Sunday Gazette-Mail from Charleston, West Virginia on May 23, 1976 · Page 60
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May 23, 1976

Sunday Gazette-Mail from Charleston, West Virginia · Page 60

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Charleston, West Virginia
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Sunday, May 23, 1976
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Page 60
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4E --May 23, 1976 W*M Virginia UNDERFUNDED West Virginia Teachers Retirement Fund Ranks Low in Study of 42 States by NEA By Fmy Seller The Teachers Retirement Fund in West Virginia has less money invested to pay the pensions of retired teachers than do 41 other states. ; In fact, West Virginia's teachers pension plan may be the most underfunded in the country. · Research done by the National Education Assn. shows that West Virginia has $.12,367 invested for each retirement in its teachers pension system. The finding was published in the "Teachers Retirement Systems," copyrighted in 1975. The study included 42 states and Puerto Rico. ; ALASKA HAS $m,lM per retireant invested in its teachers retirement fund. The fund, however, only has 586 reti- r.eants. i On the other hand, Wisconsin -- which is more representative of West Virginia -has $139,800 invested per retireant. The Wisconsin fund has a total of 14,300 reti- reants compared to 14,554 in the West Virginia fund at the time of the National Education Assn. research. ; Mississippi, with 15,363 retireants, has $25,125 invested for each of them. Maine, with 12,697 retireants, has $14,964 invested per member. The neighboring state of Maryland has 8,638 retireants and $102,454 invested per member. Indiana has the second most underfund- ed system with $13,842 per retireant. However, its membership is slightly higher at 19,000. * * » IT ISN'T BECAUSE the state hasn't matched members' contributions that the West Virginia fund is underfunded. With the exception of the first year the fund was established, the legislature has allocated more money to the fund than the amount contributed by members. "There's no question we're underfund- ed. But as to how much, nobody knows," said the retirement fund's executive secretary, Willard M. Asnel, in response to a question about the fund's solvency.. Ansel also was asked why the West Virginia retirement fund, with $180 million invested compared to $2 billion in Wisconsin, started paying out more than it was taking in last year. The reason is that the added benefits which the legislature enacts without appropriating the money to pay for them. But Ansel said the monetary picture will get better, and by next year, the members' contributions, the state's matching share and interest on investments may again be sufficient to meet benefit payments. In fiscal 1973-74 the fund was having to cash its investments to meet those payments. The legislature then pumped in millions of dollars to offset the trend. Here is why the fund got underfunded: In 1941 the legislature created the Teachers Retirement Fund, and provided for a contribution of 4 per cent of salary which was to be matched by the state. But that same year, the actuarial soundness was subverted by a provision which gave teachers credit for service prior to enactment of fund. This provision is now costing the state $2,450,000 a year, but the legislature didn't authorize an allocation to offset it. Over the years, the legislature passed 13 more additional benefits which amount to outright grants for eligible retireants. A teacher, who's an average case history, retired in 1959 with 38 years of service and immediately drew $110.27 a month. But under her contributions she had paid into the fund only $1,995.45 which earned interest