view of the excellent condition of the Fund, it would seem 

 that this time is the most appropriate for the inauguration 

 of this additional safeguard. I would therefore suggest the 

 formation of a Trustees' Emergency Fund, which will not be- 

 come an integral part of the Pension Fund, but which will 

 be held as a reserve to be called upon if needed in the future 

 and if not needed can revert to the original subscribers or 

 become part of some other designated fund of your institu- 

 tion. I would suggest that this fund be placed at $150,000, 

 and that it and its accumulations be set aside for the pur- 

 poses indicated above." 



Accepting this recommendation, it is the Committee's in- 

 tention to endeavor to raise by personal solicitation the sum 

 named. 



Probably in every pension system it is found advisable to 

 introduce certain changes or emendations after the plan 

 has been in operation for a period long enough to indicate the 

 conditions peculiar to the corporation or institution concerned. 

 It seems wise that in our plan some provision be made where- 

 by persons of over 45 years of age entering the employ of the 

 Museum be permitted to become subscribers to the Fund, 

 provided they be in good health. 



Again, plans which, when formulated, seem clear in pur- 

 pose and application, do not always prove satisfactory in 

 their actual operation. It is therefore the intention of the 

 Pension Board to clarify, at an early date, some of the rules 

 pertaining to the administration of the Fund, as well as to 

 recommend certain changes in the rules relating to retire- 

 ments. Apropos of this latter purpose, we quote Mr. Wolfe, 

 who had unusual opportunity to study the working of the 

 pension systems of the United States Government and of for- 

 eign countries during the war, and was in a position to ob- 

 serve the weak points of various systems, the existence of 

 which had not been anticipated : 



"* * * it was observed that the cause for the con- 

 stantly increasing amounts paid for our Army and Navy 

 pensions was traceable not to pensions allotted to those who 

 were disabled as the result of their military activities, but to 

 those who received allowances based upon the mere fact that 

 they were in service for a certain period. The latter group 



