Vv ; tat Vira PBRIVINLAL KOUM NAPHOW Ede EDUCATION ASSOCIATION RESEARCH BULLETIN VOL. XVIII - No. 3 MAY - 1940 Analysis of Local Provisions for Teacher Retirement Published by the RESEARCH DIVISION of the NATIONAL EDUCATION ASSOCIATION of the UNITED STATES 1201 Sixteenth Street, N. W., Washington, D. C. RESEARCH BULLETIN oF i Published five times each year in January, March, May, September, and November President, AMY H. HINRICHS NATIONAL EDUCATION ASSOCIATION Executive Secretary, WILLARD E. GIVEN: Director of Research: William G. Carr; Associate Director: Frank \W/. Hubbard Assistant Directors: Richard R. Foster, lvan A. Booker, Hazel Davis Research Assistants and Section Heads: Frances G. Bradley, Louise B. Sease, Helen H. Cox, Anna Haddow, Madaline K. Remmlein, Mildred Wharton, and Lillian S. Feldman Executive and Editorial Offices 1201 Sixteenth Street, N. W., Washington, D. C. Copyright, 1940, by the National Education Association of the United States 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. Subscriptions The payment of the $5 membership fee of the National Education Association entitles one to receive for one year the Research Bulletin, the Journal, the An- nual Volume of Addresses and Proceed- ings, and certain other publications of the Association. One dollar of each $5 mem- bership fee is for a year’s subscription to the Research Bulletin. The Research Bulletin may be received regularly thru a special subscription at $1 per year. Many of the early issues of the Research Bulletin are already out of print. The special subscription at $1 per year offers an opportunity to maintain a complete file of future Research Bulletins. 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In other cases appli- cation for the release of materials is re- quired. Address communications to the Research Division, National Education As- sociation, 1201 Sixteenth Street, N. W.., Washington, D. C. CONTENTS FoREWORD |. Dicest oF Loca RETIREMENT PROVISIONS Active State Enabling Laws Local Retirement by Special State Legislation Local Retirement Solely by Local Authorization Summary of Local Retirement Provisions I]. DeTaILep TABULATIONS OF LocAL RETIREMENT PROVISIONS Index Table 1.—Provisions of State Permissive Laws Authorizing Local Establish ment of Teacher Retirement Funds Table 2.—Local Provisions of Seven Systems Founded on Enabling Acts of lowa and Minnesota Table 3.—Provisions of Special Mandatory State Legislation Providing for Retirement of Teachers in Certain Cities or Classes of Cities Table 4.—Provisions of Teacher Retirement Plans Adopted Solely upon Local Authorization II]. OrHER Provisions FOR TEACHER RETIREMENT Miscellaneous Local Provisions Dormant State Enabling Laws IV. RELATIONSHIP BETWEEN LOCAL AND STATEWIDE RETIREMENT SYSTEMS FOREWORD HE FIRST protective plans for superannuated or disabled teachers were in the form of local mutual aid societies. Usually each active teacher voluntarily gave assistance to others in the expectation that similar aid would be forthcoming in case he was ever in need. This type of plan developed in the larger cities between the years 1869 and 1894. About 1894 there began a movement toward legislative provision for state retirement systems but, un- fortunately, these early laws did not recognize the importance of a sound fiscal base. Since 1920 considerable progress has been made toward the adop- tion of laws based upon sound actuarial principles. In recent years our Association has urged the establishment of state retire- ment systems. Usually an area as large as a state includes a sufficient number of teachers to spread the insurance risk. The state is recognized as a unit financially strong enough to cooperate with the teachers in a joint-contributory plan. Also, since education is a state function, it is the duty of the state to have a businesslike plan for retiring those who have served long and faithfully. As a result of this state-centered interest little national attention has been given to local provisions for teacher retirement. The present study performs a useful service in reviewing the local situation. Thru extensive correspondence the Research Division has been able to compile data on sixty-five local plans. Some of these are really pension schemes; others —actuarially-sound—are even more complex than some state retirement sys- tems. Most of these local programs are independent of the thirty-four state- wide pension and retirement plans. There are some who will raise the question: Why have local retirement plans? The answer is that sometimes the state as a whole is unwilling to adopt statewide legislation but will permit the more able districts to face their local superannuation problems. After a number of the larger districts have adopted sound plans the idea of teacher retirement may be so widely accepted as to make a statewide system possible. With the adoption of a state system, pro- visions can be made to include or to protect the local systems in such a way as to avoid losses either to teachers or to taxpayers. Sound local practice may be today, as it has been in the past, one road to sound statewide retirement protection. Witiarp E. Givens, Executive Secretary, National Education Association. I. Digest of Local Retirement Provisions Public school teachers are protected! by statewide retirement plans in twenty-nine states and Hawaii and by statewide pension plans in four states.” In seventeen of these thirty-three states, one Or more local retirement systems are also operating: Alabama, California, Connec- ticut, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New York, Rhode Island, Utah, Vermont, West Virginia, and Wisconsin. Most of the local systems in these states are based upon state laws providing for a retirement sys- tem for a certain city or class of city and ex- cluding the teachers in these districts from membership in the state system. Only in Cali- fornia do certain teachers make payments both to the local and to the state system. In one of the California local systems, however, teachers contribute to and receive benefits from the lo- cal retirement system (San Francisco) only on the basis of that portion of their salaries which is considered as being paid from local funds. Teachers included in local plans of several Rhode Island cities are members of the state sys- tem as well, but they do not contribute to both since the state plan is a pension system. West Virginia has both a statewide pension system and a permissive law enabling districts to grant pensions. In Kentucky the statewide retirement system is not yet in operation. This report describes provisions of local sys- tems for the retirement of teachers and other employees. Sixty-five systems have been ana- lyzed and outlined in the tables in Section II of the bulletin. These sixty-five systems have been grouped according to the legal source for their establishment. For example, Table 1 out- lines provisions of enabling laws in thirteen states, permitting school districts or cities to establish local retirement systems under certain circumstances. Table 3 outlines the provisions of sixteen local retirement systems which were established by “special” mandatory state legis- lation and Table 4 is restricted to the ten sys- tems established solely by local authority, that is, by city charter or schoolboard resolution. Table 2 is an outline of provisions in seven local systems established under two state enabling acts included in Table 1. The purpose of Table 2 is to show possible differences in local sys- tems set up by local initiative under a state en- abling act which stipulates only the general provisions. Active State Enabling Laws Table 1, pages 90-97, outlines provisions of state laws in thirteen states granting permission to cities and school districts to establish local re- tirement systems. In these thirteen states, thirty- nine local retirement systems have been estab- lished. California, in 1937, enacted a retirement law permitting local districts, under certain circum- stances, to supplement already existing retire- ment and pension plans. The permission ex- cludes districts whose employees are already covered by city, city and county, or county pension and retirement systems (as San Fran- cisco) and requires approval by a majority of the qualified voters participating in a general or special election in the district concerned. Such proposition may be submitted by the board of education and must be voted upon if peti- tioned by at least 10 percent of the electorate. If a majority of the electors vote against the proposition it cannot be submitted again within six months, but if the majority approve the proposition the governing board must estab- lish such retirement system. A large part of the California enabling act is devoted to the procedure for submitting the proposition to electors and the administration of the system; many details of provisions are left to local initiative under the following gen- eral restrictions: That such plan shall not be adopted or established until the governing board, after such inquiry and hearing as it may direct, shall find the respective contributions of said teachers and other employees and the district provided for in said plan, are sub- stantially in accordance with the more recent gen- erally prevailing rates of such contributions in pub- lic institutions which have established retirement systems, and that such plan is in accordance with sound business practice and with recognized ac- tuarial methods.* 1 State retirement systems have been enacted in Alabama, Arkansas, California, Connecticut, Florida, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Utah, Vermont, Virginia, Washington, and Wisconsin. Pension plans have been established in Arizona, New Mexico, Rhode Island, and West Virginia * Retirement systems are financed jointly by members and employers pension systems are financed entirely by public funds 8 Statutes of California, Fifty-Second Session. Chapter 59. Sec. 5.1103 [85] The Colorado state law allows first-class cities to provide for a pension payable to teach- ers, and to other school employees if so desired locally, for service, superannuation, or disabil- ity. Initiative is left to local schoolboards, but no referendum is necessary. The law is very short but includes all essential details. In lowa any city having a population of 25,100 or more may establish a “pension and annuity retirement system,” but cities having a population of less than 75,000 must refer the proposition to the local voters for approval. The state law provides for a joint-contributory system but leaves all details to the local boards. Kansas has three state laws concerning local teacher retirement. Cities of the first class are empowered to establish joint-contributory sys- tems, the details of which are completely out- lined in the state law. Cities of the second class with a population of 5000 or more are enabled to establish joint-contributory systems which are merely insurance plans. The extent of ap- plication of this law is not known. In 1939 Kansas passed two new laws empowering Kan- sas City and Wichita to establish retirement systems under still different provisions. Kentucky has had for some time a law per- mitting districts to set up local systems. Altho Kentucky has a new statewide law it has not become operative and the local systems previ- ously established are continuing ; they are there- fore included in this report. Minnesota’s enabling act leaves practically all details to local initiative, but-permits cities having a population of 10,000 or more to in- corporate an association to be called ‘Teachers’ Retirement Fund Association.” The plan must be submitted to the common council or the city council for approval and must be approved by a majority of teachers concerned. Provision is made for a local tax levy for the purpose and the employees to be included are mentioned in the state law. All other details are to be estab- lished by local initiative in the articles of in- corporation. Oregon's state enabling act also requires lo- cal initiative in the articies of incorporation but the details of the retirement provisions are in- cluded in the Oregon permissive act. The plan must be approved by the schoolboard and by a majority of the teachers. It is restricted to dis- tricts having more than 10,000 children of school age. Details of retirement are included also in the state permissive law of Ten; and the West Virginia permissive pension | Thus, in most states, local initiative stricted in adapting provisions of the ena act to local wishes. Of all the thirteen states providing pe; sive legislation for the establishment of retirement systems, the most general and leas; detailed enabling acts applicable to a numbe; of districts are found in lowa and Minnesota There is slightly greater detail in the Iowa |ay than in the Minnesota act, but in each stat most of the details of working out the plans are left to local preference. Table 2 outlines th, provisions established locally in seven systems in these two states; a distinguishing mark ind cates items stipulated by the two state enabling laws. This table reveals the contrasts within « state under a single enabling act and differences attributable to different enabling acts. Ther is greater similarity among the four lowa s)s tems than among the three Minnesota systems The Des Moines, Duluth, and Minneapolis systems are on an actuarial basis; the others are not. In fact, these three systems are fundamen tally more similar than are the four Lowa sys tems or the three Minnesota systems. ‘lhe comparison of these seven local retirement sys tems indicates that the more general the en abling act, the more likely it is that the local setup will conform to local needs. Local Retirement by Special State Legislation Table 3, pages 104-15, includes the provi sions for retirement systems established by ‘‘spe cial” mandatory legislation. The legal distine- tion between the systems outlined in Table | and those in Table 3 may not be understood at first glance, especially since two systems in- cluded in Table 1 were authorized by state laws in which the city or school district was actual|) named.* All the systems covered by Table |! were established by some local initiative, how- ever informal in some cases. The state law did not provide for the local system, but gave per- mission for the establishment of a local system. The basic distinction is that the laws analyzed in Table 1 are permissive ; those in Table 3 are mandatory. No local choice was necessary to put into effect the state special legislation pro- viding for local retirement systems in Table 5. * Naming of the locality to which a law applies is an attribute of special legislation. [86] ennesser on plan i= Is "na nd least number anesota. wa law *h state lans are nes the Systems rk indi nabling rithin a erences There Wa SVS ystems. eapolis ers are lamen- Va S\Vs- . The nt sys- he en- eC local tate provi- “'spe- istinc- able | ood at Ns in- e laws tually ble | how- w did e per- ‘stem. lyzed 3 are ry to | pro- ble 3. Except for minor points covered by local by- laws, the details of the system were mandatory from the state law. In most cases the special legislation actually named the locality to which it applied. In several cases the special legisla- tion merely mentioned the classification of the locality to which it applied, but these laws may be considered special nevertheless from a prac- tical point of view even tho they are thinly dis- guised.