ECONOMICAL ESTABLISHMENTS. PROGRESSIVE ANNUITY FUND.
SOCIETY FOR THE ENCOURAGEMENT OF NATIONAL INDUSTRY
A plan is in preparation for the establishment of an annuity fund.
It is to be named _Caisse des Placemens en Viager_. It is to be
established at 440 Rue Saint Méry and 435 Rue du Renard Saint Méry. Its
motto is _surety, stability, simplicity_. Those who hold shares are to
enjoy a progressive annuity. This annuity is paid according to their
ages, and not to their shares; hence all the holders of shares who have
attained any particular age receive the same rate of interest whatever
may have been the price of their shares. The _minimum_ of rate for the
first age is six livres per share, and is assigned to the first class
only; the primitive rate of the subsequent classes rises gradually to
the twelfth, which comprehends the holders of shares who have attained
their sixtieth year. By reckoning from the rate assigned to the first
class, the annuity increases at fixed epochs, and rises by thirty-five
gradations to the maximum of 5000 livres, which belongs to all the
classes, and is paid to all holders of shares who have attained
the age to which this last term of the progression relates. All the
intermediate terms determine equally what is to be paid, without any
distinction to the holders of shares in each class, in proportion as
they arrive at the different ages which correspond to each rate of
annuity. Those holders are divided into twelve classes, and each class
into twelve series, each of which has a separate and distinct account.
At first view this plan seems to resemble a Tontine, but it is a very
different thing. A Tontine divides annually amongst the survivors the
shares of those deceased, but in this fund the probabilities of human
life have been calculated, and by making them agree with the decrease
of the capital invested, which together with their interest serve to
augment the annuities, the movement of the funds and the death of the
holder of shares are so combined that every holder knows at any given
point the benefits he will derive at the different periods of his life.
The principle of the establishment consists “in an equality of
annuities, payable to the same ages, whatever may have been the time
of investment of the share, combined with an equality in the number of
survivors among such holders of shares as have attained the same age,
whatever may have been the time of becoming such.”
The holders have been distributed into twelve classes, the first of
which has been fixed at 3200. It comprises only such individuals as are
under a year old, and serves as a regulation of the decreasing numbers
of each subsequent class. Thus the numbers decreasing of the shares in
each class are as follows:
First 3200
Second 2400
Third 2242
Fourth 2102
Fifth 1940
Sixth 1792
Seventh 1648
Eighth 1438
Ninth 1200
Tenth 1020
Eleventh 838
Twelfth 656
[Sidenote: RENTE VIAGÈRE]
In order to make the annuities equal for all ages it has been
necessary only to reproduce in each class, at the age wherein each of
the subsequent classes are introduced, an operation which consists
simply in dividing this capital, the same for all the classes which
have attained the same ages, by the number of shares in the class in
question, which number is the same as that to which all former classes
are reduced.
The twelve classes comprise from one year to sixty-five years; each
class contains different periods of five, six, or seven years; all the
individuals comprehended under these periods are considered as being of
the same age, and paid as such until the extinction of the amount to
which they belong. The total number of shares cannot exceed 245,712,
and the prices of shares in the respective classes are thus regulated: