; determination of service creditable ser e certificates. (1) Under such rules and ¢ t tire nt board shall adopt, eacl t letailed statement of all se ‘ t ’ e in a similar ca- pacity in other stat le rior to the first day of August tec d twenty-one, for which he claims edit ther facts as the retirement board proper operation of the retiremé (2) Each n letailed statement of service as a tea i 1 a similar capacity in other states ‘ to so becoming a member tog ‘ is to the number of years « r it of ires to contribute and as to suc t acts ement board may require f the ‘ ystem. (3) The retiremse ind determine by appropriate iles a eg w much service in any year is the equivalent f service, but in computing sucl ‘ fut ng average com- pensation, it shall cre 1 of more than a month’s duratio1 ng v ember was absent without pay, 1 . e t C ear of service be credited for a © i a vea Ca) said board shall verify as soon as prac- ticable the statement of service submitted. (s) Upon verification of the statement of service submitted, the retirement board shall issue to the mem- ber a prior service certificate certifying to the aggregate length of such prior service as a teacher and to the aggregate length of such service in a similar capacity outside of the state. In such prior service certificate, a present teacher shall be credited up the nearest num- ber of years and months with all service as a teacher prior to August first, nineteen hundred and twenty-one, and with all service not exceeding ten years in a similar capacity in other states. In such prior service certifi- cate, a new entrant shall be credited in full up to the nearest number of years and months with all service as a teacher not exceeding ten years, rendered before be- coming a member and with such service in a similar capacity outside of New York state for which he desires to contribute provided the amount of such _ service credited together with the service credited him as a teacher shall not exceed ten years. (6) So long as membership continues, a prior serv- ice certificate shall be final and conclusive for retire- ment purposes as to such service unless thereafter modified by the retirement board upon application made by the member within one year after the date of issuance or modification of a prior service certificate or upon the discovery .\by the retirement board of an error or fraud. When membership ceases, such certificate shall be void. Should membership be resumed by the teacher, such teacher shall enter the system as a new entrant, except as provided by subdivision five of sec- tion eleven hundred and nine-a of this article. (7) At retirement, the total state service credited a member shall consist of the service as a teacher rendered by him since he last became a member, and, if he has a prior service certificate which is in full force and effect, the service as a teacher certified on such certifi- cate. The total service credited a member shall consist of the service rendered by him as a teacher since he last became a member and if he has a prior service cer- tificate which is in full force and effect for all service certified on such certificate. § 1109. Superannuation retirement. (1) Retirement upon a superannuation allowance shall be made under the following conditions: (a) A member who has completed twenty-five years of total state service and who has attained the age of sixty, or a member who has completed thirty-five years of total service may retire from service if he files with the retirement board a statement duly attested setting forth at what date subsequent to the execution and filing thereof he desires such retirement and if during the year immediately preceding the filing of such statement he shall have been a teacher. The retirement board shall retire said member as of the date so specified by the member or as of such other time within thirty days thereafter as the retirement board may find advisable. (b) Any member who has attained age seventy may be retired at his own request or at the request of his em- ployer if he or his employer files with the retirement board a statement duly attested setting forth at what time subsequent to the execution and filing thereof re- tirement is desired, and if during the year immediately preceding the filing of such statement he shall have been a teacher. The retirement board shall retire said member as of the date so specified or as of such other time within thirty days thereafter as the retirement board may find advisable. (2) Upon superannuation retirement a member shall receive a superannuation retirement allowance which shall consist of: (a) An annuity which shall be the actuarial equiva- lent of his accumulated contributions at the time of his retirement, and (b) A pension of one-quarter (%) of his final aver- . age salary or if his total service is less than twenty-five years, a pension of one one-hundredth (1/100) of his final average salary multiplied by the number of years of total service, and (c) If the member be a present teacher, a further 140) of pension of one one-hundred and fortieth (1 his final average salary multiplied by the number of years