SENATE.

64TH CONGRESS, }

TEACHERS' RETIREMENT.

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REPORT No. 1064.

FEBRUARY 14 (calendar day, FEBRUARY 16), 1917.-Ordered to be printed.

Mr. HOLLIS, from the Committee on the District of Columbia, submitted the following

The Committee on the District of Columbia, to which was referred the bill (S. 7404) for the retirement of public-school teachers in the District of Columbia, having considered the same, report it to the Senate with sundry amendments and as amended recommend that the bill do pass.

It is commonly recognized throughout the United States that some form of pension should be provided for all workers in private and public service. Many railroads and other large corporations have adopted a pension system for the benefit of old and deserving employees. The Senate Committee on Civil Service and Retrenchment is working out a plan for the retirement of all superannuated employees in the classified civil service.

The arguments in favor of pensions in return for faithful service apply with peculiar force to school-teachers. Their work in training. the young of the Nation is more important than any other. Their remuneration is less than is bestowed for other work calling for high character, good brains, and careful training.

The peculiar claims of school-teachers in this connection have been recognized in 33 States of the Union, representing every section. The Federal Government can not afford to lag behind the States in its treatment of the efficient teaching force in the District of Columbia. The pending bill presents a combination of the contributory and the pension systems. A certain percentage of the teacher's salary is deducted monthly and placed at interest for her benefit. At the age of retirement this sum is used to purchase an annuity, and the Government contributes a stated sum, based upon her term of service, as long as she lives. The contributions by the teachers and the Federal Government are in the approximate proportion of 60 to 40. Those who favor a retirement plan for Government employees in the classified civil service on a purely contributory plan may object

to any contribution by the Government for the benefit of retired school-teachers. But it will be readily perceived that we are now acting as a local legislature for the District of Columbia, just as a State assembly would legislate for its teachers. In providing for Federal employees in the classified civil service, on the contrary, the Congress will act in its Federal capacity solely.

The two propositions are very different. If a Government clerk in the civil service is retained after his best years are passed, he may be given less exacting work. The service will not actually suffer if he sits by the window and does nothing. But a school-teacher's work is personal, direct, and positive. It works for the good or the ill of each pupil. To retain a superannuated teacher in the service is a positive harm to her pupils and a manifest injustice to the rising generation.

This peculiar necessity for retiring school-teachers promptly when efficiency fails is expressly recognized by the 33 States which have legislated on the subject. The school-teachers are selected from among the various public servants as a preferred class.

In 4 States the teachers finance the pension system entirely. In 8 States the teachers make no contributions whatever, the entire expense falling on the public treasury. In 21 States the funds are furnished by the teachers and by the government jointly, on the contributory plan. This is the system recommended by your com

mittee.

The situation existing in the District in 1915 was made the basis of the estimates. There were then about 1,800 teachers, with a pay roll of about $1,800,000, making an average salary of about $1,045. For the past 40 years there has been a nearly uniform growth in the teaching force of about 38 teachers per year. It is assumed that this rate will continue.

The plan contemplates the deduction of a certain percentage monthly from each teacher's salary, to be kept in the Treasury of the United States and compounded for the teacher's benefit at 4 per cent annually. The percentage deducted will vary with the ages at which the teachers enter the service, running from 4 per cent of the basic salary for a particular class to 8 per cent of such basic salary. The basic salary is the lowest salary paid in a particular class.

If the teacher withdraws from the service before the retirement age, she will receive back from the Treasury all her contributions, plus accumulations. If she dies before retirement, this sum will go to her legal representatives.

The minimum retirement age is 62 years; the maximum (except in an exceptional case) is 70 years. In case of disability between the ages of 52 and 62, the teacher may retire with full privileges.

When a teacher is entitled to retire with pension privileges, she will receive from her accumulations in the Treasury, in the form of an annuity, a sum equal to 1 per cent of her salary for each year of her service. She will also receive from the Government an annual payment of $6 for each year of her service.

For example: Assume that a teacher retires at 62 years of age after teaching 40 years at a basic salary of $800. She will receive annually 1 per cent of her salary for each year of her service, $8×40 = $320 +$6 a year × 40 = $240, a total of $560 a year. Of this sum she has contributed $320 and the Government $240. No

teacher will receive anything from the Government unless she has served the District 10 years.

