3 ®\* A Pay As You Go Pension Plan unity T HE advantages to industry of a Pension System are so many that, despite the large and uncertain costs of the Pension Plans hitherto offered, employers are more generally putting Pension Systems into effect. Many employers, though fully appreciating the advantages, have been deterred from announcing any Pension Plan by the uncertainties as to cost. Recognizing the increasing demand for a scientific Pension System which should be at once simple and effective, and the cost of which might be closely approximated in advance, the Metropolitan Life Insurance Company has con¬ ducted a considerable investigation of the entire subject, as the result of which it is able now to announce a system which combines all of the desired qualities. M ANY of the difficulties of Pension Plans hitherto established have arisen from the treatment of Pension payments as current liabilities to be paid yearly as an operating expense, and from the constant and long continued increase of these payments rising sometimes to an amount equivalent to more than 20 per cent, of the current payroll. These great and indeterminate costs can be provided against only by the setting up of a reserve during the period of active employment, sufficient at the retirement age to provide for the subsequent Pension or Annuity payments. Such a reserve, created and continued by annual payments with respect of each employee, if scrupulously segregated and permitted under wise guidance to accumulate during the period of employment, absorbs a comparatively small percentage of the active payroll. The great difficulty of knowing precisely the amount which should be thus set aside arises from the uncertainties of the labor turnover and of the wage scale, both of which may vary greatly within twenty-five or thirty years, without the possibility of prediction. Because of the very long period between the setting up of the first reserve and the making of the last Pension payment,—often more than half a century— and of the rapid changes both of management and corporate structure to which employing organizations are inevitably subject, it is clearly desirable that the guardianship of a Pension Fund should be in the hands of an institution permanent in its nature and most carefully safeguarded, both as to its business conduct and the investment of the funds held by it as trustee. These qualifications are possessed in a high degree and almost exclusively by^f Life Insurance Companies. Owing to the impossibility of predicting either length of employment or final salary, the safe, simple and sure method for the employer to take care of future payments to an individual might better be based on calculations dealing with the individual himself than with his relationship to a group. The plan presented by the Metropolitan Life Insurance Company is based, not only on the individual, but on a single year of employment. The Company I . > ' [i s S; cS O v issues, in consideration of a specific amount paid in advance, an individual deferred annuity contract under which it is bound to pay to the holder (namely to the employee) on his sixty-fifth birthday a certain amount of money, and to repeat this payment on each subsequent birthday as long as he may live. f This amount may be $10 or any other sum above $10. Thus, an employee who receives one of these contracts (called “Pension Bonds” or “Retirement Certificates”), when he is 25 years old, will, beginning with his sixty-fifth birthday, * receive an annual payment for life of $10. Clearly, if during each of the forty subsequent years he receive a similar document, he will by the time he is sixty-five have accumulated forty $10 units, as to each of which he will be paid $10 a year by the Insurance Company; his aggregate yearly income or Pension at that time, thus being forty times $10 or $400. Contributory Plans While it is perfectly possible for the employer to pay the total cost of these Pension Bonds or Retirement Certificates and to deliver them annually to his employees during their period of service, thus automatically setting up an adequate Pension reserve, it is equally possible for the employee and the employer to join in this payment. If the employee is to contribute toward the cost of the Pension Plan, he makes certain very definite demands which must be met. The first of these is that, in the event of his separation from the service, there shall be returned to him his contribution in money or its equivalent. The disadvantage of a cash return of contributions to departing employees is obviously the fact that the time may come when the money which would be re¬ turned to him on giving up his job is more important to him than the job itself, and he therefore inclines to quit in order to get back his money. Partly for this reason, and partly because if Pension Bonds or Retirement Certificates had a cash value to the employee, he would in many cases cash them in instead of waiting to benefit by the Annuity, Metropolitan Pension Bonds or Retirement Certificates have no cash value to the employee. There are two other requirements in a contributory Pension Plan which do not hold if the employer pays the entire cost of the Pensions. 