of total service certified on his prior service certificate, and (d) A further pension, of such required to bring the total retirement members with twenty-five or more years of state service up to four hundred dollars per annum. § 1109-a. Disability retirement. (1) account of disability shall be made under the conditions: A member who has completed at least fifteer years of total state service may be retired on account of disability either upon the application of his employe: or upon his own application or that of a person acting in his behalf, if during the year immediately preceding his application, he shall have been in the service of the state as a teacher and if the retirement board, after a medical examination of said member, made at the place of his residence within the state or other place mutually agreed upon, by a physician or physicians designated by said board shall determine upon the basis of a report submitted by said physician or physicians that the said member is physically or mentally incapacitated for the amount as shall be allowance of Retirement on following performance of duty and that said member ought to be retired. (2) On retirement for disability, a member shall re- ceive a superannuation retirement allowance if his state service is twenty-five or more years and he has attained age sixty or if his total service is thirty-five or more years; otherwise, he shall receive a disability retirement allowance which shall consist of: (a) An annuity which shall be the actuarial equiva- lent of his accumulated contributions at the time of his retirement; and (b) A pension of one-fifth (1/5) of his final average salary, with the exception that in no case shall the rate of such pension exceed four-fifths (4/5) of the rate of pension to which he might have been entitled had re- tirement been deferred until the age of seventy as pro- vided under paragraph b of subdivision one of section eleven hundred and nine; and (c) If he be a present teacher, a further pension of one one-hundred and fortieth (1/140) of his final aver- age salary multiplied by the number of years of total service certified on his prior service certificate. (3) Once each year during the first five years fol- lowing the retirement of the teacher on a disability allowance the retirement board may, and upon his appli- cation shall, require any disability beneficiary to undergo medical examination by a physician or physicians desig- mated by the retirement board, said examination to be made at the place of residence of said beneficiary or other place mutually agreed upon. Should any disability beneficiary refuse to submit to a medical examination, his retirement allowance shall be discontinued until his withdrawal of such refusal, and should such refusal con- tinue for one year, all his rights in and to his pension shall be forfeited. (4) Should the physician or physicians designated by the retirement board report and certify to the retirement board that such disability beneficiary is engaged in or is able to engage in a gainful occupation paying more than the difference between his retirement allowance and his final average salary, and should the retirement board concur in such report, then the amount of his pension shall be reduced to an amount which, when added to the amount earnable by him, together with his annuity shall equal the amount of his final average salary. Should his earning capacity be later changed, then the amount of his pension may be further altered; provided, that the new pension shall not exceed the amount of the pension originally granted nor an amount which when added to the amount earned by the bene- ficiary, together with his annuity equals the amount of his final average salary. A beneficiary restored to active service at a salary less than the final average salary or upon the basis of which he was retired shall not become a member of the retirement system while receiving a reduced pension. (s) Should a disability beneficiary be restored to active service at a salary as great as his final average salary, [92] Ss re al : r eco ‘ a ember t et ent Ss ese e s 1 be transferred f tu t i i gs tf his ind a] ! i part of t tributi the atte | and r to the Sa fund thereafte the same t the same ate [ to |} H pric S¢ ce 4 cate t ‘ ba I s vice wa c ed at the time of S € renewe i ig e 1 I addit upot subseque credited with all | service as é the peri d « death benefits Withdrawal an pon a I ‘ (a) A member who wit aws fror er to be a teacher f at ise othe tirement ill be paid or mand tributions st ne to the credit of count in the nnuity sa os f j (b) S 1 a contr lie bef accumul l ox ibuti e pa t to suc person as he s ive nor tte designat lulv executec f 1 w ent board § 1 Optional allowances. At etirement ar embe may elect t ‘ fits ir a retire ent 4 A ce pa ible t L he may ¢ etirer ct to rece equivalent at that time s retirement 1 lesser etirement all » e, payable with the vision that Opti If he die before he |] 1 ments the resent val | retire was at t t e ol! etirement t be paid ft Ss legal repres¢ t c t e sl inate V N ae 9 edged al ] filed wit ‘ ent Option 2. Upon his death, his retir« shall