IRLF REPORT OF Illinois Pension Laws Commission 1916 [Printed by :nnhnrity of Ilie fltaio of Illinois.] GIFT OF Dr. H. P. Bates DOCUMENT* DEPT. REPORT F i Illinois *) Pension Laws Commission PART I. Investigations With Certain Comparative Studies PART II. Underlying Principles and Specific Recommen- dations for a Revised Pension Plan PART I. [Printed by authority of the State of Illinois.] SCHNEPP & BARNES, STATE PRINTERS SPRINGFIELD, ILL. 1917. "in 111. CONTENTS. PAGE. Act providing for investigation of the pension laws of Illinois 1 Members of the Illinois Pension Laws Commission 2 Letter, transmitting report to Governor 3 CHAPTER I. INTRODUCTORY. Procedure 5 Duties imposed on Commission 5 Plan followed in investigation of operation of pension laws enacted in this State. 6 Plan followed in collection of information as to the present and probable future cost of maintaining funds 6 Present costs 7 Future costs 7 Plans followed in collection of information regarding the operation of pension laws in other states and countries 8 Plan followed in determining on recommendations 9 Existing pension laws in Illinois 10 Existing pension funds in Illinois 10 DETAILS OF PRESENT AND PROBABLE COST OF MAINTAINING THE CHIEF EXISTING PENSION FUND IN THIS STATE : The Police Fund of Chicago 11 The Firemen's Fund of Chicago 13 The Teachers' Fund of Chicago 15 The Municipal Employees' Fund of Chicago 17 The Illinois State Teachers' Pension and Retirement Fund 17 Extent of present and possible future pension legislation for public service employees in Illinois 18 CHAPTER II. THE OPERATION OF PENSION LAWS IN FOREIGN COUNTRIES. Purpose of the chapter ; 19 Comparison of pension conditions in the United States and Europe 1 Origin and growth of pension systems 20 Method of procedure 20 GREAT BRITAIN : Early experiments in civil service pensions 21 Laws in force from 1829 to 1857 21 Laws in force from 1859 to 1909 22 The Courtney Commission 1902 32 The present law Act of 1909 22 Pensions and gratuities to London metropolitan police 2 A pension as deferred pay 23 Contributory and noncontributory pensions in Great Britain 24 Cost of pensions in Great Britain as a percentage of corresponding salaries for active staff 24 Views held in the light of the experience of Great Britain 24 Comparison with pensions under Illinois Law 25 Teachers' pensions in Great Britain 26 Old age pension system of Great Britain and Ireland 27 GERMANY : Civil service pensions 29 Officers of the Empire 29 Officers of confederated states 30 Officers of cities 30 Comparison with conditions in England 30 Old age or industrial pensions 31 AUSTRO-HUNGARY : Civil service pensions 31 Enumeration of systems with methods of meeting the cost of pensions 32 FRANCE : System of pensions 32 NEW ZEALAND: Civil service pensions 33 The general law of 1907 33 Old age pensions t 34 General summary and conclusions 34 IV CONTENTS Continued. CHAPTER III. HISTORICAL SKETCH OF THE PENSION LAWS OF ILLINOIS. PAGE. General survey of the field 36 Sources of revenue 38 Refunds 39 Age and period of service 39 Pensions to survivors 40 CHAPTER IV. SURVEY OF PENSION LAWS IN FORCE IN ILLINOIS JANUARY, 1916, FOR PUBLIC SERVICE EMPLOYEES AND COMPARA- TIVE REFERENCES TO PROVISIONS IN PENSION LAWS IN OTHER STATES FOR SUCH EMPLOYEES. Pension funds for public service employees in the United States enumerated 43 Management 48 SOURCES OF REVENUE : Contributions from employees 49 Contributions from sources other than from salaries of employees 50 Combination of all sources 52 Limitation of payments by employees 52 Refunds 53 Conditions for pension service ; age 54 Conditions for pension disability 58 Amount of pension per year - 60 Provisions for discontinuance of pension 64 WIDOWS OF EMPLOYEES : Conditions for pension ; amount of pension per year ; provisions for dis- continuance of pension 64 NATURAL CHILD OR CHILDREN OF EMPLOYEES : Conditions for pension ; amount of pension per year ; provisions for discon- tinuance of pension 68 Other dependents of employees 70 Additional data 71 CHAPTER V. ACTUARIAL REPORT. General introduction 72 Necessity for separate report on each fund 73 Plan followed in determination of future costs 73 Data required for determination of future costs 73 General statement as to collection of data 74 Difficulties encountered in collecting data for investigation of funds 79 Plan of investigation of fund 79 Reason for table giving yearly valuation 80 Rate of interest assumed in Balance Sheet 80 The treatment in the Balance Sheet of Sources of revenue other than employees' contributions 80 Predicted costs may not coincide with actual costs 81 Growth of city not considered 81 THE POLICE FUND OF CHICAGO : The Benefits 81 Determination of rates of changes on which cost of pension depends 82 Active service table and salary and pension scales 87 Classes of pensioners, present and future 91 Widow pensioners 9 Children pensioners 91 All pensioners on pension roll, January 1, 1916, together with their depend- ents eligible for pension upon death of any such pensioner (Table XII) .... 96 All who enter service after January 1, 1916, together with their surviving dependents eligible for pension (Table XIV) 100 Totals of Tables XII, XIII and XIV 101 The Balance Sheet 103 Significant observations from table of rates 92 The pensioners who will come from future entrants into the active service . 93 Present and future costs 93 Comparative costs for disability pensioners and for service pensioners 93 Comparative costs for pensions to men and to their widows 93 Comparative costs for different classes of widows 94 Reserves for the future force 94 Percentage of salaries required from future entrants to provide pensions if the pensions were totally contributory 94 Reserves on the basis of experience 94 Valuation Balance Sheet 94 THE FIREMEN'S FUND OF CHICAGO : The Benefits 10 Determination of rates of changes on which costs of pensions depend 105 Active service table and salary and pension scales 108 Classes of pensioners, present and future 112 CONTENTS Continued. PAOK. Widow pensioners H Children pensioners 11 Dependent parents . .112 All pensioners on pension roll, January 1, 1916, together with their depend- ents eligible for pension upon death of any such pensioners (Table XXX) .113 All in active service, January 1, 1916, together with their surviving depend- ents eligible for pension (Table XXXI) 113 All who enter service after January 1, 1916, together with their surviving dependents eligible for pension (Table XXXII) 113 Totals of Tables XXX, XXXI and XXXII 11 The Balance Sheet . .11 Comparison of rates between firemen and policemen 11 The pensioners who will come from future entrants into the active service. .113 Present and future costs 114 Comparative costs for disability pensioners and for service pensioners 114 Comparative costs for different classes of widows Ill Percentage of salaries required from future entrants to provide pensions ir the pensions were totally contributory 114 Reserves on the basis of experience 115 Valuation Balance Sheet 115 THE TEACHERS' FUND OF CHICAGO: The Benefits 124 Data on males and females kept separate 124 Determination of rates of changes on which cost of pensions depends 125 Active service tables and salary scales 128 Contributions of teachers 130 Disability pension scale 131 Number and present pensions of pensioners 1" Classes of pensioners, present and future with tables 132 Hypothesis I and Hypothesis II 13 Refunds ** Present and future costs 134 Observations regarding the deficiency 14 THE MUNICIPAL EMPLOYEES' FUND OF CHICAGO : The Benefits 147 The sources of revenue 147 The plan adopted in investigating this fund 147 Actual experience table and table of rates 148 Active service table and salary scale 14 Assumptions with regard to ages of retirement 150 The present active service and future service 150 Present values of future contributions and benefits per participant on given assumptions as to ages at retirement 156 The Valuation Balance Sheet 156 Observations regarding the deficiencies 157 The percentage pensions will be of salaries when the system carries Its ultimate normal load 157 The active service classified both by ages and length of service 157 ILLINOIS STATE TEACHERS' PENSION AND RETIREMENT FUND: The Benefits 161 Data used in valuation 161 Assumptions made in calculations 162 Number of teachers under Fund 162 Classification of data with regard to age 1*52 Salary and length of service 162 Mortality rates 162 Predictions of cost at intervals of five years 12 Assumptions in regard to groups becoming eligible 163 Total contributions 164 Discussion of results 1C4 CHAPTER VI. STATISTICS RELATING TO THE FUNDS CREATED UNDER THE SEVERAL PUBLIC SERVICE PENSION ACTS OF THE STATE OF ILLINOIS. Chicago policemen. Tables LXII to LXXVT inclusive 169 Chicago firemen, Tables LXXVII to LXXXTI inclusive 173 Chicago teachers, Tables LXXXIII to LXXXVIII inclusive A 177 Municipal employees, Chicago, Tables LXXXTX to XCIII inclusive..* 182 Illinois State teachers, Tables XCIV to XCVII inclusive 186 Chicago park policemen, Tables XCVIII and XCIX 189 Chicago public school employees, Tables C to CII inclusive 191 House of Correction employees, Tables CHI and CIV 192 Chicago Public Library employees. Tables CV and CVI 193 Peoria Teachers, Tables CVII and CVIII 195 Peoria firemen. Table CIX 195 Sprinerfleld policemen. Table CX 196 Rockford firemen, Table CXI 196 Rockford policemen, Table CXII 196 VI CONTENTS Concluded. PAOB. Decatur firemen, Table CXIII 197 Aurora firemen, Table CXIV 197 Evanston firemen, Table CXV 198 Evanston policemen, Table CXVI 198 Moline and Champaign policemen, Table CXVII 198 Firemen and policemen, cities giving statements for one year, Table CXVIII...199 CHAPTER VII. STATISTICS SHOWING EXTENT OF PRESENT AND POS- SIBLE FUTURE PENSION LEGISLATION FOR PUBLIC SERVICE EM- PLOYEES IN CHICAGO. Number of public service employees in Illinois, Table CXIX 200 List of State departments showing number of employees under civil service in each, Table CXX 201 Number and salaries of civil service employees in State departments classified by years of service, Table CXXI 202 List of State institutions showing number of employees under civil service in each, Table CXXII 202 Number and salaries of civil service employees in State institutions, classified by years of service, Table CXXIII 203 APPENDIX A 205 APPENDIX B 241 ACT PROVIDING FOR INVESTIGATION OF THE PENSION LAWS OF ILLINOIS. The following act was passed by the Forty-ninth General Assem- bly of the State of Illinois, in its second special session, and approved by the Governor on January 24, 1916 : AN ACT providing for the creation of a commission to "be known as the Illinois Pension Laws Commission, and defining the powers and du- ties of such Commission, and repealing an act entitled, "An Act pro- viding for the creation of a commission to ~be known as the Illinois Pension Laws Commission, and defining the powers and duties of such Commission. 1 ' SECTION 1. Be it enacted by the People of the State of Illinois, repre- sented in the General Assembly: That there is hereby created a commis- sion to be known as the Illinois Pension Laws Commission, to consist of four members, one of whom shall be a representative of one of the public pension funds of this State heretofore created by law, the other three of whom shall be persons not interested in any of said pension funds and one of whom shall be a person versed in financial affairs, one a person of actu- arial experience, and one a person of legal attainments who shall be chairman of the commission, all of whom shall be appointed by the Governor to hold office as members of said commission uatil the conven- ing of the Fiftieth General Assembly, at which time said commission shall go out of existence. SEC. 2. It shall be the duty of said commission to investigate the oper- ation of all pension laws heretofore enacted in this State; to gather together all available information as to the present and probable future cost of maintaining the funds created by said laws and to collect all available in- formation in regard to the operation of similar laws in other states and countries. The commission shall report the results of ; its investigations, together with any recommendations it may see fit to make, to the Gover- nor not later than December 20, 1916, for transmission to the Fiftieth General Assembly. SEC. 3. The Commission shall have power to call upon the Insurance De- partment and other departments of this State for such assistance as it may require, and to employ one or more actuaries, a clerk, a stenographer, and such other assistance as it may require. It shall also have power to examine the books of all present public pension funds now existing by law, to compel the production of all books and papers belonging to any of said funds, to administer oaths and to take the testimony of all witnesses necessary for the purposes of this Act. SEC. 4. The expense of said commission, including a reasonable per diem to the members thereof not to exceed ten dollars per day for time actually spent in such investigation, shall be paid out of funds to be ap- propriated for that purpose upon vouchers drawn upon the Auditor of Public Accounts, properly itemized and certified to by the chairman of the commission and approved by the Governor. SEC. 5. That an Act entitled, "An Act providing for the creation of a commission to be known as the Illinois Pension Laws Commission, and defining the powers and duties of such commission," approved December 3, 1915, be and the same is hereby repealed. SEC. 6. Whereas, an emergency exists, therefore this Act shall be in full force and effect immediately after its passage and approval. MEMBERS OF THE ILLINOIS PENSION LAWS COMMISSION. On January 24, 1916, His Excellency, Governor Edward F. Dunne, appointed as members of the Illinois Pension Laws Commission : JOHN P. DILLON, of the Bureau of Streets, Chicago; MARCUS JACOBOWSKY, Vice President of the Fort Dearborn National Bank, Chicago; HENRY L. RIETZ, Professor of Mathematical Statistics of the Uni- versity of Illinois, Urbana ; and, as chairman of the commission: GEORGE E. HOOKER, Civic Secretary of the City Club of Chicago, Chicago. On February 10, 1916, the commission appointed as its secre- tary and actuary, DONALD F. CAMPBELL,* Professor of Mathematics, Armour Institute of Technology, Chicago. * Can be addressed, Room 640, 76 West Monroe Street, Chicago, Illinois. LETTER OF TRANSMITTAL. To His Excellency, Edward F. Dunne, Governor of the State of Illinois. The Illinois Pension Laws Commission, authorized by an Act of the Forty-ninth General Assembly, Second Special Session, approved January 24, 1916, to make certain investigations and recommendations concerning the pension laws of Illinois, submits herewith its report, consisting of Part I, Investigations with Certain Comparative Studies, and Part II, Underlying Principles and Specific Recommendations for a Revised Pension Plan. Respectfully submitted, GEORGE E. HOOKER, Chairman. JOHN P. DILLON. MARCUS JACOBOWSKY. HENRY L. RIETZ. Chicago, Illinois, December 20, 1916. CHAPTER I. INTRODUCTORY. Part I of this report gives briefly the history of pensions for public employees in other countries, reviews in detail the pension laws of Illinois, recites the terms of the leading pension laws of other states in this country, sets forth the results of a comprehensive actuarial investigation made by the Commission of the five chief public pension funds in Illinois, and gives important statistics concerning the other funds and the extent of possible pension legislation for public service employees in this State. Part II outlines briefly the scope and main features of the pension problem, states the essential principles and provisions which, in the opinion of the Commission, should constitute a normal or standard pension plan, and makes specific recommendations regarding changes that should be made by the Fiftieth General Assembly in some of the existing pension acts, pending further investigation and study of the pension problem. PROCEDURE. The commission held its first meeting on February 1, 1916, at the City Club of Chicago, on which occasion it elected Commissioner Rietz as acting secretary and proceeded to outline the work to be undertaken by it. Between this date and February 5, it held three meetings, and on February 5, an open meeting to which representa- tives of the 10 public pension funds in Chicago were invited. About 40 persons attended, all these funds being represented. At the sixth meeting held on February 10, Donald F. Campbell, Professor of Mathematics in Armour Institute of Technology, and an actuary of experience in insurance and pension matters, was appointed by the Commission as its secretary and actuary. On Feb- ruary 21, it engaged offices at 76 West Monroe Street, Chicago. To the date of this report, the commission has held 38 meetings, of from 3 to 10 hours each in duration. The Commission expects to hold 7 more meetings before its term of office expires, January 3, next. In collating the voluminous information required, the Com- mission has had in its employ most of the time since its appointment from 5 to 9 persons, besides 4 persons employed in operating the sorting machines for classifying data, and has also engaged the services, for brief periods of time, of 97 people in different parts of the State in collecting information concerning the State Teachers' Pension and Retirement Fund. DUTIES IMPOSED ON COMMISSION. The act imposed the following duties on the commission : 1. To investigate the operation of all pension laws heretofore enacted in this State. 6 2. To gather together all available information as to the present and probable future cost of maintaining the funds created by these laws. 3. To collect all available information in regard to the operation of similar laws in other states and countries. 4. To report the results of its investigations, together with any recommendations it may see fit to make. 1. PLAN FOLLOWED IN INVESTIGATION OF OPERATION OF PENSION LAWS ENACTED IN THIS STATE. In pursuance of the duty of investigating the operation of all pension laws heretofore enacted in this State, we engaged Frederick Green, Professor of Law in the University of Illinois, to prepare a tabular digest of pension legislation in this State, and to write a short historical sketch of such legislation. The tabular digest will be found in Appendix A, p. 206, and the historical sketch forms the subject matter of Chapter III, p. 36. At the same time Commissioner Dillon and Mr. Campbell were entrusted with the duty of preparing a tabular digest, somewhat more detailed in character, of all pension laws in force in Illinois January 1, 1916. This is presented in Appendix B, page 242. Having determined the scope of pension legislation in this State, we next directed a letter to the mayor of each city, town and village in the State, outside of Chicago, requesting information concerning the existence of pension funds in the corporation under his adminis- tration. After considerable correspondence, we were able to elicit replies from all the mayors thus addressed except those of Spring Valley and Mt. Carmel. Considering the population of these two cities, it is doubtful if any pension fund exists in either. Consequently, the information given with regard to the number of funds outside of Chicago, created under the several pension acts in force in this State (p. 168), is believed to be exact. 2. PLAN FOLLOWED IN COLLECTION OF INFORMATION AS TO THE PRESENT AND PROBABLE FUTURE COST OF MAINTAINING FUNDS. The determination of the present cost of maintaining a pension fund involves no difficulty when the books are properly kept, as it consists merely in making a transcript of the books as of the date on which the information is sought. The determination of the future cost of maintaining a pension fund, however, is an entirely different and much more intricate problem. For this determination, various rates at which certain events occur at the different ages must be derived, as, for instance, the rates at which persons eligible for service pension accept pensions, the rates of disability retirement on pension, the rates of withdrawal from service without pension, the rates of death while in active service, and the rates of death while on service pension or on disability pension. To determine these rates, informa- tion must be collected on all employees under any particular fund over a definite period, showing the number in service at the beginning of the period with ages as of dates of entrance, the number and ages at dates of withdrawal and causes of withdrawal of those not in service at the end of the period, and the ages of those persisting at the end of the period. Also, over a definite period, the number on pension at the beginning of the period, the number who retire on pension during the period with ages as of the dates of entrance, the number and ages at dates of withdrawal from pension of those who are not on pension at the end of the period, and the number and ages at the end of the period of those on the pension roll at the end of the period. In the cases where pensions are granted to widows and children, data differing from the above only in certain obvious details must be accumulated, and, in addition, tables must be prepared showing the ratios of the number of married men to the men of the whole group at the several ages, the average ages of the wives at the various ages of the husbands, and the ages and number of children in each family. This brief outline of a part of the problem of determining the future cost under a pension plan is given in order to emphasize the fact that predictions of future costs can be made only when there is a body of employees sufficient to justify an application of the law of averages. Moreover, if future predictions are to be based entirely on the experience of the fund itself, the fund must be in existence for a sufficient length of time to warrant the assumption that the rates of retirement on pension in the past will be those at which such retire- ments will occur in the future. Present Costs. Having determined the number of pension funds in existence in the State, we next endeavored to obtain information regarding the present cost of maintaining these funds. At the same time, in order to show the progress of the funds from year to year> we tried to obtain the desired information by years for a period of 10 years if the fund had been in operation for that length of time, or from date of incep- tion if it had been in operation for a shorter period. Having in mind the extent of our resources, we deemed it advisable to endeavor to obtain this information by correspondence with those in charge of the books of the several funds in those cases where the funds were located outside of Chicago, but in these efforts we were only partially successful. Although a number furnished us with the information sought as it appeared on their books, others gave us only the figures as of January 1, 1916, and failed to reply to any of our requests for further information; while in two instances, figures relating to the same fund furnished from two different sources were entirely unlike. We regret the fact that our investigations in this particular are not as complete as we should like them to be, but we feel that they are as complete as we could make them and, at the same time, give larger funds the consideration their size demanded. The information with regard to the funds located within the limits of the city of Chicago was collected by pur own employees under the supervision of our actuary, and is submitted with full confidence in its exactness. For results of present yearly costs, and of yearly costs of the past ten years, see Chapter VI. Future Costs. In each of three cases namely, the Policemen's Fund of Chicago, the Firemen's Fund of Chicago, and the Public School Teachers' Fund 8 of Chicago the funds were of sufficient size and in existence for a sufficient length of time to warrant our basing our predictions almost entirely on the experiences of the funds themselves. In each of the two others -namely, the funds for municipal Employees of Chicago, and the State Teachers' Pension and Retirement Fund the body of employees was of sufficient size to warrant 'our assuming that the law of averages would apply, but in neither case was there any pen- sion experience obtainable from the fund itself, nor were any tables available from the pension experience of like funds in other com- munities to apply to it ; while in the case of the fund last mentioned, there were no means of finding rates of retirement from service with- out pension and no such tables available. Consequently, in these cases we were driven to make assumptions that certain events would happen and base our calculations on these assumptions. For an explanation of the methods by which the data for the de- termination of future cost was collected, and for the actuarial report on such costs, see Chapter V. It may be stated here that the actual computations involved in Chapter V were made at the University of Illinois under the imme- diate supervision of Commissioner Rietz, and that in all problems in which a difference of opinion between actuaries could arise, he con- sulted with Mr. Campbell, so that responsibility for the correctness of the methods employed in the investigations recorded in that chapter rests jointly on these two men. The next fund to these in point of number of employees involved is the Public School Teachers' Fund of Peoria. In this case, we had in mind making an investigation similar to that made in the case of the State Teachers' Pension and Retirement Fund, and for this purpose addressed a circular letter, with a self-addressed, stamped envelope enclosed, to each public school teacher in Peoria, requesting the required information. Although this was followed later with another letter, repeating the request, so many of the teachers failed to reply that we would not be justified in making an estimate of future cost based on the number who furnished us with the desired data. In all the other funds in operation in this State, the body of employees involved was in each instance too small to warrant the assumption that the law of averages would apply. Consequently, no determination of future costs was attempted in any such case. PLAN FOLLOWED IN COLLECTION OF INFORMATION REGARDING THE OPERATION OF PENSION LAWS IN OTHER STATES AND COUNTRIES. Another duty imposed on the commission was that of collecting information in regard to the operation of pension laws in other states and countries. In Other States. The duty of collecting information in regard to the operation of pension laws in other states was entrusted to Mr. Campbell. This 9 investigation could consist only of the preparation of a list of pension laws in force in other states and a statement of the provisions of such laws. Since this list and a synopsis of the provisions of each law in force in 1913 had been prepared by the Massachusetts Commission on Pensions and published by this commission in 1914, and since copies of their report are available to all who choose to make a study of this phase of the subject, it was deemed advisable not to prepare such a synopsis, which would to a very great extent duplicate their work, but to have their synopsis brought down to date, and, in a survey of the provisions of the laws of this State, draw attention to the corre- sponding provisions in the laws of other states. This discussion forms the subject matter of Chapter IV. In Foreign Countries. The duty of collecting information in regard to the operation of pension laws in o'ther countries was entrusted to Commissioner Rietz. Upon investigation, we found that not all such data could be col- lecte'd in the time at our disposal; and indeed if it could be, much of it would be of doubtful value because of the insignificance of the funds or the lack of evidence to show that the plans were chosen wisely. We have, therefore, confined this part of our investigation to a study of a few of the. more widely known foreign pension systems, including therein those that presented the greatest evidence of having been built upon some scientific basis. This -discussion is the subject matter of Chapter II. 4. PLAN FOLLOWED IN DETERMINING ON RECOMMENDATIONS- The course pursued by the Commission in dealing with the actua- rial and statistical material gathered, with a view to recommendations, has been to take into account, the pension plans now in operation under the existing pension laws in the State ; the respects in which these harmonize with or differ from each other ; the important provi- sions in each affecting the sources and amounts of money contributed to the fund and provisions for payments therefrom; the features which appeared to be regarded as of special importance by the beneficiaries under these various plans ; and the features which, on the whole, ought to characterize what might be called a type plan for a public pension system. The comparison of the divergent features of the existing plans and of the equally divergent opinions of beneficiaries under them as to essentials, and the effort to weigh the value of these features, have involved the expenditure of a great deal of time on the part of the Commission in discussion of principles, policies and details. The results of these deliberations comprise Part II of the report and con- sist, first, in the general principles which, in the opinion of the Commission, should be adhered to as far as practicable in a sound pension system, and, second, in the detailed provisions which are deemed by the Commission to be adapted to carry out those principles. The conclusions of the Commission have been reached after confer- ence with the beneficiaries of the more important pension funds and with other persons interested in the subject. 10 SUMMARY OF FACTS FOUND. EXISTING PENSION LAWS IN ILLINOIS. We find that, beginning with the year 185#, Illinois has enacted some 106 original or amending acts for pensions. As a result of this legislation, on January 1, 1916, there were in force, or likely to become in force, 20 such acts. Of these, 19 involve the expenditure of public money, and one is for the purpose of regulating pensions and main- taining funds by assessment in the case of a private concern. Among them, the acts regulating "mothers' pensions" and "pen- sions for the blind," though popularly referred to as pension acts, are really not pension acts by their own terms, or, in fact, in the sense that under them payments are made as a reward for service rendered. In one case payment is granted merely as a relief of need with the view that it will be for the public good, and in the other as a part- compensation for a physical affliction. Of the remainder, the act for the relief of army and navy veterans merely creates machinery for dealing with such individuals different from that designed for other indigent persons ; and the Military Code and the Workmen's Compensation Act are designed primarily for the regulation of liability in the event of injury. After due delib- eration, we took the view that, for the reasons. stated, the five acts just mentioned did not come within the scope of the work outlined for us, and consequently, none of them has been given detailed consideration. The remaining acts are listed and their principal provisions given in outline in Appendix B. EXISTING PENSION FUNDS IN ILLINOIS. Among the acts listed in Appendix B, the fire insurance patrol- men's is a private act. The act of 1915, designed for policemen in the employ of boards of park commissioners, has not yet gone into effect, and the act designed for officers and employees of counties of more than 150,000 inhabitants has been declared invalid. Under the remain- ing twelve acts, there are in operation 35 funds. The cities in which they are located are listed below in groups according to the act under which the funds are operating : Act for firemen in cities of more than 5000 inhabitants: Chicago. Rockford. Elgin. Oak Park. Peoria. Joliet. Evanston. Sterling. East St. Louis. Decatur. Moline. Bloomington. Springfield. Aurora. Act for policemen in cities of more than 200,000 inhabitants: Chicago. Act for policemen in cities of 50,000 .or more inhabitants: Peoria. Springfield. Act for policemen in cities of not less than 9,000 nor more than 50,000 inhabitants: Rockford. Aurora. Evanston. Champaign. Joliet. Bloomington. Moline. Quincy. Decatur. Act of 1913, relatin'g to policemen in employ of boards of park commis- sioners: South Park, Chicago. West Park, Chicago. Lincoln Park, Chicago. 11 Act for public school teachers in cities of more than 100,000 inhabitants: Chicago. Act for employees of boards of education in cities of more than 100,000 inhabitants: Chicago. Act for employees of public library boards in cities of more than 100,000 inhabitants : Chicago. Act for employees of houses of correction in cities of more than 150,000 inhabitants: Chicago. Act for public school teachers in school districts of not less than 10,000 nor more than 100,000 inhabitants: Peoria. Act for public school teachers in all school districts of the State, except Chicago and Peoria: Springfield. DETAILS OF PRESENT AND PROBABLE COST OF MAIN- TAINING THE CHIEF EXISTING PENSION FUNDS IN THIS STATE. (A) THE POLICE FUND OF CHICAGO. /. Number of employees in service, January I, 1916, and amount contributed by employees to pension during 191$: On January 1, 1916, there were 4,830 employees contributing to the fund. The contribu- tions received by deductions from salaries amounted, in the year 1915, to $117,209.35. 2. Number of pensioners on January I, 1916, and amount dis- bursed in pension during 1915: On January 1, 1916, there were 1,257 pensioners on the rolls. Of these, 601 were men, 656 widows, and 22 families. The amount disbursed in pension during the year 1915, was $770,365.42. 5. Would require reserve for employees and pensioners on Jan- uary i, 1916, with their dependents, of over $30,600,000: If no addi- tions were made to the force vacancies caused by retirements on pension, deaths, resignations and dismissals not being filled a sum amounting to $30,602,879 on hand January 1, 1916, and invested to net 4 per cent compound interest, together with the amount on hand at that date ($120,847), and, in addition, the contributions of 2 per cent deducted from salaries of employees, would be sufficient to pay pensions provided for by this act as they mature each year. 4. Future payments to pensioners and employees of January I, 1916, with their dependents, over $73,000,000: The amounts payable in the future to employees and pensioners on the rolls, January 1, 1916, with their dependents no additions being made to the force will total $73,091,631. These payments will be distributed as follows: To pensioners on the roll, January 1, 1916 $12,035,741 To pensioners from among those in active service, January 1, 1916, and their dependents and the dependents of those on pension on that date 61,055,890 Total $73,091,631 2 PL 12 Amount contributed by employees and cash on hand : Amount contributed by deduction of 2 per cent of salaries $ 1,851 ,066 Cash on hand, January 1, 1916 120,847 Total $ 1,971,913 Balance to be provided from other sources 71,119,718 Total $73,091,631 5. Amounts and percentages of pension payments among the dif- ferent classes of pensioners: Of the total pension payments to pen- sioners and those in active service, January 1, 1916, with their dependents, the amounts and percentages of total amount, paid to the different classes of pensioners, will be as in the following table: Per cent of , Class of pensioners. Amount. $73,091,631. Service pensioners $29,558,085 40.4 Disability pensioners 933,285 1.3 Widows of Class A 2,761,548 3.8 Widows of Class B 31,335,157 42.9 Widows of Class C 8,020,352 11.0 Children 483,204 .6 Totals $73,091,631 100.0 6. Pension payments to pensioners and employees of January i, 1916, will extend for a period of 77 years: If pensions are paid only to those on pension and in active service January 1, 1916, that is, if the pension system should be discontinued so far as those entering service after January 1, 1916, are concerned, there would be pension- ers on the rolls for a period of 77 years, or until 1993. 7. // the force is maintained at its size of January I, 1916, $150,000,000 will be required in 77 years: If a force of 4,830 men is to be maintained, the amounts necessary to pay pensions under the present plan, in addition to the amounts that will be contributed by employees through deductions of 2 per cent of salaries, during the 77 years following January 1, 1916, will be as follows : Payments to those on pension roll or in active service, January 1, 1916, and their dependents $73,091,631 Payments to those who enter the service after January 1, 1916, and their dependents when they become pen- sioned 87,162,306 Total $160,253,937 Deductions of 2 per cent from salaries of those: In service, January 1, 1916 $ 1,852,071 Entrants after January 1, 1916 8,204,863 Total $10,056,934 Balance to be provided from other sources $150,197,003 13 8. Annual charge, varying from $770,365 in 1915 to $2,209,233 when the system is carrying its ultimate normal load: After a system becomes such that the number of employees remains constant, new entrants coming in only to fill vacancies caused by withdrawals and deaths, then there will come a time when pension payments will be the same from year to year. When this time comes, the system is said to be carrying its ultimate normal load. In this instance, if the body of employees remains constant at its size on January 1, 1916, of 4,830 men, the system will carry its ultimate normal load 77 years from January 1, 1916, or in the year 1993. It will, however, carry more than its normal load, namely $2,227,763, in 29 years or in 1945. 9. When the system is carrying its ultimate normal load, pension requirements will be 34.3 per cent of the pay roll: If the body of employees remains stationary at 4,830 men, pension payments, when the system is carrying its ultimate normal load, will be $912,375 to men and $1,296,858 to women and children. This makes a total of $2,209,233, which on the basis of present salaries will be 34.3 per cent of. the pay roll. At that time the percentages of payments to men, widows and children compared with total pension payments will be, to men, 41.3 per cent, and to widows and children, 58.7 per cent. (B) THE FIREMEN'S FUND OF CHICAGO. 1. Number of employees in service January i, 1916, and amount received for pension purposes during 1915: On January 1, 1916, there were 1,973 employees contributing to the fund. The receipts from all sources amounted, in the year 1915, to $226,196. 2. Number of pensioners on January i, 1916, and amount dis- bursed in pension during 1915: On January 1, 1916, there were 702 pensioners on the rolls. Of these, 247 were men, 291 widows, and 164 children. The amount disbursed in pension during the year 1915 was $339,911. 3. Would require reserve for employees and pensioners of Janu- ary i, 1916, with their dependents, of over $14,000,000: If no addi- tions were made to the force vacancies caused by retirements on pension, deaths, resignations and dismissals not being filled a sum amounting to $13,772,011 on hand January 1, 1916, and invested to net 4 per cent compound interest, together with the amount on hand at that date ($3,101), and in addition, the contributions of 1 per cent deducted from salaries of employees, would be sufficient to pay pen- sions provided for by this act as they mature each year. 4. Future payments to pensioners and employees of January i, 1916, with their dependents, over $33,400,000: The amounts payable in the future to employees and pensioners on the rolls, January 1, 1916, with their dependents no additions being made to the department- will total $33,416,548. These payments will be distributed as follows : To pensioners on the roll, January 1, 1916 $ 5,427,268 To pensioners from among those in active service, January 1, 1916, and their dependents and the dependents of those on pension on that date 27,989,280 Total $33,416,548 14 Amount contributed by employees and cash on hand : Amount contributed by deduction of 1 per cent of salaries $ 494,909 Cash on hand January 1, 1916 3,101 Total $ 498,010 Balance to be provided from other sources 32,918,538 Total $33,416,548 5. Amounts and percentages of pension payments among the dif- ferent classes of pensioners: Of the total pension payments to pensioners and those in active service January 1, 1916, with their dependents, the amounts and percentages of total amount, paid to the different classes of pensioners, will be as in the following table : Per cent of Class of pensioners. Amount. $33,416,548. Service pensioners $14,825,010 44.3 Disability pensioners 2,055,511 6.2 Widows'of Class A 2,976,168 8.9 Widows of Class B 9,679,437 29.0 Widows of Class C 3,217,801 9.6 Children 662,621 2.0 $33,416,548 100.0 6. Pension payments to pensioners and employees of January I, 1916, will extend for a period of 81 years: If pensions are paid only to those on pension and in active service, January 1, 1916, that is, if the pension system should be discontinued so far as those entering service after January 1, 1916, are concerned, there would be pension- ers on the rolls for a period of 81 years, or until 1997. 7. // the force is maintained at its size as of January i, $79>79>4 2 7 W M be required in 81 years: If a force of 1,973 men is to be maintained, the amounts necessary to pay pensions under the present plan, in addition to the amounts that will be contributed by employees through deductions of 1 per cent of salaries, during the 81 years following January 1, 1916, will be as follows: Payments to those on pension roll or in active service, January 1, 1916, and their dependents ................ $33,416,548 Payments to those who enter the service after January 1, 1916, and their dependents when they become pensioned. 46,293,884 Total $79,710,432 Deductions of 1 per cent from salaries of : Those in service January 1, 1916 $ 494,909 Entrants after January 'l, 1916 1,947,932 Total . $2,442,841 Balance , $77,267,591 15 8. Annual charge varying from $339,911 in 1915 to $1,071,875 . when the system is carrying its ultimate normal load: After a system becomes such that the number of employees remains constant, new entrants coming in only to fill vacancies caused by withdrawals and deaths, then there will come a time when pension payments will be the same from year to year. When this time comes, the system is said to be carrying its ultimate normal load. In this instance, if the body of employees remains constant at its size on January 1, 1916, of 1,973 men, the system will carry its ultimate normal load 81 years from January 1, 1916, or in the year 1997. It will, however, carry prac- tically its normal load, namely $1,071,795, in 30 years or in 1946. o. When the system is carrying its ultimate normal load, pension requirements will be 36.6 per cent of the pay roll: If the body of em- ployees remains stationary at 1,973 men, pension payments, when the system is carrying its ultimate normal load, will be $512,960 to men, $531,862 to widows and $27,052 to children. This makes a total of $1,071,874, which on the basis of present salaries will be 36.6 per cent of the pay roll. At that time the percentages of payments to men, to widows and to children compared with total pension payments will be, to men, 47.9 per cent; to widows, 49.6 per cent; and to children, 2.5 per cent. (c) THE TEACHERS' FUND OF CHICAGO. /. Number of employees in service January i, 1916, and amount contributed by employees to pension during 1915: On January 1, 1916, there were 7,754 teachers contributing to the fund, of whom 7,010 were females and 744, males. The contributions received by deduc- tions from salaries amounted, in the year 1915, to $129,875.55. 2. Number of pensioners on January I, 1916, and amount dis- bursed in pension during 1915: On January 1, 1916, there were 544 pensioners, of whom 521 were females and 23, males. The amount disbursed in pension during the year 1915 was $191,716.91. j. Would require reserve for employees and pensioners of Janu- ary /, 1916, of over $5,600,000: If no additions were made to the force vacancies caused by retirements on pension, deaths, resigna- tions and dismissals not being filled a sum amounting to $5,601,199 on hand January 1, 1916, and invested to net 4 per cent compound interest, together with the amount on hand on that date ($1,030,572), and, in addition, the contributions on the present basis from salaries of teachers and contributions of equal amounts from the city would be sufficient to pay pensions provided for by this act as they mature each year. 4. Future payments to pensioners and employees of January i, 1916, over $27,900,000: The amounts payable in the future to em- ployees and pensioners on the rolls, January 1, 1916 no additions being made to the staff will total $27,925,940. These payments will be distributed as follows: 16 To pensioners on the roll, January 1, 1916. 4 $ 3,233,946 To pensioners from among those in active service, January 1, 1916 24,683,994 Refunds 8,000 Total $27,925,940 Amount contributed by teachers and city, and cash on hand : Amount contributed by teachers $3,377,370 Amount contributed by city on present basis 3,377,370 Cash on hand, January 1, 1916 1,030,572 Total $7,785,312 5. Amounts and percentages of pension payments among the dif- ferent classes of pensioners: Of the total pension payments to pen- sioners and those i-n active service, January 1, 1916, the amounts and percentages to total amount, paid to the different classes of pensioners, will be as in the following table : Per cent of Class of pensioners. Amount. $27,917,940. Service pensioners $26,626,661 95.4 Disability pensioners 1,291,279 4.6 Totals $27,917,940 100.0 6. Pension payments to pensioners and employees of January i, 1916, will extend for a period of 81 years: If pensions are paid only to those on pension and in service, January 1, 1916, that is, if the pen- sion system should be discontinued so far as those entering service after January 1, 1916, are concerned, there would be pensioners on the rolls for a period of 81 years, or until 1997. 7. // the staff is maintained at its size as of January i, 1916, $85,184,31? will be required in 81 years: If a staff of 7,754 teachers is to be maintained, the amounts necessary to pay pensions under the present plan, in addition to the amounts that will be contributed by teachers through deductions from salaries on the present basis, and equal amounts from the city, during the years following January 1, 1916, will be as follows: Payments to those on pension roll or in active service, January 1, 1916 $27,917,940 Payments to those who enter the service after January 1, 1916 , 57,257,241 Total $85,175,181 Deductions from salaries : Those in active service, January 1, 1916 $ 3,377,370 Entrants after January "l, 1916 13,079,042 Total $16,456,412 Balance $68,718,769 8. Annual charge varying from $191,717 in 1915 to $758,712 when the system is carrying its ultimate normal load: After the system 17 becomes such that the number of employees remains constant, new entrants coming in only to fill vacancies caused by withdrawals and deaths, then there will come a time when pension payments will be the same from year to year. When this time comes, the system is said to be carrying its ultimate normal load. In this instance, if the staff remains constant at its size on January 1, 1916, of 7,754 teachers, the system will carry its ultimate normal load 81 years from January 1, 1916, or in the year 1997. It will, however, carry more than its ulti- mate normal load, namely $768,074, in 24 years or in 1940. o. When the system is carrying its ultimate normal load, pension requirements will be 7.06 per cent of the pay roll: If the body of teachers remains stationary at the number of 7,754, pension payments, when the system is carrying its ultimate normal load, will be $758,711. On the basis of present salaries, this will be 7.06 per cent of the pay roll. (D) THE MUNICIPAL EMPLOYEES' FUND OF CHICAGO. 7. Number of employees in service January I, 1916, and amount contributed by employees to pension during 1915: On January 1, 1916, there were 5,604 employees contributing to the fund. The contribu- tions received by deductions from salaries amounted, in the year 1915, to $134,127,22. 2. No pensioners during 1915: The act under which this fund is operated prescribed an accumulation period of 5 years from July 1, 1911, before pensions would be paid. This period did not expire until July 1, 1916, and consequently, there were no disbursements in pension during 1915. 5. Would require reserve for employees in service, January I, 1916, of perhaps in the neighborhood of $7,000,000: Of the assump- tions made as to the ages at which employees would accept pension from this fund, the one assuming age 60 as the age of retirement on pension would probably most nearly reflect actual future conditions. On this assumption, if no additions were made to the service vacan- cies caused by retirements on pension, deaths, resignations and dis- missals not being filled a sum amounting to $7,005,355, on hand January 1, 1916, and invested to net 4 per cent compound interest, together with the amount on hand on that date ($525,681.86), and, in addition, the contributions of $24 per year deducted from salaries of employees, would be sufficient to pay pensions provided for by this act as they mature each year. (E) THE ILLINOIS STATE TEACHERS' PENSION AND RETIREMENT FUND. /. Number of public school teachers in service January I, 1916, and receipts of the fund during the year 1915: As nearly as we can estimate, there were in round numbers 26,000 public school teachers in the State, outside of the cities of Chicago and Peoria, on January 1, 1916. The amount received by the fund during the year 1915 was $50,144.97. 18 2. No pensioners during 1915: No pension payments were made in this fund before January 1, 1916, excepting small amounts in the cases of funds absorbed by this fund. j. Number of pensioners September 30, 1916, and amount dis- bursed in pension from January i, 1916, to September 30, 1916: On September 30, there were 339 pensioners on the rolls. The amount disbursed in pension during the year 1916 up to September 30 was $26,294.59. 4. Annual charge when the system is carrying its ultimate normal load: While there is considerable variation in the results according to the assumptions made, it seems fairly safe to say that the ultimate pension payments under the present system will amount to between 7 and 12 per cent of the annual salary payments. EXTENT OF PRESENT AND POSSIBLE FUTURE PENSION LEGISLATION FOR PUBLIC SERVICE EMPLOYEES IN ILLINOIS. We find that on January 1, 1916, there were in Illinois 77,791 public service employees. Of these, 30,550 were under civil service, and 47,241, including 34,191 teachers, not under civil service. Of the 77,791 public service employees, 55,350 were under pension legislation and 22,441 were not under pension legislation. Of the 22,441 not under pension legislation, 9,906 were under civil service. Those consist of : State employees, 5,509 ; employees other than policemen in the park systems in Chicago, 2,790 ; county employees, 1,248 ; and employees in Springfield and Evanston other than policemen and firemen, 359. For further particulars, see Chapter VII. 19 CHAPTER II. THE OPERATION OF PENSION LAWS IN FOREIGN COUNTRIES. PURPOSE OF THE CHAPTER. The Illinois Pension Laws Commission is charged not only with the duty of investigating the operation of pension laws in Illinois, but also with that of collecting available information on the operation of similar laws in other states and countries. It is the purpose of the present chapter to give a brief survey of the pension experiences of certain foreign countries, with special reference to such matters as may throw light on the pension situation in Illinois. COMPARISON OF PENSION CONDITIONS IN THE UNITED STATES AND EUROPE. In many foreign countries, some more or less scientific form of pension or retiring allowance is provided for public employees in all cases where the tenure of office is practically permanent. We note a decided contrast between this condition and that which exists in the United States. Our Federal Government makes no provision for pen- sioning its civil service employees ; and our states provide pensions, in the main, only to certain select groups, such as firemen, policemen, teachers, municipal employees and judges, and have not, in general, any well-considered policy. The contrast is the more striking when we take into account the fact that the United States pays enormous amounts in war pensions in comparison with those paid in any foreign country. The explanation of this attitude of the Federal and State Governments toward the pensioning of public employees is to be found, perhaps, in the facts that our economic interests have been largely agricultural, and that in communities of such a character the doctrine of individualism receives more general support than in communities where other interests predominate. In Europe the problem of pensions for government employees has received attention for more than one hundred years. During this time, many unsuccessful experiments have been attempted, which we in this country are inclined perhaps unwittingly to repeat. Especially during the later years of this period the problem of pensions for both gov- ernment and industrial employees has demanded the thought of the greatest statesmen of Europe, as for instance, Bismarck, Gladstone, Lord Morley, Chamberlain, Asquith and Lloyd-George. In the United States, only within very recent years has an attempt been made to study 20 the pension problem; and even yet, with few exceptions, no legisla- tion has been enacted calculated to place any fund on a sound financial basis. ORIGIN AND GROWTH OF PENSION SYSTEMS. It is obvious that a study of the history of former pension experi- ences, such as those referred to above, is an important preliminary step in the consideration of future pension plans. Personal pensions are of ancient origin, these having been given by sovereigns for distinguished service to the state under the Roman Empire. On the other hand, pension systems are of comparatively recent origin. They are not, however, so recent but that there exists a considerable body of valuable data which throws some light on our pension problems in America. England has had more than a century (beginning in 1810) of illuminating experience with civil service pen- sion systems, which are in many features similar to pension systems created under the laws of Illinois. France had a pension system for municipal employees in Paris at an even earlier date. Some pension plans in Austro-Hungary date back to 1771. The idea of creating pension systems for government employees probably originated indirectly with the governments themselves. About the beginning of the last century, various countries began to adopt definite pension plans for soldiers. It was a natural step from such pensions to similar provisions for policemen, firemen and other gov- ernment employees. This class of pension is in the nature of a reward for past services, and is not based necessarily on the need of the individual. Somewhat later, as the result of the changed social and industrial conditions, caused largely by the use of machinery, industrial pension systems were inaugurated by certain governments. These pensions are in the nature of relief to a class described as the not undeserving poor, and are intended in large measure as a defense for working men against need in old age and invalidity. METHOD OF PROCEDURE. Although the two classes of systems afford a fundamental dis- tinction in regard to the basis upon which pensions are paid, still the development of each has had an influence on the other. A discussion of pension systems for government employees would therefore be incomplete without a more or less detailed reference to industrial systems. In order to present some of the facts in concrete form we shall take up separately some foreign countries whose experiences seem especially valuable, and give brief descriptions of these experiences with such comments and interpretations as seem to have some bearing on the status of pension funds in Illinois. Especial attention and a relatively large amount of space are given to Great Britain and Germany, because it appears that we in America are tending to retrace unconsciously the main features of the experiences of these countries without profiting by their failures. 21 GREAT BRITAIN. CIVIL SERVICE PENSIONS. 1 EARLY EXPERIMENTS. As stated above, the British Government has had more than a century of experience in attempting, by the payment of pensions, to solve the problem of retirement from the civil service. In 1810, under a general act, the government began the payment, out of the revenue of the country, of retiring allowances to civil service employees. Because the expenditure was increasing rapidly, Parliament provided in 1822 that deductions should be made from salaries of civil service- employees receiving more than one hundred pounds ($486.66) per annum. The law required that half the superannuation allowances granted after that date should be paid out of the funds thus created. Two years later the act was repealed, and the sums contributed up to that time were returned. From 1824 to 1829 pensions were granted by the State on a liberal basis without deductions from the salaries of the employees. LAWS IN FORCE FROM 1829 TO 1857. From 1829 to 1857, a contributory system was in force for all who entered the civil service subsequent to August 4, 1829. The deductions from salary were 2^ per cent from salaries not exceeding one hundred pounds ($486.66) per annum, and 5 per cent from salaries exceeding that amount. This act contained no provision that the amounts thus collected should be funded and accumulated at interest. The contributions were to be turned into the general exchequer, and no provision was made for determining whether or not they were adequate to supply the pensions promised. A general feeling of dissatisfaction with the contributory system developed among the employees. They believed, in the first place, that the contributions were more than adequate to provide the pensions promised. More particularly, however, their antagonism to the system was aroused by the lack of a provision for the refund of contributions in case of withdrawal from the service before the conditions for receiv- ing a pension were fulfilled. In this latter connection, the distinguished Sir John Herschel, after leaving the public service, expressed himself in regard to the injustice of offering no refunds in the following manner: "The only mode consistent with justice in dealing with such portion of a man's salary as may be withheld from him is to regard it as held in trust, and managed for his absolute benefit, to be either handed over to him with accumulations at the termination of his service or paid over to his estate in the case of death." The discontent with the conditions became so intense that in 1846 the employees formed an association for the purpose of bringing their grievances before Parliament. This association worked on various plans for ten years, and presented its claims before a select committee 1 For a source of more complete information on the experience of Great Britain, see Report of Herbert D. Brown, U. S. Sen. Doc. No. 290, 61st Congress, second session. 22 of the House of Commons in 1856. Two actuaries were appointed to investigate the question as to whether the deductions from salary were more than adequate to pay the pensions. Contrary to expectations, the actuaries found that the contributions were inadequate and that if the system had depended upon contributions only it would have been hope- lessly insolvent. The provision requiring deductions from salaries was repealed in 1857, and an act was passed in 1859 which established a system of noncontributory pensions. LAW IN FORCE FROM 1859 TO 1909. In this act of 1859 the amount of the pension was fixed at one- sixtieth of the salary for each year of service, with a maximum of two-thirds of the average salary. Retirement on pensions was per- mitted at age 60, or in case of disability after ten years of service ; but no power was given the state to compel retirement at any age. In its general and most important features the scheme inaugurated in 1859 remained unaltered until 1909. During this interval, however, some changes in detail were made ; thus, under an act of 1887, pensions were given to widows and children of public servants killed in the performance of duty. This system of noncontributory pensions created by the act of 1859 was not satisfactory to the employees. After the system was in force for some time, the view .came to be. held that the pension was taken into account in fixing salaries; in other words, that the em- ployees, because of their pension prospects, were being paid less than they would otherwise receive. A committee consisting of 70,000 of the total 100,000 employees, which took the name "Deferred Pay Committee," pressed the claims of employees so vigorously that the Courtney Commission was appointed in 1902 to investigate their grievances. THE COURTNEY COMMISSION 1902. This commission held rather arbitrarily that no more than was necessary to pay pensions was being withheld. The contention that salaries are lower for those employees who come under the pension act than for similar employees outside a pension act was practically admitted. The commission recommended that life insurance of a certain form be granted in lieu of part of the pension. This recom- mendation was submitted to popular vote of the employees, with the result that 80 per cent of the service voted for the change. THE PRESENT LAW ACT OF 1909. In accord with this recommendation a law was passed in 1909 reducing the amount of pension by one-quarter, and substituting, in place of this part of the pension, benefits in the form of insurance against death and cash payments in case of withdrawals from the service before receiving a pension. The reduced pension under this law is thus one-eightieth of the average annual salary for each year of service, instead of one-sixtieth as had been the case since 1859. In addition, the treasury is authorized 23 to give a retiring employee a lump sum of one-thirtieth of the average annual salary multiplied by the number of years of service, provided the additional allowance shall not exceed one and one-half times the average annual salary. Continuance in active service after age 65 is discouraged by reducing the additional allowance in case of service after this age. PENSIONS AND GRATUITIES TO LONDON METROPOLITAN POLICE. The pension system for London police contains a few features to which special attention should be directed. A distinction is made in the London Police Act of 1890 between pensions and gratuities. When the retiring allowance is given automatically, it is called a pen- sion. When an allowance is obtained by special decision of the Police Authority which grants pensions, it is called a gratuity. Thus, if at any time during service, a policeman is incapacitated for the perform- ance of his duty by infirmity of mind or body occasioned by an injury received, without his own fault, in the execution of his duty, he receives a pension. If the incapacity is not directly the result of an injury thus received, the Police Authority may, if it sees fit, grant him a gratuity. Similarly, if a policeman dies while in the police force from the effect of an injury received, without his own fault, in the execution of his duty, a pension is granted to his widow, and allowances are given to his children. If a policeman dies while in the police force from any cause, the Police Authority may, if it sees fit, grant gratuities to his widow and children, or any of them. The London police system differs from the general civil service system in that final salary, with a qualification, instead of average salary, is the basis for determining the amount of the pension. The qualification applies where a policeman has been promoted within three years previous to retirement. In this case, the pension is a percentage of his average annual pay for the three years, and the percentage depends on the number of years of service just as in the general civil service system explained above. A PENSION AS DEFERRED PAY. In the general act of 1909 it is recognized that the value of a pension is taken into account in fixing salaries, and that the pension is a form of deferred pay. 1 In brief, after a hundred years of experi- ence with civil service pensions in England, the pensions are regarded very generally as deferred pay. Thus an employee acquires an equity in the nature of a pension expectation ; and to leave the service without a consideration for this equity is analogous to lapsing life insurance without a surrender value. Moreover, such pensions as do not offer some settlement of the equity involved in pensions in cases of death and withdrawal are likely, in time, to interfere seriously with the mobility of labor and with competition among employers. It was in *The Courtney Commission, after careful investigation, held that a pension is deferred pay, but with a qualification that is of interest. The commission took the view that a pension is remuneration for services, but that it is also, in part at least, a reward for continuity of service contingent on the continuity being main- tained throughout a definite period, and not accruing from year to year. the law of 1909 that the principle was recognized that even with a noncontributory system the employee who withdraws from the service should receive certain benefits. He should receive these because he worked for lower wages or salary than he would have done if no pension system had existed. In other words, even a noncontributory system of pensions has in England become virtually contributory, because wages and salaries are held at a lower level on account of the pension prospects. This appears to be the view of the majority of government employees in England, as shown by their votes, after an experience since 1859 with noncontributory pensions. CONTRIBUTORY AND NONCONTRIBUTORY PENSION PLANS IN GREAT BRITAIN. To review briefly the experience of * Great Britain, we note the following periods with respect to contributory and noncontributory systems : 1810 to 1822, totally noncontributory pension plan. 1822 to 1824, half contributory pension plan. 1824 to 1829, totally noncontributory pension plan. 1829 to 1857, totally contributory pension plan. 1859 to present date, totally noncontributory pension plan, with reduced pensions since 1909 and substitution of some withdrawal benefits and insurance. ON THE COST OF PENSIONS -IN GREAT BRITAIN AS A PERCENTAGE OF CORRESPONDING SALARIES FOR ACTIVE STAFF. The ratio of pension payments to salary payments depends on several factors. When a department is relatively new, or has experi- enced a period of rapid growth within the past 20 or 25 years, it is likely to have a relatively large number of young men on the salary roll. On the other hand, if a department is decreasing in number by failing to fill vacancies, it will probably have a relatively large number of old men. It was reported before the Courtney Commission in 1902 that the ratio of pension payments to salary payments was only about 6 per cent in the post office department, whereas in the customs and treasury departments the ratio was about 30 per cent. The ratio of pension payments to salary payments for the entire service was between 16 and 17 per cent. As an additional illustration, we note that in 1915, the London metropolitan police had a pay roll amounting to $10,060,914 for salaries and $2,946,919 for the payment of pensions, from which we find that the current cost of pensions is over 29 per cent of salaries. The post office department in 1902 was clearly not carry-- ing its ultimate normal load,* whereas the customs and treasury depart- ments probably were carrying theirs. VIEWS HELD IN THE LIGHT OF THE EXPERIENCE OF GREAT BRITAIN. Although one would hardly expect complete agreement on many matters concerning pensions, it seems fair to say that the following * When there is such a distribution of apes as will arise if a department is simply maintained at a fixed size by the addition of young men to replace with- drawals and deaths, we say that the system carries its ultimate normal load. 25 views are pretty generally held among employees and others familiar with the experience of Great Britain: 1. The pensions are regarded as deferred pay. The fact that 70,000 of the total of 100,000 employees belonged to the Deferred Pay Committee shows very clearly the views of employees. The govern- ment, moreover, supported the contention of the employees in this matter when it provided a form of refund through the law of 1909. 2. The noncontributory pension tends to lower the level of wages or salaries of the participants. 3. The civil service employee of Great Britain feels that he acquires an equity in a pension by working for a lower salary than that which would be paid him if no pension system existed, and that some benefit should be paid when the employee leaves the service by death or retirement. COMPARISON WITH PENSIONS UNDER ILLINOIS LAW. 1. Since each of our Illinois pension systems for public employees is at least slightly contributory, we may say that the contributory prin- ciple is to some extent recognized. Furthermore, if it should occur that the contributions will carry but a small per cent of the ultimate normal load, there is little doubt that, in time, the pension will be taken into account in fixing salaries and wages in so far as the pensions are not directly contributory. 2. The amount of the benefit under the civil service pensions ot Great Britain is graded according to length of service, with a maximum based on 40 years of service, whereas our pensions in Illinois do not vary with length of service. 3. The pensions of Great Britain for government employees and for teachers have, in general, a common basis of calculation; namely, a percentage of average salary 1 throughout the entire period of service. On the contrary, the bases of calculation in our principal funds vary widely. For instance, the firemen's pension is on the basis of half the final salary, whereas the teachers' fund and municipal employees' funds provide uniform amounts without reference to the salary. The British standard is very generally in use throughout Europe, and appears to be a more satisfactory basis than final salary, as final salary is capable of easy manipulation. 4. Retirement under the British law is permitted at age 60, and some pressure is brought to induce retirement at age 65 by reducing the benefits to be received after that age. The retirements under the Illinois law are, in general, at younger ages; and for policemen and firemen no age qualification is required. 5. The cost of the British system for some departments has much more nearly approached the ultimate normal load than has the current cost of systems in force in Illinois, on account of the longer time the British system has been in force. The current cost in some deparments of the English government service is over 30 per cent , of the salary payments. 1 See page 23 for modifications in the case of London police. TEACHERS' PENSIONS IN GREAT BRITAIN. 1 EARLY PENSION PLANS. Pensions for certain teachers have been paid in Great Britain since 1846. In 1862, action was taken which made it impossible to add to the existing pension roll, but this action was without prejudice to the validity of pensions already granted. In 1875, provision was made to grant further pensions, but with decided limitations as to the number of pensions to be allowed in England and Scotland together. These pensions were intended to facilitate the appointment of competent successors in places of meritorious but incapacitated teachers. The pensions were administered through Committees of the Council on Education. That the plans were inadequate to satisfy anything except the most pressing needs, is shown by the fact that in 1900 the rules provided that the maximum number and value of pensions receivable at one time, in England and Scotland together, and including pensions then current, should be as follows : 73 pensions of 30 pounds each 2,190 pounds 394 pensions of 25 pounds each 9,850 pounds 563 pensions of 20 pounds each 11,260 pounds Donations and special gratuities 440 pounds 23,740 pounds These pensions, provided by a sort of secondary legislation of the Committee of Council, represented about all that existed in the line of pension systems for public school teachers until the legisla- tion of 1898. Since the law of 1898 became operative, the amount expended for the pensions administered by the Committee of Coun- cil has gradually decreased. In fact, teachers who accept the act of 1898 are debarred from the earlier form of pensions, unless they are unable to qualify under the new regime after such acceptance. THE ELEMENTARY SCHOOL TEACHERS (SUPERANNUATION) ACT OF 1898. The Elementary School Teachers (Superannuation) Act of 1898, was the law through which Parliament for the first time established state pensions for teachers. The age of retirement was 65 years. The male teacher was to contribute three pounds ($14.60) and the female two pounds ($9.73), to be used to purchase a deferred annuity beginning at the age of 65. The government was to provide from public funds an allowance of ten shillings ($2.43) for each complete year of service. THE AMENDMENT OF 1912. The law was amended in 1912, and a distinct law was then enacted for Scotland. The amendatory act fixed the rates of con- tribution at three pounds, twelve shillings ($17.52) and two pounds, eight shillings ($11.68) per year for men and women respectively, and increased the government allowance from ten shillings ($2.43) to 1 See Sies, R. W., Teachers' Pension Systems in Great Britain, U. S. Bureau of Education, Bulletin, No. 34, 1913. 27 one pound ($4.86) for each complete year of service. Under the present provisions a man with 40 years of service at age 65 receives a pension of seventy-eight pounds ($379.59), of which thirty-eight pounds, ($184.93) are provided by his contribution and forty pounds ($194.66) from public funds. A woman, aged 65, with 40 years of service, receives fifty-nine pounds ($287.12). Provisioiji is made for the actuarial examination of the funds at stated times to deter- mine whether the experience is in accord with expectations. SYSTEM IN FORCE IN SCOTLAND AFTER 1912. In 1912, when the Superannuation Act of 1898 ceased to apply to Scotland, a system that merits careful study was inaugurated in that country under competent actuarial advice : School boards are required to pay certain amounts into a State Teachers' Superannuation Fund. Certain amounts are also to be deducted from the salaries of teachers and paid into this fund. The conditions for retirement are at least ]0 years of service and 60 years of age, or total and permanent dis- ability not caused by the teacher's own misconduct. In case of teach- ers entering the service after the law was in force, the amount of the pension is one-sixtieth of the average annual salary throughout the period of service multiplied by the number of years of service, pro- vided the pension may not exceed two-thirds of such average salary. Provision is made for the return of contributions on withdrawal from service or in case of death. At the end of every five years from the beginning of the scheme, an investigation and valuation of the fund must be made by an actuary appointed by the department. OLD AGE PENSION SYSTEM OF GREAT BRITAIN AND IRELAND. CONDITIONS OF PAYMENT OF OLD AGE PENSIONS. These pensions are paid under a law entitled the "Old Age Pension Act, 1908," with certain amendments which do not affect the principles of the act but merely change certain regulations. The scheme went into effect January 1, 1909. Any person who fulfills the following conditions is entitled to a pension: 1. Age 70. 2. A British subject for at least 20 years, during twelve of which he held residence in the United Kingdom. 3. Yearly income not greater than thirty-one pounds, ten shil- lings ($153). Persons are disqualified under the following conditions: 1. Habitual failure to work before age 70. 2. Detention in an asylum under the Lunacy Act of 1890. 3. Conviction and imprisonment without the option of a fine in which case a period of from two to ten years must elapse before a per- son is qualified. Until 1911, there was the additional condition that the person to receive the pension should not be in receipt of poor relief. The effect of removing this restriction was to transfer on January 1, 1911, a total of 122,000 regular paupers to the list of old age pensioners. 