There is a minimum income of $420 yearly for those retiring between the ages of 52 and 62 and a minimum of $480 for those retiring after 62 years of age. Since the teachers who retire in the next 30 to 40 years will not have made contributions for the years of service up to this time, the initial expense to the Government will be proportionately larger at first.

The cost to the Government the first year will be about $35,000. That cost will mount gradually until it reaches a maximum annual cost of about $175,000 in 25 years. It will remain at about that figure yearly for a few years, and will then gradually decrease for about 30 years until it reaches a practical level of 43 per cent to 5 per cent of the annual pay roll. If the plan had been in effect for the past 60 years in the District, the cost to the Government for this year would be approximately $90,000.

On page 1, line 5, strike out the word "monthly."

On page 2, line 4, strike out the word "October" and insert "September.'

On page 2, lines 6-8, after the word "year," strike out the words "which deduction shall be based on the basic salary for the month of September."

On page 2, lines 9-12, after the word "month," strike out the words "except that no deduction shall be made for the month of September, and that for the month of October two-tenths shall be deducted." On page 2, beginning with line 16, strike out all down to and including the word "teacher" on line 24, and insert the following:

"The deduction herein provided for shall be based on such annuity table as the Secretary of the Treasury shall direct, and shall be varied yearly to correspond to any change in the basic salary of the teacher: Provided, however, That the deductions from the salaries of teachers. who are in the service of the public schools of the District of Columbia when this bill goes into effect shall not exceed the deductions from the salaries of new entrants of the same age: And provided further, That no deduction from the salaries of teachers now in the service shall exceed eight per centum of the said basic salary."

On page 3, line 3, after the word "on" strike out the words "a higher basic salary than the minimum of his class" an insert "the basic salary of a class above his present class."

On page 3, line 4, after the words "greater than the" insert the word total."

On page 3, line 6, after the word "now" insert the words "in the service.'

On page 3, line 13, after the words "United States" insert "to the credit of a fund to be dominated 'The Teachers' Retirement Fund of the District of Columbia.'"

On page 3, line 19, after the words "bonds of the United St tes" insert "bonds issued under the authority of the Federal Farm Loan act."

On page 4, line 2, beginning with the word "any" strike out all down to and including the word "appropriated" in line 5, and insert: "In order to carry out the provisions of this act a sum sufficient to meet any deficiencies in said fund is hereby appropriated, one-half

from any moneys in the Treasury not otherwise appropriated, and one-half from the revenues of the District of Columbia."

On page 9, line 3, after the word "herein" strike out the words. "and shall receipt in full for the" and insert the words "and the." On page 9, line 5, strike out the words "and such payment." On page 9, line 21, after the period insert:

"No sum shall be paid to any teacher from appropriations for the District of Columbia unless such teacher shall have been employed continuously in the District of Columbia for 10 years prior to his retirement.'

On page 12, after line 6, add a new section as follows:

"Sec. 18. Whenever the pronoun 'his' occurs in this act it shall be construed to mean both male and female teachers."

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64TH CONGRESS,}

SENATE.

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REPORT No. 1069.

FILLING VACANCIES IN GRADE OF SECOND LIEUTENANT, UNITED STATES ARMY.

FEBRUARY 19, 1917.-Ordered to be printed.

Mr. CHAMBERLAIN, from the Committee on Military Affairs, submitted the following

REPORT.

[To accompany S. 7952.]

The Committee on Military Affairs, to whom was referred the bill (S. 7952) to amend an act entitled "An act for making further and more effectual provision for the national defense, and for other purposes," approved June 3, 1916, having considered the same report it back to the Senate with amendments, and as thus amended recommend that it do pass.

The purpose of this amendment of that part of section 24 of the national defense act as is covered by the bill is to extend the provisions of that part of the section to those officers and members of the Organized Militia, the National Guard, or the Naval Militia who have had at least 90 days actual Federal military service under any call of the President during the calendar year 1916 and who are between the ages of 21 and 30 years. The amendment of the section places the appointment of those candidates who pass the required examination in the same class with enlisted men of the Regular Army and officers of the Philippine Scouts, and in no way changes existing law with reference to the appointment of second lieutenants from graduates of the Military Academy, from other branches of the Army, or from civil life.