1 11 inoi5. Univ.— Committee on university retirement system MateriaL.presented Je, 1940 i Return this book on or before the Latest Date stamped below. University of Illinois Library ■ L161— H41 c Material Relating to Retirement and D eath Benefit System University of Illinois Important Note: This material is preliminary and tentative, and is distributed solely for the purpose of discussion v/ithin the University faculty. Internal and Confidential I [HE Digitized by the Internet Archive in 2013 - http://archive.org/details/materialrelatingOOuniv REPORT OF COMMITTEE OK. UNIVERSITY RETIRr-MEi-IT SYSTEM Including Recommendations for Modification of Present System (Presented June 1940) In December 1937 a committee was appointed by the President to consider the question of the University's participation in a proposed state employees' annuity fund. The report of the committee on this matter was submitted to the University Council in May 1938 and the committee was asked to continue its stud- ies of the problem. During the succeeding year the committee secured the services of a consult- ing actuary, Mr. D. F, Campbell, who submitted a plan for a state-administered retirement system for the University and the teachers' colleges. This plan was submitted to the Council, to representative members of the faculty, and to the Board of Trustees in the spring of 1939. While the majority of expressions con- cerning the plan were favorable, many questions concerning it were raised and the plan was not submitted to the General Assembly for consideration at that time. U bill providing for a state employees' pension plan was again passed by the General Assembly at the session then in progress but was again vetoed. During the past year the committee has continued its studies of the problem. It has made a further review of previous material assembled, has had made for it and has considered a number of additional statistical studies, has conferred with representatives of several insurance companies, and has held a number of lengthy meetings. It now submits this report and new recommendation. Present Situation The Committee continues to be of the opinion, as expressed in its previous reports, that the present retirement plan is unsatisfactory . This plan has been somewhat improved during the past two years by the addition of provision for allowances in the event of total disability, and by being mentioned in the state appropriation bill for the University. The Committee feels, however, that the financial insecurity of the plan is still very real; furthermore, the provision for benefits to survivors of members of the staff are so inadequate as to con- stitute a genuine deficiency and inequity. The fact that the plan is a non- contributory one, that is, the total expense is paid by the University itself, makes it 'subject to criticism since practically all pension plans are on a joint contributory basis. The steadily increasing cost of the plan and the uncertainty as to what that ultimate cost will be, are also important factors. Since our previous report, several other institutions comparable to the Uni- versity of Illinois have adopted a contractual plan on a joint contributory basis. These Institutions are Minnesota, Purdue, Indiana, and Ohio. Illinois is now one of the few major state institutions whose retirement is not on s uch a basis. Congress has also passed a bill providing that payments for contributions to a contributory, funded retirement plan may be charged against federal funds. No charge against such funds may be made for the plan now being followed by the Uni- versity. The Committee has also made further studies of the plan submitted last year by Mr. D. F. Campbell. The Committee has reached the conclusion that it is not fully satisfactory for our purposes. '/Vhlle it has