3 PL PENSION RATES. Pensions are granted at rates shown in the following table : ANNUAL INCOME. WEEKLY BENEFIT. Up to 21 pounds ($102.20) 5 shillings ($1.22) From 21 pounds to 23:12:6 ($114.97) 4 shillings ($0.97) From 23:12:6 to 26:5 ($127.75) 3 shillings ($0.73) From 26:5 to 28:17:6 ($140.50) 2 shillings ($0.49) From 28:17:6 to 31:10 ($153.41) 1 shilling ($0.24) STATISTICS ON NUMBER OF OLD AGE PENSIONERS AND COST OF OPERATION. The number of pensioners under England's Old Age Pension Act in 1909 was 647,494; in 1913 the number had increased to 967,921. The first year's figures reported run from April 1, 1909, to March 31, 1910. This is called the fiscal year 1909. On account of the changed social conditions caused by the European war, it is perhaps just as well not to report later figures. The cost of these pensions increased from 8,465,231 pounds in 1909, to 12,130,609 pounds ($59,033,610) in 1913. The average benefit in 1913 was twelve pounds, ten shillings ($60.98) per year. It appears that the number of pensioners in England, Scotland and Wales is between 50 and 55 per cent of the male population over 70 years of age, and between 65 and 75 per cent of the female popula- tion of corresponding age. In Ireland the percentage of the popula- tion appears to be somewhat higher. One of the most surprising features in this system of pensions is the smallness of the benefit to the individual, but the large number of individuals who are on the pension list. CRITICISM OF THE SYSTEM. The National Civic Federation issued a committee report 1 in 1914 containing a statement of the operation of the above-described Old Age Pension Act. It appears that the committee was interested in these pensions from the standpoint of the welfare of the wage earner as well as that of the employer and general public. At least, Mr. J. W. Sullivan, representing wage earners, was chairman of the committee. This report is decidedly critical toward this pension system, as is shown by the following statements : "Under the British law an aged person does not have to be desti- tute or in fact in need of public support to become a pensioner ; for he or she may be rightfully dependent upon sufficiently well-to-do rela- tives. Family life among the working classes, as indeed among all other classes, is more or less communistic. The family, not the indi- vidual, becomes the natural social unit. * * * By an understand- ing between parents and their offspring, the pension may be drawn a< drink or pin money. Wages may be, and it is stated often are, reduced by consent just so much as is necessary to bring the employee within the pension law limit. In fact, it is commonly admitted that when the law went into operation the general average wages of laboring men over 70 went down eight shillings a week, so that the full pension could 1 Report of the Committee on Preliminary Foreign Inquiry, Social Insurance Department, November, 1914. 29 be drawn. * * * The fundamental objection that this system of relief discourages thrift, and destroys the sense of individual and family responsibility, needs only to be pointed out. The English sys- tem prescribes no criterion of merit at all. It seems to be indiscrim- inate poor relief, pure and simple, merely disguised in name, and in a form peculiarly liable to abuse and fraudulent imposition." Whether we accept all of this criticism as conclusive, or not, it seems clear that the so-called old age pensions of Great Britain are not paid to individuals as a reward for service to society ; and that they are therefore more in the nature of poor relief so disguised as to remove the stigma that goes with many forms of such relief than in the nature of a pension. Moreover, it also appears that as a means of relief the system is not effective in distinguishing between the exist- ence and nonexistence of need on the part of the participant. COMPARISON WITH PENSION LAWS OF ILLINOIS. In the pension laws of Illinois we find very little that resembles the system of so-called old age pensions of Great Britain ; but in con- nection with the tendency to use the word "pension" for "poor relief," it may be worth while to call attention to the fact that we have in the State of Illinois a law that is sometimes referred to as the Mothers' Pension Act, and another that is commonly known as the Pension Act for the Blind. It appears that the word "pension" does not occur in either of these acts. The former is correctly denominated as "An Act to Provide for the Partial Support of Mothers * * *," and the latter as "An Act for the Relief of the Blind." The payments under these acts are made with a view to the relief of need. GERMANY. CIVIL SERVICE PENSIONS. Public pension systems for the employees of the government of the German Empire, for employees of the Confederated States and for employees of municipalities within the Empire follow the same general lines and differ only in minor particulars. The conditions for the pay- ment of the pensions are nearly uniform. For retirement, an age limit of 65 years or disability is a necessary condition. The pensions paid are graded according to length of service and average amount of salary throughout the period of service. They vary, in general, from 33J3 per cent to 75 per cent of the average salary. If a pensioner receives pay from holding any other public office, the payment of the pension is suspended in so far as the salary connected with the new office, together with the pension, would exceed the last salary of the employee at the time of retirement. Although the systems for the different parts of the country do not differ greatly, it may be worth while to characterize briefly the system for officers of the Empire and for those of the leading States. OFFICERS OF THE EMPIRE. These pensions are provided for by laws of 1873 and 1907. The following fundamental conditions are prescribed: (1) The employee 30 must have a life appointment, and the work of the office must be his life work; (2) he must draw a salary out of the budget of the Empire. The pension may be obtained at age 65 without proof of dis- ability, provided other conditions are satisfied. If, upon reaching that age, an officer does not elect to retire voluntarily, the determina- tion of the question whether he shall be compelled to leave the service against his will, rests with a delegation of a higher court of the Empire. If disability is incurred in consequence of performing the duties of an office before the officer has 10 years of service, the amount of pension is one-third of the average salary. For each additional year after 10 years of service up to 30 there is added one-sixtieth to the one- third, and from 30 years on there is added one-one hundred and twentieth for each year of service. OFFICERS OF CONFEDERATED STATES PRUSSIA, BAVARIA, SAXONY, WURTTEMBERG, BADEN. Civil service pensions rest on laws enacted and amended at various times since 1872. Pensions are awarded on grounds of dis- ability after 10 years of service, or on becoming of age 65 with at least 10 years of service. Those who are forced into retirement have recourse to .a hearing before the Staatsministerium. The rates of pension are the same as in the Empire. The provisions for civil service pensions apply, in general, to teachers and officers in the secondary and higher schools, but not to university teachers. The latter continue to draw their full salaries, for life even when they are retired from active teaching. This distinction is no doubt conferred with a view to rendering the position of university professor more attractive, and to making the professor fairly free to continue his scientific research even in old age. OFFICERS OF CITIES. The city officers, generally speaking, in case of disability receive pensions according to the provisions for State officers. The retire- ment of city officers is not uniformly at age 65, but is regulated some- what by ordinances. In general we may say, however, that these pen- sions do not differ essentially from those for officers of the State. COMPARISON WITH CONDITIONS IN ENGLAND. As in England, we find the pensions for government employees on a noncontributory basis. It is admitted, in general, that the salaries are kept lower than those paid for similar work outside the government service. So far as government employees are concerned, there seems to be very little difference in principle between the German and English systems. The German system requires age 65 for service retirement, whereas England permits retirement at 60. Germany, in general, includes teachers in this noncontributory system, whereas in England the system for teachers is distinct and is contributory to the extent of providing about one-half the benefits. 31 OLD AGE OR INDUSTRIAL PENSIONS IN GERMANY. In the matter of industrial pensions Germany has been unques- tionably the leader of all countries. In this class of pensions her system differs decidedly from that of England. The old age pension system of Germany dates back to the law of 1889 ; and this law is regarded as one of the pieces of constructive statesmanship of Bis- marck. The expense of this system falls jointly on the employers and the employees and the government. According to some author- ities, the experience of Germany constitutes the most complete and successful solution of the problem of caring for aged and disabled industrial workers. Although we have no reason to question this statement, when applied to German conditions, it leads to a question- able inference if we conclude that such a system would work well in America. This pension system comes under what is called compulsory old age and permanent disability insurance. Such insurance is com- pulsory if the income is less than 2,000 marks ($476). The partici- pants include all laborers, employees in commercial establishments, domestic servants, and certain other employees. The Imperial Gov- ernment contributes to each pension the sum of 50 marks ($11.90) from its own funds. It takes care of part of the expenses of admin- istration, and pays part of the contributions while the participant is on military duty. The weekly contributions are uniform for all classes, and are graded according to amount of wages from Pf. 14 ($.033) to Pf. 36 ($.086). The age of retirement is 70. The average of the pensions paid is a little over 160 marks, or between $38 and $39 per year. The features that probably stand out most conspicuously in this scheme are the smallness of the contributions from individuals and the smallness of the individual benefits. Although we have no system in America that is closely analogous to these systems of old age pensions, the main features of such schemes are outlined here in order to give as comprehensive a view of the pen- sion situation abroad as is possible in a brief outline, and to correct an impression that those pensions are on what would be regarded as a liberal basis for an individual employee in America. AUSTRO-HUNGARY. CIVIL SERVICE PENSIONS. In Austro-Hungary there is a thoroughly developed system of pensions for government employees, which dates back to 1771. It provides for widows, and orphans when both parents are dead. Un- fortunately, there are in reality about forty different pension systems in Austro-Hungary for different classes of civil service employees. In general, the pension for invalidity after 10 years' service varies from 33 to 40 per cent of average salary. This increases with service until the end of 30 to 40 years of service. The widows obtain about one-third of the active pay, and orphans about one-fifteenth each of the active pay. 32 ENUMERATION OF SYSTEMS, WITH METHODS OF MEETING THE COSTS OF PENSIONS. The following are the principal systems in force in Austro- Hungary : 1. Systems in which payments are granted by imperial decisions. 2. Systems without contributions from employees. 3. Systems with moderate contributions from employees, but not sufficient in amount to keep the fund actuarially solvent. 4. Systems either with or without contributions from employers where future pension burdens are cared for by creating a reserve in accord with actuarial principles. 5. Systems in which future pension burdens are covered partly by the creation of funds, and the additional cost is paid by the treasury. Pensions for the bulk of civil service employees are characterized by the following features: Pensions sufficient to give a subsistence are secured by the treasury without contributions from employees, and actuarial principles are introduced to insure proper reserves and benefits for the additional amount of the pensions. Mr, Blascke, the noted actuary, has expressed the opinion that the pension situation has already probably entered into substantially its constant period. The annual pension payments amount to between 30 and 40 per cent of active salaries. FRANCE. SYSTEM OF PENSIONS. Under the law of April 5, 1910, France has a system of pensions that is in the nature of annuities provided by equal payments from employees and employers into the funds created and to be used in accord with actuarial principles. This pension law applies not only to wage earners of all trades and professions, but also to public em- ployees not entitled to retiring allowances under previous laws and regulations. All wage earners and eligible public employees in the country receiving less than 3,000 francs ($579) a year are required to become participants. On the lowest scale of contribution a male participant receives at age 65 a pension of $82.80. He is not, how- ever, limited to the minimum contribution, and the pension may be made whatever he desires or can afford in contributions. The retire- ment age is age 65. The most important group exempted from the system inaugurated by the law of 1910 is the one composed of public employees subject to the law of 1853. This group receives annuities paid directly from the public exchequer, but deductions are made from salaries. In general, France makes comparatively large deductions from salaries to provide pensions. French State Railway employees are retired at the age of 55, which is a low age of retirement in Europe. For covering such pen- sion cost, employees make regular contributions of 5 per cent of their salaries and additional contributions of one-twelfth of a year's salary when newly admitted, and one-twelfth of increases in salary for the year following such increase. The railway administration estimates 33 that it will contribute the remaining half of the cost of the pensions. It is the tendency in France to compel the purchase of annuities, rather than to offer noncontributory pensions. NEW ZEALAND. On account of the fact that New Zealand has been one of the most progressive countries in matters of pension plans and has tried various methods of dealing with the superannuation problem, it seems worth while to include this country in our study of pension experi- ences. CIVIL SERVICE PENSIONS. The plan of granting straight pensions and gratuities out. of the treasury was begun in 1858, and continued for thirteen years, when it was abolished chiefly because of the cost of proceeding with the plan. For the next thirteen years, the government merely granted "compensation" (compensation for the loss of office) amounting to one month's salary for each year of service. From 1886 to 1893, 5 per cent was deducted from the salaries of civil service employees to be invested and returned with interest when such employees left the public service. In 1893 there was adopted compulsory insurance through the Government life insurance office. This insurance pro- vided a death benefit in case of death before age 60, and a life annuity if living at that age. Although this method of providing for retire- ment proved unsatisfactory, no legislation of a general nature was enacted until tlie law of 1907, although laws for special classes, such as policemen, teachers and government railway employees, were passed within the period. THE GENERAL LAW OF 1907. The general law enacted in 1907 applies to all permanent civil service employees not included in police, teachers' and railway funds. All new entrants into the civil service a.re compelled to join the fund. It is a noteworthy feature that the rate of contribution varies from 5 to 10 per cent of the salary, depending upon the age of the entrant into the service. There is provided a government subsidy of 20,000 pounds ($97,330) a year, together with such annual amounts as the report of the actuary shows to be necessary to meet the charges on the fund during the ensuing year. Pensions are claimable by men at age 65 or after 40 years of service ; by women at age 55 or after 30 years of service. There is no compulsory age of retirement. The amount of the pension is one-sixtieth of the average salary during the last 3 years of service multiplied by the number of years of service, and is limited to two-thirds of the salary. In case of withdrawal, the contributor is entitled to a return of his contri- butions, but without interest. In case of death, either an annuity of eighteen pounds ($88) is granted the widow, or the contributions are returned to the estate of the deceased. It is correct to say that, in general, the plans under the special act for policemen, teachers and railway officers do not differ essentially 34 from the plan under the general act. It may be noted that pensions for policemen are claimable at age 60 instead of 65, but that 25 years of service is an added requirement. The fund is administered by the Public Service Superannuation Board of ten members, of whom five are appointed by the Governor and five elected by the contributors. OLD AGE PENSIONS. In 1898, New Zealand enacted an old age pension act making a person who satisfies the following conditions eligible, provided he is not an Asiatic: 1. Income of less than 50 pounds ($243.32) per year. 2. Accumulated property of a value less than 260 pounds. 3. Residence in the colony as a citizen for at least 25 years. 4. Age 65 years. These pensions are on a totally noncontributory basis. CONCLUSION. It is an observation worth making that New Zealand has changed from a system of noncontributory pensions for government employees (adopted in 1858) to a system which is almost totally contributory, and that it has at the same time established old age pensions on a non- contributory basis. GENERAL SUMMARY AND COMPARISONS. We make the following general observations from the foregoing outline of the operation of pension plans: METHODS OF MEETING THE COSTS OF PENSIONS. In Great Britain there exist noncontributory pensions for the bulk of permanent public employees, but teachers have a contributory fund that is kept financially sound by actuarial examination and report at stated intervals. In Germany we find that teachers are, in general, included with civil service employees in the noncontributory system. England has noncontributory general old age pensions, whereas Ger- many has contributory old age pensions for industrial workers. In New Zealand we find almost totally contributory pensions for government employees including teachers, and noncontributory general old age pensions. This is exactly the reverse of the practice in Germany. Provision is made by the government subsidy to keep the system of New Zealand actuarially solvent. We find that France encourages by a sort of compulsion the pur- chase of annuities, and consistent with this practice we find a system of contributory pensions for public employees. In Austro-Hungary we find a great variety of pension systems varying from noncontributory systems to those that are totally con- tributory. In a general way, it is correct to say that in the practice of foreign countries, we find precedents for a great variety of systems. We find that the systems vary from those operating loosely without much regard for the probable future cost, to those kept, actuarially 35 sound on the theory that a class of persons of given age and service should be accumulating a sufficient fund to pay their own pensions. AGE OF RETIREMENT. The age of retirement is generally 65 years, but in some cases is 60 years. For women in New Zealand it is as low as 55. In respect to age, the Illinois law for retirement for service without age specifi- cations permits the retirement of policemen and firemen at much younger ages than we find in any of the foreign countries examined. Even our ages of retirement for teachers at 50, houses of correction employees at 50, municipal employees at 55 and public library em- ployees at 55 seem to be low in comparison with retirement ages of foreign countries. AMOUNT OF PENSION. We find that the amount of the pension in foreign countries is rarely based on final salary, as it is in some Illinois funds, nor is it in any case a flat sum, as it is in our teachers' funds and in our fund for municipal employees. In foreign systems, the pension is generally a per cent of average salary multiplied by years of service. For example, in a number of funds cited above it is one-sixtieth of the average salary for each year of service with a specification of the maximum allowed. Thus, with 30 years of service, a man obtains one- half his average salary as a pension. This method of determining the amount of pension obviates the possible abuse of raising a salary at the end of service in order to increase a pension, as is sometimes done when pension is based on final salary only. EFFECT OF NONCONTRIBUTORY PENSIONS ON WAGES. It seems to be generally recognized that the payment of noncon- tributory pensions leads to a lowering of wages. LESSON TO BE DRAWN FROM THE EXPERIENCES OF FOREIGN COUNTRIES. It is not likely that countries which began noncontributory pen- sions sixty years ago had the foresight to predict the present cost, but fortunately at the present time experience has taught us what we may expect if we operate a pension system with little or no regard to an adequate reserve fund. The testimony that some departments of the governments in England, Germany and Austro-Hungary pay from 30 to 40 per cent as much for pensions as for salaries is the answer of experience. 36 CHAPTER III. HISTORICAL SKETCH OF THE PENSION LAWS OF ILLINOIS. GENERAL SURVEY OF THE FIELD. Firemen's Benevolent Associations. The earliest legislation in Illinois on the subject of pensions that the writer is aware of was an act of 1852 (Laws of 1852, p. 65) which incorporated the Firemen's Benevolent Association of the City of Chicago for the relief of distressed,, sick and disabled members and their immediate families, and required agents for insurers other than Illinois corporations to pay to the association 2 per cent of all prem- iums on insurance effected against loss by fire in Chicago. The valid- ity of this compulsory payment for the relief of persons engaged in a service of public benefit, imposed on a class which especially profited from it, was upheld in Firemen's Benevolent Association v. Lounsbury, 21 111., 511. The requirement was repealed, however, in 1861 (Private Laws of 1861, pp. 118, 146), and the 2 per cent tax made payable to the city of Chicago instead. The Firemen's Association was dis- solved (Private Laws of 1861, p. 47; Private Laws of 1863, p. 29). When the Chicago charter was revised in 1863, it was provided that one-eighth of the proceeds of the 2 per cent tax should be set aside for a fund for distressed firemen disabled in the service of the city, and disbursed under regulations of the city council (Chap. 8, Sees. 5, 6, 7; Chap. 12, Sec. 8, Private Laws of 1863, pp. 40, 99, 126). Thereafter an act of 1867 (Private Laws of 1867, Vol. 1, p. 147) incorporated the Benevolent Association of the Paid Fire Department of the City of Chicago, and provided that the one-eighth of the fire rates paid to the city, instead of being disbursed by the city, should be paid annually by the city to the association as a trust fund for the benefit of firemen disabled in the city's service. These fire rates were increased by the Cities and "Villages Act of 1872, under which Chicago organized in 1875, by adding to the 2 per cent of the premiums of the foreign companies, 2 per cent of their net receipts. However, Chicago resumed the administration of firemen's relief by establishing a relief fund for policemen and firemen under the act of 1874 (R. S. 1874, Chap. 24, Sees. 221-226), and the provision for paying rates to the Benevolent Association was repealed by act of 1877 (Laws of 1877, p. 62), if indeed it had not already been repealed by the estab- lishment of the city pension fund (Benevolent Association v. Farwell, 100 111., 197). 37 In 1867, a Firemen's Benevolent Association was also incorpor- ated for Springfield with a requirement, like that in the charter of the Chicago association, for payment to it of a tax of 2 per cent of all premiums on insurance effected against loss by fire in Springfield (Private Laws of 1867, Vol. 1, p. 143). Payments to Families of Volunteers in the Civil War. At the time of the Civil War numerous statutes authorized or ratified payments by specified counties for the support of the families of volunteers. (See, for example, Laws of 1863, pp. 39, 40, 56; Private Laws of 1865, pp. 106, 112, 118, 123). General Pensions for Policemen and Firemen. The first general Illinois pension law was the act of 1874, men- tioned above. It authorized cities to establish funds for the benefit of policemen and firemen disabled in discharge of duty, and for their dependents if they were killed. The act was revised in 1877. The revised act established a scheme to which later pension laws have in the main adhered. It provided that the fund, set apart in the city treasury, should be administered by a pension board with power to determine finally the right of an applicant to a pension and to order its payment; and that the fund should be maintained partly from a small assessment levied on the salaries of members of the force, and partly by the setting aside of specified items of city revenue. These were items in which the beneficiaries of the fund were especially con- cerned, such as fines for violating department rules, or the proceeds of which their interested vigilance was perhaps thought likely to in- crease, such as fines for violating fire ordinances, and the proceeds of the sales of stolen goods. Where a policeman or fireman was killed in course of duty or died after long service, a pension was granted to his widow while unmarried, or to his children while under 16. In 1887 the law was again revised. The funds for policemen and firemen in cities of 50,000 were separated and put under the management of different boards. A pension was granted for super- annuation. In 1907, the firemen's act was extended to cities and towns of 5,000. In 1909, a distinct law was passed for police pension funds in cities of 20,000 to 50,000, and in 1913 the law was extended to cities and towns of 9,000. In 1915, a separate statute regulated police pensions in cities of 200,000. Pensions for policemen employed by park commissions were established in 1911. Pensions for Teachers and Employees in Public Schools. In 1895, a pension system was provided for teachers and em- ployees in public schools. The law applied only to cities of 100,000, and so was limited to Chicago. In 1903, the employees' pension fund was separated from the teachers' fund, and regulated by a different and in some respects more liberal law. In 1907, the teachers' pension fund law was revised. The revised law, speaking generally, permits retirement after 25 years of teaching on a pension of $400, and, in case of disability, after 15 years of teaching with a pension proportioned to the time of service. Statutes of 1911 and 1913 authorized the estab- lishment of similar pensions in districts of 1,000 to 100,000, and by 38 an act of 1915 a State pension fund was created to be administered substantially as is the Chicago fund, but by a State board and for the benefit of teachers in all public schools of the State except in Chicago and Peoria, where the former pension system remains in force. The State fund is supported by deductions from salaries and by a one- tenth mill tax on property in the school districts affected. Pensions for Other Classes of Public Employees. In 1905, a law was passed for a pension fund for waterworks employees in Chicago, and in the same year an act for a fund for such employees of Chicago public libraries as should choose to con- tribute to its support. In 1911, acts were passed for pension funds for municipal employees under civil service, in Chicago, and for house of correction employees ; and in 1914, for officers and employees of counties having a population exceeding 150,000. Provisions for Other Forms of Relief. Reference should also be made to several other statutes which, without providing for the maintenance of a pension fund, do never- theless provide for the payment of public money by way of relief because of service in public employment when, except for the statutes, .there would often be no liability ; namely, the act for relief to indigent soldiers and sailors (Laws of 1895, p. 83), the Military Code (Laws^ of 1901, p. 143), and the Workmen's Compensation Act (Laws of* 1913, p. 337). The act for pensioning fire insurance patrolmen (R. S., Chap. 24, Sees. 423-434) should also be mentioned, as, though the patrolmen are not engaged in public employment, nor are their pen- sions paid out of public money, the pensions are regulated and the fund is maintained by assessments made by authority of the statute. Tables designed to show in detail the history of pension legisla- tion in Illinois, including the acts last referred to, are given in Ap- pendix "A." The acts for relief of the poor (R. S., Chap. 107), of the blind (R. S., Chap. 23, Sees. 245-253) and of mothers (R. S., Chap. 23, Sees. 289-316) are not included, as it is conceived they are not properly pension laws, since the right to relief is not based on service. SOURCES OF REVENUE. It will be observed from the above mentioned tables that there appears a tendency to increase slightly from time to time the percentage of salary to be contributed by the beneficiaries. But much more strik- ing are the successive increases made in the amounts drawn from other sources. The act of 1874 establishing a joint fund for policemen and firemen was amended in 1875, 1877, 1879, 1883 and 1901, and each time a new source of revenue was added. The firemen's fund established under the act of 1887 received accessions of revenue from new sources, or by increase of amounts to be set aside from old sources, in 1889, 3901, 1905, 1907 and 1915; the police fund of 1887, in 1903 and 1911 ; the school employees' fund of 1895, in 1907 and 1913 ; the municipal 39 employees' fund of 1911, in 1915; and the houses of correction em- ployees' fund of 1911, in 1915. The Legislature of 1915, in revising the law for pensions for firemen and park policemen, and in establish- ing new pension funds for Chicago policemen and for school teachers, made a new departure in authorizing local general property taxes, not to exceed specified rates which vary from one-twenty-fifth to seven- tenths of a mill on the dollar, as one source of revenue for the funds. REFUNDS. Most of the pension laws provide for a return of all or part of the contributions made to the fund by an employee who resigns or whose position is abolished before he becomes entitled to a pension. But there is no provision for a return to policemen or firemen. Pen- sions for these two groups were the first to be established, and per- haps the matter was not then thought of. But even in recent provi- sions and extensions of policemen's and firemen's pensions there is no provision for refunding contributions. AGE AND PERIOD OF SERVICE. The first laws to provide for retirement on pension after a stated period of service were the acts of 1887 for policemen and firemen in cities of 50,000. The period of service for policemen was 20 years, and this with few exceptions has been the period fixed under other pension funds. For teachers, however, the time is 25 years. The time for firemen was 25 years at first, but was reduced to 22 years in 1889, and to 20 years in 1913. It was a condition in the acts of 1887 that the retiring pensioner must be 50 years old. Whether age as well as length of service should be a condition for retirement involves a question of public policy, and its answer, moreover, must considerably affect the demands on the pension fund. Yet it is hard to detect in the statutes any indication of a policy upon the point. In 1895, a pension law for teachers and employees of Chicago public schools permitted retirement after 20 or 25 years of service without regard to age. In 1903, the public school employees were given, in addition, a right to retire at 55 after only 10 years of service. In 1905, acts for waterworks employees of Chicago and for fire insur- ance patrolmen gave a right to retire after 20 years of service to per- sons aged only 50. But the Chicago public libraries act of the same year followed the plan of the act for public school employees and allowed retirement after 20 years of service without regard to age, or after 10 years of service at 55. In 1907, the age limit as to firemen was struck out even as to cities and towns of 5,000 to 50,000, to which in that year firemen's pensions were extended. Yet in 1909, in extend- ing policemen's pensions to cities of 20,000 to 50,000, the age limit of 50 was preserved and still exists; though in 1911, it was struck out as^ to cities of over 50,000. The park policemen's act of 1911 con- tained no age limit, but in the act of the same year for employees of houses of Correction there was an age limit of 50, and the 1911 law for municipal employees placed the age, with some qualifications, at 40 55. In 1915, the houses of correction act was amended by striking out the age limit of 50, and the park policemen's act amended by inserting an age limit of 50. The teachers' pension act of that year, applying outside of Chicago and Peoria, limited the right to retire to teachers 50 years old; but no such condition was imposed as to Chi- cago or Peoria teachers. The county employees' act of 1915 fixed, with qualifications, the age for retirement at 55. The present situation, therefore, is that one may retire on a pension as soon as he has completed a fixed term of service, though under 50, if he is a fireman, but not if he is a fire insurance patrol- man ; if he is a policeman in a city of 50,000, but not if he is a police- man in a city of less than 50,000 or a park policeman ; if he is a teacher in Chicago or Peoria, but not if he is a teacher in any other city; or if he is employed by Chicago in a school, library or house of correc- tion, but not if otherwise employed by the city, or if employed by Cook County. PENSIONS TO SURVIVORS. Liberal pensions have been provided for widows and children of firemen, policemen and employees of houses of correction ; slighter relief (not over one year's benefit) for widows and children of public school and library employees; and none at all for widows or children of teachers or, .under present laws, of municipal and county employees. This difference of treatment is continued through the most recent enactments. In 1915, allowances to surviving dependents were con- tinued, and in some instances increased, in case of firemen, Chicago policemen, park policemen and employees of houses of correction; while laws which contained no such allowances were passed concern- ing pensions for teachers and municipal and county employees. Sec- tion 5 of the Workmen's Compensation Act excludes from its benefits employees of a municipality to whom or to whose representatives a pension is payable in case of accidental injury or death; and if Chi- cago elects to come under the act, it would seem that the fact that the widow of a Chicago public school or library employee is entitled under the pension law to a sum equal to one year's retiring allowance will exclude her from the compensation equal to four years' full earn- ings which she might receive under the workmen's act, if the pension law were not in existence. Moreover, it is perhaps questionable whether school teachers and municipal and county employees who have served long enough to be entitled to retire on a pension for dis- ability caused by accident are not thereby put outside the scope of the Workmen's Compensation Act altogether, so that in case of death by accident their dependents would be wholly without relief. Where pensions are provided for survivors, the conditions on which they are granted vary considerably. Under the act of 1871 for policemen and firemen, pensions were limited to cases of death from injury received in discharge of duty. But in the revision of 1877, provision was also made for survivors when the policeman or fireman died in service after ten years of service, whatever the cause of death. There is still no pension for survivors of a policeman who has served less than ten years unless death is traceable to service. 41 On the other hand, pensions to survivors on death in service, however short the service has been" and whatever the cause of death, were provided in the revision of the public school employees' act in 1903 ; in the establishment of the public library and houses of correc- tion pension systems in 1905 and 1911 ; and in the revision of the firemen's pension law in 1915. The water works employees' act of 1905 allowed a pension on death after three years of service. As to death after retirement on pension, the act of 1887 made provision for survivors in every case where a pensioned fireman died, but not until 1899 were pensions given to survivors of policemen pen- sioned after twenty years of service, and not until 1913 to survivors of policemen pensioned for disability, and then only in cities of 50,000 or more population. The houses of correction law gives substantial pensions to sur- vivors in case of death in service or in retirement on pension. The school employees' and library employees' laws provide relief for sur- vivors in case of death in service but not in case of death in retirement. It has already been remarked that survivors of school teachers or of municipal or county employees are not provided for at all. CHAPTER IV- SURVEY OF PENSION LAWS IN FORCE IN ILLINOIS JANUARY 1, 1916, FOR PUBLIC SERVICE EM- PLOYEES* AND COMPARATIVE REFERENCES TO PROVISIONS IN PENSION LAWS IN OTHER STATES FOR SUCH EMPLOYEES. The Historical Sketch of the Laws of Illinois, as given in chapter III, page 36, together with the Tabular Digest of Appendix "A," reveals the fact that beginning with the year 1852 a large number and variety of pension laws have been placed on the statute books of this State. Some of these laws have been revised, in some instances a number of times; others have become dead-letters; one has not been put in force at date of this writing ; and others are still effective in full. The result of this legislation has been that on Jan- uary 1, 1916, there were in force, or likely to become in force, eighteen laws, exclusive of the law for the relief of mothers and the one for the relief of the blind, which are sometimes popularly referred to as pension laws. Of these eighteen, seventeen were either by way of payment of public money for public service rendered, or of creating and regulating, liability for injuries received in discharge of duty, and one was for regulating pensions and maintaining funds by assess- ments in the case of a private concern. Of these the Military Code (Laws of 1901, p. 143) and the Workmen's Compensation Act (Laws of 1913, p. 337) are really not pension laws, inasmuch as their prime object is the determination and regulation of liability in the event of injury, while the act for the relief of army and navy veterans (Laws of 1895, p. 83) merely creates machinery for providing relief to such persons in indigent circumstan- ces different from that created in the cases of other persons in need. The elimination of these three leaves fifteen laws on the statute books on January 1, 1916, and to these the Tabular Digest of Appendix "B" refers. Among these fifteen laws, three deserve special mention: The Park Police Act of 1915 requires, to be in effect for any particular park, the consent, to such act, of the board of park com- missioners for such park, expressed by resolution or otherwise, and recorded in the office of the recorder of deeds of the county in which the park is situated. Such consent was not recorded in the case of any park on January 1, 1916. This act was, therefore, not in effect on that date, and indeed was not in effect on December 1, 1916. * Illinois laws included in this survey are summarized in the tabular digest comprising Appendix "B." 43 The County Employees' Act was declared invalid in the Superior Court of Cook County on August 2, 1916, and the amounts paid into the funds were ordered returned to the contributors. The Fire Insurance Patrolmen's Act does not involve the ex- penditure of public money. It is given in the Tabular Digest for the sake of completeness and also to call attention especially to the fact that this is the only act on the statute books of this State regulating the payment of pensions in private, as distinguished from public, institutions. The object of this chapter is to take a brief survey of the pro visions of these laws, with references to provisions in the laws of other states regulating payment of pensions to public service em- ployees. The references to the laws of other states are taken from Ap- pendix "B" of the Report of the Commission on Pensions for the Commonwealth of Massachusetts, published in 1914, entitled "Digest of Pension Legislation relating to State, County and Municipal Em- ployees of all States in the United States," and an extension of this report brought down to August 1, 1916, by the Legislative Reference Bureau of Illinois. From these sources we find that the following pension legislation has been enacted in the different states of the United States : State and city. Legislation. Beneficiaries. Alabama. Arizona. Arkansas. California. Oakland. Colorado. Denver. Connecticut. Bridgeport. New Haven. New London. Delaware. Wilmington. Gen. Laws of 1911, No. 254, Sec. 18%. Applies to cities of 25,000 to 50,000. Acts of 1911, No. 431. Applies to all cities over 25,000. Acts of 1911, No. 254. Applies to all cities of 25,000 to 50,000. Acts of 1911, No. 431. Applies to all cities over 25,000. Acts of 1915. Applies to counties having a popu- lation of 80,000 and not exceeding 82,000. Session Laws, 1912. Applies to entire state. Acts of 1915. No legislation. Acts of 1901, Ch. 87, amended by Acts of 1903, Ch. 143. Applies to entire state. Acts of 1897, Ch. 57, amending Acts of 1889, Ch. 62, as further amended by Acts of 1891, Chs. 210, 248. Applies to entire state. Acts of 1913, Ch. 694. City Charter of 1910. City Charter of 1910. Acts of 1909, Ch. 214. Applies to Denver. Acts of 1903, Ch. 172, and City Charter of 1904. Act applies to cities of over 100,000. Acts of 1913, Ch. 120. Applies to cities of over 100,000. Acts of 1893, Ch. 115. Applies to all cities hav- ing police department under police commis- sion, which shall accept it. City Charter of 1907. Special Acts of 1907, revising City Charter. Acts of 1894. -Vets of 1894. Acts of 1911, Special Act amending charter. Acts of 1911, No. 461. No state-wide legislation. Acts of 1907, Ch. 185, and amendments. Acts of 1911, Ch. 208, amending Acts of 1913, Ch. 210. Firemen. Firemen. Policemen, Policemen. Teachers. Teachers. Firemen. Firemen. Policemen. Teachers. Firemen. Policemen. Teachers. Firemen. Policemen. Policemen. Firemen. Policemen. Firemen. Policemen. Teachers. Teachers. Policemen. Teachers. 4 PL 44 State and city. Legislation. Beneficiaries. Florida. Georgia. Atlanta. Idaho. Illinois. Indiana. Indianapolis. Terre Haute. Iowa. Kansas. Kentucky. Louisville. Louisiana. New Orleans. Maine. Portland. Maryland. Baltimore. Massachusetts. No legislation. No state-wide legislation. Acts of 1910, amending City Charter, and Amend- ment of 1912. Laws of 1910, amending City Charter. Acts of 1912, amending City Charter. No legislation. See Appendix A, p. , and Appendix B, p. Acts of 1905, Ch. 129, as amended by Acts of 1913, Ch. 52. Applies to all first- and second- class cities, and all third- fourth- and fifth- class cities which accept it. Acts of 1913, Ch. 334. Applies to cities of 20,000 to 100,000. Acts of 1815. Acts of 1908 as amended by Acts of 1913, Ch 128. Applies to cities of first and second class and to all other cities which accept it. Acts of 1907. Applies to cities of 100,000 or over. Acts of 1913, Ch. 77. Applies to cities of 55,000 to 60,000. Laws of 34th G. A., Ch. 61, and subsequent amendments. Mandatory on cities having paid department ; permissive on cities having an organized department. Laws of 34th G. A., Ch. 51, amending Laws of 33d G. A., Ch. 62. Applies to entire state. Acts of 1911, Ch. 280. Applies to cities of the first class. Acts of 1915. Acts of 1915. Acts of 1912, Ch. 129. Applies to all first-class cities. Acts of 1912, Ch. 122. Mandatory on all first- class cities. Acts of 1912, Ch. 112. Applies to all first-class cities. Acts of 1914. Acts of 1910, Ch. 277. Applies to Supreme Court judges. Acts of 1888, No. 63. Acts of 1910, Act No. 116. Applies to Parish of Orleans. Acts of 1912, Act No. 152, amending Acts of 1902, Act No. 43. Acts of 1911, Ch. 198, amending Acts of 1909, Ch. 132. Applies to Supreme Court and Su- perior Court judges. Acts of 1913, Ch. 75. Applies to entire state. Acts of 1906. Special Acts' of 1909, Ch. 356. Acts of 1904, Ch. 236. Applies to judges of Cir- cuit Court, Supreme Court of Baltimore and Court of Appeals. Acts of 1912, Ch. 135. Applies to entire state. Acts of 1912, Ch. 463. Applies to Alleghany Co. Acts of 1915. Gives board power to waive age limit where it thinks proper. Acts of 1886, Ch. 459, and amendments. City Charter of 1900, Sects. 70 and 445. Acts of 1912. Relief Fund. Acts of 1890, Ch. 450, amended by Acts of 1902, Ch. 108, and Acts of 1906, Ch. 171. Applies to whole state. Acts of 1898, Ch. 267, and subsequent laws. Applies to all cities and towns except those having pension systems under special Acts. R. L. of 1902, Ch. 108, Sects. 29-30, with amend- ments. Applies to cities of over 75,000 inhabit- ants except Boston. R. L. of 1902, Ch. 108, Sect. 31, with amendments. Applies to all cities and towns not having pen- sion systems, upon acceptance. Acts of 1908, Ch. 498. Applies to all cities and towns accepting act, except Boston. Acts of 1913, Ch. 832. Applies to entire state, except Boston. Firemen. Policemen. Teachers. Firemen. Teachers. Teachers. Policemen. Teachers. Teachers. Firemen. Policemen. Teachers. Firemen. Policemen. Teachers. Firemen. Policemen. Teachers. Judges. Policemen, Teachers. Firemen. Judges. Teachers. Policemen. Firemen. Judges. Teachers. Teachers. Teachers. Policemen. Firemen. Teachers. Firemen. Firemen. Policemen. Policemen. Teachers. Teachers. 45 State and city. Legislation. Beneficiaries. Acts of 1885, Ch. 162 and subsequent Acts. Ap- Judges. plies to all judges. Acts of 1909, Ch. 453, amended by Acts of 1913, Metropoll- Ch. 545. tan park po- licemen. Acts of 1911, Ch. 675. District police- men. Acts of 1911, Ch. 532, and subsequent Acts. Ap- All public serv- plies to all employees of Commonwealth ex- ice employees cepting those entering service after 55 years of of state. age who are prohibited from remaining in ser- vice after reaching age of 70 years. Acts of 1911, Ch. 634, and subsequent Acts. Ap- All public serv- plies to counties accepting it. ice county em- ployees. Acts of 1910, Ch. 619, and amending Acts of 1911, All public serv- Ch. 338. Applies to all cities and towns after ice employees acceptance, except Boston. of cities and towns. Acts of 1912, Ch. 503, as amended by Acts of All public serv- 1913, Ch. 671. Applies to all cities and towns, ice employees except Boston, accepting it. of cities and towns. Acts of 1907, Ch. 458. Civil War vet- e r a n s, em- ployees of state. Acts of 1912, Ch. 447. Civil War vet- erans, em- ployees of cities and towns. Acts of 1909, Ch. 398. Civil War vet- e r a n s, em- ployees of counties. Acts of 1908, Ch. 601, and amendments. Ap- Prison officers. plicable to prison officers and instructors who began employment previous to June 7, 1911. Boston. Acts of 1878, Ch. 244, and amendments. Policemen. Acts of 1880, Ch. 107, and subsequent Acts. Firemen. Acts of 1900, Ch. 237, and amendments. Teachers. Acts of 1911, Ch. 413, and amendments. Public service employees o t Boston. Acts of 1911, Ch. 113, and amendments. Civil War vet- e r a n s, em- ployees of Boston. Michigan. Public Laws of 1913, p. 787. This is a concur- rent resolution proposing an amendment to Sec. Firemen. 14 of Art. 10 of the Constitution of the state relative to pensioning firemen. Act of 1915. Teachers. Detroit. Local Acts of 1885, No. 386. Firemen. Acts of 1893. Policemen. Acts of 1907, amending charter. Teachers. Grand Rapids. Local Acts of 1891, No. 309. Firemen. Minnesota. Acts of 1911, Ch. 383. Applies to cities of 10,000 Teachers. or over. Acts of 1913, Ch. 318, amending Acts of 1907, Ch. Firemen. 24. Applies to cities of 50,000 or over. Acts of 1913, Ch. 290, amending Acts of 1903, Ch. Policemen. 159. Acts of 1913, Ch. 269. Applies to Supreme and District Court Judges. Judges. Acts of 1915. Policemen. St. Paul Acts of 1892. Firemen. Acts of 1903, Ch. 159, with amendments. Ap- Policemen. plies to cities of over 50,000. Minneapolis. Acts of 1892. Acts of 1903, Ch. 159, with amendments. Ap- Firemen. Policemen. plies to cities of over 50,000. Duluth. Under authority of "10,000 Population" Act. Under authority of "10,000 Population" Act. Teacners. Teachers. Mississippi. No legislation. ' t 46 State and city. Legislation. Beneficiaries. Missouri. St. Louis. Montana. Nebraska. Omaha. Nevada. New Hampshire. New Jersey. Jersey City. Elizabeth. Newark. New Mexico. New York. New York City. No state-wide legislation. R. S. of 1899, Sect 6411. Private Teachers' Association. Act of 1915. Comp. Stats, of 1911, Sects. 3555-3559. Applies to all first-class cities of less than 25,000, and second-class cities having organized volunteer companies. Comp. Stats, of 1911, Sects. 3561-3562. Applies to all metropolitan and first-class cities. R. L. of 1913, Art. 6, Sects. 3991-3999. Applies to all metropolitan cities. Acts of 1913, Ch. 152. Applies to public library employees in first-class cities. Acts of 1915. Applies to cities of first class hav- ing less than 25,000, or any city of the second class. Act of 1915, amending former Act. Acts of 1909. Acts of 1909, Ch. 132. Applies to all metropolitan cities. No legislation. Acts of 1907, Ch. 85, Sect. 1, and subsequent amendments, on acceptance by town or city. Applies to any town or city. Acts of 1907, Ch. 85, and subsequent amendments. Applies to entire state. Acts of 1915. Acts of 1885, Ch. 148, and amendments. Applies to all cities. Acts of 1885, Ch. 250, and amendments. Applies to all cities accepting provisions. Public Laws of 1902, Ch. 270, and subsequent amendments. Applies to all first class cities accepting Act. Acts of 1903, and amendments. Public Laws of 1905, Ch. 65, and subsequent amendments. Applies to all municipalities other than those of the first class, having paid fire departments. Acts of 1908, Ch. 74. Acts of 1908, Ch. 313, amended by Acts of 1911, Ch. 185. Applies to chancellor, chief justice and associate justices of Supreme Court. Acts of 1910, Ch. 48, amending Acts of 1895, Ch. 91. Applies to park police. Acts of 1912, Ch. 373, amending Laws of 1911, Ch. 72. Applies to all cities other than first class. Acts of 1913, Ch. 215. Applies to all cities hav- ing health boards, if adopted by two-thirds of employees. Act of 1916. Laws of 1902, Ch. 270, amended by Laws of 1908, Ch. 142, and Laws of 1912, Ch. 240. Acts of 1907. Acts of 1902. No legislation. Laws of 1909, Ch. 29. Applies to volunteer fire- men. Acts of 1885, Ch. 486, and amendments. Applies to cities of over 1,000,000 inhabitants. Acts of 1911, Ch. 449. Applies to entire state Acts of 1913, Ch. 138. First district. Acts of 1913, Ch. 185. Second and ninth districts Laws of 1901, Ch. 466, and amendments. Acts of 1857, Ch. 569, and subsequent acts. Acts of 1909, Ch. 505, and reenactments. Acts of 1901, Ch. 466, and amendments. Acts of 1901, Ch. 466, and amendments. Firemen. Teachers. Teachers. Firemen. Firemen. Policemen. Public library employees. Firemen. Policemen. Policemen. Teachers. Firemen. Policemen. Teachers. Policemen. Policemen. Firemen. Teachers. Firemen. Policemen. Judges. Park policemen. Policemen. Health Board employees. Policemen. Firemen. Policemen. Policemen. Firemen. Policemen. Teachers. Employees of Supreme Court. Employees of Supreme Court. Firemen. Policemen. Teachers. Street cleaners. Employees of Board of Health. 47 State and city. Legislation. Beneficiaries. Syracuse. Yonkers. Rochester. Buffalo. North Carolina. North Dakota. Ohio. Dayton. Cleveland. Cincinnati. Columbus. Springfield. Oklahoma. Oregon. Pennsylvania. Philadelphia. Pittsburg. Rhode Island. Pawtucket. Providence. South Carolina. Charleston. South Dakota. Tennessee. Chattanooga. Texas. Utah. Acts of 1911, Ch. 669, and Acts of 1912, Ch. 47y. Applicable to employees not eligible under other systems. Laws of 1905, Ch. 683, and amendments. Laws of 1908, Ch. 452. Acts of 1907, Ch. 755. City Charter of 1907, and amendments. City Charter of 1907, and amendments. No legislation. Acts of 1910. Ch. 123. Applies to entire state. Acts of 1913, Ch. 251. General Code of 1910, Sects. 4600-4615. Applies to all cities and towns having a fire department supported in whole or in part at public expense. General Code of 1910, Sects. 4616-4631. Applies to all cities and towns having departments sup- ported in whole or in part at public expense. General Code of 1910, Sects. 4632-4647. Applies to all cities and towns having: sanitary police departments supported in whole or in part at public expense. Acts of 1911, S. B. 142, amending Sects. 7877-7878- 7891 of General Code. Applies to entire state. Act of 1915, amending previous Act. Act of 1915, amending previous Act. General Code of 1910, H. B. No. 934. General Code of 1910. Acts of 1892. Acts of 1903. Acts of 1904. Laws of 1913, Ch. 244. Applies to all incorpo- rated cities and towns. Acts of 1913, Ch. 287. Applies to all cities over 50,000. Acts of 1913, Ch. 58, amending Acts of 1911, Ch. 280. Applies to all districts having more than 10,000 children of school age. Acts of 1893, No. 82. Acts of 1913, No. 849, amending Acts of 1901, No. 14. Applies to cities of second class. Acts of 1913, No. 849, amending Acts of 1901, No. 14. Applies to second-class cities. Penn. School Code of 1911. Acts of 1913, No. 461. Applies to all first-class cities. Laws of 1913, No. 38. Applies to all second-class cities. Act of 1915. Applies to counties having a population of less than 1,500,000 and more than 1,000,000. Acts of 1874. Acts of 1891. Penn. School Code of 1911. Acts of 1893. General Laws of 1909, Ch. 274. Applies to Su- preme and Superior Court judges. General Laws of 1909, p. 1350. School Laws of 1910, pp. 27 and 94. Act of 1915, amending previous Acts. Act of 1916, authorizing City of Providence to establish a retirement board with power to pre- scribe what class of employees may be retired. Public Laws of 1913, Ch. 1007. Acts of 1896, Ch. 372, and Acts of 1913, Ch. 977. Acts of 1897, Ch. 485. Acts of 1901, Ch. 930, as amended by Acts of 1911, Ch. 734 and Ch. 976. Acts of 1898 and 1902. City Ordinance of 1902. City Ordinance of 1904, and amendments. No legislation. No state-wide legislation. Acts of 1909, Ch. 408, as amended by Acts of 1911, Ch. 2. Acts of 1907. Acts of 1911, Ch. 146. Applies to all cities and towns having equipment of over $500. Laws of 1913, Ch. 91. Public service employees. Firemen. Firemen. Policemen. Teachers. Teachers. Firemen. Teachers. Firemen. Policemen. Policemen. Teachers. Firemen. Policemen. Firemen. Firemen. Policemen. Policemen. Policemen. Firemen. Policemen. Teachers. Policemen. Firemen. Policemen. Teachers. Municipal employees. Municipal employees. County employ- ees. Firemen. Policemen. Teachers. Policemen. Judges. Firemen. Teachers. Teachers. Various. Firemen. Firemen. Teachers. Policemen. Teachers. Policemen. Firemen. Firemen. Firemen. Firemen. Teachers. 48 State and city. Legislation. Beneficiaries. Vermont. Acts of 1912, No. 70. Teachers. Act of 1915. Teachers. Virginia. Acts of 1908, Ch. 181. Firemen. Acts of 1910, Ch. 97. Teachers. Richmond. Acts of 1898. Policemen. Washington. Acts of 1909. Applies to all cities and towns. Firemen. Acts of 1909, Ch. 39, as amended by Acts of 1911, Policemen. Ch. 18. Applies to all first-class cities. Bill No. 48, Acts of 1913. A eacners. Acts of 1915, amending previous Acts. Policemen. West Virginia. Act of 1915. Teachers. Wisconsin. Acts of 1907, Ch. 214. Applies to all second-, Firemen. third- and fourth-class cities. Acts of 1907, Ch. 87. Applies to all first-class cities. Firemen. Acts of 1907, Ch. 671. Applies to all second- and Policemen. third-class cities. Acts of 1911, Ch. 323, and amendments. Teachers. Milwaukee. Acts of 1899. Firemen. Acts of 1891. Policemen. Acts of 1909, Ch. 510, and amendments. Teachers. Wyoming. No legislation. MANAGEMENT. Under the laws regulating pensions in this State, except those of the private fund, both employing body and employee are repre- sented on the board of trustees in charge of the fund. Here, how- ever, uniformity ceases. In point of numbers and in method of se- lection of members, the different boards present a great variety. In some instances the employing body or a city official appoints a ma- jority of the members; in others, the employees and beneficiaries, voting separately or together, elect a majority; and in others certain officials are ex officio members of the board. The following table exhibits in outline the number and compo- sition of the several boards of trustees : Beneficiaries. Number of trustees. Number who are trustees by virtue of office held. i t^- 7- OrQ 5 >>o 3 Number elected by employees. Number elected by beneficiaries. ill Firemen 8 4 3 Chicago policemen 5 3 1 Policemen in cities of 50,000 or over Policemen in cities of 9,000 to 50,000 Park policemen (Act of 1913).. 5 3 5 3 2 3 1 1 1 1 Park policemen (Act of 1915) 5 3 1 Fire insurance patrolmen 5 5 County employees 5 2 3 5 2 3 Public school emplo > ees 6 2 4 Public library employees 5 2 "3 Houses of correction employees 5 2 2 1 State teachers . 5 2 Chicago teachers 9 1 6 3 3 or 9 iof Iof no. no. iQne of the these must be a member of the board of trustees of the library. a Two members are elected by the board of education from among their own number. 49 In each of the following cases, the treasurer of. the city, county or State, as the case may be, is custodian of the fund : Firemen; policemen in cities of 9,000 to 50,000 inhabitants; county employees; municipal employees of Chicago; public school employees; pub- lic library employees; houses of correction employees; State teachers; Chi- cago teachers; Peoria teachers. In each of the following cases the treasurer is appointed or elected by the board of trustees of the fund : Chicago policemen; policemen in cities of 50,000 or more inhabitants; park policemen (Act of 1913); park policemen (Act of 1915); fire insur- ance patrolmen. The terms of office for employees or beneficiaries elected to the several boards are, in the case of the Peoria teachers, fixed by the governing board of the school district, and in the other cases fixed by statute, at terms varying from one to three years. In the State of Illinois, in all instances, except that of the fire insurance patrolmen's fund, the employees contribute directly by deduc- tions from salaries and are represented on the board of management. In the exception noted, the employees do not contribute directly from salaries and are not represented on the board. It seems to be a principle recognized generally in all states that when the employees contribute directly from salaries, they are represented on the board of manage- ment of the fund, and that when they do not so contribute they are not so represented. The following exceptions, among others, however, may be noted: Cases in which the employees do not contribute directly from salaries to the fund but are represented on the board of manage- ment: For Firemen: Ohio (Dayton) ; Oklahoma. For Policemen: South Carolina (Charleston); Oregon. For Teachers: Louisiana (New Orleans). Cases in which employees contribute directly from their salaries to the fund, but are not represented on the board of management : For Firemen: California (Oakland); Connecticut (Bridgeport and New Haven); Ken- tucky (Louisville); Rhode Island (Providence). For Policemen: California (state-wide); Colorado (Denver); Connecticut (Bridgeport and New Haven); Delaware (Wilmington); Iowa (state-wide); Kentucky (Louisville); Maryland (Baltimore); New Jersey (Elizabeth and Newark); Oregon; Pennsylvania; Rhode Island (Providence). For Teachers: Connecticut (New Haven and New London); Kansas; Nebraska; Vir- ginia. SOURCES OF REVENUE CONTRIBUTIONS FROM EMPLOYEES. As already stated, the employees contribute directly from sal- aries to pensions, under all pension acts involving the expenditure of public money in the State of Illinois. This practice is by no means universal in this country. Out of 177 acts investigated, 65, or about 37 per cent, do not provide for direct contributions from salaries of employees. Among these may be mentioned: For Firemen: Alabama;. California (except Oakland); Colorado (Denver); Georgia (Atlanta); Maine (Portland); Maryland (Baltimore); Massachusetts (Bos- 50 ton); Michigan (Grand Rapids); Minnesota; Nebraska; New Hampshire; New York (New York City, Yonkers) ; North Dakota; Ohio (Dayton); Oklahoma; Pennsylvania (Pittsburg); South Carolina (Charleston); Ten- nessee (Chattanooga); Utah; Virginia. For Policemen: Alabama; Connecticut (except Bridgeport and New Haven) ; Louisiana (New Orleans); Maine (Portland); Massachusetts (Boston); Minnesota; New Hampshire; New York (New York City); Pennsylvania (except Phila- delphia and Pittsburg); South Carolina (Charleston). For Teachers: Alabama; Arizona (state-wide) ; California (state-wide) ; Colorado (Den- ver) ; Georgia (Atlanta); Maine (state-wide); Maryland (except Baltimore and Alleghany County); New York (state-wide); Oregon; Rhode Island (except Providence); South Carolina. The contributions, viewed in themselves, offer rather a wide divergence among the several funds. Considered in connection with the benefits offered, the divergence is still wider. In four funds for which figures regarding the expected future payments were obtained, we find that in the case of the firemen's fund of Chicago, employees con- tribute 1 per cent of salaries, whereas benefits are worth 15.87 per cent of salaries; the Chicago police contribute 2 per cent of salaries, whereas benefits are worth 13.6 per cent of salaries; the Chicago male teachers contribute on the average 0.9 per cent of salaries, whereas benefits are on the average worth 0.93 per cent of salaries; and the Chicago female teachers contribute on the average from 1.5 to 1.6 per cent of salaries, whereas benefits on the average are worth 2.95 per cent of salaries. Stating these results in terms of dollars: For each $100 contributed from salaries, there must be provided from other sources, if pensions will continue to be paid on the present basis : For Chicago firemen 1 $1,487 For Chicago policemen 1 , 630 For Chicago male teachers 1 3 For Chicago female teachers 1 87 These figures were compiled from the actual results found in our investigations of these funds, where the number of employees was large enough, and the pension experience long enough, to enable us to make an actuarial determination of the expected future payments. A comparison between these and the small funds with little or no pension experience can not be made. SOURCES OF REVENUE CONTRIBUTIONS FROM SOURCES OTHER THAN .SALARIES OF EMPLOYEES. The public moneys appropriated in Illinois towards the pension funds, in no case, before the year 1915, took the form of a direct tax, but consisted of all, or part, of the moneys accruing from certain specified sources. In the year 1915 provisions were made by the Legislature for spreading a direct tax for the maintenance of the funds for firemen, Chicago policemen, park policemen (Act of 1915), and State teachers, and at the same session, it was made manda- tory on the city of Chicago to contribute certain predetermined 1 This applies only to employees who begin contributing 1 when they begin their service. It does not take care of accrued liabilities on those who have years of service that count toward pension when they begin contributing. 51 amounts towards the maintenance of the Chicago municipal fund. In the case of the State teachers' act, this provision is in force without limitation of time. Under the acts for firemen and policemen, just mentioned, it is in force , for a period of three years from July 1, 1915, and under the act for municipal employees of Chicago, for two years from January 1, 1916. Regarding this provision there is an entire lack of harmony in the laws of this country. In some of the leading cities and in some cases where legislation is state-wide, moneys accruing from specified sources are diverted to pension purposes, whereas in other such in- stances provision is made for a direct tax. Among those diverting money from specific sources may be mentioned : For Firemen: Colorado (Denver); Connecticut (New Haven) ; Kentucky (Louisville); Louisiana (New Orleans); Massachusetts (Boston); Minnesota (St. Paul, Minneapolis); Missouri (St. Louis); New Jersey; New York (New York City, Syracuse, Yonkers) ; Ohio; Oklahoma (all incorporated cities and towns); Pennsylvania (Pittsburg); Rhode Island (Providence); South Carolina (Charleston); Tennessee (Chattanooga); Texas; Washington; Wis- consin. For Policemen: California (state-wide, except Oakland) ; Colorado (Denver); Delaware (Wilmington) ; Nebraska (Omaha) ; Louisiana (New Orleans) ; Maryland (Baltimore); Michigan (Detroit); Nebraska; New York (New York City, Rochester) ; Ohio (Cincinnati, Columbus, Springfield) ; Oregon; Pennsylvania (Pittsburg); Rhode Island (Providence); South Carolina (Charleston); Washington (all first-class cities) ; Wisconsin. For Teachers : California (state-wide); Connecticut (New Haven, New London); Delaware (Wilmington); Maine (state-wide); Nebraska (Omaha); North Dakota; Ohio (state-wide); Oregon (districts of more than 10,000 children of school age); South Carolina (Charleston). Among those spreading a direct tax may be mentioned : For Firemen: Colorado (Denver); Indiana (first- and second-class cities; optional to others); Kentucky (Louisville); Minnesota (Minneapolis); Ohio; Washing- ton. For Policemen: Colorado (cities over 100,000); Indiana (Indianapolis); Iowa (state- wide); Kentucky (all first-class cities); Minnesota; Ohio (except Spring- field). For Teachers: Colorado (Denver); Indiana (cities over 20,000); Massachusetts (Bos ton); Minnesota (cities of 10,000 and over). Among those providing both for the diversion of moneys ac- cruing from specific sources and for a direct tax may be men- tioned : For Firemen: Colorado (Denver); Kentucky (Louisville); Minnesota (Minneapolis); Ohio; Washington. For Policemen: Colorado (cities over 100,000); Iowa; Kentucky (all first-class cities). SOURCES OF REVENUE COMBINATION OF ALL SOURCES. Obviously if a fund is to remain solvent, the amounts in the fund at any specified time, together with those to be received from all sources, must be sufficient at all times to meet the disbursements provided for in the act. In no case in this State has any provision been made to preserve this balance. In several funds of other states the same condition exists, no provision for solvency being made. Among these may be mentioned : For Firemen: Colorado (Denver); Connecticut (New Haven); Indiana; Kentucky (Louisville); Louisiana (New Orleans); Missouri (St. Louis); New Jersey; New York (New York City, Syracuse, Yonkers) ; Ohio; Oklahoma (all incorporated cities and towns); Pennsylvania; South Carolina (Charleston); Tennessee; Texas; Utah; Virginia; Washington; Wisconsin (all first-class cities). For Policemen: Connecticut (Bridgeport); Delaware (Wilmington); Indiana (Indian- apolis); Iowa; Kentucky (all first-class cities); Louisiana (New Orleans); Minnesota; Nebraska; New York (Rochester); Ohio (except Springfield); Oregon (cities over 50,000); Rhode Island (Providence); South Carolina (Charleston); Virginia (Richmond); Washington (all first-class cities); Wisconsin (all first-class cities). For Teachers: Colorado (Denver); Delaware (Wilmington); Indiana (cities over 20,000); Kentucky (all first-class cities); Louisiana (New Orleans); Maine (state-wide); Massachusetts; Michigan (Detroit); Minnesota (cities of 10,000 and over); Missouri (St. Louis); Nebraska (Omaha); New Jersey; North Dakota; Ohio; Oregon (districts having more than 10,000 children of school age); Pennsylvania; Rhode Island (Providence); South Carolina (Charleston); Utah (state-wide); Washington; Wisconsin. In contrast to the lack of any provision in this State for main- taining the solvency of a fund, are the provisions in the laws of several other states providing specifically for the preservation of the fund. In the cases of the following funds, among others, it is pro- vided that some public authority, designated in each instance, shall contribute the amount or balance necessary to pay the pensions prom- ised. For Firemen: California (state-wide); Connecticut (Bridgeport); Georgia (Atlanta); Maryland (Baltimore); Massachusetts; Michigan (Grand Rapids, Detroit); Minnesota (St. Paul); New Hampshire; North Dakota; Rhode Island (Provi- dence). For Policemen: California (Oakland); Georgia (Atlanta); Maryland (Baltimore); Mas- sachusetts; Michigan (Detroit); New Hampshire (state-wide); New York (New York City); Ohio (Springfield). For Teachers: Arizona; Georgia (Atlanta) ; Kansas (cities of first class) ; Maryland (Alleghany County); Massachusetts (except Boston); New York (except New York City, Rochester and Buffalo); Rhode Island (except Providence). LIMITATIONS OF PAYMENTS BY EMPLOYEES. In all 'Illinois funds, with the exception of the one for State teachers, to which payments cease when the sum of $400 has been 53 contributed, deductions are made from salaries from date of entrance into service to date of pension without regard to the number of years of service. In the case of policemen in cities of from 9,000 to 50,000 inhabitants, deductions are also made from pensions. In the case of State teachers and Chicago teachers, a minimum amount must be paid as a requirement for a service pension ; in the one $400,' in the other $450. In the case of the municipal employees of Chicago, if the sum of $480 is not contributed at the time of en- trance to a service pension, the balance with 5 per cent interest is deducted from the pension in equal amounts during the first three years following the granting of such pensions. In the case of public library employees, the minimum amount required is the equivalent of five years' contributions. In no other fund is a minimum amount in contributions required from an em- ployee as a condition for a service pension. In the case of the State teachers, the sum of $400 must be paid into the fund as a condition for a disability pension. In no other fund is any stated amount required as a condition for a disability pension. REFUNDS. In the Illinois acts for firemen, all police acts, and the act for fire insurance patrolmen, there is no provision for refund to the employee in the event of separation from service before becoming entitled to pension. In the others the provisions are as follows : Beneficiaries. Provisions for refund. County employees. Municipal employees of Chi- cago. Public school employees. Public library employees. Houses of correction employ- ees. State teachers. Chicago teachers. Peoria teachers. In case of abolition of position, full amount con- tributed with 3 per cent interest. In case of abolition of position, full amount con- tributed. In case of separation from service for any other cause, one-half of amount con- tributed. In case of resignation or dismissal before serving 10 years, one-half of amount contributed. In case of resignation or dismissal, one-half of amount contributed. In case of resignation or dismissal after serving 3 years, one-half of amount contributed. In case of ceasing to teach before serving 15 years, one-half of amount contributed. In case of dismissal, full amount contributed. In case of resignation before serving 15 years, one- half of amount contributed. Same as in case of Chicago teachers. Without exception, pension acts in the United States that do not provide for contributions from salaries of employees, make no provision for any payment to employees upon separation from active service on account of resignation or dismissal; and in those cases where such contributions' are required, the payment never exceeds the amount contributed by the employee. This would imply that it is recognized as a princinle, either that pensions do not tend to lower salaries, or that any reduction in salaries due to the promise of pen- sion is fully compensated for by the benefits and protection afforded the employee while in service. 54 It seems to be a general plan in all states where contributions are required from employees, that in the various acts for firemen and po- licemen, no provision is made for refund or payment upon resignation or dismissal, whereas in the acts for teachers and other employees, such provision is made. Among the cases where refunds are made to firemen and police- men are : State and city" Beneficiaries. Maine (Portland) . Firemen. Ohio (all cities) Firemen and, with exceptions, policemen. In these instances the amount to be refunded is left to the dis- cretion of the board or determined by local by-laws. Among the cases where refunds are not made to teachers are : Connecticut (New London); Nebraska (Omaha); New York (except New York, Buffalo and Rochester); Rhode Island; South Carolina (Charles- ton); Vermont (state-wide); Virginia (state-wide). In the several states, the variations in amounts or proportion of contributions refunded, and in numbers of years of service before which or after which refunds are permitted, are as wide as in our own State; and the several provisions compared with those of a fund for like employees in our State exhibit a rather close similarity. CONDITIONS FOR PENSIONS SERVICE/ AGE. The Illinois acts relating to firemen, the several police, the county employees, and the employees of the houses of correction re- quire a minimum length of service of 20 years for eligibility to service pension ; the act for fire insurance patrolmen, 22 years ; and the three acts for teachers, 25 years, the last 15 of which must be spent in the public schools to which the- act in question relates. The act relating to the municipal employees of Chicago requires a minimum length of service of 20 years, except in the case of Civil War veterans, who may retire after 10 years of service upon reach- ing the age of 65. The acts relating to firemen, Chicago policemen, policemen in cities of 50,000 or more inhabitants, park policemen (Act of 1913), employees of houses of correction, Chicago teachers and Peoria teachers do not prescribe a minimum age for retirement on service pension. The acts relating to policemen in cities of 9,000 to 50,000 inhabitants, park policemen (Act of 1915), fire insurance patrolmen and State teachers prescribe an age limit of 50 years. The acts for municipal employees of Chicago and county em- ployees prescribe an age limit of 55, with the qualification that, upon completion of 20 years of service, the employee may retire from service and, by continuing payments into the fund, become eligible' for pension at age 55. The provisions for pension, because of length of service and age, in some of the laws of other states are as follows : 55 FIREMEN. State and city. Length of service and age. Alabama (cities of 25,000 to 50,000). Alabama (cities of over 25,000). California (except Oakland). Colorado (Denver). Connecticut (Bridgeport). Georgia (Atlanta). Indiana. Iowa. Louisiana (New Orleans). Maine (Portland). Maryland (Baltimore). Massachusetts (Boston). Massachusetts (cities other than Bos- ton). Minnesota (St. Paul). Missouri (St. Louis). New York (New York City). Pennsylvania (Pittsburg). Pennsylvania (Philadelphia). Rhode Island (Providence). After 20 years of service in police or fire department, if 50 years of age. After 25 years of service in police or fire department, if 60 years of age. After 20 years of service, if 60 years of age. After 20 years of service, if 50 years of age. After 20 years of service. After 20 years of continuous service, if 60 years of age. After 25 years of service. After 22 years of service, the last 5 con- tinuous. After 15 years of service, if 60 years of age. After 15 years of service, if 60 years of age. After 20 consecutive years of service. After 25 years of service, if 55 years of age, if member requests. After 15 years of consecutive service, board may retire. In cities, after 25 years of service, if 60 years of age, if member requests. In towns, after 25 years of continuous serv- ice, if 60 years of age, members may be retired. After 20 years of service, if 50 years of age, and a member of the association for 10 years. After 15 years of service, if 60 years of age. After 20 years of service, on request, or at discretion of fire commissioner. After 20 years of service. After 20 years of service. After 65 years of age. POLICEMEN. State and city. Length of service and age. Alabama (cities of 25,000 to 50,000). Alabama (cities of over 25,000). California (except Oakland). Colorado (cities over 100,000). Connecticut (Bridgeport). Delaware (Wilmington). Georgia (Atlanta). Indiana (all cities of first- and second- class, and all other cities accepting). Iowa (state-wide). Maine (Portland). Maryland (Baltimore). Michigan (Detroit). Minnesota (except Minneapolis). Minnesota (Minneapolis). Minnesota (St. Paul). Nebraska (all metropolitan cities). Nebraska (Omaha). New Hampshire (state-wide). After 20 years of service, if 50 years of age. After 25 years of service, if 60 years of age. After 20 years of service, if 60 years of age. After 60 years of age. After 25 years of service. After 20 years of service. After 25 years of service. After 35 years of continuous service. After 20 years, but before 25 years; after 25 years or more. After 22 years of service, the last 5 con- tinuous, if 55 years of age. After 20 years of service, if 65 years of age. After 16 years of service. After 25 years of active service. After 20 years of service, if 50 years of age. After 20 years of service, if 55 years of age. After 20 years of service, If 50 years of age. After 20 years of service, if 50 years of age. After 20 years of service, if 50 years of age. After 25 years of service in district. 