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TEACHERS' RETIREMENT BOARD REPORT.
To his Excellency, JOHN H. TRUMBULL, Governor of Connecticut.
The members of the retirement association are subject to a five percent deduction of their salaries restricted to a minimum assessment of twenty-five dollars and a maximum assessment of one hundred dollars annually. Assessments so contributed make up the Annuity Fund.
There are two classes of members in the association, compulsory and voluntary. Compulsory members comprise those teachers entering the service of the public schools of the state for the first time since July 1, 1917, who are obliged to become members of the association. Voluntary members include those teachers who entered the service of the public schools prior to July 1, 1917, and had the option of joining the association. A teacher in the latter classification is allowed to join the association at any time by paying an amount equal to the total assessments and interest thereon, that he would have paid had he entered the association in 1917. During the past year, 1076 compulsory and 49 voluntary members were received into the association, making a total of 11,057 teachers to join the association to date. The net gain in membership over the previous year was 423.
A member of the Retirement Association may retire because of age, service or disability.
(a) The age clause provides for retirement upon reaching the age of sixty after fifteen years of service in the state.
(b) The service clause provides for retirement at any age after thirty-five years of service in the public schools, twenty of which must have been in Connecticut.
(c) The disability clause provides for retirement after ten years of service in the state provided one has not reached the age of sixty.
The retiring allowance is made up of two factors, an annuity and a pension. The annuity is purchased by the member's accumulated deductions computed on McClintock's Female Annuitants' Tables at 32%.
The annuities at present are very small, due to the fact that no member has had an opportunity to accumulate enough in assessments to purchase any appreciable amount. The largest monthly annuity being paid is $6.74. The pension is paid by the state, and is based upon the length of service, the age at retirement, and the average salary of the last five years preceding re
The largest monthly pension being paid is $83.33. There are 158 teachers now receiving retiring allowances. The average monthly allowance amounts to $35.54. Twenty-one members retired during the year, six having reached the age of sixty with at least fifteen years of service, twelve having served at least thirty-five years in the public schools, and three having become disabled. The average service of these members was 36.1 years. There were eight deaths recorded for retired memData relative to the retirements for the year follow:
Any member of the Retirement Association withdrawing from service in the Connecticut public schools before becoming eligible to retirement is entitled to reimbursement from the annuity fund of all amounts which he has contributed as assessments, with regular interest thereon. The amount is paid in one sum provided he has taught for one year or less or in four quarterly payments, at intervals of three months if he has taught for a longer period in the state. During the year 683 members withdrew their assessments from the fund. Reasons for withdrawal are classified as follows:
Such a member who has withdrawn and who returns to the public school service is obliged to return any amount previously withdrawn with interest, so that his account will amount to the same as if he had left the deposit on interest in the fund. The quarterly payment ruling for refunds was adopted at a meeting of the board on January 4, 1924, and was necessitated by the large number of so called "temporary withdrawals." There was a decrease of $39,708.84 in refunds paid for 1924 over the previous year due to the above ruling. The sum of $45,293.64 is due on refunds and will be released at quarterly intervals. Should a member die in the service, the total of his account is paid to the executor or administrator of his estate. Eleven deaths occurred among the active teachers and their accounts were disposed of as stated above. Since the establishment of the fund the sum of $429,781.58 has been withdrawn by members separating from the teaching service of the state.
INCOME AND INVESTMENTS.
The treasurer of each town, city or school district in the
state sends monthly to the secretary of the board five percent of the salary paid each teacher subject to membership in the retirement association. There were no districts delinquent in this respect and it is gratifying to report splendid cooperation on the part of officials upon whom the responsibility rests of sending assessments, reports concerning the employment of new teachers, removals, withdrawals, and changes in salary. During the year, the sum of $478,764.58 was received and credited to the members' accounts, representing an increase of $46,616.72 over the previous year. The amounts follow:
As provided in the statute, the secretary of the board deposits all sums so collected with the State Treasurer who invests such funds as are not required for current disbursements, in accordance with the laws of the state governing the investment of savings bank funds. The annual statement of the State Treasurer exhibiting the financial transactions and condition of the Pension and Annuity Funds, also a list and description of bonds held at the close of business on December 31, 1924, is given at the end of this report.
Regular interest is credited annually on the last day of December each year to the individual accounts of the members. December 31, 1924, the sum of $64, 263.10 was so credited.
Total, New Haven maintains a local pension system for its teachers. It is the only city in the state to claim exemption from the state retirement system. As provided in Section 1024, Chapter 61, Public Acts of 1919 the city is annually reimbursed for pensions paid its teachers for such an amount as the state retirement board may determine. For the year ending June 30, 1924, the city paid retired teachers $5,703.95 for whom they received a state reimbursement of $2,410.98.
HOWARD P. DUNHAM.
JOHN B. BYRNE.
ALBERT B. MEREDITH.
CHARLES L. AMES.
HAROLD E. CHITTENDEN.