many desirable features and would be an Improvement over our present situation, it is exceedingly complex, requires special legislation, involves administration by an outside body not under the control of the Board of Trustees, involves the management of a large ' -2- fund, and involves a varying plan of contribution, changing 'with each change of salary. Under some circumstances the conditions of contribution required of the faculty would be such as to make them prohibitive and thus cause the University serious embarrassment. New Plan Proposed After considering all of these problems, the Committee has concluded that the University should endeavor to work out a plan which could be arranged with some Insurance company and which would be under the full control of the Univer- sity. Such a plan, as nearly as we can determine, would not require special legislation and would only necessitate our securing a sufficient appropriation to meet the cost. The Committee now submits a tentative draft of a proposed retirement and death benefit plan to replace the plan now in effect. The principal points of the proposed plan in comparison with the present plan are as follows: (1) Participation would be required of all members of the staff except part- time assistants and persons on temporary and irregular employment, such as student employees and temporary laborers, except that members of the faculty below the rank of assistant professor or employees in the clerical and mechanical staffs would have the option of joining or not joining during the first five years of service. The present plan covers all persons in the r egular and con- tinuous employment of the University except that no death benefits are payable during the first year of service and a person must have been in service for 15 years to secure any retirement benefits. (2) An individual contract would be arranged with an insurance company for each person participating, which contract would be the property of the employee, with the provision that it could not be encumbered or surrendered while its holder remains in the employ of the University. The benefits of the present plan are included in the individual's contract with the University but all rights and equities cease at the termination of his service or at death. (3) Premiums on such contracts would be paid by the University as follows: (a) Deductions from salaries in the amount of b% for persons under 35 years of age, b^% for persons between 3 5 and 44 years of age, and 6% for persons of 45 years and over. No payments to be made after age 68. (b) Equivalent amount to be paid by the University in the case of each employee. Under the present plan no deductions are made from cash salary and no funds are accumulated for the payment of future benefits. (4) Normal retirement would be provided on September 1 following the 68th birthday anniversary, in which event the employee would receive such an annuity as is provided by the contract. For persons who are above 33 at the time the plan goes into effect, a supple- mentary benefit is proposed to the extent of \}-% of present salary for each year of service prior to effective date of the plan and subseouent to his attainment of 33 years of age. For persons who are 53 years and over at that time, an addi- tional \% of supplementary benefit of present salary is proposed. . -3- The provisions for supplementary benefits are included for the purpose of equalizing the benefits of the present plan and those of the proposed plan par- ticularly with relation to those persons who are approaching retirement, and also to make up for deficiencies between the accumulation in the form of a reserve under the new plan and 8 reasonable retiring allowance. Normal retirement is now provided at age 68 with an annuity of 50% of the average salary