© The Illinois law applying to any city having over 500,000 population applies obvi- ously to Chicago. Detroit is the only first-class city in Michigan and Milwaukee the only one in Wisconsin. Omaha is the only city of the metropolitan class in Nebraska. Therefore, all these retirement systems were grouped together in Table 3 since they are based upon legisla- tion which was enacted particularly for the individual city or school district and which did not allow for local initiative in their establish- ment. The provisions of retirement systems out- lined in Table 3 are more similar than those established by local initiative. Only two of the sixteen systems in Table 3 are pension plans. Both school and city employees are included in the plans of Atlanta, Hartford, Boston, and Providence; only professional employees, as defined, are included in the other systems in this group. Five of the fifteen plans are on an actuarial basis. Boston and Providence provide special benefits for accidental disability. Local Retirement Solely by Local Authorization In Table 4 are the provisions of ten retire- ment systems established entirely upon local au- thorization. In six cities the charter provides for the retirement of certain employees; in Baltimore, Columbus (Georgia), Knoxville, and San Francisco the retirement system covers all school and city employees ; the Chattanooga plan covers all employees of the department of education ; and the New York City plan covers only such school employees as are selected from eligibility lists, in other words, mainly profes- sional employees. The four systems established by schoolboard resolution could not, of course, apply to other than educational employees. All these restrict their plan to professional em- ployees, in some cases to teachers only. Lara- 5In many states special legislation is prohibited or restricted, and some disguise as naming a class of city mie, Wyoming, provides that all school em ployees are eligible for superannuation and service retirement but only designated protes sional employees for disability retirement. One city charter plan is a pension system and one system established by schoolboard resolu tion is technically a pension plan altho the term “retirement annuity” is used in the system. Three of the systems, those of Baltimore, New York, and San Francisco, are on an actuarial basis. Provisions in Baltimore include special accidental disability benefits. The New York City system permits members to borrow from the retirement funds. Additional benefits may be purchased at the option of members in Balti more, New York, and San Francisco. Summary of Local Retirement Provisions Certain features of the sixty-five local re tirement systems have been mentioned in the preceding pages. Further details may be found in Tables | to 4 in Section II of the report. A brief summary of the fundamentals is given at this point. Thirty-nine retirement systems have been established in accordance with fifteen state per missive laws in thirteen states (in Kansas there are three separate laws). Sixteen systems were established by special legislation for individual cities or districts. Six other systems were pro- vided thru city charters and four by school- board resolution. City officials administer the retirement plans, wholly or in part, in fourteen of the sixty-five systems while thirty-eight systems are adminis tered by the schoolboard, either directly or in- directly. Members participate in the adminis tration of thirty-four systems. Of these sixty-five local retirement systems, fifty-two are joint-contributory and thirteen are pension plans. Employees contribute a per- cent of their salary in forty-eight of the fifty- two joint-contributory systems; in two systems the contribution is a flat amount which varies with length of service. The percent of salary contributed in fifteen systems is to be deter- mined locally. In thirty-three systems the per- cent is stipulated in the law, or at least a maximum and/or minimum is set. A minimum of | percent is fixed in eighteen systems and a or district necessary in order that legislation applicable to a specific area may be considered constitutional [ 87 ] maximum of 1 percent in one system. Two systems permit a percent as high as 6; most systems set the maximum lower than 4+. With such a small contribution, relatively low al- lowances are paid in most systems. Twenty-three plans set a maximum allow- ance ; these maximums range from $300 a year to $1200 a year. Eleven systems provide for a set amount payable as retirement allowance; these amounts range from $300 to $900 a year. Several systems provide for an allowance, which, if under the maximum, will be equiv- alent to a proportion of the member’s active salary, such as one-third salary in one system, half salary in five systems, and three-fourths salary in two systems. Twelve systems provide for an allowance based on actuarial equivalents. In the other systems special conditions prevail but in six systems no mention has been found of the amount of the allowance which is pay- able. Compulsory retirement is included in the local retirement provisions in some systems and in other systems the age or circumstances for compulsory retirement are set by a sep schoolboard resolution or a tenure law. Whe, all such regulations are compiled, regard), of source, the members of thirty-five loca] r¢ tirement systems are subject to the followin. variety of rules regarding compulsory ret ment: (a) after 40 years of service, if age 65 (b) after 30 years of service, last 20 of which must have been in district (c) after 20 years of service, if unfit (d) whenever disabled (in two systems) (e) in discretion of commission, at request of schoolboard (f) women at age 60, men at age 65, if servicy is not satisfactory (g) at age 65 (in seven systems) (h) at age 68 (after July 1, 1941, at age 65 (i) at age 70 (in 19 systems) (j) at age 70 (at 69 in 1940-41; at 68 in 1941-42 at 67 thereafter). In the other thirty local retirement systems, no known regulation makes retirement com- pulsory. FIGURE I—LOCATION OF SIXTY-FIVE LOCAL RETIREMENT SYSTEMS FOR TEACHERS ORes. Div, Nat. Educ. Assn 7 items, com- II. Detailed Tabulations of Local Retirement Provisions INDEX Table in which pro visions are City or school district outlined Alabama California Colorado Connecticut Delaware District of Columbia Georgia Illinois lowa Kansas Kentucky Montgomery Los Angeles San Diego San Francisco Colorado Springs Denver Grand Junction Greeley Longmont Pueblo Hartford New Haven Wilmington Washington Atlanta Augusta Columbus Macon Chicago Cedar Rapids Davenport Des Moines Sioux City Kansas City Wichita First-class cities: Atchison, Fort Scott, Leavenworth, Parsons, Topeka, Pittsburg, Salina Bowling Green Frankfort Lexington Louisville Newport NY he hh Louisiana Maryland Massachusetts Michigan Minnesota Mississippi Nebraska New Hampshire New York Oregon Rhode Island Tennessee Utah Vermont West Virginia Wisconsin Wyoming City or school district New Orleans Baltimore Boston Detroit Duluth Minneapolis St. Paul Meridian Grand Island Omaha Conce ord Manchester New York Portland Bristol Newport Providence Chattanooga Knox County Knoxville Memphis Nashville Salt Lake City Rutland Parkersburg Wheeling Milwaukee Laramie Table 1.—Provisions of State Permissive Laws Authorizing Local — . roms A. B. C. D. E. F. G. H. Establishment of Teacher Retirement Funds Administration of system Employee participation in administration Employer’s contributions Employee’s contributions Types of positions covered Membership: voluntary or compulsory Qualifications for superannuation or service retirement Superannuation or service retirement allowance Disability retirement Special provisions for employees of advanced age at time of enactment Ee TS Pe 8 eee 96 TABLE 1.—PROVISIONS OF STATE PERMISSIVE LAWS AUTHORIZING LOCAL ESTABLISHMENT OF TEACHER RETIREMENT FUNDS Location \LIFORNIA OLORADO IOWA KANSAS Kansas City Wichita First-class cities Second-class cities KENTUCKY MINNESOTA MISSISSIPPI NEW HAMPSHIRE OREGON TENNESSEE UTAH VERMONT WEST VIRGINIA A. Scope Any district whose employees are not other- wise covered by a city, city and county, or county system First-class districts Independent school districts in any city having population of 25,100 or more First-class city with population of 120,000 or over First-class city with population of not than 95,000, nor more than 115,000 Any first-class city less Of 5000 or more Any first-, second-, or third-class city 10,000 inhab- Any city having more than itants Meridian separate school district City of Manchester Districts having more than 10,000 children of school age Statewide Cities and taxing districts having a popu- lation of 250,000 or over Any city of the first or second class Rutland Statewide B. Provisions for accepting act 1 Petitior 10 percent of ction may submit ed by majority of loc itted within tary resubi board initiative—no referendum Local board cooperating with teachers Schoolboard resolution rporation of association, plan approved by city council and majorit concerned schoolbos Act and discretion authorizes empowers authorizes and empowers b« )act on request ot Act ard ildermen t 1 uperintendent and two-thirds vote of schoolboard association, plan and By be ipproved by b incorporation of ard majority resolution, adopted by and by schools Schoolboard authorities and district governing county of county No By majority ployed written request of a By majority vote of legal voters Schoolboard resolution, subject t« board of education Location CALIFORNIA COLORADO IOWA KANSAS Kansas City Wichita First-class cities Second-class cities KENTUCKY MINNESOTA MISSISSIPPI C. Administration of system District retirement board; to 7 members including the county treasurer as a member ex officio Local board of education independent school 3oard of directors of tricts Local board of education Local board of education Local board of education Local board of education Board of trustees of retirement system Board of trustees Meridian schoolboard no compe nsation; dis D, Employee participation in administration urd number 3 Representation of employees on bo ceed 3, in proportion to the } t and other employees in membership No provisions No provisions No provisions Teachers concerned education in choosing moneys No provisions No provisions may cor plan per Majority to be teachers and princip Six out of 9 board member system No provisions (C and D continued on next page) (Table 1, C and D—Continued) NEW HAMPSHIRE OREGON TENNESSEE Statewide Cities and taxing districts of 250,000 population or over UTAH VERMONT WEST VIRGINIA Board of mayor and aldermen of city of Man- chester Board of trustees: composition left to bylaws Board of trustees: without compensation; 9 members, 6 members for quorum; 5 votes neces- sary for official action. Three members to be schoolboard members Local board of education Retirement commission to be composed of 7 members, including the city superintendent, and 2 members to be elected by the board of educa- tion from their members for a term of 2 years and 3 members of the retirement association City council Local board of education No provisions Five teachers and superintendent of sch No provisions Three members of the retirement commis be members of the retirement association e!| by the association for a term of 3 years No provisions No provisions Location E. Employer’s contributions F. Employee’s contributions CALIFORNIA COLORADO IOWA KANSAS Kansas City Wichita First-class cities Second-class cities KENTUCKY In first-class cities In second- and third-class cities MISSISSIPPI MINNESOTA NEW HAMPSHIRE District tax in addition to any other authorized district tax Special tax levy: maximum 1 mill; gifts and bequests Tax levy not exceeding amount produced in current year by assessment of teachers; gifts and bequests Equal to amount contributed by employees. Raised by special levy: maximum 1 mill on each dollar of assessed valuation of real and personal property; gifts and in- terest thereon Special tax levy sufficient to match amount deducted from employees’ salaries but not exceeding one-half mill on each dollar of assessed valuation on real and personal property. If employee's annuity benefits are less than $30 a month, board of education may pay out of general fund sufficient to make allowance of $30 a month Not less than 150 percent of teacher's assessments and not less than amount to meet needs; by special tax levy not to exceed 1 mill per dollar assessed value of real and personal property; gifts, etc. Not less than half the amount collected from employ- ees, to be appropriated from general fund Equal to employees’ contributions; but: Not more than returns from tax rate of 444 cents on each $100 of assessed valuation subject to local school tax in district Not more than returns from tax rate of 4 cents on each $100 of assessed valuation subject to local school tax in district Not more than 1 percent of total school budget in any one year Sufficient to meet needs by special tax levy: in first- class cities under home rule charter, maximum shall be 1% mills on each dollar of assessed value of all taxable property; in other cities, maximum shall be one-tenth mill unless tax authorities determine a greater levy is needed, in which case maximum shall be three-tenths mill From city funds Rate to be determined locally; computed salary up to $500 per month None—pension plan One percent of salaries or larger percent board so authorizes and teachers agre thereto Not less than 1 percent nor more thar percent deduction from salaries Maximum, 3 percent to be deduct monthly from salaries of employees Not less than 1 percent nor more than 6 percent of salaries; must have contributed at least $500 before retirement, otherwise deficit will be deducted from monthly pay- ments Not more than § percent may be deducted from salaries Rates to be fixed by local board of trustees Rates to be fixed by local board of trustees None—pension plan Local option None—pension plan (E and F continued on next page) deducted es » than 6 tributed therwise hly pay- leducted Table 1, E and F—Continued) ar REGON TENNESSEE Statewide Cities and taxing jistricts of 250,000 population or over UTAH VERMONT WEST VIRGINIA Three percent of tax collections for school purposes fines and forfeitures, etc. If insufficient, special levy is authorized No provisions From school funds Equal to amount contributed by employees To be determined by city council Appropriated from local teachers’ fund according t state board of education regulations Sufficient to purchase annuities act Maximum 2} percent of salary 1 percent of salary Maximum 5 percent of salary One and one-fourth percent of salaries t maximum salary of $2500. Rate may be changed with approval of board of tion and a two-thirds vote of members of retirement association educa- None—pension plan None—pension plan Location CALIFORNIA2 COLORADO # IOWA KANSAS Kansas City Wichita First-class cities Second-class cities KENTUCKY @ MINNESOTA MISSISSIPPI NEW HAMPSHIRE OREGON TENNESSEE Statewide City and taxing districts of 250,000 population or over UTAH VERMONT WEST VIRGINIA G. Types of positions covered All regular full-time teachers, and such other employees as may have been provided for in plan Teachers and other employees as may be provided for locally Teachers All persons regularly employed and paid out of publi funds to perform services for the school district, including teachers, principals, superintendents, supervisors, librari- ans, clerks, secretaries, school nurses, attendance officers, managers, engineers, building superintendents, main- tenance and repair men, custodians, and all others regu- larly employed by the board of education All employees regularly employed on a yearly or contract basis Superintendents, supervisors, assistants to superintend- ents, principals, and teachers Teachers, administrators, secretaries, and all other per- sons employed regularly in the conduct of the school system Teachers and other full-time employees as may be pro- vided for locally Teachers, superintendents, supervisors, principals Teachers Teachers Employees classed as superintendents, superv’sors, prin- cipals, and teachers Superintendents, assistant superintendents, principals, assistant principals, supervisors, assistant supervisors, department heads, teachers Teachers, principals, superintendents, supervisors, secre- tary of board of education, school secretaries, schoo! li- brarians, and office employees subsequently employed Superintendents, supervisors, principals, and teachers Such employees as city council shall designate Teachers H. Membership: voluntary or compulsory Voluntary with employees at time of adoption; compulsory for subsequently employed personnel Pension plan No provisions Compulsory except those employed at time of adoption who will be unable to qualify for a school annuity under the provisions of the act Voluntary Voluntary: employee may sign waiver within one month of adoption or within one month of employment Voluntary Compulsory for classes of employees in- cluded in system No provisions Pension plan Pension plan Compulsory for employees under 44 years ot age Voluntary No provisions Compulsory Pension plan Pension plan * Enabling act contains authorization for extending scope to include other school employees upon local option. [93] I. Qualifications for superannuation or service retirement Years of service Age for compulsory retirement Immediately preceding Local CALIFORNIA COLORADO IOWA KANSAS Kansas City Wichita First-class cities Second-class cities KENTUCKY MISSISSIPPI MINNESOTA NEW HAMPSHIRE OREGON TENNESSEE Statewide Cities and taxing districts of 250,000 population or over UTAH VERMONT WEST VIRGINIA 20° 60 men 55 women No provisions in enabling act 65 20 oe sina Sum equivalent to the first annual annuity must have been paid in, or deficit may be deducted in equal amounts monthly from first year's annuity payments. 60 rr 20 eae 30 20 30 25 No provisions in enabling act 30 60 Five years’ contributions: deficit, if any, may be paid with interest or de- ducted from retirement allowance No provisions in enabling act 15 After age 60, upon tw thirds vote of board education upon recommer dation of retirement mission. (Automatic age 70, by rule « board of education 60 30 rece If teacher has not paid into fund at time of retirement all sums due, deficit shall be deducted from annuity; such deductions may, in the dis- cretion of the retirement commission, be distributed over a period of not more than 3 years No provisions in enabling act 63 20 terms 40 terms > Plan may provide that this period may be broken by periods of absence. © Except that for a period of 15 years following the placing of the plan in operation, the governing board may grant exten: of time of service on a year-to-year basis. 