or she been of retirable age and allowed a pension during 

 his or her lifetime. After consultation with the actuary, these 

 provisions, unfortunately, had to be withdrawn because of 

 the lack of an endowment fund of such proportions as would 

 provide an income sufficient to insure the payment of the 

 gratuities as they accrued. In lieu thereof the present in- 

 surance feature was adopted, and after carefully observing 

 its operation the Pension Board has every reason for ex- 

 pressing the belief that it more efficiently supplies the intended 

 relief. 



The incorporation of provisions, such as first mentioned, 

 proves very costly and has frequently caused the collapse 

 of otherwise meritorious systems. The experience of the 

 Pension Board, working under the present rules, indicates 

 that the average family, suddenly bereft of the wage-earner, 

 treats the gratuity given as a simple life insurance payment 

 for which the premiums have been regularly paid. In so 

 far as the Pension Board has been able to ascertain, this 

 gratuity has been used principally in the same manner as 

 ordinary industrial insurance; the family has quickly adjusted 

 itself to the new conditions and would deprecate the continu- 

 ance of payments made in any paternalistic manner. 



There may arise, however, the exceptional case where a 

 continuance of limited amounts may be temporarily required ; 

 for such cases provisions have been made and the needed 

 relief will be extended. 



The records of the past year show that, to a great extent, 

 the employees other than those engaged in scientific work, are 

 transitory. These changes of employment would indicate 

 that the employees recognize that the establishment of the 

 Pension Plan was not intended as a means of tying them to 

 their positions or of discouraging them from changing em- 

 ployers, but on the contrary appreciate that their interests 

 are protected while in the service and that upon leaving, either 

 voluntarily or through dismissal, there is returned to them 

 the amount of their accumulated contributions with interest. 



