510 PROCEEDINGS OP SECTION G. 



(3) The future rate of mortality to be experieaced among 



pensioned employes. 



(4) The future rate of invalidity or breakdown of employes 



while in service. 



(5) The future rate of mortality among those pensioned off 



on account of breakdown. 



(6) The future rate of withdrawal. 



(7) The salary rate. 



As regards the rate of interest, little need be said here. The 

 problem is to determine the rate of interest likely to be realized in 

 the future. In an insurance office the rate assumed is generally 

 much less than the rate expected, because custom has rendered it 

 advisable to give bonuses, and provision has to be made for these. 

 In a pension fund this consideration does not arise, and as nearly 

 as possible a true estimate must be made, keeping in view the fact 

 that some of tlie contracts will run for 70 years. 



One of tlie points that has to kept in mind in valuing a pen- 

 sion fund is that the normal pension age or age at which employes 

 retire on pension, i.e., superannuation, shows decided signs of fall- 

 ing — employes are retiring of their own election or being retired 

 by the employer at younger ages than hitherto. 



A not infrequent regulation governing the age of retirement is 

 that the employe may retire at any age after 60 inclusive, but 

 must retire at 65 or 70. Inasmuch as retiring on pension means 

 a large decrease in income in addition to a radical change in habits 

 of living, most men, if in good health and strength, prefer the 

 larger income and established method of life, and remain on in 

 service till the latest possible date. 



This custom showed itself in past experience with a large re- 

 tirement rate at 60, a very much lower rate at 61, and slowly 

 rising to age 70. 



The stress of modern business life is changing this — the retire- 

 ment rate at 60, 61, and so on is higher than it was. Men 

 are being retired at the younger ages between 60 and 70 in 

 greater numbers than was customary before. Modern compe- 

 tition is so keen that managers and sub-managers are com- 

 pelled to draft the elder and less efficient servants out of service in 

 order that their departments may be kept in a thorough state of 

 efficiency. Without superannuation provisions such an economic 

 course was difficult on mere humanitarian grounds — with these pro- 

 visions it is possible and is being availed of more and more. As 

 pension schemes become more universally adopted this custom will 

 spread still further. 



To such a pitch has this economic management extended that 

 while a man can neither retire or be retired before 60, yet it has 

 been found that many men are inefficient after 50, and provision 