56 POLICEMEN Concluded. State and city. Length of service and age. New Jersey (all cities other than first- class Acts of 1912). New Jersey (park police Acts of 1910). New Jersey (all cities Acts of 1885, Ch. 148). New Jersey (all cities accepting pro- visions Acts of 1885, Ch. 250). New Jersey (state-wide Acts of 1908). New Jersey (Elizabeth). New Jersey (Newark). New York (New York City). New York (Rochester). Ohio (Cincinnati). Ohio (Columbus). Ohio (Springfield). Oregon (all cities of over 50,000). Pennsylvania ( Philadelphia) . Pennsylvania (Pittsburg). Rhode Island (Providence). Washington (all first-class cities). Wisconsin (all second- and third-class cities, and Milwaukee). After 20 years of service, if 60 years of age; after 25 years of service, if 55 years of age. After 20 years of service, if 60 years of age. After 20 years of service, if 60 years of age. After 20 years of service, if 60 years of age. After 20 years of service, if 65 years of age. After 20 years of service, if 60 years of age ; after 25 years of service, if 55 years of age. After 20 years of service, if 60 years of age. After 20 years of service, if 55 years of age, may be retired on request. After 25 years of service if 55 years of age, must be retired on request. After 60 years of age, may be retired. Veterans of Civil War after 20 years of service or after reaching age 60 must be retired. After 20 years of service. After 25 years of continuous service, if 55 years of age. After 25 years of service. After 20 years of service. After 20 years of service, if 50 years of age. After 20 years of service, if 50 years of age, member may retire ; after 2 years of service member may be retired at dis- cretion of police department at any age. After 20 years of service in the city. After 30 years of service in the department, if 60 years of age. After 20 years of service, if 60 years of age. After 22 years of service. TEACHERS. State and city. Length of service and age. Arizona (state-wide). California (state-wide). Colorado (Denver). Connecticut (New Haven). Connecticut (New London). Delaware (Wilmington). Georgia (Atlanta). Indiana (cities of 55,000 to 60,000 (Terre Haute)). Indiana (cities of 20,000 to 100,000). Indiana (cities of 100,000 and over (Indianapolis) ). Kansas (all first-class cities). Kentucky (all first-class cities). Louisiana (Parish of Orleans (New Orleans) ). After 25 years of service within state. After 30 years of service, 15 of which must have been in state, including the 10 im- mediately preceding retirement. After 25 years of service, 15 of which must have been in district. Men must be at least 60 years of age, and women, 50. After 30 years of service, the last 20 of which must have been in city. After 30 years of service, 15 of which must have been in city. After 30 years of service and 65 years of age. After 35 years of service, 20 of which have been in city. After 35 years of continuous service. After 30 years of service, 18 of which must have been in city. After 30 years of service, 18 of which must have been in district. After 25 years of service, 20 of which must have been in city. After 30 years of service, 15 of which must have been in a first-class city. After 30 years of service in pensioning city. After 40 years of service. TEACHERS Concluded. State and city. Length of service and age. Maine (state-wide). Maryland (Alleghany Co), Maryland (Baltimore). Michigan (Detroit). Minnesota (Duluth). Minnesota (Minneapolis). Missouri (St. Louis). Nebraska (Omaha). New Jersey. New York (New York City). New York (Buffalo). New York (Rochester). New York (except above cities) North Dakota (state-wide). Ohio (state-wide). Pennsylvania (Philadelphia). Rhode Island (state-wide). Rhode Island (Providence). South Carolina (Charleston). Utah (state-wide). Vermont (state-wide). Virginia (state-wide). Washington (state-wide). Wisconsin (state-wide). Wisconsin (Milwaukee). After 25, 30 or 35 years of service, includ- ing 20 years of service in state schools, the last 15 of which immediately precede retirement, provided the applicant has reached the age of 60. After 40 years of service. After 35 years of service. After 30 years of service, of which 20 must have been in city, or after 25 years of service wholly in city. After 30 years of service. After 20 years of service. After 35 years of service, or on request, or at discretion of board of education. After 35 years of service, teachers may be retired ; after 40 years, must be. In each case, 20 years of service in city is re- quired. After 35 years of service, 20 of which are in state. After 30 years of service and 65 years of age. After 30 years of service for females and 35 for males, four-fifths of which must have been in city. After 30 years of service for females and 35 for males, 15 of which must have been in city. After 25 years of service, the last 15 of which must have been in the district. After 25 years of service, 18 of which, in- cluding 5 immediately preceding retire- ment, must have been in state. After 30 years of service, 15 of which must have been in district. After 30 years of service, 20 of which must have been in city, if applicant is 60 years of age. After 35 years of service, 25 of which must have been in state, including the last 15 years. After 35 years of service for males and 30 years for females, the last 20 years of which in each case must have been in city. After 25 years of service, if 65 years of age and "in need of maintenance." After 30 years of service, 10 of which are in city or state, provided applicant has reached age of 60. After 25 years of service entirely in state, or 30 years of service, 20 of which must have been in state. After 30 years of service in state ; men must be 58 years of age ; women, 50 years of age. After 30 years of service, 15 of which are in state, for males; after 25 years of service, 15 of which are in state, for fe- males. After 25 years of service, 18 of which must have been in state. After 25 years of service, 15 of which must have been in city. By summarizing the information in these tables we arrive at the following: For firemen, in 11 of the 19 cases mentioned, there are pre- scribed both a period of service such as 20 or 25 years and a mini- mum age for retirement such as 50 or 60 years. Of the remainder, 7 prescribe only a period of service, while 1 prescribes an age limit only. 58 For policemen, in 24 of the 36 cases mentioned, there are prescribed both a period of service and a minimum age for retire- ment. The periods of service vary from 16 to 35 years v and the minimum age limit from 50 to 65 years. Excluding the two cases where alternative exist : In 7 cases, the age limit of 50 is prescribed ; in 4 cases, 55 years ; in 9 cases, 60 years ; and in 2 cases, 65 years. For teachers, in only 9 of the 38 cases mentioned are both a period of service and a minimum age for retirement prescribed. The period of service, however, is as a rule longer than that re- quired of firemen and policemen. In fact in only 1 of the 38 cases mentioned is a service pension granted for fewer than 25 years of service, and in 28 cases, there are required 30 or more years of service. CONDITIONS FOR PENSION DISABILITY. Under the Illinois acts for firemen and fire insurance patrolmen, pension is awarded at any time if physical or mental disability rend- ers retirement from active service necessary. Under the several police acts, pension is awarded at any time if disability occurs as a result of injuries received in performance of duty; and in all cases, except that of policemen in cities of not less than 9,000 nor more than 50,000 inhabitants, if the policeman becomes insane after 10 years of service. Under the act for houses of correction employees, pension is awarded upon disability after 3 years of contribution to the fund. In other cases, pensions are awarded upon disability after the following years of service: Municipal employees of Chicago 5 years. County employees 5 years. Public school employees 10 years. Public library employees 10 years. State teachers 15 years. Chicago teachers 15 years. Peoria teachers 15 years. In the last three mentioned, service may have been rendered in any public school of the United States, provided that at least 9 of such years have been spent in public school service in the territory covered by the act. It is common to practically all funds in this country for firemen and policemen that a pension is granted at any time if disability is incurred in line of duty. The one exception to this that has come to our attention is in the case of the Atlanta, Georgia, police fund, where disability is recognized after 20 years of continuous service. In some instances a pension is granted to members of the fire and police departments if injury is received in a way other than in per- formance of duty. Some examples are the following: For Firemen: Louisiana (New Orleans); Maryland (Baltimore at discretion of board); Massachusetts (Boston); Minnesota (St. Paul except as a result of immoral habits); Missouri (St. Louis); New York (New York City); Wisconsin (first-class cities after 10 years of service). For Policemen : Delaware (Wilmington after 15 years of service) ; Iowa (after 5 years of service) ; Massachusetts (all cities over 75,000 after 20 years of serv- 59 ice); New York (New York City after 10 years of service); Ohio (Cin- cinnati after 15 years of continuous service) ; Pennsylvania (Philadelphia 10 years of service); Virginia (Richmond). For Teachers: In the case of teachers, a pension is awarded upon disability under nearly all funds. The years of service before disability is recognized, however, vary widely. The following are some of the provisions : State and city. Length of service and age. California (state-wide). Colorado (Denver). Connecticut (New Haven). Connecticut (New London). Delaware (Wilmington). Georgia (Atlanta). Indiana (cities of 55,000 to 60,000 (Terre Haute)). Indiana (cities of 20,000 to 100,000). Indiana (Indianapolis). Kansas (all first-class cities). Kentucky (all first-class cities). Louisiana (Parish of Orleans (New Orleans) ). Maryland (state-wide). Maryland (Alleghany Co.). Maryland (Baltimore). Michigan (Detroit). Minnesota (Duluth). Nebraska (Omaha). New York (New York City). New York (Buffalo). New York (Rochester). New York (except above cities). Ohio (state-wide). Pennsylvania ( Philadelphia ) . Rhode Island (Providence). South Carolina (Charleston), Utah (state-wide). Virginia (state-wide). Wisconsin (state-wide). Wisconsin (Milwaukee). After 15 years of service in state. After 10 years of service in district. After 15 years of service, the last 10 in city. After 25 years of service, 15 of which were in city. After 20 years of service, 15 of which were in city. After 20 years of service. After 20 years of service, the last 12 in city. After 20 years of service, the last 12 in district After 15 years of service in city. After 25 years of service, 15 of which were in a first-class city. After 20 years of service in pensioning city. After 10 years of service. After 25 years of service, if 60 years of age and without the means of "comfortable support." After 20 years of service. After 20 years ef service in city. After 20 years of service, 10 of which were in city. After 20 years of service. After 25 years of service, 20 of which were in city. After 20 years of service, 15 of which must have been in city. After 20 years of service for females and 25 for males, four-fifths of which must have been in city. After 20 years of service for females and 25 for males, 15 of which must have been in city. After 15 years of service, last 9 of which were in district. After 20 years of service, 10 of which were in district After 5 years of service. Board of retire- ment may at its discretion grant full annuity to disabled teachers after 30 years of service, 20 of which were in city. After 10 years of service in city. After 20 years of service in city. After 20 years of service; but if disabil- ity ceases, pension is stopped unless pen- sioner has reached 60 years of age. After 20 years of service in state. After 18 years of service in state. After 15 years of service in city (contri- butions for 15 years must have been paid). From this table it may be noted that the period of service required for a disability pension varies from 5 to 25 years but that 20 years or more are required in 20 of the 30 cases mentioned. 5 PL 60 For Other Employees: In the case of state, county and municipal employees, pension is awarded upon disability incurred in line of duty at any time, in the following cases: State and city. Beneficiaries. New Jersey (state-wide). New York (New York City). New York (New York City). Health officers. Street cleaning department employees. Health officers. In the case of state, county and municipal employees, pension is awarded, after varying periods of service, upon disability not in- curred in line of duty, in the following cases: State and city. Beneficiaries. Length of service. Nebraska. New Jersey. New York. Public library employees. Health officers. Street cleaning department em- ployees. After 20 years of service. After 25 years of service. After 10 years of service. AMOUNT OF PENSION PER YEAR. Under the Illinois laws for firemen and fire insurance patrol- men, the amount of pension, either because of service or disability, is one-half of salary at date of retirement. In the several police funds, the amount of service pension is one-half of salary attached to rank or position held for at least one year immediately prior to- retirement, w r ith limitations ; for disability pensions, one-half of salary at date of retirement, with limitations. In the cases of the houses of correction employees, municipal employees of Chicago and county em- ployees, the pension is $600 per annum. For public library and pub- lic school employees, the amounts of pension are determined by the board of trustees, the only requirement being that such shall not exceed $600. For Illinois State teachers, because of service, $400; because of disability, $16 for each year of service, not to exceed $400; for Chicago school teachers, because of service, $400 be- cause of disability, an amount proportional to the sum contributed as related to the sum of $450 ; for Peoria teachers, because of serv- ice, not to exceed $400 because of disability, a sum proportional to the amount contributed as related to the sum of $400. For Firemen: In the case of firemen in other states and cities, the majority pay in service pension one-half of annual salary at time of retirement, without limitation. Among these may be mentioned : Alabama (cities of 25,000 to 50,000 Gen. Laws of 1911; all cities over 25,000); California (state-wide, except Oakland); Colorado (Denver); Iowa (mandatory on cities having a paid department; permissive on cities hav- ing an organized department) ; Louisiana (New Orleans) ; Maryland more) ; Michigan (Detroit) ; New Jersey (all first-class cities accepting act all municipalities, other than those of the first class, having paid fire departments); New York (New York City, Syracuse); Oklahoma (all in- 61 corporated cities and towns); Pennsylvania (Pittsburg) ; Tennessee (Chat- tanooga) ; Wisconsin (all cities of the first, second, third and fourth classes). Among those firemen's funds where some other plan is em- ployed, or some limitation imposed on the amount of service pension are: State and city. Amount of pension. Connecticut (New Haven). Georgia (Atlanta). Indiana (all first- and second-class cities, and all third-, fourth- and fifth-class cities which accept the act). Maine (Portland). Michigan (Grand Rapids). Minnesota (cities of 50.000 or over). Minnesota (St. Paul). Minnesota (Minneapolis). Nebraska (all metropolitan and first- class cities). New Hampshire. North Dakota. Ohio (all cities and towns having a fire department supported in whole or in part at public expense). Ohio (Dayton). Ohio (Cleveland). Pennsylvania (Philadelphia). Rhode Island (Providence). South Carolina (Charleston). Texas. Virginia. Washington (all cities and towns). One-fourth to one-half of annual salary at time of retirement. One-half of annual salary at time of re- tirement; not exceeding $50 monthly for retirement after 20 years of serv- ice; not exceeding $100 after 35 years of service. After 25 years of service, $20 to $40 monthly; after 20 years of service, $15 to $30 monthly. Not to exceed one-half of annual salary at time of retirement. One-half of annual salary at time of re- tirement, not to exceed $450. To be fixed by local by-laws, not to ex- ceed $40 monthly. After 20 years of service and 50 years of age, $480 annually. If retired because of age (or total dis- ability), $480. One-half of annual salary at time of re- tirement, not over $50 monthly. $500 based on 25 years of service, in no case less than $100. Determined by local by-laws, not to ex- ceed $40 monthly. Determined by local by-laws. $40 monthly. Eleven-sixteenths of salary at time of retirement based on 30 years of serv- ice, not exceeding $1,200, except in case of chief and two assistants. One-half of average annual salary for a period of 2 continuous years. One-half of average annual salary at retirement, if above rank of assistant foreman; all others receive a sum not exceeding $600. One-half of annual salary, not less than $120 annually. One-third of pay at time of retirement. Determined by local authorities. One-half of pay based on last year. In practically all the above cases, the same pension is awarded because of disability. For Policemen: Among the police funds which pay in service pensions 'one-half of annual salary at time of retirement, without limitation, are the follow- ing: Alabama (cities over 25,000; cities from 25,000 to 50,000): California (Oakland); Colorado (Denver); Connecticut (Bridgeport); Delaware (Wil- mington); Maine (Portland); Maryland (Baltimore); Michigan (Detroit); New Jersey (all cities other than first class; Elizabeth; Newark); Ohio (Springfield); Oregon (oities of over 50,000); Pennsylvania; Pennsylvania (Pittsburg) ; South Carolina (Charleston) ; Washington (all first-class cit- ies) ; Wisconsin (Milwaukee). 62 The following police funds are among those which follow some other plan, or impose some limitation on the provision for payment of one-half annual salary at time of retirement on service pension: State and city. Amount of pension. Connecticut (all cities having police department under police commis- sion, which shall accept it). Connecticut (New Haven). Georgia (Atlanta). Indiana (cities of first and second class, and all other cities accepting). Iowa (state-wide). Louisiana (New Orleans). Minnesota (state-wide). Minnesota (Minneapolis, St. Paul). Nebraska (all metropolitan cities; Omaha). New Hampshire (state-wide). New York (New York City, Rochester). Ohio (all cities and towns having police departments or sanitary po- lice departments supported in whole or in part at public expense). Ohio (Cincinnati). Ohio (Columbus). Pennsylvania (second-class cities). Pennsylvania ( Philadelphia ) . Rhode Island (Providence). Virginia (Richmond). One-fourth to one-half of annual salary at time of retirement for patrolmen, not to exceed $500 ; for others than patrolmen, one-half of annual salary at time of re- tirement. One-fourth to one-half of annual salary at time of retirement. One-half of annual salary at time of re- tirement, not to exceed $100 monthly. After 20 years of service, $360 ; after 25 years of service, $600. One-half of annual salary at time of re- tirement, if an organized department; such sum as board may fix, if a paid department. Not over $150 annually. Fixed by local by-laws, not exceeding $40 monthly. $40 monthly. $50 monthly. $500 annually based on 25 years of service. Not less than one-half salary at time of retirement. Determined by local by-laws. $600 annually. After 25 years of service, $480 if retired on own request; $600 if retired by chief. Determined by local authorities. Two and one-half per cent of average annual salary for 10 years preceding re- tirement ($3,000 taken as highest an- nual salary), multiplied by years of serv- ice, not exceeding 20 years. Determined by Board of Police Commis- sioners. $360 annually. In practically all the above cases, the 'same pension is awarded because of disability. For Teachers: In none of the states is the teachers' service pension one-half of the annual salary at time of retirement, without limitation. Some of the provisions, for service and disability pensions are as f ojlows : State and city. Amount of pension. Arizona. California. Colorado (Denver). Connecticut (New Haven). Connecticut (New London), Delaware ( Wilmington ) . A flat rate of $600 annually for all an- nuitants. $500 annually, based on 30 years of serv- ice. Teachers retiring after 15, and be- fore 30, years of service receive a pro- portionate annuity. Not more than $480 anuually for 25 years of service. One-half of average annual salary for last 5 years of service, not less than $400 nor more than $800. One-half of average annual salary for last 5 years. $400, based on 35 years of service. (53 State and city. Amount of pension. Georgia (Atlanta). Indiana (cities of 20,000 to 100,000 ; cities of 55,000 to 60,000 ; Terre Haute). Indiana (Indianapolis). Kansas (first class cities). Kentucky (first class cities). Louisiana (Parish of Orleans (New Orleans) ). Maine. Maryland. Maryland (Alleghany Co.). Maryland ( Baltimore ) . Massachusetts (except Boston). Massachusetts (Boston). Michigan (Detroit). Minnesota (cities of 10,000 or more population). Minnesota (Duluth). Minnesota (Minneapolis). Missouri (St. Louis). Nebraska (all metropolitan cities). New Jersey (state-wide). New York (New York City). New York (Rochester, Buffalo). New York (except above cities). North Dakota. One-half of salary at time of retirement, not to exceed $50 per month for 20 years of service, or $100 per month for 35 years. $600 annually, based on 30 years of service. $600 annually, based on 40 years of service. $500 annually, based on 30 years of service. Teachers retiring after 25 years of serv- ice receive a proportionate annuity. $400 annually, based on 40 years of serv- ice. Teachers retiring after 20 years, but before 40 years, of service, receive a pro- portionate annuity. One-half of average annual salary for last 5 years, in no case to be less than $300 nor more than $600. Teachers retiring after 10 years, but before 40 years, of service, receive amount proportionate to years served. $250 annually, based on 35 years of service, and lesser amounts arbitrarily fixed for 30 and 25 years of service. Special half- rate pensions are provided for teachers who retired from service previous to act A flat rate of $200 annually for all an- nuitants. One-half of average annual salary for last 5 years of service, not to exceed $400 nor be less than $200. Teachers retir- ing after 20 years, but before 40 years, of service, shall receive amount propoi- tionate to years served. $600 annually, based on 35 years of service. A minimum of $360 is established, and between the two the annuity is one-half the average annual salary for last 5 years of service. Retirement allowance consists of two parts, annuity and pension. Annuity to be such as can be purchased by contribu- tions of member with compound interest. Pension to be of equal amount. Such annuity as fund will allow and as board of trustees may determine. (In 1913, this was $180.) $400 annually, based on 30 years of serv- ice, of which 20 must have been in city, or after 25 years of service wholly in city. No fixed provision. $500, based on 30 years of service. $500, based on 30 years of service, 10 years of which must have been in city. Teach- ers retiring after 20 years, and before 30 years, receive a proportionate annuity. $180, based on 35 years of service. $500, based on 35 years of service. Teach- ers retired after 25, and before 35, years of service, receive a proportion- ate annuity. One-half of average annual salary for last 5 years of service, not less than $250 nor more than $600. One-half of annual salary at time of retire- ment, not less than $600. One-half of annual salary at time of re- tirement, not to exceed $800. One-half of annual salary at time of re- tirement, not to exceed $600. One-fiftieth of average annual salary for last 5 years of service multiplied by whole number of years of service, not to exceed $750 annually or to be less than $350 annually. State and city. Amount of pension. ' Ohio. Oregon (districts having more than 10,000 children of school age). Pennsylvania (Philadelphia). Rhode Island. Rhode Island (Providence). South Carolina (Charleston). Utah (state- wide). Vermont. Virginia. Washington. Wisconsin. Wisconsin (Milwaukee). $12.50 for each year of service, not to exceed $450. Discretionary. One-half of salary at time of retirement, not less than $400 nor more than $1,000. Teachers retiring after 5 years, and before 30 years,- of service, receive a proportionate annuity. One-half of average annual salary for last 5 years of service, not to ex- ceed $500. One-half of salary at retirement, not to exceed $600. One-half of salary at time of retirement, not to exceed $250. One-half of average annual salary for last 5 years of service, not to exceed $600. Teachers retiring after 20 years of service, and before 30 years, receive a proportionate annuity. One-half of average annual salary for last 5 years of service, not to exceed $500. One-half of average annual salary for last 5 years of service, not to exceed $500. One-half of average annual salary during last 5 years of service, not to exceed $600. $12.50 for each year of service, not, however, to exceed $450 in any one year. A flat rate of $400 for all annuitants. PROVISIONS FOR DISCONTINUANCE OF PENSION. In Illinois, pension terminates when disability ceases in the fol- lowing cases : Firemen, policemen, houses of correction employees, municipal em- ployees of Chicago, public library employees, public school employees, Illi- nois state teachers and county employees. In some of these instances the further requirement of submitting to physical examination is added. The police acts contain the addi- tional provision that in case of either service or disability pension, pension ceases if pensioner is convicted of felony or becomes a habitual drunkard, or a nonresident of this State in some instances, and of the United States in others. In the acts for Chicago teachers, Peoria teachers and fire insurance patrolmen, no provisions are made for discontinuance either of service or disability pension. Among the acts in other states it is common to find -regulations providing for termination of pension upon conviction for felony, habitual drunkenness, or leading an immoral life. In some instances pensions may be revoked upon failure to provide for family. WIDOWS OF EMPLOYEES CONDITIONS FOR PENSION; AMOUNT OF PENSION PER YEAR. Of the 15 Illinois acts under consideration, 8 provide for pen- sions to widows, 1 provides for payment to widows of employees who 65 were not pensioners at time of death, and 6 make no provisions of any description for widows. The acts that provide pensions to widows are those for : Firemen, policemen (all), fire insurance patrolmen and houses of correc- tion employees. The act that provides for payments .to widows of employees at death of husband is that for : Public library employees. The acts that make no provision for widows are those for : County employees, municipal employees of Chicago, public school em- ployees, Illinois state teachers, Chicago teachers and Peoria teachers. In the case of firemen, the widow of an employee who dies while in service or on pension is entitled to pension, the only restriction being that in the case of the widow of a pensioner, she must have been married to him before the date of his retirement on pension. The provisions in the act for fire insurance patrolmen are similar, except that there is no restriction in any event as to date of marriage. In the several police funds, a pension is granted to widows : 1. Whose husbands were either service or disability pensioners. 2. Whose husbands lost their lives while in the performance of duty. 3. Whose husbands died while in service after at least 10 years of service. For groups 1 and 3 above, there are restrictions in most funds, varying among the several funds, regarding dates of marriage. These are by no means uniform. In the case of library employees, death benefits, not to exceed one year's benefit, are paid to the widows of employees who die while in active service, but not to the widows of pensioners. In the act for houses of correction employees, a pension is granted to a widow whose husband was either a service or disability pensioner, or died while a contributor, provided marriage took place at least 5 years .before his death and prior to retirement in the case of a service pensioner or 5 vears before death in the other cases. In the acts providing for pensions to widows, the provisions for amounts to be paid per year are as follows : Beneficiaries. Amount of pension. Firemen Policemen (all) Fire insurance patrolmen Houses of correction employees, $540. Same amount as was paid to husband or would have been paid to him had he be- come the pensioner instead of her. $360. $600. In the acts in force in other states, the provisions of several for pensions or payments to widows of firemen and policemen are given in the following table: 66 FIREMEN. State and city. Amounts of pension and conditions for pension. California ( state-wide ) . California (Oakland). Colorado (cities over 100,- 000). Connecticut (New Ha- ven). Indiana (all first- and sec- ond-class cities, and all third-, fourth- and fifth- class cities which ac- cept act). Iowa (mandatory on cit- ies having a paid de- partment ; permissive on cities having an organized department). Kentucky (all first-class cities). Maine (Portland). Maryland (Baltimore). Massachusetts (Boston). Michigan ids). ( Grand Rap- Michigan (Detroit). Minnesota (cities of 50,- 000 and over). Minnesota (Minneapolis). Nebraska (all metropoli- tan and first-class cit- ies). New Jersey (all first-class cities accepting act). New Jersey (all munici- palities, other than those of the first class, having paid fire depart- ments ) . New Jersey (Jersey City). New York (New York City). Ohio (Dayton). Ohio (Cleveland). Oklahoma (all incorpo- rated cities and towns). Pennsylvania (Pitts- burg). Pennsylvania (Philadel- phia). South Carolina (Charles- ton). Tennessee (Chattanooga). If death of husband occurs in line of duty, a pension of one-third salary. If death occurs from other causes after 10 years of service, $1,000. Same as above, except one-half instead of one-third salary. If death of husband occurs in line of duty, or while in service or on retired list from any cause, $30 monthly. If death of husband occurs in line of duty, a sum not exceeding $2,000. If death of husband occurs in service or after retire- ment, $20 to $25 monthly. In event of death of member in city department in line of duty, widow receives $20 monthly. In towns, pension to be determined by board. If death of husband occurs in line of duty or from any cause, after 15 years of service, $30 monthly. If death of husband occurs in line of duty, a sum not to exceed $25 monthly. If death of husband occurs in line of duty, widow re- ceives annually one-half of annual salary at time of death. If death occurs in line of duty, widow or children under 16 years of age may receive annuity of not over $300 from the city and a further sum of $1,000 from the state. If death of husband occurs from injury received in line of duty within 1 year from date of injury, $300 an- nually for 5 years. Under same conditions as Grand Rapids, $300 annually. If death of husband occurs in line of duty, such pen- sion as local by-laws permit. In event of death of members, an annuity of not over $480, and a death benefit of $125. If death of husband occurs in line of duty, one-half of annual salary at time of death, not over $50 monthly. If death of husband occurs after 5 years of service or after retirement, one-half of salary at time of death or retirement. Same as above. In event of death, one-half of salary at time of death, paid annually. In event of death in line of duty, not over one-half of pay at time of death, not exceeding $1,000 annually to dependents; widows may receive $600 if half of pay be less than that ; in event of death from other causes, not over $300 annually to dependents. If death of husband occurs in line of duty, $25 monthly (while widow is unmarried). If death of husband occurs after 5 years of service from any cause ex- cept in line of duty, or self-abuse, widow and chil- dren receive the same annuities. Upon death of husband, annuities of $60 to $300 ac- cording to length of service of husband. Upon death of husband, one-half of salary at time of death. Upon death of husband (active member) , $1,000. If death of husband occurs In line of duty, $240 an- If death* of husband occurs in line of duty, or after 20 years of service, 12 being consecutive, from any cause, a payment not less than $50 nor more than $100. If death of husband occurs in line of duty, a payment of $500. 67 FIREMEN Concluded. State and city. Amounts of pension and conditions for pension. Texas. Utah. Washington (all cities and towns). Wisconsin (Milwaukee). Upon death of husband, $144 annually. If death of husband occurs in line of duty, a payment of $2,500. If death of husband occurs in line of duty, one-half of salary at time of death. If death results from nat- ural cause, after 2 years of service, a payment of $1,000. In event of death incurred in line of duty if after 10 years of service, dependents receive $420 to $720 an- nually according to rank of member, and each child under 18 years, $72, the total amount not to exceed one-half of salary at time of death. POLICEMEN. State and city. Amounts of pension and conditions for pension. California (state-wide). California (Oakland). Colorado (cities over 150,- 000). Colorado (Denver). Connecticut (all cities having police depart- ment under police com- mission, which shall ac- cept it). Connecticut (New Ha- ven). Indiana (all cities of first and second class, and all other cities accepting). Kentucky (all first-class cities). ,ouisiana (New Orleans). Maryland (Baltimore). Massachusetts ( Boston ) . Nebraska (all metro- politan cities). STew Jersey (all cities other than first class Acts of 1912). STew Jersey (park po- lice Acts of 1910). New Jersey (all cities accepting provisions Acts of 1885). Mew Jersey (Newark). \v York (New York City). )hio (Cincinnati). If death of husband occurs in line of duty, one-third of salary. If death results from natural causes after 10 years of service, $1,000. Same as above, except one-half of salary instead of one-third. If death of husband occurs in line of duty, $30 monthly. If death of husband occurs in line of duty, $30 monthly until marriage. If death of husband occurs in line of duty, not over $300 annually. If death of husband occurs in line of duty, a sum not exceeding $2,000. If death of husband occurs in line of duty, $30 monthly. If death of husband occurs in line of duty, $20 monthly. If death of husband occurs in line of duty, or from any natural cause after 15 years of service, $30 monthly. If death of husband occurs in line of duty, or after 20 years of service from natural causes, not over $150. If death of husband occurs in line of duty, board to make reasonable provision. In event of death in line of duty, $300 annually to widow or children under 16 years of age. If death of husband occurs at any time in line of duty, not less than $20 monthly. If death of husband occurs in line of duty, one- half of annual salary at time of death. Same as above. Same as above. Same as above. To the dependent parents or widow, or children under 18 years of age of member dying as a result of injury received in performance of duty, a sum not exceed- ing $600 annually is paid. If member dies after 10 years of service or while on pension, widow or chil- dren receive not over $300 annually. If death of husband occurs in line of duty or after 15 years of service, or if an annuitant dies, $240 annually. If an active member dies, the sum of $100, if widow is entitled to annuity; the sum of $300, if she is not entitled to annuity. 68 POLICEMEN Concluded. State and city. Amounts of pension and conditions for pension. Ohio (Columbus). Ohio (Springfield). Oregon (all cities over 50,000). Pennsylvania (state- wide). Pennsylvania (Philadel- phia). Pennsylvania burg). Washing-ton (all class cities). (Pitts- first- Wisconsin (all second- and third-class cities). Wisconsin (Milwaukee). If death of husband occurs in line of duty or after 10 years of service, or if an annuitant dies, not over $300 annually. Upon death of husband (an active member), $240 annually. If death of husband occurs in line of duty, one-third of annual salary at time of death. If death of husband occurs in line of duty, not more than one-half of annual salary at time of death. If death of husband occurs within 60 days from date of injury received in line of duty, $240 an- nually. Death benefit of $1,000. If death of husband' occurs in line of duty, one- third of annual salary at time of death. If death occurs from natural causes after 5 years of serv- ice, $1,000. If death of husband occurs in li.ne of duty, or from natural causes after 10 years of service, one- third of salary at time of death. If death of husband occurs in line of duty, or from natural causes after 15 years of service, or if an annuitant dies, $420 to $900, according to rank. In no case in the several teachers' acts in other states is provision made for pensions to dependents. In just one case are payments made upon the death of annuitant, this single instance being that of the Massachusetts teachers outside of Boston, to whom the payment consists of a return of contributions over amount paid in pension if death occurs before the total amount received in pension exceeds the amount contributed by the teacher. WIDOWS OF EMPLOYEES PROVISIONS FOR DISCONTINUANCE OF PENSION. Under all Illinois acts where pension is granted to widows, such pension terminates if widow marries. In the cases of policemen in cities of 50,000 or over, policemen in cities of 9,000 to 50,000, and park policemen (Act of 1913), the widow is subject to the same pro- visions relating to termination of pension because of conviction of felony or habitual drunkenness, or because of nonresidence, as those imposed upon husbands. NATURAL CHILD OR CHILDREN OF EMPLOYEES CONDITION FOR PENSIONS; AMOUNTS OF PENSION PER YEAR; PROVISIONS FOR DISCONTINUANCE OF PENSION. . The eight Illinois acts that provide for pensions to widows also make provisions for pensions to children. In the acts for firemen and fire insurance patrolmen, children are pensioned upon the death of the father while in service or on pension, provided only in the case of service pensioners that marriage of father and mother took place before date of retirement. Children of those who were disability pensioners are not subject under these acts to this restriction. Under the various police acts and the houses of correction act, the death of both father and mother is a condition for pension. In these acts, also, the children must be under 16 years of age. The othei conditions are the same as those governing pensions to widows under the several acts. 69 In all the police acts, except that relating to policemen in cities of 9,000 to 50,000 inhabitants, provision is made for pensioning children under 16 years of age of a policeman who becomes insane after at least 10 years of service. If the father has not been taken outside the State, the same provisions apply in this case as apply in that of chil- dren of a policeman who dies after at least 10 years of service. Under the act for firemen, each eligible child receives $96 per year if the mother is living, and $180 per year if the mother is dead. Under the several police acts, the family receives the same pension as was provided for father or mother, to be divided equally among the eligible children. Under the act for fire insurance patrolmen, each eligible child receives $72 per year. Under the houses of correction act, $600 per annum is divided equally among the eligible children in the family. In all cases pension terminates when the child attains to 16 years of age. In some few of the acts are provisions for terminating the pension if the child is convicted of felony or habitual drunkenness, or marries. The conditions for pension and the amounts received in pension by children in several of the firemen's and policemen's funds in other states are as follows: FIREMEN. State and city. Amount of pension, and conditions for pension. Colorado ( Denver ) . [ndiana (all first- and sec- ond-class cities, and all third-, fourth- and fifth- class cities which ac- cept act). Kentucky ( all first-class cities). Louisiana (New Orleans). Massachusetts ( Boston ) . Minnesota (St. Paul). Missouri (St Louis). Ohio (Cleveland). Texas (state-wide). Wisconsin ( Milwaukee ) . If death of father occurs in line of duty, or while in service or on retired list, from any cause, the sum of $6 monthly to each child under 14 years of age. If death of father occurs in service or after retire- ment, the sum of $6 monthly to each child. If death of father occurs in line of duty, or from any cause after 15 years of service, the sum of $6 monthly to each child under 14 years of a&e. If death of father (an active member) occurs in line of duty, or after 1 year of service, the sum of $72 annually to each child under 14 years of age. See widows. Upon death of active member or pensioner, the sum of $5 monthly to each child under 16 (total for family including $30 to widow, not to exceed $40 monthly). In case of death of widow, children to receive such sum as board determines, not exceeding $40 monthly. Upon death of active member, the sum of $72 annually to each child under 14 years of age. Upon death of father, annuities of $36 to $84 to each child under 16 years of age. Upon death of father, an annuity of $36 to each child under 16 years of age. See widows. 70 POLICEMEN. State and city. Amount of pension, and conditions for pension. Colorado (cities over 100,- 000). Colorado (Denver). Indiana (all cities of first and second class, and all other cities accepting). Kentucky (all first-class cities). New York (New York City). Ohio (Cincinnati). If death of father occurs in line of duty, the sum of $6 monthly to each child under 16 years of age. If death of father occurs in line of duty, the sum of $6 monthly to each child under 14 years of age. If death of father occurs in line of duty, the sum of $6 monthly to each child under 16 years of age. If death of father occurs in line of duty, or from any natural cause, after 15 years of service, the sum of $6 monthly to each child under 14 years of age. See widows. If death of father occurs in line of duty, or after 15 years of service, or if an annuitant dies, the sum of $72 annually to each child under 16 years of age. OTHER DEPENDENTS OF EMPLOYEES. In the Illinois act for firemen, provision is made whereby depend- ent parents receive $300 each per annum if no widow or eligible children survive. In all the police acts, except that relating to cities of 9,000 to 50,000, the wife of a policeman who becomes insane after at least 10 years of service is pensioned under the same provisions as apply to the widow of a policeman who dies after at least 10 years of service. In the act for fire insurance patrolmen, the provisions relating to natural children apply also to adopted children. In the act for houses of correction employees, the mother of a deceased con- tributor, if no eligible widow or children survive, receives a pension of $600 as long as she lives. Some instances of similar provisions in the laws of other states are: FIREMEN. State and city. Amount of pension, and conditions for pension. California (Oakland). Iowa (mandatory on cit- ies having a paid de- partment ; permissive on cities having an or- ganized department). Kentucky (all first-class cities). Ohio (Dayton). Ohio (Cleveland). Pennsylvania (Philadel- phia). Texas (state-wide). Wisconsin (state-wide; Milwaukee). If death occurs in line of duty, dependent parents re- ceive one-half of annual salary at time of death, if no eligible widow or children survive. If death occurs from natural causes, after 10 years of service, they receive $1,000, if no eligible widow or children sur- vive. Dependent father or mother receives $20 monthly, if no eligible widow or children survive, if death occurs in line of duty. Dependent father and mother receive $30 monthly, if member was unmarried and childless. Dependent parents receive $25 monthly, if no eligible widow or children survive. Dependents receive annuities of $60 to $300 according to length of service of member. Dependent parents receive $20 annually, if no widow survives. Dependents receive $144 annually. Dependents receive $420 to $720 annually, according to rank of member. 71 State and city. POLICEMEN Concluded. Amount of pension, and conditions for pension. California (Oakland). Colorado (cities over 100,- 000). Colorado (Denver). Connecticut (New Ha- ven). Indiana (all first- and sec- ond-class cities, and all other cities accepting). Iowa (state-wide). Kentucky (all first-class cities). New Jersey (Newark). Oregon (all cities over Wisconsin (all second- and third-class cities). If member was killed in line of duty, dependent parents receive one-half of salary at time of death, if no eli- gible widow or children survive. If death occurred from natural causes, after 10 years of service, they receive $1,000, if no eligible widow or children sur- vive. Dependent father and mother each receive $15 monthly, if no eligible widow or children survive ; if either parent is dead, the other receives $30. If member was killed in line of duty, his mother and father each receive $6 monthly (monthly pensions also to widow and children). Widow or dependents receive sum not exceeding $2,000. If no eligible widow or children survive, other depend- ents receive $20 monthly. Dependent parents receive $20 monthly, if no eligible widow or children survive. Dependent parents receive $30 monthly, if no eligible widow or children survive. Widow or dependents receive one-half of salary of mem- ber at time of death. Widow or other dependents receive not more than one- third of annual salary at time of death of member. Dependent parents receive widow's share of pension if no eligible widow or children survive. ADDITIONAL DATA. In no fund in Illinois is the financial condition of applicant to be taken into consideration in granting a pension. Thus, in this State it seems to be recognized as a principle that a pension is a reward for service rendered. Under the firemen's and policemen's acts in the state of Alabama, a pension can not be awarded to one possessing independent means of livelihood, but in no other instance in the United States is there a condition imposed regarding the need of the indi- vidual for pension. Provisions regulating the investment of funds appear in all the acts. In four instances namely, in the firemen's, the fire insurance patrolmen's, the public school employees' and the public library em- ployees' acts the funds may be invested at the discretion of the board. In all other cases they must be invested in certain specified classes of securities. In the case of the policemen's fund of Chicago, provision is made for an actuarial determination each year of the amount needed to pay pensions currently and to provide a reserve on all entering the service after January 1, 1916. This is the only fund for which such a pro- vision is made. CHAPTER V. ACTUARIAL REPORT. GENERAL INTRODUCTION. An actuarial investigation of the future costs of operating a pension system may be based either on statistical data collected from the experience of the particular fund to be examined, or it may be based on certain reasonable assumptions made as the result of experi- ence with groups of persons somewhat similar to those involved as participants in the pension fund. In so far as the experience of a particular fund is adequate to justify conclusions, it is highly desirable that the actuarial results rest on rates of withdrawal and rates of retirement on pensions given by that experience. At least, this is the position taken in the present investigation. Of the several funds in this State, three, by reason of the num- bers of employees involved and the lengths of time since the laws were enacted, offer an experience sufficient to enable us to predict future costs relating to them almost entirely on the basis of statistical data from their own experience. They are the firemen's fund of Chicago, the police fund of Chicago and the Chicago school teachers' fund. In what follows these are considered in detail, and in each case there are presented monetary tables showing the amounts that may be expected to be paid each year if the present plans of payment be con- tinued; and valuation sheets exhibiting statements of assets and lia- bilities as of January 1, 1916. The investigation of the fund for municipal employees of Chi- cago could be based only to a slight degree on the experience of this fund for two reasons : 1. No pensions were paid until July 1, 1916. There was thus no pension experience on January 1, 1916, and consequently, there were no means of determining the rates at which employees would accept pensions under this fund. 2. Tables of withdrawals by reason of resignation in a service, compiled from an experience before a pension system was fully in operation, might not give even a fair indication as to the future expe- rience of the same service in this particular after a pension system was established. In this fund, therefore, we prepared a table giving the rates of withdrawal from service, and by assuming that pensions would be paid at certain specified ages to those having the required service qualifications, we have prepared different balance sheets showing the present condition of the fund under our specified hypotheses. It must be remembered, however, that the same confidence should not be placed in these results as predictions of the future costs as should be 73 placed in those under the Chicago firemen's, the Chicago policemen's and the Chicago teachers' funds. The State teachers' pension and retirement fund involves a vast body of employees, but owing to the absence of records in anything like suitable form, the construction of a table giving entrance and withdrawal experience was out of the question in the limited time at our disposal for preparing this report. Indeed, it is doubtful if any experience table could be constructed from the records as they ex- isted at the time the act went into force, and moreover, it is doubtful if any satisfactory actuarial investigation can be made of this fund until some plan is instituted for accumulating the required data from year to year. Briefly stated, our treatment of this fund was as follows : We scheduled, as far as we could secure data, the teachers in service on January 1, 1916, according to salaries, ages, and years of experience ; and, on the supposition that teachers would accept pen- sions under certain conditions, as given in our discussion of that fund, we arrived at our results. These are offered as an estimate of the probable future cost of this fund, but one which would probably differ materially from actual results. The remaining funds, because of the small number of employees involved, do not offer an experience of sufficient volume to warrant us in making any actuarial investigation of them. NECESSITY FOR SEPARATE REPORT ON EACH FUND. Since the conditions for retirement and the benefits offered in the nature of pensions differ widely for the various funds, we are obliged to make a separate report on each fund investigated, in order to give an idea of the probable future cost of maintaining such a fund. PLAN FOLLOWED IN DETERMINATION OF FUTURE COSTS. The determination of future costs was made in each case, as far as possible, from past experience in the operation of the fund. In each instance we gathered data to show the effect of the various ele- ments that are operating to increase or decrease the resources of the fund. As far as this experience was adequate to determine the rates at which changes were taking place, it was used in our computations. When it was inadequate, we drew upon the experience of some similar fund that had been investigated and had an adequate experience. References to these sources will appear in the proper places. DATA REQUIRED FOR DETERMINATION OF FUTURE COSTS. For each fund it was necessary to find the following data : 1. The rate of mortality in the active force at given ages. 2. The rates of withdrawal by resignation or dismissal at given ages. 3. The rates of retirement on disability pensions at given ages. 4. The rates of service retirement at given ages. 5. The rates of mortality among disability pensioners at given ages. 6. The rates of mortality among service pensioners at given ages. 74 For certain funds, such as those of the policemen and firemen, it was necessary to know, in addition, the following : 7. The probability of death in the discharge of duty. 8. The probability that a man dying at a given age will leave a widow, and the probable age of such widow. 9. The rates of mortality of widows on the pension roll. 10. The rates of withdrawal of widows from pension by remar- riage. 11. The average length of time a service pensioner of given age has been on the pension roll. 12. The number and ages of children per member of given age. 13. The rates of mortality of children under 16 years of age. 14. The probable rates of salary increase with respect to ages. 15. The probable amounts of pensions under given conditions. 16. The probability that a man of given age in active service has been in service 10 years. 17. The probability that a man of given age in active service has been in service 20 years. GENERAL STATEMENT AS TO COLLECTION OF DATA. To obtain the information necessary to determine the above- mentioned rates and probabilities, we fixed on certain dates on which to begin and terminate the collection of data. In the cases of the funds for Chicago firemen, Chicago policemen, and Chicago teachers, the date of beginning was January 1, 1906, and of ending was January 1, 1916. In the fund for municipal employees of Chicago, the data was collected from July 1, 1911, the date of inception of the fund, to January 1, 1916. We then prepared five sets of questionnaires: One for those employees who were in active service January 1, 1916 ; one for former employees who were on the pension roll January 1, 1916; one for widow pensioners on the roll January 1, 1916 ; one for employees who were in service at date of beginning our accumulation of data, or at any time thereafter before January 1, 1916, but retired from service prior to January 1, 1916, for reason other than by pension; one for those who were on pension at date of beginning our accumulation of data, or any time thereafter previous to January 1, 1916, but were not on the pension roll on January 1, 1916. A copy of the questionnaire prepared for those employees who were in active service January 1, 1916, is given on pp. 75-76. 75 " e >>i w * "tl'C w ' 3 bad 35,0 So. S^c-p'opd-^ =e. w^dH^KSw *:3 . c i 833! *B* *<"' !&!i%||$3;!i , o o.c3 o Kg 4> 41 O >> 08 Z* O ^ , Sao, ^d S-H 22 M 1 5 76 Female. 4> I s? O te II _ & d i s d i Married. 4) 1 ^ 11 Mt3 18 g . o c^g 4> -" d I-" ogo-d !lf l^g rt d >* d >> f ri o Q g fl Q CJ o 5 Year. d o Q rS fi Q o g 4> a H . CO - 1C I- y. a> o 53 fl I'd > : a a : aid 05 4> II ! 5 II 4) i IK 8* d rt rt 4) Q gs J Sd S A C| J d fl 4> s ot ge O 4> 4) 3 r3 i I'S si Q d o 1 '? s ^ ^^ II ?! fe^: g "d o a rt g -3^ 1 |l< S "^^ , ofe ojg ^ 2 o O ^^ ^3 4) i I II ! I ! ih .rrt'Q 5 4>tj co >-i d * d d rt Q 2^ Month. , r3 "C* ?H ^ ^ $-* "hi >- d a) O 1> 0) O "te fl *rJ >> P r ^H E> H 33 o K SiS d g v ^1 S ^ M is>^ ffj C^ O ^ CTJ c^ d -d ^OQ- -d-d ,2 4) 4) w 4> 4> > > M d > > ^ 33 -253 s ill g^^ SSo gile oj-S^ a^.^ o r- oo oj o " cd ^3 - CO vn *|t. O5 "* eooo OS-H c! CD 10 oo Av .a V: . 'i ^ s 77 In the cases of the funds for Chicago firemen and Chicago police- men, the questionnaires relating to those in service January 1, 1916, were delivered to the chiefs of the respective departments and were distributed to the employees through the regular chan- nels of communication of these departments. Those for the Chi- cago teachers' fund were delivered to the several principals by means of the supply wagons of the Board of Education and were returned to our office either by the supply wagons or by mail. Those for the municipal employees' fund were distributed and" col- lected by the Finance Committee of the Chicago City Council. The data on public school teachers, outside the county of Cook and city of Peoria, was collected through the several county superintendents from the applications for renewal of license filed by the teachers in the offices of these superintendents. In the county of Cook no such application was necessary; therefore, to get the desired information on teachers in this county, outside of Chicago, cards were mailed to the individual teachers. Cards were also mailed to the individual teachers of Peoria. The questionnaires referring to pensioners and widows on the pension rolls January 1, 1916, were, in the case of the Chicago po- lice fund, filled in from the records in the Police Pension Depart- ment. In no other instance were the records complete enough to afford us the proper data, and consequently we had these sheets filled in by the pensioners, either when they called to receive their checks or by mail. The sheets applicable to those who were not in service or on the pension rolls January 1, 1916, were filled in by our own em- ployees. As far as the information sought was available, it was transcribed from the records of the several departments. In many instances, however, the date of birth or date of entrance into serv- ice was missing, and for one or the other of these items of infor- mation, reference was made to application sheets on file in the offi- ces of the Civil Service' Commission, to the Department of Vital Statistics and to reports cited in the minutes of the Chicago City Council. The data thus derived was transformed in the form of a code to cards, a sample of which is shown on page 78. The trans- 78 ( 1 1 3ITY OF CHICA ILLINOIS P 3O COMPTR01 ENSION LAWS C 'rH N CO L.LER'8 O] OMMISSIO^ ^FICE * t- OO OS|J p9UOiSU9d 9JOJ9Q ' P,.IT2H grH M OCO Tti m co t- oo os* UOTSU9CI jo junoraB }U 9S 9 .1 t* GO OSW * jo qffin N rH (N CO ^ CD t- OO O5 9JTM. JO 9 3V ^U9S9a OO OS J3uotsn9djo rH (M CO rH (M CO * m CD ^ in co t- 00 CS' t- 00 05* 9STVEQ Q rH ^CO *^2 "5 00 05N t- 00 05H -TI9 S}tTE.I}U9 90, -SAJUS 3J3V rH (M CO rH' CQ CO , in CD TH m CD t> 00 030 t- oo os -U9 pine 'SAang 0-rH rejoin CDUJ r- oo osw UOISU3d JO 9STTBO ptre X9S ^ OS ^ fiC g ^ u. u. ^mgoco- ^googoso Employees. M.OU P9UOIS -TI9d JI UOTS rH C* CO rH M CO ^ m eo -* m o ^t< in co Tt< m co t- oo os r, GO os. r> oo os* 1 t* OO O^w jo l?q8u?N rH (M CO -* m CD I- 00 OS 9JIM JO rH (N CO rH (M CO * m co ^ m m t- 00 05H f oo oso -U A'lfui^ ^ rH ^CO * u m o t> oo os uon.anooo O rH N CO 00 OS AJ9S 9AT:p-e rH (JJ CO rH (N CO * m co -. m co t- OO O3H t- oo oso 90II-EJ; -U9 siu'ea^ug 90, 'SAans 93v O O rH W CO rH M CO -* m co T< in CD t oo os t- oo os SU-BJ319A O rHUl COC/ >> > * ' m co t- 00 050 'S1IIT2J^II9 PU'E SJOAIAJinS s rH N^CO H- c<5 in cou t> oo ase Is O ( -H W CO rH C CO rH W CO rH 0* CO rH t- GO OS t- oo OSH 79 ference was made by punching certain numbers on these cards by means of the Powers punching machine. After the cards were punched, they were taken to the Chicago city hall and there sorted on the Powers sorting machine. The results were then tabulated- DIFFICULTIES ENCOUNTERED IN COLLECTING DATA FOR INVESTIGATION OF FUNDS. Iii no cases were the records relating to the funds kept in such condition as to make possible an investigation of the experience of the fund for the period chosen, without reference to outside sources. In the Chicago police fund, the records were complete for such an investigation, with the exception of part of the data on those who died while in retirement on pension during the early years of the 10-year period chosen. In the Chicago firemen's fund, practically the only records kept were those giving receipts and disbursements under the fund, and had it not been for the active cooperation of all interested in this fund, both those in active service and on pension, an actuarial investigation would have been impossible. In the municipal employees' fund, the records were in a satisfactory condition considering the fact that payment of pen- sions began only on July 1, 1916, and that there was almost end- less detail involved in establishing the period of service that would count toward pension in the cases of some of the older employees. At the time we drew off the data, however, the records were not complete. In the Chicago teachers' fund, the information sought on those who were no longer in the service on January 1, 1916, and on those in service on that date who had not filed their sheets with us (the latter class comprising about 40 per cent of the teachers) was obtained from the cards and records in the offices of the Board of Education. This was a matter of extreme difficulty, complicated because of the change in name when a female teacher married and remained in service. We exercised as great care as possible in get- ting this data correct and used every means at our disposal to crosscheck on our work, so as to avoid duplicate sheets on the same individual. Although we can not hope that our inforina- tion is as accurate as in the cases of the Chicago police fund and Chicago firemen's fund, where some 99 per cent of those in active service filed sheets with us, nevertheless we believe that whatever inaccuracy may have crept in will not affect our results materially. PLAN OF INVESTIGATION OF FUND. The plan of the investigation of each fund will unfold itself as we proceed with the discussion. The plan of exhibiting our monetary tables, however, is common to all funds on which we are able to render a complete report, and consists of two parts: one, a yearly valuation, showing the amounts per year that may be expected to be paid in pensions if the present plans continue ; and the other, called a balance sheet, exhibiting what is ordinarily known as a valuation, giving under assets the amount in the fund and the present values of all the items of income that are guaran- 80 teed to accrue to the fund, and under liabilities the present values of expected future pension payments to pensioners of the fund, January 1, 1916, and to those at that time in active service when they become pensioned, together with eligible dependents. The balance sheets are not concerned with costs for future en- trants, but with costs due to present pensioners and to the members of the active service January 1, 1916. REASON FOR TABLE GIVING YEARLY VALUATION. Ordinarily the balance sheet would be sufficient in considering the question of the condition of the fund, as it would show either the amount in surplus to the credit of the fund after all liabilities were accounted for, if the fund was in a solvent condition, under the plan of pension payment adopted; or it would show the extra amount, for the raising of which provision must be made if the fund would remain solvent, in the case that sufficient funds were not being accumulated. Such a solution, however, would not indicate what amount the employing body must expect to provide annually to meet pension payments, and as it appeared to us that this information would be im- portant, in order to enable all persons concerned to know the financial demands per year, we have, at the expense of an immense amount of labor, presented tables showing this yearly cost. RATE OF INTEREST ASSUMED IN THE BALANCE SHEET. In preparing a balance sheet such as is shown in the police fund in Table XVI, p. 103, and in determining the percentages of salaries that would have to be deducted if future entrants were to pay for their own pensions by direct contributions, it is necessary to as- sume a rate of interest to be used in finding the present values of assets and liabilities. It is desirable to select a rate which is suf- ficiently high to provide for the employees a fair return on their investment and which at the same time is not in excess of what the fund could reasonably be expected to earn over a long period. The rate of 4 per cent, compounded annually, is adopted for this valuation, as it is thought that this could be 'earned in view of the present and prospective rates on long term city, municipal or state bonds. THE TREATMENT IN THE BALANCE SHEET OF SOURCES OF REVENUE OTHER THAN EMPLOYEES' CONTRIBUTIONS. In the balance sheets we have listed among the assets the present values of only those amounts which are guaranteed permanently. Thus, the seven-tenth mill tax for the police fund, the three-tenth mill tax for the firemen's fund, and the tax of an amount equal to the amount paid in by the employees during the previous calendar year in the fund for municipal employees of Chicago, being of a temporary na- ture, are not included in assets. On the other hand the payment by the city of Chicago of an amount equal to the amount contributed by the teachers to the Chicago teachers' fund is guaranteed without limitation of time, and consequently its present value is included in the assets in the balance sheet of that fund. In comparing the balance sheets of these four funds, it must therefore be borne in mind carefully that the amounts to be provided 81 from sources other than contributions from salaries of employees, are, in the cases of the three funds first mentioned, the present values of the total provisions from all these other sources ; whereas, in the case of the Chicago teachers' fund, the present value of the amount that must be provided from other sources is the provision that must be made over and above the present payment by the city of an amount equal to the amount contributed by the teachers. PREDICTED COSTS MAY NOT COINCIDE WITH ACTUAL COSTS. Our investigations assume, of necessity, that the entrance on pension is at a uniform rate within any given year. This is not what will probably actually occur, and when it does not, pre- dicted costs may be realized a few months before or after the time indicated in our tables. The assumption, however, can lead to ho error of practical importance. GROWTH OF CITY NOT CONSIDERED. In our investigations we have not, in the case of any fund, taken into account the probable future growth of the city. Our reasons for this are twofold : 1. The cost of providing pensions for those who would join the service to fill the need for an increasing body of employees required by an increasing population, would necessarily be, on the average, the same per entrant as the cost of providing pensions for those who entered the service to maintain it at its present size. 2. No assumption could be made, upon which all would agree. REPORTING VALUES OF THE EXPECTATION TO THE NEAREST DOLLAR. It will be observed in all our tables showing costs by years, that we have reported near the ends of certain columns some numbers smaller than any pension paid. Such numbers merely signify the calculated value of the expectation. We give the val- ues of expectations out to the last dollar, even when amounts run into hundreds of thousands, or even millions, of dollars. Thus in the Chicago police fund, we report $2,209,233 as the value of the ultimate normal expectation of pensions per year. The last three figures namely, 233 of this number have no practical importance, except to indicate that we have calculated the value instead of estimating it. THE POLICE FUND OF CHICAGO. THE BENEFITS. The following outline gives briefly a notion of the benefits: To Employees. No pension is less than $600 nor more than $900. Service pensions within these limits: Pension of one-half of salary attached to rank held for at least one year immediately prior to retirement is paid to all who choose to retire after 20 years of service. Disability pensions : 82 Pension of one-half of final salary is awarded without service requirement, if disability occurs when in, and in consequence of, the performance of duty. Pension ceases when disability ceases. To Widows of Employees. Widow whose husband was retired on service pension, provided marriage took place at least six months before retirement, receives pension of deceased husband. Widow whose husband was retired on disability pension, pro- vided marriage took place before date of retirement, receives pension of deceased husband. Widow whose husband lost his life in performance of duty also widow whose husband died from any cause while in service after 10 years of service, receives a pension of one-half salary of rank held by husband for one year immediately prior to death, but in no case less than $600 nor more than $900. To Other Dependents of Employees. In all the following cases each family receives an amount equal to the pension provided for deceased father or the mother, to be divided equally among the children under 16 years of age: Children of service pensioner, if no widow survives or surviving widw is ineligible because of date of marriage to former pensioner; children of disability pensioner, if no widow survives or if widow marries; children of policeman killed in performance of duty, if no widow survives ; children of policeman who dies from any cause after 10 years of service. Explanatory Note. The following tables, I-III, pp. 83, 84 ; give a sort of summary of the results of the tabulations from the actual experience. This data is needed to determine rates at which certain changes are taking place. In order to save space, we can show our plan only in the form of a very general outline with details omitted. DETERMINATION OF RATES OF CHANGES ON WHICH COST OF PENSIONS DEPENDS. From the experience, as outlined in Tables I-III, we proceeded to prepare for the various ages, the rates of mortality, rates of withdrawal from the service, rates of disability retirements, rates of service retirements and such probabilities as were needed to solve the problem of determining future costs. For this purpose, we formed exposure tables which indicate the amount of service that has been rendered at given ages and what occurred with respect to number of deaths, retirements and withdrawals at such ages. The actual rates were then graduated into regular sequence. These results are given in Table IV, p. 85. To illustrate the meaning of these numbers, take for in- stance a number such as 0.0262 in Column (2) opposite age 28. This number means that at age 28, withdrawals by resignation 83 '9161 'I 'UBf JO SB S9SB TllTAi. '90IAJ9S JO SJB9A" 3a6m a 6 oi mi^ U9K 916T 'T 'UBf JO SB S9J3B TUTM. '9OJOJ 9Aj:pB uo U3UI '9161 'I 'tnef jo SB ^;IAV '1 uo '9161 't 'UB (IT) PUB (01) '(6) '(8) '() '(9) JO rans ' ya9TU9.IT} -9J ye S9SB q^TAi. 'S1U9TU 5U9Tn9jp9a JO UT 89Tj:nCuT raoaj (M 10 CO CD 05 ff* JO 9UII TIT STITE9ri2 N 39.... 1 40 41 o 42 o 43 o 3 1 3 44 o 1 45 1 2 2 46 2 g 2 2 9 Etc. Detail for each age. Totals.... 76 66 1 479 106 18 555 TABLE III (Chicago Policemen). ACTUAL EXPERIENCE WITH DISABILITY PENSIONERS. (1) (2) (3) (4) (5) (6) (7) (8) ;"|| S 5 ;Bfl S'oS "Ec^ a^5oi ^ X tn fH ^ ri ?o g3d|l o2 rt P 2 ^^"cj 2"d 5^^tm 4J O-S rt 8 g W-H"^ Sisl fi cc^ rt H Q^ oi l-:2 . *e ci wo ^Ss H 32.... o 1 33 1 1 34 o o 35 1 1 o Q 36 o o o 1 o o Etc. Detail for each age. "Totals.... 19 17 2 27 14 1 46 or dismissal are at the rate of 2.62 per year per 100 men of that age on the force. In dealing with the probable future cost for widows, we needed to know what the probabilities are that men of various classes and ages will leave widows eligible to a pension. For this purpose, we calculated the probability that a man dying at a given age will leave a widow, the probability that a man dying in active service will have had at least 10 years of service, and the probability that a man dying in active service will have had at least 20 years of service. These results are also given in Table IV, p. 85. 85 TABLE IV (Chicago Policemen). (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 1 J3 ^2 551 <*-,O -i rt a " * O w J'~ rta2 DJ >. 1- Sc" S^H !* u/3 ri fi 0^* S S 2.a rt 0-iti H .JL.4-1 s Sc IliEj > . 3 SSs rt ^-0 H g L "g 4-l fl 03 IH |l t g H C/2 C u_. 4) | rt'-t-i H SSSog 9t*ml Lt t-> P 2 B"5g ogffg Sill! pjrtftQ^ H *S SS 2 v z* 5-Sfc gss 2SS 2S* G ri^-aaj . *-> o rt a, rt eta 2 u 5c S' I9|SS 1SH pill cj^-a y . *%%o% 5 .s. E > !l*i Ism .a^" M ri a l - P 5 > . w>> Sgs d *H^ K Rates of disability retirements. Rates of service re- tiremnts. Rates of mortality among- service pensioners plus probabilities o f return to service. Probabilities that a man dying- leaves a widow. Probabilities that a man dying in act- ive service had been 10 or more years in service. Probabilities that a man dying- in act- ive service had been 20 or more years in service. 89... 0.3959 90. 4545 91 .... 0.5325 92... 6343 93 7342 94.... 0.8571 We required also the average ages of wives for various ages of husbands, and average length of time during which service pensioners of given age had been on the pension roll. See Tables V and VI, below. TABLE V (Chicago Policemen). AVERAGE AGE OF WIFE FOR VARIOUS AGES OF HUSBAND. ( Graduated Values ) . Age of hus- band. Averag-e ag-eof wife. Ag-e of hus- band. Averag-e ag-e of wife. Ag-e of hus- band. Average ag-e of wife. Age of hus- band. Average agre of wife. Ag-e of hus- band. Average age of wife. 25 23.0 35 32.0 45 41.0 55 49.8 65 58.9 26 24.1 36 32.8 46 41.9 56 50.7 66 59.7 27 24.9 37 33.7 47 42.7 57 51.6 67 60.4 28 25.8 38 34.7 48 43.4 58 52.7 68 61.0 29 26.8 39 35.5 49 44.3 59 53.6 69 61.5 30 27.6 40 36.5 50 45.2 60 54.7 70 62.1 31 28.5 41 37.3 51 46.0 61 55.5 71 62.7 32 29.5 42 38.3 52 47.0 62 56.4 72 63.3 33 30.3 43 39.2 53 47.9 63 57.3 73 64.0 34 31.2 44 40.1 54 48.9 64 58.1 74 65.0 TABLE VI (Chicago Policemen). AVERAGE TIME SERVICE PENSIONERS OF GIVEN AGE HAVE BEEN ON THE PENSION ROLL. (Graduated Values). Average Average Average Average Average Pre- sent ag-e. time on pension roll. Present ag-e. time on pension roll. Present age. time on pension roll. Present age. time on pension roll. Present age. time on pension roll. (Years.) (Years.) (Years.) (Years.) (Years.) 43 1.75 50 2.02 57 2.90 64 4.75 71 9.15 44 1.76 51 2.18 58 3.12 65 5.12 72 10.05 45 1.80 52 2.24 59 3.32 66 5.50 73 11.00 46 1.85 53 2.32 60 3.50 67 6.00 74 12.00 47 1,87 54 2.45 61 3.75 68 6.48 75 13.00 48 1.90 55 2.60 62 4.03 69 7.10 76 14.00 49 1.95 56 2.75 63 4.38 70 8.40 77 15.00 We needed also the rates of mortality on widows, but as the ages at death of those widows who had died while pensioners were not available, we were unable to find these from the exper- ience of the fund. We were compelled, therefore, to rely upon 87 outside experience for this information, and chose the Combined Experience Table of Mortality. This we checked against the death rates of widows of New York policemen and found that the two agreed well. Regarding rates of mortality among disability pensioners, on account of the scarcity of data we were obliged to adopt for such pensioners the rates of other experiences. We have chosen, as best adapted to our purpose, the rates compiled from various funds by the eminent authority on pension funds, Mr. H. W. Manly. ACTIVE SERVICE TABLE AND SALARY AND PENSION SCALES. The rates given in Table IV were used to construct the active service table (Table VII, p. 87). In this table, the columns (2) to (7) are constructed by applying the rates at each age to the num- ber of survivors at that age. To illustrate the meaning of this table, we may note that with the 57,170 persons at age 40 under observation for a year, and with rates experienced during the 10 years from 1906 to 1916, we should find 429 withdrawals, 40 deaths in line of duty, 489 deaths from other causes, and 63 dis- ability retirements. The salary and pension scales were prepared from salaries of the active service as of January 1, 1916. The pension scale thus constructed is a proper standard for future entrants on the pen- sion rolls. The two scales represent merely a graduation of the average salaries or pensions at given ages. For those already on pension we knew the actual pensions, and therefore did not re- quire a pension scale. These actual pensions are given in Tables VIII, IX, X and XI, pp. 88 to 91. TABLE VII (Chicago Policemen). ACTIVE SERVICE TABLE, AND SALARY AND PENSION SCALES. (1) (2) (3) (4) (5) (6) (7) WU3 IS oSS & < Active service. Withdrawals. Dying- in line of duty. Other deaths. Disability re- tirements. Service retire- ments. Total decrement Cols. (3)+(4)+( +(6) +(7). K 2z o W 2 675 00 1 350 15 6 590 00 3 540 10 7(vs no 1 410 1 1 4 600 00 2 400 Totals 22 $13 815 1:!.... 