of $423.96 the state matched the total of $2,419.82, giving her $4,838.82. With that much money, she could buy an annuity of $26.27 a month. The difference of $84 was an outright grant from the legislature which enacted two other additional benefits after the one in 1941 by the time the teacher retired in 1959. Fiscal! Legislative Member Investment Benefit Year Appropriations Contributions Income Total Income 4-1-42 $ 622,468 $ 802,221 $ 1,913 1,426,602 42-43 (A) 1,630,000 864,404 ' 24,968 2,519,372 43-44 1,300,000 829,966 85,008 2,214,974 44-45 1,425,190 (8)894,105 131,174 2,450,469 45-46 1,593,524 (B) 125,055 223,981 2,942,560 4647 1,735,924 1,133,998 262,925 3,132,847 47-48 2,451,800 1,686,370 342,960 4,481,130 48-49 2,546,800 1,799,048 413,845 4,759,693 49-50 2,951,000 1,443,242 . 495,444 5,889,686 50-51 3,665,470 2,618,774 616,761 6,901,005 51-52 3,449,800 2,881,156 754,805 7,085,761 52-53 3,892,770 2,953,585 960,618 7,806,973 53-54 4,369,400 3,594,639 1,043,208 9,007,247 54-55 4,263,976 3,653,202 1,171,933 9,089,111 55-56 4,527,000 3,761,524 1,369,655 9,658,179 56-57 4,357,555 3,944,872 - 1,566,806 9,869,233 57-57 4,806,022 4,014,859 1,634,396 10,455,277 58-59 5,244,600 4,203,826 1,924,888 11,373,314 59-60,5,735,393 4,351,085 2,340,898 12,427,376 4,222,105 6 0 - 6 1 . . . ; . 5,728,848 4,370,322 2,636,802 12,735,972 61-62 5,719,278 4,593,651 2,926,604 13,239,533 62-63 5,783,278 4,740,169 3,231,596 13,755,043 63-64 6,383,278 4,933,491 3,500,801 .14,817,570 64-65 6,383,278 . 5,353,877 3,779,444. 15,516,599 65-66 6,883,278 5,417,100 4,203,059 ; 16,503,437 66-67 6,883,278 7,571,961 4,576,669 19,031,908 67-68 8,390,000 8,036,447 . 7,170,687 23,597,134 68-69 8,990,000 8,694,894 · -6,656,452 24,341,346 69-70 10,312,000 10,019,205 7,662,785 27,993,990 70-71 15,061,650 13,994,465 8,322,852 37,378,757 71-72 18,062,350 13,860,270 11,480,503 43,403,123 72-73 18,062,000 15,633,150 11,008,560 44,703,710 73-74 18,062,000 16,002,442 11,087,647 45,152,089 74-75 . . : (C) 25,838,000 19,671,726 11,174,298 56,684,024 75-76 '. 47,062,000. 20,000,000 (D) 11,000,000 (0)78,062,000 Payments $ 347,818 384,950 397,889 436,781 532,002 637,710 676,432 714,741 1,013,763 1,081,890 1,161,112 1,237,710 2,162,994 2,361,462 2,600,032 2,660,285 3,460,393 3,801,354 4,641,980 5,022,769 5,420,736 · 6,712,447 7,654,063 9,469,085 , 10,223,534 10,959,666 12,778,505 15,113,169 23,819,080 35,689,456 40,969,349 47,417,286 52,446,612 60,000,000 * Benefit Payments includes only payments to Retirees -- does not include refunds for withdrawl or lump siim death benefits or expenses for operating off ice. .(A) Includes $1,030,000deficiency appropriation) -. (B) Includes Individual Deposits-- ' · (C) includes $7,776,000 deficiency appropriation- ID) Estimated figures Legislative Appropriations (Left) Always Higher Than Contributions Benefit Payments Drained Funds' Total Income Genuine Thermal · LOOK fOrnjl KAMI ONWltOCK This month you can have complete ex- l AFTER terior casin9 and S '" S * hen y ° U replace your old windows with Nu-Sash... end painting and caulking problems, beau- lily your home ... but act now. For over 34 years, Nu-Sash has pioneered the window features that save you money and time while providing new comfort and beauty. Replace old windows and save in many ways. WE'RE IHi ABTWHniB KAUtM TWS ARU RWIVKOSTOUIWIIMWSiMlDOOIS HUB a© MAKEIS Of m RUT HUH IKTAl If LT STOmK MDWAT1K STm WMNW NM EXCLUSIVE THRMOtOa FJU.V.E Cu£oa Htj **try window in bant, bnck vtnetr, nxaomy end Wocl coniimcfcon. I! atom wndo*t to bneihe. rtixa tfeon- ogc to ttoninai* 18 re) aid poin)-p«fe$. brcAf. glow without diicumblin; rnjrae. SUPERKXFElTWEATritKSTRrTINC- Wtct^trjtnppinQ OTOv^d ftfj ffJO*00*e pone* phs exdwnt »wyl jffl s«ol ir-uS out dutf. «dixT cri rant. Fcnrii