508 PROCEEDINGS Or SECTION G. 



It is impossible to simply dispense with their services, since m 

 most cases such a course of action means nothing more than con- 

 demning their old servants to the discomforts of a pensioner's 

 old age. 



To keep them in the service is equally out of the question, since 

 with modern competition in business such a course of action would 

 lead to fossilization of the service, with consequent decay. Equally 

 unfortunate is the procedure at times adopted of keeping the old 

 employes nominally on the service, but at a reduced rate of pay. 

 This is degrading to the employes own self-respect, and has very 

 bad effects on the general morale of the young employes. 



To pension off such servants when past work is wholly throwing 

 on to the future a burden which has been gradually accumulated 

 in the past, and, finally, very little consideration shows those respon- 

 sible for the safe conduct of the business that, before very many 

 more years are past, the burden so cast vipon the future will prove 

 so onerous and so weighty that the future will refuse to carry the 

 burden. 



The benefits provided under a pension fund usually comprise — 



(1) A pension to the member after he reaches a certain age, 



provided that he has been in the employ for a speci- 

 fied term of years. The amount of the annual pen- 

 sion charge depends upon the salary the employe 

 has received while in active service and the number 

 of years which he has served. 



(2) A pension or a lump sum to those compelled to retire 



from service before reaching the statutory age on ac- 

 count of total breakdown in mental or bodily health. 

 The amount of this invalid pension or lump sum also 

 is based upon the salary or length of service. 



(3) Some provision for the widow and family of the em- 



ploye who dies in the service before qualifying for 

 pension. 



(4) Some provision for the return of the employe's own con- 



tributions (if any) in case he resigns or leaves the 

 service. 



In some cases there are additional benefits granted, but No. 1 

 and No. 2 are the principal benefits, as they form the raison d'etre 

 of the fund. 



Whatever the details of such funds may be, it is evident that 

 their due performance calls for money. It is equally evident that 

 ill every case in which the pension is being actually enjoyed the 

 contributions to the fund on account of that pension must cease. 

 In other words, at the instant the pension is entered upon the fund 

 should have a sum in cash, or its equivalent, equal to the present 