1 66000 660 Grand total ol all pensions given in Tables VIII, IX. X and XI, $813.212. CLASSES OF PENSIONERS, PRESENT AND FUTURE. In making our calculations, the whole group under observation was divided into three classes, as follows: 1. All pensioners on the pension roll January 1, 1916, together with their dependents eligible for pension upon death of any such pensioner. 2. All in active service January 1, 1916, together with their surviving dependents eligible for pension. 3. All who enter service after January 1, 1916, together with their surviving dependents eligible for pension. WIDOW PENSIONERS. It was desirable for our purpose to separate widow pension- ers, both present and future, into the following three classes : (A) Widows whose husbands died in performance of duty or from injuries received in performance of duty. (B) Widows whose husbands were either service pensioners or active members of the force at death after at least 20 years of service. (C) Remaining widows these include widows whose hus- bands died from any cause other than injuries received in perform- ance of duty within more than 10, but less than 20, years of serv- ice, and the small subclass whose husbands, though disabled, did not receive injuries directly in performance of duty. CHILDREN PENSIONERS. On January 1, 1916, there were 22 families of children on the tension roll. We collected data on the children for all partici- pants from January 1, 1906, to January 1, 1916, but the expected number of families that are left with both parents dead is so small as hardly to constitute a very reliable basis of prediction for the future. It is certain that under present provisions of the law, the costs for children's pensions have reached practically a normal cost; in other words, that the system is carrying a normal load. For chese reasons, we carry the children's pensions at their present :ost in our predictions of future costs. For mortality, among children, we used the Standard Indus- :rial Table of Mortality. 7PL 92 ALL PENSIONERS ON PENSION ROLL JANUARY 1, 1916, TOGETHER WITH THEIR DEPENDENTS ELIGIBLE FOR PENSION UPON DEATH OF ANY SUCH PENSIONER. The expected cost by years under this class is given in Table XII, p. 96. ALL IN ACTIVE SERVICE JANUARY 1, 1916, TOGETHER WITH THEIR SURVIVING DEPENDENTS ELIGIBLE FOR PENSION. The expected cost by years under this class is given in Table XIII, p. 98. ALL WHO ENTER SERVICE AFTER JANUARY 1, 1916, TOGETHER WITH THEIR SURVIVING DEPENDENTS ELIGIBLE FOR PENSION. The expected cost by years under this group is given in Table XIV, p. 100. It will be observed that, we have given no value for widow pensioners of new entrants in 1916. This value is so small that we have simply assumed it would be zero and applied the pen- sion rates to the entrants into active service as if they entered at the end of the year of entrance. TABLE xv. This table contains the totals of Tables XII, XIII and XIV, and thus includes the total expected costs of pensions by years in this fund. It also gives for each year, until the system carries its' normal load, the ratios of pension payments to salaries, the per- centage of salaries contributed to pensions by employees, and the percentage of salaries that must be contributed from sources other than contributions by employees to maintain pensions under the present plan. It is given on pp. 101, 102. TABLE XVI. This table presents the balance sheet pertaining to this fund. For further reference to it, see p. 103. SIGNIFICANT OBSERVATIONS FROM TABLE IV. The rates of withdrawal by resignation and dismissal are, in general, low compared with those of other occupations on which we have data. The rates of mortality for the younger ages in the active serv- ice are light in comparison with -rates given in standard mor4 tality tables used in life insurance, and in comparison with tables based on the general population. The mortality remains rather low until a little above age 40, when it increases gradually to a rate which somewhat exceeds that of the American Experience Table of Mortality. The rate of mortality among service pensioners is high in comparison with rates in standard tables from age at the time of retirement up to about age 79, after which the experience coincides closely with the American Experience Table. The rate of mortality in line of duty is not easily compared with other accidental death rates, as accident tables are not avail- 93 able. The rates given are larger than corresponding rates for the New York police force. However, it is clear that the mortality in the line of duty is so low as to show that the popular impression that the Chicago police service is extremely hazardous is not well founded on fact. The disability rates compare favorably with those of certain fraternal orders with total and permanent dis- ability. Within the 10-year period there have been service retire- ments at an age as low as 41. The rate of such retirement grad- ually increases, becoming heavy at from ages 45 to 50 and reach- ing a maximum at age 57. THE PENSIONERS WHO WILL COME FROM FUTURE ENTRANTS INTO THE ACTIVE SERVICE. During the 10 years considered in this investigation, the aver- age age at entrance to the police force is 29.7 years. When a cer- tain class of re-entrants is eliminated, the average age is 29.1 years. In making the valuation, an entrance age of 29 is assumed. The lower the age of entrance, the less is the cost for pensions in relation to salary. The maintenance of a service of the size of the present one, under the same conditions of death and withdrawal as those found in the period from 1906 to 1916, would require that 219 men enter the service annually at ages averaging near 29 years. This num- ber of entrants was therefore used at age 29, and the annual cost of thus maintaining pensions in the service was determined. This is exhibited in Table XIV. PRESENT AND FUTURE COSTS. It will be noted from Table XV that the pension payments in 1916 will amount to about 13.3 per cent of salary payments, and that this per cent will increase gradually for about 40 years, when the system will carry slightly more than the ultimate normal load. This larger cost at the end of about 40 years is due to the nature of the distribution of ages of present participants in the fund. The pensions will cost about 34.3 per cent of salaries when the system is carrying its ultimate normal load. The total salary payments to participants as of January 1, 1916, is within less than one-half per cent of what the salaries for 4,830 men will be when the pension system carries its normal load; in fact, for all practical purposes it is as well for us to assume that salary payments will be constant as to introduce the slight variations that will follow from calculating salaries to the active service by means of a salary scale and the age distribution of the present active service. COMPARATIVE COSTS FOR DISABILITY PENSIONERS AND FOR SERVICE PENSIONERS. We observe from Table XIV that when the pension system carries its ultimate normal load, the annual value of the disability pensions is $34.714, while the annual value of the service pensions is $877,661. Expressed as percentages of the total cost of all pensions, including those to widows and children, the disability pensions amount to 1.57 94 per cent of the total payments, while the service pensions amount to 39.7 per cent of the total pension payments. COMPARATIVE COSTS FOR PENSIONS TO MEN AND TO THEIR WIDOWS. We find from Table XIV that when the pension system carries its ultimate normal load, the annual value of pensions to men is $912,375, while the value of widows' pensions is $1,283,043. Ex- pressed as percentages of all pensions, those to men amount to 41.3 per cent of all pension payments, while the pensions to widows amount to 58.1 per cent of the total of all pensions. The pensions to children amount to 0.6 per cent of all pensions. COMPARATIVE COSTS FOR DIFFERENT CLASSES OF WIDOWS. When the pension system carries its ultimate normal load, the pensions have an annual value of $96,234 to widows of Class A, $921,416 to widows of Class B, and $265,393 to those of Class C. Expressed as percentages of the total cost of all pensions, the pensions to widows of Class A amount to 4.36 per cent, those to widows of Class B to 41.7 per cent, and those to widows of Class C to 12.0 pen cent. (For definitions of these classes see p. 91.) RESERVES FOR THE FUTURE FORCE. The law of 1915 provides that a reserve fund shall be established and maintained for the payment of pensions to policemen (their widows and children) becoming members of the police force subse- quent to January 1, 1916. The law does not specify any standards with respect to interest rate, mortality rate or withdrawal rate. It requires that one or more competent actuaries shall determine the amount necessary to establish and maintain such reserve funds. It seems , clear that standards of solvency should be prescribed when adequate reserves are to be provided, just as surely as standards must be pre- scribed for legal reserves in life insurance. The present reserve provision is too loosely drawn to be practical. PERCENTAGE OF SALARIES REQUIRED FROM FUTURE ENTRANTS TO PROVIDE PENSIONS IF THE PENSIONS WERE TOTALLY CONTRIBUTORY. To pay for pensions in accord with rates given by the 10 yearsl experience from January 1, 1906, to January 1, 1916, and with all) deductions from salaries accumulated at 4 per cent compound in- terest and with no returns of contributions in case of withdrawal or death, would require for men entering at age 29 a deduction! of 13.6 per cent from salaries throughout the period of active! service. RESERVES ON THE BASIS OF EXPERIENCE. If the city should add to the present contributions of emj ployees. about 11.6 per cent of salaries of new entrants, there would thus be produced a proper reserve fund for a sound pension system foil such new entrants. VALUATION BALANCE SHEET. The balance sheet in Table XVI deals with assets and liabil- ities for those who are at present participants in the pension fundJ 95 It excludes all consideration of future entrants into the service. It may be observed that the total payment of pensions to these participants will amount to $73,091,631, of which $1,851,066 will be contributed by these participants giving 2 per cent of their salaries, and also that $120,847 constitutes the cash on hand. A better way to inspect the balance sheet is to give attention to the present value of assets and liabilities. The present value, with a 4 per cent interest rate, of the liabilities for pensions is $32,014,976. The present value of the contributions of 2 per cent of salaries is $1,291,250. The cash on hand amounts to $120,847. This means that the present value to the city of carrying out the pension system for present participants under the police fund amounts to $30,602,879, if the city should assume the responsibility of carrying out this system. 96 ,4 ^ ^ 9$ uJ si 5^ af w " ei iO t^- O Oc^iot'"Oi'^'- - o^Oi30^t f cc ^S gS i s l o d :53$33S$i3il;! o 97 r- < ao i>i>r-t-i-oco5co?0i O*' O CO go 3S ^ o 3 73 >4 1-H *4 i-< V* It K ) * 04 M il M 9K M If * V* <* VH 1-4 1-4 ?T4 vH V4 i>4 *4 rvice sione 99 s OO ci GO CD CO ci ^H ) 5 1.492 2, 631 108 4 231 2 343 282 19^6 2.091 3,334 132 5 557 2 573 76 1927 2,719 4,134 $ 1 , 563 157 8 573 2 801 523 ig->8 3.384 5,030 3 550 183 12 147 3 026 810 1929 4,088 6,022 6 071 210 16 391 3 249 716 1930 4,830 7,119 9.347 238 21 534 3 470 090 1931 5,627 8,313 13 433 267 27 640 3 687 584 1932 6,469 9,607 18.283 325 34 684 3 901 509 1933 7.356 11,009 23.839 415 42 619 4 111 091 1934 8,361 12,514 30 041 540 ' 51 456 4 318 359 1935 9,260 14,131 36. 798 700 60 889 4 514 575 1936 10,274 15,863 44,030 900 71,067 4,707,172 1937.... 1938.... 1939.... 1940.... 1941.... 1942.... 1943.... 1944.... 1945.... 1946.... 1947.... 1948.... 1949.... 1950.... 1951.... 1952.... 1953.... 1954.... 1955.. . 1956.... 1957 1958.... 1959.... I960.... 1961.... 1962.... 1963.... 1964.... 1965.... 1966.... 1967.... 1968.... 1969.... 1970.... 1971.... 1972.... 1973.... 1974.... 1975.... 1976.... 1977.... 1978.... 1979.... 1980.... 1981 1982.... $ 10,730 18, 103 30,552 45.642 63,523 84,367 108,095 134,668 163,903 195, 537 229,266 264,726 301,557 339,367 377.746 416.269 454, 530 492, 142 528,763 564,080 597.845 629. 854 659,971 688. 105 714,197 738,211 760,010 779,612 797,077 812,441 825,781 837, 193 846,797 854,726 861,136 866.190 870,054 872.891 874,869 876,161 876, 942 877,367 877,566 877,639 877,658 877, 661 11,333 12,429 13,567 14, 744 15,948 17,160 18,367 19,558 20.722 21,846 22,922 23,946 24.921 25, 846 26,725 27,562 28,353 29,099 29, 800 30,454 31,052 31,604 32.097 32,536 32,922 33,258 33,547 33,793 33,998 34,168 34,305 34,415 34,499 34, 564 34,612 34,647 34,671 34,687 34,698 34,704 34,710 34,713 34,714 34,714 34,714 34.714 17,706 19,597 21,713 23,871 26,212 28.458 30,871 33,346 35,865 38,407 40,965 43,510 46,034 48, 535 51,006 53.381 55,833 58, 186 60,496 62,759 64,978 67,213 69,264 71,322 73,335 75,285 77, 166 78,972 80,694 82,333 83,881 85,333 86.688 87,942 89,070 90,140 91,084 91,701 92,671 93,319 93.879 94,357 94,765 95,093 95,369 95.593 $ 5,918 10,183 17,052 26,208 36,762 49, 174 63,510 79,814 98,080 118,310 141,016 164.381 190,063 217,362 246, 141 276, 294 307,638 339, 985 373,035 406.624 440. 497 474,412 508, 125 541,405 575. 181 605,957 636.538 666,043 694, 172 720,768 745,861 769,318 791,024 810,894 828, 873 844.939 859, 105 871,422 881,972 890,865 898,226 904,221 908,993 912,707 915,522 917,590 51.632 59,556 67,726 76,052 84,494 93,017 101,587 110,170 118.732 127.242 135.668 113,987 152, 176 160, 191 168.016 175.627 183.009 190,141 196,998 203,559 209, 810 215,741 221,343 226,608 231,531 236. 109 240.340 244.224 247.425 250,296 -252,847 255,091 257,043 258.721 260, 145 261,337 262,319 263,115 263, 748 264,239 264,612 264,886 265, 080 265.211 265.295 265.345 1.054 1,280 1,515 1.700 1,954 2,280 2,650 3,090 3,600 4,091 4.600 5,079 5,700 6,246 6, 750 7,370 8,080 8,710 9,400 9,916 10,500 11.100 11.520 11,940 12,300 12,644 13.000 13.300 13,400 13,500 13,570 13,600 13,630 13,650 13,670 13,690 13,710 13,730 13,750 13,770 13,785 13.800 13.815 13,815 13.815 13,815 98,373 121,148 152, 125 188,217 228,893 274,456 325,080 380,646 440,902 505, 433 574,436 645,629 720,451 797,547 876,384 956,503 ,037,443 ,118,263 , 198, 492 ,277,392 ,354,682 .429,924 ,502,320 ,571,916 ,639.466 ,701,464 .760.P01 ,815,944 ,866,766 ,913.506 ,956,245 ,994.950 2,029,681 2,060,497 2,087,506 2,110,943 2,130,943 2,147,546 2,161.708 2.173,058 2,182,154 2,189,344 2,194,933 2, 199, 179 .2,202,373 2,204,718 4,892.470 5.069.373 5.236.324 5.393.271 5.538.378 5.671.373 5.791.923 5,899,889 5,995.424 6,078,986 6,151,244 6,212,917 6,264,768 6,307.632 6.342,429 6,370,140 6,391,740 6, 408, 188 6,420,418 6,429,221 6,435,441 6, 439, 708 6,442.546 6.444,392 6,445,546 6.446.221 6,446,549 6.446.792 6.446,871 6,446,892 6,446,894 6,446,894 6,446,894 6,446,894 6,446.894 6,446,894 6,446,894 6, 446, 894 6.446,894 6.446.894 6,446,894 C, 446, 894 6,446,894 6,446,894 6,446.894 6. 446. 894 * For definitions of these classes see p. 91. 101 TABLE XIV Concluded. Total pen- Chil- sion pay- Total sal- Year. Service pension- ers. Disability pension- ers. Widows of Class A. Widows of Class B. Widows of Class C. dren pen- sion- ments on account of future entrants ary pay- ments on account of future crs. to police entrants. force. 1983.... $877,661 $34.714 $95,772 $919,054 $265,372 $13,815 $2.206,388 $6.446.894 1984.... 877.661 34,714 95,909 920, 444 265,385 13,815 2.207,928 6.446.894 1985.... 877.661 34,714 96,092 920,676 265,390 13,815 2.208.348 6,446,894 1986.... 877,661 34,714 96,092 921.052 265, 392 13.815 2.208.726 6.446,894 1987.... 877,661 34,714 96,146 921,256 265.393 13,815 2,208,985 6,446,894 1988.... 877,661 34,714 96.184 921,356 265,393 13,815 2.209,123 6.446,894 1989.... 877,661 34,714 96,221 921,396 265, 393 13,815 2, 209, 200 6,446.894 1990.... 877,661 34,714 96,233 921,411 265,393 13,815 2.209,227 6,446,894 1991.... 877,661 34,714 96,234 921,416 265,393 13,815 2, 209, 233 6,446,894 1992.... 877.661 34,714 96,234 921,416 265,393 13,815 2,209,233 6,446,894 1993.... 877,661 34.714 96.234 921,416 265,393 13,815 2,209.233 6, 446, 894 Totals. $35,505,791 $1,769,526 $4,161,351 $32,913,073 $12,218,286 $594,279 $87,162.306 $410,243,176 TABLE XV (Chicag-o Policemen). SHOWING THE COMBINED ANNUAL PENSION PAYMENTS TO ALL CLASSES, AND THE PERCENTAGES THESE PAYMENTS ARE OF THE TOTAL SALARIES. THIS TABLE IS FORMED BY COMBINING RESULTS IN TABLES XII, XIII, AND XIV, AND INCLUDES ALL PAYMENTS OF PENSIONS TO PRESENT ACTIVE SERVICE. PRESENT PENSIONERS, FUTURE ENTRANTS, AND TO WIDOWS AND CHILDREN. Date. Pensions to present pen- sioners aii-l to their widows and children. Pensions to persons now in active service and to their widows and children. Pensions to future entrants into service and to their widows and children. Grand totals of all pen- sions. Ratios of pension payments to salaries expressed in percent- ages. Percent- ages con- tributed by em- ployees. Percent- ages con- tributed by city and un- provided for. 1916.... $800,492 $ 54,009 $ $ 854,501 13.3 2.0 11.3 1917 781,848 154,558 25 936, 431 14.5 2.0 12.5 1918 761.641 260,566 130 .022,337 15.9 2.0 13.9 1919 740. 554 363,874 345 ,104,773 17.1 2.0 15.1 1920 718.142 462,562 687 ,181,391' 18.3 2.0 16.3 1921 695,642 561,372 1,140 ,258,154 19.5 2.0 17.5 1922 672,558 655,216 1.715 ,329,489 20.6 2.0 18.6 1923 650,031 743,694 2.416 ,396,141 21.7 2.0 19.7 1924 626,840 832,786 3.255 .462,881 22,7 2.0 20.7 1925 602,847 919, 926 4.231 ,527,004 23.7 2.0 21.7 1926 579,219 999,648 5.557 ,584,424 24.6 2.0 22.6 1927 555,681 ,072,505 8,573 ,636,759 25.4 2.0 23.4 1928 531,159 .145.040 12,147 .688,346 26.2 2.0 24.2 1929 506,470 .211.692 16,391 .734,553 26.9 2.0 24.9 1930 181,481 ,274,337 21,534 ,777,292 27.6 2 25.6 1931 456,796 .336,327 27,640 ,820,763 28.2 2.0 26.2 1932 431,146 .389.425 34,684 .855,255 28.8 2.0 26.8 1933 406, 1K3 .446,092 42,619 ,894,894 29.4 2.0 27.4 1934 381,330 .495, 7i 51.456 ,928,518 29.9 2.0 27.9 1935 866,068 ,539,686 60,889 ,95fi,663 30.4 2.0 28.4 1936 331,753 .576,849 71,067 ,979,669 30.7 2.0 28.7 1937 908,875 .611,111 98.373 2,017,759 31.3 2.0 29.3 193* 283.787 .638,999 121.148 2.043,934 31.7 2.0 29.7 1939 Ml, 856 .665,897 152,125 2.079.277 32.3 2.0 30.3 1940 B8.701 ,680,375 188,217 2.107.293 32.7 2.0 30.7 1941 216.825 .688.091 228.893' 2.133.809 33.1 2.0 31.1 1942 196.759 .687,414 274.456 2.158,629 33.5 2.0 31.5 1943 177, :>(>:> .681.583 325.080 2.183,925 33.9 2.0 31.9 1944 158.595 ,667.027 380,646 2,206,268 34.2 2.0 32.2 1945 141,114 ,645,747 440,902 2,227,763 34.6 2.0 32.6 1946 124.657 .618.313 505,433 2.248,403 34.9 2.0 32.9 1947 109,442 .580,952 574,437 2.264,831 35.1 2.0 33.1 1948 95,437 .540,146 645, 629 2,281,212 35.4 2.0 33.4 1949 82,721 .493.3*0 720,451 2,296,552 35.6 2.0 33.6 BO.... 71,120 .440,870 797.547 2,309,537 35.8 2.0 33.8 1951 60,562 .383,803 876,384 2,320,749 36.0 2.0 34.0 1952 51,419 .322,592 956,503 2.330,514 36.1 2.0 34.1 1953 43.221 .258.687 1,037.443 2,339,351 36.3 2.0 34.3 102 TABLE XV Concluded. Date. Pensions to present pen- sioners and to their widows and children. Pensions to persons now in active service and to their widows and children. Pensions to future entrants into service and to their widows and children. Grand totals of all pen- sions. Ratios of pension payments to salaries expressed inpercent- ages. Percent- ages con- tributed by em- ployees. Percent- ages con- tributed by city and un- provided for. 1954 $36, 141 $1 191,595 $1,118,263 $2,345,999 36 4 2 34 4 1955 1956...... 1957 . 29,872 24,111 19 991 1,122,458 1,053,409 981 069 ,198,492 ,277,392 354 682 2,350,822 2,354,912 2,355 742 36.5 36.5 36 5 2.0 2.0 2 34.5 34.5 34 5 1958 16,296 909,429 , 429, 924 2,355,649 36,5 2 34 5 1959 I960 13,089 10,421 839, 197 770, 404 ,502,320 ,571,916 2,354,606 2,352,741 36.5 36.5 2.0 2.0 34.5 34.5 1961 1962 . 8,327 6,597 702,528 636 981 ,639,466 701,464 2,350,321 2 345 042 36.5 36 4 2.0 2 34.5 34 4 1963 1964 . 5,219 4,079 573,261 511,993 ^60, 601 ,815,944 2,339,081 2,332,016 36.3 36 2 2.0 2 34.3 34 2 1965 1966 1967 1968 1969 1970 1971.. . . 3,207 2,545 1.985 1,555 1,213 960 767 453,870 398,652 317,529 300,032 255,524 216,154 180, f'77 ,866,766 ,913,506 ,956,245 ,994,950 2,029,681' 2,060,497 2,087,506 2,323,843 2,314,703 2,305,759 2,296,537 2,286,418 2,277,611 2,268,950 36.0 35.9 35.8 35.6 35.5 35.3 35 2 2.0 2.0 2.0 2.0 2.0 2.0 2 34.0 33.9 33.8 33.6 33.5 33.3 33 2 1972 1973 1974 . 616 495 391 149,230 121,605 97 658 2,110,943 2,130.943 2, 147,546 2,260,789 2,253,043 2 245 595 35.0 34.9 34 8 2.0 2.0 2 33.0 32.9 32 8 1975 1976 1977 1978 1979 312 243 187 142 106 77,275 59, 979 46,770 35,028 25 226 2,161,708 2.173,058 2,182,154 2,189,344 2,'194,933 2,239,295 2,233,280 2,229,111 2,224,514 2 220 265 34.7 34.6 34.6 34.5 34 4 2.0 2.0 2.0 2.0 2 32.7 32.6 32.6 32.5 32 4 1980 1981 . 79 57 18,190 12,875 2,199,179 2,202,373 2,217,448 2,215,305 34.4 34 4 2.0 2 32.4 32 4 1982 1983 1984 40 25 15 8,908 6,106 3,884 2,204,718 2,206,388 2,207,928 2,213,666 2,212,519 2,211 827 34.3 34.3 34 3 2.0 2.0 2'0 32.3 32.3 32 3 1985 1986 1987 1988 8 5 2 2,403 1,398 753 367 2,208,348 2,208,726 2,208.985 2,209,123 2,210,759 2,210,129 2,209,740 2,209,490 34.3 34.3 34.3 34 3 2.0 2.0 2.0 2 32.3 32.3 32.3 32.3 1989 156 2,209 200 2,209 356 34 3 2 32 3 1990 58 2 209 227 2 209 285 34 3 2 32 3 1991.. 19 2,209,233 2,209,252 34 3 2 32 3 1992 6 2 209 233 2 209 239 34 3 2 32 3 1993 1 2,209,233 2,209,234 34 3 2 32.3 Totals $14 878 091 $58 213 540 $87 162 306 $160 253 937 103 BALANCE SHEET SHOWING STATUS OF FUND AS OF JANUARY 1, 1916. to ll s i Si 03 "** i For definitions of classes see p. 91. ill! 5 S " ! o i 11 CD !^- OO i I i i i s =>" ^^SSg.So : 8 | ;Jj 2 J5^-Bg : p""" Q ^"^ ' Liabilities. ^i 2 .l oBS8s$5 $ S 3 !iS i 1 5 2 ^ " s " w " B !l! 2 sp i ^ 00 N CO 5 S O I I s1 !!" ; !]p! ri 0- ? 1 " " s " l I i i * ' 5 " :g:S g:a;aJ2 >-i .Q o o oa rt : :g a : S cj-c a .*3i3aN g g;s; :sss 1 I ^2 ie ! :IPI U {^'^'^ as; UOJu'S ' ; S : 2i g :" g ^ :S : ri ^'tt-nS c : : : 00 ^ O fi 'frt 'O rri '^McniH a 8=8=8 siass'i g ~ o :-g ;| | ;2|S g ons to 555 pensioners now on service pension roll . . ons to 46 pensioners now on disability pension roll ons to 123 widows of Class A now on pension roll. . . ons to 278 widows of Class B now on pension roll.. . ons to 255 widows of Class C now on pension roll.. . ons to 22 families of children now on pension roll. . cfi , ra d HH o H> rt cd ,d f irements f line of d retirement ty retireme retirement ements, \ ement. nts. Cols. ( -(10)+(11). sS on active fc 1 Survivors of active fore with ages as Survivors of on active fo with ages aj Entrants still with ages at Entrants with tive force be with ages at Withdrawals or dismissal withdrawal. Deaths in lin ages at deatl Other deaths death. S- s ! Hi 3*3 s3* Q Other disabili with ages at Service reti] ages at retir Total decreme (7)+(8)+(9)4 Existing Jan. list with ag 1916. Married men Jan. 1, 1916. 21 1 6 3 2 2 2 3 o 84 16 o 23 g 1 112 21 3 3 6 1 94 7 8 141 32 10 10 17 5 95 16 10 106 15 2 1 18 30 12 26 17 9 99 26 25 3 1 29 39 18 27 37 10 101 23 24 2 3 29 46 28 Etc. Detail for each age. Totals 907 473 1,066 228 272 40 115 46 30 198 701 1,973 1.619 105 TABLE XVIII (Chicago Firemen). ACTUAL EXPERIENCE WITH SERVICE PENSIONERS. (1) (2) (3) (4) (5) (6) (7) (8) Age. Survivors of Jan. l. 1906, still on roll Jan.l, 1916, with ages as of 1906. Deaths among- survivors of 1906, with ag-es at death. Returns to service, of survi- vors of Jan. 1,1906, with ag-es at return. Entrants to pension still on roll Jan. 1, 1916, with ag-es at entrance. Deaths among- en- trants to pension, with ag-es at death. Returns to service of en- trants to pension, with ag-es at return. Existing- on roll Jan. 1,1916, with ag-es as of Jan. 1, 1916. 40.. 1 41 42 43 5 44.. 6 3 45 1 5 1 1 4 46.. 1 9 > 4 47 11 1 4 Etc. Detail for each ag-e. Totals.... 20 30 1 144 41 14 164 TABLE XIX (Chicago Firemen). ACTUAL EXPERIENCE WITH DISABILITY PENSIONERS. (1) (2) (3) (4) (5) (6) (7) (8) Ag-e. Survivors of Jan. 1, 1906, still on roll Jan. 1,1916, with ii!.res as of Jan. 1. 1906. Deaths among- survivors of 1906, with ag-es at death. Returns to service, with ag-es at return. Entrants still on roll Jan. 1, 1916, with ag-es at entrance. Deaths among- entrants to pension, with ages at death. Returns to service of entrants to pen- sion, with ag-es at return. Existing- on roll Jan. 1, 1916, with ag-es as of Jan 1. 1916. 25.. j 26 1 27.. 28 29.. 2 1 30 1 31 4 32 1 33 2 1 Etc. Detail for each ag-e. Totals 25 11 1 58 14 1 83 DETERMINATION OF RATES OF CHANGES ON WHICH COSTS OF PENSIONS DEPENDS. The following table, Table XX, p. 106, is similar to Table IV, p. 85, for the Chicago police fund, in that it gives the rates and proba- bilities resulting from a graduation of rates obtained from the actual experience. As in the case of the Chicago police fund, in dealing with the probable future cost for widows, we need to know what the proba- bilities are that men of various classes and ages will leave widows eligible to a pension. For this purpose, we calculated the probability that a man dying at a given age will leave a widow, and the proba- bility that a man dying in active service will have had at least 20 years of service. These results are also given in Table XX, p. 106. 106 TABLE XX (Chicago Firemen). (1) (2) (3) (4) (5) (6) (7) (8) (9) do) a; Ratesof withdrawal by resignation or dismissal. Rates of mortality on active force from causesother than under (4). JLH 3 rt rt >> 3 ri Sfl 'rC 83 <+-i V s , . sis rt^-s M Rates of disability retirement. Rates of service re- tirement. Probabilities that a man dying leaves a widow. Probabilities that a man dying in act- ive service had been 20 or more years in service. Rates of mortality among se r v i c e pensioners plus probabilities o f return to service. Rates of mortality among disability pensioners. 89 0.3959 0.4000 90 0.4545 0.4250 91 0.5325 0.4580 92 0.6343 0.4830 93 0.7342 0.5000 94 0.8571 0.5330 95 1.0000 0.5710 96 0.6670 97 1.0000 We required also the average ages of wives for various ages of husbands, and the average length of time during which service and disability pensioners of given age had been on the pension roll. These are given in Tables XXI, XXII and XXIII below. TABLE XXI (Chicago Firemen). AVERAGE AGE OF WIFE FOR VARIOUS AGES OF HUSBAND. (Graduated Values). Age Average Affe of Average Age of Average Age of Average Age of Average of hus- band. age of wife. hus- band. age of wife. hus- band. age of wife. hus- band. age of wife. hus- band. age of wife. 23 23.7 34 31.0 45 40.8 56 50.5 67 60.1 24 23.9 35 31.9 46 41.6 57 51.4 68 61.0 25 24.3 36 32.7 47 42.5 58 52.2 69 62. 26 24.8 37 33.7 48 43.4 59 53.1 70 63. 27 25.4 38 34.6 49 44.3 60 54.0 71 64. 28 26.0 39 35.4 50 45.1 61 54.9 72 65. 29 26.7 40 36.3 51 46.0 62 55.8 73 66. 30 27.5 41 37.2 52 46.9 63 56.6 74 67. 31 28.4 42 38.0 53 47.8 64 57.5 75 68. 32 29.2 43 38.9 54 48.7 65 58.4 76 69. 33 30.1 44 39.8 55 49.6 66 59.3 77 70. TABLE XXII (Chicago Firemen). AVERAGE TIME SERVICE PENSIONERS OF GIVEN AGE HAVE BEEN ON THE PENSION ROLL. (Graduated Values). ent age. fi c S i-j ^ sent age. .1 P gss fi |5 a^ s gs^ sent age. rage tim pension 11. (Years sent age. igS s^ 885 E > O >-i E > O >H 8 O H C ^2 E OJ C O > O Ui E O V-i ^ < fi < <5 cu 0) fl>i Preseni gfc 2 4 1 a JH PH bficu^ rj p,_; O -i 4 c I SfS^ M < \ I PH bo3^ 2 a d 2 3 c 0) w 1 gc a ~ 2 < I z PH &fc 2 < 32. . 33 34 35 36 1.75 2.0 2.2 2.5 2.8 42 43 44 45 46 5.0 5.2 5.5 5.7 6.0 52 53 54 55 56 7.9 8.3 8.6 9.0 9.3 62 63 64 65 66 11.7 12.1 12.5 13.0 13.5 72 73 74 75 76 17.2 18.0 18.7 19.5 20 2 82 83 84 25.2 26.1 27.0 37 38 3.2 3.5 47 48 6.4 6.7 57 58 9.6 10.0 67 68 14.1 14.7 77 78 21.0 21.8 39 3.9 49 7.1 59 10.4 69 15.2 79 22 6 40 4.3 50 7.2 60 10.8 70 15.7 80 23.4 41 4.7 51 7.5 61 11.2 71 16.5 81 24 3 On account of the inadequacy of the data, we were compelled to use for rates of mortality among pensioners rates other than those derived from the experience of the fund. After having made com- parisons with various experiences, we concluded that we would be justified in using the same rates of mortality as were used for retired policemen and their dependents, and accordingly they were adopted. ACTIVE SERVICE TABLE AND SALARY AND PENSION SCALES. The rates given in Table XX, p. 106, were used to construct the active service table (Table XXIV, below). The salary and pension scales were prepared as in the case of the Chicago police fund. TABLE XXIV (Chicag-o Firerhen). ACTIVE SERVICE TABLE, AND SALARY AND PENSION SCALES. (1) (2) (3) (4) (5) (6) (7) g~ .. 36i i V Withdraw- als. Dying- in line of duty. Other deaths. Disability re- tirements. Service re- tirements. Total decre- ments. Cols + (4) + (5)-i- + (7). Salary sea from acti service Jan 1916. Pension sea for males of agre at e trance for 1 ture entran 21 100 000 3 470 120 320 120 4 030 22 95,970 3, 292 115 317 120 3,844 23.. 24.. 25.. 26 92, 126 88,469 84,988 81 681 3,114 2.946 2,779 2,622 111 106 102 123 312 310 307 304 120 119 119 119 :::::::::: 3,657 3,481 3,307 3,168 $1,080 ,174 .222 ,260 $540 587 611 630 27.. 28.. 29 78,513 75,501 72 638 2, 450 2,280 2,092 135 140 142 305 306 307 122 137 150 3,012 2,863 2.691 ,286 ,312 ,338 643. 656 669 SO 69, 947 1,931 141 308 176 2,556 .356 678 31.. 32.. 33.. 34 67,391 64.972 62.699 60.620 ,759 ,592 .379 ,176 141 140 . 138 136 310 312 317 322 209 229 245 256 2,419 2,273 2,079 ,890 ,374 ,386 ,402 ,418 687 693 701 709 35.. 36 58.730 57 005 998 855 134 132 329 336 264 272 ,725 ,595 ,434 ,450 717 725 37 55 410 742 130 342 277 ,491 .464 732 38. 39 53.919 5 9 538 625 557 128 126 347 351 281 280 ,381 ,314 .482 .500 741 750 40 51 224 482 124 353 287 ,246 ,520 760 41. 42. 43. 49, 978 48, 677 47,234 410 365 274 122 119 117 355 354 351 289 289 287 125 316 567 ,301 ,443 1,596 ,536 ,554 ,570 768 785 109 TABLE XXIV Concluded. (1) (2) (3) (4) (5) (6) (7) co ^ 0) 4;^ Z** 4J tx < u 0) 1- Withdraw- als. Dyingrinline of duty. Other deaths. Disability re- tirements. Service re- tirements. Total decre- ments. Cols +(4) (5;+( +(7). Salary sea from act i ^ service Jan 1916. *J *H rj H*\ 1 S MI G 0^-> ^ 3 *-> OH 44. 45. 46. 47. 48. 49. BO. 51. 52. 53.. 54 45,638 43,968 42.26(5 40.497 38,728 36,944 35.1S1 33,253 31.363 29,447 27 :,-'2 214 176 139 109 89 66 53 40 25 15 113 109 104 99 94 88 81 75 69 63 58 348 342 336 329 323 316 308 301 294 286 275 283 279 273 264 256 248 239 227 217 203 190 712 796 917 968 ,022 ,105 ,187 ,247 ,311 ,358 423 ,670 ,702 ,769 ,769 ,784 ,823 ,868 ,890 ,916 ,925 ,946 $1,586 .604 ,622 .640 .656 ,670 ,686 ,702 ,714 ,724 734 $793 802 811 820 828 835 843 851 857 862 867 55.. 56 25,576 2:< t>;c> 53 48 266 259 177 164 ,445 489 ,941 960 ,746 758 873 879 57.. 58.. 59 21, (575 19,731 17,812 44 39 34 271 284 271 149 134 119 ,480 ,462 ,425 ,944 ,919 849 ,767 .778 787 883 889 893 60.. 15,963 30 287 105 370 792 798 899 61 14 171 25 278 90 999 69 9 805 QO2 62. 12,479 20 271 76 28 595 816 908 63.. 64.. 65.. 66.. 10,884 9,414 8,075 6,853 15 10 4 259 248 237 224 62 47 52 58 ,134 .034 929 832 ,470 ,339 ,222 1 114 ,823 .831 .841 850 911 916 921 925 67 5 739 207 734 941 860 QOf) 6*.. 4,798 202 648 850 869 934 69 197 578 775 860 930 70 189 501 690 850 925 71. 159 438 597 850 Q->; 131 375 506 850 73.. 103 309 412 850 9''5 74 78 238 316 850 75 57 177 234 850 Q-)^ 76 39 134 173 850 77.. 25 98 1 9 3 850 92^ 78 13 66 79 850 79.. 3 39 HO 11 11 81 8-' Totals. 39,116 4.197 15,488 8,679 32,520 100,000 Tables XXV, XXVI, XXVII and XXVIII, on pp. 109, 110 and 111, respectively, are entirely similar to Tables VIII, IX, X and XI, pp. 88, 89, 90 and 91, respectively, in the Chicago police fund. To these is also added Table XXIX, p. 1 12, giving the average number of children under 16 years of age of firemen of various ages. TABLE XXV (Chicago Firemen). THE NUMBER AND AVERAGE PENSION OF SERVICE PENSIONERS AS OF JANUARY 1, 1916. CLASSIFIED WITH REGARD TO AGE. A&e. Num- ber. Average pension. Total pensions. Age. Num- ber. Average pension. Total pensions. 44 45 3 4 $734 67 766 50 $ 2,204 3 066 54 ... 55 8 15 828 25 727 13 $ 6.826 10 907 46 4 789 50 3 158 56 g 773 50 6100 47 4 719 75 2 879 57 5 781 60 3 908 48.. 7 771 86 5 403 58 4 69 75 2771 49... 3 861 67 2,585 59 4 799 25 3 197 50 5 759 hO 3 798 60 12 783 75 94fc 51 7 716 00 5,012 61 2 842 50 1 685 52 7 745 43 5,218 62 2 ;->( 50 1 449 53 7 785 29 5,497 63 4 733 75 2 935 110 TABLE XXV Concluded. Agre. Num- ber. Average pension. Total pensions. Agre. Num- ber. Average pension. Total pensions. 64... 65 5 4 $ 796 60 886 25 $3,983 3, 545 74 75 2 2 $679 50 716 00 $1,359 1 432 66 4 785 00 3, 140 76 1 567 00 567 67... 68 3 2 1,674 67 730 00 5,024 1,460 77 78 2 2 717 50 625 00 1.435 1 250 69 6 669 00 4,014 79 1 725 00 725 70 1 759 00 759 80 1 825 00 825 71 3 1,060 67 3,182 99 1 725 00 725 79 6 846 30 5 078 73 3 783 00 2,349 Totals 164 $128 743 TABLE XXVI (Chicag-o Firemen). THE NUMBER AND AVERAGE PENSION OF DISABILITY PENSIONERS AS OF JANUARY 1, 1916, CLASSIFIED WITH REGARD TO AGE. d 5 oJ 3 Pensioners disabled in performance of duty. Pensioners disabled but not in performance of duty. Totals. 1 a CO 73 SJ "o G 53 EH 2 2 JS g Id 2 d 2 d | Sd ,3 cu s| o ii "S fac'2 gS IN O 93 El o ii 4-1 O |i bo ?o & ^ S >^ o o ^ <$ 4 -< IO OD I-H CO CO" ( " o t- ^ o oo 7 a " in t-- oo os o * en in *-> 4> islllslllllslllslisllilllslllll s S I 2 I ss s o fc, 73 ^a o ti S 5 g W 00 I- 501 i oi M ei i o t- cc 35 o c?5 '-'COC< 1 3fr--HT-. aj sis S3g : T< oo (N C I if? 1^- 1(7 - sS og pi w IA ao M < o o s r- (^HT li !^C<(M O i o*' ^ n O co o*' Mpq ^ w O 02 ;d rt go iT5 QC3 * O !D W O 30 if it CC ! S 8" 2 if S S S 83 '4 S S J: 3 S 8 S 8 go S d S S S 8 g| ! O5OiOiO5^ 119 rH ^Q ^Q M ^ C ^ S >-< *"* o fj fl-a o d .2 8S 3 5^ ^ O JM P< 'CS n3 Q_) d'tf > "2 o _ .^ .j rft *} ^ r* *^ (H o rt'> *-< d g t hri SP W 0) fl<^ ^ > d -t-".rt * ^ 3 M ^ 2 ->-> O S a'rt v r* hBrrt . S^^-o u N V ill *j ri al^S ls * . ti "- 1 " g is 2-5: fl 4J ^ 0-C fe **d s s &s gs * rt^ a>5>. ll-G-l Is3l*o S>f38 si*! -> rt fi ,-H 11 jsofe ri+j a .2 V-M'O ^8-Sft JJJ & 5 OH O Cfl fin AH 1950.... $45, 142 $661,624 $ 382,387 $1,089,153 $2,966,115 36.7 1.0 35.7 1951 .... 40,118 639,995 414, 169 ,094,282 2,961,396 37.0 1.0 36.0 1952.... 35,473 614.223 445,831 ,095,527 2, 957, 186 37.1 1.0 36.1 1953.... 31,254 588,554 478, 143 ,097.951 2,953,741 37.2 1.0 36.2 1954.... 27,332 560,878 510,915 ,099,125 2,948,237 37.3 1.0 36.3 1955.... 23,801 532, 152 543,961 ,099,914 2,947,165 37.3 1.0 36.3 1956.... 20,594 502,543 577, 105 ,100,242 2,944,675 37.4 1.0 36.4 1957.... 17,757 472,047 610, 104 .099,908 2,942,827 37.4 1.0 36.4 1958.... 15,223 440,946 642,810 ,098,979 2.941,917 37.4 1.0 36.4 1959. . . . 12,962 409,689 675,063 ,097,714 ' 2,939,232 37.4 1.0 36.4 I960.... 10,983 379,995 706,698 ,097,676 2.937.854 37.4 1.0 36.4 1961 .... 9,263 349.662 737,558 ,096,483 2,936,698 37.3 1.0 36.3 1962.... 7,775 319,850 767, 502 ,095,127 2,935.604 37.3 1.0 36.3 1963.... 6,499 290,925 796,418 ,093.842 2,934,732 37.3 1.0 36.3 1964.... 5,380 263,063 824, 173 ,092,616 2,933,496 37.2 1.0 36.2 1965.... 4,427 236, 248 850,631 ,091,306 2,933,630 37.2 1.0 36.2 1966... 3,626 210,701 . 875,673 ,090,000 2,933,257 37.2 1.0 36.2 1967.... 2,937 186,637 899, 197 .088,771 2,932,938 37.1 1.0 36.1 1968.... 2,381 164. 046 921,107 ,087,534 2,932.716 37.1 1.0 36.1 1969.... 1,900 143, 055 941,333 ,086,288 2.932,617 37.0 1.0 36.0 1970.... 1,513 123,794 959,830 ,085,137 2,932,592 37.0 1.0 36.0 1971 .... 1,189 106, 153 976.579 ,083,921 2,932,592 37.0 1.0 36.0 1972.... 931 90,221 991,748 ,082,900 2,932,592 36.9 1.0 35.9 1973.... 714 76,020 1,005,054 ,081,788 2,932,592 36.9 1.0 35.9 1974.... 540 63, 448 1,016,749 ,080,737 2,932,592 36.9 1.0 35.9 1975... 403 52,448 1,026,914 .079,765 2,932,592 36.8 1.0 35.8 1976.... 292 43, 028 1,035,633 ,078,953 2,932,592 36.8 1.0 35.8 1977. . . . 208 34,729 .043,011 ,077,948 2,932,592 36.8 1.0 35.8 1978.... 143 27,755 .049,164 ,077.062 2,932,592 36.7 1.0 35.7 1979.... 97 21,915 .054,226 ,076,238 2,932,592 36.7 1.0 35.7 1980.... 64 17,064 ,058,337 ,075,465 2,932.592 36.7 1.0 35.7 1981 .... 39 13,128 ,061,638 074.805 2.932,592 36.7 1.0 35.7 1982.... 23 9,949 ,064,258 074,230 2.932,592 36.6 1.0 35.6 1983. . . . 12 7,422 ,066,316 073,750 2,932,592 36.6 1.0 35.6 1984.... 7 5,472 .067,912 073,391 2,932,592 36.6 1.0 35.6 1985.... 3 3.'954 ,069.134 073,091 2,932,592 36.6 1.0 35.6 1986 2,809 ,070,045 072,854 2,932,592 36.6 1.0 35.6 1987 1,946 .070,704 072,650 2,932,592 36.6 1.0 35.6 1988 1,305 ,071,163 072,468 2,932,592 36.6 1.0 35.6 1989 834 ,071,469 ,072,303 2.932,592 36.6 1.0 35.6 1990 513 ,071,660 ,072,173 2,932,592 36.6 1.0 35.6 1991. 297 .071,771 072,068 2,932,592 36.6 1.0 35.6 1992 158 ,071,831 071 , 989 2,932,592 36.6 1.0 35.6 1993 75 ,071,860 071,935 2,932,592 36.6 1.0 35.6 1994. 27 ,071,869 071,896 2,932,592 36.6 1.0 35.6 1995 9 ,071,873 071,882 2,932,592 36.6 1.0 35.6 1996.... 3 .071,874 071,877 2,932.592 36.6 1.0 35.6 1997 1 ,071.874 071,875 2,932,592 36.6 1.0 35.6 Totals. $6, 760, 522 !26, 656, 026 $46,293,884 $79. 710, 432 $244, 283, 603 123 SjS s - o " als <*H O &X5 O O O ;2?2$$32 O ^ CD > 8 2 33 gi S *n co P-t te O 4> s s? 2 2 ssss 25 CM i> S ii "S IS : 2 u : S XJ JS S :S 4> . D B :g f. f r. r r r C fl C C C d o o o o o o C whose Class Class A from ass B from > ^i3 G M IS SS CG !l ^ s dren of dren of S2 ooo?>oo 5 o o 1 s S c ^ 2 rt O S r^ rt r< ^ r> .~ r> -^ r! O -^ O -^ U -S .S O 81111111119 lil ill * . OH CL, fL, 124 THE TEACHERS' FUND OF CHICAGO. THE BENEFITS. Service pensions : Pensions of $400 are granted to all who choose to retire after 25 years of service, the last 15 being in Chicago. Disability pensions : Pensions are granted to those retired on account of disability after 15 years of service, the last 9 being in Chicago. The amount of the disability pension is such that its ratio to $400 equals the ratio of the contributions of the individual to $450. Teachers retired under previous acts have their pensions gradu- ated so as to receive not less than $320 nor more than the maximum benefit herein named. DATA ON MALES AND FEMALES KEPT SEPARATE. In this service both sexes are largely represented, and as the average age of entering this service was very much lower for females than for males it seemed advisable to treat them separately in this investigation. The results show a decided difference in costs per individual for men and women. This difference is doubtless due in part to the facts that the male teachers receive on the average higher salaries than the female teachers and that the higher the salary the less is a person inclined to accept a pension at an early age. Table XXXV below, gives a summary of the results of the tabu- lation of the data on female teachers, and Table XXXVI, p. 125, on the male teachers. TABLE XXXV. (Female Teachers). ACTUAL EXPERIENCE WITH THOSE WHO HAVE BEEN IN ACTIVE SERV- ICE WITHIN THE PERIOD OF JANUARY 1, 1906, AND JANUARY 1, 1916. (0 (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 6 4 , en "**""' 5 Survivors of Jan. 1, 1906, not on active list Jan. 1, 1916, with ages as of Jan. 1, 1906. Entrants still in active service, with ages at entrance. Entrants withdrawn from active list before Jan. 1, 1916, with ages at entrance. Withdrawals by resig- nation or dismissal, with ages at with- drawal. Deaths, with ages at death. Disability retirements, with ages at retire- ment. Service retirements, with ages at retire- ment. Total decrements. Cols. (6)+<7)+(8)+<9>. CD cd -'2 ^ Oj In ** 'S RJ <3 w 17.. 2 6 1 18 5 13 1 , 19.. 7 no 11 20 16 1 420 2 2 20 38 12 560 122 12 12 61 22 65 400 94 38 38 144 23-. 100 42 198 55 48 48 223 etc Detail for each age. Totals 3,712 1,681 3,298 841 1,990 163 53 316 2,522 7.010 125 TABLE XXXVI. (Male Teachers). ACTUAL, EXPERIENCE WITH THOSE WHO HAVE BEEN IN ACTIVE SERV- ICE WITHIN THE PERIOD OF JANUARY 1, 1906, AND JANUARY 1, 1916. (1) (2) (8) (4) (5) (6) (7) (8) (9) (10) (11) ,) 13 3 21 18 3 t 1 0.) 1 11 3 4 4 6 23 2 28 2 1 1 7 } 5 2 16 1 o 14 25 5 1 13 2 5 1 6 11 Etc. Detail for each agre. Totals 368 110 376 53 113 27 3 20 163 744 DETERMINATION OF RATES OF CHANGES ON WHICH COST OF PENSIONS DEPENDS. In Table XXXVII below, are shown graduated rates and proba- bilities for female teachers, and in Table XXXVIII, p. 126, for male teachers. It may be stated here that the rates of disability retirements among the female teachers are sufficiently high to warrant our making use of them, but that in the case of the male teachers they are too low to give a criterion on which to base any calculations. We accordingly classed male disability pensioners with male service pensioners. TABLE XXXVIL (Female Teachers). Age. Rates of withdrawal by resigna- tion and dis- missal. Rates of mortality in active service. Rates of disability retire- ment. Rates of service re- tirement. Rates of mortality among dis- ability pen- sioners. Rates of mortality among- service pensioners. 20 0035 00060 21 0100 00070 22 0213 00078 23 0310 00085 24 0460 00092 25 0551 00100 26 0585 00109 27 0608 00116 28 0815 00123 29 0.0611 0.00131 30 0594 00140 31 0545 00148 32 0490 00157 33 0448 00165 34 0.0415 00173 35 0387 00182 1 o 00020 36 0.0359 00190 00055 37 0330 00200 00085 38 0301 00213 00110 0241 39 0272 00227 00131 0.0244 40 0245 00245 00153 0247 41 0.0216 o oo-v,r> 00174 0.0250 42 0191 00288 00192 0042 0253 01165 126 TABLE XXXVII Concluded. Agre. Rates of withdrawal by resigna- tion and dis- missal. Rates of mortality in active service. Rates of disability retire- ment. Rates of service re- tirement. Rates of mortality among dis- ability pen- sioners. Rates of mortality amongr service pensioners. 43. 0174 00313 00208 0057 0^*57 01195 44 0.0159 00340 00219 0066 0260 01225 45 0146 00370 00232 008 0264 01265 46 0135 00399 00 9 40 0096 0268 01324 47 48 49 0.0125 .0.0115 0.0109 0.00432 0.00467 00501 0.00247 0.00248 00240 0.0110 0.0127 0144 0.0272 0.0278 0283 0.01374 0.01427 01481 50 . 0101 00547 00212 0164 0290 01533 51 58 0.0095 0089 0.00592 00642 0.00199 00198 0.0185 0210 0.0296 0302 0.01585 01642 53 0083 00695 00208 0^40 0311 01694 54 0079 00755 00237 0270 0320 01753 55 0075 00820 00 9 83 0305 0329 01812 56 0071 0.00891 00312 0.0339 0340 01873 57 0068 00961 00318 0375 0350 01938 58 0.0065 0.01036 * 0.00312 0.0415 0.0363 02010 59 60 0.0062 0058 0.01116 01200 0.00292 00258 0.0462 0512 0.0377 0392 0.02092 02179 61 62 .. 0.0055 0052 0.01315 01462 0.00212 00145 0.0564 0618 0.0409 0427 0.02288 02404 63 0049 01640 00105 0671 0448 0^546 64 65 0.0046 0043 0.0181 0199 0.00068 00038 0.0732 0806 0.0467 0488 0.02710 02900 66 67.. 0.0040 0036 0.0218 0238 0.00010 0.0890 0992 0.0513 0539 0.03121 03370 68 0.0031 0.0261 0.1130 0.0569 03664 69 0025 0285 1310 0600 03991 70 0017 0311 154 0633 04358 71 0.0008 0339 185 0671 04773 72 . . 0369 209 0714 05226 73 0403 0.235 0.0759 05731 74 0439 258 0810 06285 75 0478 283 0866 06889 76 0520 323 0930 07551 77 ... 0575 382 1000 08260 78 0652 473 1080 09019 79 0760 600 1165 09882 80 852 1260 10793 81 1 000 0.1370 0.11771 82 .. 1483 12835 83 1605 13970 84 0.1725 0.15207 85 1851 16524 86 0.1990 0.17946 87 ... . 2140 19466 88 2290 21096 89 0.2450 0.22835 90 2630 24690 91 0.2825 0.26664 92 0.3030 0.28759 93 3240 30979 94 0.3465 0.33321 95 . 0.3710 0.35787 96 3970 0.38375 97 0.4250 0.41082 98 0.4550 0.43879 99 4880 0.46820 100 5240 49836 TABLE XXXVIIL (Male Teachers). Ag-e. Rates of with- drawal by resignation or dismissal. Rates of mor- tality in active service. Rates of ser- vice retire- ment. Rates of mor- tality among- pensioners. 19 0315 0.00112 20 0328 00128 21 0340 00144 22 0349 0.00165 23 0352 00182 127 TABLE XXXVIII Concluded. Agre. Rates of with- drawal by resignation or dismissal. Rates of mor- tality in active service. Rates of ser- vice retire- ment. Rates of mor- tality among" pensioners. 24.. 0.0363 0.00198 25 0366 00221 26 0368 00238 27 . 0372 00263 28 0372 00297 29.. 0370 00350 30 0363 00432 P.. 0359 00540 0355 00611 K. 0340 00629 34.. 0325 00608 35 0305 00585 36.. 0285 00560 37 0255 00533 38... 0232 00483 39 0214 00409 40... 0198 00330 41 0182 00317 42.. 0168 00282 43 . 0157 00275 44 0146 00265 45.. 0135 00257 46 0125 0075 47.. 0117 00325 48 0108 00350 0025 0389 49... 0100 00380 0045 0391 50.. 0090 00451 0056 0393 51... 0080 00490 0062 0395 52.. 0071 00528 0070 0397 53... . 0062 00572 0080 0399 54.. 0053 Q06 9 2 0090 0402 55... 0044 00695 0105 0407 56.. 0035 00798 0113 0411 57 0025 00876 0126 0418 58.. 0016 00960 0141 0426 59 0008 01044 0156 0436 60.. 0004 01134 017 0448 61. 0001 01343 0189 0460 62.. 01554 0205 0476 63 01800 0220 0494 64 02080 0238 0516 65 '. 02388 0259 0538 66... .... 02565 9 82 0566 67 9 850 0311 0593 68... . . . 03180 0345 0626 69 03380 0382 0660 70 03600 0427 0698 71 03874 0500 0738 72 04237 0650 0778 73 04723 0900 0823 74 05366 1300 0875 75 06201 1900 0933 76 07261 2600 0999 08581 375 1070 78 10196 75 1152 79 12139 88 1248 80 1358 81 1497 82 1647 83 1820 84 2020 85 2250 86 2525 87 0.2840 89 0.3180 3580 90 4040 91 4560 92 5110 93 5750 94 6500 95.... 7340 96 8180 97 9020 98 9850 128 The experience of the service relating to mortality among service and disability pensioners was too meagre to serve as a basis for deter- mining these rates of mortality ; consequently, we used the rates of the New York teachers' experience. ACTIVE SERVICE TABLES AND SALARY SCALES. The rates given in Tables XXXVII and XXXVIII, pp. 125 and 126 respectively, were used to construct the active service tables Tables XXXIX and XL, on pp. 128 and 129, respectively. The salary scales were prepared as in the cases of the police and firemen's funds TABLE XXXIX. (Female Teachers). ACTIVE SERVICE TABLE AND SALARY SCALE. cu (2) (3) (4) (5) (6) (7) (8) Age. Active service. With- drawals. Deaths. Dis- ability retire- ments. Service retire- ments. Total decre- ments. Cols. 3+ 4+5-4 6. Salary scale from active service Jan. 1, 1916. 20... 100 000 350 60 410 $ 745 21 99 590 996 70 1 066 765 22 98 524 2 099 77 2 176 790 23 96 348 2 987 82 3 069 815 24 93 279 4 291 86 4 377 850 25 88 902 4 899 89 4 988 880 26. 83 914 4 909 91 5 000 920 27 78 914 4 798 92 4 890 965 28... 74 224 4 552 91 4 643 1 010 29 69 381 4 239 91 4 330 1 050 30 65 051 3 864 91 3 955 1,095 31 61 096 3 330 90 3,4 9 1 135 32 57 676 2,826 90 2 9T6 1,170 33 54 760 2 453 90 2 543 1.210 34 5 217 2 167 90 2 257 1 240 35 49 960 933 91 10 2 034 1,265 36 47 926 721 91 26 1,290 37 46, 088 521 92 39 1*652 1,315 38 44 436 338 95 49 1 482 1 , 340 39 42 954 168 98 56 1 322 1,358 40 41 632 020 102 64 1,186 1,370 41 40 446 874 107 70 1 051 1,385 42 39 395 752 113 76 165 1 106 1,395 43 38 289 666 120 80 218 1,084 1,410 44 37 9 05 592 126 81 246 1,045 1,420 45 36, 160 528 134 84 297 1,043 1,430 46 35 117 474 140 84 337 1,035 1,445 47 34 082 496 147 84 375 1,032 1,460 48.. 33, 050 380 154 82 420 1,036 1,470 49 32 014 349 160 77 461 1,047 1,488 50 51... . 30,967 29 911 313 284 169 177 66 60 508 553 1,056 1,074 1,504 1,520 52 28 837 257 185 57 606 1,105 1,540 53 27,732 230 193 58 666 1,147 1,560 54 26 585 210 201 63 718 1,192 1,585 55 25 393 190 208 72 774 1,244 1,603 56 24, 149 171 215 75 816 1,277 1,622 57 22 872 156 220 73 858 1,307 1,640 58 21,565 140 223 67 895 1,325 1,658 59 20, 240 125 226 59 935 1,345 1,675 60 18 895 110 227 49 987 1,353 1,690 61 17,542 96 231 37 989 1,353 1,713 62 16, 189 84 237 23 1,000 1,344 1,735 63 14,845 73 243 16 996 1,328 1,758 64 13 517 62 245 9 989 1,305 1,785 65 12,212 53 243 5 984 1,285 1,815 66 10, 927 44 238 1 973 1,256 1,855 67 9 671 35 230 959 1,224 1,908 68 8,447 26 220 955 1,201 1,965 69 .. . . 7,246 18 207 949 1,174 2,035 70 6 072 10 189 935 1,134 2,108 71 4 938 4 167 914 1,085 2,210 72 3,853 142 805 947 2,318 129 TABLE XXXIX Concluded. (1) (2) (3) (4) (5) (6) (7) (8) Agre. Active service. With- drawals. Deaths. Dis- ability retire- ments. Service retire- ments. Total decre- ments. Cols. 3+ 4+5+6. Salary scale from active service Jan. 1, 1916. 73 2 906 117 683 800 $2 475 74 2 106 92 543 635 2 775 75 1,471 70 416 486 3 040 76 985 51 318 369 3 318 77 616 35 235 970 3 600 78 346 23 164 187 79 159 12 95 107 80 52 44 44 81 8 g g Totals 65,193 8,286 1 752 24 769 100 000 TABLE XL. (Male Teachers). ACTIVE SERVICE TABLE AND SALARY SCALE. (1) (2) (3) (4) (5) (6) Age. Active service. With- drawals. Deaths. Retire- ments. Total de- crements. Cols.3+4+5. Salary scale from active service Jan. 1, 1916. 19... 100,000 3,150 112 3 262 20 96,738 3 173 124 3 297 21 93 441 3 177 135 3 312 $1 020 22 90,129 3 146 149 3 295 040 23 86 834 3 057 158 3 215 O70 24 83,619 3 035 166 3 201 120 25 80 418 2 943 178 3 121 MM 26 77,297 2 845 184 3 o*>9 220 27 74,268 2,763 195 2 958 260 28 71,310 2 653 212 2 865 325 29 68 445 2 532 240 2 772 O-JK 30 65,673 2 384 284 2 668 430 31 63,005 2,262 340 2 602 490 32 60 403 2 144 369 2 CIO 33 57.890 ,968 364 2 332 1 600 34 55,558 806 338 2 144 1 650 35 53,414 ,629 312 1 941 1 700 36 51.473 467 288 1 755 1 740 37 49,718 ,268 265 1 533 1 790 38.... 48,185 118 2H3 1 351 1 840 39 46,834 ,002 192 1 194 1 900 40 45,640 904 151 1 055 1 960 41 44,585 811 141 952 2 010 42 43,633 733 123 856 2 050 43 42,777 672 118 790 2 110 44 41,987 613 111 724 2 160 45... 41,263 557 106 663 2 225 46 40,600 508 112 620 2.275 47 48 39,980 39 382 468 425 130 138 98 598 661 2,325 2 OUT) 49.. 38 721 387 147 70S 50 38 013 342 171 213 726 2400 51... 37 2g7 298 183 231 712 52 36,575 260 193 256 709 2fiOO 53 35 866 2 9 2 205 287 714 2ftcn 54 35 152 186 219 316 55 34 431 151 240 344 79C 56 33 696 118 9 69 381 7ft8 57... 32 928 88 9 88 415 785 2(\K(\ 58... 32 143 51 309 453 Ciq 59 31 330 25 007 400 841 60 30 489 12 346 524 882 61 29 607 3 qqu CCf) not 62... 28 646 445 587 1 032 63 27.614 497 608 1.105 3,300 130 TABLE XL Concluded. (1) (2) (3) (4) (5) (6) Age. Active service. With- drawals. Deaths. Retire- ments. Total de- crements. Cols. 3+445. Salary scale from active service Jan. 1, 1916. 64... 26 509 551 631 1 182 $3 330 65 25 327 592 656 1 248 3 375 66 24,079 618 679 297 3 430 67 22 782 649 709 358 3 480 68 21 424 681 739 4->0 3 530 69 20,004 676 764 ,440 3 590 70 18 564 668 793 461 3 630 71 17, 103 663 855 ,518 3 680 72 15,585 660 ,013 673 3 730 73 13 912 657 252 909 3 780 74 12,003 644 ,560 2 204 3 830 75 9 799 608 862 2 470 3 880 76 7,329 532 ,906 2,438 3 930 77 4,891 420 ,834 2 254 3 960 78 2,637 269 2,044 2,313 3,900 79 324 39 285 324 4 010 Totals 57,350 19. 132 23, 518 100,000 CONTRIBUTIONS OF TEACHERS. Teachers contribute from their salaries $5 for each of the first five years of service, $10 for each of the second five, $15 for each of the third five, and $30 each year thereafter while in active service. Thus, the contributions of individual teachers depend on the amount of service but are independent of the salary of the individual. In our treatment of the pension cost for the future service, we found it neces- sary to form an average contribution scale for each age. This is given in Tables XLI and XLII, below. TABLE XLI. (Female Teachers). AVERAGE CONTRIBUTION SCALE WITH RESPECT TO AGES. Ag-e. Contri- butions. Age. Contri- butions. Age. Contri- butions. Ag-e. Contri- butions. Ag-e. Contri- butions. Agre. Contri- butions. 20... $5 00 30.. $11 90 40.. $24 50 50.. $28 25 60.. $2937 70.. $29 88 21... 5 00 31.. 13 10 41.. 25 60 51.. 28 37 61.. 29 42 71.. 29 90 22.. 5 03 32.. 14 35 42.. 26 20 52.. 28 50 62.. 29 50 72.. 29 92 23.. 5 20 33.. 15 55 43.. 26 65 53.. 28 65 63.. 29 57 73.. 29 93 24.. 5 55 34.. 16 80 44.. 26 95 54.. 28 83 64.. 29 61 74.. 29 95 25.. 5 95 35.. 18 25 45.. 27 20 55.. 28 92 65.. 29 65 75., 29 97 26.. 6 75 36.. 19 50 46.. 27 45 56.. 29 04 69.. 29 70 76.. 29 99 27.. 8 00 37.. 20 75 47.. 27 65 57.. 29 15 67.. 29 75 77.. 30 00 28.. 9 25 38.. 22 00 48.. 27 85 58.. 29 23 68.. 29 80 29.. . 10 60 39.. 23 20 49.. 28 05 59.. 29 32 69.. 29 85 TABLE XLII. (Male Teachers). AVERAGE CONTRIBUTION SCALE WITH RESPECT TO AGES. Age- Contribu- tions. Ag-e. Contribu- tions. Age. Contribu- tions. Age. Contribu- tions. Age. Contribu- tions. 20. ... $5 00 30... $ 7 50 40... $17 80 50. . $24 70 60.... $29 00 21.... 5 00 31... 8 20 41.... 18 80 51. . 25 20 61.... 29 30 22.... 5 00 32... 8 90 42 19 50 52. . 25 70 : 62.... 29 60 23. .. 5 10 33... 9 70 43.... 20 30 53. . 26 20 ! 63.... 29 80 24. .. 5 20 34... 10 70 44 21 20 54. . 26 70 64.... 29 90 25. .. 5 30 35... 11 70 45.... 22 20 55. . 27 10 65.... 30 00 26. .. 5 50 36... 12 80 46.... 22 80 56. . 27 50 66.... 30 00 27. .. 5 80 37... 14 20 47 23 40 57. .. 27 90 28 6 30 38.... 15 50 48.... 23 80 58. .. 28 30 29 6 80 39.... 16 70 49... 24 30 59. .. 28 70 131 DISABILITY PENSION SCALE. The amount of the disability pension is such that its ratio to $400 equals the ratio of the contributions of the individual to $450. From the average of the disability pensions at given ages, we formed the graduated scale shown in Table XLIII, below. This scale we used in the calculation of the probable cost of pensions to future entrants upon disability pensions. TABLE XLIII. (Female Teachers). AVERAGE DISABILITY PENSION SCALE CLASSIFIED WITH REGARD TO AGE. Agre. Pension. Age. Pension. Age. Pension. Age. Pension. 33 $166 43. . $293 53... $305 63.. $310 34 171 44. 297 54... . 305 64.. . 310 35 180 45. 299 55... . 306 65.. . 311 36 193 46. 301 56... . 306 66.. . 311 37.. .. 210 47. 302 57... . 307 67.. . 312 38 230 48. 302 58... . 307 68.. . 312 39 246 49. 303 59... . 308 69.. . 313 40 261 50. 303 60... . 308 70.. .. 313 41 . 279 51. 304 61... . 309 42 288 52. . 304 62... . 309 NUMBER AND PRESENT PENSIONS OF PENSIONERS. In Tables XLIV and XLV, below, are shown the number and present pensions of female pensioners, while Table XLVI, p. 135, shows the same for male pensioners. Since there is only one male disability pensioner, he is included with the service pensioners. TABLE XLIV. (Female Teachers). THE NUMBER AND PENSIONS OF SERVICE PENSIONERS AS OF JANUARY 1, 1916, CLASSIFIED WITH REGARD TO AGE. Age. Number. Total pensions. Afire. Number. Total pensions. Agre. Number. Total pensions. 42... 43 1 $ 400 58... 59 23 23 $8,174 8,293 74... 75 .. 6 3 $2,173 1,052 44. 45. 46. 47. 48. 49. 50. 51. 52 2 4 5 6 12 11 18 23 26 767 1,600 2,000 2,296 4,518 3,977 6,394 8.476 9 375 60... 61... 62... 63... 64... 65.... 66.... 67. ... 68 25 14 18 15 12 17 11 5 U 9,116 5.138 6,623 5,637 4.483 6,572 4,280 1.970 4 320 76... 77... 78... 79... 80... 81... 82... 83... 84 9 5 1 4 1 1 4 3 3.323 1.753 400 1,480 370 370 1,510 1,059 53. 54.. 55 18 28 16 6.366 10. 459 5 806 69.... 70. ... 71 10 12 3,733 4,576 1 905 85... 86... 1 2 370 676 56.. 57.. 19 17 7,053 6,470 72.... 73.... 12 8 4,275 3,102 Totals 467 $172.690 TABLE XLV. (Female Teachers). THE NUMBER AND PENSIONS OF DISABILITY PENSIONERS AS OF JAN- UARY 1, 1916, CLASSIFIED WITH REGARD TO AGE. Ag-e. Number Total pensions. Agre. Number. Total pensions. Age. Number. Total pensions. 36... . 38... 40... 41... 42... 43... 44... 45 4 $153 150 587 210 213 168 917 181 48.. 49.. . 50.. . 51.. . 52.. . 53. . . 54 55 3 I 2 2 1 3 2 $1.016 1,176 653 628 325 804 582 1 815 58... 59 60. . .. 61.. .. 64.. .. 68.. .. 71.. .. 3 4 1 1 1 1 1 $ 746 1.168 162 328 168 370 350 46.... 47 2 2 562 675 56 57 2 1 741 144 Totals 54 $14.992 132 CLASSES OF PENSIONERS, PRESENT AND FUTURE. In making our calculations, the whole group under observation, both male and female, was divided into three classes, as follows: 1. Those on the pension roll January 1, 1916. 2. Those in active service January 1, 1916. 3. Those who enter service after January 1, 1916. On account of the fact that teachers retired under previous act have their pensions graduated so as to receive not less than $320 noi more than the maximum benefit provided by the present law, not al service pensioners on the roll at present receive $400. THOSE ON THE PENSION ROLL JANUARY 1, 1916. In Table XLVII, p. 135, is shown a yearly valuation of the future costs for female pensioners on' the pension roll, January 1, 1916. The yearly future costs for male pensioners, however, which consists oj only one column, is shown in Table LI, p. 142. THOSE IN ACTIVE SERVICE JANUARY 1, 1916. Table XLVIII, p. 136, exhibits the yearly future costs of pension for female teachers in active service January 1, 1916. The yearly future costs for male teachers, which consists of only one column, L shown in Table LI, p. 142. THOSE WHO ENTER SERVICE AFTER JANUARY 1, 1916. Table XLIX, p. 137, exhibits the yearly future costs' of pensions for female teachers who enter the service after January 1, 1916. Th< corresponding table of costs for male teachers is given in Tabl< LI, p. 142. From actual experience, female teachers appear to enter at an average age of a little over 26. We have, therefore, assumed 26" as thi age for future female entrants into the staff. If we take for grantee that the same mortality, withdrawal and retirement rates will be real- ized in the future as in the period from January 1, 1906, to January 1, 1916, 366 female teachers will enter annually if the number o female teachers of January 1, 1916, be maintained in the schools The yearly pension costs for future female entrants as shown in Table XLIX, p. 137, are based on this assumption. The average age of entrance for male teachers is considerably higher than for female teachers, being a little over 31 years. There- fore, in making our valuation for the future yearly costs of pensions to new male entrants, we have assumed 31 to be the age at which they will enter the service. Table LI, p. 142, exhibits the yearly costs to be expected for those entering the service if the male staff is kept at its present size. TABLE L. This table contains the totals of Tables XLVII, XLVIII and XLIX, and thus includes the total costs of pensions by years for female teachers in this fund. It also gives for each year, until the system carries its normal load, the ratios of pension payments to salaries, the percentages of salaries contributed to pensions by female teachers, and the percentages of salaries that must be contributed from 133 sources other than contributions by female teachers to maintain pen- sions for such teachers under the present plan. HYPOTHESIS I AND HYPOTHESIS II, AND REASONS THEREFOR. When teachers enter the Chicago schools with experience, that experience up to ten years may be counted towards service for a service pension, and it may be counted up to six years towards a disability pension. Because of the high age at entrance of both male and female teachers, it is reasonable to assume that a number enter with experience that counts as years of service towards a pension. On account of this fact, and because we may reasonably expect this con- dition to continue, we have treated the problem of future entrants under two hypotheses. Under what we call Hypothesis I, we assume that teachers enter without experience that counts as years of service towards a pension. Under what we call Hypothesis II, we assume that teachers entering the Chicago schools at a certain age, have the same experience as teachers of this age whose entire active service has been in the Chicago schools. There is little doubt but that the most probable condition in regard to experience conforms more nearly to Hypothesis II than to Hypothesis I. However, Hypothesis II gives on the whole a little too much credit for experience outside Chicago. Hence, the results to be most strongly anticipated lie between those given under the two hypotheses, but much nearer those given by Hypo- thesis II, than those under Hypothesis I. TABLE LI. This table for male teachers corresponds entirely to Table L, p. 140, for female teachers. TABLE LII. This table contains the totals of Tables L, p. 140, and LI, p. 142, and thus includes the total expected costs of pensions for both males and females by years under this fund. It also gives, for each year until the system carries its normal load, the ratios of pension payments to salaries, the percentages of salaries contributed to pensions by all teachers and the percentages of salaries that must be contributed from sources other .than contributions by employees to maintain pensions under the present plan. REFUNDS. The law provides that in case of dismissal the full amount of the contributions shall be returned, and that in case of voluntary resigna- tion with less than 15 years of service, one-half the contributions shall be returned. While the experience is meagre to determine the effect of this feature on the condition of the fund, it is a feature that will prob- ably approach an almost stationary value before many years, as the refunds apply mainly to early years of service. We therefore give the following as the experience of the past few years with reference to refunds: October 1, 1909 to October 1, 1910 $ 243 79 October 1, 1910 to October 1, 1911 1,007 81 October 1, 1911 to October 1, 1912 688 49 October 1, 1912 to October 1, 1913 873 00 October 1, 1913 to October 1, 1914 ' 810 47 134 It is pretty clear from this experience that the refunds are an item of relatively small significance. TABLE LIII. The balance sheet in Table LIII, p. 146, gives the present value of assets and liabilities for .present pensioners and for the present active service. For further reference to it, see p. 79. In it we have estimated the item of refunds for the present active service at $800 per year for the ten years for which data was studied. While this may be a slight undervaluation of this liability, the error is not large enough to have any practical significance. The present value, with a 4 per cent interest rate, of the liabilities for pensions is $10,795,641. The present value of the contributions from -teachers is $2,081,935, and of that guaranteed by law from the board of education is $2,081,935. The capital on hand is $1,030,572. This means that there is a deficiency having a present value of $5,601,199. PRESENT AND FUTURE COSTS. It may be noted that the pension payments for male teachers will in 1916 amount to 0.6 per cent of salaries, and that this will increase until the pension cost in about 50 years will be 2.5 per cent of salaries. Later there will be a slight decrease to 2.2 per cent of salaries. The average contribution of male teachers amounts to approximately 0.9 per cent of average salary, and if such contribution had been made by each teacher since he entered the service, assuming 31 as the aver- age age at entrance, this would almost support the system for male teachers. But, in spite of the fact that the board of education con- tributes an amount equal to that contributed by teachers, there is an accrued liability on male teachers, as shown in the balance sheet (Table LIII, p. 146). This is almost entirely due to the fact that teachers began to contribute only at the time of the inauguration of the pension system. Adequate contributions for future entrants at young ages are inadequate for older persons, such as were in the service of the schools at the time when this pension system was put into operation. It may be noted that the pension payments for female teachers will, in 1916, amount to 2.2 per cent of average salaries, and that this will increase until the pension cost in 32 years from now will be about 8.5 per cent of salaries. The average contributions of female teachers vary from 1.5 per cent to 1.6 per cent of average salaries. To support the pension system for such teachers, assuming the average age of entrance as 26, would require a deduction of 2.95 per cent of salaries. OBSERVATIONS REGARDING THE DEFICIENCY. The contributions from teachers and equal contributions from the board of education taken together are adequate to provide pensions for future entrants, and leave a surplus under Hypothesis II of approxi- mately $35,000 per year. The present value of the deficiency of $5,601,199 shown in the balance sheet (p. 146 is due to accrued liabilities that were assumed when the pension system was started, and to the fact that the system 135 was in operation for a number of years before the Board of Education began to contribute on the present basis. However, the sum of $35,000 per year is not sufficient to pay the interest on this deficiency at 4 per cent per annum, and .consequently the deficiency will increase under the present plan of contributing to the fund. TABLE XLVL (Male Teachers). THE NUMBER AND PENSIONS OF PENSIONERS AS OF JANUARY 1, 1916, CLASSIFIED WITH REGARD TO AGE. Age. Number. Total pensions. Age. Number. Total pensions. Agre. Number. Total pensions. 5 \ $ 400 65 78... 1 $400 53 o 66 79 l 400 54 55 1 400 67 68 1 1 $400 137 80 81 1 2 370 770 56 69 2 800 82 57 1 400 70 2 800 83 58 71 84 59 60 1 400 72 73 1 1 400 400 85 86... 2 740 61 74 87 6'2 75 63 1 400 76 Totals 23 $8. 757 64 3 1 140 77 TABLE XLVIL (Female Teachers). PENSIONS ACCRUING TO PERSONS ON PENSION ROLL JANUARY 1, 1916. Year. Service pen- sioners. Disability pen- sioners. Total pen- sions. Year. Service pen- sioners. Disability pen- sioners. Total pensions. 1916... 1917 $170, 132 164 972 $14,750 14 267 $184,882 179,239 1946 1947 $20,024 17 148 $2. 151 891 $22, 175 19 039 1918 1919 159,694 154,345 13, 787 13,309 173,481 167,654 1948... 1949.. 14,634 12,258 ,651 ,434 16, 285 13,692 1920 148,971 12,837 161.808 1950 . 10, 202 ,239 11,441 1921 1922 143,548 138,078 12,361 11,884 155.909 149,962 1951 1952 8,394 6,820 ,061 902 9.455 7,722 1923 1924 1925 132,565 127,023 121.958 11,410 10,943 10,485 143,975 137,966 132,443 1953 1954 1955 5,472 4,330 3,376 761 639 529 6,233 4,969 3,905 1926 . . 116,383 10,023 126,406 1956 .... 2,610 432 3,042 1927 110 305 9,560 119,865 1957 1 991 350 2,341 1928 104,732 9,103 113,835 1958... 1,513 280 1,793 1929 99,186 8,650 107,836 1959 1.137 222 1.359 1930 93,649 8,199 101,848 I960 810 175 985 1931 88,158 7.750 95,908 1961 564 137 701 1932 82,803 7,307 90,110 1962 384 106 490 1933 77,428 6.873 84,301 1963 256 80 336 1934 71 950 6 443 78 393 1964 166 59 225 1935 . . 66,736 6,021 72, 757 1965 ' 104 42 146 1936 61 712 5 601 67 313 1966 62 29 91 1937 56,718 5,089 61,807 1967 38 19 57 1938 51,866 4,795 56,661 1968 22 12 34 1939 1940 47, 174 42,658 4,414 4,045 51,588 46 703 1969 1970 12 4 7 3 19 7 1941 1942 38.335 34,222 3,689 3,347 42,024 37 569 1971 1972 1 1 2 1943 30 340 3 01 33 361 1944 26,700 2, 713 29 413 Totals $2 897 978 $259, 313 $3,157 291 1945 23.305 2,425 25,730 136 TABLE XLVIII. (Female Teachers). PENSIONS ACCRUING TO THOSE IN ACTIVE SERVICE JANUARY 1, 1916. Year. Service pensioners. Disability pensioners. Total pensions. Contribu- tions. Future salaries to present active service. 1916 1917 $ 10,204 31,163 $ 1,103 3,313 $ 11,307 34 476 $133, 179 132 444 $8,705,813 8 489 283 1918 1919 1920 53,077 76, 101 100,316 5,530 7,726 9,912 58,607 83,827 110,228 131,533 130,281 128 868 8,281,761 8,063,991 7 839 881 1921 125,375 12,010 137,385 127 145 7 6^4 936 1922 1923 151,580 179,094 14, 103 16,045 165,683 195, 139 124,838 122 339 7,401,607 7 176 415 1924 207,080 17,940 225 020 119 6 9 2 6 954 864 1925 1926 1927 1928 235,997 265,783 295,583 325, 764 19, 776 21,339 22,996 24, 545 255,773 287, 122 318,579 350, 309 116,522 113,281 109,831 106 147 6,719,310 6,495,127 6,266,389 6 9 9 581 1929 356, 089 85,905 381 994 102 351 5 795 136 1930 386, 130 27,209 413,339 98,371 5 558 104 1931 415, 908 28,233 444 141 91 178 5 313 698 1932 444,908 29,190 474,098 89, 970 5 074 566 1933 473. 156 29,994 503, 150 85 564 4 833 179 1934 499,814 30,645 530, 459 81.183 4,589,818 1935 525,834 31,135 556, 969 76,662 4 349 808 1936 550, 001 31,565 581,566 72,095 4, 109, 105 1937 572,272 31,652 603,924 67, 598 3 871,104 1938 592,412 31,658 624,070 63 113 3 626 101 1939 609,962 31,439 641,401 58,698 3,401,800 1940 624,751 31,179 655, 930 54,496 3 176 913 1941 637, 233 30, 718 667 951 50 318 2 95 -> 860 1942 645,271 30.124 675, 395 46, 268 2 739,326 1943 652, 552 29. 423 681 975 42 499 2 5 9 5 090 1944 655,822 28,575 684,397 38,768 2,323,578 1945 655,869 27,678 683, 547 35,244 2 131 620 1946 1947 652, 186 645, 763 26,706 25,780 678,892 671,543 31,890 28,744 1,941,603 765,581 1948 635,951 24,614 660,565 25,773 , 595, 146 1949 623,965 23,512 647, 477 23,004 433,293 1950 . ... 607,932 22,340 630, 272 20 400 1 284,268 1951 591,413 21,154 612.567 18,117 1 141,891 1952 571,663 19,919 591,582 15,833 012, 498 1953 549, 739 18,663 568, 402 13 815 891,559 1954 526,342 17,406 543, 748 11,977 782,798 1955 501,478 16, 147 517,625 10,334 681,284 1956 475,489 14,893 490 382 8 855 589, 552 1957 448,777 13.675 462,452 7,590 509, 010 1958 421,659 12,513 434, 172 6,313 433,007 1959 I960 394,350 367, 108 11,369 10,287 405,719 377, 395 5,245 4,302 366.567 307, 121 1961 340, 200 9 272 349, 472 3 471 254, 547 1962 313,752 8,326 322,078 2,754 207,968 1963 287,942 7,424 295,366 2, 131 166, 046 1964 262, 821 6,601 269, 422 1,606 139,744 1965 238,471 5,840 244,311 1,178 100,508 1966 215,001 5,136 220, 137 834 74, 424 1967 1968 192,503 171 , 055 4,492 3,904 196,995 174,959 669 375 54,378 37, 598 1969 150, 873 3,372 154,245 268 24,591 1970 1971 131,978 114,476 2,898 2,466 134,876 116,942 143 73 15, 169 8,121 1972 98,390 2,082 100, 472 35 3, 828 1973 83,783 1,744 85,527 15 1,484 1974 70, 669 1,451 72, 120 5 432 1975 58.974 1,187 60,161 2 84 1976 48,684 966 49 650 g 1977 39 722 774 40 496 1978 32,005 613 32,618 1979 25,431 474 25 905 1980 19 908 366 20 274 1981 15,338 277 15 615 198 11 356 207 11 563 1983 8 595 150 8 745 1984 6,254 107 6 361 1985 4 409 72 4 481 1986 3 056 51 3 107 1987 2,061 33 2 094 1988 1 306 20 1 326 1989 846 12 858 1990 511 7 518 1991 298 4 302 137 TABLE XLVIII (Female Teachers) Concluded. Year. Service pensioners. Disability pensioners. Total pensions. Contribu- tions. Future salaries to present active service. $166 $166 1909 85 85 I'.f.H 39 39 I'.U") 14 14 iw. 5 5 I'.u; 1 1 Totals $22,319.894 $1,031,966 $23,351,860 $2,999,157 $178.235.867 Present values. $7.723,768 $425, 951 $8, 149 719 $1,860,444 Interest 4 per cent. TABLE XLIX. (Female Teachers). PENSIONS ACCRUING TO FUTURE ENTRANTS. u rt CiOCOCOCD?Dl-l-l-t-l-OO -AH 'II sisaq^od II sisamod -^H t (i) + (g)+(I) -sioo suoisuad ii3 jo 13^0^ M go 09 go O US -AH 'aoiAjas o^ui -ua aan^nj o; suoisuaa I sisaq^od -^H '( suoisuad 'I sisaq^od ssases^i I sisainod -AH 'aoiAjas o;ui s;u3a; -ua aaninj o^ suoisuaji ^CD ui M.OU suosaad o^ suotsuaji saauois -uad ^uasaad o^ suoisiiaa 10 PL 140 II sisamodAH J9ptm .loj p9piAoadun.ioA~:iio A"q pgpiAOj'd 9q 0} saS-eiu'aojad; to CD CD co co < o CD co CD co CD CD co CD co co co co co CD CD CD co' CD co co co' 'II sis9modAH J9pun -UOD A-TBI^S JO S9J3^;U90a9 < I CDCDCOCOCOCOCOCDCDCDCOCOCDCOCOCDCOCOCOCOCOCOCOCOCOCDCOCOCOCO 'II sis '(Q)-(8) -sioo " UI p9SS9Jd -X9 S9i.ii2ii2s 01 sju9in -Al2d UOlSU9d JO ooGCooGOGOoooooocx>ooQCooooooooooooaooooooooooooDooooa030oooo -AH 'suonnqi-nuoo 112100, . .Baii88i CO*CO*CD*CO 1 't l< *t' 1 -*Tf^ 1 *^CO~COCOOCCo"cO< ^5-t 7? '-'> : ~'< c-i IN ^ 1-1 -- i ^ -< -^ -^ i O O O O O c o i I sis9inod SUOISU9d H^ JO I'E^O^ "I -AH '90IA.I9S O^UI S^U-BJ^ -U3 01 90IAJ9S 9AI10B UI AVOU suosj9d o; suoisug^ !S COiOirtkO'C-^"*'* 1 iSSSS! -U9d sa9uois SUOISU9d 01 CD co os t- CD * co co s ^ ^ 141 o w o o w c o o o to o o w w 0000000000000000000000000000000000 142 2 P ^ s i 3 a II stssmodA-H '-10.; P3PTA -ojdun pu'B A"ip Aq pain -qiaiuoo sq 01 8.131101231 A"q p3inqi.ii -UOD AM-E[T2S JO S3Jg-BlU30J3(I 'II STSsqiodA-H '(SO -Ki) 'SIOQ -S3Jgl21U3DJ3d UI p3SS3JdX3 S3IJ12I12S Ol -us 3jn;nj 01 90TAJ3S 3AT1D-B +(8) ' (II) 'II stssqiod 'suoiinquiuoo 30TAa3S suoimqiaiuoo '(6)+(8) ' S I0 ' -A"H 'suotinqiJiuoo '30TAJ3S 1U3S3JCI II sissmod^H 'suois -U3d U^ JO 1^101 01UI S1U-BJ1U3 01 SU01SU3a +(8) 'Sioo 'I sissmodAH suoTSU3d ne jo 112101 pirejQ 3DIA.I3S oiui siu^aius 01 subisusj 30IAJ3S 3AT10T2 ui AVOU suosJ3d oisuoisusa -U3d !U3S3Jd 01 Oi O5 O5 Ol O5 OS OS O5 O> O5 O5 O5 Ol OS OS O5 O5_ OS OS OS OS OS OS OS OS OS OS eoeoooooodoooo'doodoooooeooa t30(M'^'^ < ^Oi'WGO^l'^t < ^- - CDODOC't~*^-COtD^t l 3D'*! '(Nt^OOOlOD- MOO^COCO-r^iM CD?-- 1 - 1 i^ ^ oo !!- 10 gj 85 as oo ^< 25 So S 55 o 85 1 Oft o vMM at eo ao ao oft aifl c( j^; T ^^'^; T jr T ^^in l fjioioioicirtninocO5O^cocDcD^co S88SS S8i8SgagSa 143 ddddddddddddddda 71 (N (M N 5>J W (N IN (N (N (N (N M M (M 5 5 * *'< >rt> tfi MS MS * * * * CO CO CO CO_ CO CO 04 04 04 04 04 * -* MS S m 5 > o o CD F- 1- ! 1 1 j;j I; I::;;;;;; 2 O CO O O CO O CO 9 O ^ O MS Mi MS MS MS MS U MS MS MSMS MS MS MS >A MS IA Mi* ia MS MS >A MS MS US kA M5 d -- *~ -- w * 5 cc cc cc * * * * c o 10 ui ire c in in >n o MS MS in us n 10 MS MS ui" MS x ?o O O O O - ~- 9* *J T -: : II ^ ^ 5 $ S? 5 ec * MS t^ oo i- cj -r -nn o o cc -r ?r; o t- i- i- i~ i~ i- i- * 144 TABLE LII (Teachers, Male and Female). SHOWING THE TOTAL ANNUAL CONTRIBUTIONS, PENSION PAYMENTS Year. Grand totals of- all pension pay ments under Hypothesis 11. Grand totalsof all contributions under Hypothe- sis II. Grand totalof sal- aries. Ratios of pension paymentsto sal- ary payments expressed in percentages. Average percent- ages of salaries contributed by teachers. Average percent- ages of salaries to be provided by thecityor un- provided for. 1916 $205 424 $148 252 $10 467 382 1917 1918 223,835 243 133 150. 488 152 734 10,604,647 10 744 58 2.1 2q .4 0.7 1919 1920 263,407 285 062 154^908 157 049 10,861,175 10 966 094 2.4 2 6 .4 1.0 1921 1922 1923 . . 307, 540 331,078 355 852 158,978 160,432 161 801 11,069,690 11.155,319 11 235 726 2.8 3.0 30 .4 .4 1.4 1.6 1924 1925 380,912 407 521 163,067 164 080 11,310,923 11 36 9 118 3.4 3 6 .4 2.0 1926 434 241 165 9 5 11 423 557 q o 1927 1928 460,616 487 879 165,836 166 485 11,465,560 1 1 496 268 4.0 4 2 .4 2.6 1929 1930 515, 106 542 067 167,110 167 635 11,524,177 11 542 436 4.5 4 7 .5 5 3.0 1931 568, 537 167 994 11 548 334 4 9 5 34 1932 1933 594.509 620 002 168,312 168 346 11,558,383 11 549 432 5.1 5 4 .5 3.6 Q 1934 1935.. .. 644, 165 668 421 168,288 167 993 11.535,075 11 517 045 5.6 5 8 .5 K 4.1 A q 1936... 691,699 167 518 11 489 183 6 5 4 5 1937 1938 713,438 733 867 167,031 166 459 11.459,818 11 419 740 6.2 6 4 .5 4.7 4 Q 1939 1940 751,942 768 074 165,888 165 332 11,392,226 11 361 155 6.6 6 8 .5 5.1 c q 1941 1942 1943 782,597 793,679 804,838 164,771 164,181 163,759 11,327,839 11.301,530 11,266 650 6.9 7.0 7 1 .5 .5 5 5.4 5.5 5 6 1944 1945 813,231 819 745 163,281 162 830 11,243.761 11 217 915 7.2 7 3 .5 5.7 5 8 1946 823,702 162 411 11,189 494 7 4 5 5 9 1947 1948 826, 762 827 636 162,071 161 714 11,170,781 11 146 196 7.4 7 4 .5 5.9 5 9 1949 828,222 161 339 11 123 431 5 5 9 1950 825, 987 161 126 11 109 590 7 4 5 5 9 1951 825,071 160 961 11,087 936 7 4 5 5 9 1952 1953 822,378 818 885 160, 648 160 347 11.072,305 1 1 058 576 7.4 7 4 .5 5.9 5 9 1954 1 955 815,322 811,617 160,175 159 979 11,044,700 11 030 764 7.4 7 4 .5 5 5.9 5 9 1956 807 874 159 810 11 021 747 7 3 5 5 8 1957 804,354 159 700 ll! 012 453 7 3 5 5 8 1958 801 508 159 42 10 999 494 7 3 4 5 9 1959 799, 085 159 124 10,989 396 7 3 4 5 9 1960 797,830 158 826 10 973 454 7 3 4 5 9 1961 797,414 158,487 10,954,684 7 3 4 5 9 1962 797, 832 158 133 10,933 956 7 3 4 5 9 1963 799, 135 157 727 10 906 551 7 3 4 5 9 1964 800, 722 157,368 10,880 389 7 4 4 6 1985 802,081 156 985 10.857 208 7 4 4 6 1966 803,195 156 669 10 833 442 7 4 4 6 1967 803, 762 156, 505 10,813,389 7 4 4 6 1968 . . . 803,493 156 202 10,795 604 7 4 4 6 1969 802,755 156 074 10 779 788 7 4 4 6 1970 1971 801,365 799, 404 155,918 155 829 10.765,961 10,756 295 7.4 7 4 .4 4 6.0 6 1972 796, 856 155,788 10,751,675 7.4 4 6.0 1973 1974 793,907 790,771 155,768 155,758 10,749,331 10 748,279 7.4 7 4 .4 4 6.0 6 1975 786, 376 155,755 10.747,931 7.3 4 5.9 1976 1977 784, 103 780, 865 155, 755 155,755 10,747,850 10,747 850 7.3 7 3 .4 4 5.9 5 9 1978 1979 777, 729 774, 744 155, 755 155, 755 10, 747, 850 10, 747, 850 7.2 7 2 .4 4 5.8 5.8 1980 771,988 155,755 10,747 850 7 2 4 5 8 1981 1982 1983 769,490 767,024 765,338 155, 755 155,755 155,755 10,747.850 10.747,850 10,747,850 7.2 7.1 7 1 .4 .4 4 5.8 5.7 5.7 1984 763. 738 155,755 10, 747, 850 7.1 .4 5.7 145 TABLE LII Concluded. Year. Grand totals of all pension pay- men t s under Hypothesis II. Grandtotalsofall contrib u t ions under Hypothe- sis II. Grand totals of salaries. Ratios of pension payments to sal- ary payments ex pressed in per centages. Average percent- ages of salaries contributed by teachers. Average percent- ages of salaries to be provided by the city or un- provided for. Il Xil $155. 755 155,756 $10,747,850 10,747 850 7. 7 .4 4 5.7 5 7 198? BBS 760, 550 759, 908 155,755 155,755 10, 747, 850 10, 747, 850 7. 7 .4 4 5.7 5 7 1989 1990 1991 759, 51 1 759,210 759,013 155, 755 155.755 155,755 10,747,850 10.747,850 10,747.850 7. 7. 7 .4 .4 4 5.7 5.7 5 7 1992 758, 877 155,755 10, 747, 850 7 4 5 7 1993 758, 796 155.755 10,747,850 7 4 5 7 1994 758,750 155,755 10, 747. 850 7 4 5 7 19D;> 758, 725 155.755 10, 747, 850 7 4 5 7 1996 758,716 155. 