be itinued t gh the life of person as he shall nominate | writter icknowledged and filed with the ret me¢ 1 at the time of his retirement Option 3. Upon his deat one-half of tireme llowance shall be contir 1 throughout t f a paid to such person as he shall nominat« writter lesignation duly acknowledged and file t ment board at the tirne ft | retiremer Optior 4. Some the benefit or benef é either to the member < t ich pers as e shall nomir ovided such other be nefit togeth« with the less tirement a x : certified by tl ctua t be of equiv t alue to his ret 1ent v e and shal é the tirement board. § r1109-d. Benefits to participants in old retirement ants o1 I ‘ tine fund. Al retirement annuities oft annuit 7; I irst be day f teer pal hundred ar the pension accumulation fund created le The amount of the annu f any ar the rolls of such retirement fund, at such time etire on a full annuity shall be not less t ‘ his final erage salary, at not less t dollars per annum; nor shali t a ur annuitant on such roll ed fe bil t a proportionate amount of sucl annuitant years of service § 1109-e. Funds numerated. The fur eated are: (Those specified in § 1109-f to 1100 sive § 1100 Annuity savings fund; contributions and fund sha the fund payments. The annuity savings in which shall be imulated the deductior le m the compensation of contributors Contrib and payments from the annuity savings fund s made in the following mannet (1) Each employer shall deduct from t utior of each contributor on each and every { suck contributor for each and every payroll pe rent ecaine a P iT m of such t t ‘ employer ke es from the ympensat f eted at least ty-five ye attained the ig ty-hive years ot te t t to con bt ‘ (2) In dete e by a con tributor in a 1 nt board may the t ble to sucl me the is continu ng t ig t t i omit de etions , xl jess thar a full payroll 1 1 contributo , e first to facilitate ‘ iking the deduction equi int as shall t exe of the com pensat luction is to be 1 ‘ 3 Ir mpensation hereinbefore re redeposit in the ant t ent an amount equal to the ew therefrom is provider leposit therei: single pay ited to be suffi cient, together t vance otherwise pr ed, t rement allow ance oO! one we y ipon super annuatior t i nts so de posited sl ated contri butions ‘ rhe ; a contributo et 1 to paid to his estate 1e ‘ event of his leath as sid from the innuit s 2 | n the t r his accumu ate contrib < r m the annuity = 1 I I t 4 §r:109-g. Annuity reserve fut pension accumulation fund. (1 I f ill be the fund from whi ll benefits in lieu of ann é (2) The per i ull be the fund n which sha t for the pay- ment of all be t ‘ t f the annuities provided by the t t of members Contributions t ‘ { vension accumu member of (a) On a S the retirement iid annually be- ginning wit f ieteen hundred and twent ‘ lation fund by employe the earnable com ensatic of ¢ ot the retirement system to be 1 ntribution” and » furthe ‘ lehciency contri- bution.’ ‘ t ‘ ich contributions shall be fixe { ‘ ibilities of the re- tirement syste t : iluations. Until the first valuat t tribution shall be two nd six-tent ‘ é vers’ salaries and ‘ ficie and five-tenths r€ cer 1 ) On the ‘ terest and of such ortality and ot e adopted by the etirement boar tua gage y the retirement hoard to make ed | this article hes e the period ‘ eficiency contribution is payable, i i g uch valuation, shall ne t I tant percentage of! the « c erage new entrant, who is a cont t r t ted on the basis of the compens throughout his entire period of sé “\ be sufficient to provide at the time tire t the total amount of his pensior é I centum so de- termined shal ‘ al contribution” rate. After the deficiency contribution has ceased to be payable, the normal contribution shall be the rate per centum of the earnable salary of all contributors obtained by deducting from the total liabilities of the pension fund the amount of the funds in hand to the credit of that fund and dividing the remainder by one percentum of the present value of the prospective future salaries of all contributors as computed on the basis of the mortality and service tables adopted by the retire- ment board and on the basis of regular interest. The normal rate of contribution shall be determined by the actuary after each valuation and shall continue in force until a new valuation and certification. (c) Immediately succeeding the first valuation made subsequent to August first, nineteen hundred and twenty- two, the actuary engaged by the retirement board shall compute the rate per centum of the total compensation of all contributors during the preceding school year which is equivalent to four per centum of the amount of the total: pension liability on account of all contributors and beneficiaries not dischargeable by the aforesaid nor- mal contribution made on account of such contributors during the remainder of their active service. The con- tribution derived by deductions at the rate per centum, so determined or at a rate increased therefrom as here- inafter provided shall be known as the “deficiency con- tribution.” (d) The total amount payable annually by all em- ployers into the pension accumulation fund