con'l ro*lJe. tad or fen. WUlTWOSmON.SaF-iOCWNG «m.i«i-«w«icuaicci. Vfrt ponel cuntffuttiofi and nsyd fttr- (oodireed c"d iocXxr fnohed mfe ony 0lo»$ screen elec'rojfolkolljr filte^i out ·' Pl -^* t * tffv * "·^ ^oefc' n fi tewer. db*.. ,^W^ ^ rwslj ro(, corooe, sfry!Jt"T -- -- M. \ 5: Sotcd eno^«l'»! ritiXtcHipping, is ADVANCED OBK3NF£A7WE nxwroiovt to a-9, eorrosK", i " it Lower healing costs ·£ Windows lilt-in lor easy Cleaning ir Available with insulating glass to eliminate storm windows, reduce outside noise it Fast. "r.o mess" iralalialion ic Many styles lo enhance your home There's a NU-SASH man near you Call in Charleston 343-9484 West Virginia 1-800-642-9014 Out of State 1.800-624-8231 NU-SASH OF CHARLESTON P.O. KM 376 CHARLESTON, W.VA. 13)22 GI -otW » »"-» hrwwr e no o Cl ^-tOd ftf e frn tt*~tflt ff ? BtstOoyTimc . NAME CN-SW-VJW OTHER GRANTS were to follow and in 1963, the legislature gave this'teacher an additional f 10.34 a month. In 1965 it gave 122.88 a month. 19.50 in 1968, $19 in 1969, 144.50 in 1970.155.63 in 1971, $26.43 in 1973, $26.43 again in 1974 and $50.47 in 1975. This teacher's monthly benefit payment is now $381.45, of which $355.18 is an outright grant by the legislature. . In addition to the $2,450,000 which the prior service provision in 1941 is costing each year, a 1949 added benefit is costing 14 million annually, and a 195? additional benefit is costing $2,272,000 a year. The other added benefits cost as follows: one in 1962 was $75,000 and a second that same year cost $2,839,000; 1963, $500,000; 1965, $1 million, 1968, $580,000; 1969, $1.3 million; 1970, $3,560,000; 1971, $5,580,000; 1973, $1.588,000; 1974, $1,460.000 and 1975, $2,529,000, all per year. The increases granted in 1973,1974, and 1975 were only for.those members who retired prior to July 1,1970. Members who retire after 1970 have the option of retiring under a different plan which permits them to get 2 per cent of their average salary. The average salary is determined by taking the five highest years of earnings out of the last 15 years service. As the salaries get higher the average salary becomes more, and benefits are greater. (Tin to Pi|t 5E) 3,300-Pound Steer County Fair Attraction A steer weighing 3,300 pounds will be one of the attractions at the third annual Kanawha County State Fair June 1-5 at Camp Virgil Tate. · Country music shows will be presented at 7 p.m. and 9 p.m. each day of the fair: Performers will include Charlie McCoy, Charlie Walker, Crystal Gayle and David Houston. ! Use Want Ads. Dial 3484848 The Original Replacement Window WITH THE PURCHASE OF 6 OR MORE NU-SASH WINDOWS- YOU WILL RECEIVE THE COMPLETE ALUMINUM EXTERIOR CASINGS FOR EACH ACT NOW THIS OFFER EXPIRES MAY 31,1976 CUT UP TRAY PAR Will ur IKMI rniv -- j* FRYERS 49 iC u. FRYER _ _ BREASTS ,.69 r ; FRYER LEGS QUARTERS ACM 5 LB. CANNED HAM GROUND CHUCK BUCKET STEAK SRLOMTIP ROAST 59 6 99 1 1 LB. 99 iO 49 49 SMLOMTIP STEAK GRADE'A'LARGE EGGS 1 65 1 59 LB. DOZ. 39 2 39 2% MILK.;.: .,.* ·.* NESCAFE COFFEE lOozJar- VALLEY BELL or BROU6HTON HOT DOG or HAMBURGER A t4flA ICECREAM % BUNS a 3ft 1 w w DIP CHIP OR SOUR CREAM 99 C 20 LB. AVERAGE WATERMELONS $ 1 STRAWBERRIES 49" 1 POTATOES 29 .10 IB. BAG NITRO KEY mm .'jO 1 - 1 !! lit Hi"! » V; ROSl KEY MARKET BUFFALO KEY MARKE1 Bui* alt f Vi RISK'S KEY MARKET HARDY FORD GREGORY $ KEY MARKET KEY MARKET 533? MM Di m COTobftH Ci i »» * »? Chjrip*!* f ii SMLFTS KEY MARKET SHEWS KEY MARKET r/, i y, MASON'S IACYS KEY MARKET KEY MARKET r if'r 1 »] f i l l «.)!(. 5- y'f'o- w v WINFIELD SHOP YOUR KEY MARKET LOC8L *"''"* * V: K f Y M A R K E T PWCES UN TltHH $I»AY4W»AY-T«»AY Wf H O N O R U S O A F O O D S T A M P S ui mo nwinjt sna m MOOT QUANTITY RIGHTS RtSERVD

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