of the last five years with an ordinary maximum of $3,000. Under the proposed plan the annuity would be what amount the accumulated reserve plus supplementary benefits would provide. No guaranteed or maximum figures are stipu- lated in the proposed plan but the results in the great majority of cases should be at least as favorable as the present plan. (5) If the employee leaves the service of the University for any reason the contract is his own and would be retained by him. All rights to supplementary benefits, however, are forfeited, All rights or equities of the present system terminate if an Individual leaves the service of the University. (6) Retirement prior to age 68 is proposed in the event of ill health or disability, or after 25 years of service, for other reasons satisfactory to the Board of Trustees, with a suitable annuity somewhat below that which would be possible in case of normal retirement. This annuity is provided in part by the contract and in part by an additional supplementary benefit. Retirement on a reduced annuity is possible for disability, but otherwise retirement is not possible prior to age 65. L death benefit is proposed which will take account of the accumulation under the retirement annuity contract. The minimum amount to be paid by the University in every case would be $1,000. That amount would be increased to such an amount that would provide, with the annuity contract accumulation, a death benefit of at least one year's sal ry and not over $5,000. If the retirement contract has o value greater than one year's salary or $5,000 then the death benefit paid by the University would be pi, 000. Present death benefits are based on length of service and amount of salary, the minimum being 10$ of one year's salary and the maximum being $3,000. It is suggested that a representative committee of five persons be appointed by the President to (1) administer the rules of the plan including an interpre- tation of individual eases subject to the right of appeal to the Board of Trus- tees; (2) recommend changes in the plan if such changes in its judgment become desirable. Suggested Method of Introducing Plan The Committee has made preliminary estimates on the cost of such a plan if put into effect. The outside annual figure of premium paid by the University would be $300,000 of which approximately $25,000 can be charged to federal and other special funds, leaving a figure of $275,000 to be charged against the gen- eral budget. Members of the staff who participate would pay in the aggregate an equivalent amount, the approximate average being 5%% of salary or wage. -4- If this addition were made at once to our present retiring allowance budget of $175,000 per yecr, it would probably make the adoption of the new plan prohibi- tive. Consequently the Committee proposes that the new plan be introduced as of September 1, 1941, but that the payments to be made by the University be picked up gradually. The suggested amount for the coming hi ennium is $100,000 per year. This would mean that the maximum cost would not be reached as soon as would be done if the entire added premium cost were taken up at once, and it would also mean that the stabilized level would not be reached as soon. It would be neces- sary for the University to stand ready to make up the difference of the premiums not paid by it whenever any employee retires or leav-s the service of the Univer- sity or in the case of the death of an employee before retirement. L memorandum is enclosed which gives an outline of the proposed method of adoption of the plan. It is the Judgment of the Committee that the University should look forward to putting such a new plan into effect as of September 1, 1941. This done, the Committee believes there should be included in the biennial budget for 1941-43 