755 10,747 850 7 4 5 7 1997 758 712 155 755 10 747 850 7 4 5 6 Totals $57.257.241 $13.079,042 $903,169.916 146 is r* W a & si n K a H PH ^^So - ss^- CO CR I SS! ^ ^^ co in tf o GM CM t* 14? THE MUNICIPAL EMPLOYEES' FUND OF CHICAGO THE BENEFITS. Service Pensions : Pensions of $600 per year are granted to those who choose to retire from service after 20 years of service, but if the employee at that time is under 55 years of age, the payment of a pension does not begin until he or she attains the age of 55 years. Civil War veterans who have attained the age of 65 years are required to serve only 10 years. Disability Pensions : Pensions are granted to those who retire from service after 5 years of service on account of disability. THE SOURCES OF REVENUE. Each employee contributes $2 per month deducted from salary. If an employee has not contributed a total of $480 at the time of retire- ment on pension, he must contribute the balance at that time, or have deductions made from his pension. The city appropriates for two years, under the amendment of July 1, 1915, an amount equal to the sum deducted from the salaries of employees during the previous calendar year. THE PLAN ADOPTED IN INVESTIGATING THIS FUND. Prior to July 1, 1911, the date when the act regulating this fund took effect, there were no means of obtaining any data regarding the rates of withdrawal from service, of value in an investigation of future costs under this fund ; consequently we began the accumula- tion of data as of July 1, 1911. At the same time, it was deemed advisable not to extend the period beyond January 1, 1916, and there- tore the rates were derived in this case from an experience of four and one-half years as against ten years in the case of the three pre- ceding funds. However, because of the number of employees involved, we believe that the rates thus found will reflect future experience with considerable accuracy. Since no pensions had been paid from this fund on January 1, 1916, no experience was available from which to obtain rates of retire- ment on pension as of that date. Payments were begun on July 1 ; but even if our investigation had been delayed so as to include a few months of pension experience, the rates for retirement on pension for these few months might in no wise be indicative of those that would be experienced in the future. Consequently we were driven to make assumptions with regard to the ages when employees who had fulfilled the requirements regarding years of service would accept pension. We assumed that all who had 20 years of service to their credit would accept pension : first, at age 55 ; second, at age 60 ; third, at age 65 ; and fourth, at age 70. Under each of these assumptions we made a cal- culation to determine the cost of pensions under the withdrawal experi- 148 ence derived from an investigation of the fund from July 1, 1911, to January 1, 1916. As the first and last of these assumptions are of an extreme character, it may be assumed with safety that the future experience of this fund will exhibit costs somewhere between those found in these two cases. ACTUAL EXPERIENCE TABLE AND TABLE OF RATES. The actual experience table is given in outline in Table LIV, below; the table giving the rates of withdrawal from service and rates of death in service is Table LV, below. For rates of mortality among pensioners we adopted the Ameri- can Experience Table of Mortality. Because of the absence of data we were compelled to disregard almost entirely the disability feature. We assumed that all over 70 years of age with insufficient service to retire on service pensions will retire on disability pensions. This probably gives costs lower than will actually be experienced among disability pensioners, but the item is relatively unimportant. TABLE LIV (Municipal Employees). ACTUAL, EXPERIENCE WITH THOSE WHO HAVE BEEN IN ACTIVE SERV- ICE WITHIN THE PERIOD OF JULY 1, 1911 AND JANUARY 1, 1916. (2) (3) (4) (5) (6) (7) (8) - (9) (10) Age. 1?S2"3 sss-j. os-: s s 03 o rj hn^ 31 B - | -S +J H 3 H o 4-1 fl r; ofl4SJrt CO fe >i If: i^ll |3-5 >-t > a > '-i.d A p o J3 3.2- re r;,d *'** cu+ ^D a. Jan. 1 n active h ages as 1, 1916. o ^ rt rt _; Es:ad I--3S3 cw gissl p: 32 w 3-r^S GQ Entrants active ages trance il**?i c3 2 cu.3 C3 >H flj O *e a rt ,,_ >$* cSrt . nil C*;53 20.... $239 235 231 228 224 222 221 222 223 223 223 223 222 221 219 217 215 211 208 204 199 187 179 171 161 151 139 126 112 96 80 62 43 22 $ 313 339 368 400 436 478 529 588 654 726 804 889 982 ,082 ,192 .311 ,440 .580 .733 ,897 2,074 2,266 2,473 2,693 2,928 3,178 3,443 3,723 3,999 4,331 4,664 5,021 5,407 5,825 6.281 6,783 6.589 6,392 6,193 5,991 " 789 $60 58 59 54 52 51 49 48 46 45 43 42 40 39 36 34 33 31 28 26 24 22 20 18 16 14 12 10 8 6 5 3 2 1 $5 5 5 5 5 5 4 4 4 4 4 4 4 4 4 4 4 3 3 3 3 3 2 2 2 2 $28 28 28 28 28 28 28 27 27 26 25 25 24 23 23 22 21 21 20 19 18 17 16 15 14 13 12 11 10 9 6 5 3 2 $2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $15 15 15 15 15 15 15 14 14 14 13 13 13 12 12 12 12 12 11 11 10 9 9 8 8 8 6 6 5 5 4 3 3 1 1 21.. 22 23 2t 25.. 26 27 28 29 30 31.. 32 33.. 34 35.. 36 87.. 88 39.. 40 41.. 42 43... 44 45 46 47. 48 49 50.... 51. 52 53 54.... 55 56 57 58 59 60 61 5,585 5,381 5.178 4.974 4,771 4,570 4,369 4,171 3,976 3,784 3.596 3.411 3.229 62 63 64 65 66 67... 68 69.... 70 . 71 72.. 73 74.. 3 052 75.... 2,876 2.703 2,531 2,362 2,194 2,028 1.865 1 705 76.. 77. 78... 79.. 80.... 81.. 82 83.. 1,548 1,391 84 152 TABBLE LIX (Municipal Employees). PRESENT VALUES OF CONTRIBUTIONS AND BENEFITS PER PARTICI- PANT ON ASSUMPTION OF RETIREMENT AT AGE 60, IF ELIGIBLE. (1) (2) (3) (4) (5) Age. Present value of f utuf e con- tributions. Benefits to all participants. Additional benefits to those who contributed each month from July 1, 1911, to June 1, 1916. Additional benefits to those who contributed part of the time from July 1, 1911, to June 1, 1916, because of returningr contributions. Present value of pension benefit. o.SS ugHS-s l^lll >^^a SSSo| g2SSj ,5^5.2rtrt rt o *{ > <+--> 11 ~ ft ||H|S| sSSsi'l rc5<*H *jj'< S gg'SS&S S8s sis ell! Iflit PH OH PH PH PH PH 81 $1 865 82 1 705 83 1 548 04 1,391 TABLE LX (Municipal Employees). PRESENT VALUES OF CONTRIBUTIONS AND BENEFITS PER PARTICI- PANT ON ASSUMPTION OF RETIREMENT AT AGE 65, IF ELIGIBLE. (1) (2) (3) (4) Additional benefits to those who contributed part of ^ the time from July 1, 1911, w. to June 1. 1916, because of returning contributions. Age. Present value of future con- tributions. Benefits to all participants. Additional benefits to those who contributed each month from July 1, 1911, to June 1, 1916. Present value of pension benefit. Present value of return of one- half of future contributions in case of death or withdrawal. lijjlii Present value of $54 .00 upon death or withdrawal. Present value of $108.00 upon abo- lition of posi- tion. 20. $247 243 240 237 234 233 234 236 238 240 242 244 245 246 247 248 249 249 249 248 248 246 245 243 240 237 232 227 220 214 207 $ 94 102 111 121 132 144 160 177 197 219 243 268 296 326 359 395 434 477 523 572 626 683 746 812 883 959 ,039 .123 ,207 .307 ,407 $68 65 63 62 60 59 58 58 57 56 56 55 54 53 52 51 50 49 48 47 45 44 43 41 40 38 36 35 33 31 29 $5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 4 4 4 4 4 3 3 3 $28 29 29 29 29 29 29 28 28 28 27 27 26 26 25 25 24 24 24 23 23 22 22 21 21 20 20 19 19 18 18 $2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $15 16 16 16 16 16 16 15 15 15 14 14 14 14 14 14 13 13 13 12 12 12 12 12 12 11 11 10 10 10 10 21 22 23 24 25 26 27 28 29.. 30 31.. 32 33 34 35 36.... 37 38 39.. 40 41 42 43 44 45 46.. 47 48 49. 50 TABLE LX Concluded. (1) (2) (3) (4) Additional benefits to those who contributed part of ^ the time from July 1, 1911, j to June 1, 1916, because of returning- contributions. Ag-e. Present value of future con- tributions. Benefits to all participants. Additional benefits to those who contributed each month from July 1, 1911. to June 1, 1916. Present value of pension benefit. Present value of return of one- half of future contributionsin case of death or withdrawal. M-i ^ ' 270.000 on the contributions from the city, we have a deficiency of *4,491,133. OBSERVATIONS REGARDING THE DEFICIENCIES. We have, earlier in this report, in dealing with the Chicago eachers' fund, tried to explain the main source of the accrued liabili- ies. An obligation to pay pensions to men, in the active service, who lave been making no contributions or inadequate contributions, starts pension system with accrued liabilities. Under the municipal em- )lovees' fund, the precaution was taken to accumulate a fund by ontributing for five years before any pensions were paid. The con- ributions are probably inadequate to carry the interest at 4 per cent >n the accrued liabilities, and hence, the accrued liabilities are probably lot less than they were on July 1, 1911. 'HE PERCENTAGE PENSIONS WILL BE OF SALARIES WHEN THE SYSTEM CARRIES ITS ULTIMATE NORMAL LOAD. If the service is kept up to a fixed size by the addition of mployees at age 32 approximately the entrance age experienced from uly 1, 1911, to January 1, 1916 and if employees withdraw and die t rates given by that experience, then, when the service reaches the tate where it carries its full pension burden, we find the following esults : 1. If retirement on pensions were taken at age 55, the pension )ayments would, in the ultimate normal state under our active service able, be about 19 per cent of salaries. 2. If retirements were accepted at age 60, the pensions would, in he ultimate normal state, cost about 12 per cent of salaries. 3. Similarly, with age 65 for retirement on pensions, the pensions vould, in the ultimate normal state, cost about 7 per cent of the alaries. 4. Likewise, with age 70 for retirement on pensions, the pensions vould, in the ultimate normal state, cost about 3.8 per cent of salaries. It should be remembered that these predictions involve withdrawal ates made from the service before any pensions were paid. The pay- nent of pensions may modify these rates materially, and as such hange is likely to take the form of a decrease in withdrawals, there /ill probably be some increase in the relative cost of pensions. THE ACTIVE SERVICE CLASSIFIED BOTH BY AGES AND LENGTHS OF SERVICE. By means of a table of double classification (Table XCII, p. 184), show the number of employees of given age and length of service. 158 From this table, we may find very easily the number of persons eligible to a pension and the number that are nearly eligible. With 20 years of service and age 55 or over, we find 297 em- ployees. If all these who are eligible should apply for pensions, it would cost at once $178,200 per year for the pensions. We note further that there are 174 employees with 20 years of service and of age 60 or over. There are 76 with 20 years of service and of age 65 or over. Furthermore, we may form an idea of the number who will be eligible within the next few years. For this purpose, we find that there are 931 employees with 15 or more years of service and of age 50 or over. We may perhaps well assume that when an employee has five or fewer years to serve to meet the requirements for a pension, he will generally remain in the service until he is eligible unless he accepts a disability pension. This means that, except for deaths, we should in five years expect nearly 931 employees eligible for pensions. The deaths even under a high mortality rate would probably not reduce this number below 750. Hence, five years later than January 1, 1916J we may well expect to find 750 men eligible for pensions among thet municipal employees. If they should all accept the pensions, the cost' would amount to $450,000, but many of them will doubtless prefer to continue in the service instead of accepting pensions. If pensions were not accepted at an age under 60, but all those of age 60 or more should accept them, there would be 174 employees elig- ible, and the pensions would cost $104,400 per year at present. In fivei years from now, with retirement at age 60, there would probably be< about 400 persons eligible, and the pensions would cost $240,000 per year if all eligible accepted pensions. If pensions were not accepted at ages below 65, but all at age 65 or over should accept them, there would be 76 employees eligible, and pensions would cost $45,600 per year at present. In five years frorai now, with retirements at age 65, there would probably be about 145. persons eligible, and the pensions would cost $87,000 per year if all eligible accepted pensions. The foregoing analysis, under different assumptions regarding the age of retirement, gives a fair idea as to what should be expected within a period of five years from January 1, 1916, but the cost for the first five years after beginning the payment of pensions does not indicate at all what the ultimate cost of the system will be, or what the condition of the fund is with respect to solvency. For ultimate* costs in comparison with what the contributions will purchase, we must revert to Tables LVIII to LXI, pp. 151, 152, 153 and 154. For the solvency of the fund we must revert to the balance sheets (Tables LXII to LXV, pp. 159 and 160). 159 TABLE LXII. (Municipal Employees). BALANCE SHEET FOR PENSION FUND FOR MUNICIPAL EMPLOYEES OF CHICAGO UNDER ASSUMPTION OF RETIREMENT AT AGE 55, AS OF JANUARY 1, 1916. LIABILITIES. nt value of pension and withdrawal benefits to active Jan. 1. 1916 Total . $11,437,473 $11,437,473 ASSETS. Present value of contributions of employees ($2.00 per month) Present value of contributions of employees to make up balance of $480 at retirement. 1 . Cash on hand and invested funds 1 To be provided from other sources than employees' con- tributions or to be regarded as a deficiency Total. 317,598 525,682 $11,437,473 1 The city is to contribute for two years from 1916 an amount equal to de- ductions from employees during- the previous fiscal year. This would probably have a present value in the neighborhood of $270,000. TABLE LXIII. (Municipal Employees). BALANCE SHEET FOR PENSION FUND FOR MUNICIPAL EMPLOYEES OF CHICAGO UNDER ASSUMPTION OF RETIREMENT AT AGE 60, AS OF JANUARY 1, 1916. LIABILITIES. Present value of pension and withdrawal benefits to active service Jan. 1, 1916... Total.. $8,640,678 $8,640,678 ASSETS. Present value of contributions of employees ($2.00 per month) Present value of contributions of employees to make up balance of $480 at retirement Cash on hand and invested funds 1 To be provided from other sources than employees' con- tributions or to be regarded as a deficiency Total. $1,109,641 229,786 525,682 6,775,569 $8,640.678 1 The city is to contribute for two years from 1916 an amount equal to de- ductions from employees during the previous fiscal year. This would probably have a present value in the neighborhood of $270,000. TABLE L.XIV. (Municipal Employees). BALANCE SHEET FOR PENSION FUND FOR MUNICIPAL EMPLOYEES OF CHICAGO UNDER ASSUMPTION OF RETIREMENT AT AGE 65, AS OF JANUARY 1, 1916. LIABILITIES. Present value of pension and withdrawal benefits to active service Jan. 1, 1916 Total. $6,614,783 $6,614,783 ASSETS. Present value of contributions of employees ($2.00 per month) Present value of contributions of employees to make up balance of $480 at retirement Cash on hand and invested funds 1 To be provided from other sources than employees' con- tributions or to be regarded as a deficiency Total. $1,194.012 133,956 525.682 4.761,133 $6,614,783 1 The city is to contribute for two years from 1916 an amount equal to de- ductions from employees during the previous fiscal year. This would probably have a present value in the neighborhood of $270,000. 160 TABLE LXV. (Municipal Employees). BALANCE SHEET FOR PENSION FUND FOR MUNICIPAL EMPLOYEES CHICAGO UNDER ASSUMPTION OF RETIREMENT AT AGE 70, AS JANUARY 1, 1916. OF OF LIABILITIES. Present value of pension and withdrawal benefits to active service Jan. 1, 1916 Total. $3,520.024 $3,520,024 ASSETS. Present value of contributions of employees ($2.00 per month) Present value of contributions of employees to make up balance of $480 at retirement Cash on hand and invested funds 1 To be provided from other sources than employees' con- tributions or to be regarded as a deficiency Total. $1.268,589 78,249 525,682 1,647,504 $3,520,024 1 The city is to contribute for two years from 1916 an amount equal to de- ductions from employees during the previous fiscal year. This would probably have a present value in the neighborhood of $270,000. 161 ILLINOIS STATE TEACHERS' PENSION AND RETIRE- MENT FUND. THE BENEFITS. The following outline gives briefly a notion of the benefits. Service Pensions: Pension of $400 per annum is paid; to anyone who retires after attainment of age 50, having served as a teacher in the public schools of the United States for at least 25 years, the last 15 of which have been pent in the public schools of this State, and provided the teacher has paid the sum of $400 into the fund. Disability Pensions: Pension of $16 per annum for each year of service, not to exceed $400 per annum, is paid to one who retires on account of disability, provided such teacher has been in service in the public schools of the United States for at least 15 years, the last 9 of which have been spent in the public schools of this State, and provided also that the sum of $400 has been paid into the fund by such teacher. DATA USED IN VALUATION. As already stated (see p. 77), the data on which we based our calculations was collected through the offices of the county superin- tendents of schools in all cases except the County of Cook. The only data available in these offices was the age, length of service and salary of the teachers in service during the calendar year 1915. There was no way by which we could gather any material that would enable us to determine the rates at which teachers were retiring from the service without pension. Moreover, the pension fund was not in existence before January 1, 1916, and consequently, it had no pension experience on which to base any prediction as to the rates at which members would accept pension in the future. As no tables exhibiting these rates in like communities among groups of similar employees were available, and since we did not feel justified in assuming that the withdrawal experience of such funds as offered statistics on this point, as for instance the Chicago or New York public school teachers' funds, could be applied with safety to a group such as the teachers involved in the Illinois State system, which includes a large number of teachers in rural schools and in small towns, we were driven to base our calculations on assumptions that certain events would happen. These assumptions, made after careful consideration of the data furnished by the county superintendents, were two in number. The first predicts fewer retirements on pension than would probably occur in actual experience, and the second possibly more rapid retirement on pension than should be expected. 162 ASSUMPTIONS MADE IN CALCULATIONS. These assumptions are as follows : 1. Of the group eligible for pension, those whose salaries are under $600 will elect to retire on pension when the conditions of eligibility are satisfied; and those whose salaries are $600 or over will accept pensions at various ages, centering about 65 years, in such a way that, for purposes of calculation, we may accept age 65 as the age of retirement. This assumption will be referred to later as Hypothesis I. 2. Same as 1, except that $800 is substituted for $600. This assumption will be referred to as Hypothesis II. NUMBER OF TEACHERS UNDER FUND. On the teachers of Cook County, outside of Chicago, no data was available in the office of the county superintendent. To each of these teachers, 1,604 in all, we mailed a card with a circular letter and self- addressed, stamped envelope, requesting the desired information. In this way we derived data on slightly less than 50 per cent of such teachers. Of the 101 remaining counties in the State, 94 of the superintendents cooperated with us in gathering the data. We thus collected data on 21,085 teachers outside of Chicago. As nearly as we can estimate, the teachers of Cook County, out- side of Chicago, from whom we received no reply and those in the remaining counties whose superintendents failed to cooperate with us, not including those in the City of Peoria, total approximately 5,000. We thus accepted 26,000 as the possible number of teachers coming under this fund. We assumed that the teachers on whom data was collected would afford a random sample of the whole group. On this assumption,, results for the whole group were found by multiplying those found! for 21,085 teachers by 26,000, and dividing by 21,085. This ratio,, assumed to be 26/21, is used in deriving Tables LXX and LXXI from Tables LXVIII and LXIX respectively. CLASSIFICATION OF DATA WITH REGARD TO AGE, SALARY AND LENGTH! OF SERVICE. In Table LXVI, we present, for the 21,085 teachers on whom data was collected, a classification in five-year periods with respect to > age and length of service as of January 1, 1916. From this table, we derive immediately the number of those who have at least 25 years of service and are also at least 50 years of age. These constitute the group eligible for pensions January 1, 1916. This group consists of 699 who are eligible among the total of 21,085. In Table LXVII, we present a classification in regard to age and salary of these 699 teachers eligible for pensions January 1, 1916. MORTALITY RATES. In the absence of data from which to derive rates of mortality, we made application of the rates given l for women teachers on service pensions in New York City. PREDICTIONS OF COST AT INTERVALS OF FIVE YEARS. It is not claimed that Hypotheses I and II stated above will give results so close to those that will be actually experienced as to make 1 Report on the Pension Funds of the City of New York, Part II, p. 103. 163 it desirable to present yearly predictions of costs. It is our plan to predict annual costs at five-year intervals beginning in 1916. As it s clear that the system could not be in full operation early in 1916, he prediction for 1916 would more reasonably apply to the year from July 1, 1916, to July 1, 1917. ASSUMPTIONS IN REGARD TO GROUPS BECOMING ELIGIBLE. We treated separately the group eligible January 1, 1916, and the groups which we predict will become eligible in the future. For the group eligible January 1, 1916, we simply applied the conditions stated above as Hypotheses I and II, and applied rates of mortality to determine the number of surviving pensioners. In treating the subgroup of teachers who are not eligible at )resent on account of age or service, but who will be eligible, except :or mortality and withdrawals, in five years from January 1, 1916, we calculated the expected number of survivors from our rates of survival, and assumed that if a teacher lacks less than five years of laving the requisite service and age for a pension, he will, in general, remain in the service until eligible for the pension, except in case of death. By thus carrying forward, with rates of survival, the teachers of the subgroup not eligible in 1916, but eligible in 1921, if surviving, we are in a position to estimate the cost of pensions in 1921 for those who go on the pension roll in the five years from 1916 to 1921. We further assumed that on January 1, 1921 (five years after our valuation) the subgroup which is not eligible in 1921 but which will )e eligible five years thereafter, is like the subgroup just discussed in regard to predicted costs of pensions. The validity of this assumption involves the additional assumptions that certain withdrawal rates will continue to have about the same values as they have had in the past, and that the teaching service will not be so rapidly extended as to give us a very abnormal proportion coming on the eligible list in any five- year period in the future. In other words, for the future we assume hat subgroups will progress to the eligible list in such a way that for each five-year period we have a new eligible subgroup like the one that we predict will be eligible in 1921. As explained above, these assumptions involve the idea that, for ages under 50 or service periods under 25 years, the service has reached a somewhat stationary character so far as the number in the five- year subgroups near the age of retirement are concerned. On the whole, it is more likely that such an assumption will lead to an undervaluation than to an overvaluation, as, in the first place, there is very likely some tendency towards lower withdrawal rates of teachers as a community becomes older ; and, in the second place, the number of teachers has been increased considerably within the past twenty years. In fact, we are giving a valuation as if the number of teachers in five-year periods has remained stationary for the past twenty years. On this account, it is not unlikely that our uncorrected valuations (columns 2, Tables LXVIII and LXIX) of the ultimate annual costs of a pension system for a teaching force of the size of that under consideration, should be increased by as much as 20 or 25 per cent, as is shown by the following : 164 An examination of the increase in the number of teachers in the public schools covered by the act in question shows that the increase of the total number of teachers for each five-year period over the number for the preceding one in the past three quinquennial periods is about 8 per cent for 1911-16 over 1906-11, and 5 per cent for 1906-11 over 1901-06. Furthermore, the number of teachers has increased over 50 per cent in the last 30 years. The costs of pensions as shown in column marked (5) in Tables LXVIII and LXIX are given with correctional factors applied to those eligible in the future by increasing the valuation for 1926 by 5 per cent, that of 1931 by 10 per cent, that of 1936 by 15 per cent, and each of the remaining valuations by 20 per cent. TOTAL CONTRIBUTIONS. On account of the fact that the law allows a teacher employed before January 1, 1916, the option of whether he will come under the act, and gives him until September 1, 1920, to elect to come into the system, it seems impossible at present to offer any reliable prediction concerning the total amount of the contributions from the salaries of: teachers. If the system were in full force at the present time, with the service distribution shown in Table LXVI, the total annual contribu- tions from the 21,085 teachers on whom we have data would amount to $162,750, and this amount multiplied by the correctional factor, 26/21, would give approximately the total annual contributions for all the teachers involved in the act. It should be kept in mind that we are making predictions on the basis of a service of the size of the present one, and that if we tend to approach a condition with a larger per- centage of teachers having 15 or more years, of service, it is obvious that the contributions will increase. In fact, it does not seem unlikely that such increase would amount to 20 per. cent in the ultimate state, if we may judge from the increase that has been experienced in the service during the past 20 years. DISCUSSION OF RESULTS. We may note that in columns marked (3) on Tables LXVIII and LXIX, we find the total predicted costs of pensions per annum at five-year intervals for a group of 21,085 teachers, when we apply the methods explained above, with the numbers becoming eligible in five- year groups held constant. Under Hypothesis I, these predicted costs increase for about 50 years until the cost amounts to $779,839. Under Hypothesis II, they increase until they amount to $966,732. If we apply a correctional factor to take account of increases in the service during the past, we obtain for the ultimate cost under Hypothesis I, the value $935,807 shown in column marked (5) in Table LXVIII, and under Hypothesis II, the value $1,160,078 shown in column marked (5) in Table LXIX. In Tables LXX and LXXI, we show the resulting estimate cost for all teachers covered by the act. Tables LXVIII and LXIX apply to the 21,085 on whom we collected data as to age, length of service and salary, and do not include the teachers of the eight counties from I which we failed to secure data. From available figures, however, we 165 estimate that there are in the neighborhood of 26,000 teachers covered by the act ; and our estimates in Tables LXX and LXXI are simply obtained from figures in Tables LXVIII and LXIX, by multiplying those figures by 26/21 and recording results to the nearest $1,000. TABLE LXVI. (Illinois State Teachers, male and female.) SHOWING THE NUMBER OF MALE AND FEMALE TEACHERS IN ACTIVE SERVICE IN THE ILLINOIS STATE TEACHERS' PENSION AND RETIREMENT FUND, JANUARY 1, 1916, CLASSI- FIED IN GROUPS ACCORDING TO YEARS OF SERVICE AND AGES AS OF JANUARY 1, 1916. (Basis of 21, 085 teachers.) Ages Inclusive. Years of service. Totals. 0-4 inch 5-9 inch 10-14 incl. 15-19 incl. 20-24 incl. 25-29 incl. 30-34 incl. 35-39 incl. 40-44 incl. 45-49 incl. 50-55 incl. 17-19 1,375 7,272 1,399 266 76 37 18 8 3 4 1,257 2,832 857 230 85 31 10 4 "'2 1 1 1,379 8,529 4,602 2,333 1,416 1,031 807 482 331 118 46 9 2 20-24 25-29 "'in' 1,106 461 178 79 33 9 3 30-34 35-39 104 572 343 127 41 26 5 1 "77 345 269 95 25 15 5 40-44... 45-49 43 247 '36 60-54 55-59 *154 86 23 4 119 94 23 22 70 23 8 1 14 25 13 2 '"9 2 "'2' 2 1 60-64 65-69 . . . 70-74 75-79 1 Totals 10, 456 5,314 2,240 1,219 831 557 274 124 CA 11 5 21,085 The numbers enclosed between these lines represent the number eligible for pensions, January 1, 1916 in all, 699. TABLE LXVIL (Illinois State Teachers, male and female.) TEACHERS UNDER ILLINOIS STATE TEACHERS' PENSION AND RETIREMENT FUND, WITH 25 OR MORE YEARS OF SERVICE AND 50 YEARS OR MORE OF AGE, CLASSIFIED IN REGARD TO SALARIES (BASIS OF 21.085 TEACHERS). A 3 e. Less than $600. $600-8699 inclusive. $700-$799 inclusive. $800-$899 inclusive. $900 and over. Totals. 50... 31 12 10 9 20 82 51 52 16 20 10 7 10 6 6 3 16 17 58 53 53 54 21 13 7 9 7 7 7 4 9 18 51 51 55 .. 23 9 8 3 20 63 56 22 14 14 6 13 69 57... 21 9 5 5 19 59 58 12 11 4 5 14 46 59 11 3 2 3 8 27 60 61 5 6 9 4 2 3 1 3 8 22 20 62 63 12 7 3 3 3 6 2 23 18 64... 5 1 1 3 11 65 6 2 1 10 66 4 2 1 2 10 67.. 2 1 1 2 7 98 3 2 4 9 69 1 2 70 2 2 4 71 72 1 1 73 1 1 74 1 1 75 76 77 1 1 Totals 244 117 86 64 188 699 166 TABLE LX VIII (Illinois State Teachers, male and female.) SHOWING TOTAL FUTURE COST OF PENSIONS FOR 21, 085 TEACHERS IN THE ILLINOIS STATE TEACHERS' PENSION AND RETIREMENT FUND, AND THE AMOUNT OF TEACHERS' CONTRI- BUTIONS WHEN THE SYSTEM IS FULLY IN FORCE. FIGURES GIVEN IN FIVE YEAR INTERVALS (BASIS OF 21, 085 TEACHERS). Results under Hypothesis I. Year. (1) Pensions to those at present eligible. (2) Pensions to those eligible in future (present active service and future entrants.) (3) . Total pensions if the number be- coming eligible in five year groups remains constant. (4) Total Contributions. (5) Total pensions with correctional factor applied (See p. 164.) 1916. $108, 400 $108, 400 1921 116 591 $ 91 708 208, 299 1926. 153,467 181,519 334, 986 $344, 062 1931 178 134 278, 021 456, 155 483, 957 1936. 132, 969 453, 927 586, 896 * $162,750 654, 985 1941. 86,097 593, 434 679, 531 162, 750 824, 047 1946 1951. 45,452 17,823 691, 159 747, 607 736,611 765, 430 162, 750 162, 650 874, 843 914, 951 1956 1961 1966. 4,576 634 33 771,987 778, 794 779, 784 776, 563 779, 428 779,817 162, 750 162, 750 162, 750 930, 960 935, 187 935, 774 1971 779, 839 779, 839 162, 750 935, 807 *We do not predict the amount of the contributions bafore 1936 because we have no way of knowing even ap j proximately the number of experienced teachers who will elect to come under the pension system. TABLE LXIX. (Illinois State Teachers, male and female.) SHOWING THE TOTAL FUTURE COST OF PENSIONS FOR 21, 085 TEACHERS IN THE ILLINOIS STATE TEACHERS' PENSION AND RETIREMENT FUND, AND THE AMOUNT OF TEACHERS' CONTRIJ BUTIONS WHEN THE SYSTEM IS FULLY IN FORCE. FIGURES GIVEN IN FIVE YEAR INTER" VALS (BASIS OF 21, 085 TEACHERS). Results under Hypothesis II. Year. (1) Pensions to those at present eligible. (2) Pensions to those eligible in future (present active service and future entrants). (3) Total pensions if the number be- coming eligible in five year groups remains constant. (4) Total contri butions. (5) Total pensions with correctional factor applied (See p. 164.) 1916 $185 200 $185 200 1921 176 165 $165 988 342 153 1926.... 181,473 319, 398 500, 871 $516,841 1931 1936 1941 1946 1951 1956 1961... 1966 1971 178,134 132,969 86,097 45,452 17,823 4,576 634 33 464, 914 640,820 780, 327 878, 052 934, 500 958, 880 965, 687 966, 677 966, 732 643, 048 773, 789 866, 424 923, 504 952,323 963, 456 966,321 966, 710 966,732 "*'$i<52,'750"' 162, 750 162,750 162, 750 162, 750 162, 750 162, 750 162, 750 689, 539 869, 912 1,022,489 1,099,114 1,139,223 1, 155, 232 1,159,458 1,160,045 1,160,078 * We do not predict the amount of the contributions before 1936 because we have no way of knowing even approximately the number of experienced teachers who will elect to come under the pension system. 167 TABLE LXX. (Illinois State Teachers, male and female.) SHOWING ESTIMATED FUTURE COSTS OF PENSIONS FOR THE ENTIRE GROUP OF TEACHERS COVERED BY THE ACT, REGULATING THE ILLINOIS STATE TEACHERS' PENSION AND RETIREMENT FUND AND THE CONTRIBUTIONS WHEN THE SYSTEM COMES FULLY INTO FORCE (BASIS OF 26,000 TEACHERS). Results under Hypothesis I. (1) (2) (3) Total cost of pensions if Year. Total cost of pensions if the number becoming eli- gible in five year groups remains constant. Total contributions. we apply the correctional factor to allow certain varia- tions in the number becom- ing eligible. (See p. 164.) 1916 $134 000 1921 258, 000 1926 415, 000 $ 426,000 1931 565, 000 599, 000 1936 727, 000 $201, 000 811,000 1941 841,000 201,000 1,020,000 1946 912,000 201, 000 1,083,000 1951 948,000 201, 000 1, 133, 000 1956 961,000 201,000 1, 153, 000 1961 965, 000 201,000 1,159,000 1966 965, 000 201,000 1,159,000 1971 966, 000 201, 000 1, 159, 000 iThe estimated costs in Tables LXX and LXXI are obtained by multiplying results in Tables LXVIII and LXIX by 26-^21, and recording the products only to the nearest $1, 000. TABLE LXXI (Illinois State Teachers, male and female.) SHOWING ESTIMATED FUTURE COSTS OF PENSIONS FOR THE ENTIRE GROUP OF TEACHERS COVERED BY THE ACT, REGULATING THE ILLINOIS STATE TEACHERS' PENSION AND RE- TIREMENT FUND AND THE CONTRIBUTIONS WHEN THE SYSTEM COMES FULLY INTO FORCE (BASIS OF 26,000 teachers) Results under Hypothesis II. Year. (1) Total cost of pensions if the number becoming eli- gible in five year groups remains constant. (2) Total contributions. Total cost of pensions if we apply the correctional factor to allow certain vari- ations in the number becom- ing eligible. (See p. 164.) 1916 $ 229,000 1921 424 000 1926 620, 000 $ 640,000 1931 796, 000 854, 000 1936... 1941 958, 000 , 073, 000 $201, 000 201,000 1,077,000 , 266, 000 1946 ,143,000 201,000 ,361,000 1951 , 179, 000 201,000 , 410, 000 1956 , 193, 000 201, 000 ,430,000 1961 , 196, 000 201, 000 , 436, 000 1966 , 197, 000 201, 000 , 436, 000 1971 , 197, 000 201, 000 , 436, 000 SALARIES. In Table XCV, Chapter VI, p. 186, we show a classification of the 21,085 teachers from 94 counties with respect to salaries. It should be noted that 4,912 of these teachers receive less than $400 per year, the amount of the pension. It is found that the total of salaries for the group of 21,085 teach- ers amounts roughly to $11,000,000. GENERAL STATEMENT CONCERNING THE ULTIMATE COST. While there is considerable variation in the results that we have obtained from different hypotheses, it seems fairly safe to say that the ultimate annual pension payments under the present system will amount to between 7 and 12 per cent of the annual salary payments. On the basis of available information, it does not seem safe to make a much more definite prediction than this at the present time. 168 CHAPTER VI. STATISTICS RELATING TO THE FUNDS CREATED UNDER THE SEVERAL PUBLIC SERVICE PENSION ACTS OF THE STATE OF ILLINOIS. Of the fifteen pension acts on the statute books of Illinois on January 1, 1916, one, namely, the Fire Insurance Patrolmen's Act, does not involve the expenditure of public money ; another, namely, the Act of 1915 relating to park police, was not put into force November 1, 1916; and a third, namely, the Act for county em- ployees of Cook County was declared invalid on August 2, 1916. Of the remaining twelve acts, the one relating to the State Teachers' Pension and Retirement Fund, is State-wide in its scope after excluding the cities of Chicago and Peoria. The Fire- men's Act applies to all cities, towns and villages of 5,000 or more inhabitants. The 9,000 to 50,000 Policemen's Act is self explana- tory, with respect to the slope of its application. The Policemen's Act relating to cities of 50,000 or more inhabitants is self explanatory except that Chicago is excluded. The Teachers' Act, applying to cities of 65,000 or more inhabitants, relates only to the city of Peoria. The seven remaining acts apply to institutions situated in the city of Chicago. Under these, the beneficiaries are : Chicago policemen ; Chicago public school teachers ; Municipal employees of Chicago; Park policemen; Public school employees; Public library employees ; Employees of the House of Correction. To determine the number and extent of the funds outside of Cook County in operation under the Firemen's Act and the two police acts not applicable to Chicago, we addressed a letter on March 2, 1916 to the mayor of each city, town or village of 5,000 or more inhabitants in the State, requesting information regarding the existence of pension funds in the corporation under his adminis- tration. This letter was followed by another on April 27 and a third on August 21. The result was that replies were received from all such corporations, excepting the cities of Spring Valley and Mount Carmel. Judging from the size of these cities, it is to be presumed that no pension funds exist in either of them, so that we may state with confidence that all the pension funds in this State] outside of Chicago not listed above, are for the beneficiaries and inj the cities listed below. For Firemen : Peoria, East St. Louis, Springfield, Rockford, Joliet, Decatur, Aurora, Elgin, Bloomington, Evanston, Moline, j Oak Park, Sterling. For Policemen: Act relating to cities of 9,000 to 50,000 in- 1 habitants: Rockford, Joliet, Decatur, Aurora, Bloomington,] Evanston, Moline, Champaign, Quincy. For Policemen. Act relating to cities of 50,000 or more in- habitants: Peoria, Springfield. The object of this chapter is to present in tabular form further statistics than those given in Chapter V relating to the several pension funds. 169 TABLE LXXII (Chicago Policemen). HOWING BY AGES AS OF JANUARY 1, 1916 THE NUMBER IN ACTIVE SERVICE OR ON PENSION ON THAT DATE. Age Active Service Disability Pensioners Service . Pensioners Widows Clas^Ai Widows of Class B i Widows of Class C i Age Families of Children with respect to age of youngest child. j2 23 1 1 7 8 1 24 . 9 2 J6. . . 9 28 10 11 2 4 28" ' 104 78 12 13 1 4 ) 1 133 142 1 1 1 1 14 15 2 6 201 207 1 220 209 2 2 "'2' ""a" 210 255 211 '"a 3 i 2 2 250 234 1 2 5 " '5 151 i 3 1 5 111 4 5 115 3 4 4 115 3 4 6 6 117 2 1 4 6 7 100 101 1 1 2 9 3 6 6 6 10 12 99 1 10 2 5 8 102 11 5 7 11 104 127 2 1 17 19 8 5 6 12 5 9 109 21 9 16 20 120 2 21 5 8 9 129 130 3 21 28 6 1 17 7 17 11 99 109 5 4 31 26 6 4 13 15 19 10 87 2 30 4 11 10 76 5 24 3 g 11 55 3 21 7 6 2 39 2 29 2 7 3 38 21 2 2 4 23 1 17 3 11 5 17 2 23 1 10 3 14 14 2 6 5 65 14 10 2 9 4 66 67 9 13 '"2 13 10 2 1 13 4 5 2 68.. 7 14 1 3 1 69 5 1 18 5 3 70 71 3 14 15 1 1 7 3 4 4 72 12 2 2 2 73 1 9 6 3 74 9 2 75 5 4 76 7 2 1 77. 1 4 3 1 78 3 1 79 3 1 80 3 1 2 81 2 1 82 2 83 1 1 84 85 86.. 1 Totals 4,830 46 555 123 278 255 Total 22 1 For definitions, see page 91. 170 TABLE LXXIII (Chicago Policemen). SHOWING THE NUMBER AND SALARIES OF POLICEMEN IN ACTIVE SERVICE ON JANUARY 1, 1916, CLASSIFIED BY YEARS OF SERVICE. Years of Service $900 to $999 Inclusive $1,000 to $1,249 Inclusive $1,250 to $1,499 Inclusive $1,500 to $1,749 Inclusive $1,750 to $1,999 Inclusive $2,000 to and over Totals 0... ] | i i 1 t- 89 06 5 1 1 1 i 2 >> i : 3 281 55 6 16 5 5 11 9 11 7 9 8 2 4 6 3 1 13 5 11 10 8 6 4 5 '"'" 2 4 92 396 184 113 226 250 143 74 381 657 422 32 33 88 19 116 22 13 74 206 91 103 62 226 159 114 150 78 82 49 32 62 5 36 11 9 4 1 2 3 5 1 2 9 123 105 208 244 136 63 372 625 387 23 24 72 15 80 17 8 52 141 55 68 42 167 117 81 103 51 56 29 26 38 2 25 7 7 3 '"i"' 3... 1 4 5 1 6 7 2 9 10 11 21 26 ""i"' 10 '"i**" '"2"' 5 39 17 17 7 36 24 13 23 15 13 10 2 8 1 4 1 ' "i"' '"2"" ::::: 13 14 15 ... '"2"" 3 1 2 2 6 3 3 3 8 10 11 14 6 4 3 2 5 1 1 8 1 16 17 18 19 20.. .. 2 15 5 5 2 9 4 4 10 3 7 3 2 10 1 5 2 2 21 22 23 24 25.. .. 26 27 28 29 30 31... 1 ....._... 32 33 34. 35 36..., 1 37 38.... 1 2 2 5 39 40 1 41 42 4 1 5 Totals .... 203 516 3,594 321 92 104 4,830 TABLE LXXIV. (Chicago Policemen). SHOWING THE NUMBER OF CHICAGO POLICEMEN IN ACTIVE SERVICE JANUARY 1, 1916, CLASSIFIED IN GROUPS ACCORDING TO YEARS OF SERVICE AND AGES AS OF JANUARY 1, 1916. Ages Inclusive YEARS OF SERVICE Totals 0-4 Years Inclusive 5-9 Years Inclusive 10-14 Years Inclusive 15-19 Years Inclusive 20-24 Years Inclusive 25-29 Years Inclusive 30-34 Years Inclusive 35-39 Years [nclusive 40-42 Years Inclusive 25-29... 347 430 204 19 7 3 5 509 752 202 19 5 10 2 352 979 1,160 609 506 615 426 131 48 4 30-34 . 40 181 225 105 28 12 2 '"is" 109 140 119 32 11 1 1 '"5" 52 192 257 121 9 5 35-39 40-44. . . . 2 43 183 180 59 5 1 45-49 50-54 55-59.... 17 69 41 18 3 2 5 9 60-64 1 1 8 1 65-69 70-73.... Totals .... 1,011 1,505 594 431 641 473 146 19 10 4,830 171 TABLE LXXV (Chicago Policemen). SHOWING THE NUMBER OF MEN IN ACTIVE SERVICE WITH 20 YEARS OR MORE OF SERVICE TO THEIR CREDIT ON JANUARY 1, 1916, CLASSIFIED INTO GROUPS ACCORDING TO NUMBER OF YEARS MARRIED. 3 3 o > 55 > ffl i p 11 N PQ c 11 c 13 Q Q 11 * Percentage of total number in Age Number Ma Years incl 11 g ^2 age Age of fe in Colum Number Ma Years incl ii P B-2 1 -^ Number Ma 10-14 Yrs. 1" sj ll Is ^ S Number Ma 15-19 Yrs. 11 s-3 "8.3 jA Is 3 Age Number married years inclusive of youngest wife column A. age age of wife column A. Number married years inclusive Pi age age of wife column B. Number married years inclusive of youngest wife column C. age age of wife in column C. Number married years inclusive a a II age age of wife column D. Number married years or more I 8 1 3 c ~O " Percentage of total number in group compared with total number of married men as given in the Table. A a-s g.9 B a-s |.S C |.S 1 D JP %'~ E I 8 F S 42... 2 34 35 1 36 36 5 37 40 8 42 Group A 3.5 43 1 36 35 4 32 36 1 43 43 3 9 43 44 2 37 38 5 36 41 8 15 44 Group B 38 45 1 35 35 3 33 36 7 36 39 9 20 45 46 3 40 4 36 40 13 o 46 Group C 66 47... 1 49 49 1 38 38 5 41 43 15 22 2 47 48 1 23 23 2 40 41 2 36 41 4 39 43 14 23 3 48 Group D 16.1 49... 1 36 36 1 36 36 2 37 41 6 37 42 19 29 2 49 50 3 35 39 9, 34 39 4 40 43 15 50 Group E 70 51 1 47 47 i 42 42 !> 49 2 40 43 00 51 52 53 1 44 44 3 1 45 00 47 38 40 43 5 37 40 47 45 10 29 18 00 2 52 CO 100.0 1 39 39 1 43 43 3 38 44 21 26 2 54 Percentage of 55 .. 3 41 45 18 21 1 55 total number in 58 57 2 1 50 53 52 53 .... 50 ' 'so' Y 46' '46' 12 15 14 18 3 4 56 57 group compared with total number 58 15 15 1 58 of married and un- 59 1 51 51 1 39 39 2 38 49 10 14 59 married men as 60... 1 55 55 7 8 3 60 given in the Table 61 2 2 61 62... 2 2 62 Group A 3.1 63 1 39 39 7 g 1 63 ~ r> o o 64... 4 4 1 64 65 1 65 Group C 5.8 66... 1 47 47 1 2 66 Group D 14.3 67 . 5'? 53 1 9 67 68 3 3 68 69 69 Group F 11.4 Totals .... 14 15 26 64 278 397 51 100.00 TABLE LXXXI (Chicago Firemen). SHOWING THE NUMBER OF SERVICE AND DISABILITY PENSIONERS RECEIVING LESS THAN $600 AND MORE THAN $900 PER YEAR AND THE AMOUNTS THUS RECEIVED, CLASSIFIED BY AGES AS OF JANUARY 1, 1916. Age Number receiving less than $600 Total amount less than $600 Number receiving more than $900 Total amount more than $900 Age Number receiving less than 1600 Total amount less than $600 Number receiving more than $900 Total amount more than $900 32 . 54 2 66 4 138 33... 55 2 66 3 114 34 1 $72 56... 2 14 35... 57 2 14 36 58 37 59 1 75 2 14 38... 1 62 60 4 138 39.. 61 1 33 1 100 40 1 33 62 41 . 1 7 63 2 54 1 7 42 64 1 33 2 307 43 65 3 832 44 66 .. 2 31 45... 46 1 33 33 1 100 67 68... " i ' '"26" 2 2,600 47 48 1 33 2 482 69 70 i i 33 33 49... 2 66 1 100 71... 2 482 50 51... 1 100 1 7 72. ... 73 2 58 65 1 2 1,100 14 52... 3 250 j 100 74 .. 53 2 50 2 107 75 1 75 1 7 176 TABLE LXXXI Concluded. Age Number receiving less than $600 Total amount less than $600 Number receiving more than $900 Total amount more than $900 Age Number receiving less than $600 Total amount less than $600 Number receiving more than $900 Total amount more than $900 76... 2 108 81... 77.. 1 72 i 7 82 78 79 1 75 83 1 72 80 Totals 35 $1, 676 44 $6, 822 TABLE LXXXII (Chicago Firemen). FINANCIAL STATEMENT REGARDING THE PENSION FUND SHOWING BY YEARS BEGINNING WITH THE YEAR 1900, THE TOTAL ASSETS JANUARY 1, THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS DURING THE YEAR AND THE EXCESS OF RECEIPTS OVER DIS- BURSEMENTS: ALSO THE NUMBER OF PENSIONERS. Total Disbursements Excess of Pensioners on roll January 1st Year assets January 1st Total receipts To pensioners Other disburse- ments Total receipts over disburse- ments Former employees Widows Children 1900. . $ 60,309 $102, 116 $ 85,081 $ 85,081 $ 17,035 1901 77, 344 141,801 91 063 91, 063 50, 738 1902; ; ; ; 128*, 082 144! 103 107! 765 107, 765 36, 338 1903 164 419 142, 237 112,510 112,510 29 727 1904^ 194', 146 103^ 427 120, 686 $ is 120, 701 -17, 274 85 139 " 195 " 1905.... 176, 872 108, 083 128, 581 320 128, 901 -20, 818 81 151 191 1906... 156, 054 210, 875 135, 353 330 135, 683 75, 192 87 166 194 1907. . . 231, 247 208, 671 148, 546 403 148, 949 59, 722 91 174 194 1908.... 290, 969 181, 149 181,911 388 182, 299 -1, 150 95 186 188 1909... 289, 819 252, 328 211,460 961 212,421 39, 907 133 194 177 1910.... 329, 727 223, 221 230, 725 896 231,621 -8,400 170 207 175 1911... 321,326 225, 934 251, 182 909 252, 091 -26, 157 175 235 194 1912.... 295, 170 231,021 268, 387 970 269, 357 -38, 336 190 243 192 1913.... 256, 834 233, 634 287, 248 989 288, 237 -54, 603 202 264 188 1914.... 202, 231 225, 026 309.234 737 309, 971 -84, 945 233 270 175 1915.... 117,286 226, 196 339,911 470 340, 381 -114, 185 244 283 169 1916.... !3, 101 2184,425 247 291 164 1 Tax levy of 1915 collectable in 1916, $200,000 not included in above. 2 Pensions for 6 months of 1916. 3 The sign ndicates excess of disbursements over receipts. 177 TABLE LXXXIII.-(Chicago Teachers). SHOWING BY AGES AS OF JANUARY 1, 1916, THE NUMBER IN ACTIVE SERVICE OR ON PENSION ON THAT DATE. Age Active Service Pensioners Age Active Service Pensioners Male Female Service Disability Male Female Service Disability Male Female Male Female Male Female Male Female 20 21 9 2 Y 6 7 14 11 4 18 17 12 14 20 21 17 25 20 15 22 27 20 31 21 19 11 28 32 17 20 22 17 20 26 16 14 24 20 61 144 223 267 253 253 219 215 189 147 154 159 199 179 212 254 224 211 233 268 258 229 211 203 22S 222 178 188 150 147 133 105 99 86 55 56... . 18 19 7 21 12 3 6 5 5 10 4 6 4 "5" 2 2 84 88 63 44 35 40 25 26 18 16 13 7 5 3 6 3 3 3 2 2 1 1 16 19 17 23 23 25 14 18 15 12 17 11 5 11 10 12 5 12 8 6 5 2 1 3 4 1 1 "'i' 3 '"2 2 '"i i 57 58 59... 60 61 62 63 64 65 23 24 ' 25 26 27 28 29 30 31 32 33 "'i' 1 ..... 66 67 68 69 70 71 72 34 35 "'i' i "'2' 2 2 3 5 2 2 1 3 2 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 *. 73 74 75 76 77 78... 79 80... 81 82 4 1 ...., "'i' i i 2 3 9 5 1 4 1 1 4 3 ..... 2 ...... i "'2' 4 5 6 12 11 18 23 26 18 28 83 84... 85 86 '"2 87 Totals 744 7,010 22 467 i 54 178 TABLE LXXXIV. (Chicago Teachers, Female). SHOWING THE NUMBER AND SALARIES OF FEMALE TEACHERS IN ACTIVE SERVICE ON JANUARY 1, 1916, CLASSIFIED BY YEARS OF SERVICE. Years of Service II 3 si ll o_> ll P .> ? ll ll Oi SI ll Si SJ 1 Totals 9 O C 3 "7*- s 5 1~ 2 S~ s~ 1~ 3 3 0... ? 4 j 1 1 1 i 11 1 19 130 38 25 5 g 8 6 3 1 1 244 2 4 94q 43 9q 17 11 g 14 5 g 384 3 4 98 26 211 26 44 32 19 11 1 16 7 12 4 5 10 8 6 4 7 i 424 350 5... 1 16 64 18 10 11 g 17 8 3 260 6 7 8... 1 9 5 1 22 15 15 124 69 ?6 36 57 12 13 33 8 11 8 3 13 18 2 7 9 10 10 2 5 10 10 2 5 8 234 215 228 9 10 .... 10 9 30 18 65 ?1 54 21 25 48 3 9 9 7 11 10 2 g 3 231 229 11 12 13 1 1 6 2 35 21 q 13 20 13 18 18 15 70 98 59 118 66 10 16 g 6 11 13 7 9 7 3 6 4 1 1 i 229 322 168 14 15 1 1 8 7 6 3 4 1? 30 53 85 13 15 5 7 10 2 4 134 185 16 1 4 11 11 54 130 17 g 2 13 2 255 17... 18 3 3 8 8 10 8 48 40 122 137 10 13 7 3 4 4 8 4 9 226 246 19 4 4 39 111 16 10 g 2 194 20 4 2 5 36 115 93 ii 4 10 8 220 21 3 2 4 53 144 30 8 9 7 258 22 23... 4 4 5 2 1 35 105 74 16 15 16 14 3 6 4 5 5 193 144 24 5 1 4 26 92 17 15 4 5 4 3 175 25 26 2 1 2 1 4 1 25 99 95 91 20 10 19 4 1 6 3 1 3 181 161 27 28 ... . 1 1 1 17 98 85 54 11 q 14 13 2 5 5 10 5 3 149 119 29 q 54 11 14 3 9 4 97 30... 31 ... 3 1 .... 5 13 37 34 9 8 12 14 3 1 4 1 1 6 7 80 81 32 13 39 4 11 1 ?, g 76 33 34 35 1 2 1 9 3 7 26 12 13 4 3 7 8 g "i" 2 1 2 6 8 g 60 36 39 36 1 9, 9 4 7 3 26 37 14 4 25 38 39 1 1 10 5 3 7 1 1 2 1 8 1 33 10 40 41 1 9 6 g 1 \ 1 2 4 12 14 42 1 3 g 3 1 19 43 1 1 3 1 5 11 44 2 1 3 45 1 2 1 2 6 46 1 1 . 1 3 47 1 2 3 48 2 2 49 1 1 ' 2 50 1 1 51 1 52 1 1 Totals 33 S3Q 665 60P 488 319 q 9 q 2,165 38?, 394 ?5 167 91 104 7,010 179 TABLE LXXXV (Chicago Teachers, Male). SHOWING THE NUMBER AND SALARIES OF MALE TEACHERS IN ACTIVE SERVICE ON JANUARY 1, 1916, CLASSIFIED BY YEARS OF SERVICE. Years of service Less than $1,000 $1,000- Inclusive $1,250- $1,499 Inclusive $1, 500- $1, 749 Inclusive $1,750- $1,999 Inclusive $2, 000- $2,499 Inclusive $2, 500- $2, 999 Inclusive $3, 000- Incl'usive $3, 500 and over Totals o 2 6 6 6 3 1 2 1 5 '"i"" 9 17 18 12 4 5 2 2 12 17 10 12 6 3 7 3 4 34 45 54 36 27 33 35 27 18 9 17 21 19 20 27 26 25 22 19 26 19 27 11 17 19 19 12 10 13 7 5 5 6 4 2 1... 2 3 7 4 7 3 5 9 7 4 4 2 2 2 3 4 2 4 1 1 1 1 3 1 1 1 4 1 1 10 6 8 11 10 5 4 4 3 6 y 1 "i"' '"3"' 4 5 3 3 8 6 6 2 4 6 4 8 6 9 13 5 5 4 1 5 3 2 3 3 1 2 2 6 .. '"2"' "'i' " 7 8... ....... 1 '"2" 1 1 3 2 9 10 2 3 4 3 5 8 5 5 7 5 10 4 8 5 4 6 2 2 1 1 '"2" 3 ' 'i' " i 2 2 4 4 4 2 6 11 1 1 1 1 1 1 1 1 1 2 1 2 5 2 1 1 1 1 2 1 1 12 i 13 14 15 16 i 2 17... 18.. i i 1 2 19... 20 .. '"5"' 3 4 1 3 3 7 6 5 7 6 4 4 3 4 1 21 22.. 23 24... 1 '"i"' 4 2 4 1 1 '"i"' 25 26 27 28 29 2 30 31 32 1 ....... ' "i"' 33 ... 1 i 34 35.. 1 36 37... '"i" 1 3 2 3 1 1 5 ....... "'i' 2 4 3 5 1 1 5 '"l" 1 1 2 38 39 2 40 41... 42.... 43... 44 45 1 46.. . 47 Totals 37 81 102 87 82 118 96 45 98 744 t 180 TABLE LXXXVI.-CChicago Tawtefc, female). SHOWING THE NUMBER OF CHICAGO FEMALE TEACHERS IN ACTIVE SERVICE, JANUARY 1, 1916 CLASSIFIED IN GROUPS ACCORDING TO YEARS OF SERVICE AND AGES AS OF JANUARY 1 1910. Ages Inclusive Years of service Totals 1 j| 1 { 23 a ' ! Si J si 53 | 5< c 52 nclusive 1 "1 8 1 O GO 2 '! *| 10 ! 20-24... 694 482 108 62 42 19 5 1 21 622 276 105 63 52 22 5 2 ' ' 25 429 380 124 86 26 9 1 1 715 1,129 838 1,134 1,169 966 570 314 125 29 17 4 7,010 25-29 30-34 25 538 320 119 64 29 10 1 ' ' 49 ' 559 210 114 40 13 4 ' ' 81 434 124 58 22 6 2 ' ' 46 ' 195 67 19 5 1 35-39. . . ' ' 20 ' 95 16 " "2" ' ' io ' 40 4 4 40-44 45-49 50-54 55-59 60-64. . . 65-69 2 8 3 3 " "3" 70-74 75-77 Totals.. 1,413 1,168 1,082 1,106 990 707 333 133 59 16 3 TABLE LXXXVII.-CChicago Teachers, Male). SHOWING THE NUMBER OF CHICAGO MALE TEACHERS IN ACTIVE SERVICE, JANUARY 1, 1916 CLASSIFIED IN GROUPS ACCORDING TO YEARS OF SERVICE AND AGES AS OF JANUARY 1, 1916. Years of Service | B > B B > B B B Ages inclusive A 5 I 3 'E M 11 0,1 30-34 irs inclusi 35-39 irs inclusi 40-44 irs inclusi Totals B 8 S 8 8 8 I V S3 OJ >H KH (N H >< 21-24. . . 27 i 28 25-29 41 21 62 30-34 48 38 8 3 97 35-39 24 27 27 26 104 40-44 20 21 10 47 12 110 45-49 : .... 9 17 18 20 29 15 108 50-54 4 13 16 14 24 23 6 100 55-59... 6 6 24 27 11 2 77 60-64 1 2 6 5 5 8 2 29 65-69 1 1 3 2 5 1 4 2 19 70-74 2 1 2 2 2 9 75-78 1 1 Totals 173 140 86 119 100 73 27 14 8 4 744 181 = & H W nt OJ 55 < H J K H O 3 w ^ gg Pn O il 02 Q w a w M Js x5 CQ 2g ^ s g 02 03 II S5 III: 2*3 III "rt'S ^ < H O 00 -H O OJUS 00 O -H oo o t~ ^H t-. i^ oo ~H ec ^f<-^<-i*-><->>->~* >->>-> 333223222 182 TABLE LXXXIX. (Municipal Employees, male and female). SHOWING THE NUMBER IN ACTIVE SERVICE JANUARY 1, 1916, CLASSIFIED IN GROUPS ACCORDING TO OCCUPATIONS AND AGES ON THAT DATE. Age Occupations, male 'Occupa- tions, female Age Occupations, male Occupa- tions, female A B C D E F G H A B C D E F G H 19... 20 21 22... 23 24... 1 6 22 55 64 85 124 94 98 110 117 124 128 108 128 102 111 94 104 103 99 92 91 91 100 83 122 104 106 104 80 97 83 53 54 91 78 84 70 72 55 55 48 38 34 44 23 17 18 11 18 11 6 7 2 6 4 5 3 3 1 1 2 1 27 29 23 27 17 17 19 16 14 20 13 9 4 5 5 9 2 2 5 2 2 3 1 'i 1 2 5 3 3 3 3 1 3 1 7 7 5 4 3 2 2 1 2 1 1 6 3 4 3 5 5 3 5 3 2 1 4 1 1 1 2 5 7 16 11 11 13 21 21 17 21 9 12 14 14 20 16 18 15 17 20 18 13 17 10 22 8 10 11 13 2 6 'i 1 2 1 4 2 3 2 5 5 4 5 8 5 1 10 8 5 1 6 6 55 56 57... 58 59 60 61 62 63 64 65.... 66 67 68... 69 70 71... 72 73... 74.. .. 75 76.. .. 77.. .. 78.. .. 79.. .. 80.. .. 81... 82 83 84 Totals 1 1 3 1 5 7 10 15 20 12 8 14 13 15 14 8 7 5 9 5 12 12 7 4 7 9 9 7 7 i i "i' 2 'i 2 2 i 2 2 7 12 6 13 15 9 14 15 13 12 13 18 21 20 12 23 19 21 23 20 23 28 31 26 31 21 32 38 25 26 27... 28 29 30 31 32... 1 .... 1 2 .... 1 .... Y i i .... i i 1 1 3 1 3 6 3 5 1 4 1 2 3 1 4 1 2 2 1 2 1 1 1 33 34 35... 36 37 38 39 40 41 42 1 1 1 1 1 43 44 45 46 47 22... 49 50 51 52 .... 132 469 3,836 812 16 54 273 12 J The types of occupations included are: Column (A). Such as clerks, stenographers, bookkeepers, accountants, auditors, draftsmen, physicians, health officers, engineers (technical), secretaries, punch and machine operators, cashiers, statisticians, inspectors (boiler, brick, gas, paving, building, material, waterpipe, plumbing, ventilation, etc.), superintendents (ward, bridge, construc- tion, machinery, medical, etc.) , foremen (carpenter, repair shop, section, pipe yards, etc.) , machinists, carriage painters or trimmers, linotype operators, meter testers, pattern makers. Employees in these classes pay the regular insurance premium rates. Column (B). Such as janitors, hostlers, stationery firemen, oilers and operating engineers, brass workers, laborers (common, where no special hazard exists). Employees in these classes are rated from $2.25 to $6.00 higher per $1,000 of insurance, varying with age at which insurance is taken. Column (C). Underground workers. Employees in this class are rated from $9 to $50 higher per $1,000 of insurance, varying with age at which in- surance is taken. Column (D). Such as electrical mechanics, their helpers and foremen, harbor policemen. Employees in these classes are rated from $0 to $2.50 higher per $1,000 of insurance, without regard to age at which insurance is taken. Column (E). Such as linemen and their foremen (coming in contact with live wires), telegraph repairers, cable splicers, arc lamp trimmers and repairers, structural iron workers, bridge carpenters and painters, window washers. Employees in these classes are rated from $5.00 to $7.50 higher per $1,000 of insurance, without regard to age at which insurance is taken. Column (F). Such as electrical repairers on high tension lines, caisson workers. Employees in these classes are not insurable. Column (G). Such as stenographers, clerks, punch and machine operators, cashiers, librarians, nurses, health Employees in these classes pay the regular insurance premium rates. Column (H) . Such as janitresses, laundresses. Emptoyees in these classes are rated from $2.25 to $6.00 higher per $1,000 of insurance, varying with age at which insurance is taken. 183 TABLE XC. (Municipal Employees, male). SHOWING THE NUMBER AND SALARIES OF EMPLOYEES IN ACTIVE SERVICE ON JANUARY 1, 1916, CLASSIFIED BY YEARS OF SERVICE. S flj o 2 1 S | I s OS | |, 1 | 1, of bervice s-s ?! II 3> '/: 3-g r-3 II ,1 1 A' 3-1 21 Tl S! 'y* oo 2j 21 a si M i B 2 a ta a S = ^ a l^ja o I ~ < * 1 3 U '> 3 "" S S a ^ 51 S ai I 1 3 4 3 14 3 87 38 3 77 36 "q' q 5 1 37 i 11 4 5 "2" 16 391 2 3 4 5 6 3 1 i 3 .... 12 4 1 1 19 9 1 4 94 41 50 57 17 155 59 28 27 8 88 36 35 46 17 7 2 5 8 97 45 24 57 37 16 49 37 38 16 13 4 5 10 7 106 51 68 32 43 57 22 17 11 10 10 25 15 6 4 2 2 3 1 1 2 1 1 "i" i "2" 684 352 292 303 163 7 8 1 1 2 1 14 10 99 13 14 1 1 64 84 18 ?7 2 6 46 50 19 95 7 14 "3" i 2 3 200 272 9 10 1 1 1 23 10 30 13 22 11 2 1 88 34 ?0 9 11 94 68 45 40 22 16 2 4 1 1 2 1 377 257 11 12 1 1 1 9 5 1 11 9 6 i 32 16 1 3 59 34 23 17 3 3 1 1 ' Y 174 120 13 14 2 1 3 3 6 7 8 4 2 12 13 8 4 ... 17 8 6 6 4 2 'i' i i 69 52 15 16.. 1 "3" *2 3 8 8 1?, 5 7 i 15 34 4 8 "2 19 35 8 14 8 6 1 1 3 4 75 139 17 1 7 6 9 8 10 3 15 11 3 i 100 18 19 5 3 12 38 17 8 2 62 37 7 3 63 19 39 98 38 22 7 3 3 2 2 2 4 332 149 20 21 ... . 2 9 3 6 10 4 3 1 1 4 4 q 1 17 90 8 q 7 18 57 92 22 23 4 4 3 5 7 8 4 1 8 8 7 5 15 19 8 4 4 7 4 i 1 59 62 24 25 1 1 1 1 5 4 7 3 ... 8 5 fl i 9 8 4 5 1 i ... 34 37 26 27. i 1 4 6 1 1 5 3 5 4 i 2 6 6 4 Y i i ... 30 32 28 1 9 1 14 29 1 1 2 3 4 11 30 1 g 1 4 1 13 31... 1 1 J 1 1 7 32 1 i 1 1 1 7 33... 2 2 34 9 9 1 5 35 36 i "? ... 1 1 i 2 5 37 38 i ... . 1 1 2 39 40 1 1 1 1 4 41 42. ... ... i i 2 2 43 44... 1 ... 1 ; 2 45 1 1 2 46... 47 . 48 .. 49 50.... 51 1 Totals... 3 3 11 33 92 484 555 465 41 874 440 100 994 498 291 46 27 22 24 5.003 184 TABLE XCI. (Municipal Employees, female). SHOWING THE NUMBER AND SALARIES OF EMPLOYEES IN ACTIVE SERVICE ON JANUARY 1, 1916, CLASSIFIED BY YEARS OF SERVICE. Years of Service $300- $399 Inclusive $400- $499 Inclusive $500- $599 Inclusive $600- $699 Inclusive $700- $799 Inclusive $800- $899 Inclusive $900- $999 Inclusive $1,000- $1,249 Inclusive $1,250- $1,499 Inclusive $1,500 and over Totals 1 '"e" 7 4 11 4 1 '"4" 2 ....... '"12" 12 4 4 31 1 3 1 2 4 1 2 2 12 19 2 3 1 1 '"37 " 42 15 4 4 11 3 2 7 1 1 1 '"5" 2 13 15 18 15 13 10 2 3 2 4 1 1 3 4 2 4 1 1 1 1 7 2 '"2" 2 1 5 98 94 46 49 69 31 25 23 19 11 3 4 2 11 21 19 7 12 8 11 10 6 5 1 2 2 3 2'.'.'. 3 4 5 6 7... 8 "T i 7 3 2 "3" 8 5 3 8 4 '"i" 3 3 1 9 10 11 12.... 13 14 '"i 1 5 10 3 2 ...... 1 3 2 1 3 1 1 ...... 3 2 2 5 '">" '"3" ...... 15 16 11 2 2 1 2 1 1 1 2 1 3 3 1 1 17 18 i i i 2 1 " i 19 20... '"i" '"i" 1 2 3 1 1 2 2 21 22 1 1 23 24 i 25... 1 2 1 26 27... 2 28 29 1 1 2 30 31 32... 33 34 35 36 Totals 1 1 ...... 1 2 23 56 63 90 43 145 124 26 29 601 TABLE XCIL (Municipal Employees, Male and Female). SHOWING THE NUMBER OF EMPLOYEES BOTH MALE AND FEMALE IN ACTIVE SERVICE JAN- UARY 1, 1916, CLASSIFIED IN GROUPS ACCORDING TO YEARS OF SERVICE AND AGES AS OF JANUARY 1, 1916. Ages inclusive Years of Service Totals 0-4 Years inclusive I "I 10-14 Years inclusive 15-19 Years inclusive 20-24 Years inclusive 25-29 Years inclusive 30-34 Years inclusive 35-39 Years inclusive 40-44 Years inclusive 45-49 Years inclusive 50-51 Years inclusive -19 20-24 25-29... 30-34 35-39 1 156 548 444 327 224 164 96 51 14 2 110 300 288 255 217 137 92 48 6 2 1 183 664 828 774 750 797 667 489 283 106 40 17 5 6 79 131 124 135 108 71 38 8 2 1 5 26 115 204 204 152 85 40 22 7 2 2 30 60 80 75 53 29 5 3 2 17 38 28 32 10 3 3 40-44... 45-49 50-54 55-59... 60-64 65-69 3 17 6 4 2 2 1 1 2 6 2 3 1 ..... 3 1 "'2' ..... 70-74... 75-79 80-84 Totals. 2,027 1,482 703 862 337 133 35 15 7 2 1 5,604 185 ni WE H Q "g a 2 Sa ?gl III o pa g g ? HP I? S-s.1 -2 m 823! ~f CM >O O < OOOcO i-i < sisll o OO 00 -* cr! -f IM CO C^ t^- O ^H 22222 CO CO CO CO CO Illll 32223 -" e ca e 186 TABLE XCIV. (Illinois State Teachers, Male and Female). SHOWING BY AGES AS OF JANUARY 1, 1916, THE NUMBER OF PUBLIC SCHOOL TEACHERS IN Age Number from data of 94 counties Calculated number in State Age Number from data of 94 counties Calculated number in State 17... 24 30 50 135 167 18... 202 249 51 91 112 19 1,153 1,422 52 89 110 20 1,767 2,179 53... 85 105 21 1 883 2 322 54 82 101 22... 1,825 2,250 55 91 112 23 1,646 2,030 56... 83 102 24 1,408 1,736 57. 73 90 25 1,193 1,471 58... 54 67 26 27... 1,105 874 1,363 1,078 59 60 30 28 37 35 28 766 945 61... 27 33 29 664 819 62 27 33 30... 589 726 63 23 28 31.. . 528 651 64 13 16 32... 481 593 65 13 16 33... 416 513 66 11 14 34 319 393 67 8 10 35... 335 413 68 12 15 36... 306 377 69 2 2 37... 38... 275 260 339 320 70 71 4 1 5 1 39 240 296 72 1 1 40.... : 41... 241 238 297 294 73 74 1 2 1 2 42 206 254 75 43 174 215 76 44 172 212 77 1 1 45 196 242 78 46 186 229 79 1 1 47 148 183 48 49 142 135 175 167 Totals 21, 085 26, 000 TABLE XCV. (Illinois State Teachers, Male and Female). SHOWING THE NUMBER AND SALARIES OF PUBLIC SCHOOL TEACHERS IN THE STATE OF ILLINOIS OUTSIDE OF THE CITIES OF CHICAGO AND PEORIA IN ACTIVE SERVICE ON JANUARY 1, 1916, CLASSIFIED BY YEARS OF SERVICE. (Basis of 21,035 teachers). Years of service . > gg'| S S 1 oil S*> g il ** c ID S1 ls| s^ a io>- t& c girl **3 o ~ s l - & e i a> 31 i *3J srs 3 S3 | i !l Totals I 1 ... 2 3 .. 52 .. 13 9 535 283 135 928 803 537 1,038 1,149 1,011 286 345 341 153 151 158 79 100 99 49 55 40 30 36 32 34 36 45 5 3 8 3 1 2 2 4 4 3,194 2,979 2,421 4... 5 6 7...... 8 9... 10 11 12 . 2 .. 2 . 2 .. 2 2 81 67 35 20 20 15 13 13 7 345 233 134 123 84 65 51 28 33 731 598 411 301 260 204 162 123 108 293 304 217 221 156 133 112 99 98 149 184 125 114 124 98 93 71 68 84 75 73 69 76 46 52 49 48 57 46 63 50 49 37 45 45 34 43 33 26 24 20 23 25 20 12 55 53 44 35 45 34 30 25 36 13 16 11 11 27 16 10 14 13 7 11 9 9 6 16 11 10 6 2 2 3 4 '"e .... 1,862 1,624 1 153 983 867 887 610 497 472 13 14 15... 16... 17 18... 19... .'."l .'. 1 3 2 3 2 25 21 22 15 12 12 9 82 62 63 48 48 39 27 57 55 54 54 51 44 40 59 41 48 51 42 22 35 38 41 34 28 16 18 22 37 29 23 20 24 17 20 10 18 17 15 10 12 18 18 19 20 14 16 13 16 11 9 10 5 5 9 3 10 8 5 8 6 12 12 4 3 8 9 3 1 5 352 309 306 271 235 200 207 20 21 22... 23 24 25 .. 1 .'."i !!"i 4 4 1 3 12 5 9 6 9 9 44 32 26 32 32 42 33 28 22 22 19 25 29 35 23 28 30 35 11 14 12 12 14 16 17 17 10 13 14 27 15 12 19 12 8 17 11 18 11 18 8 18 3 2 4 ... 7 6 5 9 4 8 6 9 3 8 6 4 3 195 175 154 154 153 206 iThis includes all those having one year and under. 187 TABLE XCV. Concluded. Years of service ill *"s i .> ** c !*J **l S*| > 2| s> 100 - $699 Inclusive , _ ''' = I j ' 1-| i a? 8*1 r 7 '! m a*3 w 2*1 1* *1 Totals 26 2 3 7 .1.8 12 19 18 17 13 13 11 15 9 9 5 9 8 5 3 4 5 2 116 93 28 29 30 31 32... 33 34... 35 ' i i 2 " 1 ... 5 2 3 12 14 17 3 12 1 7 5 8 12 17 10 7 6 5 g 10 14 12 9 7 9 5 g 6 14 8 5 s 4 8 7 7 3 11 2 4 2 1 4 3 5 6 4 3 2 2 10 4 4 11 8 8 5 5 3 "Y 3 2 ' i ..... 4 2 3 3 1 1 '4' 2 2 4 03 79 87 50 59 38 40 45 36... a? 38 39 1 1 3 3 2 1 7 ..... 7 3 4 3 2 5 4 2 1 2 2 2 2 4 1 1 1 2 2 1 2 2 1 i i 28 23 17 11 40 41 42 1 .. . "'i' i 3 4 1 2 7 3 1 3 2 2 2 2 1 1 1 i i 2 24 11 9 43 i 1 1 1 4 44 1 2 2 1 6 45 46 ' i 1 1 1 1 3 2 47 i 1 1 1 4 48 1 1 2 49.. 50 . . . i 2 51 52 i 1 2 53.. 54 55 1 1 Totals.. 91 1,258 3,563 6,785 3,236 2,102 1,230 912 561 753 239 229 126 21, 085 TABLE XCVI. (Illinois State Teachers, male and female) . SHOWING THE NUMBER AND SALARIES OF TEACHERS IN ACTIVE SERVICE ON JANUARY 1, 1916, WHO HAVE 25 YEARS OR MORE SERVICE TO THEIR CREDIT, AND ARE 50 YEARS. OR MORE, OF AGE ON THAT DATE; CLASSIFIED BY AGES AS OF SAME DATE (BASIS OF 21,085 TEACHERS). g e 5T 5T ' > sr sr E 5T ~i ST Age gg'l s1 gs-g a| l'i 1 s|1 SSo SS'S l H| '3 u&1 srg *1 ii| gs-g sal 8S'| sal *"Si g-a fe g Totals 50 51 1 2 3 11 7 17 6 12 10 10 10 9 6 6 1 4 7 3 3 7 5 82 58 52 53 1 3 2 11 6 5 13 7 7 6 7 3 7 2 2 5 5 3 2 4 3 53 51 54 55 i 3 1 6 14 4 7 9 9 7 8 4 3 3 3 5 7 3 1 3 5 4 4 51 63 56 57 2 " i" 13 11 7 9 14 9 14 5 6 5 2 7 5 6 3 1 3 4 i 69 59 58 2 7 3 11 4 5 6 5 1 2 46 59 60 2 1 4 1 5 3 3 9 2 2 3 3 1 1 3 2 1 2 1 27 22 61 62 63 64 " i 1 1 i 1 2 1 ' ' 4 ' 3 2 4 4 3 2 4 3 3 1 1 1 3 1 1 1 3 1 1 3 2 3 1 1 1 "2" 3 20 23 18 11 65 66 2 1 1 1 2 2 2 2 1 1 " i " 1 i 10 10 67 2 1 1 7 68 69 " i" 1 2 2 Y 1 1 1 1 9 2 70 1 1 1 1 4 71 72 . 1 1 73 i 1 74. .. 1 1 75 76... 77.. 1 1 Totals.. 3 7 31 104 99 117 86 64 43 63 23 39 20 699 13 PL 188 w 3 31 ps iH Cn * ^ lO CO ^H OO CO ^00? .-^ T-HIOOC OOCOCOOS!M >OOOC ^ ^ ^H i^ ^_, rC co ^r c oosoooco oo^fioc C^Tco^cO ^HH' C<| co -^c , ^ ^H ^H I ^CO-^lOCO .J -TJOOCO >OSOS . .^Hi-Hi IT-H t& -T-Hi Ir-t ^j -OSOSOSOS gcOOSOSOS ^< en co co co co ; ^ .cococo ; 1*1111 i : : 1^^^^ : ^I^SSS : 515J5 i j^Uco fiJjJs 22222 Al . OS OS OS OS COCOCOCOCO OSCOCOCO 191 TABLE C. (Chicago Public School Employees, male and female). SHOWING BY AGES AS OF JANUARY 1, 1916, THE NUMBER IN ACTIVE SERVICE ON THAT DATE. 4 1 a | 1 3 I 1 3 fa 4 1 ! 3 | fa 20 .... 11... 22 .... 2T . 24... 25 ... 26... 27 3 4 6 5 7 i i 2 30. ... 31... 32.... 33.... 34.... 35.... 36.... 37 12 6 6 10 12 9 7 5 2 1 4 "2' 2 1 40 ... 41.... 42.... 43 .... 44.... 45.... 46.... 47 10 5 9 5 9 12 9 ft 'i i i i i i 50... 51.... 52.... 53.... 54.... 55.... 56... 57 ... 9 11 8 11 9 8 14 18 3 2 2 "2' 60... 61.... 62.... 63.... 64.... 65.... 66.... 67.... 4 4 5 8 5 4 3 3 '2' i 70... 71.. . 72.. 73.. . 74.. . 4 2 "2' 1 28.... 29.... 3 11 "2" 38. ... 39.... 4 9 .... 48.... 49.... 6 12 2 2 58.... 59.... 6 13 '3 68.... 69.... 6 1 Totals. 361 46 TABLE CI. (Chicago Public School Employees, male and female). SHOWING BY AGES AS OF JANUARY 1, 1916, THE NUMBER ON PENSION ON THAT DATE. . Age Service Pensioners Disability Pensioners Age Service Pensioners Disability Pensioners Male Female Male Female Male Female Male Female 41 18 19 1 1 70 1 2 1 2 2 1 2 '"i"' " i "" i 1 71 72 '"i"' '"i"" ....... 73 74 50 51 >2 1 75 76 i ' ' " i 3 .. 1 77 78... 79 80... 81 82 83 4 55. 1 56 >7.. >8 59 50 51 52.... 53 54 55 J6 M 58 59 1 1 '"i"' i 1 1 '"{'" ....... i i i Totals 25 6 1 3 iz; 1 ^ i! m && T O CO CO W O O CO ^" >O w - < < O Number of pensioners l|'| D -***- Excess of receipts over disbursements 3 ' I ill" iirsements during p iQther disbursements i i'S Q To pensioners Is; g '"o .2 a, 1 SB 1 5 a g "2 ~H ***! OO O 1 eceipts during peri j c^ o ic o oo aeing included in d a I n 30 1 i 40 7 r )0 2 1 fiO 1 70 21 22 31 T> 4 2 i 41 V> 2 4 51 V> 2 1 '"i" 01 fV> 2 1 71.... 72 i >3 S3 1 2 43 3 53 1 03 73 .... i ?4 34 2 44 1 54 3 04 j 74 25 >6 '"2" 1 35 36 2 2 " i 45 40 6 2 1 55 56 i 65 00 75.... ^7 37 4 i 47 1 1 57 2 07 1 8 g 2 38 4 18 1 58 2 G8 ?9 3 30 4 49 1 1 50 1 09 Totals. 88 16 TABLE CV (Chicago Public Library Employees). SHOWING BY AGES AS OF JANUARY 1, 1916 THE NUMBER IN ACTIVE SERVICE ON THAT DATE. * 3 m 1 1 to a 1 .2 4 Jt OS P 4 -1 1 I | 4 17 9 30 3 8 40 2 3 50 j i 00 3 70 18 14 31 5 41 5 51 3 2 01 1 71. . 19 19 20 7 l 7 32 33 3 2 5 3 42 43 3 1 3 3 52 53 3 2 1 62 03 72 .... 73 ... 1 21 6 22 2 12 11 34 35 ...... 1 7 44 45 3 3 2 4 54 55 1 3 4 2 64 05 2 74.... 75 . 1 23 11 30 1 2 40 2 1 56 1 00 24 4 5 37 2 4 47 1 1 57 1 07 1 25 4 26 3 8 8 38 39 1 2 3 1 48 49 3 1 1 58 59 1 1 2 68 09 1 1 27 2 4 28 2 5 29 7 Totals 134 156 194 o o CJ pQ 3-1 iQt d rse at ts or be -H (M c5 CO * ifi l~- CO t 10 cq -O'*HO^-HOCO''t 00 00 O TH" ^H f the 437 teachers, the remainder failed to answer. TABLE CVTII (Peoria Teachers). FINANCIAL STATEMENT REGARDING THE PENSION FUND SHOWING FOR VARIOUS PERIODS BE- GINNING SEPTEMBER 25, 1911, THE TOTAL ASSETS AT THE BEGINNING OF EACH PERIOD, THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS DURING THE PERIOD AND THE EX- CESS OF RECEIPTS OVER DISBURSEMENTS; ALSO THE NUMBER OF PENSIONERS. Period Number of pen- sioners on roll at end of period Total assets at beginning of period Receipts during period Disbursements during period Excess of receipts over dis- bursements From teachers 'Other sources Total To pension- ers 'Other than to pension- ers Total Sept. 25, 1911 1 Aug. 1, 1912... Aug. 1, 1912- Aug. 1, 1913... Aug. 1, 1913- Aug. 1, 1914... Aug. 1, 1914- Aug. 1, 1915... Aug. 1, 1915- Feb. 4, 1916... Feb. 4, 1916... $5,429 50 5, 718 00 7, 715 42 6,317 00 2, 708 00 $ 88 25 225 17 2,397 12 4,509 09 443 47 $ 5,517 75 5,943 17 10, 112 54 10, 826 09 3, 151 47 $5,517 75 5,711 36 9,266 15 9, 903 31 2, 797 72 3 3 3 $ 5, 517 75 11,229 11 20,495 26 30, 398 57 33, 196 29 $440 00 600 00 240 00 $231 81 406 39 322 78 113 75 $231 81 846 39 922 78 353 75 'The securities are carried at face value the premiums and discounts being included in disbursements and re- ceipts respectively. TABLE CIX (Peoria Firemen). FINANCIAL STATEMENT REGARDING THE PENSION FUND SHOWING FOR VARIOUS PERIODS BE- GINNING JANUARY 1, 1904 THE TOTAL ASSETS AT THE BEGINNING OF EACH PERIOD, THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS DURING THE PERIOD AND THE EXCESS OF RECEIPTS OVER DISBURSEMENTS; ALSO THE NUMBER OF PENSIONERS. Period Number of pen- sioners on roll at end of period Total assets at beginning of period Receipts during period Disbursements during period Excess of receipts over dis- bursements From firemen 'Other sources Total To pensioners 2 0ther than to pensioners Total Jan. 1, 1904- Feb.5, 1905... Feb. 5, 1905- Jan. 6, 1909. . . 6 $28, 563 08 34,672 42 $581 95 $ 9, 227 52 $ 9, 809 47 $2,314 00 $1,386 13 $3,700 13 $ 6, 109 34 '27, 128 50 5,263 51 5,052 18 '11,225 80 5,837 70 6, 048 00 Jan. 6, 1909- Jan. 1, 1910... Jan. 1, 1910- Jan. 1, 1911... Jan. 1, 1911- Jan. 1, 1913... Jan. 1, 1913- Jan. 1, 1914. . . Jan. 1, 1914- Jan. 1, 1915. . . Jan. 1, 1915... 14 15 22 21 61, 798 92 67,062 43 72 114 61 83, 340 41 89 178, 11 95,226 11 631 05 685 20 789 50 814 95 10, 073 54 11,089 19 10, 704 59 11,774 39 5, 155 00 6,352 50 286 08 369 71 5,441 08 6, 722 21 13, 144 23 13, 936 63 13,933 73 14, 751 58 7, 997 50 8, 370 00 98 53 333 58 8, 096 03 8, 703 58 'This is computed from amounts on hand at beginning and end of periods, as receipts and disbursements for this period were not available. 2 The bonds are carried at face value, the premiums and discounts being included in disbursements and receipts respectively. 196 TABLE OX (Springfield Policemen). FINANCIAL STATEMENT REGARDING THE PENSION FUND SHOWING BY YEARS BEGINNING WITH THE YEAR 1912. THE TOTAL ASSETS JANUARY FIRST, THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS DURING THE YEAR AND THE EXCESS OF RECEIPTS OVER DISBURSE- MENTS; ALSO THE NUMBER OF PENSIONERS. Period Number of pen- sioners on roll at end of period Total assets at beginning of period Receipts during period Disbursements during period Excess of receipts over dis- bursements From police- men iQther sources Total To pensioners K)ther than to pensioners Total Dec. 31, 1911- Dec. 31, 1912 . Dec. 31, 1912- Dec.31, 1913.. Dec. 31, 1913- Dec. 31, 1914.. Dec. 31, 1914- Dec. 31, 1915.. Jan. 1, 1916 1 2 2 $7, 959 93 12,884 11 19,849 77 26, 259 93 $8, 332 43 $8,332 43 5, 149 18 7,474 31 7,335 16 $372 50 225 00 258 65 225 00 $372 50 225 00 508 65 925 00 $7, 959 93 4,924 18 6,965 66 6,410 16 $250 00 700 00 $670 59 6, 664 57 !The securities are carried at face value the premiums and discounts being included in disbursements and re- ceipts respectively. TABLE OXI (Rockford Firemen). FINANCIAL STATEMENT REGARDING THE PENSION FUND SHOWING BY YEARS BEGINNING WITH THE YEAR 1911, THE TOTAL ASSETS JANUARY FIRST, THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS DURING THE YEAR AND THE EXCESS OF RECEIPTS OVER DISBURSE- MENTS, ALSO THE NUMBER OF PENSIONERS. Period Number of pen- sioners on roll at end of period Total assets at beginning of period Receipts during Period Disbursements during period Excess of receipts over dis- bursements From firemen Other sources Total To pensioners Other than to pensioners Total Apr. 10, 1911- Dec 31 1911. $ 4, 862 33 4, 862 33 7,101 19 9, 990 34 12,949 11 16,048 23 Dec. 31, 1911- Dec. 31, 1912.. Dec. 31, 1912- Dec. 31, 1913.. Dec. 31, 1913- Dec. 31, 1914.. Dec. 31, 1914- Dec.31, 1915.. Jan. 1, 1916 $621 60 673 92 714 47 787 73 $1,617 26 2,215 23 2,244 30 2,401 39 $2,238 86 2,889 15 2,958 77 3, 189 12 $2, 238 86 2,889 15 2, 958 77 3,099 12 1 1 $90 00 $90 00 TABLE CXn (Rockford Policemen). FINANCIAL STATEMENT REGARDING THE PENSION FUND SHOWING FOR VARIOUS PERIODS BEGINNING IN 1910 THE AMOUNT OF RECEIPTS AND DISBURSEMENTS DURING THE PERIOD, AND THE NUMBER OF PENSIONERS AT THE END OF THE PERIOD. Period Total assets at beginning of period Receipts during period Disbursements during period Number of pen- sioners on roll at end ofperiod From police- men iQther sources Total To pensioners iQther disburse- ments Total Aug. 5, 1910-Dec. 31, 1910 Dec. 31, 1910-Dec. 31, 1911 Dec. 31, 1911-Dec. 31, 1912 Dec. 31, 1912-Dec. 31, 1913 Dec. 31, 1913-Dec. 31, 1914 Dec. 31, 1914-Dec. 31, 1915 $125 28 300 88 306 67 321 93 320 21 326 53 $ 1,502 42 2, 533 54 1, 066 87 2, 672 05 623 16 10, 153 28 $ 1,627 70 2, 834 42 1, 373 54 2,993 98 943 37 10,479 81 $ 75 00 450 00 450 00 819 95 1, 498 92 5,436 32 $ 16 50 1,021 50 '3, 566 '66 3, 700 00 5,546 39 $ 91 50 1, 471 50 450 00 4,319 95 5, 198 92 10, 982 71 1 1 1 3 3 6 iValues of securities were not given making impossible the determination of total assets. 197 TABLE CXIII (Decatur Firemen). FINANCIAL STATEMENT REGARDING THE PENSION FUND-SHOWING BY YEARS BEGINNING MAY. 1910, THE TOTAL ASSETS MAY FIRST, THE AMOUNTS OF RECEIPTS AND DISBURSE- MENTS DURING THE YEAR AND THE EXCESS OF RECEIPTS OVER DISBURSEMENTS. Period Number of pen- sioners on roll at end of period Total assets at beginning of period Receipts during period Disbursements during period Excess of receipts over disburse- ments From firemen i Other sources Total To pensioners iQther than to pensioners Total May 1, 1910- May 1,1911... May 1, 1911- May 1,1912... May 1, 1912- May 1,1913... May 1, 1913- May 1, 1914... May 1, 1914- May 1, 1915... May 1, 1915- May 1,1916... May 1, 1916 $ 2, 289 26 3, 887 44 5,908 85 7,838 98 9, 850 26 11,398 32 13, 465 37 $ 325 66 306 11 301 99 331 54 356 74 334 66 $ 1,750 87 2,282 01 2,083 44 2, 182 13 1, 773 84 2,481 39 $ 2, 076 53 2,588 12 2, 385 43 2,513 67 2, 130 58 2,816 05 $ 442 25 472 50 441 00 502 39 582 52 749 00 $ 36 10 94 21 14 30 $ 478.35 566.71 455.30 502 39 582 52 749 00 $1,598 18 2,021 41 1,930 13 2.011 28 1,548 06 2,067 05 3 J The securities are carried at face value the premiums and discounts being included in disbursements and receipts respectively. 2 N umber of pensioners before May 1, 1916 not furnished us. TABLE CXIV (Aurora Firemen). FINANCIAL STATEMENT REGARDING THE PENSION FUND SHOWING BY YEARS BEGINNING WITH THE YEAR 1907, THE TOTAL ASSETS JANUARY FIRST, THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS DURING .THE YEAR AND THE EXCESS OF RECEIPTS OVER DISBURSE- MENTS. Period Number of pen- sioners on roll at end of period Total assets at beginning of period Receipts during period Disbursements during period Excess of receipts over disburse- ments From firemen 'Other sources Total To pensioners Other than to pensioners Total Dec. 31, 1906- Dec.31, 1907.. Dec. 31, 1907- Dec.31, 1908.. Dec. 31, 1908- Dec.31, 1909.. Dec. 31, 1909- Dec.31, 1910.. Dec. 31, 1910- Dec. 31 1911 $ 25 00 10 00 656 28 1,355 21 1,380 82 110 00 3, 668 54 2, 178 67 509 06 $ 25 00 270 07 909 86 1, 609 92 1, 684 93 476 19 3,950 26 2,462 96 699 87 $ 25 00 270 07 907 50 1, 599 29 1,680 13 465 19 3, 880 80 2,418 11 695 40 $ 25 00 295 07 1, 202 57 2,801 86 4,481 99 4,947 18 8,827 98 11,246 09 11,941 49 $ 260 07 253 58 254 71 304 11 366 19 281 72 284 29 190 81 $ 2 36 10 63 4 80 11 00 69 46 44 85 4 47 $ 2 36 10 63 4 80 11 00 69 46 44 85 4 47 Dec. 31, 1911- Dec. 31, 1912.. Dec. 31, 1912- Dec. 31,1913.. Dec. 31, 1913- Dec. 31, 1914.. Dec. 31, 1914- Dec. 31, 1915.. Jan. 1, 1916 'The securities are carried at face value the premiums and discounts being included in disbursements and receipts respectively. 198 TABLE CXV (Evanston Firemen). FINANCIAL STATEMENT REGARDING THE PENSION FUND-SHOWING FOR VARIOUS PERIODS BEGINNING WITH DECEMBER 28, 1912, THE TOTAL ASSETS AT THE BEGINNING OF EACH PERIOD, THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS DURING THE PERIOD AND THE EXCESS OF RECEIPTS OVER DISBURSEMENTS; ALSO THE NUMBER OF PENSIONERS. Period Number of pen- sioners on roll at end of period Total assets at beginning of period Receipts during period Disbursements during period Excess of receipts over disburse- ments From firemen 1 Other sources Total To pensioners iQther than to pensioners Total Dec. 31, 1912- Dec. 31, 1913.. Dec. 31, 1913- March 31, 1915 Mar. 31, 1915- Dec.31,1915.. Jan 1 1916 1 $ 254 62 3, 697 50 15, 900 39 19,845 30 $ 454.20 449 99 308 55 $ 2, 992 80 11, 752 90 4,011 36 $ 3,447 00 12,202 89 4,319 91 $4 12 $ 4 12 $3, 442 88 12, 202 89 3,944 91 $375 00 375 00 !TKe bonds are carried at face value, the premiums and discounts being included in disbursements and receipts respectively. TABLE CXVI (Evanston Policemen). FINANCIAL STATEMENT REGARDING THE PENSION FUND SHOWING FOR VARIOUS PERIODS BEGINNING APRIL 30, 1911, THE TOTAL ASSETS AT THE BEGINNING OF EACH PERIOD, THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS DURING THE PERIOD AND THE EXCESS OF RECEIPTS OVER DISBURSEMENTS; ALSO THE NUMBER OF PENSIONERS. Number of pen - sioners Total . assets at Receipts during period Disbursements during period Excess of receipts Period on roll at end of period beginning of period From police- men Other sources Total To pensioners Other than to pensioners Total over disburse- ments April 30, 1911- April30, 1912.. $ 96 73 $ 374 85 i 471 58 $ 105 85 $ 105 85 $ 365 73 April 30, 1912- April30, 1913.. S 365' 73 289 41 6,469 18 6, 758 59 173 95 173 95 6, 584 64 April 30, 1913- April 30, 1914. . 3 6, 950 37 299 80 5, 245 39 5,545 19 1,029 60 64 88 1,094 48 4,450 71 April 30, 1914- Dec. 31, 1914 . 3 11,401 08 222 25 6, 907 90 7, 130 15 950 40 49 60 1,000 00 6, 130 15 Dec. 31, 1914- Dec. 31, 1915.. 5 17,531 23 338 56 3, 707 65 4, 046 21 2,251 65 193 28 2, 444 93 1,601 2* Jan. 1, 1916 5 19,132 51 TABLE CXVII (Moline and Champaign Policemen). SHOWING DISBURSEMENTS FOR THE YEAR 1915 AND THE NUMBER OF PENSIONERS ON DECEMBER 31, OF THAT YEAR, City Total assets at beginning of period Receipts during period Disbursements during period Excess of receipts over disburse- ments Number of pen- sioners on roll at end cf period From police- men Other sources Total To pensioners Other disburse- ments Total i i i ' 1 $1, 680 00 420 00 i $1, 680 00 420 00 i ! 