Show pension Fund Must Be e Actuarially Sound Governor Lee has signed into law a abi abill abill bi bill which amends the present state retirement system to make it possible for cities counties and other subdivisions of the state if they desire to bring their into the tile system In signing the bill however ever the governor governor governor gov gov- said he believed it to be unsound actuarially This was the major objection objection objection tion made to the bill by its opponents when it was before the legislature They contended that the benefits provided could not possibly be financed by the contribution of 3 per cent from both employer and up to a maximum of 9 a month As a result of the argument over this question a provision was made in inthe inthe inthe the bill for an actuarial study to be completed prior to the 1951 legislative session and it was because of this provision provision provision pro pro- vision apparently that the governor signed the bill into law despite his doubts relative to its soundness In his message he called attention to o the provision provision provision pro pro- vision directing the legislative council to make an actuarial study and suggested suggested suggested sug sug- that the council proceed at the earliest possible date to work out the facts and figures so that the next legislature legislature legislature legis legis- lature could make whatever changes inthe in inthe inthe the rates are necessary There is little objection to the establishment establishment establishment of a program to give public who have given faithful service for a number of years a measure of security But the program must be sound If it is not financially sound one of two things is bound to happen Either the taxpayers of Utah will be bec c celled called upon at some future time to save the fund from bankruptcy or the fund will become insolvent and some public who have faithfully paid their money into the fund will be defrauded Either alternative is undesirable It i is therefore essential the program be se set setup set setup up on a basis which guarantees that promised benefits can be paid out of funds built up from employer and payments through the years |