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INCOME AND EXPENDITURES OF THE PENSION FUNDS, BY SOURCE OF INCOME AND
ITEM OF EXPENDITURE, 1902 to 1907-Concluded.
$707,979 $734, 101 $753, 190 $794,567 $859, 951 $114,042 idows.
258, 796 275,153 298, 115 296, 700 30, 779 164,337 Orphans..
8,595 8,318 8,681 7,819 8,013 Total pensions....
975, 370 1,017,572 1,059, 986 1,099, 086 1, 198, 743 582, 280 Lump-sum benefits... 1,352
531 All other expenditures. 5,645 15, 200
890, 897 933,384 972,356 993, 440 1,018, 006 516, 285 Widows.
376,681 394,924 417,764 437,794 457,223 228,918 Orphans.
9,582 9,929 11, 280 11, 418 11, GOS 5,977 Total pensions .. 1,277,160 1,338, 237 1, 401, 400 1,442,652 1,486,837 751,180 Lump-sum benefits. 3,086 1,280
601 All other expenditures.
105 Total expenditures.. 1,280, 246 1,339, 517 1,402,899 1,413, 710 1,498,399 751, 836 Sicilian fund: Pensions to Members.. (0)
37, 210 Widows.
15, 202 Orphans.
17,955 9,632 118 41
20 Total pensions..
37, CC9 42, 274 49, 855 52,530 55,050 27.633 Lump-sum benefits..
13 Total expenditures.. 37,609 42,781 49,981 52,756 55, 063 27,633 Total funds: Pensions to Members.
c 1,598,876 <1,667,485 C1,725,546 1,825, 217 1,915,011 948, 308 Widows..
c035, 477 € 670,077 c715,879 749, 696 805, 957 402,887 Orphans..
c 18, 177 c 18, 247
2,511, 243 2,594, 268 2,740, 630 1,361,093 Lump-sum benefits... 4, 438 1,767 1,408 2,872 2,076 All other expenditures.
1, 132 5,645 15,547 4,921 1,687 10, 496
105 Total expenditures.. 2,300,282 2,415,397 2,517,570 2,598, 827 2,753, 202 1,362,330 a First 6 months on!y. Not separately reported. c Not including Sicilian fund, not separately reported.
STATE RAILROAD MUTUAL BENEFIT SOCIETY.
This institution was primarily a compulsory sickness insurance society and only secondarily an old-age pension fund at the same time. Gradually, however, the old-age benefits became the most important function, and eventually widows' and orphans' pensions were added. The history of the origin and various changes of the individual mutual benefit societies and their consolidation into one organization has been given hereinbefore.
The purpose and scope of this society embraces medical and sanitary service, sick benefits, invalidity pensions, or lump-sum subsidies where the right of pension has not yet been acquired, and, in addition, similarly to the pension fund, it assumed the administration of accident compensation to its members. Since 1905 it has also granted pensions to widows and orphans.
Membership in this fund was compulsory, and included all persons who held membership in one of the three mutual benefit societies on December 31, 1896. This included mainly the employees of lower grades; but as in the original constitution of the Mutual Benefit Society of the Alta Italia Railroad, employees were permitted to hold membership in both organizations. Many of the employees retained membership in both the pension fund and the mutual benefit society. These evidently did not need any of the invalidity and oldage pensions of the mutual benefit society. The membership was therefore divided into two groups, “ordinary," who held membership in the mutual benefit society only, and “aggregate" members (compartecipanti aggregati) holding membership in both organizations.
The activity of this institution was many-sided, as explained above. It embraced insurance against sickness, accidents, old age and invalidity, with some provisions for the orphans and widows. not so extensive by far as in the case of pension funds.
A free medical service was kept up and supported by the mutual benefit society in conjunction with the second section of the new provident institute, both societies contributing their respective shares of the net cost in proportion to the total annual salaries of the respective memberships. The constitution of 1907 further provided that as soon as this amount becomes greater for the second section of the new provident institute the management shall be transferred to it.
Some features of this medical service were free to all employees of the railroads, whether holding membership in either of the two organizations or not. These free functions included (1) the determination of the fact of illness; (2) the furnishing and maintenance in repair of orthopedic apparatus (this, however, was limited to results of injuries in the course of service, as far as nonmembers are concerned); (3) the supply of antifebriles in recognized cases of malaria; and (4) the maintenance of life-saving appliances and furnishing of emergency first aid. The cost of the last two functions, and also of the first two as far as applied to nonmembers, was reimbursed to the mutual benefit society by the railroad administration.
MEDICAL AID TO MEMBERS.—The medical care of the members of the mutual benefit society and of the second section of the provident institute was not limited to the few functions enumerated above. It included all medical and surgical aid, medicines or their cost, hospital treatment when necessary, and other special treatment during illness or convalescence (but not including the cost of boarding and lodging), the cost of transportation of the sick or injured members to their homes or to the hospital, and, finally, funeral benefits, calculated at 5 per cent of annual wages, but not below 30 lire ($5.79).
Sick BENEFITS.—The above numerous forms of medical and surgical or pharmaceutical aid were granted to all members of the mutual benefit society as well as to those of the second section of the provident institute. The sick benefits, as compensation for wages lost, were paid only to the "ordinary” members, when because of illness no wages were paid. The sick benefits amounted to two-thirds of the daily wage beginning with the fourth day of illness and for not over 180 days in any one calendar year. No sick benefits were paid in case of illness, due to disorderly conduct, vice, fights, or in work outside of the railroad service, or when the sick member declined to enter a hospital when directed or to subject himself to the orders of the physicians of the society.
