Repository: UIHistories Project: Board of Trustees Minutes - 1920 [PAGE 233]

EXTRACTED TEXT FROM PAGE:

1919]

UNIVERSITY OF ILLINOIS

229

administrative policy will find it extremely difficult to attract to its service the best class of men and women. The Carnegie Foundation has given up all hope of carrying out its original plan, owing to the financial difficulties involved in the same, and, while it will presumably take care of the institutions already accepted, it will not in the future increase the list of accepted institutions. I t has, however, worked out a scheme of combined insurance and annuities which it offers to American colleges and universities, which desire to accept the plan. Roughly speaking, it involves a contribution on the part of the instructors themselves of a certain percentage of their salaries, and a contribution from the University equal to the contribution which they make. The difference between the revenue so received and the cost of the enterprise will be borne by the Carnegie Foundation. The Foundation undertakes at present what may be called the overhead expenses of a scheme of insurance and annuities. I am submitting a letter received recently from the President of the Foundation, also two letters and a memorandum concerning a misrepresentation, which I have received from the President of the Carnegie Foundation. The omitted portions relate to purely personal matters.

N E W YORK, January 20, 1919

President Edmund J, James, University of Illinois

DEAR PRESIDENT JAMES:

The Actuary of the Teachers Insurance and Annuity Association of America is sending to you under another cover a copy of the Handbook of the Association. This Handbook describes the policies both for insurance and for old age annuities, offered by the Association. These policies are not only offered at net cost but are individual contracts specially adapted to the circumstances of the teacher's life and financial status. The combination of term insurance with an annuity offers to teachers the most economical and secure method for protecting themselves and their families against dependence. The following points need to be kept in mind. (1) Institutions can arrange through their treasurer or other financial officer for payments upon policies to be made in monthly instalments both in the case of insurance and of annuity contracts. (2) The matter of insurance is purely a question for the teacher and the insurance policy is paid by him alone. I t is expected that the college will join with the teacher in the contributions to the old age annuity contract. All payments are, however, the property of the teacher. (3) Where institutions are not yet ready to commit themselves to the contributory plan, teachers can take out old age annuity contracts without such cooperation on the part of their institution, and payments may be made through the treasurer in monthly instalments or direct to the Association in annual or semi-annual payments as in ordinary life insurance business.