shall be certified by the retirement board to the commissioner of education and such amount shall equal the sum of the rates per centum known as the normal contribution rate and the deficiency contribution rate of the total com- pensation earnable by all contributors during the pre- ceding school year, provided that the amount of each annual deficiency contribution shall be at least three per centum greater than the preceding annual payment. The aggregate of all such payments by employers shall be sufficient, when combined with the amounts in the pension accumulation fund, to provide the pensions pay- able out of the fund during the year then current, and if not, the additional amount so required shall be col- lected by means of an increased contribution which shall continue in force for the period of one year, anything to the contrary notwithstanding. (e) The deficiency contribution shall be discontinued as soon as the accumulated reserve in the pension ac- cumulation fund shall equal the present value, as actu- arially computed and approved by the retirement board, of the total liability of such fund less the present value, computed on the basis of the normal contribution rate then in force, of the normal contributions to be received en account of teachers who are at that time contributors. (f) All pensions with the exception of those payale to new entrants shall be paid from the pension accumu- lation fund and benefits provided under section eleven hundred and nine-d shall be paid from the pension ac- cumulation fund. (g) All moneys and securities to the credit of the retirement fund on the first day of August, nineteen hundred and twenty-one, shall be paid by the state treasurer into the pension accumulation fund. (h) Upon the retirement of a new entrant, an amount equal to his pension reserve shall be transferred from the pension accumulation fund to the pension reserve fund. § 1109-h. Pension reserve fund. The pension reserve fund shall be the fund from which shall be paid the pensions to new entrants on account of which reserves shall be transferred from the pension accumulation fund. Should any disability pension payable from said fund be canceled, the pension reserve thereon shall there- upon be transferred from the pension reserve fund to the pension accumulation fund. Should the pension of a disability beneficiary be reduced as a result of an in- crease in his earning capacity, the t of the annual reduction in his pension shall be paid annually into the pension accumulation fund during the period of such reduction. § 1109-i. Expense fund. The expense fund shall be the fund from which the expense of the administration of the retirement system shall be paid exclusive of amounts payable as retirement allowances and as other benefits provided herein. Contributions shall be made to the expense fund as follows: (a) The retirement board shall determine annually the amount required to defray such expense in the ensuing fiscal year and shall certify such amount to the commissioner of education who shall apportion to each employer a proportionate part thereof as provided under subdivision (2) of section eleven hundred and nine-k. Each employer shall make payment for the amount so apportioned to him in the same way as he shall make other payments provided for by this article. (b) The sum of thirty thousand dollars is hereby ap- propriated from the moneys in the retirement fund for the expense of establishing, organizing and starting the operation of the retirement system and of establishing an office therefor. This sum shall be credited to the expense fund. § 1109-j. Duties of employer. (1) Each employer shall keep such records and from time to time shall furnish such information as the re- tirement board in the discharge of its duties may require. (2) Upon the employment of any teacher to whom this article may apply, he shall be informed by his em- ployer of his duties and obligations in connection with the retirement system as a condition of his employment. Every teacher accepting employment shall be deemed to consent and agree to any deductions from his compen sation required herein and to all other provisions of this article. (3) Notwithstanding any other law, rule or regu- lation affecting the salary, pay, compensation, other prerequisites or tenure of any teacher to whom this article applies, or shall apply, and notwithstanding that the minimum salary, pay, compensation or other pre- requisites, provided by law for such teacher shall be reduced thereby, payment less said deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for service rendered by such member during the period covered by such pay- ment. (4) During September of each year, . . . each em- ployer shall certify to the retirement board the names of all teachers to whom this act applies. (5) Each employer shall on the first day of cach calendar month notify the retirement board of the employment of new teachers, removals, withdrawals and changes in salary of members § 1109-k. Collection of contributions. (1) The collection of members’ contributions shall be as follows: (a) Each employer shall cause to be