4 1 Champaign Wo pension funds accumulated. Pensions are paid from city pay roll. 199 Hit 1=1 S 3 : 8 II QC S3 CO ill I: S ': rf iO O 5t < '' \ 2 2 5s os CO CO II II 22 COCO II II 438 II II! 1= ^ 5- I I |1 200 CHAPTER VII. STATISTICS SHOWING EXTENT OF PRESENT AND POS- SIBLE FUTURE PENSION LEGISLATION FOR PUBLIC SERVICE EMPLOYEES IN ILLINOIS. In this chapter are given tables tending to show the extent of present and possible future pension legislation for public service employees in this State. Table CXIX was arranged from figures furnished by the Legisla- tive Reference Bureau of Illinois. Mr. Bell, Secretary of this Bureau, to whom the collection of these figures was entrusted, reported that data regarding the number of public service employees, State and local, in this State, not under civil service rules had never been collected in the past; that he was frustrated in getting it in detail for this report, because of the fact that many of those able to furnish the information regarding their own local community failed to reply to the question- naires he sent out, and that he was, therefore, compelled to make an estimate of the number of such employees, based on the replies he received. The other tables of this chapter were prepared by our own employ- ees from the records of the State Civil Service Commission. It will be noted that the total number of employees as given in Tables CXXI and CXXIII does not agree with that given in Table CXIX. The reason for this is that certain part-time employees are listed in Table CXIX, but not in Tables CXXI and CXXIII. TABLE CXIX (Public Service Employees, Illinois). 1 SHOWING NUMBER OF PUBLIC SERVICE EMPLOYEES IN ILLINOIS, STATE AND LOCAL, UNDER CIVIL SERVICE AND NOT UNDER CIVIL SERVICE, SUB-CLASSIFIED INTO THOSE COVERED BY PENSION LEGISLATION AND THOSE NOT SO COVERED. (Federal Employees not included) . Number under civil service Number not under civil service including elective officials and teachers Covered by pension legis- lation Not covered by pension legislation Covered by pension legis- lation Not covered by pension legislation 19, 631 ' 'l24" 187 62 x "'S,' 509'" 912 1,219 659 '"i,'248"' 100 259 8,269 722 1,011 State of Illinois West Park Commission '"706"' 2,082 Lincoln Park Commission Sanitary District Evanston > Springfield 40 88 171 40 18 26 76 58 25 2 98 437 Joliet Rockford .-. 90 cities outside Chicago, including above 101 counties outside of Cook County and teachers outside of Chicago and Peoria Totals 26, 000 "'4,' 320'" 3,700 20, 644 9,906 34, 706 12,535 !See Text above. 2 Police and Fire. TABLE CXX (Public Service Employees, Illinois). OF STATE DEPARTMENTS SHOWING NUMBER OF EMPLOYEES UNDER CIVIL SERVICE IN EACH ON JANUARY 1. 1916. Department Number Department Number Accountants, Examiners of Public; University of Illinois; Urbana Adjutant General; Springfield Administration, Board of; Springfield Apiaries, Inspector of; Putnam Appellate Court, First District, Chicago Appellate Court, Second District; Ottawa ... Appellate Court, Third District; Springfield. . Appellate Court, Fourth District; Mt. Vernon Arbitration, Board of; Springfield Architects, Examiners of; Chicago Architect, State; Chicago Attorney General; Springfield and Chicago Auditor of Public Accts; Springfield and Chicago. Barbers' Examiners; Chicago Biological Laboratory; Springfield Canal Commission, Illinois and Michigan; Lock- port Charities Commission; Springfield Civil Service Commission; Springfield and Chicago Deportation Department, State; Chicago Dental Examiners; Springfield , Eastern Normal School; Charleston Employment Agencies; Licensed; Chicago Entomologist, State; Urbana Equalization, Board of; Springfield Executive Department; Springfield Factory Inspection; Chicago Farmers' Institute; Springfield Fire Marshal; Springfield and Chicago Food Commissioner; Chicago Fort Massac, Metropolis Free Employment Office? Chicago Peoria Rockford. . : . . . Rock Island Springfield East St. Louis Game and Fish Conservation Commission, Spring field Geological Survey; Urbana Grain Inspection; Chicago Grain Inspection; East St. Louis 1 1 93 5 103 11 Health, Board of; Springfield and Chicago lighway Commission; Springfield listorical Library; Springfield ndustrial Board, Chicago nheritance Tax Department; Springfield; Chicago nsurance Department; Springfield jabor Statistics, Bureau of; Springfield laboratory of Natural History; Urbana jand Commission of Kaskaskia, Kaskaskia . . library Extension Commission; Springfield. . Library, State; Springfield jieutenant Governor; Springfield Lincoln Homestead; Springfield Lincoln Monument; Springfield Live Stock Commissi9n; Springfield Mine Rescue Commission; Springfield, (Head Office) Mine Rescue Stations; Benton and La Salle Mining Board; Springfield Natural History Museum; Springfield Normal University; Normal Northern Normal School; DeKalb Nurses, Examiners of Registered; Springfield. . . Pardons, Board of; Springfield Park Commission; Ottawa Pharmacy, Board of; Springfield Printing, Superintendent of; Springfield Prison industries, Board of; Springfield Public Instruction, Superintendent of; Spring- field Rivers and Lakes Commission; Chicago Secretary of State; Springfield Secretary of State; Chauffeurs' Examiners Chicago Southern Normal School; Carbondale Stallion Registration, Board of; Springfield. Supreme Court; Springfield Treasurer, State; Springfield University of Illinois; Urbana Utilities Commission, Public; Springfield Western Normal School; Macomb Total... 23 10 349 58 13 1,196 202 TABLE CXXI (Public Service Employees, Illinois). SHOWING THE NUMBER AND SALARIES OF CIVIL SERVICE EMPLOYEES OF TABLE CXX, CLAS. SIFIED BY YEARS OF SERVICE. Years of service a S3 00-8399 [nclusive S. E Rl 00-1599 [nclusive o> H il |l Si O C3 2 || s| > tSi ^ > 5i'K -o - 1 f'i 7: ' 05 35 I S <*'< "*1 f T (j - i Total* service ~8 8 ol sj i "3 S || 31 ,~ 5? c o fc o % H c <=> ^ c XQ C 3 , - C s - 3 3 ,7. 1 1 T T we 8 - 1 2 13 15 671 448 82 330 24 83 26 46 13 44 9 25 2 8 '9' 9 2 8 11 "' 2 9 i '4 861 1 041 2 3 4 5 6... 7 1 7 3 '2 1 66 58 18 18 8 3 298 178 68 47 35 25 81 57 33 19 16 6 37 24 2!) 30 18 15 37 29 17 19 9 16 25 9 8 18 13 13 10 10 3 5 6 4 4 3 3 3 3 3 4 6 5 3 5 6 2 2 2 1 3 1 3 3 4 i 19 13 4 6 4 3 2 1 2 5 4 1 1 1 "3 3 5.97 397 197 176 128 101 8... 1 6 19 7 16 12 13 3 4 2 1 4 3 2 93 9 1 20 5 8 11 10 3 3 4 1 3 ?, 3 74 10 11 .... .... 1 22 11 9 ?, 10 4 16 4 10 11 3 1 3 ft 2 ?, 1 ?, 2 80 45 12 1 3 6 :> 6 5 3 1 1 1 32 13 7 9 fi 4 9 1 1 1 3 1 29 14 15 16 1 ...... 5 4 3 5 "V 10 3 2 5 2 4 6 3 2 1 3 2 2 2 1 3 i i 4 1 "2 1 .... 45 19 20 17 2 4 3 3 1 2 2 17 18 1 i 1 3 ?, 1 1 1 3 15 19 1 i 4 2 4 2 2 1 1 3 1 22 20 1 3 9 8 21 2 2 2 1 i 1 11 22 1 1 1 1 5 23 2 2 1 4 11 24 1 1 j 4 25 i 1 3 26 ? 1 i 4 27 28'" .... 1 .. .^. 1 i 1 1 4 3 29 1 30 1 i ? 1 5 31 1 1 2 32 33 1 .... i 1 2 34 1 i ?, 4 35 1 1 36 37. '"2 1 1 2 2 38 1 1 2 39 40 41 1 1 Totals . . . 8 45 1,305 1,163 369 303 264 200 76 44 61 46 21 105 28 22 4,055 14 PL APPENDIX A. TABULAR DIGEST OF PENSION LAWS ENACTED IN ILLINOIS FROM 1852 TO 1916. INDEX TO APPENDIX A. Beneficiaries. Pages. Firemen 206 to 211 inclusive. Policemen 212 to 219 inclusive. Park policemen 220 and 221. County employees 222 and 223. Fire insurance patrolmen 224 and 225. Municipal employees 226 and 227. Public school employees 228 and 229. Employees of public libraries 230 and 231. Employees of houses of correction 232 and 233. Public school teachers ..234 to 239 inclusive. 206 FIRE Reference Sources of revenue. to legisla- tion. Beneficiaries. Management. Employees. Other sources. 1874. Members of po- Corporate authorities shall 1. Fines for vio- R. S. 1874, lice and fire de- make appropriations from ating department Ch. 24, partments of any i fund to be set apart in city rules. 221-226. city whose authori- ;reasury. ties provide by or- dinance for the fund. Amended Adds: L. 1875, 2. Fines for vio- pp. 42, 43. ating fire ordi- nances. 3. Proceeds of sales of unclaimed stolen property. Revised Members of po- "Trustees of the Police and Assessment, if Adds: L. 1877, lice and fire de- Firemen's Relief Fund", to evied, not to 4. One-fourth of p. 62. partments of any city or village. consist of mayor, heads of police and fire departments, exceed $5 a year. taxes and license ! ees of fire insur-; . and chairmen of police and ance companies Ire committees of city coun- cil or village trustees, with not incorporated under laws of Illi- jower exclusively to manage nois. und and finally to determine 5. Interest on applications for relief. fund. Amended L. 1879, p. 72. Adds to board, the comp- roller, if any, or city clerk, and treasurer. Adds: Persons entitled to benefits may be assessed, though no longer in service.' Amended (Perhaps limits L m i883, act to cities, etc., portion of taxes p. 59. of 10,000.) and license fees to one-half. Adds: 6. One-fourth of tax on dogs in cit- ies, etc., of 10,000. Adds: L" 1901, p. 122. 7. Two per cent of saloon licenses- in cities of 10,000 if authorized by popular vote. L. 1887. Members of paid "Board of Trustees of th* Assessment 1. One per cent p. 117. fire departments ir Firemen's Pension Fund", to on salaries no1 of revenues from cities, villages and consist in cities of city treas- to exceed 1 licenses. incorporated towns urer, clerk, attorney, fire per cent or Rewards for ex- of o\er 50,000. chief, and comptroller, anc $20 a year. traordinary servj in towns of the president oj ices, unless coral board of trustees, clerk, at- petitive or pen torney, and fire chief. Board mitted to be re- to have exclusive control o1 tained. fund, and conclusively to de- termine applications for pen- sions. 207 MEN. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. Such Amount H.S 1. Disability incurred in 2. Such to the corporate authorities seems discharge of duty. 2. Death in, or because of amount as to ;he corporate ust and reason- injury received in, active dis- authorities able. charge of duty. seems just for relief of sur- viving mem- bers of family. Where there is a chartered benevo- ent society of po- icemen or firemen, city may appro- priate to it its equitable share of the fund. Not over $600 a 2. Substitutes "being killed" 2 and 3. Not year. for "death" In discharge of over $&00 a duty. year to widow, Adds: while unmar- 3. Death in service after 1( ried, or to years' service. children under 3. Substitutes: Death af 16. ter 10 years' service, assess ments not in arrears. 1, 2 and 3. Half salarv, nol to exceed $1,000 a year. Board may award pensions in following cases: 1. Retirement for mental or physical disability contractec in service. 2. Retirement for mental or physical disability after 10 years' continuous service. 3. Retirement, aged 50, after 25 years' consecutive service disabled for active service. 4. Being killed in perform 1, 2, 3, 4, 5 and 6. Board may award $30 a month to wid- ow, while un- married, and $6 a month for each child under 16, the total not to exceed hall Interest on fund to accumulate un- til fund is $200,000. $200,000 ; when ac- cumulated, to form permanent fund or which only the in- come shall be paid out. Pensions payable pro rata if fund is insufficient. ance of duty. 5. Death from injury re ceived or disease contractec salary or $1,000 a year. in performance of duty. 8. Death after 10 years continuous service from cause contracted in service. 208 FIREMEN Reference to legisla- tion. Beneficiaries. Manag-ement. Sources of revenue. Employees. Other sources. Amended L. 1889, p. 80. Added to L. 1901, p. 97. Amended L. 1905, p. 100. Amended L. 1907, p. 186. p. 126. Amending L. 1901, p. 97. L. 1909, p. 128, 1. Omits lim- itation to $20. Adds: 2. Fines and pen- alties imposed on firemen. Adds : 3. One -fourth of municipal tax of not over 2 per cent of receipts of com- panies not incorpo- rated in Illinois, from fire insurance effected within the city, town or vil- lage. 3. Increases share of tax to one-half. Adds: 4. Fines for vio- lating fire ordi- nances enforced by fire department. 3. Strikes out half share of tax in cities of over 50,000 and substi- tutes half share of tax in cities, etc., of lest than 50,000. Extends act to cities, villages and ncorporated towns of over 5,000. Adds to board 2 active members of fire department elected by active members. Continued. 209 Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. 1, 2 and 3. Half salary. Substitutes for 1, 2, 3, 4, 5 and 6 : Board shall award If 2, 3, 4 and 5. tensions in following cases: Provides : 1. Retirement for mental or Board shall )hysical disability by reason award the of service. sums above, 2. Retirement or discharge, but omits limi- aged 50, after 22 years' serv- tation to ice, the last two continuous. $1,000 a year. 3. Being killed in perform- ance of duty. 4. Death from injury re- \ ceived in line of duty, or dis- ease contracted by reason of occupation. 5. Death (in service or re- tired) after 22 years' service. . Substitutes for 2, 3 and 4: 2. Retirement or discharge after 22 years' service, the last two continuous. 3. Being killed while in service. Increases widow's pen- sion to $35 a month; chil- dren's to $8 a month, and af- Excess accumu- lated above $200,- 000 also to be kept as a permanent fund. 4. Death from injury re- ceived in service, or diseases ter their moth- er's death to contracted by reason of occu- $15 a month. pation. Adds pen- sions of $25 a month to de- pendent father and mother, iJ fireman waa their sole sup- port. Reduces amount of fund to be ac- cumulated before income may be paid out in pen- sions. Transfers to this fund one-half of police and fire pension funds ex- isting under law of 1877 in cities of 5,000. 210 FIREMEN Reference Sources qf revenue. to legisla* lion. Beneficiaries. Management. Employees. Other sources. Amended Adds to board a retired or L. 1913, pensioned fireman elected by p. 170. retired and pensioned firemen. Added to 3. Changes pro- L. 1915, vision that one- p. 284. half tax shall be Amending L. 1909, set apart for fund, to read that all of p. 126. tax may be so set apart. Revised L. 1915, p. 292. Drops attorney from board, and adds a third active fire- man. 1. Changes 1 per cent of revenues from licenses, to 1 per cent of oc- cupation licenses, excepting public utilities. Adds: 5. Tax of three- tenths mill (not to be included in 3 per cent tax limit) may be levied on all' taxable prop- erty, during 1915, t 19i6 and 1917. 211 Concluded. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. 2 Reduces period of service to 20 years. Substitutes for 1 : Increases Omits provisions 1. Retirement rendered nec- essary by becoming disabled. Pension to cease if disability ceases. Substitutes for 3, 4 and 5: Death from any cause while widow's pen- sion to $45 a month. Excludes widow who marries fireman ibout permanent fund. Empowers board to take over existing funds for firemen's pensions. in service, or during retire- after he has ment after 20 years' service. retired with pension, and excludes their children. aia POLICE Reference Sources of revenue. to legisla- Beneficiaries. Management. tion. Employees. Other sources. 1874. Members of po- Corporate authorities shall 1. Fines for vio- R. S. 1874, Ch. 24, 221-226. lice and fire de- partments of any city whose authori- make appropriations from a fund to be set apart in city treasury. lating department rules. ties provide by or- dinance for the fund. Amended Adds: L. 1875, 2. Fines for vio- pp. 42, 43. lating fire ordi- nances. 3. Proceeds of sales of unclaimed stolen property. Revised Members of po- "Trustees of the Police and Assessment, Adds: L. 1877, lice and fire de- Firemen's Relief Fund", to if levied, nol 4. One-fourth of p. 62. partments of any city or village. consist of mayor, heads of police and fire departments, and chairmen of police and fire committees of city coun- to exceed $5 a year. taxes and license fees of fire insur- ance companies not incorporated cil or village trustees, with under laws of Illi- power exclusively to manage nois. fund and finally to determine 5. Interest on applications for relief. fund. Amended Adds to board, the comp- Adds: L. 1879, troller, if any, or city clerk, Persons entitled p. 72. and treasurer. to benefits may be assessed, though no longer in service. Amended (Perhaps limits 4. Increases pro- L. 1883, act to cities, etc., portion of taxes p. 59. of 10,000.) and license fees to one-half. Adds: 6. One-fourth of tax on dogs in cities, etc., of 10,000. Amended Adds: L. 1901, 7. Two per cent p. 122. of saloon licenses in cities of 10,000 if authorized by popular vote. 213 MEN. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. 1 Disability incurred in 2. Such ;o the corporate authorities seems discharge of duty. 2. Death in, or because of amount as to ;he corporate ust and reason- able. njury received in, active dis- charge of duty. authorities seems just for relief of sur- viving mem- - >ers of family. Where there is a chartered benevo- lent society of po- licemen or fire- men, city may ap- propriate to it its equitable share of Not over $600 a 2 ftiihttitutp* "hpiny mayor, 1 elected from and >y active firemen, 1 elected 1. Reduces maximum con ribution to fl a month. Adds: 1. Substitutes 3 >er cent of licenses to saloons and wholesale liquor dealers and 3 per rom and by pensioners. 2. One per cent to be de- cent of all other city licenses, not ducted from to exceed $25,000 a >ensions year. granted under 4. Adds sales of the act. unclaimed lost property. 5. Adds money >aid for special de- ;ail of police. 7. Adds exception of competitive awards. L. m i907* p. 199. 215 Continued. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. 1. Half salary fo rank held for yea 1. Retirement, aged 50, al ter 20 years' police service. 3. Half salary to widow while Pensions shall cease on com ic- immediately before retirement. 2. Retirement for physica disability incurred in, and i unmarried, or if none, t tion for crime, ha- bitual drunkenness, 2. Not more than half salary. consequence of, performanc of duty. Pension to ceas children unde 18, while un nonresidence in State, or disobedi- 5. Pensions pro vided for above. when disability ceases. 3. Loss of life in perform married. 4. Board ma ence to require- ments of board. ance of duty, or death from grant prope Pensions pay- injuries received in perform ance of duty. pension not ex ceeding ha] able pro rata if fund is insufficient. 4. Death in service afte salary to wid 10 years' service. ow, while un 5. Right to pension as police man, or policeman's widow o married, or, i none, to chi child under act of 1877 (L dren under 16 1877, p. 62). Pensions unde while unmai that act to cease. ried. 5. Pensions >rovided fo above. retirement after M) years' eerv ce to be con inued to wid ow, while un married, or to children under 6. service to 20 years' combined jolice and fire service. Pensions shall not be more than 5900 nor less than !600 a year (the maximum limit to apply to pensions previously granted Excludes from >ension widow who marries )oliceman after etirement, anc :heir ch.ildr.en. $300,000 when accumulated to be a permanent fund, and income then may be used to pay pensions. ' under 1). 1 Extends \ ension granted urvivors by ct of 1899 to ases where ensioner died efore act was assed or in orce. 216 POLICEMEN Reference Sources of revenue. to legisla- Beneficiaries. Management. tion. Employees. Other sources. Amended 1. Raises as- 1. Increases per- L. 1911, sessment on centage of saloon pp. 163, salaries to 1% ind liquor licenses 169. per cent, not to 4 per cent. to exceed $3 a Increases maxi- month. mum to be de- Omits 2. rived from other li- censes to $50,000. Amended Omits 6. L. 1911, p. 170. Amended L. 1913, p. 174. L. 1909, p. 133. Members of po- lice force in cit- ies, villages and incorporated towns of 20,000-50,000. "Board of Trustees of the Police Pension Fund of ," of 3 members: 2 appointed by mayor from residents of city, 1 elected from and by police- men and beneficiaries. 1. One per cent of salar- ies, but not to exceed $1 a month. Collections 1. Two per cent of liquor licenses. 2. Three - fourths of dog licenses. 3. Ten per cent of all other li- from em- censes. ployees and other sources 4. Money paid for special detail of shall not ex- policemen. ceed $2,500 in any year. The limitation 5. Ten per cent of fines for violat- ing city ordi- shall be ef- fected by re- nances. 6. Rewards to po- ducing the contribution licemen unless ex- cepted by board. from proceeds of dramshop licenses, if 7. Fines for vio- lating rules of po- lice department. necessary. 2. One per cent deducted from police pensions. Amended L. 1913, p. 173. Extends act to cit- ies of 9,000-50,000. Omits 1, in case of cities that have not adopted civil Omits 6, in case of cities that have not adopted civil service in police service in po- department. lice depart- ment. Continued. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. 1. Age requirement omitted 6. Half sal- Omits provisions as to those who shall retire ary, not more concerning $300,000 thereafter. Service as proba- than $900 nor fund. tionary policeman to count in 20-year period. Adds: less than $600 a year, to widow, or, if none, to Modifies condi- tions of forfeiture by changing con- 6. Adjudication of insanity after 10 years' service, and children under 16. viction for crime to conviction for while still in service; pension felony, and non- payable to wife or child, to cease if policeman is declared residence in state to nonresidence in sane or leaves Illinois. United States. sions for police matrons. This statute held unconstitutional n Lyons vs. Police Pension Board, 255 111., 139. 2. Pension on retirement for physical dis- ability contin- ued to widow, while unmar- ried, or chil- dren under 16. 1. Half salary for rank held for year immediately before retirement, not to exceed $600 a year. 2. Half salary, not to exceed $600 a year. 1. Retirement, aged 50, af- ter 20 years' service. 2. Retirement or suspension 'rom duty for physical dis- ability incurred in, and in consequence of, performance of duty. Pension to cease on resumption of duty. 3. Loss of life in perform- ance of duty, or death from injuries received in the per- formance of duty. 4. Death in service after 10 years' service. 1. Pension continued, pro- vided police- man has not married after retirement, to widow, or chil- dren under 16, or dependent parent, to cease as to each if he or she marries. 3 and 4. Transfers to fund under this act all police pen- sion funds and half of police and fire pension funds already existing. Pensions payable pro rata, if funds insufficient. Pen- sions shall cease on conviction for felony, habitual drunkenness, non- Half salary, not to exceed $600 a residence in State (unless climate year, to widow, or children un- is hazardous to health), or dis- der 16, or de- obedience to re- pendent par- ent, to cease quirements of board. as to each if he or she mar- ries. 218 POLICEMEN Reference Sources of revenue. to legisla- Beneficiaries. Management. tion. Employees, Other sources. . L. 1915, p. 304. Policemen in cit- es of over 200,000. "Board of Trustees of the Police Pension Fund of ....," of 5 members: 3 appointed by mayor from residents of 1. Two per cent of salar- ies. 1. a. Such a tax, during 1915, 1916 and 1917, not to exceed seven- tenths county, 1 elected from and of a mill on the >y policemen, 1 elected from dollar, as will,' and by beneficiaries. Board may take custody of fund, with other receipts, suffice to pay shall) exclusively administer t, and conclusively decide all police pensions under previous questions of fact relating to ts administration, shall em- acts, and pensions to policemen ap- )loy actuary, and maintain a pointed before 1916 reserve fund for pensions for and their survivors, policemen appointed after and maintain a Fanuary 1, 1916, certifying reserve for pen- estimates therefor to the sions for police- common council. men appointed af- ter January 1, 1916, or b. If in any year the city does not provide such a tax, an equivalent sum taken from the proceeds of li- censes on occupa- tions, excepting public utilities. 2. Money paid for special detail of policemen. 3. Fines for vio- lating rules of de- partment. , 4. Proceeds of sales of unclaimed or stolen property. 5. Interest on fund. 6. Rewards for extraordinary po- lice service, except when competitive or allowed to be * 1 1_ i ( retained. A(t<'OM LO L. 1915. v ; (Contin- pert on atloj tinn by vot- ers.) -Concluded. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. 1. Half salary for I. Retirement from police 1. Pension Transfers to rank held for year force after 20 years' service, continued to 'und under this mmediately before retirement, not including service as proba- tionary policeman and as fire- widow, while unmarried, if act, police pen- sion funds under more than $900 man. married to po- act of 1887. nor less than $600 2. Retirement for physical liceman six a year. disability incurred in, and in months before 2. Half salary, consequence of, performance retirement, or not more than of duty, and grant of pension to natural chil- f900 nor less than by board. dren under 16. }600 a year. 3. Loss of life, or death 2. Pension 6. Pensions pro- from injuries incurred in, and continued to vided above. m consequence of, performance widow, while of duty. unmarried, if 4. Death in service after 10 married before years' service. disablement, or 5. Adjudication of insanity to natural chil- after 10 years' service and dren under 16. while still in service; pen- 3. Half sal- sion payable to wife or child, ary for rank to cease if policeman is de- held for year clared sane or leaves Illi- immediately nois. before retire- 6. Right to pension under previous pension acts. ment, not more than $900 nor less than $600 a year, to widow, while unmarried, or natural chil- / dren, except wife married after police- man's retire- ment, and her children. 4. Half sal- ary for rank held immedi- ately before death, not ex- ceeding $900 a year, to widow, while unmar- ried, if married two months before death, or to natural children. 5. Half sal- iry, not exceed- ing $900 a year, to wife or nat- ural children under 16. 6. Pensions 1 provided above. i oliccincn tnarticipate. - 223 EMPLOYEES. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. Amounts 1 and 2. $50 a 1. Retirement aged 55, Pensions not to deducted with inter- month. 2. $50 a month after 20 years' service, having contributed for 20 years, or begin before July 20, 1920. est at 3 for not more than agreeing to pay the de- per cent to two years, which ficiency in three years with employees whose posi- may be extended for continued dis- 5 per cent interest, payment to be by deductions from tions are abolished. ability. pension. Contributions to be continued until July 1, 1920, by those who retire in the interim. 2. Retirement after 20 years' service, having con- tributed for 20 years, or pay- ing the deficiency within 30 days, and continued contri- bution until 55. 3. Retirement for disability after 5 years' service. 224 FIRE INSURANCE Reference to legisla- tion. Beneficiaries. Management Sources of revenue. Employees. Other sources. L. 1895, Members of paid Board of trustees to consist 1. Assessment 1. Two per cent p. 101. R. S., Ch. 24, 423- Ire insurance pa- trol provided by board of under- of the president, secretary and treasurer of the under- writers, the chairman of the not to exceed 1 per cent of salary. of the money as- sessed by the boards of under- 434. writers which es- patrol committee and the writers on fire in- tablish a pension fund, in cities, villages and in- superintendent or chief offi- cer of the patrol. Board to aave exclusive control of fund surance companies doing business in the city for ex- corporated towns of over 50,000. and conclusively to deter- mine applications for pen- sions. penses of fire pa- trol, under author- ity of act of March 28, 1874. R. S., Ch. 142. 2. Rewards for ex- ;raordinary services unless competitive or permitted to be retained. / \ 225 PATROLMEN. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. 1 and 2 Half 1 2 3, 4 and salary. mentally or physically dis- abled by reason of service. 5. Thirty dol- lars a month 2. Retirement or discharge, aged 50, after 22 years' serv- ice, the last two continuous. to widow, while unmarried, and $6 a month for 3. Being killed in perform- ance of duty. each child un- der 16, the to- 4. Death from injury re- tal not to ex- ceived in line of duty or dis- ceed Half sal- ease contracted by reason of ary. occupation. 5. Death (in service or re- tired) after 22 years' service. 226 MUNICIPAL Reference Sources of revenue. to legisla- Beneficiaries. Management. tion. Employees. Other sources. T 100"! . Board of trustees a body Not less than LI. iyuo, p. 96. es of over 100,000. corporate, consisting of the 1 per cent or The term "em- ployees" to in- mayor, comptroller and 4 members elected from and by more than 2 per cent (as board lude employees in water works and contributing employees. The )oard has power to fix con- may fix) of sal- aries of $65 a water department, ributions and pensions with- month or more. eceiving $65 a n the limits of the su-t, de- month. ermine applications for pen- sions, and suspend pensions or cause. L. 1911, Emplovees of cit- 1. Two dol- p. 158. les of over 100,000, employed under Civil Service Act Municipal Pension Fund of ," to consist of city comp- troller, city treasurer, and 3 lars a month deducted from salary or wages of 1895, or before employees elected by em- or, if employee t was passed, ex- cept temporary, probationary or 60- day employees, ;hose who partici- ployees, with power to deter- mine applications for pen- sions, and to suspend pen- sions when disability ceases. is for good cause off the pay roll, volun- tarily paid in >ate in another municipal pension fund, those who on July 1, 1911 ire over 60 anc have served less than 10 years, and aborers who do not within six months elect to jarticipate. Amended Excludes em- A sum equal to L. 1915, pp. 298, 302. ployees under 21 the amount de- ducted from salar- ies and wages to be set apart from license fees on oc- cupations other than public utili- ties, during 1916 A A A* A 4- and 1917. Added to L. 1915, pp. 262, 267. (Contin- gent on adoption by voters.) 227 EMPLOYEES. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. 1 and salary. 3. An annuity for 2 years, >e extended for lontinued disabil- ty. 2. Half 1. Retirement, aged 50, aft- er 20 years' service in water works or water department widow which may and 10 years' contribution. 2. Resignation or dismissal after 12 years' service in water works or water depart- ment, and continued contri- bution for remainder of 20- year period and until aged mino 50. 3. Retirement for disability after 5 years' contribution. 4. Death while a contribu- tor, after 3 years' contribu- tion. 1. One-fourth of salary while unmarried, or hildren 8. 4. An amount not over $300 o widow r children, or for burial xpenses. On June 29, 1916, to the Corporation Council of the City of Chicago under rendered an opin- ion that this fund was not legally in existence as the or City Council had not created it by ordinance as re- quired by act. Pur- suant to this opin- ion money in fund was distributed to contributors and fund lapsed. Mem- jers automatically became members of fund created by act of 1911. 1 and 2. $50 a 1. Retirement, aged 55, after month. 20 years' service, having con- 3. $50 a month tributed for 20 years, or agree- for not more than ing to pay the deficiency with 2 years, which 5 per cent interest in 3 years, may be extended payment to be by deductions Pepsions not to segin before July 1. 1916. for continued dis- ability. rom pension. Contributions ;o be continued until July 1, 916, by those who retire in the interim. 2. Retirement after 20 years service, having contributed for 20 years, or paying the de- ficiency within 30 days, and continued contribution until 55. 3. Retirement for disability after 5 years' service, sub- sequent to July 1, 1911. Adds: 5. Retirement, aged 65, after 10 years' service; of honorably discharged Civil War veteran who is on July 1, 1915, an em- ployee under civil service par ticipating in the fund, on agreeing to pay sum by which iis contributions fall short ol 20 years' contribution, to be deducted from pension by in- stallments of $10 a month. Gives credit, as to time, for previous service of employees who may be transferred to Chicago by consolidation oi local governments. Absence from duty other than suspension or for discharge to count as time of service. 228 PUBLIC SCHOOL Reference Sources of revenue. to legisla- Beneficiaries. Management. tion. Employees. Other sources. L 1895, Public school em- B ard c m o d of mem Deduction p.' 312. ' ployees and teach- bers of board of education, from salaries, ers in cities of over 100,000. school superintendent, and 2 representatives selected by not to exceed 1 per cent. teachers and employees. Amcnci6(l L. 1901, p. 300. Supersed- ed as to employees by L. 1903, p. 309. Pubilc school em- ployees who ac- cept act in cities of over 100,000, in- cluding only engi- neers, janitors and >ffice employees of joard of educa- Board of trustees to consist of president and secretary of board of education and 4 contributing employees elect- ed by contributing employees, with power to determine ap- lications, and compromise claims by refunding contribu- 1. Deduction from salaries of not less than $12 nor more than $48 a year. ;ion, earning over tions. M9 a month. Added to L. 1907, r> 598 Interest on pro- ceeds of city school taxes, not p. O/o. to exceed 1 per cent of taxes for year, shall be added to teachers' and to employees' pension funds. Added to L. 1913, p. 583. Adds: Board of education may an- nually appropriate and pay into fund a sum which, to- gether with the interest on school funds paid in un- der act of 1907, shall not exceed double the amount deducted for that year from em ployecs' salaries. 229 EMPLOYEES. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. All con- Half salary, not Retirement after service in tributions ;o exceed $000 a public schools of 20 years of teachei year. for women, or 25 years for or em- men; of which three-fifths has ployee will- been within the municipality ing to con- where the board of educa- tinue in tion has jurisdiction. service and not retained. Xcciciier or cm* ployee by written withdrawal is re- lieved from further payments, and loses right to ben- efits. To any employee who resigns or is dis- missed af- ter 10 years, contribu- tions, half the sums contributed. 1 and 2. Annu- ities of not more than $800 to >e fixed by board n proportion to amounts contrib- uted. 3. Such portion of the full an- nuity as board may determine, to be paid for two 1. Retirement, aged 55, after 10 years' service. 2. Retirement after 20 years' service (on 60 days' notice.) 3. Retirement for disabil- ity after 10 years' service (on one year's notice, unless waived.) 4. Death of contributor, who has never been a beneficiary. 5. Retirement under act of 4. Board may pay not more ;han one year's benefit to wid- ow, or if none, to minor chil- dren. Board may ex- empt any em- ployees from the act, when the in- terests of the fund make it necessary. Contributions of employees under act of 1895 trans- ferred to fund un- der this act. years, which may 1895. ie extended for continued dis- ability. 5. Such portion of the full annuity as board may de- termine. 230 EMPLOYEES OF Reference Sources of revenue. to legisla- Beneficiaries. Management. tion. Employees. Other sources. L. 1905, p. 309. Contributing em- ployees in public .ibraries organized under act of March 7, 1872, in cities of over 100,000, in- Board of trustees, a body corporate, to consist of the president and secretary of the board of directors of the li- brary, and 3 members elected by contributors, of 1. Not less than $6 nor more than $48 deducted from salary each year. 2. Such moneys from miscellaneous sources as directors of library deter- mine. cluding all persons in employ of li- whom 1 shall be a member of the board of directors and brary board at a 2 shall be contributors. yearly salary. Board of trustees may invest fund at its discretion, fix the amount of contributions and of pensions, within the limits of the act, determine applica- tions for pensions, suspend pensions for cause, and com- promise claims by surrender- ing contributions, and, in in- terest of fund, exempt any employees from the act. Amended L. 1907, p. 373. A Ar\aA +/\ If consolidation act goes in- AQQ60. TO L. 1915, io effect, board in Chicago pp. 262, shall consist of 2 contrib- 278. (Contin- gent on uting employees, and 3 others elected as city council may direct. adoption by voters.) 231 PUBLIC LIBRARIES. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. O:i:cr -ia:a. Half amount paid in, to employee who re- signs or is dismissed. tlPDSSH proper- er 1. Such or annuity, donate to contributed, board may deter- mine. 2. An annuity. 8. Such part of the established an- nuity as beard may determine for 2 for disabil- I. Retirement, aged 50, aft- 4. No: 2. Retirement after years' service and 5 years* to 8. Retirement for disability after 10 years' service and contribution. 4. Death in service. ity. to be- 232 EMPLOYEES OF HOUSES Reference to legisla- tion. Beneficiaries. Management. Sources of revenue. Employees. Other sources. L. 1911, p. 153. Contributing em- loyees at yearly Board of trustees, a body orporate, consisting of chair- Two per cent of wages. 1. Two per cenl of earnings of alaries of houses f correction in man of board of inspectors, uperintendent of house of louses of correc- ;ion. ities of 150,000. correction, and 3 members elected by contributing em- ployees, of whom 1 shall be . member of the board of nspection, and 2 contrib- uting employees. Board may letermine applications for >ensions and compromise claims by returning contribu- tions, and subject to the ap- >roval of a majority of the sontributors, invest in public bonds, suspend annuities for cause, and in interest of fund exempt employees from the act. Fund to be in custody of city treasurer. Revised Contributing em- Substitutes as member of 1. Increases ! L. 1915, p. 465. ployees of houses f correction in ities of 150,000 >ension board a beneficiary elected by beneficiaries, in >lace of the member of the per cent to 3 per cent. Adds: mployed under Civil Service Act, joard of inspection elected >y contributors. 2. Three per cen of fines and costs or appointed be- ore it was passed and in service for violating city ordinances imposed on persons impris July 1, 1911, ex- oned in houses o: ept temporary, correction for non probationary and payment thereof. 50-day employees, and those who on July 1, 1915, are over 50 and have served less than 1( years. Added to If consolidation act goes in* L. 1915, to effect, board in Chicago pp. 262-267. (Contin- shall consist of 5: 2 to be contributing employees, 3 to gent on adoption be elected as city council shall direct. by voters.) 233 OF CORRECTION. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. Half 1, 2 and 3. $480 1. Retirement, aged 50, aft- 1, 2 and 3 City Treasurer amount paid in, on dismissal or resigna- tion after 3 a year unless an- nuities are reduced by the board. er 20 years' service, and pay- ment of 20 years' contribu- tions, or, for service before act is in force, of a sum equal thereto. Pension not to be- $480 a year unless annu- ities are re- duced by the board, to may pay pensions pro rata, if fund insufficient to pay in full. Contribu- tors may withdraw years' serv- gin before July 1, 1918. widow, while 'rom further contri- ice. 2. Retirement for continu- ing disability after 3 years' contributions. 3. Death in service. unmarried, 01 children unti youngest chile reaches 18, or bution and partici- pation. to mother of deceased. 1. $800 a year. 2 and 3. Not over 1600 a year. 1. Omits requirement as to age. Adds: 1. Not over $600 a year to widow, while 4. Widows and children re- unmarried, ii ceiving annuities under act of married before 1911. retirement and 5 years before death, or to children, other than adopted, until the youngest reaches 16, or to mother oi deceased. 2 and 3. Not over $600 a year to widow, while unmar- ried, if mar- ried 5 years before death, or to children and mother, as ab 3ve. 4. Increased annuities not over $00. v 234 PUBLIC SCHOOL Reference Sources of revenue. to legisla- tion. Beneficiaries, Manag-ement. Employees. Other sources. L. 1895, p. 312. Public schoo teachers and -em ployees in citie of over 100,000. Board composed of mem bers of board of education school superintendent, anc 2 representatives selected bj Deduction from salaries not to excee 1 per cent. teachers and employees. Amended L. 1901, p. 300. Added to by L. 1907, r KQQ Interest on pro- ceeds of city school p. o/o. taxes, not to ex- ceed 1 per cent of axes for year, hall be added to eachers' and to mployeea' pension undi. Super- seded as to teachers by L. 1907, p. 529. Public school eachers in cities of over 100,000 who are employed here- after or become contributors with- in 6 months, and persons entitled to Board of trustees composed f the secretary of the board of education, 2 members of tie board of education lected by it, and 8 teach- rs elected by contributing ;eachers. Suits shall be in name o Yearly deduc- ions from sal- ries of teach- ers hereafter employed or who elect to contribute, ac- cording to the 1. Other pay- ments into fund ac- ording to law (see L. 1907, p. 528, sup.) pensions under acl >oard of education for use o: number of of 1895. oard of trustees. years each has taught, as fol- lows: a. Those who have taught not more than 5 years, $5. b. 5-10 years, $10. c. 10-15 years, $15. d. More than 15 years, $30. Revised Add*: L. 1909, 2. Interest on pp. 342, 384-388. und. 235 TEACHERS. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. All con- Half salary, not Retirement after service in tributions to exceed $600 a public schools of 20 years for kf tcach- year. women or 25 years for men; ler or em- of which three-fifths has been nlovoo billing to within the municipality where the board of education has krontinue jurisdiction. bmd not [retained. T63.ch6r or cm- ployee by written withdrawal is re- lieved from further payments and loses right to benefits. 1. To' teachers willing to continue and not retained, all amounts contrib- I. $400 a year. 2. [Such propor- tion of $400 a year as contributions made bear to full contributions for 25 years, (i. e. $450.) 1. Retirement after teach- ing 25 years in the public schools, three-fifths thereof in schools of the city, and con- tributing for 25 years under this act or act of 1895, with right for period of past serv- ice to pay the contributions Pensions may be reduced pro rata, if fund insufficient. Transfers to this fund teachers' pen- sion funds under act of 1895. uted. 2. To 3. Such propor- tion oi $400 a year that would have been payable under this act with 4 per cent teachers who volun- as length of serv- ice bears to 25 interest from the times pay- ments would have been made. tarily retire before more years, less $30 a year, as additional 2. Retirement for permanent disability after teaching 15 than 15 years, half the contribution until ;otal contribution reaches $450. years in the public schools, ihree-flfths thereof in schools of the city, and contributing amounts for 15 years as above. contrib- 3. Retirement under act of uted. 1895 with right to pension. Omits 3. Omits provision that pensions may be reduced pro rata if fund insuf- ficient. 16 PL 236 PUBLIC SCHOOL Sources of revenue. Reference to legisla- Beneficiaries. Management. tion. Employees. Other sources. A TY^S\fl/3s%,3 Extends time to 3. Empowers Amended and added become contrib- board of education to L. 1911, utor to July 1, to add to fund an- pp. 511, 512. 1912, and for form- er contributors nually a sum of public money, who have with- which together drawn, and are with interest on lereafter re-em- school funds re- ployed, to a year ceived under act from time of re- of 1907, will equal employment. the amount con- tributed for that year from teachers' salaries. Added to Extends time to Substitutes chairman of Increases 3. Requires board and jecome contribu- inance committee of board contributions of education to add amended tor to July 1, of education, as member of from teachers' to fund annually a L. 1913, 1916. >ension board in lieu of sec- salaries by 20 sum of public pp. 593, 594. retary of board of education. per cent. money which to- Provides for a primary elec- gether with inter- ;ion to nominate candidates est, as above, will to be elected to pension board equal the amount from teachers. contributed from teachers' salaries, and empowers them to add an amount which will double it. L. 1911. p. 513. Public school eachers hereafter employed or who elect to contrib- The treasurer of the district shall hold the pension fund subject to the control of the >oard of education. There 1. Yearly de- luctions from salaries of ;eachers here- 1. Interest on pension fund. 2. Interest on dis- trict funds, wheth- ute, in districts of shall be a board of manage- after employed er for educational 1,000 to 100,000 ment, which shall by resolu- or who elect to or building pur- not governed by special acts, where ;ion declare when a person is entitled to a pension. The contribute, ac- cording to the poses. )oard of educa- )oard of management shall number of ;ion establishes a consist of 3 or 9 members, years each has oension fund. one-third elected by board of taught, as fol- education from its members, lows: rwo-thirds by teachers from a. Those who ;heir number. The board of have taught education shall determine the not more than number of members and their 5 years, $5. terms. Suits to be in the b. 5-10 years, name of the board of educa- $10. tion for use of the pension c. 10-15 years, and retirement fund. $15. d. Over 15 years, $30. L. 1911, pp. 513, 518, 127n. Public school teachers in dis- tricts of 1,000- 100,000 not govern- ed by special acts, where there is noi enough revenue to Such revenues as may be devoted to the purpose by the directors of a district or by di- rect appropriation by a town. maintain fund un- der above pro- visions, and school district by major- ity vote establishes fund herein pro- vided for. 237 TEACHERS Continued. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. 1 and 2. Requires that the Iree-flfth service in the chools of the city be the ast service before retirement. Restores 3, which was omitted in the revision of 909. 1. To teachers 1. Annuity no1 ;o exceed $400. 1. Retirement after teaching 25 years in the public schools willing to 2. Such propor- three-fifths thereof in the dis- continue in service ion of full an nuity of $400 as ;rict, and contributing for 25 'ears to the fund, with righ and not contributions made or period of past service to retained, >ear to full con pay the contributions tha all amounts tnb.ition for 25 would have been payable un contrib- years. der this act with 4 per cent uted. interest from the time pay 2. To ments would have been made teachers 2. Retirement for permanen who volun- tarily re- disability, after teaching 15 years in the public schools tire before ihree-fifths thereof in the dis more than trict, and contributing for 15 15 years, years, with right as to pas one-half services as above. amounts contributed Annuity not to exceed half salary Retirement, aged 50, afte 25 years of faithful service. at retirement no $400. 238 PUBLIC SCHOOL Reference Sources of revenue. to legisla- Beneficiaries. Management. tion. Employees. Other sources. L. 1913, p. 598. Public school teachers, including Enacts provisions cf L. 1911, p. 513, for districts not gov- Enacts pro visions of L Enacts provisions of L. 1911, p. 513, superintendents erned by special acts. 1911, p. 513, for for districts not and principals, in districts of 10,000- districts no governed by governed by special acts, and adds: 100,000 governed special acts. 3. Interest on by special acts, in- proceeds or' sales cluding Peoria. of school lands. Amended A A A 't L.1915, /lads . 4. In Peoria p. 648. county, a sum an- nually set aside from State com- mon scnool fund equal to one tenth mill on the dollar of assessed valua- tion of taxable property in the district. L 1913 Public school Enacts provisions of L. 1911, p. 598, 14. teachers, including pp. 513, 516, 127n. superintendents and principals, in districts of 10,000- 100,000 governed by special acts where here is not enough reyenue to main- tain fund under above provisions, and school district by majority vote establishes fund lerein provided 'or. Revised (except as to Chicago and Pe- oria), L. 1915, p. 649. Public school teachers, assistant eachers, teacher- secretaries, super- visors, principals, superintendents and assistant su- perintendents, ex- cept in cities and districts of over '5,000 by census of 1910, already hav- ng pension funds, hereafter employed or who before Sep- "Board of Trustees of the Illinois Teachers' Pension and Retirement Fund," to consist of Superintendent of Public Instruction, State Treasurer, and 3 contributors or an- nuitants elected by contribu- ;ors and annuitants by ballot >y mail, from candidates nom- nated by petition. Board, though not a corpora- ion, may sue and be sued by ts name. School authorities n each district to retain from salaries the sums prescribed Monthly de- ductions for the first five months of teaching in each year fiom salaries of teachers here- after employed or who elect to contribute, ac- cording to the number of years each has taught as fol- A sum annually set aside from State common school fund equal to one-tenth mill on the dollar of as- sessed value of taxable property in district. tember 1, 1920, and transmit them yearly to lows: elect to , become State Treasurer. a. Those who contributors and have taught annuitants under not more than >revious funds. 10 years, $1. b. 10-15 years, $2. c. 15-25 years, 16. 239 TEACHERS Concluded. Refunds. Amount of pen- sion. Conditions for pension. Pensions to survivors. Other data. Enacts provisions of L. 1911, Validates pen- sions granted and funds established p. 513, for under color of L. districts 1911, p. 513. not gov- erned by special acts. Half amount paid in, on ceasing to teach be- fore time of service exceeds 15 years, amount re- funded to be returned with 4 per cent inter- est, if re- employed. 1. $400 a year. 2. $16 a year for each year of ser- vice, not to ex- ceed $400 a year. 3. Pensions as above. 1. Retirement, aged 50, aft- er 25 years' service in public schools of U. S., three-fifths in Illinois, having contributed $400 or paying the deficiency with 4 per cent interest. One year on leave of absence for professional preparation may be counted in time of service. 2. Retirement for disability after 15 years' servce in pub- lic schools of U. S., of which three-fifths is in Illinois, hav- ing contributed $400 or pay- ing the deficiency with 4 per cent interest. 3. Being annuitant under Transfers to this fund teachers' funds already es- tablished. Pensions are suspended if pen- sioner resumes teacning in public schools. teachers' fund already *stab- lished. 241 APPENDIX B. TABULAR DIGEST OF PENSION LAWS IN FORCE IN ILLINOIS, JANUARY 1, 1916. NOTE 1. Act of 1915, under which policemen in employ of Boards of Park Com- missioners are beneficiaries, to be in force and effect, requires consent of Board of Park Commissioners. Such consent has not been given as yet by any Board. (August 1, 1916.) NOTE 2. Act under which fire insurance patrolmen In employ of Boards of Underwriters in cities of more than 50,000 inhabitants are beneficiaries, does not provide for the expenditure of any public moneys. NOTE 3. Act under which officers and employees of counties of more than 150,000 inhabitants are beneficiaries, was declared invalid by Judge Charles . Fo ell in the Superior Court of Cook County on August 2, 1916, on the ground that It includes county officers who are not under civil service. INDEX TO APPENDIX B. Beneficiaries. Pages. Firemen in cities of more than 5,000 inhabitants 242 to 247 inclusive. Policemen in cities of more than 200,000 inhabitants 242 to 247 inclusive. Policemen in cities of 50,000 or more inhabitants 242 to 247 inclusive. Policemen in cities of not less than 9,000 nor more than 50,000 inhabitants 242 to 247 inclusive. Policemen in employ of Boards of Park Commissioners (Act of 1913 ) 248 to 253 inclusive. Policement in employ of Boards of Park Commissioners (Act of 1915) 248 to 253 inclusive. Fire insurance patrolmen in employ of Boards of Under- writers in cities of more than 50,000 inhabitants 248 to 253 inclusive. Officers and employees of counties of more than 150,000 in- habitants 248 to 253 inclusive. Employees in cities of more than 100,000 inhabitants 254 to 259 inclusive. Employees of Boards of Education in cities of more than 100,000 inhabitants, who are engineers, janitors or office employees, earning over $49.00 per month 254 to 259 inclusive. Employees of Public Library Boards in cities of more than 100,000 inhabitants 254 to 259 inclusive. Employees of Houses of Correction in cities of more than 150,000 inhabitants 254 to 259 inclusive. Public school teachers, except those in cities and school dis- tricts of more than 65,000 inhabitants where teachers' pension funds were in operation July 1, 1915 260 to 265 inclusive. Public school teachers in cities of more than 100,000 inhabi- tants 260 to 265 inclusive. Public school teachers in school districts of not less than 10,000 nor more than. 100, 000 inhabitants 260 to 265 inclusive. 242 TABULAR DIGEST OF PENSION LAWS Laws. Beneficiaries. Management. , Act approved, June 29, 1915. In force, July 1, 1915. Laws of HI., 1915, p. 292. Firemen in cities of more than 5,000 in- abitants. (Participation com- pulsory.) Act approved, June 29, 1915. In force, July 1, 1915. Laws of HI., 1915, p. 304. Policemen in citiei of more than 200,000 inhabitants. (Participation pulsory.) Act approved, April 29, 1887. In force, July 1, 1887. As amended, June 13, 1913. In force, July 1. 1913. Kurd, 1913, p. 378, par. 391. Act approved, June 14, 1909. In force, July 1, 1909. As amended, June 27, 1913. In force, July 1, 1913. Hurd, 1913, p. 383, par. 402(a). Board of eight trustees: In cities, villages or in- orporated towns where there are such officers, the treasurer, clerk, marshal or chief officer of fire department, and comptroller are ex officio members Where there is no comptroller, the mayor of th< city is substituted. In other villages or incor oorated towns, the president of the board of trus- ses of such village or town, the clerk and attor- ney of such village or town, and chief officer o: fire department are ex officio members. [2.] In all cities, villages and towns, three of the active firemen, elected by the active force, anc jne from the pensioners elected by retired fire men, each for a term of 2 years. [2.] Treasurer of city, village or town is custodian of fund. [9.] Board of five trustees: Three residents of the county, appointed by the mayor for a term of 3 years; one of the active force elected by the com- active force, and one from the pensioners elected jy retired policemen, widows of deceased pen- sioners who are pensioners, and guardians of children who are pensioners, each for a term of 1 year. [2.] Members appointed by the mayor can not hold any other civil office or position during the term. [2.] Treasurer of board of trustees is custodian of fund. [310.] Policemen in cities of 50,000 or more in- habitants. (Participation com- nate.) pulsory.) Policemen in citiet of not less than 9,000 eity nor more than 50,000 for inhabitants. (Participation pulsory.) Board of five trustees: Three residents of the county in which city is located, appointed by the mayor for terms of 3 years. (Terms alter- [2.] One of the active force elected by the active force; one pensioner elected by retired policemen, widows of deceased pensioners who are pension- ers, and guardians of children who are pension- ers, each for a term of 1 year. [2.] Members appointed by the mayor can not hold any elective or appointive office during term. Treasurer of board of trustees is custodian of fund. [89.] Board of three trustees: Two residents of village or town, appointed by the mayor terms of 2 years. (Terms alternate.) One, either of active force or a pensioner, elected by com- members of active force and pensioners for a term of 1 year. [2.] Treasurer of city, village or town is custodian of fund. [811.1 243 IN FORCE IN ILLINOIS JANUARY 1, 191. SOURCES OF REVENUE. From employees. From other sources. Limitations of pay- ments by employees. Refunds. Not to ex- ceed 1 per cent of salar- ies. [53.] Two per cent salaries. [9J One and one- half per cent of salaries, not to exceed \3 per month. [!.] One per cent of salaries. [!.] One per cent of pensions. at] Tax le\y of not to exceed three-tenths of a mill on the dollar on all taxable property of such city, village or town for a period of 3 years beginning with the year 1915. [!.] One per cent of all licenses, excepting those of public utilities. All fines imposed for violations of fire ordinances, enforcements of which are under supervision of fire department. [51.] Amounts received as rewards, gifts, etc., except when allowed to be retained. All fines and penalties imposed upon firemen. [54.] All of tax or license fee collected from for- eign fire insurance companies may be appro- priated. [Act approved, June 29, 1915. In force, July 1, 1915. Laws of 111., 1915, p. 284.] Tax levy of not to exceed seven-tenths of a mill on the dollar on all taxable property of the city for a period of 3 years beginning trance with the year 1915. [9.] Amounts received as rewards, gifts, etc., except when allowed to be retained by police- man or given to endow a medal, etc. Amounts paid for special details ; fines imposed on policemen for violations of rules and regula- tions of department, and moneys received from sale's of unclaimed or stolen property. [510.] In event tax is not levied, a sum sufficient for the purpose of this act shall be provided from money collected for licenses of all kinds, excepting those of public utilities. [9.] Deductions from sal aries from date of en trance into service to date of pension, with- out regard to number of years of service 01 amounts to be received as pensions. [3.] No pro- visions. Deductions from sal- aries from date of en- into service to date of pension, with- out regard to number of years of service or amounts to be received as pensions. [9.] No pro- visions. Seventy -five per cent of dog licenses. Four per cent of saloon licenses. [51.] All money collected for special details of police officers. Fines imposed upon policemen for viola- tions of rules or regulations of police department Proceeds from sales of unclaimed, lost or stolen property. Twenty-five per cent of pawnbrokers', junk dealers' and secondhand dealers' licenses. All of fines for carrying concealed weapons. One-half of costs collected for violations of city ordinances. All rewards given or paid to policemen, except such as they are permitted by chief officers to retain. Three per cent (not to exceed $50,000 per annum) of all money collected for licenses not mentioned in this act. [51.] Seventy-five per cent of dog licenses. Two per cent of saloon licenses. [!.] All money collected for special details of police. Ten per cent of all fines collected for violations of city ordinances. All fines imposed upon police officers for violations of rules and regulations of police department. All rewards given or paid to police, except those excepted by the board of trustees. (This provision does not apply in cities which have not adopted civil service in police depart- ments.) Ten per cent of all licenses not otherwise mentioned herein. All money ac- cumulated for a police pension fund, and one half of all money accumulated for a police and firemen's pension fund under any previ ous legislation. [51.] LIMITATION: If sum total of sources of rev- enue in a particular year exceed $2,500, re- duction to that figure shall be made by scaling the amount to be appropriated from saloon licenses. [51.] Deductions from sal aries from date of en- trance into service to date of pension, with- out regard to number of years of service or amounts to be received as pensions. [51-] No pro- visions. Deductions from sal- No pro- aries from date of en- \risi trance into service to date of pension, with limitation that they shall not exceed $1 per month; and de- ductions from pen' sions during pension period, without limi tation. HI.] 244 TABULAR DIGEST OF PENSION LAWS EMPLOYEES. Benefic- iaries. Conditions for pension. Amount of pension per year. Provisions for discontinuance of pension. Service. Age. Disability. Firemen Minimum 20 No re- Pension awardec One-half of Pension terminates in cities of more years, the las two of which quirement. at any time thai physical or menta! salary at date of retirement. when disability ceases. (Member shall be re- than 5,000 must be con disability renders [5 and 7.] stored to department inhabitants. tinuous. [7.] retirement from at former rank or active service nec- grade.) [5.] essary. [5.] Police- Minimum 20 No re- Pension awardec Service pen- If retired for dis- men in cities of more than 200,000 inhabitants. years. Period of service in city fire department may be in- cluded in .com- quirement. at any time if dis- ability occurs when in, and in , conse- quence of, the per- formance of duty. [4.] sioners receive one-half salary of rank held for 1 year im- mediately prior to retirement ability: Pension ter- minates when dis- ability ceases (mem- ber shall be restored to department at former rank) [4] ; puting term oi total service. If policeman be- comes insane after t3] ; disabil- ity pensioners or if pensioner fails to submit to physical [3 and 8.] 10 years of service, a pension is paid to wife, or if no receive one- half salary at date of dis- examination as to fitness for duty, or shall disobey require- wife then to child or children under 18 years of age. [4 and 6.] ability, both with minimum of $600 and maximum of $900. [3 and ments of board relat- ing thereto. [6.] If retired for either service or disability: Pension terminates if 4.] pensioner is convicted of felony, or becomes a habitual drunkard, or nonresident of the United States. t6.] Police As in case of No re- As in case of As in case of As in case of Chi- men in Chicago police- quirement. Chicago policemen Chicago police- cago policemen above. cities of men above. above. [4 and 6.] men above. [4, 7 and 8.] 50,000 or [3.] [3 and 4.] more in- habitants. Police- men in cities of Minimum 20 years. [3.] Minimum 50 years. [3.] Pension awarded at any time if disability occurs when in, and in Service pen- sioners receive one-half salary of rank held If retired for dis- ability : Pension ter- minates when dis- ability ceases and than 9,000 nor more than 50,000 inhabitants. consequence of, per- formance of duty. Pension payable during time that officer is compelled ;o suspend per- 'ormance of duty for 1 year immediately prior to retire- ment [3]; dis- ability pen- sioners receive one-half salary member resumes per- formance of duty. [4.] In all cases, if pen- sioner is convicted of 'elony, or becomes a labitual drunkard, or or retire from the at date of re- becomes a nonresident . force. [4.] tirement, both with max- of this State without permission, or fails to imum of $900. report for examina- [4.] tion as to fitness for duty, or fails to obey . the orders of the chief of police or the board of trustees re- garding such examina- tion. [9.] 245 IN FORCE IN ILLINOIS JANUARY 1, 1916. WIDOWS OF EMPLOYEES. Conditions for pension. Amount of pension per year. Provisions for discontinuance of pension. If husband dies from any cauuse while in active service, or if husand dies during retire- ment after 20 years of service, provided mar- took place before date of retirement. [86.] 1. If husband was retired on service pen- sion, provided marriage took place at least 6 months before date of retirement. [3.] 2. If husband was retired on disability pen- sion, provided marriage took place before date of retirement. [4.] 3. If husband lost his life in performance of duty. No restriction as to date of mar- riage. [5.] 4. If husband died from any cause after 10 years of service, provided marriage took place at least 2 months before date of death. [5.] $540. [6.] 1. Same as was paid to husband. [3.] 2. Same as was paid to husband. [4.] 3. Same rate as in 2 above [5.] 4. Same rate as in : above. [5.J In all cases, pensions terminate on marriage. [6.] In all cases, pensions terminate on marriage. [3, 4 and 5.] 1. If husband was retired on service pen- sion, provided marriage took place before date of retirement. [3 and 8.] 2. If husband was retired on disability pension, without restriction as to date of marriage. [4.] 3. If husband lost his life in performance of duty, without restriction as to date of marriage. [6.] 4. If husband died from any cause after 10 years or more of service, without restriction as to date of marriage. [6.] 1 and 2. If husband was pensioned because of service or disability, provided marriage took place before retirement. [6.] 3. If husband lost his life in performance of duty, without restriction as to date of marriage. [6.] 4. If husband died from any cause after 10 years of service, without restriction as to date of marriage. [6.] 1. Same was paid husband. [3.] In all cases, pensions terminate upon marriage. [4 and 6.] Pension terminates if pensioner 2. Same as is convicted of felony, or if she becomes a habitual drunkard or was paid to husband. [4.] 3. Same rate States, as in 2 above. [8.] 4. Same rate as in 2 above. [8.] 1 and 2. Same as wa paid to hus- band. [6.] 3. Same rate as in above. [8.] 4. Same rate as in above. [56.] In all cases, pensions terminate upon marriage. [3 and 6.] Pension terminates if pensioner is convicted of felony or becomes a habitual drunkard, or if she 2 becomes a nonresident of this State without permission. [9.] nonresident [8.] of the United 246 TABULAR DIGEST OF PENSION LAWS NATURAL CHILD OR CHILDREN OF EMPLOYEES. Benefi- ciaries. Conditions for pension. Amount of pension per year. Provisions for discontinu ance of pension. Firemen in cities of more than 5,000 inhabitants Police- men in cities of more than 200,000 in- habitants. In all cases, must be under 16 years of age. [6.] Beneficiaries are children of serv- ice pensioners or of members who die while in active service. [6.] In all cases, must be under years of age. [3, 4 and 5.] Children of service pensioner; chil- dren of disability pensioner; children of policeman killed in performance of duty; children of policeman who dies after 10 or more years of serv- ice: If no widow survives or if sur- viving widow dies or marries. [3, 4 and 5.] Children of policeman who insane after 10 or more years service: If there is no wife and he has not been taken out of the State [5.] In all cases, families re- ceive amounts years equal to the pension pro- vided for de- ceased father State or the mother, to be divided equally among becomes those under 16 O f years of age. [3, 4 and 5.] Police- men in cities of 50,000 or more in- habitants. As in Chicago policemen, above. [ 3, 4 and 6.] Police- men in cities of not less than 9,000 nor more than 50,000 inhabitants In all cases, must be under 16 years of age. [3 and 6.] Children of service or disability pensioner: If no widow survives or if surviving widow dies or marries, provided father did not marry after retirement. [3 and 4.] Children of policeman killed in per- formance of duty; children of police- man who died after 10 years or more of service: If no widow sur- vives or if surviving widow dies or marries. [6.] each $96 to child if mother nates In all cases, pension termi- when child attains 16 s alive; $180 years of age. [6.] to each child if mother is dead. [6.] In all cases, pension termi- nates when child attains 16 of age. [3, 4 and 5.] In case of insane policeman, pension rights cease if police man is taken outside the [5.] As in Chi- cago police- men above. [3, 4 and 6.] In all cases, pension termi- nates when child attains 16 years of age. [3, 4 and 6.] In case of insane policeman, when he is restored to reason or taken outside of the State. [6.] In case of children of police- man killed in performance of duty, if child marries. [6.] Pension terminates if child is convicted of felony or be- comes a habitual drunkard, or nonresident of the United States. [8.] Same as in Chicago police- nates men above. 3 and 6.] In all cases, pension termi- when child attains 16 years of age, or if child mar- ries. [3 and 6.] In all cases, pension termi- nates if pensioner is convicted of felony or becomes a habitual drunkard, or if child becoioes a nonresident of the State with- out permission. [9.] 247 IN FORCE IN ILLINOIS JANUARY 1, 191. Other dependents of employees. Additional data. If member dies from any cause while in active service or during retirement after 20 years of service, and leaves no widow or natural children, dependent father and mother each receive $25 per month, provided member was sole and only support of such parent or parents. [6.] If employee becomes insane after 10 years of service, wife receives a pension equal to one-half of husband's salary at date of insanity with minimum of $600 and maximum of $900. [5.] Pension ceases if employee is taken outside the State. [5.] As in Chicago policemen above. [8.] When employee lost life in performance of duty, or was pensioned because of age and length of service, or because of dis- ability, if no eligible widow or child under 16 years of age survives pension is payable to dependent parents if such there be, provided such parent does not marry subsequent to death of member, and provided member did not marry subsequent to retirement. [6.] Pension terminates if parent is con- victed of felony or becomes a habitual drunkard, or if parent becomes a non- resident of this State without permission so to be. [9.] Repeals act approved May 13, 1887, and all amend- ments thereto. [14.] This act makes no provision regulating investment of funds, except that treasurer shall not loan or de- posit unless authorized by board. [11.] The law provides for actuarial determination of amount needed to pay pensions currently and for maintenance of a reserve fund in accord with actuarial estimates for those policemen entering the service after January 1. 1916. (NOTE. The law is silent as to the standards to be employed in making an actuarial determination.) This act supersedes the act passed April 27, 1887, in force July 1, 1887, as subsequently amended re- garding cities of more than 200,000 inhabitants. [7.] Funds may be invested in Federal bonds or State, county, township or municipal bonds of Illinois. [10.] All policemen retired for causes other than 20 years of service, must, unless excused, report monthly to the chief Of police, and may be assigned to perform emergency duties, and must perform same. They shall have no claim to payment for performance of such duty. [7.] Benefits shall be scaled pro rata, if money in fund is insufficient to pay benefits in full. [12.] Funds may be invested in interest-bearing bonds of the United States, State of Illinois, or any county, township or municipal corporation in the State of Illinois. [10.] Benefits shall be scaled pro rata, if money in fund is insufficient to pay benefits in full. [12.] No deductions from salaries in cities that have not adopted civil service in their police departments. !!.] Investments are limited to bonds of the United States, State of Illinois and municipalities in Illinois. [10.] 248 TABULAR DIGEST OF PENSION LAWS Laws. Beneficiaries. Management. Act approved, May 23. 1913. Kurd, 1913, p. 1807, par. 337. Policemen in em- Board of five trustees, all of whom must be residents ploy of boards of of the town or towns comprising park district: Three park commission- appointed by the president of the hoard of park com- rs. (Participation missioners for terms of 3 years (one appointed each compulsory.) year). One of the active force elected by the active force, and one retired policeman elected by retired police- men, widows of deceased pensioners and guardians of children of deceased pensioners who are pensioners, each for a term of 1 year. [2.] The board of trustees elects one of its members as secretary and treasurer, who is custodian of fund. [9.] Act June 29, 1915. In force, July 1, 1915. Laws of HI., 1915, p. 542. Policemen in em- ploy of boards of park commission- srs. (Participation compulsory.) Board of five trustees, all of whom must be residents of the town or towns comprising park district: Three, not holding any appointive or elective political offices or positions, appointed by the president of the board of park commissioners, for terms of 3 years (one ap pointed each year). One of the active force elected by the active force, and one retired policeman elected by retired policemen, widows of deceased pensioners and guardians of pensioned children of deceased pensioners, each for a term of 1 year. [2.] The board of trustees elects one of its members as secretary and treasurer, who is custodian of fund. [7.] Act approved, June 24, 1895. In force, July 1, 1895. Kurd, 1913, p. 393, par. 423, Act approved, June 29, 1915. In force, July 1, 1915. Laws of 111., 1915, p. 342. Fire insurance patrolmen in em- tary ploy of boards of underwriters in cities of more than 50,000 inhabitants. Participation com- pulsory.) Board of five trustees, composed of president, secre- treasurer, chairman of the patrol committee and superintendent or chief officer of the fire insurance patrol of the board of underwriters. [!.] Treasurer of board of trustees is custodian of fund. [9.] Officers and em ployees of counties of more 150,000 inhabitants. Participation com- pulsory.) Board of five trustees: County comptroller and county treasurer, ex offlcio. Three employees for terms than of 3 years, one elected each year by employees. [82.] County treasurer is custodian of fund. [5.] 249 IN FORCE IN ILLINOIS JANUARY I, 1918. SOURCES OF REVENUE. From em- ployees. From other sources. Limitations of pay- ments by employees. Refunds. One and one-half per cent of salaries, not to exceed $3 per month. [Jl.] Two per cent of salaries. 08.] All fines and penalties imposed upon persons arrested by any member of force. [!.] All rewards paid or given to members, except such as are excepted by chief offi- ers of force. [!.] All fines for infraction of rules and regu- lations of department. [!.] Tax levy on each dollar of taxable prop- erty in various park districts for a period of 3 years beginning with the year 1915 as follows: South Park (Chicago), one- twenty-fifth of a mill; West Chicago Park, one-tenth of a mill; Lincoln Park (Chicago), one-seventeenth of a mill. [8.] All rewards paid or given to members, except such as are allowed to be retained by such members. [9.] Deductions from salaries from date of entrance in- to service to date of pen- sion, without regard to number of years of serv- ice or amounts to be re- ceived as pensions. [!.] Deductions not to ex- ceed $3 per month. [!.] Deductions from salaries from date of entrance in to service to date of pen- ion, without regard to number of years of serv- ice or amounts to be re- ceived as pensions. [8.] No pro- visions. No pro- visions. Not to exceed one per cent of salaries. [52.] $2 per month. [51.] A sum not in excess of 2 per cent of all money paid to the treasurer of the fire nsurance patrol by insurance companies to for support of said patrol. [2.] AmoMnts received as rewards, gifts, etc., except when allowed to be retained by patrolman or given to endow a medal other competitive award. [53.] Deduction from salaries from date of entrance in- service to date of pen- sion, without regard to number of years of serv ice or amounts to be re- o'r ceived as pensions. [52.] No pro- visions. Amounts received as gifts, etc. [54.] Deductions from salaries from date of entrance in to service to date of pen- sion, without regard number of years of serv- ice or amounts to be re- ceived as pensions. [!.] of In case separation from service to on account of abolition of position, a sum equal to full amount de- ducted with interest at 3 per cent per annum. [54.J 250 TABULAR DIGEST OP PENSION LAWS EMPLOYEES. Beneficiaries. Conditions for pension. Amount of pension per year. Provisions for dis- continuance of pension Service. Age. Disability. Policemen in Minimum No re- Pension awardec Service pen- If retired for dis- employ of boards of park 20 years. [3.] quirement. at any time if dis ability occurs while sioners receive one-half of sal- ability: Pension ter- minates when disabil- commissioners. (Act of 1913.) serving as a police man. [4.] ary of rank held for one ity ceases [4] ; or if pensioner fails to re- If policeman be year prior to port for examination comes insane after 10 years of service retirement [3]; disability for duty or disobeys an order so to report a pension is pale to widow (wife) or if no wife, then to child or chil- dren under 1( years of age, or if none such, then to father or mother. pensioners re- ceive one-half Of salary at date of retirement, both with minimum of S600 and maxi- mum of $900. or an order to report for duty. [8.] In all cases pension terminates upon con- viction of felony, or if pensioner becomes a habitual drunkard or nonresident of this [6.] [4.] State. [8.] Policemen in Minimum Minimum Pension awarded Same as in Same as in park employ of boards of park 20 years. [3.] 50 years. [3.] at any time if dis- ability occurs while park polic above. [3 police above, except that residence is per- commissioners. serving as a po- and 4.] mitted in any part of (Act of 1915.) liceman. [4.] the United States. If policeman be- [4 and 8.] comes insane after 10 years of service, a pension is paid to wife, or if no wife, then to child or children. [5.] Fire insur- Minimum Minimum Pension awarded One-half of No provisions. ance patrol- men in employ 12 years, ast two 50 years. [7.] at any time if physically or men- salary at date of retirement. of boards of continuous. ally permanently 5 and 7.] underwriters in [7.] disabled by reason cities of more of service so as to than 50,000 in- ender retirement habitants. necessary. L5.] OfBcers and Minimum Minimum Pension awarded 1600. [4.] Pension terminates employees of counties of 20 years. [7.] 