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 OCT 8 1914 ( UNIVERSITY } 
 
 HOUSE No. 1926 
 
 Commontoealtj) of s@a00acfM0etts, 
 
 BOARD OF EDUCATION. 
 
 SPECIAL REPORT ON TEACHERS' RETIREMENT 
 ALLOWANCES. 
 
 To the Honorable Senate and House of Representatives. 
 
 In accordance with chapter 47 of the Resolves of 1911, concern- 
 ing the advisability of providing a retirement allowance for teach- 
 ers, the Board of Education respectfully submits herewith the 
 results of its investigations, together with recommendations. 
 
 FREDERICK P. FISH, Chairman, 
 SARAH LOUISE ARNOLD, 
 ELLA LYMAN CABOT, 
 SIMEON B. CHASE, 
 LEVI L. CONANT, 
 THOMAS B. FITZPATRICK, 
 FREDERICK W. HAMILTON, 
 PAUL H. HANUS, 
 CLINTON Q. RICHMOND, 
 
 Members of the Board. 
 
LI- 
 
 . 
 
 2 RETIREMENT ALLOWANCES. [Jan. 
 
 I. 
 
 INTRODUCTION. 
 
 This report is made in compliance with chapter 47 of the Re- 
 solves of 1911 which reads: 
 
 Resolved, That the board of education is hereby requested to investigate 
 the advisability of providing a retirement allowance for teachers who have 
 taught in the public schools of the Commonwealth for thirty-five years, 
 and the amount and times of payment of such allowances. The board is 
 further requested to report the result of its investigation to the general 
 court, with such recommendations as it may deem expedient, either in 
 its annual report or separately, not later than the fifteenth day of January, 
 nineteen hundred and thirteen. 
 
 The Commissioner of Education was directed to make the neces- 
 sary investigations and submit the materials for this report. In 
 this work he was aided by Charles A. Prosser, formerly deputy 
 commissioner of the Board, and W. I. Hamilton, agent of the 
 Board. 
 
 Consideration has been given to legislation already enacted in 
 Massachusetts relating to teachers' pensions and annuities. The 
 experience of other States and of foreign countries has been taken 
 into account. Statistical data as to the age, salary, training and 
 terms of service within the State and without the State have been 
 secured for almost all the teachers of Massachusetts. Conferences 
 have been held with representatives of teachers' organizations and 
 with others interested with a view to procuring suggestions as to 
 the principles and aims to be kept in view in making recommenda- 
 tions relative to retirement allowances for teachers. 
 
 Existing legislation providing for the payment of retiring allow- 
 ances to the employees of the Commonwealth has been examined 
 and also the statute permitting towns and cities to provide for 
 the retirement of municipal employees'. Helpful suggestions in 
 this connection have been received from F. Spencer Baldwin. 
 
 It became apparent, early in the inquiry, that the provision for 
 retirement allowances for public school teachers who are now in 
 service involves certain considerations not pertinent in the case 
 of those persons who may hereafter become teachers. 
 
 In the case of the latter, provision might easily be made for 
 their compulsory participation in a retirement plan involving con- 
 
1913.] HOUSE No. 1926. 3 
 
 tributions from their salaries. In the case of teachers already in 
 the service, the extent to which it would be advisable or just to 
 insist on compulsory participation is not clear. Provision for 
 compulsory certification might justly be required of teachers yet 
 to enter the service; whereas, for some teachers who have already 
 been employed such a provision might operate as an undue hard- 
 ship. A number of teachers now in the service are members of 
 retirement associations maintained in whole or in part by public 
 funds. They have thus accrued interests in prospective retire- 
 ment allowances which should not be disturbed, except at their 
 own wish. Teachers hereafter entering the service could without 
 hardship be required to become members of a State retirement 
 system and could be debarred from securing membership in other 
 retirement associations aided by public funds. 
 |: Of teachers now in service there is obviously more than one 
 class, as considered with reference to participation in a retirement 
 system. Teachers under thirty years of age could, if they elected 
 to become members, make the contributions necessary to full par- 
 ticipation in retiring allowances on substantially the same terms 
 as might be required of teachers hereafter entering the service. 
 Where teachers are upward of thirty years of age modifications 
 would probably be necessary in the application of the principle of 
 contribution. A limited number of teachers who are upward of 
 sixty years of age are in the service of the Massachusetts public 
 schools, and these also constitute a class by themselves. Of these 
 teachers little could probably be expected in the way of contribu- 
 tions towards a system of retiring allowances. 
 
 As a result of the foregoing considerations the Board has found 
 it expedient and desirable to submit recommendations separately as 
 regards each of the classes discussed. In order to make possible a 
 full consideration of the principles underlying a desirable policy of 
 providing retirement allowances for teachers, the Board submits 
 in detail recommendations relative to a retirement system which 
 is designed to be compulsory upon teachers entering the service 
 of the public schools of the Commonwealth after a stated date. 
 With reference to teachers now in the service, the Board also sub- 
 mits for consideration a variety of suggestions and recommenda- 
 tions which should, in the opinion of the Board, receive attention 
 after the fundamental principles embodied in the first recom- 
 
4 RETIREMENT ALLOWANCES. [Jan. 
 
 mendations shall have been carefully scrutinized. The Board is 
 prepared when called upon to submit such bills as may be desired 
 in connection with each of the classes under consideration. 
 
 The following are in brief the findings and recommendations of 
 the Board : 
 
 I. The enactment of legislation providing for the payment of 
 retirement allowances to public school teachers after specified 
 terms of service would tend, in the opinion of the Board, to pro- 
 mote the efficiency of the teaching force of the public schools and 
 to improve public education for the following reasons: (a) per- 
 sons of superior ability would be encouraged to enter, and to 
 remain in, the profession of teaching; (b) teachers during their 
 terms of service would have a greater feeling of security with 
 regard to the future; (c) school authorities would be enabled to 
 retire without hardship teachers who, on account of age, had 
 become incapacitated. 
 
 II. The Board, therefore, recommends the enactment of legis- 
 lation establishing an old-age retirement system for teachers in 
 publicly supported schools, membership in which shall be com- 
 pulsory upon all persons who shall, after July 1, 1914, begin to 
 teach in schools supported by public taxation, and membership 
 in which shall be voluntary for teachers now in service. 
 
 III. Teachers in the public schools and schools established 
 under the provisions of chapter 471 of the Acts of 1911, are tech- 
 nically the employees of the towns and cities in which they teach, 
 but in many respects their services may be regarded as being 
 rendered to the Commonwealth as a whole, since educational 
 standards are in general prescribed by State laws and because the 
 Board of Education is authorized in part to supervise such edu- 
 cation and to promote its efficiency. Public education is, in large 
 degree, the concern of the Commonwealth as a whole. Local 
 retirement systems are not, and, in the- opinion of the Board, can- 
 not be effective except in large cities. The Board is of the opinion 
 that an adequate retirement system for the public school teachers 
 of Massachusetts should necessarily operate uniformly through- 
 out the State as a whole. For these reasons it is expedient and 
 desirable that the cost of maintaining a retirement system for 
 teachers should be met in part out of the State treasury. Such 
 a retirement system should, furthermore, be administered under 
 the supervision of the Commonwealth. 
 
1913.] HOUSE No. 1926. 5 
 
 IV. A retirement system, designed to advance the efficiency of 
 teaching, while at the same time preserving to the utmost as far 
 as possible the self-respect on the part of those participating 
 therein, should be supported in part by contributions from the 
 prospective beneficiaries. Such a system then becomes in effect 
 a form of compulsory insurance against loss of earning power due 
 to old age, towards the cost of which the State makes partial 
 contributions. The Board, therefore, recommends that in any 
 legislation providing for retirement allowances for teachers there 
 be included a provision to the effect that from the salaries of 
 teachers who are to benefit from such allowances there shall regu- 
 larly be deducted such a percentage as will provide substantially 
 one-half the cetirement allowances called for. 
 
 II. 
 GENERAL CONSIDERATIONS. 
 
 The meaning of the phrases "retirement system" and "retire- 
 ment allowance" is already familiar to the citizens of Massachu- 
 setts. Pension systems had been established by law for various 
 classes of State and municipal employees before general legisla- 
 tion was enacted establishing a retirement system for all State 
 employees not already provided for (chapter 532 of the Acts of 
 1911). Towns and cities are also permitted to adopt general 
 retirement systems for their. employees (chapter 619, Acts of 1910, 
 and chapter 338, Acts of 1911). 
 
 The payment of pensions constitutes the oldest and best known 
 form of providing for the support of public employees obliged to 
 withdraw from active service. It is customary in many countries 
 to retire soldiers, firemen and other classes of civil and military 
 employees with pensions. In the continental countries of Europe 
 teachers have long been among those eligible for pensions. 
 
 The cost of a pension, strictly so called, is met entirely by the 
 State or other employing authority. The beneficiary makes no 
 direct contribution towards it, when many classes of public em- 
 ployees are enabled by legislation to share in it. The cost of a 
 pension system to the State becomes, therefore, very great. It is 
 also believed that in many cases the fact that an employee is cer- 
 tain to receive a pension on retirement from active service tends 
 to develop a disposition to neglect the making or proper provision 
 for the future out of his own earnings. 
 
6 RETIREMENT ALLOWANCES. [Jan. 
 
 Because of a recognition of these conditions a more compre- 
 hensive plan of providing for the retirement of superannuated or 
 disabled employees, public and private, which at the same time 
 promotes thrift and the maximum self-respect on the part of such 
 employees, has been developed in recent years, especially in Ger- 
 many, France, England and in some American States. The vari- 
 ous measures designed to accomplish the purposes here described 
 are comprehended under the term "social insurance." 
 
 The principles of social insurance are substantially these: by 
 means of State legislation and under State administration, or at 
 least supervision, designated classes of persons are required to 
 insure themselves against loss or decrease of earning power due 
 to age, accident, invalidity or other similar contingencies. The 
 person insured is required to make contributions in amounts vary- 
 ing according to circumstances towards meeting the cost of this 
 insurance; and he also shares in a measure in the administration 
 of the funds established for that purpose. That part of the cost 
 of the insurance which is not met by the contribution of those 
 insured is usually provided by the State and by the employing 
 authority in shares varying according to conditions existing in 
 the employment. 
 
 The general act (chapter 532 of the Acts of 1911), making pro- 
 vision for the retirement of Massachusetts State employees, em- 
 bodies the principles of social insurance. State employees not 
 already in receipt of pensions are required to form an association 
 in which membership is voluntary for those in the service at a 
 specified date, but compulsory on all those entering such service 
 after that date. All members of the association are required to 
 contribute stated percentages of their salaries towards the sup- 
 port of the retirement system. To the sums earned by the con- 
 tributions of employees the State adds an equal amount, thus 
 making suitable retirement allowances for those who become 
 superannuated. The retirement association and the State share 
 in the administration of the system thus established. 
 
 The question as to whether teachers in the public schools should 
 be enabled to receive retirement allowances has been long before 
 the public. As already noted, public school teachers in conti- 
 nental European countries have for many years received pensions 
 or retiring allowances on much the same basis as other civil em- 
 
1913.] HOUSE No. 1926. 7 
 
 ployees. Twenty States in America now have legislative provi- 
 sions of some sort permitting or requiring the payment of retiring 
 allowances to teachers. Five States Rhode Island, New York, 
 New Jersey, Maryland and Virginia have such pension sys- 
 tems applying uniformly to all teachers in public schools; in the 
 others, certain cities only have made such provision as is the 
 case in Massachusetts (see Appendices C and D). 
 
 There exist many reasons for believing that a properly safe- 
 guarded retirement system for teachers operates to improve the 
 efficiency of the teaching service. The salaries paid teachers are 
 not large, as a rule, and teachers have few opportunities to make 
 investments which are safe and profitable. School committees 
 often find it difficult to retire aged teachers, who have obviously 
 become unable to render effective service, because they have 
 inadequate means of self-support. 
 
 It is probable that the existence of a retirement system for 
 teachers would have the effect of inducing many persons to enter 
 the service of the public schools and to remain permanently in 
 the work who are now deterred by the prospect of being unable 
 to make suitable provision in that calling for old age. It is well 
 known that the percentage of men in the public school service is 
 constantly diminishing, in Massachusetts less than 8 per cent, 
 of all the persons engaged in public school teaching or supervision 
 are men. Many men who follow teaching for a few years, or who 
 might be disposed to find here a career, and who are well suited 
 by temperament, native ability and training for the work, seek 
 other lines of employment in the belief and expectation that the 
 monetary returns in these will be sufficient to enable them to 
 retire with a competence sufficient for the needs of old age. Men 
 of the character here described are not often disposed or able to 
 give the close and prolonged attention to financial matters re- 
 quired, if a small income is to be so invested as to yield a safe and 
 fairly profitable return. But if the future were measurably as- 
 sured, it is possible that many of these would render excellent 
 service in education. 
 
 Again, many teachers are, under present conditions, unable to 
 render the best service of which they are capable because of 
 apprehensions regarding the future. This statement applies with 
 especial force to women teachers who are earning salaries only 
 
8 RETIREMENT ALLOWANCES. [Jan. 
 
 large enough to meet their daily needs. It is highly probable 
 that one effect of a general retirement system would be to give 
 these persons greater confidence in the future and thus to stimu- 
 late them to better work and a more active interest in self-im- 
 provement. 
 