the added sum of $100,000 per year over and above retiring allowances for retired persons as of July 1, 1941 to be applied in the manner above described. This would mean that in succeeding biennial periods for approximately the next ten years an average of about $25,000 a year should be added until a total of about $475,000 per year is reached, which, unless there is an abnormal change in the size of the staff or the scale of salaries, probably could be continued for a number of years without material change. Respectfully submitted, UNIVERSITY RETIREMENT COMMITTEE A. R. Crathorne Frank Cr. Dickinson G. '•!. Goble A. J. Harno G. P. Tuttle Enclosures: Lloyd Morey, Chairman 1. Tentative draft of proposed retirement and death benefit plan. 2. Suggested method of adoption of pro- posed retirement and death benefit plan. 3. Disadvantages of present retiring system. 4. Advantages of proposed retirement system. 5. Advantages of proposed retirement plan over Campbell plan. June 18, 1940 ■ -5-. TEIITATIVE DR^FT OF PROPOf ^D RE TIAE^ENT AIJD DEATH DEliEFTT PL^N I . A Retirement plan is hereby established which snail apply to employees of the University of Illinois as follows : A. Eligibility - The following employees of the University shall be eligible to participate in the plan: (1) All members of the educational staff with the rank of instructor or with higher rank and all full time assistants. (2) All members of the administrative staff. (3) All members of the secretarial, clerical, mechanical and labor staffs who are on permanent and continuous employment. Members of the faculty employed in successive academic years shall be lie Id to be in continuous employment even though their cash compensation is paid in or for less than 12 months of any aca- demic year. B. Participation - All employees eligible to participate in the plan must do so with the following exceptions: During the first 5 years of service after becoming eligible to participate in the plan, an employee may be exempt from such partici- pation on his request if he is a member of the educational staff with rank below assistant professor, or if he is a member of either the secretarial, clerical, mechanical, or labor staff. For employees eligible to enter under the optional provision on the date the plan ■jjoes into effect, any past service during which the plan would have been optional had it been in effect will be included in the 5 years. Participation in the plan is required after 5 years of eligibility. If an employee elects to participate in the plan, while partici- pation is optional, the right of option is forfeited permanently. II. Retirement contracts - The University will arrange a retirement contract with an insurance company for each participant in the plan. This contract will provide for certain payments of premiums as herein stated, to be remitted by the University, and for certain annuities hereinafter described. Each contract shall be the property of the employee subject to the condition that it cannot be encumbered or surrendered while its holder remains in the employment of the University. III. Premiums on contracts - Payments shall be made on this contract as follows: A. Paid by the employee through monthly deductions from his sal- ary by the University and remitted by it to the insurance company. (1) 5% of his annual salary if he is under age 35. 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The contracts will provide the option of annui- ty payments to a survivor after the death of a staff member in which case the pay- ments to the staff member during his life will be less than those shown in this table. Annuities stated below assume no dividends and are therefore lower than those which probably will prevail. 