The following table, showing the number and amounts of pensions by the five branches of the service, further illustrates the very high level of pensions both to the members and to the widows. Unfortunately it was possible to bring the data down only to 1899 for the Adriatic fund and to 1903 for the Mediterranean fund, later data not being available. But the fluctuations are not very great, nor could there be any radical change, since the provisions of the constitution regulating pensions have not undergone any important changes since 1890, while the rates of contributions from both sides have been increased to meet the cost of the pensions. The average amount of the pensions fluctuated for engineers and firemen roughly between $200 and $300, for the train service personnel between $150 and $200, for the trackmen and other persons employed in the maintenance of way between $100 and $120, for the station and yard service between $115 and $125, and among the office force, this class containing the highest paid employees, between $300 and $400. The widows' average pensions are equal to about half the average pensions of the members. NUMBER AND AVERAGE PENSIONS GRANTED EACH YEAR TO MEMBERS AND THEIR WIDOWS BY THE ADRIATIC AND THE MEDITERRANEAN PENSION FUNDS, 1890 TO 1903, BY BRANCH OF THE SERVICE. MEMBERS. Adriatic fund: Num- Aver- Num- Aver-Num- Aver- Num- Aver- Num- Aver-Num- Aver ber. age. ber. age. ber. age. ber. age. ber. age. ber. age. $193 123 $105 21 179 125 104 17 185 28 187 32 177 37 23 30 212 212 106 115 193 555 105 1890.. 24 241 1891. 40 204 1895. 34 269 31 183 115 149 385 406 226 93 334 370 181 80 336 316 193 196 209 222 190 230 108 357 477 184 NUMBER AND AVERAGE PENSIONS GRANTED EACH YEAR TO MEMBERS AND THEIR WIDOWS BY THE ADRIATIC AND THE MEDITERRANEAN PENSION FUNDS, 1890 TO 1903, BY BRANCH OF THE SERVICE-Concluded. MEMBERS-Concluded. Mediterranean fund-Con. 1901.. Num-Aver-Num- Aver- Num-Aver- Num- Aver- Num- Aver- Num-Averber. age. ber. age. ber. age. ber. age. ber. age. ber. age. 44 $240 55 $172 177 454 106 583 176 462 108 757 279 187 184 419 113 614 The relation between the average pension and the average salary, by branches of the service, is clearly brought out in the following table. Five-year averages have been used so as to eliminate accidental annual variations. The members' pensions amount to about 60 to 70 per cent of the wages, and the widows' pensions about 30 to 35 per cent. The pensions are proportionately highest among the office employees where longer service is possible before invalidity occurs. PROPORTION BETWEEN SALARIES AND PENSIONS OF ADRIATIC AND MEDITERRANEAN PENSION FUNDS, BY BRANCHES OF THE SERVICE, 1890 TO 1903. FINANCES. A general review of the finances of the three pension funds since their organization in 1890 is given in the following table. Their combined assets in 1890 were $15,841,525, and in 1907 when the three funds were united the assets amounted to over twenty-two million dollars. Nevertheless, a more careful analysis shows that their finances were not in a satisfactory condition. The annual excess of income over expenditures rapidly decreased except for the small Sicilian fund. The Adriatic fund had a deficit annually since 1900, which the very much increased revenues of 1902 (i. e., the increase of members' contributions from 4.5 to 5.5 per cent of the salary, and of the railroad contributions from 5 to 8 per cent) succeeded in reducing only for a time, but could not altogether obliterate. The Mediterranean pension fund also showed a deficit in 1901, and while the increased revenues of 1902 succeeded in creating a surplus, it rapidly declined during the following years. As the number of pensioners rapidly grew, the expenditures increased very much faster than the income; thus the combined revenues in 1907 ($2,827,439) show an increase of less than 50 per cent over those of 1890, while the expenditures ($2,809,937) are more than four times as great as those for 1890. Of course, as the admission of new members was practically discontinued in 1897, the pension funds were winding up their affairs, but the computation of the actual obligations repeatedly indicated that the funds were not solvent. FINANCES OF THE ADRIATIC, MEDITERRANEAN, AND SICILIAN PENSION FUNDS, 1890 TO 1907. a This number does not equal the assets in 1895 plus the curplus in 1896; the figures are given as shown in the original report. b First six months. e Last six months; united fund. In the following table the income and expenditures of the three pension funds are shown for the period since their reorganization in 1902 until their consolidation into one pension fund in 1907. The total income for 1906 amounted to $2,774,611, and for the first six months of 1907 to $1,429,406. The regular railroad contributions represented the largest item in these two years, being in 1906 $978,560, or 35.3 per cent of the total. Adding to this the income from the proceeds of the sale of tickets of admission to stations, $90,993, or 3.3 per cent, the total share of the railroads was 38.6 per cent. Income from interest and investments in some years even exceeded the railroad contributions; in 1906 it amounted to 35.2 per cent of the total. Thus the employees themselves contributed only one-fourth (25.1 per cent) of the total revenues of the funds. A decided increase in the revenues is noticeable in 1902 as compared with the preceding years. This is caused by the increase of the contributions of both the members and the railroads, as pointed out in 67725°-VOL 2-11-30 the history of the funds. The members' contributions were 4.5 per cent of their salaries until October 20, 1902, and 5.5 per cent since that date. Thus for the larger part of the year the smaller contribution was exacted. On the same date the railroads' contribution changed from 5 per cent to 8 per cent of the salaries; thus the members' contribution increased by 22.2 per cent, and that of the railroads by 60 per cent. As a result, the share of the members' contributions to the total revenue increased from 25.6 per cent in 1902 to 26.4 per cent in 1903, while that of the railroads increased from 29.3 per cent to 34.8 per cent. In the expenditures of the pension funds the main item naturally consists of members' pensions, followed by widows' pensions, the latter including the shares of minor children whose mothers are living. Pensions to orphans do not represent a very large amount, and lumpsum benefits are insignificant, notwithstanding numerous provisions in the constitutions of the funds concerning such benefits. The vast majority of the members of the pension funds evidently earn pensions. The proportion between the amounts paid out to members and to widows remains fairly uniform. In 1902 the amount paid to widows was about 40 per cent, and in 1906 about 42 per cent of the amount paid to members. This proportion indicates that the Italian railroad pension funds are much more than merely old-age and invalidity pension funds, since they protect thousands of families of deceased employees and pensioners. INCOME AND EXPENDITURES OF THE PENSION FUNDS, BY SOURCE OF INCOME AND ITEM OF EXPENDITURE, 1902 TO 1907. |