But one contributing member has been placed on the pen- 

 sion rolls, and it is a matter of interest to note that his retire- 

 ment was not voluntary, but was made necessary by the con- 

 dition of his health, which in the opinion of your Board in- 

 dicated the advisability of his availing himself of the right to 

 the pension after 15 years of service. This retirement took 

 place in 1914, and the present age of the pensioner is 79. 



The foregoing statistics are interesting and when examined 

 from year to year will enable you to judge of the condition 

 of your fund. 



It may not be amiss for me at this time to point out certain 

 facts in connection with your fund specifically and staff pen- 

 sion funds generally. 



I venture to say that there is no form of benefits granted 

 to municipal employees or private and public corporations 

 about which so much uncertainty exists as among pension 

 funds. The statement has been made that the number of such 

 funds which are on a financially sound basis is practically 

 negligible, and, while I am not prepared to subscribe to that 

 statement in its entirety, I feel that it is correct to all intents 

 and purposes. The New York City Teachers Retirement 

 Fund and the Carnegie Pension Fund are recent examples of 

 the instability of plans involving a large number of benefi- 

 ciaries. 



When I passed upon your plan early in 191 3 I realized that 

 there were peculiar conditions surrounding your employees 

 which made it impossible to apply the data which had been 

 used in the formation of a number of other funds. Many of 

 your employees are connected with the scientific development 

 of your institution, and the pride which they take in their work 

 justifies us in assuming that there will be a deviation from the 

 principles applicable to commercial annuity or pension plans ; 

 that this faith has been justified is indicated by a statement of 

 the age and service record of your present contributors. The 

 retirement of those more advanced in age and the taking of 

 their places by employees of younger ages were other factors 

 which led me to advise you that it would be unnecessary to 

 establish a large initial fund to take care of what are some- 

 times termed 'accrued liabilities.' I felt that we would be 

 justified in first determining whether the peculiar conditions 



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