OCT 4 926 GSSGSSSESEGSGG66OO06060066068 Gane VOL. IV, po a MAY, ro get Research Bulletin OF THE National Education Association 1926 SGBSSSSGGGEGaas Efficient Teaching AND Retirement Legislation ouoenoncs suaDEDEEEESS HOOGOHOHOOoooHSoHoHos SKS} 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 provided for in Section 1103, Act of October 3, 1917, authorized February 10, 1923. Se ee Seer te te Research Bulletin of the National Education Association Published five times each year in January, March, May, September, and Novembe 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 Associatio; entitles one to receive the Research Bulletin, the Annual Volume of Addresses and Proceedings, and certain other publications of the National Education Association fo; 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 copies may h« purchased for 25 cents. Those entitled to receive the Research Bulletin regularly ar¢ 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., unde: Act of August 24, 1912. Acceptance for mailing at special rate of postage provided for in Secti 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 N. W., Washington, D. ( Research Bulletins Issued to Date See page 161 for titles of Research Bulletins issued to date and for information as to their availability. How to Secure Additional Copies Additional copies of this issue of the Research Bulletin may be obtained at the following prices: Single copies of this issue 25c 2 to 9 copies—10% reduction 10 or more copies—25% reduction. Subscriptions to Research Bulletins The Research Bulletin may be received regularly through a special subscription at $1.00 per year. Only those holding the $5.00 membership (see statement at top of this page) receive the Research Bulletin without such subscription. Many of the early issues of the Research Bulletin are already out of print. The special subscription at $1.00 per year offers an opportunity to maintain a complete file of future Research Bulletins. Reproduction of Material in Research Bulletins reproduced for the advancement of education. No authority other than this notice is needed previous to such reproduction. Electro-mat-slide service: The National Education Association maintains a special | service to aid these reproducing material appearing in its publications. Send orders or | requests for further information to the Division of Publications, National Education Association, 1201 Sixteenth Street N. W., Washington, D. C. | Tables, charts, and any other material appearing in Research Bulletins may be | [92] ED RE Me ONY 5 oma ind for he ire Te Og Amacom —-: “The Profession at Work on Its Problems” Forty state legislatures will meet during 1927. The “Roll Call by States as to Plans Affecting Teacher Retirement Legislation” in this Bulletin indicates teacher retirement measures will be considereed in a majority of these legislative sessions. Now is the time for teachers to inform themselves on this subject. Teacher retire ment legislation is of such importance that it may well be the topic for several meet ings of teacher study groups. Superintendents, principals, committee chairmen, and other leaders of professional study groups will wish to secure several copies of this Bulletin as well as some of the material cited in the bibliography. By writing to the Headquarters of the National Education Association they may obtain special outlines that have been prepared for leaders of groups studying problems affecting teacher retirement systems. The National Education Association is glad to make available this Bulletin as an aid to those cooperating in the nation wide movement for “getting the entire profession at work on its problems.”’ [93] he a et ne a ne BL LE A Me PS mae TABLE OF CONTENTS I a ne ee eee ae ee, Oe a en eee ee ee Pere re A Critical Review of the Fundamental Principles of a Retirement System................. Why Every State Should Enact a Sound Teacher Retirement Law.......................... The Teacher’s Interest in Retirement Legislation... ...........ccc ccc ccc cec ccc cscceecesecs Income and Outgo for Representative State Teacher Retirement Systems.................... Controversial Issues in the Field of Retirement Legislation ...................06..00 eee eee The Text of a State Teacher Retirement Law with Comments and Explanations.............. Selected Annotated Bibliography.....................0cecceees 2 NOS. oo Ae LIST OF TABLES Expression of Opinion of Four Groups of Educators: In a Teacher Retirement System Should Beginners Be Exempt? (Table 1)................ In a Teacher Retirement System Should Deposits Be Returned in Case of Early Retirement OR oot Ah Ae ak lo ake ah A Reena WEIR H6064.).0.0. 00a conse ses _ In a Teacher Retirement System Should There Be Guaranties to Both Teachers and Public Sere e ee Caeser ca dkads ERMG RY EMEA OMAP CERSS Ros eccauieouses- In a Teacher Retirement System Should Death Benefits Be Included? (Table 5).......... 105 In a Teacher Retirement System Should Individual Accounts Be Kept? (Table 6)........ In a Teacher Retirement System Should the Rights Under Previous Annuity Systems Be Safe- es OO is 5 dicho 4 Ra RWED ATO Sa ae SPEDE WS VAS 0s. ac bercaseesese In a Teacher Retirement System Should Credit Be Given for Past Service Where No Retirement I. sc, v0 «5.0 cae Reae eae Mada wa de swud ee bees Uieewerescss 108 In a Teacher Retirement System Should Costs Be Shared by Teachers and Public? (Table 10). 11! In a Teacher Retirement System Should Service and Deposits Be Concurrent? (Table 11).... 112 In a Teacher Retirement System Should the Amount of Deposits Be Fixed? (Table 12)..... 112 How a Teacher's Retirement Fund Is Built Up—and the Retirement Allowance It Guarantees EE ee ee a eee ee) a a 8 1] Income and Outgo of Representative State Teacher Retirement Funds—Fiscal Year Ending in 1923 SE tae aM oe a Cv cree ny S tlccn dinky 4 oe Riles oo care tice boas a Me oh i's cane weveccecs 145 Income and Outgo of Representative State Teacher Retirement Funds—Fiscal Year Ending in 1924 SE Sie khk5 ss Sema ante obs oc vcad ob aa Ae ub Was aA bel Oto b4s0ecsecveseececses- 145 Income and Outgo of Representative State Teacher Retirement Funds—Fiscal Year Ending in 192: ee EE Sa Go snus oh AEE «400d UREA GAR RI Ene uaee Dulok ois pedes ooreecdecss: 145 LIST OF CHARTS Percent of People Questioned Who Accepted Each of the “Fundamental Principles of a Teacher’: Ss ST I ek, 5 Swa cee sc WME ARR RMNCiimck weeds ceccccccccbcenceces State and Local Teacher Retirement Laws (Chart II) ............. 6.6.60 ccc cece cece eens esi. [94] n a Teacher Retirement System Should Disability Be Provided For? (Table 3)........... 102 eee eee ee ee ee oe nent; iblic Safe- ment htees 1923 1924 1925 145 FOREWORD By J. W. Crabtree Thirty-five years ago last February the Department of Superintendence of the National Education Association adopted the following resolution: Justice as well as the best public service requires the retirement and pensioning of teachers after a service of thirty years, and upon carefully devised conditions. We recommend the enact- ment of laws in the several states to permit and to regulate the retirement and pensioning of professional teachers. The bibliography included in this Bulletin shows that this resolution, which is the first record of concerted action on the part of the profession in the direction of sound retirement legislation, has been followed by a series of notable studies in this field spon- sored by the National Education Association. The 1926 Report of the Committee of One Hundred on Retirement Allowances, of which Miss FE. Ruth Pyrtle is chairman, is probably the best of a long series of outstanding reports prepared by committees ap- pointed by the Association to study this problem. The 1926 Committee, aided by the Division of Research, enlisted the cooperation of workers in this field scattered through- out the nation. More than one hundred people contributed to the preparation of this report. This issue of the Research Bulletin makes the results of this work available for general distribution. It is highly important for the state association to assume leadership in the move- ment for retirement legislation and for all outside agencies to render assistance only as invited by the state association. The state association will derive its inspiration from groups of teachers in every locality studying the problem. It will get from these groups help to secure adequate legislation. It will call for outside expert service as nec- essary. The material in the report is of outstanding value. It brings together in con- venient and condensed form the data most needed by those studying the problem of teacher retirement. It offers ready reference to other authoritative material for those who wish to study particular phases of the subject in greater detail. It should be of great value to professional study groups, to committees charged with the drafting of retirement systems, and to students of education. The entire profession is under deep obligation to the Committee and to the Division of Research for their work in preparing this study. The Association is glad to make this important study available at a time just pre- ceding the assembling of forty state legislatures. Few subjects of educational legisla- tion so directly influence the quality of teaching personnel which a state will command as that dealing with teacher retirement. The enactment of a sound teacher retirement law is an important step in the direction of providing a state’s children with efficient teachers. Those states that already have such systems are to be congratulated. They should be continued and improved. ‘Those states that have not enacted sound teacher retirement laws should do so at the first opportunity. [95] a ae ot zee Fa eect on Fae . ae an A Critical Review of the Fundamental Principles of a Teachers’ Retirement System 1924 Report of the Committee of One tal of the National Education Associa- Problem of Retirement Allow- in detail of teachers’ eleven on the es stated and explained n fundamental principles system. The 1924 report, in brief, are as some eles a etirement principles izgested by the Lows: Beginners to be exempt. 2. Deposits returned in case of early retire- ment. Disability provided for. Guaranties to both teachers and public assured. Death benefits included. Individual accounts kept. Rights under safeguarded. Credit for past service allowed. Costs shared by both teachers and public. Service and deposits concurrent. Amount of deposits fixed. previous annuity systems Since the publication of the 1924 Report hese principles have been widely circulated ind intensively studied. ‘This study assembles i comprehensive criticism of these principles +} yased upon replies to a questionnaire sent out in the spring of 1924. An inquiry blank with space provided for criticism of each of the eleven principles was sent to these four groups: Members of the Committee of One Hundred of the National Education Association on Retirement Allowances. Secretaries of state and local teacher retirement systems. Secretaries of state teachers’ 4. Members of the National Education Association’s Committee on Homes for Retired Teachers and others especially interested in the problem of retirement. ‘ er a associations. 1 of the subsequent tabulations divide those tion Committee of one Hundred on Retirement All retaries of state teachers’ assoc iations; ed Teachers and others especially interested in the pr e than one of these groups, they were classified in the first gr bove. hat is, a reply from a member of the Committee *tirement system, was included in the first Ips s III and IV as shown in Tables 1 to 11. of the Committee of One Hundred and their ha : lowar Se [9 / and (4) Members of the oblen — and inn ror example, 1 replies, theref rep! y ing int The addressed to tive to each of the eleven principles suggested the 1924 Report: blank these pe | rson inquiry requested each ] answer! two questions rela by Yes Do you accept this principle? No— - ) 2. If you have suggestions or modifications to offer concerning this principle will you kindly A total inguiry.' the appeared in the state them? of 109 replies were received to this The succeeding paragraphs reprint fundamental principles they 1924 Report. the statement of each principle is a table show- as eleven Accompanying ing the number of those replying who approved Chart | shows 109 replying who or disapproved each principle. the of the cepted each of the percentage ac fundamental ot summarization eleven the also prin each ot ex ciples. Following statement principle there is a both by unfavorable The presented in this section should receive furthe: opinion favorable and pressed those replying. material associations On the should be the study and criticism from teachers’ and laymen throughout the country. basis of this study and criticism it to at worth of the eleven principles set forth. possible arrive a conclusion as to The inclusion in this report of statements of approval or disapproval of the eleven funda mental principles, as well as additional topics a state ot mean which some feel should be included in ment of the teachers’ retirement fundamental principles a system, does not that these modifications are officially approved. These modifications are presented in orde that an expression of all viewpoints may be available. In it probable that it will be desirable and the stated in the 1924 Report and reprinted here. some subsequent study is to modify possibly extend eleven principles these fo bers of tl ») Sec Nati i retireme nt if gr e Nation: retari€ r teacher tf mittee i tiren Associati nic na yup for which the of One Bestel, e Ronen act nde tort sec aries of state pyre, were tabulated 11 J I. Beginners To Be Exempt During the beginning years while young teachers have not permanently allied them- selves with the profession, participation in the annuity plan should be optional. Beyond a specified age (twenty-five, for example,) it should be required. It is difficult, if not impossible, to interest the beginning teacher in a retirement system for the following reasons: (1) A young person, just starting out in any profession, is not apt to consider old age so seriously as to make definite arrangement for retirement; (2) The beginning teacher often does not look 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 and 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 qembership in a scientific retirement system complicates the bookkeeping of the retirement association. It renders it extremely difficult to establish reliable experience tables, which are an essential part of a sound retirement system. The report does not care to recommend 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 percent of the teachers are under 25 years of age. When this is the case, membership would only be compulsory for the other 20 percent, who in all probability have decided to make teaching a life profession. For this group membership cannot be left to the volun- tary decision of each teacher. It must be compulsory to insure ample provision for his retirement. Critical Review of Principle—Beginners to Be Exempt Table 1 shows that 34.9 percent of the 109 educators who submitted critical reviews of the principle that beginners should be [98] exempt, accept the principle without m tion. An additional 19.3 percent of replying accepted the principle wit! modification. Of those replying 41. cent disapproved this principle. A con son of the data of Table 1 with ¢|! Tables 2 to 11 shows that there is le: nimity of opinion as to the acceptability of ¢} principle than of any other set forth in ¢he 1924 Report. Table 1 shows that while 4) percent of the National Education Associ, tion’s Committee of One Hundred on Retir. ment Allowances accept this principle withou: modification, less than 19 percent of the se retaries of state teacher retirement systems accept it. In fact only 44 percent of the latter group accept this principle even when modified. Detailed study of this and other tables will reveal the agreement or lack of agreement as to the acceptability of the eleven principles to the four groups of reviewers. The objection most often raised by those who do not accept the principle that beginners should be exempt is stated in the following quotation: “Beginners never foresee the needs of old age. Membership in an actuarial reserve system is an investment. too early to begin systematic saving. the teacher leaves the service early, he has had the advantage of the ‘compulsory thrift’ of the savings fund part of any adequate retire- ment system. ‘These savings are given to the teacher in the form of a cash payment when he resigns before the stated age for retirement.” Other objections by those not accepting the principle follow: 1. Membership in a retirement system should be required from the day the teacher enters the pro- fession, since the deduction on a beginner's salary is small, and is really a savings account. 2. If the young teacher does not begin to con tribute to the retirement fund, when he begins to teach, he usually objects strenously to contributing until he is much older than twenty-five years. He misses the deduction from his small salary, after having had the full amount for the previous years. 3. If membership is optional for beginners unt! a specified age, many teachers will postpone join ing the system until that compulsory age is reached. Some will then object to paying higher rates o! contribution than the rates they would have paid at the time of appointment. 4. Early membership is essential, as the retire- ment allowance depends on the reserve whicli |s built up by a long period of yearly contributions. It is the steady and long accumulation of small sums that builds up an adequate foundation {or the retiring allowance. It is never Even if CHART I PER CENT of PEOPLE QUESTIONED WHO ACCEPTED EACH 9%e*FUNDAMENTAL PRIN- CIPLES 9 TEACHERS’ RETIREMENT SYSTEM” | | | | | Beeinners to be Exempt Deposits Re - tuonecl in Case ot Early Retiremeny Disability Provided for ’ Guaranties to those Both Teachers inners and. Public cao Death Benefits Includec. needs arial never ven if Indivicwual s had Accounte Kept tt’ ot etire- Rights Under othe — | Previous Annuity when Systems Safesuarde “ar Credit for Past. g the Service Allowed, Costs Shared. by Teachers & Public Service and, — Deposits Concurrent c1-+4 Amount of Deposits Fixecl Fiftw-four per cent of the total ruunbe: people g accepted , ir its erurety Or WLU MoOCiTiCavuone , principle that beginners shoulcL be exempt,etc 5. Contributing to the tend to settle the young teacher down to the seri- ous business of teaching, and would make teach- Membership in a re- tirement system strengthens the professional feel- To exempt beginners would increase the instalibity of the teaching corps. 6. Exemption from the retirement system makes Such exemption will lead ing more of ing of classes among teachers. a profession. the teacher. to administrative difficulties. 7. Young teachers will know little if any more about their future in a few years. into the retirement system when they start teach- If they remain in service they will receive credit in the retirement system for their full num- teaching experience. 8. Experience shows that compulsory member- ship for the beginner usually does not invite op- New entrants accept the retirement con- tributions as a matter of course. 9. Compulsory membership for the beginner does ing. ber of years’ position. retirement would 1. The wisdom of compulsory meml) doubtful. All teachers, however, who cd cifically request to be exempted should sidered members. 2. Membership in any contributory syste: be optional. 3. In addition to a minimum age req there should be a minimum teaching expe: three years for those under twenty-five age; or in cities having probation appoint: soon as permanent appointment. 4. The period of service of the averag: in the United States is between three years. This means that only a small percen: those who enter the profession come under | necessities. It therefore seems useless to teachers, whom we know will not conti: contribute. fund Let them go II. Deposits Returned in Case of Early Retirement require somewhat more clerical service for the additional bookkeeping, but this is slight as com- pared with the other benefits. 10. Membership should be compulsory for teach- ers appointed after the enactment of a retirement optional for teachers in service before the in service before the enactment of the law may have made other pro- law; enactment ; since teachers visions for old age. Some of those who do accept the principle of exempting beginning teachers qualified their statements as follows: TABLE 1—IN A TEACHER RETIREMENT SYSTEM SHOULD BEGINNERS BE Teachers leaving the service before th regular retirement age should retain their rights to all moneys accumulated in thei accounts. Teachers’ deposits should be wit) drawable immediately upon retirement {rom teaching service. The public's deposits should be withdrawable in the form of an annuit or death benefit only upon reaching the retire- ment age. In drafting Articles of Incorporation and EXEMPT? (Expression of Opinion of Four Groups of Educators) ! Members of N.E.A. Retirement Secretaries of State Secretaries of State | Committee on . Teacher Retirement | Teacher Home for Retired | All groups Replies Committee Systems | Associations Teachers etc. | Number Per Cent| Number Per Cent Number | Per Cent| Number | Per Cent| Number Per Cent | replying | replying _ replying replying | | replying — a i 2 | 3 rf .0" 7 om 7 8 | =» ee Yes — without | | modification. . 24 41.4 5 | 18.5 3 50.0 6 33.3 | 38 Yes with some | | ‘ | modification. . 6 10.3 7 |} 25.9 | 2 33.3 6 33.3 21 } | ee Total yes...... 30 | «451.7 2 | 44.4 55 83.3 | 12 66.7 9 No _ without modification. . 9 | 15.5 5 | BOB: fos cxespaed iene ss 30% 3 16.7 | 17 No with some modification. . 16 27.6 10 | 37.0 1 16.7 1 5.6 28 Total no.......) 25 | 43.1 1 | (55.6 1 16.7 4 22.2 45 } | | — eee 3 | 3, RRS See? Gg oo ee F 2 11.1 | 5 Total number | replies re- ceived....... | 58 |} 27 100.0 6 100.0 18 100.0 | 109 ! Read Table 1 as follows: Twenty-four members (or 41.4 percent) of the National Education Association's Committ: Retirement Allowances accept without modification the principle that beginners shouid be exempt. Five or 18.5 pe: of the secretaries of State te os Retirement Systems who replied, also accepted this principle without modificat Similarly read the table for other groups and other replies. [100] AR ae, depo F his | cons men’ drav ot a tor age : It accu cont state his | he h TA] By-Laws for a retirement system, provision must be made for complete justice to all mem- bers of the system. before they become superannuated should Teachers who quit teach- ing not forfeit the money which they have paid nto the retirement fund. Each it, together with the public’s deposit to his credit, in a retirement fund, should be onsidered his personal property the moment teacher’s has been deposited. The teacher’s deposit, together with interest xccumulations, should be at his disposal at decides to teaching. In iny time he stop ther words, his own deposit must be consid- ered a savings account until the amount thus saved is transferred into the retirement fund t the time of retirement upon an annuity. The amount deposited in a teacher’s retire- ment fund by the public should not be with- drawable 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. If the teacher dies in accumulation in his account, contributions made by the teacher and by the 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. service, the entire including the Critical Review of Principle—Deposits Re- turned in Case of Early Retirement Table 2 shows that this principle is accepted without cent of the 109 are wilfing to accept this principle with some modification by 51 per reviewers. An additional 20 per cent modification. The objection raised most often by those who do not accept this principle is this: The to him or to his estate; but the should fund, unless the teacher sability benefit. The dist sits to those teacher’s contributions should be amount state’s contribution revert to the ment retires oO! annuation or a di of the public’s dep: who remain profession would give additional incentiv: main; and would also provide a fund witl to take tioned in III. care of the permanently disabled Those who accept this principle, but with some modification, made these statements: 1. The withdrawal of funds should not be made compulsory. A teacher often re-enter year or two. If immediate the profession after being out a funds had _ beer be forfeited. a deposits until after withdrawn, prior service would ] } teacher should not be able to withd: | four or five years’ teaching 3. The public’s deposits should not be withdraw a teacher leaving the profes with the fund li form by should able in any sion, but remain TABLE 2.—IN A TEACHER RETIREMENT SYSTEM SHOULD DEPOSITS BE RE- TURNED IN CASE OF EARLY RETIREMENT? (Expression of Opinion of Four Groups of Educators) Secretaries of State | Teacher Retirement Systems Retirement ; Committee Replies saint = piiecainangitilial Members of N.E.A. Number | Per Cent replying Number Per Cent replying 1 Yes _ without modification. . Yes with some modification. . Total yes No without modification. . No with some modification. . Secretaries of State Number replying Committee on Home for Retired Teachers, etc. Teacher Associations All groups Number | Per Cent replying Number | Per Cent replying Per Cent 100.0 100 [101] —y Np onze ee ae = teacher dies in service, there is no reason for giv- ing his heirs the contribution made by the public to his account in the retirement fund. The heirs should be entitled to just what the teacher would receive if she resigned and no more, namely, his own deposits with the interest thereon. The pub- lic’s contribution to a retirement fund is gnade for the support of the teacher in his old age and not for the benefit of his heirs in case of his death. 4. The state’s contribution should not be paid except to minor heirs or to dependents. 5. No insurance company could endure under such a principle. Part of the deposits may be returned, but only a part. 6. Deposits shouid be withdrawn without interest. 7. Teachers retiring early should be able to with- draw their own contributions with interest; such money to be repaid with interest if teacher re- enters service. 8. Teacher should be entitled to a part of con- tribution by the state in the early years of con- tract—even if not paid until after minimum retire- ment age. The above statements indicate almost com- plete agreement that a teacher who quits teaching before he becomes superannuated should not forfeit the money which he has paid into a retirement fund. His deposits, together with interest accumulations, should be at his disposal when he decides to stop teaching. A minority argue for a probation- ary period of four or five years, during which time deposits are not withdrawable. There is also practically complete agree- ment on the point that the amount depositeg in a teacher’s retirement fund by the pubjj, should not be withdrawable by the teache; except in the form of an annuity, which thy teacher may apply for upon reachiny th retirement age. There is considerable disagreement a, 4, whether or not, if the teacher dies in service the contributions made by the state should }. paid to his beneficiaries, heirs, or estate. III. Disability Provided For An adequate retirement allowance should be provided for every permanently disabled teacher regardless of the amount in his accoun 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 carr 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- TABLE 3.—-IN A TEACHER RETIREMENT SYSTEM SHOULD DISABILITY BE PROVIDED FOR? (Expression of Opinion of Four Groups of Educators) Members of N.E.A. | Secretaries of State | Secretaries of State Committee on Retirement Teacher Retirement Teacher Home for Retired All groups Committee Systems Associations Teachers, etc. Replies _ Number | Per Cent | Number | Per Cent | Number | Per Cent | Number | Per Cent | Number | Per Cent replying replying replying replying replying 1 2 3 4 6 6 7 8 v 10 I! Yes without tion. . 42 72.4 15 55.6 2 33.3 14 i fe 73 67.0 Yes with some tion. . 12 20.7 ll 40.7 4 66.7 2 11.1 29 26.6 Total yes...... 54 93.1 26 96.3 6 100.0 16 88.8 102 93.6 No without EEE OER ee! ee See Tee ee a Pree No with some modification. . 2 3.5 1 Boe. Bo J cctdwantacana wares 1 5.6 4 7 Total no....... 2 3.5 1 ct een eS Pee 1 5.6 4 7 Bs disuse caus 2 7 Se a en eee! heer 1 5.6 3 2.8 Total number +» — re- ceived....... 