deducted on each and every payroll of a contributor for each and every payroll period subsequent to the first day of August, nineteen hundred and twenty-one, the contribu- tion payable by such contributor as provided in this article. Each employer shall certify to the treasurer of said employer on each and every payroll a statement as voucher for the amounts so deducted. (b) The treasurer of each employer on receipt from the employer of the voucher for deductions from the salaries of teachers as provided in this article shall transmit monthly or at such times as the retirement board shall designate the amount specified in such voucher to the secretary of the retirement board. The secretary of the retirement board after making record of all such receipts shall transmit them to the treasurer of the state of New York for use according to the pro- visions of this article. But nothing in this section shall prevent the retirement board from modifying the method of collecting the con- tribution of members so that employers may retain the amounts so deducted and have a corresponding amount deducted from the appropriation for the support of com- mon schools otherwise payable to them. (2) The collection of employers’ contributions shall be made as follows: (a) Upon the basis of each actuarial determination and appraisal provided herein, the retirement board shall annually prepare and certify to the commissioner [94] ‘te Le aan. ty ie cee” rte Miiicrasst ee ot tT ; ‘ t . , ‘ the f t 1t¢ Ss . fled wit . I . nan this t ‘ ‘ tair taxat ‘ eby a at nu Te ti T ire f ls ‘ f . C rye fro t of sul t t comr ! rn N ) Discontinuance of local Shou fa erge v the inane ‘ ivision f el tm articli 1 cal t scontinued . { I retire ent eated by en iI ct the : ‘ and abilities to . yy the t here eated ti ich nm g SO ¢ yed iall € ) l and j trict pe ion system) (2 e actuary sha te the the to liabilities to | assumed syster I account of t ers t € dist ension system and account the 1 f such local t t ension s also « ite the present value of the pré to be 1 ved by reaso1 f the paymer contri t ns | the er yer as pre graph of subdivisi two of sectior and nine-g of this t on behalf teachers of su loca t n the ¢ templated merg: F the preset total liability, the act ill deduct t of the normal contribut From t ing, the actuar shall ict the pre moneys and securities of such system, an if any, shall be known as the “accrued (3) The actuary shall then determi: a local deficiency contribution which, 1} without regard to the { roll of cont creasing by three per centum of itself the year in which the deficiency cont under paragraph (c) of bdivision tw hundred and nine-g of this article, employe rs who had no local district per be expected to be discontinued, shall value equal to this accrued liability (4 The increasing contributions as det ) ate ) Securitic ‘ total ha ic¢ int ‘ f the ‘ the pe or rya»le by t t¢ e paid f s of ten I Va le a* etirement tt t I oneyvs t ’ ter over ! the normal ‘ innmuirty ta to the ; ten on P t contributions t t nowever, : iall not be | ird the board y ment as may 1. Se Che amount so ‘ i part of the rr t etween retirement pension systems wing from the r ent tice to the etire coming within ‘ etirement sys st t ‘ i al basi eithex e la iws of another : es ; ter a pro ior g reciprocal ter transfe n 1¢ year his ac ( ted tirement system, 13. uN wy ‘ t isfe from the ’ u esponding fund of ot amount of his ont ‘ m res« withdrew his 1 fund, and the ’ retiren t ther retirement 1 syst ‘ ided credit for nt a 101 i] val ie to the ’ the teacher n the t the retirement j hye . itisf tem to which ‘ sa t fe ens I fer member may ‘ de sit the the umount of his ‘ accul ate i another re tirement syste t pension reserve t us credit >ee note I p. 90. ndet § 1109-n. State supervision ation of the re tirement syste e supervision ot t of the state le] ly s Py Exemptior fr taxation This section : exempts 1 t yvisions of this +31 article from t iny other process ed whatsoeve eve § rro09-p. Protect against fraud Any person who othe shall knowing tement, or shall + falsify or pe t ecord or records nanos of this ‘ 1 be guilty of a misdemear y the § I ediately ——— TT i a er a GES. OP sae cr iz ¥ oa iene Pg FRUT PTL > Re ICA AL I ee. iets se : a HE public and the teacher have a common interest in sound teacher-retirement legislation. The public is interested because such legislation promises greater efhciency in the classroom and protects children from teachers rendered incompe- tent by advanced age; the teacher is anxious for the elevating effect that a sound retirement system has upon the profession in general and for the benefits that such a system guarantees him as an individual. —Philip E. Carlson. ROVISION for retirement allowances frees teachers from the dread of dependence in old age or, in case of disability, the consequent worry, and permits them to give their undivided attention to their duties in peace and contentment and thus to do more and better work. ‘The schools, the children, and society will all gain by rendering the teacher secure against the risks of life. —David B. Johnson. Ma ia, ia, ia. Mia? ia! Ma a? > ‘ ay! ee)