1 2 3 4 5 6 7 8 9 Age Years Years Total Years Total Years Total Grand September to at at at at at at Total 1, 1941 Age 68 10$ 10% 11$ 11$ 12$ 12$ {%) 20 48 15 86.617 10 4.542 23 2.653 93.812 21 47 14 83.267 10 4.542 23 2.653 90.462 22 46 13 80.014 10 4.542 23 2.653 87.209 23 45 12 76.856 10 4.542 23 2.653 84.051 24 44 11 73.790 10 4.542 23 2.653 80.985 25 43 10 70.814 10 4.542 23 2.653 78,009 26 42 9 67.924 10 4.542 23 2.653 75.119 27 41 8 65.118 10 4.542 23 2.653 72.313 28 40 7 62.394 10 4.542 23 2.653 69.589 29 39 6 59.749 10 4.542 23 2.653 56.944 30 38 5 57.182 10 4.542 23 2.653 64.377 31 37 4 54.689 10 4.542 23 . 2.653 61.884 32 36 3 52.269 10 4.542 23 2.653 59.464 33 35 2 49.919 10 4.542 23 2.653 57.114 34 34 1 47.638 10 4.542 23 2.653 54.833 35 33 10 49.966 23 2.653 52.619 36 32 9 47.599 23 2.653 50.252 37 31 8 45.304 23 2.653 47.957 38 30 7 43.074 23 2.653 45.727 39 29 6 40.909 23 2.653 43.562 40 28 5 38.807 23 2.653 41.460 41 27 4 36.766 23 2.653 39.419 42 26 3 34.786 23 2.653 37.439 43 25 2 32.863 23 2.653 35.516 44 24 1 30.996 23 2.653 33.649 45 23 23 31.836 31.836 46 22 22 29.915 29.915 47 21 21 28.051 28.051 48 20 20 26.242 26.242 49 19 19 24.484 24.484 50 18 18 22.778 22.778 51 17 17 21.122 21,122 52 16 16 19.514 19.514 53 15 15 17.953 17.953 54 14 14 16.438 16.438 55 13 13 14.965 14.965 56 12 12 13.537 13.537 57 11 11 12.173 12.173 58 10 10 10.856 10.856 59 9 9 9.578 9.578 60 8 8 8.338 3 • 338 61 7 7 7.133 7.133 62 6 6 5.963 5.963 63 5 5 4.837 4.837 64 4 4 3.736 3.736 65 3 3 2.665 2.665 66 2 2 1.626 1.626 67 1 1 .617 .617 July 6,19 40. I ■ -15- Instructions for Use of Table la: Find age September 1, 1941 in Column 1. On same line in Column 9 read percentage of September 1, 1941 salary to be paid as life annuity starting at age 68. This table does not include future salary increases. Such adjustments will increase the contributions but also will increase the annuity. -16- PHOPOSSD RETIREMENT PLAN Table II, Table of Supplementary Benefits for Persons 5Bio Have Been Members of the University of Illinois Staff since age 33. 1 2 3 4 5 6 7 8 9 Age Basic No. of Total Supple- Number Total Grand Effec- Rate % Years Basic mentary of Supple- Total tive (See Effec- Rate % Rate % Years mentary (Col'. 4 Total Note 1) tive (See (See Effec- Rate % plus (See Note 1) Note 2) tive (See N.2) Col. 7) Note 3) 34 1.5 1 1.5 i i 1.5 1.5 35 1.5 2 3.0 i i 3.0 3.0 36 1.5 3 4.5 i 4.5 4.5 37 1*5 4 6.0 6.0 6.0 "38 1.5 5 7.5 7.5 7.5 39 1.5 6 9.0 9.0 9.0 40 1.5 7 10.5 10.5 10.5 41 1.5 8 12.0 12.0 12.0 42 1.5 9 13,5 13.5 13.5 43 1.5 10 15.0 © > © © 15.0 15.0 44 1.5 11 16.5 -P > •H > 16.5 16.5 45 1.5 12 18.0 O 05 ■P U •P O 18.0 18.0 46 1.5 13 19.5 © © 5* 19.5 19.5 47 1.5 14 21.0 XA f*1 21.0 21.0 48 1.5 15 22.5 -P O P •P 22.5 22.5 49 1.5 16 24.0 ^ o S3 o 24. C 24.0 50 1.5 17 25.5 25.5 25.5 51 1.5 18 27.0 27.0 27.0 52 1.5 19 28.5 28.5 23.5 _53 1.5 20 30.0 30.0 30.0 54 1.5 21 31.5 .5 1 .5 32.0 32.0 55 1.5 22 33.0 .5 2 1.0 34.0 34.0 56 1.5 23 34.5 .5 3 1.5 36.0 36.0 57 1.5 24 33.0 .5 4 2.0 30. 38.0 58 1.5 25 37.5 .5 5 2.5 40.0 40.0 — 59 1.5 26 39.0 .5 6 3.0 42.0 42.0 60 1.5 27 40.5 .5 7 3.5 44.0 44.0 61 1.5 28 42.0 .5 e 4.0 46.0 46.0 62 1.5 29 43.5 .5 9 4.5 48.0 48.0 63 1.5 30 45.0 .5 10 5.0 50.0 50.0 64 1.5 31 4S.5 .5 11 5.5 52.0 50.0 65 1.5 32 48.0 .5 12 6.0 54.0 50.0 66 1.5 33 49.5 .5 13 6.5 56.0 50.0 67 1.5 34 51.0 .5 14 7.0 58.0 51.0 68 1.5 35 52^5 .5 15. 