1. In the event of death prior to the Pension age, the amount paid by the employee must be returned to him. 2. In the event of death after the first Retirement payment but before the total amount thus paid has equalled the amount contributed by the employee, subsequent payments must be made to his estate, approximating if not equalling or exceed¬ ing the amount paid by him. To conform to this requirement, the Metropolitan Life Insurance Company has issued a second form of Deferred Annuity called “Refunding Pension Bonds” or “Retirement Certificates with Death Benefit,” carrying these two additional provisions. 2 ] i i These and other added provisions somewhat increase the cost of this second form. A Technical description and schedule of costs of each of these forms will be found on the last page of this booklet. Dr. Henry S. Pritchett of the Carnegie Foundation has said: “Any employer that undertakes to carry the liabilities which accrue under a system of non-contributory Pensions will in the end find the load intolerable. ” Experience multiplies not only to confirm this statement but to demonstrate more and more clearly the advantages alike to the employer and to the employee of contributory plans. Not the least of these advantages is the inculcation of the habit of saving which in itself is amply worthwhile. vL T » & ,£ 3 3 9 I Amount of Pension The amount of Retirement allowance is a matter of judgment. It is usually based on a percentage of final salary; among railways and industrial corporations— 1 per cent, is usual. This ranges upward to 2 per cent., and sometimes even 2\ per cent, among banks and similar institutions. It is obviously impossible at the beginning of a man’s employment to fore¬ cast exactly what his final salary may be, or to set up any reserve with respect of it. A sounder practice, if a percentage basis be decided upon, and one which is at least capable of permitting provision to be made in advance for the Pension payment, is a percentage based on the average salary for the whole period of employment. This can be made to produce results similar to the final salary basis by increasing the percentage. Metropolitan Pension Bonds or Retirement Certificates lend themselves easily to this plan. Clearly, if a Pension is to be based on 1 per cent, of the average salary multi¬ plied by the years of service, it is only necessary that there be provided for each employee each year a Pension Bond or Retirement Certificate to the extent of 1 per cent, of that year’s salary. Automatically at the end of the period the employee will have accumulated Pension Bonds or Retirement Certificates suffi¬ cient to yield him an Annuity equal to 1 per cent, of his average earnings for the total period. Another plan having the great advantage, especially if employees are to contribute to it, of extreme simplicity, is the allowance of a Pension based on a fixed sum as to each year of service. Thus, a Pension based on a fixed amount of $10 for each year of service would, at the end of thirty years of service, yield $300 a year. Based on $15 a year, the yield would be $450 for thirty years of service, and so on. Age of Retirement. The age of retirement most generally accepted in industry is 65. Therefore, Metropolitan Pension Bonds or Retirement Certificates have been made normally payable beginning with the sixty-fifth birthday. Each con¬ tains, however, a provision that at the owner’s option the Annuity may begin at an earlier period with a smaller annual payment to the owner, and at a later period with a larger annual payment, and a table of the alternative proportionate payments for ages 55 to 75 is printed in each bond. [3 Suspension or Discontinuance. Because each Metropolitan Pension Bond or Retirement Certificate is a unit complete in itself, having no connection with any Pension Bond or Retirement Certificate previously or subsequently issued, a Pension Plan operated under this system may be suspended or discontinued with no loss whatever to any employee or pensioner. If an employee has worked for thirty years, during two of which the plan was suspended, he will have accumulated twenty-eight instead of thirty units. His retirement allowance would be (on a $10 a year basis) $280 instead of $300. Certainly this is no great hardship; and meantime there has been neither discon¬ tinuance nor delay of any Pension payment to