Board of Regents meeting minutes, 1919-1921

Page 99

"At first, state institutions were excluded. At the $011citation of representatives of the National Association of State Universities, the principle of recognition of state institutions was recognized and an additional five million dollars donated by Mr. Carnegie for the purpose of admitting . state universities to the privileges of the Foundation. After ten years eXperience it was discovered that no obtainable amount of money could guarantee to an unlimited number of institutions the privileges planned. "The outcome of this discovery has been a most careful investigation of the principles of Old Line hife Insurance by expert actuaries with a view to establishing a system of insurance and old age annuities which would be practical. Funds are available from the Carnegie Corporation for the establishment of such a system of insurance and annuities as to make it practicable for teachers in all colleges and universities to participate in these new plans. A system of insurance very much like the regular Old Line Insurance, including term insurance and endowment insurance is offered at reduced terms to teachers in colleges and universities. These reduced terms are possible because the Carnegie Foundation undertakes to carry all over-head charges, 1 including salaries, office rents, etc., and because the members 3 of the teaching profession are considered unusually good risks. "This system of insurance may be entirely distinguished and separate from the plan of annuities or it may be in combination with the annuity scheme. The annuity scheme contemplates the contribution on the part of individual teachers of approxi-mately five per cent of his annual salary in monthly payments, and the contribution of a like sum by the authorities of the institution. These contributions will assure to those who are ' A" , less than forty-five or fifty years of age a retiring allowance' L of approximately a thousand dollars a year, more or less, ‘4 according to the age at which the payments begin. "Dr. Henry S. Pritchett, President of the Carnegie Foundation, visited the University of Utah early in October and very clearly explained the whole system to the membe rs of the Faculty and several members of the Board ofReg ents. It is quite obvious that very material advantages will accru e to the UniverSity of Utah if it can be associated with the proposed plan for insurance and annuities. Already a large number of colleges and universities have joined the assoc iation and the probability is that any institution which remains entirely aloof in the future will be at a considerab le disadvantage." or annuity or both. It is necessary here to elaborate the arguments for such a planot ~' n. Briefly, they tend to Sta bilitvi 0 faculties and pol icies and part of the faculties becaus to more effective work on the e of a feeling of financial secure 1tyThus, the advantages to the of administration are mutual. facu t' , 1 ies and to the boardaf