58 100.0 27 100.0 6 100.0 18 100.0 109 100.0 [102] se ae rf yaa le ian with 109 are V modi NX recel' that put 1 publi the t 1 tee prent have vise, book expe partl hn ith nized Prov perc tem exce Sc were that ung tion 1 until erab ) limi should lisabled aci Ount Can be - entire In this carry hy; or ‘S may e three lemon- as to 10 Cir- lanent vidual retire- Y BE contain a definite retirement of the system should pro- ‘on for the immediate -manently disabled teacher regardless of his the amount accumulated in his retire- fund. Critical Review of Principle—Disability Pro- vided For [able 3 shows that this principle is accepted without modification by 67 percent of the 109 reviewers. An additional 26.6 percent are willing to accept this principle with some modification. Not a single unqualified negative reply was received. Four out of the 109 replying stated that they did not accept a disability clause, but made these qualifying statements: 1. A disability clause in a retirement act is fea- sible when definite physical standards are enforced 1s an entrance requirement to the profession. 2. The disability allowance should be a generous part only of pensions for superannuated teachers. It should depend upon length of service, amount f contributions, degree of disability, etc. 3. A retirement system must recognize that the public has already expended a considerable sum in the training of a teacher; and the first years of 1 teachers’ service are of the nature of an ap- prenticeship. A certain fixed period of time should have been spent in the teaching profession before . teacher is eligible for disability benefits, other- vise, a retirement system is simply opening its books as a charitable institution at the taxpayer's expense. A disability allowance should be based, partly, at least, upon the joint contributions of both teacher and public, and wholly upon a recog- nized disability table, specified in the statute. Provision should also be made for initial and later periodical medical examinations. No pension sys- tem can be made to cover every exigency of lite except at a cost beyond the ability of the teacher. Somewhat similar qualifications to the above were made by those who accepted the principle that disability should be provided for, but not unqualifiedly. They suggest these modifica- tions: 1. Disability allowance should not be granted until after at least five years of service and pref- erably ten. 2. Payment of disability allowances shouid be limited to those with permanent disabilities. 3. The disability allowance should be less than that for superannuation. 4. Teachers should be required to pass a health xamination before employment. Following dis- ability, medical examination should be made by a doctor appointed by and paid by the retirement ird. In other words, the disability should be well substantiated at time of application for dis- benefit and at sul ability sequent intervals teacher who recovers from his disability sh back to teaching or be dropped from the pet list. 5. Teacher and public should share the cost the amount of the allowance should not go bel a fixed minimum. differ in different parts of the country. 6. There should be a definite actuarially c puted percent added to the contribution for this purpose. Actuarial study shows that can be taken care of without adding greatly to the cost of the state or the teacher. In fact, experience has demonstrated that disability costs are so small as to be almost negligible. 7. Disability allowance should be paid only when the disability is brought about while in perform- ance of professional duties. This minimum will necessari1] disabilities IV. Guaranties to Both Teacher and Public Retirement and rules should be so defined and administered as to retain teachers during efficient service and provide for their ages retirement when satisfactory service is no possible. The sufficient to longer retirement annuity should be enable 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 women of ability to enter the teaching pro- fession; and (2) It should encourage long, continued service on the part of the efficient teacher. men and Both the teacher and the public must be assured certain definite results. Every teacher must be absolute certainty of a retirement Furthermore, the amount of this allowance must be adequate, so that the retired teacher can maintain a The public assured the allowance. respectable standard of living. must have the guarantee that its board of education has the right to ask the superannu- ated teacher to retire. In the last analysis, the benefits of a teach- ers’ retirement system must accrue primarily to the boys and girls attending our public schools. They are the ones who suffer when the superannuated teacher is retained. When an adequate retirement salary -is provided for, a board of education need have no qualms about asking the superannuated teacher to give up his place to a more youthful teacher or administrator. [103] Critical Review of Principle—Guaranties to Both Teacher and Public Table 4+ shows that this principle is accepted without modification by 80.6 percent of the 109 reviewers. An additional 13.9 percent are willing to accept this principle with some modification. Only three of the 109 replying did not accept this principle. ‘Two made reservations to this effect: The intent of this section is essentially sound, but the teachers’ interest will never be adequately safeguarded unless two omissions are repaired: First, a contract should be provided and a section to cover this essential should be written into the retirement act. Second, the name of a specific table of mortality among annuitants and the rate of interest on accumulations should be included in the statute. These two provisions are paramount among guarantees to any body of teachers. Those who accept this principle, but with some modification, made these statements: 1. Care should be taken to make sure that the retirement allowance is sufficient for the teacher to live in reasonable comfort. 2. All teachers who are retired should receive the same pension (amount received based upon payments by the state). The amount deposited by the individual should determine the annuity (amount received based upon teacher’s contribu- tions). Because a teacher has received a small salary is a very good reason why his pension should be adequate to support him. He has not had the same opportunity to save as those 1 larger salaries. V. Death Benefits Included Sums accumulated in the accounts o} ers who die in service and unused port the accounts of retired teachers should / either to designated beneficiaries or estates of such teachers. A sound retirement system will make possible for every teacher to build estate. Whether his death occurs in se) or during his retirement, the sums ac lated in a teacher’s retirement fund be paid to his designated beneficiary, heirs, or to his estate. This fund mus: looked upon as a trust fund which belo: the teacher; and which he can dispose o/ his death, according to the particular opt selected by the teacher previous to his d The teacher should always be given choice of a straight life annuity or an assured annuity of a certain number of equal ments. If he chooses the former, he aut matically gives up all claim to any unused portion of his trust fund. If he chooses an assured annuity of a certain number of pa\ ments he automatically directs that the residue of his trust fund be paid to his estate. Under no circumstances should a teache: be compelled to forfeit his rights to either « Ty some TABLE 4.—IN A TEACHER RETIREMENT SYSTEM SHOULD THERE BE GUAR. ANTIES TO BOTH TEACHERS AND PUBLIC? (Expression of Opinion of Four Groups of Educators) Secretaries of State Teacher Retirement Systems Members of N.E.A. Retirement Committee | Secretaries of State Teacher Associations Home for Retired Committee on | All groups Teachers, etc. | Number | Per Cent | Number | Per Cent replying replying | Number | Per Cent replying | Number | Per Cent replying Number | Per Cent replying 2 3 4 6 8 9 10 1 79.3 20 74.1 88 SU 16 a | 15 13.9 or to all the funds of the retirement when he dies. ‘tical Review of Principle—Death Benefits Included Cr le 5 shows that this principle is ac without modification by 65 percent of 9 replying. An additional 17 percent willing to accept this principle with ification. he objections raised most often by those do not accept this principle were: the death benefit feature is included, a gher charge will be necessary. [he death benefit clause should be optional. ichers wishing death benefits should take out ilar insurance. In the case of a retired teacher any retire- nt salary accrued between date of last remittance late of death is paid to heirs. If the teacher es before retirement, nothing 1s due heirs. The tirement allowance is for teachers, not for those no connection with the work. iVilis Those who accept this principle but with some modifications made these statements: 1. When a teacher dies in service, only his own ibutions to the retirement fund, together with rest thereon, should go to his designated bene- ficiary, his heirs, or his estate. a retiring teacher so desires, he may take , smaller allowance, with the provision that if he ies before the present value of his retirement l i go to his te or designated beneficiary. rs or depend etirement tions: 1, An annuity for life, whether long In case of death, under this option there cash remainder; since the sums remaining early death balance and provide for thos« which are needed for life annuities or ti sons who live longer than the statistical expect A life annuity for the teacher, to be fol by a life annuity of the same or different am or a widow ot me other designated benefi A life annuity for the teacher with tt antee of a certain number of payments, repre ing the remaining accumulations, even though tl teacher should not live long enough to rece them all himself. The second and third of these options neces sarily make the annual sums paid on account of life annuity smaller than those possible under the first option, but they should be provided in order to meet the needs of teachers with dependents. The above statements indicate that there is agreement on the point that a teacher should not be compelled to forfeit all his rights to the funds of the retirement system when he dies. TABLE 5.—IN A TEACHER RETIREMENT SYSTEM SHOULD DEATH BENEFITS BE INCLUDED? (Expression of Opinion of Four Groups of Educators) Members of N.E.A. | Secretaries of State Retirement Teacher Retirement Committee Systems Replies a andes Number Per Cent Number | Per Cent replying replying Yes without modification. Yes with some modification. Total yes No without modification. No with some modification. Total no. 28 Blank Total number replies re- ceived 58 100.0 Secretaries of State Committee on Teacher Home for Retired All groups Associations Teachers, etc. Number Per Cent | Number | Per Cent| Number | Per ( replying replying replying \ 100.0 100.0 [105] VI. Individual Accounts Kept The annuity board should open an account with each individual teacher. Sums deposited in that account by the teacher and by the public should be held in trust for that teacher. Under no circumstances should the funds deposited by one teacher be used to pay the annuities of another teacher. Each individual teacher must be assured that his annuity con- 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 retirement law. But no state or city can touch any part of the depos- its made by the teacher and by state or city to a trust built up to provide for the teacher’s retirement. Individual accounts for each teacher, therefore, are of vital importance. Critical Review of Principle—Individual Accounts Kept Table 6 shows that the principle is accepted unqualifiedly by 78.9 percent of the 109 replying; 91.7 percent accept it with or with- out some modification. This single qualification was made by the four “reviewers” who did not accept the prin- ciple, namely: Only the teacher’s contribu- tions should be kept in an individual account. The amount contributed by state need credited to the individual until ret; takes place. The following qualified statement only to emphasize approval of the p; of individual accounts: 1. This principle is the corner-stone upo: a sound retirement system can be built. 2. Every teacher is entitled to an individ count, since he is only contributing towa own pension. The money is his and ly know at any time he desires the amount c: him. 3. This principle is sound for the period Q which accumulations are built up. After ret; ment, the funds must be pooled, and some money accumulated by and for teachers w! early, provides for the teachers who die |, This fact is one of the reasons why, unde: sound retirement system, such options as been outlined are possible. VII. Rights Under Previous Annuity Systems Safeguarded The public should guarantee active teach- ers all the benefits which they had a reasonah). right to expect under the old system. Fur- thermore, it should guarantee retired teacher the annuity promised at the time of their retirement. Teacher retirement systems are already in effect in many places. Many of these are unsound. They should be replaced by new systems that are in accord with sound prin- TABLE 6—IN A TEACHER RETIREMENT SYSTEM SHOULD INDIVIDUAL ACCOUNTS BE KEPT? (Expression of Opinion of Four Groups of Educators) Secretaries of State Teacher Retirement Systems Members of N.E.A. Retirement Committee Committee on Home for Retired Teachers, etc. Secretaries of State Teacher All groups Associations Number | Per Cent | Number | Per Cent replying replying Number Number replying replying Per Cent Per Cent | Number Per Cent | replying 2 3 4 6 7 8 82.8 5 83.3 13 8.6 2 new TEAL h shoul shou pror When such replacements are proposed, mises made the teachers under the old hould be observed. For example, if d system promised a retirement allow- nce of $400 after twenty years’ service and 2600 after thirty years, teachers should be nteed these expectations under the new m. Or, if the teacher has taught eighteen ears under the o!d system, at the time the ew plan is adopted, he should be guaranteed ihteen-twentieths of $400 at the time the into effect. teachers already retired under the old system should be guaranteed the full annuity prom- ised at the time of retirement. Money for these purposes should be pro- ided from the funds of the old system, and t these are inadequate, from public funds by the creation of a sinking fund similar to that described in Section VIII of this discussion. In no 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 cooperating with the state in building a retirement fund that guarantees his retirement at superannuation, should in addition be required to pay for the promises made by the state to a former gen- new system goes Furthermore, + eriition of teachers. Such an arrangement would not receive the } would would be unjust and approval of any group of teachers. It probably prevent the adoption of a new system sound it might be otherwise. no matter how Critical Review of Principle—Rights Under Previous Annuity Systems Safeguarded ‘Table 7 shows that this principle is accepted without modification by 82.6 percent of the 11.9 are willing to accept this principle with some 109 replying. An additional percent modification. Only two replies did not accept the prin ciple that rights under previous annuity sys tems be safeguarded, and these qualified thei answers. [hose who accepted the principle with some modifications made these statements : 1. Whether the provisions made under old sys tems should be observed or not will depend, within prom It would be unfair to burden the public too reasonable limits, upon the nature of thes« ises. heavily with the liabilities of an absurdly generou and absolvent system. not rights under In other words, whether or previous annu.ty system should be safeguarded depends on the reasonableness ot the old system ana the responsibility for its estab lishment. "Th Si Ss 4 reti - 7 l b 7 8 996 being met today in adopting sound retirement If the deposits to the retirement fund by the leoselati ° A. t state are not made when the teacher makes his, ? egis ation is that this as not alw ays : geen they will have to be large r because of the interest a - done In the past. As a result, many ot our earned by the teacher's deposits T he only sensible a TABLE 10.—IN A TEACHER RETIREMENT SYSTEM SHOULD COSTS BE SHARED 7 BY TEACHERS AND PUBLIC? 8 (Expression of Opinion of Four Groups of Educators) 324 Members of N.E.A. | Secretaries of State | Secretaries of Stat« Committee on 107 Retirement Teacher Retirement Teacher Home for Retired All groups N18 ’ Committee Systems Associations Teachers, etc. Replies Number | Per Cent | Number Per Cent | Number | Per Cent! Number | Per Cent | Number Per Cent s replying replying replying replying replying 1 2 3 , a s 9 10 11 78 Yes _ without modification 18 82.8 13 18.1 } 83.3 13 72.2 79 72.5 pi Yes with some : modification. . | 7 12.1 13 18.1 l 16.7 3 16.7 24 22.0 . Total yes... 55 04.8 6 96.3 6 100.0 16 88.9 10 94.5 0 No _ without modification No with some modification 1 1.7 1 3.7 1 >. 6 ; 2.8 Total no.....| 1 ie l 3.7 1 6 ; 2.8 Blank i. aa 2 3.8 ] 5 f 3 2.8 Total number replies _re- ceived... 58 100.0 27 100.0 6 100.0 18 100.0 109 100.0 [111] So ewe Cte ane Se ns at yates aay occurs. way is for the state fund to be built up to meet the state’s obligations as rapidly as the liability XI. Amount of Deposits Fixed The deposit to be made in the teacher’s individual account by the teacher and by the public should be definitely fixed in the Organic Act creating the retirement system. TABLE 11—IN A TEACHER RETIREMENT SYSTEM SHOULD SERVICE AND The deposits to be made by the te and by the public must be definitely s: in the Organic Act. Too often in the definite contributions to be paid by the te: indefinite. state definitely the method whereby DEPOSITS BE CONCURRENT? (Expression of Opinion of Four Groups of Educators) have been provided for, but the amoun: the public’s deposit has been uncertain All future retirement laws sh. Mew bers of N.E.A. Secretaries of State Secretaries of State Committee on | | | Retirement Teacher Retirement Teacher Home for Retired s Committee Cumnee Associations Teachers, etc. Replies BD St ee TY TE Pine =) aed eal aaa = | | Number | Per Cent | Number | Per Cent | Number Per Cent Number | Per Cent replying replying | replying replying 1 Jn ek Bea | ce e 9 Yes without ? modification. 53 91.4 21 77.8 | 6 100.0 15 83.3 Yes with some | we modification 3 | 5.2 5 Nr TES as a tard an Saeed a iva a0 a | | —____ | —___ - Total yes 56 CtC‘|titO | 26 96.3 6 100.0 15 83. 3 No without | modification. . |: SE! TE ee SRP EET oe ee Seer 1 5.6 No with some ee ee oe 1 } 5 re ee ae 1 5.6 Total Se | ne 1 | eee en eee 2 11.1 Blank .. 2 eS eS: SE ORS Paks 1 5.6 Total number replies re- ved.. 58 100.0 27 100.0 6 100.0 18 100.0 | All groups Number replying 109 Per Cent 100 TABLE 12.—-IN A TEACHER RETIREMENT SYSTEM SHOULD THE AMOUNT OF DEPOSITS BE FIXED? (Expression of Opinion of Four Groups of Educators) Members of N.E.A. | Secretaries of State | Secretaries of State Committee on Retirement Teacher Retirement Teacher Home for Retired All groups Committee Systems Associations Teachers, etc. Replies = Number | Per Cent | Number | Per Cent | Number | Per Cent | Number | Per Cent Number | Per Cent replying replying replying replying replying 1 2 8 4 6 6 7 8 9 10 11 Yes _ without tion. . 49 84.5 19 70.4 4 66.7 16 88.9 88 80.7 Yes with some } fica: 6 10.3 7 25.9 2 33.3 2 11.1 17 15.6 Total yes...... 55 94.8 26 96.3 6 100.0 18 100.0 105 96.3 No without m EE Se OE ee ee ee eee) ee) ry err No with some EE ES EE, 2 Rage ae, ee RE BE Sse | Se ee. re BREE AGRA ao ie SURV BEE, SARS SRR Spe Ee. a Se re Blank......... 3 5.2 1 Ty it Se Se A See 4 3.7 Total number a... yarns wed 58 100.0 27 100.0 6 100.0 18 100.0 109 100.0 [112] Saat hee $0) su 4 2 he @ om r Cent OF AR hehe ints to be deposited by the teachers and the public are to be determined. If this ‘; done the exact amount of the fund which ing built up is known, it can be depended on, and expenditures can be planned accord It is essential that the contributions from the public and from the teacher be made mandatory by the Organic Act. This prevents any chance for misunderstanding. Critical Review of Principle—Amount of Deposits Fixed Table 12 shows that all who reviewed this principle accept it either unqualifiedly or with some modification. Among the qualifications suggested were these: 1. The amount of deposits would be based on age-rate tables. 2. The amount of percentages. 3. It may not be sound teachers prefer to calculate on a fixed deduction each month, rather than on a percent of what they actually receive, as actual receipts vary if out on sick leave. 4. Provision should be made in such way that contributions are fixed by a description of the method of ascertaining the amount, and not by tables and figures quoted in the law which do not adjust automatically as conditions change. 5. The public funds should not be used except for the retired pay—the partial support of the teacher in his old age. The public should, there- fore, treat all teachers alike. Each teacher should receive the same amount for each year of service whether it be a kindergarten assistant or a high school principal. There may be a limit to the amount according to years of service, but the public should not give teacher more than another, for the same tenure of service. deposits should be fixed in business, but many one Suggested Extension of Fundamental Principles The eleven “Fundamental Principles of a Teachers’ Retirement System’ that have been discussed above are those which were set forth in the 1924 Report of the National Education Association’s Committee on Teachers’ Retire- ment Allowances. In the inquiries sent to the four groups of educators mentioned above, this question was asked: “Are there items not covered in the eleven ‘Fundamental Principles’ which you think should be included in a ‘Statement of Fundamental Principles?’ ” The majority of the 109 replying seemed to feel that the eleven Fundamental Principles presented in the 1924 Report are sufficient. Some additional items suggested by one or more given below: | $ Reciprocal Relations “Provision should be made for reciprocal rela persons are between States tions with retirement systems in other states. to render United It should be possible for a teacher teaching services any place in the States or its territories without being penalized by a reduced retirement allowance.” II. Personnel of Boards Pre- Retirement scribed.—* The Organic Law should carefully prescribe the makeup or personnel of the retirement boards, particularly the board responsible for the investments, and the method of appointment or selection, so as to assure a high type of personnel and to elimi nate all political appointments.” III. Administration Should Be Representa tive— ‘The administrative board should rep resent the public and the teacher.” There has been insufficient time to study carefully the above suggestions for the exten sion of the eleven fundamental principles of They It is probable that at a future a retirement system. deserve careful consideration. date it will be desirable to extend the list of fundamental principles to cover some of the points listed above. IV. Retirement Basis.- “The financed by establishing sinking funds to pay the retirement allowances. ‘The yearly con the and the deposited in two separate funds, will, with Reser ve should be System on a retirement system tributions of teachers public, compound interest and safe investment, pro- vide adequate funds.” V. Actuarial odic valuations, at “Peri- five Made. every Evaluations least once in years, should be made to insure the financial soundness of the retirement system.” VI. No Change in Rates Unless Special Conditions—‘“No changes in should be permitted unless determined by an Under rates actuarial evaluation as necessary to provide sufficient reserve funds. annuity, a higher rate may be recommended, To provide a larger but there should be no change in the rate of contribution of a member unless the member consents.” [113] tear ro ta nih Why Every State Should Enact a Sound Teacher Retirement Lay I. A Sound Teacher Retirement Law Protects School Children from Teachers Rendered Incompetent by Advanced Age Because: 1. It sets up a plan whereby every teacher upon attaining old age and infirmity will have had some provision made for his retirement. A sound teacher retirement law makes membership in the retirement system compul- sory for all teachers in public school work. The younger teachers may be permitted to defer their enrolment, but are required to begin contribution to the fund by a certain date, in order that before they reach an advanced age there is sufficient time to build up a sum providing an adequate allowance at time of retirement. By such a method the school system will be assured that the future of every member has been provided for. 2. It frees school boards from the obliga- tion of continuing to employ teachers formerly satisfactory, but who are now rendered incom- petent by old age. Where no retirement plan is in force, school boards are often forced to make one of the following choices: a. The retention of a teacher rendered incompetent by 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 situation usually continue employment. School boards are human. The years of self-sacrificing ser- vice and the effectiveness of the teacher’s work in his early career exercise strong appeals. The aged teacher is seldom dismissed, no matter how great his incompetency. The mark of his disability is left upon the plastic children under his control. School boards should not have to make such a choice. They should be free to employ none but competent teachers. The presence of a sound teacher retirement law makes this possible. 3. It removes the necessity for teachers to continue in service after their effectiveness has been seriously reduced by advanced age, or other disability. Superannuated teachers are not anxio continue in service, but under present « tions many must either do so or accept ch When confronted with this alternative the, appeal to the sentiment of school boards and school officials and exert political pressure in order to retain their positions. Such practice is rendered unnecessary when a sound teacher retirement law has been adopted. II. A Sound Teacher Retirement Law Tends to Attract Capable Young People into the Teaching Profession Because: 1. It partly compensates for the lowe remuneration that teaching offers during active service. Today the children in the public schools are being taught to study the possibilities of a field of work before they enter it. Young people with sufficient native ability to make good teachers may be expected to exercise foresight. They may be expected to avoid a field of service which promises neither a large reward during active service nor security in old age. Too great a strain should not be placed on the missionary spirit. Many young people would be willing to enter teaching even though it promises a smaller income than that paid in other fields, if in addition they did not have to face the possibility of a depend- ent old age. A sound teacher retirement system guarantees reasonable security in old age, thereby removing one obstacle to the recruiting of an adequate supply of teacher candidates. 2. It gives a better guarantee of promotion within the profession. A sound retirement system prevents thie “hanging on” of those in the more responsib!e positions after the normal age for retirement has been reached and their efficiency has been reduced by advanced age. The paths of promotion are thus kept open for the abler and younger teachers. No service that denies competency a reasonable chance to advance to a position of responsibility can expect to recruit its fair share of the nation’s best minds. 3. It increases the dignity of the teaching profession by keeping its ranks free of those incapacitated by old age. [114] Mteriterr stn WAC NR ca chools les ot “oung make ercise avoid ler a ‘urity ot be oung ching than they yend- ment old the cher Young people of worth cannot be expected to offer themselves in large numbers for a ssion, the service of which is so lightly ed by society that its members are often found destitute in old age. ‘The young person nders if he in turn, when old age overtakes - him, will have to linger on in the teaching fession, rendering constantly less efficient service due to the impairment of his faculties by old age. from a large corporation in that it does not The teaching profession difters have various levels of employment to which the elderly employees can be demoted. Every iob in the teaching profession requires a high degree of efficiency. The aged and destitute teacher’s other alter- native from continuing in service is the accept- ance of charity. “The existence of aged teach- ers dependent upon charity for support cannot but seriously lower the general respect for the teaching profession. “The laborer is worthy of his hire.” III. A Sound Teacher Retirement System Tends to Keep Capable Teachers in the Classroom Because: 1. It makes it unnecessary for capable peo- ple to seek other 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 to keep the schools at a high level of eficiency. 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 reach ing old age in a dependent condition. In a sound retirement system the fund built up as a basis for the teacher’s retirement annuity is his personal property. It cannot be taken away from him any more than prop- erty of other kinds can be confiscated without proper return. The retirement income, whereas not large, is secure and can be depended upon. protection for old age. for swinging over into some more lucrative work in order to provide for the future. Teaching thus becomes a There is no necessity Zz It makes each vear Of teaching servi a step toward independence in old age Sound teacher retirement systems provide for the building up of a fund for each mem ber over a period of years which torms the basis for an income received after retirement. With each added year of service this fund increases until it eventually is sufficient to allowance. Each year brings the teacher nearer to the provide an adequate retirement time of old age—and were a retirement system not in force, this would mean a time when he would probably be partly or wholly dependent upon relatives or charity for sup port. A sound plan of retiring allowances will prove an attractive savings investment to the foresighted teacher and will be a factor in retaining him in the service. IV. A Sound Teacher Retirement System Increases the Efficiency of the Teacher in the Classroom Because: 1. It lengthens the period of teaching efficiency by relieving the teacher's mind of the fear of a destitute old age. More and more responsibilities have been placed upon the school in the last few decades. The result is a rapid increase of the teaching load. If the period of a teacher’s effective service is not to be seriously reduced, unneces sary worry must be avoided. Enthusiasm and optimism are essential to the best teaching. A mind harassed by fear for the future does not usually possess these qualities. A properly planned teacher retirement system removes one of the main causes of worry from the lives of teachers and preserves the hopeful outlook on life so vital to effective instruction. 2. It makes it possible for a teacher to invest in study, training, and travel, without endangering 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 stimu- lus that comes from constant contact with his equals or superiors. ‘The best protection that a teacher has from growing old mentally as well as physically is study and travel. When he comes in contact with adult minds in a first class teacher training institution and gets the broader insight that comes from travel, his effectiveness in the classroom is Without a_ teacher constantly improved. {115] retirement system, additional study, travel, and similar self-improvement are often delayed too long. The teacher hesitates to deplete each year’s meager savings—his only assur- ance 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 through study and travel, 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 school staff than being required to work under the direction of superiors more or less incompetent because of old age. “The younger teachers need the incentive that comes from knowing that good service will be rewarded by promotion. Directors should be alive to new ideas and methods resulting from scientific research and experimentation. An adequate retirement system can keep the administrative and supervisory positions free from officials incapacitated by old age. The morale of the teaching force will thus be kept at a high level with untold benefit to school children. 4. It increases the child’s respect for the teacher and thereby makes his work more effective. Much of the benefit of teaching is lost if the child does not respect the teacher. In this day and age, the teacher can hardly expect to claim the respect, vital to effective teaching, from young people if he receives small com- pensation during active service and is often dependent in old age. The enactment of a retirement law in which costs are partly borne by the public is a recognition of the value of a teacher’s service. Without this recognition his ability to influence for good the lives of the children is seriously reduced. V. A Sound Teacher Retirement Sys- tem in the Long Run Means a Substan- tial Saving to the General Public Because: 1. It makes possible the replacement of superannuated teachers, who receive the maxi- mum salaries, by younger teachers who begin at a smaller salary. Most progressive school systems have adopted salary schedules under which teachers begin at a minimum salary that increases a period of years to a maximum, that is 50 to 100 percent larger than the mini: Teachers of long experience, of course, r the maximum. Therefore, when a tea rendered incompetent by old age, is retained in the classroom, not only is poor tea done but the cost to the public is large. Ap adequate retirement plan makes it possible t, retire teachers when superannuation is reached and to replace them with younger teachers who for several years receive a salary consid- erably less than that paid to the retiring teacher. A _ retirement system, therefore. makes for greater efficiency at smaller cost. 2. It protects the public from the wast: an expensive school plant manned by a su per- annuated teacher. The wastefulness of a factory, equipped with expensive machinery, but not producing up to capacity, is readily recognized. ‘Ihe product of a school—education and training for children—is less easily measured than that of a factory. The waste of providing and equipping a schoolroom and then manning it with a superannuated teacher—incapable of turning out a sound educational product— is more serious than when a factory under produces. Poor workmanship in a factory merely wastes raw materials. Poor workman ship in a schoolroom misshapes human lives. 3. It guarantees the public a definite and valuable return for its share of the cost. Under some retirement plans the younger teachers are not required to join until they reach a certain age. Until they join, there is no cost to the public. If a young teacher does join, the contributions made from public funds in his early career for building up an annuity are very small. This is proper because there is no superannuation risk in employing a young teacher. If the teacher continues in the profession, however, the contributions toward his annuity fund that come from public funds gradually increase as the age of superannuation approaches. “Thus, no mone) is wasted building up funds for young teach ers who may leave the profession before they reach superannuation. It all goes to provide insurance against the employment of super- annuated teachers. A valuable return is guar- anteed the public at a minimum cost. 4. It prevents the enactment of ill-consid ered and costly “pension” systems. [116] ‘ost iste of Su per- lipped lucing The ining 1 that r and ing it le of t—is nder- ctory man lives. and inger they -here cher ublic > an ause ying Ss in Tons rom e of ney ach- they vide per- Jar- sid Cr AP RBOR a ey k \ majority of the states and many local mmunities have recognized that a plan for ct the retirement of teachers is essential to the sreatest school efficiency. ‘The chances are that school systems without provision for teacher retirement will eventually provide one. The enactment of a sound teacher retirement plan, based upon principles that are a result of experience and careful study, is to be desired by all progressive communities. It prevents the adoption of ill-advised, half-way measures which are too often the alternative, and which in the end not only prove costly and destructive of teaching morale, but fail of the purpose for which the retirement plan was originated. The enactment of measure at the outset makes the problem of teacher retirement a comparatively simple one both administratively and financially, and protects a state from the costly mistakes that a sound have been made in some places. 5. Its cost to the general public is small when compared with the benefits received. The cost of a sound teacher retirement sys- tem to the public is small. for the retirement of teachers in some of the best laws at an annual cost that is less than 5 percent of all school expenditures. ‘This small initial cost is more than offset by the Provision is made money actually saved in other directions as a result of a sound teacher retirement system. In addition, there are the important benefits that a retirement system guarantees in the form of more effective work in the nation’s classrooms. 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 Worip’s Work of Febru- ary 1923 states: “Most large employers of labor find a system of pensions essential to the efficiency of their staffs. One of their greatest problems has been the disposition of employees who have outlived their economic usefulness. Even the most mechanical prac- titioner of “efficiency” recognizes that human- ity and gratitude are imponderables that can- not be disregarded. The result was that use- less workmen and executives were kept at *The Carnegie Foundation for the Advancement of Terching, 522 Fifth nual Report of the President and of the Treasurer, 1925, *Information secured from United States Civil Servic work; not only was their labor a liability but their presence prevented the promotion this an economic necessity. the pension The time is probably not far distant when every will of effective men. In wa) system became prosperous employer of labor have adopted some plan providing for the future of its workers. Properly regarded, it is not philanthropy; it is simply business.” The Metropolitan Life Insurance Com pany, the New York Stock Exchange, and the Western Clock Company have lately established systems commended by some writ ers as being essentially sound. The Associated Press, railway, and commercial corporations have contracted with insurance companies to provide pension systems for their employees. According to the Twentieth Annual Repor: of the Carnegie Foundation, ‘developments of the year in the field of industrial pensions reveal two tendencies: the first, toward fund- ing pension obligations in advance; the second, toward contractual security.” 2. A retirement plan has already been put in effect in all important public services. A recent survey of the Federal service indi cates that there are approximately 380,000 employees (including employees of the Dis- trict of Columbia) subject to the retirement The Retirement Act of 1926 includes all classified employees of the United States, law. with the exception of postmasters. Practically all trades, professions, and other classes of this There is a special system for the Lighthouse work are represented in classification. Service in the Department of Commerce and for teachers, policemen, and firemen of the District of Columbia.’ “An act for the retirement of employees in the classified civil service and for other pur- poses”’ was passed by Congress, May 22, 1920, A bill to amend this act was introduced into the House as H. R. 7 (Report No. 1099) the 786 at the first session of the 66th Congress. The bill intro- duced in the House, prepared by the Director of the Budget, was passed and became ef- fective July 3, 1926. ‘The two bills are alike in that both make provision for superannua- and into Senate as S. tion retirement after fifteen years of service, and reaching the age of 62, 65, or 70 years Avenue, New York City Twentieth An 166. Commission, Washington, D. C. (117] i dependent upon the type of employment, and for continuation of employment after the re- tirement age is reached, such extension of serv- ice not to exceed four years, after August 20, 1930. The maximum annuity is $1000 per annum. The employees’ contribution under this new act amounts to 31%, percent of the salary of the employee. Se ee Pag me Suladac liabbeeeeni. te 3. The public in general contributes bil- lions of dollars each year for the support of insurance companies that offer protection for the future. No. 3, ‘* Taking Stock of the Schools,"" May, 1925, p. 86 1 The National Education Association, 1201 Sixteenth Street, N. W., Washington, D. C. The public in general is recognizi; importance of insurance against old Figures for 1924 show that 6 percent | national income was paid for insuran more than $3,500,000,000 was paid | American people in insurance premiums that time there was $64,000,000,000 of life insurance in in the | States... A sound teacher retirement systep resembles an insurance plan, administered partly financed by the public, whereb, public school is guaranteed the greate: ciency that comes from insurance against employment of superannuated employees. force Research Bulletin, Volu A experienced, and more enthusiastic group. the service. ment system which is soundly planned provides a ficult to retain in a salaried employment. tem. make teaching a life profession is small. dren and dependents in event of early death. of the N. EB. A., 1923, pages 379 and 380. RETIREMENT system is a financial measure for increasing the effectiveness of a group of workers by promoting their financial welfare in a way which builds up a more loyal, more It benefits the employees by giving them financia! security as to their personal future, and it benefits the employers through the increased effective- ness of the employees working under such conditions. . the removal without hardship of the superannuated, who constitute a very heavy burden. tention of superannuated employees on the payroll is injurious to an organization, not only be- cause they continue to draw full pay for inefficient service, but also because they occupy the space and use the equipment which could be more profitably used by more effective workers. over, young and ambitious workers find their promotion blocked by the retention of the superan- aC nuated, become discouraged, and frequently pass into other employment to the great detriment of In the second place, the retirement system makes the conditions of employment at- tractive and tends to draw into the service persons of character and ambition. induce such persons to enter an employment with the intention of making it a life work unless they can feel assured that a lifetime devoted to the work will give them at least an adequate financial provision for their dependents and for their own old age. especially effective in retaining persons of character, experience, and _ initiative. necessarily form the most valuable element in any service, yet they are the very ones most dif- There can be no doubt that the conditions which a scientifically planned retirement system will remedy, are prevalent in our public educational sys- It is a matter of common knowledge that while the work of education makes a strong ap- i¢ peal to many who have the desired qualities of mind and character, the number who actuall; a In most every other walk of life, it is common to find persons of distinction who have been valuable teachers but have been driven from the teaching profession because they could see no way of providing for their own old age or for their chil- Wherever a careful examination has been made, r it has been evident that there is a great amount of superannuation in the teaching profes- rT In the first place, it makes possible f1 Re \ se More- It is difficult to t] In the third place, a retire- strong inducement to continued service. It is di Such persons sion, that the number of men employed in the profession has been constantly decreasing for many : 7 years, that the proportion of experienced teachers is low, and that the turnover in employment is ; ; very great. The cost of training teachers is high and is borne by the public, yet the average ' time teachers remain in the service after they have been trained is short. These are undesirable ; conditions which a properly designed retirement system can remove.—Addresses and Proceedings i ? [118] The form of teacher retirement legisla- n which promises most in benefits to the rublic also promises most in benefits to the ea 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 rendered incompetent by advanced age. ‘The teacher is concerned with the elevating effect that a sound retirement system has upon the yrofession in general and the benefits that such a system guarantees him as an individual. There is no necessary conflict between these two interests. It is important that the teacher realize, however, that the public often has little inter- est 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. It is a wise policy both to draft retirement legislation in the form that guarantees the greatest returns to the public and to advocate its enactment because of the benefits which will accrue to the chil- dren 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 to form a weaker foundation upon which to build an adequate retirement system than is a gen- eral realization that a retirement system prom- ises increased teaching efficiency. But the retirement plan which promises the greatest increases in teaching efficiency is the one which in the end will bring the greatest benefits to the individual teacher. 2. The support of sound teacher retire- ment legislation on the part of all teachers is a professional duty. It has been pointed out in the preceding pages that a sound teacher retirement system increases the efficiency of the school staff. It is, therefore, the duty of every member of the profession possessed of a proper profes- [119] The Teacher’s Interest in Retirement Legislation sional spirit to place no obstacle in the way of such legislation. It may be possible, in exceptional cases, that individual teachers exist for whom the enactment: of retirement legislation means no personal benefit. The opposition to the enactment of a measure, or its lukewarm support, on such a basis is unworthy of any member of a group deserving classification among the professions. Sound teacher retirement legislation can entail no hardship upon any teacher. If afte: being a member of a retirement system for a number of years he chooses to withdraw from the profession, the deposits made toward building 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 age for normal retirement. On the other hand, the failure of a small group of teachers to support retirement legislation may make such legislation difficult or impossible of enactment, and result in harm both to teachers 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 profession. 3. Every teacher has a direct personal in terest in the enactment of sound retirement legislation. Teachers, like other people, sometimes refuse to face facts. They refuse to recognize that: a. Human beings must look forward to old age. b. Practically all old teachers did not expect to keep on in the profession when they first began teaching. c. Many teachers who have given their lives to the profession are actually desti- tute at the present time. A recent investigation covering but twelve states revealed 1,263 teachers dragging out the last years of their lives in poverty. It is aaa 2 no answer to say: “That will never happen to me.” It has happened already to thousands who have said the same thing. No one can predict his future with certainty. In fact, reaching old age without adequate financial support is more likely to happen to a teacher than 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 depend- ents become capable of supporting him. 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 vive 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. Every teacher, therefore, has an excep- tional 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 often have been. It is as much the teacher’s as is the salary that he receives during his period of actual service. He has fully earned it, and he may accept it without question. A teacher may support sound retirement legisla- tion without any feeling that it involves a lowering of his own self-respect, or that in which the profession is held. 5. A teacher retirement system exercises an important influence upon advancement and promotion within the profession. One important effect of a sound teacher retirement system is often overlooked by teachers. A properly drafted plan guarantees annuities to all members of the profes an amount that makes it reasonable to retirement upon reaching the normal ment age. In some retirement systen mistake has been made of placing a ma) retirement annuity so low that those upper levels of the profession receivi: higher salaries refuse to retire unless to du so. Asa result, the path of pron is blocked and too high a percentage most desirable teaching positions are occupied by superannuated people. When each t is required to contribute a percentage salary over a long period of years ¢. building up of an annuity fund there wil! be a reasonable relationship between the teachers salary at retirement and the amount of ¢h annuity, while the fixing of a maximum amount which a teacher may public funds guarantees that no one will s unduly in the income from this source. Prom ising people in the lower ranks will re the promotion that is their right. 6. Sound retirement legislation should | based only upon expert advice and techn data. Those charged with the drafting of retire- ment legislation should be guided by the expe: ience gained in the administration of teache: retirement systems during the past generation and the mass of exact information now avai! able. Legislation should not be drafted which does not draw upon this experience. ‘This does not mean that teachers’ organizations need accept dogmatically stated principles o: plans laid down by experts. The teachers decision, based upon an analysis of all the facts in the case, is often worth as much as that of the expert who is often less familiar with local conditions. ‘Teachers should, how ever, always have the advice of experts in this field, and careful consideration should be given to their recommendations. A _ sound teacher retirement system need not be a com plicated affair, but ‘it does need to be based on generally accepted principles and to avoid the errors that have brought such unfortunate results in many of the old, unsound “pension” systems. 7. The enactment of sound legislation must be preceded by and be based upon a prope education of both the teaching profession and the public. In local communities there is sometimes ° receive from [120] minority of teachers who do not appre- against another, such as elementary teachers PSs i small ) Pn ciate the l ret is {mong the general public there are still a few ers against those of experience. Wheneve: ems the « shortsighted that they are unable to see teachers allow this to be done, they are the - the benefits that accrue to the children from losers. Much of the difficulty that lies in the ‘Tape the enactment of sound teacher retirement way of present legislation arises from the indifference or petty disputes of the teachers. need for retirement legislation. against secondary teachers, or beginning teach a | 1 ing the legislation. In spite of the small cost that an annuity All teachers, no matter what type of educa S e om ; plan adds to public expenditures, and the many tional position they hold, should approach the of th savings which it brings, they oppose all efforts problem in a spirit marked by a willingness to CCUpied to enact such legislation. It is necessary to accept reasonable compromises, and an ability teache; educate carefully such people as well as those to see the other teachers’ viewpoint. ‘There of his who more readily recognize its benefits. should be a _ willingness to submerge non th re 8. The enactment of sound legislation must essentials, individual likes and dislikes, and will be be based upon united effort on the part of individual interests to the larger benefits that ~achers the teaching profession. come to the profession as a whole from the of the In carrying on the important work of enactment of legislation based upon sound ximum | actually obtaining the enactment of legisla- principles, rather than upon the desire to make - from ' tion, teachers must preserve a united front. special exceptions for any individual or group 1 share The opponents of sound teacher retirement in the profession. Controversial points should Prom legislation too often have betrayed such meas-_ be decided with the greatest possible fairness, ures by arraying one group in the profession and then all should stand together. receive ld he hnical "T HE PROBLEM of retirement is essentially one of business management. Superannuation in - employment is an economic waste; turnover in employment is an economic waste; failure to attract to an employment people of the highest character and ability is an economic waste; fail- retire- ure to retain trained and experienced employees is an economic waste. Inefhciency in the schools exper- is far more deplorable than inefhiciency in business, for it wastes not money alone, but the time -acher and opportunity of the pupils. The training and qualifications required of teachers, and the con- ation ditions of their work are such that the beneficial effect of an equitable provision for their retire- as ment is probably greater in their case than in any other employment.—Addresses and Proceed avail- ings of the N. E. A., 1923, p. 377. vhich This APABLE, HIGH-MINDED people should be encouraged in every way by tenure, pensions, tions social recognition, and adequate salaries to enter upon teaching as a career—people who ae would go into teaching not as a trade or commercial undertaking but as a fine art; who would ; teach with joy, enthusiasm, with the missionary spirit. Such teachers are often ready and willing hers j to go into teaching for the love of it, for the good they can do, without too much regard for the the salary, provided they can have some security against dependence in old age or if disabled in any h as ! way. Provision for retirement allowances frees such teachers and all teachers from the dread of iliar ; 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 seed work. The schools, the children, and society will all gain by rendering the teacher secure against this ; the risks of life. While pensions and tenure help to secure and hold good teachers they also be make it possible to free the schools, with social justice and dignity, from superannuated and in- und capacitated teachers. If superannuated teachers are held too long the young, ambitious, progres- ae sive teachers become discouraged because of 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 lack sed of force and vitality in the teaching of superannuated teachers left too long in charge. Children oid must not be subjected to wrong training or poor training of mind and heart and character because ate of incompetency of the teacher, or because of the superannuation of the teacher.—Addresses and ~~ Proceedings of N. E. A., 1919, page 146. [121] State and Local Retirement Systems Now in Effect Where State Wide Teacher Reti: Laws are in effect, the following citi counties have local teacher retirement < The following lists of states and cities where the different types of retirement laws are in effect have been compiled with the aid of the secretaries of the state and local retire- ment associations. ‘They reveal the present situation in the United States in regard to teacher retirement. This review, insofar as it concerns local retirement systems, does not purport to be complete. It is at times dificult to tell when certain cooperative arrangements maintained by teachers and locai school systems should be given the dignity of the name “retirement systems.”” When there was any question as to whether a local ar- rangement should have such a title it has been omitted from this review. It is also possible that some well-planned bona-fide retirement systems have been omitted, in spite independent of the state systems: San Francisco, Calif.* New Haven, Conn. Chicago, IIl.* Peoria, III. Terre Haute, Ind. Indianapolis, Ind. Allegany County, Md.’ Paltimore County, Md.* Boston, Mass. State Teacher Retirement Laws affecting certain cities are in effect in the following states: Cities operating retirement systems unde: such State Laws are: Minneapolis, Min: Duluth, Minn. St. Paul, Minn New York City, N Bristol, R. I.? Newport, R. I.” Providence, R. I. Milwaukee, Wis. -— T.re ear Ure : “al C “ie of the fact that a careful series of letters were “° erate ety SE written to a number of responsible officials Teener in all states in an attempt to make a complete Greeley check. The Research Division of the National Pueblo | Education Association has collected copies, [owa Des Moines whenever available, of the laws establishing ,. : ‘ . Kansas Topeka the retirement systems, together with reports re rene and bulletins relative to the working out of Parsons state and local retirement laws. Information ,, . ak dee Kentucky Lexington concerning the content or availability of i ceskenliie these laws may be secured by addressing the Newport National Education Association. ws 5 pa - . Louisiana New Orleans The map on page 31 graphically pictures 33 the situation in 1926 as it concerns the devel- Michigan Detroit opment of teacher retirement systems inso- Nebraska Omaha far as data could be obtained by the methods . a Oregon Portland stated in the preceding paragraph. na te Nee C2 State Wide Teacher Retirement Laws are as ; . J ane Cay in effect in the following States: Washington Bellingham Everett Arizona Montana Seattle California Nevada Spokane Connecticut New Jersey Tacoma ; District of Columbia New York' ; of ais ' Illinois North Dakota West Virginia ase Indiana Ohio oe + a , eo, No State Law Relative to Teacher Retir: : Marylan e Islan sos : = a } sechiahetianee ~ sane ment is in effect in the following states: Michigan Virginia Alabama Delaware j Minnesota Wisconsin Arkansas Florida 3 1 The New York Law does not include t he teachers of New York City. * Teachers are also enrolled in the state system. (122) | SUI SeTzID worpont 13d 19931 UIT] Ul ary 2282 WII], FINIS IQ jo WO] Quer yout Jer PayIrpul we SuIIzs. <3 IWR. Juep -usdapul Suivoy 3e17D PBIU YO] FUIWIT}2Ey 3ayIVIL FPUL JOS > Vi mm . * . payooTy” ut a0 swe} ‘ —* - A$ FoOwOI1 70S Toso] Burywoy sayO 7a Ker PQs Ut WOT {UIUIdITISY SFOS ON . >4 . — a — | ™ } 2 \ ) 7 Pe ; ~ t j — = suowinwe / 7 a apowilive ~ ¢ as 338 2 : 420 COANIHORT ghosv (| wino3d° f -wrwonr . ' a, NOLOMIn eT Aald ¥BQA ON — — 1123] ty Laa besieesieieaiehanen TOOT pur TIVIS ——E ae NI CAN? LNaWdals: EAE TE Et ae ae Georgia North Carolina Idaho Oklahoma Mississippi South Carolina Missouri Tennessee New Hampshire Texas New Mexico W yoming In some of the above states where there are to permissive or mandatory laws relative to teacher retirement, the following cities anq counties have local retirement systems: Mobile County, Ala. Jefferson County, Ala. Wilmington, Del. Atlanta, Ga. Augusta, Ga. Savannah, Ga. Manchester, N. H. New Hanover Co. Durkee, N. C. Charleston, S. C Chattanooga, Tenn Hamilton, Tenn. Nashville, Tenn. San Antonio, Tex Where to Write Concerning Details of State and Local Retirement Systems School officials and laymen concerned with retirement legislation may wish to make use of the experience of other states or communi- ties in handing the problem of teacher retire- ment. ‘This section is included for those who desire more information than could be given in this Bulletin as to certain administrative or financial phases of the retirement systems in effect, or the procedure followed where retirement legislation is proposed. The fo! lowing directories give information as to whom correspondence may be addressed _ jn order to secure details concerning state and local retirement systems. DIRECTORY OF STATE WIDE AND TERRITORIAL TEACHER RETIREMENT SYSTEMS State or Territory Person to whom correspondence should be addressed relative to teacher retirement Address struction. Fund Board. Connecticut Retirement tendent of Schools. Public Instruction. Maryland Montgomery County. Massachusetts Board Michigan tirement Fund Board. ment Fund Boa New Jersey.............| John A and Annuity Fund. Arizona. Pry ee C. OQ. Case, State Superintendent of Public In- | Phoenix, Ariz. California oe oe Miss Marion H. Ketcham, Assistant Secretary, | Box 615, Sacramento, Calif. Public School Teachers’ Retirement Salary Miss Dorothy M. Shanley, Secretary, Teachers’ | State Capitol, Hartford, Conn. District of Columbia... .. Maj. Raymond O. Wilmarth, Assistant Superin- | Franklin Administration Building, 13t! and K Streets N. W., Washington, D. ( PED. Soo wae Henry P. O’Suliivan, Secretary, Employees’ Re- | Room 2, Second Floor, National Guard Rv. Glanda, 8 of the Territory of Hawaii. Armory, Honolulu, Hawaii. Illinois. : Pe , ay Secretary, Teachers’ Retirement | State Capitol, Springfield, III. Fun ard Indiana : O. he ie! Ex. secretary, Teachers’ Retirement | 225 Capitol Building, Indianapolis, Ind un Maine Dr. Augustus O. Thomas, State Superintendent of | State-house, Augusta, Me. E. W. Broome, County Superintendent of Schools, | Rockville, Md. Clayton L. Lent, Secretary, Teachers’ Retirement | 204 State-house, Boston, Mass Mrs. Georgiana Larabee, Secretary, Teachers’ Re- | 602 “4 -- > State Savings Bank Build -, Lansing, Mic M. A. Morse, Secretary, Teachers’ Insurance and | 211 Historical Building, St. Paul, Minn Minnesota Retirement Fund. Montana Miss May Trumper, State Superintendent of Pub- | Helena, Mont. lic Instruction. . Nevada. . ae. Charles Priest, Ex. secretary, Teachers’ Retire- | State Capitol, Carson City, Nev. A. Wood 3d, ‘Secretary, Teachers’ Pension | P. O. Box 840, Trenton, N. J. gg .| E. Fi a Secretary, Teachers’ Retirement | Albany, N. Y. un North Dakota.......... P. S. Berg, Superintendent of Schools........ .| Dickinson, N. Dak Ohio ; > WE. Ke ershner, Secretary, Teachers’ Retirement | 324 Rowlands Building, Columbus, Ohi und Board. Pennsylvania H. H. Baish, Secretary, School Employees’ Retire- | Harrisburg, Pa. ment Rhode Island Walter E. Ranger, State Commissioner of Eduea- | 119 State-house, Providence, R. I. tion. Ts x «ues 0 opie ae H. Dempsey, Commissioner of Educa- | Montpelier, Vt. RRR RC Ire aa Foster, De ment of Education......... Richmond, Va. WL. «, . cncdueap een aS iqceees retary, Teachers’ Retirement | State Capitol, Madison, Wis. u b The above names and addresses were obtained through inquiries sent to State Superintendents of Public Instruction and to secretaries of state wide teacher retirement systems. DI (124] ems stems where ] P TO! ard DIRECTORY OF STATE TEACHER RETIREMENT SYSTEMS WHICH APPLY TO CERTAIN CLASSES OF CITIES AND LOCAL RETIREMENT SYSTEMS State Alabama Colorado Connecticut Delaware Georgia ilinole.. os +0080 Indiana lowa Kansas Kentucky Louisiana Maryland. Nebraska. ; New Hampshire New York North Carolina. Oregon..... ‘ Rhode Island South Carolina Tennessee . Texas Utah Washington. . West Virginia... Wisconsin. ..... City or County Mobile County Jefferson County Canon City..... Colorado Springs Denver Greeley Pueblo New Haven Wilmington Atlanta Augusta | Savannah Chicago Peoria Indianapolis Terre Haute Des Moines Atchison Parsons Topeka Lexington Louisville Newport New Orleans Allegheny County Baltimore Baltimore County Omaha... Manchester Nashua New York City New Hanover County Portland Bristol Newport Providence Charleston Chattanooga. . Hamilton County Nashville ‘ San Antonio Salt Lake City | Bellingham | Everett Seattle Spokane Tacoma Parkersburg Wheeling Milwaukee Person to whom correspondence should be addressed relative to retirement systems Miss Natalie Simison, Secretary, Mobile Teachers’ Association. E. B. Erwin, Superintendent of Schools, Jeffer- son County ©. B. Drake, Superintendent of Schools T. J. Fox, Secretary, School Board Mrs. Mary C. C. Bradford, State Superin- tendent of Public Instruction G. E. Brown, Superintendent of Schools J. F. Keating, Superintendent of Schools Robert B. Hall, Secretary, Retirement Fund Board. Miss Florence Ramo, Secretary Fund Board H. Reid Hunter, Superintendent in charge of High Schools Lawton B. Evans, Superintendent of Schools ©. B. Strong, Superintendent of Schocls Miss Mary Abbe, Recording Secretary, Re- tirement Fund Board. Miss Catherine C. Quinn, Financial Secretary Retirement Fund Board. Frank L. Reissner, Secretary Board. Miss Lulu B. Johnson, Secretary, Retirement Fund Board J. W. Studebaker, Superintendent of Schools Thomas B. Portwood, Superintendent of Schools. Rees H. Hughes, Superintedent of Schools A. J. Stout, City Superintendent of Schools Miss Mary Walby, Secretary, Board of Insur- ance and Annuity. Miss Carrie R. Gross, Secretary, Trustees of Annuity Fund. Miss Dora Cumming A. J. Tete, Secretary-Treasurer, Board of Trus- tees, Teachers’ Retirement Fund Mrs. Margaret S. Upham, Secretary ment Fund Board 8. R. Murphy, Secretary, Board of Trustees, Retirement Fund J. T. Hershner, Assistant Secretary, Retire- ment Fund Board John H. Beveridge, Superintendent of Schools Frank A. Morris, Superintendent of Schools Charles H. Noyes, Superintendent of Schools Retirement Retirement Fund Retire- Magnus Gross, Secretary, Teachers’ Retire- ment System of the City of New York Maj. W. A. Graham, Superintendent of Schools Charles A. Rice, Superintendent of Schools William E. Hobbs, Superintendent of Schools H. W. Lull, Superintendent of Schools .| William .H. Worrall, City Auditor A. B. Rhett, Secretary, Fund Board J. 8. Ziegler, Superintendent of Schools J. E. Walker, Superintendent of Schools Secretary, Ronadl of Public School Pension Commissioners. C. A. Society George King, Board. Miss Tryphena Warren, Secretary, Retirement Fund Board Secretary, Retirement Fund | §. Frank Spencer, Retirement Fund Board or Miss Beatrice Robinson, Retirement Fund Board K. J. Knutson, Secretary, Retirement Fund Board Miss Clara L. Jahnke, Secretary, Retirement Fund Board John O. Peterson, Secretary, Tacoma Teachers’ Retirement Fund H. E. Ogders, Superintendent of Schools C. A. Danford, Secretary, Teachers’ Retire- ment Pension Fund Lucius T. Gould, Assistant, Secretary Retire- ment Fund Board. Arnold, Secretary-Treasurer, Pension Address Mobile, Ala Birmingham, Ala Canon City, Colo Colorado Springs, C Denver, Colo Greeley, Colo Pueblo, Colo City Hall, New Haven, Conn 905 Delaware mington, Del Atlanta, Ga Avenue, Wil Augusta, Ga Savanneh, Ga 650 8S. Clark Street, Chicago, I 602 N. Madison Peoria, I) City School Administration Building, Indianapolis, Ind 912 N. 9th Street, Terre Haute, Ind Des Moines, Iowa Atchison, Kans Avenue, Parsons, Kans Topeka, Kans 119 E. Maxwell Street, Lex ington, Ky 742 S. 22d Street, Louisville, Ky. Newport, Ky Municipal Building, New Or leans, La 211 Washington Street, Cum berland, Md Baltimore, Md Towson, Md Omaha, Nebr Manchester, N. H 25 Auburn Street, Nashua, Municipal New ‘ork City, Wilmington, N. C Portland, Oreg Bristol, R. I Building, Newport, R. I City Hall, Providence kl Charleston, 8. C Chattanooga, Tenn Chattanooga, Tenn Nashville, Tenn 1005 Nolan Street, San An tonio, Tex 311 City & County Building, Salt Lake City, Utah Mason Building, Bellingham, fash Everett, Wash Everett, Wash 843 Central Building, Seattle, Wash | Administration Building, Spo- kane, Wash | Central School Builidng, Ta- coma, Wash Parkersburg, W. Va Administration Building, 2125 Chapline Street, Wheeling, a. Cor. 10th and Prairie Streets, Milwaukee, Wis The above names and addresses were supplied by the superintendent of schools of each city or county having a teacher retirement system or by secretaries of these local retirement systems. [125] Roll Call by States as to Plans Affecting Retirement Legislation To secure a nation wide survey of plans now under way relative to the enactment of teacher retirement laws or the modification of previous retirement legislation, letters were sent to state superintendents of schools and to secretaries of state and local teacher retire- ment systems. To secure additional informa- tion in some cases letters were also sent to secretaries of state teacher associations and chairmen of state and local retirement com- mittees. Below is presented a brief summary of the information, secured from one or more of the above sources, relative to plans affectinz retirement legislation. Alabama.—No state retirement law is in effect in Alabama. No plans for initiating retirement legislation have been reported. Arizona.—A state wide retirement law is in effect in Arizona. No report has been made of legislation planned for its modifi- cation. Arkansas.—There is no state teacher retirement law in effect in Arkansas. No attempt has formally been made by the Ar- kansas Education Association to secure the passage of such a law. At the present time, however, there is a growing interest in retire- ment legislation. The teachers have secured the interest and cooperation of the state super- intendent, and have drafted a retirement bill for presentation to the legislature in 1927. Mrs. Birdie V. Lambright, of Little Rock, Arkansas, is chairman of the committee on retirement. California. —A state wide teacher retire- ment law is in effect in California. It will probably be necessary at some future time to modify the law in order to put it on a more substantial basis. However, as further experience and information relating to law are necessary, no legislation will probably be attempted at the coming session of the legis- lature. A retirement system for the city em- ployees of San Francisco was established in December 1925. The city of Oakland is preparing to adopt a similar plan. Colorado.—There is no state wide teacher retirement law in effect in Colorado. The present state retirement law affects all cities of the first class. A committee of the Colo- rado Education Association is making a scien- tific study of the retirement problem in an effort to work out a satisfactory bill to pre sent to the people of Colorado. Appropria tions were made by the state board of directors as well as cities to defray expenses of the committee on retirement. This committee j; now working in cooperation with the Colorad» Education Association’s Committee on Schoo! Legislation. It is planned to have the new bill apply to teachers other than those in the first class districts. For additional informa tion concerning the activities of the retirement committee see: Colorado School Journal, Jan- uary 1926, Vol. 41, p. 56; April 1926, Vol, 41, pp. 5-10, 26; May 1926, Vol. 41, p. 5. Connecticut.—There is a state wide teacher retirement law in effect in Connecti cut. In 1925 legislative amendments were made to the state law affecting the method of contributions from the state and raising the minimum allowance for service, retirement. and disability. Delaware.—There is no state teacher re- tirement law in effect in Delaware. A bil! for a Teachers’ Retirement Fund was intro duced in the 1925 session of the Delaware General Assembly, and was passed by the Senate. This fund, however, was not based upon the necessary actuarial data. It decided to begin collecting the material re- quired for proposing a sound state wide retire- ment system. Cards were circulated amony the teachers to secure the required informa- tion, and were then forwarded to the Carnegie Foundation for analysis. It is possible that this work will result in a proposed state wide teacher retirement law. John Shilling, of the state office, Dover, is in charge of the movement. District of Columbia.—A retirement sys- tem for public school teachers in the District of Columbia was established January 15, 1920, by the 66th Congress as Public Docu ment No. 111, H. R. 5818. A bill amending this act was introduced as H. R. 10051 into both Houses of Congress on March 5, 1920. The bill passed the House and Senate, and was approved by the President on June 11, 1920. The former law was changed in several re spects : 1. The contribution from the District govern- ment to the annuity fund is increased from $10 pe! Was [126] seid > ati to pl: m of be in annum for each year of service on the part of the vetired teacher to $15 per annum for each year of service on the part of the retired teacher not to exceed forty years. 2? The minimum retirement allowance was raised from $420 to a computed amount which will ap- proximate $600. 3. The maximum salary upon which estimates are made was increased from $1,500 to $2,000. to pre- ropria- rectors of the ittee js lorads School Florida.—Florida has no state teacher ie new retirement law. A teacher retirement act, in the introduced at the 1921. state legislature, forma tailed of passage largely because its terms were not satisfactory to the teachers of the state. No definite legislative plans are reported for the immediate future. The problem of teacher retirement is a difficult one in Florida, due to the high percentage of turnover among the teachers of the state. Georgia.—There is no state teacher retire- ment law in effect in Georgia. A proposed state teacher retirement plan has been drafted by teachers of Chatam and Savannah. An outline of the system may be found in the February 1926 issue of Home-School and Community, p. 20, published by the Georgia Education Association. Hawaii.—A retirement system for the em- ployees of the Territory of Hawaii, including teachers in the public schools, was approved by the Governor, April 1925, and began oper- ation on January 1, 1926. The plan is said to compare in liberality with the newer sound plans of other states and was established on a financially sound basis. Idaho.—There is no state teacher retire- ment law in effect in Idaho. A committee of the Idaho State Education Association has begun collecting data from teachers to be used in proposing a sound state retirement law. Illinois. —There is a state wide teacher retirement law in effect in Illinois. Local teacher retirment systems are also in operation independent of the state retirement system. There has been no report of legislation planned to date to modify the present retire- ment law. Indiana.—I ndiana has a state wide retire- ment system in effect, and the only plans reported as to its modification are to broaden the field of investment. The separate system established for Indianapolis has proven finan- cially unsound, and a majority of the teachers have voted to go into the state fund. As some of those not in favor of the move have enjoined the action, the outcome is uncertain. rement |, Jan- y Vol. wide inecti- were 10d of gz the ment, *r re- \ bill intro- ware y the based Was l re- etire- nony rma- negie that wide , , or { 127] Iowa.—There is no state wide teacher retirement law in effect in lowa. A pension and annuity retirement system is in operation in the independent district of Des Moines under a permissive statute of the School Laws of Iowa. An act (House File No. 327) permitting any school district having a population of 75,000 or more to establish, sche ui | under regulations of the new act, a pension and annuity retirement system for the public school teachers of such district, and increasing the maximum rate of assessments on teachers’ salaries, was introduced in the state legisla- ture in 1925. An actuarial investigation was conducted in the state in 1923 and a bill providing for a state wide teacher retirement system, based upon this investigation has been drafted. Kansas.— Because of the rapid turnover in the teaching profession, it has been difficult to create a sentiment in favor of securing a state wide teacher retirement law for Kansas. A special committee, Assistant Superintendent F. L. Schlagle, chairman, was appointed by the Representative Assembly to study the problem of group insurance. The committee arrived at the conclusion that the greatest im- mediate possibilities are offered by group insurance. The committee is now working in order that a workable plan may be presented at the next general meeting of the state teachers association. Kentucky.—There is no state wide retire- ment system in effect in Kentucky. Certain cities are operating retirement systems under a recently amended state law referring to cities of the second class. A bill to provide pensions for public school teachers who had served twenty years (House Bill, No. 412) passed both the House and Senate in the 1926 legislative session but was vetoed by the Gov- There is a general feeling in Kentucky that a well-prepared teachers’ retirement bill should be presented to the next legislature. Louisiana.—Louisiana has no state wide retirement law in effect. A Committee on Pensions, P. C. Rogers, of Homer, Louisiana, chairman, has been working on the problem for several years. The committee has had as its objectives: (1) To arouse, create and stimulate favorable sentiment among teachers, voters and legislators for the enactment of a sound retirement law; (2) To prepare a tentative bill for the consideration of the ernor,. state legislature. In accordance with this program, the committee made a study of the methods used in several states, and reported on the features of the lowa State Teachers’ Annuity Plan, in order that the teachers and general public in Louisiana might be informed as to the essential features of annuity plans. However, it was decided not to attempt to introduce a plan for a retirement system at the legislature now in session. Maine.—A state wide teacher retirement law is in effect in Maine which seems satis- factory. No plans for any future retirement legislation have been reported. Maryland.—A state law establishing a pen- sion system for public school teachers is in et- fect in Maryland. E. W. Broome, Rockville, Maryland, is chairman of a committee that is arranging to have a new teachers’ retirement bill prepared for Maryland. The City of Baltimore recently secured the enactment of an “Employees’ Retirement System of the City of Baltimore” which, going into effect Janu- ary 1, 1926, superseded the former system. A special retirement fund is in effect in Baltimore County, financed entirely by the teachers of the county; also in Allegany County. It is the intention of the State Teachers’ Association to present a new pension bill to the legislature ot 1927, for the Counties of Maryland (Ailegany and Baltimore Counties optional, since they may prefer present plan) worked out on a sound actuarial basis. Massachusetts.—Some changes in the Massachusetts state wide retirement law were recommended to the 1926 legislature (as Senate—104) by the Massachusetts Teachers’ Federation. These may be presented again to the session of 1927. Recommendations concerning teachers retired prior to the enact- ment of the present system and the establish- ment of a contributory system for all public employees reported by the Massachusetts Pension Commission in February 1925 and referred as Senate Document 340 to the 1926 legislature are to come before the legislature of 1927. Michigan—A state wide retirement law is in effect in Michigan. No plans for imme- diate legislation are reported. The objectives of a movement toward revision of the present law are being worked out by a special com- mittee, J. P. Everette, Kalamazoo, chairman. Another committee appointed by Mr. Ever- ette, headed by Prof. J. B. Edmonson, Ap, Arbor, is to draft a proposed law and presen; it for discussion. Minnesota.— Minnesota has a state wid teacher retirement law established in |9|5 A bill was introduced at the 1925 legislature that attempted to place the fund on a sound financial basis. A few minor amendmen: were made to the law but the bill failed o; passage. It will be presented again to the 1927 session. Mississippi.—There is no. state wide teacher retirement law in effect in Mississi; t Supt. H. M. Ivy, president of the Mississi; Teachers’ Association, was in charge of the effort to secure the passage of a retirement law at the recent legislature of 1926. ‘The bill was defeated, partly because the united support of the teachers had not been secured Much of the opposition encountered cam: from rural teachers whose tenure was uncer tain. Local and special measures were passed giving seven of the largest towns full authorit to retire teachers on part time. Missouri.—There is no state wide or state law relating to teacher retirement in effect in Missouri. No report has been made of pro posed retirement legislation. Montana.—A state wide teacher retirement law is in effect in Montana. However, as it is not on a financially sound basis, the State Teachers’ Association is undertaking a revi sion of the law, to present to the legislature of 1927. Nebraska.—There is no state wide teache: retirement law in effect in Nebraska. ‘lhe city of Omaha operates a teacher retirement under a state law compelling cities of the first class to establish such a system. No plans for retirement legislation to affect the present system are reported. Nevada.—Nevada has a state wide teacher retirement law. No definite plans for future retirement legislation are as yet decided upon, except that an attempt is to be made to find a means of increasing the revenue of the sys tem. The committee that is to make a stud) of the problem and report to the State Teach ers’ Association has not yet been full) organized. New Hampshire.—New Hampshire ha: no state wide teacher retirement law in effect. A state law forbids the use of funds by the state for pension purposes, and a pension |aw established some time ago was declared uncon- ft) t yf , [128] Dali ieee bon, Ann Se . oes ’ — am situtional. ‘tue State Teachers’ Association Present — : , = appointed a committee, W. O. Smith, Head- master, Keene High School, chairman, to dis- cuss the situation and collect information from other states on retirement problems. New Jersey.—A state wide teacher retire- ment law is in effect in New Jersey. The following concerning this law is taken from 4 statement dated April 8, 1926, signed by Charles B. Dyke, the State Teachers’ Association : We have received so many letters of congratu lation on our success with reference to our Pension and Annuity Fund appropriation this year, and so many requests for the points at issue, that I ven ture to state briefly, the situation that we have had to meet. 1. The New Jersey Pension and Annuity Fund Law was enacted in 1919. It is built on an actu ’ arial basis, under the control of a Board of Trus 1 came ' tees. Contributions are made by teachers on the basis of their age at entrance, and an amount sufficient to produce an annuity equal to that based on the teachers’ contribution, is to be set and* invested annually by the State. The sum required from the State is determined by the certification presented to the Comptroller of the State of New Jersey by the Board of Trustees of the Pension and Annuity Fund, which amount is arrived at by the official Actuary. The law requires that the Comptroller shall pay such amount directly to the Board of Trustees. 2. This year the Appropriation Committee of the Legislature reported an amount of $1,400,000.00 less than the amount certified to the Comptroller. 3. Immediately upon the report of this Commit- tee the New Jersey State Teachers’ Association requested and secured a public hearing before the Legislature. 4. The point at issue, was that the Comptroller and Legislature should obey the law, and appro priate the amount certified. 5. The teachers were represented at the hearing by the ablest counsel in the State, by Actuaries, and by a Life Insurance Company offic’al. 6. Mass Meetings were held by teachers in every part of the State, which petitioned the Legislators to appropriate the full amount certified. 7. A campaign of publicity was carried on in all newspapers of the State, and New York City. 8. Local representatives were appointed to inter- view every Legislator, over the week-end. 9. The result was that the full amount appropriated. New Mexico.—New Mexico has no state teacher retirement law. A special act of the 1925 legislature granted a pension to we teachers who had taught twenty-five years in ae the state institutions. th i New York.—New York State has a state wide teacher retirernent law. first plans esent acher uture 1pon, find - sys tudy -ach- fully was law con- [129] effect in New York City. ported for legislation affecting either of the No plans are re systems. North Carolina. teacher ‘There Is no state North No steps have been taken toward retirement law in effect in Carolina. securing such an act because of the pressing the other fields ot need for legislation in education. North Dakota. teacher retirement law in effect in North Da kota. the system after an actuarial survey, under taken by Dr. H. L. Rietz, of the State Uni versity of Iowa, has been completed. Ohio.—Ohio has a state wide teacher retire ment law. There is a_ state- wide Some changes are to be considered in From reports received, the present law seems satisfactory, and no plans are in progress for legis!ation to modify the present system. Oklahoma. retirement law in effect in Oklahoma. There is no state wide teacher There is no report of plans for retirement legislation in this state. Oregon. —Oregon has no state wide teacher in effect. authorizes certain districts to establish an an nuity fund for retired Portland retirement fund this ‘Teacher Retirement of retirement law A permissive law teachers. law. the Oregon State Teachers Association drew up operates a under A committee on a retirement bill, but was unable to get it in- troduced during the last session of the Oregon legislature. Another committee, J. F. Elton, Principal, High School of Commerce, Port- land, Oregon, chairman, is working on the bill this year and an attempt will be made to introduce the bill at the next legislative session. Pennsylvania.—Pennsylvania has a state wide teacher retirement Amendments affecting the status of present teachers reinstated and those who had with drawn from service prior to the date of en actment were passed by the state legislature in 1925. for further retirement legislation. Rhode Island.—Rhode Island has a state wide, non-contributory teacher retirement law in effect. An amendment raising the minimum pension to $500 and the maximum pension to $700 was passed by the 1926 legislature. No report has been made of plans for future re- tirement legislation. law. emplovees, There has been no report of plans zee : Eee ee South Carolina.—There is no _ state teacher retirement law in effect in South Caro- lina. Nothing definite has been reported in the way of plans for retirement legislation. South Dakota.—There is no state teacher retirement law in effect in South Dakota. An attempt was made in 1925 to have the legis- lature authorize the appointment of a com- mittee to draft a retirement bill. Although such action failed, the work will be revived at the session of the legislature in 1927. Tennessee.—Tennessee has no state wide teacher retirement law. There is a provision allowing the county and city boards to es- tablish a Teacher Retirement Fund. No evidence appears of any proposed legislation in this field. Texas.—Texas has no state teacher retire- ment law. The Texas State Teachers Asso- ciation is sponsoring a movement to secure such an act. A committee, F. B. Clark, Col- lege Station, chairman, has been appointed to draft a retirement bill for presentation to the state legislature. For report of committee see Texas Outlook, January 1926, pp. 52-54. Utah.—Utah has a state retirement law that affects cities of the first and second class. Salt Lake City is the only city that has taken advantage of the law. An act passed some years ago governing the teachers outside the cities of the first and second class encountered so much opposition from the teachers that the law was repealed. There are no plans reported for legislation modifying the present system. Vermont.—A state wide teacher retire- ment law is in effect in Vermont. No plans seem to be initiated for future retirement leg- islation. Virginia.—There is a state wide retire- ment law in effect in Virginia. This law has not proved satisfactory. The Public School Teachers’ Retirement Fund Committee, Miss Cornelia S$. Adair, Richmond, Virginia man, has been studying the problem of reti;. ment allowances. A plan for a retiremen: fund bill was recently prepared and print; with the assistance of the Carnegie Found). tion. A year is to be given for a discussio; of the proposed plan in order that the teacher throughout the state may be familiar with j, provisions. The bill may be submitted to th legislature as an amendment to the existing law. Washington.—Washington has no state wide teacher retirement law in effect. How. ever, the cities of Bellingham, Everett, Seart\e Spokane, and Tacoma, operate retirement s\s- tems under a state law affecting certain cities No definite report has been made of proposed retirement legislation affecting the present |a\ West Virginia.—There is no state wide retirement law in effect in West Virginia. 4 state retirement law authorizing the mainte. nance of a retirement system in certain dis tricts has been taken advantage of in Parker: burg and Wheeling. Nothing definite has been reported as to plans toward modifying the present law. Wisconsin. —A state wide teacher retire. ment law is in effect in Wisconsin. This law has been upheld by the Supreme Court of Wisconsin in disputes concerning its constitu tionality and the interpretation concerning payable death benefits. No plans as to future retirement legislation are reported, although some minor changes affecting administration may be asked for. Wyoming.—There is no state teacher retirement law in effect in Wyoming. The problem of teacher turnover is so great that the establishment of a retirement system wil! be difficult to accomplish. No definite steps have been taken concerning retirement leg is'ation. causes. ceedings, N. E. A., 1919, p. 538. T IS ESSENTIAL, when the great need of th: country is to attract good teachers to the schools, to consider carefully the economic conditions involved. persons in a profession; they must have some prospect of protection against the major risks of life, the loss of earning power through disability or old age; at the same time the educational! interests of the public must be safeguarded against teachers who become inefficient from the same The only solution is a system of pensions that will provide generously for the teacher, will be fair to the public, and will promote the efficiency of the schools.—Addresses and Pro Salaries alone will not keep = [130] leaden creamer As Ye nia, ¢ hair of retire. etirement d printed Founda. discussion * teachers > with its ed to the existing no state How- ’ Seattle nent sys- in Cities, Proposed ent law, ite wide ima. 4 mainte- ‘ain dis Parkers. lite has rdifying retire- his law Durt of onstitu cerning future though tration reacher The it that mn will > steps it leg- a. | eep of nal me er, ro = see ninemypeirew sss Tabulation of Main Provisions of Eleven Teacher Retirement Systems A tabular statement listing the main provi ins of eleven teacher retirement acts or pro- posals is given on pages 40 to 51. The tabu- lation aims to present only such information as will make clear the principal features of the separate systems. ‘Those desiring additional information should consult the original acts, references to which are made in each of the tabulations. The eleven included in the tabulation do not constitute a complete list of the sound retirement systems of the country. Those included, however, are based upon modern theories relative to retirement measures legislation. Interpretation of Tabular Statement To make clear the meaning of the headings of each column in the following tabular state- ment the Pennsylvania retirement law is taken as an example. Below is presented a detailed explanation of each column head of the tabular statement as it relates to the Pennsylvania state wide retirement law. This law is the first one presented in the tabular statement on page 40. Column 1. Where act is in force and date effective. This law operating in the State of Pennsylvania came into effect July 1, 1919. For further details as to its enactment, see Article LVI; (5602) in The School Law of the Commonwealth of Pennsylvania cited in column 2. Column 2. Where act is available. For those wishing to refer to the text of the Penn- sylvania Teachers’ Retirement System see: The School Law for 1925 of the Common- wealth of Pennsylvania, issued by the Depart- ment of Instruction, Harrisburg. The provi- sions are contained in Article LVI, Sections 5601-5619; or refer to pages 233-252 for said Article. The act is also printed in pamphlet form as No. 343. Column 3. Method of administration. The administration of established system involving such matters of funds, determination of bene- fits, publication of reports, is in charge of a board of seven members. For detailed de- scription of the personnel and functions of the board, see Article LVI; 5604A in The Schoo! Law cited in Column 2. Column 4. Expenses of administration borne by. The state meets all the expenses of administering the fund; that is, all over For details, refer to citation given. Column 5. Membership optional or com All employees in the Pennsylvania head costs. pulsory. public schools must become members of the Teachers’ Retirement System. State's ment fund income; for teachers entering seri | law. In order to Column 6. contribution to retire- ice since enactment of guarantee state aid to future annuitants, the state makes a semi-annual deposit on the sepa- rate account of every teacher who entered the Pennsylvania school system since the estab- lished law was passed. The deposit is sufh cient, according to the rates adopted by the board, to provide the teacher when retired an allowance for each year of service equal to go of his final salary (the average salary for the ten years preceding his retirement). State's ment fund income; for teachers in service at The state assumed Column 7. contribution to retire- date of enactment of law. the payment for service rendered before the retirement system went into effect. A reserve was created by semi-annual payments of 2 per- cent of the total payment made to members of the retirement system for the preceding school year. This payment was to be con- tinued until the reserve on hand equalled the present value of the obligation incurred for prior service. Teachers’ contribution to To divide Column &. re- tirement fund income. the cost between employer and employee, the teacher is assessed a percent of the rate being determined by the board. This certain his salary, is computed so as to provide the teacher at retirement an annuity equal to go of his final salary (the average salary for the ten years preceding his retirement) for each year of service since the system went into effect. Column 9. Conditions for superannuation retirement: Age. The teacher must be at least 62 years old to be granted service retire- ment benefits. However, he is compelled to retire at 70. Column 10. Term Conditions for superannuation retirement: of service. Before he is [131] granted service retirement benefits, the teacher must have served at least ten years in the public schools. Column 11. Provision for irregular retire- ment in the case of disability: Conditions. If a teacher becomes incapacitated for service before he has fulfilled the conditions for serv- be granted disability benefits, providin» not over age 62, and that he has giy, years of service. Medical examina: required to substantiate his claim. Column 12. Provisions for irregular ment in the case of disability: Allo: For disability benefits, the teacher rece; ice retirement (see columns 9 and 10), he may TABULAR STATEMENT OF MAIN PROV ision allowance from the fund, secured | Where act is in force aid date effective Where act is avail- able Expenses of edminis~- tration borne by Merbership | optional or compulsory State’s contribution to t For teach- ers enter- ing service since en- actment of law For teach- ers in ser vice at dat¢ of enact- ment of law Teacher's contribu- tion to re~ tirement fund income ace Conditions for supe Y retirement — Term of service i 7 Pemnsylvania daly 1, 1919 article LVI: 5602 State con- tributes semi-anum- elly to recerve. procures 1/160 of final of service. State con- tributes |semi-annu- ally to l.0% of total cam pensation ipaid to all contri- butors for ervice in the preceed- ing year. urtiole LVI: (5606) 6. artiole Lvl; (6613),1. weuw York City August 6, 1917. Seo. 11992 A. Certificate of Mem ership and of Prior Servioo al- lowance, page 1. Section 1092 PF 2. Assessment, sufficient if paid m- til teach- er is 65, + his aver ape salery. In case of ennuity to 25% of his aver age salary. Section 1092 7 5(e) (2) (2),(3) new entrants! Section 1092; K l(a) ,2 36 years. In case of new en- trants, service outs ide city not over 15 yre. Section 1092 B(b): El; (bd) .(c)- article LVI; (5613), —— | 10 year | city se | vioe. Uedical | examina’ Section rate’s and his own contributions, with inter- ment in the case of death. If the teacher dies et thereon. This allowance equals 4% of before regular retirement under the act or al salary (the average salary for the before he has received the sum payable to his hy IS ten years preceding his retirement) multiplied credit, the contributions which he has made by his number of years of service; the mini- to the retirement fund and the interest accu- mum disability allowance is 30 percent of mulated thereon, go to his estate. the final salary. Column 14. Provision for irregular retire- Column 13. Provisions for irregular retire- ment in the case of resignation or dismissal. SIONS OF ELEVEN TEACHER RETIREMENT SYSTEMS a Ss = eran- po | bt | ovisions for irreQular retirement in the Retirement allowance Retirement Provision | Liability Portrlity } ~ ia case of peid by state allowance regerding jassumed for |tavle and 20 —Sissbdility Death esignation /fo teachers fo teachers | from teach- teachers | teachers fate of —_—_— or dicmis~- entering in service er’s con- retired with prior interest conditions jAllowance cal service at date of tributions under f service since enact- | enactrent mer system —— ment of lew of law i 11 12 13 14 15 16 1? 18 19 20 D "8. 10 years Allowance /Estate Teacher re-| State de- State de- Annuity Teachers The heavy MeClin- service; secured by jor bene- |ceives his | posits pro-/| posits an purchased receive liabilities tock's teacher not}; accumm- ficiary |accwmlated| cure an allowance by teach- from state| scerued werd and 4%. ower 62; lated com- [receives |savings or | allowance of 1/160 er's ac- an anmi- | paid by medical tributions | teacher's | actuarial of 1/160 of final oumlated | ty of 1/80| state and examination{ of teacher |accum- equivalent | of final salary for savings. of final losal dis- and state lated in an salary for each year Bquel to salary tricts with amounting savings. |annuity. each year of service 1/160 of for each out cost to to 1/90 of service.| plus a final year of employees. of final further salary for | service. Payment salary allowance each year distributed miltiplied of 1/160 of service throuch 30 by mumber of final since en- years, made years ser- salary for actment. up by pay- vice. Min- each year mente to imum dis- of prior reserve of ability service. of of total allowance compenration 30% of fi- -aid to mem nal selary. here of rye tem for rer4 vice in the Informa- oreced ing tion se- year. Leaf- onrea let on "New from Seco Ame ndme nts retory of | article article article article article article article article te State Pa.School ; | LY: LVIs LVI: LVI: LY: LVI: LYIs LVI: School Em | umployees | (5613},2. (5615),5. (5622) ,5. |(6612),1. (5614), (5614), (5608) ,6; (5614) ,d- | Ployees Retire- naam | } 3(b)- 3(b) (oe). (6634), Retirement nent ; S(e)e Law. Board. of E years 20% of aver+ Teacher's Teacher's | Allowance Allowance Actusrial No data | Fo data No data city ser age salary. | accumi | sccwur- amount ing emount ing equivalent | Vice. If apre- | lated say lated to + of to $ of of teach- Uedical sent teach~/ ings. If savings. his aver- his aver- er's accumu> examination.| er, an 65 or eli- age age lated sav- additional | gible to salary. salary, ings in an allowance service plus pen- amuity. to cover retirement sion com prior ser- | receives puted at vice. Max- | amount 1/35 of imam 50% ermal to 25% of of average | earnable average selary. salary salary Alse ac~- for 6 mo. for each tuerial preced- yeer of eouivalent ing prior ser- of acoum- | death. vice. lated ; savings in 032 an annuity. . Section Section Section | Section | Section Section Section m | 1092 Ll. 1092; M1; | 1092 N(a)} 1092 J 1,) 1092; Kl 1092 K 1 1092; M 2. if (a), (c)s 2.) (d). _ (d). (bd), (0) — bd)» lf a teacher resigns or is dismissed from teach- ing service before retirement, the contributions which he has made to the retirement fund with the interest accumulated thereon, are returned to him. Column 15. Retirement allowance paid by state to teachers entering service since enact- ment of law. A teacher entering the service after the existing retirement law became effective, receives, upon retirement, an allow- ance from the contributions made by the state to his account. This equals go of his final salary for each year of service. ; . ; Column 16. Retirement allowan-, state to teachers in service at dati ment. Teachers employed in the sc! tem at the time the retirement lay effective receive an allowance secured state’s contributions to their accoun: equals 4 go of their final salary (the salary for the ten years preceding his ment) for each year of service. Column 17. teachers’ Retirement contributions. years h] disal . “ ithd al!owanc: a systen At retireme: | annul! teacher receives an annuity to which ¢| of his contributions to the retiremen; TABULAR STATEMENT OF MAIN PROVISIOns | Where ast is in force ad date Bupenses of adminis- tration dorne by effective State's contribution to For teach- ers enter= ing service since en- actment of ers in ser- Wice at date | of enact- of For teach- Conditions for superan- tribution and length of service. Mexigun 200% of teacher's deposit. Chapter 42,3 42.45, 42.61, (2), (2). Teacher de- posits 5% of total com (to receive pensation teacher's since enact~| deposits. ment. As- State's ressments deposits under old not paid system given mtil credit. teacher reaches age 50. No re- quired age No re- quired term of service, | of retir | ment as- sooiatio Chapter 42; | 42.48. (2), (3). with prior service, amounting at the inaug the e interest thereon entitles him under ration of system to a considerable the It was decided to meet the deficiency adopted by the board. ‘This annuity sum s to Yeo of his final salary for each was assumed wholly by state and local service since the law went into effect. districts. 18. retired under former system. by a yearly payment to be continued over a fund ot two percent of the entire compensation made Column Provision regarding teachers Teachers 62. period of thirty years to a reserve vears of age presenting 20 years’ service, or disabled teachers with 15 years’ service, who withdrew from teaching before this retirement eystem became effective, annuity equal to to members of the system for service during the preceding year. Column 20. Mortality table and rate of McClintock’s table of life expect- the 4 rate of the funds were adopted by the may receive . an 1%, of their final salary interest. for each year of service. and interest on Column 19. Liability assumed for teachers ancy percent retirement board of Pennsylvania. with prior service. The obligation to teachers OF ELEVEN TEACHER RETIREMENT SYSTEMS—(Continued) —— en! --—_—— [ Prowisions for irreguler retirement in the [ Disability | Death Retirement allowance __| Retirement _ paid by state fo teachers Provision rogarding teachers retired under for- mer system |} Liability assumed f teachers with prior | service Mortality tadle and rate of interest i | allowance To teachers | from tead- entering in service | er'’s con- | service | at date of tr ibut ion: since evact~ enactment ment of law; of law Resigoation or dismissal | Conditions Allowance } . —_—-~ u 13 14 15 2 ~ = i oe 18 19 | Medical ezamina~ | tions | Teacher } not over | 80. Five | years @ | member j of retire- | ment as- | sociation. Beneficiary or estate receives doth teach- er's and state's ac- oumlated deposits. Chapter 42; 42.50 (1). Annuity purchased by teach- er's ac- our: lated savings plus state's deposite, payable at age 50 unless teacher is dis- abled. Pension purchased by accwmlated deposits of the state. Chapter 42; 42.49 (3). Armomuity purchase d by teach- er'’s acé- cum lated savings. Ohapter 42; 42.49 (2)- | | Teachers receive aomities granted under old evetem for life. Chapter 425 42. 51 (5) Jane 30, 1920 the Mability was esti- mated at over $10,000,000 State created a contingent, reserve fund to | provide for this. 1924, III Determined by board. Rate to provide benefits as noar to actual cost as possible. Rate in effect at pre- sent date, oat. Chapter 42; 42.34 Report of Anmaity Board for fiscal years end- ing June ©, 1922, 1925, 1924, X¥- ae i TABULAR STATEMENT OF MAIN PR: LON S iL. State's contribution te ae Where act is in | Where act thod of pxpenaes of | Membership Teacher's force and date | is avail- jadministray adminis- |optional or! por teach- | Por teach- contribu=- — effective adle tion tration compulsory iers enter- ers in ser (tion to re- - borne by ing service Wice at date | tirement : since ¢a- of enact- (fund income actmont of ment of law lew Jj 2 3 4. 5 6 7 8 " Vermont General feachers’ | State Optional [State makes |State mtcheq Teachers Yomen 60; [50 roars of | duly 1, 1919. Laws of retirement appropria- | teacher's ersessed not | men 65. te “ 1918 of /poard of tions for contribution} to exceed 5% | ; the state (five mem- fund to pro-| in annual of salary, ; of Vermont |bers. vide pension) appropria- rate fixed ” relating equal to an-| tion; ad- amnually by to the muity pur- | ditional sum| the retire- " Dept. of chased by appropriated | ment board. ot Education teacher's for present | Kinimm §16, | r a with amend+ acoumlated | teachers. maximum $100 | t + ments savings. yeerly. ar 5 hs to 1925. | utive. Chapter | } 56; Hoe | } 57, acts | of 1919 replacing sections 1220-1221 Chapter 56; Pe 23-32. No. 57 Acts | of 1919 Replacing sections 1220-1231; Soo. 2 from Chap. 56; | Chap. 55; | Chap. 56; (Chap. 56; Chap. 56; Chap. 56; Chap. 563; | Chap. 56; General Laws Noe 57,Acta Noe 57, No. 57, No. 57, No. 57, Noe 57, Acts No. 57, No. 57, acte} of 1918 with of 1919, Acte of Acts of Acts of Acts of of 1919 Acts of of 1919 amendments Co Be 1919, Sec.) 1919, Sec. /1919 1919, See. Seo. 8,(1) {(1919, Sec. Sec. 10. to 1925. 6 (3). 3. Sec. 6,(S) |6,(3) Sec. 10. 13. | A proposed Outline feacher's | State Compulsory t equal to teach- 5% of cur- (Optional | Five yeors plan for of- and dis- fretire- for teach= ler's contributions. | rent sal- [60 to 70; | of service ficers and cussion nent ers 25 arye hiin- bompulsory | in the teachers in of plan hoard of yeers of imam $16, at 70.) state, } the Virginia in Bul- = seven age or with 9/10 pro- public schools, jletin 17 jw ders. 5 years of vides re- | | that is being of the teaching tirement studied Carnegie experience ; benefits, tory to revision) Founda- optional foz 1/10 dis- of the existing [tion for teachers ability ° the ad- under 25. benefita. | vancement - of Teach- ing, “Re- tiring Al- lowances | for Offie cers and Teachers in Vir= ginia Pud- lic Schoold | by Furst, | Mattocks & Savage, 1926. | | | | ] Bulletin Bulletin | pulletin Bulletin 17, p. 5, Bulletin Bulletin (| Bulletin 17, pe 4 | 17, pe 4, | 17 pe. 4- IIIs Be 17, pe 5, 17, pe 8 | 17, De 4% Ig By 1. I; By, 2. | 5, Ile 11m; 41, IV; A 4. Il; 4 De | [13c] Chap « No. 57 Acts ¢ 1919, feo. ] State’ of phx clans year | versh in sy SIONS of ELEVEN TEACHER RETIREMENT SYSTEMS—(Continued) De 56; 57, dote 919 Retirement allowance T t the [— Prov sions for —— algae poid by state Retirement | Provision | Liability | Mortality —___—_ama_£ allowance | regarding [assumed for tadle and Disabdility Death Resignation |To teachers | To teachers|>... teach| teachers teachers rate of ae Allowance or dismissal| entering in service [outs con- | retired (with prior | interest | service | at date Of |i -iputions | under for-| service | | | since enacts enactment mer anal | met of law| of law : | a —+- — os Bt 13 4 15 = a A a eae ESSE 6 years Jananity se- | If a member If 1 member (State Annuity Anmity | “one Acorued Meolintock™ | service. joured from jof associe- of asrocia~ |matohes equal to ourchased | lfasilities| with in- | yiedicel teacher's tion less tion lese the an- that pur- [by teach- fund crested ter terest at exzamina~ total sev- | than 6 than 6 years |nuity par- | chased by jer's sc- ty board of| 32 tion may [ings and years, the receives his|chased by teacher's oumulated Vermont | be re- accumulated | teacher's total con- teacher's accum= savings. state } cuired. contribu= eetate or tribution acoum-= lated sav~- teachers’ | - tions of doneficiary with 4% lated ings plus retirement | the state receives on- interest. If/savings. arbitrary fund (See- | { with ad- ly his cam a@ member 6 sum fixed tions 1220- | ditional tribution years, re- | by board. | 1251). Pund | allowance with interest | ceives | | otal not | drawn upon determined jat 4%. If a teacher's | | to exceed to make up | by board. member 6 and state's | | # his aver- state con~ Total not years, es- contribu= | | age annual tributions to exceed (tate or bene~ | tion to | salary en accounts & average ficiary re- account | throughout of members. | annual sal- | ceives total without in- | his entire | ary during /acoumlated terest. period of entire peri-|sevings of service. } od of ser= (teacher and vice. contribution from the state. Chap. 56; |Chap. 56; Chap. 56; Chap. 56; Chap. 56; Chap. 56; Chap. 56; Sece 19. Sec. 12. No. 57, Noe 57, Noe 57, No. 57, No. 57, No. 57, Ko. 57, Acts of Acte of Acts of Acte of Actes of Acts of Acta of 1919, 1919, 1919, Sec. 1919, Seo. {1919, Seo. | 1919, Seo. | 1919, Sec.) feo. 14. |Sec. 14. 15; 1,2,3. 15, (1). 6; (3). 8: (3) 12: (1). | Sec. 13. Statenente| Annual dis- (Prior to Prior to 5 Total con- | Total con-/| Anmity Pensions Member cre- | MoClintock™ of physi- jability 5 years years mem tributions | tributions purchased | from Re- dited with | with 4%. clans; 5 | benefit mombership, bership, of state of state by teach- | tirod his own and year mem jequal to } |momber 6 es- member 's toward re~ | toward re-| er's total) Tescliers’| the state's bership of ammity tate or bene- | accumilated |tirement. tirement. | savings. Pund con-/| accumleted in system.| payable were|ficiary re- contribu- Matches tinued. contribu- the average |ceives accum=/ tions to- annuity tions to contribu=- lated comtri- | ward retire~|secured by account un- tions made jbutions to- ment in \member ’s der old by state and/ward retire- quarterly contribu- 6ystem. members to |mont. $500 installmente |tions. word retire~|moximun. af~ after 5 ment contin-|ter 5 years, years the ued to age |member's ac- further 4% 60 plus ac- |cumlated sav-| of the ctmlated ings plus state's contribu- of state's contribu- tions to- accumilated tions to- ward retire-|contributians | ward re- ment bene- (toward retire-| tirement fits made ment milti- multiplied by member plied by mum | by the and state. (ber vears of number cont tinuous yeare con- service up t inuous to 25. service to 25 in form of an an- muity. Bulletin | ®ulletin Nulletin Bulletin Bulletin Bulletin Bulletin Bulletin Bulletin fulletiu 17, pelO, | 17, pe 17, pel2, 17, Pe 9, 17, IIIs 17, IVs We we Mel Wa Ga Gel Be te Ve 17, pe Ve I¥3 Co 10-11, | IV; D 1,26 IV; Be B, IV; a3. IV; A 3e Iv; Al. IVs At IV; A 5, Oe IV; Ce A 53. 2 ¥, Be [137 NDA Fs a? Pet enema TABULAR STATEMENT OF MAIN PRO _ — — = Where act is inj Where act (Method of | Expenses of Membership | State's contribution to | Teacher's | Condit tons uperan | force and date is avail- (administra~ -adminis- | optional cr) contribu= |__npation ret) -an ns | effective able | tion compulsory | For teach- | For teach- | tion to re-| tere | borne by ers enter- | ers in ser=| tirement | arb ing service|vice at date; fund income) , | | since en- of enact- | | actment of ment of | i i | we Lonel a E.R Lacie z ry lai 2 We Massachusetts | General Laws | Teacher's Compulsory | Annual appropriations Teacher as~ | Optional N re er July 1, 1914. | relating to /retirement | for new for payment of incurred |sessed from | 60 to 70 se ce | Bducat ion jboard of 3 | entrants. | pensions 3 to 7% of | (compulsory required, Bulletin of | members. salary, ac~ jat 70). except for | the Dept. of | } cording to | “present |Hducatione - | rate estab- | employees" |1921 Noe 9. lished by | w |Chapter 32, the retire- amounts to |p. 87-102, | ment board. | l | Law avail- Rate ef- | service jable in fective to | in Mass,, | booklet date 5%. the five | "General | Minimum $355 | of which Laws re- Max imum are e | lating to | #100. ntimous, ‘the Retire= \ment System | |far Public | School |Teachers." | | \January 1922, | | | | } | | | | Chapter 32; Chapter 15;|Chapter 32;, Chapter 32; Chapter 32; Sec. 93 (3)| Chapter 32; Chapter 52;| Chapter 52, Sec. 7: (1). Sec. 16 Sec. 9: (lhe Sec. 7. Sec. 9: (2) Sec. 10; | Sec. 1 Fy (1), (2). | (2), (5). T — Employees’ Re- | Chapter 411; |Board of Compulsory | City armmually contributes Deduction Optional No required tirement Sys- Acts of five for new en=/| a certain *% of the pay- | from salary 60 to 70 term of tem of the City | 1924; Ordi- | trustees trants roll to reserve fund. sufficient |(Compul-_ service of Baltimore nance 553, after 6 Aggregate t to to secure (sory at January 1, 1926.) Text and months ser-| provide benefits payable| at age 60 (70) | summery in vice and for the current year. an amuity “Report on employees Credit for prior service. eqial to a Proposed already in | "Present employees" to the pension| Retirement service. receive allowance equal | due for | Plan for Members of | that received had the service, | Employees exist ing system been in existence of the Teachers' at their appointment city of Ret irement Baltimore” Fiumd re- prepared by ceives pri- } | the Balti- vileges of | more Re~ new system | | tirement only upon | Commission, majority | 1925. vote for part icipa- | tion | | | | | | | Chapter Chapter Chapter Chapter 411; acts of Chapter Chapter | 411; Acts (411; Acts (411; Acts 1924; 411; Acts 411; Acts of 1924; |of 1924; of 1924; 553; Sec. 8; (3), e; of 1924; of 1924; Ordinance /|Ordinance | Ordinance Report, p. 14. Ordinance Ordinance No. 553; No. 553; No, 553; No. 553; No. 553; Sec. 5; Sec. 8; Sec. 3; Sec. 8; Sec. 6; 1 (1), (2) (5) (1) (1) a. [138] | Chapter Sec. 10 (8). Medical examina tion, ¥ | require } ment fo | those disable | from pe | formanc {of duty | Otherwi 15 year service Chapte 4ll; A Bm of 192 Ordina No. 55 Sec. 6 (4), ( a 4 i OF = provisi No t term of oe 20 years required Ce heel ez “ service; cept for teacher ™ der age 604 apter 32; Ce 10; Le (5). 4 mmbers' ac- ons for irvegular retirement in the Retirement allowance paid by state Death Resignat ion or dismis- sal To teachers enter ing service since enact- ment of law To teachers in service at date of enactment of law ELEVEN TEACHER RETIREMENT SYSTEMS—(Continued) Retirement allowance from teach- er’s con- tributions Provision regarding teachers retired under for- mer system —$_$___—__.— Liability assumed far teachers with prior service ~ Mortality table and rate of interest Bt) 14 15 1Z 18 12 Estate re- ceives teacher's accum- lated savings. | chased by cumlated savings pl additional al lowance from state equal to the teacher's years of service mul+ tiplied by 1/30 of pen sion due had teacher re- tired at age 60 having | paid 30 an- nual assess4 mente, min- imam for each year of service equals 1/30 of $250. Chapter 32: Sec. 10; (9), (10). Chapter 32: Sec. Teacher re- ceives ac- cumlated savings. Chapter 32: Sec. 11; (1). Chapter 32: Sec. 10; ‘4). heaostill | | Allowance jmatch ing |} that pur- | chased by teachers | accumm= | lated | savings. | Addai tion- |} al pension for prior service. | Pension purchased | by total not to ceed the actuarial equivalent | of $500 at are 60. Chapter 32: | Sec. 10; (5). ex~ | | Annuity purchased by teachers accumlated savings. The excess over the | amount necessary to pro- vide the $500 al- lowance at 60 is re- turned in a lwp sum at retire- ment. Chapter 32; Sec. 10; (4) . Cities and town re- tiring teachers since 1914 according to pro- visions of former systems are rein bursed by the state. Amowt paid not to exceed what would have been due under the present sveten. Chapter 32: Sec. 16; (1). Board. The state | assumed the lia- bility, the amowumt of which has not been estimated. Informa- tion se- cured from Secretary of the Teachers‘ Retirement p. 4 RBrper ience Table of mortality with 3 per cent members in service credited with inter- est earned at 44. Teachers‘ Retirement Board Bul- letin 4, | examina- | tion, No | require- | ment for those disabled from per formance of duty. Otherwi se 5 years service r's total ac- icummlated sav ings plus 50% of averare final sal- ary if has one or more years service, Accidental death in performance of duty. Otherwise only mem- ber's ac cumulated savings. For ordinary disability at 60 re- ceives ser- vice al- lowance. Otherwise annuity purchased by total savings plus fw- ther pen- sion. Total not exceed of average annual sal- arye For accidental disability actuarial equivalent of member's accumlated savings plus pension equal to 66 2/3% of final aver- age salary. Chapt er 411; Acts of 1924; Ordinance No. 553; Sec. 6; (4), (5), (6) Chap ter 411; Acts of 1924; Ordinance No. 553; Sec. 6; (8), (9). Part of mm ber's accu- mulated savings de- manded. Chapter 411; Acts of 1924; Ordinance No. 553; Sec. 6; (10). Pension almost equal to that pur- chased by employee's sav ings. 1/140 of averagp final salary multiplied by number of years service since last date of membership Pension ual to 1/140 of average annual | ) salary mult iplled by mamnber | years ser- | vice at last date of member- | | ship plus additional pension of | 1/70 of final sal- | | ary mul- tiplied by number of years prior | service. Liability to be as- sumed by the City in case of dissolution of the Teachers’ Retirement Fund. Value of pensions exceeding funds on account of Teachers’ Ret irement Fund at July 1, 1925, $480,267, Accrued liability to be covered in about 30 years, will aver- | age 2.94% of payroll. No data. TABULAR STATEMENT OF MAIN PR: Where act is in force and date effective Method of administra tion Expenses of is- tration borne by Membership optional or compulsory State's cont For teach- ers enter- ribution to For teach- ers in ser- vice at date of enact- ment of law Teacher's contr ibu- tion to re-| tirement fwd income Joona tions Ago ee 2 Z New Jersey, Sept. 1, 1919. Article XXVIII: Sec. 530 (1). New Jersey School Laws, 1925. Chapter 80, Public Laws of 1919. article XXVIII: Sec- tions 526- 543 replacing} 499-508, pe 283-320. Article XXVIII: Sec. 536 (1), (2). article XXVIII: Sec. 54 (18), (19) Sec. 535 (9). Compulsory Article RVIII: Sec. 554 (2)ff. Amount paid by State to accumla- tion fund sufficient to provide the pension due at time of retire- ment. | Legislative | Number of No. 8 Session of 1925 Chap- ter 167, Pe 296-97. State makes annual con- tribution of certain per cent of the payroll to cover cost of prior and future ser- vice. the Educa- tion Bulle- tin Vol. xl, Amount as- sessed suf- ficient to procure at 62 an an- nuity of 1/140 of average salary ml- tiplied by nmuaber years ser- vice; prior service credited. Opt ional 62 to 70, }at 70, | Present employees under 62 may retire after 35 | years ser- vice, } | | | | | | | Article | XXVIII: Sec. 532 (1), (2). | Article XXVIII: Sec. 534 (3). article XAVIII; Sec. (1). 529 Ove compul sory) ploy os Ohio August 8, 1919. State Tecch- ers’ Retire- School Laws of Ohio, Chapter 26, Sec. 7896-1 to 7896-63 PPe 479-506. Law for State Teach- ers Retire- 1925 avail- able in pamphlet. General plan ap~- pears in report of the Re- tirement Board, 1920 1921. Chapter 26: Sec. 7896- Chapter 26; Sec. 7896- State contributes a cer- tain percentage of pay- roll to employer's ac- cumlation fund. Amount covers coet of pensions for prior and future service and disability elliowances. Normal con- tribution rate equals 1.8% of payroll; de- ficiency rate determined yearly by board. Rate effective to date 1.9% of 11; a total of 3.78. Chapter 26: Sec. 7696- 44. Teacher as- sessed 4% of salary. That earn- able over $2,000 not cons idered. Chapter 26: Sec. 7896- Optional 60 to.70, or after 36 years service. (compul- sory at 70) 36 years Chapter 26; Sec. 7896- service, or 10 years services teacher Article XXVIII: Sec. 53: (6) 43. 34, 7896- 22 (a), (ec) 36. 56 (e), 7096-57, 7896-58. ment System of Ohio Law 1925, pe 3. }t4ol art‘cle KAVIII: Sec. 552 (1). 6 years ervice, or eacher age O, Minign ervice 5 ears. hapter 61 Sets 8964, 189 6-36 ; ELEVEN TEACHER RETIREMENT SYSTEMS—(Continued) provisions for irregular retirement in the Retirement allowance Retirement Provision Liability | Mortality paid by atate allowance regarding assumed for) table and Disabilit Death Resignation | To teachers fo teacher fren teach-| teachers teachers rate of or dismis-| entering in service | er’s con~ retired with prior | interest Conditions| Allowance eal service at date of | tributions under form| service since enact- enactment mer system ment ‘if law of lew anttel 1 1 14 1 16 17 38 12 re 10 years Actuarial Estate or Receives acy Allowance Pensicn of | Annuity in | State as- No data. Tables | wrvice, | equivalent beneficiary |cumlated | amomting 1/140 of the ac~ sumed adopted by teacher [of teach- | receives teacher's to 1/140 of | average tuarial liability the board. wnder age | er's acm teacher's savingse average salary equivalent | for pen- §2, Medi~ cumulated acoumlated salary mil- jmltiplied | of teach- sion in cal ex- savingse savings. tiplied by by number er's ac- case old goination Porther number of of years cummlated fund | "| pension to years total | service. savings. proved in- | produce service. Purther adequate. total al- The state's | pension | All pen- lowance of pension of 1/70 | sions at 1/70 of plus the of aver- | least ave rage annuity age salary $400. salary must pro- multiplied Liability multiplied vide an al- | by number | amounted by number lowance for | of years on June af years the teacher | prior ser- | 30, 1924 to service. at 62 with vice. |} $5,412,034. Minimum 30 years $500 per service of annum; or at least 30% of aver- $400 per age final annum. salary. Not | exceed 9/10 | of rate of } allowance had retire- ment been | deferred to | age 62. Article | KXVIII: article Article Article Article | Article Article Article | Sec. 532 Article | KAVIII: | XXVIII: XXVIII: XXVIII: XXVIII: XXVIII; XXVIII: } (15), (16) XXVIII: Sec. 532 | Sec. 532 Sec. 532 Sec. 532 Sec. 552 Sec. 532 Sec. 532 Fifth An- | |Sec, 533, (6) (7)(a), (13). (11). (4); (d), (3)3 (>), | (4) (a). | nual Report |(2) @. (d), (ele (5). (co). | | of the | Board of =| | Trustees of | | the Teach- | er's Pension | | and Annuity | Pund of 5.J. | | from July 1, 1923 to June! 30, 1924, Pe 24e | | } 10 years | Amount Estate or Teacher re- |A pension | Pension Annuity State re- Liability (Baeed on service. | equals beneficiary | ceives his equiva- | equivalent purchased ceived from | on account experience | Medical |1 1/88 of | receives accumlated | lent to to that by teach- | cities the | of 523 of other eramina~ | final teacher's savings. the an- purchased (er's ac~ reserved teachers |teacher re- tion. average accumulated nuity pur- by teach- cumilated values of for prior (tirement salary savings. chased by er’s ac- savings. pensions service = (systems, multiplied the teach~ cummlat ed granted un- | $1,272, lparticular=- | by mumber er's ac- savings, der former | 903,24, lly that of years to~- cumulated plus a ey stems. |New York tal ser- sav ings. pension of This used \City. vice, Rate 1 1/3% of in paying not ex- average the allow- ceed 9/10 | final sal- ances. of rate | ary mml- had re- tiplied by tirement number been de- years prior ferred to service. age 60, Report of Chapter Chapter 26: | Chapter 26: | Chapter Chapter 26: | Chapter 26: [Chapter Chapter 26: | State Teach; Information 26: Seo. | Sec. 7896- | Sec. 7896- | 26: Sec. Sec. 7896- Sec. 7896— |26: Sec. Sec, 7896- jers Retire~| secured 7696-37, | 38 (c). 41. 7896-40. 35 (ce). 35 (b), (c)./ 7896-35 61. ment Board | from Secre- (a). 1920-21, tary of Analysis of/ Ohio State Pinancial Teachers‘ Statemnt, | Retirement Be 4a Board 1141] effective Where act is in force and date Me sbership optional or compulsory For ers enter- ing service’ sinos on- actment of law State’s contribution to ers in ser- vice at date of enact- went of lav Teacher's contribu- tion to re- tirement fund income 4 & 2 Connect tout Jaly 1, 1917 General statutes of 19186, Chapters 57, Public Acts 1919, Chapters 61, 83, 261, 270, 318 .Public Acts of Stete makes appropria- tions from time to time to cover incurred ponsions; in practice &@ reserve is set a- side at retirement for each teacher. School] Decume nt Hoe & 1922; Seo. 226, (3)5 pe 92. Teacher con- tributes 5% of salary. Minimm $25, maximum $100 Annuity not to exceed $500 at age of 60. School Document Bo. 5= 1922; Sec. 226, (2)3 pe 92- 92 Teachers may re- tire at 60 or after | 35 years | serviace,20 | of which must have been in the state, at least 5 preced- ing re- tirement. sonar | Min imam |15 years in state, compulsory at 70. tiom, pe 6. Articole Ivs (1), (2), (3). Articole VIII: (4). Amount dependent on teacher's salary and term of service. Compensation over $5,000 disregarded. Of of teach- er'’s salary. article VIII: (3). No required No required age to re~ (term of ceive am service. muity pur~ chased by teacher's jaccumilated eavings. City's de- posits not payable until teacher is 50 years of age. Artiole IVs /article I (5), arti- /(5). ole 1X:(3). [142] School Docume loo > 1922; Sece 2 pe 92. shoo] Ccunent 1s 22; Oe 227; | required rm of rvice. cle IV; fp ELEVEN TEACHER RETIREMENT SYSTEMS—(Continued) 0 —Trovisions for irregular retirement in the Retirement allowance — “a 1 ° paid by state Ret irezent | Provision Liability Mortality pisadility Death Resignation |To teachers | To teachers/ allowance regarding jascsumed for table and Preod it ions Allowance or dismissal; entering in service |from teach teachers teachers rate of | service at date of jer’s con~ retired with prior interest since enact-| enactment tributions | under for-/| service ment of law of law mor system 2 pt 13 14 15 16 17 18 19 20 = teacher | Annuity pur- | Estate re- Teacher re- |State State lannad ty Por 40 Ko data. McClintock's mder 60;| chased by ceives ceives hie j|matches matches purchased | years’ jean st. | 10 years teacher's teacher's a lated jannuity anmuity by teach- | service | service. | accumlated accumlated| savings. purchased purchased jer’s ac- teacher | Medical savings plus savings. by teach- by teach- jocummlated | receives examina~ | pension from er’s ac er’s ac- eevings. @ mini-~ tions state of cumulated cumlated mmm pen- 1/30 of pen- sav ings. savings. sion of sion re~ Additional $500. ceived had pension t teacher re- provide tired at age total al- of 60, miti- lowance plied by with min- | number of imum of | yeare ser- $350. | Vice. | School School G S$ Sec. G 8 Sec. School School School Chap.214 Fourth Re- Document | Document 1020 Sec. 6 1020 Seo. Document Docume nt Document Sec. I, port of lon & Moe 5= in text of 6 in text No. B= Kos 5- Wo. 5 Pode, 1925 Teachers’ 1922; 1922; dooklet on of book- 1922; 1922; 1922; Retirement Sec. 2273| Seo. 2273 Cc tiout let om Sec. 227; Sec. 227; Sece 227; Board Dec. pe 92. Pe 92. Teachers Connect i- pe 93. Pe 935,94; [pe 93. Sl, 1923 Retiremmt cut Teech- as amended to Dec. 31, |System. ers Retire- in Chap.214 1924, P. 6 ment System Seo.l PAs 1925. Contri- Amount equal /Both teach- Both teach- |Allowance purchased anmity Allowance | Teacher McClintock's | butor to | to pension jer's and er's and by city's accum- purchased | contimed | credited with 4%- fund for | and ammity [city's de- city’s de- /lated deposits. by teach | as guaran | with contri- | five payable to jposits posits pay- er's aor teed under | butions to | yeare. teacher at jpayabdle to able. City’s cowmlated | former sys old fund. age 50. estate or deposits not savings. tem. City pro- benefictary. paid until vides ad- teacher is ditional | 50 years of allowance age. for past service. | | | } | | | Article | article sle Article Articole Xs (3). Article artiole article article Kt: (5). | ze (6). (4). Xs (2), Xs (2). VIII: (4). | Xr: (6), IV: (9). (3). (7),(8)- [143] == ar deb. a acii-t nse he aden eronaiene seen Income and Outgo for Representative State Teacher Retirement Funds How much will a state teacher retirement system cost and how can the cost be met? These questions are foremost in the minds of those concerned in inaugurating a teacher retirement system. Statements of receipts and disbursements of state wide retirement systems which have been in effect for several years are suggestive to those interested in establishing retirement systems. These statements indi- cate sources of income and the various items of expense involved in administering a retire- ment system. Tables 12, 13, and 14, based on data se- cured from secretaries of state wide teacher retirement systems, picture the income and outgo of retirement funds maintained in seventeen states during the fiscal years, ending in 1923, 1924, and 1925. In studying the figures as to receipts and disbursements, one should have in mind the number of teachers and administrative officers in the schools of a state, since these items tend to vary in a direct relationship with the teaching population. The number of teachers and administrative officers in the schools of the states fo: data are given below as reported by the | States Bureau of Education, Departm the Interior (Bulletin 42, 1925, Stratis: State School Systems 1923-24, p. 13) follows: Se Mn a 6b as 2,61 ra a wo x 4a 5 30,6 1¢ SS Pree 9.31 ESE ee 42.865 RS A rere 20,23( EES 6,17. Massachusetts ........... 24,412 | 29,692 a 20,610 | ERE re 793 En dn cece ee es 66,006 ng GN) Re 39,436 Calne aces ses 51,520 Rhode Island ........... 3,207 0 Ee 3,016 ES ee 16,490 EE Ee 18,379 HEN THE ESTABLISHMENT of a pension system in a particular school system is con sidered, the question arises: Shall it apply to teachers or shall it also allow other groups to come in? . . . The teachers may take the stand that the state or the city need not assist the fortunate ones who receive higher wages and who might, therefore, take care of themselves, but should increase its generosity to the lower paid. They may claim that they deserve a pension system because of the intellectual character of the work they perform, and that the school em ployees who perform inferior work do not deserve to be included. Others, and especially the school authorities, may take a different view. They may argue that the higher paid employees are no less improvident than the lower paid and are in no less need of protection, and, on the other hand that the duties performed by the lower classes of school employees are public duties as well and that the efficiency of the schools may be considerably affected if these employees ar« not covered by the pension system, with the result that dead wood is allowed to accumulate among them. The question whether or not a particular class of school employees should be included in a pension system cannot be settled by a mere comparison of their duties and salaries with those of the rank and file teachers. It must be settled on grounds of principle and expediency. The same principle applies to all classes of employees—it is their protection on one hand, and efficiencs of service on the other. The question thus arises: Is it desirable from the points of view of t/: employees, of the employer, and of the public, that a pension system protecting the particular class of employees be established? In the development of pension legislation the tendency has been towards a steady extension of the pension system to all classes of the school personnel.—Pau' Studensky, Teachers’ Pension Systems in the United States. 1920, pages 37 and 38. [144] TA ‘ae | TABLE 13—INCOME AND OUTGO OF REPRESENTATIVE STATE TEACHER RETIREMENT FUNDS—FISCAL YEAR ENDING IN 1923 . quceenpesimsunnammnnate | Disbursements ——t ee hee Amount paid to retired] Refunds to ‘* and their beire meobers ©) thérear T Other | | _ Cost of receipte | Total receipts administration) (due to superannuation, | Gimbility | ther Giebweemnt@ dis 7,380.26 376,345.03 186,402.33 481,099.03 13,087.67 2,577,020.25 964,009.42 ° “oe | 2, 729,196.42 Peansyivania | . 916,874 ° « Evy | cecces 116,665.09 eeccee 26,168.89 187,432.20 46,145.96 ©. Includes amounts paid to estates of spabere dying prior to retiresent. 40 not include Bew York City Puma, 0». Thies figure includes income from appropriations frem public funds. reverted to general treasury as == appropriation unex pended. TABLE 14.—INCOME AND OUTGO OF REPRESENTATIVE STATE TEACHER RETIREMENT FUNDS—FISCAL YEAR ENDING IN 1924 Disbursements Receipts fram: Asecsaments on T T % paid to retired) Refuide to or deductions from Income | Other Cost of members and their heirs senbers wi thires eelaries of members and imevest | receipts Total receipts adminietrat {on (Que to superannuation, | ing from service of retiremn: i | Giembility, death. etc.) prior to ret 2 OLner Tote distureenent¢ 41 surenme ote Appropriations States from public funds 802,143.22 190,621.42 1,917, 972,64 234,627.13 122,182.38 si . | 377.62 eeeees 6,567.0 seveee 10 oi 3,914,921,13" . 120,189.6 3,149,008.94 575,889 ,02° 2,456,429.52 2 sz 102,186,51 407,024, 10 34,015.42 340,278.06 Includes momts paid to estates of members dying prior figure includes income from appropriations from public funds. &. Pigures do not include Sew York City Pund. L TABLE 15.—INCOME AND OUTGO OF REPRESENTATIVE STATE TEACHER RETIREMENT FUNDS—FISCAL YEAR ENDING IN 1925 Dievur sem Tmomt eid te retired] lefumds + Rece ipte from senbere withire | ner Total | 4tebureementa disbursewnte ing from service Cost of members and their heirs) enlaries of meabers Total receipts administration (@ue to superammustian, | eof retiremnt ava | Gieebil ity £ ———e seseee sesese 9,067.7 California | $ 382,009.22 426,786.79 Connect ieut 610,716.74 ° 60 402.42 tlineis w 554,074.26 | 433,216.47 613,909.91 356,934.08 steeee 5,294,230 or . 4,200, 2,277,251.99 2, 717,507.66 eeeeee . | 78,000.00 18,210.66 | “1. 2,999. . 39 5 eoccce ace : ee . | —— 1® , 741.60 6,627.37 | 756,490.16 | 260,359.42 iJ 235.90 | 2,444,519.72 i sad *- Figures @o not include Sew York City Fund. ». This figure includes income from appropriations from public funds 4. $3,004.22 reverted to general treasury as an approjriation unexpended. ¢. Includes amounts paid to estates of members dying prior to retirement, | | J A lk Lae as Ce elnatites ei EAI iy aay WL birenig 29 at rer en nnn Ss Fae oe ena heat eee Nae ee Controversial Issues in the Field The critical review of the Fundamental Principles of a Teachers’ Retirement System, given in the first section of this study, presents the main problems involved in the inaugura tion and administration of a teacher retire- ment plan. Some additional issues relative to retirement systems are discussed here. _None of the questions raised can be settled, dog- matically, one way or the other. Rather, this section defines the issues, indicates representa- tive practice as to their solution, and presents pertinent discussions by some of the writers in this field. Unfortunately the literature on many of the points raised is limited. In some cases excerpts presenting arguments on but one side of a question could be located. I. What Governmental Unit Can Best Administer a Teacher Retirement System? Twenty-two states have already established state wide teacher retirement systems. In many states retirement systems also exist which affect teachers in limited areas such as a school district or county. In some cases teachers are members of both the state and local system, as in San Francisco, California. In other cities, such as Indianapolis and Chi- cago, teachers are enrolled in but one system. Some believe it desirable to keep separate the retirement systems affecting teachers in large urban centers and those in less populous districts. It might be maintained that this is desirable in some states due to the wide differences between urban and rural teachers in salary, scale of living, tenure, and training. The existence of such differences increase the difficulty of drafting a state wide retirement system. This issue is discussed in the Twentieth Annual Report of the Carnegie Foundation for the Advancement of Teaching. The conclusion is that: the Presideni an . 139-140. ?Carlson, Phi 1923, pp. 384 ff. of the Treasurer, 1925, ip E. ‘Report of the 1 The mando Foundation for the Advancement of Teaching, 522 Fifth Avenue, New York City. mmittee on Pensions." of Teacher Retirement Legislati The advantages to the teacher of a tirement system as contrasted with a loca are many. A state provides a body of n women working in a given occupation und parable conditions of climate, health, sala vancement and scale of living. Furtl the financial burdens assumable by a state teacher retirement system can result in a saving to individuals in the expenses for op inasmuch as appropriations from the state ury can be made to cover such a unit econon and satisfactorily. The expense entailed tuarial supervision might prove a_ burden political subdivision smaller than a state only exceptions to these general statements | large cities, or in localities where public or individual philanthropy makes provision operation or for accrued liabilities which the burden. Within this limitation, it would that for public school teachers, the state unit which can most economically and effectua administer a system of retirement. One writer has advocated that the federa! government make provision for the financing necessary in connection with the assumption of accrued liabilities, probably the most diff cult problem encountered in initiating sound retirement legislation.? Issue is taken wit! this viewpoint in the Carnegie report cited: In general it may be said that the state, as dis tinct from the municipal or federal unit, seems to be the agency that can most economically ad minister a public retirement fund, just as regarded as the political division most readi) responsible for the conduct of the broader educa tional system. The federal unit provides, rightly, for the retirement of its own servants but any attempt to make it responsible for | retirement of teachers not employed direct!) it must place upon it a burden intolerably u wieldy, expensive, and complicated. In the exis! ing social order such a transfer of the duties oi t!: state could be regarded only as anomalous. It should be recognized that the issue is no! one of control. No one has advocated, so ta! as literature indicates, federal control ot teacher retirment systems. been suggested is that federal appropriation: Twentieth Annual Re! Volume of Proceedings of the National Education Assoc: [146] The most that has \\ emp emp the defi supe sery ‘T of teac teac VISO ten¢ sup com oth staf III A ot j ann ion ederal incing Iption diff sound Ww ith § not O far | of t has tions rr he made to assist the states in dealing with ‘blem of accrued liabilities. II. Who Shall Be Members of a Teacher Retirement System? When a retirement system is proposed, a question immediately the scope of the system as to membership. The history of the New Jersey and New York City teacher retirement laws shows that “in the development of pension legislation, the tendency has been towards a steady extension of the pension system to all classes of the arises concerning school personnel.’”* The 1919 Pennsylvania law established an employees’ retirement association for those employed “in any capacity in connection with the public schools.’’ The law creating the State Teachers’ Re- tirement System of Ohio defines “‘teacher’’ as “any teacher or other person regularly em- ployed in the public schools of the state of Ohio, who is required by law to have a teach- ers’ certificate . . .’9 The Connecticut teacher retirement defines “teacher” as “any teacher, principal, supervisor or superintendent engaged in the service of the public schools.’”* The Teachers’ Pension and Annuity Fund of New Jersey provides for “any regular teacher, special teacher, helping teacher, teacher-clerk, principal, vice-principal, super- visor, supervising principal, director, superin- tendent, city superintendent, city superintendent, county superintendent, state commissioner or assistant commissioner and other members of the teaching or professional law assistant staft ‘ a III. What Factors Determine the Amount of the Teachers’ Contribu- tions to a Retirement Fund? In some states all teachers who are members of a teacher retirement system make the same annual contribution to the retirement fund Studensky, Paul. _.* Pennsylvania State Department of Public Instruction, Vi: (5601): (2), (8). ‘School Laws of the State of Ohio, 1922. * Connecticut School Document, No. 5, 1922. Chapter Scheol Law of New Jersey, 1925 Article XXVIIL- 528 * California State Board of Education, Report of the Public School Teachers’ R t 10, 1913 to June 30, 1923, p. 7 * Meriam, Lewis. Teachers’ Pension Systems in the Uniled States. The School Law of the ( Ch apter 26: Sec. XVI: Sec. 283 Principles Governing the Retirement of Public E regardless of age, salary, or length olMervice In other states the amount of a teacher's con tribution to the retirement fund depends upon his length of service. In certain states the rate and total amount of a teacher’s contribu tions to a retirement fund depend upon his age at time of appointment to service. A combination of length of service and salary the the amount of a teacher’s contribution to a retirement fund. of the teacher’s received is often basis for determining In some cases, the amount contribution is determined wholly on the basis of his salary. In California, all teachers, irrespective of age of entrance to the profession, length of service, or salary, make an annual contribu tion of $12.00 each to the Public School Teachers’ Retirement Salary Fund of Cali fornia.® Lewis Meriam points out that the benefit otten because some teachers enter the profession too received at retirement is inadequate late to accumulate sufficient funds by the time of retirement. Meriam describes “‘flat sion,” together with its limitations, in his book He pen- on the retirement of public employees. writes : If the service is homogeneous and all enter at approximately the same age, at approximately the same salaries and become superannuated at ap proximately the same age, after having had a fairly uniform history of salary wage advance ments, the uniform retirement allowance of a fixed amount—the so-called “flat pension’’—is indicated Ir the service receives employees of widely dii ferent ages, but pays all about the same rates oi wages, the system of requiring a fixed contribu tion for all, and basing the amount of the benefit on the purchasing power of the accumulation at the time of retirement is possibly applicable. Its defect is that it will not produce adequate benefits for late entrants, but this objection can probably be overcome in part by charging late entrants an extra premium to be deposited to their credit Neither of these systems is very satisfactory, how- ever, if the salaries paid different employees are very different.’ The Illinois State Teachers’ Pension and Retirement Fund Law divides teachers into D. App'eton and Company, 1920. p. 38 ommonwealith cf Penn: ylvania, 1925 7896-1 tirement Salary Fund Poard for 7 Year 403 mpPioves [147] . ‘ ' e ba three classes according to length of teaching service, from below ten, from ten to fifteen, or over fifteen years. Section 13 of this law states: After this Act shall take effect there shall be set apart from the salaries of all such persons so employed as teachers in the public schools of this state, coming under the provisions of this Act, $1.00 per month for the first five months taught after July first of each year by such teacher while he or she remains in the first class; $2.00 per month for the first five months taught after July first of each year by such teacher while he or she remains in the second class; $6.00 per month (ete., as above) while he or she remains in the third class.’ The rate and total amount of a teacher’s contributions to a retirement fund may be affected by his age at appointment to service. This is the plan under the Pennsylvania Retirement Law which reads as follows: From the salary of each employee who is a con- tributor there shall be deducted such per centum of his or her earnable salary as shall be computed to be sufficient, with regular interest, to procure for him or her, on superannuation retirement at age sixty-two, an employee’s annuity equal to one one-hundred-sixtieth (1-160) of his or her final salary for each year of service after the thirtieth day of June, 1919? A teacher’s contribution may be affected by both the salary received and length of service. This is true in Michigan. The act creating the Michigan teachers’ retirement fund states: (a) A teacher who shall have taught five years or less, in this state or elsewhere in public schools, shall contribute one-half per centum of his or her annual contractual salary . . . (b) A teacher who shall have so taught more than five years, but less than fifteen years, shall contribute one per centtim of his or her annual contractual salary.’ The Vermont Teachers’ Retirement System bases the rate of contribution and resulting benefits upon the member’s salary. The law reads as follows: Each member of the retirement association shall pay into the retirement fund . such per- centage of his salary as may be determined by 1 Illinois State Teachers’ Pension and Retirement Fund Law, Section 13. January, 1920. . The rate of assessn each school year, which shall not be m 5 percent of each member’s salary, shall tablished by the retirement board on or lx Ist day of April in each year . . . § of assessment shall be uniform for all of the retirement association.* said board IV. By What Method May Money Be Secured to Provide for the Deficiency in the Retirement Fund When Credit Is Given Teachers for Past Service Where No Retirement System Has Existed ? The problem of making some provisio: teachers who have been in service prio: the enactment of the retirement law has ofte: been an obstacle to the inauguration o} teacher retirement system. Below are offered solutions of various writ ers to this problem, together with illustrat of current practice in several states. Chapter VIII of Studensky’s Teacher; Pension Systems in the United States ¢ a detailed discussion of the problem of pr. viding in a new retirement fund for past service of teachers where no retirement system has existed. According to Studensky, the immediate creation of a fund to liquidate the entire liability would usually be impossible as the appropriation required would at leas: equal the existing annual payroll. The amortization of the debt for prior service is usually secured by the distribution of payment over a certain period of years, so arranged to place the burden on the right group ot citizens and to secure a contribution of an increasing ratio, rather than one on the instal!- ment plan. The Pennsylvania State Annuity Reserve Fund Number Two, created to cover prio: service obligations, is provided for by clause : Beginning with the month of July, 1925, Commonwealth shall pay semi-annually into >! Annuity Reserve Fund Number Two an am equal to two (2) per centum of the total In the Handbook issued by the Board of T ? Pennsy - vania State Department of Public Instruction, The School Law of the Commonwealth of Pennsylvania, 1925. LVI; (5608): Act tie ‘of the Public Acts of 1915, Sec. 6: (1), (a), (b). ‘ ey yt Laws of 1918 of the State of Vermont relating to the Department of Education with Amendments to 1925. C! 56: Sec. 8: (1) 8 Studensky, Paul. Teachers’ Pension Systems in the United States. D. Appleton and Company, 1920. Chapter VIII [148] ce re GA lane Pe eee - yn paid to all contributors for service dur- preceding school year (continuing until the cumulated reserve equals the present valuc thereafter employees, annuity payments on account of present retired or to be retired and in every case an nt at least three per centum greater than the preceding semi-annual payment ).’ state pay- lhe Legislative Number of the New Jersey Educational Bulletin for April 1925 quotes his amendment affecting the state’s contribu- tion to the retirement fund: total amount payable in each year into the fund shall not be than the rate per 1m of the total compensation of present en- during the preceding known as the rmal contribution plus the rate per centum ot total compensation of all members during the preceding year known as the deficiency contribu- The amount of each annual deficiency con- ribution shall be at least three per centum greater less year in the preceding annual payment. . . . The leficiency contribution shall be discontinued as n as the accumulated reserve in the pension ind shall equal the present values as actuarially computed and approved by the board of trustees the total liability of the pension fund less the present value computed on the basis of the normal contribution rate then in force of the normal con- tributions to be received on are at that time present entrants. account Of persons Studensky writes that in Massachusetts and Connecticut : The state provides no special reserve for the discharge of the accrued liabilities, but pays them, they mature, directly from the taxes. It ap- propriates each year an amount sufficient to pay the “prior service” pensions which are due that year. The disadvantage of this method lies in the fact that the load is, therefore, unequally dis- tributed between the immediate and the more re- future. The aggregate amount contributed by the government is considerably larger than it would have been had it been made on a reserve basis and had it been earning interest.* mote Some writers have suggested that the national government aid the states in making up the deficiency in the retirement fund on account of prior service.* V. How Shall Teaching Service Per- formed in Another State Be Evaluated? Additional items for incorporation in the Statement of the Fundamental Principles underlying a teacher’s retirement system were suggested in Section | of this Report. The desirability of provision for reciprocal rela tions between state retirement systems was pointed out. A report on Reciprocal Relations Between State Teachers’ Retirement made, February 23—24, 1926, to the National Council of Systems W Teachers’ Retirement Systems. This report, based upon an inquiry made in connection with this problem, shows that while some states—as Massachusetts, Pennsylvania and Virginia—give no credit for outside sery ice, in other states the teachers may receive credit tor such service subject to certain limitations. According to this report, in New Jersey: The law allows credit to present entrant not more than ten years of prior service renderes outside the state. . . . No _ contributior required from present entrants on account prior them. « Se contribution, new service granted regular rate of credit only for service rendered subsequent the date of enrollment, up to a limit of ten year of such service which may have been rendered New Jersey or in other states. credit for prior may be payment or by | his purcha ( service made by maki a single agreeing to contribute during their subsequent membership at an increased rate of deduction from salary. In Connecticut, according to this same report: A member of the Connecticut State Teachers’ Retirement Association receives credit for all pub lic day school service rendered outside the State when said member has completed at least twenty years of such service in Connecticut. A member is not permitted to pay any assessments for serv- ice outside the State, but at retirement does re ceive a hypothetical value for which the State grants the pension. such service on __! Pennsylvania State Department of Public Instruction, The School Law of the Commonwealth of Pennsylvania, 1925. Article LVI: (5608): 5. ? State of New Jersey, Department of Public Instruction, Legislative Number of the Education Bulletin, Vol. X1, No. 8, April 1925. p.297. * Studensky, Paul. ‘ Carlson, Philip E. 1923. pp. 384 ff. § National Council of Teachers’ Retirement Systems, February 23-24, 1926. Teachers’ Retirement System, Hartford, Connecticut. Teachers’ Pension Systems in the United States. **Report of the Committee on Pensions." D. Appleton and Company, 1920. Chapter VIII Volume of Proceedings of the National Education A Report on Reciprocal Relations Betu [149] a> aga > i aise — re SHY es: gee — These advantages or disadvantages or reci- procity were suggested in this report to the National Council of Teachers’ Retirement Systems: There are two advantages that suggest them- selves when considering reciprocal relations be- tween State Teacher Retirement Systems. First, teachers who find it desirable to transfer from one State to another may do so without for- feiting their retirement rights already earned, and second, the State that desires to secure the services of experienced teachers from other States can do so more easily if such teachers can be assured that their retirement rights will not be forfeited. Among the disadvantages that present themselves im connection with reciprocal relations between State Teachers’ Retirement Systems ar: State may lose some of its best teacher States under reciprocal relations betwe ment systems and second, and probably serious disadvantage arises from the that exist in the plan of organization and of the various State Teachers’ Retirement For example, it would be exceedingly d devise a plan of reciprocal relations bet state that has scientifically planned an act sound retirement system, and a state whos ment system is operated under the Case [D ment Plan. Even among states whose ret Systems are actuarially sound, there are differences in the rates of contribution cay differences in the age of retirement that factory plan of reciprocal relations could easily devised. [150] iva’ bani? chide 2 The Text of a State Teacher Retirement Law With Comments and Explanations A number of states have adopted teacher retirement laws which in the main are based upon sound principles. Space limitations pre- vented the reproduction in full of more than one state retirement law. A comparison of the principal features of a number of retire- ment laws is possible by consulting the tabular statement on pages 40-51. Following is given the text of the Vermont teachers’ retirement law. This is one of several laws which might have been selected for reproduction in this section. Its inclusion makes easily available to legislative commit- tees the text of one legislative act. In the foot-notes which accompany the text will be found explanations of the significance and meaning of certain sections which might not be readily understood by those relatively inex- perienced in the field of retirement legislation. VERMONT TEACHERS’ RETIREMENT SYSTEM No. 57. Acts of 1919. (Replacing Sections 1220-1231.) Section 1. Definition.—The following words and phrases as used in this act shall have the following meanings: * (1) “Teacher” shall mean any teacher, princi- pal, supervisor or superintendent employed in a public day school within the state, or in any normal school, teacher training institution or school conducted under the director of institutions lo- cated within the state and controlled and supported wholly by the state. (2) “Public school” shall mean any day school conducted within the state under the authority and supervision of a duly elected board of school directors. (3) “Year” as used in this act referring to the term for school service of a teacher shall mean the same as “school year,” as defined in the Gen- eral Laws of the state at the time when the schooi service in question was rendered, provided, how- ever, that the retirement board may in determine what school service shall con- stitute the equivalent of a specified period of special cases (4) “Interest,” unless herein other vided, shall mean compound interest at such as shall be determined by the retirement boar: (5) Wherever the appears it shall taken to apply to females as well as males. system.— |! hereinatter WIS¢ 1 word “he” Sec. 2. Teachers’ retirement Vermont teachers’ retirement system, called the retirement system, is hereby established, to become effective on July first, nineteen hu dred and nineteen. Sec. 3. Teachers’ retirement association. An association to be known as the Vermont teach ers’ retirement association, hereinafter called the retirement association, may be organized by and among the teachers in the public schools of the state. Membership in said may be acquired under the following conditions All teachers who shall serve in the public schoo! first, nineteen hundred and nin association on or after July teen, may upon application to and approval by a majority ot become members of the association, the retirement board and under such rules and regulations as it may prescribe. Sec. 4. Organization.—The teachers who de sire to become members of the retirement ass ciation shall, as soon as may be after July nineteen hundred and nineteen, adopt such form of organization for association as shall be prescribed by the commissioner of education, the state treasurer and the insurance commissione: and thereafter such organization shall be tained for the purposes herein contemplated, with such modifications thereof as may be adopted from time to time by the members of the with the approval of the retirement board. first, said main association Sec. 5. Teachers’ retirement board. The administration of the retirement system hereby established is hereby vested in a board to be known as the teachers’ retirement board, herein called the retirement board, consisting of five mem * The commissioner of education the state treasurer, the insurance commissioner and two members of the retirement Upon the organization of said association the mem bers thereof shall elect from among their number, in a manner to be approved by the commissioner of education, the state treasurer and the insurance commissioner, two persons to serve upon the re tirement member to and one and thereafter the bers, as follows: association board, one serve for one year for two years; Service under this act. members of the retirement association shall elect In most retirement acts the professional terms employed in the law are defined. Otherwise, the varied interpretatior eacher, interest’ or ‘school year"’ might destroy the legal and practical effectiveness of a retirement systen * Membership in the Vermont system is optional. Membership is compulsory in most retirement systems, howe, The personnel and the election of the retirement board is outlined in the act in order that the investment of the funds and the #Tanting of allowances will be in responsible hands. An attempt is made to secure a proportionete representatior for bot} nd teachers, and, for further protection, the members serve without compensatio: [151] =e geo ea wee i ceaate 5 Nee ne annually from among their number, in a manner to be approved by the retirement board, one person to serve on said board for the term of two years. Until the organization of the retirement asso- ciation and the election of two representatives therefrom to membership on the retirement board, the commissioner of education, the state treasurer and the insurance commissioner shail be empowered to perform all the duties of said board. When a vacancy occurrs in the retirement board by reason of the death, resignation or inability to serve of one of the members chosen by the retire- shall be filled ment association, such vacancy by the retirement board, who shall appoint a member of said retirement association to serve until the next meeting of said retirement associa- tion duly called for the purpose of electing a new member for the unexpired term. The members of the retirement board shall serve without compensation, but they shall be reimbursed for all necessary expenses which they may sustain through their service on the board. All claims for such reimbursement shall be subject to the ap- proval of the auditor of accounts. Sec. 6. General duties.—The retirement board shall provide for the payment of retirement allow- ances and such other expenditures as are prescribed by this act, and shall perform such other functions as are required for the execution of the provisions hereof ;* and to that end said board shall make by-laws and regulations not inconsistent with the provisions of this act, shall employ a secretary whose duty it shall be to keep a record of all pro- ceedings and shall provide such other clerical assistance as may be necessary for the discharge of the duties prescribed hereunder. Sec. 7. Administrative duties.— The retire- ment board shall adopt mortality tables for the re- tirement system hereby created, and, except as herein otherwise provided, shall determine what rates of interest shall be established in connection with such tables or otherwise under the provisions hereof.” Said board may modify such mortality tables or adopt others, and may change rates of interest once established, unless otherwise provided herein, but not so as to impair the vested rights hereunder of any member of the retirement asso- ciation, unless such modifications or changes shall be assented to by such member. Said board shall e:tablish and maintain, under competent advice, a complete system of records counting. Sec. 8. Creation of annuity fund. - nuities hereinafter provided shall be paid a fund to be known as the annuity fund shall be constituted as follows: (1) Each member of the retirement tion shall pay into the annuity fund, unc lations to be prescribed by the retirement such percentage of his salary as may be det by said board within the limits hereinaft scribed. The rate of assessment for each year, which shall not be more than 5 of each member’s salary, shall be establi the retirement board on or before the lst April in each year, and notice thereof s given all members of the retirement asso in such manner as the retirement board sha! scribe. Such rate of assessment shall be w at any given time, for all members of thx ment association; provided, however, that nm ber shall in any one year pay into said fu than sixteen dollars nor more than one hu dollars.’ (2) Any member of the retirement asso who for thirty years shall have paid int fund his regular assessments, as above pr shall be exempt from further assessments such member may thereafter, if he so elects tinue to pay his assessments into said fund (3) The annuity fund shall also consist oi amounts as may be appropriated from tim: time by the general assembly on estimates mitted by the retirement board, subject t proval by the board of control, as hereinafter p: vided. Such estimates shall provide fo appropriation sufficient to enable the board credit annually to each member of the retiren association a sum equal to his contribution t annuity fund and the additional allowance pro\ in section thirteen of this Act. Provided, however that the state shall not be called upon to pay said annuity fund more than one hundred dolla: any year on account of the contribution of any member of said retirement association. Su amount of the annual appropriation as is not quired for contributions to the accounts of vidual members as provided in this section ! The financial and administrative phases of the system are controlled by the retirement board. Among its functions are consideration of the applications for retirement, payment of benefits, and preparation of estimates for appropriations to the annu:t) fund by the general assembly. * Before attempting to establish a sound retirement system, the retirement board must take into consideration tables predict the life expectancy of individuals as influenced by rates of contribution to cover future liabilities may records and accounts will insure the financial stability of the system. 1 of actual and expected separations from active service among presen! Annuity Fund of New Jersey 1923-1924 gives co . Sex, and vocation. determined with some degree of By applying such data among the teaching sta‘f. th: ‘ accuracy. Expert advice concerning th: (The Fifth Annual Report of the Teachers’ Pensior mparisons entrants as caused by withdrawal, death, disability; together with a comparison of actual and expected increases in salaries death among retired teachers. Copies of this R Annuity Fund, Trenton, New Jersey, P. O. Box Saad be obtained by writing: John A. Wood, Secretary, Teachers’ Pension a: * In order that the cost of the system may be divided between employer and employee, a certain percent of the teacher's sa iar) is annually paid into the retirement fund. of service given. to pay, a mont system her contribution does not exceed 5 percen The minimum amount paid into the retirement fund annually per teacher Based on the estimates submitted by the Retirement Board are large enough to du tional allowance i for in section 13 of this Act. benefits secured at retirement are in proportion to the salary received and the leng' The percent of the deduction is uniform in order that the contribution will correspond to the teacher's a tn oat SE Se Sanaa See eae pronertion = it or . salary. If the teacher's salary is $1,200, under the \e:- If her salary is $2,000 her maximum contribution will be $110 shall not be less than $16. , the General Assembly makes a riations. These estimates the amount paid into the Retirement Fund by all the teachers of the state and to cover the such by tl S1 here men rie $100 ae Ane ates, into the annuity fund. The total amount shall have complied with all tl pt ited by the state in any one year to Carr) th ict and with the rules and regulat provisions of this act shall not exceed the retirement board hereby authorized, shall twenty-five thousand dollars. titled to receiy from the annuity 9, Contributions; how credited. [he before established, (1) such annuit tions made by the members of the retire- tributions to said ind. with inter ssociation to the annuity fund hereimbetore together with tl like contributions ma shall be credited as made to such members y the state, and the interest thereon, will pu ivy in individual accounts up to the time ot! on the basis of McClintock’s table of m nent, and at the same time each member so among annuitants, and in interest rate « uting shall be credited individually with a and a half percent per annum,* or, (2) at mount as the contribution of the state.’ Con- option, he shall be entitled to receive an ar tine members shall also be credited with the of less amount, as may be determined by the st earned by their several contributions and tirement board for annuitants electing such op the equal contributions made by the state as with the provision that if the annuitant dies befor¢ resaid. receiving payments equal to the sum of his as Sec. 10. Retirement.—Any member of the re- ments hereunder and the contributions equal theret ment association, who shall have served as a made by the state, as hereinbefore provided, with public school teacher for a period of thirty years, interest, the difference between the total amount which twenty years, and the last five preceding of said payments and the total amount of such tirement, shall have been in this state, may retire assessments and contributions, with interest, shall om service, in the public schools on or after be paid as an annuity to a surviving husband ittaining the age of sixty years, if a woman, and wife, as the case may be, or to his or her legal sixty-five years, if a man, without forfeiting representatives as such member may elect, subject any of the benefits of the retirement system; and to such reasonable rules and regulations as thi at any time thereafter, if incapable of rendering retirement board may prescribe. satisfactory service, such member may be so re Sec. 13. Teachers already in service.—A ed, with the approval of the retirement board. teacher already in the service of the state wl Sec. 11. Reinstatement of member. —Any _ this act takes effect, who shall become a mem member of the retirement association, who shall of the retirement association when forty-five y¢ have withdrawn from service in the public schools of age or older, shall on retiring as hereinbet the state, shall, on being reemployed therein, provided, be entitled to receive the allowance pré be reinstated in the retirement association upon scribed in the preceding section for members e1 such terms and conditions as shall be prescribed tering the service of the state as teachers afte: by the retirement board.* the passage of this act, and such additional al Sec. 12. Retirement allowances.—Except as lowance from the state as may be determined hereinafter provided, a member of the retire- by the retirement board, the same to be paid ment association, who shall have retired from as provided in the preceding section; but his service in the public schools of the state, and who total annuity hereunder shall not exceed If payments were made to some general f: 1€ a ts would t show clea e status of the livid gard to the retirement system. Through individ ts, the teache ‘ i e deposits t redi is benefit alone. ? The combination of a service and an age requirement is a ¢ 1 method of maintaining the effectivens faret Ad nce is made between the sexes because the mortality rates are lower for women than for men. SERVICE PENSIONERS, NEW YORK CITY TEACHERS’ RETIREMENT FUND : Life expectation Retirement age Men Women 50 16.58 vr 22 0] 8 13.55 yr 17.84 yr be 11.84 yr 15.2 ‘0 8.45 yr 10.4 I Report of the Pension Funds of the City of New York, as quoted by Ida E. Housman in A Teacher's Ver Pierson Law, p. 17. * The reemployment of a teacher involves the question of his status with reg the returned teacher must open a new account, thus materially decreasing ene f 1ount he withdrew from the retirement fund at the time of his temporary lrawa é assification. ‘ An annuity is the annual amount received by the teacher at the time of retirement p ft revious annual deposits of the teacher and the state, « he accumulated interest tl rt the Vermont Teachers’ Retirement Association shows what the teachers’ re ent s a Ve man teacher, ee Ee wien 2 a half his average annual salary throughout his entire period of active service in the state.’ Sec. 14. Allowance in case of death or dis- ability.—A member of the retirement association, who shall have been a teacher in the public schools of the state at least six years, and who shall become totally and permanently disabled to teach, as determined upon examination by physicians approved by the retirement board, shall receive an annuity based upon the accumulated sum of his contributions and the equal contribu- tions of the state, with interest, calculated on the basis of McClintock’s table of mortality among annuitants and 3% percent interest, with such additional annual allowance from _ the state as the retirement board, in the exercise of sound discretion, shall deem equitable, the same being limited by his earning capacity in other occupations, such additional allowance to be con- tinued so long, and in such amount, as the retire- ment board may determine ;* provided, however, that in no event shall the total sum received annually by such member, under this section, in- cluding his annuity and the additional aliowance above provided for, exceed half of his average annual salary throughout his entire period of determined by the If such retiring member should die b: ceiving in the form of an annuity all of cumulations up to the time of his disabili: service as retiremet his own and the state’s annual contribut his account, the balance shall be paid t her legal representatives, as he or she ma subject to such rules and regulations as prescribed by the retirement board. Sec. 15. Allowance in case of resignati dismissal.