55 years. 17.] it any time after 5 years of service I when disability ceases. [4.] more than endered subse- 150,000 inhabi- quent to July I, tants. 915. [9.] 251 IN FORCE IN ILLINOIS JANUARY 1, 1918. WIDOWS OF EMPLOYEES. Conditions for pension. Amount of pension per year. Provisions for discontinu- ance of pension. 1 and 2. If husband was pensioned because of service or disability incurred as a result of injuries received in the discharge of duty, pro- vided marriage took place before retirement. [3 and 4.] I. If husband lost his life in performance of duty. [.] 4. If husband died after 10 or more years of service. [6.] 1. If husband was retired on service pension, jrovided marriage took place at least 6 months jefore retirement. [3.] 2. If husband was retired on disability pen- sion, provided marriage took place before date of retirement. [4.] 3. If husband lost his life in performance of duty. t5.] 4. If husband lost his life after 10 years of service, provided marriage took place at least fi months before date of death. [5.] If husband died while in service or after re- tirement on pension without restriction as to date of marriage. [6.] No provisions. 1 and 2. Same as was paid to hus band. [3 and 4.] 3. Same rate as in above. [6.] 4. Same rate as in above. [6.] In all cases, pensions termi- nate upon marriage. [3 and o.J ^ In all cases, pensions termi- nate upon conviction of felony, or if pensioner becomes a habitual drunkard or a non- resident of this State. [8.] 1. Same as was paid to husband. [3.] 2. Same as was paid to husband. [4.] 3. Same rate as in above. f5.] 4. Same rate as in above. [5.] $360. [6.] In all cases, pensions termi- nate upon marriage. [53, 4 and 5.] In all , cases, pensions termi- nate upon marriage. [86.] No pro- visions. No provisions. 17 P L TABULAR DIGEST OP PENSION LAWS NATURAL CHILD OR CHILDREN OF EMPLOYEES. Beneficiaries. Conditions for pension. Amount of pension per year. Provisions for dis- continuance of pension. Policemen in employ of boards of park co mmissioners. (Act of 1913.) In all cases, must be under 16 years f age. [3 and 6.] Children of service or disability pen- sioner: If no widow survives or if sur- iving widow dies or marries. [3 and J Children of policeman killed in perform- ance of duty: If no widow survives or if surviving widow dies or marries. [6.] Children of policeman who died after 10 years of service: If no widow sur- dves or if surviving widow dies or mar- and 6.] ries. [6.] If father becomes insane after 10 years of service, having no wife. [6J Policemen in employ of boards of park commissioners. (Act of 1915.) Fire insur- ance patrolmen in employ of boards of un- derwriters in cities of more than 50,000 in- habitants. Officers and employees of counties of more than 150,000 inhabi tanta. In all cases, In all cases, pension amilies receive i terminates when child amounts equal attains 16 years of age. to the pension [3 and 6.] provided for Pension terminates up- deceased father on marriage in all cases or the mother except those of children divided equally of service pensioners. In all cases, must be under 16 years of age. [3, 4 and 5.] Children of service pensioners: If no eligible widow survives or if such widow dies. [3.] Children of disability pensioners: If no eligible widow survives or if such widow dies or marries. [4.] Children of policeman killed in per- formance of duty: If no widow survives or if surviving widow dies. [3 and 5.] Children of policeman who died after 10 or more years of service: If no eligible widow survives or if such widow dies. [5.] Children of insane policeman: If no wife is living and he has not been taken outside the State. [5.] In all cases, must be under 16 years of age. [6.] If father dies while in service or dur- ing retirement on pension. [6.] No provisions. among those under 16 years of age. [3, 4 As in, park police above. [3, 4 and 5.] In all cases, pension terminates when child attains 16 years of age. [3, 4 and 5.] $72. [58.]. No pro- visions. [6.] In all cases, pension terminates if child is felony or habitual convicted aecomes drunkard or a non- resident of this State. [8.] In all cases, pension terminates when child attains 16 years of age. [6.] No provisions. 253 IN FORCE IN ILLINOIS JANUARY 1, 1916. Other dependents of employees. Additional data. If there be no widow or no child or children under 16 years of age of deceased member, then his father or mother receives pension provided for widow or children. [3 and 6.] If member becomes insane after 10 ears of service, wife receives pen- ion equal to one-half of salary of msband at date of insanity, within he limits of $600 and $900. [.] If employee becomes insane after 10 ears of service, wife receives a >ension equal to one-half of hus- )and's salary at date of insanity, rot o exceed $900. [5.] Pension ceases if such employee is taken outside of the State. [5.] Provisions for natural children ap- ly also to adopted children. [?8.] No provisions. Pensioners other than service pensioners shall report monthly unless excused by the superintendent of police. They may be assigned to, and must perform, such service as commanding officer directs and shall have no claim for payment for such duty. [7.] Funds may be invested in bonds of the United States, State of Illinois or any county, township or municipal corporation of the State of Illinois. [10.] The law provides for actuarial determination of amount needed to pay pensions currently and for maintenance of a reserve fund in accord with actuarial estimates for those policemen entering the service after January 1, 1916. [8.] (NOTE. The law is silent as to the standards to be em- ployed in making an actuarial determination.) Should any policeman or his heirs receive any compen- sation or allowance from any board of park commissioners under, or in pursuance of, the laws of the United States, or of this State, now or hereafter in force, the pension herein provided shall be reduced by the amount of such allowance if paid in installments, or if payable otherwise-, no pension shall be paid to such policeman, his widow, child or children until such time as pension would amount to the same sum had it been paid to them. [6.] Funds may be invested in bonds of the United States, or State, county, township or municipal bonds of Illinois. t9.] To be in force and effect this act requires consent of board of park commissioners expressed by resolution or otherwise, which must be recorded in the office of the re- corder of deeds of county. [11.] Funds may be invested in securities approved by the board of trustees. [4.] This fund includes all employees of a county except temporary or probationary employees; those who were 60 or more years of age on July 1, 1915, who had not served the county for at least 10 years: and laborers ex- cept such as apply for participation. [!.] Funds may be invested in Federal, State, township or municipal bonds issued in the United States. [4.] 254 TABULAR DIGEST OF PENSION LAWS Laws. Beneficiaries. Management. Act approved, May 31, 1911. In force, July 1, 1911. Hurd, 1913, p. 483, par. 741. As amended, June 29, 1915. In force, July 1, 1915. Laws of m., 1915, pp. 298 and 302. Act approved, May 15, 1903. In force, July 1, 1903. Hurd, 1913, p. 2255, par. 423 (a). Act approved, May 12, 1905. In force, July 1, 1905. As amended, June 3, 1907. In force, July 1, 1907. Kurd, 1913, p. 1552, par. Act approved, June 29, 1915. In force, July 1, 1915. Laws of 111., 1915, p. 465. Employees of cities of more han 100,000 in- habitants. (Par- icipation compul- sory.) Employees of boards of educa- tion in cities of more than nhabitants, who are engineers, janr itors or office em ployees earning over $49 per month (Participation op tional.) Employees public library more than 100,000 nhabitants. (Par ticipation al.) Board of five trustees: City comptroller and city treasurer, ex officio. Three employees elected by the employees for terms of 3 years, one elected each year. [2.] (Elective trustees can not hold political office or ap- pointment.) [2.] City treasurer is custodian of fund. [55.] Board of six trustees: [4.] President and secretary of board of education, ex officio. Four contributors elected by contributors for terms of 2 years, two elected 100,000 each year. [5.] City treasurer is custodian of fund. [83.] Board of five trustees: President and secretary of board of directors of library, ex officio. One other boards in cities of member of the board of directors elected for a term option- of 1 year by contributors. Two contributing employees elected by contributors, each for a term of 2 years. [5.] City treasurer is custodian of fund. [3.] Employees of houses of correc- tion in cities of more than nhabitants, who are employed un- der Civil Service Act, or appointed before it was ised and in service July 1, 1911, except tem- porary, probation- ary and 60-day em- ployees, and those who on July 1, 1915, are 50 or more years of age and have served less than 10 years. (Participation op- tional.) Board of five trustees: Chairman of board of in- spectors of houses of correction and superintendent of houses of correction, ex officio. Two contributors elected' 150,000 by contributors for terms of 2 years. (Terms alternate). One beneficiary elected annually by pensioners. [4.] City treasurer is custodian of fund. [3.] 255 IN FORCE IN ILLINOIS JANUARY 1, 1918. SOURCES OF REVENUE. From em- ployees. From other sources. Limitations of payments by employees. Refunds. City appropriates an amount equal to sum deducted from salaries of employees during previous year, for a period of 2 years begin- ning January 1, 1916. (1 as amended. Laws of 111., 1915, p. 298.) Amounts received as gifts, etc. [84.] Deductions from salaries from date of entrance into calendar service to date of pension, without regard to number of years of service. If retired because of age and service before the sum of $480 has been contrib- uted, the balance plus 5 ser cent interest is de- lucted from pension in 36 equal monthly installments [87.] Board of education has power to appropriate double the sum contrib- uted by employees each year. [Act of service June 27, 1913. In force, July 1, 1913. Kurd, 1913, p. 2235, par. 278 (a).] [NOTK. At present, board and em ployees contribute equal amounts (Aug. 1, 1916.)] Such moneys from miscellaneous sources as board of directors of li brary may determine. [!.] I [NOTE. At present, fund receives all !of fines collected for retention of books overtime. (Aug. 1, 1916.)] Three per cent of gross earnings of houses of correction, 3 per cent of fines nnd costs collected for violations service of city ordinances where persons have n incarcerated in houses of correc- tion for nonpayment of such fines and costs. Both of these sources of rev- enue for a period of 3 years only, beginning with the year 1915. [!.] Amounts received in gifts, etc. [6.] Deductions from salaries from date of entrance into to date of pension. [10.] Minimum: The equivalent of 5 years' contributions. [9.] Deductions from salaries from date of entrance into service to date of pension. [!.] Deductions from salaries rom date of entrance into to date of pension, without regard to number of years of service. [!.] In case of sepa- ration from serv- ce on account of abolition of posi- tion, a sum equal to amount contrib- uted. [4.] In case of death or separation from service for any cause other than that above, one- lalf of amount contributed. [84.] One-half of sum contributed if em- ployee resigns or is dismissed be- fore serving 10 years. [813.] One-half of sum contributed if em- ployee resigns or s dismissed. [811.] One-half of the sum contributed if employee re- signs or is dis- missed after 3 or more years of con- tribution. [52.] 256 TABULAR DIGEST OF PENSION LAWS EMPLOYEES. Beneficiaries. Conditions for pension. Amount of pension per year. Provisions for dis- continuance of pension. Service. Agre. Disability. Employees of Minimum 20 Minimum Pension $600. [4.] Pension terminates cities of inor< than 100,000 in- years except 'hen Civil War 55 years. [7.] awarded at any ;ime after 5 when disability ceases. [9.] habitants. veterans. [7 years of service and 9^.] rendered subse- quent to July 1, 1911. [4.] Employees of 1. Minimum 1. No re- Pension Board of Pension terminates boards of edu- cation in cities years. [11.] quirement. [ii.] awarded at any time after 10 trustees deter- mines amount when disability ceases or for other good cause of more than 2. Minimum 2. Mini- years of serv- but within as board of trustees 100,000 inhabi- tants, who are years. [7.] mum 55 years. [7.] ce. [12.] maximum of $600. [6.] shall determine. [6.] engineers, jani- If pensioned tors or office because of dis- employees earn- ability, such ing over $49 sum as board per month. sf trustees may determine. [12.1 Employees of public library boards in cit- ies of more than 100,00 in- habitants. 1. Minimum 20 years. [9.] 2. Minimum 10 years. [7.] 1. No re- quirement. [9.] 2. Mini- mum 55 years Pension awarded at any time after 10 years of serv- ice. [10.] Board of trustees deter- mines amount but within maximum of $600. [6.] Pension terminates when disability ceases or for other good cause as board of trustees shall deter- mine. [6.] [7.] If pensioned for disability, such sum as board of trus- tees deter- mines. [6.] Employees of houses of cor- rection in cit- ies of more than 150,000 in- habitants. Minimum 20 vears. t7 or 9.] No re- quirement. Pension awarded at any time after < years of contri- bution to fund. [10.] $600. [10.] Pension terminates when disability ceases or for other good cause, subject to the approval of the major- ity of the contribu- tors to the fund. [9.] 26? IN FORCE IN ILLINOIS JANUARY 1, 1916. WIDOWS OF EMPLOYEES. Conditions for pension. Amount of pension per year. Provisions for discontin- uance of pension. No provisions. No pro visions No provisions. See additional data. See addition- al data. No provisions. See additional data. See addition- al data. No provisions. (1) If husband was retired on service pension, >rovided marriage took place at least 5 years be- 'ore his death [8] and prior to retirement. [2.] (2) If husband was retired on disability pension, >rovided marriage took place at least 5 years be- fore his death. [10.] (3) If husband died while a contributor, provided marriage took place at least 5 years before his death. [8.] 1600. [8.] 2. Same as in 1 above. [10.] 3. Same as in 1 above. [10.] In all cases pensions termi- nate upon marriage. [58 and 258 TABULAR DIGEST OF PENSION LAWS NATURAL CHILD OR CHILDREN OF EMPLOYEES. Beneficiaries. Conditions for pension. Amount of pension per year. Provisions for discon tinuance of pension. Employees of cities of more than 100,000 inhabitants. No provisions. No provisions. No provisions. Employees of boards of education in cities of more than 100,000 inhabitants, who are engineers, janitors or office employees earn- ing over $49 per month. Employees of public library boards in cit ies of more than 100,000 inhabitants. See additional data. See additional data. No provisions. See additional data. See additional data. No provisions. Employees of houses Children under 16 years of correction in cities of age of deceased con- of more than 150,000 tributors or beneficiaries inhabitants. when no eligible widow survives. [8 and 10.] $600 per annum is divided equally among eligible children of attains family. [9 and 10.] In all cases, pension terminates when child years of age. and 10.] 259 IN FORCE IN ILLINOIS JANUARY 1, 1916. Other de- pendents of employees. Additional data. No provisions. No provisions. No provisions. Mother of de- ceased contrib- utor or bene- ficiary, if no eligible widow or children sur- vive, receives pension of $600 per year as long as she lives. [8 and 10.] Employee who has served 20 or more years may retire from service and retain right to pension by paying $2 per month until attainment of age 55, provided that if sum deducted from the salary of such employee is less than $480 at time of retirement from service, the balance shall be paid within 30 days from date of such retirement. [8.] This fund includes all employees who were appointed to their positions by virtue of the Civil Service Act of March 20, 1895, and those appointed prior to the passage of that act who are now in service, who are not partici- pants in any other municipal pension fund, except temporary, probationary and 60-day employees, those who are less than 21 years of age, those who were 60 or more years of age on July 1, 1911, and who had not been in service at least 10 years, and laborers unless any such laborer has applied for participa- tion as provided in the Act of July 1, 1911. [!.] Civil War veterans who have attained the age of 65 years may be pen- sioned after 10 years of service. [9^.] Funds may be invested in bonds of the United States, of the State of Illinois, of any county, township or municipal corporation in the United States, or any special assessment bonds or vouchers issued by the City of Chicago. [4.] Upon death of contributor who had not been a beneficiary, widow receives sum not exceeding amount of benefit for 1 year. [7.] Upon death of contributor who has not been a beneficiary, provided there is no widow, board of trustees may expend a sum not exceeding the amount of 1 year's benefit for the benefit of any minor children of said contributor. [8.] Funds may be invested at discretion of board of trustees. [6.] This act applies only to employees who receive stipulated annual salaries. [2.] Contributors may withdraw upon notice in writing to the board of trus- tees. [2.] Application for participation may be made within 6 months after entering service, or if not so made, within 3 years, upon payment of sum which would have been contributed from date of entering into service, or from date when law became effective. [9,^ ] Penalty of fine or imprisonment or both for interfering with or obstruct- ing enforcement of act. [14.] Upon death of contributor who had not been a beneficiary, widow jeceives sum not exceeding one year's benefit. [8.] Funds may be invested at discretion of board of trustees. [6.] Participant may withdraw from this fund upon giving notice in writing. [2.] No benefits to be paid until July 1, 1916. [10.] PENALTY: Fine of not less than $50, nor more than $100, or 6 months' imprisonment in county jail, or both, for interference with or obstruction of enforcement of provisions of this law. [15.] Credit for service prior to participation in this fund is given upon pay- ment of 2 per cent of salary received during period of such service. [2.] If fund is insufficient to pay amount stated, level deductions shall be made. [7.] Funds may be-invested in Federal, State, county or municipal bonds. [4.] 260 TABULAR DIGEST OF PENSION LAWS Laws. Beneficiaries. Management. Act approved, May 27, 1915. In force, July 1, 1915. Laws of 111., 1915, p. 649. Public school teach- ers, except those in cities and school dis- ;ricts of more than 65,000 where teachers' pen- sion funds were in operation July 1, 1915. (Participation option- al to those in service prior to July 1, 1915; compulsory to others.) Board of five trustees: The superintendent of public instruction, and the State treasurer, ex offlcio. Three others, contributors to the fund or annuitants, elected by such contributors and an- inhabitants nuitants, one each year for a term of 3 years. [1, 2 and 3.] State treasurer is custodian of fund. [6.] Act approved, and in force, June 12, 1909. Amended, June 2, 1911. In force, July 1, 1911. Amended, June 6, 1911. In force, July 1, 1911. Amended, June 5, 1911. In force, July 1, 1911. Amended, June 26, 1913. In force, July 1, 1913. Hurd, 1913, p. 2210. Act approved, June 27, 1913. In force, July 1, 113. Hurd, 1913, p. 2274. Public school teach- ers in cities of more than 100,000 inhabi- tants. (Participation optional to those in service prior to July 1, 1913, or those who any re-enter service and who were employed herein before that two date ; compulsory to those who enter serv- tion.) ice for the first time after July 1, 1913.) Board of nine trustees: Chairman of finance committee of board of education is ex offlcio member and president. Two members of board of education elected by said board for terms of 2 years, one elected each year. [152.] Vacancies in such membership may be filled at regular meeting of the board of education. [152.] Six contributing teachers for terms of 3 years, elected by contributors each year. [152.] (Vacancies filled at time of next regular elec- [152.] City treasurer is custodian of fund. [160.] Public school teach ers in school districts third of not less than 10,000 of nor more than 100,000 inhabitants. (Partici pation compulsory.) Board of either three or nine trustees: One- of this board shall be members of the board school inspectors, or governing body of school district, selected by such body. Two-thirds shall be contributing members of the active teaching force, elected by those of the active teaching force who are contributors, for terms fixed by the governing body of school district. [2.] Treasurer of school district or of board of school inspectors is custodian of fund. [10.] 261 IN FORCE IN ILLINOIS JANUARY 1, 1916. SOURCES OF REVENUE. From employees. From other sources. Limitations of payments by employees. Refunds. First 10 An amount from the common years, $1 per school fund sufficient to meet all month; next 5 demands under this act, which years, $2 per amount until otherwise provided month; next 10 by law shall be one -tenth of a years, $6 per mill on the dollar of the assessed month. For 5 valuation of all taxable property months only in the State exclusive of cities of each year, and school districts not coming [513.] under the provisions of this act. [23.] Donations, legacies or other moneys received from any legal source or increment for the pur- poses of this fund. [24.], One-half of sum paid if contributor to teach n public schools before teacher serving 15 [27.] Assessments cease after 25 years of service and contri- bution to fund. [25a.] (NOTE. This makes a total ceases contribution of $400.) Before receiving pension be- cause of disability, must have paid the sum of years. $400, into fund. [25c.] Teachers satisfying service and age requirements are eligi- ble for pension upon payment into fund of a sum equal to that which such teacher would have paid had he or she been a contributor during period of past service with simple inter- est at 4 per cent per annum. [25b.] First 5 years, Interest upon tax levied for 50 cents per school purposes, not to exceed 1 month: second per cent of total sum levied. 5 years, $1 [165.] per month ; third 5 years, $1 50 per month. Thereafter, $3 uted by teachers, and has power per month. (Deductions made during 10 months of school year.) [155.] Deductions from salaries from date of entrance into service to date of pension. [155.] Minimum contribution for Board of education must pay service pensioners, $450. [155.] No minimum contribution for tributed disability pensioners. [158.] an amount which, added to the above, equals the sum contrib- to pay an amount which, added to interest as stated, equals twice the amount contributed by teachers. [165a. Act of Juno 5, 1911. In force, July 1, 1911. As amended, June 27, 1913. In force, July 1, 1913. Hurd, 1913, p. 2215.] -,. , An amount . from the common "* school fund equal to one-tenth of 5 per annum; a min on each dollar of taxable date IlOnPr nn^ifm.' pr P ert y f the <** and 8Ch o1 10 per annum; (listrict [3> As amen ded, Laws third 5 years, of m 191 * 5 64g _j 5 per 'annum.' Donations, legacies, gifts, etc., Thereafter |30 paid into ' said fund in ' pursu ri anmmu ance of any law now in force or hereafter enacted. [3. As amended, Laws of 111., 1915, p. 648.] Deductions from salaries from date of entrance into service of pension. [5.] In case of discharge be- fore entitled to pension, full amount con- In case of volun- tary resigna- tion before completion of 15 years of service, one- half of amount contributed. [161.] In case of to discharge, full sum contrib- uted. In case of voluntary resignation be- fore comple- tion of 15 years of service, one- half of sum contributed. [10.] 262 TABULAR DIGEST OP PENSION LAWS EMPLOYEES. Beneficiaries. Conditions for pension. Amount of pen- sion per year. Provisions for discontin- uance of pension. Service. Ag-e. Disability. Public school Minimum 25 Minimum Pension awarded ' Sixteen dollars If pensioned teachers, except those in cities and school dis- years of serv- ice in the pub- lic schools of 50 years. [25a.] after 15 years' serv- ice in the public schools of the per annum for each year of serv- ice, total not to because of dis- ability: Pen- sion terminates tricts of more the United United States, oJ exceed $400 per an- when disability than 65,000 in- States, 15 of which at least J num. [26.] ceases. [25c.] habitants where teachers' pen- which have been spent in have been spent in the public sion funds were in operation the public schools of this schools of this State. [25c.] July 1, 1915. State. [25a.] Public school teachers in cit- ties of more Minimum 25 years of serv- ice in the pub- No pro- visions. Pension awarded after 15 years of service fh the Service pension- ers: $400. [158.] Disability pen- No provisions than 100,000 in- habitants. lic schools of the United States, the last public schools of the United States, the last 9 of sioners: A sum proportional to the amount of con- 15 of which which have been tribution as re- have been served in such lated to the sum served in such city. [157.] of $450. [158.] city. [157.] Public school teachers in school districts of not less Minimum 25 years, at least 15 of which must be in dis- In gen- eral, no re- quirement. See addi- Pension awarded after 15 'years of service, at least 9 of which must have Service pension- ers: Not to ex- ceed $400. [8.] Disability pen- No provisions than 10,000 nor more than 100,- 000 inhabi- tants. trict under the provisions of this act. [7.] tional data. been in district under the pro- visions of this act. [7.] sioners: A sum proportionate to the amount of con- tribution as re- lated to the sum of $400. [8.] 263 IN FORCE IN ILLINOIS JANUARY 1. 1916. WIDOWS OF EMPLOYEES. Conditions for pension. Amount of pension per year. Provisions for discontinuance of pension. No provisions. No provisions. No provisions. No provisions. No provisions. No provisions. No provisions. No provisions. No provisions. 264 TABULAR DIGEST OP PENSION LAWS NATURAL CHILD OR CHILDREN OF EMPLOYEES. Beneficiaries. Conditions for pension. Amount of pension per year. Provisions for discon- tinuance of pension. Public school teach- ers, except those in cities ana school dis- tricts of more than 65,000 inhabitants where teachers' pension funds were in operation July 1, 1915. No provisions. No provisions. No provisions. Public school teach ers in cities o/ more than 100,000 inhabi tants. No provisions. No provisions. No provisions. Public school teach ers in school districts of not less than 10,000 nor more than 109,000 inhabitants. No provisions. No provisions. No provisions. 265 IN FORCE IN ILLINOIS JANUARY 1, 1916. Other depend- ents of employees. Additional data. No provisions. No provisions. No provisions. No person while receiving an annuity from any other public school teachers' pension and retirement fund, shall receive an annuity from this fund. [25a.] If teacher who receives a refund afterward returns to teach in public schools, such teacher shall return to fund, within three years, the amount withdrawn with 4 per cent simple interest for the time such sum was withdrawn. [27.] All cities and school districts of the State come under the provisions of this act, with exceptions. [36.] (NOTE. The exceptions are Chicago and Peoria.) Participation is voluntary as to teachers who were employed on or before July 1, 1915, and obligatory on those employed later. [14 and 15.] Funds may be invested in mortgages on unencumbered realty situated in this State of a value of double the loan; bonds of this State, Sanitary District of Chicago, counties, townships and cities of Illinois, and bonds issued by school directors for improving school property. [9. See Hurd, 1913, 72 and 195.] Board of trustees has power to decrease benefits if necessitated by con- dition of fund, provided, such decrease be in same ratio for all classes. [155.] Service outside of such city shall be considered in computing time served for purpose of establishing rate of deduction for benefit of fund. [155.] Teachers not participants who have withdrawn from fund may apply for reinstatement before July 1, 1916, and shall receive same upon payment of full amount of contribution to date, plus 4 per cent interest. [156(a).] Teachers reemployed on or after July 1, 1916, may apply within three years from date of reemployment. [156 (a).] may apply for participation Teachers who become participants in this fund may receive credit for past services by paying amount of contribution for the period of said service, plus 4 per cent interest. [156.] Teachers retired under previous acts have their pensions graduated so as to receive not less than $320 nor more than $400. Funds may be invested in mortgages on unencumbered realty situated in this State of a value double the amount of loan; bonds of this State, Sanitary District of Chicago, counties, townships and cities of Illinois, and bonds issued by school directors for improving school property. [153, see 72, also 195.] If in any school district there is not sufficient revenue from interest and contributions to maintain a teachers' pension fund under the pro- visions of this act, such district may, by vote, establish a fund for retire- ment of teachers over 50 years old, who have taught in the district for at least 25 years. Retiring allowance shall not exceed $400. [14.] Funds may be invested in mortgages on unencumbered realty situated in this State, of a value of double the amount of the loan; bonds of this State, Sanitary District of Chicago, counties, townships and cities in tnis State, and bonds of such school district. [4.] REPORT OF Illinois Pension Laws Commission PART I. Investigations With Certain Comparative Studies PART II. Underlying Principles and Specific Recommen- dations for a Revised Pension Plan PART II 18 P L REPORT OF THE ILLINOIS PENSION LAWS COMMISSION. PART II. PRINCIPLES AND RECOMMENDATIONS. Chapter I : Underlying Principles of a Pension Plan. Chapter II : Outline for a Pension Plan on a Reserve Basis, and Suggested Provisions for Bringing Existing Public Pension Funds in Illinois under this Plan. Chapter III : Proposals for Amendatory Pension Legislation by the 50th General Assembly of Illinois. Chapter IV: Recommendation for Further Study of the Pension Problem in Illinois. CONTENTS. PART II. CHAPTER I UNDERLYING PRINCIPLES OF A PENSION PLAN. INTRODUCTION. PAGE. Scope and urgency of the pension problem 271 Illinois pension systems 272 Unsound condition of pension systems in Illinois 272 FEATURES INVOLVED IN A PENSION SYSTEM. Theory of public employee pensions 273 Who should be beneficiaries 275 Age and length of service required for pension 277 What should be the amount of a pension 078 Method of providing funds for paying pensions [2 80 Ratio of employers' contributions to those of employees '288 Management 284 CHAPTER II OUTLINE FOR A PENSION PLAN ON A RESERVE BASIS, AND SUGGESTED PROVISIONS FOR BRINGING EXISTING PUBLIC PENSION FUNDS IN ILLINOIS UNDER THIS PLAN. Main features 285 Definitions 286 SPECIFIC PROVISIONS OF PROPOSED STANDARD PENSION PLAN. Employees to whom plan should apply 286 Contributions by both employer and employee 287 Reserve plan to be adopted 287 Who are to receive pensions 287 Amounts of pensions 288 Contributions 2S9 Equities protected 290 Pension for disabled employees 290 Pensions for employees injured or killed, but not in the performance of duty 291 Surplus 292 Management 292 Bringing existing pension funds under the standard plan 293 Actuarial computations showing the results to be expected under proposed standard pension plan 295 CHAPTER III PROPOSALS FOR AMENDATORY PENSION LEGISLATION BY THE 50th GENERAL ASSEMBLY OF ILLINOIS. Proposals affecting all funds 299 Proposals affecting Chicago Teachers' Pension Fund 300 Proposals affecting Fund of Municipal Employees of Chicago 300 Proposals affecting Chicago Policemen's Pension Fund 301 Proposals affecting Chicago Firemen's Pension Fund 301 Table showing approximate results for typical employees of above pro- visions, if adopted 302 CHAPTER IV RECOMMENDATION FOR FURTHER STUDY OF THE PEN- SION PROBLEM IN ILLINOIS 303 271 CHAPTER I. UNDERLYING PRINCIPLES OF A PENSION PLAN. INTRODUCTION. The act providing for the Commission requires it to make recommendations, but does not require it to propose a bill for carry- ing them out. The Commission had nevertheless hoped earlier to propose such a bill for adoption by the 50th General Assembly, but it now seems inadvisable to try to do this. The divergent .positions found to exist among different groups of em- ployees interested in existing funds are too marked and the pension problem is too complicated in its various bearings to justify an effort to frame legislation for the general standardization of pen- sion funds until this problem, as it exists in Illinois, has been further studied, with a view to analyzing its various branches and securing reasonable concensus of opinion among those interested as to the general lines of such standardization. The Commission's recommendations correspond with this notion. This chapter contains accordingly what are believed to be the correct underlying principles for pension practice in Illinois. Chap- ter II presents a detailed type plan for carrying out these principles, but recommends that before trying to apply this plan generally the pension problem be further investigated. Chapter III offers for immediate adoption certain changes respecting some of the chief pension funds in Illinois, with a view to improving their condition pending the maturing of measures for their more thoroughgoing treatment. Chapter IV lists specific questions which require further consideration. SCOPE AND URGENCY OF THE PENSION PROBLEM. The importance of pensions for public employees is evidenced by the length of time during which, and the diverse plans under which, they have heretofore been provided, and by current efforts toward their improvement. Such pensions existed more than a century ago in parts of Europe, and have been widely extended there and elsewhere during the last generation. They are characteristic of Australasian govern- ments, and are now found in greater or less degree in practically all the states of this country. The general need for a more thorough analy- sis and logical development of the true principles on which pensions for public employees should be maintained is, at the same time, widely recognized. In 1914 Massachusetts issued a 344-page report on public employees' pensions, with especial reference to the needs of that state ; New York City is now completing a report made at a cost around 272 ,000, concerning such pensions, with a view to improving its own pension systems ; and a great number of bills, designed to amend and extend the pension plans in Illinois, have appeared in the recent legis- latures of this State. ILLINOIS PENSION SYSTEMS. The policy of providing pensions for public employees in Illinois began in a limited way in 1852, was materially extended in the 70's, has been much farther extended within the last decade and has resulted in the existence to-day of 15 pension laws, generally compulsory in terms, under which exist 35 separate pension funds, that now include, or, as options are availed of, presumably will shortly include, over 55,000 State and municipal employees. At the same time, according to the estimates of this Commission shown in Chapter VII of Part I, there are still 22,441 municipal and State employees in the State who are beyond the reach even of any of the 35 funds. The information brought together in Part I of this report shows not only that the various public pension schemes now existing under the laws of Illinois for public employees are inharmonious and often contradictory with reference to each other, but that with perhaps a single minor exception they are financially unsound and moving toward a crisis. It shows the urgent need for the adoption by law of a revised pension plan based on true principles, and for the prompt merging of existing pension systems into that revised plan on terms not too bur- densome to the contributing public authorities or to the contributing employees. UNSOUND CONDITION OF PENSION SYSTEMS IN ILLINOIS. The general condition of pension systems operating under the laws of Illinois may be correctly described as one of insolvency. That is to say, viewed from the standpoint of sound finance and of having the necessary reserves to carry out the payment of pensions as pro- vided in the laws, there are immense deficiencies in the existing funds. In short, the financial provisions are entirely inadequate for paying the stipulated pensions when due. It may be well to emphasize here that there is nothing more erroneous than the common view that so long as the amount in a pension fund is increasing, all is well with it. To be sure some of these funds are increasing, but that is no in- dication of their sufficiency, and it is strange how completely satisfy- ing such increase is to many participants even if the fund is certainly inadequate. The Chicago teachers' pension fund approaches nearer to a con- dition of solvency than any other of considerable size and experience in this State. In fact, if each teacher in Chicago had contributed ever since entering the service as required of teachers at present, and if the Board of Education had set aside an equal amount, as it does at present, and these amounts had been compounded annually at 4 per cent interest, the Chicago teachers' fund would be solvent. It is not solvent because of liabilities accrued at the time when it began to have its present sources of income. On account of such accrued liabilities there is a deficiency whose present value is over $5,000,000. More- 273 over, this deficiency will increase under the present method of opera- tion. The time is at hand, therefore, to put the system on a sound financial basis. Some other funds show a much larger deficiency. The Chicago firemen's fund shows a deficiency having a present value of over $13,000,000, and the Chicago police fund a deficiency having a present value of over $30,000,000. These funds, which are the ones for which we are able to make the most reliable calculations, indicate also the general condition of all the principal funds in the State. This is, moreover, a condition that is sure to grow worse unless prudent and positive measures, involving decided changes, are promptly taken to establish the systems on a secure basis for the future. Fur- thermore, it will become increasingly difficult as time goes on, to pass from the existing unscientific plans to a scientific "reserve" plan as described later, since with the present provisions for revenue and with the present benefits the deficiencies will increase. Moreover, the existing pension systems are so different in their provisions, and taken together present such a haphazard condition, that the task of insuring equitable treatment for different classes of employees and of securing sound plans by slightly patching these sys- tems can not be accomplished. To reach a solution of the pension problem our most promising course would seem to.be to proceed to develop a pension system in line with definite principles which we con- ceive to be fundamental to efficiency in the public service and to the welfare of employees. FEATURES INVOLVED IN A PENSION SYSTEM. The main matters to be considered in working out such a revised pension system are: 1. The theory of public employee pensions. 2. The question of who should be beneficiaries whether em- ployees only, or their widows and children also. 3. The length of service and the age required for a pension. 4. The amount of the pension. 5. The method of providing funds for paying pensions whether the payments should be spread over a long period in advance and accumulated with interest, or be made currently as pensions need to be paid. 6. The ratio in which employer and employee should contribute the requisite funds with which to pay pensions ; and 7. The scheme of management. The principles which should control in regard to these seven items will now be discussed. 1. THEORY OF PUBLIC EMPLOYEE PENSIONS. A Pension System Benefits the Public Service. In theory and it is believed that the theory verifies itself in prac- tice pensions for public employees are beneficial to the public as an employer. Continuity of service is of great advantage to the employer in most lines of effort. It is especially so in the public service, because of the complex relations of that service and the value to it of that knowledge on the part of employees which come only from their long acquaintance with those relations. Pensions make for such con- 274 tinuity. Employees are generally required to remain in the service for an extended period of time, usually from twenty to thirty-five years, before they can receive a pension. If an employee voluntarily leaves the service or is discharged for fault before the expiration of that period, he usually forfeits in whole or in part his pension ex- pectance. The rule for such forfeiture deters employees from leaving their positions voluntarily, and makes them anxious not to give ground for discharge. Pensions tend also to protect the public service from incompe- tence through the continuance in that service of an employee after his period of efficiency has passed. The fact that such an employee has the option of retiring and receiving a pension, especially if this is reasonably ample in amount, encourages him to do so, instead of trespassing upon the kind-heartedness of a department head who might shrink from discharging him. A Pension System Benefits the Employee. A pension system also inures to the benefit of the employee. It tends toward permanency of employment, and thus affords the employee certain prospects of promotion. Its operation naturally draws attention- also to underpaid employees who can not easily make the contributions necessary for pensions, and tends thus to pull up the lower earnings to a minimum sufficient to make such contributions practicable. The chief attraction of a pension system to an employee is, however, that it means a life annuity at the end of service. It means an advantageous investment of his savings to provide for old age. It facilitates his commendable de- sire to meet his family obligations. It is our common theory that the husband and father should* in his period of economic pro- ductivity, provide for the needs of himself and his dependents not only during that period, but for the anticipated later time when his productivity shall have ceased. This result is to be accomplished by thrift by putting aside, month by month and year by year, and investing in some form of productive capital, which he himself shall own, a certain small fraction of income, in order that this ac- cumulation may suffice for the time of need later. This doctrine of saving against old age and the desire to put it into effect are well nigh universal. The actual practice of the doctrine, however, in any consider- able degree, is far from universal and encounters grave obstacles to-day. We even hear emphatic and bitter denunciation of the whole notion of thrift as a practical matter, on the ground that the income of large classes of people is too small to warrant saving, while favorable opportunities for safe and remunerative investment of small savings are not generally open to employees nor are these claims groundless. Not only the wage earner, but to a con- siderable extent the salaried man also, is under a serious handicap to-day in putting thrift into practice. He can not make ad- vantageous investments. In the first place he has ceased to own the tools which he uses, and so hasn't these to dispose of, or to pass on to his son when he can no longer earn. In the second place, he is very greatly impeded under present conditions in ac- quiring that primary and most inviting form of investment, a home. The opportunities open to him to procure and pay for a home adapted to his needs and within his means are limited and wholly unsatisfactory, especially in large cities. In the third place, the public employee, as well as the private, is at a decisive disadvan- tage in seeking to invest his savings safely and productively in the general investment field. The making of paying investments to-day is largely an expert matter, while the employee is not an expert in that line and has neither time nor opportunity to become such. Investments are also made in too large units to meet his case. He may possibly venture into the wretched field of btiilding lot speculation, or petty second-mortgage loans, or alluring get-rich- quick schemes. He is likely in so doing, however, to fare still worse than he would by accepting the meager interest of the postal or some private savings bank, not to mention the risks of the neighborhood type of the latter to which for convenience he naturally turns. A public pension system is designed to meet these prejudicial conditions through the institution of a reasonably re- munerative, financially secure and compulsory plan to enable the employee to practice saving during his productive period. The prevailing opinion, and the only one likely to be adopted for the time being in this State, is that pensions should attach to the relationship between employer and employee, rather than be. administered under a general government scheme including all employees. Since, therefore, the public should admittedly be a model employer in all respects, a public pension system for public employees seems desirable. 2. WHO SHOULD BE BENEFICIARIES. It is our thought that a pension system should be made broad enough to include all public employees on practically permanent tenure who give such long continued service as to amount to what may reasonably be regarded as a life work; that it should include, with appropriate modifications, employees who are injured; and that it should likewise include widows and children. The general practice differs greatly, however, as to these questions, and, of course, the drain upon the pension funds varies greatly according to the inclusiveness of the system. Most systems do provide pensions for injured employees, especially if injured in the performance of duty, but only a minority in this country include widows and children also. As to the propriety of insuring an income to employees during disability due to injury received in the performance of duty, there should be no question. A question does arise, however, as to whether this should be secured by a pension system, sustained by contributions from both employer and employee, or should be met by the employer under the provision of a workmen's compensation act. The present Workmen's Compensation Act in this State seems to go upon the theory that the charge should fall upon a pension system, since it purports to provide that no public employee can 276 recover under that act for an injury for which he is entitled to a pension. Reason would seem to demand that this provision be reversed. An injury received by an employee in the performance of duty should properly be charged upon the business, and be met accordingly under the Workmen's Compensation Act. The Com- mission has felt it to be expedient to provide for a pension to such an injured employee and to his widow and children in case of his death, on the ground that adequate provision is not made under the Workmen's Compensation Act. We are clear, however, that the liability should be met primarily under the Workmen's Com- pensation Act and that the pension should be reduced by the amount received under that act. It seems expedient also to make certain limited pension pro- visions for the employees injured while not in the performance of duty although this, like the case last considered, involves an ex- tension of the pension principle beyond what is strictly its field, and into the fi'eld of accident insurance. Widows and Children of Deceased Employees. On the theory that the typical public employee is the head of a family and that the object of a pension is to provide for his needs in old age, and since the family, including children under the age of self-support so far as there are such, is regarded as a unit, it is clearly logical, and it seems to the Commission wise as a matter of social policy, that pensioning arrangements for the typical em- ployee should be made to include his widow and children, in case he should die leaving such. It is recognized that the inclusion of these dependents very greatly increases the amount to be paid in pensions. The practice of paying pensions to widows and children of certain employees doubtless had its origin in the feeling that provision should be made for families of men who lose their lives in the performance of duty. Our investigations show also that cases of this precise sort do not constitute a sizable financial burden on the pension systems cre- ated under the laws of Illinois. These investigations show on the other hand, however, that, under certain systems, widows' pensions have been so extended beyond that class of families, that the total of pensions to be paid the widows exceeds the total of those to be paid to retired employees. Thus, in the case of the Chicago police pension system the pensions being paid to widows at present amount to a little more than those being paid to former employees, and in the ultimate normal state, they will cost about 58 per cent of the total of all pensions. In the case of the Chicago firemen's pension system the amount of a widow's pension is less than under the police system, but still the cost of widows' pensions will in the ultimate normal state exceed somewhat the cost of pensions for retired fire- men. When compared with the common practice in cities in other states, the pensions paid per capita in Illinois to widows of policemen and firemen are on an unusually expensive basis. It is very common in other states to keep up the original practice of paying a pension to a widow only when her husband lost his life in the performance 277 : duty. When pensions are granted instead, as in Chicago, to the widows of policemen and firemen whose deaths are not due to injuries received in the line of duty, it is usual to specify that the pension is not to be greater than a certain amount, which is much less than the amount paid under similar circumstances under the laws of Illi- nois. As a rule, the amount specified is $20 or $25 per month. For employees who lost their lives in the performance of duty, there is no question but that it is in harmony with good public policy to make liberal provisions for their widows and dependent children ; but when the full benefits provided for such widows are extended, as they have been in some funds in Illinois, to all widows without regard to the cause of death, and with little or no regard to the length of service rendered by the employee, we are at once making an expensive system and one that does not seem equitable. To illustrate, under police funds, if a husband dies from any cause, after ten years of service, the widow gets a pension of half his salary, except that the pension shall not be less than $600 nor more than $900. If he dies before complet- ing ten years of service, the widow gets no pension ; but if he dies just after ten years of srvice, she gets as much in pension per year as, and much more in total amount than, the widow of a man receiving like salary who was long in service. The iniquity of such a provision is obvious. Some change should be made to reduce the burden of widows' pensions on the po-licemen's and firemen's funds. Certain rea- sons exist for the payment of pensions to widows on a basis that does not limit such pensions to cases where the employee loses his life from injuries received in the performance of duty, but such extension should be made with due regard to the cost involved, and in such a way as to provide a graduated scale of pensions depending on the accumulations to the credit of the employee. The children of policemen and firemen in Illinois are pensioned .on distinctly different plans at present. For policemen, both parents must be dead, and then the pension to the family of children under age of 16 is the same as it would have been to the widow if living. This entirely disregards the number of children in the family. On the other hand, the firemen's fund pays a certain uniform amount to each child under age 16, while the mother is living, and somewhat more if both parents are dead. The latter plan seems to be the more equitable of the two. It should be stated that the approval of widows' and children's pensions rests mainly on the desirability of making provision for the family as a unit. Pensions to such dependents do not aid, except per- haps in a very indirect way, in relieving the service of incompetent persons, and therefore one of the main reasons for pensions for em- ployees does ijpt apply to widows' and children's pensions. In short, pensions to dependents after the death of the employee are really in the nature of compulsory life insurance. 3. AGE AND LENGTH OF SERVICE REQUIRED FOR PENSION. Among the pension systems of Illinois, there are some which prescribe merely a period of service, such as 20 or 25 years, as a requirement for a pension. There are others which prescribe both a 278 period of service and a minimum age for retirement. Thus, the Illi- nois State Teachers' Pension and Retirement Fund provides that the person must be at least 50 years old to receive the pension. The situation in this respect is well stated on the last page of Chapter III of Part I, which shows how haphazard are these provisions in regard to age and service, even when the character of the employ- ment is the same. In foreign countries where pension systems have been long in operation, so far as we have been able to learn there is always a minimum age for retirement specified. The minimum age for public employees is usually fixed at 65, but in some cases at 60, and for women in New Zealand at 55. It seems clear that some of the greatest abuses of a pension sys- tem come from the failure to specify a proper minimum age of re- tirement. With only a service requirement of 20 or 25 years, a con- siderable number of men enter upon pension at age under 50, and they are apt to be the most capable men in the service, as such men may accept pension on, say, half salary, and seek employment elsewhere to advantage. The men who accept pensions at ages below 50 live, on the average, so long that they get from the fund much more than their equitable share, and they become the real burdens on the pension system. It is both demoralizing to the public service and inordinately burdensome to a pension system to allow men to retire on pensions in the prime of life. To carry out the principle that a pension is to provide for the needs of an employee after his period of efficiency has passed, it is necessary to determine upon some average as marking the end of that period. There will, of course, be exceptional cases where individuals are well qualified to continue in their accustomed work beyond that age, and will do so. It is possible, however, to determine upon some age which will approximately mark the end of the reasonably produc- tive period of the average employee, and that should obviously be fixed as the minimum age at which employees should be eligible to receive a pension. This minimum age for retirement on pension varies to some ex- tent in different services, according to the demands of the service. For example, the agility required of firemen makes it appropriate that they should retire from service earlier than public employees^ in general. While there is no question in the minds of the Commissioners as to the desirability of prescribing some minimum age for retirement in addition to a period of service, the Commission has encountered diffi- culty in the selection of proper ages in the different kinds of service; for it is necessary, on the one hand, to select ages that are not so high as to defeat the purposes of a pension system in promoting efficiency ; and, on the other hand, ages that are not so low as to lead to retire- ments on pension at ages when employees should render most valu- able service. 4. WHAT SHOULD BE THE AMOUNT OF A PENSION. The principle to be applied in determining this question is deemed to be this, namely : A pension should be of sufficient amount to pro- 279 le in a reasonable manner for the necessary wants of the beneficiary after the age of efficiency has passed. This amount varies to some extent, however, in accordance with the habits of life previously fol- lowed. The Commission has found a very strong desire among em- ployees in certain quarters for a pension uniform in amount for all employees concerned, irrespective of their relative remuneration, and for contributions by employees equal in total amount. It is obvious that difficulties will be encountered in any effort to provide a uniform pension reasonably adequate for all concerned, not burdensome upon the lower paid ranks in respect to the required payments, and available for persons entering service at different ages and remaining for different lengths of time, and to do this on the basis of equal contributions from all. The Commission is strongly of the opinion that a certain minimum pension, adequate for the necessities of existence, should be secured for all beneficiaries. At the same time we deem it reasonable that a pension system should be arranged in recognition, to a certain degree at least, of the inequali- ties in remuneration and the variations in standards and habits of life which actually exist among public employees. It has seemed desir- able, therefore, that a pension plan should provide: 1. For a minimum pension, the same for all beneficiaries who have attained the prescribed length of service and age of retirement. Its amount should be sufficient to meet the necessary wants of the lower paid ranks of the employees concerned ; and the necessary funds therefor should be made up by contributions partly from the employer and partly from the employee, but in considerably larger part from the employer than from the employee. 2. For art extra or sur-pension, to be added to the minimum pension for the higher paid employees up to a certain limit of salary who have attained the prescribed length of service and age of re- tirement. Its amount should correspond to the theory that their salaries and habits of life would imply a somewhat larger expenditure in their later years than in the case of recipients of lower pay; and the necessary funds therefor should be made up by contributions partly from the employer and partly from the employee, but in lesser amount from the employer and in greater amount from the employee than in ^ the case of the minimum pension. It is also believed that the dis- crimination indicated, in favor of the lower paid employee, in the relative amounts paid respectively by the employer and employee for the minimum pension and for the sur-pension the employer contri- buting more generously toward the minimum than toward the sur- pension is on the whole expedient. It should also be added that while a young employee, receiving a very modest salary, would, while that salary Continued, have an expectancy of, and be contributing to- ward, a minimum pension only the contributions of the employer being much larger than his yet as his salary rose above the limit for the minimum^ pension he would then begin to contribute toward, and would come into the expectancy of, an extra or sur-pension, his con- tributions and^ expectancy advancing by steps as his salary advanced up to a certain limit the employer, however, contributing less gen- erously in proportion than in the case of the minimum pension. The 280 provision of a minimum pension designed to assure a minimum stand- ard of comfort for public employees generally in their old age is be- lieved to be an appropriate one to be maintained by a governmental authority as a model employer, and one which represents a wholesome social policy. 5. METHOD OF PROVIDING FUNDS FOR PAYING PENSIONS. There are two recognized methods of providing funds from which pensions are to be paid the "cash disbursement" plan and the "re- serve" plan. The "Cash Disbursement" Plan. Under this plan, the outlay for pensions is to be provided cur- rently as payments to pensioners become due. No funds are set aside to accumulate at interest, and the pension burden for present employ- ees is simply unloaded on the succeeding generation with the hope that the authorities at such time will be both disposed and able to pay such pensions on some reasonable basis. The "Reserve" Plan. This plan is well described as a "get ready for the future" plan. It involves the setting aside, during the active service, of definite amounts, properly calculated to provide the benefits, and usually ex- pressed as a percentage of the current wages or salary. The amounts so set aside are accumulated at interest and form a reserve fund out of which pension disbursements are made as they fall due. The "re- serve" plan recognizes very clearly, and makes it understood by em- ployer and employee, that compensation for service involves, besides current pay, the amount that should be set aside at the time service is rendered to provide a pension for the employee when he becomes inefficient after having satisfied certain conditions. Thus, each gener- ation of taxpayers pays its own obligations for service rendered. Fur- thermore, the employee's equity in the scheme is well known at any time on account of the reserves held to his credit. Unscientific Plans in Illinois. By an unscientific plan, as the term is here used, we mean one under which certain funds are created without making provision that these funds shall be adequate for the purpose for which they are pro- vided. We shall find it convenient to refer to such plans as "unscien- tific fund" plans. The pension systems created under the law of Illi- nois are, for the most part, operating under unscientific fund plans. Such plans have in some cases taken on practically the form of a "cash disbursement" plan. For example, the system for Chicago firemen is operating on practically a "cash disbursement" basis, as there was in this fund on January 1, 1916, only $3,101, whereas the annual disbursements for pensions to retired firemen and their widows and children will for the year 1916 probably amount to approximately $370,000. Similarly, the system for Chicago police in service prior to January 1, 1916, is operating practically on a "cash disbursement" basis. For employees entering the police service on or after January 1, 1916, the law provides that the "reserve" plan shall be adopted. 281 Our investigations reported in Part I show that the character of our pension systems in Illinois could hardly be looked upon as the result of a definite pension policy. On the contrary, these systems seem to have been created without regard to the extended, costly and embarrassing experiments that have been tried. The many experiments that have been carried out in foreign countries and those even now on trial in America, have abundantly demon- strated the consequences of such plans. To continue them is simply to lead into situations that, in general, grow constantly worse, and end in disappointment and failure for many deserving employees who at pensionable age find that funds are not available to pay their pensions. Hence in considering permanent future pension legislation, we should withhold approval from all "unscientific fund" plans. Advantage of the "Reserve'' Plan over the "Cash Disbursement" Plan. Under the "reserve" plan, the advantage of compound interest over a long period of time is secured, which reduces the apparent cost of pensions to less than one-half the apparent cost under the "cash disbursement" plan. The same amounts may actually be paid- in benefits, but the pension cost under the reserve plan re- quires that a much smaller percentage of the pay roll be set aside currently to provide future pensions than is ultimately necessary under a cash disbursement plan. For example, if the Chicago police system operates on a "cash disbursement" plan in the future, and continues its present provisions in regard to pensions to employees and their widows and children, it will require in the ultimate "nor- mal" state-^the time when the system will be carrying its normal load as a going system that 34.3 per cent as much as the pay roll for wages and salaries be contributed currently for pensions. If, on the other hand, the system were o'perated on the "reserve" plan, the current annual contributions to be accumulated to pay the same pensions would amount to only 13.8 per cent as much as the pay roll for wages and salaries. Similarly, the system for the Chicago firemen will, in the ultimate "normal" state, require on the cash disbursement plan 36.6 per cent as much for pensions as for salaries. Our interpretation of these facts is briefly that an item for pensions of approximately 35 per cent of salaries and wages should be regarded as too large an expenditure for pensions, and that we should avoid approaching such a state of affairs by adopting a "reserve" system. Furthermore, the accumulation of reserves constitutes an im- portant safeguard against the repudiation of pension obligations when the current pension payments become so large in proportion to the pay roll as to constitute a serious burden. While there may be a difference of opinion on the question, it seems highly probable that if the time comes, as it surely will under the plans in opera- tion, when the public treasury must furnish considerably over 30 per cent as much currently for pensions to policemen and firemen and their widows as for salaries, there is very great danger of such 282 tnodification as will bring serious hardship. It is certain that the "cash disbursement" plan has nothing to insure the permanence of the system, while scientifically calculated reserves do much to in- sure permanency. To be sure, changes will no doubt be made from time to time under* a "reserve" plan, but they will necessarily be made so as to carry forward to any new system the credits of an employee in the existing system and thus to safeguard his equity in the fund. Contributions for Pensions are Essentially a Part of Wages and Salaries. Whether the contribution to a pension fund be taken wholly from the employee's wages or salary, or be paid wholly by the em- ployer, or be derived in part from each, these contributions are in all three cases to be regarded as in reality a deduction from wages or salary. It is the opinion of students of the pension problem that the existence of a pension system in connection with any position or employment is taken into account by both parties to the contract of employment, and that, broadly speaking, wages and salaries actually paid are in due course reduced below what they otherwise would be by the amount of the total contributions from both the em- ployer and employee to a pension fund. The employee will thus pay for his pension by deductions from his wages or salary, whether he is conscious of it or not. Indeed it is quite possible that with a sound fund in existence the reduction in wages and salaries may in time materially exceed the amount of the total contributions, owing to the advantages of such a fund to the employee under present eco- nomic conditions. This consideration further emphasizes the ad- vantage to the employer of having such a fund established. Table to be Used in Computation. In our actuarial calculations in Part I to determine the probable future cost of pensions, we found, for certain funds that had adequate experience, the rates of mortality, rates of withdrawal from the service by resignation or dismissal and rates of retirement on pensions at various ages, and used these in the prediction of future costs. For the tentative plan which we are proposing, it is clear that the rates of retirement on pensions that have been experienced would not apply, nor do we need for the proposed plans to know the rates of retire- ment. Neither do we need to know under our proposed plans the rate of withdrawal from the service by resignation or dismissal. We need to know rates of mortality, and in this we are mainly concerned with rates at ages above the minmum ages of retirement from service, although on account of pensions to widows and to certain disabled em- ployees, we have some need for rates at lower ages. While policemen and firemen show low rates of mortality below age forty, they show, for ages above the minimum ages proposed for retirement from service, rates that are higher than those in the Ameri- can Experience Table of Mortality. Similarly, the American Experience Table, from age 55 upward, gives rates of mortality that are lower than those for male teachers who have been on the pension roll in New York City. The rates of 283 lortality for widows and for female teachers who have been on pen- sion rolls in New York are lower than the rates given in the American Experience Table. Our experience with mortality among Chicago teachers on pensions is too meager to draw a conclusion. When we view the group of employees as a whole, and when we bear in mind that under our tentative plan a certain saving is effected because em- ployees will stay in service beyond the minimum age for retirement, it seems best to compute annuities on the basis of the American Ex- perience Table in illustrating the operation of that plan in Chapter II. 6. RATIO OF EMPLOYERS' CONTRIBUTIONS TO THOSE OF EMPLOYEES. As set forth in the chapters of Part I dealing with the history of pensions in Europe and in Illinois, practice differs greatly as to the amount of the contributions of the employer in comparison with those of the employee to provide for pensions. At the one extreme are found a considerable number of instances where the employer contributes the whole amount, and at the other extreme a lesser number of cases where the employees contribute the whole amount. Most cases, however, fall between these two extremes, but in these cases the ratio of contributions as between employer and employee varies greatly. As a general principle, it seems desirable that these contri- butions should be shared by both employer and employee: first, because this relation is a natural basis for the joint management of the pension system as between the two parties, which is believed to be wise ; and, second, because when both parties contribute, each is certain to have a more definite and real sense of what has thus to be diverted from wages or salaries to provide the requisite funds for paying pensions than would be true if only one of the two parties contributed. As to what should be the ratio which should exist between the contributions of the employer and the employee there is at least a certain superficial propriety in having each contribute equally ; and the Commission recommends this ratio not for the minimum but for the additional or sur-pension, specified above for the higher paid employees. Inasmuch, however, as the contribution of the employer is naturally regarded by the employee as more or less in the nature of a bonus, and tends, therefore, to encourage the em- ployee, as a means of securing such bonus, to sustain his own con- tributions, even though, owing to a low salary, this may at times mean a burden difficult for him to bear, it seems wise to increase this encouragement by providing that in the case of a minimum pension, designed primarily for the lower paid employees, the employer should contribute more than the employee. The principle that a larger contribution should be made by the em- ployer in this case will probably commend itself to the public also on the general ground that it will tend to aid those most in need of aid. Furthermore, the Commission feels that there is special ground for making the employer's contribution rather liberal as a help toward providing, in a revised pension system, for the heavy 19 P L 284 liabilities resting upon the existing pension systems, as explained above. Refunds of Contributions. When an employee, after contributing to a pension fund for any time, is separated from the public service by resignation, dis- missal or death, an equity in the form of a pension expectation exists, and it is unfair not to recognize this fact. If his direct con- tributions are returned with interest at 4 per cent, he may well regard his contributions as put into a savings institution. And since the em- ployer fails in such cases to get that long continued service which is one of the chief objects for which he contributes to pensions, it seems appropriate that the contributions of employer should revert to the credit of the employer. It is clear from the experience of the civil service employees of Great Britian that we ought to treat the direct contributions of em- ployees as their savings to be returned when they give up their pension expectations. With a system in which contributions are returned with interest, one of the main objections to . substantial direct contributions from employees is removed. Much of the dissatisfaction with con- tributory civil service pension laws, that have been long enough in operation to test the effect of the service, arises out of the forfeitures that are experienced when such refunds are not made. 7. MANAGEMENT. With a view to utilizing the special knowledge and interest of the beneficiaries under existing pension systems, and recognizing also that the problems arising in connection with the provision of pensions for one class of employees often differ materially from those for an- other class, the Commission deems it advisable that the more import- ant existing pension systems which are now under separate manage- ment, should continue under separate management. It is likewise felt to be desirable, in accordance with our recommendation that contribu- tions for pensions be made in part by the employer and in part by the employee, that the administration of pension systems should be car- ried on by representatives of both these parties. We feel it equally desirable too that the administration of the different systems which we think should, if possible, be reduced very much below their pres- ent number of 35 should be unified, not only by having the State Superintendent of Insurance prescribe forms for their records and re- ports, but also by having the same chairman for each of the important Chicago pension boards, and one or more other members common to these boards. Details of the proposed plan are set forth in the follow- ing chapter. 285 CHAPTER II. OUTLINE FOR A PENSION PLAN ON A RESERVE BASIS, AND PROVISIONS FOR BRINGING EXISTING PUBLIC PENSION FUNDS IN ILLINOIS UNDER THIS PLAN. The purpose of this chapter is to set forth the concrete provisions of what might be called a standard pension plan for State and muni- cipal employees, in accordance with the principles presented in the foregoing chapter, and to indicate a feasible method for placing the existing public pension funds in Illinois, on that basis. The figures employed in this chapter which refer to terms of service, age, amounts of pension and amounts or ratios of contribu- tions by employers and employees are used for purposes of illustration rather than as definite recommendations. The plan includes the following as its main features : 1. Contributions are required from both the employer and the employee, and in amount sufficient to place the pension fund on a reserve basis. 