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Multiemployer Pension Plans
Under Collective Bargaining
Spring 1960

P r e v a le n c e
Benefit p r o v is io n s
A d m in is t r a t iv e pro ce d u re s
Functions of the ad m in istra to r
In d iv i d u a l w o r k e r ’s p e n s io n rights
F in a n c ia l m a n a g e m e n t

Bulletin No. 1326
U.S. DEPARTMENT OF LABOR
in co oper at i on with

BUREAU OF LABOR S T A N D A R D S
Arthur W. Mot l ey , Di r ector



Arthur J. Goldberg, Secreta ry
BUREAU OF LABOR STATISTICS
E wa n C l a g u e , C o mmi s s i o n e r

Multiemployer Pension Plans
Under Collective Bargaining
Spring 1960

•

P r e v a le n c e

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B e n e fit p r o v is io n s

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A d m in is t r a t iv e p r o c e d u r e s

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F u n c tio n s o f the a d m in is t r a t o r

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In d iv id u a l w o r k e r ’s p e n s io n rig h ts

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F in a n c ia l m a n a g e m e n t

Bulletin No. 1326
June 1962

U.S. DEPARTMENT OF LABOR
in cooperation with
B U R E A U OF L A B O R S T A N D A R D S
Arthur W. Motley, Director

Arthur J. Goldberg, Secretary
BUREAU OF L A B O R S T A T IS T I C S
Ewan Clague, Commissioner

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. - Price



cents




Preface
The W e lfa re and P e n sio n P la n s D is c lo s u r e A c t, e ffe c tiv e January 1, 1959,
w hich is a d m in iste re d by the U. S. D epartm ent o f L a b o r, brou gh t into the cu stod y
o f the B u reau o f L a b or Standards a vast c o lle c t io n o f b a s ic d ocu m en ts and re p o rts
dealin g w ith w e lfa r e and p e n sio n plans in e ffe c t throughout the United States.
In
co o p e r a tio n with the B ureau o f L a b o r Standards, the B ureau o f L a b o r S ta tistics
u n dertook this co m p r e h e n siv e study o f the c h a r a c t e r is t ic s , types o f b e n e fits, and
a d m in istra tiv e fe a tu re s o f m u ltie m p lo y e r p en sion plans under c o lle c t iv e b a rg a in ­
ing.
It is b e lie v e d that this study accou n ts f o r a ll o r v irtu a lly a ll such plans
co v e rin g m o r e than 25 w o r k e r s , in e ffe ct in the sp rin g o f I960.
The in fo rm a tio n and docu m en ts re q u ire d to b e file d with the D epartm ent
w e re stipu lated in the D is c lo s u r e A ct and in the D e p a r tm e n ts fo r m s , w hich w e re
m ade a v a ila b le to plan a d m in istra to rs.
T his study m ak es u se o f th ese su b ­
m is s io n s , p a r tic u la r ly the d ocu m en ts, but it is not b a sed e x c lu s iv e ly on the
in fo rm a tio n subm itted to the D epartm ent under the D is c lo s u r e A ct; oth er r e ­
s o u r c e s o f the B u reau o f L a b o r S ta tistics w e re a ls o u sed .
S in ce this is the f i r s t study o f its type b a se d on the D is c lo s u r e A c t
file , a w o rd on the c h o ic e o f su b je ct and the s co p e o f the study s e e m s a p p r o ­
p r ia te .
T h e re w as no intention on the p a rt o f eith er B ureau, o f singling out
m u ltie m p lo y e r p e n s io n plan s fo r s p e c ia l trea tm en t, although both B ureaus sh ared
a k een in te re s t in the o p e ra tio n o f th ese jo in tly a d m in iste re d p r o g r a m s .
As
o r ig in a lly planned this study w as to be fo llo w e d by a study o f the fin a n ces o f
m u ltie m p lo y e r p e n sio n p la n s, and by s im ila r a n a ly ses o f sin g le e m p lo y e r p en sion
plans and o f sin g le and m u ltie m p lo y e r w e lfa re p la n s, until eventually the g re a t
p oten tia l o f the e n tire file would be e x p lo re d .
A lthough this s e r ie s o f studies
is not p r e s e n tly in p r o g r e s s , it is hoped that it can be rein stitu ted at so m e
tim e in the fu tu re.
The B ureau o f L a b o r S ta tis tics , w hich takes r e s p o n s ib ility fo r the c o n ­
tents o f this b u lletin , is g ra tefu l fo r the a s s is ta n ce and co o p e ra tio n ten d ered by
the B u reau o f L a b o r Standards, and, in p a r tic u la r , the staff o f its D iv is io n o f
W e lfa re and P e n s io n R e p o rts .
S u m m a ry a r t ic le s o f this study app eared in the O cto b e r 1961 and the
F e b r u a r y and A p r il 1962 is s u e s o f the M onthly L a b o r R e v ie w .
A few m in o r
d iffe r e n c e s in the data r e p o rte d , due to la te r r e v is io n s , w ill be found in this
fin a l b u lletin .
T h is study w as undertaken in the B ureau o f L a b o r S ta tis tics , D iv isio n
o f W ages and In d u stria l R e la tio n s, under the g e n e ra l d ir e c tio n o f J osep h W. B loch .
The b u lletin w as p r e p a r e d by W alter W. K o lo d ru b e tz , who a ls o planned and
su p e rv ise d the a n a ly sis o f the rep o rtin g fo r m s and plan d ocu m en ts and the c o m ­
putation o f the data.
H a rry E. D a v is, M a u rice L . Cunningham, and Stanley S.
S acks w e r e r e s p o n s ib le fo r the plan a n a ly sis.
The en tire p r o je c t was under
the d ir e c t su p e r v is io n o f D onald M . Landay.




in




Contents
Ffetge
P r e fa c e

--------------------------------------

C hapter I. In trodu ction ---------S cop e and m e t h o d ---------------Chapter II. P r e v a le n c e and m a jo r c h a r a c te r is tic s
S ize o f p l a n s -----------------------------------------------------------Industry and union re p re se n ta tio n ---------------------G e o g ra p h ic a re a ----------------------------------------------------W o rk e r m o b ility
T r a n s fe r a b ility o f p e n sio n rights
R e c i p r o c i t y --------------------

iii
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2

5
5
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9

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C on tribu tion s b a sed on earn in gs o r p a y r o ll —-------------------- ----------------------- —
O ther con trib u tion b a s e s ----------------------------------------------------------------------------------

15
15

C hapter III. B en efit p r o v i s i o n s ------------------------------------------------------------------------------P a r tic ip a tio n re q u ire m e n ts -----------------------------------------------------N o rm a l re tire m e n t p r o v is io n s
N o rm a l r e tire m e n t age ----B en efit fo rm u la s ----------------P a st s e r v ic e b en efit fo rm u la s
S o c ia l s e c u r ity in t e g r a t io n ---M inim um b en efit — ----------------F o r m o f paym ents
O ptional fo r m s o f b en efit p a y m e n t --------------------------A m ount o f n o rm a l re tir e m e n t b en efit ---------------------E a rly and d isa b ility r e tire m e n t, and vestin g -------------E a r ly re tire m e n t p r o v is io n s -----------------------------------D isa b ility r e tire m e n t p r o v is io n s ----------------------------V estin g p r o v is io n s ——------------------------------------------------Death b e n e f i t s -------------------------------------------------------------------

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C hapter IV. A d m in istra tiv e p r o c e d u r e s --------------------------C o m p o sitio n o f the b o a rd -----------------------------------------------T e r m o f b oa rd m e m b e r s -------------------------------------------S ize o f b o a r d s -------------------------------------------------------------O ffic e r s o f the b oa rd
S e le c tio n o f o f f ic e r s
T e r m o f ch a irm a n ~
A ffilia tio n o f ch a irm a n
P r o c e d u r e s o f the b o a rd —
R eg u la r m eetin g s -------S p e cia l m eetin gs
Q uorum -------------L a ck o f quorum .
V oting
D e a d lo ck s and a rb itra tio n

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Contents—Continued
P age

C hapter V. F u nctions o f th e .a d m in istra tor and p ro te ctio n of
individual w o r k e r 1s pen sion r ig h ts -----------------------------------------------------------------------A d m in istra tiv e p r o c e d u r e s -------------------------------------------------------------------------------M aintaining r e c o r d s -------------------------------------------------------------------------------------R e ce iv in g a p p lica tion s -----------------------------------------------------------------------------------P r o c e s s in g c la im s ___________________________________________________________
D eterm in in g e lig ib ility ---------------------------------------A pp eals ------------------------------------------------------------------------------------------------------------F in al d e c is io n on appeals ----------------------------------------------------------------------------S e r v ic e -c r e d it in g p ro v is io n s ----------------------------------------------------------------------------A m endm ent o f the pen sion plan ------------------------------------------------------------------------R e s tr ic tio n s on ree m p lo y m e n t a fte r re tire m e n t --------------------------------------------R e s tr ic te d e m p lo y m e n t ______________________________________________________
M axim um earn in gs tests -------------------------------------------------------------------------------G eog ra p h ic lim its ____________________________________________________________
P e n a ltie s ---------------------------------------------------------------------------------------------------------N o tifica tio n ___________________________________________________________________
P r e c e d e n c e to a ss e ts in c a s e o f term in ation o f the p l a n _____________________
P r o te c tio n o f pen sion c r e d its in c a s e of w ithdraw al of
an individual e m p lo y e r -------------------------------------------------------------------------------C hapter VI. F in a n cia l m a n a g e m e n t______________
S e le c tio n o f m ediu m of fu n d in g -------------------------S e le ctio n o f c a r r ie r or c o r p o r a te tru stee —
R e c e ip t o f con trib u tion s -------------------------------------C o lle c tio n o f e m p lo y e r con trib u tion s _______
In sp ection o f e m p lo y e r r e c o r d s ------------------Investm ent p o lic y -----------------------------------------------A u th oriza tion o f e x p en ses and b en efits -----------P a rty m aking p a y m e n t----------------------------------Bonding r e q u ir e m e n t s ___________________________

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T a b le s:
1.
2.
3.
4.
5.
6.
7.
8.

M u ltie m p lo y e r pen sion plans under c o lle c t iv e bargaining
by date o f esta b lish m en t __________________________________________________
M u ltiem p lo y e r pen sion plans under c o lle c t iv e bargaining
by num ber o f w o r k e rs c o v e r e d ___________________________________________
M u ltiem p lo y e r pen sion plans under c o lle c t iv e bargain in g
by in du stry group ---------------------------------------------------------------------------------------N ational and in tern ation al unions pa rticip a tin g in
m u ltie m p lo y e r pen sion plans _____________________________________________
M u ltiem p loy er pen sion plans under c o lle c t iv e bargaining
by r e g io n and State ________________________________________________________
Type o f a d m in istra to r in m u ltie m p lo y e r pen sion plans
under c o lle c t iv e ba rga in in g ----------------------------------------------------------------------M u ltiem p loy er pen sion plans under c o lle c t iv e bargain in g
by indu stry group and m edium of funding _______________________________
M inim um age and s e r v ic e re q u irem en ts f o r p a rticip a tion in
m u ltie m p lo y e r pen sion plans under c o lle c t iv e b a r g a in in g _____________




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101
101
102
103

Contents— Continued
P age

T able s— Continued
9.
10.
11.
12.
13.

N o rm a l r e tir e m e n t age in m u ltie m p lo y e r p en sion plans under
c o lle c t iv e b argain in g by in du stry group ------------------------------------------------------N orm a l re tir e m e n t age in m u lti e m p loy er p en sion plans under
c o lle c t iv e ba rga in in g by m ediu m of funding ------------------------------------------------T ypes o f b e n e fit fo r m u la s in m u ltie m p lo y e r p en sion plans
under c o lle c t iv e ba rga in in g by industry g r o u p --------------------------------------------T ypes o f b e n e fit fo r m u la s in m u ltie m p lo y e r p en sion plans
under c o lle c t iv e ba rga in in g by m ediu m of fu n d in g -------------------------------------F o r m o f paym en t o f r e tir e m e n t b en efit in m u ltie m p lo y e r
p e n sio n plans under c o lle c t iv e bargain in g

F o r m o f paym ent o f r e tir e m e n t b en efits in m u ltie m p lo y e r
p e n sion plans under c o lle c t iv e bargaining
by m ed iu m o f funding -------------------------------------------------------------------------------------15. O ptional annuity fo r m s in m u lti e m p lo y e r p en sion plans under
c o lle c t iv e b argain in g by in du stry group ------------------------------------------------------16. O ptional annuity fo r m s in m u lti e m p loy er p en sion plans under
c o lle c t iv e bargain in g by m ed iu m of fu n d in g -------------------------------------------------17. N orm a l r e tir e m e n t m on th ly b e n e fits, exclu d in g s o c ia l s e cu rity
b e n e fits, fo r w o r k e r s earn in g $4, 800 p e r y e a r fo r 30 y e a r s
o f fu tu re c r e d ite d s e r v ic e by in du stry group, in m u ltie m p lo y e r
p en sion plans under c o lle c t iv e bargain in g --------------------------------------------------18. N orm a l r e tir e m e n t b e n e fits, exclu d in g s o c ia l s e cu rity b en efits,
fo r w o r k e r s earn in g $4, 800 ($ 4 0 0 p er m onth) p e r y e a r fo r
30 y e a r s of fu tu re c r e d ite d s e r v ic e by m ediu m o f funding, in
m u ltie m p lo y e r p e n sio n plan s under c o lle c tiv e b a r g a in in g ------------------------19. N orm a l re tir e m e n t b e n e fits, excluding s o c ia l s e cu rity b e n e fits,
fo r w o r k e r s earning $4, 800 p e r y e a r fo r 30 y e a r s of future
c r e d ite d s e r v ic e by type o f b e n e fit form u la , in m u ltie m p lo y e r
p en sion plans under c o lle c t iv e b argaining --------------------------------------------------20. P r o v is io n s fo r n o rm a l, e a rly , d isa b ility re tire m e n t, and
v estin g in m u ltie m p lo y e r p e n sio n plans under c o lle c tiv e
b argain in g by plan s and w o r k e r s c o v e r e d -------------------- .-------------------------------21. Type o f b e n e fit p r o v is io n s in m u ltie m p lo y e r p en sion plans

103
104
104
105

14.

22.
23.
24.

25.

26.

T ype o f b e n e fit p r o v is io n s in m u ltie m p lo y e r p en sion plans
b y m ediu m of funding -------------------------------------------------------------------------------------P r o v is io n s fo r e a r ly and d isa b ility re tirem en t, and v estin g in
m u ltie m p lo y e r p e n sion plans under c o lle c tiv e bargain in g
by in du stry g r o u p ---------------------------------------------------------------------------------------------P r e v a le n c e of le v e l in co m e option under ea rly r e tire m e n t
p r o v is io n s in m u ltie m p lo y e r p en sion plans under c o lle c t iv e
ba rga in in g by in du stry grou p ------------------------------------------------------------------------P r e v a le n c e o f le v e l in co m e option under ea rly r e tire m e n t
p r o v is io n s in m u ltie m p lo y e r pen sion plans under c o lle c t iv e
bargain in g by m ediu m o f funding ------------------------------------------------------------------P r o v is io n s fo r death b e n e fits b e fo r e and a fter r e tire m e n t
in m u ltie m p lo y e r p e n sio n plans under c o lle c t iv e bargain in g
by in du stry grou p ---------------------------------------------------------------------------------------------




vn

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Contents— Continued
Page

T a b les— Continued
27.

P r o v is io n s fo r death b en efits b e fo r e and a fter re tire m e n t
in m u ltie m p lo y e r p e n sio n plans under c o lle c t iv e bargain in g

28.

D esign ated o f f i c e r s o f b o a rd s in m u lti e m p lo y e r p en sion plans
under c o lle c t iv e bargain in g -----------------------------------------------------------------—------ 120
P r o v is io n s fo r s e le c tio n o f o f f i c e r s in m u ltie m p lo y e r p en sion
plans under c o lle c t iv e bargain in g --------------------------------------------------------------- 121
P r o v is io n s f o r s p e c ia l m eetin g s in m u ltie m p lo y e r p en sion
plans under c o lle c t iv e bargain in g —------------------------------------------------------------- 122
V oting ru le s in jo in tly a d m in iste re d m u ltie m p lo y e r pen sion
plan s under c o lle c t iv e bargain in g --------------------------------------------------------------- 122
P a r tie s p e r fo r m in g s p e c ifie d fu n ction s in m u ltie m p lo y e r
p en sion plans under c o lle c t iv e bargain in g ------------------------------------------------- 123

29.
30.
31.
32.

C h arts:
1.
2.

G row th in c o v e r a g e o f m u ltie m p lo y e r p en sion plans under
c o lle c t iv e b a rga in in g, 1943—59 -------------------------------------------------------------------M onthly n o r m a l re tire m e n t b en efits (exclu d in g s o c ia l se cu rity )
fo r a w o r k e r earning $ 4 , 800 a y e a r with 30 y e a r s o f future
s e r v ic e in m u ltie m p lo y e r p e n sion plans under c o lle c tiv e

6

A p p en d ixes:
A : S cop e and m eth od o f s t u d y ------------------------------------------------------------------------- ----B: F o r m D - l ----------------------------------------------------------------------------------------------------------




vm

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Multiemployer Pension Plans Under Collective Bargaining, Spring I960

Chapter L

Introduction

P r iv a te pen sion plans have been grow in g at a ra p id p a ce during the past
two d e c a d e s .
T h eir c o v e r a g e r o s e fr o m about 4 m illio n w o r k e r s in 1940 to
1 1 .2 m illio n in 1950, and to 2 1 .8 m illio n w o r k e r s (in clu din g 1 .6 m illio n r e tir e d
w o r k e r s ) in 1959* 1 C o lle c t iv e ly ba rg a in ed plans a ccou n ted f o r about h alf o f
I960 tota l c o v e r a g e .1
2
The dev elop m en t and grow th of jo in tly a d m in iste re d , c o lle c t iv e ly b a r ­
gained plans c o v e r in g w o r k e r s em p lo y ed by a n u m ber o f e m p lo y e rs in an in du stry
o r a r e a has con trib u te d to this expansion. Since th ese m u ltie m p lo y e r plans a re
r e la tiv e ly young— on ly a few e x is te d p r io r to 1947— th eir c o v e r a g e has r is e n
ra p id ly fr o m about a m illio n w o r k e rs in 1950 to 3. 3 m illio n in 1959, when they
c o v e r e d about a sixth o f a ll w o r k e r s c o v e r e d by p riv a te p en sion plans and about
a th ird o f th ose under n egotia ted p r o g r a m s . T h ese plans now in clu d e m o s t w o r k ­
e r s in s e v e r a l in d u strie s c h a r a c t e r iz e d by m u lti e m p lo y e r c o lle c t iv e barg ain in g .
H o w e v e r, s in c e a la r g e fr a c tio n o f the w o r k e rs under s m a ll a g reem en ts (those
c o v e r in g fe w e r than 1, 000 w o r k e r s each) do not yet have p en sion plan p ro te ctio n ,
r o o m fo r fu rth e r exp a n sion re m a in s.
The c o v e r a g e o f a m u ltie m p lo y e r p en sion plan under c o lle c t iv e b a r ­
gaining tends to p a r a lle l the c o v e r a g e of the m u ltie m p lo y e r c o lle c t iv e bargain in g
a g reem en t.
T y p ic a lly , a plan is e sta b lish e d by a union p ersu ad in g a group o f
e m p lo y e r s w ith w h ich it has a sin g le a g reem en t, o r s o m e tim e s a num ber o f e m ­
p lo y e r s un der se p a ra te c o n tr a c ts , to m ake s p e c ifie d paym ents to a p o o le d ce n tra l
fund. F r o m this p o o le d c e n tra l fund, ben efits a re p ro v id e d fo r the e lig ib le w o r k ­
e rs o f a ll con trib u tin g e m p lo y e r s .
T h ese plans m o s t co m m o n ly a re found in in ­
d u strie s such as c o n stru ctio n , fo o d , a p p arel, m ining, m o to r and w a ter tr a n s p o rta ­
tion, and s e r v ic e and tra d e, w h ich a re c h a r a c te r iz e d by s e a s o n a l and ir r e g u la r
em ploym en t, s m a ll e sta b lish m e n ts, and such freq u en t jo b changes that few w o r k ­
e r s re m a in w ith a sin g le e m p lo y e r long enough to q u alify fo r p e n s io n s .
Thus,
m u ltie m p lo y e r plans often p ro v id e pen sion c o v e ra g e fo r m any w o r k e r s who w ould
not, and p erh ap s cou ld not, be c o v e r e d by a sin g le e m p lo y e r plan.
A lthough 71 n ational and in tern ation al unions p a rticip a te in m u ltie m p lo y e r
pen sion plan s, a lm o st 2 out o f 3 w o r k e rs c o v e r e d by th ese plans a re r e p re s e n te d
by 1 o f 6 u n ion s: T e a m s te r s , A m algam ated C lothing W o rk e r s , International
Ladies* G arm en t W o rk e r s , C a rp e n te rs , E le c t r ic a l W o rk e rs (IBEW ), and U nited
M ine W o r k e r s .
On the oth er hand, m any oth er la rg e u n ion s, such as the S te e l­
w o r k e r s , Auto W o rk e r s , and R u bber W o rk e rs, r a r e ly p a rticip a te in m u ltie m p lo y e r
pen sion plan s, c h ie fly b e ca u se they have few m u ltie m p lo y e r a g re e m e n ts. A ll six
o f the unions w ith la r g e m u ltie m p lo y e r plan c o v e r a g e have one o r m o r e la rg e
national o r r e g io n a l plan s, such as the United M ine W o rk e rs R e tire m e n t Fund,
w hich c o v e r s n u m erou s e m p lo y e r s throughout b roa d g e o g ra p h ic a r e a s , o r th rou gh ­
out an in du stry.

1 A lfr e d M . Skolnik, "T r e n d s in E m p lo y e e -B e n e fit P la n s: P a rt II" S o cia l
S ecu rity B u lle tin , M ay 1961, p. 7.
2 D oroth y R . K ittn er, "H ealth, In su ra n ce, and P e n sio n P lan C o v e ra g e in
Union C o n tra cts, " M onthly L a b o r R e v ie w , M a rch 1962, pp. 274—
277. Data in this
a r tic le ex clu d e r e t ir e d w o r k e r s who a re in clu d ed in a ll the data in this r e p o r t.




2

The b en efit p r o v is io n s and a d m in istra tiv e fe a tu res o f m u ltie m p lo y e r plans
d iffe r sh a rp ly , in so m e r e s p e c t s , fr o m sin g le e m p lo y e r plan s. T h e se d iffe r e n c e s
stem , in part, fr o m the c h a r a c t e r is t ic s o f the in d u stries in w hich they o p e ra te ,
in p a rt fr o m d iffe r e n c e s in the c o lle c t iv e bargain in g rela tio n sh ip betw een the
p a r tie s , and in p a rt fr o m the d iffe r e n c e betw een a sin g le e m p lo y e r and a group
o f e m p lo y e r s who m a y, in th e m s e lv e s , c o m p r is e the la b o r m a rk e t, o r a la rg e
p a rt o f it.
T o c ite one exa m ple o f a fundam ental d iffe r e n c e : The re s p o n s ib ility
o f the individual e m p lo y e r in a m u ltie m p lo y e r plan is u su a lly lim ite d to the c o n ­
trib u tion o f a s p e c ifie d am ount o f m on ey on beh alf o f h is e m p lo y e e s , w h ile in a
sin g le e m p lo y e r plan the e m p lo y e r is u su a lly ob lig a ted to p ro v id e s p e c ifie d types
and le v e ls o f b e n e fits. No m o n e ta ry ob lig a tion s a re s p e c ifie d in the a g reem en t;
ra th er they a re im p lie d by the b e n e fits .
In m u ltie m p lo y e r a g re e m e n ts, on the
oth er hand, the m o n e ta ry o b lig a tio n s a re ty p ica lly s p e c ifie d , and the d eterm in a tion
o f b en efits is u su a lly le ft to the d is c r e tio n o f a jo in t e m p lo y e r -u n io n b oa rd , and
is often su b je ct to change at the d is c r e t io n of this b o a rd .
Although the a p p ro a ch e s to d e v isin g b en efits d iffe r , the b a s ic b en efits
o f m u lti e m p lo y e r plans a re s im ila r in type to th ose in sin g le e m p lo y e r plans.
H o w e v e r, so m e types o f b en efits su ch as v e s tin g , a re found m o r e often in sin g le
e m p lo y e r plans than in m u ltie m p lo y e r plan s, but this d iffe r e n c e is o ffs e t by the
in h eren t p o rta b ility o f c r e d ite d s e r v ic e am ong p a rticip a tin g e m p lo y e rs in m u lti­
e m p lo y e r plan s.
C o lle c t iv e ly b a rg a in ed sin g le e m p lo y e r and m u ltie m p lo y e r plans a lso
d iffe r sig n ifica n tly in th eir a d m in istra tiv e fe a tu re s .
M u ltie m p lo y e r plans a re
jo in tly m an aged by the union and the e m p lo y e r group w h ile, with s o m e e x ce p tio n s,
sin g le e m p lo y e r plans a re m an aged e x c lu s iv e ly by the e m p lo y e r . This d iffe r e n c e
p a rtly r e fle c t s the le g a l re q u ire m e n t, con tain ed in the L a b or M anagem ent R ela tion s
A ct, 1947, that both p a rtie s be eq u ally re p re s e n te d in the m anagem ent o f unionsp o n so re d e m p loy er-*fin a n ced w e lfa r e and p en sion funds. The a d m in istra tion o f
m u ltie m p lo y e r plans in v olv es su ch n on fin a n cial fu n ction s as p r o c e s s in g a p p lic a ­
tion s, p r o c e s s in g c la im s , and aw arding b e n e fits, as w e ll as such fin a n cia l fu n c ­
tion s as r e c e iv in g con trib u tio n s, m aking in vestm en ts, and paying b e n e fits.
A l­
though, as in sin g le e m p lo y e r plan s, so m e o r a ll o f th ese fu n ction s m ay be
d eleg a ted to oth er p a r tie s, g e n e ra lly the n on fina n cial fu n ction s a re handled d ir e c tly
by the jo in t u n ion -m a n a gem en t b o a rd . H ow ev er, in about 1 out o f 6 plan s, in ­
vestm en ts a re d e te rm in e d and b e n e fits a re paid by an in su ra n ce com pan y.
In
another fifth o f the plan s, in vestm en ts a re m ade through a c o r p o r a te tru ste e . In
the re m a in d e r, in vestm en ts a re m ad e and ben efits a re paid d ir e c tly by the b oa rd .
S cop e and M ethod
A m u ltie m p lo y e r p en sion plan under c o lle c t iv e b a rg ain in g , as the te rm
is u se d in this study, is a p en sion plan n egotiated by a union c o v e rin g the e m ­
p lo y e e s o f two o r m o r e fin a n cia lly u n rela ted e m p lo y e r s .
P lans e sta b lish ed and
m ain tain ed ou tside o f a c o lle c t iv e b a rg a in in g rela tion sh ip (su ch as u n io n -s p o n s o re d
plans) w hich a re w h olly fin a n ced by the m e m b e r s and to w h ich e m p lo y e rs are not
a party, a re e x clu d ed .
The c h ie f s o u r c e s o f in fo rm a tio n fo r this study w e re the r e p o r ts and
docu m en ts file d w ith the U. S. D epartm en t o f L a b o r f s B ureau o f L a b or Standards
pursuant to the W e lfa re and P e n sio n Plans D is c lo s u r e A ct (P u b lic Law 8 5 -8 3 6 )
by plans c o v e rin g o v e r 25 w o r k e r s . The fo r m s file d by o v e r 2 5 ,0 0 0 plans show ed
that they p rov id ed pen sion ben efits o r a com b in a tion o f w e lfa r e and pen sion b e n e ­
fit s . H ow ev er, no in form a tion w as a v a ila b le on the fo r m s d ir e c tly distin gu ish in g
m u ltie m p lo y e r plans fr o m sin g le e m p lo y e r plan s. It w as a ssu m ed that few m u ltie m p lo y e r p en sion plans under c o lle c t iv e bargain in g a re a d m in istered s o le ly by




3

e m p lo y e r s o r an e m p loy ers* a s s o c ia tio n , and n e a rly 2 0 ,0 0 0 such plans w e r e r e ­
m o v e d fr o m c o n sid e r a tio n . The d e s c rip tio n s and supporting docu m en ts o f the r e ­
m ain in g 5 ,6 0 0 pen sion plans a d m in iste re d jo in tly o r by an em p lo y e e o rg a n iz a tion
w e re exa m in ed to d e te rm in e w h eth er they w e r e , in fa ct, m u ltie m p lo y e r p en sion
plans under c o lle c t iv e b a rg a in in g . A co m p a r is o n o f the resu ltin g lis t o f plans with
oth er s o u r c e s r e v e a le d so m e o m is s io n s w hich w e r e fille d in by u sin g the B ureau o f
L a b o r S ta n d a rds1 union index r e fe r e n c e file .
M u ltie m p lo y e r p en sion plans not
under c o lle c t iv e bargain in g have b een ex clu d ed fr o m the study b e ca u se o f th eir un­
im p o rta n ce in r e la tio n to the w h ole p en sion fie ld at the p re s e n t tim e .
F u rth er
d eta ils o f s c o p e and m eth od o f study a re found in appendix A .
T h is b u lletin d e s c r ib e s the m a jo r c h a r a c t e r is t ic s o f c o lle c t iv e ly b a r ­
gained m u ltie m p lo y e r p en sion plans in the sp rin g o f I960, in cluding th eir s iz e ,
th eir p r e v a le n c e by in du stry and union, and th eir fin a n cia l and g en era l a d m in istra ­
tive fe a tu r e s . Of the 798 plans c o v e rin g 3. 3 m illio n a ctiv e and r e tir e d w o r k e rs
studied, 62 plans (7 .8 p e r c e n t), c o v e rin g 152,500 w o r k e r s , w e r e in the p r o c e s s
o f fo rm u la tin g and e sta b lish in g th e ir p r o v is io n s .
F o r th ese plan s, v e r y little
in fo rm a tio n oth er than the m a jo r c h a r a c t e r is t ic s w e r e ava ila b le at the tim e o f the
study. Thus, the a n a ly sis o f p en sion ben efit p r o v is io n s in clu d in g n o rm a l, e a rly ,
and d isa b ility p e n sio n s, v e stin g , death b e n e fits, and option al ben efit p r o v is io n s
w as lim ite d to 7 36 fu lly d e v e lo p e d plans c o v e rin g 3 .2 m illio n w o r k e r s . The c o m ­
p o sitio n , s e le c tio n , and p r o c e d u r e s of the b oa rd s o f a d m in istra tion o f the 7 36 plans
a re ex a m in ed in d eta il. T h e se d eta ils include the nu m ber, s e le c tio n , and tenure
o f b o a rd m e m b e r s and o f f i c e r s ; qu oru m and voting r u le s ; and p r o c e d u r e s fo r the
s e le c tio n of im p a rtia l u m p ir e s . In addition, plan p r o v is io n s d eterm in in g w o r k e r s 1
p en sion rig h ts, such as s e r v ic e c r e d itin g p r o v is io n s , the righ t o f the b o a rd to
red u ce the b en efits o f r e tir e d w o r k e r s , r e s t r ic t io n s on am endm ents o f the plan,
and r e s t r ic t io n s on re e m p lo y m e n t after re tire m e n t a re an alyzed.
Som e n on fin a n eia l a d m in istra tiv e deta ils (m aintaining o f r e c o r d s , d eterm in in g e lig ib ility ,
and appeals p r o c e d u r e s ) and ce r ta in fin a n cia l p r a c tic e s (in sp ection o f e m p lo y e r
r e c o r d s , c o lle c t io n o f e m p lo y e r co n trib u tion s, and bonding o f o ffic e r s and e m ­
p lo y e e s) are exam in ed in the con clu d in g ch a p te rs .
It m u st be e m p h a sized that this study, b e ca u se it d eals with the p r o ­
v is io n s o f plan d ocu m en ts, is a study o f fo r m a l ru le s and p r o c e d u r e s , not o f
actual p r a c t ic e .







Chapter II.

Prevalence and Major Characteristics

Seven hundred and n in e ty -e ig h t m u ltie m p lo y e r pen sion plans under c o l ­
le c tiv e b argain in g, c o v e rin g 3. 3 m illio n w o r k e rs , a ctive and re tire d , w e re in
e ffe c t in the sp rin g o f I960.
T h ese plans accou n ted fo r a lm o st a sixth o f the
estim a ted num ber o f w o r k e r s , a ctive and r e tire d , c o v e r e d by all p riv a te pen sion
plans, and about a third o f the estim a ted num ber o f w o rk e rs under a ll c o l l e c ­
tiv ely b a rga in ed plan s.
It is estim a ted that the 3. 3 m illio n w o rk e rs under a ll
m u ltie m p lo y e r pen sion plans re p r e se n te d roughly th r e e -fifth s o f the estim ated c o v ­
era g e o f all m u ltie m p lo y e r c o lle c t iv e bargaining a g reem en ts (excluding r a ilr o a d s ).
M u ltie m p lo y e r pen sion plans a re , on the w h ole, re la tiv e ly young. Only
8 o f the 7 36 plans in e ffe c t in the sp rin g o f I960 fo r w hich the date o f e s ta b lis h ­
m ent is known w e re e sta b lish e d p r io r to January 1, 1946— the e ffe ctiv e date of
s e v e r a l a d m in istra tiv e req u ire m e n ts of the T a ft-H a rtle y A ct 3 (chart 1 and table 1).
Seven p e rce n t o f the plans, c o v e rin g o v e r a fourth o f the w o r k e rs , w e re e sta b lish ed
b e fo r e 1950.
A spurt in the developm en t o f plans o c c u r r e d after 1954; about
60 p e rce n t o f the plans w e re le s s than 6 y e a rs old in the sp rin g o f I960.
Size o f Plans
The 798 plans studied ran ged in c o v e ra g e fr o m 26 to a p p roxim a tely
250, 000 a ctive and r e tir e d w o r k e r s . Although m u ltie m p lo y e r plans are g en era lly
thought of as la rg e s c a le u ndertakings, 54 plans c o v e r e d fe w e r than 100 w o rk e rs
each , and 230 plans had fr o m 100 to 499 w o r k e rs (table 2).
Plans with fe w e r
than 5, 000 w o r k e rs c o m p r is e d a lm ost nine-tenths o f the plans and n ea rly a fourth
o f the w o r k e r s . On the oth er hand, the 6 la r g e s t plans, each with o v e r 100,000 w o rk ­
e r s , c o v e r e d a lm o st a third o f a ll w o rk e rs under m u ltie m p lo y e r plans.
T h ese
six plans w e re as fo llo w s : United M ine W ork ers o f A m e r ic a W elfa re and R e t ir e ­
m ent Fund; C en tra l States, Southeast and Southwest A re a s P en sion Fund (T e a m ­
s t e r s ); The A m algam ated In su ra nce F u n d -P e n sio n Fund (C lothing W o rk e rs); A m a l­
gam ated Cotton G arm ent and A llie d In dustries R etirem en t Fund (Clothing W o rk e rs );
W estern C o n fe re n ce o f T e a m s te rs P en sion Fund; and International B roth erh ood
o f E le c t r ic a l W o rk e rs P en sion B en efit T ru st Fund. Slightly m o r e than a third o f
the w o r k e rs w e re attached to 46 plans with c o v e ra g e s ranging fr o m 10, 000 to
100,000 w o r k e r s .
Industry and Union R ep resen ta tion
M o re than th r e e -fifth s o f the plans (499), with 2 m illio n w o r k e rs , w e re in
nonm anufacturing in d u strie s, and o v e r o n e -th ird o f the plans (286), with about
1. 3 m illio n w o r k e r s , w e re in m anu facturing (table 3).
T h irteen plans in volv ed
both m an u factu rin g and nonm anufacturing esta b lish m en ts.
The d is p e r s io n o f m u ltie m p io y e r plans by industry fo llo w s the pattern
o f m u ltie m p lo y e r c o lle c t iv e bargain in g re la tio n s h ip s. 4 M a jo r groupings o f c o v e r e d
w o r k e rs w e re found in fo o d and a p p arel am ong m anufacturing in d u stries, and in
m ining, co n stru ctio n , m o to r tra n sp orta tion , and trade am ong nonm anufacturing
in d u strie s. N ea rly th r e e -fo u r th s o f a ll plans, c o v e rin g fiv e -s ix th s of the w o r k e rs ,
w e re in th ese in d u strie s. Although only 1 out o f 10 plans w as in the ap p arel in ­
d u s trie s , th ese plans in clu ded a lm o st 1 out o f 4 o f the w o r k e rs c o v e r e d by all

3 P en sion plans esta b lish ed p r io r to this date a re exem pt fr o m the r e q u ir e ­
m ents o f S u bsection 302 (c) (5) (B) the L a b or M anagem ent R ela tion s A ct, 1947.
4 See " C h a r a c t e r is t ic s o f M a jo r Union C o n tra cts, " M onthly L a b or R e v ie w ,
July 1956, pp. 805—
811.