 Legislation was enacted many years ago in Massachusetts, 
 making possible the existence of teachers' annuity guilds. By 
 special acts certain cities have been enabled to contribute towards 
 teachers' retirement systems, and, under stated conditions, to 
 retire teachers. In 1908 a general law was enacted permitting 
 towns and cities under certain specified conditions to retire super- 
 annuated teachers. 
 
 But outside of the city of Boston the legislation here described 
 has had, as yet, comparatively little effect. Few towns or cities 
 have taken advantage of the provisions of chapter 498 of the 
 Acts of 1908, asserting that their financial resources are insuffi- 
 cient for this purpose. Teachers' annuity guilds, while serving 
 a very useful purpose in making provision for systematic 
 saving among teachers, are not popular with younger teachers, 
 many of whom do not contemplate making of teaching a life- 
 career. 
 
 The demand for a State-wide retirement system for teachers of 
 the public schools has grown steadily, and a large number of citi- 
 zens are convinced that the establishment of such a system would 
 be consistent with the other efforts of the State to promote a 
 sound policy of public education. The Board of Education is 
 convinced that the time has arrived when the Legislature should 
 give the entire subject careful consideration. It is obvious that 
 the establishment of a retirement system will ultimately require 
 on the part of the State or of the local community substantial 
 expenditures for its support. Such expenditure should be re- 
 garded as a part of the necessary cost of an adequate system of 
 public education. 
 
 A careful examination of the methods and results of providing 
 retirement allowances for teachers in other States and countries, 
 and of the conditions peculiar to Massachusetts, leads the Board 
 to the conclusion that if general legislation is to be enacted pro- 
 viding for the payment by the State or local community of retire- 
 ment allowances to superannuated teachers, such legislation 
 
1913.] HOUSE No. 1926. 9 
 
 should be based on the general principles of social insurance as 
 given effect in the act providing retirement allowances for State 
 employees. 
 
 Furthermore, although, strictly speaking, teachers are the em- 
 ployees of the local community rather than of the Commonwealth, 
 conditions exist which render it desirable and necessary that pro- 
 vision should be made whereby contributions shall be made from 
 the treasury of the Commonwealth towards meeting in part 
 the cost of any teachers' retirement system that may be estab- 
 lished. 
 
 In the event of the enactment <5f legislation looking to the estab- 
 lishment of a State-wide retirement system for teachers, the Board 
 recommends that such legislation be based upon the following 
 principles : 
 
 1. A retirement association should be created by law, to be 
 composed of all teachers or others required or electing as pre- 
 scribed to share in the obligations and benefits of the State re- 
 tirement system. Membership in this association should be 
 obligatory upon all teachers beginning work in the public schools 
 of Massachusetts after a stated date, and should be optional in 
 the case of all teachers who, prior to that date, shall have been 
 engaged in teaching in the public schools. 
 
 2. Members of the retirement association who have reached a 
 stated age should be eligible to retire and to receive the full retire- 
 ment allowance to which in each case their contributions entitle 
 them; and school committees should be empowered similarly to 
 retire members w r ho shall have reached a specified age. 
 
 3. The expense of providing retirement allowances for teachers 
 should be shared in equal proportions by the State and by the 
 members of the retirement association, the State making annual 
 contributions for this purpose when necessary, and the members 
 of the retirement association being assessed a fixed percentage of 
 their salaries. Provision should be made for minimum and maxi- 
 mum limits on the contributions of members. 
 
 4. Members of the retirement association withdrawing from 
 public school service, before becoming eligible for a retirement 
 allowance, should be enabled to receive from the retirement fund 
 an amount equal to their total contributions, increased by inter- 
 est on the same at a stated rate. 
 
10 RETIREMENT ALLOWANCES. [Jan. 
 
 5. Members of the retirement association should not be al- 
 lowed to be members of any other retirement system supported 
 in whole or in part by funds raised by means of taxation. 
 
 If a comprehensive system of providing retirement allowances 
 for superannuated teachers is to be provided under the conditions 
 which prevail in Massachusetts, it is necessary that the State 
 should establish and, through properly constituted authorities, 
 administer such a system. The most effective means for this 
 purpose are to be found in the creation of a retirement associa- 
 tion composed of all persons eligible to share in the benefits and 
 the responsibilities of the retirement act. Through this associa- 
 tion the necessary machinery of administration may be established. 
 The precedent already existing in the retirement system for State 
 employees appears to be satisfactory in this regard. 
 
 It requires no argument to prove that teachers who have become 
 old in the service ultimately reach a point where they can no 
 longer do efficient work in teaching the young. This age varies 
 with individuals. Experience proves that it is desirable and 
 expedient to allow persons eligible to receive retirement allow- 
 ances to retire at a specified age. The interest of the service of 
 the public schools also requires that school committees should be 
 enabled to order the retirement of teachers at a somewhat later 
 age, which would probably be uniform throughout the service. 
 The principle of dividing the cost of maintaining social insurance 
 between the beneficiary and the employing authority is already 
 well established. The proportions here given are those fixed in 
 the retirement act for State employees. The Board regards this 
 as in accordance with sound policy. 
 
 The question as to whether the State or the local community 
 should make contributions on behalf of the employing authority 
 is open to debate. The Board believes that under the conditions 
 which exist in Massachusetts it is desirable and necessary that 
 such contributions should be made by the State. A variety of 
 difficult questions of administration and law are involved in any 
 plan requiring that local communities shall make contributions 
 to a State retirement fund, with which it would be difficult to 
 deal. 
 
 In all public service where contributions are required from 
 employees, experience justifies the policy of returning such con- 
 
1913.] HOUSE No. 1926. 11 
 
 tributions with interest to an employee who withdraws from the 
 service and ceases to be eligible to receive the retirement allow- 
 ance. In the case of teachers this is peculiarly necessary, since 
 so large a percentage of them withdraw from the service to take 
 up other forms of work before reaching the age at which partici- 
 pation in the retirement allowance becomes possible. 
 
 The teachers of Boston and those in a few other towns or cities 
 of the State are already members of retirement systems assisted 
 in part or in whole by public funds. Provision should be made 
 whereby such teachers electing to join the State retirement asso- 
 ciation should waive the accumulation of further benefits or rights 
 in local retirement systems. Teachers hereafter entering the 
 service should not be allowed to connect themselves with other 
 retirement associations assisted by public funds. The wisdom 
 of this policy needs no argument. 
 
 III. 
 
 ESSENTIAL PRINCIPLES. 
 
 The following are the essential features of a proposed act (see 
 Appendix A) providing for the establishment of retirement allow- 
 ances for teachers beginning service in the public schools after 
 July 1, 1914 (definitions of terms used are given in the bill). 
 
 7. Organization. 
 
 Persons eligible and required to share in the benefits and re- 
 sponsibilities of this act shall constitute a retirement association. 
 This association shall annually elect a representative to the State 
 Teachers' Retirement Fund Board (hereafter known as the Re- 
 tirement Board). 
 
 II. Membership. 
 
 All teachers in schools supported in whole or in part by local 
 taxation (including principals, supervisors, superintendents and 
 others) who shall begin to teach in such schools* on or after July 
 1, 1914, and who are under thirty years of age, are required to 
 be members of the retirement association and to make the pre- 
 scribed contributions thereto. 
 
12 RETIREMENT ALLOWANCES. [Jan. 
 
 777. Administration. 
 
 There is constituted a State Teachers' Retirement Fund Board 
 (hereafter known as the Retirement Board) of seven members. 
 
 (a) Three of these shall be the State Commissioner of Insur- 
 ance, the State Commissioner of Banking and the State Commis- 
 sioner of Education. 
 
 (6) Three members of this Board shall be elected by the retire- 
 ment association for terms of three years in accordance with a 
 plan to be prepared by the State Commissioner of Insurance, the 
 State Commissioner of Banking and the State Commissioner of 
 Education. 
 
 (c) The seventh member of the association shall be elected 
 annually by the other six members. 
 
 (d) Members of the Retirement Board shall receive no com- 
 pensation; necessary expenses and loss of salary due to service on 
 the Board shall be met from the expense fund of the Board. 
 
 IV. Duties of the Retirement Board, 
 (a) To elect a secretary at a salary. 
 (6) To execute the provisions of this act. 
 (c) To make necessary reports. 
 
 V. Retirement of leathers. 
 
 (a) Conditions of Voluntary Retirement. In order to be eligible 
 for voluntary retirement a member of the association shall (1) be 
 at least sixty-five years of age; (2) have taught for thirty years 
 in the public schools of Massachusetts; (3) and shall have made 
 thirty or more annual payments, as required by this act towards 
 the provision of an annuity. 
 
 (6) Conditions of Compulsory Retirement by School Committees. 
 School committees may compel the retirement of teachers who 
 have fulfilled the requirements for voluntary retirement and are 
 members of the association. 
 
 (c) Conditions for General Compulsory Retirement. A member 
 of the association must retire from public school teaching on 
 reaching, the age of sixty-five years, if a woman, and seventy 
 years if a man. 
 
1913.] HOUSE No. 1926. 13 
 
 VI. Retirement Allowances to be paid by the Retirement Board. 
 
 The retirement allowance to be paid annually during his life- 
 time to each member of the association after retirement shall 
 consist of two parts, the annuity and the pension. 
 
 (a) The annuity shall be such an annuity as can be purchased 
 by the amount representing the contributions of the member 
 together with accumulated interest thereon at the time of 
 retirement, said amount and said annuity to be determined by 
 the Retirement Board. (6) The pension shall be equal in amount 
 to the annuity. ** 
 
 VII. Assessments on Salaries of Members. 
 To provide for the annuities required in the act, each member of 
 the association shall, in a manner prescribed by the Retirement 
 Board, be required to contribute a stated percentage of his salary; 
 the rate of contribution to be determined from time to time by 
 the Retirement Board and to be uniform for all members, but at 
 no time to be less than 3 per cent, nor more than 7 per cent., 
 with the further proviso, however, that no annual contribution 
 shall be less than $35 nor more than $100. 
 
 VIII. Refund. 
 
 A member of the association resigning from service in the public 
 schools before becoming eligible to the retirement allowance shall 
 be entitled to a refund of his contributions, together with regular 
 interest thereon. 
 
 IX. Bequest. 
 
 When a member of the retirement association dies before becom- 
 ing eligible for a retirement allowance his heirs shall be entitled 
 to the amount of said member's contributions at the time of his 
 death, together with interest thereon. 
 
 X. Reinstatement. 
 
 Members of the association who shall have retired from the 
 association and who shall have withdrawn their contributions shall 
 be eligible for reinstatement on paying to the Retirement Board, 
 in a manner to be determined by that Board, an amount equal 
 to the sum withdrawn. 
 
14 RETIREMENT ALLOWANCES. [Jan. 
 
 XL Expense of Administration. 
 
 The expense necessary to the administration of this act (exclu- 
 sive of the payment of retirement allowances) shall be met from 
 appropriations for this purpose made annually by the Legislature 
 on the basis of estimates furnished by the Retirement Board. 
 
 XII. Expenditures for Annuities. 
 
 The expenditures for the annuities provided for in this act shall 
 be met from the deposit reserve fund composed of the contribu- 
 tions of members of retirement association, legacies, gifts and 
 other receipts, together with interest thereon. 
 
 XIII. Expenditures for Pensions. 
 
 The expenditures for pensions called for by this act shall be 
 met from appropriations for this purpose made annually by the 
 Legislature on the basis of estimates furnished by the Retirement 
 Board. 
 
 XIV. Custody of Funds. 
 
 All funds held subject to the order of the Retirement Board 
 shall be kept in the custody of the Treasurer of the Common- 
 wealth. He shall invest, subject to the approval of the Retire- 
 ment Board, so much of such portions of such funds as is deemed 
 expedient, and shall make such investments in accordance with 
 the requirements of the laws relating to savings bank investments. 
 
 XV. Taxation, etc. 
 
 (a) Funds held subject to the direction of the Retirement Board 
 and invested in personal property shall be exempt from taxation. 
 (6) Equities in the deposit reserve fund shall be exempt from tax- 
 ation, assignment, insolvency, etc. ' 
 
 XVI. Duties of School Committees. 
 
 School committees shall, as directed by the Retirement Board 
 make deductions from the salaries of teachers in their employ to 
 meet the assessments required by this act. 
 
1913.] HOUSE No. 1926. 15 
 
 XVII. Duties of Town or City Treasurer. 
 The treasurer of any town or city shall transmit to the Board 
 of Retirement the amounts deducted by school committees under 
 the provisions of this act. 
 
 XVIII. Repeal. 
 
 All acts or parts of acts providing for the payment of retire- 
 ment allowances to teachers out of the proceeds of money raised 
 by local taxation in cities or to^wns are hereby repealed, in so 
 far as they apply to the teachers designated by this act. 
 
 IV. 
 
 ADDITIONAL PROVISIONS FOR OTHER CLASSES OF TEACHERS. 
 
 Teachers not included in the provisions of the proposed act (as 
 given in Appendix A and analyzed above) may be divided into 
 the following classes from the point of view of a teachers' retire- 
 ment system : 
 
 (a) Those under thirty years of age at the time such system 
 goes into operation and who have already begun work in the public 
 schools. 
 
