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Caption: Board of Trustees Minutes - 1920
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234 BOARD OF TRUSTEES [March 11, the contributory plan and who has had not less than three years of service as a teacher in a college, university, or technical school. 2. The Trustees of the Carnegie Foundation request that any institution now associated with the Foundation which desires to be admitted to the new privileges of the Foundation, including disability allowances, will announce its acceptance of the contributory system, and the specific plan upon which the institution itself will participate, to become effective not later than January 1, 1920. 3. The Trustees call the attention of the associated colleges to the fact that the financial interest of the college as well as that of the teacher require that their joint contributions begin as soon as the individual is definitely started upon the teacher's profession. The table given below brings out this situation clearly. For example, it will cost $1299 more in contributions to accumulate an annuity of $1200 available at age 65 for the man who begins at age 40 than it would to accumulate the same annuity in the case of the man who begins at age 30. For the man who begins at age 45 this excess would amount to $2039. I To provide an annuity of $100 monthly on male lives, first payment of age 65, it is necessary to provide a reserve amounting to $10,608 at the end of the period of accumulation. Monthly premiums to provide that amount are shown below: Age at Monthly Number of Total Premium Payments Issue Premium Months Payable 480 $4,373 IS $9.11 26 4,479 9.57 468 4,592 456 27 10.07 4,702 28 444 10.59 432 29 4,817 11.15 30 11.75 420 4,935 15.43 360 35 5y5S5 40 300 6,234 20.78 240 6,974 45 29.06 II The reserve at the end of the period of accumulation provided by monthly premiums of $10; and the monthly annuity on male lives beginning at age 65, provided by monthly premiums of $10 is shown below: Age at Issue ^ 25 26 27 28 29 30 35 40 45 Monthly Annuity at 65 $109.81 104.47 99.35 94.41 89.67 85.11 64.81 48.13 34.41 Number of Total Premiums Reserve at 1 of Period Months Paid Paid 480 $4,800 $11,649 468 4,680 11,083 456 10,539 4,560 444 4,440 10,015 432 9,512 4,320 420 4,200 9,029 360 3,600 6,875 300 3,000 5,105 3,650 240 2,400
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