an employee who had already begun to draw his Annuity. The discontinuance, suspension or reduction of Pension payments, ne¬ cessitated by some unforeseen business catastrophe, has resulted most disastrously for all concerned. The employer whose employees are protected by Metropolitan Pension Bonds or Retirement Certificates knows of a certainty that no business condition affecting his industry can interrupt or stop the payment of the Pensions to superannuated employees, whose very livelihood is at times dependent on them. Division of Payments Between Employer and Employee. Not the least advantage of Metropolitan Pension Bonds or Retirement Certificates is their adaptability to almost any scheme of Pensions. Payment for them is equally adaptable to almost any predetermined plan. For the purpose of illustration there follows a copy of a circular, addressed to employees, which explains in simple words the workings of a contributory plan based on the setting up of a Retirement allowance of $10 for each year of service after the first year. The cost of the Pension Bond or Retirement Certificate at his age of entry into the service is paid by the employee, the difference between this cost and the cost at his age at each subsequent year being paid by the employer. In examining this plan it should be borne in mind that it is an example of one form merely, and is subject to almost limitless variation. It is submitted to give in concrete form the actual operation of one type of Pension Plan. Some comments on the plan itself and a further discussion of costs follow the “Circular to Employees. ” 4 Suggested Circular To Employees INDEPENDENCE AND RETIREMENT PLAN* What the Retirement Plan is It is a plan under which every member will receive a certain amount of money on the day he is sixty-five years old (or, if he choose, a less amount at an earlier age or a greater amount at a later age), and the same amount every year thereafter as long as he lives. Who May Join the Retirement Plan Every employee of this Company who has been employed for one year or more may join the Plan. How Much the Retirement Payment is Beginning with $10 for the first year of membership, the amount of the yearly Retirement payment increases $10 for every year of membership. If you are a member for twenty years, the payment which you would receive every year as long as you live after you are sixty-five would be twenty times $10, or $200. What Membership Costs The cost of membership depends on your age when you were employed by this Company. The younger you were when you began working here, the cheaper the cost of membership. The table shows how much per week membership cost YOU for a retirement allowance of $10 a year for each year of membership. Find your age at the date of your employment. IF YOU ARE A MAN IF YOU ARE A WOMAN and began work here when you were: the weekly cost to you is: and began work here when you were: the weekly cost to you is: and began work here when you were: the weekly cost to you is: and began work here when you were: the weekly cost to you is: 14 years old... .$0.30 40 years old... .$0.91 14 years old... .$0.35 40 years old... .$1.02 16 years old... .32 41 years old... .95 1 5 years old... .36 41 years old... . 1.06 16 years old... .33 42 years old... . 1.00 16 years old.. .38 42 years old... . 1.11 17 years old... .34 43 years old... . 1.04 17 years old.. .39 43 years old... . 1.16 18 years old... .36 44 years old. . . 1.09 18 years old.. .41 44 years old... . 1.21 19 years old... .37 46 years old. . . 1.14 19 years old.. .43 45 years old... . 1.26 20 years old... .39 46 years old.. . 1.19 20 years old.. .44 46 years old.. . 1.31 21 years old.. .41 47 years old. . . 1.24 21 years old.. .46 47 years old.. . 1.37 22 years old.. .42 48 years old.. . . 1.30 22 j^ears old.. .48 48 years old.. . 1.43 23 years old.. .44 49 years old.. . . 1.36 23 years old. . .50 49 years old.. . 1.49 24 years old.. .46 60 years old.. . . 1.42 24 years old.. .52 60 years old.. . 1.55 26 years old.. .48 61 years old... . 1.48 26 years old.. .54 61 years old.. . 1.62 26 years old.. .50 62 years old.. . 1.54 26 years old.. .57 52 years old.. . 1.69 27 years old.. .52 63 years old.. . 1.61 27 years old.. .59 53 years old.. . 1.76 28 years old.. .54 64 years old.. . 1.68 28 years old.. .62 64 years old.. . 1.83 29 years old.. .57 66 years old.. . 1.75 29 years old.. .64 65 years old.. . 1.91 30 years old.. .59 66 years old.. . 1.82 30 years old.. .67 66 years old. . . 1.98 31 years old.. .62 67 years old.. . 1.90 31 years old.. .70 57 years old .. . 2.06 32 years old.. .64 68 years old. . . 1.98 32 years old.. .73 68 years old. . 2.15 33 years old.. .67 69 years old.. . 2.05 33 years old.. .76 59 years old.. . 2.23 34 years old.. .70 60 years old.. . 2.13 34 years old. . .79 60 years old.. . 