OLD-AGE AND INVALIDITY PENSIONS.—These may be described under two headings, pensions and lump-sum payments. Old-age and invalidity pensions were primarily intended for the “ordinary” members, the “aggregate” members receiving very little outside of medical treatment and other similar benefits.
The constitution of the society did not provide for any straight old-age pensions, but only for "continuous disability benefits." This means that the society did not recognize any standard retirement age; but as the benefits were continuous they may be classified with pensions, and as they were paid for disability they seem necessarily to include disability arising from old age. The requirement of 15 years of membership as a condition of granting such benefits brings them still nearer to old-age pensions.
After 15 years of membership, if forced to give up his employment because of proven disability (invalidity) the male employee holding membership in the society received a continuous benefit (or pension) equal to one-fiftieth of the average annual salary of the last three years for each year of membership, with a minimum limit of 80 centesimi (15 cents) and a maximum limit of 2.50 lire (48 cents) per day.
If such disability was due to an injury received in service or to miasmatic fevers contracted in service, then the amount of pension was increased by one-fourth within the limits of 1 lira (19 cents) and 3.10 lire (60 cents) per day, provided he did not receive compensation for the same injury or condition in conformance with other laws. These pensions could not be capitalized.
LUMP-SUM BENEFITS TO MEMBERS.-If a male employee was relieved of his position because of invalidity before 15 years of membership in the society had elapsed, he received only a small lump-sum payment, equal to one-twentieth of the average annual salary during the last three years for each year of membership, with a minimum of two months' pay according to that average annual salary. If disability was due to an injury received in service or to malaria, this benefit was increased by one-fourth, with a minimum of half the average annual salary.
BENEFITS TO FEMALE MEMBERS.-No continuous benefits or pensions were granted to female employees. Lump-sum benefits were given, amounting to one-twentieth of the average annual salary of the last 3 years for each year of membership, irrespective of its length, but with a minimum of two months' pay and a maximum of one year's pay according to that average salary. Such lump-sum benefits, moreover, were given not only in case of invalidity, but also in case of separation from service because of an abolished position or the transfer of the husband. The rule concerning the increase by one-fourth in case of injuries due to service or fevers was applicable. The rights of a female employee did not conflict with her rights as a surviving member of the family of an employee.
BENEFITS TO "AGGREGATE” MEMBERS.-The "aggregate" member, when relieved from duty because of disability, received a lumpsum benefit computed according to the same rules, but after deducting the amount paid to him by the pension fund.
If the “aggregate” member was entitled to a pension from the pension fund, the mutual benefit society added to this an additional amount necessary to bring the pension up to 365 lire ($70.45).
BENEFITS TO SURVIVORS. The earlier organization of the mutual benefit societies did not provide for any pensions to the widows or orphans of deceased members or pensioners of those societies. But the law of April 22, 1905 (Art. 21), regulating the operation of railroads by the Government, provided for this important extension beginning with July 1, 1905, i. e., for the widows and orphans of those members who die or leave the railroad service after June 30, 1905. No rights were acquired by this amendment by the survivors of deceased members who died before July 1, 1905, or who died subsequently but had been separated from the service before July 1, 1905.
The widow's right was subject to the condition that she had not been legally separated from her husband through any fault of hers. Furthermore, both her rights and those of her children were conditioned upon the following: That her marriage had taken place at least two years before the day of the member's death or dismissal from service, and that it was solemnized before the husband was 50 years old. This latter condition was waived, however, if the death was due to malaria or injury. All minor children, whether legitimate, illegitimate, adopted, etc., provided they were unmarried, were entitled to share in the pension.
These conditions, applicable to widows and children, were waived in case of marriages solemnized before July 1, 1905. The widows' pensions were to run until death or remarriage, and the children's pensions until reaching majority, or in case of the girls, until marriage, if preceding such majority.
The pension which the deceased member had been actually receiving before death, or if he died in active service, that to which he would have been entitled if he had been forced to resign because of invalidity on the day of his death, was taken as a basis of these widows' and orphans' pensions.
Of the actual or computed amount of the member's pension the widow received 50 per cent if she alone survived, and if minor children also survived she received 65 per cent in all. If children alone survived they received 50 per cent equally distributed, with a new redistribution every time one of them became of age. If only one minor child survived he received 25 per cent.
If in addition to the widow and her children other minor children of the deceased by a previous marriage survived, the 65 per cent was distributed in equal shares among all these survivors, the widow receiving two shares, and in no case less than 25 per cent.
These pensions or continuous payments to the widow and children were evidently the exception, for they were due only to the widow or children of such members as were receiving or were entitled to pensions at the time of death, and moreover, only if the granting of the pension or the death in service had taken place since July 1, 1905. If the husband died in active service before 15 years of membership, or if he died as a pensioner, said pension having been granted to him before July 1, 1905, the family received only a small lump-sum benefit. If he died in service this lump sum amounted to one-twentieth of the average annual salary of the last three years of service, for each year of membership in the society, with a minimum of two months' pay and a maximum of one year's pay according to such