Pritchett on Pensions

Affluent and comfortable alumni like to picture their oldtime pedagogs spending the twilight of their lives in doddering but happy security. Sometimes the alumni do something about it, giving big sums to their schools and colleges. But few have much scientific knowledge of pension systems. So that those interested in that phase of U. S. pedagogy might be better informed, last week President Henry Smith Pritchett issued Bulletin No. 25 of the Carnegie Foundation for the Advancement of Teaching. Its title: "The Social Philosophy of Pensions, with a Review of Existing Pension Systems for Professional Groups."

Of the philosophy of annuities for the superannuated, said forthright President Pritchett: "Society does not owe any man a pension. . . . Any pension under which the beneficiary is provided with an old age annuity without cost or participation by himself is, in the long run, demoralizing to any group of men, however high-minded. . . .

"The oldtime virtue of thrift, now looked upon as somewhat obsolete, is, in the final analysis, the basis of independence in old age for men on moderate fixed pay. ..."

A sound retirement pay plan for pedagogs, as submitted by President Pritchett includes: 1) an annual or monthly payment (10% of salary suggested) equally divided by the teacher and the institution; 2) each teacher to have "an individual contract clearly describing his obligations and his rights;" 3) an arrangement whereby the premiums are arranged on a sliding scale with his salary; 4) "On separation from the service before retirement the teacher must be able to take with him the entire equity accumulated under his retirement contract;" 5) Adequate machinery . . . " to invest and handle the accumulated funds."

Operated on a similar plan, the Teachers' Insurance and Annuity Association of America--started with $15,000,000 of Andrew Carnegie's money in 1918--reported, for 1929, that 3,660 pedagogs in 777 U. S., Canadian and Newfoundland institutions had taken out $32,788.197 worth of life insurance. Over $12,000,000 in annuity policies had been contracted for by 8,040 provident pundits.

Bulletin No. 25 discovered 22 States with pension systems for its teachers. Twenty-one cities did likewise. But no such provision is made in 21 other commonwealths. Considered as having pension systems among the best were Vermont and Wisconsin. Connecticut, Indiana. Massachusetts, Ohio were classed as good. Not so good were Maryland, New Jersey. New York, Pennsylvania.

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