2.31 36 years old.. .73 61 years old.. . 2.21 36 years old.. .83 61 years old.. . 2.40 36 years old.. .77 62 years old. . . 2.29 36 years old.. .86 62 years old.. . 2.48 37 years old.. .80 63 years old.. . 2.37 37 years old.. .90 63 years old. . . 2.57 38 years old.. .84 64 years old.. . 2.44 38 years old.. .94 64 years old.. . 2.65 39 years old.. .87 39 years old.. .98 The cost of membership will be deducted from each member’s weekly pay for fifty weeks in each year. *This Company reserves the right to modify or discontinue or suspend this plan at any time without notice, in which event all money paid in by employees, for which Retirement Certificates have not been delivered, will be returned. Such action, however, will not in any way affect the payment of retirement allowances as to Certificates already issued. Neither the establishment of this system nor the granting of a Pension shall give any employee a right to continue in the employment of this Company. The right and power of the Company to dismiss or discharge any employee is hereby expressly reserved. Who Keeps the Money for You The Metropolitan Life Insurance Company, with over a billion and a quarter dollars in its treasury to protect you, gets the money that is paid by the mem¬ bers and by the employer, and every year as long as you are a member of the plan issues to you a RETIREMENT CERTIFICATE WITH DEATH BENEFIT guaranteeing to pay you $10 on your sixty-fifth birthday, and to repeat this payment every subsequent birthday as long as you live. Who Pays the Cost The cost is paid partly by the members and partly by this Company. The longer you have been employed the more the Company pays. Your payment does not change; the Company’s payment increases every year. What Happens If You Die If you die before you begin to draw your Retirement payments, your family or whoever you may name gets back from the Metropolitan Life Insurance Company all the money that you have paid on account of your RETIRE¬ MENT CERTIFICATES WITH DEATH BENEFIT, and, in addition, all money that this Company has paid for you on account of them. Whether you live or die you are guaranteed at least ten annual Retirement payments on the Certificates you helped to pay for, so, if you die after you have begun to draw your payments, the Metropolitan keeps right on paying your family (or whoever you may name) your full Retirement Pay each year until it has made to you and them together at least ten payments. Any Retirement Certificates which may be given you free by this Company provide an annual payment for life, beginning when you are 65, but no additional payment after you die. What I-Iappens If You Leave If you leave, you get back all you have paid during that year in full. If you leave after you have received your Retirement Certificate, it is just as good as though you stayed here. Wherever you are, when you reach the age of sixty-five, the Metropolitan Life Insurance Company will pay you the total amount of all the certificates you own, and will keep on paying the same amount again every year as long as you live. Convenient Payments Retirement payments will be made in monthly or quarterly instalments if you wish, provided each instalment is at least $10. Also, you may begin to draw your Retirement allowance before you are 65, in a reduced amount; or after you are 65 in an increased amount, depending on the age at which you decide to begin drawing. The exact amounts at varying ages are printed clearly in each Certificate. Most important of all, your Certificates cannot be cashed. So no one can steal the money from you; no one can borrow it from you; no one can induce you to invest it in some way by which it might be lost. YOU CANNOT POSSIBLY LOSE. Notes on This Plan of Retirement T HE plan outlined in the circular is so explained that every employee can easily understand it. He knows that by the payment of a few cents a week he will receive: 1. A Retirement payment of $10 a year for life as to each year he is a member of the Plan. 2. If he dies before retirement, his money back plus the Employer’s contribu¬ tion on Certificates purchased jointly. This amounts to his own contribution with interest at about 4 per cent. 3. If he lives to retirement age, a guarantee of at least 10 Retirement payments. Past Service Now supposing he is getting along in years. He has already given, say twenty years to the service. When he came to work there was no Pension Plan for him to join. He is now fifty years old. To put aside one Ten Dollar Retirement Certifi¬ cate every year for the fifteen years, from now until he is sixty-five, would give him only $150 a year. Perhaps he is already fifty-five or fifty-six, when his case would be still worse. What is to be done about past service? The simple, direct thing to