6

Chart 1. Growth in Coverage of Multiemployer Pension
Plans Under Collective Bargaining, 1943-59 1




Number of
Workers Covered2
(Cumulative)
(In thousands)

Date of Establishment
1 Data exclude $2 plant covering 119,200 workers for |whichi information was not available.
* W orkers covered based on 1959 coverage of active and retired workers.

plan s. The co n stru ctio n in du stry, w hich had 1 out o f 3 plans, c o v e r e d only lo u t of
5 w o r k e r s . The food and trade in d u stries a ls o had s m a lle r than a v era g e plan s, so
that with 1 1.0 and 11.9 p e r c e n t o f the plans they only co v e re d 6 .9 and 9. 3 p e r ­
cent o f the w o r k e r s , r e s p e c t iv e ly . Owing to v e r y la rg e national and re g ion a l plans
in the c o a l m ining and m o to r tra n sp orta tion in d u strie s, the p r o p o r tio n o f w o rk e rs
c o v e re d was su bstan tially g r e a te r than the p ro p o rtio n o f plans in th ese in d u stries.
The only oth er in d u strie s with a sig n ifica n t num ber o f m u ltie m p lo y e r
plans and w o r k e rs c o v e r e d , re la tiv e to total industry em p loy m en t, w ere w ater
tra n sp orta tion , printing and pu blish in g, and m otion p ic tu r e s and r e c r e a tio n .
No
m u ltie m p lo y e r plans w e re found in in d u stries such as p e tro le u m , com m u n ica tion s,
and p u b lic u tilitie s , w h ere m u lti e m p lo y e r bargain in g is u n com m on , but the in ­
c id e n ce o f sin g le e m p lo y e r pen sion plans is high. S im ila rly , am ong m etalw ork in g
in d u strie s, w h ere at le a st 3. 9 m illio n w o rk e rs w e re c o v e re d by p en sion plans under
c o lle c t iv e b arga in in g, only 5 7 ,0 0 0 w ere co v e re d by m u ltie m p lo y e r p en sion plans.
M e m b e rs o f 71 national and intern ation al unions w ere c o v e re d by the
798 m u ltie m p lo y e r plans (table 4).
The T e a m s te rs had the la r g e s t num ber o f
individual plans (121), about 15 p e r ce n t o f the total with a lm o st 20 p e rce n t o f
the w o rk e r c o v e r a g e . T h eir plans w ere con cen tra ted p r im a r ily in m o to r tr a n s ­
p orta tion , fo o d m an u factu rin g, and w h olesa le and re ta il trade in d u strie s.
The
International Ladies* G arm ent W o rk ers and the A m algam ated Clothing W o rk e rs,
w hich accou n ted fo r v irtu a lly a ll plan co v e ra g e in the a p p a rel in d u strie s, had
62 plans c o m p r is in g o v e r 20 p e r c e n t o f the w o r k e rs .
T h ese th ree unions, plus
the C a rp e n te rs, E le c t r ic a l W ork ers— IBEW (with plans p r im a r ily in the c o n ­
stru ction in d u stry ), and United M ine W ork ers (exclu d in g D is tr ic t 50), had about
a third o f the plans c o v e rin g a lm o st tw o -th ird s o f a ll w o r k e rs . T h ese 6 unions
each p a rticip a te d in plans with a co v e ra g e o f m o r e than 100,000 w o r k e rs , and
with the ex ce p tio n o f the C a rp e n te rs, each o f the unions had at lea st 1 plan c o v ­
erin g m o r e than 5 0 ,0 0 0 w o r k e r s .
The unions o r d in a r ily a s s o c ia te d with the co n stru ctio n in du stry had a
high d e g r e e o f p a rticip a tio n in m u ltie m p lo y e r plan s.
In addition to the C a r ­
p e n te rs, and E le c t r ic a l W o rk e rs (IBEW ), they included the A s b e s to s W o rk e rs,
B r ic k la y e r s , Hod C a r r ie r s , P a in te rs, P la s t e r e r s , P lu m b e rs and P ip e fitte r s ,
and Sheet M etal W o rk e rs. A ll o r m o st o f the plans in w hich th ese unions p a r ­
ticip a ted (with the ex cep tion o f the C arp en ters and the E le c t r ic a l W ork ers) had
fe w e r than 5, 000 w o r k e rs p e r plan.
In the m a ritim e in du stry, w here a high
d e g r e e o f u n ion ization is a lso found, the L on g sh orem en (on both c o a s ts ), the
M a ritim e , the M arin e E n g in e e rs, and the M a ste rs , M ates and P ilo ts unions a lso
had a high d e g r e e o f p a rticip a tio n in m u ltie m p lo y e r p en sion plan s.
S e v e r a l unions in fo o d m anufacturing— the B re w e ry W ork ers and the
two B a k ery W o rk e rs unions (both the A F L -C IO a ffilia te and the independent
union)— and in trade— the R eta il C le rk s , H otel & R estaurant E m p lo y e e s, the
Meat C u tters, and the R eta il, W h olesale and D epartm ent S tore Union— com m on ly
n egotiated m u ltie m p lo y e r plan s.
Twenty unions had only a sin gle plan; in som e c a s e s , this plan co v e re d
as m any w o r k e rs as the union had m e m b e r s , including the M achine P r in te r s
(In d .), the N ew spaper and M ail D e liv e r e r s (In d .), and the A m e rica n R adio A s ­
so cia tio n .
N ea rly the en tire m e m b ersh ip o f som e unions, such as the In te r­
national L a d ie s 1 G arm ent W o rk e r s, A m algam ated Clothing W o rk e rs, and United
M ine W o rk e rs (Ind. ) exclu din g D is tr ic t 50, M a ritim e , and M arin e E n g in eers,
belon ged to m u ltie m p lo y e r plan s. 5 B etw een 20 and 75 p e r c e n t o f the m e m b e rs

5
F o r I960 m e m b e rsh ip data, see D ir e c t o r y o f N ational and International
L a b or Unions in the United States, 1961, BLS Bull. 1320 (1962).




0

8

o f s e v e r a l la rg e unions— T e a m s te rs (In d .), both B ak ery unions, L on gsh orem en *s
A s s o c ia tio n , C a rp e n te rs, E le c t r ic a l W ork ers (IBEW ), P lu m b e rs and P ip e fitte r s ,
and R eta il C lerk s— w e re c o v e r e d by such p en sion p lan s.
S om e o f the m a jo r unions in the cou n try, p a r tic u la r ly the Auto W o rk e rs,
S te e lw o r k e r s , M a ch in ists, and E le c t r ic a l W ork ers (IU E), had few o r no m e m b e rs
in m u ltie m p lo y e r p la n s.
M ost o f the m e m b e rs o f th ese unions a re c o v e re d by
sin g le e m p lo y e r c o lle c t iv e b argain ing a g reem en ts and p en sion p lan s. 6
A lthough u su a lly only 1 union p a rticip a ted in a plan, in 26 plan s, co v e rin g
o v e r 110, 000 w o r k e r s , 2 o r m o r e in tern ation al o r national unions w e re in volved .
An exam ple o f such a plan is the Building T ra d es P e n sio n Fund o f W estern.
P en n sylva n ia , in w hich the B r ic k la y e r s , L a th e rs, and P la s t e r e r s a ll p a rticip a te.
G eog ra p h ic A r e a
In a lm o st 90 p e r c e n t o f the plans (699), co v e rin g 50 p e rce n t o f the w o r k ­
e r s , a ll pa rticip a tin g e m p lo y e r s w e re loca ted within a sin g le State (table 5).
T h ese in trastate plans op era ted in 33 States and the D is tr ic t o f C olum bia.
They
w e r e co n cen tra ted m a in ly in the M iddle A tlan tic and E ast N orth C en tral re g io n s ,
p a r tic u la r ly in New Y o rk , New J e r s e y , P en n sy lvan ia, Illin o is , M ich igan , and
O hio.
States ou tside th ese re g io n s with substantial w o rk e r co v e ra g e included
C a lifo rn ia and M is s o u r i. In m o st c a s e s , th ese in trastate plans w e re r e s tr ic te d
to e m p lo y e rs in a p a r tic u la r lo c a lity .
The 99 in tersta te plans in cluded 56 plans with m e m b e r s in 2 o r m o r e
States within a re g io n (in tra re g io n a l) and 43 with m e m b e rs in m o r e than 1 reg ion
(in te r re g io n a l). The 43 in te r re g io n a l plans c o v e re d m o r e than 45 p e rce n t of a ll
w o r k e rs in m u ltie m p lo y e r plan s.
Som e w e re national in s co p e (e. g. , IBEW
P e n sio n B en efit T ru st Fund); o th ers c o v e re d la rg e n u m bers o f w o rk e rs in m o r e
lim ite d g e o g ra p h ic a re a s (e. g. , W estern C o n feren ce o f T e a m s te rs P en sion Fund,
and so m e plans o f the International Ladies* G arm ent W ork ers and the A m a lg a ­
m ated Clothing W o rk e r s).
With the e x cep tion o f the m ining in du stry, the h ea v iest con cen tra tion
o f plans in each o f the in d u stries studied was in the M iddle A tla n tic reg ion .
The
E ast N orth C en tral re g io n had a substantial num ber o f plans and w o rk e rs co v e re d
in the fo o d , p rin tin g, m eta lw ork in g , con stru ction , and m o to r tra n sp orta tion in ­
d u s tr ie s .
The New England reg ion had a la rg e num ber o f co n stru ctio n p lan s,
w hile the P a c if ic re g io n had a la r g e num ber o f w o r k e rs in both con stru ctio n and
tra d e.
In the South A tlan tic re g ion , a sig n ifica n t num ber o f plans w ere in
w ater tra n sp orta tion .
M ost o f the in trastate plans c o v e re d fr o m 1, 000 to 10, 000 w o rk e rs ; in
the Southern and M ountain States, few plans had o v e r 5, 000 w o r k e rs . A m a jo r ity
o f the in te r re g io n a l plans c o v e re d o v e r 5, 000 w o r k e rs .
6
See D ig e st o f O ne-H undred S e le cte d P e n sio n P lan s Under C o lle c tiv e B a r ­
gaining, Spring 1961, BLS B ull. 1307(1962). S in ce the an a ly sis fo r the m u ltie m p lo y e r
study was co m p le te d , the B o ile r m a k e r s , O perating E n g in e e rs, and M ach inists
unions have in trodu ced national plans fo r p a rticip a tin g lo c a ls .
The ben efits in
th ese plans depend upon the instituted con trib u tion rates w hich v a ry fr o m e m p loy er
to e m p lo y e r.



9

W o rk e r M ob ility
T r a n s fe r a b ility o f P e n sio n R ig h ts.
One o f the distin gu ish in g c h a r a c ­
t e r is t ic s ^or~nTinHempTbyeF^eniion^pIins~Ts that the w o rk e r rem a in s co v e re d and
bu ilds up s e r v ic e c r e d its as long as he is em ployed by any one o f the e m p loy er
m e m b e r s . Single e m p lo y e r p la n s, on the oth er hand, do not p e rm it continuance
o f p en sion c o v e ra g e a fter a w o rk e r le a v e s the c o m p a n y .7 The p ro te ctio n a f­
fo rd e d by m u ltie m p lo y e r p la n s, h ow ev er, depends on the sco p e o f plan c o v ­
e ra g e by occu p a tion , in du stry, o r g eog ra p h ic a rea . N e a rly h alf o f the w o rk e rs
in the sp rin g o f I960 belon ged to lo c a l plans c o v e rin g a sin g le cra ft, o c c u p a ­
tion a l grou p, o r in du stry, about a fou rth to re g io n a l plans (m o stly co v e rin g an
in d u stry ), and about a fou rth to in dustryw ide national p lan s.
The m o s t lim ited type o f m u ltie m p lo y e r plan, and a lso the m o s t p r e v a ­
lent, c o v e r e d a p a rticu la r c r a ft o r occu p a tion a l group in a s p e c ific in du stry in a
m e tro p o lita n a re a .
T y p ica lly , m u ltie m p lo y e r plans in the con stru ction , d a iry ,
and prin tin g and publishing in d u stries w ere of this kind.
F o r ex am p le, in the
co n stru ctio n in du stry in New Y o rk C ity, sep a ra te m u lti e m p lo y e r p en sion plans
have been esta b lish ed by the P a in te r s , C a rp en ters, Sheet M etal W o rk e rs, etc.
O ccu p a tion a l m o b ility is fu rth ered by m u ltie m p lo y e r p en sion plans such
as th ose in the r e ta il, a p p a rel, and s e r v ic e in d u strie s, w hich c o v e re d w o rk e rs
with a w ide v a r ie ty o f o ccu p a tion s and sk ills in an in du stry in a s p e c ifie d m e t r o ­
p olita n a re a .
The plan co v e rin g drug s to r e s in New Y ork C ity, fo r ex am p le,
in clu d ed a v a r ie ty o f occu p a tio n a l g rou p s, although lim ited to w o rk e rs re p re se n te d
by a sin g le union (L o c a l 1199, R e ta il Drug E m p lo y e e s Union). A ls o , a plan m ay
in clu d e m o r e than one union within its sco p e in an in du stry in a lim ited g e o ­
g ra p h ic a re a .
F o r e x a m p le, 10 unions p a rticip a te d in the plan co v e rin g h otels
in New Y ork City. A few plans in clu d ed w o rk e rs in m o r e than one industry and
o ccu p a tion in a la b o r m a rk et a re a .
F o r in sta n ce, the N orthw est Ohio A r e a
In du stries— UAW R etirem en t In com e P la n n egotiated by the United A u tom ob ile
W o rk e r s, c o v e r e d about 2 ,0 0 0 w o r k e rs em ployed by about 40 com p an ies in a
n um ber o f d iffe re n t in d u strie s.
In som e o ccu p a tion s and in d u strie s, m u ltie m p lo y e r pen sion p ro g ra m s
c o v e r an en tire re g io n o r even the en tire cou n try. In the lon g sh o re industry on
the W est C oast, fo r ex a m p le, a p en sion fund was esta b lish ed under a co a stw ise
a g reem en t betw een the P a c ific M a ritim e A s s o c ia tio n and the International L o n g ­
s h o r e m e n ^ and W a re h o u se m e n ^ Union (In d .).
The v e r y nature o f the w ater
tra n sp orta tion in du stry v irtu a lly co m p e ls dev elop m en t o f such plan s.
S im ila r
re g io n a l plans w e r e n egotiated in the trucking and co n stru ctio n in d u stries, but
an even b r o a d e r a pp roa ch was found in the W estern C o n feren ce o f T e a m s te rs
P e n sio n Fund. Not on ly can the w o rk e r m ov e fr o m e m p lo y e r to e m p loy er in the
tru ckin g in du stry in an 11-State a rea , but he can a lso m o v e to contributing e m ­
p lo y e r s in oth er in d u strie s in the a rea .
N ationw ide m o b ility in c e rta in in d u stries was p e rm itte d by a few la rg e
plan s, c o v e rin g about a m illio n w o r k e rs .
The UMWA W elfa re and R etirem en t
Fund c o v e rin g v irtu a lly a ll w o r k e rs under a g reem en t in the bitum inous c o a l in ­
d u stry is p ro b a b ly the b e st known exam ple o f this type o f plan. O ther national
plans w e re fo r m e d by the E le c t r ic a l W ork ers (IBEW ), both B ak ery W ork ers
unions, the A m algam ated Clothing W o rk e rs , F u rn itu re W o rk e rs , and the Up­
h o lste re rs* union.

b ility
P lan s
m en ts
1958,

7
The w o rk e r m a y be p r o te cte d by a vestin g p r o v is io n a n d /o r tr a n s fe r a ­
to b ra n ch e s, p la n ts, and su b s id ia rie s o f m ultiplant fir m s .
See P en sion
Under C o lle c tiv e B argain in g: P a r t I.
V esting P r o v is io n s and R e q u ir e ­
fo r E a rly R etirem en t; P a r t II.
Involuntary R etirem en t P r o v is io n s , Late
BLS B ull. 1259 (1959).




10

R e c ip r o c it y .
The nu m ber and range o f jo b s to w hich a w o rk e r m ight
tr a n s fe r without lo s s o f cre d ite d s e r v ic e w e re fu rth er broa d en ed by 66 plans with
r e c ip r o c it y a g re e m e n ts with oth er m u lti e m p lo y e r plan s. Under th ese a g reem en ts,

Plans______ _

______ Workers1

Reciprocity provision

Number

Percent

Number
(thousands)

Percent

All formulated plans 2 ------------------

736

100.0

3 ,22 9 .8

100.0

No provision, or information
not available ------------------------

633

86.0

2 ,105.1

65.2

61
5

8.3
.7

7 6 3 .4
36.0

23 .6
1.1

26
11

3.5
1.5

95.9
2 2 9.4

3.0
7.1

Reciprocity arrangements in effect with:
Plans in same union ---------------Plans in other unions -------------Reciprocity arrangements may be
made with:
Plans in same union ---------------Plans in other unions -------------1
2

Worker coverage includes both active and retired workers in 1959.
Excludes 62 plans in the process of formulating plan provisions. See p. 3 .

NOTE:

Because of rounding, sums of individual items may not equal totals.

w hich c o v e r a fou rth o f the m e m b e r s o f form u la ted m u ltie m p lo y e r p la n s, s e r v ic e
under one plan is u sed to d e te rm in e , in p a rt, the b en efits p ro v id e d by another
plan.
A ll but fiv e plans w e re lim ited to tr a n s fe r s am ong plans of the sam e
union. O v er h a lf o f the 66 plans w e re negotiated by the ILGW U, and they allow ed
v irtu a lly u n lim ited tr a n s fe r s o f c r e d its am ong them .
An addition al 37 pla n s, co v e rin g about a tenth o f the w o r k e r s , gave p ow er
to the a d m in istra to r to w ork out r e c ip r o c a l arra n g em en ts with plans o f their own
union and, in 11 o f th ese c a s e s , oth er unions as w e ll.
None o f the plans with fe w e r than 100 m e m b e r s contained r e c ip r o c it y
p r o v is io n s o f any kind, although sm a ll plans p re s u m a b ly have the g re a te s t need
fo r such a rra n g e m e n ts.
W hile a num ber o f plans in all oth er s iz e c a te g o r ie s

Without
reciprocity

Total

Size of plan
All formulated plans ----26 to 99 workers ---------100 to 499 workers -------500 to 4,999 workers ----5 ,0 0 0 to 24,999 workers 25,000 workers and over —

With
reciprocity

Plans

Workers 1
(thousands)

Plans

Workers 1
(thousands)

Plans

736

3,229.8

633

2 ,105.1

103

45
207
387
75
22

2.7
96.4
662.7
718.9
1,749.1

^5
190
331
52
15

2.7
9 1 .6
56 2.2
492.3
955.8

Workers
(thousands)
1,124.7

_
17
56
23
7

_
^•9
10 0.0
226.5
793.3

Worker coverage includes both active and retired workers in 19 59.
Excludes 62 plans in the process of establishing plan provisions. See p. 3.
NOTE:




Because of rounding, s m s of individual itams may not equal totals.

11

had such p r o v is io n s , the p r o p o r tio n was h igh er am ong the la r g e r p lan s; 7 o f the
22 plan s c o v e rin g 2 5 ,0 0 0 o r m o r e w o rk e rs had r e c ip r o c it y p r o v is io n s , as c o m ­
p a re d with only 56 o f the 387 plans with 500 to 5 ,0 0 0 w o r k e rs .
F inancing
A lm o s t a ll m u ltie m p lo y e r plans
p lo y e r con trib u tion s.

studied w e re

Plans______

Method of financing
All plans ---------------------------- —

fin an ced en tire ly by e m ­

____ Wo rkers \ ____

Number
Number Percent (thousands) Percent
798

100.0

3,324.8

100.0

764
30
i
f

95.7
3.8
.5

3,262.3
60.9
1.7

98.1

Source of contribution
Employer o n l y ------------------- ----- --Employer and worker ------------------ --Worker only -------------------------- ---

1.8
.1

Worker coverage Includes both active and retired workers In 1959*
NOTE:

Because of rounding, sums of individual items may not equal totals.

In g e n e ra l, p a rticip a tin g e m p lo y e rs con trib u ted to a ce n tra l fund to p r o ­
vid e b en efits fo r c o v e r e d w o r k e r s . The individual e m p lo y e e s o b lig a tio n 8 u su ally
was fix e d fo r the te rm o f the c o lle c t iv e bargain in g a g reem en t. O nly r a r e ly w e re
the e m p lo y e r s , in dividu ally o r c o lle c t iv e ly , ob lig a ted to p r o v id e , as is cu sto m a ry
in sin g le e m p lo y e r p la n s, s p e c ifie d types and le v e ls o f b e n e fits.
T h re e out o f fiv e p la n s, with a lm ost h alf o f the w o r k e r s , p ro v id e d fo r
a con trib u tion rate b a sed on the tim e w ork ed by each em p loy ee c o v e re d by the
plan. (See b e l o w .) A bout 1 out o f 4 p la n s, co v e rin g o v e r a th ird o f the w o r k ­
e r s , re q u ire d the e m p lo y e r to con trib u te a fix e d p e rce n ta g e o f each e m p lo y e e 1s
earn in gs o r o f the p a y r o ll as a w h ole.
A few plans e sta b lish ed oth er m ethods
o f building up p e n sio n fund r e s e r v e s .
Plans

Basis of employer contribution rate

Workers 1

Number
Number Percent (thousands) Percent

All formulated plans ^ ------------------- -

736

10 0.0

3,229.8

100.0

Specified rate -------------------------Per hour worked
------------------Per week ---------------------------- Per month --------------------------Per shift -------- -----------------Per day ----------------------------Percent of earnings or payroll ---------Other -----------------------------------No contribution ------------------------Information not available ---------------

434
210
130
39
28
27
169
8
4
121

59.0
28.5
17.7
5.3
3.8
3.7
2 3 .0
1.1
.5
1 6 .4

1,535.2
765.3
536.0
83.5
31.9
118.6
1,146.2
303.7
1.7
243.0

47.5
23.7
16 .6
2 .6
1 .0
3.7
35.5
9A

.1
7.5

2

Worker coverage includes both active and retired workers in 1959.
Excludes 62 plans in the process of establishing plan provisions.
See p. 3.
NOTE:

8
sam e plan.



Because of rounding, sums of individual items may not equal totals.

Som e plans had d iffe re n t con trib u tion ra tes fo r e m p lo y e rs c o v e re d by the
See p. 127 fo r m eth od o f a n a ly sis.

12

C ontributions B a se d on T im e W ork ed . About h alf the plans with co n trib u ­
tions b a se d on som e tim e unit o f w ork u sed h ou rs actu ally w ork ed , a lm o st o n e third u sed the w ork w eek , w hile the rem aining plans u sed d ays, sh ifts, o r m onths
w ork ed . M any plans b a se d the e m p lo y e r 's oblig ation on the num ber o f em p loy ees
actu ally on the p a y r o ll for^ a s p e c ifie d num ber of h o u rs, not n e c e s s a r ily the full
p e r io d . Thus, in som e p la n s, the full e m p lo y e r 's con trib u tion w ould b e payable
if the w o r k e r w as em p loy ed a m in im u m num ber o f h ou rs— u su ally m uch le s s than
the fu ll-t im e p e r io d . In oth er pla n s, e s p e c ia lly th ose on a w eek ly b a s is , the e m ­
p l o y e r 's con trib u tion w as p ro p o rtio n a te to the h ou rs w ork ed , u su ally up to a s p e c i­
fie d m axim u m con trib u tion . C lau ses illu stra tin g som e o f th ese form u la s fo llo w :
P e r w eek

P e r w eek

P e r hour

P e r day

P e r shift
P e r m onth

. . . the e m p lo y e r shall pay . . . the sum o f
$ 3 . 50 p e r w eek fo r each o f his e m p lo y e e s c o v e r e d
b y the a r tic le s of a greem en t . . .
(P e r hour rate up to a m axim um rate)
. . . the e m p lo y e r a g re e s to con trib u te 10 cents p e r
h ou r paid to any and all o f his em p lo y e e s c o v e r e d
b y this a g reem en t but not to e x ce e d $4 p e r w eek.
E ach e m p lo y e r shall pay to the tru stee fo r d e ­
p o s it in the trust fund,
e ffe c tiv e S ep tem ber 1 ,
1955, the sum o f 10 cents p e r hour fo r e v e ry hour
w ork ed fo r w hich such e m p lo y e r 's e m p lo y e e s r e ­
c e iv e d com pen sation .
E ach e m p lo y e r shall pay to the tru ste e s fo r d ep osit
into the fund, the sum o f 25 cents p e r day p e r m an
on com pany p a y r o ll, em p loy ed su b je ct to a c o l l e c ­
tive bargain in g a g reem en t with the org a n iza tion .
. . . each e m p lo y e r shall pay to the fund at re g u ­
la r in te rv a ls 5 Z l h cents p e r s h ift's pay earn ed by a
p a rticip a n t with such e m p lo y e r . . .
E ach e m p lo y e r a g re e s to m ake to the fund . . .
a paym ent o f $17. 30 p e r m onth fo r each em p loy ee
w ork in g o r paid fo r 80 o r m o r e s tra ig h t-tim e h ou rs
p e r m onth.

C ontributions on an h ou rly b a s is , s p e c ifie d in 210 plans p r im a r ily in
the co n stru ctio n in du stry, ranged fr o m le s s than 5 cents to m o r e than 16 cen ts.
The m o s t freq u en t rate w as 10 cen ts p e r h our.




Plans

Workers1
(thousands)

hourly rate -----

210

765.3

Less than 5 cents -----------------------5 and
under 6 c e n t s ---------------------6 and
under 7 c e n t s ---------------------7 and
under 8 c e n t s ---------------------8 and
under 9 c e n t s ---------------------9 and under 10 cents --------------------10 and under 11 c e n t s -------------------11 and under 12 c e n t s -------------------12 and under 13 c e n t s -------------------13 and
under 14 c e n t s ------------------14 and
under 15 c e n t s ------------------15 and
under 16 c e n t s ------------------16 cents and o v e r ----------------------Information not a v ailable ----------------

10
17
9
25
7
3
77
3
7
1
4
24
14
9

35-2
12.1
38 .6
123.2
21.1
3.9
429.8
9*4
9 •2
.2
7.7
39 .8
26.6
8.3

Rate per hour
All plans specifying an

Worker coverage includes both active and retired work­
ers in 19 5 9 •
NOTE: Because of rounding, sums of individual items may
not equal totals.

13

^Daily ra tes s p e c ifie d in 27 p la n s, m ain ly in w ater tra n sp orta tion and
w h o le sa le and re ta il in d u strie s, ranged fr o m le s s than 50 cents to o v e r $2.
Hate per day

plans

All plans specifying a daily r a t e -------Less than $ 0 . 5 0 --------------------------$0.5 0 and
under$0 . 6 0 --------------------$0 .6"0 and under $0 . 7 0 --------------------$0.7 0 and
under$0 . 8 0 --------------------$0.8 0 and
under$0 . 9 0 --------------------$0.9 0 and
under$1 . 0 0 --------------------$1.00 and under $2 . 0 0 --------------------$2 .0 0 and o v e r ---------------------------Information not available -----------------

27
6
1
1
1
l
1

11
3
2

Workers 1
(thousands)
118.6
13.8
i
|#6
11.1
5.8
2.3
2.8
30.5
13.7
33.9

Worker coverage includes both active and retired work­
ers in 19 59.
NOTE: Because of rounding, sums of individual items may
not equal totals.

in du stry.

The 28 plans sp e cify in g a rate p e r shift w e re all found in the printing
None o f the ra tes p e r shift e x ce e d e d 90 cen ts.
Plans

Workers1
(thousands)

All plans specifying a shift rate ------

28

31-9

Less than $ 0 . 5 0 ------------------------$0.5 0 and under $0 . 6 0 ------------------$0.6 0 and under $0 . 7 0 ------------------$0.7 0 and under $0 . 8 0 ------------------$0.80 and under $0 . 9 0 -------------------

7
6
10
4
1

6.9
4.7
10.7
9.1
.5

Rate per shift

Worker coverage includes both active and retired work­
ers in 19 59*
NOTE: Because of rounding, sums of individual items may
not equal totals.

W eekly ra te s, u su a lly found in the food , p rin tin g, m o to r tra n sp orta tion ,
and w h o le sa le and re ta il trade in d u strie s, req u ired in 130 p la n s, ranged fro m
le s s than $2 to m o r e than $6.




Rate per week
All plans specifying

Plans

Workers1
(thousands)

aweekly r a t e ---------

130

536.0

Less than $ 2 ------------------------------$2 and under $3 ---------------------------$3 and under $4----------------------------$4 and under $5 ---------------------------$5 and under $ 6 ---------------------------$6 and o v e r -------------------------------Information not avai l a b l e ------------------

9
32
28
25
25
5
6

19.8
74.7
65.7
221.5
41.7
20.1
92.4

1 Worker coverage includes both active and retired workers
in 1959.
NOTE: Because of rounding, sums of individual items may
not equal totals.

14

d u stry,

M onthly ra tes in 39 p la n s, m ain ly in the w h olesa le and re ta il trade in ­
ranged fr o m le s s than $10 to $37,

Rate per month
All plans specifying a monthly

plans

Workers1
(thousands)

rate --------

39

83.5

Less than $ 1 0 ------------------------------$10 and under $20 ------------------------$20 and under $ 3 0 ------------------------$30 and under $ 4 0 ------------------------Information not available -----------------

15
15
6
1
2

35*5
34.2
4. 1
A

9-3

1 Worker coverage includes both active and retired workers
in 1959*
NOTE: Because of rounding, sums of individual items may
not equal totals.

A c o m p o s ite distrib u tion o f the 434 plans sp e cify in g a con trib u tion rate
b a se d on tim e w ork ed is p re s e n te d b elow . A ll rates w e re co n v e rte d to an h ou rly
b a s is , assu m in g 8 h ou rs p e r day (except fo r the printing tra d es w h ere a 7 7 2 -h o u r
day w as a ssu m e d ), 40 h ou rs p e r w eek , and 473 w eek s (173 h o u rs) p e r m onth.
U nder th ese a ssu m p tion s, con trib u tion rates ranged fr o m le s s than 1 cent to m o r e
than 16 cen ts an h ou r, and a v e ra g e d 9 .7 cents an h o u r .9 A fourth o f the p lan s,
co v e rin g 44 p e r c e n t o f the w o r k e r s , s p e c ifie d con trib u tion s betw een 9. 5 and
1 0 .5 cen ts p e r hou r.

Plans

Rate per hour (composite) ^
All plans with rates based on
time worked -------------------------Under 4.5 cents -----------------------4.5 and under 5 . 5 cents --------------5 . 5 and under 6 .5 cents --------------6.5 and under 7-5 cents --------------7 . 5 and under 8 .5 cents --------------8 .5 and under 9 . 5 cents --------------9 .5 and under 10 .5 cents -------------10 .5 and under 11 .5 cents ------------11.5 and under 12.5 cents ------------12 .5 and under 13.5 cents ------------13.5 and under 14.5 cents ------------14.5 and under 15 .5 cents ------------15.5 cents and over ------------------Information not available ------------Average * -------------------------------

2
^

Number
(thousands)

Percent

434

100.0

1,535.2

100.0

33
50
21
23
53
12
110
8
10
30
7
31
27
19

89.2
7.6
81.6
11.5
4.8
65.2
5.3
71.9
12 .2
150.9
2.8
37.5
67 6.O
25.3
1 .8
16.1
1 2 .8
2.3
49.8
6.9
1.6
12 .0
55.0
7.1
6 .2
73.3
4.4
143.9
9 . 7 cents per hour

5.8
5.3
4.2
4.7
9.8
2.4
44.0
1 .0
.8
3.2
.8
3.6
4.8
9.4

Because of rounding, sums of individual items may not equal totals.

A rith m e tic




Percent

Number

See assumptions in text.
Worker coverage includes both active and retired workers in 1959.
Arithmetic mean, weighted by workers covered.

NOTE:

9

__ Workers 2
_

m ean w eighted by num ber o f w o r k e rs .