2. All employees who have completed a specified minimum per- iod of service and attained a specified minimum age, receive a speci- fied minimum pension. Toward the cost of this minimum pension the employee contributes one-fourth and the employer three- fourths of the necessary amount. Employees drawing $1,000 or more in sal- ary receive an additional or sur-pension varying in amount with salary, all salaries above $2,500 being counted as of that sum. Toward the cost of this sur-pension the employee contributes one-half and the employer one-half. Employees who have fulfilled only in part the conditions in respect to contributions, period of service and age for minimum or sur-pension, are protected in their equities. Employees disabled in the performance of duty receive full pen- sion reduced by the amount of any recovery under the Workmen's Compensation Act. Those disabled otherwise than in the performance of duty receive certain equities. All employees, or their representatives, receive in pension or re- fund at least all their contributions, with interest. Pensions are provided for widows and children, although such pensions need not be included in the standard plan. 3. A scheme is proposed for unified administration of different pension funds. The method proposed, for bringing existing pension funds under the foregoing plan involves the gradual accumulation of a fund to meet the accrued liabilities, by. requiring, for' a period of years, greater 286 payments from present employees and from the employer than are required from new entrants under the proposed standard system. DEFINITIONS. The following words and phrases shall, unless otherwise stated, have the following meanings in the succeeding provisions: (a) A "pension" means an annuity. (b) A "service pension" means a life annuity to an employee, beginning at or after the minimum age of retirement. (c) A "minimum pension" means a pension of a fixed amount, to which all employees; or all in a specified service, shall be entitled, who have completed the minimum required length of service and attained the minimum age of retirement. (d) A "sur-pension" means a pension in addition to a minimum pension. (e) "Minimum age of retirement" means the age at which the employee in the particular service shall be entitled to retire and re- ceive a service pension. (f) "Disability" means a disability disqualifying an employee for service. (g) "Employer" means the state, county, city, town, village, or district from which the employee as such receives salary or wages. (h) "Interest" means interest compounded annually, and unless otherwise specified, at the rate of 4 per cent per annum. SPECIFIC PROVISIONS OF PROPOSED STANDARD PEN- SION PLAN. 1. EMPLOYEES TO WHOM PLAN SHOULD APPLY. All State and municipal employees in Illinois, so far as their per- manency and the manner of their grouping will allow, shall be included under this pension plan, by appropriate legislation which shall be ad- justed to such groupings as is practicable, and which shall involve the further provisions indicated in the sections below. NOTE. The permanency required should be that assured to public school teachers under the certificate plan and to other employees on civil service tenure. Employees need also to be so situated that not less than perhaps a minimum num- ber of 500 should be associated in any independent pension plan, any smaller number being insufficient for reliable computations as to future pension cost. It is important to determine what is the best practicable plan of grouping public employees for pension purposes. Two principles need to be kept in mind in this connection. One is that for these purposes there are certain advantages to be derived from associating together under a given pension plan employees whose circumstances of employment are similar. The second is that the larger the number of employees included in a pension system, the greater the economy of administration and the more reliable the actuarial computations which can be made concerning future 'costs. A great number of different classifications of public employees for pension purposes is possible. There are in Illinois at the present time three types of such classifications. One is illustrated by the State teachers' pension fund. This includes under a single pension plan all public school teachers in Illinois other than those in two excepted cities. These teachers are employees in one kind of service, but are scattered in a great number of local political areas of different sizes ; yet they are all included under one pension plan. The second is illustrated by the Chicago policemen's fund. In this case the employees are all in one departmental service and one political area. The third is illustrated by the Chicago municipal employees' pension fund. In this case the employees are drawn from a variety of departmental services rep- resenting almost the entire field of city government, but all belonging to one political area. 287 No case is made out, or indeed being urged, for changing any of the three illustrative instances mentioned. In view of the fact, however, that of the 35 independent pension funds now existing in Illinois at least 30 include fewer em- ployees than the minimum 500 above mentioned, it is not only desirable but es- sential, for financial soundness based on actuarial knowledge, to effect combina- tion in some manner among these groups, so that no separate pension system shall fall below this minimum in number of employees. Aside from the 55,000 employees related to the 35 pension funds mentioned, there are also something over 22,000 other employees whose need of pensions is presumably equally great, but who are now beyond the scope of any existing fund. Whether the combination indicated should be secured by grouping under one fund the employees in all services in a given political area, or by grouping all employees in the same service in a great number of political areas, or by some other method, is a question which should be determined after a more extended study of the subject than this Com- mission has been able to make. 2. CONTRIBUTIONS BY BOTH EMPLOYER AND EMPLOYEE. Contributions to the pension fund shall be made in part by the employer and in part by the employee. NOTE. In some public pension systems the contributions are made entirely by the employer, in others entirely by the employee, but in most they are made partly by the employer and partly by the employee. The Commission re- gards all these contributions, from whichever party received, as essentially de- ductions from salary or wages. It is felt accordingly that, in the long run at least, salaries and wages actually paid in a service where a pension system exists will be lower than in a corresponding service where a pension system does not exist, by the amount of the contributions made to the pension system and irre- spective of whether the contributions are made by the employer or the employee. At the same time, the plan of having contributions made from both the employer and the employee tends to insure in both parties a greater degree of desirable interest in, and a greater sense of responsibility for, the fund than would other- wise exist. 3. RESERVE PLAN TO BE ADOPTED. Such contributions shall be held to the credit of the individual employee and shall be sufficient in amount to provide, on the reserve basis, for the payment, when due, of such pension as shall be payable from the fund. NOTE. The reserve system proposed implies that the contributions from the salary of each employee, together with the cerresponding contributions, hereafter specified, from the employer, shall be held and accumulated with interest to the credit of such employee until the minimum age of retirement, and be then available to be drawn upon for such pension as their amount will at that time provide. This reserve plan involves the keeping of an individual account with each employee. The reserve plan has not been adopted in most public pension funds, but it has been alleged or supposed by the beneficiaries to be in effect in respect to many such funds. Moreover, it is regarded by the Commission as the only plan by which the financial soundness of a pension fund can be assured and the proper payments for public service be made at the time they are rendered, instead of being left for payment at some later time, with no certainty of their being actually paid at that time. 4. WHO ARE TO RECEIVE PENSIONS. From this fund pensions shall be payable as follows: To em- ployees from whose salaries deductions for the fund have been made as provided below, and to their widows and children. When employees have completed 20 years of service and attained the age of 55, or at any time after they have fulfilled these conditions, they shall be entitled to receive from the fund the minimum pension specified below, and any sur-pension for which contributions have been accumulated as provided below. If an employee who is receiving or entitled to receive such pen- sion or sur-pension, is a male and dies leaving a widow, to whom he was married before he was of age 55, she shall be entitled to receive thereafter the widow's pension specified below. 288 If an employee, entitled to receive such pension or sur-pension, dies leaving one. or more children, each child shall be entitled to receive the child's pension specified below. NOTE. This section states the chief requirements for eligibility to pension in the ordinary case, and also names the persons who are to be beneficiaries in that case. As to those requirements, pension practice differs. In the majority of cases, however, two are insisted upon: namely, the completion of a definite and considerable 'period of service, and the attainment of a specified and more or less advanced age. These two requirements are designed, among other things, to induce continuity of service and to provide definite bases for pension calculations. These basic provisions are .adjusted according ' to the prevailing practice of the service and according to the requirements of the great majority of employees. Not a few exceptional cases, however, must arise where for various reasons the employee is unable to fulfill these requirements, although he has more or less closely approximated that result. The question of how to meet the equities in- volved in these cases is a problem of no little difficulty, and one which requires careful study of possible graduations and adjustments under this plan. With a requirement, for example, of 20 years' service as a prerequisite for eligibility to pension, the precise provisions which should be made to conserve the equities of persons who have served somewhat lesser periods involve questions of obvious importance, as well as difficulty, and these questions are among those which the Commission has indicated as demanding 1 further study. Three classes of persons are specified to receive pensions : namely, the em- ployee himself, and also his wi'dow and children. The practice in public pension systems at the present time varies as to the inclusion or the exclusion of widow and children, and this variation to a considerable extent corresponds to different services. Pensions are provided for widows and children quite generally in this country in pension funds for firemen and policemen. They are quite generally lacking in pension funds for teachers and other public employees. It is obvious that, in so far as a pension system is designed to provide for the actual needs of the employee and his dependents after his period of active service, pensions should be provided for widow and children. On the other hand, in so far as a pension system is regarded as designed solely or primarily in the interest of efficiency in the public service, in certain service at last such pensions contribute much less toward that result than do pensions for the employee himself. Such pensions are included in this standard plan to make the plan sufficiently inclusive to cover all cases and also to bring it in. line with progressive social policy in general. It is not intended to imply, however, that a pension plan which omitted pensions for widow and children should necessarily be regarded as deficient. 5. AMOUNTS OF PENSIONS.' A minimum pension shall be $400.00. A sur-pension shall be such amount as the contributions made therefor, as prescribed below, will provide, when the employee is of age 55. The widow's pension if she is 5 years younger than her husband shall be two-thirds the amount of the minimum pension and of any sur-pension which her husband is receiving or is entitled to receive at the time of his death. If the widow is older or younger than stated,] her pension shall be increased or decreased in amount depending on what can be provided in pension by the then accumulated fund for a widow's pension. A child's pension shall, if the mother is living, be $10.00 per month to the age of 18, except that it shall be only $5.00 per month 1 between the age of 14 and the age of 18, when the child is not, attending school ; and if the mother is not living, the child's pension! shall in all cases above specified be $5.00 more per month than the] amounts stated. NOTE. The theory set forth in Chapter I is that, under existing variations in salary, pensions should vary to some extent accordingly, but that a certain mini- mum amount to provide for security in old age should be insured to all empl included in the pension system. The minimum of $400 00 taken for illustrative purposes above has the ad-< vantage of being the amount of the pension now provided for in the largest class of public employees; namely, the public school te.-u-hers, who comprise nearly hall of the total number of State and municipal employees in Illinois. However, the; requirement that, for employees receiving a thousand dollars or more, a fund for an additional pension shall be accumulated, but a less percentage of which shall 2S9 be contributed by the employer, will make pensions in actual practice vary from the minimum of say $400.00 to maxima as shown in the illustrative calculations at the end of this chapter. Under this section funds will be accumulated as if each male employee has a v ears younger than himself at the time when he reaches 55. Clearly if his \\itV is relatively older than is indicated by our .assumption, a larger pension th;m t\vo-il.i'-.ls of the pension for an employee can be provided for her with the funds available; whereas, if she is younger than is indicated by our assumption, Man two-thirds of the pension for an employee is all that can be provided for ith the funds available. The actuarial difficulties encountered in making, in advance, reliable de- lenn mat ions of the cost'of children's pensions, are so great and the amount in- volved is so comparatively small, that it seems good practice to allow the cost of children's pensions to be borne entirely by the employer. 6. CONTRIBUTIONS. (a) For Minimum Pension for Employees. From the salary of each employee 35 years of age or less, when this .plan is inaugurated, and from the salary of each employee there- after entering the service at 35 years of age or less, a certain sum shall be deducted by the employer each month and placed in the pen- sion fund. This sum shall be one- fourth of the amount which, with interest, would be necessary to accumulate, in equal monthly amounts, a fund sufficient to provide such employee at age 55 a pension of $400.00, and if such employee be a male, then sufficient to provide also a widow's minimum pension for a wife counted as five years younger than himself. The employer shall contribute each month to the pension fund three times the amount so deducted from the employee's salary. (b) For Suspension for Employee and Widow. If the employee is a male and receives $1,000 or more in salary, all salaries above $2,500 being counted as of that sum, the employer shall deduct from such salary and place in the pension fund, an addi- tional amount which, added to the deduction from salary already pro- vided for in this section, would equal three per cent of the total salary. The employer shall then contribute an equal additional amount, and these two additional amounts shall be accumulated until the employee is of age 55, to provide at that time such sur-pension for himself and such sur-pension for a widow as the amounts so accumulated will, at that time, provide. If the employee is a female, the two addi- tional amounts mentioned shall be reduced by the amount required for the widow's sur-pension. NOTE. The plan (a) above applies only to those employees who are not over ars old when, either as present employees or as future entrants, they should come under this pension plan. This limitation corresponds to the requirement in n 4 above that to be eligible for pension an employee must have completed .'st I'n yr-ars of service at age 55. It will be understood that the employees intended in (a) above would not include any who were already contributing to some then existing pension fund. The special method recommended for bringing an existing fund into conformity with the standard plan herein presented is dealt with further on. It is provided above that for the minimum pension designed especially for the lower paid employees, or as a basis of contribution during- such period as they be lower paid the employer shall contribute three times as much as the employee. On the other hand, for the employee who receives a higher salary and presumably adopts a corresponding plan of living expenses, an additional or sur- pension is provided, but toward this the employer contributes not three times as much as the employee, but the same amount as the employee ; and no salary for the purposes of this sur-pension can be treated as being more than $2,500. The ' al consideration of social policy on which these provisions for a minimum pension and a sur-pension rest are set forth in Chapter I. pages 278 and 279. The three per cent specified will, in the case of employees entering the service at the customary ages and remaining until age 60, yield in minimum and sur-pen- sion a total amount not far from the prevailing standard in several of the im- 290 portant existing pension funds. If the younger age of retirement is adopted, say 50 or 55, this percentage would need to be raised correspondingly perhaps to four per cent or five per cent. This phase of the subject is concretely illustrated in the computations shown on pages 295 to 298. 7. EQUITIES PROTECTED. (a) Refunds. An employee separated from the service, or his representatives, shall at any time be entitled to receive a refund equal to all the de- ductions theretofore made from his salary, with interest not beyond age 55, less, however, any amounts, with interest not beyond age 55, theretofore received by him in pension for reasons other than disa- bility incurred in the performance of duty. The taking of such re- fund cancels all rights of the employee or his dependents in the pen- sion fund. If an employee received such refund before age 55, the contri- butions toward his pension account theretofore made by the employer, with interest, shall be held to the credit of the employer and applied in reduction of what would otherwise be the employer's contributions in this service the following year. At age 55, any unmarried male employee still in service or on pen- sion shall be entitled to receive a refund of the amounts of the de- ductions theretofore made from his salary toward a widow's pen- sion, with interest. (b) Retirement after 20 years of service before age 55. If an employee retires after 20 years of service, but below the age of 55, he may continue up to that age to pay to the fund monthly an amount equal to the deductions being made from his salary for the pension fund at that time, plus the corresponding contributions re- quired from the employer. He shall then be entitled, at the age of 55, to the same pension rights for himself and his widow, in case there should be such, as if he had continued in the service to that time. NOTE. The gist of the first paragraph in this section is that all employees or their representatives shall receive back in pension or in refunds their total contributions, with interest to age 55, if they continue so long in the service. The provision in (b) above, allowing the employee who has served 20 years, but is not 55 years old, to avail himself of certain conditions not only of deduc- tions from his own salary, but of the contributions made by the employer, in- creases somewhat the flexibility of the system, and without financial injury to the fund. Additional flexibility could be secured by permitting the employee who has served the required period, but has not attained age 55, or indeed an employee who has served somewhat less than the required period, to retire and receive such pension as the fund then to his credit would purchase. Such permission granted unconditionally would undermine the essential object of a pension system in so far as it is directed to insuring pensions adequate in amount for old age. The ad- visability of granting such permission, however, subject to certain conditions, is one of the questions which merit further study. 8. PENSION FOR DISABLED EMPLOYEES. (a) If an employee from whose salary deductions have been made, as provided above, but who has not reached the age of 55, is disabled in the performance of duty, he shall be entitled during such disability, to receive minimum and sur-pensions, as though he had, when such disability was incurred, reached the age of 55. Moreover, his rights in all cases respecting minimum and sur-pension and the equities specified in Section 7 above, and the rights of his wife, if there be a wife, to widow's minimum and sur-pension, shall be the same 291 as if during such disability, he had continued in the service and de- ductions had been made from his salary for the pension fund as at the time when such disability was incurred. (b) If the employee from whose salary deductions have been made, as provided above, is killed in the performance of duty or dies from injuries received in the performance of duty, and leaves a widow, she shall then be entitled to the same minimum and sur-pension as she would have been entitled to, had he died at the age of 55. (c) If an employee is injured or killed in the performance of duty, or dies from injuries received in the performance of duty, and there results a right to recover under the Workmen's Compensation Act in this case any amount which he or his widow would otherwise be entitled to receive in pensions, shall be reduced by the amount recovered under that act, lump sum payments thereunder being equit- ably set off as the capitalized value of corresponding pension rights. (d) While an employee is receiving a disability pension and up to the age of 55, the employer shall contribute to the pension fund as though deductions were still being made from the employee's salary for that fund; and an amount equal to what such deductions would have been during any year, shall be added the following year, pro rata, to the deductions actually made during that year from all employ- ees' salaries for the pension fund. (e) The employer shall contribute the full amount of the wid- ow's pension specified in (b) above, up to the date when the husband, had he survived, would have reached the age of 55. NOTE. The desire to make provision for cases where an employee is killed or injured during- service and especially in the performance of duty in other words, the desire to provide against hazard of personal injury has been an important factor in the development of public . pension systems. More recently the dominant object has been to provide for old age, and workmen's compensation legislation has come into existence as a method specifically designed to care for employment hazards. The substitution, however, of workmen's compensation for pension is only partly complete, as is shown by the fact that the Illinois Workmen's Com- pensation Act is designed to provide that recovery under this act shall be re- duced by any pension rights which the injured employees may have. This Com- mission believes in reversing the order of responsibility ; hence the provision above for placing the responsibility for injury in the performance of duty with the Workmen's Compensation Act and reducing by the amount of that recovery such pension rights as would otherwise exist. Indeed pensions for disability during service are retained at all only because workmen's compensation legislation at present appears not to provide adequately for the indicated risks in public em- ployment. In conformity with the principles just stated, it is provided that the full cost of disability pensions should be borne by the employer pension after age 55 not being regarded as disability pension for this purpose. The provision for charging pro rata to all employees the deductions from the employee's salary which are interrupted by his disability, is based upon the prudential principle of bringing to bear the watchful self interest of fellow employees, as being the best means of preventing abuse by disability pension claimants. 9. PENSIONS FOR EMPLOYEES INJURED OR KILLED, BUT NOT IN THE PER- FORMANCE OF DUTY. If an employee from whose salary deductions have been made for a minimum, or a minimum and a sur-pension, is disabled, but not in the performance of duty, before the age of 55, he shall be entitled to receive during such disability, such pension as the amount accumulated from such deductions and from the employer's contributions would at that time purchase. If the employee be a male, the amount then accumulated toward a widow's pension shall be accumulated at inter- 292 est until he reaches the age of 55 or dies earlier, at which time i shall go to provide his wife a survivorship pension or his widow a pension, as the case may be. If such employee dies, whether while in service or on pen sion, before the age of 55, any refund to which his representative would otherwise be entitled shall be added to the fund at that tim< accumulated for his widow's pension, provided that the sum thus addec shall not increase that fund beyond what would provide such widow' pension in amount equal to what it would have been had the husbanc died at age 55. 10. SURPLUS. Any balance, lapses or other amounts in or falling to, the fun< from interest on accumulated funds after age 55, or from delayec acceptance of pensions beyond age 55, or from any other source, sha] go to the surplus in the fund to meet (1) cost of administration, (2) any deficiency from failure to realize 4 per cent interest on fund in vestment, (3) cost due to longevity of annuitants beyond that usec in mortality rate calculations ; and to avoid default, where necessary in respect to any other provision above. 11. MANAGEMENT. (a) Each separate pension fund shall be managed by a board o five trustees, a part of whom shall be appointed by the employer am a part elected by the employees. (b) Where more pension funds than one exist in respect to th services of a single political area, the chairman of each board of trus tees shall be the same and shall be chosen by the employer. (c) Moneys belonging to such trustees for pension purposes shal in the case of funds respecting services maintained by local author! ties, be in the custody of the treasurer of such authority and other wise in the custody of the Treasurer of the State. (d) The State Superintendent of Insurance shall prescribe form for the records and .reports of such trustees, with a view to making available necessary information for needed calculations as to pensior costs and the adequacy of pension funds ; and such trustees shal keep accounts and make reports, as so prescribed. (e) The State Superintendent of Insurance shall at least once in four years, make an actuarial examination of every such pension func and report the results thereof to the Legislature. NOTE. Each of the 35 existing pension funds in Illinois is as a rule manage by a board of about five trustees. These are usually supposed to represent i their personnel both the employer and the employee. The trustees representin the employee are' generally elected by the entire body of employees concerned whale the trustees representing the employer are quite apt to be superior official in the public service who hold their positions as trustees ex officio, and have n special knowledge or interest respecting this subject, and are frequently change as a result of political elections. While the administration of these funds in this manner has on the whol been reasonably capable, it has not met the obvious needs for proper standardize tion of pension practice. To secure this result a more studious attitude and mor sustained attention must be given to the entire field of .public pension, matters i the State. With this in view, it is provided above that in any political area haying mor pension funds than one, the same person shall be chairman of each board o trustees. For example, under this plan, if there were three or four pension funds say the teachers' pension fund, another in the state charitable institutions, anothe in the penal and reformatory institutions, and another in the departmental service 293 each with :i separate buard of trustees, the chairman of each board would be the -m. A similar arrangement might exist with respect to the various pen- sion funds in Chicago. This un.t . ould naturally tend toward reducing to a greater degree of unii'orniii \ the \aried and often eont radictory principles now illustrated by funds, and would still leave the way open 1'or such variation as actual cir- cumstances might make desirable. Commission lias indeed debated the advisability of having not only the chairman but also two other members of each board chosen by the employer and -mon to all the pension funds existing in any single political area, as, for ,ple, in a State or in a local authority. Such an arrangement, however, would imolve appointment by the employer of a majority of each board of trustees and \\oidd further increase the dominant position of that majority in each board by having- tin- same three appointed for all boards in the given political area. While apparently there should be certain distinct administrative advantages in this arrangement, the Commission has not felt sufficiently clear on the subject to a. precise recommendation on this point, or on the related question as to \\hether a. majority of any given board of trustees should be appointed by the employer or be elected by the employees. The uncertainty of the Commission on this particular is due in some degree to the different results of such election in the case of dii nsion funds. Those results in certain instances have not been such as to commend themselves highly to the judgment of the Commission. In other cases, ho\\e\-er, the personnel chosen by employees has displayed a very marked degree of interest and intelligence respecting the affairs of the pension fund ; and the employees, through their committees, have shown much information prudent disposition in regard to the pension fund. As to (d) and (e) above: Reliable actuarial computations of future costs are a prerequisite for sound financial pension practice. Some State agency should therefore be chargeable with tht collection from year to year, according to pre- scribed forms of record and accounting, of necessary data to make such compu- tations and calculations possible for all pension funds, .large or small. The im- rred i<> in S etion 1 above, of making such reliable calculations for s comprising less than say 500 employees, emphasizes the importance of effecting, as there suggested, some combination of the groups of employees Who are at the present time included in the numerous small pension funds now exist- ing, or who are contemplating the establishment of such funds in respect to public services in smaller cities in the State. Unless some new State official is provided for this purpose and this hardly seems necessary at the present moment it would seem appropriate to impose this duty upon the State Superintendent of Insur- ance. BRINGING EXISTING PENSION FUNDS UNDER THE STANDARD PLAN. In substituting the standard plan shown in the foregoing eleven sections for the regulations governing any existing pension funds, additional provisions would be adopted as follows : 1. The following points shall be determined at the time of such substitution : (a) The total amount of contributions, with interest, theretofore made for pension from the salary of each employee who entered the service at or under age 35. (b) The total amount which would at date have been contrib- uted from the salary of such employee, with interest, had the standard plan been in effect from such date of entrance. (c) The total amount which would at date have been contributed by such employee and by the employer, had the standard plan been in effect from such date of entrance. 2. The difference between (a) and (b) under 1 above shall in the case of each such employee, be spread over his remaining period of service to age 55 in equal monthly deductions from salary, to be paid into the pension fund, in addition to those required under the standard plan, but the total of all such deductions shall not 'ex- ceed 5 per cent of salary. If any part of such difference shall not have been so paid into the pension fund when the employee reaches age 55, he shall, if he remain thereafter in the service, contribute 5 per cent of salary until such part is so paid. 294 3. The difference between the amount which is in the pension fund at date and the amount which would have been in that func at that time if the standard plan had been in effect during the perioc of service of all such employees, shall, during the next forty years be paid into the fund by the employer in equal annual installments whose total present value is such difference, provided, however, tha each annual installment shall be reduced by the amount paid by the employee, as specified in 2, above. 4. All persons entitled to and receiving pension at date of such substitution shall continue to receive such pension as they are so en- titled to receive, save that in the case of any person receiving such pension, as a prior employee, who at that date is not disabled anc is under age 55, receipt of further pension shall be suspended unti that age. Nor shall any person entitled to and receiving pension at date of such substitution receive, in pension thereafter, more than he would have received in pension had the standard plan been in effect during the period of service of such pensioner or of the employee through whom he claims. NOTE. The actuarial figures in Part I show that under present regulations practically all the existing pension funds in Illinois are insolvent, with perhaps one minor exception. That is, in order to meet their specified obligations, incurred ir respect to public service rendered, the sj r stems involving the larger numbers ol employees, should have at the present time in reserves sums ranging from five to thirty million dollars in addition to what they actually have. The above provisions for placing these funds on a sound basis under the standard plan, broadly speaking propose to this end two things, namely : 1. An immediate reduction in certain cases of pension obligations, chiefly by allowing pension only to those who have attained a prescribed age and by lowering widow's pensions to generally prevailing standards. In this way a considerable fraction, possibly one-third or more, of the deficit in those funds whose deficits are the largest will be wiped out when the standard plan is adopted. 2. The charging of the balance of this deficit in minor part to present employees and in major part to the employer, such contributions for deficit being in the case of the employee spread over the remainder of his period of service, and in the case of the employer over a future period of 40 years. It has not been practicable to figure what percentage of this deficit would, under these proposals, be met by the employee and what by the employer. Much the larger part, however, would be met by the employer. At the same time, in order to meet this deficit, the employee will increase his contributions from the probable average of about 3 per cent under the standard plan to a rate not above 5 per cent, which the Commission regards as a reasonable maximum of pension contributions by the employee. Furthermore, while the employer and employee both share in the responsibility for the unsound- ness of existing pension funds, it seems impracticable to insist upon the employees' assuming more than a relatively small part of the deficiency. The period of 40 years during which it is proposed that the employer should dispose of the balance of the deficiency is below, rather than above, the number of years adopted for this purpose in some pension adjustment schemes which might be quoted from New York and from foreign cities. It is felt, however, that in accordance with general notions of policy held in respect to similar questions, such obligations ought to be discharged, at least approximately within the genera- tion. In proposing that, in the case of a person who is already receiving pension and has not attained age 55, pension shall be suspended until that age is reached, it is recognized that such pensioner might have a color of legal claim against such sus- pension. In view, however, of the prevailing insolvency of the pension funds and of the fact that a pensioner would in any case be limited to the right to share pro rata that is, along with all other claimants in a pension fund really insolvent any actual legal remedy against such suspension would perhaps be of very doubtful availability. Furthermore, if any group is getting something for nothing, it is those who became pensioners before their fellow employees awakened to the actual cost of pensions and to their effect upon salaries. It would seem clearly inequitable that one able-bodied employee should be required to remain in the service until age 55 and make increased pension contributions under the standard plan before becoming entitled to pension, while another able-bodied employee should be al- lowed to receive pension before that age without even making contributions at all for certain years prior to that date. 295 IAL COMPUTATIONS SHOWING THE RESULTS TO BE EXPECTED UNDER PROPOSED STANDARD PENSION PLAN. Under a reserve pension plan such as the Commission recom- mends, there will be on hand to the credit of each employee when he or she reaches the minimum age for retirement an amount sufficient to guarantee the pensions promised according to an assumed table of mortality and rate of interest. This involves the accumulation of funds while the employee is in active service to pay the pensions prom- ised upon the termination of such service. The Commission recommends that there be accumulated to the credit of each male employee, sufficient funds not only to provide a pension for himself but a survivorship pension for a widow, the idea being that when he reaches the age for retirement, if he has a wife, the amount accumulated to provide a survivorship pension for a widow will be set aside for that purpose and that if he has no wife, the amount thus accumulated will be refunded to him. The Commission recom- mends that funds for widows' pensions be accumulated on the supposi- tion that each male employee has a wife five years younger than he and that when the employee reaches the age for retirement, if he has a wife, the amount thus accumulated will be used to provide a widows' pension based on the actual ages of the employee and his wife. In the tables that follow, it is assumed in all cases that the wife is five years younger than the husband. The standard plan recommended involves refunds of all contribu- tions made by the employee with 4 per cent interest per annum to the date when the minimum age for retirement is reached, less the amounts paid in pension to such employee and any dependents. In the tables that follow, the refunds are calculated according to this plan. All calculations are made on the basis of the American Experience Table of Mortality with 4 per cent compound interest. For the infor- mation of any actuary who may wish to check these figures it may be stated further that the calculations involving more than one life were made on this table "Makehamized." TABLE CXXIV. In Table CXXIV below, are given the amounts necessary to pro- vide a pension or pensions at the several ages of retirement stated therein, on the following bases : 1. If the employee is a female, or a male who is unmarried on the date when the minimum age for retirement is reached, a pension of $400 per year. 2. If the employee is a male who is married on the date when the minimum age for retirement is reached, a pension of $400 per year for him during his life and a pension of two-thirds this amount for his widow. The cost of the refund privilege in this table is the cost of insuring to the estate of the employee, return of one-quarter of the amount necessary to provide the above pension or pensions, less the amounts actually paid in pensions. 296 TABLE CXXIV. Age of employee on date of retirement. If employee is a female or unmarried male. If employee is a married male. Amount nec- essary to pro- vide pension, if no refund. Cost of refund privilege. Total amount to provide pension with refund privi- lege. Amount nec- essary to pro- vide pension, if no refund. Cost of refund privi- lege. Total amount necessary to provide pension with refund privi- lege. 50.... 55 $5,324 80 4,704 00 4,040 40 3,361 60 $28 40 31 20 32 40 33 30 $5, 353 20 4,735 20 4,072 80 3,394 90 $6, 250 40 5,644 80 4,977 20- 4,271 20 $1 60 2 00 2 40 2 80 $6,252 00 5,64680 4.979 60 4,274 00 60 65. TABLE CXXV. Under the standard plan, all employees upon reaching the mini- mum age for retirement shall have contributed the same amounts reckoning interest, towards pensions of $400 per year for themselves, and in the cases of male employees, the same amounts, reckoning inter- est for widows' pensions. If the accumulations are to be made by equal amounts each year throughout the period of service to the date when the minimum age for retirement is reached, the annual payments will necessarily vary according to the ages of entrance into service. Table CXXV shows the annual cost to provide for one-quarter of the above pensions, with refunds. TABLE CXXV. Age of em- ployee on entrance into service. Annual cost to employee when no widows' pensions are to be provided for. Annual cost to employee when widows' pensions are to be provided for. Age at retirement. Age at retirement. 21 50 55 60 $10 84 13 31 17 48 23 54 32 92 65 $ 7 12 8 64 11 15 14 65 19 73 27 59 50 55 $19 02 23 69 31 91 44 62 60 $12 97 15 92 20 90 28 15 39 36 65 $ 8 72 10 59 13 67 17 95 24 17 33 80 $24 13 30 70 42 93 $16 25 20 24 27 25 38 12 $27 77 35 31 49 39 25 30 35 40 45 TABLE CXXVI. Table CXXVI shows the annual cost to the employer to provide for the remaining three-quarters of the pension whose cost to the em- ployee is stated in Table CXXV. The figures in this table are ap- proximately three times as large as the corresponding ones in Table CXXV, but are not exactly so because of the absence of refunds to the employer if the employee dies before the amount accumulated fro'm his contributions is returned in pension. 297 TABLE CXXVI. Age of ein- entrance into vice. Annual cost to employer when no widows' pensions .are to be provided for. Annual cost to employer when widows' pensions are to be provided for. Age of retirement. Agre of retirement. 2\ 50 55 60 65 $20 54 24 95 3-2 i.) 42 27 56 92 79 61 50 $ 83 22 105 83 148 01 55 $ 56 98 70 97 95 58 133 67 60 Go $ 70 89 ix) if, \'M 10 $ 47 48 59 14 111 39 $31 51 38 68 :,o so : GS $ 38 82 47 65 62 58 84 27 117 86 $ 26 09 31 69 40 89 53 73 72 32 101 14 30 4ii , If, TABLE CXXVII. Table CXXVII contains the totals of Table CXXV and CXXVI and thus exhibits the total cost per year for a pension of $400 per year to the employee and in the case of a male employee of two-thirds this amount to his widow, with refund of one-quarter the amount thus ac- cumulated, as already explained. TABLE CXXVII. Agre of em- ployee on entrance into service. Total annual cost when no widows' pensions are to be provided for. Total annual cost when widows' pensions are to oe provided for. Agre of retirement. Age of retirement. 21 ... 50 55 60 65 50 55 60 65 - $ 95 02 120 86 169 03 $ 63 73 79 38 106 90 149 51 $ 42 32 51 99 r,s :Ji 91 96 128 60 $ 27 66 33 59 43 34 56 92 76 65 107 20 $110 99 141 14 197 40 $ 76 00 94 66 127 AQ 178 29 $ 51 79 63 57 83 48 112 42 157 22 $ 34 81 42 28 54 56 71 68 96 49 134 94 30 4(1 \:> TABLE CXXVIII. Under the standard plan a deduction is to be made from the salary of each male employee in receipt of a salary of $1,000 per year, or over, of a fixed percentage of the salary, this percentage to depend upon the minimum age for retirement adopted by the particular service in which the employee is engaged. The amounts thus deducted less the amounts required to provide for these pensions, the cost of which is illustrated in the four tables above, together with contributions of equal amounts from the employees are to be improved at 4 per cent interest per annum, compounded annually to the date when the minimum age for retirement is reached and used to provide an extra or sur-pension for the employee, also a survivorship widow's pension for his wife, if he has a wife on that date. Table CXXVIII shows the amount of pension including both mini- mum and sur-pensions which would be available to a male employee or his widow under the proposed plan if he entered the service at the age of 25 and receive in salary the amounts stated in one of. the salary sched- ules given below, the minimum ages for retirement being as stated in the table. The percentage of salary deducted 'is 5 per cent when the 298 minimum age for retirement is 50 ; 4 per cent when 55, and 3 per cent when 60 or 65. Schedule I. $900 first year, $1,000 second year, $1,350 thereafter. Schedule II. $675 first year, increasing by $50 per year until it reaches $1,125, then $1,235 for next succeeding year and $1,355 thereafter. Schedule III. $840 first year, $960 second year, $1,080 third and fourth years, and $1,200 thereafter. Schedule IV. $1,000 first year, increasing by $100 per year until it reaches $1,800, then remaining at this figure there- after. Schedule V. $1,000 at outset, increasing by $300 after each period of service of three years until it reaches $2,500, re- maining at this figure thereafter. TABLE CXXVIII. Age of retirement. 60 2 55 3 60 3 65 Salary as in Em- ployee's pension. Widow's pension. Em- ployee's pension. Widow's pension. Em- ployee's pension. Widow's pension. Em- ployee's pension. Widow's pension. 1 Schedule I $566 $377 $635 $423 $678 $452 $ 911 $607 Schedule II 501 334 555 370 597 398 776 517 Schedule III... 519 346 578 385 623 415 828 552 Schedule IV.... 652 435 746 497 815 543 1,128 752 Schedule V 713 475 834 556 925 617 1,307 871 1 5$ deduction from salary. 2 4$ deduction from salary. 3 3$ deduction from salary. TABLE CXXIX. The standard plan provides for deduction from salaries of female employees equal to the deduction from salaries of male employees, less the amounts necessary to provide for widows' pensions. This gives the following percentages to be deducted from salaries of female em- ployees in the cases where the salary schedules are as in Table CXXVIII. TABLE CXXIX. Salary as in 50 55 60 65 Schedule I. Per cent. 4.33 Per cent, 3,39 Per cent. 2.44 Per cent. 2.50 Schedule II 4.33 3.39 2.48 2.41 Schedule III 4.31 3 39 2.49 2.46 Schedule IV 4.32 3.36 2.46 ' 2.40 Schedule V 4.28 3.36 2.46 2.40 Age of retirement. 299 CHAPTER III. PROPOSALS FOR AMENDATORY PENSION LEGISLA- TION BY THE 50th GENERAL ASSEMBLY OF ILLINOIS. The Commission believes that, without prejudice to the more thor- ough treatment of all public pension funds in this State which is rec- ommended in Chapter II, and with a view to improving the conditions in the meantime of some of the larger pension funds which urgently need attention, certain changes of a temporary character should be made toward such improvement. The Commission recommends, therefore, that the laws affecting the following four public pension funds ; namely the Chicago Teachers' Pension Fund, the Pension Fund of Municipal Employees of Chicago, the Chicago Policemen's Pension Fund and the Chicago Firemen's Pension Fund, be amended by the Fiftieth General Assembly so as to include the provisions specified below. 1 Also, that the Workmen's Compensation Act be amended as specified below. PROPOSALS AFFECTING EACH OF THE FOUR FUNDS. 1. The minimum age at which an employee may withdraw from service and enter on pension, except in cases of disability, shall be as follows: Policemen, firemen, and teachers, 50 years; municipal em- ployees, 55 years. 2. Each disability pensioner shall be examined at least once a year by one or more physicians selected by the managing board of trustees ; such physician, or physicians, shall advise the pension board whether disability of the employee continues ; and if disability no longer con- tinues, the employee shall return to the service at the former status of such employee. 3. Illegal voting at any election of pension trustees shall be pun- ishable by a fine of $100. 4. The State Superintendent of Insurance shall prescribe a system of records and accounting to be observed in the management of each pension fund in the State, with a view to making available the informa- tion necessary for the proper administration and public regulation of these funds, and in particular shall prescribe a form for reports to be made to him at least once a year by the trustees of each such fund ; and such trustees shall make such reports. The State Superintendent of Insurance shall report each year to the Governor this information, or such summary thereof as he may deem wise. 1 In its recommendations for pension contributions from the city, the Com- mission has not proposed any definite period during which such contributions should continue. It is our opinion that they should continue until the adoption of a revised pension plan as contemplated in this report. 20 P L 300 5. An emergency clause shall be affixed to each bill, so that the amendments will take effect upon their passage. 6. The Illinois Workmen's Compensation Act shall be amended so that when a State or municipal employee, who is included under a pension fund to which his or her employer contributes, is injured or dies in the performance of duty, the pension rights of such person or his or her dependents shall be reduced by any amount received by such person or dependents in the form of compensation under the provisions of the Workmen's Compensation Act. PROPOSALS AFFECTING CHICAGO TEACHERS' PENSION FUND. 1. Teachers now in service or hereafter appointed shall, during the first four years they are in service, contribute $15 per year to the pen- sion fund ; during the second four years, $25 ; during the third four years, $30 ; and thereafter as long as they are in the service, $40 per year the board of education contributing twice the amounts thus con- tributed by the teachers. 2. A teacher who has served 25 years and is at least 50 years old may, on retirement, receive pension. A teacher retiring after 25 years of service, and before age 50, may continue payments as though in service, and receive pension at the age of 50. 3. The period of service required, in order -that a teacher may be eligible for the disability pension provided for in the present law, shall be 12 years. 4. The amount of disability pension shall be in no case less than $200 per year. 5. The day for election of pension trustees shall be Friday instead of Wednesday as under the present act. 6. The second (or final) election shall be eliminated in the case of any candidate for pension trustee who receives a majority of all the votes cast at the primary election for the office for which such person is a candidate. 7. The investment of surplus funds shall be mandatory on the board of trustees, and all interest earned by the pension fund shall re- vert to the fund. 8. The board of trustees shall have power to suspend payment of disability pensions if disability ceases. 9. The pension fund accounts shall be audited at least once a year. 10. Teachers coming into the Chicago public schools with outside time to their credit shall be required to make back payments for such outside time, with interest at 4 per cent per annum, compounded an- nually. 11. Contributors no longer in service shall be entitled to hold office the same as contributors in service. 12. Disability must be shown to have been the cause of the teach- er's termination of service in order to obtain a disability pension. NOTE. Omit emergency clause proposed above. PROPOSALS AFFECTING PENSION FUND OF MUNICIPAL EMPLOYEES OF CHICAGO. 1. Employees now in the service, or hereafter appointed, shall con- tribute $30 per year toward the pension fund as long as they are in the 301 service, and the city shall contribute twice the amounts thus contributed by the employees. 2. Section 7 of the present act shall be amended to allow 4 years instead of 3 in which to make up the difference between the amount paid in and that required to be paid before a full pension may be received. 3. Section 8 of the present act shall be amended to allow an em- ployee 12 months instead of 30 days, as in the present act, in which to make up the difference between the amount paid in and that required to be paid in where the employee leaves the service after 20 years of service but before the age of 55 and expects to receive pension at the age of 55, with the provision that 5 per cent interest will be charged from date of retirement from service to date when such entire amount is paid. PROPOSALS AFFECTING CHICAGO POLICEMEN'S PENSION FUND. 1. Section 9 of the Police Pension Act shall be amended by 'sub- stituting "the superintendent of insurance" for "one or more actuaries " 2. Employees shall contribute to the pension fund 2^ per cent of their salaries, and the city shall contribute the proceeds of a tax levy of nine-tenths of a mill on each dollar of taxable property in the city. o. Upon the death of an employee, not due to the performance of duty, before the age of 50, the widow shall receive monthly a pension of $2 for each year of service performed by her deceased husband, but not to exceed a total of $40 per month. The widow of an employee killed in the performance of duty or of one, who in the performance of duty, received injuries f^ori which he afterwards died, or of an employee who has served at least 20 years or was retired on pension after age 50, shall receive a pension of $40 per month. -1. If an employee dies leaving one or more children each child shall receive a pension of $10 per month while the mother ; s living and $15 per month when neither parent is living,- up to the age of 14, and shall thereafter receive like amounts up to the age of 18 so long as attending school, and when not attending school, then $5 less per month. 5. An employee retiring from service after 20 years of service and before 50 years of age may continue until that age to contribute to the pension fund twice the amount which such employee was con- tributing at the time of retirement, and receive pension at the age of 50 the widow and children, if there be such, to have the same pension rights as if the employee had remained in service up to that age. 6. The wives and children of insane policemen shall be granted the same pension privileges as widows and children of policemen who die in service not from injuries received in the performance of duty. PROPOSALS AFFECTING CHICAGO FIREMEN'S PENSION FUND. 1. Employees shall contribute to the pension fund 2J^ per cent of their salaries, and the city shall contribute the proceeds of a tax levy of five-tenths of a mill on each dollar of taxable property in the city. 302 2. If an employee dies hereafter leaving a widow, she shall receive a pension of $40 per month. 3. If an employee dies leaving one or more children, each child shall receive a pension of $10 per month while the mother is living and $15 per month when neither parent is living, up to the age of 14, and shall thereafter receive like amounts up to the age of 18 so long as attending school, and when not attending school, then $5 less p^r month. 4. An employee retiring from service after 20 years of service and before age 50 may continue until that age to contribute to the pension fund twice the amount which such employee was contributing at the time of retirement, and receive pension at the age of 50 the widow and children, if there be such, to have the same pension rights as if the employee had remained in service up to that age. TABLE SHOWING APPROXIMATE RESULTS FOR TYPICAL EMPLOYEES OF ABOVE PROVISIONS, IF ADOPTED. Funds. 1 3* MP 05 *]! rto TO ^ fH t v> S a > Percentag-e of salary. a^ O-Q o flj" 2* 3^ |l! Approximate ratio of city's to employee's contribution. Average yearly pension. Widow's yearly pension. Minimum a g-e II for retirement. 1 1 Policemen.. $33 00* 21 9 *6 to 1 *$690 t$480 50 Firemen 34 28* $ *6.6 to 1 *700 t480 50 Municipal employees 30 00 24 100 * 2 to 1 600 ^ Teachers 15 00 first 4 years. 2i T* 2 to 1 t400 *>0 25 00 second 4 years. 30 00 third 4 years. 40 00 thereafter * Approximately. t Pension since 1913. j Proposed pension. 303 CHAPTER IV. RECOMMENDATION FOR FURTHER STUDY OF THE PENSION PROBLEM IN ILLINOIS. As stated above, the provisions recommended in Chapter 1 .1 1 for adoption by the present Legislature will accomplish only in minor part the changes which are desirable in the pension laws of Illinois. In re- gard to many fundamental questions involved in this complex subject, the Commission, as explained in Chapter I, has been unable, in the limited time available, to reach conclusions. Difficulties arise from the fact that many independent pension funds exist which include groups of employees too few in number to make reliable actuarial computa- tions possible. Difficulties are met in endeavoring to adjust the amounts of pensions to employees whose services differ widely in char- acter, and in endeavoring to fix the proper ratio of contribution as between employer and employee. Difficulties beset the effort to build a pension system financially sound possessing at all times resources to meet its then obligations. Still greater difficulties are encountered in the attempt to place on a sound basis pension systems already in existence which have been operating on an unsound basis until they are burdened with an almost crushing load of liabilities for which no re- sources exist. Problems of administration likewise await solution. All these questions are rendered still more formidable by the diversity of pension legislation and practice in this State, and by the conspicuous lack of any consensus of opinion between different groups of employees as to sound pension policies. The following are some of the important questions to which fur- ther study should be devoted, with a view to incorporating in appropri- ate legislation the results of the study : 1. What should be the minimum age at which an employee should be eligible to receive pension ? 2. What number of years in service should be required before an ployee is entitled to receive pension ? 3. What provision should be made for an employee entering serv- e too late in life to allow him to complete the period of years speci- fied in 2 before reaching the minimum age specified in 1. 4. To what extent should the tentative proposals on pages 293 and 294 of Chapter II be adopted in bringing existing pension funds under the proposed standard plan? 5. What plan should be adopted to insure that no separate pension fund should include too small a number of employees to make reliable actuarial computations concerning their pension experience possible ? 6. What method, if any, should be adopted for combining for pension purposes employees from different services in the same polit- ;: 304 ical area, or employees from the same, or from different, services in separate political areas? 7. Are the ratios of contribution as between employer and em- ployee which are specified in section 6 of Chapter II the best for prac- tical use? If not, what ratios should be adopted? 8. Should the practice of providing that the contributions of the employer shall be made from special sources of public revenue be abandoned ? 9. Is it desirable that the same, or approximately the same, plan be applied in the case of all pension funds, or in the case of certain groups of such funds ? 10. Should the majority of each board of pension trustees be ap- pointed by the employer, or should they be elected by the employees? 11. Should any of such trustees be members of more than one board of pension trustees ? 305 INDEX. PAGE. Active service Actual experience Firemen, Table XVII 104 -Municipal employees. Table LIV 148 Policemen, Table 1 83 Teachers, Chicago, female, Table XXXV 124 Teachers, Chicago, male, Table XXXVI . . 125 Teachers, State, Table LXVI.. 165 Cost of pensions for (see cost of pensions) Kates (see rates) Summaries of number in and contri- butions of Firemen 13 Municipal employees 17 Policemen 11 Teachers, Chicago 15 Teachers, State 17 Tables and salary scales Firemen, Table XXIV 108 .Municipal employees, Table LVI 149 Policemen, Table VII 87 Teachers. Chicago, female Table XXIX 128 Teachers, Chicago, male, Table XL 129 Actuarial Balance sheet (see balance sheets) Computations under proposed stand- . ard pensions plan 295 Table used for 296 Report General introduction 72 Firemen 104 Municipal employees 147 Policemen . ... 81 Teachers, Chicago 124 Teachers, State 161 vantages of "reserve" plan over "cash disbursement" plan (see methods of providing funds) Age Average of entrance Firemen 113 Municipal employees 156 Policemen 93 Teachers, Chicago 132 of employees (see statistical tables under name of fund) of pensioners (see statistical tables under Pname of fund) of retirement Assumptions in regard to age for municipal employees.... 150 Assumptions in regard to age for teachers, State 162,163 In foreign countries, summary. 35 In Illinois and other states. 54- 57 In proposed standard pension plan 296-298 PAGE Age Concluded. Wife's average age for various ages of husband Firemen, Table XXI 107 Policemen, Table V 86 Amendatory pension legislation, pro- posed Affecting All funds 299 Firemen 301 Municipal employees 300 Policemen 301 Teachers, Chicago 300 Table of results under 302 Annual cost of pensions (see cost of pensions) Appendix "A" 205 Text reference to 38 Appendix "B" 241 Text reference to 10 Assets and liabilities (see balance sheets) Assumptions General 81 Municipal employees 72, 147 Analysis under v . 157 Teachers, Chicago Hypotheses I and II 133 Teachers, State General 73 Hypotheses I and II 162 In regard to groups becoming eligible > 163 Aurora Firemen, Table CXIV 197 Policemen, Table CXVIII 199 Average Age of entrance (see age) Balance Sheets General Not concerned with future en- trants 80 Rate of interest assumed in.. 80 Sources of revenue, how treated in 80 Firemen, Table XXXIV, p. 123, Text 115 Municipal employees, Tables' LXII-LXV, p. 159, Text 156 Policemen, Table XVI, p. 103, Text 94 Teachers, Chicago, Table LIII, p. 146, Text 134 Basic Data (see data) Beneficiaries Under proposed standard pension plan 275 and 287 Benefits All funds, see Appendix "B" 241 Compared with contributions for Chicago , funds 50 Municipal Employees 156 306 INDEX Continued. Benefits Concluded. PAGE Present value of to Municipal em- ployees (see contributions) Summary of for Firemen 104 Municipal employees 147 Policemen 81 Teachers, Chicago 124 Teachers, State 161 Under proposed standard pension plan to Public service 273 Employees and dependents, Tables CXXIV-CXXIX ..296-298 Blooming-ton Firemen, Table CXVIII 199 Policemen, Table CXVIII 199 "Cash disbursement" plan (see methods of providing funds) Champaign Policemen, Table CXVII 198 Children of active firemen, average num- ber, Table XXIX 112 Pensioners, (see pensioners) City's contributions (see contributions) Classes Division of pensioners (all) into (see pensioners, classes) Commission, Illinois Pension Laws Act creating 1 Duties of 5 Members of 2 Recommendations of, (see stand- ard pension plan) 295 Comparison of pension laws in Illinois with those in other states and countries (see laws, pension ; Foreign pension systems) of rates (see rates) Condition of pension systems in Illinois (see balance sheets) ... 272 Conditions for retirement (see age of retirement ; service re- quirement) Contribution scale Average for teachers, Chicago Female, Table XLI 130 Male, Table XLII 130 Contributions of employees Expressed as percentage of salary of average entrant (see cost of pensions) Municipal present values of, Tables LXVIII and LXI 151 ratio of benefits purchased by to total benefits, Table LVII. 150 Teachers, Chicago: Future entrants, Table XLIX.137 Combined, Table L 139 Teachers, State 164 Under proposed standard pension plan (also of employer) 289 Values of benefits compared with, for Chicago funds 50 PAGE Conversion of existing pension funds to accord with pro- posed standard pension plan 293 Cost of pensions Annual for firemen Active service and their de- pendents, Table XXXI 118 Future entrants and their de- pendents, Table XXXII 120 Present pensioners and their dependents, Table XXX 116 Above three combined, Table XXXIII 121 Annual for policemen Active service and their de- pendents, Table XIII 98 Future entrants and their de- pendents, Table XIV 100 Present pensioners and their dependents, Table XII 96 Above three combined (text, 92) Table XV 101 Annual for teachers, Chicago, (female) Active service, Table LXVIII 136 Future entrants, Table XLIX 137 Present pensioners, Table XLVII 135 Above three combined, Table L 139 Annual for teachers, Chicago (male) Active service, future entrants and present pensioners, Table LI 142 Annual for teachers, Chicago, (male and female) Table LII 144 For teachers, State, Tables LXVIII-LXXI 166 In foreign countries Methods of meeting (sum- mary) 34 In Great Britain As a percentage of salary 24 Under proposed standard pen- sion plan, Tables CXXIV- CXXVII 296-297 Costs, comparative for Firemen Different classes of widows. . . 114 Disability and service pen- sioners ' 114 Men and their widows 114 Policemen Different classes of widows. . 94 Disability and service pen- sioners 93 Men and their widows 93 Costs, future Plan followed in determining (general) 73 Teachers, State, Tables LXVIII- LXXI 166 Costs, present and future Plan followed in collection of in- formation as to 68 Details of summarized Firemen Municipal employees Policemen Teachers, Chicago 15 Teachers, State 17 Data, basic Difficulties encountered in col- lecting 79 General statement as to collec- tion of . 74-79 30? INDEX Continued. PAGE Data basic Concluded. Required for determination of future costs General 72 Firemen and policemen 74 Teachers, State 161 (also see rates) Teachers, Chicago, male and fe- male kept separate 124 Decatur Firemen, Table CXIII 197 Policemen, Table CXVIII 199 Deficiency in fund Municipal employees 157 Teachers, Chicago 134 (see balance sheets) Definitions of terms 286 Dependents, other than widow or natural children Firemen and policemen in Illi- nois and other states 70 For benefits to, see benefits Direct tax As source of revenue in other states 51 Disability pensioners (see pensioners) East St. Louis Firemen, Table CXXVII 199 Elgin Firemen, Table CXVIII 199 Employees, (see active service) Benefits to (see benefits) Length of service required for pension (see service require- ments, also statistics under name of fund; Number of (see statistics under name of fund) Payments, limitations of in Illi- nois 52 (see contributions) Public service in Illinois Extent of present and possible future legislation for 18 Scope and ugency of pensions for 271 Statistics of 200 Equities (see refunds) Evanston Firemen, Table CXV 198 Policemen, Table CXVI 198 Experience Actual of Active service (see active service) Disability pensioners Firemen, Table XIX 105 Policemen, Table III 84 Service pensioners Firemen, Table XVIII 105 Policemen, Table II 84 ctors considered in proposed standard pension plan Enumeration of 299 Financial statements, all funds (see statistics under name of fund) Firemen General pensions for in Illinois 37 Firemen's Benevolent Associations in Illinois 36 Firemen's fund of Chicago Actuarial report on 104 Statistical, Tables LXXVII- LXXXII 173-176 Summary of details of present and probable cost 13 Foreign pension systems General summary and compari- sons 34 PAGE Foreign pension systems Conld. Origin and growth of 20 Austro-Hungary (civil service). 31 France 32 Germany (civil service) 29 Compared with England 30 Old age or industrial 31 Great Britain (civil service) .... 21 Compared with Illinois 25 Teachers 26 Great Britain and Ireland Compared with Illinois 29 Old age 27 New Zealand (civil service) 33 'Old age 34 Funds Investment of by pension boards in Illinois (summary) 71 (see Appendix "B") Pension Existing in Illinois (enume- rated) 10 Management of in Illinois 4 48 in other states JP 49 under proposed standard pen- sion plan 292 Small in Illinois no actuarial investigation 73 statistics relating to, are in chapter VI 168 and indexed under name of city Solvency of, provisions for 52 (see balance sheets) Future cost of pensions (see cost of pensions) General description of data and methods used (see data, basic) Historical sketch of pension laws in Illinois, Chapter III 36 Detail of same in Appendix "A". 205 House of Correction employees, Chi- cago Tables CHI, CIV 192, 193 Husbands Relative ages of wives to (see age, wife's) Hypotheses (see assumptions) Illinois State Teachers' Pension and Retirement Fund Actuarial report on 161 Discussion of results 164 Number eligible for pensions, Table LXVII 165 Statistical tables, XCIV- XCVII 186-188 Summary of details of present and probable cost 17 Treatment of fund 73 Importance of pension problem in Illinois Interest rate adopted (see rate) Joliet Firemen, Table CXVIII 199 Policemen, Table CXVIII 199 Laws, pension Comparison of in United States and Europe 19 Enumeration of, in all states.... 43 In foreign countries, Chapter II.. 19 Other states and countries plan of collecting information regarding 8 308 INDEX Continued. PAGE Laws, pension Concluded. Of Illinois Comparison with Great Britain 25 Extent of present and possible future 18 Plan of investigating operation. 6 Survey of, with comparative references to provisions in laws of other states, Chapter IV 42 Summary of existing 10 Tabular digest of . 241 (see amendatory pension leg- islation, proposed) Liabilities (see balance sheets) London police Pensions and gratuities 23 Management of funds (see funds) Marital condition Classification of Firemen, Table LXXV 171 Policemen, Table LXXX 175 Massachusetts Report of Commission on Pen- sions 43 Methods of providing funds for pay- ing pensions Advantages of "reserve" plan over "cash disbursement" plan 281 Under "cash disbursement" plan 280 Under "reserve" plan 280 Under unscientific plans in Illi- nois 280 Moline Policemen, Table CXVII 198 Monetary tables Plan of exhibiting 79 Mortality tables (see rates) Municipal Employees' Fund of Chi- cago Actuarial report on 147 Limited experience for predic- tions 72 Statistical tables LXXXIX- XCIII 182-185 Summary of details of present and probable cost. . . . 17 Oak Park, Village of Firemen, Table CXVIII 199 Occupations of employees Municipal, Table LXXXIX 182 Outline for proposed standard pension plan summary) -. 285 Parents (see dependents) Park policemen, Chicago Tables XCVIII-XCIX 189, 190 Pension Amount of in foreign countries (sum- mary) 35 in Illinois and other states. . 60-62 under proposed standard pen- sion plan (see benefit) Conditions for Children's in Illinois and other states 68 Disability in Illinois and other states 58 (see service; age) PAGE Pension Concluded. Considered as Deferred pay 23, 25 Reward for service 53, 71 Funds (see funds) Laws (see laws) Non-contributory effect on wages in foreign countries 35 the United States 53 Provisions for discontinuance of in Illinois and other states.. 64 Scales Firemen, Table XXIV.. . 108 Policemen, Table VII 87 Teachers, Chicago, Table XLIII 131 Systems, Foreign (see foreign) Pensioners Classes of, Present and Future Firemen, 112 Policemen 91 Teachers, Chicago 132 Number and pensions to Firemen 13 Municipal employees 17 Policemen 11 Teachers, Chicago 15 Teachers, State 17 Children Firemen, number of families, Table XI 91 Policemen, number and aver- age pension, Table XXVIII. Ill Disability Average time on pension roll Firemen, Table XXIII. . 108 Number and average pension Firemen, Table XXVI 110 Policemen, Table IX 89 Teachers, Chicago (female) Table XLV 131 Under proposed standard pen- sion plan 290 (see experience, actual of) Service Average time on roll Firemen, Table XXII 107 Policemen, Table VI 86 Number and pension of Firemen, Table XXV 109 Policemen, Table VIII 88 Teachers, Chicago, (female) Table XLIV 131 Teachers, Chicago, (male) Table XLVI 135 Widow Conditions for pension and amount of pension in Illinois 64 Other states 65,68 Number and pensions to Firemen, Table XXVII Ill Policemen, Table X 90 Peoria Firemen, Table CIX 195 Policemen, Table CXVIII 199 Teachers, Tables CVII, CVIII. . . 195 Police General pensions for in Illinois. . 37 Police Fund of Chicago Actuarial report on 81 Statistics of, Tables LXXII- LXXVI 169-172 Summary of present and proba- ble cost 11 309 INDEX Continued. PAGE Powers, punching and sorting- ma- chines 79 MI cost of pensions (see costs) Principles of standard pension, underlying 271 Probabilities (see rates) Bed pension legislation (see amendatory pension legisla- tion, also standard pension plan) Public Library Employees, Chicago Tables CV-CVI 193, 194 Public School Employees, Chicago Pensions for (Historical) 37 Tables C-CII . . 191, 192 Public Service Employees (see em- ployees) Punch card Copy of 78 (Questions for further study (see recommendations; ionnaires Used in collection of data 74-76 Rate of interest Assumed in calculations 80 Rates comparison of among Firemen and Policemen 113 required for determination of future costs General, all funds 73 Firemen and Policemen 74 and Probabilities (of mortality, withdrawal, pension retire- ment, return to service, etc) Firemen, Table XX, p. 106, text 108 Municipal Employees, Table LV 148 Policemen, Table IV, p. 85, text 86, 87, 91, 92 Teachers, Chicago, Tables XXXVII, XXXVIII, pp. 125, 126, text 125, 128 T.-i-hers State 162 R.-itio of benefits purchased by con- tributions of employees to total benefits Municipal Table LVII 150 Reasons for developing standard pension plan 271 Recommendations for further study of pension problem in Illinois 303 (see standard pension plan) Plan of determining on 9 Refunds Historical sketch 39 Illinois funds 53 Other states 54 Teachers, Chicago 133 Under proposed standard pension plan 290 Relative ages Husbands and wives (see age, wife's) "Reserve" plan Adopted for proposed standard pension plan 280 (see methods of providing funds) PAGES Reserves for future force Firemen 115 Policemen 94 (see cost of pensions) Rockford Firemen, Table CXI 196 Policemen, Table CXII 196 Revenue Sources of Combination of all in other states 52 From employees in Illinois and other states 49 Historical 38 Other than employees' contri- butions in Illinois 50 other states 51 Municipal employees, for 147 (see Appendix "B" also methods of providing funds for paying pensions) Revocation of Pension Provisions for, see Appendix "B" Salaries of employees Classified by years of service (see statistics under name of fund) Salary Ratio of cost of pensions to Firemen 114 Municipal employees 157 Policemen 94 Teachers, Chicago 134 Scales (see active service) Service Active Tables and salary scales (see active service) Length of employees (see sta- tistics under name of fund) Pensioners (see pensioners) Requirements for pension in Illinois (Historical) 39 (see Appendix "B") Schedules (see Questionnaires) Solvency (see balance sheets) Sources of revenue (see revenue) Sprijngfleld Firemen, Table CXVIII 199 Policemen, Table CX 196 Standard Pension Plan, proposed Actuarial computations showing results to be expected under. 295 Table used for 295 Age of retirement and length of service required for pension.. 296 Amount of pension Minimum, general 289 specific 289 Sur-pension, general 289 specific 289 for male employees, Table CXXVIII 297 for female employees, Table CXXIX 298 Beneficiaries, who should be general 275 specific 275 Benefits under to Employee . . ' 274 Public service 273 Changing existing funds to ac- cord with 285 310 INDEX Continued. PAGE Standard Pension Plan Concluded. Contributions of Employees, effect on salaries.. 282 Employee and employer under general 283 specific 283 Cost of pensions under Tables CXXIV-CXXIX ... 296-298 Disability pensions under, with Disability incurred in per- formance of duty 290 Disability not incurred in per- formance of duty 291 Equities, protection of (see refunds) Management of funds general ' 284 specific 292 Methods of providing- funds for paying pensions Under "cash disbursement" plan 280 Under "reserve" plan 280 Unscientific plans in Illinois. 280 Advantage of "reserve" plan over "cash disbursement" plan 281 Refunds of contributions general 284 specific 290 cost of 296 Reserve plan to be adopted. . . . 287 Surplus, in fund, disposal of. . . 292 Widows and children of deceased employees Relative cost of pensions for 276 Workmen's Compensation Act Inadequacy of 275 Statistics Relating to Existing Illinois funds, Chap. VI 168 (Above are indexed under name of city where fund exists) Illinois Public Service Em- ployees, Chap. VII 200 PAGE Sterling Firemen, Table CXVIII 199 Surplus, in fund Disposal of under proposed standard pension plan 292 Survivors Pensions for in Illinois (His- torical) 40 Systems Illinois Pension 272 (see Laws, Pension Illinois) Tabulation Of employees and pensioners (see, active service; statistics and individual funds) Teachers' Fund of Chicago Actuarial report on 124 Statistical, Tables LXXXIII- LXXXVIII 177-181 Summary of details of present and probable cost 15 Teachers Illinois Pensions for (Historical) 37 Valuation Actuarial (see balance sheets) Reasons for giving yearly 80 Reported to nearest dollar 81 Widows (see Pensioners, also under stand- ard pension plan) Withdrawal rate (see rates) Wives relative ages to husbands (see age, wife's) Workmen's Compensation Act Exclusion of pension beneficiaries by 40 Inadequancy of, and considera- tion of in proposed standard pension plan 299 Not a pension law 10, 42 YC 36159.