—(1) Any member of the reti: association withdrawing from service public schools of the state, by resignat dismissal, before becoming, eligible to reti: under the provisions of this act, and wh have been a member of the association less six years, shall be entitled to receive fron annuity fund all amounts contributed there: said member as assessments with interest percent compounded semi-annually on Ja: first and July first, but if at the time of withdrawal such member shall have been a ber of the association for six years or mor shall be entitled to receive from the annuit fund all amounts contributed thereto by him assessments without interest, and in addition thy WHAT THE TEACHERS’ RETIREMENT SYSTEM INVESTMENT IS WORTH TO A VERMONT TEACHER Women teachers Ts . Or a yearly in- You start an | You will have to | This will furnish come of the If at the age of — annual pay- your credit at you as long as | amounts below ment of: the age of re- you live a yearly | whatever is left tirement (60):* income of: unpaid at your death being paid to your estate 1 2 3 4 5 NEN ae acai ww ns hak hs bah nab ek bene sans $50.00 $9,882.65 $808.70 $711.75 75.00 14,823.97 1,213.05 1,067.62 } 100.00 19,765.30 1,617.39 1,423.50 Re. «in cdude MiGs dai Tenadi ate Ces . 50.00 8,940.91 731.63 | 643.92 | 75.00 13,411.36 1,097 .44 | 965.88 100.00 17,881.82 1,463.27 1,287.85 De ED, «.. cn cbs 464m Hide eS oes 6 kaedee 50.00 8,070.22 660.39 | 581.22 75.00 12,105.33 990.58 | 871.83 100.00 16,140.44 1,320.77 1,162.43 SOMOS. .< chee eheeas besos heads was nc chaeecens 50.00 7,265.22 594.51 523.24 75.00 10,897. 83 891.76 | 784. 36 | 100.00 14,530.44 1,189.03 1,046.48 POR Re RTE oe ae eee 50.00 5,832.85 477 .30 420.08 | 75.00 8,749.27 715.95 } 630.12 | 100.00 11,665.70 954.60 840.16 SP DOGG. 4 iN «a0 KRG RUE ECE ed 0 ou 860 kh wes } 50.00 4,331.17 354.42 311.93 | 75.00 6,496.75 531.63 | 467 89 100.00 8,662.34 708. 84 623. 86 * The amounts given in the 3d column are the results of the contributions of the teacher, see column 2, with interest and the payments of the state to match these funds with interest. ; ' The state gives credit to the teacher for service prior to the enactment of the retirement system. The annuity which teacher receives in Vermont is not more than 4% of his average salary computed over his entire service. In most retirement laws, the state assumes the burden for past service. The obligation incurred for prior service has proved one of the greatest problems in the establishment of a new system. 2 In general, disability retirement occurs in most states less frequently than service retirement and the rates are scaled | Under the Vermont law, one who is incapacitated for teaching may be granted a disability allowance. by the teacher's earni . 24, shows a total of 516 regula , bili .277.52 in disability annuities for 1924-1925 in Michigan. allowance granted, however, is somewhat the Michigan Teachers’ Retirement Board, was paid out in regular annuities, and [154] The amount of the disat capacity in some other profession. The Ninth Report annuitants, with 29 disability annuitants; $149.1! bs cpt or 6 ARE SERIA ONE 9 1 a by he inte fur cus sha Inv for lav the me tio wit aet an ons made by the state on his account, oard shall order t e paid before provided, without interest.’ the provisions case of the death of such member (3) On or before the first dav of A the circumstances above set forth, the sev each year, the state treasurer shall t uunts to which he would be entitled, if insurance commissioner and with the hall be paid to a surviving husband or of the retirement board a sworn staten : to the legal ——— of such de hibiting the financial condition of thi ! ceased member, as may be elected, subject to the system on the thirtieth day of June in ea und regulations of the retirement board. and its financial transactions for the year « “ In the case of the death or withdrawal on such date. Such statement shall be m service or such member before the comple form prescribed by the retirement boat of six years of service in the public schools’ shall be published with the report of tl of the state the contributions made by the state — treasurer. irement n his account, as hereinbefore provided, shall Sec. 18. Reserve fund.—A reserve fund be placed in the reserve fund hereinafter estab hereby created, to consist of gifts and receipt 3s than lished, for the general purposes of the retire- from sources other than those herein specific ym t i ment system. returns to the state of its contributions to the et (4) Contributions returned as above provided annuity fund as hereinbefore provided, and ba t at 4 shall be paid in lump sums or in installments as ances that may accrue on account of inter the member may elect, subject, however, to such savings or otherwise, which fund shall be man f such reasonable rules and regulations as may be pre-_ tained and used, in the discretion of the retire men scribed by the retirement board. ment board, for unforeseen contingencie ex re, | Sec. 16. Exemptions.—That portion of the penses of administration, or any other purposs innuity salary or wages of a member deducted or to be within the scope of the retirement system lim as deducted under this act, the right of a member Sec. 19. Accrued liabilities fund.*—An «a nm the to an annuity or allowance hereunder, and all his crued liabilities fund is hereby created, to cor rights in the funds of the retirement system, shall sist of the Vermont state teachers’ retirement be exempt from taxation, and from the operation fund, now in the custody of the state treasure: ? The retirement board may make recommendations as to the preference to be given to certain securities. According to the R of any laws relating to bankruptcy or insolvency, under the provisions of sections 1220 to 1231 and shall not be attached or taken upon execution inclusive, of the General Laws, of such part « or other process of any court. No assignment the reserve fund as the retirement board may by a member of any part of such fund to which from time to time transfer thereto, and of such ag he is or may be entitled, or of any right to or other funds as may be received by the retirement slow interest in such funds, shall be valid. board for the purposes contemplated in this s« ; ; te : Ang Sec. 17. Administration of funds.—(1) All tion. Provided, however, that said Vermont ; paid funds of the retirement system shall be in the teachers’ retirement fund shall not become part rat : . ‘ custody and charge of the state treasurer, who of the funds of the retirement system as co! shall, with the approval of the retirement board, templated in this section except upon vote to that 5 invest and reinvest such funds as are not required effect of the Vermont state teachers’ retirement ; for current disbursements in accordance with the fund association, duly certified to the retirement ) ° ° ° - . . ’ laws of the state governing the investment of board by the president of said association. The : the assets of savings institutions.’ accrued liabilities fund shall be drawn upon from 5 (2) The state treasurer shall make such pay- time to time by the retirement board as needed to : ments to the members of the retirement associa- make up the contributions of the state to the 3 tion from the annuity fund as the retirement retiring and disability allowances provided her¢ | The systems early established involved a forfeiture of the teachers’ contributions upon withdrawal from service before regular ; retirement. Under the Vermont provision the teacher may at any time receive bac k his own assessments. Vermont teache who ‘ withdraw from service after having taught less than six years, receive the amour which they have contributed to the Retirement Fund together with interest thereon which has been compouns led semi-annually. , a pa d of six years etary sed the State , deposits as well as his own are available without interest to the teacher withdrawing fror rice The following table s! amounts due upon withdrawal at the end of six years’ membership in the Vermon Ti achers’ Retirement rete n : Contribution Teachers’ State’s Due to 4 Contribution | Contribution Teacher : $50 for 6 years. .... eka sae $300 $300 $600 : 75 for 6 years. .... whi or 450 450 900 st | WOW CS Cha sicdecccens'ss 600 | 600 1,200 } % 4 1923 annual Report of the Vermont Teachers’ Retirement Association the credit on investments for the year 1923 amounted t $189:443.40. e funds were in the hands of trust companies and invested in United States bonds and Canadian property : ‘ Early retirement systems relied upon voluntary contributions alone, thus endangering the stability of the fund i - ‘ The question as to who shall assume responsibility for the accrued liabilities is one of the most difficult encountered in retire- i ment legislation, particularly when an unsound law is already in effect. Under this ol law, the teachers-may have been guaran } Fl — particular retirement annuities which cannot be met from the amount require di ler the former system The total amount : h must be provided over a period of years to make up this deficiency is sometimes large. Any or all of these alternatives may a” 4 be selected: (1) The amount guaranteed by the state under the old law will be re pur jat ed. (2) The deficiency shall be made up 65 5 partly or wholly from payments under the new retirement system. (3) The state shall assume lability and other annual propor tic providing such sums as is needed, until the liabilities assumed under the old ‘system have been met. The third alternative has been selected by a number of states at the time of the replacement of an unsound retirement law by one that 1 ind [155] a Site acme coe ee ee Po ee under. Said fund shall be in all respects sub- ject to the provisions of this act, and to the rules and regulations of the retirement board hereby authorized in respect to custody, investment, audit and disbursement. Sec. 20. Supervision of retirement system.— The retirement board shall cause the system hereby established to be thoroughly examined by a competent actuary or actuaries,, once in every three years, and oftener if deemed necessary, and may call an actuary in consultation at any time; and such board is hereby empowered to change the scale of contributions required of teachers, if deemed advisable as the result of actuarial ex- perience hereunder; but such changes shall not be effective as to teachers becoming members of the retirement association before the same shall have been made, unless assented to by such members. Audit of accounts. —The accounts of the retirement board and the books and accounts of the state treasurer as custodian of the funds of the retirement system, and the cash and securities in his hands representing such funds, shall be ex- amined and audited annually at the time and in the manner prescribed for the annual audit of the accounts of the trustees of the permanent school fund and the accounts of the state treasurer in con- nection therewith. 1 The actuary makes calculations as to life expectancy. Sec. 22. Appropriation—The sum thousand dollars per annum is hereby app to carry out the provision of this act biennial period beginning July 1, 1923. Sec. 23. Changes in rules and regula: The rules and regulations hereby presc: the administration of the retirement syste: created, shall be subject to change by th: ment board whenever deemed to be for interests of the entire body of teachers in | vice of the state. The benefits of the system shall be enjoyed by each member retirement association so long as he meet requirements of this act and complies with rules and regulations of the retirement boa Sec. 24. Sections of General Laws repealed Sections one thousand two hundred and tw one thousand two hundred and thirty-one, i1 of the General Laws are hereby repealed vided, however, that those provisions of sa tions relating to the custody and control Vermont state teachers’ retirement fund r to in section twenty of this act shall conti: force until the transfer of said fund to the ment system as hereinbefore provided. Sec. 25. This act shall take effect fr passage. Approved April 8, 1919. After collecting material as to the sex, age, service, etc., of t employees, he is able to estimate the cost of the retirement sy stem and to recommend methods to be adopted in meeting this purpose he may either use tables developed on past experience or develop tables suited to the particular employ cerned. The elaboration of rates of mortality, rates of salary changes, withdrawals, accrued iabilities, and so on properly { in the sphere of his activity.’ (Sixteenth Annual Report of the President and the Treasurer, The Carnegie Foundation for t vancement of Teaching, 522 Fifth Avenue, New York City, 1921, p. 155.) Those who desire to consult the tables which bring together for a state data necessary to the calculation of the cost a features of a retirement system should consult: Furst, C., Mattocks, R. L., and Savage, H. J. Retiring Allowances for O/ Teachers in Virginia Public Schools. The Carnegie Foundation for the Advancement of Teaching, Bulletin No. 17, | [156] ‘ on iVal Gr Bers Be eater nes Selected and Annotated Bibliography on Teacher Retirement Systems The following selected and annotated bib- liography has been compiled by the Committee of One Hundred on Retirement Allowances and the Research Division of the National Education Association. The _ bibliography contains reference to reports, books, and arti- cles chosen with regard to their recency and availability as well as the type of material included that will be of value to those study- ing teacher retirement problems. It does not attempt to be all-inclusive. Additional refer- ences treating specific phases of this question may be secured from the Research Division of the National Education Association. 1. EpucATIONAL Review, “Attenuation of Teachers’ Pensions in Germany.” LXVII, No. 5, December 1921, pp. 447-448. Criticizes decrease of teacher retire- ment allowances as advocated by the Reichstag. Contends that the pension allowances portion of salary withheld by the state; clearly only a temporarily postponed payment of salary.” represents ‘“‘a 2. CALIFORNIA STATE Boarp oF Epuca- TION, Report of the Public School Teachers’ Retirement Salary Fund Board for Ten Years. Sacramento, Calif. California State Printing Office, 1924, 40 pp. A brief history of the development of the California public school teachers’ retirement salary fund. THe CARNEGIE FOUNDATION FOR THE ADVANCEMENT OF TEACHING, 522 Fifth Avenue, New York City. The publications listed for the Car- negie Foundation are all in_ print. They will be sent without charge on application to the Secretary. > 3). ——, Furst, Ciype, and Kanpet, I. L., Pensions for Public School Teachers, Bulletin 12, 1918. A report prepared for the Committee on Salaries, Pensions, and Tenure of the National Education Joseph Swain, Chairman. Association, [157] JI 6. Discusses the problems and funda- underlying Includes outline of a “model” mental principles pension systems. pension plan drawn up with special reference to Vermont, tabular presenta tion and summary of state and local Map. systems in the United States. Bibliography. Fifteenth Annual Report of the President and of the Treasurer, pp. 87-94. Reviews Studensky’s ““Teachers’ Pen sion System in the United States,’ and discusses pension problems that have since arisen. Analyzes contributory basis of systems according to relative merit of the flat-rate contribution and Opposes computation of benefits on basis of teacher's sal: the reserve fund. rv. ——, Sixteenth Annual Report of the President and of the Treasurer, 1921. pp. 115-132. and 155-157. Reviews pension legislation in Cali fornia, Connecticut, Indiana, lowa, Michigan, Nevada, New Jersey, Wash- ington, Wisconsin, Chicago, Minneap- olis, New York State, and New York City. in the movement for pension legislation. Discusses position of the actuary ——, Seventeenth Annual Report of the President and of the Treasurer, 1922. Part VI, pp. 121-158. Discusses changes of pension theory and presents twenty-five problems with special attention to accrued liabilities and the merits of the reserve system. Gives critical review of systems in several states and cities of the United States. , Handbook of Life Insurance and Annuity Policies for Teachers, 1922. 80 pp. Revised, 1925. Published by Teachers’ Insurance and Annuity As- sociation of America, 522 Fifth Ave., New York City. Outlines the Teachers’ Insurance and Annuity Asso- development of the ee > Alem onsiys: tas 10. 11. ciation. Gives the plan of different types of policies with illustrative exam- ples and annuity rates. , Eighteenth Annual Report of the President and of the Treasurer, 1923. pp. 95-107. A general discussion of recent devel- opments of teachers’ pensions, and pen- sion legislation in the states of Cali- fornia, Kansas, Maine, Minnesota, Washington, and the cities of Minne- apolis and St. Paul. , Nineteenth Annual Report of the President and of the Treasurer, 1924. pp. 137-154. Comments on the work of the Na tional Education Association in rela- tion to teacher retirement, discussing the eleven fundamental principles pre- sented by the Committee on Pensions. Gives brief discussion of pension legis- lation in various parts of the country and in England. , Twentieth Annual Report of the President and of the Treasurer, 1925. “Pension Systems and Pension Legisla- tion,” pp. 139-155. Concludes that a retirement system may be most effectively and economi- cally administered by the state. Dis- cusses the steps to be followed in secur- ing a system of pensions. Gives a briet discussion of teacher retirement in the states and abroad, with particular atten- tion to the work of the Massachusetts Commission on Pensions of 1923-1925. ——, Furst C., Martrocks, R. L., and SavacE, H. J., Retiring Allowances for Officers and Teachers in Virginia Public Schools, Bulletin 17, 1926. Outlines and presents in diagram- matic form the plan of retiring allow- ances for officers and teachers in the Virginia Public Schools as formulated by the Foundation. Discusses in some detail the principles underlying the sys- tem, with certain problems relative to the funds, accounting and revisions, with actuarial data. Describes plan and financial status of the former Vir- ginia Retired Teachers’ Fund. bo . De Roope, ALBERT, “Pensions as \' American Economic Review, V No. 2, June 1913. pp. 287-2 Considers that pension system make no provision for refunds tractual guarantees are “mere! shrewd bits of wage bargaining.” |)j. cussion of problems that arise in : ing to public employees privileges those in private concerns. 13. Hoop, WiLiIAM R., Review of / tional Legislation, 1919-1920. | States Bureau of Education, Bu 1922, No. 13, pp. 13-14. Briefly reviews the progress of + ers’ pension legislation from 19{° , 1920. Draws attention to the tend: toward increased public support retirement systems and financial sound ness of the later systems. Lists stat, municipal, and local laws in effect. 14. Housman, Iba E., A Teacher's V ers: of the Pierson Law. (New Jersey Law.) Master’s Dissertation, Colum- bia University, 1920. 24 pp. A simplified form of the Retirement Fund Law is presented in Part I. Part II gives financial evaluations, data as to benefits and credit allowed for prior service, with actuarial tables. Advances and solves illustrative problems. 15. MeriamM, Lewis, Principles Governing the Retirement of Public Employee: D. Appleton and Company, New York City, 1918, 463 pp. $2.75. A comprehensive discussion of the retirement of public employees. Ana- lyzes the problem of devising adequate systems with reference to benefits pay- able, financial support, and status of the Includes several chapters on the establishment and prac- tical workings of a fund on the actu- “present employee.” arial basis. Gives conclusions concern ing merits of retirements systems, costs etc., with selected bibliography. ) 16. NaTionaL Councit or TEACHERS’ Re- TIREMENT SysTEMS, Bulletin, Febru ary 24, 1926. Washington, D. C. A study of the methods used in vari ous states for evaluating outside service [158] -olum- Tement Part ata as prior Vances Prning Ovees. York f the Ana- quate pay- »f the veral prac- actu- cern- ~osts, Re- bru NATIONAL Outline of systems in twelve states also given. EpucATION ASSOCIATION, 1201 Sixteenth Street, N. W., Wash- ington, D. C. —, CLARK, JOHN E., “Shall Teachers Be Pensioned?” Volume of Proceed- ings of the National Education Asso- tion, 1896. pp. 988-996. Argues that pension systems increase a teacher’s efficiency. Outlines provi- sions for retirement of teachers made in Germany, France, Bavaria, England, Sweden, etc. , Hamitton, Water I, “Teach- ers’ Retirement Allowances.” of Proceedings of the National Educa- tion Association, 1914. pp. 71-78. Discusses the evolution of the pen- sion theory, and points to experience as the guide for future progress. V olume , JoHNson, Davin B., “Pensions.” Volume of Proceedings of the National Education Association, 1919. pp. 145- 157. Contrasts pension situation in United States with that in other countries, em- phasizing relative instability of the pro- fession in the United States. Lists pension advantages for school and teacher. Argues that the problem is not solved by merely providing an “adequate salary.” 20. ——, Swan, JosepH, “Report of Com- 2] mittee on Pensions.” Volume of Pro- ceedings of the National Education Association, 1918. pp. 757-761. A brief history of the movement for teachers’ pensions in the United States. Analyzes somes of the difficulties that have arisen in regard to certain sys- tems. Suggests means of avoiding or correcting these difficulties. .——, Swain, Josepu, “Report of the Committee on Salaries, Tenure, and Pensions.” Volume of Addresses and Proceedings of the National Education Association, 1919. pp. 537-538. A brief statement of progress. Con- cludes with statement that salaries alone will not keep people in the teach- ing profession. ‘The only solution is [159] ——, Carr, bo 26. ——,CARLSON, a system of pensions that will provide generously for the teacher, will be fai: to the public, and will promote the efficiency of the school.” Joun W., Report of the Committee on Pensions.”’ Proceedings of the National Education Association, 1921. pp. 155-157. Summary of principles presented by committee in 1918. “Preliminary , Ropsins, Jessie M., “The Teacher Pension Movement.” Journal of the National Education Association, Vol. II, March 1922. pp. 87-89. Traces the development of interest in teachers’ pensions from 1891 to 192 ). 24. ——,Carison, Puiip E., “Report of Sub-committee on Pensions.” Volume of Proceedings of the National Educa tion Association, 1922. pp. 287 289. Recommends that the National Edu cation Association further the retire ment movement in progress. Suggests a program advocating guaranteed se- curities, withdrawal and_ disability benefits, and a pension proportionate to salary. Carson, Puiip E., “Report of the Committee on Pensions.” of Proceedings of the National Educa- pp. 376-390. V olume tion Association, 1923. Reviews the Suggests a program for the situation in several states. Association in dealing with a problem national report includes material on “Federal Aid for Teachers’ Pensions” by Brooks and Eckern, proposing, as a step toward of such significance. ‘The securing sound state legislation, that the national government assume the burden of accrued liabilities that had proved a serious handicap to the progress of the states in retirement legislation. Puiuie E. Teachers’ Retirement Allowances. Report of the Committee on the Problem of Retire- ment Allowances of the National Edu- cation Association. July, 1924. 22 pp. This report is included in the Re- search Bulletin for May 1924. (See following reference.) AE apt ' j Ay 4 prea shh op —————— SS SS - a istel piensa 27. ——, Research Bulletin of the National Education Association. ‘Teachers’ Re- tirement Allowances,” Vol. 2, No. 3, May 1924. 96 pp. Presents eleven fundamental prin- ciples of a teachers’ retirement system. Shows why the state and teachers are especially concerned by pension legis- lation and lists state and local systems in effect. The main provisions of the Massachusetts, Connecticut, Vermont, New York City, New Jersey, Pennsyl- vania, Ohio, and Minneapolis systems are tabulated. Financial statements and a directory of state retirement board secretaries are given; also the text of the New York State Teachers’ Retirement Fund Law. 28. “Pension Law and Annuity for Indiana Teachers”; official copy prepared for Indiana State Pension Board. The Educator-Journal, XXIII, No. 5, Jan- uary 1923. pp. 167-170. Tables reprinted from The Educator-Journal, November 1921. Tables are given which show the contribution required of the teacher at various ages in order to secure a certain annuity. 29. Prosser, CHARLES A. and HAMILTON, W. I., The Teacher and Old Age. Houghton Mifflin Company, 1913. Includes a brief, comparative discus- sion of teacher retirement systems in the United States and abroad. Con- tains suggestions to framers of retire- ment laws and directions as to pro- cedure in securing legislation. Has a tabulation of 10 systems and text of the Massachusetts law. Much of mate- rial is out of date, but some is still of value. 30. Ryan, W. C. and Kine, L., State Pen- sion Systems for Public School Teach- ers. United States Bureau of Educa- tion, Bulletin, 1916, No. 14. 46 pp. Prepared for the Committee on Teachers’ Salaries, Pensions, and Ten- ure of the National Education Asso- ciation. Gives tabulation of state systems as [160] 32. SHaw, ReuBen T., 1915. text of laws for Massachusetts sota, and New Hampshire. Bibliogra, existing in 31. Stes, RAyMonD W., Teachers’ Systems in Great Britain. States Bureau of Education, |; 1913, No. 34. 88 pp. A history of pension legisla: Great Britain with a brief su the retirement system in the States. Discusses pension systen ating in England and Scotland. A Stud Adequacy and Effectiveness Pennsylvania School Employes’ R¢: ment System. Doctor’s thesis in cational Administration, Universi: Pennsylvania, 1926. Traces the historical developmen: the Pennsylvania state wide reti: law. Discusses the Pennsylvani tem with reference to the provisi regarding age, service, the salary lem, costs, and benefits. 33. SruDENSKY, PAuL, Teachers’ Pension in the United States. The Institute fo: Government Research, Studies in Ad ministration. D. Appleton and Com pany, New York, 1920. 460 pp. $3.0 Gives bibliography, comparative lyses, actuarial data, and text of laws establishing sound pension systems. 34. SupREME Court, STATE OF WIscoNSIN Supreme Court Decision in Teacher Retirement Fund Case. Wisconsin Teachers’ Association, 611 Beaver Building, Madison, 1923. 13 pp. Decision written by Justice Owen, upholding constitutionality of Wiscon- sin Teacher Retirement Law. 35. ZALDARI, PIERRE, Annuities and An tization Tables. Bankers’ Encyclopedia Company, New York, 1917. $10.0. Contains algebraic solutions of pro) lems concerning annuities. “Tabular section shows accumulation for period of 100 years of $1.00 under certain rates, annuity evaluations, and ments to amortize stated capital. m in Edy ment nia SYS- OVISIONS ST ym oin ute for in Ad ONSIN, achers SCONSIN Beaver wen, Iscon- —_— ypedia 10.00. Research Bulletins Issued to Date Facts on the Cost of Public Education and What They Mean. Bulletin 1, June, 1922. 68 pp. (Out of Print.) Facts for American Education Week. Bulletin 2, November, 1922. 40 pp. Price per copy, 25 cents. Facts on State Educational Needs. Vol. 1, No. 1, January, 1923. 64 pp. (Out of print.) Can the Nation Afford to Educate Its Children? Vol. 1, No. 2, March, 1923. 72 pp. Price per copy, 25 cents. Teachers’ Salaries and Salary Trends in 1923. Vol. 1, No. 3, May, 1923. 116 pp. Price per single copy, $1.00. Five Questions for American Education Week. Vol. 1, No. 4, September, 1923. 56 pp. (Out of print.) Facts on the Public School Curriculum. Vol. 1, No. 5, November, 1923. 48 pp. (Out of print.) Current Facts on City School Costs. Vol. 11, Nos. 1 and 2, January and March, 1924. 64 pp. (Out of print.) Teachers’ Retirement Allowances. Vol. II, No. 3, May, 1924. 32 pp. Price per copy, 25 cents. Facts on the Public School for American Education Week. Vol. Il, No. 4, September, 1924. 40 pp. (Out of print.) The Problem of Teacher Tenure. Vol. II, No. 5, November, 1924. 40 pp. Price per copy, 25 cents. Public School Salaries in 1924-1925. Vol. III, Nos. 1 and 2, January and March, 1925. 72 pp. Price per copy, 50 cents. Taking Stock of the Schools. Vol. Ul, No. 3, May, 1925. 32 pp. Price per copy, 25 cents. Keeping Pace With the Advancing Curriculum. Vol. Ill, Nos. 4 and 5, September and November, 1925. 96 pp. Price per copy, 50 cents. The Ability of the States to Support Education. Vol. TV, Nos. 1 and 2, January and March, 1926. 96 pp. Price per copy, 50 cents. [161] AHERE ARE MANY reasons for 1 teachers’ retirement systems. Eco- nomically the work of an organiza- tion is not effective unless there is a satis- factory 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 retirement system can prevent either the dismissal 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. Men and women of character and intelli- gence 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 dis- ability. Educationally there is great need to attract, retain, and advance able people in teaching as a permanent career. -A good re- tirement system helps to do this.—Joseph Swain, Addresses and Proceedings of the National Education Association, 1918, pages 757 and 758.