15

C on tribu tion s B a se d on E arnings o r P a y r o ll, A fix e d p e rce n ta g e o f e m ­
p lo y e e earn in gs o r p a y r o ll w as con trib u ted by e m p lo y e rs under 169 p la n s, la r g e ly
in the a p p a re l, co n stru ctio n , and w h o le sa le and re ta il tra d e in d u strie s. C o n tri­
bution ra tes e x p r e s s e d as a p e rce n ta g e o f earnings w e re b a s e d on the earn in gs o f
each in dividu al w o r k e r o r o f the c o v e re d group as a w hole (in clu din g, in som e
c a s e s , the earn in gs o f a ll w o r k e r s in the grou p, even th ose not actu a lly c o v e r e d
b y the plan ).
E xa m ples o f cla u se s e x p re ss in g con trib u tion s as a p e rce n ta g e o f
earn in gs o r p a y r o ll a re :
. . . P u rsu an t to the bargain in g a g reem en t . . . each e m ­
p lo y e r . . . sh all . . . con trib u te 3 p e r c e n t o f the p a y r o ll
fo r e m p lo y e e s c o v e r e d b y this a g reem en t.
se se ic
j { j

. . . E ach e m p lo y e r . . . sh all con trib u te 2 p e r c e n t o f the
w a ges o f each m e m b e r o f the union em p loy ed by such e m p lo y e r.
R ates o f con trib u tion
la r g e s t c lu s te r at 3 p e r c e n t.

ranged fr o m 1 to m o r e than 6 p e r c e n t, with the
They a v era g ed 2. 8 p e rce n t.
____ Workers *

Plans

Percent of earnings or payroll
All plans basing contributions on
payroll or earnings -----------------1 and under 2 percent -----------------2 and under 3 percent -----------------3 and under 4 percent -----------------4 and under 5 percent -----------------5 and under 6 percent -----------------6 percent and over --------------------Information not available -------------Average 2 -----------------------------2

Number

Percent

Number
(thousands)

Percent

169

100.0

1,146.2

10 0.0

11 .2
21 2.0
322.6
21.9
420.1
37.3
10.7
119.5
32.5
7.1
2.4
7.2
32.1
9.5
2 . 8 percent

18.5
28 .1
36.7
10.4
2 .8
.6
2.8

19
37
63
18
12
4
16

Worker coverage includes both active and retired workers in 1959.
Arithmetic mean, weighted by workers covered.

NOTE:

Because of rounding, sums of individual items may not equal totals.

O ther C ontribution B a s e s .
In fiv e p la n s, e m p lo y e r con trib u tion s w ere
b a s e d on fa c t o r s oth er than em p loym en t o r earn in gs.
F o r ex a m p le, em p lo y e r
con trib u tion s to the bitum inous and an th racite co a l p en sion and w e lfa re funds
w e r e b a s e d on p rod u ction .
The bitum inous a g reem en t p ro v id e s that:
. . . T h ere sh all be paid into said /w e lfa r e and p e n s io n / fund
by each sig n a tory o p e r a to r , $ 0 .4 0 p e r ton on each ton o f b itu m i­
nous p ro d u ce d fo r u se o r sa le .
Instead o f using e n tire ly d iffe re n t fa c to r s to d eterm in e con trib u tion s, th ree plans
u sed a com b in a tion o f a p e rce n ta g e o f earnings and tim e w ork ed .
A lthough m o s t plans had a u n iform con trib u tion rate fo r all p articip atin g
e m p lo y e r s , about 15 plans in d ica ted p r o v is io n fo r s e v e r a l rates w hich v a rie d by
a re a o r in du stry o r oth er fa c t o r s . The p r o v is io n s w e r e found in plans negotiated
in the fo o d and trucking in d u strie s. U sually, the con trib u tion rate is taken into
a ccou n t in d eterm in in g the am ount o f ben efit.
F o r ex a m p le, one plan in the
trucking in du stry p r o v id e d that a qu a lified w o rk e r w h ose e m p lo y e r con tribu ted
$6. 50 p e r w eek w ould r e c e iv e $125 a m onth, upon his re tire m e n t at age 65, w hile
a r e tir e d w o r k e r w h ose e m p lo y e r con tribu ted $ 5 .4 0 w ould r e c e iv e $100 p e r m onth.




16

Type o f A d m in istra tion
The a d m in istra tion o f a p en sion plan in v olv es d a y -to -d a y fu n ction s, such
as p r o c e s s in g a p p lica tio n s, determ in in g e lig ib ility , aw arding b e n e fits , and in te r ­
p retin g the plan , as w e ll as fin a n cia l a d m in istra tion , i. e. , s e le c tio n of m edium
o f funding, adoption o f funding m eth od s, re ce iv in g co n trib u tion s, in v estm en ts,
paym ent o f b e n e fits , e tc. 101 Som e o r a ll o f th ese a d m in istra tiv e fu n ction s m ay b e
deleg a ted to an in su ra n ce com pa n y, bank, s e r v ic e org a n iz a tio n , union, e m p lo y e r,
o r sa la r ie d a d m in istra tiv e sta ff.
In this a n a ly sis, h o w e v e r, adm in istra tion w as
c la s s ifie d on the b a s is o f o rig in a l r e s p o n s ib ility . This r e s p o n s ib ility is usu ally
d e s c r ib e d in the tru st indenture, the p en sion plan, o r the union a g reem en t.
O f the 798 m u ltie m p lo y e r p en sion p la n s, 735 plans co v e rin g a lm o st th r e e fou rth s o f the w o r k e r s p ro v id e d fo r the appointm ent o f a jo in t u n ion -m an agem en t
b o a r d (table 6).
An addition al 33 plans with on e-eig h th o f the w o r k e rs p ro v id e d
fo r a jo in t b o a r d plus one n eu tral m e m b e r , u su ally acting as im p a rtia l ch airm an .
Nine plans co v e rin g 10 p e r c e n t o f the w o r k e rs p ro v id e d fo r a trip a rtite b o a rd
with equal re p re se n ta tio n o f union, m an agem en t, and neutral o r p u b lic m e m b e r s .
E leven o f the 798 p la n s, accou n ting fo r 6 p e r c e n t o f a ll w o r k e rs c o v e r e d , w e re
a d m in iste re d by the unions alon e. 1
1
P r o v is io n fo r the appointm ent o f a n eu tral im p a rtia l ch a irm a n o r tru stee
w as found a lm o s t e x c lu s iv e ly in the a p p a rel in du stry. The two la r g e plans in the
c o a l m ining in du stry w e r e a d m in iste re d by trip a rtite b o a r d s . S ole union o r e m ­
p lo y e r a d m in istra tion w as found in only 2 plans co v e rin g m o r e than 1, 000 w o r k e r s .

M edium o f Funding
Although the u ltim a te r e s p o n s ib ility fo r the a d m in istra tion o f the plan
r e s ts with the a d m in istra to r, the fu nction o f p rov id in g the b en efits (m edium o f
funding) m ay b e d eleg a ted to another p a rty o r o rg a n iz a tion .
In m o r e than h alf
o f the p la n s, c o v e rin g a lm o st tw o -th ird s o f the w o r k e r s , th ese fu n ction s w e re not
d eleg a ted , i. e. , the paym en t o f b e n e fits w as done d ir e c tly b y the a d m in istra to r.
(See fo llo w in g ta bu lation .) A bout 1 out o f 7 p la n s, c o v e rin g a tenth o f the w o r k ­
e r s , p ro v id e d b e n e fits through an in su ra n ce com pany. S lightly m o r e than a fifth
o f the p la n s, c o v e rin g about an eighth o f the w o r k e r s , funded b en efits through
a c o r p o r a te tru ste e (a bank o r tru st com pan y).
F iv e p e r c e n t o f the plans had
not d e te rm in e d , at the tim e o f the study, the o rg a n iza tion through w hich b en efits
w ould b e funded. In the rem ain in g plans (c la s s ifie d as " o t h e r " in the tabulation
on the fo llo w in g p a g e ), b e n e fits w e r e u su ally p ro v id e d by a com bin ation o f p a y ­
m en t b y the a d m in istra to r, a c o r p o r a te tru ste e , and an in su ra n ce com pan y.

10 A m o r e d eta iled a n a ly sis o f the p o w e r s , d u ties, and ob lig a tion s o f the
a d m in istra to r is in clu d ed la te r in this study.
1 S u b section 302(c) (5) (B) o f the L a b or M anagem ent R ela tion s A ct o f 1947
1
re q u ir e s equal re p re se n ta tio n o f e m p lo y e rs and em p lo y e e s in the adm in istra tion o f
a fund w h ere such fund is m aintained by e m p lo y e r paym en ts.
H ow ev er, funds
esta b lish e d b e fo r e 1946 a re exem pt fr o m this su b section and the act d oes not
apply to e m p lo y e r -o n ly a d m in iste re d funds, o r to plans co v e rin g only e m p loy ees
not engaged in in tersta te c o m m e r c e .




17

Plans

Workers ^

Number

Percent

Number
(thousands)

Percent

All plans ---------------------------

798

100.0

3,324.8

10 0.0

Insured ----------------------------Self-insured:
Administrator ----------------Corporate trustee -----------------Other 2 ----------------------------Information not available ----------

119

14.9

334.4

10.1

441
170
27
41

55.3
21.3
3.4
5.1

2,097.1
460.5
359.3
7 3 .6

63.1
13.9
1 0 .8
2 .2

Medium of funding

1
2

Worker coverage includes both active and retired workers in 1959*
9 plans, covering 736,000 workers, were self-insured before retirement,
but a temporary annuity was purchased annually after retirement.
NOTE:

Because of rounding, sums of individual items may not equal totals.

Insured plans w e re co n ce n tra ted la r g e ly in co n tra ct co n stru ctio n , m o to r
tra n sp orta tion , and w h o le sa le and re ta il trade (table 7). O ver 40 p e rce n t o f the
w o r k e r s in m o to r tra n sp orta tion plans w e re c o v e r e d by in su red p lan s. C orp ora te
tru steed plans w e r e m o s t com m on in fo o d and k in d red p ro d u cts , printing and
pu blish in g, co n stru ctio n , w a ter tra n sp orta tion , and w h o le sa le and reta il tra d e.
S e lf-a d m in is te r e d p la n s, h o w e v e r, w e re pred om in an t in m o s t in d u strie s.







Chapter III.

Benefit Provisions

The planning and d ev elop m en t o f ben efits to be p ro v id e d by m ulti em p lo y e r
pen sion plans under c o lle c t iv e bargain in g a re usu ally the e x c lu s iv e r e s p o n s ib ilitie s
o f jo in t e m p lo y e r-u n io n b o a r d s , as au th orized by the tru st a g reem en ts. In such
c a s e s , a fter the e m p lo y e r s 1 group and the union(s) have negotiated the rate o f c o n ­
trib u tion fo r financing b e n e fits, the b oa rd s d eterm in e the b en efits to be p ro v id e d .
M a jo r changes in plan p r o v is io n s a re a lso w ork ed out by the b o a rd s .
C la u ses,
s im ila r to the fo llo w in g , giving a b oa rd p ow er to form u la te plan p r o v is io n s , a p ­
p e a r in m o st m u ltie m p lo y e r p e n sio n plan s.
T o e sta b lish a plan . . . w hich shall define the re tire m e n t b e n e ­
fits to be p ro v id e d by the e m p lo y e r con trib u tion s, the con dition s
o f e lig ib ility fo r such b e n e fits, the te rm s o f paym ent, and such
oth er item s as the tru ste e s shall d eem it n e c e s s a r y to in clu d e.
The a fo r e s a id te r m s o f the plan shall be d eterm in ed by the
tru ste e s in th eir so le d is c r e tio n on the b a s is o f a ctu a ria l p r in ­
c ip le s , and shall be su b je ct to change by the tru ste e s r e t r o ­
a ctiv e ly o r o th e rw ise fr o m tim e to tim e.

In co n tra st, esta b lish m en t and am endm ent o f the le v e l o f ben efits and
oth er te rm s o f sin gle e m p lo y e r plans a re negotiated d ir e c tly by the e m p loy er and
the union, along with w age and oth er frin g e ben efit is s u e s , ty p ica lly under the
p r e s s u r e o f c o n tra ct term in a tion .
By shifting the n egotiation o f ben efits fr o m
the bargain in g table to the c a lm e r , le s s h u rrie d atm osp h ere o f the b oa rd ro o m ,
m ulti e m p lo y e r plan tru ste e s a re p ro v id e d an opportunity to act as tru stees rather
than as p a rtisa n union o r m anagem ent re p re se n ta tiv e s fa cin g the ten sion s o f c o l ­
le c tiv e bargain in g.
In such c ir c u m s ta n c e s , the judgm ent and c o s t estim a tes o f
a ctu a rie s (o r in s u r e r s ) can be m o r e ca r e fu lly c o n s id e re d .
A lthough the b a s ic p u rp o se s o f m u ltie m p lo y e r p en sion plans a re s im ila r
to th ose o f sin g le e m p lo y e r plan s, sig n ifica n t d iffe r e n c e s e x is t betw een them ,
w hich r e fle c t , in p a rt, d iffe r e n c e s in la b o r m a rk ets, in d u strie s, and bargaining
s t r u c t u r e s .12 V estin g and e a rly re tire m e n t p r o v is io n s , fo r exam ple, a re m o r e
p re v a le n t in sin gle e m p lo y e r plan s; h ow ev er, the tra n s fe ra b ility o f cre d ite d s e r v ­
ic e am ong pa rticip a tin g e m p lo y e rs— a b u ilt-in fea tu re o f m u ltie m p lo y e r pla n s—
p ro b a b ly a c c o m p lis h e s as m uch as vestin g fo r w o rk e rs rem ain in g within the s co p e
o f the plan. M ulti e m p lo y e r plans u su ally g ea r ben efit am ounts s o le ly to cre d ite d
s e r v ic e ; sin g le e m p lo y e r plans m o r e often rela te them to both earn in gs and s e r v ­
ic e .
P aym en t o f ca sh (lum p sum o r in sta llm en ts) in lieu o f p e r io d ic p en sion
b en efits is m o r e often found in m ulti em p lo y e r than sin gle e m p lo y e r plan s.
12
R e fe r e n c e s to n egotiated sin gle e m p loy er plans in this chapter are b ased
on a s e r ie s o f studies re ce n tly co m p leted by the B ureau of L a b o r S ta tistics and
pu blish ed in the follow in g b u lletin s:
BLS B ull. 1259, op. cit. ; P en sion P lan s
Under C o lle c tiv e B argain in g: N orm a l R etirem en t; E a rly and D isa b ility R etirem en t.
F a ll 1959 j BLS B ull. 1284 (1961); and a fo rth com in g BLS bulletin., P e n sio n P lan s
Under C o lle c tiv e B argaining: B en efits fo r S u rv iv o rs , D e ce m b e r I9 6 0 .
Sum m a r ie s o f th ese bu lletin s have appeared in the M onthly L a b or R e v ie w . O cto b e r
and N o vem b er I960; July and A ugust 1959; and July 1962, r e s p e c t iv e ly .
Although th ese studies w e re b ased on a se le ctio n o f 300 p la n s, each c o v e r ­
ing at le a s t 1 ,0 0 0 w o r k e r s , it is b e lie v e d that the c o v e ra g e adequately re p re se n ts
sin gle e m p lo y e r plans (231 o f the 300) under c o lle c tiv e b a rg ain in g , p a r tic u la r ly
in te r m s o f w o r k e rs c o v e r e d , fo r the type o f co m p a ris o n s m ade in this bulletin.



19

20

The expecta tion that the w o rk e r w ill r e c e iv e s o c ia l se cu rity o ld -a g e
b en efits at age 65 is taken into accou n t in both sin g le and m u ltie m p lo y e r plans
in setting the n o rm a l re tire m e n t age and in the re tire m e n t in co m e p ro v id e d .
Un­
lik e m any sin gle e m p lo y e r p en sion plans that d ir e c tly red u ce ben efits by all o r
p a rt o f a w ork er*s s o c ia l se cu rity b e n e fits, o r u se a m o r e lib e r a l b en efit form u la
fo r earn in gs above than fo r th ose b e lo w the s o c ia l se cu rity taxable wage b a se
(cu rre n tly $ 4 ,8 0 0 a y e a r ), m u ltie m p lo y e r plans r a r e ly take s o c ia l se cu rity b e n e ­
fits so e x p lic itly into accou n t.
P a rticip a tio n R eq u irem en ts
F o r a w o rk e r to p a rticip a te in o r to be c o v e re d by the plan, m o s t m u lti­
e m p lo y e r p e n sion plans sim p ly re q u ired that he be on the p a y r o ll o f a c o n t r i­
buting e m p lo y e r in a unit c o v e r e d by the c o lle c tiv e bargain in g a g r e e m e n t.13 F o r
exa m ple, one plan stated:
. . . e v e r y e m p lo y e e who is included within a unit c o v e re d by
a c o lle c t iv e bargain in g a g reem en t (w hich r e q u ire s con trib u tion s
to this plan by the e m p lo y e r) betw een an e m p lo y e r and union
w hich a re o r b e c o m e p a rtie s h e reto sh all au tom a tica lly be a
p a rticip a n t.
If the a g reem en t p r o v id e s fo r a union s h o p ,141 w hich is ty p ica l among
5
m u ltie m p lo y e r a g reem en ts ou tside righ t-to-w ork States, a ll p a rticip a tin g em p loy ees
would thus be union m e m b e r s . Only a seventh o f the p la n s, h o w e v e r, co v e rin g
le s s than a tenth o f the w o r k e r s , s p e c ific a lly req u ired union m e m b e rsh ip fo r
p a rticip a tio n .
One plan, fo r ex a m p le, stated that "e m p lo y e e m eans any d u e s paying m e m b e r o f the union. 1,15 The sam e plan appended the follow in g explanation
w hich can be g e n e ra lly applied to a ll plans with such re q u irem en ts:
So that no m isu n derstan din g m ay a r is e with r e fe r e n c e to the
above d efin ition o f the te rm "e m p lo y e e " in rela tion to any p r o ­
v is io n s o f the L a b o r M anagem ent R elations A ct o f 1947, as
am ended, it is a req u ire m e n t under the te rm s o f the c o lle c tiv e
b argain in g a g reem en ts betw een p a rticip a tin g com p a n ies and the
union, and it is and alw ays has been the p r a c tic e o f the union,
that the union adm it into its m e m b e rsh ip all em p lo y e e s of the
p a rticip a tin g com p a n ies a fter th eir 30th day o f em ploym en t,
without any d isc r im in a tio n w h a tsoev er, with the ex cep tion o f
th ose p e r s o n s to whom re a p p lica tion fo r m e m b e rsh ip m ay be
den ied under said act. T h e r e fo r e , sin ce th ere cou ld not be any
p e r s o n against whom d isc r im in a tio n could be e x e r c is e d within
the p r o v is io n s o f said act, the d efin ition o f em p loy ee as h ere in
stated is co n sid e r e d to be the b est te rm in o lo g y fo r the intent and
p u rp o se s o f c o v e ra g e and a d m in istration under this p en sion plan.

13 G e n e ra lly , the individual p a rticip a tin g e m p loy er cannot volu n ta rily in clude
additional e m p lo y e e s (s u p e r v is o r s , c le r ic a l, etc. ) ou tsid e the bargaining unit.
H ow ev er, m any plans do extend plan co v e ra g e to o ffic e r s and em p loy ees o f the
p a rticip a tin g lo c a l u n ion (s).
14 See Union S e cu rity and C h eck off P r o v is io n s in M a jo r Union C o n tra cts,
1 9 5 8 -5 9 , BLS B ull. 1272 (I9 6 0 ).
A union shop cla u se r e q u ire s a ll em p loy ees
in the bargain in g unit, as a con dition o f em ploym en t, to be o r b e c o m e union
m e m b e r s within a s p e c ifie d tim e a fter h irin g .
15 The a b sen ce o f such c la u se s fr o m m o s t plans m ay stem fr o m the p r o ­
h ib ition against d isc r im in a tio n in the L a b or M anagem ent R elation s (T a ft-H a rtle y )
A ct.
The N ational L a b o r R ela tion s B oard has held in s e v e r a l c a s e s involving
ille g a l union s e c u r ity a rra n g em en ts that p en sion plan cla u se s r e s tr ic tin g p a y ­
m ent o f b en efits to union m e m b e r s only w ere ille g a l.



21

A ge and s e r v ic e p a rticip a tio n req u irem en ts often found in sin g le e m ­
p lo y e r pla n s, w e re in clu ded in only 19 p lan s, co v e rin g 6 6 ,0 0 0 w o r k e rs , m ain ly
in the m eta lw ork in g and trade in d u stries.

Plans

Workers *
(thousands)

All p l a n s ..............................

736

3,229.8

No age or service requirements--------With requirements---------------------A g e ................................
S e r v i c e ---------------------------Age and s e r v i c e -------------------Information not a vailable --------------

686
19
i
f
10
5
31

3,133.0
65.9
5 2 .8
11.3
1 .7
31.0

Participation requirement

1 Worker coverage includes both active and retired work­
ers in 19 59.
NOTE: Because of rounding, sums of individual items may
not equal totals.

M inim um s e r v ic e re q u ire m en ts ranged fr o m 1 through 5 y e a r s , with
1 y e a r as the m o s t com m o n req u irem en t (table 8).
A ge req u irem en ts ranged
fr o m 22 through 40 y e a r s .

N o rm a l R etirem en t P r o v is io n s
N o rm a l re tire m e n t p r o v is io n s , a featu re o f v irtu a lly a ll p en sion plan s,
sp e c ify the age at w hich a q u alified w o rk e r would n o rm a lly be ex p ected to r e tir e ,
the fo r m u la to b e u sed to com pute re tire m e n t in co m e (o r the amount if a u n iform
b en efit is p a id ), and the con dition s and duration o f ben efit paym ent. The n orm a l
re tire m e n t age as stipulated in p en sion plans is not n e c e s s a r ily the age o f actual
re tire m e n t; it is te ch n ica lly , the e a r lie s t age at w hich a w o rk e r, having oth erw ise
q u alified fo r b e n e fits, m a y r e tir e o f his own a c c o r d and r e c e iv e im m ed ia tely the
fu ll am ount o f b en efits to w hich he is en titled . M o st plans a ls o r e q u ire the fu lfill­
m ent o f a sp e c ifie d p e r io d o f c re d ite d s e r v ic e with one o r m o r e o f the e m p lo y e rs
p a rticip a tin g in the plan, as in the follow in g cla u se:
An e m p lo y e e
re tire m e n t

sh all be

e lig ib le

fo r

a n o rm a l p en sion if,

at

(a) he has attained age 65; and
(b) he has c r e d it fo r 25 y e a rs o r m o r e o f s e r v ic e in the
trade; and
(c) he has actu ally w ork ed in c o v e re d em p loym en t fo r at
le a st fo u r q u a rte rs . . .

N o rm a l R etirem en t .A g S , The n o rm a l re tire m e n t age in a ll but 33 plans
was 65, the you n gest age at w hich fu ll s o c ia l s e c u r ity o ld -a g e b en efits a re p a y ­
able; 24 had ages b e lo w 65 and 9 above (table 9). A lthough only 20 plans p e r ­
m itted w o r k e rs to r e t ir e on fu ll b en efits at age 60, they c o v e r e d o v e r 15 p e rce n t
o f the w o r k e r s ; in this group w e re s e v e r a l la r g e plans in the c o a l m ining and
m o to r tra n sp orta tion in d u strie s.
A ll but fou r plans with a n o rm a l re tire m e n t
age oth er than 65 w e re w h olly s e lf-in s u r e d (table 10).



22

B en efit F o r m u la s . The p e n sion fo rm u la s in m u ltie m p lo y e r plans do not
exh ibit the w ide d iv e r s ity found in sin g le e m p lo y e r pla n s. M o st can be c la s s ifie d
into two b a s ic ty p es: (1) F lat o r u n ifo rm b en efits fo r a ll w o r k e rs who fu lfill s p e c i­
fie d s e r v ic e re q u ire m e n ts, o r (2) b en efits w hich v a rie d by length o f s e r v ic e alone.
F o rm u la s in w hich b en efits v a rie d by both earnings and s e r v ic e , com m on ly found
in sin g le e m p lo y e r pla n s, w e re used by few m u ltie m p lo y e r pla n s.
E xam ples o f
each o f th ese types a re:
U n iform b en efit fo r s p e c ifie d s e r v ic e —
. . . m e m b e r s e lig ib le under th ese ru les fo r re tire m e n t b en efits
sh all r e c e iv e the sum o f $50 p e r m onth . . .
> $
J
«
B en efit p r o p o r tio n a l to length o f s e r v ic e —
. . . the m onthly am ount o f . . . ben efit sh all be equal to
$ 1 .0 5 a m onth fo r each co m p leted y e a r (fra ctio n a l c r e d it w ill
be given fo r co m p le te d m onths) o f future s e r v ic e .
* * *
B en efit b ased on earn in gs and s e r v ic e —
The am ount o f m onthly p e n sio n fo r a c o v e r e d e m p loy ee e lig ib le
fo r re tire m e n t sh all be an am ount equal to fo u r-te n th s o f 1 p e r ­
cen t o f a v e ra g e m onthly earn in gs o f such em p loy ee fo r each
y e a r o f c r e d ite d s e r v ic e .
A fou rth o f the pla n s, with a lm o st h alf o f the w o rk e rs under m u ltie m p lo y e r
p la n s, stipulated fla t o r u n iform b en efit fo rm u la s (table 11), as con tra sted with a
s m a ll fr a c tio n o f negotiated sin g le e m p lo y e r plan s.
F lat b en efits fo r s p e c ifie d
s e r v ic e w e re found m a in ly in the a p p a rel, m in in g, and w ater tra n sp orta tion in d u s­
t r ie s .
The v a st m a jo r ity o f plans w e re s e lf-in s u r e d (table 12).
F o rm u la s in w hich b en efits v a rie d by length o f s e r v ic e alone w e re found
in o v e r 60 p e r c e n t o f the pla n s, with 40 p e rce n t o f the w o r k e r s , as co m p a re d with
about a th ird o f sin gle e m p lo y e r p la n s. This type o f fo rm u la was m o s t com m on
in the fo o d , prin tin g, m eta lw ork in g , con stru ction , tra d e, m o to r tra n sp orta tion ,
and s e r v ic e in d u strie s.
T h r e e -fo u r th s o f the in su red plans and th re e -fifth s of
the s e lf-in s u r e d plans had this type o f form u la .
O nly six m u ltie m p lo y e r plans had a fo rm u la in w hich a com bin ation o f
earn in gs and s e r v ic e w as u sed to d e term in e b en efits, by fa r the m ost co m m o n
fo rm u la in sin g le e m p lo y e r plan s.
In 24 pla n s, b en efits w e re e x p r e s s e d as a p e rce n ta g e o f the e m p lo y e r
con trib u tion s m ade fo r each w o rk e r— a fo rm u la r a r e ly u sed in sin g le em p lo y e r
p la n s. T h ese plans w e re sig n ifica n t (fo r w ide c o v e ra g e o f w o r k e rs ) in the m o to r
tra n sp o rta tio n in du stry.
In 13 o f th ese p lan s, con trib u tion s w e re on a tim e
w ork ed b a s is , h en ce b en efits w e re in d ir e ctly rela ted to s e r v ic e . Two plans b a sed
con trib u tion s on in dividu al ea rn in gs, thus b en efits w e re in d ir e ctly related to both
earn in gs and s e r v ic e .
The b a s is o f con trib u tion s and the underlying b a sis o f
b en efits in the rem ain in g plans w e re not a v a ila b le. S ince con trib u tion s a re often
c lo s e ly rela ted to h ou rs w ork ed, b en efits under a ll 24 plans a re m o r e apt to be
a ffe cte d by sh ort b re a k s in s e r v ic e than a re b en efits under fo rm u la s d ir e c tly r e ­
lated to s e r v ic e , w hich u su ally c r e d it s e r v ic e annually o r q u a rterly .



23

T w en ty -th re e p la n s, found m a in ly in the co n stru ctio n in du stry, did not
con tain a s p e c ific b en efit fo r m u la in the p e n sio n plan d ocu m en t. B en efits w ere
u su a lly d eterm in ed by the am ount accu m u lated in a w o r k e r 1s individual accou n t
at the tim e o f r e tire m e n t.
One o f th ese p la n s, f o r ex a m p le, read:
T ru ste e s sh all pay such b en efits as the am ount cre d ite d to each
in dividu al em ployee*s a ccou n t w ill p u rch a se fo r such em p loy ee
at the tim e o f r e tire m e n t.
M o st o f th ese p la n s, as show n la te r (page 2 6 ), paid on ly lu m p -su m cash b e n ­
e fits .
Sin ce con trib u tion ra te s w e re b a sed on tim e w ork ed , b en efits w e re
g e n e r a lly p r o p o rtio n a te to s e r v ic e . U sually th ese plans w e re s e lf-in s u r e d .
A lthough m o s t m u ltie m p lo y e r b en efit fo rm u la s w e re rea d ily c la s s ifia b le
into the m a jo r types d is c u s s e d a bove, unusual b en efit o r co v e ra g e p r o b le m s
cr e a te d a n eed fo r sig n ifica n t v a ria tio n s.
F o r ex a m p le, fiv e plans negotiated
by the T e a m s te r s , each with a n o rm a l re tire m e n t age o f 60, had a b u ilt-in p a rtia l
s o c ia l s e c u r ity adjustm ent. To even out total re tire m e n t in co m e o v e r the en tire
re tire m e n t p e r io d , th ese plans p ro v id e d fo r the paym ent o f h igh er b en efits in the
f ir s t 60 m onths o f re tir e m e n t, than subsequently. Under one plan, fo r ex am p le,
a w o r k e r re tirin g at age 60 r e c e iv e s $65 a m onth m o r e betw een ages 60 and
65 than a fter age 65, when he p re s u m a b ly would be re c e iv in g fu ll s o c ia l s e cu rity
b e n e fits. W hile th ese fo rm u la s w e r e apparently d esig n ed to en cou ra g e re tire m e n t
b e fo r e s o c ia l s e c u r ity b en efits a re p a y a b le, they do not p e n a lize th ose re tirin g
a fter age 60 by lim itin g the ages at w hich the h ig h er b en efits m ay be r e c e iv e d .
The fo llo w in g cla u se is ty p ic a l o f th ese p lan s:
. . . The r e tire m e n t b en efit . . . sh all c o n s is t o f a retire m e n t
in co m e pa ya b le fo r the rem ain in g life o f the p e n s io n e r in the
am ount of:
(a)

F o r an e m p lo y e e fo r w hom the la st e m p lo y e r to m ake c o n ­
trib u tion s to the tru st fund has con trib u ted under a c o l ­
le c tiv e bargain in g a g reem en t p rov id in g fo r con trib u tion s at
the rate o f $2 p e r w eek—
1.
2.

(b)

$90 payable m onthly fo r a p e r io d not to e x ce e d 60 m onths
during the life tim e o f the p e n s io n e r; and
$ 2 2 .5 0 p a ya b le m onthly th e re a fte r fo r
p e n s io n e r sh a ll su rv iv e.

as long as the

F o r an em p lo y e e f o r w hom the la st e m p lo y e r to m ake c o n ­
trib u tion s to the tru st fund has con trib u ted under a c o l l e c ­
tiv e bargain in g a g re e m en t p rov id in g fo r con trib u tion s at the
rate o f $3 p e r w eek f o r 2 y e a r s and $4 p e r w eek th e re a fte r—
1.

$135 payable m onthly fo r a p e r io d not to ex ce e d
60 m onths during the life tim e o f the p e n s io n e r; and

2.

$70 pa ya b le m onthly th e re a fte r
p e n s io n e r sh all su rv iv e .

fo r

as

long

as the

The b e n e fit fo rm u la r e p ro d u ce d above is a lso an illu stra tio n o f fo rm u la s
ba sin g b en efits on con trib u tion r a te s. This p r o c e d u r e a llow s m o r e fle x ib ility in
lo c a l and in dividu al e m p lo y e r n eg otiation , although the w o r k e rs and e m p lo y e rs both
r e c e iv e the advantages o f a p o o le d p en sion arra n g em en t. Although only 13 plans
in clu ded in this study a llow ed a c h o ic e , within p r e s c r ib e d lim its , o f ra tes and
b e n e fits, this a p p roa ch m a y sp rea d as unions seek a w id er g e o g ra p h ic o r in d u s­
tr ia l sc o p e in p e n sio n planning.



24

accou n t,

Som e u n iform b en efit plans took occu p a tion a l earn in gs d iffe r e n c e s into
as in the follow in g illu stra tion :
. . . The re tire m e n t fund sh all pay to such m e m b e r , until
the tim e o f h is o r h er death, the m onthly paym ents set forth
b e lo w : . . .
(a)

The sum o f $50 m onthly to m e m b e r s who at the tim e o f
th eir re tire m e n t a re o p e r a to r s , c u tte rs, o r b lo c k e r s . . .

(b)

The sum o f $40 m onthly to m e m b e rs who at the tim e o f
th e ir re tire m e n t a re se a so n a l straw o p e r a to r s , t r im m e r s ,
s lic k e r s , o r shipping c le r k s .

One plan had a c o s t - o f - liv in g adjustm ent in its ben efit fo rm u la .
P a st S e r v ic e B en efit F o r m u la s .
M u ltiem p loy er plans u su ally cre d ite d
p a st s e r v ic e (i. e . , em ploym en t re n d ered p r io r to the e ffe c tiv e date o f the plan
o r p r io r to an in c r e a s e in plan b en efits) at the sam e le v e l as future s e r v ic e
(i. e . , subsequent em ploym en t).
In co n tra st, n egotiated sin g le e m p lo y e r plan s,
ex cep t fo r th ose with a fla t b en efit fo r s p e c ifie d s e r v ic e , u su a lly p ro v id e l e s s e r
c r e d its fo r p a st s e r v ic e than fo r future s e r v ic e y e a r s . 16
S o c ia l S e cu rity In tegration .
Only one m ulti e m p lo y e r plan d ir e c tly in ­
teg ra ted plan b en efits with s o c ia l s e c u rity b e n e fits, as co n tra sted with about 1 out
o f 4 n egotiated sin gle e m p lo y e r plan s.
M inim um B e n e fit. F ew m u ltie m p lo y e r pen sion plans had p r o v is io n s e s ­
tablish in g a m in im u m b en efit am ount although they a re freq u en tly found in sin g le
e m p lo y e r pla n s.
R ath er, a m in im u m b en efit was u su ally esta b lish ed by the
m in im u m re q u ire m e n ts fo r re c e iv in g any ben efit. W here a fla t ben efit was p r o ­
vid ed, fo r ex a m p le, the b en efit it s e lf w as both a m in im u m and a m axim u m .
W here b en efits v a rie d by s e r v ic e (the m o s t p rev a len t ap p roa ch in m u ltie m p lo y e r
p la n s), the m in im u m b en efit was the p rod u ct o f the m in im u m y e a r s o f s e r v ic e
re q u ire d to qualify fo r b en efits and the ben efit payable fo r each y e a r o f s e r v ic e .
S om e p la n s, h o w e v e r, had s p e c ific m in im u m b en efits o f a te m p o ra ry nature fo r
w o r k e rs who cou ld not m e e t the m in im u m s e r v ic e re q u irem en ts b e ca u se they
w e re too n ear the n o rm a l re tire m e n t age when the plan began.
F o r m o f P a y m e n ts. V irtu a lly a ll p en sion plans p r o m is e that the p en sion
w ill continue fo r the w ork er*s life tim e . Som e pla n s, in addition, guarantee p a y ­
m en ts fo r a stated p e r io d o f tim e to the pen sion er*s b e n e fic ia r y should the p e n ­
sio n e r die during this guarantee p e r io d .
Many o f the 34 co n trib u tory plans
guarantee to retu rn as b en efits at le a st the am ount o f m on ey con trib u ted by the
w o r k e r, u su a lly with in te re st.
T h ese com m on fo r m s o f p en sion p r o m is e s a re
illu stra te d by the follow in g cla u s e s :
L ife tim e (s tr a ig h t-life ) only—
The m on th ly am ount o f r e tire m e n t b en efit . . . sh all be p a y ­
able in m onthly in sta llm en ts com m en cin g on his re tire m e n t date
and term in atin g with the m onthly paym ent coin cid in g with o r
next p re ce d in g the date o f h is death.
G uarantee p e r io d (paym ent ce rta in )—
If a p e n s io n e r sh all die within the 36-m on th p e r io d beginning with
the e ffe c tiv e date o f h is p en sion , then the b en efit to w hich

16

See BLS B ull.