do about it is for the employer to buy for him a modified Retirement Certificate, with no refund or guarantee in case of death, amounting to $10 for each year from the time he came to work until the present day. Thus, for twenty years of past service he would have a Retirement Certificate call¬ ing for the payment of a Retirement allowance of Two Hundred Dollars a year, beginning on his sixty-fifth birthday and continuing so long as he lives. This, added to the $150 or more which he will help buy for himself in the next fifteen years would give him a total of $350 a year as a Pension, beginning at age 65, which is about the average Industrial Pension. Retirement Certificates as to past service are given only to those employees who join the plan and agree to help pay for their own retirement as to future service. Thus used, they serve the double purpose of enabling the employer to drop his older and less efficient people as time goes on, and as an inducement to present employees to join the fund. For there must be an inducement. Otherwise the younger will not join because of their heedlessness as to the future, and the older partly because of the expense and partly because of the inadequacy of such pensions as they could, within their few remaining years of work, build up for themselves. Pensions provided for now for service in the past, as here outlined, take care of what is known as accrued liability. This is the liability that every employer who has a Pension Plan, is building up, even though he is not providing for its eventual cost by setting up a reserve year by year. Whether or not he recognizes it by an entry on his books, the liability exists just the same, and he will become unpleasantly aware of it in years to come. Employers who face this situation squarely to-day, rather than leave it to future years or future managements, will prevent post¬ poned and aggravated difficulties. In many cases Pension Funds are set up by employers, out of which to provide future pension payments. In most instances such funds consist of arbitrary amounts, set aside without actuarial guidance and bear little relation to the actual future liability, which management recognizes as existing, but rarely endeavors definitely to determine. Indeed, under the rapidly changing industrial conditions of the time, even the most carefully prepared estimates of future liability must be constantly rechecked and corrected, and it is only by stepping beyond the range of such industrial variants as labor turnover and business cycles, and dealing with the individual strictly as an individual rather than as a part of a labor force, that the Metro¬ politan Life Insurance Company has been able definitely to define and limit both present cost and future liability. No plan has yet been devised which more simply or more soundly takes care of the accrued liability than the purchase for employees of Metropolitan Pension Bonds (Retirement Certificates) to cover Pensions for past service. The offering of such Certificates as to past service to all those who join the contributory Pension Plan makes the latter doubly inviting, and is a very great help in stimulating the general spirit of loyalty and good will which should accom¬ pany the inauguration of a Pension Plan. So much for Past Service. The cost may be dealt with in any one of several ways; or past service may be put wholly aside. Cost of Pensions as to Current and Future Service Bearing in mind the fact that each year the member receives a Retirement Certificate, representing that year’s portion of his Retirement allowance (which may be for $10 flat, or a percentage of a year’s pay, or for any other pre-determined sum), and that one of these Certificates is delivered and paid for each year, it is clear that, because of the decreasing number of years during which the amount paid in may accumulate interest, the cost of each Certificate must gradually in¬ crease as the age of the purchaser approaches 65. It does so increase, as a matter of fact, by approximately 4 per cent, each year; in other words, a certain sum, paid to the Insurance Company this year, increases because of the interest it earns and by benefit of survivorship by about 4 per cent.; so an equivalent payment next year must be about 4 per cent, greater. Suppose $10 is selected as the yearly unit of Pension as shown in the sample plan; that is, that the employee who began work at 24, and who worked for forty-one years, would, when he was 65, have built up for himself an annual income for life of forty-one times Ten Dollars or $410. The first Certificate would be purchased when he had completed one year and was 25 years of age, therefore the first year’s cost would be $23.20 (or say 46 cents a week), to be paid wholly (save the odd cents) by the employee. The