4 Permanent tenure is removed at age 65 but the retiremertt law does not specify any compulsory retirement age. ¢ Compulsory retirement age is to be determined locally but not to be over 70. f Tenure law provides for compulsory retirement at age 65. Location J. Superannuation or service retirement allowance CALIFORNIA Plan may provide that employees becoming eligible for retirement salaries within a specified period not exceeding 15 years after the establishment of the fund, shall receive a specified sum which during the life expectancy of such employees will be approximately equal in the aggregate to the aggregat: difference during such life expectancy between the maximum salary paid to employees in the respecti\ class or classes of the retiring employees and the salaries paid to beginning employees in such class or classes. The retirement salary may be a stipulated monthly sum, or all benefits may be based upon the menthly salary for each year of future active service earned up to the date of retirement and upo! the average monthly salary earned by the employee during the year immediately preceding the adoption of said plan and the number of years of past active service in the district, subject to such provisions as may be made for minimum benefits, but no employee with less than 15 years’ service in the district shall receive such minimum. No retirement benefits shall be based upon or allowed for any salary in excess of $500 per mont! (J continued on next page [ 94] d peri *h during iggregate espectiv ich class upon the nd upor adoption rovisior e district onth. t page Table 1, J—Continued) COLORADO IOWA KANSAS Kansas City Wichita First-class cities Second-class cities KENTUCKY MISSISSIPPI MINNESOTA NEW HAMPSHIRE )IREGON TENNESSEE Statewide Cities and taxing districts of 250,000 population or over UTAH VERMONT WEST VIRGINIA Maximum $50 a month No provisions in enabling act One-third average annual salary for last 10 years ir Annuity contract; minimum $30 a month $500 a year in equal monthly payments Insurance policy settled in accordance with insuran No provisions in enabling act Maximum $500 a year No provisions in enabling act Maximum, half annual salary received during year in annually payments ] mediately preceding retirement nsion is voted For employees who were under age 45 in 1929 and retire at 60 or over, district purchases annuity of of equal amount; for $37.50 a month if employee has contributed sum sufficient to purchase annuity employees who were between 45-55 in 1929, and retire at age 60, district purchases annuity of $50 a month if employee has contributed sufficient to puri hase annuity of $25 For employees who were 55 or more in 1929, and retire at 60 or over, district purchases annuity of $57.50 a month, if employee has contributed sufficient to purchase annuity of $17.50 a month Three-fourths salary at time of retirement; maximum $600 No provisions in enabling act Annuity equal to one-half average salary for 5 years next preceding retirement; maximum $600 To be determined Maximum $50 a month payable for 12 months in each fiscal year, voted by board annuall Location K. Disability retirement Qualifications CALIFORNIA COLORADO IOWA KANSAS Kansas City Wichita First-class cities Second-class cities KENTUCKY MINNESOTA MISSISSIPPI NEW HAMPSHIRE OREGON Allowance Pian may provide for disability allowance after 15 years’ service prior to retirement with an allowance proportionate to full service retirement allowance to be specified in plan Ten years’ service Not to exceed full service retirement allowance No provisions in enabling act Fifteen years’ service; medical examination at least once in every 3 years; such examinations may be ordered at any time until annuitant is 65 years of age. If a woman receiving a disability allowance marries, allowance shall cease No provisions Twenty-five years’ service; 15 years in district One-third average annual salary for last 10 years’ service in district times a fraction of which the denominator is 30 and the numerator is the number of years of school service, further multi- plied by a fraction of which the denominator is 30 and the numerator is 30 minus 1% times the number of years which the employee's age at retirement lacks of being 65 Annuity contract with all benefits due and ac- crued from employee's contributions, minimum $30 a month Such percent of $500 as years of service are to 30 No provisions in enabling act No provisions in enabling act No provisions in enabling act No provisions in enabling act No provisions in enabling act Under 60 years of age After 5 months’ disability, annuity payable is $75 a month. The board contributes the differ- ence between $75 and the amount of monthly annuity purchasable by member's contributions (K continued on next page) (Table 1, K—Continued) TENNESSEE Statewide Cities and taxing districts of 250,000 population or over UTAH VERMONT WEST VIRGINIA Twenty-five years’ service; 15 years’ service Maximum, three-fourths of salary; maxi: must have been in district; must have con- tributed 5 years No provisions in enabling act Twenty years’ total service; 15 years’ service in One-half average annual salary for 5 year city; upon two-thirds vote of board of education preceding retirement, if total service equ upon recommendation of retirement commission. years. If total service is less than 30 year If teacher has not paid into fund at time of re- bility retirement allowance is proportionat; tirement all sums due, deficit shall be deducted of such half salary from annuity; such deductions, in the discretion of the retirement commission, may be distributed over a period of not more than 3 years. No provisions in enabling act No provisions in enabling act Location L. Special provisions for employees of advanced age at time of enactment KANSAS Kansas City Second-class cities If less than 20 years’ service can be accumulated before age 70, employee with 15 years’ service : receive retirement allowance in equal monthly installments, equivalent in the annual aggregate ¢ such percent of one-third of the average annual salary for the last 10 years of service as number years of such service bears to the term of 30 years. After 10 years’ service, at age 65, board may pay a monthly income of not more than $2 per 1 for every completed year of service in the system; maximum $40 a month. In the case of any employee over 50 years of age at the time of enactment of plan, in addition t regular contributions, board may contribute a sum not to exceed 5 percent of the average salar such person while employed by such board of education for each completed year of service, toward providing a pension, provided such person contributes a like amount. ‘‘This may spread over a per of time." Location M. Miscellaneous provisions CALIFORNIA KANSAS Kansas City Wichita First-class cities Second-class cities Plan must be in accordance with sound business practice and recognized actuarial methods, etc. tuarial valuations to be made at regular intervals, not exceeding a period of five years. Investment of funds is restricted to those investments permitted savings banks in the state. Surplus money to be invested in bonds approved by state school fund commission. No employee shall receive credit for more than 30 years’ service. Prior service credit is granted uy to 20 years served prior to effective date of act. If employee is discharged before he becomes eligible to retirement, his contributions shall be 1 funded without interest. If he withdraws voluntarily, he shall receive a refund of one-half his « tributions without interest. If after withdrawal and refund he later returns to the district, he n return refund without interest or penalties and regain former status in the retirement system. If employee dies before becoming eligible to retirement, his contributions shall be paid to heirs estate without interest. In case employee withdraws for reasons other than disability, he is entitled to his annuity contract with all the benefits which have accrued from his contributions. All sums due and accrued from em- ployee's contributions are paid to estate in case of death of employee. No part or parts of this act shall be construed as denying or prohibiting any board of education having elected to cooperate with its employees for the purpose of the benefits herein provided, fron withdrawing or discontinuing said cooperation, but upon such withdrawal or discontinuation, the status of all participating employees shall be preserved the same as tho the employee had been retired the expiration of the full accredited period and such employee shall be entitled to receive his or her policy at the time of such discontinuance without any Testrictions whatsoever, and the cash balance, i any, in the board's account with the respective persons. If employee is discharged, his contributions are refunded; if he withdraws voluntarily, half his cor tributions are refunded; if he transfers his employment to another first-class district operating under 4 this enabling act, his contributions shall be transferred; if he dies, half his contributions shall be paid to his heirs or estate. If employee withdraws voluntarily for other than disability, he must pay schoolboard one-half the amount the board has contributed to his insurance policy. In case of death, ‘‘all sums due and accrued to the date of death and uninvested in the account of the board"’ are to be returned to the estate | gether with the insurance policy. (M continued on next page) [96] contr rom en duca I ed, fron he status etired is or her ilance his cor ig under be paid ‘half the accrued state t page Table 1, M—Continued) The board has the right to discontinue the plar 1 atus “shall same as tho the employee had been retired at the irati of the full accredite employee shall be entitled to receive his or ] i hh restrictions; and the cash balance." me of such disconti: There shall be created and maintained reserves on tl isis of an interest rate not per year and on the basis of mortality disability, and other experience tables Actuary is to be appointed; periodic actuarial investigation is to be made once i Funds may be invested in bonds of the United States government or of any state, cot other municipal corporation; first mortgages to 50 percent of appraised value, and inter trust companies, where secured, of the cit deposits at not less than 3 percent in banks and system operates. t Separate accounts must be kept for each ber There shall be no loss to member men systems. In case of withdrawal before retirement amount due under present system, shall be refunded with accrued interest at the opt board. In case of death of member before retirement, deposits are payable to estate. the part of deposits due under previous sy Pro rata benefits may be provided if sufficient funds are not available. county, school district, or municipal bonds contributions shall be refunded to estate If estate has not sufficient funds to pay funeral on not exceeding amount paid into fund by such MINNESOTA UTAH ] Funds may be invested only in state, vided In case of death before retirement, the total pr teacher's surviving relatives have been dependent expenses, same shall be paid by retirement commissi teacher. If a teacher leaves the district having local retirement system for employment elsewhere, he may elect either a transfer of membership or an absent membership. If the former is within 6 months, system are transferred; if the absent membership elected the teacher's credits in the local retirement is elected the teacher shall continue his membership in the local system by voluntarily sending annually the amount equal to the contributions he would make if employed in the district plus the amount the board would have contributed had the teacher continued employment in the district. If funds are insufficient to pay annuities and refunds due, the available funds shall be prorated among annuitants and claimants. FIGURE II—FINANCIAL STRUCTURE OF TEACHER RETIREMENT PLAN IN MINNEAPOLIS inne lis Retirement t Teacher's “lane ‘ —_? Withdrawals al ‘ OS ae ee es oe es oe ee > 7 ee os ot os os > Wes = a i ae 5s NX 1 yy City of (oausty Refunds to Minneapolis Fund - Refun t ate o Deceased Members | O | )PSode000005 SoS (zn certacn cases) Sdup Cong sagnat Fun a Vv Balance from Old Fund Retired Teachers Table 2.—Local Provisions of Seven Systems Founded on Enabling Acts of Iowa and Minnesota Page Administration Employee participation in administration......... Employer’s contributions Employee’s contributions Types of positions covered Membership: voluntary or compulsory Qualifications for superannuation or service retirement . Superannuation or service retirement allowance Disability retirement Optional benefits Payments in case of withdrawal or death before retirement. . . Restrictions on investments . Actuarial investigation of service and death experience TABLE 2.—LOCAL PROVISIONS OF SEVEN SYSTEMS FOUNDED ON ENABLING ACTS OF IOWA AND MINNESOTA* Location IOWA Cedar Rapids Davenport Des Moines oux City MINNESOTA Duluth Minneapolis St. Paul A. Administration a. Board of trustees . Advisory council: educational committee of education plus employees’ representatives. tendent to act as ex officio chairman Board of directors Advisory committee of teachers Board of directors Advisory committee—ex officio members: superin- tendent and president of Des Moines Teachers’ Federa- tion; one citizen (annually elected by board) who does not hold any other public office and is in no way con nected with the administration of public schools; 3 active and one retired member of system Board of directors Advisory council: teachers committee of board of edu- cation, superintendent, and representatives elected by each of the organizations recognized by the board of education Board of (9) trustees: 3 shall be members of board of education chosen by such board; 5 elected by of association from their officio member members members; superintendent ex Board of (9) trustees: mayor of city, president of board of education, president of city council, chairman of ways and means committee of city council, and 5 members of association Board of (12) trustees: mayor, comptroller, commissioner of education of city of St. Paul are ex officio members. Remaining 9 members are to be elected by and from mem- bership Superin- B. Employee participation in administration One representative to be elected by the principals’ and supervisors and 2 representatives to be elected by the Cedar Rapids Teachers’ Association club Three teachers elected from entire teach ing body to meet with board at any regular meeting of directors Three members of system are membership to serve for three-year terms; one annuitant elected by bership to serve one-year tern elected by mem One representative for every 100 mem bers or fraction thereof elected by each organization: Sioux City Teachers’ Club, High School Teachers’ Assoc iation, Ad ministration Club of the City Public Schools Sioux Five members of elected by terms retirement association membership for three-year Five members of retirement elected by terms association membership for two-year Nine members of retirement association; elected by terms membership for three-year Location IOWA Cedar Rapids Davenport Des Moines Sioux City MINNESOTA Duluth C. Employer’s contributions *Annual tax levy not exceeding amount produced in the current school year by the assessment of teachers’ sal- aries. Gifts, bequests, etc. *Annual tax levy not exceeding amount produced in the current school year by aries. the assessment of teachers’ sal- Gifts, bequests, etc. *Annual tax levy not exceeding amount produced in the current school year by the assessment of teachers aries. Gifts, bequests, etc. sal- *Annual tax levy not exceeding amount produced in the current school year by the assessment of teachers aries. Gifts, bequests, etc. sal- *No provision other than reference to tax levy described in enabling act Those provisions which are stipulated in state enabling act are starred [99 ] D. Employee's contributions One percent of the total salary of all teachers employed in district, deducted in equal monthly amounts from teacher's salary total salary of all employed in district or such greater percentage as the board of dire« tors may authorize and a majority of the teachers agree to pay; payable in equal monthly amounts from teacher's salary *One percent of the teachers graded ac- age when becoming a Constant percent of salary cording to sex and member One percent of salaries of teachers Percentage of salary based upon sex and age when becoming a member; rate may be changed by affirmative vote of two thirds of members voting thereon pro vided such affirmative vote shall include at least one-third entire membership (C and D continued on next page) (Table 2, C and D—Continued) All members shall contribute of salary Board shall annually certify the amount to be raised by taxation for administrative expense, for annuities granted under provisions in effect prior to 1924, for prior service credits, for city deposit on behalf of senior teachers (over 25 years of age) as follows: to 1% percent of salary add one-fourth of 1 percent for each year of teaching experi- ence and deduct one-twentieth of 1 percent for each $100 of such compensation received during year in excess of $2000; total not to exceed 9 percent of salary; salaries over $3000 to be disregarded in computation; when city deposits with interest accrue to amount of $6666 city's deposits shall cease for that individual teacher Minneapolis After January 1, 1940, 3 rercen: salary; present members may el stay under old plan, paying assess of 1 percent of salary *Annual tax levy; not to exceed 144 mills on all taxable property in city St. Paul * Those provisions which are stipulated in state enabling act are starred. F. Membership: voluntary or compulsory Location E. Types of positions covered IOWA Cedar Rapids Compulsory; part of contract of employment Superintendents, teachers, principals, assistant principals, supervisors, assistant supervisors, nurses, and any person in charge of a special de- partment Davenport Des Moines Teachers All certificated employees including superin- tendents, assistant superintendents, directors, supervisors, principals, viceprincipals, girls’ ad- visers, assistant principals, classroom instruc- tors, assistant instructors, and study hall teach- ers. Noncertificated professional employees may be included upon recommendation of superin- Compulsory; part of contract of employment Compulsory, as a condition of employment teacher on leave at time of enactment ma