7.5 60.0 52.5 Note 1: ;, A supplenu jntary benefit which shall be a life annuity equal to \\% annual salary the employee is receiving on the date the plan goes into effect (September 1, 1941) for each year of service prior to this date and subseouent to his attainment of age 33. " Note 2 : "A further supplementary benefit of h% of the annual salary the employee is receiving on the date the plan goes into effect (September 1, 1941) for each year of service prior to this date and subsequent to his attainment of age 53." Note 3 : "The supplementary benefit of ^t of annual salary provided (See Note 2) shall in no case result in a total supplementary benefit of more than 50> of the salary on which It is based." This restriction is effective in the 31st, 32nd, and 33rd years of service (after age 33) only. Note that the \k% may raise the effective total above the 50$ rate. There is no limit on the lf$ rate. July 6,1940. » ■ ■ -17- Instructions for Use of Table II: This table is for use of tnosfli persons who have been members of the staff contin- uously since age 33. Itead age on September 1, 1941 in Column 1. Find effective rate on some line in Column 9. Multiply salary on September 1, 1941 by effective rate and the result is the yearly payment for life under the supplementary bene- fits provision. '. TABLE I la Table of Supplementary benefits For Persons '/'/ho Became Members of the University of Illinois Staff Since Age 33 -16- PROPOSED RETIREMENT PLAN T^BLE lib Table of Supplementary Benefits 1 2 3 4 Years Number of of Total Service Basic Years Basic iifter Rate Effec- Rate Age 33 % tive % 1 1.5 1 1.5 2 1.5 2 3.0 3 1.5 3 4.5 4 1.5 4 3.0 5 1.5 5 7.5 6 1.5 6 9.0 7 1.5 7 10.5 8 1.5 8 12.0 9 1.5 9 13.5 10 1.5 10 15.0 11 1,5 11 16.5 12 1.5 12 18.0 13 1.5 13 19,5 14 1.5 14 21,0 15 1.5 15 22.5 16 1.5 16 24.0 17 1.5 17 25.5 18 1.5 18 27.0 19 1.5 19 23,5 20 1.5 20 30.0 21 1.5 21 31.5— 22 1.5 22 33.0 23 1.5 23 34.5 24 1.5 24 35.0 25 1.5 37.5 26 1.5 26 39.0 27 1,5 27 40,5 28 1.5 28 42.0 29 1.5 29 43.5 30 1.5 30 45.0 31 1.5 31 46.5 32 1.5 32 48.0 33 1.5 33 49.5 34 1.5 34 51.0 For Persons 'Vho Became Members of the University of Illinois Staff Since Age 53 1 2 3 4 Years Number Total of Supple- of Supple- Service mentary Years mentary After Rate Effec- Rate Age 53 % tive % 1 .5 1 .5 2 .5 2 1.0 3 .5 3 1.5 4 .5 4 2.0 5 .5 5 2.3 6 .5 6 3.0 7 .5 7 3.5 8 .5 8 4.0 9 .5 9 4.5 10 .5 10 5.0 11 .5 11 5.5 12 .5 12 6.0 13 .5 13 6.5 14 ♦ 5 14 7*0 16 .5 15 7.5^ Instructions for Use of Tables Ila and lib. These tables are for use of those persons who have joined the staff subsequent to age 33. Using Table Ila find number of years of service in Column 1. Read basic rate on same line in Column 4. Using Table lib find number of years of service subsequent to age 53 in Column 1. Read supplementary rate on same line in Column Add basic rate and supplementary rate and multiply salary on September 1, 1941 by the total. The result is the yearly payment for life under the supplementary benefits provision. Attention is called to Note 3 on Table II. July 6,1940. • ■ i . ' » i ■ : «. * . ■ • * ■ ; i > • » ' . : * ' ■ • r • • ' ". • ! -19- Proposed Retirement Plan Illustrative Case #1 Assumptions Male, Age 40, Salary $4000. Member of staff since age 33. Step 1 - Computation of annuity under proposed plan. Use Table la. Find age 40 in column 1. On same line read 41.4601 in column 9. Step 2 - Computation of supplementary benefits under proposed plan. Use Table II. Find age 40 in column 1. On same line read 10.5% in column 9. Step 3 - Computation of total payments under proposed plan. Add 41.460% and 10.5% to get 51.96$. 51.96f? of $4000 is $2078.40. Yearly payment for life of staff member. Note These figures are based on a salary of $4000 with no Increases assumed. Also they are annuities which do not include dividends and are therefore lower than those which probably will prevail. Illustrative Case #2 Assumptions Male, Age 40, Salary $4000. Member of staff five years prior to September 1, 1941. Step 1 - Computation of annuity under proposed plan. Use Table la. Find age 40 in column 1, On same line read 41.460% in column 9. Step 2 - Computation of supplementary benefits under proposed plan, Use Table II . Find 5 (years of service since age 33) in column 1. On same line read 7.5% in column 4. Step 3 - Computation of total payment under proposed plan. Add 41.460% and 7.5% to get 48.96%. 