second year’s cost (age 26) would be $24.18, of which $1.18 would be paid by the employer, leaving the employee’s payment at 46 cents a week. The third year’s cost would be $25.22, of which the employer would pay $2.22 and so on. So far as each employee is concerned, this is clearly the logical procedure. The employee saves a given amount—never very much—each year. The employer’s payment, nothing at all the first year, and very slight for succeeding years, becomes really substantial only after a long time, when he is amply recompensed by the long service of the employee. In the following diagram the cost as to any individual each year is represented by a bar—the shaded portion only showing the employer’s payments—the plain portion those of the employee. Why the Employer’s Payment on a Group of Employees Does Not Continually Increase While the cost for each employee goes up a little each year, the cost for a group of employees does not advance in anything like the same proportion, and indeed may not advance at all, because the slight extra payment (about 4 per cent, on the total consideration) is apt to be largely, if not wholly, over-balanced by death resignations and the arrival of the Pension age. The employer’s cost as to Pensions is in many ways comparable to the cost of Group Insurance. Here the individual rate goes up year by year, but, because of labor turnover, the rate for the group remains fairly constant. If the Pension Plan applies to all employees, the tendency of the cost to increase would be held down in like manner; but it is to be borne in mind that the turnover among employees of say five years' standing or more is substantially less than among those of say three months’ standing, so if the plan be restricted to employees of long standing, this factor cannot be surely counted on. [7 How the Plan is Carried on A Group Pension Contract is issued to the employer by the Metropolitan Life Insurance Company under which he may purchase Pension Bonds or Retirement Certificates, with or without death benefit, for any number of employees in any amount. This is a participating Contract, under which any surplus earnings will be returned to the employer as dividends. After the general announcement to employees, and the receipt of the cards of enrollment, the first step is the delivery to those who join of Pension Bonds covering Past Service. These may cover all past services; or the accrued liability may be spread over a number of years. This distribution should be made an occasion of enthusiasm among the employees, and may well result in more enrollments. A list of enrollments is sent to the Metropolitan Life Insurance Company, and each week deductions are made from the pay envelopes according to the table of costs. It is to be noted that these deductions run for 50 weeks, and are calculated to the nearest even half dollar under the cost of the Refunding Pension Bond for the age one year after entry when the first bond is purchased. The amount of the weekly deduction does not change unless the amount of pension is changed and in any event the rate remains fixed at that of the employee’s age of entrance into the service. No account is kept with the individual employee, except when he is absent, or for some other reason the deduction is not made. Kach week a list is made up of these from whom collections have not been made. At the end of the membership year of each member, this list is consulted, and if the failures to deduct have exceeded two in the 52 weeks, the balance due is collected at the time of the delivery of Retirement Certificates for the year. Thus, there is practically no individual accounting. Monthly checks are sent to the Insurance Company each month for one- twelfth of the total cost of the Refunding Pension Bonds ordered for the year, and, as interest at the rate of 3| per cent, is allowed on these payments, the adjusted interest will in the main make up the odd cents on the cost of each Refunding Pension Bond at its delivery, when the balance is settled. When an employee member leaves the service, his name is reported to the Insurance Company, which cancels the order as to his Refunding Pension Bond, and credits the employer with the payments made on his account; the employer, in turn, returning to the employee the amount of his contribution, and to its own treas¬ ury the amount of its contribution; the transaction is thus closed by all parties to it. Discontinuance or Suspension Not the least advantage of the Metropolitan Pension System is that it may be suspended, during a period of depression, for one or more years without in any de¬ gree affecting its safety or simplicity. More important still, no industrial depres¬ sion or even the entire discontinuance of the plan can in any way affect the prompt and regular payment of Retirement allowances as to Certificates already issued when and as their owners reach the age at which their pensions become payable. The sole effect of suspension or discontinuance would be a reduction of the total number of Retirement Certificates which would have been issued to any employee before the Pension age, and therefore of the total amount of the final pension. 