elect to be excluded within 60 days of returr such teacher may enter retirement system withir 2 years by making up contributions. Any member who ceases to hold teacher's certificate but cor tinues employment in other capacity may continu: tendent and approval of board membership or withdraw Sioux City Teachers Compulsory; part of contract of employment MINNESOTA Duluth Compulsory for teachers with written contracts All superintendents, supervisors, principals, and instructors under written contract for employ- ment are eligible for membership All teachers are eligible; all teachers over 25 and Compulsory at age 25 teachers entitled to benefits under former plans are members Minneapolis Superintendents, supervisors, principals, and Compulsory teachers St. Paul G. Qualifications for superannuation or service retirement Service Immediately Compulsory retirement age IOWA Cedar Rapids Des Moines 70 Davenport “ee 60 60 55 Sioux City MINNESOTA Duluth awee 55 err Minneapolis A member may at any time apply to the board for a benefit (70 in 1939-40 fo hea 69 in 1940-41 20 68 in 1941-42 (67 thereafter St. Paul $400 50 25 * By schoolboard rule. > Sixty-five after July 1, 1941. —_—_———— Location WA Cedar Rapids Davenport Des Moines Sioux City MINNESOTA Duluth Minneapolis H. Superannuation or service retirement allowance $40 a month maximum; if $200 has not been contributed teacher may elect to have one twenty-fourt! of deficit deducted each month from retirement allowance; teachers with less than 30 years’ service shal! be allowed an amount which shall bear the same ratio to $480 as the teacher's aggregate term of service bears to 30, provided the teacher has contributed $200 or elects the above-mentioned manner of making up the deficit $480 annual annuity payable quarterly, if teacher has not paid $200 in contributions, deficit ducted, one-eighth from each quarterly payment over first 2 years a. Annuity, the actuarial equivalent of accumulated contributions b. Pension equal to four-fifths amount of annuity; total pension not more than $480 or on sixtieth of average final salary times number of years of membership service Total service retirement allowance not to be less than $1.25 times total number of years of service otherwise pension shall be increased to bring total allowance to minimum; maximum retirement allowance to be $40 per month $500 per year payable quarterly not in advance; provided member has contributed $200 is deducted from first quarterly retirement allowance Annuity payable in 10 equal monthly installments from September to June inclusive, equival seventieth of the average contract salary for last 10 years of service times the number of yea for which member has paid contributions and arrearages (latter for prior service credit) a. Single payment or installments, payments from member's accumulated contributions Annuity from city’s payments on member's account, first payment of which is to be after 50th birth day; city credits on account of member before 45 years of age are cancelled if teacher withdraws with less than 10 years of service Additional annuity on account of prior service provided member does not cease teaching before age 50 except for disability $600 per year payable in 12 equal monthly installments; if member has not paid $400, 25 percent of pen sion shall be retained until deficit is met. After January 1, 1940, the allowance shall be $900 annually with an additional $1 per month for each year of service over 25 up to a period of 10 years additional] service. Present members may elect to stay under old plan yment Location IOWA Cedar Rapids Davenport ‘ Des Moines Sioux City I. Disability retirement Qualifications Allowance Twenty years as public school teacher; 15 One-year allowance voted annually by board must be by years in district unanimous vote. Maximum $480; to be same ratio t $480 as years of service is to 30; $200 must have been paid by member; otherwise provision is made for payment deficit Ten years in district. Proof of disability by Maximum $480; to be same ratio to $480 as years ¢ affidavit of 2 physicians appointed by board service is to 30; $200 must have been paid by member of directors otherwise provision is made for payment of defi a. On member's request: affidavit of at least a. On member's request: effective on date set by b one physician for proof of disability; as probable time of the beginning of the disability board may require medical examination b. On superintendent's request: effective on date of re- by one or more additional physicians ap- quest of superintendent, or on date member ends active pointed by board service, if later than former date On superintendent's request: medical ex- Disability allowance: (1) annuity the actuarial equivaler amination of not fewer than two phys- of accumulated contributions at time of retirement; (2 icians appointed by board member has served 10 or more years, he is entitled t pension equal to 72 percent of the annuity; total not exceed $432 nor be greater than one one-hundred eightieth of average final compensation times number of years ot membership service Total disability retirement allowance for members wit! 10 or more years’ service shall not be less than $1.10 times total number years of service, nor less than $16 a month. Otherwise pension shall be increased to meet minimum. Maximum disability allowance $36 a month Ten years’ service in district Allowance bearing same ratio to $500 as employee's term of service bears to 30 years. Maximum allowance $500 (I continued on next page (Table 2, I—Continued) MINNESOTA Duluth Minneapolis Less than 55; 10 years’ teaching service, 5 years in district. Written medical report must accompany application. Board may require further medical examination to prove disability Under 50; contributing member for not less than 5 years immediately preceding disa- bility with proof that disability has existed for 60 days before application for disability retirement Five or more years’ service in district, dur- ing which time member has paid dues of as- sociation. Affidavits of 2 reputable physi- cians, not partners, necessary; board may require further medical examination as proof of disability Annuity purchasable by member's deposits plus pe equal to 20 percent of the average contract salary o ber for last 10 years of service, to be paid in 10 monthly payments from September to June in Or member may elect alternative: smaller allowan unpaid balance payable to estate if claimed wit years Annuity equivalent to the annuity which would | available to member on 50th birthday normally Annuity in proportion .o $900 as number of y: service is to 25; subject to requirement of payment $400; provided at least 5 years of service have be: St. Paul Location J. Optional benefits IOWA Cedar Rapids Davenport Des Moines Sioux City MINNESOTA Duluth Minneapolis No provisions No provisions Choice: (1) Reduced allowance provided annuitant’s unpaid balance is paid to beneficiary or es a lump sum. (2) Beneficiary receives annuity payments thruout life; allowance of annuitant ther reduced during his life. (3) Beneficiary receives half the annuitant’s allowance thruout life. Choice must be made before first payment of a retirement allowance becomes due; if no choic: above be made, full retirement allowance is payable to annuitant and all payments cease at deat! member. If member appears incompetent to choose option, choice may be made by husband j guardian, or other representative legally appointed. No provisions Choice: (1) Reduced allowance provided annuitant’s unpaid balance is paid to beneficiary or estat: a lump sum. If no claim for balance be made within 10 years of death of annuitant, balance is forfeit to retirement association. (2) Total amount shown on the account of the association to be paid w same has been adjusted to the date of retirement and approved by the board of trustees. If member fails to make choice, full retirement allowance is paid thruout life of member. Choice: (1) Lump sum payment of member's accumulations. (2) Annuity payable to member during lif (3) Annuity payable to member during life and in the event member dies before 180 monthly paymer have been made, payments to be continued to beneficiary or estate until 180 payments have been mac: (4) Annuity payable to member during life and after death of member one-half monthly payments t paid to beneficiary during his life. No provisions K. Payments in case of withdrawal or death before retirement Withdrawal Death IOWA Cedar Rapids Davenport Des Moines Sioux City MINNESOTA Duluth Teacher has no vested interest in funds Teacher has no vested interest in funds Total contributions without interest for first 3 years, to be paid within 30 days of written re- quest for same Total contributions without interest for first 3 years, to be paid within 30 days of written re- quest for same Total amount of contributions; application for same must be made within 10 years { 102] No heirs, devisees, legatees, creditors, or assigne: shall be entitled to any portion of the funds No heirs, devisees, legatees, creditors, or assigne: shall be entitled to any portion of the funds Total contributions with interest to be paid within 30 days following filing of proof of death and estab- lishment of party or parties entitled to payment Total contributions with interest to be paid within 30 days following filing of proof of death and estab- lishment of party or parties entitled to payment Same refund as in case of withdrawal (K continued on next page Table 2, K—Continued) M nneapolis If teacher withdraws before hi } < ym pleted 10 years of service in district, tl ty deposits accumulated from credits to member before age 45 are to be cancelled not been made Fifty percent of contributions if withdrawal occurs within first 5 years; 60 percent if with drawal occurs from 6 to 10 years after joining; graduated to a maximum of 90 percent refund to members who withdraw after 21 to 25 years Location L. Restrictions on investments IOWA Cedar Rapids Investments made only in those securities permitted un of lowa Davenport Investments permitted savings banks of low: Des Moines Investments of level premium life insurance companies organized under the laws of Sioux City Investments permitted savings banks of Iowa MINNESOTA Duluth Article VI of the Articles of Incorporation outlines in detail the restrictions on investment United States government bonds, bonds of states and municipalities; other securities pern banks in Connecticut, Massachusetts, Minnesota, New York, and Pennsylvania provided ments never exceed 10 percent of the total assets of the association. Certain first mortg vided that the total amount invested in real estate mortgages may not exceed at face vali interest, 70 percent of the total assets of the association in such securities as are authorized for the investment of the sinking other states 1 ir assessed Minneapolis he funds shall be invested only fund of Minneapolis and the permanent school fund of Minnesota and in like securities of and municipalities therein, whose net bonded indebtedness does not exceed 7 percent valuation, and in bonds, the payment of which is guaranteed by the United States; | led, however that the association shall not be restricted by any minimum yield or interest rate ion applicable to any of such investments United States government bonds and certain other interest-bearing bonds of state palities thereof Location M. Actuarial investigation of service and death experience ° IOWA Cedar Rapids No provisions Davenport No provisions Des Moines Once in every 5 years Sioux City No provisions MINNESOTA Duluth Once in every 3 years Minneapolis Every 5 years St. Paul No provisions * Actuarial valuations of the liabilities are frequently made annually in those systems on an actuarial basis. The tabulation refers to investigation of service and death experience. within 1 estab- ment withi Table 3.—Provisions of Special Mandatory State Legislation Providing for Retirement of Teachers in Certain Cities or Classes of Cities — . Zon FON & > FPO WTO AZABRFr AS Page Scope of legal provisions Type of plan Administration of system Employee participation in administration........ Employer’s contributions Employee’s contributions Types of positions covered Membership: voluntary or compulsory Superannuation or service retirement Compulsory retirement Disability retirement Prior service Optional benefits Payments in case of withdrawal or death before retirement. . . Restrictions on investments Actuarial investigation of service and death experience If funds are insufficient Miscellaneous provisions TABLE 3.—PROVISIONS OF SPECIAL MANDATORY STATE LEGISLATION PRO- VIDING FOR RETIREMENT OF TEACHERS IN CERTAIN CITIES OR CLASSES OF CITIES Atlanta, Ga. n, Mass. i, RB. I. icago, Ill. ord, N. H. roit, Mich. viding ies Hartford, Conn. Milwaukee, Wis. Montgomery, Ala. New Orleans, La. L Newport, R. Omaha, Nebr. Providence, R. I. Washington, D. C. Wilmington, Del. Location New Haven, Conn. A. Scope of legal provisions B. Type of plaa Cities of more than 150,000 population Joint ntribut Boston and Suffolk Count Town of Bristol Joint-contributory City having over 500,000 population Joint-contributory School district of Concord Joint-contributory First-class districts Joint-contributory Hartford Pension First-class cities Joint-contribut Montgomery Pension New Haven city school district Joint-contributory Parish of Orleans Joint-contribut Newport Joint-contributory School district in city of metropolitan cla Joint-contributory City of Providence Joint-contributory District of Columbia by act of Congress Joint-contributory Wilmington Joint-contributory Location Atlanta, Ga. Boston, Mass. Bristol, R. I. Chicago, Ill. Concord, N. H. Detroit, Mich. Hartford, Conn. Milwaukee, Wis. Montgomery, Ala. New Haven, Conn. D. Employee participation C. Administration of system in administration Board of trustees: mayor, city comptroller, and treasurer of No provisions city Retirement board: city treasurer, one appointed by mayor, One member of system chosen and one appointed by other 2 from membership of system other 2 members of retirement boar term 4 years Board of trustees: president or chairman of school committee, Three teachers 3 members of said committee, 3 representatives of teachers, superintendent of schools, and town treasurer 3oard of trustees (9 members): 3 members of schoolboard, Six contributing me er f syste 6 members of system; chairman of finance committee of board term 3 years of education, ex officio member Board of education Advisory committee; 3 ibers of sys tem; term 3 ye Retirement fund board: president and vicepresident of board Three teachers to be ele of education, other member of schoolboard appointed annually manner as retirement board sl by president, superintendent of schools, 3 resident teachers. scribe Ex officio treasurer shall be city treasurer; city controller shall be ex officio controller of retirement fund board Pension commission: 3 electors of the city none of whom No provisions shall be an employee thereof or shall hold any other elective or appointive office in the city government. No more than 2 members shall be of the same political party Term 3 years; appointments made by mayor City treasurer, ex officio mem- ber and secretary of commission, without vote Board of trustees: president of managing board of schools, Four teachers 2 Tw 4 other board members, 4 teachers men and 2 women, not more than one of each 6 to be principal or viceprincipal Board of education No provisions Board of education and sinking fund commission of city shall One teacher elected by teachers be in charge of funds; a board of retirement shall consist of 2 public schools; term 2 year members of board of education, one member of board of alder- men, city treasurer, and a teacher. (C and D continued on next page) [105 ] (Tablé 3, C and D—Continued) Board of trustees: superintendent of schools, 3 members of Five teacher members; 6-year t schoolboard, 5 teacher members New Orleans, La. City treasurer, 2 members of school committee, 2 qualified Two members of system; 2-y¢ electors of the city who by experience and training are espe- cially qualified in the manner of investments and administration of trust funds, to be appointed by the chairman of the repre- sentative council, 2 members of retirement system Newport, R. I. Omaha, Nebr. Board of education No provisions Retirement board: mayor, chairman of the joint standing com- No provisions mittee on finance of the city council and city auditor, ex officio; 2 members who are not officers or employees of city, elected by Providence, R. I. Washington, D. C. Wilmington, Del. city council in joint convention District commissioners Board of retirement: president and chairman of teachers’ com- mittee of board of education; city treasurer, superintendent of schools, 3 members of teaching staff No provisions Three members of teaching staff 3 years Location E. Employer's contributions F. Employee's contributions Atlanta, Ga. Boston, Mass. Bristol, R. L. Chicago, Ill. Concord, N. H. Detroit, Mich. Hartford, Conn. Milwaukee, Wis. Montgomery, Ala. New Haven, Conn, Amount equal to 3 percent of salary of each member up to $200 a month Normal contribution: such percent of the annual compensation of all members as is sufficient to pro- vide during the active service of the average new entrant for all pensions for which the city may be liable on his account Accumulated liability contribution a constant per- cent of the total payroll of all members sufficient to provide during the period 1932-62 for all pensions to be paid on account of prior service credits not pro- vided by