1307,

op.

cit.

25

he w as entitled sh all b e c o m e payable to the su rvivin g w ife. If the
su rvivin g w ife should die b e fo r e the re m a in d e r o f the 36-m onth
p e r io d , o r if th ere is no su rvivin g w ife at the tim e o f the death
o f the p e n s io n e r , b en efits fo r the rem a in d er o f the 36-m onth
p e r io d shall b e c o m e pa ya b le and d ivid ed equally am ong the s u r ­
vivin g dependent ch ild o r dependent ch ild re n at the tim e o f death
o f the p en sion er o r the su rv ivin g w ife as the c a s e m ay be. B en ­
efits payable under this p r o v is io n shall ce a s e on the death of the
su rv ivin g w ife and o f the la st su rv ivin g dependent ch ild o r at the
end o f the 3 6 - m onth p e r io d , w h ich ev er shall fir s t o c c u r .
G uaranteed retu rn o f e m p lo y ee con trib u tion with in te re st (m o d i­
fie d ca sh refund ) 17 —
Upon death o f a p e n s io n e r, any e x c e s s o f the am ount o f his c o n ­
tribu tion s with in te re st at the tim e o f re tire m e n t o v e r the sum
o f p e n sio n paym ents r e c e iv e d sh all be paid to his design ated
b e n e fic ia r y . . .
P e n sio n paym ents stop upon the death o f the p e n s io n e r (paym ent fo r life ,
only) in 80 p e r c e n t o f the m u ltie m p lo y e r plans co v e rin g a lm o st 90 p e rce n t o f the
w o r k e rs (table 13). E leven p e r c e n t (82) o f the p la n s, with 9 p e r c e n t o f the w o r k ­
e r s , m a in ly in the fo o d and c o n stru ctio n in d u strie s, p r o m is e d that if the w o rk e r
died b e fo r e r e c e iv in g a guaranteed num ber o f p en sion p a y m en ts, the rem aining
paym ents would be continued tp h is ben eficiary,* u su ally h is w idow . Such g u a r­
antees w e re in clu d ed in a s m a lle r p r o p o r tio n o f in su red than o f the s e lf-in s u r e d
plans (table 14). Although the length o f the guarantee ranged fr o m 1 to 15 y e a r s ,
it was r a r e ly le s s than 3 y e a r s , and u su ally ran fo r eith er 3 (35 plans) o r 5 y e a r s
(30 p la n s).

Workers**’
Guarantee period

Plans, (thpugapqg.)

All plans with payment-certain
guarantees ----------------

82

284.4

12 months ------------------24 months ------------------30 months ------------------36 months ------------------40 months ------------------4 8 months------------------60 months ------------------120 months -----------------180 months -----------------Other -----------------------

1
3
1
35
1
1
30
7
.1
tp
>

1.4
1 .1

40.0
184.3
(2 )
1.0
45.8
7.1
.6

3.0

Worker coverage includes both active and retired work­
ers in 1959 .
2 Fewer than 50 workers.
* Guarantee period varies by years of service.
NOTE; Because of rounding, stuns of individual items may
not equal totals.

17
The w ord "m o d ifie d " is u sed h e re to d istin gu ish this type of guarantee
fr o m one guaranteeing the retu rn o f the e m p lo y e r 's con trib u tion s as w ell as the
e m p lo y e e 's con trib u tion s.



26

F ou rteen o f the 30 jo in tly fin an ced plans p r o m is e d a m o d ifie d cash r e ­
fund, i. e. , to m ake a su fficie n t n u m ber o f paym ents to the w o rk e r and, after his
death, to retu rn to h is b e n e fic ia r y at le a s t h is con trib u tion s, with o r , in som e
p la n s, w ithout in te r e st. Two plans p ro v id e d that if total paym ents w e re le s s than
the c o s t o f the b en efit at re tire m e n t the b a la n ce would be paid to a b e n e fic ia r y
(i. e. , a fu ll ca sh refund).
S ix plan s p ro v id e d a c h o ic e o f b en efits in such a w ay that it was not
p o s s ib le to d e te rm in e w hich w as the b a s ic paym ent m eth od (i. e . , the b en efit that
w ould be paid if the w o rk e r fa ile d to m ak e a ch o ice ).
F o r ex a m p le, one plan
stated that:
The p a rticip a n t (i. e. , r e tir e e ) . . . m ay e x e r c is e , with the
a p p ro v a l o f the tr u s te e s , one o f the options h e re in a fte r set
fo rth . . . (a) the tru ste e s can p u rch a se fo r the p a rticip a n t a
paidup annuity co n tra ct in such fo r m . . .
as the p a rticip a n t
m a y re q u e st, o r (b) the tr u ste e s m ay pay him a fix e d sum o f
m on ey p e r m onth as long as he sh all liv e , and paym ent o f such
m onthly am ounts sh all c e a s e upon the exhaustion o f such p a r t i c i ­
p a n t s a ccou n t, o r (c) the tr u ste e s m ay, on th eir own m otion , o r
at the req u est o f the p a rticip a n t in volved . . . p r o v id e fo r a
lu m p -su m paym ent.
Seven teen p la n s, m o s t o f w hich did not have a s p e c ific b en efit fo rm u la ,
in d ica ted that paym en t would be m ade in a lump sum (5 p la n s), o r in in s ta ll­
m en ts o f e ith er a s p e c ifie d am ount o r duration, o r both ( 1 2 p la n s), to w o rk e rs
re tirin g at n o rm a l r e tire m e n t age. T h ese plans w e re u su ally s m a ll s e lf-in s u r e d
plans in the a p p a rel and co n stru ctio n in d u strie s. This ca sh b en efit was u su ally
lim ite d to the am ount o f con trib u tion s in the individual w o r k e r 1 s accou n t, as i ll u s ­
tra ted by the fo llo w in g cla u se :
In the event p a rticip a n ts r e tir e fr o m the in d u stry, the fund
sh all pay to such p a rticip a n t the sum o f $50 p e r m onth until
the m on ey s o f such in dividual accou n t have been exhausted.
O ptional F o r m s o f B en efit P a y m en t.
R etirem en t b en efit
paym ents
n o r m a lly c e a s e upon the death o f the p e n s io n e r, u n le ss, as p r e v io u s ly d is c u s s e d ,
a m in im u m nu m ber o f paym ents o r am ount is guaranteed (in som e way) o r if
th ere is a death b en efit p r o v is io n .
(See page 39.) H ow ev er, about 1 out o f
7 m u lti e m p lo y e r pla n s, lik e m any sin g le em p lo y e r p lan s, a lso p ro v id e one o r
m o r e option a l fo r m s o f b en efit paym ents under which b en efits m ay be paid to a
b e n e fic ia r y a fte r the p e n s io n e r s death (table 15).
W o rk e rs electin g an option
through w hich b en efits a re continued to th eir b e n e fic ia r ie s m u st a cce p t a red u ced
pen sion during th eir life tim e .
T h ese op tion s, lik e m o s t e a r ly re tire m e n t p r o ­
v is io n s and s o c ia l s e c u r ity adjustm ent op tion s, a re u su ally o f the sam e a ctu a ria l
value as the n o rm a l pen sion s they r e p la c e , so as not to in c r e a s e the c o s t o f the
plan; i. e. , the w o rk e r b e a rs the e n tire c o s t o f the option. To m in im iz e a d v e rse
s e le c tio n again st the plan by w o r k e rs in p o o r health at re tire m e n t, the option al
fo r m m u st u su a lly be e le cte d w e ll b e fo r e re tire m e n t— m o s t often 5 y e a r s in
advance— u n less the w o rk e r can show ev id en ce o f good health at r e tir e m e n t . 18
The m o s t com m o n type o f option was the join t and s u r v iv o r option, under
w hich the w o rk e r e le c ts to r e c e iv e a red u ced ben efit fo r life with a guarantee
that, if he d ie s w hile h is b e n e fic ia r y is liv in g , paym ents at a p re d e te rm in e d ra tio
w ill continue to h is b e n e fic ia r y fo r life . T his is illu stra te d by the follow in g cla u se :

18
A m o r e d eta iled a n a ly sis
fo rth co m in g BLS b u lletin , op. cit.



o f op tion al b en efits

w ill be p re se n te d

in a

27

. . . Instead o f r e c e iv in g the n o rm a l re tire m e n t b en efit, the
e m p lo y e e m ay e le c t a re d u ced re tire m e n t annuity to be paid as
long as he liv e s , with the future p r o v is io n that a ll o r p a rt o f
this re d u ce d re tire m e n t annuity w ill b e continued a fte r his death
during the rem ain in g life tim e o f a b e n e fic ia r y (known as the
jo in t annuitant) nam ed b y him • . .
This option w as a v a ila b le in 101 p la n s, c o v e rin g about 7 p e r c e n t o f the w o r k e r s .
The p e r io d -c e r t a in option, av a ila b le in 26 p la n s, u su ally in com bin ation
with a jo in t and s u r v iv o r option , a llow s the p e n s io n e r to e le c t to r e c e iv e a red u ced
b e n e fit fo r life on the con dition that, if he d ies b e fo r e r e ce iv in g a s p e c ifie d num ­
b e r o f pa y m en ts, the b a la n ce w ill b e continued to h is b e n e fic ia r y . F o r exam ple':
A p a rticip a n t m a y , in lie u o f a ll paym ents oth e rw ise payable
to h im on and a fter h is re tire m e n t annuity date, e le c t the life
a n n u ity -ce rta in option p rov id in g paym ents as fo llo w s :
(a)

To the p a rticip a n t: A red u ced re tire m e n t annuity, the fir s t
m onthly paym ent th e r e o f bein g payable on the p a rticip a n t 1 s
*
re tire m e n t annuity date, i f he is then liv in g , subsequent
m onthly paym ents bein g payable on each due date th e re a fte r
throughout h is rem ain in g life tim e , term in atin g with the la st
m onthly paym ent p r io r to his death.

(b)

T o the p a r t ic ip a n t s b e n e fic ia r y :
The continuation o f such
re d u ce d re tire m e n t annuity pay m en ts, if the p a rticip a n t dies
b e fo r e re c e iv in g a total o f 1 2 0 m onthly paym ents o f such
re d u ce d re tire m e n t annuity, until a total o f 120 m onthly
re tir e m e n t annuity paym ents in a ll has been m ade to the
p a rticip a n t and to his b e n e fic ia r y . . .

The c a s h -r e fu n d option o ffe r e d by fo u r plans p r o v id e s that if total b e n e ­
fits r e c e iv e d by the p e n sio n e r a re le s s than the c o s t o f pu rch asin g the b en efit
at r e tire m e n t, the b a la n ce w ill b e paid to his b e n e fic ia r y .
The m o d ifie d c a s h refund option , on the oth er hand, p r o v id e s that if total b en efits r e c e iv e d by the
p e n s io n e r a re le s s than the w o r k e r s con trib u tion (with o r without in te re s t), the
b a la n ce w ill b e paid to a desig n a ted b e n e fic ia r y . Only 1 plan o ffe r e d this option
b e ca u se a ll but 1 6 o f the 34 co n trib u to ry plans p ro v id e d a m o d ifie d cash refund
as the standard o r n o rm a l fo r m o f annuity. In addition, fo u r oth er pla n s, n o rm a lly
p ro v id in g so m e type o f gu aran tee, a llow ed the w o r k e r to e le c t a straigh t life
annuity paying a la r g e r m onthly b e n efit o f equal a ctu a ria l valu e.
P r o v is io n fo r option al fo r m s w as m o s t com m on am ong plans in food
m a n u factu rin g, co n stru ctio n , and tra d e. P o s s ib ly a r e fle c tio n o f the g r e a te r e x ­
p e r ie n c e o f in su ra n ce com p a n ies in ad m in isterin g op tion s, 35 p e r c e n t o f the
in su re d plans as co m p a re d with on ly sligh tly m o r e than 10 p e r c e n t o f s e lf-in s u r e d
plans o ffe r e d option al fo r m s o f paym ent (table 1 6 ).
Am ount o f N orm a l R e tire m en t B e n e fit.
In o r d e r to evaluate m u lti­
e m p lo y e r plans in te rm s o f the am ount o f re tire m e n t b e n e fit p ro v id e d , the m onthly
am ount o f n o rm a l pen sion b e n e fits w as com puted fo r each plan, w h ere p o s s ib le ,
under the follow in g a ssu m ed co n d ition s:
1.
The w o r k e r w ill r e t ir e at age
h igh er m in im u m age w as s p e c ifie d ).

65 (e x cep t fo r

nine plans w h ere a

2.
Annual earn in gs o f $ 4 ,8 0 0 .
This earn in gs le v e l was a ssu m ed to
b e con stan t throughout the w o r k e r 's c a r e e r , although som e plans w ould pay
the sam e b e n e fit if his a v e ra g e earnings fo r ce rta in y e a r s (e .g ., the 10 im ­
m ed ia tely b e fo r e r e tire m e n t) o r if his c a r e e r a v era g e earn in gs w e re $ 4 ,8 0 0 .



28

3.
F uture s e r v ic e c r e d its o f 30 y e a r s . Since few o f th ese plans have
d istin ctly d iffe re n t p a st and future s e r v ic e b e n e fits , the am ounts com puted,
in g e n e ra l, a ls o apply to w o r k e rs re tirin g at the p r e s e n t tim e.

No b e n e fit am ount cou ld be com pu ted fo r 69 plans co v e rin g 89,500 w o r k ­
e r s e ith er b e c a u se they had no b e n e fit fo rm u la o r s u fficie n t in form a tion w as
not a v a ila b le.
M onthly b e n e fit am ounts thus com puted ranged fr o m $10 to $230.
A
fou rth o f the plans co v e rin g about the sam e p ro p o rtio n o f w o r k e rs p ro v id e d b e ­
tw een $50 and $60 a m onth as shown in ch art 2.
The a v e ra g e b e n e fit paid by
th ese plans am ounted to $ 6 8 . 34 in flu en ced by a substantial num ber o f w o r k e rs
in plans paying $ 1 0 0 o r m o r e .
Workers1

Plans
Monthly benefit excluding
social security
All plans for which benefits
were computed d -----------------Under $30 -----------------------$30 and under $4-0----------------$4-0 and under $ 5 0 ----------------$50 and \inder $ 6 0 ----------------$60 and under $70 ----------------$70 and under $80 ----------------$80 and under $90 ----------------$90 and under $100 ---------------$100 and under $110 --------------$110 and under $120 --------------$120 and under $130 --------------$130 and o v e r --------- -----------

Average monthly benefit * --------1
2

puted.
5

Number

Percent

Number
(thousands)

Percent

667

10 0.0

3,140.3

1 0 0.0

40
84
87

6 .0
1 2 .6

2 0 8 .0

6 .6

137.3
347.8
824.9
324.1

4.4
26.3
10.3

3 8 2 .6

1 2 .2

31.7
79.9
535.0
20.4
39.2
209.5

1.0
2.5
17.0

169
96
67
8
28

50
11

14
13

13.0
25.3
14.4
1 0 .0
1 .2

4.2
7.5
1 .6
2 .1

1.9

11 .1

.6
1 .2

6.7

$68.34

Worker coverage includes both active and retired workers in 1959In 69 plans, covering 89 ,500 workers, benefit amounts could not be com­
(See explanation in text.)
Arithmetic mean, weighted by workers covered.

NOTE:

Because of rounding, sums of individual items may not equal totals.

If the m axim u m p r im a r y s o c ia l se cu rity b e n e fit o f $ 1 2 7 19 is added to
plan b e n e fits , total m onthly re tire m e n t in co m e ranges fr o m $137 to $357. The
a v e ra g e fo r a ll w o r k e r s in c r e a s e s to $ 1 9 5 .3 4 ($ 6 8 .3 4 plus $ 1 2 7 ), rep resen tin g
a lm o st h alf (48.8 p e r c e n t) o f the a ssu m ed p r e r e tir e m e n t earn in gs le v e l of $ 4 ,8 0 0 .
P lan s p rov id in g m onthly b e n e fit am ounts w hich, when added to m axim u m p r im a r y
s o c ia l s e c u r ity b e n e fits , w ould equal $ 2 0 0 , o r at le a s t h a lf o f the w ork er* s p r e ­
r e tire m e n t in c o m e , w e re m o st com m on in fo o d , m eta lw ork in g , con stru ctio n ,
m o to r tra n sp o rta tio n , tra d e , and m otion p ictu res and r e c r e a tio n (table 17).
On the a v e ra g e , s e lf-in s u r e d plans p ro v id e d slig h tly h igh er m onthly
b e n e fits than in su re d plan s— $ 7 1 .4 3 and $ 6 7 .0 2 , r e s p e c t iv e ly (table 18). M ore
than 1 out o f 4 s e lf-in s u r e d plans (c o v e rin g 4 out o f 10 w o r k e rs under such p la n s),
as co m p a re d with sligh tly le s s than 1 out o f 4 in su red plans (with m o r e than 7 out
o f 10 w o r k e r s ), p ro v id e d b e n e fits w h ich, when sup plem ented by m axim u m p r im a r y
s o c ia l se c u r ity b e n e fits , am ounted to at le a st h alf o f p r e r e tir e m e n t ea rn in gs.
19
U nder s o c ia l s e c u r ity p r o v is io n s in e ffe c t in 1961, the m axim u m b en efit
o f $127 fo r w o r k e r s at the a ssu m e d earnings le v e l o f $ 4 ,8 0 0 p e r y e a r w ill not
b e p a y a b le, w ith a few e x ce p tio n s, until a fter 35 y e a r s , although w o r k e rs m ay
b e c o m e e lig ib le fo r sligh tly le s s than the m axim u m m uch s o o n e r .



29

Chart 2 . Monthly Normal Retirement Benefits
(Excluding Social Security) for a Worker Earning
$4,800 a Year With 30 Years of Future Service
In Multiemployer Pension Plans Under Collective Bargaining, Spring I96 0 1
Percent

Percent

Under

$30

$40

$50

$30

$40

$50

$60




$60
$70
and under
$70
$80

$80

$90

$100

$90

$100

$110

$110
and
Over

Normal Monthly Benefit
. 1 Based on a study of 736 multiemployer pension plans under collective bargaining covering 3,229,800' workers/
active and retired, in 19591 In 69 plans covering 89,500 workers,| benefit amounts could not be computed
.
and have|been excluded from the chart.

30

B en efits a v e ra g e d a little h igh er in flat b e n e fit fo rm u la s than th ose in
w hich the b e n e fit fo rm u la s v a r ie d b y s e r v ic e — $ 6 8 .9 1 and $ 6 6 .9 7 , r e s p e c t iv e ly
(table 19).
In p a rt, this d iffe r e n c e is attributable to (1) paym ent o f m axim u m
b en efits u n der the s e r v ic e plans a fter 20 and 25 y e a rs o f s e r v ic e , and (2) in ­
clu sio n o f s e v e r a l la r g e T e a m sters* plans p rov id in g a fla t b e n e fit o f $ 1 3 5 20 a
m onth fo r on ly the f ir s t 5 y e a r s o f r e tire m e n t, but a su bstan tially red u ced b e n e ­
fit th e r e a fte r .
(See page 23. )
E a r ly and D isa b ility R e tire m e n t,

and V esting

M ulti e m p lo y e r p e n sio n p la n s, as a g rou p , p ro v id e a ll o f the su b sid ia ry
b e n e fits found in sin g le e m p lo y e r p la n s, but with a d iffe re n t em p h asis re fle ctin g
d iffe r e n c e s in the nature o f the ba rgain in g rela tion sh ip and the la b o r m a rk et.
Slightly m o r e than a fou rth o f m u ltie m p lo y e r p la n s, c o v e rin g tw o -fifth s o f the
w o r k e r s , p r o v id e d a n o rm a l r e tire m e n t b e n e fit only (table 20).
A nother fourth
o f the plans added a d isa b ility r e tir e m e n t p r o v is io n .
T he rem ain in g h a lf o f a ll
m u lti e m p lo y e r plans had d iffe re n t com bin ation s o f e a rly and d isa b ility r e t ir e ­
m en t and v e stin g .
The p r e v a le n c e o f th ese p r o v is io n s am ong the 736 m u lti­
e m p lo y e r plans studied is shown b e lo w :

~— Flans— —
Provision

Number

...otE.
..Mnes

Percent

Number
(thousands)

Percent

All plans ---------------------------

73 6

1 0 0 .0

3,229.8

100.0

Early retirement 2 --------------- --Disability retirement 5 ----------- --Vesting ^ ------------------------ --Information not available -------- ---

262
386
168

3 5 .6

754.2
1,474.5
595.0
31.0

2 3 .4
4 5 .7
1 8 .4

*
2
^

52.4
22.8
4.2

31

1.0

Worker coverage includes both active and retired workers in 1959*
Excludedare plans which provided early retirement for women only.
Excluded are plans which provided lump sum disability benefits only.
Excludedare plans which provided lump sum termination benefits only.

A s shown
addition to n o rm a l
b ility r e tir e m e n t,
th ese plans (table

b e lo w , only 70 plans co v e rin g 1 9 5,00 0 w o r k e rs p ro v id e d , in
r e tire m e n t, a ll th ree m a jo r b en efits— e a r ly re tire m e n t, d is a ­
and v estin g.
The co n stru ctio n in d u stry a ccou n ted fo r 31 o f
2 1 ) and 52 w e r e in s e lf-in s u r e d plans (table 22).
--- Elans

Major benefits provided in addition
to normal retirement

—

--- MQgker&;f>. —
.Number
(thousands) Percent

Number

Percent

All plans ------------------------------

736

100.0

3 ,2 2 9 .8

100.0

No additional benefits -----------------Disability retirement only -------------Disability retirement ------------------And early retirement and vesting ---And early retirement ---------------And vesting ------------------------Without disability retirement ----------With early retirement and vesting --With early retirement only ---------With vesting only -- ---------------Information not available ---------------

202
183
203
70
100
33
117
40
52
25
31

2 7 .4

1 ,2 8 5 .8
8 8 3 .2
5 9 1 .3
19 4.7
3 3 2 .5

39.8
27.3
18.3

1

24.9
27.6
9.5
13.6
4.5
15.9
5.4
7.1
3.4
4.2

64.1
438.6
124.7
102.3
211.6
31.0

6 .0
10.3
2 .0

13.6
3.9
3.2
6.6
1.0

Worker coverage includes both active and retired workers in 1959*

NOTE:

Because of rounding, sums of individual items may not equal totals.

20
T his am ount w as u se d in the d istrib u tion s and in the com pu tation o f the
fo re g o in g a v e r a g e s .



31

E a rly R e tire m e n t P r o v is io n s .
E a rly re tire m e n t, as the te rm is u sed
in p e n sion p la n s, m eans r e tir e m e n t b e fo r e the n o rm a l r e tire m e n t age s p e c ifie d
b y the plan.
U su ally the b e n e fit is red u ced b e lo w the a c c r u e d n o rm a l b en efit
to com p en sa te fo r the lo n g e r p e r io d o v e r w hich b en efits a re e x p e cte d to b e paid.
Although e a r ly re tir e m e n t b e n e fits a re alw ays payable im m e d ia te ly on r e t ir e ­
m en t, under so m e plans the fu lly q u a lified w o rk e r m ay ch o o se to d e fe r r e ce iv in g
a b e n e fit until he attains the n o rm a l re tire m e n t age in the plan when the fu ll,
o r re d u ce d b e n e fit is p a y a b le. E a r ly re tire m e n t is a lm o st alw ays at the option
o f the w o r k e r under m u ltie m p lo y e r p lan s.
A ge and s e r v ic e re q u ire m en ts a re ty p ica lly stipulated in e a r ly r e t ir e ­
m ent p r o v is io n s , as in the fo llo w in g ex a m p le:
. . . A ny e m p lo y e e m a y r e tir e e a rly on a red u ced
p e n sion p r o v id e d he h a s:
(i) A ttained h is 55th b irth d ay ;
(ii) C om p leted 15 o r m o r e y e a r s o f s e r v ic e .

life tim e

Its am ount is ca lcu la te d as fo llo w s :
(i) The e m p lo y e e ^ n o rm a l p en sion b a s e d upon his com p leted
s e r v ic e is d eterm in ed ; and
(ii) His e a r ly p e n sion is then obtained by redu cin g the am ount
in (i) by Vio p e r c e n t fo r each fu ll m onth w hich rem a in s fr o m
the date o f e a r ly re tir e m e n t until his 65th birthday . . .
Slightly m o r e than a th ird o f the m u lti e m p lo y e r p la n s, co v e rin g a lm o st
a fou rth o f the w o r k e r s , had an e a rly re tire m e n t p r o v is io n a p p lica b le to a ll
c o v e r e d w o r k e r s , r e g a r d le s s o f se x , as con tra ste d with 90 p e r c e n t o f the sin g le
e m p lo y e r plans co v e rin g 95 p e r c e n t o f the w o r k e r s . T h ese p r o v is io n s w e r e m o s t
p re v a le n t in fo o d , p rin tin g, m eta lw ork in g , co n stru ctio n , m o to r tra n sp orta tion ,
tra d e , and s e r v ic e in d u strie s (table 23).
An addition al 38 p la n s, c o v e rin g 677, 000 w o r k e r s , p e rm itte d e a rly r e ­
tire m e n t fo r w om en on ly, u su a lly at age 62.
One o f the plans stated, fo r e x ­
a m p le, that:
If you a re a fe m a le , you m ay . . . re q u e st to r e tir e and r e ­
c e iv e a re d u ce d p e n sio n b e fo r e y ou r 65th birth d a y . If you r
re q u e st is ap p roved , y ou r p en sion w ill b eg in when you r e tir e
the 1 st day o f any m onth on o r a fter you attain age 6 2 .
Seventeen o f th ese p la n s, a ccou n ting fo r 6 1 4 ,0 0 0 w o r k e r s , w e r e in the ap p arel
in d u str ie s, w h e re a la rg e m a jo r ity o f e m p lo y e e s a re w om en .




Industry group
All plans with early retirement for
women only --------------------Pood and kindred products -------Apparel and other finished textile
products ----------------------Wholesale and retail trade ------Services ------------------------Other ----------------------------

Plans

Workers(thousands )

67 6.9
1 0 .7

17
9
-

38
5

-

61 3.6
3 6 .8
5 .0
1 0 .8

25

^ Worker coverage includes both active and retired work­
ers in 19 5 9 *
2 Includes 1 plan with 1,400 workers in printing, 1 plan
with 1 ,9 0 0 workers in metalworking, 1 plan with 2,300 workers in
miscellaneous manufacturing, 1 plan with 1 ,6 0 0 workers in con­
struction, and 1 plan with 3 ,6 0 0 workers in motion pictures and
recreation.
NOTE: Because of rounding, sums of individual items may
not equal totals.

32

The m ediu m o f funding (in su red o r s e lf-in s u r e d ) app ears to have little o r
no e ffe c t on w hether e a rly r e tire m e n t w as p ro v id e d , p erh ap s b e ca u s e its in clu sion
is v irtu a lly c o s t le s s to the plan if the b en efit red u ction is b a s e d on a ctu a ria l
fa c t o r s .
A lthough o v e r a th ird o f both s e lf-in s u r e d and in su red plans p ro v id e d
fo r e a rly r e tire m e n t, o n ly . 10 p e r c e n t of the w o rk e rs c o v e r e d by in su red plans
w e re in clu d ed as co m p a re d with n ea rly 30 p e r c e n t o f th ose c o v e r e d b y s e lfin su red p la n s.

_
Total_

Medium of funding

Plans

Early retirement

Workers^
(thousands) Plans

Workers 1
(thousands)

All plans -------------------------

736

3,229.8

262

754.3

Insured --------------------------- --Self-insured ---------------------Other -----------------------------

116

590
30

329.6
2,539.6
360,7

211
7

33.9
713.1
7.3

^

Worker coverage includes both active and retired workers in 1959*

NOTE:

Because of rounding, s m s of individual items may not equal totals.

The e a r ly r e tire m e n t p r o v is io n s o f 39 plans with about 135, 000 w o r k e rs
contained a le v e l r e tire m e n t, o f a s o c ia l s e c u r ity , adjustm ent option w hich p r o ­
v id e s a le v e l in co m e (including both p riv a te and p r im a r y s o c ia l s e c u r ity b e n e fits)
throughout the en tire r e tire m e n t p e r io d , even though fu ll s o c ia l s e cu rity b en efits
do not co m m e n c e until age 65 (table 24). 21 P e n s io n e rs se le ctin g this option r e ­
c e iv e a m onthly b e n e fit la r g e r than the reg u la r e a rly re tire m e n t b e n e fit until
fu ll p r im a r y s o c ia l se c u r ity b e n e fits a re payable at age 65.
A fterw a rd s they
get a s m a lle r plan b e n e fit than n o rm a lly paid.
F o r ex a m p le, one plan stated:
An e m p lo y e e entitled to a pen sion a fter age 55 and b e fo r e age 65
m a y e le c t a s o c ia l s e c u r ity le v e l in com e option in lieu o f the
p en sion o th e rw ise payable to him .
If he e le c ts this option he
w ill r e c e iv e a h igh er m onthly am ount fr o m the fund fo r each
m onth b e fo r e the m onth in w hich he attains age 65 and a lo w e r
m onthly am ount fr o m the fund fo r life th e re a fte r. The g en e ra l
p u rp o se o f this option is to p ro v id e an e a rly re tire m e n t p e n s io n e r
with a m o r e o r le s s le v e l in co m e fo r life , taking a ccou n t o f
his lik e ly r e c e ip t o f the p r im a ry s o c ia l s e c u r ity b en efit a fte r he
attains age 65.
The h igh er am ount payable b e fo r e attainm ent of
age 65 and the lo w e r am ount payable on and a fte r attainm ent o f
age 65 sh all be d eterm in ed on the b a s is o f a ctu a ria l eq u iv a len ce.
A fou rth o f the in su red plans with e a rly re tire m e n t p ro v id e d this option
as again st 1 out o f 8 s e lf-in s u r e d plans with e a rly re tire m e n t (table 25). Such
p r o v is io n s w e r e m o s t com m o n in fo o d , co n stru ctio n , tra d e, and s e r v ic e in d u strie s.
A s d is c u s s e d p r e v io u s ly , fiv e s e lf-in s u r e d plans in the trucking indu stry with a
n o rm a l re tire m e n t age at 60 have a s o c ia l s e cu rity adjustm ent b u ilt into the b en efit
fo rm u la (page 23).

21
Under cu rre n t p r o v is io n s o f the S o cia l S ecu rity A ct, fu ll p r im a r y in s u r ­
ance b en efits a re payable to q u a lified w o rk e rs re tirin g at age 65 o r o v e r . Since
A ugust 1, 1961, m en , and sin ce 1956, w om en m ay e le c t to r e c e iv e a perm an en tly
red u ced b e n e fit to b eg in betw een ages 62 and 65.




33

C on sid erin g plans with low n orm a l re tire m e n t ages o r an e a rly r e t ir e ­
m en t p r o v is io n , m o r e than 40 p e r c e n t o f the m u ltie m p lo y e r p la n s, with 60 p e r ­
cent o f the w o r k e r s , p e rm itte d re tire m e n t b e fo r e age 65 (e. g. , at age 62— the
e a r ly re tir e m e n t age under s o c ia l s e cu rity ), as shown b e lo w :
___ Workers 1

___Plans

Provision
All plans --------------------------No provision for retirement before
age 65 ---------------------------With provision for retirement before
age 65 ---------------------------Low normal retirement age
(full benefit) ----------------Early retirement provision for
all workers (reduced benefit) -Early retirement provision for
women only (reduced benefit) --^

Number
(thousands) Percent

Number

Percent

736

100.0

3 ,2 2 9 .8

100.0

412

5 6 .0

1,264.6

39.2

324

44.0

1,965.2

6 0 .8

24

3.3

534.0

16.5

262

35.6

75*K3

23.4

38

5.2

676.9

21.0

Worker coverage includes both active and retired workers in 1959*

NOTE:

Because of rounding, s m s of individual items may not equal totals.

D isa b ility R e tire m e n t P r o v is io n s . D isa b ility re tire m e n t b e n e fits, when
p ro v id e d , a re p a y a b le 22 to tota lly and p erm an en tly d isa b le d w o r k e r s , p ro v id e d
they m e e t c e rta in age a n d /o r s e r v ic e re q u ire m e n ts. In con tra st to e a rly r e t ir e ­
m ent, b en efits a re often the sa m e as o r h igh er than n o rm a l re tire m e n t b e n efits.
An illu str a tiv e p r o v is io n fo llo w s :
An e m p lo y e e sh a ll b e entitled to r e tir e on a d isa b ility p en sion if
he m e e ts the fo llo w in g two re q u ire m e n ts:
(a)

He b e c o m e s tota lly and p erm an en tly d isa b led a fter he has
attained age 55 but b e fo r e he has attained the age of
65 y e a r s .

(b)

He has p en sion c r e d its fo r at le a s t 15 y e a r s . . . T h ere
w ill b e d eterm in ed the am ount o f e a rly re tire m e n t p en ­
sio n to w hich the applicant w ould be entitled b a sed on the
y e a r s o f p en sion c r e d it w hich the e m p loy ee has earn ed up
to the tim e o f h is d isa b ility .
The d isa b ility p en sion sh all
b e $ 1 0 g r e a te r than the said e a rly re tire m e n t b en efits e x ­
cept that in no event sh all the d isa b ility p en sion e x ce e d the
am ount that w ou ld b e payable if the e m p loy ee had attained
age 65 at the date he b e ca m e d isa b led .

D isa b ility b en efits w e r e p r o v id e d by m o r e than h a lf o f the m u ltie m p lo y e r
plans w ith o v e r 45 p e r c e n t o f the w o r k e r s , as co m p a re d with a lm o st 80 p e r c e n t of
the sin g le e m p lo y e r plans w ith a lm o st 90 p e rce n t o f the w o r k e r s . 23
The p r o ­
v is io n s w e r e m o s t com m on in fo o d , a p p a rel, p rin tin g, m etalw ork in g am ong the

22 F req u en tly a 6 -m on th w aiting p e r io d , during w hich the s e v e r ity o f the
d isa b ility m a y b e d eterm in ed , m u st elap se b e fo r e b en efits a re payable.
23 P lan s w hich paid d isa b ility ben efits only at age 65 w e re not counted as
p rov id in g d isa b ility b en efits in both stu d ies. In th ese p la n s, s e r v ic e w as cre d ite d
o r fr o z e n a fte r total and perm a n en t d isa b ility until age 65, and then the n orm a l
b e n e fit w as pa ya b le.
They w e r e found in 17 m u ltie m p lo y e r p en sion plans c o v ­
erin g 4 1 ,8 0 0 w o r k e r s , p r im a r ily in the ap p arel and s e r v ic e in d u stries.



34

m an u factu rin g in d u strie s, and in c o n stru ctio n , m o to r and w a ter tra n sp orta tion ,
and tra d e am ong the nonm anufacturing in d u strie s.
(See table 23. ) Disabilityp en sion s w e r e p r o v id e d by 55 p e r c e n t o f the s e lf-in s u r e d plans c o v e rin g a lm o st
h a lf o f the w o r k e r s under s e lf-in s u r e d p la n s, as again st 42 p e r c e n t o f the in ­
su re d plans with about a sixth o f the c o v e ra g e o f such p la n s. 4

Disability retirement

Total

Workersl
(thousands)

Plans

Workers 1
(thousands)

Plans

All plans --------------------- .......

736

3,229.8

386

i,m .5

Insured ----------------------Self-insured ------------------ .......
Other ------------------------- .......

590
30

329.6
2,539.6
360.7

49
327

55.2
1.232.1
*

Medium of funding

^

10

18 6.9

Worker coverage includes both active and retired workers in 1959.

NOTE:

Because of rounding, sums of individual items may not equal totals.

T w e n ty -se v e n plans c o v e rin g 215, 300 w o r k e rs p ro v id e d only fo r a cash
paym en t to w o r k e r s fo r c e d to r e t ir e b e ca u se o f total and perm an en t d is a b ility ,
as in the fo llo w in g ex a m p le:

. . . The am ount o f the d isa b ility b en efit sh all b e an am ount
d e te rm in e d b y m u ltiplyin g $ 2 by the num ber o f w eek s during
w h ich e m p lo y e r con trib u tion s have b een m ade to the tru st fund
on b e h a lf o f the e m p lo y e e . . . but in no ca s e sh all the am ount
o f the d isa b ility b e n e fit e x c e e d $ 2 , 000.
The d isa b ility b e n e fit
sh a ll b e payable 6 m onths a fter co m m en cem en t o f total and p e r ­
m anent d isa b ility , o r 3 m onths a fter r e c e ip t o f the due p r o o f of
su ch d isa b ility b y the tr u s te e s , w h ich ev er is la te r. Upon p a y ­
m en t o f the d isa b ility b e n e fit such em p loy ee sh all b e d eem ed
to have term in a ted his m e m b e rsh ip in the plan and sh all not
b e en titled to p a rticip a te h ereu n d er to any extent o r fo r any
oth er b e n e fit.

T h ese 27 plans w e re not c o n s id e r e d as containing a reg u la r d isa b ility p r o v is io n .
Such p r o v is io n s w e r e m o s t co m m o n in s e lf-in s u r e d plans in con stru ctio n and
m o to r tra n sp o rta tio n (including the la rg e C entral States T eam sters* plan). 2
25
4

24 The dev elop m en t o f the d e p o sit a d m in istration group annuity plan has e n ­
abled plan tr u ste e s to in clu de d isa b ility b en efits in the la r g e r in su red p lan s, sin ce
p o s s ib le a d v e r s e e x p e r ie n ce is tr a n s fe r r e d fr o m the in s u re r to the fund. Under
a d e p o sit a d m in istra tion plan, the in surer* s ob lig a tion s and guarantees a re lim ited
to the b en efits a lre a d y p u rch a se d .
To p ro v id e d isa b ility b en efits under such a
plan, the fund m ay p u rch a se te m p o r a r y annuities until the d isa b led w o rk e r re a ch e s
65 o r is no lo n g e r d isa b le d . A t 65, the fund p u rch a se s the reg u la r annuity fr o m
the in s u r e r .
25 Six plans c o v e rin g 4, 200 w o r k e rs with reg u la r d isa b ility re tire m e n t b e n e ­
fits a lso gave the w o r k e r the option to r e c e iv e such b en efit in a lum p sum .




Plans,,

Industry group
All plans with cash disability
benefits ---------------------Pood and kindred products ------Apparel and other finished textile
products ---------------------Leather and leather products ---Metalworking -------------------Miscellaneous manufacturing ----Contract construction ----------Motor transportation -----------Wholesale and retail trade -----Services ------------------------

Workers 1
.(thousands)

27

215.3

1

.7

u
1
1

1
10

5
3
1

1 .1

.7
3.0
A

1 6 .9
19 0.9

1.3
.3

* Worker coverage includes both active and retired work­
ers in 1959 .
NOTE: Because of rounding, sums of individual items may
not equal totals,

V estin g P r o v is io n s . V estin g is a guarantee to the w o r k e r o f a right o r
equity in a p e n sio n plan , b a s e d on a ll o r p a rt o f the e m p l o y e e s con trib u tion s
m ade in h is b e h a lf (in te r m s o f a c c r u e d p en sion b e n e fits ) should his em ploym en t
o r c o v e r a g e b y the plan b e term in a ted b e fo r e he attains e lig ib ility fo r reg u la r
(n o rm a l o r e a r ly ) re tir e m e n t b e n e fits. This righ t is u su ally payable in the fo r m
o f a re tir e m e n t b e n e fit at the n o rm a l re tire m e n t age d esign ated in the plan,
w h e r e v e r the w o r k e r is then e m p lo y e d , as in the follow in g ex am p le:
. . • an e m p lo y e e who has a c c r u e d 10 y e a r s o f c r e d ite d s e r v ic e
o r m o r e at the tim e he c e a s e s to be em p loy ed by an e m p lo y e r
sh a ll b e en titled to r e c e iv e , at age 65, a m onthly b e n e fit equal
to a n o rm a l r e tir e m e n t b e n e fit com puted on the b a s is o f his
c r e d ite d s e r v ic e at the tim e o f c e s s a tio n o f em ploym en t.
F e w e r than 1 out o f 4 m u lti e m p lo y e r p la n s, c o v e rin g n e a rly 1 out of
5 w o r k e r s , had a v estin g p r o v is io n , as co n tra ste d with 7 out o f 10 sin g le e m ­
p lo y e r plans c o v e rin g 5 out o f 6 w o r k e r s .
Although not a com p lete substitute
fo r v e stin g , the p o rta b ility o f p e n sio n c r e d its in h eren t in m u ltie m p lo y e r p la n s,
as p r e v io u s ly expla in ed , p r o v id e s the sam e s o r t o f p r o te c tio n as a vestin g p r o ­
v is io n in a sin g le e m p lo y e r plan.
V estin g p r o v is io n s w e r e m o s t com m on in fo o d , p rin tin g, m eta lw ork in g ,
co n stru ctio n , m o to r tra n sp o rta tio n , and trade in d u strie s. (See table 23. )
S lightly m o r e than h a lf o f the in su red plans with a lm o s t 3 out o f 4 c o v ­
e re d w o r k e r s , as c o m p a re d with on ly 1 out o f 6 s e lf-in s u r e d plans with 1 out of
7 w o r k e r s , had v e stin g .
The cu sto m o f including the v estin g o f the w o r k e r 's
p e n sio n righ ts in in su re d plans a ccou n ts fo r this d iffe r e n c e , both in m u ltie m p lo y e r
and sin g le e m p lo y e r plan s.
JE fcal
&
Plans

Workers1
(thousands)

Plans

Workers1
(thousands)

All plans --------------------- ......

736

3,229.8

168

595.0

Insured ----------------------Self-insured ------------------ ......
Other -------------------------

329.6
2,539.6
360.7

60

590

2^0.4
337.9

Medium of funding

*

97
11

Worker coverage includes both active and retired workers in 1959.

NOTE:




Because of rounding, sums of individual items may not equal totals.

1 6 .8

36

T h r e e -fo u r th s o f the 168 plans with v estin g p r o v is io n s p ro v id e d d e fe r r e d
fu ll v estin g under w hich the w o r k e r retain s a right to a ll a c c r u e d b en efits if his
s e r v ic e te rm in a te s a fte r he attains a s p e c ifie d age, o r co m p le te s a design ated
p e r io d o f s e r v ic e , o r both. O n e -fifth o f the plans had d e fe r r e d grad ed v estin g ,
u nder w h ich the w o r k e r a c q u ir e s a righ t to a ce rta in p e rce n ta g e o f a c c r u e d b e n e ­
fits when he m e e ts s p e c ifie d re q u ire m e n ts. T his p e rce n ta g e in c r e a s e s as add i­
tion al req u irem e n ts a re fu lfille d , until the w o rk e r is fu lly v e ste d . Only six plans
p r o v id e d im m ed ia te fu ll v estin g under w hich, in co n tra st to the m eth ods o f d e ­
fe r r in g an equity in e m p lo y e r con trib u tion s until ce rta in age o r s e r v ic e r e q u ir e ­
m en ts have b een fu lfille d , the w o r k e r s e c u r e s a v e ste d right to his en tire a ccru e d
b e n e fits im m e d ia te ly upon bein g c o v e re d by the plan.
O ther types o f v estin g ,
such as d e fe r r e d g ra d ed p a r tia l, im m ed ia te g ra d ed p a rtia l v e stin g , a re m o d ifi­
cation s o f the m o r e co m m o n v estin g c la s s e s a p p lica b le to p a rt o f a w ork er*s
a c c r u e d b e n e fits . B e ca u se the 35 plans with d e fe r r e d g ra d ed v estin g in clu d ed
1 la r g e plan (W estern C on fe re n ce o f T e a m s te r s ), they c o v e r e d on ly 18 p e rce n t
fe w e r w o r k e r s than the 127 plans with d e fe r r e d fu ll v e stin g , as shown b elow :

Plans

Workers 1

Number

Percent

Number
(thousands)

Percent

All plans with vesting --------------

168

100.0

595.0

100.0

Immediate full vesting 2 -----------Deferred graded vesting5 -----------Deferred full vesting
-------------

6
35
127

3.6
20.8
75.6

2.6
2 6 7 .4
3 2 5 .0

.4
4*. 9
54.6

Type of vesting provision

^
2
5

Worker coverage includes both active and retired workers in 1959*
Includes 1 plan with 700 workers providing immediate graded vesting.
includes 6 plans with 28,300 workers providing deferred graded partial vesting.
Includes 3 plans with 1,100 workers providing deferred partial vesting.

NOTE:

Because of rounding, sums of individual items may not equal totals.

Illu stra tiv e p r o v is io n s o f the m o r e com m on types o f v estin g a r e :
D e fe r r e d fu ll vestin g—
Any e m p lo y e e who has a ccu m u lated a total o f 15 y e a r s o f c r e d ite d
s e r v ic e in this plan sh all have his rights to p a rticip a tio n in this
plan fu lly v e ste d . . .

D e fe r r e d g ra d ed vestin g —

Any e m p lo y e e w h ose em ploym en t is term in a ted p r io r to h is e a rly
re tir e m e n t date sh a ll b e entitled to a d e fe r r e d re tire m e n t b en efit
payable at age 65 . . . as fo llo w s :
C red ited s e r v ic e u n its, fo r p u rp o se s o f ca lcu la tin g this d e fe r r e d
a llow a n ce sh a ll b e on ly th ose accu m u la ted s in ce M ay 1, 1957,
when con trib u tion s b y the e m p lo y e r began. The re tire m e n t b e n e ­
fit p a ya b le at age 65 sh all b e b a s e d on the follow in g p e rce n ta g e s
o f a ccu m u la ted cr e d ite d s e r v ic e units sin ce M ay 1, 1957, m u lti­
p lie d b y the m onthly am ount p ro v id e d in p arag rap h (c) 1 *



m

Percentage
/of benefit/

Credited service units
Less than 5 ---------------but less than 1 0 -------10 but less than 1 5 -------15 but less than 2 0 -------20 but less than 2 5 -------25 but leas than 3 0 -------30 or m o r e ----------------5

10

15
30
50
70
100

Im m edia te fu ll vestin g —
The w o r k e r sh all b e im m e d ia te ly v e ste d in e m p lo y e r con trib u tion s.
Instead o f p rov id in g v e ste d b e n e fits , 29 p la n s, co v e rin g 4 5 ,6 0 0 w o r k e r s ,
p r o v id e d only fo r the paym ent o f im m ed ia te ca sh b en efits to w o r k e r s term in ated
a fte r having m e t s p e c ifie d re q u ire m e n ts.
T h ese plans w e r e not co n s id e re d as
having vestin g p r o v is io n s b e ca u se they did not p ro v id e any re tire m e n t b en efits
to term in a ted w o r k e r s .
T h ese p r o v is io n s r e s e m b le , both in te rm s o f r e q u ir e ­
m en ts and b e n e fits paid , d is m is s a l o r s e v e ra n ce a llo w a n ce s . 26 The 29 cash
term in a tion plans had th eir g r e a te s t c o v e r a g e , as shown by the follow in g tabu­
la tion , in fo o d m an u factu rin g, p rin tin g, m eta lw ork in g , co n stru ctio n , and tra d e.
M ost o f them w e r e s e lf-in s u r e d .

Cash termination
benefit only
Industry group
All plans with cash termination
benefits -------------------------Pood and kindred products -----------Apparel and other finished textile
products------------------------ Printing, publishing,and allied
industries -----------------------Leather and leather products --------Metalworking -----------------------Miscellaneous manufacturing ---------Contract construction ---------------Motor transportation ----------------Wholesale and retail trade ----------Services -----------------------------

Plans

Workers*
(thousands)

Cash termination
benefit for worker*s
not fulfilling
vesting requirements

Plans

Workers1
(thousands)

29

45.6

*12

22 8.6

5

8.5

2

7.2

3

4.3

-

-

.5
2
1

3
1

9
5
1

3.4
.7
9.2
. .4
19.1
3A
.3

_

•

_

3
1
1
-

4.6
196.1
16 .5
-

Worker coverage includes both active and retired workers in 1959.
6 plans with 220,800 workers allowed vested workers to elect a cash benefit in­
stead of a vested benefit after completing further age and/or service requirements.
2

NOTE:

26

Because of rounding, sums of individual items may not equal totals.

See C o lle c tiv e B argain in g C la u ses: D is m is s a l Pay,BL>S B u ll. 1216 (1957).




38

A nother 12 plans in clu d ed in the 168 plans with v estin g p r o v is io n s p r o ­
v id ed cash b en efits to w o r k e rs not m eetin g vestin g re q u ire m e n ts.
T w en ty -fou r
p la n s, co v e rin g 2 5 3 ,7 0 0 w o r k e r s , with reg u la r vestin g p r o v is io n s (including 6 o f
the above 12 p la n s) gave the w o r k e r the option o f re ce iv in g his re tire m e n t b e n e ­
fits in a lum p sum .
S om e ex a m p les o f cash term in a tion p r o v is io n s a re :
An e m p lo y e e en titled to v e ste d b en efits shall m ake ap p lica tion
th e r e fo r on fo r m su pplied b y the b o a rd , and such v e s te d b e n e ­
fits sh all b e paid in a lum p sum not la te r than 60 days a fter
the date paid a pp lica tion is r e c e iv e d by the b o a rd .

w ork ers,

A s this plan did not p r o v id e reg u la r re tire m e n t b en efits fo r the v e ste d
it w as ex clu d ed fr o m the tables showing plans with v estin g.
. . . An e m p lo y e e who has a ccru e d le s s than 10 y e a r s o f
c r e d ite d s e r v ic e at the tim e he c e a s e s to b e em p loy ed by an
e m p lo y e r , sh a ll b e entitled to r e c e iv e , upon app lica tion to the
tr u s te e s , a lu m p -su m paym ent in a c c o r d a n c e with the follow in g
sch e d u le , p ro v id e d he a p p lies fo r such paym ent w ithin 1 y e a r
a fte r b e co m in g e lig ib le t h e r e fo r .

Years of future service
credit at date of cessation of employment

Withdrawal
payment

Less than 2 ---------------2 but less than 3 ------------3 but less than 4 ------------4 but less than 5 ---------5 but less than 6 ------------6 but less than 7 ------------7 but less than 8 ------------8 but less than 9 ------------9 but less than 1 0 ------------

10

or

$50

100
150
200
250

300
350
400

A s this plan a lso p ro v id e d fo r a v e ste d p en sion b en efit fo r w o rk e rs with
m o r e y e a r s o f s e r v ic e , it w as in cluded with plans p rov id in g v estin g.
In the event an e m p lo y e e who has 5 o r m o r e y e a r s o f future s e r v ­
ic e c r e d it lo s e s h is cre d ite d s e r v ic e h ereu n d er, he sh all . . .
r e c e iv e a lum p sum term in ation b en efit equal to 50 p e r c e n t o f
the con trib u tion s m ade to the fund on h is b eh a lf.
No v estin g w as in clu d ed in this plan.
A t the tim e an e m p lo y e e ^ s e r v ic e
b e d e te rm in e d as fo llo w s :
(a)




is b ro k e n , his righ ts shall

If, at the tim e o f the b rea k in s e r v ic e , he has a total o f
15 y e a r s o f continuous s e r v ic e and has had e m p lo y e r c o n ­
tribu tion s m ade on h is accou n t fo r a total o f at le a s t
3, 000 c o v e r e d h o u rs, he shall be e lig ib le to r e c e iv e a cash
term in a tion b en efit at any tim e th e re a fte r when he is not
in c o v e r e d em ploym en t. E x cep t as p ro v id e d in a r tic le VII,
paym ent to an in dividu al o f his cash term in a tion b e n e fit shall
b e in fu ll settlem en t o f all his rights and in te re sts under
the plan.

39

(b)

(c)

ing,

If he has m et the con dition s se t forth in su b se ctio n (a) fo r
a ca sh term in a tion b e n e fit, has attained his 52d birth d ay,
and he d oes not e le c t to r e c e iv e his cash term in a tion b e n e ­
fit, he sh all b e d esign ated as a fo r m e r e m p loy ee and sh all
b e entitled to a v e ste d re tire m e n t b e n e fit as h e re in a fte r
d e s c r ib e d in this a r t ic le . A fo r m e r e m p loy ee m ay at any
tim e e le c t to r e c e iv e h is cash term in ation b en efit and upon
paym ent th e r e o f to h im he sh all c e a s e to b e a fo r m e r e m ­
p lo y e e and sh all not b e entitled to any b en efits under the
plan , e x ce p t as p ro v id e d in a r tic le VII.
If he has not m e t the con d ition s set forth in su b s e ctio n (a) fo r
a ca sh term in a tion b e n e fit, his p a st s e r v ic e cr e d it and future
s e r v ic e c r e d it sh a ll b e ca n ce le d and he sh all thereupon c e a s e
to b e an e m p lo y e e , and sh all not b e entitled to any b en efits
under the plan, ex ce p t as p ro v id e d in a r tic le VII.

T his plan p ro v id e d ca sh b en efits only fo r w o r k e rs not qu a lified fo r v e s t ­
and an option o f ca sh fo r the v e ste d w o r k e r.

Death B en efits
M ost w o r k e r s c o v e r e d b y m u ltie m p lo y e r p en sion plans a re a lso c o v e re d
by a sep a ra te group life in su ra n ce p r o g r a m . U nder an in cre a sin g num ber o f th ese
p r o g r a m s , r e tir e d w o r k e rs reta in part o f th eir life in su ran ce c o v e ra g e . 27 Many
pen sion plans, h ow ev er, a ls o p rov id e death ben efits to p ro te ct the w o r k e r 1s equity
in the plan as w e ll as that o f his dependents.
Death b e n e fit p r o v is io n s an alyzed in this study ca lle d fo r a paym ent,
u su a lly a lum p sum , to the w o r k e r ’ s b e n e fic ia r y , in the event o f his death eith er
b e fo r e o r a fte r re tire m e n t.
P r o v is io n s fo r the retu rn o f w o r k e r con trib u tion s
(with o r w ithout in te re st) and th ose guaranteeing the num ber o r duration o f p a y ­
m ents w e r e exclu d ed. 28
Death b e n e fits a re illu stra te d by the follow in g c la u s e s :
Death b e n e fits b e fo r e re tire m e n t—
C onditions fo r Q u a lifica tion fo r Death B e n e fit. Upon the death
o f an e m p lo y e e who has not r e tir e d and who d ies a fte r
(a)

co m p le tio n o f 10 y e a r s o f continuous s e r v ic e in the in du s­
tr y ; and

(b)

co m p le tio n o f 5 y e a r s o f continuous s e r v ic e u n d er a c o l l e c ­
tive ba rga in in g a g re e m en t; and

(c)

paym en t o f 40 w eek s con trib u tion s to the tru st fund by the
e m p lo y e r on h is b eh a lf

th ere sh all b e payable to his design ated b e n e fic ia r y , o r if no
such b e n e fic ia r y is d esign a ted , to his esta te, a death b en efit.

27 See H ealth and In su ra nce P lans U nder C o lle ctiv e B argain in g:
L ife Insu ra n ce , and A ccid e n ta l Death and D ism em b erm en t B e n e fits, E a rly Sum m er I960,
BLS B u ll. 1296 (1961).
“
28 G uarantees o f the num ber o r duration o f paym ents w e r e re g a rd ed as
death b e n e fits in a fo rth co m in g B LS bulletin, op. cit.



A m ount o f Death B e n e fit. The am ount o f the death b e n e fit sh all
b e an am ount d eterm in ed b y m u ltiplying $ 2 by the num ber o f
w eek s during w hich e m p lo y e r con trib u tion s have been m ade to
the tru st fund on b e h a lf o f the em p loy ee sin ce the e ffe c tiv e date
o r the la st b re a k in s e r v ic e , w h ich ev er is la te r, but in no ca se
sh all the death b e n e fit e x c e e d $ 2 , 000 .
Death b en e fits a fte r re tire m e n t—
Upon q u a lifica tio n fo r a p e n sion and during the p e r io d he co n ­
tinues to b e en titled to paym ent o f such p en sion , a p en sion er
sh a ll b e e lig ib le fo r a death b en efit in the am ount o f $ 1 , 500.
Death b e n e fits b e fo r e o r a fte r retire m e n t—
. . . Death b e n e fits sh all b e paid to the b e n e fic ia r y o r b e n e ­
f i c ia r ie s o f a d e c e a s e d em p lo y ee on the follow in g b a s is :
(a)

If the e m p lo y e e d ies b e fo r e re tire m e n t his b e n e fic ia r y o r
b e n e fic ia r ie s sh all r e c e iv e an am ount equal to $50 fo r each
y e a r o f fu tu re s e r v ic e c r e d it he has a c c r u e d , com pu ted in
a c c o r d a n c e with a r t ic le II, se ctio n 4, h e r e o f.

(b)

If an e m p lo y e e d ies a fter re tire m e n t, h is b e n e fic ia r y o r
b e n e fic ia r ie s sh all r e c e iv e an am ount equal to $50 fo r each
y e a r o f future s e r v ic e c r e d it he has a ccru e d , com pu ted in
a c c o r d a n c e with a r t ic le II, se ctio n 4, h e r e o f, m inus the
total re tire m e n t b e n e fits w hich have b een paid to such e m ­
p lo y e e up to the tim e o f his death.

Death b en efits b e fo r e and a fte r re tire m e n t—
S u b ject to the p r o v is io n s o f this se ctio n , and u n less p en sion p a y ­
m en ts equalling the lu m p -su m paym ent have a lrea d y b een paid ,
a lu m p -su m paym ent sh all b e m ade to the b e n e fic ia r y o f an e m ­
p lo y e e o r p e n s io n e r upon h is death a fter F eb ru a ry 1, 1958. The
am ount o f the lu m p -su m paym ent sh all b e in a c c o r d a n c e with the
fo llo w in g sch ed u le and b a s e d on pen sion cre d its earn ed by actual
w o rk in c o v e r e d em ploym en t a fter O ctob er 1, 1950, as p ro v id e d
in s e ctio n IV, a r t ic le 3. Any p en sion b en efits paid to p en sion er
sh a ll b e dedu cted fr o m the lu m p -su m paym ent w hich m ay b e due.

Pension credits earned by actual work
in covered employment, October 1, 1950
least 5but less than 6y e a r s ------least
6but less than 7y e a r s -------least 7but less than 8y e a r s ------least
8but less than 9y e a r s ------least 9 but less than 10 y e a r s -----10 years or m o r e ----------------------

At
At
At
At
At

Lump-sum death
benefit amount
$500
600
700
800
900
1,0 00

If an e m p lo y e e in cu rs a b rea k in s e r v ic e as defin ed in s e ctio n 6 of
a r t ic le III, he sh all lo s e a ll c r e d it fo r his p r io r c r e d ite d s e r v ic e .



41

F iv e plans p r o v id e d s p e c ia l w id o w 's b e n e fits.
is ty p ica l:

The follow in g illu stra tio n

. . . In the event a w idow su rv iv e s an em p lo y e e who has been
r e c e iv in g a p e n sio n and who d ies a fter attaining the age o f
65 y e a r s , and in the event such w idow sh a ll have b een m a r r ie d
to su ch e m p lo y e e fo r a p e r io d o f not le s s than 10 y e a r s and shall
have attained the age o f 50 y e a r s p r io r to the death o f such e m ­
p lo y e e , then su ch w idow sh all b e e lig ib le fo r a p en sion o f $25
m on th ly, to b e paid to h e r until h e r death o r r e m a r r ia g e , w h ich ­
e v e r sh a ll f ir s t o c c u r .
P r o v is io n s fo r death b en e fits b e fo r e re tire m e n t w e r e found in about the
sa m e p r o p o r tio n o f m u ltie m p lo y e r plans as p r o v is io n s fo r such b en efits a fter r e ­
tire m e n t— 17 and 15 p e r c e n t, r e s p e c t iv e ly , with each c o v e rin g o v e r a fourth o f
the w o r k e r s (table 26). In co n tra st, le s s than 7 p e r c e n t o f the sin g le em p lo y e r
p la n s, c o v e rin g le s s than 10 p e r c e n t o f the w o r k e r s , had such b e n e fits.
P re­
re tire m e n t death b e n e fits w e r e m o r e co m m o n ly p ro v id e d w o r k e rs in nonm anu­
fa ctu rin g in d u strie s— e s p e c ia lly m in in g, co n stru ctio n , and m o to r tra n sp orta tion —
than in m an u factu rin g in d u strie s. P o s tr e tir e m e n t death b e n e fits , h o w e v e r, w ere
m o r e p re v a le n t in m anu factu rin g in d u strie s, m a in ly b e ca u s e such b en efits w e re
in clu d ed in the a p p a re l in du stry plans and la r g e ly ex clu d ed fr o m the m o to r
tra n sp orta tion pla n s.
S ix ty -fo u r plan s with 351,1.00 w o r k e r s , p ro v id e d death b en efits both b e fo r e
and a fte r r e tire m e n t.
A s the follow in g tabulation sh ow s, m o r e w o r k e rs w e re
c o v e r e d b y plans p ro v id in g on ly p r e r e tir e m e n t (including the la rg e W estern Con­
fe r e n c e o f T e a m s te rs plan ), o r on ly p o s tr e tir e m e n t b en efits (including la rg e plans
in the a p p a rel in du stry) than b y th ose p rov id in g both.

Death benefits

Plans

Workers ^
(thousands)

736
64
59
*■
*9
533
31

3,229.8
351.1
<*79.9
**97.9
1,869.9
31.1

Before
retirement

X
X

After
retirement

X
X

Not provided
Information not available

^ Worker coverage includes both active and retired
workers in 1959*
NOTE: Because of rounding, sums of individual items
may not equal totals.

A fifth o f the in su re d plans as co m p a re d with a seventh o f the s e lfin su red plans had a death b e n e fit b e fo r e re tire m e n t.
H ow ev er, a tenth o f the
in su red plan s had p o s tr e tir e m e n t death b en efits as against a sixth o f the s e lfin su red plans (table 27).







Chapter IV. Administrative Procedures

Join t u n io n -e m p lo y e r a d m in istra tion o f e m p loy ee p en sion funds is one o f
the im p orta n t a sp e cts o f m u ltie m p lo y e r p lan s. T his d ev elop m en t, as p re v io u s ly
m en tion ed, can be d ir e c t ly attributed to the L a b o r M anagem ent R elation s (T a ftH artley) A c t, 1947, su b se ctio n 302 (c) (5) (B ), w hich r e q u ir e s equal union and
e m p lo y e r re p re se n ta tio n in the m anagem ent o f a p en sion fund esta b lish ed by a
union and p a rtly o r w h olly fin a n ced by the e m p lo y e r. S in ce, on ly m u ltie m p lo y e r
funds esta b lish e d b e fo r e January 1, 1946, a re exem pt fr o m this su b se ctio n , th ere
w as p r o v is io n f o r equal re p re se n ta tion in the a d m in istra tion o f a ll but 18 o f the
plans studied.
G e n e ra lly , the jo in t b o a rd appointed by the union and e m p lo y e rs has a l­
m o s t u n lim ited p o w e rs and righ ts, including the d eterm in a tion o f plan b en efits,
s e le c tio n o f m ediu m o f funding, d esig n ation o f funding m eth od s, d a y -to -d a y a d ­
m in is tra tio n , etc. The m a jo r ex cep tion , as p r e v io u s ly d is c u s s e d , is the r e v is io n
o f the b a s is and am ount o f con trib u tion , w hich is alw ays r e s e r v e d fo r the p a rtie s
to d e te rm in e by c o lle c t iv e ba rga in in g. Such m utual m anagem ent is , by con tra st,
u n com m on in sin g le e m p lo y e r plan s. 29
F o r m a l ru les o f p r o c e d u r e a re req u ire d in m u ltie m p lo y e r plan a d m in is­
tra tion , p a r tic u la r ly sin ce the funds a re the r e s p o n s ib ility o f g rou p s w h ose in te r ­
e s ts , in this o r oth er r e s p e c t s , often cla sh . Thus, fo r ex am p le, p r o c e d u r e fo r
the settlem en t o f disp u tes by n eu trals is n e c e s s a r y b e ca u se the m e m b e r s o f the
b o a rd h ave, at le a st in th eory , no r e c o u r s e to the e c o n o m ic san ction s found in
c o lle c t iv e bargain in g. S in ce the b a s ic docu m en ts (c o lle c t iv e b argain in g ag reem en t
and tru st a greem en t) setting the pattern fo r the g e n e ra l op e ra tio n o f a m u lti­
e m p lo y e r plan stem fr o m union and e m p lo y e r a g reem en t, they in v a ria b ly seek to
p r o te c t the righ ts o f each grou p.
The c o m p o s itio n and p r o c e d u r e s o f the b o a rd s , as p ro v id e d fo r in c o l l e c ­
tive bargain in g a g re e m e n ts o r in tru sts a g re e m e n ts, a re d e s c r ib e d in this ch apter.
F ir s t , the co m p o s itio n o f the b o a rd s— the num ber o f m e m b e r s , th e ir d iv is io n
betw een the g rou p s re p re se n te d , and the m ethod o f s e le c tio n and re m o v a l— is
exam ined. T his is fo llo w e d by an an a ly sis o f the s e le c tio n o f o f f ic e r s and th eir
du ties, and the board*s qu oru m , voting, and rela ted ru le s .
W hile a ll data, as
explained on page 3, r e la te to the 736 form u la ted p la n s, in fo rm a tio n was not
a v a ila b le fo r a ll plans fo r a ll ite m s s e le c te d fo r a n a ly sis. T his situation ex ists
not on ly b e ca u se o f in co m p le te su b m ission s and inadequate in form a tion due to
te ch n ica l d istin ctio n s, but a ls o b e ca u se so m e plans sim p ly grant the b oa rd p ow er
to e sta b lish its own ru le s, as in the follow in g exam ple:
The tru ste e s sh all e sta b lish p r o c e d u r a l ru le s . . . govern in g
am ong oth er things, the ca llin g and conduct o f m e e tin g s , the
givin g o f p r o x ie s , the con stitu tion o f a quorum , and the e x is t ­
en ce o f a d ea d lock .
The te r m s "b o a r d o f adm in istration , " "b o a rd , " "b o a r d m e m b e r s , " and
"jo in t b o a rd , " a re u sed in terch a n g ea b ly throughout this study to r e fe r to the group
o f p e r s o n s (often a lso c a lle d "th e b oa rd o f tru s te e s , " "p e n s io n co m m itte e , " and
"a d m in istra tiv e body, " in plan docu m en ts) with o v e r a ll r e s p o n s ib ility fo r a d m in is­
tra tion o f the plan.

29
N otable ex cep tion s a re found in p en sion plans in the a u tom obile in d u s­
try , w h ere jo in t u n ion -m an agem en t co m m itte e s a d m in ister a ll ex cep t the fin a n ­
c ia l a s p e c ts .




44

C o m p o sitio n o f the B o a rd
An equal num ber o f union and e m p lo y e r re p re se n ta tiv e s s e r v e d on the
b o a rd s o f a ll but 22 o f the jo in tly a d m in istered plans (as lis te d b e lo w ). H ow ev er,
even in th ese 22 plans the voting strength o f both groups w as equal sin ce the q u o­
rum and voting ru le s (pages 57—
60) p rev en ted c o n tr o l by the la r g e r group. F o r
ex a m p le, one plan with m o r e e m p lo y e r than union m e m b e rs on the b o a rd stated:
The op e ra tio n and a d m in istra tion o f the p en sion and w e lfa re
plan sh all be the jo in t r e s p o n s ib ility o f the s ix tru ste e s appointed
by the e m p lo y e r s and the th ree tru ste e s appointed by the union.
The voting p o w e r o f the th ree union tru ste e s sh all equal the
com b in ed voting p ow er o f the six e m p lo y e r tr u s te e s .
That is ,
ea ch union tru ste e sh all have a voting strength o f two as c o m ­
p a re d to one fo r each e m p lo y e r tru stee.
A n oth er plan w hich had m o r e union than e m p lo y e r re p re se n ta tiv e s in o r d e r to
a llow re p re se n ta tio n b y a ll lo c a l unions a s s o cia te d with the plan stated that:
The tru ste e s under this tru st a g reem en t sh all be 14 in n u m ber,
8 o f w hom sh all be union tr u s te e s , and 6 o f whom sh a ll be e m ­

p lo y e r tr u s te e s .
The voting f o r this plan w as b a sed on the unit ru le (m a jo rity v ote d e te rm in e s
group v o te ).

