19
Question of Soundness '
The question of soundness with
,±qspe.ct to pri w « ^ ^ m a nensaons: is
not actuarial. Epae' vonly question
of soundness is, “W ildlife stategkeep
its proW Ol to pay prior service pen-
si0118?” Undoubtedly, it will. If one
doubts Q fa t it will, does setting up
the “ Reserve” and investing the re­
serve’s money in federal, state and
county bonds make the doubt any
pay. The prior service pensions can
be kept I g B aq j actuarily and oth-
erwise, as long âs ^ ^ p ta te ^ ^ H naid
more money into the system for "prior
service cost at any time ‘than has
been paid out up to that time in
prior service pensions.
The difficulty of I followjirig; the
preserit bookke&piW procedure for
because it has become necessary to
usl^^m p l^ ^ O current service contri­
butions to set up
f° r
pr”
in a/BBSM
More and more current service mon­
ey will be^equiredjSfor the prior ser-
vice part
reserve for the next
ten years or so, b u flg ftp r. that less
;Will be. needed and prior service con­
tributions will eventually pay back
the current service part of the em-
pl° yS ? Recounts. There is no need
to be affaid that there may not be
en^ 5 w ir emPl°yer contributions for
both prior
current ser­
vice to pay for prio|||||rv iM alone.
Setting money aside for full H H
service pensions in a reserve is not
the same as spending it-
would appear that when the re­
tirement act was passed the legisla­
ture did ncit have in mind theBlOlk-
ti°n ES9& reserve meeting the Hull
cost of prior service pensions in ad­
vance. It prpposed instead to pay
them out over a 30 year amortization
period to light,gpgfie burden of the
annual cost. It is difficult to recon-
E l j the lai^twiili the assertion that
“ we
the money in 15
THE
CHADWICK
HOTELS
HOTEL SENATOR
Salem, Oregon
HOTEL JACKSON
Medford, Oregon
Salem's New and Most Modern
Hotefi.,.
One of Southern Oregon's
Finest Hotels
Coffee Shop and Dining Room
Banquet and Meeting Rooms
Garage in Building
Coffee Shop, Dining Room
and Banquet Rooms
Free Parking Lot
W. W. CHADWICK, President