48.96% of $4000 salary is $1958.40. Yearly payment for life of staff member. Note These figures are based on a salary of $4000 with no increases assumed. Also they a re annuities which do not Include dividends and are therefore lower than those which probably will prevail. July 6, 1940. -SO- Proposed Retirement Plan Illustrative Cases Using Assumed Facts Case 1 Facts Male, Salary September 1, 1941, $5,000 Age 50. 30 years past service. No change in salary after plan goes into effect. Annuity Age 50. 22.778$ x $5,000 is $1138.90 Supplementary Benefits 50 - 33 is 27 years at l^% which is 40.5$ 40.5$ x $5,000 is $2,025 Total Annuity $1,138.90 Supplementary Benefits 2,025.00 Total Yearly Payment $3,163.90 Case 2 Facts Male. Salary September 1, 1941, $5,000 Age 50, 10 years past service. No change in salary after plan goes into effect. Annuity Age 50. 22.778$ x $5,000 is $1138.90 Supplementary Benefits 10 years at 1^ 3 s 15% 15$ x $5000 is $750 Total Annuity $1138.90 Supplementary Benefits 750.00 Total Yearly Payment $1888.90 -21- Case 3 Facts Mule. Sal ry September 1, 1941, $3600. Age 45. 15 years past service. Salary increases as follows: Age 48 50 55 Amount $300 200 400 Annuity Age 45 ii 48 u 50 ii 55 31.836% x $3600 is $1146.10 26.242% x 300 is 78.73 22.778% x 200 is 45.56 14.965% x 400 is 59.36 Total $1330.25 Supplementary Benefits 45 - 33 is 12 years at ll% which is 18& 18% x $3600 is $648 Total Annuity Supplementary Benefits Total Yearly Payment $1330.25 648.00 $1978.25 Case 4 Facts Male. Salary September 1, 1941 $3600 Age 45. 5 years past service Salary increases as follows: Age 48 50 55 Amount $300 200 400 Annuity Age 45 ii 48 n 50 i! 55 31.836% x $3600 is $1146.10 26.242% x 300 is 78.73 22.778% x 200 is 45.56 14.965% x 400 is 59.86 Total $1330.25 Supplementary Benefits 5 years at l|-% is 7f% %% x $3600 is $270 Total Annuity Supplementary Benefits Total Yearly payment ^1330.25 270.00 $1600.25 Case 5 Facts Male. Salary September 1, 1941, $1800 Age 25. Salary Increases as follows: Amount 28 |300 30 200 33 500 37 300 40 400 45 500 50 500 Annuity Age 25 78. 009!? x $1800 is $1404 ,16 n 28 69. 589$ X 300 is 208 ,77 n 30 34. 377% X 200 is 128 75 ii 33 57. 114$ X 500 is 285 .57 n 37 47. 957$ X 300 is 143, 87 n 40 41. 460$ 400 is 165 .84 il 45 31. 836fc X 500 is 159 ,10 II 50 22. 778$ x Total 500 is 113 .89 $2610. 03 Total Annuity $2610. .03 Sup] olementary Benefit il Yearly Payment ;s None Tot: $2610, 03 Case 6 Facts Female. Clerical position, Salary September 1, 1941, $1200. Age 20. Salary increases as follows: Age 22 $! 24 i 26 i Annuity Age 20 79.752$ x $1200 is $957.02 ii 22 74.138$ x 200 is 148.28 ii 24 68.847$ x 200 is 137.69 ii 26 63.860$ x 200 is Total 127.72 51370.71 Amount 200 200 Total Annuity Supplementary Benefit; Total Yearly Payment $1370.71 None $1370.71 . -23- Case 7 Facts Male. Salary September 1, 1941, $6,000. Age 60. 30 years past service. No change in salary after plan goes into effect. Annuity Age 60. 8.338$ x $6,000 is $500.28 Supplementary Benefits 60 - 33 is 27 years at l|$ which is 40.5$ 60 - 53 is 7 years at l±% which is Z.b% Total 44. 0$ 44. 0# x $6,000 is $2640 Total Annuity § 500.28 Supplementary Benefits 2640.00 Total Yearly Payment $3140.28 , ■ 24 CO w T3 CD CO o fl ex aJ o rH b a, (X. o o « o m HI *». CO o o CO O <£> iO CO m ^f r-\ c- CM «* •> •* «* m •* 01 m #» m in CM CM rH CM 00 CNJ rH "* O PQ I CO CD S-. 3-. Jh to S3 2 o o o O o o O o o o. o O o o o o O o o 9 • • • • • • ■ • • O m o o o CJ> o m o 00 in c- m c- m r-i o c- o CT> co <£> CO t> CM CO rH o ■£> CM cm CM rH rH H CO ■'■&■ S3 crj rH C P S3 "• CO CO M O cd co it) C» S3 T3 03 CO o r \ a o CtJ u rH (U a. CI co -P •iH 43 =H h X» 0, Ok CD > £ •H £? 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