Representation on board
All plans studied -------------------Employer appointed boards: All
employer representatives -----------Union appointed boards: All union
representatives -------------------Jointly appointed boards -------------Equal representation for union
and employers ------------------More employer than union
representation -----------------More union than employer
representation -----------------Equal representation for union,
employers, and public ----------Equal representation for union and
employers plus a public member —
Information not available --------Other --------------------------------

Plans

Workers1
(thousands)

756

3,229.8

5

6.4

10
718

189.7
3,032.7

645

2 ,2 0 6 .0

11

1 6 .6

11

63.2

9

325.2

53
9
3

409.3
12.4
1.1

^ Worker coverage includes both active and retired work­
ers in 19 59•
NOTE: Because of rounding, sums of individual items may
not equal totals.

The m e m b e r s o f the b o a rd s u su ally se rv e d (and s u c c e s s o r s w e re a p ­
pointed) at the p le a s u r e o f the group o r ig in a lly appointing them , i. e. , union and
e m p lo y e r g ro u p s, as illu str a te d by the follow in g c la u s e s :
Any union tru ste e m a y be re m o v e d fr o m o ffic e at any tim e by
the union, such r e m o v a l to be ev id en ced by an in stru m en t in



45

w ritin g signed by the a c c r e d ite d o ffic e r s o f the union and d e ­
liv e r e d to a ll the tr u s te e s . Any e m p lo y e r tru ste e m ay be r e ­
m o v e d fr o m o ffic e at any tim e by the a s s o c ia tio n o r a ss o cia tio n s
that design ated h im , such re m o v a l to be ev id en ced by an in stru ­
m en t in w ritin g sign ed by the a c c r e d ite d o ffi c e r s o f such a s s o c ia ­
tion o r a s s o c ia tio n s and d e liv e r e d to all o f the tr u s te e s .
* * *
Any tru ste e m a y b e re m o v e d at w ill by w h om ev er sh all have
appointed h im , and m a y r e sig n by instru m en t in w ritin g execu ted
fo r that p u rp o se and d e liv e r e d to the rem ain in g tru s te e s .
sjc

sje sje

S u c c e s s o r e m p lo y e r tru ste e s and s u c c e s s o r altern ate em p lo y e r
tru ste e s sh all be appointed by the v a rio u s e m p lo y e rs who a re
s u b s c r ib e r s to this in stru m en t at the tim e such appointm ents
a re m ade.
S u c c e s s o r union tru ste e s and s u c c e s s o r altern ate
union tru ste e s sh all be design ated by the national o ffic e . . .
P a rticip a tio n o f b oa rd m e m b e rs in appointm ent and re m o v a l, w hich was
found in on ly a few pla n s, is illu stra te d by a plan in w hich union m e m b e rs cou ld
on ly be re m o v e d by the union but:
Any e m p lo y e r tru stee' m a y be r e m o v e d ’ fr o m o ffic e at any tim e
by an in stru m en t in w riting duly signed by a m a jo r ity o f the
e m p lo y e rs o r by a m a jo r ity o f the e m p lo y e r tru ste e s then
in o ffic e .
A n oth er plan in w hich an e m p lo y e r m e m b e r cou ld be re m o v e d by the oth er e m ­
p lo y e r m e m b e r s stated that:
A s u c c e s s o r e m p lo y e r tru stee sh all be im m e d ia te ly appointed
by the two rem ain in g e m p lo y e r tru s te e s .
R e m o v a l and appointm ent o f a s u c c e s s o r n eu tral m e m b e r o f the b oa rd
by the union and e m p lo y e e s, and the b o a rd , r e s p e c t iv e ly , a re illu stra ted b elow :
The e m p lo y e r s sh all have the right at a ll tim e s fo r substantial
ca u se, to r e m o v e and re p la ce any tru stee o r tru ste e s designated
by them including the pu b lic m e m b e r d esig n ated by them and
re p re se n tin g the e m p lo y e rs and to fi ll any v a ca n cy o r v a ca n cies
cau sed by the death, resig n a tion , o r re m o v a l o f any tru stee o r
tru ste e s re p re se n tin g such e m p lo y e rs .
* * *
The union sh all have the right at all tim e s , fo r substantial
ca u se , to r e m o v e o r re p la ce any tru stee o r tru ste e s r e p r e ­
senting the union, including the p u b lic m e m b e r design ated by
them and to f i ll any v a ca n cy o r v a ca n cie s ca u sed by death, r e s ­
ignation, o r re m o v a l o f any tru stee o r tru ste e s rep resen tin g
the union.

The im p a rtia l tru ste e sh all be su b ject to re m o v a l at any tim e
at a m eetin g o f the tru ste e s . . .




* * *

46

If th e re is a v a ca n cy in the o ffic e o f the n eu tral tru ste e , the
tru ste e re p resen tin g the a s s o c ia tio n and the tru ste e rep resen tin g
the con tribu tin g e m p lo y e r s sh all s e le c t a s u c c e s s o r neu tral
tru ste e . . .
A lthough m o st plan docu m en ts did not d eta il the re a so n s fo r w hich a
b o a rd m e m b e r m ight be re m o v e d , som e gave the circ u m s ta n c e s under w hich
re m o v a l a ction cou ld be instituted. One such p r o v is io n read:
T ru ste e m ay be re m o v e d fo r v iola tion o f his fid u cia ry o b lig a ­
tion s under this d e c la r a tio n o f tru st o r oth er good le g a l grounds
by a ction in a co u rt o f a p p rop ria te ju r is d ic tio n in itiated by any
two tru ste e s o r by the pa rty w hich appointed said tru ste e .
A n oth er plan p ro v id e d fo r a b o a rd o f in qu iry with p o w e r
fe a s a n c e ”— a te rm w hich w as le ft undefined.

to re m o v e fo r " m a l ­

A tru ste e can be re m o v e d fo r m a lfe a sa n ce in the ex ecu tion o f
h is tru st. Any e m p lo y e r o r union m ay initiate ch a rg e s o f m a l­
fe a sa n ce again st a tru ste e by filin g such ch a rg e s with the e m ­
p lo y e r s and with the union and with the tru s te e s . Such ch a rg es
sh all be r e fe r r e d by the tru ste e s to a b oa rd o f in qu iry w hich
sh a ll c o n s is t o f an equal nu m ber o f m e m b e rs appointed by the
e m p lo y e r s and the union.
The m e m b e rs so appointed shall
attem pt to a g re e upon an additional m e m b e r to a ct as im p a rtia l
ch a irm a n and, if w ithin a p e r io d o f 5 days an im p a rtia l c h a ir ­
m an is not a g re e d upon, then ap p lica tion by the tru ste e s shall
be m ade to the Judge o f the United States D is tr ic t C ourt fo r the
Southern D is t r ic t o f M is s is s ip p i fo r the appointm ent o f an i m ­
p a r tia l ch a irm a n . A ll r e c o r d s and oth er in form a tion a vailable
to the tr u ste e s sh all be m ade a v ailable to the b oa rd o f in qu iry.
If a m a jo r ity o f said b o a rd o f in qu iry finds that a tru ste e has
been guilty o f m a lfe a sa n ce , he shall be re m o v e d and m ay not
th e re a fte r be e lig ib le to s e r v e as a tru stee.
T o e n cou ra g e the p rom p t appointm ent o f s u c c e s s o r tru ste e s and to p r e ­
vent the p o s s ib le in terru p tion and cu rta ilm en t o f b oa rd action , a few plans p r o ­
vided a ltern a tive m eth ods o f appointm ent to be u sed in d ela y s o r n e g le ct in fillin g
v a c a n c ie s on the b oa rd a c c o r d in g to the n o rm a l p r o c e d u r e s ju s t d is c u s s e d . Som e
plan s, fo r exa m ple, p e rm itte d any two tru ste e s to p etition the co u rts to f ill o ffic e s
that have rem a in ed vacant fo r a s p e c ifie d p e rio d . Two illu stra tiv e cla u se s read
as fo llo w s :
. . . In the event o f the fa ilu re o f any p arty to appoint a s u c ­
c e s s o r tru ste e to f ill a v a ca n cy in the offic'e o f tru ste e , w hich
such p a rty has the p ow er to fill, fo r a p e rio d o f 30 days, any
two tru ste e s m a y p etition a co u rt o f ap p rop ria te ju r is d ic tio n fo r
an o r d e r req u irin g such p a rty to appoint a s u c c e s s o r tru stee
forth w ith , and, in the event o f a fa ilu re o f said p a rty to com p ly
with such o r d e r , m ay p etition a co u rt o f ap p rop ria te ju r is d ic tio n
fo r the appointm ent o f a s u c c e s s o r tru stee to f i ll such v a ca n cy .
* * *
In the event o f the re m o v a l term in ation o f a tru ste e , o r the
resig n a tio n , death, d isq u a lifica tio n , d isa b ility , o r re fu s a l to act
o f any tru ste e , o r a s u c c e s s o r to any o f them , a s u c c e s s o r
tru ste e sh a ll be nam ed and appointed by the p a rty w hich nam ed
h is p r e d e c e s s o r , within 10 d ay s, a fter the v a ca n cy o c c u r s . In
the event eith er p a rty fa ils to appoint a s u c c e s s o r tru ste e within



47

10 days a fter a v a ca n cy o c c u r s as p ro v id e d fo r in this tru st
a g reem en t, then any two tru ste e s m ay p etition the United States
D is t r ic t C ou rt fo r the Southern D is tr ic t o f O hio, w h ere the fund
has its p r in c ip a l o f f ic e , fo r the appointm ent o f such tru stee.
Im m ed ia tely upon h is a cce p ta n ce o f the tru steesh ip in w riting
a s u c c e s s o r tru ste e sh all b e c o m e v ested with a ll the p ro p e rty ,
rig h ts, p o w e r s , and duties o f a tru ste e h ereu n d er with lik e a ffe ct
as if o r ig in a lly nam ed as a tru ste e .

T e r m o f B oa rd M e m b e r s .
The m e m b e r s o f 80 p e r c e n t o f the boa rd s
w e r e appointed to in defin ite te r m s ; i. e. , they retain ed th eir p o s itio n s until they
w e re re m o v e d , re sig n e d , o r died.
(See text ta b u la tio n .)

Plans
Term of board members

Number

Workers1

Percent

Number
(thousands)

Percent

All plans studied ----------------

736

100.0

3,229.8

100.0

1 year --------------------------2 years -------------------------3 years -------------------------4 years -------------------------5 years -------------------------6 years -------------------------Employer members, indefinite; union
members, 3 years --------------Union members, indefinite; employer
members, 1 year ---------------Indefinite ----------------------Other ---------------------------No provision, or information
not available ------------------

15
25
15

2.0

3.4

36.1
103.9
77.8
14.9

.3

20.0
196.8

1.1
3.2
2.4
.5

4

.5

7.7

.2

3

.4
79.9

.1
81.8

1.1

2.5
2,642.4
48.8

8.7

78.9

2A

1

6
6
2

588
8

64

2.0
.8
.8

Worker coverage includes both active and retired workers in

NOTE:

.6
6.1

1.5

1959*

Because of rounding, s m s of individual items may not equal totals.

A ty p ica l cla u se read:
E ach tru ste e sh all s e r v e until his death, resig n a tion , o r re m o v a l.
S p e c ific te r m s found in 10 p e r c e n t o f the plans ranged fr o m 1 to 6 y e a r s ; m o st
co m m o n ly they w e r e fo r 1 , 2 , o r 3 y e a r s .
The union and a s s o c ia tio n sh all each design ate the nam es o f
th ree tru ste e s , one o f w hom shall s e r v e fo r a te rm o f 6 y e a r s ,
one o f whom sh all s e r v e fo r a te rm o f 4 y e a r s , and one o f whom
sh a ll s e r v e fo r a te r m o f 2 y e a r s ; th e re a fte r the union and
a s s o c ia tio n sh all e v e r y 2 y e a r s during the m onth o f F eb ru a ry
design a te one tru ste e to s e r v e fo r a p e r io d o f 6 y e a r s ; p rov id ed ,
h o w e v e r, that the fo r e g o in g shall not r e s t r ic t eith er the right o f
the in itia l tru ste e s to su cce e d th e m se lv e s o r to s e r v e as m any
te r m s as eith er the union o r a ss o cia tio n , r e s p e ctiv e ly , m ay
c h o o s e to red esig n a te them .
* * *
The te rm o f o ffic e o f the tru ste e s sh all be 1 y e a r and until th eir
s u c c e s s o r s a r e appointed and qualify.



48

S iz e o f B o a rd s . The n um ber o f m e m b e r s cu rre n tly se rv in g on the b oa rd s
ranged fr o m 2 to 31, and was m o s t freq u en tly 6 .
Plans
Number of members of
the board *

Number
(thousands) Percent

Number

Percent

736

1 0 0.0

3,229.8

1 0 0 .0

474.1
144.9
521.8
305.8
680.4
525.8
117.0
447.2
12.8

14.7
4.5

10

*.5
17.5
41.4
14.5
14.0
*.5
1.6
.5
1.4

All plans studied ---------------Under 4 ^ ---- ------------------4 ~ 5 .............................
6 - 7 ............................. .
8 - 9 ............................. .
10- 1 3 ........................... .
14- 1 7 ........................... .
18- 2 5 ........................... .
2 8 - 3 1 ........................... .
Number not available ------------1
2
5

Workers 2------

1 6 .2

9.5
21.1
16.3
3.6
13.8
.4

All but 68 plans had an even number of members,
Worker coverage Includes both active and retired workers In 1959*
1 plan had an Individual trustee as administrator.

NOTE:

Because of rounding, sums of individual items may not equal totals.

An exa m ple o f the m anner o f design atin g the s iz e o f the b o a rd fo llo w s :
The fund sh all be a d m in istered by a b oa rd o f eight tru s te e s ,
fo u r o f w hom sh all be d esign ated as e m p lo y e r tru ste e s and fou r
o f w hom sh all be d esign a ted em p loy ee tru ste e s . . .
T r ip a r tite b o a rd s had th re e m e m b e r s (1 union, 1 e m p lo y e r, ind 1 p u b lic
o r n eu tra l m e m b e r ) in a ll but one plan, w hich had s ix m e m b e r s .
Joint b oa rd s
in w hich a perm a n en t n eu tral m e m b e r w as appointed u su ally had seven o r m o r e
m e m b e r s (in clu din g the n eu tra l).
Illu stra tiv e cla u se s a re :
M r. _ _ _ _ _ _ _ has b een s e le cte d by the d ir e c t o r s o f the
union, M r. _______________ has b een s e le cte d by the e m p lo y e rs
. . . and R ev. _ _ _ _ _ _ _ has been s e le c te d as the n eu tral
tru ste e by the oth er two tr u s te e s .
* * *
The . . . re tire m e n t fund . . . sh all . . .
be a d m in istered
by a b o a rd o f tr u s te e s , co m p o s e d o f nine p e r s o n s , fo u r o f
w hom sh all be re p re se n ta tiv e s o f the union, fo u r o f w hom shall
be re p re se n ta tiv e s o f the e m p lo y e r con trib u to rs to the said fund,
and one o f w hom sh all be a n eu tral p e r s o n , n am ely the im p a rtia l
ch a irm a n design ated in this ag reem en t.
S om e tru st a g reem en ts did not s p e c ify the n u m ber o f m e m b e rs to be
appointed to the b o a rd , o r s p e c ifie d an o rig in a l num ber to be appointed but left
open the p o s s ib ilit y o f an in c r e a s e .
The latter is illu stra te d by the follow in g
cla u se :
. . . The tru ste e s sh all in itia lly num ber fo u r, two tru ste e s
bein g e m p lo y e r tru ste e s and two tru ste e s being union tru s te e s .
M o re tru ste e s m ay be added fr o m tim e to tim e as additional
e m p lo y e rs o r e m p lo y e r grou ps b e c o m e p a rty to this a g reem en t
as p ro v id e d h e re in , e x cep t, h ow ev er, that the num ber o f e m ­
p lo y e r tr u ste e s sh all not e x ce e d fiv e , n or the num ber o f union
tru ste e s e x ce e d fiv e . F o r each such e m p lo y e r tru ste e so added,
one union tru ste e sh all be added.



49

O ffic e r s o f the B oard
L ik e m o s t oth er o rg a n iz e d g rou p s, m u ltie m p lo y e r plans u su ally p ro v id e
fo r the appointm ent o f o f f i c e r s o f the b o a rd , such as ch airm an , v ic e chairm an,
s e c r e t a r y , and t r e a s u r e r .
The e ffe c tiv e n e s s o f the o p e ra tio n o f the governing
body o f a jo in t la b o r-m a n a g e m e n t p en sion fund is often d eterm in ed by th ese a p ­
poin ted o f f i c e r s . Although, the s p e c ific p o w e rs and duties a ssig n e d to th ese o f f i ­
c e r s o f the b o a rd w e r e , in m o s t in sta n ce s, not stated in plan docu m en ts, it is
re a so n a b le to a ssu m e that the p o s itio n s would entail r e s p o n s ib ilitie s o rd in a rily
a s s o c ia te d with such d esig n a tion s in lik e o rg a n iz a tio n s, and that b o a rd s would
adopt ru le s delegatin g s p e c ific p o w e rs to each o f f i c e r . F o r ex a m p le, m o s t plans
p re s u m a b ly g ive the ch a irm a n the right to p r e s id e o v e r m e e tin g s , p o s s ib ly with
little independent p o w e r to in te rp re t the ru les o f p r o c e d u r e o f the b o a rd . A v ice
ch airm an would a ct as a re p la ce m e n t o f the ch airm an , when n eeded , and a s e c ­
re ta r y w ould have the duties o f k eeping the r e c o r d s o f m e e tin g s . A tr e a s u r e r ,
if appointed, would p ro b a b ly a ct as f is c a l agent fo r the b o a rd . A few plans d e ­
s c r ib e d the du ties o f the o f f ic e r s as fo llo w s :
The ch a irm a n sh all n otify the tru ste e s o f im pending m eetin g s
and p r e s id e o v e r m e e tin g s, and in addition sh all p e r fo r m such
oth er duties as the tru ste e s m ay p ro v id e .
jje

s
je

T h e re sh all be a s e c r e t a r y o f the b oa rd who sh all k eep m inutes
and r e c o r d s o f a ll m e e tin g s, p r o c e e d in g s , and a cts o f the b oa rd
o f tr u s te e s . C op ies o f a ll m inutes and p r o c e e d in g s o f the b oa rd
sh all be sent by the s e c r e ta r y to a ll m e m b e r s o f the b oa rd .
* * *
The s e c r e t a r y -t r e a s u r e r sh all keep m inutes and r e c o r d s o f a ll
m e e tin g s , p r o c e e d in g s , and acts o f the tr u s te e s .
He sh all send
c o p ie s o f such m inutes and r e c o r d s to a ll o f the tru s te e s .
5e * *
J
The tr e a s u r e r sh all have the c a r e and cu stod y and b e re s p o n s ib le
fo r a ll the funds o f this tru st and d e p o sit a ll such funds in the
nam e o f this tru st in such banks, e tc.
The one p o w e r c le a r ly d eleg a ted to the o ffic e r s o f the b o a rd by n e a rly a ll plans
w as to c a ll s p e c ia l m eetin gs o f the b o a rd . (See page 5 5.)
A lthough the need o f sm a ll plans m ay not be the sam e as la rg e p lan s,
about a sixth o f th ose c o v e rin g fe w e r than 1 , 0 0 0 w o r k e rs se le cte d 3 o r m o r e
o f f i c e r s . T h is p r o p o r tio n was not m uch h igh er in the plans co v e rin g o v e r 10,000
w o r k e rs— about a fou rth . T h ese v a ria tion s p ro b a b ly stem fr o m the m o r e a ctiv e
r o le w hich a ll b o a rd m e m b e r s m a y take in a d m in isterin g som e o f the s m a lle r
funds, w hile in the la r g e r plans it is m o r e lik e ly that a p r o fe s s io n a l a d m in istra tor
w ill be em p loy ed to run the d a y -t o -d a y a c tiv itie s . In the s m a lle r plans the m e m ­
b e r s e le c te d as s e c r e t a r y w ill often p e r s o n a lly m anage the plan; in m any c a s e s he
d oes so in con ju n ction with h is n o rm a l duties as s e c r e t a r y o f the particip atin g
union.
V irtu a lly a ll plans with o f f ic e r s had a ch airm an o r c o -c h a ir m e n ; n e a rly
1 out o f 4, a v ic e ch airm an ; and about 4 out o f 5, a s e c r e ta r y . Only 14 p e r c e n t
o f the plans had an o f f ic e r d esign a ted as t r e a s u r e r .



so
Workers1

Plans

Officers
All plans with 1 or more
officers designated ----------......
Chairman or co-chairmen --------......
Vice chairman ----------------- •
.....
Secretary --------------------Treasurer --------------------- ......
Other ------------------------- ......
1

Number
(thousands) Percent

Number

Percent

591

100.0

2 ,9 1 7 .0

100.0

583

9 8 .6

139

23.5
78.3
14.2
3.6

2 ,89i-i
t.t
5 3 5 .0
1 ,653.3
3 7 8 .8
120.9

99.2
18.3
56.7
13.0
4.1

84
21

Worker coverage includes both active and retired workers in 1959*

NOTE: Because a plan may have several officers, the sums of individual
items do not equal totals.

A m on g 23 d iffe re n t com b in ation s o f o ffic e r s , the la r g e s t num ber o f
b o a rd s— o v e r 50 p e r c e n t— had a ch a irm an (o r c o -c h a ir m e n ) and s e c r e ta r y (table 28).
A co m p le te sla te o f o ff ic e r s — ch airm an , v ic e ch airm an , s e c r e t a r y a n d /o r a t r e a s ­
u rer— w as s e le c te d in n e a rly a fifth o f the plan s.
The on ly o ffic e r s found in
so m e plans w e r e ch a irm a n (47 p la n s), c o -c h a ir m e n (37 p la n s), and s e c r e ta r y
(7 p la n s).
S e le ctio n o f O f f i c e r s .
The s e le c tio n o f o ffic e r s w as, as m igh t be e x ­
p e cte d , u su a lly le ft to the b o a rd . The c h o ice o f p a rticu la r b oa rd o f f i c e r s , h o w ­
e v e r , was often r e s t r ic t e d to m e m b e rs o f a sin g le grou p. T h ese r e s tr ic tio n s —
a c o m p le x m a z e o f ru le s u su a lly deta iled in the plan docum ents— w e re d esig n ed
so as to c a r r y out the th e o ry o f jo in t r e s p o n s ib ility and d istrib u tion o f c o n tr o l in
the jo in t b o a rd .
In a lm o st 40 p e r c e n t o f the plans with at le a st one o f f i c e r , fo r ex am p le,
the ch a irm a n had to b e s e le c te d fr o m a group oth er than that o f another o ffic e r ,
u su a lly the v ic e ch a irm a n , s e c r e t a r y , o r both. O v er a th ird o f th ese plans r e ­
qu ired that the jo b s be altern ated annually betw een the g rou ps re p re se n te d .

Plans ___

Workers 2
Number
(thousands ) Percent

Selection of chairman1

Numbfer

Percent

All plans with chairman --------------

583

100.0

2 ,894.11

100.0

By the board -----------------------Any board member ----------------Position must alternate
each year -----------------Position does not alternate —
Must be from different group than
another officer ----------- ---Position must alternate
each year -----------------Position does not alternate -Must be from designated group ---Co-chairmen ---------------------Other --------------------------By employers and union --------------Information not available ------------

490
153

84-.0
2 6 .2

1 ,8 9 8 .6
7 3 6 .0

25.4

25
128

2 2 .0

241.2
494.8

8.3
17.1

224

38.ll

742.0

2 5 .6

88

15.1
23.3
5.3

248.3
493.7
84.4

1 2 .0
2 .1

162.5

3.8

60 8.7

6 .0
2 1 .0

12 .2

387.3

13.4




1
2

136
31
70
12
22

71

4.3

173.7

65 .6

8 .6

17.1
2.9
5.6

See table 29 for added details.
Worker coverage includes both active and retired workers in 1959.

NOTE:

Because of rounding, sums of individual items may not equal totals.

E xa m ples o f each o f th ese co m m o n a p p roa ch es a r e :
C h airm an m ay be any b o a rd m e m b e r
The tru ste e s sh all s e le c t a ch airm an fr o m am ong th eir nu m ber.
5jc

>5<

Sjc

C h airm an m ay be any b oa rd m e m b e r but jo b a ltern ates
The ch a irm a n o f the b o a rd o f tru ste e s sh all be changed e v e ry
end that the ch airm an sh ip sh all rotate e v e ry

6 m onths to the
6 m on th s.

* * *
C h airm an and oth er

o f f ic e r (s ) m u st be fr o m

d iffe re n t

group

The b o a rd sh all s e le c t one o f its num ber who sh all s e r v e as
ch a irm a n and one who sh all s e r v e as s e c r e t a r y . If the c h a ir ­
m an is a union tru ste e , the s e c r e ta r y sh all be an e m p lo y e r
tru ste e .
* * *
At the fir s t m eetin g o f the tru ste e s , they sh all e le c t a ch airm an
and a s e c r e t a r y w h ose te rm s sh all co m m e n ce on the date o f
th eir e le c tio n and continue fo r 1 y e a r o r until h is oth er s u c ­
c e s s o r s have been e le c te d . . .
At no tim e sh all both such
o ffic e s be h eld by tr u s te e s , both o f w hom have b een design ated
by the e m p lo y e rs o r by the b roth erh ood .
* ❖ ❖
C h airm an and oth er o f f ic e r (s ) m u st be fr o m d iffe re n t group and
jo b s altern ate
. . . D uring the m onth o f D e ce m b e r in each y e a r , the tru stees
sh all s e le c t fr o m am on g the tru ste e s a ch a irm a n and a c o ch a irm a n [ v i c e c h a irm a n / o f the tru s te e s , to s e r v e fo r a te rm
o f 1 y e a r co m m e n cin g January 1 st o f the y e a r fo llo w in g and
until th eir s u c c e s s o r s have been re g u la rly e le cte d .
In o d d n u m bered y e a r s , the ch a irm an shall be s e le c te d fr o m am ong
the union tru ste e s and the /v i c e ch a irm a n / c o -c h a ir m a n fr o m
am ong the e m p lo y e r tr u ste e s , and in the ev e n -n u m b e re d y e a rs
the ch a irm a n sh all be s e le c te d fr o m am ong the e m p lo y e r tru stees
and the c o -c h a ir m a n fr o m am ong the union tru s te e s .
❖ ❖ ❖
C hairm an and oth er o f f ic e r (s ) rotate in p a irs
The d ir e c t o r s sh all m e e t as p rom p tly as p o s s ib le a fter the e x e ­
cution o f this plan and e le c t a ch airm an , a v ic e ch airm an , a
s e c r e t a r y and a v ic e s e c r e ta r y fr o m am ong the d ir e c t o r s . The
ch a irm a n and v ic e ch a irm an shall be s e le c te d fr o m am ong the
e m p lo y e r d ir e c t o r s , and the s e c r e ta r y and v ic e s e c r e t a r y shall
be s e le c te d fr o m am ong the union d ir e c to r s in the od d -n u m b ered
y e a r s . In e v e n -n u m b e re d y e a rs the ch airm an and v ic e ch airm an
sh all be s e le c te d fr o m am ong the union d ir e c t o r s and the s e c r e ­
ta ry and v ic e s e c r e t a r y shall be s e le cte d fr o m am ong the e m ­
p lo y e r d ir e c t o r s .




52

On the oth er hand, any m e m b e r o f the b oa rd , r e g a r d le s s o f the group
he r e p r e s e n ts , cou ld be s e le c te d as ch airm an in about a fou rth o f the plans, a l­
though, in som e c a s e s , the ch a irm a n sh ip had to alternate betw een the grou ps
ea ch y e a r .
The o ff ic e r s w e r e ch o se n by each p artisa n group o f tru ste e s o r the b o a rd
as a w h ole in a ll plans w ith c o -c h a ir m e n .
F o r ex a m p le:
The tru ste e s sh a ll . . . e le c t an em p lo y e r ch airm an and . .
a union ch a irm a n • . •
In 31 plans the ch a irm a n alw ays had to be s e le c te d by the b oa rd fr o m
a s p e c ific group as, fo r exa m ple, under the fo llow in g c la u s e :
The tru ste e s sh a ll s e le c t one o f th eir num ber s e le c te d by the c o n ­
tribu tin g e m p lo y e r s to s e r v e fo r a term o f 1 y e a r as ch airm an .
In a few o f th ese plan s, h o w e v e r, although the ch a irm a n alw ays had to be s e le c te d
fr o m one grou p, another o f f ic e r had to be appointed fr o m the oth er group. One
plan read, fo r ex a m p le:
The ch a irm a n o f the b o a rd o f tru ste e s sh all be s e le c te d fr o m
the e m p lo y e r -t r u s t e e s o f the b o a rd and the s e c r e t a r y -t r e a s u r e r
sh a ll be s e le c te d fr o m the union tru ste e s o f the b o a rd . . .
Tw enty plans p ro v id e d fo r the s e le c tio n o f an im p a rtia l a rb itra to r as
ch a irm a n , u su ally by the e m p lo y e r s and union, w h ose function was to b rea k
d e a d lo ck s.
In a few plans he a lso had a d m in istra tiv e d u ties.
L inked with the s e le c tio n o f ch airm an , h alf o f the plans p rov id in g fo r
v ic e ch a irm a n re q u ir e d alternating o f h is p osition each y e a r with that o f another
o f f ic e r , u su a lly the ch a irm a n , as illu stra te d by the cla u se on page 51.

Plans_____

Selection of vice chairman

Number

Percent

_____ Workers 2
Number
(thousands) Percent

All plans with vice chairman --------

139

1 0 0.0

535.0

10 0.0

By the board ----------------------Any board member ---------------Must be from different group than
another ~off l e e r --------------Position must alternate ----Position does not alternate —
Co-vice chairmen ---------------Must be from designated group --Other -------------------------Information not available -----------

132

95.0

5 2 0.1

30

21 .6

79.9

97.2
14.9

84

60.4
47.5
12.9
2.9
4.3
5.8
5.0

26 7.9
17 3.2
9 4 .7

*
2

4
6
8
7

48.0
10.9
113.4
14.9

See table 29 for added details
Worker coverage includes both active and retired workers in 1959

NOTE;




18

5 0 .1

32.417.7
9.0
2.0
21.2
2.8

Because of rounding, sums of individual items may not equal totals.

In o v e r 40 p e rce n t o f the plans with a s e c r e ta r y , s e le c tio n by the b oa rd
w as m ade r e g a r d le s s o f grou p - a ffilia tion s o f oth er o f f i c e r s .
Workers 2

Plans

Number
(thousands) Percent

Number

Percent

All plans with secretary -----------

463

100.0

1 ,653.3

100.0

By the board ----------------------Any board member --------------Must be from different group than
another officer -------------Position must alternate — *--Position does not alternate —
Must be from designated group --Co-secretaries ----------------Other -------------------------By union and employers ------------Information not available ----------

394
199

85.1
43.0

1,248.5
502.9

75.5
30.4

148
24
124
32
5

32.0
5.2
26.4
6.9

519.3

31.4

Selection of secretary1

1
2

1.5
13.4

7
62

6 .6

409.7
97.1
3.8
125.4

24.8
5.9

1 .1
2 .1

10

10 9.6

375.9

.2

7.6
1.7
22.7

2 8 .9

See table 29 for added details.
Worker coverage includes both active and retired workers in 1959 .

NOTE:

Because of rounding, sums of individual items may not equal totals.

T h ese c la u se s u su a lly rea d :
The b o a rd sh all appoint a s e c r e ta r y who sh all keep m inutes o r
r e c o r d s o f a ll m e e tin g s, p r o c e e d in g s , and a cts o f the b oa rd .
A th ird o f the plans with a s e c r e t a r y re q u ire d that he be fr o m a group oth er than
that o f another o f f ic e r , u su a lly the ch airm an . Som e o f th ese plans a lso re q u ire d
the a ltern ation o f jo b s .
(See c la u s e s on page 5 1 .)
The t r e a s u r e r , s e le c te d in 84 plans, cou ld be any b oa rd m e m b e r in a l­
m o s t h alf o f the plan s.

Plans

Workers 2

Number

Percent

Number
(thousands)

Percent

All plans with treasurer ------------

84

100.0

378.8

100.0

By the board ----------------------Any board member ---------------Must be from different group than
another officer --------------Position must alternate ----Position does not alternate—
Must be from designated group --Co-treasurers ------------------Other -------------------------Information not available -----------

72
37

8 5 .7

44.0

365.6
204.6

96.5
54.0

13
3
10
11
2
9
12

15.5
3.6
11.9
13.1
2.4
10.7
14.3

23.1
4.7
18.4
22.7
1.5
113.7
13.3

6.1
1.2
*.9

Selection of treasurer 1




1
2

6 .0

.4
30.0
3.5

See table 29 for added details.
Worker coverage includes both active and retired workers in 1959.

NOTE:

Because of rounding, sums of individual items may not equal totals.

54

T e r m o f C h a irm a n ,
About the sam e num ber o f plans p ro v id e d 1 -y e a r
te r m s fo r th eir ch a irm a n as p ro v id e d indefinite te r m s .
About h alf the plans
with 1 -y e a r te r m s a ltern a ted the ch a irm a n sh ip betw een the g rou p s. M ost plans,
w h ere altern ating w as not re q u ire d , had indefinite te r m s .
The la tter c o v e r e d
about h a lf the w o r k e r s in plans fo r w hich in form a tion w as a v ailable w h ile the
fo r m e r c o v e r e d on ly a fou rth b e ca u se the la r g e r plans do not altern ate jo b s as
m uch as the s m a lle r pla n s.
_____Workers 1

Pl^ns

Number
(thousands) Percent

Number

Percent

All plans with chairman ---------- —

583

100.0

2,894.4

100.0

1 y e a r -------------------------2 years ------------------------3 years ------------------------5 years ------------------------6 months -----------------------1 meeting ----------------------Indefinite ---------------------Information not available --------

236
9

40.5
1.5
.5

770.0

2 6 .6

2 6 .6

.2

16 .5

.9
.5
41.3
14.6

16.3
178.4
1,427.5
450.1

.9
.3
.6
.6
6.2
49.3
15.6

Term of chairman

^

5

3
85

9.0

Worker coverage Includes both active and retired workers in 1959#

NOTE:

Because of rounding, sums of individual items may not equal totals.