accumulations prior to 1932; to be at least 1 percent greater than interest on the accumulated liability, and shall be at least 3 percent greater each year than the amount for the preceding year Town appropriates $500 annually Eight-tenths mill on each dollar of assessed valua- tion of all taxable property on all taxable property in city, levied annually District appropriates annually for accrued liability fund and toward disability retirements From general fund of state, $325,000 annual appro- priation or less as determined by apportionment of such amount as shall be in same ratio to amount apportioned state teachers retirement fund as the number of teachers contributing to Detroit system is to number of teachers contributing to state system Estimate of funds necessary is made annually for inclusion in city budget Annually 40 percent of the surtax on net incomes of $3000 and over, paid out of Milwaukee Pension available from school funds as salaries of other teachers are paid If assessments on salaries of teachers plus income from permanent fund shall be less than sufficient to pay the annuities, the board of finance shall appropriate and pay to the treasurer of the fund an amount equal to the deficit Three percent of salary to $200 a month: 4 percent if wife is named as beneficiary Four percent of salary deducted each pay day One percent of annual salary on maximur salary of $1200; deductions made semiannual), Monthly deductions from $5 to $12 a mont! depending on length of service. Members ar classed into four service groups Percent of salary from 3% to 5, depending age of entry to system, up to salary of $2000 If members’ contributions accumulate more than sufficient to provide annuity one-half salary, excess contributions to be re- funded at time of retirement One to 5 percent of salary up to $1500 None—pension plan For members employed since 1935, $4 a mont! for the first 10 years; $6 a month for the next 5 years; $8 a month thereafter None—pension plan One percent of annual salaries of teachers who have taught 10 years or less; 2 percent of the salaries of those who have taught for more than 10 years. Maximum $48 a year. (E and F continued on next page) ionth 4 y day kimur nua nont! rs who the nan re) Table 3, E and F—Continued) y Orleans, La At least 3 percent of earnable compensation for eact Thr percent of lary; may nged by member, to be divided between normal ntributior t rd, but must be not Ie t 3 and accrued liability contribution (now 5.37 percent than 4 percent Member vy ¢ t to make iditional contributions in single pay t or by reased percentage deducted fr iry not more than would produ if of ' salary if he ret r service retirement such of the earnablk Board shall determine the pe tag y Normal contribution compensations of all me bers, which, if contributed which when dedu on the basis of the compensation of the average new prospective earnable annual per | entrant thruout his period of active service while a accumulated at regular interest until age 62 member, would be sufficient to provide at the time of shall be computed to provide at that his retirement, the total amount of his pension re annuity equal to seven-twentie perce serve, based upon the pension to be paid because of of average final salary for each year service rendered while a member. asa member. (Average final salary means aver Accrued liability contribution: percent of annual age during last 10 years of serv list 1 compensations of the members which will be su lary in excess of $2200.) the accrued liability within 30 to amortize ficient years. City shall never be required to pay more than $18,000 in any one year. From general fund of school district an amount not One to 1% percent salary less than 1% times the amount of salary assessment and not less than necessary to meet the payment provided for Providence, R. I A uniform and constant percentage of the earnabl \ nstant percentage of salary w whet compensation of each new entrant which, if cor lucted from each payment of } prospe tributed on the basis of his compensation thruout | earnable annual compensation pr entire period of active service, would be sufficient t gibility for service retirement and provide at the time of his retirement the total an regi interest until hi ttair of his pension reserve; and, as deficiency contribu minimum age of service retir ent f I tion, a percentage of total compensation of all men will provide at that tim in bers which is equivalent to 4 percent of the amount five-eighths of 1 pe of f of the total pension liability not dischargeable by the for each year « i normal contribution. Washington, D. C. A level percentage of the payroll of all participant Amount computed to nearest tent f lollar adequate to cover the liability normally accrued, plu ifficient with interest at 4 pe t to purel a further computed contribution to be sufficient t an annuity equal to 1 percent verage annual liquidate within 30 years of July 1, 1926, the accrued salary received during 10 year ed ] liability of that date preceding retirement, tor ¢ 1 year of serv after June 30, 1926. Maximu per tions to be made on salar p to $2000 Wilmington, Del. School district pays not less than $1000 a year ty One percent of salary during first 10 ye pays not less than $2000 a year. service; 2 percent of salary ng per service from 10 to 20 year 3 perce! salary after 20 years service; max 1 $50 y Payments cease when de; ts equal $400 H. Membership: voluntary Location G. Types of positions covered or compulsory Atlanta, Ga. All school employees, and city employees except firemen and police Compulsory since 1935 for all new men employees earning $1200 or more voluntary for those of less thar $1200 salary Boston, Mass Employees of Boston and Suffolk County, any app: ve or ele Compulsory for new employes tive officers whose duties require at least half time, and who are paid voluntary with t ‘ ] from city or county funds, except those elected by the people and at the time enactment court officers < Bristol, R. I. Teachers Compuls« Chicago, III. Teachers Compulso Compulsory Concord, N. H. Teachers Detroit, Mich. Teachers and all contract employees Compulsory Pension plan (no membership this sen All city employees including employees of board of education town of Hartford Hartford, Conn. Milwaukee, Wis. Superintendent, principals, supervisors, welfare workers, truant Compulsory since 1925 unless over and attendance officers, teachers, and full-time recreation workers 50 years of age when employed (G and H continued on next page [107 ] (Table 3, G and H—Continued) Pension plan (no membe: this sense) Montgomery, Ala. Teachers New Haven, Conn. All teachers regularly employed in the public day schools, inclucing Compulsory the superintendent and members of the supervisory staff New Orleans, La. Any person regularly employed as a teacher, superintendent, as- Compulsory sistant superintendent, principal, viceprincipal, supervisor, secre- tary, superintendent of maintenance, supervising architect, heads of departments, cadets, instructors, librarians, and assistants to above not employed temporarily or as a member of the admin- istration office force Compulsory as part of e: ment contract Any employee who is required to have a certificate from the state department of education in order to be employed in the public schools Newport, R. I. All members of teaching staff, including supervisors and assistants Compulsory to superintendent, principal, and teachers Omaha, Nebr. Compulsory at end of months’ employment All regular and permanent employees and officers of the city whose business time is devoted exclusively to the service of the city; city council members are excluded Providence, R. I. All teachers permanently employed in public day schools of the Compulsory District of Columbia Washington, D. C. Compulsory as part of contr of employment Superintendent, assistant superintendent, principal, assistant prin- cipal, department heads, supervisors, directors, and teachers Wilmington, Del. I. Superannuation or service retirement Qualifications Allowance Atlanta, Ga. Boston, Mass. Bristol, R. I. Chicago, II. Concord, N. H. Detroit, Mich. Hartford, Conn. Twenty-five years of city service Sixty years of age Contributor for 5 years or paid amount equal to 5 years’ contribu- tions plus 8 percent, who has taught in town schools at least 35 years if a man, or 30 years if a woman; 20 years of which must be immediately preceding retirement Twenty-five years’ service and pay- ment of aggregate sum _ specified under heading ‘‘Employee's Contri- butions” (see p. 106) Age 60; 20 years’ service in district Thirty years’ service, 20 years in dis- trict, next preceding retirement For men, age 65; for women, age 60; after at least 15 years of continuous service immediately preceding retire- ment if in the employment of the city on May 5, 1927, or at least 20 years of continuous service immediately preceding retirement if employed after May 5, 1927. If involuntarily retired after age 55, member will be entitled to same pension as he would have been had he been employed to regular retirement age. Half salary of last year of service, maximum $100 a month Annuity, the actuarial equivalent of accumulated deductions and equivalent pension; if a member from time of enactment an additional pension having an actuarial value equivalent ¢ twice the contributions he would have made during prior servic« If a member for 15 years or more thus earns an allowance of less than $480 a year, he is given an additional pension t make total allowance $480; otherwise, maximum allowanc: shall be equivalent to half average annual compensation during 5 years immediately preceding retirement. Maximum $300, payable thruout life or while woman teacher is single For 25 years’ service, full service annuity, maximum $800 $40 additional for each year of service over 25; maximum $1200 If retired automatically on account of age, but with less tha: 25 years’ service, proportionate amount of $800 Maximum of half of salary is payable at age 70 after at least 40 years of service, of which 30 years must have been in district otherwise, as voted by board according to McClintock's annuity tables Uniform annuity as may from time to time be fixed by board Annual allowance, payable monthly, equivalent to 2 percent of average annual salary for the 5 years of active service im- mediately preceding retirement times the number of years o! active service; or, 60 percent of such average annual salary whichever shall be the smaller. Maximum $2000. Allowance payable to teachers shall be reduced annually by an amount equal to the pension, if any, when such teacher is entitled to receive from the state teachers retirement system by reason of the state's contribution to such fund. The amount of such reduction is to be computed on the basis of such pension being payable as a life annuity on the pensioner’s life regardless of the optional benefit chosen by the teacher. (I continued on next page) [ 108 ] Table 3, I—Continued) Milwaukee, Wis. No age specified. Retirement prior to 35 years’ service is on disability only. Montgomery, Ala. No provisions fo ment ¢ pt f lisability New Haven, Conn Thirty years’ service, last 20 in city ze annual salary for 5 years, la of New Haven, upon majority vote n nimum $800; maximum $1200 of schoolboard; upon request of teacher at least 60 years of age after 30 years’ service, last 20 in New Haven; must have paid into fund sufficient to equal amount of annuity first year; otherwise, 20 percent of deficit shall be withheld from eact monthly payment until such amount shall have been contributed New Orleans, La. Sixty years of age or 40 years of Annuity the actuarial equivalent of accumula service tributions; and pension which shall be the a at the minimum age at which member is elig retirement, of the accumulated regular cont member at that time. If member has made special contributions an additional annuity upon service retirement whi the actuarial equivalent of said special contributi with regular interest thereon, but the additional not influence amount of pension payable from city Newport, R. I. Annuity the actuarial equivalent of accumulated and pension equal to seven-twentieths of 1 percent final salary n iplied by number of years of servi tirant last bec: a member, and an additional pe has prior service credit. Average final salary 1 1 during last 20 years of service disregarding salary $2200.) Omaha, Nebr. Thirty-five years; 20 years in district $900 a year in equal monthly payments Providence, R. I. Age 602 Annuity the actuarial equivalent of accumulat« and a pension equal to five-eighths of 1 perce pensation multiplied by the number of years member, plus a prior service pension if member Age 62 and continuous employment Annuity equal to 1 percent of average annual from age 52, except for leave of during 10 years immediately preceding retiremet absence of no more than 2 years of service after June 30, 1926; plus an additi Washington, D. ( prior service, if eligible. Teachers with I service shall be paid benefits figures on the | Wilmington, Del. Board may retire member at 65 years $400 a year if service has been full 35 y of age, after 30 years of service; after amount for service of between 20 and 35 year member has served 35 years, 20 in Wilmington, and paid $400 into fund, he may request retirement * Different minimum age for voluntary retirement of different groups of employees in system; for teachers it is Location J. Compulsory retirement Atlanta, Ga. Schoolboard rule not part of pension law: age 65, may be extended to 70 one sion would qualify employee for pension (25 years’ service Boston, Mass. Age 70, except members of judiciary, heads of departments, and members of ments; after 60, head of department may apply for retirement of employee wh« hearing if same is requested within 10 days of notice Bristol, R. I. No provisions Chicago, III. No provisions in law herein analyzed’ Concord, N. H. Age 70 Detroit, Mich No provisions Hartford, Conn. Age 70 for men, 65 for women nr ( written application extend period of active service Milwaukee, Wis. No provisions* > A separate law requires retirement at age 65 on a pension of $5 © A separate law requires retirement at age 70. (J continued on next page) (Table 3, J—Continued) Montgomery, Ala. New Haven, Conn. New Orleans, La. Newport, R. I. Omaha, Nebr. Providence, R. I. Washington, D. C. Wilmington, Del. No provisions Board of retirement and board of education have right to retire teacher who has given 30 years last 20 of which have been in New Haven No provisions Age 70 Forty years’ service if 65 years of age Age 70; law permits extension one year at a time by vote of board, upon petition of member: if re: after 70, benefits payable as at 70. Compulsory retirement at age 70 passed by schoolboard res Age 70; may be extended by two-thirds vote of board of education No provisions Atlanta, Ga. Boston, Mass. Bristol, R. I. Chicago, Ill. Concord, N. H. Detroit, Mich. Hartford, Conn. Milwaukee, Wis. Montgomery, Ala. New Haven, Conn. K. Disability retirement Allowance No provisions for disability retirement Less than 60 years of age; 15 years’ or more city or county service; annual medi- cal examination until age 60 Contributor for at least 5 years, continu- ous service of not less than 10 years Twelve years’ or more service but less than 25 years in public schools of United States, and payment of aggregate sum specified (see page 106) Under 60 years of age Ten years next preceding disability, in district Men under 65 and women under 60, after at least 10 years of service; or, men under 66 and women under 61 with 11 years of service; or, men under 67 and women under 62 with 12 years of service; or, men under 68 and women under 63 with 13 years of service; or, men under 69 and women under 64 with 14 years of service, are eligible for disability retirement pro- viding service is immediately preceding disability and applied for within one year after termination of active service From 25-35 years’ service, which may in- clude 10-15 years’ service outside district Twenty-one years’ service in county Fifteen years’ service, last 10 in city of New Haven Annuity, actuarial equivalent of accumulated deduct pension equal to annuity but not to exceed 90 percent pension which would have been provided at age 60: add tional pension such as to make total pension from city equ to 90 percent of pension city would have paid retiran: age 60 had he remained in service without change in salar If disability is due to accident in line of duty, t allowance shall be equal to three-fourths annual compens tion received in year before accident (with adjustment necessary under provisions of workmen's compensation law No special provision in act After 12 years’ service annuity of $300 with additior annuity of $38 for each year of service over 12 At discretion of board, subject to provisions of law Annuity in proportion to amount paid retirants after 30 years’ service, which years of service are to 30 Annual allowance, payable monthly, equivalent to 2 percent of average annual salary for the 5 years of active ser\ immediately preceding retirement times the number o years of active service; or, 60 percent of such average annual salary whichever shall be the smaller. Maximum $2000. Aliowance payable to teacher shall be reduced annually by an amount equal to the pension, if any, which such teacher is entitled to receive from the state teachers retiré ment system by reason of the state's contribution to such fund. The amount of such reduction is to be computed on the basis of such pension being payable as a life annuity on the pensioner's life regardless of