 (6) Those already in service who are over thirty years of age 
 and under sixty years of age at the time that the act takes effect. 
 
 (c) Those already in service who are over sixty years of age at 
 the time the act takes effect. 
 
 (d) All teachers, a portion of whose service has been in schools 
 outside the State, or who shall have entered the service for the 
 first time after thirty years of age. 
 
 In order that the general act herein proposed for teachers here- 
 after entering service and under thirty years of age might be 
 extended so as to be applicable to the other classes of teachers 
 described above, while at the same time conforming as far as 
 possible to the general principles approved in this report, the 
 following modifications and additions would, among others, be 
 necessary : 
 
 1. In order that teachers in service and under thirty years of 
 age could be included, a section should be added providing for vol- 
 
16 RETIREMENT ALLOWANCES. [Jan. 
 
 untary membership in the retirement association of such teachers 
 as should elect it, providing such teachers should waive any rights 
 that might have accrued in other retirement associations supported 
 by public funds. 
 
 2. In order that teachers already in service and over thirty 
 years and under sixty years of age could be included, there should 
 be added sections providing: 
 
 (a) For voluntary membership in the retirement association. 
 (6) Waiver of rights accrued in other associations supported in 
 whole or in part by public funds. 
 
 (c) For determining the number of years during which such 
 member must make contributions to the annuity fund before 
 becoming eligible to an annuity. 
 
 (d) For minimum pensions based on (1) service to be rendered 
 after assuming membership; (2) service already rendered prior to 
 assuming membership. 
 
 3. In order that teachers already in the service and over sixty 
 years of age might be included, sections should be added, provid- 
 ing for 
 
 (a) Voluntary membership in the retirement association. 
 (6) W^aiver of accrued rights in other associations supported in 
 Whole or in part by public funds. 
 
 (c) Determining the number of assessments before eligibility to 
 retirement allowance is secured. 
 
 (d) Fixing the minimum pension. 
 
 4. Expediency requires that adequate provision should be made 
 for recognition of service outside the State as contributing to 
 eligibility. Provision should also be made whereby persons becom- 
 ing teachers in the public schools, after the age of thirty, should 
 be in some form eligible to membership in the retirement asso- 
 ciation. 
 
 If desired by the Legislature or committees thereof, the Board 
 is prepared to submit bills containing modifications and additions 
 suggested above. 
 
1913.] HOUSE No. 1926. 17 
 
 V. 
 
 PROBABLE COST TO THE COMMONWEALTH or A COMPLETE SYS- 
 TEM OF PENSIONS ($150 EACH) FOR THE TEACHERS OF MASSA- 
 CHUSETTS. 
 
 I. Subject to the elements of uncertainty and to the assump- 
 tions discussed below, it may be roughly estimated that the prob- 
 able cost to the State of providing for every teacher reaching the 
 age of sixty a pension of $150 a year would be, for the periods 
 indicated, as follows : 
 
 (a) For the period 1914-20 an average of not less than $75,000 
 per year nor more than $120,000 per year. 
 
 1. For 394 teachers now in service and over sixty years of age 
 an average of $60,000 per year. 
 
 2. For 410 teachers now in service and ranging in age from 
 fifty-six to sixty years, an average of $41,000 per year. 
 
 These estimates are based on the returns shown in Appendix E. 
 
 (6) For the period 1920-30 an average of not less than $150,000 
 per year nor more than $300,000 per year. 
 
 (c) For the period 1930-50 not less than $250,000 per year nor 
 more than $400,000 per year. 
 
 II. To obtain the above rough approximations of probable 
 cost to the State, exclusive of the expenses of administration, of 
 the system of pensions for teachers, the following assumptions are 
 made:- 
 
 (a) That all teachers would elect to become members of the 
 retirement association and so, if remaining to the age of sixty, 
 eligible to pension. 
 
 Obviously, this estimate is excessive. Approximately one-third 
 of the teachers of Massachusetts are now members of retirement 
 associations from which they would doubtless not resign. Fur- 
 thermore, young teachers now in the service would in many 
 instances at least refuse to become members, and assume the 
 obligation of paying contributions. 
 
 (6) That the proportion of teachers remaining in the profession 
 until eligible for retirement would remain substantially as at 
 present. 
 
 Of 14,570 teachers now in the service of the schools of the State, 
 submitting data, approximately 8 per cent, were from fifty -one to 
 
18 RETIREMENT ALLOWANCES. [Jan. 
 
 sixty years of age; 17 per cent, from forty-one to fifty years of 
 age; 30 per cent, from thirty-one to forty; and 43 per cent, under 
 thirty years of age. In addition to these, 249 were from sixty- 
 one to sixty-five years of age; 117 from sixty-six to seventy years 
 of age and 28 from seventy-one years of age. Of the teachers 
 under sixty years of age it is assumed that approximately 1 per 
 cent, would annually become eligible for a retirement allowance, 
 having reached sixty years of age. 
 
 (c) That all teachers reaching the age of sixty would retire at 
 that age. 
 
 (d) That the life expectancy of teachers at sixty years of age 
 is the same as that for all classes of people at that age, namely, 
 13.4 years. 
 
 III. It is obviously impossible to estimate with any degree of 
 accuracy the probable cost to the Commonwealth of a complete 
 retirement system, involving the principle of contribution and 
 including all classes of teachers, for the following, among other 
 reasons : 
 
 (a) Membership in a retirement association would of necessity 
 be voluntary for all classes of teachers except those hereafter 
 entering the service. It is impossible to estimate the number of 
 teachers who would elect to assume the obligations of such a retire- 
 ment system as that proposed in this report. 
 
 1. About one-third of the teachers of the State, including those 
 in Boston, are now members of local retirement systems which, 
 it is asserted, are more favorable to members than the one herein 
 proposed. 
 
 2. Young teachers are frequently indifferent to the provision 
 of retirement allowances, and are unwilling to pay the assessments 
 that might be required for an annuity fund. 
 
 (6) The rate of assessment, as fixed by the Retirement Board, 
 would determine, subject to the minimum amount of the annuity, 
 in the case of teachers making thirty or more payments, the amount 
 of the pension to be paid by the State. 
 
 1. The minimum annual assessment suggested in the report is 
 $35, since calculations show that such an assessment paid for 
 thirty years, the proceeds being invested at compound interest 
 at 3 per cent, would purchase for a teacher retiring at the age of 
 sixty an annuity of about" $150; life expectancy being based on 
 
1913.] HOUSE No. 1926. 19 
 
 currently accepted mortality tables at 13.4 years for a person 
 sixty years of age. 
 
 2. The Board has made no recommendations as to the amount 
 of pension which should be paid to teachers who cannot be ex- 
 pected, on account of their age, to make thirty annual payments 
 to the annuity fund. 
 
APPENDICES. 
 
 A. PROPOSED ACT PROVIDING RETIREMENT ALLOWANCES FOR TEACHERS 
 
 ENTERING THE SERVICE AFTER JULY 1, 1914. 
 
 B. TABLES SHOWING PENSIONS PAID TO TEACHERS IN THE ELEMENTARY 
 
 AND SECONDARY SCHOOLS IN EUROPEAN COUNTRIES. (BASED ON 
 REPORTS MADE BY THE BUREAU OF EDUCATION, WASHINGTON.) 
 
 C. COMPARATIVE TABLES OF STATE COMPULSORY INSURANCE SYSTEMS 
 
 FOR TEACHERS IN THE UNITED STATES. 
 
 D. TABLE ANALYZING TEACHERS' RETIREMENT SYSTEMS IN VARIOUS 
 
 STATES OF THE UNION. 
 
 E. TABLES ARRANGED TO SHOW NUMBER OF TEACHERS UNDER VARIOUS 
 
 AGE AND SALARY GROUPINGS IN MASSACHUSETTS JUNE, 1911. 
 TABLE 1. WHOLE STATE. 
 TABLE 2. BOSTON. 
 TABLE 3. CITIES OUTSIDE BOSTON. 
 TABLE 4. TOWNS OF 5,000 INHABITANTS AND UPWARDS. 
 TABLE 5. TOWNS OF LESS THAN 5,000 INHABITANTS. 
 
 F. DESCRIPTION OF THE RETIREMENT SYSTEM FOR MASSACHUSETTS 
 
 STATE EMPLOYEES. (FROM A DOCUMENT PUBLISHED BY THE 
 STATE TREASURER.) 
 
APPENDIX A. 
 
 AN ACT TO ESTABLISH A RETIREMENT SYSTEM FOR TEACHERS. 
 
 Be it enacted, etc., as follows: 
 
 CONSTRUCTION. 
 
 1 SECTION 1. The following words and phrases as used in this 
 
 2 act, unless a different meaning is plainly required by the context, 
 
 3 shall have the following meanings : 
 
 4 (1) "Retirement system" shall mean the arrangement pro- 
 
 5 vided in this act for payment of annuities and pensions to teachers. 
 
 6 (2) "Annuities" shall mean payments for life derived from 
 
 7 contributions from teachers. 
 
 8 (3) "Pensions" shall mean payments for life derived from 
 
 9 contributions from the commonwealth. 
 
 10 (4) "Teacher" shall mean any teacher, principal, supervisor 
 
 11 or superintendent employed by a school committee or board of 
 
 12 trustees in a day public school within the commonwealth. 
 
 13 (5) "Public school" shall mean any day school conducted 
 
 14 within this commonwealth under the order and superintendence 
 
 15 of a duly elected school committee and also any day school con- 
 
 16 ducted under the provisions of chapter four hundred and seventy- 
 
 17 one of the acts of the year nineteen hundred and eleven. 
 
 18 (6) "Regular interest" shall mean interest at three per cent. 
 
 19 per annum, compounded annually on the last day of December 
 
 20 of each year. 
 
 21 (7) "Retirement board" shall mean the teachers' retirement 
 
 22 board, as provided in section four of this act. 
 
 23 (8) "Retirement association" shall mean the teachers' retire- 
 
 24 ment association, as provided in section three of this act. 
 
 25 (9) "Expense fund" shall mean the fund provided for in para- 
 
 26 graph numbered one in section five of this act. 
 
 27 (10) "Annuity fund" shall mean the fund provided for in 
 
 28 paragraph numbered two in section five of this act. 
 
 29 (11) "Pension fund" shall mean the fund provided for in para- 
 
 30 graph numbered three in section five of this act. 
 
24 . RETIREMENT ALLOWANCES. [Jan. 
 
 31 (12) "School year" shall mean the twelve months from the 
 
 32 first day of July of any year to the thirtieth day of June next 
 
 33 succeeding. 
 
 34 (13) "Assessments" shall mean the annual payments to the 
 
 35 annuity fund by members of the association. 
 
 ESTABLISHMENT OF A TEACHERS' RETIREMENT SYSTEM. 
 
 1 SECTION 2. A teachers' retirement system shall be established 
 
 2 on the first day of July, nineteen hundred and fourteen. 
 
 TEACHERS' RETIREMENT ASSOCIATION. 
 
 1 SECTION 3. A teachers' retirement association shall be organ- 
 
 2 ized among the teachers in the public schools as follows : 
 
 3 All teachers not over thirty years of age who enter the service 
 
 4 of the public schools for the first time on or after July first, nine- 
 
 5 teen hundred and fourteen, shall become thereby members of the 
 
 6 association. 
 
 STATE TEACHERS' RETIREMENT BOARD. 
 
 1 SECTION 4. (1) The management of the retirement system 
 
 2 is hereby vested in the teachers' retirement board consisting of 
 
 3 seven members; the insurance commissioner for the common- 
 
 4 wealth, the bank commissioner for the commonwealth, the com- 
 
 5 missioner of education for the commonwealth, three members 
 
 6 of the retirement association and one other person. Upon organ- 
 
 7 ization of the retirement association the members thereof shall 
 
 8 elect from among their number in a manner to be approved by 
 
 9 the insurance commissioner, the bank commissioner and the 
 
 10 commissioner of education, three persons to serve upon the retire- 
 
 11 ment board, one member to serve for one year, one for two years 
 
 12 and one for three years, and thereafter the members of the retire- 
 
 13 ment association shall elect annually from among their number 
 
 14 in a manner to be approved by the retirement board one person 
 
 15 to serve upon the retirement board for the term of three years. 
 
 16 The seventh member of the retirement board shall be elected 
 
 17 annually by the other six to serve for the term of one year. On 
 
 18 a vacancy occurring on the board, a successor of such person 
 
 19 whose place has become vacant shall be chosen in the same man- 
 
 20 ner as his predecessor to serve until the next annual election. 
 
 21 Until the organization of the retirement association and the elec- 
 
 22 tion of three representatives therefrom, the insurance commis- 
 
 23 sioner, the bank commissioner and the commissioner of education 
 
 24 shall be empowered to perform the duties of the retirement board. 
 
1913.] HOUSE No. 1926. 25 
 
 25 (2) The members of the retirement board shall serve without 
 
 26 compensation, but they shall be reimbursed from the expense 
 
 27 fund of the retirement association for any expenditures or loss 
 
 28 of salary or wages which they may incur through serving on the 
 
 29 board. All claims for reimbursement on this account shall be 
 
 30 subject to the approval of the governor and council. 
 
 31 (3) The retirement board shall have power to make by-laws 
 
 32 and regulations not inconsistent with the provisions of this act; 
 
 33 and to employ a secretary and clerical and other assistance. 
 
 34 (4) The retirement board shall provide for the collection and 
 
 35 deposit of the assessments provided fo*r in this act; and for the 
 
 36 payment of retirement allowances and such other expenditures 
 
 37 as are required by the provisions of this act. 
 
 38 (5) The retirement board shall adopt for the retirement system 
 
 39 one or more mortality tables and shall determine what rates of 
 
 40 interest shall be established in connection with such tables and 
 
 41 may later modify such tables or prescribe other tables to repre- 
 
 42 sent more accurately the expense of the retirement system or may 
 
 43 change such rates of interest and may determine the application 
 
 44 of the changes made. 
 
 45 (6) The retirement board shall perform such other functions 
 
 46 as are required for the execution of the provisions of this act. 
 
 CREATION OF FUNDS. 
 
 1 SECTION 5. The funds of the retirement system shall con- 
 
 2 sist of an expense fund, an annuity fund and a pension fund. 
 
 3 (1) The expense fund shall consist of such amounts as shall 
 
 4 be appropriated by the general court from year to year on esti- 
 
 5 mates submitted by the retirement board to defray the expense 
 
 6 of the administration of this act, exclusive of the payment of 
 
 7 retirement allowances. 
 
 8 (2) The annuity fund shall consist of assessments paid by mem- 
 
 9 bers of the retirement association, and interest derived from 
 
 10 investments of the annuity fund. Each member of the retire- 
 
 11 ment association shall pay into the annuity fund, by deduction 
 
 12 from his salary in the manner provided in section nine, paragraph 
 
 13 five, of this act, such assessments upon his salary as may be de- 
 
 14 termined by the retirement board. The rate of assessment shall 
 
 15 be established by the retirement board on the first day of July 
 16' of each year after at least three months' notice, and shall at any 
 
 17 given time be uniform for all members of the retirement associa 
 
 18 tion, and shall not be less than three per cent, nor more than 
 
26 RETIREMENT ALLOWANCES. [Jan. 
 
 19 seven per cent, of the member's salary: provided, however, that 
 
 20 when the total sum of assessments on the salary of any member 
 
 21 at the rate established by the retirement board would amount 
 
 22 to more than one hundred dollars or less than thirty-five dollars 
 
 23 for any school year, such member shall in lieu of assessments at 
 
 24 the regular rate be assessed one hundred dollars a year or thirty- 
 
 25 five dollars a year as the case may be, payable in equal instal- 
 
 26 ments to be assessed for the number of months during which the 
 
 27 schools of the community in which such member is employed 
 
 28 are commonly in session. 
 
 29 Any member of the retirement association who shall for thirty 
 
 30 years have paid regular assessments to the annuity fund as pro- 
 
 31 vided herein, shall be exempt from further assessments; but 
 
 32 such member may thereafter, if he so elects, continue to pay his 
 
 33 assessments to the fund. 
 
 34 (3) The pension fund shall consist of such amounts as shall 
 
 35 be appropriated by the general court from time to time on esti- 
 
 36 mates submitted by the retirement board for the purpose of pay- 
 
 37 ing the pensions provided for in this act. 
 
 PAYMENT OF RETIREMENT ALLOWANCES. 
 
 1 SECTION 6. (1) Any member of the retirement association 
 
 2 who shall have taught in the public schools for at least thirty 
 
 3 school years, and who shall have made regular payments to the 
 
 4 annuity fund as provided in this act for not less than thirty school 
 
 5 years, may, on attaining the age of sixty-five, elect to retire from 
 
 6 service in the public schools; or, if incapacitated, may be retired 
 
 7 by the school committee of the city or town in which he is at that 
 
 8 time employed, at the discretion of the school committee. 
 
 9 (2) Any member of the retirement association who shall have 
 
 10 taught in the public schools for at least thirty school years, and 
 
 11 who shall have made regular payments to the annuity fund as 
 
 12 provided in this act for not less than thirty school years, shall, 
 
 13 on attaining the age of seventy, be retired from service in the 
 
 14 public schools. 
 
 15 (3) Any member of the retirement association electing or re- 
 
 16 quired to retire from service in the public schools under the pro- 
 
 17 visions of this act shall receive in quarterly instalments from the 
 
 18 annuity fund during the remainder of his life after retirement 
 
 19 the annuity to which his entire contributions to such fund, together 
 
 20 with regular interest thereon, shall entitle him according to the 
 
 21 annuity tables of the retirement board. 
 
1913.] HOUSE No. 1926. 27 
 
 22 (4) Any member of the retirement association receiving an 
 
 23 annuity as provided in this act shall receive a pension, equal in 
 
 24 amount to his annuity, to be paid from the pension fund as di- 
 
 25 rected by the retirement board; provided, that no pension shall 
 
 26 in any one year exceed five hundred dollars. 
 
 WITHDRAWAL AND REINSTATEMENT. 
 
 1 SECTION 7. (1) Any member of the retirement association 
 
 2 withdrawing from service in the public schools before completing 
 
 3 thirty years of service therein shall receive from the annuity fund 
 
 4 all amounts contributed as assessments, together with regular 
 
 5 interest thereon, in the manner hereinafter provided. 
 
 6 (2) If such withdrawal shall take place before the completion 
 
 7 of ten years of service in the public schools, the total amount 
 
 8 to which such member is entitled as determined by the retirement 
 
 9 board under the provisions of this act shall be paid to him in four 
 
 10 annual instalments. 
 
 11 (3) If such withdrawal shall take place after ten years of service 
 
 12 the amount so refunded shall be in the form of such annuity for 
 
 13 life based on the contributions of such member, together with 
 
 14 regular interest thereon, as may be determined by the retirement 
 
 15 board according to its annuity tables, or in four annual instal- 
 
 16 ments, as such member may elect. 
 
 17 (4) If a member of the association retiring and receiving pay- 
 
 18 ments in accordance with paragraphs numbered (2) and (3) of 
 
 19 this section, shall die before the amount of such payments equals 
 
 20 the amount of his contributions to the annuity fund with regular 
 
 21 interest, the difference between the amount of such payments 
 
 22 and the amount of his contributions with regular interest shall 
 
 23 be paid to his legal representatives. 
 
 24 (5) Any member of the retirement association who shall have 
 
 25 withdrawn from service in the public schools shall, on being re- 
 
 26 employed in the public schools, be reinstated in the retirement 
 
 27 association in accordance with such plans for reinstatement as 
 
 28 the retirement board shall adopt. 
 
 29 (6) If a member of the retirement association shall die before 
 
 30 having completed thirty years of service in the public schools 
 
 31 and no payments having been made as specified in paragraph 
 
 32 numbered (4) of this section, the full amount of his contributions 
 
 33 to the annuity fund with regular interest shall be paid to his legal 
 
 34 representatives. 
 
28 RETIREMENT ALLOWANCES. [Jan. 
 
 TAXATION, ATTACHMENTS AND ASSIGNMENTS. 
 
 1 SECTION 8. That portion of the salary or wages of a member 
 
 2 deducted or to be deducted under this act, the right of a member 
 
 3 to an annuity or pension, and all his rights in the funds of the 
 
 4 retirement system shall be exempt from taxation, and from the 
 
 5 operation of any laws relating to bankruptcy or insolvency, and 
 
 6 shall not be attached or taken upon execution or other process 
 
 7 of any court. No assignment of any right in or to said funds 
 
 8 shall be valid. The funds of the retirement system, so far as they 
 
 9 are invested in personal property, shall be exempt from taxation. 
 
 DUTIES OF THE SCHOOL COMMITTEE. 
 
 1 SECTION 9. (1) The school committee of each town and city 
 
 2 in the commonwealth shall before employing in any teaching 
 
 3 position any person to whom this act may apply notify such per- 
 
 4 son of his duties and obligations under this act as a condition 
 
 5 of his employment. 
 
 6 (2) On or before October first of each year the school com- 
 
 7 mittee of each town and city in the commonwealth shall certify 
 
 8 to the retirement board the names of all teachers to whom this 
 
 9 act applies. 
 
 10 (3) The school committee of each town and city in the com- 
 
 11 monwealth shall notify the retirement board of the employment 
 
 12 of new teachers, removals, withdrawals, changes in salary of 
 
 13 teachers, within ten days after such employment, removal, with- 
 
 14 drawal or change in salary. 
 
 15 (4) Under the direction of the retirement board the school 
 
 16 committee of each town or city in the commonwealth shall* furnish 
 
 17 such other information as the board may require relevant to the 
 
 18 discharge of the duties of the board. 
 
 19 (5) The school committee of each town and city, in the com- 
 
 20 monwealth shall, as directed by the retirement board, deduct 
 
 21 from the amount of the salary due each teacher employed in the 
 
 22 public schools of such city or town such amounts as are due as 
 
 23 contributions to the annuity fund as prescribed in this act, and 
 
 24 shall send to the treasurer of said town or city a statement as 
 
 25 voucher for such deductions, and shall send a duplicate statement 
 
 26 to the secretary of the retirement board. 
 
 27 (6) The school committee of each town and city in the common- 
 
 28 wealth shall keep such records as the retirement board may require. 
 
1913.] HOUSE No. 1926. 29 
 
 DUTIES OF BOARDS OF TRUSTEES. 
 
 1 SECTION 10. In administering this act for teachers in schools 
 
 2 conducted in accordance with chapter four hundred and seventy- 
 
 3 one of the acts of the year nineteen hundred and eleven, the boards 
 
 4 of trustees of said schools are hereby authorized and required to 
 
 5 perform all the duties prescribed for school committees under 
 
 6 this act. 
 
 CUSTODY AND INVESTMENT OF FUNDS. 
 
 1 SECTION 11. (1) The treasurer of each town or city in the 
 
 2 commonwealth on receipt from the school committee or board 
 
 3 of trustees of the voucher for deductions from the teachers' salaries 
 
 4 provided for in section nine shall transmit monthly the amounts 
 
 5 specified in such voucher to the treasurer of the commonwealth. 
 
 6 (2) The treasurer of the commonwealth shall send to the secre- 
 
 7 tary of the retirement board monthly, a statement of all money 
 
 8 transmitted to him by the treasurers of the different towns and 
 
 9 cities under the provision of paragraph (1) of this section. 
 
 10 (3) All funds of the retirement system shall be in custody and 
 
 11 charge of the treasurer of the commonwealth and the treasurer 
 
 12 shall invest such funds as are not required for current disburse- 
 
 13 ments in accordance with the laws of the commonwealth govern- 
 
 14 ing the investment of funds of savings banks. He may, when- 
 
 15 ever he sells securities, deliver the securities so sold upon receiving 
 
 16 the proceeds thereof, and may execute any or all documents neces- 
 
 17 sary to transfer the title thereto. 
 
 18 (4) The treasurer of the commonwealth shall make such pay- 
 
 19 ments to members of the retirement association from the annuity 
 
 20 fund and pension fund as the retirement board shall order to be 
 
 21 paid in accordance with sections six and seven of this act. 
 
 22 (5) On or before the third Wednesday in January, the treasurer 
 
 23 of the commonwealth shall file with the insurance commissioner 
 
 24 for the commonwealth, and with the secretary of the retirement 
 
 25 board, a sworn statement exhibiting the financial condition of 
 
 26 the retirement system on the thirty-first day' of the preceding 
 
 27 December and its financial transactions for the year ending at 
 
 28 such date. Such statement shall be in the form prescribed by the 
 
 29 retirement board and approved by the insurance commissioner. 
 
30 RETIREMENT ALLOWANCES. [Jan. 
 
 MEMBERSHIP IN OTHER RETIREMENT ASSOCIATIONS. 
 
 1 SECTION 12. No member of the retirement association shall 
 
 2 be eligible to participation in the benefits of any other teachers' 
 
 3 retirement system supported in whole or in part by funds raised 
 
 4 by taxation. 
 
 JURISDICTION OF COURT. 
 
 1 SECTION 13. The superior court shall have jurisdiction in 
 
 2 equity upon petition of the insurance commissioner or of any 
 
 3 interested party to compel the observance and restrain the viola- 
 
 4 tion of this act, and of the rules and regulations established by 
 
 5 the retirement board hereunder. 
 
 1 SECTION 14. This act shall take effect upon its passage. 
 
1913.] 
 
 HOUSE No. 1926. 
 
 31 
 
 APPENDIX B 
 
 TABLE 1. PENSIONS PAID TO TEACHERS OF ELEMENTARY SCHOOLS IN 
 
 EUROPE. 
 
 [Bureau of Education Report, 1902, pp. 2370 and 2371.] 
 
 COUNTRIES OR STATES. 
 
 Paid by 
 State or Com- 
 munity. 
 
 Dues paid 
 by Teachers, 
 Per Cent, of 
 Salary. 
 
 Pension 
 may 
 begin 
 after 
 
 (Years)- 
 
 Minimum 
 Amount 
 paid, 
 Per Cent, 
 of Last 
 Salary. 
 
 Retire- 
 ment 
 takes 
 Place 
 after 
 (Years) 
 
 Maximum 
 Amount paid, 
 Per Cent, of 
 Last Salary. 
 
 German Empire: 
 
 
 *.. 
 
 
 
 
 
 Prussia, 
 
 Both, . 
 
 None, 
 
 10 
 
 25 
 
 45 
 
 75 per cent. 
 
 Bavaria, 
 
 Community, . 
 
 Yes, 1 . 
 
 5 
 
 25 
 
 45 
 
 75 per cent. 
 
 Wurt tern berg, 
 
 State, . 
 
 None, 
 
 10 
 
 40 
 
 45 
 
 85 per cent. 
 
 Saxony, 
 
 Both, . 
 
 None, 
 
 10 
 
 30 
 
 40 
 
 80 per cent. 
 
 Baden, .... 
 
 Both, . 
 
 None, 
 
 10 
 
 30 
 
 45 
 
 75 per cent. 
 
 Hesse, .... 
 
 Both, . 
 
 None, 
 
 10 
 
 45 
 
 45 
 
 100 per cent. 
 
 Mecklenburg-Schwerin, 
 Mecklenburg-Strelitz, . 
 
 Communities, 
 Crown, . 
 
 None, 
 None, 
 
 20 
 
 _3 
 
 _2 
 _3 
 
 50 
 
 -3 
 
 90 per cent. 
 
 Oldenburg, . 
 
 State and 
 
 2 per cent. 
 
 10 
 
 40 
 
 45 
 
 80 per cent. 
 
 
 community. 
 
 
 
 
 
 
 Saxe-Weimar, 
 
 Both, . 
 
 None, 
 
 (?) 
 
 (?) 
 
 37 
 
 80 per cent. 
 
 Brunswick, . 
 
 Both, . 
 
 None, 
 
 5 
 
 33* 
 
 50 
 
 100 per cent. 
 
 Anhalt, 
 
 Both, . 
 
 None, 
 
 5 
 
 33* 
 
 50 
 
 100 per cent. 
 
 Saxe-Altenburg, . 
 
 Both, . 
 
 None, 
 
 10 
 
 34 
 
 45 
 
 86 per cent. 
 
 Saxe-Coburg-Gotha, . 
 
 Both, . 
 
 None, 
 
 10 
 
 40 
 
 40 
 
 100 per cent. 
 
 Saxe-Meiningen, . 
 
 Both, . 
 
 None, 
 
 10 
 
 60 
 
 50 
 
 100 per cent. 
 
 Reuss (senior line), 
 
 Both, . 
 
 2 per cent. 
 
 10 
 
 40 
 
 45 
 
 80 per cent. 
 
 Reuss (junior line), 
 Schwarzburg-Sondersh, 
 
 Both, . 
 Both, . 
 
 2 per cent. 
 None, 
 
 10 
 10 
 
 40 
 40 
 
 45 
 
 48 
 
 80 per cent. 
 80 per cent. 
 
 Schwarzburg-Rudolst, . 
 Lippe-Detmold, . 
 
 Both, . 
 Both, . 
 
 None, 
 None, 
 
 10 
 10 
 
 40 
 40 
 
 50 
 45 
 
 100 per cent. 
 80 per cent. 
 
 Schaum burg-Lippe , 
 
 Both, . 
 
 None, 
 
 10 
 
 30 
 
 45 
 
 80 per cent. 
 
 Waldeck, 
 
 Both, . 
 
 None, 
 
 10 
 
 33* 
 
 45 
 
 66 per cent. 
 
 Bremen, 
 
 Community, . 
 
 None, 
 
 10 
 
 40 
 
 45 
 
 80 per cent. 
 
 Lubeck, 
 
 Community, . 
 
 None, 
 
 10 
 
 33* 
 
 35 
 
 75 per cent. 
 
 Hamburg, 
 
 Community, . 
 
 None, 
 
 10 
 
 40 
 
 40 
 
 80 per cent. 
 
 Alsace-Lorraine, . 
 
 State and 
 
 None, 
 
 10 
 
 25 
 
 40 
 
 75 per cent. 
 
 
 community. 
 
 
 
 
 
 
 Austria, .... 
 
 Both, . 
 
 _4 
 
 10 
 
 33* 
 
 40 
 
 100 per cent. 
 
 Hungary, 
 
 Both, . 
 
 (?) 
 
 (?) 
 
 (?) 
 
 40 
 
 $150-$200. 
 
 Switzerland, 
 
 _5 
 
 
 
 
 _ 
 
 _ 
 
 Denmark, 
 
 Both, . 
 
 (?) 
 
 10 
 
 10 
 
 45 
 
 66| per cent. 
 
 Norway, .... 
 
 State, 6 . 
 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 Sweden, .... 
 
 State, . 
 
 None, 
 
 (?) 
 
 (?) 
 
 30 
 
 75 per cent. 
 
 Netherlands, . 
 
 State, 6 . 
 
 None, 
 
 (?) 
 
 ?) 
 
 40 
 
 66| per cent. 
 
 Belgium 
 
 Communities, 
 
 3 per cent. 
 
 12 
 
 (?) 
 
 30 
 
 (?) 
 
 France, . 
 
 State, . 
 
 None, 
 
 (?) 
 
 ?) 
 
 25 
 
 50 per cent. 
 
 Italy 
 
 State, 7 . 
 
 None, 
 
 (?) 
 
 (?) 
 
 30 
 
 (?) 
 
 Great Britain, 
 
 State, . 
 
 $15 + $1.25 
 
 10 
 
 _8 
 
 35 
 
 $100 for each 
 
 
 
 for each 10 
 
 
 
 
 year after 10 
 
 
 
 per cent. 
 
 
 
 
 years of 
 
 
 
 of increase 
 
 
 
 
 service. 
 
 
 
 of salary. 
 
 
 
 
 
 1 In Bavaria the dues paid by teachers vary considerably in the different parts of the Kingdom, i.e., 
 between $1.25 in central Franconia and $25 in lower Palatinate. Also initiation fees are paid. 
 
 Lowest amount of salary. 
 
 At pleasure of the Crown. 
 
 In some crown lands of Austria dues are paid by teachers. 
 
 In Switzerland the cantonal governments are, as a rule, opposed to pensioning teachers. Where it is 
 done, it is the result of local agreement. The teachers themselves maintain annuity funds. 
 
 InNorway pensions are paid to all teachers, but each case is individually decided by Parliament. 
 
 In Italy the State pension fund is not large. Hence private annuity funds are numerous. 
 
 See last column. 
 
 GENERAL NOTES. The foregoing statements have reference to men teachers. Women teachers are 
 retired, on an average, ten years earlier, and their pensions amount to about 10 to 20 per cent, less than 
 those of the men. 
 
 In most German States the communities (or the State) make a single relief payment if a teacher is 
 disabled before he reaches the end of the tenth year of service, i.e., the lower age limit. The same practice 
 prevails in Austria and a few other countries. 
 
32 
 
 RETIREMENT ALLOWANCES. 
 
 [Jan. 
 
 TABLE 2. PENSIONS PAID TO TEACHERS OF SECONDARY SCHOOLS IN 
 
 EUROPE. 
 
 COUNTRIES OR STATES. 
 
 Paid by 
 State or Com- 
 munity. 
 
 Dues paid 
 by Teachers, 
 Per Cent, of 
 
 Salary. 
 
 Pension 
 begins 
 after 
 (Years) 
 
 Minimum 
 Amount 
 paid 
 Per Cent, 
 of Last 
 Salary. 
 
 Retire- 
 ment 
 takes 
 Place 
 after 
 (Years) 
 
 Maximum 
 Amount paid, 
 Per Cent, of 
 Last Salary. 
 
 German Empire: 
 
 
 
 
 
 
 
 Prussia, 
 
 Both, 
 
 None, 
 
 10 
 
 25 
 
 40 
 
 75 per cent. 
 
 Bavaria, 
 
 Both, . 
 
 None, 
 
 4 
 
 70 
 
 
 100 per cent. 
 
 Saxony, 
 
 Both, . 
 
 None, 
 
 10 
 
 30 
 
 40 
 
 80 per cent. 
 
 Wurttemberg, 
 
 Both, . 
 
 None, 
 
 10 
 
 40 
 
 
 
 Baden 
 
 Both, . 
 
 None, 
 
 10 
 
 30 
 
 40 
 
 75 per cent. 
 
 Hesse 
 
 Both, . 
 
 None, 
 
 5 
 
 40 
 
 50 
 
 100 per cent. 
 
 Mecklenburg-Schwerin, 
 Saxe- Weimar, 
 
 Both, . 
 Both, . 
 
 None, 
 None, 
 
 20 
 1 
 
 50 
 40 
 
 50 
 36 
 
 90 per cent. 
 80 per cent. 
 
 Oldenburg, . 
 
 Both, . 
 
 None, 
 
 
 50 
 
 50 
 
 90 per cent. 
 
 Brunswick, . 
 Saxe-Meiningen, . 
 
 Both, . 
 Both, . 
 
 None, 
 None, 
 
 3 
 1 
 
 33* 
 45 
 
 50 
 40 
 
 100 per cent. 
 75 per cent. 
 
 Saxe-Altenburg, . 
 Saxe-Coburg-Gotha, . 
 
 Both, . 
 Both, . 
 
 3 per cent., 
 1 per cent., 
 
 1 
 1 
 
 25 
 40 
 
 40 
 40 
 
 80 per cent. 
 100 per cent. 
 
 Anhalt, 
 Schwarzburg-Rudolst, 
 Schwarzburg-Sondersh, 
 
 Both, . 
 Both, . 
 Both, . 
 
 None, 
 None, 
 None, 
 
 1 
 1 
 1 
 
 40 
 40 
 
 49 
 36 
 37 
 
 100 per cent. 
 80 per cent. 
 80 per cent. 
 
 Waldeck, 
 
 Both, . 
 
 None, 
 
 1 
 
 33* 
 
 26 
 
 66f per cent. 
 
 Reuss (senior line), 
 
 Both, 
 
 None, 
 
 1 
 
 40 
 
 37 
 
 80 per cent. 
 
 Reuss (junior line), 
 Schaumburg-Lippe, 
 Lippe-Detmold, . 
 
 Both, . 
 Both, . 
 Both, . 
 
 None, 
 None, 
 None, 
 
 1 
 10 
 1 
 
 40 
 30 
 40 
 
 45 
 37 
 37 
 
 80 per cent. 
 80 per cent. 
 80 per cent. 
 
 Lubeck, 
 
 Both, . 
 
 None, 
 
 10 
 
 
 35 
 
 75 per cent. 
 
 Bremen, 
 
 Both, . 
 
 None, 
 
 1 
 
 40 
 
 30 
 
 80 per cent. ' 
 
 Hamburg, 
 
 Both, . 
 
 None, 
 
 1 
 
 40 
 
 50 
 
 100 per cent. 
 
 Alsace-Lorraine, . 
 
 Both, . 
 
 None, 
 
 10 
 
 25 
 
 40 
 
 75 per cent. 
 
 Austria, .... 
 
 Both, . 
 
 None, 
 
 8 
 
 
 30 
 
 100 per cent. 
 
 Hungary, 
 Switzerland, 
 
 Both, 
 
 _2 
 
 None^ 
 
 10 
 
 40 
 
 30 
 
 100 per cent. 
 
 Denmark, 
 Norway, .... 
 
 _3 
 
 (') 
 
 10 
 
 10 
 
 45 
 
 66| per cent. 
 
 Sweden 
 
 State, 
 
 None,' 
 
 10 
 
 (?) 
 
 30 
 
 $900. ' 
 
 Netherlands, . 
 
 Both, . 
 
 _B 
 
 
 
 30 
 
 66f per cent. 
 
 Belgium, .... 
 
 State, . 
 
 None, 
 
 (?) 
 
 (?) 
 
 30 
 
 66| per cent. 
 
 France, .... 
 
 State, . 
 
 10 per cent., 
 
 (?) 
 
 (?) 
 
 30 
 
 66 P er cent. 
 
 Spain, 
 
 _6 
 
 _6 
 
 _6 
 
 _6 
 
 _6 
 
 _6 
 
 Portugal, . 
 
 Both, . 
 
 10 per cent., 
 
 10 
 
 
 25 
 
 100 per cent. 
 
 Italy 
 
 _7 
 
 _7 
 
 _7 
 
 _7 
 
 7 
 
 _7 
 
 Greece, s .... 
 
 State, . 
 
 7$ per cent., 
 
 (?) 
 
 (?) 
 
 20 
 
 40 per cent. 
 
 Russia 
 
 _9 
 
 _9 
 
 _9 
 
 _9 
 
 _9 
 
 _9 
 
 Great Britain, 
 
 _10 
 
 _10 
 
 _10 
 
 -10 
 
 -10 
 
 _10 
 
 1 In Wurttemberg the pensions may reach 92 per cent, in cases where the salary is not higher than 
 $600. The rate of increase is 1$ per cent.; as high as 85 per cent, with salaries over $600. No pension can 
 exceed $1,500. 
 
 2 The population is not favorably inclined to paying pensions to teachers or other civil officers. Where 
 it is done, it is the result of local agreement. 
 
 3 In Denmark each case is decided by the minister of education, but usually according to the scheme 
 indicated in the table. 
 
 * Each case is decided by Parliament. 
 
 8 In the Netherlands the teacher pays one year's salary into the pension fund within the first five years 
 of service. 
 
 6 In Spain the State pays two-fifths of salary for two years after twenty years of service ; three-fifths of 
 salary after twenty-five years, and four-fifths of salary after thirty-five years of service, but only for two 
 years. 
 
 7 In Italy teachers may retire from service on account of ill health, and still draw one-half or three- 
 fourths of their salaries, according to the length of service. 
 
 8 In Greece an addition of one-fiftieth of the salary is paid for each additional year of service, over and 
 above the 40 per cent, paid after twenty years. 
 
 9 In Russia the pensions are not uniform; they range between 300 and 400 rubles after twenty-five 
 years of service. 
 
 10 In Great Britain a few distinguished schools, such as Eton, pay pensions; the majority of secondary 
 schools, being private institutions, do not pay pensions to teachers. 
 
1913. 
 
 HOUSE No. 1926. 
 
 33 
 
 I 
 
 Q 
 W 
 & 
 
 I 
 
 w 
 
 I 
 
 I 
 
 U 
 
 * 
 
 !l 
 
 S ^ 
 
 Wa 
 
 s 
 
 a- 
 
 1 1C! 
 
 sic 1 III 
 || J||| 
 
 ^ ^H Oi O3 
 
 
 
 
 a> o 
 
 ~ 03 -S i ~H' 
 
 & J?| 
 
 sss 2J & 
 
 . IO 
 
 i-H (N CO 
 
 a * -2 ^ & a 
 
 Is 
 
 a c 
 
 3 a> 
 
 8 a 
 3 
 
 2 B 
 
 .HJ -O- 
 
 8 3 
 
 r-c 3. 
 
 8' | 
 
 S^I1 
 
 IH!" 
 
 .2 
 
 
34 
 
 RETIREMENT ALLOWANCES. 
 
 [Jan. 
 
 I 
 
 i 
 
 5 
 
 *3<*^ 
 
 UHJ IS 
 
 I 
 
 O 1 
 
 *| il 
 
 jfi-g'g.5.0 '."" . 
 
 HI III SB 
 
 I ail 
 
 Will 
 
 n c .*- v . . -*^> 
 
 No minimum 
 Maxim um=$ 
 
 ^J 
 
 I 
 1 
 
 IS 
 
 : 
 unt 
 
 15 
 
 ^3 
 
 s 
 
 ii 
 
 s 
 
 '3fi 
 
 II il 
 
 ! if 
 
 ^-^ o3 /-** 
 
 ^ to vS 
 
1913.] 
 
 HOUSE No. 1926. 
 
 35 
 
 
 S.2 
 ll 
 
 IS 3 
 
 5 i 3 
 
 o-S .13 
 
 S-fiOfl^ -j-J 
 
 ft.S-3 ^ - 2 o 5 ' 
 
 *0-2 
 
 C Co 
 
 J 
 
 
 
 1! 
 
 *8 
 
 ess 
 
 - 
 
 3 ^ ~ 1 
 
 I 
 
 02 
 
 2*r 
 
 1" 
 
 >> o 
 
 
 a 
 .2 
 
 1 
 1- 
 
 1 
 
 s 
 
 Il1 
 
 retirement. 
 
 
 51 
 
 ?s -s 
 
 hs-SB 
 
 .to 
 O 
 
 
 
 -Si 
 
 su: 
 
 S 
 
 II 
 
 lli 
 
 eo -H 
 
 !i 
 
 1Js| ?* || 
 
 |i||: i|.|| . 
 |5'ig 1^1^ 
 
 5 = MS.|i!|| 
 
 II- a 4l!i 2 ll 
 
 I 
 
 _fe fa S5_ 
 
 I 
 o 
 
 H 
 
 fl 
 
 .9 
 3.2 
 
 voluntary retirement 
 after 20 years of 
 service in the State 
 
 -o 
 
 *l 
 
 III 
 
36 
 
 RETIREMENT ALLOWANCES. 
 
 [Jan. 
 
 APPENDIX D. 
 
 PENSION SYSTEMS OF THE PUBLIC 
 
 STATE OR COM- 
 MUNITY AND YEAR 
 ESTABLISHED. 
 
 Paid by State 
 or Community. 
 
 Paid in 
 Part 
 by State. 
 
 Dues paid by 
 Teachers, Per Cent, 
 of Salary. 
 
 PENSION BEGINS 
 
 With 
 Disability 
 (Years). 
 
 Without 
 Disability 
 (Years). 
 
 California (all cities), . 
 
 Community, 
 
 No, 
 
 Yes, i .... 
 
 15 V, 4 
 
 30 
 
 San Francisco 
 
 Community, 
 
 No. . 
 
 $12 per year day and 
 
 15 2 , 3 , 4 
 
 30' 
 
 (1897). 6 
 
 
 
 $6 for evening. 
 
 
 
 Colorado : D e n v e r 
 
 Community, 
 
 No, . . 
 
 None, 
 
 10 
 
 25 9 
 
 (1909). 
 
 
 
 
 
 
 Connecticut: New 
 
 Community, 
 
 No, . . 
 
 1 per cent, less than 10 
 
 15 
 
 30 
 
 Haven (1911). 
 
 
 
 years; 2 per cent. 
 
 
 
 
 
 
 over 10 years. 
 
 
 
 Illinois (cities over 
 
 Community, 
 
 No, . 
 
 $5 to $30, i . 
 
 15 
 
 25 
 
 100,000). 
 
 
 
 
 
 
 Chicago (1895), 
 
 Community, 10 . 
 
 No, . 
 
 $5 to $30, i . 
 
 159, 11 
 
 25 9 
 
 Indiana: Indianapolis 
 
 Community, 12 . 
 
 No, . 
 
 1 per cent, for 15 years 
 
 15 
 
 25 
 
 (1907). 
 
 
 
 and under; maxi- 
 
 
 
 
 
 
 mum $10; 2 per cent. 
 
 
 
 
 
 
 over 15 years; maxi- 
 
 
 
 
 
 
 mum $20. 
 
 
 
 Kentucky: Louisville 
 
 Community, 
 
 No, . 
 
 1 . 2 per cent, of salary, 
 
 20 
 
 30 
 
 (1912). 
 
 
 
 
 
 
 Maryland (1904), 
 
 State, 
 
 Wholly, . 
 
 None, 
 
 25 
 
 25 
 
 Massachusetts, except 
 
 Community, 
 
 No, . 
 
 None, 
 
 25 
 
 25^ 
 
 Boston (1908)." 
 
 
 
 
 
 
 Boston (1908) : 
 
 
 
 
 
 
 Pension fund, 
 
 Community, 
 
 No, . 
 
 None, 
 
 30 i 
 
 SOW 
 
 Teachers' retire- 
 
 Community, 20 . 
 
 No, . 
 
 $18 per year, 
 
 2" 
 
 30 21 
 
 ment fund 
 
 
 
 
 
 
 (1900). 
 
 
 
 
 
 
 Lynn, 16 . 
 
 Community, 
 
 No, . 
 
 None, 
 
 25 
 
 25" 
 
 Michigan : Detroit 
 
 Community, 23 . 
 
 No, . 
 
 1 per cent. , 24 
 
 20 
 
 25-30 w 
 
 (1895). 
 
 
 
 
 
 
 i Act mandatory upon all teachers entering service after it takes effect. 
 
 1 Fifteen years' teaching in municipality. 
 
 1 Proportionate annuity to incapacitated teachers who have been contributors for at least five years. 
 
 4 Must have paid in at least five years' dues. 
 
 6 A permanent fund of $50,000. 
 
 Fund administered by commission (mayor, superintendent and county treasurer, who report 
 biannually). The retirement commission consists of five teachers, one at least from principals, one from 
 grammar section, elected for three years. 
 
 7 With 30 years' assessments. 
 
 8 A proportionate annuity between 15 and 25 years. 
 
 9 Three-fifths of service within municipality or district. 
 
 1 Fund administered by Board of Education, two members elected by Board two teachers elected 
 by contributors, and the superintendent of schools ex officio, 
 
 11 A proportionate annuity under 30 years with disability. 
 
 12 For cities of 100,000 or more inhabitants. 
 
1913.] 
 
 HOUSE No. 1926. 
 
 37 
 
 APPENDIX D. 
 
 SCHOOLS IN THE UNITED STATES. 
 
 Author- 
 ized by 
 State 
 Law. 
 
 Minimum Sum 
 paid. 
 
 Maximum Sum 
 paid. 
 
 Other Sources of 
 Revenue. 
 
 Refunds. 
 
 Yes, . 
 
 $360 in counties, $600 
 in consolidated cities 
 
 $360 in counties, $600 
 in consolidated cities 
 
 Fines, donations and 
 miscellaneous 
 
 None. 
 
 
 and counties. 
 
 and counties. *' 
 
 sources. 5 
 
 
 Yes, . 
 
 $600, .... 
 
 $600,8 
 
 Gifts, legacies and not 
 
 None. 
 
 
 
 
 less than one-half 
 
 
 
 
 
 the sums forfeited 
 
 
 
 
 
 by teachers' ab- 
 
 
 
 
 
 sences. 
 
 
 Yes, . 
 
 As Board determines, 
 
 $480, .... 
 
 Tax of 1-10 of 1 mill; 
 
 None. 
 
 
 
 
 gifts. 
 
 
 Yes, . 
 
 $400 
 
 $800, .... 
 
 Appropriation by 
 
 _ _ 
 
 
 
 
 school board. 
 
 
 Yes, . 
 
 $400, .... 
 
 $400 
 
 Gifts, legacies, . 
 
 Resigning, one-half; 
 
 
 
 
 
 discharged, total. 
 
 Yes, . 
 
 $400 
 
 $400 
 
 Gifts, legacies, interest 
 
 Resigning, one-half; 
 
 
 
 
 on school fund. 
 
 discharged, total. 
 
 Yes, . 
 
 $15 for each year of 
 
 $600 
 
 1 cent in $100 taxable 
 
 Retiring teacher re- 
 
 
 service. 
 
 
 property; donations; 
 
 ceives one-half 
 
 
 
 
 interest on fund. l4 
 
 amount p aid into 
 
 
 
 
 
 fund; legatee, one- 
 
 Yes, . 
 
 $200 
 
 $400, .... 
 
 City appropriation, 
 
 half compensation. 
 One-half amount paid 
 
 
 
 
 gifts, legacies. 
 
 in. 
 
 Yes, . 
 
 $200 
 
 $200, . . ... 
 
 None, 
 
 - 
 
 Yes, . 
 
 Not exceeding one- 
 
 $500 
 
 Gifts, city fund, direct 
 
 _ 
 
 
 half salary upon re- 
 
 
 taxation, absences, 
 
 
 
 tirement. 
 
 
 etc. 
 
 
 Yes, . 
 
 $312, .... 
 
 $600, .... 
 
 Interest, on annuity 
 
 _ _ 
 
 
 
 
 fund, 5 cents on 
 
 
 
 
 
 $1,000. 
 
 
 - 
 
 $180,22 
 
 $180,22 
 
 Salary of custodian and 
 
 Resigning, one-half 
 
 
 
 
 clerk hire, $1,500, 
 
 after 2 years' mem- 
 
 
 
 
 paid by school com- 
 
 bership. 
 
 
 
 
 mittee. 
 
 
 Yes, . 
 
 Not exceeding one- 
 
 $500 
 
 Gifts, city fund, direct 
 
 - 
 
 
 half salary on retire- 
 
 
 taxation, absence, 
 
 
 
 ment. 
 
 
 etc. 
 
 
 Yes, . 
 
 $400 
 
 $400, .... 
 
 Gifts, legacies, money 
 
 Resigning, one-half. 
 
 
 
 
 appropriated by the 
 Board or raised by 
 
 
 
 
 
 approval of the 
 
 
 
 
 
 common council, 
 
 
 
 
 
 fees of nonresidents, 
 
 
 
 
 
 balance from teach- 
 
 
 
 
 
 ers' salaries. 
 
 
 Four-fifths time teaching within city. 
 
 Any unexpended balance of the annuity fund is transferred to permanent fund annually. 
 
 Must be 60 years old, of exemplary character and without means of support. 
 
 Also Nahant, Winchester, Brookline, Pittsfield, Wellesley, Marion. 
 
 If 60 years old. 
 
 Board may retire those 65 years old. 
 
 19 Two-thirds service in city. 
 
 20 Salary of custodian of fund and clerk hire, $1,500; paid by school committee. 
 
 21 One-third service in city. 
 
 22 Total one-third salary within these limits. 
 
 23 The board of trustees consists of the president of the Board of Education, the president pro tempore 
 of the Board of Education, the chairman of committee on teachers and scnools, the superintendent of 
 city schools, and three teachers in city schools elected by ballot from those contributing to retirement 
 fund, as the Board shall prescribe, for a term of three years, one teacher being elected each year. 
 
 24 Limit, $1,000. 
 
 25 Ten years of which in city. 
 
38 
 
 RETIREMENT ALLOWANCES. 
 
 [Jan. 
 
 PENSION SYSTEMS OF THE PUBLIC 
 
 STATE OR COM- 
 MUNITY AND YEAR 
 ESTABLISHED. 
 
 Paid by State 
 or Community. 
 
 Paid in 
 Part 
 by State. 
 
 Dues paid by 
 Teachers, Per Cent, 
 of Salary. 
 
 PENSION BEGINS 
 
 With 
 Disability 
 (Years). 
 
 Without 
 Disability 
 
 (Years). 
 
 Minnesota: 
 Duluth (1910),i 
 
 Community, 
 
 No, . 
 
 $10 to $25, . 
 
 20 
 
 30 
 
 Minneapolis (1909), . 
 
 St. Paul (1909), 
 
 Nebraska: Omaha 
 (1909). 
 
 Community, 
 
 Community, 
 Community, 
 
 No, . 
 
 No, . 
 No, . 
 
 5 years and under, $10; 
 5 to 10 years, $20; 10 
 to 30 years, $25. 2 
 1 per cent. ; maximum, 
 $25. 
 1 to \y-i per cent., 7 
 
 2 
 
 5 
 25 
 
 203 
 
 25 
 35-40 
 
 New Jersey (1896), en- 
 tire State: 
 Teachers' retirement 
 fund. 
 
 Community, 
 
 No, . 
 
 2 to 3 percent., 8 , 9 . 
 
 20 
 
 25-35 >o 
 
 New Jersey (1903) en- 
 tire State: 
 Teachers' pension 
 fund. 
 
 Community, . 
 
 No, . 
 
 None, 
 
 20" 
 
 35" 
 
 New York (1911), 
 
 State, 
 
 Yes, 
 
 1 per cent, of salary, . 
 
 15 
 
 25 
 
 Albany (1907), 
 
 Community, . 
 
 No, . 
 
 1 per cent., 
 
 20 
 
 30 
 
 Buffalo (1896), 
 
 Community, 
 
 No, . 
 
 1 to 2 per cent., . 
 
 24-28 
 
 30-35 1*. ' 
 
 Elmira (19C7), . 
 
 Greater New York 
 
 (1894). 
 
 Community, 
 Community, 
 
 No, . 
 No, . 
 
 1 per cent.; maximum, 
 $12. 
 1 per cent., l7 
 
 20V 8 
 
 30 ' 
 30 s, '8 
 
 Rochester (1905), . 
 
 Community, 
 
 No, . 
 
 2 per cent., 
 
 25-20 l , * 
 
 35-30 ', w 
 
 Schenectady (1907), . 
 
 Community, 
 
 No, . 
 
 \Y<i per cent., maxi- 
 mum. 
 
 25-201 5 , l8 
 
 35-30^,18 
 
 Syracuse (1897), 
 
 Community, . 
 
 No, . 
 
 1 per cent., 
 
 - 
 
 35-30 '5, is 
 
 Troy (1906), . 
 
 Community, 
 
 No, . 
 
 1 per cent., 
 
 
 37 
 
 Cities of 10,000 inhabitants. 
 Ten years of which in city. 
 
 Any contributions unpaid are paid in lump sum or deducted from annuity. 
 
 Proportionate annuity to incapacitated teachers who have been contributors for at least five years. 
 Board may retire those 65 years old. 
 Twenty years within city. 
 Payments cease when $500 are paid in. 
 
 Fund administered by Board of Education, two members elected by Board, two teachers elected 
 by contributors, and the superintendent of schools ex officio. 
 Maximum, $50. 
 
1913.] HOUSE No. 1926. 
 
 SCHOOLS IN THE UNITED STATES Con. 
 
 39 
 
 Author- 
 ized by 
 State 
 Law. 
 
 Minimum Sum 
 paid. 
 
 Maximum Sum 
 paid. 
 
 Other Sources of 
 Revenue. 
 
 Refunds. 
 
 Yes, . 
 
 $333.33, 
 
 $500 
 
 One-tenth mill on all 
 
 Discharge, all pay- 
 
 
 
 
 taxable property 
 
 ments ; resigning, 
 
 Yes, . 
 
 $16.66% for each year 
 
 $500, . 
 
 gifts. 
 One-tenth mill on tax- 
 
 one-half payment. 
 Discharged, total; re- 
 
 
 of service. 
 
 
 able property; inter- 
 
 signing, one-half; all 
 
 
 
 
 est on fund. 
 
 to legatee. 
 
 Yes, . 
 
 $480,2 
 
 $480 
 
 One-tenth mill on tax- 
 
 Not specified. 
 
 
 
 
 able property. 
 
 
 Yes, . 
 
 $500, 
 
 $500 
 
 Gifts; \V-i times teach- 
 
 None. 
 
 
 
 * 
 
 ers' contributions 
 
 
 
 
 
 and not less than 
 
 
 
 
 
 required sum; in- 
 
 
 
 
 
 terest on fund. 
 
 
 Yes, . 
 
 S250.il 
 
 $650," 
 
 (1) Donations; (2) 1 per 
 
 None. 
 
 
 Six-tenths of average 
 
 Six-tenths of average 
 
 cent, of annuities; (3) 
 
 
 
 annual pay for last 
 
 annual pay for last 
 
 interest on annuity 
 
 
 
 5 years. 
 
 5 years. 
 
 fund. State pays 
 
 
 
 
 
 administration ex- 
 
 
 
 
 
 penses. 
 
 
 Yes, . 
 
 One-half of average 
 
 One-half of average 
 
 Board of education of 
 
 
 
 annual salary for 
 
 annual salary for 
 
 city pays all annui- 
 
 
 
 last 5 years. 
 
 last 5 years. 
 
 ties. 
 
 
 Yea, . 
 
 One-half pay at re- 
 
 One-half pay at re- 
 
 State appropriation, 
 
 No provision. 
 
 
 tirement not to ex- 
 
 tirement not to ex- 
 
 gifts, legacies. 
 
 
 
 ceed $600. 
 
 ceed $600. 
 
 
 
 Yes, . 
 
 One-half average an- 
 
 $600 
 
 3 per cent, excise mon- 
 
 All if discharged. 
 
 
 nual pay for last 5 
 
 
 eys; interest; teach- 
 
 
 
 years. 
 
 
 ers' absences; dona- 
 
 
 
 
 
 tions. 
 
 
 Yes, . 
 
 One-half pay allowed 
 
 $800 
 
 Appropriation not 
 
 All if discharged. 
 
 
 on retirement. 
 
 
 over amount paid by 
 teachers; donations; 
 
 
 
 
 
 interest. 
 
 
 Yes, . 
 
 One-half average an- 
 
 $400, .... 
 
 Appropriation, $2,000 
 
 Three-fourths. 
 
 Yes, . 
 
 nual pay last 5 years. 
 $600, one-half salary 
 
 $1,500 to $2,000, 19 
 
 per year; interest. 
 (1) Fines, deductions; 
 
 All if discharged. 
 
 
 upon retirement. 
 
 
 (2) legacies, gifts; (3) 
 
 
 
 
 
 5 per cent, annually 
 
 
 
 
 
 of all excise moneys, 
 
 
 
 
 
 or fees from liquor 
 
 
 
 
 
 licenses. 
 
 
 Yes, . 
 
 Half of pay at retire- 
 
 $800 
 
 An amount equal to 
 
 All if discharged. 
 
 
 ment. 
 
 
 teachers' contribu- 
 
 
 
 
 
 tions, from Board ; 
 
 
 
 
 
 donations; interest. 
 
 
 Yes, . 
 
 $350 
 
 $450 
 
 Amount equal to V/z 
 
 Three-fourths if dis- 
 
 
 
 
 per cent, teachers' 
 
 charged. 
 
 
 
 
 pay roll ; from 
 
 
 
 
 
 liquor tax. 
 
 
 Yes, . 
 
 One-third pay at re- 
 
 $800, .... 
 
 Deductions teachers' 
 
 All if discharged. 
 
 
 tirement. 
 
 
 absences; dona- 
 
 
 
 
 
 tions; interest. 
 
 
 - 
 
 One-half pay at re- 
 
 $800 
 
 5 per cent, excise; de- 
 
 All if discharged. 
 
 
 tirement. 
 
 
 ductions teachers' 
 
 
 
 
 
 absences; dona- 
 
 
 
 
 
 tions; interest; bal- 
 
 
 
 
 
 ance annually from 
 
 
 
 
 
 salaries. 
 
 
 Act mandatory upon all teachers entering service after it takes effect. 
 
 Women, 20; men, 25. 
 
 Must have paid in at least the sum of one annuity. 
 
 Twenty years within State. 
 
 Four-fifths time teaching within city. 
 
 Women less number of years than men. 
 
 If 65 years old. 
 
 Maximum, $40. 
 
 Fifteen years' teaching in municipality. 
 
 $1,500 principal; $2,000 supervisor. 
 
40 
 
 RETIREMENT ALLOWANCES. 
 
 [Jan. 
 
 PENSION SYSTEMS OF THE PUBLIC 
 
 
 
 
 
 PENSION i 
 
 JEGINS 
 
 STATE OR COM- 
 MUNITY AND YEAR 
 
 ESTABLISHED. 
 
 Paid by State 
 or Community. 
 
 Paid in 
 Part 
 by State. 
 
 Dues paid by 
 Teachers, Per Cent, 
 of Salary. 
 
 With 
 Disability 
 (Years). 
 
 Without 
 Disability 
 (Years). 
 
 New York: Con. 
 Yonkers (1908), 
 
 Community, 
 
 No, . 
 
 1 per cent., 
 
 - 
 
 30-25' 
 
 Ohio 
 
 Community, 
 
 No, . 
 
 $20 per annum, 2 
 
 203 
 
 303 
 
 Cincinnati (1897), . 
 
 Community, 
 
 No, . 
 
 $20 per year, 
 
 203 
 
 303 
 
 Cleveland (1906), . 
 
 Community, 
 
 No, . 
 
 $20 per year, 
 
 203 
 
 30' 
 
 Columbus (1909), . 
 
 Community, 
 
 No, . 
 
 $20 per year, 
 
 20' 
 
 30' 
 
 Springfield (1908), . 
 
 Community, . 
 
 No, . 
 
 $2C per year, 
 
 20 3 
 
 30' 
 
 Pennsylvania: Harris- 
 burg (1908). 
 
 Community, 
 
 No, . 
 
 2 to 3 per cent., 4 
 
 55' 
 
 30 6 
 
 Philadelphia, . 
 Pittsburg (1908), 
 
 Community, 
 Community, 
 
 No, . 
 No, . 
 
 1 per cent, first 10 
 years; afterwards, 2 
 per cent. 4 
 $20 per year, 
 
 307-56 
 10 
 
 30 
 30"> 
 
 Rhode Island, entire 
 State. 
 
 Providence (1897), . 
 
 State, 
 No, . 
 
 Wholly, . 
 No, . 
 
 None, 
 1 per cent., maximum, 
 
 35 8 ," 
 
 10 
 
 35 8 ," 
 35-30 * 
 
 South Carolina: 
 Charleston. 
 
 Utah- Salt Lake City 
 
 Community, 
 No, 
 
 No, . 
 
 No, 
 
 $12. 
 None, 
 
 1 per cent , 1S 
 
 20 
 30 
 
 25" 
 30 V," 
 
 (1909). 
 
 
 
 
 
 
 Vermont (1910), . 
 Virginia: entire State 
 
 Community, 
 
 State, 
 
 No, . 
 Yes, 
 
 None, 
 1 per cent, of salary, . 
 
 20 
 
 30 
 30 , 
 
 (1908). 
 
 Wisconsin: Milwaukee 
 (1909). i 
 
 Community, 
 
 No, . 
 
 $24 per year, 
 
 25" 
 
 25io 
 
 Women less number of years than men. 
 
 2 Voluntary. 
 
 3 Three-fifths of service within municipality or district. 
 
 4 Maximum, $50. 
 
 6 Proportionate annuity to incapacitated teachers who have been contributors for at least five years. 
 
 8 Twenty years within city. 
 
 7 Ten years of which in city, 
 s If 60 years old. 
 
 9 Proportionate annuity. 
 
1913.] HOUSE No. 1926. 
 
 SCHOOLS IN THE UNITED STATES Con. 
 
 41 
 
 Author- 
 ized by 
 State 
 Law. 
 
 Minimum Sum 
 paid. 
 
 Maximum Sum 
 paid. 
 
 Other Sources of 
 Revenue. 
 
 Refunds. 
 
 Yes, . 
 
 One-half pay at time 
 of retirement. 
 
 $800 
 
 5 per cent, excises; de- 
 ductions teachers' 
 
 All if discharged. 
 
 
 
 
 absences; dona- 
 
 
 
 
 
 tions; interest. 
 
 
 Yes, . 
 
 $200 
 
 $300, . . * . 
 
 Deductions for teach- 
 ers' absences, fines, 
 
 Discharge, one-half; 
 resigning, one-half; 
 
 
 
 
 assessments of 
 
 legatee, one-half. 
 
 
 
 
 teachers, and from 
 
 
 
 
 . 
 
 1 to 2 per cent . of 
 
 
 
 
 
 amount of taxation. 
 
 
 Yes, . 
 
 $200 
 
 $300 
 
 Deductions for teach- 
 
 Resigning, one-half; 
 
 
 
 
 ers' absences, fines, 
 
 legatee, -one-half . 
 
 
 
 
 assessments of 
 
 
 
 
 
 teachers, and from 
 
 
 
 
 
 1 to 2 per cent, of 
 
 
 
 
 
 amount of taxation. 
 
 
 Yes, . 
 
 $200, .... 
 
 $3CO, .... 
 
 1 per cent, of school 
 
 Resigning, one-half; 
 
 Yes, . 
 