A ffilia tio n o f C h a irm a n .
The ch airm an cu rre n tly se rv in g w as a union
re p r e se n ta tiv e in o v e r 30 p e r c e n t o f the plans and an e m p lo y e r m e m b e r in about
the sa m e p r o p o r tio n o f pla n s.
Since m any o f the la r g e r plans have union o r
pu b lic ch a irm e n , plans with an e m p lo y e r ch airm an only c o v e r e d a fourth o f the
w o r k e r s under m u ltie m p lo y e r p la n s.
In 22 plans, a p u blic m e m b e r acted as
ch a irm a n , u su a lly, as poin ted out p r e v io u s ly , as an im p a rtia l u m p ire .

Plans___
Affiliation of chairman, i960
All plans with chairman ---------Union member --------------------Employer member -----------------Co-chairmen ---------------------Public member -------------------Other ---------------------------Information not available --------

____W r e s , L
okr.Number
(thousands) Percent

Number

Percent

583

1 0 0 .0

2,894.4

1 0 0.0

197
180

33.8
30.9

1,214.7
748.8

70

1 2 .0

22
2
112

3.8
.3
19.2

162.5
3 7 2 .6

42.0
25.9
5.6
12.9
.5
13.2

13.9
3 8 1 .9

Worker coverage Includes both active and retired workers in 1959.
NOTE:

Because of rounding, sums of individual items may not equal totals.

P r o c e d u r e s o f the B oa rd
The ru le s fo r a qu oru m (the num ber o f b o a rd m e m b e r s n e c e s s a r y to be
p re se n t in o r d e r that a ction can be taken on m a tte rs b e fo r e the b oa rd ) and voting




55

(the n um ber o f v o te s n eeded to take action ) w e re d esig n ed , a lm o st without e x c e p ­
tion , to en su re eith er the p r e s e n ce o f equal n u m bers o f each group o r equal
votin g stren gth when unequal n u m bers are p re s e n t.
Since it is im p e ra tiv e that
d e c is io n s be re a ch e d in e v e r y c a s e , v irtu a lly all plans eith er had n eu tral m e m ­
b e r s on th eir b o a r d s , o r , m o r e often, had a p ro ce d u re f o r se le ctin g an im p a rtia l
a r b itr a to r to settle d isp u te s. Although m ost of the plans did not define the te rm
’ ’d ea d lock , " it m ay be a ssu m ed that the deadlock* w ould ex is t, as stated in one
plan:
. . /u p o n / the fa ilu r e o f the e m p lo y e r and union tru ste e s to a g re e on
a m a tter re la tin g to the a d m in istra tion o r accou n ting o f the p en sion tru st fund. ”
R eg u la r M e e tin g s. Only 22 p e rce n t o f the plans had s p e c ific p r o v is io n s fo r
re g u la r m e e tin g s, u su a lly sch ed u led q u a rte rly , annually, o r sem ian n u ally. A nother
10 p e r c e n t o f the plans sim p ly stated that the b o a rd w ould m e e t p e r io d ic a lly .
,Elans........
Regular meetings

Number

Percent

All plans -----------------------

736

1 0 0 .0

Specific provisions -------------Annually -------------------Semiannually ---------------Quarterly ------------------Monthly --------------------Other ----------------------Periodically -------------------No provision, or information
not available — ---------------- ---

163

2 2 .2
6 .0

1

........ Wo^cersi
Number
(thousands) Percent
3,229.8

1 0 0.0

86 5.9

26.7
9.6
4.1
2.7
4.4
5.9

79

5.2
6.7
1.9
2.4
10.7

309.1
133.8
87.7
143.5
191.8
303.4

4$4

67.1

2 ,0 6 0 .6

38
49
14
18

9A

6 3 .8

Worker coverage Includes both active and retired workers in 1959*

NOTE:

Because of rounding, sums of individual items may not equal totals.

Such p r o v is io n s , h o w e v e r, m ay be contained in oth er d ocu m en ts,
m in u tes, b y la w s, e t c . , as the fo llow in g cla u se illu s tr a te s :
M eetin gs o f the tru ste e s sh all be h eld
tru ste e s sh all d e te rm in e .

at such tim e s

e. g . , b o a rd

as the

An exam ple o f re g u la r ly sch ed u led m eetin gs is :

R eg u la r m e e tin g s sh all be held at le a s t sem ian n u ally.

S p ecia l M e e tin g s. O v er 60 p e rce n t o f the plans had p r o c e d u r e s fo r the
ca llin g o f s p e c ia l m eetin gs even though le s s than a fou rth had p r o v is io n s fo r
h oldin g re g u la r m e e tin g s .
S p ecia l m eetin gs m ight be c a lle d by the ch airm an
a n d /o r another o ffic e r , o r by tw o, th ree, o r fou r b o a rd m e m b e rs in n ea rly
40 p e rce n t o f the plan s. (See tabulation on the follow in g p a g e .) A lm o st 10 p e rce n t
a llow ed only one o r , s o m e tim e s , two design ated o f f i c e r s , alw ays including the
ch a irm a n , to c a ll s p e c ia l m e e tin g s ; w hile 15 p e rce n t o f the plan s, p e rm itted a
s p e c ifie d num ber o f b o a rd m e m b e rs to c a ll s p e c ia l m eetin g s without giving the
o f f i c e r s o f the b o a rd any g re a te r authority than oth er b o a rd m e m b e r s .



36

■Plans______ _______ Workers*
Percent

736

1 0 0 .0

3,229.8

1 0 0.0

46o

62.5

2,133.6

6 6 .1

272

37.0

1,187.7

3 6 .8

62
111

8 .^
15.1

230.4
6 3 0 .6

7.1
19.5

15

2 .0

84.9

2 .6

27 6

37.5

1,096.4

33.9

All plans -------------------------Plans with procedure for calling
special meetings ----------------Special meetings may be called by:
Chairman and other officer(s)
or board members 2 ----------Chairman and other officer(s)
o n l y ......... ................
Any board members ' -----------Other -------------------------No provision, or information
not available -------------------*
^

Number
(thousands) Percent

Number

Special meetings

Worker coverage Includes both active and retired workers in 1959.
Usually 2 or 3 members. See table 30 for details.
Between 1 and 4 members. See table 30 for details.

NOTE:

Because of rounding, sums of individual items may not equal totals.

Illu stra tio n s o f the m o r e co m m on o f these p r o v is io n s a re p resen ted b elow
. . . Any two m e m b e r s o f the b o a rd o f tru ste e s m ay c a ll a
m e e tin g setting the tim e and p la ce by giving to the oth er m e m ­
b e r s o f the b o a rd at le a s t 5 days* w ritten n otice by r e g i s ­
te r e d m a il • . .
* * *
A m eetin g m ay be c a lle d at any tim e by the ch airm an o r by
any two o f the tru ste e s upon giving 5 days* w ritten n otice to
a ll the oth er tru ste e s . . .
* * ❖
. . . E ith er the ch a irm a n o r the c o -c h a ir m a n , o r any two
tru ste e s m ay c a ll a m eetin g o f the tru ste e s at any tim e by
giving at le a s t 5 d a y s1 w ritten n otice o f the tim e and p la ce
th e r e o f to each tru stee . . .
* * *

Som e illu stra tio n s o f le s s co m m o n m ethods a r e :
. . . The ch a irm a n o r any fou r tru ste e s m ay c a ll a m eetin g o f
the tru ste e s at any tim e by giving at le a st 1 w eek*s w ritten
n o tice o f the tim e and p la ce th e re o f to each tru stee . . .
* * *
S p ecia l m eetin gs o f the tru ste e s h eld on the w ritten re q u e st o f
the m a jo r ity o f the e m p lo y e r tru ste e s o r a m a jo r ity o f the
union tru ste e s . . .
* * $
M eetin gs o f the tru ste e s m ay be c a lle d by the im p a rtia l tru stee
in h is d is c r e tio n , and sh all be ca lle d by the im p a rtia l tru stee
at the w ritten re q u e st o f any two tru ste e s . . .



57

Q u oru m .
O ver a th ird o f the plans sim p ly s p e c ifie d that a quorum
e x is te d if a m a jo r ity o f each grou p w as p resen t, as shown by the follow in g r u le s :
A m a jo r ity o f the e m p lo y e r tru ste e s and a m a jo r ity o f the union
tru ste e s m u st be p re se n t in p e rs o n at any m eetin g to con stitu te
a qu oru m fo r the tra n sa ction o f b u s in e s s .
A nother plan with
stated that:

six tr u s te e s ,

th ree

union and

th ree

e m p lo y e r

m em bers,

. . . At any re g u la r o r s p e c ia l m eetin g o f the b o a rd o f tru ste e s ,
the p h y sica l p r e s e n c e o f at le a s t two e m p lo y e r tru ste e s and two
em p lo y e e tru ste e s sh a ll con stitu te a qu oru m .

Flans___
Number

Quorum rule

Percent

___ W r e s , :
okr,?,
Number
(thousands) Percent
3,032.8

10 0.0

5.3

1 7 8 .8

5.9

1 1 .6

242.8
827.7

27.3

All jointly administered plans 2 ---- —

718

1 0 0 .0

All board members -----------------Majority of board members ---------- —
Majority of members of each group - —
Equal proportion of members* of
each g r o u p ----------------- ---- —
Specified number of all members * -Other ----------------------------No provision, or information
not available -------------------- —

58
83
257

35.8

132
47

18.4
6.5

734.5

1 .8

148

1 1 7 .0
3 0 .6

2 0 .6

901.3

8 .0

24.2
3.9
1 .0

29.7

1

Worker coverage includes both active and retired workers in 1959.
2 It is assumed that the provisions for quorum, voting, and breaking of
deadlocks have no significance in union- or employer-administered plans, hence
the exclusion from this analysis.
5 of these, 22 plans did not specify that a certain number of each group
be present; however, the total number specified always equaled, except, in a few
plans, more than half of the total board members, thus insuring the presence of
at least 1 member of each group.
NOTE:

Because of rounding, sums of individual items may not equal totals.

A sixth o f the plans r e q u ire d the p r e s e n ce o f an equal num ber o f m e m ­
b e r s fr o m each group— m o s t often one o r tw o. The num ber re q u ire d w as ex a ctly
h alf o r , w h ere the b o a rd w as la r g e , le s s than h alf o f each grou p. F o r exam ple,
one plan with fou r m e m b e r s p ro v id ed :
Tw o m e m b e r s o f the b o a rd o f tru ste e s sh all con stitu te a quorum ,
p ro v id e d that one o f such m e m b e rs is a tru stee design ated by
the union and the oth er is a tru stee d esign ated by the a s s o cia tio n .

In another plan with eight tr u s te e s ,

the quorum ru le w a s:

F ou r o r m o r e tru ste e s p resen t in p e rs o n at any m eetin g shall
con stitu te a quorum fo r the tra n sa ction o f b u sin e ss , p rov id ed
that th ere is p re s e n t at le a st two tru ste e s d esign ated by the
a ss o c ia tio n s w hich a re a party to this d e cla ra tio n o f tru st and
two tru ste e s design ated by the unions w hich are a party to this
d e cla ra tio n o f tru st.



58

T h ir ty -e ig h t plans, including 18 plans with a tw o -m e m b e r b oa rd , re q u ire d
a ll tru ste e s to be p re s e n t.
A plan with fou r tru s te e s , fo r ex a m p le, stated:
F o u r tru ste e s sh a ll con stitu te a quorum fo r
h oldin g a m eetin g and tra n sactin g b u sin e ss .

the p u rp ose

of

Although the grou p a ffilia tio n o f the b o a rd m e m b e rs w as not m en tion ed
in the qu oru m ru le s o f 1 out o f 8 plans (sim p ly req u irin g that a m a jo r ity o f the
b o a rd be p re s e n t), they re q u ir e d the p r e s e n ce o f at le a st one m e m b e r o f each
grou p. F o r ex a m p le, one plan with six tru ste e s (three fr o m each party) im p licity
re q u ire d the p r e s e n c e o f at le a st one fr o m each group by sp e cify in g M . . fou r
.
tru ste e s sh a ll con stitu te a quorum at any m eetin g. n O thers re q u ire d at le a s t one
m e m b e r fr o m each by p rov id in g " . . . a m a jo rity o f the tru ste e s sh all c o n ­
stitute a q u oru m . "
The ru le s o f 47 plans d e s c r ib e d a quorum in te rm s o f a s p e c ifie d num ber
o f b o a rd m e m b e r s , often w ithout fu rth er q u a lifica tion .
T hey a re illu stra te d by
the fo llo w in g c la u s e s :
A qu oru m sh all c o n s is t o f at le a st th ree tru ste e s p re s e n t o r
votin g, as h e re in a fte r p ro v id e d .
A ll d e c is io n s o f the tru ste e s
sh a ll be by m a jo r ity vote o f the quorum , w hich voting sh all be
on a unit b a s is o f the r e s p e c t iv e em p lo y e r and em p loy ee tr u s te e s .
* * *
F o u r tru ste e s sh a ll con stitu te a quorum fo r a m eetin g o f the
tr u s te e s , p ro v id e d that at le a st one tru stee appointed by each
a s s o c ia tio n is p a rt o f the quorum .
L a ck o f Q u oru m . T o d is c o u ra g e any group fr o m b oy cottin g a m eetin g to
p rev en t a ction b e ca u se o f the la ck o f a quorum , 1 out o f 6 plans said that:
A d e a d lo ck sh all be d eem ed to e x is t w h en ever the la ck o f a
n e c e s s a r y qu oru m o f tru ste e s . . . continued fo r £a s p e c ifie d
nu m ber oT7 s u c c e s s iv e m eetin gs o f the tru ste e s . . .
The fo llo w in g tabulation show s that n ea rly th re e -fo u rth s o f the plans
with such a cla u se p r o v id e d that if no quorum w as p re s e n t fo r two co n se cu tiv e
m e e tin g s , the m e m b e r s o f the b o a rd cou ld in sist on b rin gin g the m atter up fo r
the r e v ie w and d e c is io n o f an im p a rtia l a rb itra to r. (See page 60 fo r d is c u s s io n
o f p r o c e d u r e s fo r b rea k in g d e a d lo c k s .)

Plans___

_____ Workers,!
Number
(thousands) Percent

Deadlock in case of
lack of quorum

Number

Percent

All jointly administered plans2 ------

718

1 0 0 .0

3,032.8

31

4.5

87
1

12 .1
.1

123.6
353.6
.5

U,7
(3 )

599

83.4

2,555.0

«4.2

Deadlock exists if quorum lacks for:
1 meeting ----------------------2 meetings ---------------------3 meetings ----- ---------------No provision, or information
not available ---------------------




1
2

5

1 0 0 .0

4 .1

Worker coverage includes both active and retired workers in 1959*
See footnote 2 in tabulation on p. 57.
Less than 0.05 percent.

NOTE:

Because of rounding, sums of individual items may not equal totals.

V otin g . Although voting r u le s , lik e quorum ru le s, exh ibited w ide v a r ia ­
tion s, a ll but a few ru le s w e r e e x p r e s s e d in te rm s o f a m a jo r ity o r unanim ity.
T h re e out o f 5 jo in tly a d m in iste re d plans re q u ire d a m a jo r ity v o te .
T h is w as
defin ed as a m a jo r ity o f the e n tire b oa rd by 190 p la n s; a m a jo r ity o f the num ber
o f m e m b e r s a ctu ally p re s e n t in 112 pla n s; a m a jo r ity o f the v otes c a s t in 121 plan s;
and a m a jo r ity o f a qu oru m in 12 plans (table 31).
Som e o f th ese ru les a lso
s p e c ifie d that equal votin g p ow er be a ssig n ed to each p arty o r that a m inim um
n um ber o f m e m b e r s fr o m each party had to vote fa v o ra b ly .
The v a ria tio n s a re illu stra te d by the follow in g e x c e rp ts fr o m plans with
m aj o r ity ru le s ;
Any a ction taken by the tru ste e s shall be by the co n cu rrin g vote
o f a m a jo r ity o f a ll tr u s te e s .
In one s ix -m e m b e r b o a rd the ru le rea d :
On a ll m a tte rs the c o n cu rrin g vote o f fo u r tru ste e s sh all be
su fficie n t to c a r r y any m otion o r re so lu tio n .
Any a ction taken by the tru ste e s sh all be by the co n cu rrin g
vote' o f a m a jo r ity o f the tru ste e s p re s e n t at a m eetin g at w hich
a qu oru m sh a ll be p re s e n t.
A ctio n taken by the tru ste e s shall g e n e ra lly be by a m a jo r ity
v ote, e x ce p t that . . . each tru stee p re se n t sh all have one
vote on a ll m a tte r s , p ro v id ed , h ow ev er, that if th ere a re an
unequal num ber o f e m p lo y e e tru ste e s o r e m p lo y e r tru ste e s p r e ­
sent at any m eetin g, then in that event the group o f tru ste e s being
the l e s s e r in nu m ber sh all be entitled to c a s t an equal num ber
o f v o te s as the grou p that has the la r g e r num ber p re se n t at any
such m eetin g.
A unanim ous vote o f the m e m b e rs o f the b o a rd w as needed in 1 out o f
4 pla n s. Since th ese 178 plans in cluded 18 plans with a tw o -m e m b e r b o a rd and
136 plans w h ere the unit ru le (the vote o f a p a rticu la r group is d eterm in ed by the
m a jo r ity vote o f the group) p re v a ile d , in n e a rly a ll o f th ese plans a m a jo r ity vote
w as a lso a unanim ous v o te . The fo llow in g quotation illu s tra te s how one plan set
fo rth the unanim ous unit ru le:
The one vote o f the union tru stees shall be c a s t in a cc o r d a n c e
w ith the d e c is io n o f the m a jo r ity o f said union tru ste e s . . .
The one vote o f the e m p lo y e r tru ste e s sh all be ca s t in a cco rd a n ce
with the d e c is io n o f the m a jo r ity o f said e m p lo y e r tru ste e s . . .

At le a st a total o f fo u r a ffirm a tiv e v otes m u st be c a s t by e m ­
p lo y e r tru ste e s to d eterm in e the one vote o f the en tire group o f
e m p lo y e r tru ste e s . . .

At le a st a total o f fo u r a ffirm a tiv e votes m u st be c a s t by union
tru ste e s to d eterm in e the one vote o f the en tire group o f
union tru ste e s . . .



60

T h ese voting ru le s w ould by th eir v e r y nature n e c e s s ita te the a ffirm a tiv e
vote o f at le a s t one m e m b e r o f each p a rty in o r d e r to p a ss a m otion — with the
p o s s ib le e x cep tio n o f so m e o f the plans in w hich the ru les w e re stated in te rm s
o f a b a re m a jo r ity o f m e m b e r s p r e s e n t, o f v o te s ca st, o r o f a quorum . O f the
49 plan s with a " b a r e m a jo r ity o f the m e m b e rs p r e s e n t" ru le, 19 plans app eared
to a llow , through a lit e r a l in te rp re ta tion o f the quorum and votin g r u le s , p o s s ib le
d om in a n ce at a v a lid m eetin g o f the b oa rd by a sin g le g rou p . F o r ex a m p le, one
b o a rd with th ree m e m b e r s fr o m each group had a quorum ru le req u irin g the
p r e s e n c e o f at le a s t tw o m e m b e r s o f each grou p.
If th ree m e m b e r s fr o m one
grou p and two fr o m the oth er w e re p re s e n t, the m a jo r ity o f the m e m b e r s p re s e n t
w ould be th re e o f the m e m b e r s o f a sin g le group, and th eir v otes w ould be s u ffi­
cien t to p a s s any m o tio n . Seven plans with a "m a jo r ity o f v otes c a s t" ru le and
s ix plans with a "q u o ru m m a jo r it y " ru le a lso cou ld c o n c e iv a b ly a llow fo r in ­
eq u ities in a d m in istra tion .
It is e n tire ly p o s s ib le that lo o s e w ordin g o f such
tru st a g re e m e n ts, ra th er than actu al p r a c tic e , accou n ts fo r the e x is te n ce o f
such p o s s ib ilit ie s .
D ea d lock s and A r b itr a tio n . A lm o s t 90 p e rce n t o f the jo in tly a d m in istered
plans c o v e rin g a lm o st a ll o f the w o r k e rs had som e p r o v is io n fo r the settlem en t
o f a d m in istra tion d isp u te s.
Under 3 out o f 4 plan s, an a rb itra to r was s e le cte d
when the n eed a r o s e , w h ile under 1 out o f 7 plans a perm an en t a rb itra to r was
alw ays a v a ila b le, eith er as a n eu tral m e m b e r o f the b oa rd o r through p r io r
s e le c tio n .

■Plans____

__
_

Workers1

Number
(thousands) Percent

Number

Percent

All Jointly administered plans 2

718

1 0 0.0

3,032.8

1 0 0 .0

Temporary arbitrator selected -Permanent arbitrator selected —
Board member -------------Not a board member -------No provision, or information
not available ---------------

53^
104
42

7*L4
14.5
5.8

1,752.8
1 ,20 *
1.1

62

8 .6

734.6
469.5

57.8
39.7
24.2
15.5

80

1 1 .1

75.7

2.4

Bnpartial arbiter

^
2

Worker coverage includes both active and retired workers in 1959*
See footnote 2 in tabulation on p. 57.

NOTE:

Because of rounding, sums of individual items may not equal totals.

W here an im p a rtia l u m p ire w as to be s e le c te d fo r a s p e c ific
the b o a rd w as fir s t e m p ow ered to appoint h im , as in the follow in g cla u se :

dispute,

In the event o f a d e a d lo ck betw een the tr u s te e s , the qu estion
sh a ll be d e cid e d b y an im p a rtia l u m p ire appointed by the vote
o f the tru ste e s . . .

If the b o a rd cou ld not a g r e e on a s e le ctio n , v irtu a lly a ll plans design ated that
another p e r s o n (s ) w ould b e asked to s e le c t an u m p ire. N e a rly 3 out o f 5 p lan s,
as shown by the follow in g tabulation, u se the a p p rop ria te U. S. D is tr ic t C ourt— the
p r o c e d u r e p ro v id e d in the L a b o r M anagem ent R elation s A ct.



61
--- Class---

----- Workers1

If board Is unable to agree
on arbitrator, he will be
appointed by

Number

Percent

Number
(thousands) Percent

All plans with temporary arbitrator ---

534

1 0 0 .0

1,752.8

1 0 0 .0

U.S. District Court ------------------American Arbitration Association -----State authority ----------------------Federal Mediation and Conciliation
Service--- -------------------------Plan documents specify person who
names temporary arbitrator ---------Other -------------------------------No provision -------------------------

309
82

57.9
15.4

65

1,073.7
186.3
74.0

1 0 .6

1 2 .2

20

3.7

26.9

1.5

20
6

3.7

134.8

1 .1
6 .0

1 8 0 .1

7.7
10.3
4.4

32

76.9

61.3
4.2

Worker coverage Includes both active and retired workers in 1959.
NOTE:

Because of rounding, sums of individual items may not equal totals.

An exa m ple o f D is t r ic t C ourt p r o c e d u r e is :
. • • and upon fa ilu r e o f the tru ste e s to a g re e w ithin a re a son a b le
length o f tim e on the s e le c tio n o f an im p a rtia l u m p ire , eith er the
e m p lo y e r o r union tr u s te e s m ay p etition the United States D is tr ic t
C ou rt f o r the D is t r ic t o f M a ssa ch u setts fo r the appointm ent o f
such im p a rtia l u m p ire .

A n oth er plan

r e fe r r e d

m ore

d ir e c t ly to the p r o c e d u r e

set fo rth in the a c t ;

In the event o f fa ilu r e to appoint such an u m p ire within a r e a ­
son able length o f tim e (not to e x ce e d 30 d a y s, w hich m a y be
extended b y m utual a g re e m en t o f the two said g ro u p s), an i m ­
p a r tia l u m p ire to d e c id e such dispute sh a ll, upon petition o f
e ith er grou p, be appointed by the United States D is t r ic t C ourt
fo r the E a ste rn D is t r ic t o f M ich igan , Southern D iv isio n , in the
m an n er p r e s c r ib e d by S ection 302 o f the L a b o r M anagem ent
R ela tion s A ct o f 1947, as am ended. The d e c is io n o f such im ­
p a rtia l u m p ire , w hether appointed by the two g rou p s, as a f o r e ­
said, o r by the D is t r ic t C ourt o f the United States, sh all be
fin a l and binding on a ll p a r tie s to this p la n .'
The oth er ou tsid e a g e n cie s com m on ly ca lle d upon in b oa rd d is a g r e e ­
m ents— the A m e r ic a n A r b itr a tio n A s s o c ia tio n and the F e d e r a l M ediation and
C on cilia tio n S e r v ic e — a re r e fe r r e d to in the follow in g c la u s e s :
. . . In the event o f fa ilu re o f the tru ste e s to a g re e on an i m ­
p a r tia l u m p ire within 5 days th e re a fte r, any one df the tru ste e s
m a y p e titio n the D ir e c t o r o f the F e d e r a l M ediation and C on ­
c ilia tio n S e r v ic e fo r the appointm ent o f an im p a rtia l u m p ire.
The d e c is io n o f said u m p ire shall be fin a l, binding, and c o n ­
clu s iv e upon the tru ste e s and a ll p a rtie s co n ce rn e d .

. . . In the event that no u m p ire sh all have been s e le c te d within
20 days a fter such d e a d lo ck shall a r is e , the A m e r ic a n A r b it r a ­
tion A s s o c ia tio n sh a ll be req u ested by such tru ste e s o r any o f
them to appoint an u m p ire .




62

In the 32 plans with no p r o v is io n fo r an ou tside p a rty to s e le c t an a r ­
b itr a to r in c a s e o f the board*s d ea d lock , p re s u m a b ly the m e m b e r s o f the b oa rd
w ould apply to the U. S. D is t r ic t C ourt as p ro v id e d in the L a b o r M anagem ent
R ela tion s A ct.
S in ce plans with a tr ip a rtite a d m in istra tiv e body, o r a n eu tral m e m b e r,
had a " b u ilt -in perm an en t a r b itr a to r , n they needed no additional help to settle
d isp u tes.
If the perm an en t a r b itr a to r was not a b o a rd m e m b e r , he was o r d i ­
n a rily appointed by the union and e m p lo y e rs by d esig n a tion in the c o lle c tiv e
bargain in g a g reem en t, p e n sion plan, o r tru st a g reem en t, o r they did so pursuant
to p o w e r gran ted to them by one o f th ese in stru m en ts. F o r ex a m p le, one tru st
a g reem en t stated:
In the event that the a ssen t o f the m a jo r ity o f the tru ste e s is
not obtained on any is s u e , the dispute sh all be r e fe r r e d to . . . ,
a n eu tra l p e r s o n to be ca lle d the "u m p ire . "

H o w e v e r, as shown by the fo llo w in g
the b o a rd .

tabulation, he is s o m e tim e s

____ Elans___
Permanent arbitrator is
appointed by

appointed by

......
Number
(thousands) Percent

Number

Percent

All plans with permanent arbitrator
not a board member -------------

62

100.0

^69 .5

100.0

Board ---------------------------Union and employers----------- ----

15
*7

24.2
75.8

10 0.2
3 6 9 .3

7 8 .7

21.3

Worker coverage Includes both active and retired workers in 1959.
NOTE;

Because of rounding, sums of individual items may not equal totals.

If the b o a rd cou ld not re a ch a g reem en t, the a rb itra to r cou ld so m e tim e s be a p ­
poin ted by an ou tsid e agen cy, u su a lly the U. S. D is tr ic t C ourt.




Chapter V* Functions o f the Administrator and Protection
o f Individual Worker’ s Pension Rights

Although the b en efit p r o v is io n s o f p en sion plans d e te rm in e the r e q u ir e ­
m en ts w hich the w o rk e r m u st m e e t to r e c e iv e b e n e fits, th eir re a liz a tio n and
continuation depend upon a d m in istra tiv e d e c is io n s as w e ll as oth er plan p r o v is io n s
and the le g a l fra m e w o rk in w hich they op e ra te . 3
0
T his ch apter exa m in es in d e ta il the a d m in istra tiv e p r o c e d u r e s and s e le cte d
plan p r o v is io n s that m a y a ffe c t a w o r k e r 1s rights to r e c e iv e b e n e fits, o r a p e n ­
s i o n e r s a ss u ra n ce o f continued b e n efits. F ir s t , the a d m in istra tiv e d e ta ils, in ­
cluding r e co rd k e e p in g a c tiv itie s and app lication , c la im s , and appeals p r o c e d u r e s
a re exam ined, b a se d on an a n a ly sis o f the a d m in istra tiv e a rra n g em en ts re p o rte d
by plan a d m in istra to rs in item 9 o f the fo r m D - l . 3
1 This is fo llo w e d by an
an a lysis o f plan p r o v is io n s fo r s e r v ic e cred itin g , plan am endm ent and term in a tion ,
e m p lo y e r w ithdraw al, and r e s t r ic t io n s on em ploym en t a fter re tire m e n t. A ll data
in this ch a pter r e fe r to the 736 fo rm u la ted pla n s.
A d m in istra tiv e P r o c e d u r e s
In tw o -th ir d s o f the plan s studied, co v e rin g an equal p r o p o r tio n o f the
w o r k e r s , the b o a rd o f a d m in istra tion was au th orized to p e r fo r m , and had r e s p o n ­
s ib ility f o r , a ll o f the six a d m in istra tiv e fu n ction s lis te d in item s 9 and 12 o f the
fo r m D - l , n a m ely: M aintaining r e c o r d s , re c e iv in g a p p lica tion s, p r o c e s s in g
c la im s , d eterm in in g e lig ib ility , and in itia lly and fin a lly d eterm in in g appeals
(table 32). In m any o f th ese p la n s, the b oa rd it s e lf did not p e r fo r m each function;
ra th er, it deleg a ted one o r m o r e to a paid a d m in istra tor o r to an individual b oa rd
m e m b e r r e s p o n s ib le to the b o a rd . One plan, fo r ex a m p le, in clu d ed a cla u se in
the tru st a g reem en t p rov id in g fo r the appointm ent o f a paid a d m in istra to r to p e r ­
fo r m th ese fu n ction s:
The a d m in istra to r sh all p e r fo r m the duties d eleg a ted to him by
the tr u ste e s and sh all be in ch a rg e o f the a d m in istra tion o f the
o ffic e and r e c o r d s o f the plan and tru st, the r e c e ip t and d e p o sit
o f m o n ie s and oth er p r o p e r t ie s o f the tru st, o f a ll c la im s against
the tru st and such oth er duties as m ay be d eleg a ted to him by
the tr u s te e s .
3 S om e o f the le g a l p r o b le m s p e cu lia r to p en sion plans a re exam ined in:
0
Edwin R. P a tte rso n , L e g a l P r o te c tio n o f P riv a te P e n s io n E x p ectation s (H om ew ood,
II I., R ich a rd D. Irw in, 1961), and B enjam in A a ron , L e g a l Status o f E m p loy ee
B en efit R ights Under P r iv a te P e n sio n P lan s (H om ew ood, III. , R ich a rd D.
Irw in, 1 9 6 1 ).
3 A d m in istra to rs w e re r e q u ire d to re p o rt the nam es o f the p a rty o r p a rtie s
1
p e r fo r m in g s p e c ifie d a d m in istra tiv e fu n ction s, including m aintaining r e c o r d s , d e ­
term in in g e lig ib ility , p r o c e s s in g c la im s , and d eterm in in g a p p eals. E ach a d m in i­
stra to r w as a lso to r e p o r t the p r o c e d u r e s fo llo w e d in p resen tin g c la im s fo r b e n e ­
fits and in appealing den ial o f c la im s .
In o r d e r to attain c o n s is te n cy , the
r e s p o n d e n ts re p o r ts w e re edited by the B ureau o f L a b or S ta tistics fo r p u rp o se s
o f this study.
F o r ex a m p le, if a paid a d m in istra tor (oth er than a s e r v ic e o r ­
ganization) o r a m e m b e r o f the b o a rd was id en tified as p e r fo r m in g a sp e cifie d
function, this was taken to show that the function was p e r fo r m e d by the b oa rd as
a w hole— the m an n er in w hich it was re p o rte d by m o s t p la n s, including those
known to have a paid a d m in istra to r, who, in fa ct, did p e r fo r m the function.
See appendix B fo r fo r m D - l .




63

64

H ow ev er, the ultim ate r e s p o n s ib ility fo r the p e r fo r m a n c e o f the duty was u su ally
v e ste d in the b o a rd by the sam e plan docu m en ts.

In the rem ain in g th ird o f the plans som e o f the fu n ction s w e re d elegated
by the b o a rd to oth er p a r tie s . In th ese p la n s, the union, a s e r v ic e org a n iza tion ,
a c o r p o r a te tru ste e , o r an in su ra n ce com pan y, was m o r e lik e ly to m aintain plan
r e c o r d s o r to p r o c e s s c la im s than to p e r fo r m any o f the oth er ad m in istra tiv e
fu n ction s. F o r ex a m p le, in about 1 out o f 5 o f th ese p la n s, the union m aintained
plan r e c o r d s w hile the b o a rd p e r fo r m e d the oth er fu n ction s. A s e r v ic e o r g a n iz a ­
tion r e lie v e d the b o a rd o f this fu n ction in an a lm o st equal num ber o f p lan s.

M aintaining R e c o r d s . The b oa rd o f a d m in istra tion alone o r in c o o p e r a ­
tion with another p a rty , e. g. , the in su ra n ce c a r r ie r , kept plan r e c o r d s in about
th r e e -fo u r th s o f the p la n s.

Plans

Maintains records
All plans studied -------------------Board ------------------------------Board only ----------------------Board and insurer ---------------Board and corporate trustee -----Board and union -----------------Board and service organization --Board and insurer and corporate
trustee ----------- -----------Board and employers -------------Service organization ----------------Union ------------------------------Employers --------------------------Corporate trustee -------------------Insurer ----------------------------Employers and union -----------------Other ^ ---------------------------Information not available ------------

Workers1

Percent

Number
(thousands)

Percent

736

1 0 0 .0

3,229.8

1 0 0 .0

567

77.0

521
36

7 0 .8

2 ,6 6 8 .8
2 , M 8 .f
t

8 2 .6
7 ^ .9

Number

**.9
.3
.3

239.8

.1

1 .0

(4)

1

.1

1 .8

*
50
55

.5

3.2
117.5
371.7

.1
.1

2
2
1

6 .8

7.5

.8

12

1 .6

1 0 .1

25
5
3
9

3A
.7
A

39 *1

10

1 .2
1 .*

w

3.8

3.6
11.5
.3

5.i
2A

1 .2
.1
.2
.1

1 2 .9

A

2 .2

1
2
5

Worker coverage Includes both active and retired workers in 1959*
Less than 0.05 percent.
1 plan with 100 workers, an individual trustee; 1 plan with 500 workers,
Insurance carrier and union; 2 plans with 1 ,0 0 0 workers, service organization
and insurance carrier; 2 plans with 500 workers, union and corporate trustee;
1 plan with 100 workers, investment agent; and 2 plans with 200 workers, employ­
ers and insurance carrier.
iOTE:

Because of rounding, sums of individual items may not equal totals.

