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
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W. W. CHADWICK, President