252 Pension Fund Report 



available material bearing on the subject of pension fund reg- 

 ulations and administration. 



In this connection the subject of group insurance will be 

 considered, for, if this form of insurance should be found 

 adapted to our needs and be approved by the Trustees of the 

 Corporation, it would go far in helping to solve the problem 

 of reducing age and service requirements for retirement. 



Group insurance, as the name suggests, means an insurance 

 issued under a single contract (renewable yearly) covering 

 all the persons of a group working under the same employer. 

 It can be undertaken if at least 75% to 80% of the permanent 

 employees accept the plan. The policy is issued without 

 medical examination. It insures the individual employee in 

 the event of death in the amount of his annual salary, up to 

 $5,000, and is obtainable at a rate of between 24% and 1% 

 of his annual salary. In the hypothetical case where the per- 

 sonnel of the employee body remains the same from year to 

 year, the rate, naturally, increases; but with a "turnover" of 

 at least 15% (such as may be reasonably counted on in our 

 institution), the rate would remain almost constant. 



Frequently the policies are effected and paid for by the 

 employer, sometimes by the employee; or the premium rate 

 may be divided jointly. It is also permissible to base the 

 insurance on length of service, the policy calling for a lesser 

 amount during the early years of employment and gradually 

 increasing until the maximum, $5,000, is reached. But it is 

 thought that the salary basis, described above, is the better. 



When the contract is effected, the employer receives the 

 general policy and each employee an individual certificate. New 

 permanent employees taken on during the year are automati- 

 cally insured from the first day of permanent employment. 

 Those leaving the service have the option for thirty days of 

 continuing their insurance, in the amount of their salary on 

 leaving, without medical examination, under any of the various 

 options offered by the insurance company, i. e., ordinary life, 

 twenty payment life, or endowment. This insurance is car- 

 ried, of course, under the regular company rates. 



There are several decided advantages in group insurance as 

 compared with the death insurance features of our pension 



