of Ways of Communication. The general supervision of the funds is vested in the latter ministry. Annually an account is taken of the finances of the funds for the purposes of determining whether the means are sufficient to cover the cost of accrued obligation computed according to the statistical tables embodied in the constitution.

It is evident that by this act only the general outline of the system of pensions is given. For the actual determination of the pension statistical data were lacking, therefore the enforcement of the act was postponed until such data would be available and their preparation was intrusted to a well-known mathematician, who had organized a pension fund for one of the largest private railway systems. This work was completed in about two years, and published in the end of 1890. However, by the decree of December 22, 1889 (January 3, 1890), the deductions from the salaries were ordered to begin on January 1 (13), 1890.

SAVINGS AND RELIEF FUNDS.

The organization of the savings and relief funds was considerably simpler. The conditions of membership are the same; also the sources of revenue (except that there are no initiation fees) and the system of administration. The differences are mainly in the substitution of lump-sum payments for pensions and in the method of distribution of the income from various sources.

In general the organization is as follows: Three funds recognized in each association-the savings fund, the general relief fund, and the special relief fund. Into the savings fund are paid those revenues which are contributed by the members directly; namely, the monthly deductions, the deductions from premiums, and the differences of salaries in cases of promotion; also additional voluntary payments, private contributions to this fund, and the interest and profits upon investments and operation of the fund.

The amount credited to each member in this fund is paid to him at the time of separation from the service; in case of death, to the beneficiary named by him or to his legal heirs.

Into the general relief fund are paid: The monthly contributions of the railway company, determined by the Ministry of Ways of Communication in conjunction with the minister of finance and the state comptroller, but not over 50 per cent of the monthly contributions by the membership, these being made simultaneously with the deductions from salaries and distributed proportionately to these deductions; the net proceeds from sale of unclaimed baggage or freight, computed annually and distributed proportionately to the annual deductions; interest and profits from investments and operations of the fund; special private contributions to this fund. These minor

revenues are distributed proportionately to the total accumulations

of members in this fund. When the separation from the service takes place after ten years, the member receives 50 per cent of the amount credited to him in this general relief fund, and additional 5 per cent for each additional year of service, so that after twenty years of service the member receives the whole sum in this relief fund. The employees of the train service are entitled to 51 per cent of their credits after eight years and 7 per cent additional for each additional year, with the total credits after fifteen years of service. If the employee is dismissed from the service because of sickness or an injury, which disables him from further service, or because his position is abolished, he receives the total amount credited to him. in the general relief fund without regard to the length of service. In case of death of the member the amount to his credit in the general benefit fund is paid over to his widow, or, if no widow remains, to his children; if neither widow nor child remains, the amount is distributed among the accounts of the other members of the fund.

Into the "special relief fund" are paid the fines collected, moneys due from the associations and unclaimed for ten years, salaries due to employees of the company and unclaimed for ten years, interest and profits, and the following three sources, at the option of the company: Interest on advances and loans to the employees, unclaimed dividends and interest on bonds, and rentals for the advertising and bookselling privileges in the stations. These revenues of the special benefit fund are not distributed among the members' accounts.

From this fund lump sum or annual benefits may be granted to an employee dismissed because of an injury or grave and incurable disease and unable to get along without some assistance. These benefits are additional to and independent of the payments from the savings fund and general benefit fund.

Benefits are also granted from this fund to children below 18 years of age of a deceased member, or of one dismissed because of injury or incurable disease, resulting in total disability and helplessness. These benefits consist of one lump-sum payment when the member had been employed less than eight years, and annual payments if he had been employed over eight years. In case of children attending a secondary school the benefits may be continued until the age of 20. The amounts of these benefits must be determined by the constitution and by-laws, taking into consideration all the conditions of the deceased parent's service and also the available means of the special benefit fund.

When both parents have been members of the fund, the continuance of one in the service does not interfere with the rights of the children for such additional benefits.

PENSION FUND OF THE STATE RAILWAYS.

With the rapid nationalization of the private railroads the question of pensions for the employees of the State grew in importance. In compliance with the law of May 30, 1888, pension funds were organized by fourteen railway companies and savings funds by seven companies, but most of these railway systems were soon bought by the Government and it assumed the obligations of the pension fund. It was the almost unanimous opinion of all the important officials connected with the operation of the state railways that one general fund for all state railway employees was preferable to separate funds for separate railways. A special commission was appointed for the consideration of this problem in 1889, but it soon found it necessary to suspend its activities because of absence of statistical data. After the publication of this data in 1890, another commission was appointed in 1892.

The commission decided that a pension fund was much preferable to a savings fund, as the guarantee of a continuous pension was more desirable than the payment of a lump sum, and the general plan of the State Railway Employees Pension Fund, approved on June 3 (15), 1894, and embodied in the constitution of the fund on September 2 (14), 1894, follows the line of the pension funds for private railways as described above.

