18
service annuities in that they are not,
nor need fae, paid up in advance-
They are az promise by t h ^ ^ S g ^ g
reward the employee who has s e S B I
for years before the retirement law.
was passed and who is forced by
the law to retire before his current
service has had time to .b u ild ^ ^ ^ gu
adequate annuity 'for retirement^
These pensions, ‘as a promise ||| pay,
are as ^sound as the honor of the
state of Oregon.
However, the board is ^ treating;
prior service pens3Ws| just like cur
rent service a n n u itie s When an em
ployee .with prior service credit of
$50.00 per month, say, retires, ap
proximately $6500 is added to his
current service^-'Çotal and set aside
in the reserve for annuitie^^ B &ted
to pay out his prior service pen® n.
Apparently, the board feels that it
must follow this plan if prior ser
vice pensions are to. be “ actuarily
sound.”
Bookkeeping Plan
This bookkeeping plan used by the
retirement system on pribr service
pensions becomes a matter of con
cern to all those trying to improve
our retirement program during
transition period, when employees
with 30 years or more of service
credit are forced to retire/on an
nuities of fifty to sixty dollars
per month. This plan may cause
some people to misunderstand, and
to doubt the wisdom of increasing
prior servnqjcrediBi|
The O SE A plan for improving the
retirement program for those now
retired or soon ret||MEa is to increase
prior service cjgllit from- $2 j H ^B ss 1
$4.00'per month per year of service
and to remove the 20 year lim italbn
on the maximum counted. To meet
the increased' cost, it is desirable to
extend the amortization - p e r io c Q ^
30 years as much as necessary and
to "{ihcreàSitbSannual contrihnlglHSI
Sunset Motor Company
Chevrolet
Oldsmobile - Cadillac
The Dalles
Oregon
for prior service cost as lijK fla s '
keeping the pen-
si ons financially sound •
pro-
cedure will be financially sound if
more has been paid into the system
by the state at any time for prior
service cost than has been paid out
in prior service pension! up to that
time.
N ^ ^ ^ th at if the\legjg jjj|ir.e raises
the state’s promise to pay pensions
foi’ prior service from $2.50 to $4.00
that part of the reserve fogl annui
ties granted for prior :
d.
•fro'nKithe present point of view of
this b o o k k ^ n B a lp lan . I have to be
raged immediately 60%. Most of thel
reserve is now for prior service pen
sions. People unaware of the differ
ence between current service annui
ties and' prior service pensions would
K K m u . canj3 doVHgl». haven’t
got the money to make it actuarily
sound!”
BHBBlajll always
REMEMBER
Janeds Skyline Cafe
While Passing Through
Meacham
Oregon
Coy's Auto &
Hardware Supply
SPORTING GOODS
Where Q uality Meets Price
1413 Adams
La Grande, Ore.
HO TEL FO LEY
La Grande
Oregon
83 Room s
O n H ighw ay 30
Reasonable R aw sllv Week or Month
SACAJAWEA HOTEL
M. I
ROESCH, Mgr.
On Highway 30
La Grande
Oregorf