 $200 
 
 $300 
 
 tax; interest. 
 1 per cent, of school 
 
 legatee, one-half. 
 Resigning, one-half; 
 
 
 
 
 tax; interest. 
 
 legatee, one-half. 
 
 Yes, . 
 
 $200 
 
 $300 
 
 1 to 2 per cent, school 
 
 Resigning, one-half; 
 
 
 
 
 tax; interest. 
 
 legatee, one-half. 
 
 Yes, . 
 
 One-half pay at re- 
 
 $800 
 
 Amount from Board 
 
 None. 
 
 
 tirement. 
 
 
 equal to teachers' 
 
 
 
 
 
 contributions. 
 
 
 Yes, , 
 
 $400 
 
 $800 
 
 Sum from Board 
 
 All if discharged. 
 
 
 
 
 equals teachers' con- 
 tributions. 
 
 
 Yes, . 
 
 $400 
 
 $400 
 
 Donations; interest, . 
 
 Resigning, one-half; 
 
 
 
 
 
 legatee, one-half. 
 
 Yes, . 
 
 One-half average an- 
 
 $500, .... 
 
 None, 
 
 _ _ 
 
 
 nual salary for 5 
 
 
 
 
 
 years preceding. 
 
 
 
 
 Yes, . 
 
 Half pay at retire- 
 
 $600 
 
 Donations ; entertain- 
 
 None. 
 
 
 ment. 
 
 
 ments; interest. 
 
 
 Yes, . 
 
 One-half salary on re- 
 
 $250 
 
 10 per cent, for first 5 
 
 None. 
 
 
 tirement. 
 
 
 years, then 4 per 
 
 
 
 
 
 cent, of school tax. 
 
 
 Yes, . 
 
 One-half average an- 
 
 None, 8 . 
 
 Deductions for ab- 
 
 Refunds all to lega- 
 
 
 nual salary for 5 
 
 
 sences; gifts, be- 
 
 tee; resigning re- 
 
 
 years preceding. 
 
 
 quests, donations, 
 legacies. 
 
 ceives one-half of 
 contributions; dis- 
 
 
 
 
 
 charged receives to- 
 
 
 
 
 
 tal amount. 
 
 Yes, . 
 
 As voted, . 
 
 As voted, . 
 
 School money, . 
 
 None. 
 
 Yes, . 
 
 One-half average an- 
 
 $500 
 
 Legacies; bequests, . 
 
 None. 
 
 
 nual salary for 5 
 
 
 
 
 
 years preceding. 
 
 
 
 
 Yes, . 
 
 $400, . . 
 
 $400, .... 
 
 1 per cent, of school 
 
 Resigning teacher re- 
 
 
 
 
 tax. 
 
 ceives total contri- 
 
 
 
 
 
 bution; discharged 
 
 
 
 
 
 receives total 
 
 
 
 
 
 amounts ; legatee re- 
 
 
 
 
 
 ceives total amount. 
 
 10 Fifteen years' teaching in municipality. 
 
 11 Twenty-five years within State; 15 years immediately preceding within State. 
 
 12 Board may retire those 60 years old. 
 
 1 3 Act mandatory upon all teachers entering service after it takes effect. 
 
 14 With 30 years' assessments. 
 
 15 If 50 years (women); 58 years (men). 
 
 16 Cities of 50,000 inhabitants or more. 
 
 17 A proportionate annuity between 15 and 25 years, 
 is If 65 years old. 
 
42 
 
 RETIREMENT ALLOWANCES. 
 
 [Jan. 
 
 I 
 s 
 
 O 
 
 w 
 
 -<t<C5a>OOOr--'fiO 
 
 ^ CM <M co I-H T-I 
 
 
 T-I (M C^J CO i-l r-t 
 
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 rt CO CO OS O5 CO CO Oi M .-I 5 IM CO CO <M -< CO I CO 
 
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 r-t CM T< rH CO COl-l rt ^H 
 
 10 ^ ' 
 
 (M ^H 03 00 CO <M O 00 
 
 oo S> ?5 = 
 
 I^OO-I 1 CN I I I 
 
 
1913.] 
 
 HOUSE No. 1926. 
 
 43 
 
 
 fl 
 
 
 
 
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 g 
 
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 IM |t>(MOi-r^.cocsiTtii^.i>.ooooco i i 
 
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 O7liOlO5'OO'OOlC3tfMOO'OlO? 
 
 
 
RETIREMENT ALLOWANCES. 
 
 [Jan. 
 
 CO 
 O 
 
 PQ 
 
 CO 
 
 
 Women. 
 
 Tf'^T^O^'^OOC". OO C^ 1C 
 
 1-TirJ 
 
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 us 
 
 1 
 
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 _,-lT-ICOCS5-HSOOCO^H~H 
 
 * 
 
 S 
 
 
 In Salary 
 Group. 
 
 O * O5 tOlOQCO Ot^i-l COl^^O O5-^CO CO 1 
 ^^^OtMOOCOOI^COOCSCOi-I^H 
 
 ^c<r 
 
 5 
 
 
 
 
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 1 
 
 
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 <r> 
 
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 ij 
 
 
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 s 
 
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 rj< O 1C Tjf M< -^ ^J< 00 <*< 00 <M CO * M< (M 1 1 1 1 
 
 i-i o os o -^ co <M -ie^-i 
 
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 WN 3f3||3SSS5 t -3S:3!S ooeON ' ' ' 
 
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 ssil^sssss 50 ' 
 
 
 
 
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 3 
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1913.1 
 
 HOUSE No. 1926. 
 
 45 
 
 . 
 
 Women. 
 
 gsss^ss?^ ^^ .- . . i . 
 
 CO OO I""- ^f * 1 -H 
 
 O5 
 
 j 
 
 
 
 
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 c 
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 O}rt<M-i(MiC<MrtH 
 
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 In Salary 
 Group. 
 
 r*l t^ ^H OO 00 CO CO CO 5 C<I -H -H CC Tt< OO I 1 ^H I 
 
 " 5 3382^ f0 ' oc ''~- 
 
 i 
 
 iri 
 
 
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 IWII'HIIIII'-lllllllll 
 
 >O 
 
 
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 1 (M CM 1C | |rHT-l| ! M I | | | | | | | 
 
 CO 
 
 
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 <M (M CO O O CO IM IT-H.-KMOO 1 <M 1 1 1 1 1 
 
 S; 
 
 
 j 
 
 s 
 
 H rH t^ O5 O5 t^ 1C 1 1 rt-HCOCO^H 1 1 1 1 1 
 
 S 
 
 
 s 
 
 8 
 
 * CO CD i-t OO O O T< IN |,^cqNi-iTH 1 1 1 1 
 
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 YEARS). 
 
 1 
 
 (M (M CO O5 T*< CD CO CC I (M O i-H TI CO CO 1 1 1 1 
 
 <M 
 
 w 
 
 
 
 <5 
 
 5 
 
 ^i 
 
 SC 2Io;^?3S I ^ CC '* NaS ' :0(NC<I ' ' ^ ' 
 
 i 
 
 
 3 
 
 05 g g JO -H 50 CO t- CO -H 10 1 1 1 1 1 
 
 
 
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 CO 
 
 ^^llg^^ 5010 " 5 ^ 10 ^ 1 <M . 1 1 1 
 
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 ^S^S^S^^S^ 0005 ^ ' ' ' ' ' ' 
 
 C$ 1-H T-l 
 
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 t>. 
 
 
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 OTfJCO-H 1 1 <-< 1 1 1 1 1 | | | | | | 1 
 
 ^ 
 
 
 
 
 
 
 
 
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 S 
 
 
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 02 
 
 11S1I11IS1I1SI11I 
 
 3 
 
 
 
 
 
 
46 
 
 RETIREMENT ALLOWANCES. 
 
 [Jan. 
 
 
 Women. 
 
 CCt~*^i-<^t<OMl^<MI |r-l| 1 1 1 1 1 1 
 <M O_C <M * 
 
 oo 
 c<f 
 
 TOTAL. 
 
 d 
 
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 r-- oo >o cc *< o -^< o t^ o ^ co PO I-H i i i i i 
 
 
 
 oo 
 
 
 In Salary 
 Group. 
 
 o3<o--faoio<or>.O5O'-ia3c3^H| I I I 1 
 
 t^lXl-^irOt^iOCOlM-^IMC^ 
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 + 
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 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 
 
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 1-1 O * C-J 1 I 1 1 I I I I 1 I I I I I I 
 
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 s 
 
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 00 05 t-- T-C s> C^l 1 1 1 1 ^ 1 1 1 1 1 1 1 
 
 
 
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 5 
 
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 3 
 
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 JJJ CJ 02 t^ t-< r^ 
 
 1 
 
 
 8 
 
 a 
 
 C0g<> 1 1 1 1 I 1 I 1 1 1 1 1 1 1 1 1 
 
 c3 
 
 
 
 
 
 
 
 
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 I 
 
 >> 
 
 x> 
 
 3 
 
 
 
 
 E^ 
 
1913.] . HOUSE No.' 1926. 47 
 
 APPENDIX F. 
 
 DESCRIPTION OF THE RETIREMENT SYSTEM FOR MASSACHUSETTS 
 STATE EMPLOYEES. 1 
 
 The essential provisions of the retirement system may be com- 
 pactly summed up as follows : 
 
 The plan is based on the principle of joint contributions by em- 
 ployees and Commonwealth. The employees are to be assessed 
 regularly on their wages and salaries at a rate of not less than 1 nor 
 more than 5 per cent., to provide a fund out of which annuities shall 
 be paid to those retiring from the service. Exception is made, how- 
 ever, in cases of employees receiving more than $30 per week; such 
 employees are not to be assessed on the excess above that amount, 
 but simply on a flat basis of $30 per week. The annuity received 
 by each employee retired under the provisions of the act is such an 
 amount as his contributions during his period of service accumulated, 
 with interest at 3 per cent, compounded semiannually, will provide for 
 him, according to actuarial computation. In addition to the annuity, 
 the retired employee receives in each case a pension of equivalent 
 amount paid from the State treasury. In no case is the total allow- 
 ance, including annuity and pension, to be less than $200 per year, 
 or more than one-half of the average wages or salary during the ten 
 years prior to retirement. 
 
 The age of voluntary retirement is sixty years, that is, an employee 
 upon reaching that age may retire or may be retired by the Board 
 entrusted with the administration of the act. The age of compul- 
 sory retirement is seventy years, that is, an employee upon reaching 
 that age must retire or be retired. An additional requirement of 
 fifteen years' continuous service is laid down for employees retiring 
 or retired at the age of sixty. It should be noted, however, that em- 
 ployees who had reached the age of sixty when the retirement system 
 was established, and also employees who had reached the age of 
 fifty-five years at that date and became members of the association, 
 may be retired without having completed the otherwise required 
 service period of fifteen years. Employees who had reached the 
 age of fifty-five and did not join the association may be retired with 
 the minimum allowance of $200 prescribed in the act. Furthermore, 
 employees who had served thirty-five years continuously may retire 
 or be retired at any age. 
 
 1 From a document published by tbe State Treasurer. 
 
48 
 
 RETIREMENT ALLOWANCES. [Jan. 1913. 
 
 In addition to pensions for subsequent service, pensions for prior 
 service are provided, that is, employees in the service when the retire- 
 ment system is established are to receive, in addition to the allowance 
 which they may secure through contributions to the annuity fund 
 and the pension of corresponding amount paid from the State treas- 
 ury, an extra allowance equal to the amount of the annuity that 
 they might have earned for themselves had the system been in opera- 
 tion when they entered the service, and had they made contributions 
 to the retirement fund from that date to the time of its establishment. 
 
 Participation in the system is optional for present employees. 
 It is obligatory for future employees, those entering the service after 
 the establishment of the system, with the exception of officers elected 
 by popular vote, employees eligible for pensions under other acts of 
 the Legislature, employees who serve only for short terms or on part 
 time, and employees over fifty-five years of age at the time of enter- 
 ing the service. 
 
 Provision is made for refunding the contributions of employees 
 who withdraw from the service for any reason without becoming 
 entitled to a retirement allowance. In case a member of the asso- 
 ciation leaves the employment for any cause other than death, before 
 becoming entitled to a pension, there shall be refunded to him all the 
 money that has been paid in by him, with interest at 3 per cent. In 
 case a member dies before becoming entitled to a pension, there shall 
 be paid to his legal representatives all the money that has been paid 
 in by him, with such interest as may have been earned on the deposit. 
 
 The administration of the system is entrusted to a Board of Re- 
 tirement, consisting of the State Treasurer, another member chosen 
 by the retirement association, composed of participating employees, 
 and a third member selected by the first two, or appointed by the 
 Governor in case of their failure to agree. The insurance depart- 
 ment of the Commonwealth is given powers of supervision with refer- 
 ence to the actuarial and administrative features of the system. 
 
YC 5756' 
 
 UNIVERSITY OF CALIFORNIA LIBRARY 
 
 UNIVERSITY OF CALIFORNIA LIBRARY 
 BERKELEY 
 
 THIS BOOK IS DUE ON THE LAST DATE 
 STAMPED BELOW 
 
 Books not returned on time are subject to a fine of 
 50c per volume after the third day overdue, increasing 
 to $1.00 per volume after the sixth day. Books not in 
 demand may be renewed if application is made before 
 expiration of loan period. 
 
 *OV 271920