INSURANCE PLAN OF THE CARNEGIE FOUNDATION

In November, 1915, President Pritchett of the Carnegie Foundation for the advancement of teaching submitted a plan of insurance and annuities for college teachers which was designed to supersede the existing system of teachers' pensions. This plan contemplated that premiums should be paid in part by the college teachers and in part by the Institution with which the teacher was associated.

He supported his plan, first, by the argument that the contemplated burden under the existing pension plan would prove to be greater than the Foundation could sustain, and, second, upon a general line of reasoning which aims to show the advantages of an insurance and annuity plan over that of pensions.

This plan was submitted to the various associated institutions with the request that they criticise and report. The Dartmouth faculty appointed a committee consisting of Professor Dixon, chairman, and Professors Young, Person, Husband and Proctor to consider the plan. They made an extended report which, in general, was favorable to the plan but which criticised it in certain particulars and suggested certain modifications. This report was adopted and submitted to the trustees for their consideration.

This same procedure was followed by others of the associated institutions, some favoring the plan, others criticising it sharply. Finally, at the request of the American Association of University Professors, action upon the plan was deferred for a year by the trustees of the Carnegie Foundation and a commission was appointed to examine and revise the entire plan, consisting of representatives of the Carnegie Foundation, the American Association of University Professors, Association of American Universities, the National Association of State Universities, and the Association of American Colleges. This commission submitted its report in April last and the plan included therein has been adopted by the trustees of the Carnegie Foundation and will be put into effect this fall. It provides for the creation of a teachers' insurance and annuity association under the laws of the state of New York; the capital and surplus aggregating one million dollars to be provided by the Carnegie Foundation. All over-head expenses of the Insurance Association are to be met by the Foundation and insurance is to be furnished at net cost. The principal contracts that are to be written are term insurance policies, expiring at age 65, and deferred annuity policies, payable after age 65. Participation in the insurance feature is to be voluntary but it is expected that all members of the faculty will contribute toward annuities. It is expected that, in the payment of premiums and annuities, joint contributions shall be made by the institution and the teacher.

All teachers now members of faculties of associated institutions shall have the option of remaining upon the present pension system or of participating in the insurance and annuity plan as they see fit, but a date will be set beyond which the pension plan will no longer apply. The facilities of the new insurance and annuity plan will be open to teachers in all colleges regardless of their previous connections with the Carnegie Foundation and regardless of sectarian control or similar considerations.