8 ] Metropolitan Pension Bonds or Retirement Certificates A Group Pension Contract is issued to an employer under which he may pur¬ chase Retirement Certificates for any number of Employees in varying amounts. The Retirement Certificates are the direct obligations of the Metropolitan Life Insurance Company. There are two forms, the one called (Pension Bonds, or Retirement Certificates) providing a payment of any given sum each year to an employee as long as he lives, the first payment to be made on his 65th birthday; the other (called Refunding Pension Bonds, or Retirement Certificates with Death Benefit) in addition returns the purchase price in case of death before age 65 or beginning of annuity payments and guarantees payments for ten years, if the holder lives to age 65 or begins to draw the annuity. The amount of pensions payable at age 65 will be equivalent to the amount of all Certificates accumulated by any employee at that time. Each Certificate is a complete contract in itself, and the cost of any Certificate has no relation to the cost of another Certificate subsequently purchased. Group Pension Bond or Retirement Certificates Cost to provide pension of $10 per annum to commence at age 65. MALE FEMALE Age Nearest Birthday Cost Age Nearest Birthday Cost Age Nearest Birthday Cost Age Nearest Birthday Cost 15 $8.52 41 $26.09 15 $10.20 41 $32 12 16 8.88 42 27.30 16 10.65 42 33 62 17 9.26 43 28.58 17 11.13 43 35 18 18 9.66 44 29.92 18 11.62 44 36 83 . 19 10.08 46 31.35 19 12. 14 45 38 58 20 10.51 46 32.85 20 12.68 46 40 42 21 10.97 47 34.45 21 13.24 47 42 36 22 11.44 48 36. 14 22 13.84 48 44 41 23 11.94 49 37.94 23 14.47 49 46 59 24 12.46 50 39.85 24 14.89 60 48 90 25 13.00 51 41.89 25 15.80 61 51 36 26 13.56 52 44.07 26 16.50 52 53 98 27 14. 15 53 46.41 27 17.25 53 56 76 28 14.77 54 48.91 28 18.03 54 59 76 29 15.42 55 51.60 29 18.84 55 62 97 30 16. 10 56 54.51 30 19.69 56 66 43 31 16.80 57 57.64 31 20.59 57 70 16 32 17.55 58 61.05 32 21.52 58 74 19 33 18.32 59 64.74 33 22.49 59 78 38 34 19. 14 60 68.78 34 23.50 60 82 38 35 19.99 61 73.20 35 24.57 61 87 42 36 20.89 62 78.06 36 25.68 62 92 13 37 21.83 63 83.42 37 26.85 63 97 16 38 22.81 64 89.37 38 28.08 64 102 71 39 23.85 65 95.53 39 29.36 65 109 14 40 24.94 40 30.71 [9 Group Refunding Pension Bond or Retirement Certificates With Death Benefit Cost to provide a pension of $10 per year; payments beginning at age 65, guaranteed for ten years certain and continuing as long thereafter as Insured may live. Cost returned in full in the event of death prior to beginning of annuity payments. MALE FEMALE Age Nearest Birthday Cost Age Nearest Birthday Cost Age Nearest Birthday Cost Age Nearest Birthday Cost 15 $15 40 41 $45 83 15 $17.57 41 $51 19 16 16 03 42 47 88 16 18.29 42 53 39 17 16 70 43 50 04 17 19.05 43 55 68 18 17 40 44 52 27 18 19.83 44 58 07 19 18 12 45 54 61 19 20.65 45 60 57 20 18 88 46 57 07 20 21.50 46 63 18 21 19 67 47 59 62 21 22.39 47 65 89 22 20 50 48 62 30 22 23.32 48 68 72 23 21 36 49 65 09 23 24.29 49 71 67 24 22 26 60 68 00 24 25.30 60 74 73 25 23 20 51 71 02 25 26.36 51 77 91 26 24 18 62 74 16 26 27.46 52 81 21 27 25 22 53 77 41 27 28.62 53 84 63 28 26 28 54 80 78 28 29.81 54 88 17 29 27 42 55 84 24 29 31.06 55 91 82 30 28 59 56 87 82 30 32.37 66 95 59 31 29 83 67 91 49 31 33.73 57 99 47 32 31 11 58 95 24 32 35.15 68 103 44 33 32 47 59 99 06 33 36.65 59 107 50 34 33 87 60 102 94 34 38.20 60 111 62 35 35 36 61 106 86 35 39.81 61 115 81 36 36 91 62 110 80 36 41.51 62 120 06 37 38 53 63 114 87 37 43.28 63 124 32 38 40 23 64 118 63 38 45.13 64 128 56 39 42 01 66 122 48 39 47.06 65 132 80 40 43 88 40 49.08 10 ] k Let the Metropolitan Suggest A Plan r Primarily, a Pension or Retirement Plan should be fitted to the social, economic and labor conditions of the industry and of the individual employer in whose plant it is to be installed. A great advantage of the Metro¬ politan Plan of Individual Deferred Annuities is its flexibility and adaptability. It is suggested to employers having Pension Plans in operation or under consideration that they consult this Company . No expense or obligation is involved, and the benefit of such consultation, whether or not the Metropolitan System be adopted, may be substantial and immediate. For information and further particulars on Pensions, address METROPOLITAN LIFE INSURANCE COMPANY Any Branch Office, or Group Division 1 Madison Avenue, N. Y. C. [ii