the optional benefit chosen by the teacher. After 25 years’ service, $800 plus $40 a year for each addi tional year in district; otherwise as many twenty-fifths o! $800 as years of teaching service are of 25 Half highest salary received at any time during service, not to exceed $600 a year One-thirtieth of total annuity for service retirement, for each year of service, not exceeding 30. Must have paid in sufficient to equal amount of annuity paid first year; other wise, 20 percent of deficit shall be withheld from each monthly payment until such amount shall have been con- tributed. (K continued on next page) (Table 3, K—Continued) New Orleans, La. Newport, R. I. Omaha, Nebr. Providence, R. I. Washington, D. C. Wilmington, Del. Ten or more years of service; medic inuity, the actuarial equivalent of examination required annually during ate rula ntributions, and first 5 years and once in every 3 years 1 provided by regular cont thereafter, to age 60 { ‘ annuity if member has mat ber has prior service cre ension equal to twice the le without prior service which would have been n prior service, had contributi . been made during the peri r ry, additional pension t at least equal to $300 a year. Ten years’ or more service; medical ex Annuity, the actuarial equivalent of ret amination once each year during first 5 contributions and a pension which years, and once in every 3 years thereafter annuity shall equal six-tenths of 1 pe until retirant is 62 salary multiplied by the number of Minimum, 10 percent average final sevenths of total amount he would remained in service until age 62 Aver means average during last 10 years of servi salary in excess of $2200.) Twenty-five years’ total service, 20 years Such percentage of $900 as years in district Ordinary disability: ten or more f Annuity, actuarial equivalent of accu i service and pension which, together with annuity tenths of 144 percent of final compensatio number of years of total service Minimu on basis of 15 years’ service unless member entered city service within 15 years of minimum age ment Accidental disability; permanent ir ’ nn the actuarial equivalent from accident ions at the time of retirement nd final compensation Age 45. Continuous employment in dis- it as for superannuation ret trict for not less than 10 years immedi- ately preceding disability, providing dis- ability has not been due to vicious habits. Twenty years’ service, 15 in Wilmington mpute same as for service retire! imount of $400 after 35 years Location Atlanta, Ga. Boston, Mass. Bristol, R. I. Chicago, II. Concord, N. H. Detroit, Mich. Hartford, Conn. Milwaukee, Wis. Montgomery, Ala. New Haven, Conn. L. Prior service“ (see also deficiency contributions noted under heading “Employer’s Contributions’’) Prior service credit granted for Atlanta service only; employees pay 2 to 3 percent claimed. Deficit must be made up in 50 months if member claims prior service upon reent service. City pays deficiency contribution. Eligible member receives pension actuarially equivalent contributions he would have made had he been a member during period of prior service No provisions Teacher pays a sum equal to what he would have contributed (had he been a cx period) with interest at 4 percent from the time such payments would have been made sum equal to the amount of appropriation by the board of education, withheld from p t fund because he was not a contributor during that time, also with 4 percent interest; and “‘what other sum may be necessary to indemnify said fund against any loss it may have sustained by re receiving less public contribution than it would have received if such teacher had been a regular contribu tor during such period.” No service outside district in excess of 10 years, nor any service before age 25 shall be counted bears pension cost for prior service. No provisions No provisions Prior service arrearage payments of those who elected to come into fund in 1935 or cl to amended law of 1925 must be made up within 5 years; otherwise prior service payment any time before retirement. No provisions Teachers who had taught 40 years at time of enactment were retired without having to pay amount of first year’s annuity. In each case “‘prior service’ refers to service rendered prior to date of membership (L, continued on next page) {111 ] (Table 3, L—Continued) New Orleans, La. Newport, R. I. Omaha, Nebr. Providence, R. I. Washington, D. C. Wilmington, Del. Board pays such percentage of total annual compensation of all members which is equivalent to 4 [ of the amount of total liability of the retirement fund on account of prior service credit. Prior service shall consist of time teacher was a member of former retirement system; more than § but not exceeding 10 years, teacher served in city but did not belong to former retirement syste not exceeding 15 years teacher served outside district; for which member upon retirement wil! re additional pension equal to seven-tenths of 1 percent of the salary last paid before becoming a of present retirement system multiplied by the number of years of prior service to his credit. No provisions City pays deficiency contribution sufficient to pay pension equal to 114 percent of final comps multiplied by the number of years of prior service credited to member. District pays deficiency contribution sufficient to liquidate liability for prior service credit wit years; pays each eligible member 1 percent average annual salary received during 10 years imme preceding retirement for each year of prior service plus $15 for each year of such service. In prior credit member may claim not to exceed 10 years for service outside District. No provisions Location M. Optional benefits Atlanta, Ga. Boston, Mass. Bristol, R. I. Chicago, Ill. Concord, N. H. Detroit, Mich. Hartford, Conn. Milwaukee, Wis. Montgomery, Ala. New Haven, Conn, New Orleans, La. Newport, R. I. Omaha, Nebr. Providence, R. I. Washington, D. C. Wilmington, Del. No provisions Option must have been selected at least 30 days before death of member: (1) Unpaid balance to be paid to beneficiary or estate in lump sum. (2) Annuity payments to be continued to beneficiary thruout | (3) Beneficiary, thruout life, receives half annuity paid member. No provisions No provisions Unpaid balance to be paid to beneficiary or estate in lump sum in case retirant elects to receive lesser sum instead of regular allowance No provisions ¢ No provisions No provisions ¢ No provisions No provisions Unpaid balance of accumulated regular contributions to be paid to beneficiary or estate in lump sum Must be made at least 30 days before death; choice of regular allowance as specified or lesser allowan and unpaid balance to be paid to beneficiary or estate No provisions Must be made before first payment of benefit. Choice: (1) Unpaid balance to be paid to beneficiary orestateinlumpsum. (2) Annuity payments to be continued to beneficiary thruout life. (3) Beneficiary, thruout life, to receive half the annuity paid member retiring. (4) Any other benefits to be payable t beneficiary if approved by actuary and retirement board. Law provides for options to be incorporated in rules and regulations of commissioners of District, but does not designate options. In the regulations of the commissioners, choice of several options is provided No provisions * However, see p. 115. N. Payments in case of withdrawal or death before retirement Withdrawal Death Atlanta, Ga. Contributions are refunded less 2 percent for each If death of member, who is a husband and who ! year of membership named wife as beneficiary, occurs after he is eligib!: to retire but is still in active service, widow re ceives three-fourths of pension which he would have been receiving if retired. (N continued on next page Table 3, N—Continued) Mass. ord, N. H. t, Mich. Hartford, Conn Milwaukee, Wis Montgomery, Ala New Haven, Conn New Orleans, La Newport, R. I. Omaha, Nebr. Providence, R. I Washington, D. ¢ Wilmington, Del. Total contributions with interest Total contributions with inte nt in line of duty s are payable to legal represer ry pension is payable t ildren under 18 No provisions Four-fifths contributions 5 years All contributions with 2 percent ir ne refund as in case of withdr Application for refund must be within 18 Seventy-five percent of months of cessation of service: if 5 years or less executor or administrator service credit, refund of 100 percent of contribu- tions; if service credit 5 to 10 years, refund of 75 percent of contributions; if service credit more than 10 years, refund of 50 percent of contributions Teachers make m pension plan Half contributions or total, depending on an San fund as in case of withdraw under which member entered fund hers make mn pension p If dismissed, deposits shall refunded without ( ovisions interest. Regular contributions, prior to September 1, 1939 refund as in withdraw refunded without interest; regular contributions after September 1, 1939, refunded with interest of 3 percent; special contributions with interest 4 percent Total contributions with interest Same refund as in withdraw Teacher forfeits deposits when discharged; no pro No provisions vision for refund at time voluntary withdrawal Total contributions with interest Same refund as in withdraw Total contributions with interest Same refund as in case of withdraw Board shall prescribe regulations: since 1936 re No provisions funds have been made in full without interest Location Atlanta, Ga. Boston, Mass. Bristol, R. I. Chicago, JIl. Concord, N. H. Detroit, Mich. Hartford, Conn. Milwaukee, Wis. Montgomery, Ala. New Haven, Conn. New Orleans, La. Newport, R. I. Omaha, Nebr. Providence, R. I. Washington, D. C. Wilmington, Del. O. Restrictions on investments No provisions Such as were permitted by the sinking fund commissioners of the city No provisions 1 Such investments as are permitted to township trustees for school funds No provisions Such as are permitted savings banks No provisions Such as are permitted trust funds Funds not separated from regular school funds Such as are permitted trust funds under state law Such as are permitted domestic life insurance companies by state law Such as are permitted any city (of Newport) sinking funds Only in bonds of the city and county in which district is located and bonds of of the United States Such as are permitted sinking funds of the city or such securities as the city time authorize May be invested by United States Treasurer United States government bonds; state, county, and city bonds; school district bonds of Delaware [ 113 ] Location Atlanta, Ga. Boston, Mass. Bristol, R. I. Chicago, Ill. Concord, N. H. Detroit, Mich. Hartford, Conn. Milwaukee, Wis. Montgomery, Ala. New Haven, Conn. New Orleans, La. Newport, R. I. Omaha, Nebr. Providence, R. I. Washington, D. C. Wilmington, Del. P. Actuarial investigation of service and death experience / No provisions Once in every 5 years No provisions No provisions Occasionally on request of advisory committee No provisions No provisions No provisions No provisions No provisions Once in every 5 years Once in every 5 years No provisions Once in every 5 years No provisions No provisions f Actuarial valuations of the liabilities are frequently made annually in those systems on an actuaria! basis. The tabulat refers to investigation of service and death experience. Location Q. If funds are insufficient Atlanta, Ga. Boston, Mass. Bristol, R. I. Chicago, Ill. Concord, N. H. Detroit, Mich. Hartford, Conn. Milwaukee, Wis. Montgomery, Ala. New Haven, Conn. New Orleans, La. Newport, R. I. Omaha, Nebr. Providence, R. I. Washington, D. C. Wilmington, Del. City shall make up deficit from current funds On actuarial basis Ratable distribution of benefits City shall pay deficit from general tax levy for educational purposes On actuarial basis No provisions No provisions Schoolboard shall set aside from general school fund sufficient to meet needs and shall pay annually not less than amount paid by teachers the preceding year No provisions City shall pay deficit from general funds On actuarial basis On actuarial basis School district contribution shall not be less than is needed to meet provisions of act City shall pay deficit in ensuing year On actuarial basis Ratable distribution of benefits —_—_—— Location roit, Mic h. Milwaukee, Wis. Montgomery, Ala. Newport, R. I. Providence, R. I Washington, D. C. R. Miscellaneous provisions If retirant dies before he has r paid to estate which when added t Estate has right to unpaid balar Act applies to former teachers of System shall be under the supervi In event of accidental death in line of duty 1 application a pension of one-half the final comy tion of member shall be | hood or to children under 16 years of age; if there is no wid or children unde dependent parents of member Not to exceed 10 years’ credit may be obtained by member for service outside of District paid into fund amount equivalent to what contribution r period would have 1 percent interest FIGURE III—FINANCIAL STRUCTURE OF TEACHER RETIREMENT PLAN IN NEW ORLEANS New Orleans Annuity Teacher's ™= i Teachers Savings Withdrewels 4@ oO a 28 ~~ Orleans Account oe ee es oe ws we ce OF wea ee ee, FF Annuity Refunds to Reserve Estate of Account Deceased Members Teachers Retired (with prior service Cc it) ‘A = \‘\ Surplus and Con-= tingency Account s& Teact Retired - eachers Retired sat te (without prior service Gifts, etc. credit 1 aw es ae a a > Table 4.—Provisions of Teacher Retirement Plans Adopted Solely upon A. B. C. D. E. F. G. H. I. EryoOZEr AS Local Authorization Page Legal basis Type of plan......... Administration Employee participation in administration Employer’s contributions Employee’s contributions Types of positions covered Membership: voluntary or compulsory Superannuation or service retirement Compulsory retirement Disability retirement Prior service . Optional benefits Payments in case of withdrawal or death before retirement... 1 Restrictions on investments Actuarial investigation of service and death experience Miscellaneous provisions TABLE 4.—PROVISIONS OF TEACHER RETIREMENT PLANS ADOPTED SOLELY UPON LOCAL AUTHORIZATION Location yoga, Tenn imbus, Ga. Grand Island, Nebr xville, Tenn. ie, Wyo. Macon, Ga. New York, N. Y. San Francisco, Calif. A. Legal basis iIboard res Charter prov Charter provisio Charter provision Schoolboard resolution Charter provision Schoolboard resolution Schoolboard resolution Charter provision Charter provision B. Type of plan Joint-contributor Joint-contributors Pension plan Joint-contributory Joint-contributors Pension plan Joint-contributor Joint-contributory Joint-contributory Location Augusta, Ga. Baltimore, Md. Chattanooga, Tenn. Columbus, Ga. Grand Island, Nebr. Knoxville, Tenn. Laramie, Wyo. Macon, Ga. New York, N. Y. San Francisco, Calif. C. Administration Schoolboard and special committee of teachers Board of trustees (five members): city comptroller, ex officio; 2 citizens of city not city employees, one an officer of a bank or a person of similar experience to be appointed by mayor with consent of city council; and 2 members of system Board of city commissioners City commissioners Schoolboard Pension board department, except the law department, and the city manager one representative from each city Schoolboard Board of control: president, treasurer, chairman of finance chairman of teachers and salaries committee of schoolboard, superintendent of schools committee, Retirement board: president of board of education, comptroller of city, 2 members appointed by mayor, one of whom is a member of board of edu- cation, 3 teacher members Retirement board: president of board of super- visors, city attorney, resident official of a life insur- ance company, officer of a bank to be appointed by the mayor and 3 members D. Employee participation in administration \ special committee of teachers is the teachers to consider applications f yf the system and to recommend same T'wo employee members of board bership; term 4 years No provisions No provisions No provisions Representative of education employees paying into the school pensionables No provisions Five teachers elected by Association Three 3 years teachers selected by contributor Three active members to members for term of 5 years Location E. Employer’s contributions Augusta, Ga. Baltimore, Md. Paid from current income A certain percent of the earnable compensation of each member and an additional percent as accrued liability contribution, to be 3 percent greater each year than preceding annual payment. Rates for normal and for deficiency contributions to be fixed by actuarial valuation [117 ] F. Employee’s contributions One and one-half percent of annual salary in quarterly installments of three-eighths of 1 per- cent; 144 percent of $1080 or of such amount as may be agreed upon by the teachers from time to time A constant percent of compensation which when deducted from prospective earnable annual pensation prior to age 60 and accumulated at regular interest shall provide at that I annuity equal to the pension to which mem be entitled at that age com- (E and F continued on next page (Table 4, E and F—Continued) Chattanooga, Tenn. Columbus, Ga. Grand Island, Nebr. Knoxville, Tenn. Laramie, Wyo. Macon, Ga. New York, N. Y. San Francisco, Calif. Not less than 3 percent of the school budget to be added to school budget annually and kept in sep- arate fund for the insurance and pension fund. City commissioners are authorized to levy sufficient taxes to raise the necessary revenue. The surplus must at no time fall below $10,000; extra appro- priations being authorized from time to time to maintain such amount in surplus. No special fund $50 a year for each teacher; $75 a year for those who were age 48 when resolution went into effect (1938) Two percent of salaries of school employees who join. City shall make up deficit in fund. No specific provisions; apparently no separate fund No specific provision Percent of earnable compensation of contributors plus $100,000 a year for deficiency contribution to be continued until prior service liability is accumu- lated Normal contribution equal to employees’ normal contributions plus an amount equal to benefits paid on account of prior service Maximum salaries of 1 percent deducted from ; None— pension plan An annuity or retirement income life ins policy sufficient to guarantee a minimum of $?5 month for life beginning at age 65. If age 4g time of resolution, $100 only need be contri! Three percent of salary None—pension plan Three percent of salary deducted monthly mum $33 per year Minimum, 3 percent, based on service, sex age. Such percent, if less than 3, sufficient wit interest to age 65 to provide annuity which w added to pension will provide allowance percent of average salary for last 5 years. Teachers contribute to and receive benefits the retirement fund only on the basis of that ; tion of their salaries which is considered as bei: paid from local funds. (This portion varies year to year but is approximately 80 percent total salary paid.) A normal rate based upon and nearest age at time of entry into syst« will provide for male members an average annuit at age 62 equal to two-thirds of 1,percent; and female members equal to 586/1000 of 1 percent the final compensation of such members for « year of service as members. Maximum salar $500 per month. Location G. Types of positions covered H. Membership: voluntary or compulsory Augusta, Ga. Baltimore, Md. Chattanooga, Tenn. Columbus, Ga. Grand Island, Nebr. Knoxville, Tenn. Laramie, Wyo. Macon, Ga. New York, N. Y. Principals, grade teachers, special teachers Compulsory for all teachers in ele mentary schools for white childr may be extended to include groups of teachers by board act All regular and permanent officers, agents, servants, or employees of the city except those appointed by governor and except members of police department Superintendent, teachers, principals, assistant principals, super- visors, secretaries to principals, clerks in office of commissioner of department of education, attendance officers, librarians, janitors, and all others on the department of education payroll All school and city employees Superintendents, principals, supervisors, teachers . All school and city employees School employees, not otherwise defined, are eligible for superan- nuation and service retirement; teachers, supervisors, principals, clerks, and school nurses are designated as eligible for disability re- tirement Teachers, principals, superintendent, supervisor, clerk City superintendent of schools, associate city superintendents, dis- trict superintendents, director and assistant director of division of reference and research, director and assistant directors of bureau of compulsory education, school census and child welfare, members (G [118 ] Compulsory after 6 service Voluntary Pension plan (no membershi; this sense) Compulsory; teachers over age will not be retained if they to participate in plan Voluntary; age limit, 35 years Pension plan (no membershi this sense) Compulsory Compulsory until member comes eligible for voluntary re- tirement; thereafter contribut are voluntary and H continued on next page Table 4, G and H—Continued) of board of examiners, directors branches, supervi: or and assis cipals, viceprincipals, assistants t all regular and special teachers New York, and all employees regular positions in the service and whose appointments were n the result of examinations held ment of education; also officers of city college. Francisco, Calif. All city employees except elective officers, member commissions, part time (not certified civil serv employment), temporary, or substitute employee institutions who render for compensation such serv able, persons receiving compensation from city institut are employed primarily for the purpose of training ployed under contract for a definite period and for the 1 of specific duties requiring professior or high te certain other specifically designated classes of e1 I. Superannuation or service retirement Location —__———_ - — Qualifications Allowance Augusta, Ga. Age 65 Annuity dete ned by the board from time to time stances demand: tw thirds paid by the board and or teachers tirement fund created by teacher's « ltimore, Md. Age 60 Annuity the ial equivalent of at time of retiremen us a pen fortieth average al compensation years of service as member plus service if elig Chattanooga, Tenn. Twenty years’ service, age 55 or 25 Half salary based on average salary } years’ service regardless of age $125 month; minimum, $60 mon Service in other city departments paid to beneficiary of retirant may be credited provided member has served as much as 8 years in the department of education. “olumbus, Ga. In discretion of commission (at re- Fifty percent of sala t time of quest of schoolboard under an old monthly (actually $25 month law still operative, 30 years’ service is required, 25 in city school system) Grand Island, Nebr. Age 65 Minimum of $25 a month except for teachers 48 at time plan was adopted. For these whatever nual premium of $175 will buy on an annuity. Knoxville, Tenn. Age 50. Twenty-five years of service One-half average monthly salary for highest 3 while an employee Laramie, Wyo. Women: age 60. Men: age 65. Maximum $50 a Twenty-five years of service, last 15 of which must have been in district. Macon, Ga. Provision only for disability retirement New York, N. Y. Age 65, after 35 years of service; or, Annuity, the actuarial equivalent of accumulated dedu if employed subsequent to enact- plus pension equal to 25 percent of average salary over ment, after 35 years of service with years of service, or any 10 consecutive year ex at least 20 in city tributor has rendered less than 20 years’ service, p equal 1 percent of average salary for each year of plus pension for prior service if eligible, but tot not exceed 50 percent of average salary San Francisco, Calif. Age 62 years with 10 years of con- An annuity, the actuarial equivalent of the mer tinuous service; or, age 57 after 30 lated contributions at the time of retirement years of continuous service purchased by the contributions of the city equal t of the annuity purchased by the accumulated tributions of the member plus a further pension f credit. Upon death of retirant a $500 death benefit Location J. Compulsory retirement Augusta, Ga. No provision except that board has right to retire teacher when teacher is disabled Baltimore, Md. Age 70 Chattanooga, Tenn. After 20 years’ service, commissioner of education may, with the approval of the board of commis order the retirement of any employee unfit for service because of disability or age. Ten-day w: notice is required. Employee may request hearing before board of commissioners and if dissatisfied decision of board after hearing, employee is entitled to trial de novo in the Chancery Court of the Columbus, Ga. In discretion of commission, at request of schoolboard Grand Island, Nebr. Age 65 Knoxville, Tenn. No provision in retirement law. Compulsory retirement of all school employees at age 65 by « board regulation Laramie, Wyo. Board has right to retire women teachers at age 60 and men at age 65, provided service is not satisfactory Macon, Ga. No provision except that board hag right to retire teacher when teacher is disabled. New York, N. Y. Age 70 San Francisco, Calif. Age 70; if member has prior service credit and retires in accordance with this provision, he shal! receiy an additional pension purchased by the contributions of the city as will make his total retirement ance from the city not less than $480 a year; unless $480 exceeds one-half his final compensation in w case his pension from the city shall be not less than one-half his final compensation. K. Disability retirement Qualifications Allowance Augusta, Ga. In discretion of board Received for same length of time as teacher contribut to plan Baltimore, Md. Five or more years’ service If under age 60, an annuity the actuarial equivalent accumulated contributions at time of retirement, and a per sion which together with annuity provide a total retirement allowance equal to 90 percent of one-seventieth of averag final compensation multiplied by the number of years service, if such retirement allowance exceeds one-fourt! average final compensation; otherwise a pension wh together with his annuity shall provide a total retirement allowance equal to 90 percent of one-seventieth average f compensation multiplied by number of years which w be creditable to him were his service to continue until t! attainment of age 60, so far as the resulting retirement allowance shall not exceed one-fourth average fina! compen- sation (see also under ‘‘Miscellaneous,”’ p. 123, provisior for accidental disability allowance). Chattanooga, Tenn. Ordinary disability: 10 years’ service: 25 percent of basic monthly salary based on average for 3 highest years; after 15 years’ service: 3744 percent of basic monthly salary; after 20 years’ service: 50 percent of basic monthly salary Accidental disability in line of duty: full pension regardless of time served, payable after 6 months subsequent to accident Columbus, Ga. In discretion of commission at request of Fifty percent of salary at time of 1etirement not exceeding schoolboard $60 monthly (actually $25 a month for teachers) Grand Island, Nebr. No specific provisions Knoxville, Tenn. Fifteen years’ service in city Such proportion of half of average monthly salary for highest 3 consecutive years as number of years of service is to 25 If disabled thru injury received in line of duty shall receive one-half salary member was receiving at time of injury If temporarily disabled in line of duty, full salary is paid for 6 months. Laramie, Wyo. Twenty years of service, 10 of which must Maximum $50 a month have been in district. Macon, Ga. Twenty-five years’ service in county One-half average annual salary during past 5 years, paid monthly, not to exceed $600 New York, N. Y. Ten years of city service; medical exami- Annuity equivalent to accumulated deductions plus a per nation may be required annually for 10 sion equal to 20 percent of average salary, plus extra pension years after retirement or until age 65. for prior service if eligible. (K continued on next page [120] 4, K—Continued) ncisco, Calif Ten years’ Location ista, Ga. Itimore, Md. attanooga, Tenn. Columbus, Ga. Grand Island, Nebr. Knoxville, Tenn. Laramie, Wyo. Macon, G New York, N. Y. San Francisco, Calif L. Prior service (see also deficiency contributions noted under heading ‘Employer's Contributions” No provisions Pension equal to one-seventieth average final n multiplied by number of y credited No provisions No provisions No provisions Credit allowed for service prior to enactment Pension plan No provisions Pensions computed at the rate of one one-hundred fortieth of average salary for eac! but not more than makes total pension equal to 50 percent of average salary One and one-third percent of final compensation multiplied by the number of years of to member, except that if the member (of this classification) retires after 30 years of servi reaching age 62 the additional pension shall be such as can be purchased at the age of retirer actuarial value, at the age of retirement, of a pension, deferred to age 62 equal to 1 1 final compensation multiplied by the number of years’ pri provision under section J, p. 120. or service credited to him Location Augusta, Ga. Baltimore, Md. Chattanooga, Tenn Columbus, Ga. Grand Island, Nebr. Knoxville, Tenn. Laramie, Wyo. Macon, Ga. New York, N. Y. San Francisco, Calif M. Optional! benefits No provisions selection. Options: (1) unpaid balance to be pa thruout 4 ther Options are not effective until at least 30 days afte to beneficiary or estate in lump sum, (2) beneficiary receives same allowance as member received life, (3) beneficiary receives one-half of the amount of the member's allowance, thruout life equivalent benefits may be chosen in accordance with the rules of the board No provisions No provisions No provisions No provisions No provisions No provisions Options are not effective until at least 30 days after (a tive date of service retire of receipt of disability retirement application. Options unpaid balance to be paid to beneficiary estate in lump sum, (2) beneficiary receives one-half of the amount of the member's allowance, thr life, (3) beneficiary receives same allowance as member re thruout life, (4) other equivalent t may be chosen in accordance with the rules of the boa renent Options are not effective until at least 30 days after selection. Options: (1) unpaid balance of accumulated contributions, after deducting annuity payments, to be paid to beneficiary or es sum, (2) beneficiary receives lesser annuity payments, thru i (3) beneficiary receive amount of the member's lesser annuity, thruout life \ugusta, Ga. Baltimore, Md. Chattanooga, Tenn. Columbus, Ga. Grand Island, Nebr. Knoxville, Tenn. Laramie, Wyo. Macon, Ga. New York, N. Y. San Francisco, Calif. N. Payments in case of withdrawal or death before retirement Withdrawal If voluntary, teacher may withdraw half total con- tributions; if withdrawal is involuntary, total con- tributions are refunded. Accumulated contributions except that in its dis- cretion board may withhold for not more than one year all or part of accumulated contributions if after a previous withdrawal member failed to redeposit amount withdrawn. If member, age 50, is dismissed thru no fault of his own after 20 years of service, or after 25 years’ service regardless of age, member may elect to receive in lieu of refund of deposits, annuity the equivalent, in which case he shall be paid also a pension equal to ordinary disability pension. No provisions Death No provisions Accumulated contributions, and if membe had one or more years of service an addit amount equal to 50 percent of average salary except that latter is not paid if me is entitled to accidental death benefits “*Miscellaneous provisions,"’ p. 123) No provisions Pension plan; employees do not contribute Insurance or annuity policy belongs to teacher; in case of death, beneficiary would receive benefit any ordinary insurance policy; no refunds are made in either case from district's contributions. Contributions returned without interest, and less any payments made for sickness Contributions less deductions for sickness able to heirs (see ‘‘Miscellaneous provisio: p. 123, for benefits in case of death in line of d Pension plan; employees do not contribute If voluntary, and if at least 10 annual assessments have been paid, one-half contributions are refunded; if dismissed, total is refunded Total contributions with interest; and if member is dismissed an additional refund is made of amount equal to his contributions prior to August 1, 1917. Accumulated contributions, except that in its dis- cretion board may withhold for not more than one year all or part of accumulated contributions if after a previous withdrawal member failed to redeposit amount withdrawn. - No provisions A death benefit is payable to the estate contributors who have had at least 6 mon and less than 10 years of city service, amounting to one-half average salary. Five percent added for each year of city service after years, with a maximum death benefit of percent of average salary. For teachers service prior to April 10, 1929, an additiona death benefit is granted based on the nu of years of prior service. Accumulated contributions plus an am equal to compensation earnable during months immediately preceding death up monthly compensation of $500 Location Augusta, Ga. Baltimore, Md. Chattanooga, Tenn. Columbus, Ga. Grand Island, Nebr. Knoxville, Tenn. Laramie, Wyo. Macon, Ga. New York, N. Y. San Francisco, Calif. O. Restrictions on investments No provisions for investment of fund United States bonds or treasury notes, or interest-bearing bonds or stocks of state of Maryland any other state, of Baltimore City or of any county in Maryland or other securities subject to rest: tions on investment of life insurance funds No provisions No special fund Underwritten by approved, standard old-line, legal reserve life insurance company No provisions No provisions for a separate fund In discretion of board of control Such as are permitted savings banks Such as are permitted savings banks in California ity Location . Actuarial investigation of service and death experience ° No provisions Once in every 5 yoga, Tenn No provisions us, Ga. No provision Island, Nebr Insurance plan xville, Tenn. No provisions e, Wyo Pension plan; no separate fund Ga No provisions vy York, N. ¥ Once in every 5 years Francisco, Calif Every 6 years Actuarial valuations of the liabilities are frequently made annually refers to investigation of service and death experience Location Q. Miscellaneous provisions Baltimore, Md Employee may make additional contributions by a sufficient to provide, together with his prospective tirement lowance at age 60 not to exceed one-half average final compensation n case of disability tions will be returned in cash or as an annuity of actt livalent value Accidental disability benefit: annuity the actuari accumul pension of 66 2/3 percent average final compensation Accidental death benefit: amount of accumulated con itions plus compensation of employee to widow during widowhood certain other In