Membership in this fund is obligatory to all employees and workmen of the state railways and the central offices of these railways, except members of private superannuation funds (emeritalnya kassy) which had been organized in the earlier years, persons entering the service at the age of 60 or over, persons employed for a term not exceeding one year, and all workmen during the first year of employment. Members of private superannuation funds and persons employed one year or under may join it voluntarily and are entitled to the same benefits as the obligatory members. Having once joined the pension fund, they can not give up this membership. Employees cease to be members when they are separated from employment in any state railway after thirty years of service, provided they have reached the age of 55 (in case of members of the train service, 50 years), and all employees having reached the age of 60, no matter what their length of service.

The sources of revenue of the pension fund are the same as for the pension funds of the private railroads; namely, the obligatory deductions from the earnings of the members, 6 per cent of the annual salary as initiation fee, 6 per cent of the monthly salaries as a regular monthly contribution, 10 per cent of the special prizes and awards, and the difference of salary for three months in case of promotion. For the purpose of these deductions no salary is considered as being

in excess of 2,400 rubles ($1,236). Voluntary additional contributions may be made, not to exceed in any one year the annual sum of monthly contributions; and if intended to serve to increase the widow's pension, they must not exceed 50 per cent of the monthly contributions. The annual subsidy from the state treasury equals one-half of the annual sum of the monthly contributions of the members.

Miscellaneous revenues are the same as in the case of the private railway pension funds; namely, net proceeds from unclaimed baggage and freight, penalties collected, income from rentals for advertising and newspaper and bookselling privileges on railway stations, unclaimed payments due by the fund, contributions, and accidental revenues. Direct revenues of the fund consist of interest and profits. And finally at the time of establishment of the fund, or of acquisition of private railways, the fine funds and other funds and sums are added to the general pension fund.

The distribution of the various revenues is somewhat simpler than in the case of the private railway pension funds. The obligatory contributions of the members are credited to their individual accounts. The miscellaneous revenues (except the benevolent contributions, when the object is designated) and the fine and other funds transferred at the beginning shall constitute a special fund for payment of benefits and pensions to children and orphans of members and pensioners. From the interest on investments owned by the pension fund, the various funds are credited with 4 per cent per annum, and the remainder, if any, is transferred to a surplus fund. The monthly subsidies of the treasury are used, first, to cover any existing deficits; then, to swell the children and orphans' fund until it is brought to the full computed value of its obligations; of the remainder, amounts equal to one-half of the monthly contributions of the married male members are credited to personal accounts of the wives; what is left after that is distributed among the accounts of the members proportionately to their monthly contributions.

The surplus formed as indicated above is used to meet deficits and certain other payments which will be mentioned later; when it reaches 10 per cent of the computed value of all obligations the revenues due to the surplus are diverted into other channels; when the surplus falls below that level it again claims these revenues. All the amounts of the pension fund must be invested in government bonds, government guaranteed securities, or other specified securities.

Benefits paid by the fund may be either pensions or lump sums; and they may be paid only at the time of leaving the fund. Two classes of pensions are recognized, ordinary and increased. Ordinary pensions are paid at the time of separation from service after

at least 15 years of service, or at the end of membership in the fund and after at least 10 years of service, when it is paid as an addition to the salary.

The increased pensions are granted in cases of full disability because of a grave and incurable disease, after at least fifteen years of service and membership in the fund.

The amount of the pension depends upon the age of the pensioner and the amount of the accumulations credited to him, and is obtained by multiplying the sum of accumulation by a variable factor depending upon age, according to a table attached to the constitution, the factor being greater in case of the increased pension than that of the ordinary pension. The accumulated credits are computed each year for each and every member, one important provision being that the rate of interest varies with the age of the employee and his length of service, the minimum being 4 per cent. On the whole this rate of interest increases with the age of the employee at the beginning of service and also with the length of service, until it reaches the tenth year, when it very suddenly decreases, and again slowly increases during the further years of service. The computation of this interest is based upon many factors, such as mortality, chances of disability, and the relations between the normal and increased pensions.

The object of these complicated computations is that the increased pension due for complete disability at the end of 10 years of service be equal to 60 per cent of the full normal pension after 30 years of service, or at the age of 60; at the end of 11 years of service the increased disability pension must be equal to 62 per cent of the full normal pension, and increasing by 2 per cent for each additional year of service, become equal to the normal pension at the time when such pension is normally due (that is, either after 30 years of service or when reaching the age of 60). In any case the pension after 15 years of service must not be over 50 per cent of the amount of the annual salary or wages from which the 6 per cent deductions were made during the year preceding the granting of the pension; after 20 years it must not be over 75 per cent, and after 25 years not greater than this amount of wages. When the accumulated credits exceed the capitalized value of the pension the difference is paid over at the time when the pension is granted.

The conditions of discontinuance of the pensions are the same as for the funds of the private railways, namely, death of the pensioner, loss of civil rights, recovery from the disease for which the pension was granted, entrance into a monastery, or unexplained absence.

Upon the death (or legal death) of an employee who had been a member of the fund for five years, or was a pensioner of the fund,