either of the above cases, benefits due under workmen's compensati benefits of retirement law hattanooga, Tenn. Any employee who has served not less than 20 years shall 1 deprived any reason less than the conviction of a felony in <¢ f competent juri A $250 death benefit is payable to beneficiary t Knoxville, Tenn. When granted, a pension shall be permanent and not j » reduction Special death benefits provided dependents in event of deat n line Laramie, Wyo. If teacher is granted any other retirement payment fro1 ullowed by school district under this plan. Macon, Ga. If funds are insufficient to meet payments provided, | of control shall pay will justify. Board assumes no liability; plan does not set up contractual situation New York, N. Y. Any contributor from time to time may: 1. Increase or decrease his rate of contribution to the annuity savings fund, but contribution of a present-teacher be less than the minimum contribution nor of a new-entrant be at a rate less than the percent rate provided for such new-entrant 20.0 (2) of the code 2. If a present-teacher, withdraw from his individual account in the annuity excess of his minimum accumulation 3. If a “‘new-entrant,"’ withdraw after having beco ligible for service retirement accumulated deductions as shall be in excess of the amount necessary to procure for } which, if added to his prospective pension, will yield a retirement allowance of 50 percent salary. Regular interest, charges payable, the creation and maintenance of reserves in the fund, and the maintenance of annuity reserves and pension reserves as provided for in tl payment of all pensions, annuities, retirement allowances, refunds, death benefits, and granted under the provisions of this title, are made obligations of the city Any teacher in city service who shall have been a contributor continuously borrow from the retirement system, subject to such rules and regulations as n ‘ board, an amount not exceeding 25 percent of the amount of his accumulated deduction the amount so borrowed, together with interest thereon, can be repaid within 3 years by addi tions from his compensation, made at the same time compensation is paid to the cont actuarial equivalent of any unpaid balance of a loan at the time any benefit may become be deducted from the benefit otherwise payable San Francisco, Calif. . Members may elect to contribute at rates in excess for the purpose of providing addit but the exercise of this privilege does not place on the city any additional financial obligat Payments to the retirement fund are made obligations of the city. 3. City-service after retirement is prohibited. [ 123 ] FIGURES IV AND V—FINANCIAL STRUCTURE OF TEACHER RETIREMENT PLANS IN NEW YORK AND BALTIMORE New York City Refund Teachers Savings eam) Estate of anene Fun o Deceased pore \ = ons P smn, AQ 9 » a an a “=e, ¥ i] ; a. > tl A New York City Annuity 4% Teacher's \ A Reserve Withdrawals oe > Fund A — Vg O a = / Retired New on aw aH & Entrants and i] Present Teach- ers ~ benefits Reserve mn amount of service i] Contingent a o Fund Ye E|-7 after September 1é, peserye wns y) on on on oe red eti repent Teacher nulitents under Fund and An- ormer Salence fron Pension y s hg ty ent service on Gitte, etc.’ Fund #2 September 18, 25157 lig Baltimore Teachers Annuity Teacher's Savings Withdrawals e P | 2 Mh => City of Balt re OT Refunds to Estate of Deceased Members Y Teachers Retired paws re) 4 ~ (with prior service credit) Pension Accumulation Teachers Retired Fund Beeesve without prior service credit ma nu tro ary dec to by dec boz bod an five hac to ize anc the for me} be | dor Th vid nua yea me: con exp pro fit ciat $6 met Cor den bur $5C pen III. Other Provisions for Teacher Retirement Teachers in a few other cities and school dis- tricts have had some protection for superannua- tion or disability thru other plans, which do not fit into a systematic analysis such as is at- tempted in the tables of this report. These other types were omitted from this tabular report but will be mentioned briefly at this point. Miscellaneous Local Provisions The Mobile teachers association has long maintained a mutual benefit plan, paying an- nuities and sick benefits out of funds collected from members on the basis of a percent of sal- ary deducted by the schoolboard. The salary deductions range from one-half of 1 percent to 114 percent. The schoolboard is authorized by the teachers association to make the salary deductions, but in no other way is the school- board connected with the plan. Florida, in 1931, authorized local school- boards to pay a retirement allowance of $40 a month to any teacher who had served thirty- five years in the state, provided the teacher had no other means of support and was unable to earn a living. In 1935, Texas school districts were author- ized to use donations to pay retirement allow- ances to regular salaried school employees but the use of tax money for such purposes was forbidden. Altho the Texas statewide retire- ment system was passed subsequently, it may be that a few teachers have been retired on the donated funds referred to in the 1935 law. The city charter of Fort Worth, Texas, pro- vides for an allowance of $50 to be voted an- nually to disabled teachers after twenty-five years of service, if the teacher is without other means of support and provided the financial condition of the school system warrants the expenditure. San Antonio, Texas, has had local provisions for benefits thru a teachers sick bene- fit association and a teachers retirement asso- ciation on a mutual benefit plan. Richmond, Virginia, pays a local pension of $600 a year to teachers who qualify for retire- ment under the statewide law. Waterbury, Connecticut, pays a pension which is indepen- dent of the Connecticut state plan. In Water- bury, each retired teacher receives a pension of $500 a year and a retired superintendent a pension of $2000 a year. The requirements are twenty-five years of city service and age seventy. These pensions are authorized by the city char ter and are in no way connected with or af fected by the Connecticut state system. Dormant State Enabling Laws The Missouri statute books contain provi sions enabling cities having a population of 300,000 or more to accumulate a fund from donations, legacies, gifts, bequests, from assess ing teachers not exceeding | percent of salaries, and “all moneys which may be derived from other methods of increment as may be duly and legally devised for the increase of said fund.” These funds may be used to retire disabled teachers at 60 percent of the annual salary paid at date of retirement (maximum $800 a year) provided at least 20 percent of the annual benefit has been contributed by the teacher and certain service requirements have been met (twenty-five years’ service required of women teachers, thirty years’ service of men, four fifths of service rendered in district ). Member ship in the fund is optional. The law provides for a board of trustees consisting of four school board members, the superintendent of schools, and four members of the system. St. Louis and Kansas City are the two eligi ble cities where a retirement plan could be established under these provisions. Neither city has accepted this permissive law, altho it can be made effective at any time in the future. Kansas City, instead, has established a mutual benefit plan providing for retirement after fifteen years’ service out of funds collected from the teachers by compulsory payments of $10 a month. St. Louis has established a sys- tem whereby teachers over 65, incapacitated for full-time service, may be placed in the rank of half-day assistant at a salary of $1000 a year, with nominal duties such as individual instruction. The state permissive law of Mis- souri is not included in Table 1 since no system is operating under its provisions. Idaho also has a permissive law which no district has put into operation. The Idaho en- abling act applies to any independent school district employing thirty or.more teachers. The allowance provided for may be paid to men teachers 60 years of age or over, after thirty- five years of service, and to women teachers 55 [125 ] years of age or over, after thirty years of serv- ice; fifteen years of the service, including the last ten, must have been in the district. The maximum allowance payable is $40 a month. Disability retirement may be provided for after ten years’ service. The money for the retire- ment fund is to be obtained by a special levy upon the school district, not to exceed one-tenth of one mill, and gifts. The districts may indi- vidually choose between a pension and a joint- contributory plan, but the fund when created must be permanent. The Board of Trustees of such school district hav- ing once established such retirement fund no act of such board thereafter shall vacate, set aside or abol- ish such fund, nor vacate the act of the Board of Trustees of such district adopting the plan of bene- fits provided for in this chapter, nor shall such Board of Trustees have any power or authority after any such teacher may have once been retired under the provisions of this chapter to decrease the amount per month which such retired teacher at the time of such retirement is entitled to receive as 1 Section 32-1206 of the /daho Code Annotated 1932. provided for by the Board of Trustees of such s district.’ As mentioned above, no district has availed itself of the opportunity provided in the | dah law. However, the 1939 legislature in I dal enacted certain measures which revise the cha, ters of Lewiston and Boise so that they maj if they choose, adopt the state enabling act. In 1937 Georgia passed an authorization ac: whereby the city of Savannah and county oj Chatham might establish either a joint-contrib utory or a pension plan for teachers and othe; school employees; no details are provided j; the authorization and no plan has been adopted in accordance with this authorization. How ever, for twenty-five years teachers in Savan- nah have been retired on a maximum of hal} pay after twenty years of service or on a lesse amount whenever, in the discretion of the board, the interests of the school would be furthered by the individual’s retirement. IV. Relationship between Local and Statewide Retirement Systems As a general rule, a statewide retirement system is more efficient than a local retirement system in that a larger membership spreads the insurance risks and the work and life expec- tancy of members may be more accurately com- puted. Such is not always the case, however, as some local systems are larger in membership than some state systems.’ In some communities conditions warrant a local retirement system regardless of the ex- istence of a statewide system in the same state. In most states, however, local systems have been established because legislation for an ade- quate statewide system could not be enacted. In situations where such conditions exist, the relation of the members of local systems to a state system subsequently established is a point which deserves special attention. In setting up a state system provision should be made either to absorb the membership of local systems in the statewide system without loss of equity to the members or to continue the local system on a sound independent basis. Examples of what has been done in some states are given below. It will be seen that in no case did a member of a local retirement system lose his equity in expected benefits }) the establishment of the state system. New York?—The New York State retire- ment system became operative in 1921, and in 1923 an amendment added a section thereto providing for the dissolution and discontinu- ance of all local systems outside New York City. The funds of these discontinued local systems were taken over by the state system. Contributions to local funds made between 1921 and 1923 were returned to members who were eligible and chose to join the state system. These teachers then paid to the state fund an amount which would be equivalent to their contributions to the state fund had they joined in 1921. All contributions deposited into local systems by members who were ineligible o: who did not choose to join the state system were returned to them. Annuitants of local systems received, subse- quent to the dissolution of such local systems, 1 For example, the New York City system is larger than any one of at least fifteen statewide systems, whereas the systems of Maine, Vermont, and Nevada are smaller than any one of a half dozen local systems. 2 Consolidated Laws of New York Annotated. Book 16 Education Law. Article 43-B. Section 1109 Q. [126 ] of e fun tun tive. pro he | syst \V sires dere loca fun poul loca beer on t of a tem. stall bala mou ber cont syst whi tun L the the the state nefits to which they would have been en ttled ritied heen members from 1921, provided this amount to receive under the state system had they was not less than the amount they received inder the local system. A teacher in service before 1921 was entitled to “‘present teacher”’ status in the state system upon payment of the mount of the contributions he would have made had he been a member in the state system from 1921. W ashington®—Under the new law assets of each local fund (and assets of former state fund) are to be transferred to the annuity fund of the new system when it becomes opera- tive. Each member shall be credited with his pro rata share of the assets of the fund to which he belongs, and if he does not join the new system his pro rata share may be withdrawn. When a former member of a local fund de- sires credit in the new system for service ren- dered for which no credit was given in the local fund, he must pay to the new pension fund the contributions with 4 percent com- pound interest which he would have paid to the local fund on account of such service had it been credited. If the amount of interest due on the prior service credit is paid at the time of application for membership in the new sys- tem, the remainder payable may be paid in in- stallments with the proviso that any unpaid balance shall constitute a first, prior, and para- mount lien against the benefit payable to mem- ber or estate. Other than by making up these contributions, the member of a former local system may be credited only for service for which contributions were paid into the local fund. Louisianat—Teachers who were members of the local system (New Orleans) at the time the state system was set up were excluded from the state plan unless they elected to join the state system in which case their membership in Washington Session Laws 1937. Chapter 221. Sections 7 * Act No. 83. Louisiana Laws 1936. Section 5 Utah Revised Statutes Supplement 1939. Title 75, 3 (3) Chapter (6 lous the local system was dropped; their pre \ ] i contributions will be returned when they leave shall be but other benefits from the local fund. ‘J be entitle¢ entitle d to no } active service they to full benefits under the sta If members of the local fund do not to join the state fund they must continue mem bership in the local fund. Teachers appointed after the state system is in operation must join the local system unless they are already mem bers of the state system, in which case they retain membership in the state system and are excluded from the local system. Utah in the local system (Salt Lake City) is compulsory but members Ne VW teachers are given six months after employment \Iembership may elect to join the state system also. rs who in which to make such election. ‘Teache were members of the local system at the time the state system became operative were given six months to choose to elect membership in the state system, but their membership in the local system continued regardless. “The deductions from teachers’ salaries are divided between state and local both systems. If the teacher is a member of the funds if a member belongs to state system only, that is, if employed in a dis trict not having a local system, the same amount is deducted but the entire amount is deposited in the state fund. If a teacher is retired unde both systems he is entitled to (1) $600 an (2) from the state system which would be equi, nually from the local system, an annuity alent to the actuarial value of his deposits with the state system, and (3) a pension from the state system equal to the annuity. Teachers who were in service before 1937 when the state sys tem was established would receive an additional pension for prior service. For members of the local system the prior service pension from the state is equal to the fractional equity held in the state plan. 6.. 7. 8. 9. 10. 11. 12. 13. 14. 15. Principles of a Sound Retirement System . Membership required of new teachers; voluntary for those in service . Guarantees to both teacher and public . Costs shared by teachers and public . Amount of deposits and payments stated in enactment . Deposits of teacher and payments by public concurrent with service Individual accounts kept System on a reserve basis Periodic actuarial investigations Provisions for disability retirement Teachers’ accumulated deposits returnable in case of withdrawal from service, or death prior to retirement Choice of options offered upon retirement Credit allowed for past service Rights under previous retirement systems safeguarded Reciprocal relations between systems Retirement board in control. Adapted from a statement by the Com- mittee on Retirement Allowances of the National Education Association, in co- operation with the National Council of Teachers’ Retirement Systems, in ‘‘Cur- rent Issues in Teacher Retirement.” Re- search Bulletin 8: 225; November 1930.