R e ce iv in g A p p lic a tio n s . A p p lica tion s fo r b en efits w e re to be subm itted
d ir e c t ly to the b o a rd in a ll but 19 pla n s. F o r ex am p le, one ty p ica l plan stated that:

A ll a p p lica tion s fo r re tire m e n t b en efits shall be subm itted to the
b o a rd o f tr u s te e s .




65

Ktst.
a i s a3

Eas
io
Number

Percent

Number
(thousands)

All plans studied -------------------

736

1 0 0 .0

3,229.8

Board -----------------------------Board only ---------------------Board and insurer --------------Board and union ----------------Board and service organization —
Union -----------------------------Service organization ---------------Other ^ ---------------------------Information not available -----------

704

95.7
95.1
.3

3,191.9
3,189.4

.1
.1
1 .1
1 .1

1.3

Receives applications

700
2
1
1
8
8

.2
1 .0

1 0 0 .0
9 8 .8

98.7
(2 )
(2 )
(2 )
.2

7.9
15.6

.4

,5
(2 )
.4

.2

1 .8

3
13

Percent

14.2

Worker coverage Includes both active and retired workers in 1959#
Less than 0.05 percent.
* Corporate trustee in 1 plan with 50 workers; individual trustee in
1 plan with 100 workers; employers in 1 plan with 50 workers.
NOTE:

Because of rounding, sums of individual items may not equal totals.

P r o c e s s in g C la im s . The b oa rd o f a d m in istra tion p r o c e s s e d the cla im s
fo r b e n e fit s 'in o v e r Sb p e r c e n t o f the p lan s.

Plans

Workers1
Number
(thousands) Percent

Number

Percent

All plans studied -------------------

736

100.0

3,229.8

100.0

Board -----------------------------Board only --------------------Board and insurer --------------Board and union ----------------Board and corporate trustee ----Board and employers ------------Board and service organization —
Insurer----------------------- ?
---Service organization ---------------U n i o n ----------- ------------------Corporate trustee ------------------Employer --------------------------Other ^ ---------------------------Information not available — ---------

610

570
32
2
3
1
2
20
34
36
7
6
5

82.9
77.4
4.3
.3
.4
.1
.3
2.7
4.6
4.9
1.0

2,413.5
2,165.9
239.0
4.5
.7

74.7
6 7 .I
7.4

Processes claims

18

.8

.7
2.4

1 .8

1.6
331.9
106.9
335.7
12.0
6.4
6.1
17.3

<*>
(2)
10.3
3.3
10.4
.4
.2
.2
.5

1

Worker coverage includes both active and retired workers in 1959*
Less than 0.05 percent.
3 in 2 plans with 2 ,1 0 0 workers, the insurer and service organization; in
1 plan with 3,400 workers, the employer and union; in 1 plan with 100 workers,
an individual trustee; and in 1 plan with 500 workers, the union and insurer.
2

NOTE:

Because of rounding, sums of individual items may not equal totals.

D eterm in in g E lig ib ility . The b oa rd m ad e the in itia l determ in a tion o f the
c la im a n t s a pp lica tion in o v e r 90 p e rce n t o f the plan s.



66

Plans

Determines eligibility

Workers *

Number
(thousands) Percent

Number

Percent

All plans studied -----------------

736

1 0 0 .0

3,229.8

Board ---------------------------Board only -------------------Board and insurer ------------Board and u n i o n --- -----------Board and other --------------Service organization -------------Insurer ----- --------------------U n i o n ---------------------------Other 3 ..........................
Information not available ---------

690
671

93.8
91.2
1.9
.3
.4

3,178.5
3 ,16 6.1
9.2
1.7
1.5
18.3
3.3

14
2

3
13
7

1 0 0.0

98.4.
9 8 .0

.3
.1

(2 )

6

1 .8
1 .0
.8

1 1 .1

.3

4

.5

2.7

.1

16

2 .2

1 6 .0

.5

.6
.1

^

Worker coverage Includes both active and retired workers in 1959*
Less than 0.05 percent.
3 In 1 plan with 600 workers, corporate trustee; 1 plan with 1,4-00 workers,
employer and union; 1 plan with 500 workers, insurer and union; and 1 plan with
100 workers, an individual trustee.
2

NOTE:

Because of rounding, sums of individual items may not equal totals.

A p p e a ls .
F ew plans la ck ed a s p e cifie d p r o c e d u r e fo r appeal o f a cla im
den ia l. In 95 p e r c e n t o f the p la n s, the appeal m ust be d ir e c te d to the b o a rd (o r
a c o m m itte e o f the b o a rd ).
F o r ex a m p le, one plan said:
A p e r s o n w h ose a p p lica tion has been r e je c te d on the m e r its by
the p e n sion co m m itte e sh a ll have the right to have h is a p p lic a ­
tion re v ie w e d by the b o a rd o f tru ste e s and to appear p e r s o n a lly
b e fo r e them i f re q u e st is m ade th e r e fo r in w ritin g within 10 days
a fter n o tifica tio n by the p en sion com m itte e o f the r e je c tio n o f
the a pp lica tion .
Plans
Appeals are directed to

Workers 1
Number
(thousands) Percent

Number

Percent

All plans studied --------------------

736

100.0

3,229.8

100.0

Board ------------------------------Board o n l y ------ ,
---------------Board and employers -------------Board and insurer ---------------Board and union -----------------Board and corporate trustee -----Board and service organization --Insurer ----------------------------Union ------------------------------Other 3
---------------------------No provision, or information
not available ----------------------

703

3,207.2
3,189.0

99 .3
9 8 .7

3

95.5
92.5
.4

16
1
1
1
8

2 .2
.1
.1
.1
1 .1

14.6
1.3

3.9

.1

3

1 .2

2

.4
.3

.4

(2 )
(2 )

20

2.7

17.1

.5

681

1 .1

.2
1 .0

(2 )
.5

(2 )
(2 )
(2 )

*

Worker coverage includes both active and retired workers in 1959.
Less than 0.05 percent.
* In 1 plan with 300 workers, a service organization; and 1 plan with
100 workers, an individual trustee.
2

NOTE:

Because of rounding, sums of individual items may not equal totals.

F in a l D e c is io n on A p p e a ls . The fin a l d e c is io n reg a rd in g any cla im fo r
b en efits w as m ade by the b o a rd in 95 p e rce n t o f the p la n s.



67

Plans

Finally decides appeals

Workers *

Number
(thousands) Percent

Number

Percent

All plans studied -- -----------------

736

1 0 0 .0

3,229.8

1 0 0 .0

B o a r d ---------------.
---------------Board only ----------------------Board and insurer ---------------Board and union — ---------------Board and corporate trustee -----Board and service organization --Insurer ----------------------------Employers and union -----------------Union ------------------------------Other^ -----------------------------Information not available ------------

703

95.5
90.9

3,207.^
3,169.9
35.0
1.3

9 9 .3
9 8 .1
1 .1

669
1
1
1
12

* .2
.1
.1
.1
1 .6

5.5

.2

3
3

A
A

1 .1
1 .2

2

.3

13

1 .8

.3
1^.3

(2 )
(2 )
(2 )

31

.2
1 .0

0
(2 )

* Worker coverage Includes both active and retired workers in 1959.
2 Less than 0.05 percent.
5 In 1 plan with 200 workers, insurer and union; and in 1 plan with
100 workers, an individual trustee.
NOTES

Because of rounding, sums of individual items may not equal totals.

O n ce this d e c is io n is m ade the w o rk e r had exhausted a ll m ean s at h is d is p o s a l
p r o v id e d by the p la n s. F u rth er r e c o u r s e is a v a ila b le to the w o rk e r through the
c o u r ts , o r , if c o v e r e d by an in su red plan, the State in su ra n ce dep artm en t, o r in
a few Sta tes, to a State agen cy ch a rg ed with su p erv isin g such p la n s. R egarding
the fin a lity o f the board* s d e c is io n , one plan said:
An applican t fo r re tire m e n t b en efits w h ose a p p lica tion has been
r e je c te d by the b oa rd o f tru s te e s , eith er upon d eterm in a tion o f
h is a p p lica tion in the fir s t in stan ce o r upon appeal fr o m the r e ­
tire m e n t co m m itte e as a fo r e s a id , o r w h ose a p p lica tion has been
r e je c te d by the r e tir e m e n t co m m itte e without appeal to the b oa rd
o f tru ste e s in the m an n er h erein a b ov e, sh all have no fu rth er
r e c o u r s e w h atever.
A n oth er read:
. . . The d e c is io n o f the b o a rd o f tru ste e s sustaining the p en sion
co m m itte e in re je c tin g the app lica tion o r o v e rru lin g the p en sion
co m m itte e and granting the a p p lication and as to a ll m a tters
relatin g to the a pp lica tion shall be fin a l and binding.
* * *
A r e je c t e d applicant o r one w h ose ap p lica tion is not granted o r
app roved sh all have no r e c o u r s e against the re tire m e n t fund, . . .
the b o a rd o f tr u s te e s , the p en sion co m m itte e , the union, the
e m p lo y e r , o r any o f the o f f i c e r s , agents, o r m e m b e r s o f any
o f them .
In on ly 31 o f the p la n s, the in s u r e r acted in co o p e ra tio n with the b o a rd to m ake
this fin a l d eterm in a tion .
S e r v ic e -C r e d itin g P r o v is io n s
In term itten t, se a so n a l, and ca su a l em ploym en t is c h a r a c te r is tic o f m any
o f the in d u strie s in w hich m u ltie m p lo y e r plans a re found; h e n ce , the plans s tr e s s
s e r v ic e -c r e d it in g p r o v is io n s m o r e than sin g le e m p lo y e r p la n s.
G en era lly , to
r e c e iv e b e n e fits, a w o rk e r m u st have fa ir ly re g u la r em ploym en t with one o r m o r e
con trib u tin g e m p lo y e r s throughout the m in im u m s e r v ic e p e r io d , but only r a r e ly is
fu ll-t im e , y e a r -r o u n d em ploym en t re q u ire d to obtain a y e a r ’ s s e r v ic e c r e d it.




P lan ru le s defining how s e r v ic e c r e d its a re accu m u lated v a rie d c o n s id ­
e ra b ly am ong the in d u strie s in w hich m u ltie m p lo y e r plans a re com m on . S e v e ra l
ex a m p les o f d iffe re n t types o f s e r v ic e -c r e d it in g p r o v is io n s a re p re se n te d b elow :
An e m p lo y e e ^ s e r v ic e c r e d it sh all be com puted on the b a s is
o f the tota l num ber o f str a ig h t-tim e shifts fo r w hich he has
b een paid . . .
in each o f the ca len d a r y e a r s sin ce the la st
ca len d a r y e a r (exclu d in g y e a r s during w hich he w as on a p ro p ­
e r ly a u th orized le a v e o f a b sen ce) in w hich he w ork ed le s s than
10 s tra ig h t-tim e shifts . . . In m aking this com putation:
(a) A s
to any ca len d a r y e a r during w hich an em p loy ee has b een paid
. . . fo r 220 o r m o r e str a ig h t-tim e shifts he sh all have 1 y e a r
o f s e r v ic e c r e d it and (b) as to any ca len d a r y e a r during w hich
an e m p lo y e e has been paid . . . fo r le s s than 220 s tra ig h t-tim e
sh ifts he sh all have that p r o p o r tio n o f 1 y e a r o f s e r v ic e c r e d it
that the num ber o f s tr a ig h t-tim e shifts fo r w hich he has been
paid . . .
in that y e a r b e a rs to 220, com puted to the n e a re st
on e -tw e lfth o f a y e a r . . .

Reported employment or service
during a calendar year

Credited
service

1 ,6 0 0 or more h o u r s ------------------1 ,2 0 0 to 1 ,6 0 0 h o u r s -----------------800 to 1 ,2 0 0 h o u r s -------------------400 to 800 h o u r s ----------------------

1 year
3 /4 year
1 /2 year
1 /4 year

Less than 400 h o u r s -------------------

None

* * *
. . . A m e m b e r o f the plan fo r whom con trib u tion s a re m ade
by a p a rticip a tin g e m p lo y e r sh all be entitled to c r e d it fo r one
unit o f p a rticip a tio n in the plan fo r each m u ltip le o f $10 c o n tr ib ­
uted on h is b eh a lf during a f i s c a l y e a r , as above d efin ed . If le s s
than $10 is con trib u ted during any fi s c a l y e a r , as above defin ed,
no c r e d it sh all be a llow ed . N or sh all c r e d it be a llow ed fo r any
fr a c tio n a l p o rtio n s o f $10 con trib u ted during any f i s c a l y e a r , as
above defin ed. A ny f is c a l y e a r during w hich one o r m o r e units
o f p a rticip a tio n a re earn ed sh all be counted as a y e a r of p a r t i ­
cip a tion in the plan . . .
* * *
. . . any m e m b e r o f the union in good standing who has been
a m e m b e r o f the lo c a l . . . continuous good standing fo r at
le a st 20 y e a r s im m e d ia te ly p re ce d in g his date o f ap p lica tion fo r
p en sion b en efits and has re a ch ed the age o f 65 o r o v e r , m ay at
h is re q u e st be r e tir e d fr o m a ctiv e s e r v ic e and b e c o m e e lig ib le
fo r re tire m e n t b en efits . . .
* * *
To r e c e iv e y ou r re tir e m e n t p en sion . . . you m u st be 65 y e a rs
o ld , and . . . you m u st have w ork ed in the . . . in du stry at
le a st 25 co n se cu tiv e y e a r s fo r an a v era g e o f at le a s t 700 h ou rs
p e r y e a r fo r the fir s t 20 y e a r s and at le a st 500 h ou rs p e r y e a r
fo r the la st 5 y e a r s . . .




69

M ost s e r v ic e -c r e d it in g p r o v is io n s a lso defined the c ircu m s ta n ce s under
w hich s e r v ic e c r e d its a re perm an en tly lo s t o r continuous s e r v ic e is brok en . They
u su a lly p ro v id e d that a m e m b e r who did not w ork fo r a p a rticip a tin g e m p lo y e r
during a s p e c ifie d p e r io d o f tim e (freq u en tly 1 o r 2 y e a r s ) w ould be d rop ped fr o m
the plan. If he subsequently w ork ed in a c o v e r e d jo b , he would be reg a rd ed as
a new m e m b e r without any c r e d its fo r p r io r s e r v ic e .
If, h o w e v e r, his p r io r
m e m b e r sh ip , entitled him to a re tire m e n t b en efit— e a r ly , n o rm a l, o r d isa b ility —
o r to a v e ste d in te re st, he was u su a lly rein stated with a p p rop ria te c re d its fo r his
p re v io u s s e r v ic e , e s p e c ia lly if he had not r e c e iv e d any b en efit. E x cep tion s w e re
often m ade if the w ork er*s a b se n ce fr o m c o v e re d em ploym en t was due to illn e s s ,
d isa b ility , o r s e r v ic e in the A rm e d F o r c e s . Som e ex a m p les o f p r o v is io n s g o v ­
erning the lo s s o f cre d ite d s e r v ic e a re shown b elow .

. . . If you w ork ed le s s than 350 h ou rs p e r y e a r fo r any 2 y e a rs
in a row , you w ill have lo s t cr e d it fo r th ose y e a r s and a ll
e a r lie r y e a r s u n less y o u r fa ilu re to w ork 350 h ou rs was due to
in ju ry, sic k n e ss, o r m ilita r y s e r v ic e . . .
* * *
. . . P a rticip a tio n by an e m p loy ee in this plan and a ll cre d ite d
s e r v ic e p r e v io u s ly a ccu m u lated shall be term in ated if the e m ­
p lo y e e has earn ed no cr e d ite d s e r v ic e fo r a p e r io d in a cco rd a n ce
with the fo llo w in g tabulation:

Credited service previously
accumulated

Period during which no
service credit earned

Less than 2 years* service credit--------2 to 5 years* service credit ---------5 to 10 years* service credit ----------10 to 15 years* service credit------------

1calendar year
2calendaryears
3calendaryears

i calendar years
f

T im e o f s e r v ic e in the A rm e d F o r c e s o f the United States shall
be ex clu d ed fr o m the p e r io d during w hich no s e r v ic e cr e d it
w as earn ed . . .
* * *
An em ployee* s s e r v ic e w ill be d eem ed to have term in ated upon
the o c c u r r e n c e o f the e a r lie r o f the follow in g two events:

(a)

When the tru ste e s a re se rv e d with n otice by a union o f a
le g a lly valid term in a tion o f em ploym en t o f an em p loy ee
due to fa ilu re o f such em p loy ee to ten d er to the union
p e r io d ic dues and in itiation fe e s o r h is sh are o f the co s t
o f negotiating and s e r v icin g the c o lle c t iv e bargaining a g r e e ­
m ent betw een the e m p lo y e r and union, p ro v id e d that the said
c o lle c t iv e bargain in g a g reem en t r e q u ire s such paym ents.

(b)

The fa ilu re by an e m p lo y ee to co m p le te 600 o r m o r e co v e re d
h ou rs o f em ploym en t in 2 co n se cu tiv e plan y e a r s .




70

If, h o w e v e r, an em p loy ee d oes not have 600 c o v e re d h ou rs o f
em ploym en t in 2 co n se cu tiv e plan y e a r p e r io d s due to an a b ­
se n ce cau sed by m ilita r y s e r v ic e with the A rm e d F o r c e s o f the
United States, o r a bona fid e d isa b ility , he sh all be allow ed an
addition al p e r io d o f tim e equal to the length o f the a b sen ce to
co m p le te the 600 c o v e r e d h ou rs o f em ploym en t.
A m endm ent o f the P e n sio n P lan
A m u ltie m p lo y e r p e n sio n plan can u su ally be am ended at any tim e by the
b o a rd o f a d m in istra tion , and in this r e s p e ct, m u ltie m p lo y e r plans a re fa r m o r e
fle x ib le than the ty p ica l negotiated sin g le e m p lo y e r plan. The b o a r d 's authority
to am end a m u ltie m p lo y e r p en sion plan is u su ally c o n c is e ly stated in the fo r m a l
p e n sion plan docu m en t, and is sep a rate and d istin ct fr o m the p ow er o f the p a rtie s
to a ffe c t changes in the tru st indenture o r in con trib u tion ra te s. G en era lly , the
changes that can be m ade a re th ose a ffectin g e lig ib ility fo r b e n e fits, types o f
b en efits p r o v id e d , am ount o f b e n e fits, p r o c e d u r e s , etc.
H ow ev er, the b o a r d 's
right to change the am ounts o f b en efits fo r r e tir e d w o rk e rs is often lim ite d and
guided by oth er plan p r o v is io n s .
(See page 7 1 .)
E ighty p e r c e n t o f the plans with n e a rly 85 p e r c e n t of the w o r k e rs s p e cifie d
that the b o a rd o f tru ste e s had the p ow er to am end p en sion plan p r o v is io n s at any
tim e , su b je ct, in so m e c a s e s , to the re v ie w and a p p rov a l o f the e m p lo y e r s , the
union, o r plan p a rticip a n ts.

Plans

Workers 1

Provision for amendment
of the pension plans

Number

Percent

Number
(thousands)

Percent

All plans studied ----------------------

736

1 0 0 .0

3 ,2 2 9 .8

10 0.0

Board may amend ----------------------Board only -----------------------Board with approval of plan
participants --------------------Board with approval of union
and employers -------------------Board with approval of union ------Board with approval of employers --Board or union and employers
may amend --------------------------Union and employers may amend ---------Other --------------------------------No provision, or information
not available -----------------------

595
563

8 o .8
76.5

2 ,7 1 5 .4
2,649.3

8 2 .0

4

1
2

84.1

.5

8.9

.3

24
3

3.3
.f
i

5 0 .8

1 .6
.2

1

.1

.2

(2 )

15

2 .0

68

9.2

13

1 .8

14.0
415.2
17.1

.4
12.9
.5

*5

6 .1

6 8 .0

2 .1

6A

Worker coverage Includes both active and retired workers in 1959.
Less than 0.05 percent.

NOTE:

Because of rounding, sums of individual items may not equal totals.

E xa m ples o f ty p ica l cla u se s fo llo w :
B oa rd on ly m ay am end
T his plan m ay be



am ended by the tru ste e s

at any tim e .

.

71

B oa rd m a y am end with a p p rova l o f union and e m p lo y e rs
T h e se ru le s and reg u la tion s m ay be added to, am ended, o r
m o d ifie d fr o m tim e to tim e, without n o tice by the re tire m e n t
b o a rd p ro v id e d that such am endm ents o r m o d ifica tio n s shall fir s t
have b een app roved by the ex ecu tiv e o r oth er g overn in g b oa rd s
o f the union and the a s s o c ia tio n s . . .
B o a rd m a y am end with a p p rova l o f p a rticip a n ts
The p r o v is io n s o f the plan m ay be m o d ifie d o r am ended by the
b o a rd by vote o f a re g u la r o r s p e c ia l m eetin g o f the b oa rd ,
su b je ct to re feren d u m o f the m e m b e rsh ip o f the plan • . .
On the oth er hand, 9 p e r c e n t o f the plans cou ld be am ended only by jo in t
a ction o f the e m p lo y e r and the union— cu s to m a rily at the ex p ira tion o f the c o lle c t iv e
bargain in g a g reem en t. The b en efits in m any o f th ese plans w e re o r ig in a lly n e g o ­
tiated by the p a r tie s at the bargain in g table rath er than, as in m o s t p la n s, by the
jo in t b o a rd appointed by them . In th ese p la n s, the b oa rd u su ally a cted s o le ly on
a d m in istra tiv e m a tte r s.
T h ese plans ty p ica lly said:

T his plan is e sta b lish ed pursuant to a c o lle c t iv e bargain in g a g r e e m ent^betw een the e m p lo y e r s and the union and m ay be am ended
/ o n l y / by c o lle c t iv e bargain in g a g reem en ts.
One o f the im portan t p r e r o g a tiv e s o f b o a rd s o f ad m in istra tion is to adjust
the b e n e fits paid to w o r k e rs a lre a d y re tire d .
. . . The e m p lo y e e sh all be paid a re tire m e n t b en efit o f $100 p e r
m onth . . . p ro v id e d su fficien t funds a re a v a ila b le fo r paym ents
as a fo r e s a id , but if su fficie n t funds a re not a v a ila b le, the m onthly
b en efit m a y be d eterm in ed to be le s s than $100, as h e re in a fte r
p ro v id e d in this a g reem en t.
Only 2 out o f 7 plans e x p lic itly w ithheld this right fr o m the b oa rd and a llow ed fo r
no red u ction in b e n e fits. In m o s t o f the rem aining p lan s, som e d is c r e tio n was
given to the b o a r d s , im p lic itly o r e x p licitly .

Workers1

Plans
Restrictions on reduction
of benefits for
retired workers

Number
(thousands) Percent

Number

Percent

All plans studied -------------------

736

1 0 0 .0

3 ,2 2 9 .8

1 0 0 .0

No restriction on reduction --------No reduction ----------------------Insured -----------------------Self-insured -------------------No reduction if funds available ----No reduction unless fund depleted --Other ^ --------------------------- No provision, or information
not available ---------------------

355

48.2

1 ,87 3.6
578.5
3 2 9 .6

17.9

2 8 .4

5 8 .0
1 0 .2

116

15.8

93

1 2 .6

96
1*

30

13.0
1.9
4.1

360.7

1 0 .6
.8
1 1 .2

32

4.3

47.1

1.5

248.9
343.2
2 6 .8

7.7

Worker coverage includes both active and retired workers in 1959*
^ 9 plans with 33 6,000 workers were self-insured before retirement, but a
temporary annuity was purchased annually after retirement.




NOTE:

Because of rounding, sums of individual items may not equal totals.

12
The 116 w h olly in su red p la n s, w hich c o v e r e d 10 p e r c e n t o f the w o r k e r s ,
cou ld not re d u ce b e n e fits fo r w o r k e rs a lrea d y r e tir e d , owing to the p r io r p u r ­
ch a se o f a life annuity fo r ea ch p e n s io n e r; i. e. , the b e n e fit paid to the r e tir e d
w o r k e r w as the ob lig a tio n o f the in s u r e r , not the fund. A cla u se fr o m one group
annuity co n tra ct re a d :
. . . T h is c o n tra ct m a y a ls o b e am ended in any r e s p e c t , r e t r o ­
a c tiv e ly o r o th e r w is e , at any tim e o r tim es b y w ritten a g reem en t
b etw een the c o n tr a c t h o ld e rs /Joint b o a r d 7 and . . . /th e in ­
s u r e r /.
H o w e v e r, no such am endm ent sh all a d v e r s e ly a ffe ct
any righ ts w ith r e s p e c t to an annuity p u rch a se d b e fo r e the e f fe c ­
tive date o f the am endm ent, u n less the con sen t o f any p a rticip a n t
in in te r e s t is obtain ed . . .
An additional 9 p la n s, c o v e rin g 336, 000 w o r k e r s , p r im a r ily in the ap p a rel in du s­
tr y , p u rch a se d in su re d annuities o f 1 y e a r 's duration fo r each p e n s io n e r.
The
continuance o f th ese "a n n u itie s" depended upon the annual d e c is io n o f the b o a rd
o f each fund, w h ich w a s, p re s u m a b ly , in flu en ced ch ie fly b y the a v a ila b ility o f
funds.
In co n tra st w ith w h olly in su red p la n s, the p e n s io n e rs did not have the
s e c u r ity o f an in su ra n ce co m p a n y 's o b lig a tion to fu lfill a life tim e annuity co n tra ct.
A bout 30 p e r c e n t o f the plans (including the 116 in su red p la n s), co v e rin g
about 18 p e r c e n t o f the w o r k e r s p ro h ib ite d the red u ction o f r e tir e d w o r k e r s '
b e n e fits through am endm ents to the plan.
E x am p les o f cla u se s in s e lf-in s u r e d
plans a re :
The b o a r d o f tru ste e s m ay am end o r m o d ify this plan at any
tim e in a c c o r d a n c e with the a g reem en t and d e cla ra tio n o f tru st.
H o w e v e r, b e n e fits payable to p e r s o n s r e tir e d h ereu n d er, p r io r
to am en dm en ts, sh a ll not in any event b e red u ced .
* * *
. . .
In d eterm in in g the am ount o f p en sion to b e paid , it is
and sh a ll continue to b e the p o lic y o f the jo in t co m m itte e to
m ake such paym en ts on an a ctu a ria lly sound b a s is , as the sam e
m ay b e d e te rm in e d by the jo in t com m itte e upon the a d v ice o f
its a ctu a ry , p e n sion consultants and le g a l co u n se l; keeping a
r e s e r v e at a ll tim e s s u fficie n t to m e e t com m itm en ts to m e m ­
b e r s o f the union who have r e tir e d and to m e e t paym ents due
in future y e a r s to th ose m e m b e r s o f the union who m ay r e tir e
su bsequ en tly. In no event, h o w e v e r, sh all the am ount o f p en sion
p a ya b le to m e m b e r s o f the union who have r e tir e d b e r e d u c e d . . .
F o u rte e n plans co v e rin g 27, 000 w o r k e rs p roh ib ited red u ction s u n less re q u ire d b y
the con dition o f the p e n sion fund it s e lf, as in the follow in g cla u se :
No am endm ent sh a ll b e v a lid w hich w ould red u ce the r e t ir e ­
m en t b e n e fit o f any r e tir e d e m p lo y e e , u n less a ctu a ria l sound­
n ess o f the plan w ould b e je o p a r d iz e d and a com p eten t actu ary
so c e r t ifie s .
A nother eighth o f the s e lf-in s u r e d plans co v e rin g a tenth o f the w o r k e rs
p ro h ib ite d redu cin g b e n e fits fo r r e t ir e d w o rk e rs as long as funds w e re a v a ila b le.
A cla u se illu stra tin g this a p p roa ch is :
The tru ste e s m a y am end o r m o d ify this p en sion plan at any tim e
in a c c o r d a n c e with the tru st a g re e m e n ts, e x cep t that no am end­
m en t o r m o d ific a tio n m a y red u ce any b en efits payable to a p e r ­
son w ho r e tir e d h ereu n d er p r io r to am endm ent o r m o d ifica tio n ,
so long as funds a re a v a ila b le fo r paym ent o f su ch b e n e fits,
n or m ay any am endm ent o r m o d ifica tio n r e v e r t any o f the a ss e ts
o f the p en sion fund to any e m p lo y e r . . .



75

In s e lf-in s u r e d funds, h o w e v e r, r e g a r d le s s o f the plan p r o v is io n s , in
ca se o f dim inution o f reven u e (con trib u tion s and earn in gs in v estm en ts) and a s s e ts ,
so m e poin t m a y b e re a ch e d w h e re an adjustm ent m u st b e m ade in o r d e r fo r the
plan to fu lfill its stated p u r p o se . If no adjustm ent is m ad e in the r e tir e d w o r k e r s 1
b e n e fits, the en tire bu rden fa lls on the w o r k e rs cu rre n tly em p loy ed .
F o r that
re a so n , am ong o th e r s , both o f the c o a l m ining funds have red u ced the b en efits
fo r r e t ir e d w o r k e r s and the p r o m is e d b en efits o f future r e t ir e e s .
It m u st b e e m p h a sized that this study d eals with plan p r o v is io n s , not
p r a c t ic e . The red u ction o f b e n e fits fo r r e tir e d w o r k e rs c o v e r e d by m u ltie m p lo y e r
plans has r a r e ly o c c u r r e d . On the c o n tra ry , the g e n e ra lly fa v o ra b le state o f the
e co n o m y sin c e th ese plans w e r e e sta b lish ed , com b in ed with co n se rv a tiv e funding
p r a c t ic e s and the ren eg otia tion o f e m p lo y e r co n trib u tion s, have been con d u cive to
the bu ildin g up o f substantial p e n sion r e s e r v e s in m any p la n s.
R e s tr ic tio n s on R eem p loy m en t A fte r R e tirem en t
E x ce p t fo r k eepin g tra d e s e c r e t s and s c a r c e sk ills fr o m th eir co m p e t­
it o r s , individual e m p lo y e r s u su a lly have little d e s ir e o r in te re s t in com p ellin g
the w ith draw al o f p e n s io n e r s fr o m a ll a ctiv e em ploym en t. Single e m p lo y e r p en ­
sion p la n s, t h e r e fo r e , a r e eith er silen t on w ork in g fo r oth er e m p lo y e rs a fter
re tir e m e n t o r b a r only "a ctiv ity d etrim en ta l to the in te r e s t o f the com pany. "
On the oth er hand, the in te r e s t o f unions and grou ps o f e m p lo y e rs in con trollin g
the la b o r m a rk e t is r e fle c t e d by the p r o v is io n s found in m o s t m u ltie m p lo y e r plans
r e s tr ic tin g re e m p lo y m e n t a fte r r e tire m e n t.
In this r e g a r d , the group o r a s s o ­
cia tion o f e m p lo y e r s in v o lv e d in the p en sion plan a cts as a sin g le e m p lo y e r under
an in dividu al p en sion plan , with a fa ir ly ob v iou s ru le: The w o r k e r cannot both
r e tir e and continue h is em p loy m en t with the com pan y.
In g e n e ra l, r e s tr ic tiv e
p r o v is io n s a r e c le a r ly d ir e c te d tow ards d e te rrin g r e tir e d w o r k e rs fr o m seeking
em ploym en t in d ir e c t co m p e titio n w ith oth er union m e m b e r s , o r fr o m e m p lo y ­
m en t with com petin g nonunion e m p lo y e r s , o r fr o m entering into b u sin e ss
fo r th e m se lv e s.
R e s t r ic t e d E m p loy m en t. R e s tr ic tio n s on reem p loy m en t a fter re tire m e n t
in m u lti e m p lo y e r plans contain two e ss e n tia l e le m e n ts: (1) The d efin ition o f r e ­
tire m e n t and (2) the pen alty to b e a s s e s s e d in ca s e o f v io la tio n o f the re tire m e n t
ru le. In a ddition , m any plans r e q u ire n otifica tion o f re e m p lo y m e n t, with additional
pen a lties fo r n o n co m p lia n ce .
The defin ition s o f re tire m e n t can b e c la s s ifie d in te rm s o f com p lete o r
p a rtia l w ith draw al fr o m em p loy m en t, i. e. , r e s tr ic tio n s on the p e r fo r m a n c e
o f w o rk —
(1) w ith any con trib u tin g e m p lo y e r,
(2) under the ju r is d ic t io n o f the union,
(3) in the in du stry o r c r a ft,

or

(4) in any em ploym en t.
Within th ese c la s s ific a t io n s the am ount o f em ploym en t p e rm itte d , i f any, m ay be
e x p r e s s e d in te rm s o f h ou rs o r earn in gs.
C lau ses illu stra tin g each o f these
g e n e ra l r e s t r ic t io n s a r e lis te d b e lo w :
R e s t r ic t io n

on

re e m p lo y m e n t with any con tributing

e m p lo y e r

R e tire m e n t b en e fits sh a ll b e suspended during any p e r io d in
w hich the e lig ib le e m p lo y e e retu rn s to a ctiv e s e r v ic e fo r a
c o v e r e d e m p lo y e r .



* * *

74

If any p e n s io n e r r e c e iv in g b e n efits re su m e s em p loy m en t (ex cep t
ca su a l em ploym en t) with any contributing e m p lo y e r, he c e a s e s
to b e a p e n s io n e r and h is b e n efits a re suspended a fte r the f ir s t
day o f the m onth in w hich such resu m p tion o f em p loy m en t o c c u r s .
C asual em p loym en t is that w hich is at a rate not e x ceed in g two
sh ifts w o rk e d in any p a y r o ll w eek .

If a r e t ir e d e m p lo y e e is re e m p lo y e d by one o f the e m p lo y e r s ,
the re tir e m e n t b e n e fit paym ents to h im sh all b e d iscon tin u ed . . .
p r o v id e d , h o w e v e r, that a r e tir e d em p loy ee who is r e tir e d . . .
sh a ll not have h is r e tire m e n t b en efit paym ents d iscon tin u ed if
he a c c e p ts em p loym en t when and if o ffe r e d b y the e m p lo y e rs
on a ca su a l b a s is .
C asual em p loym en t as u sed h e re in is d e ­
fin ed as em p loym en t by any o r a ll o f the e m p lo y e rs w h ere the
total w a ges ea rn ed w ill not cau se said r e tir e d em p loy ee to lo s e
any o f h is b en efits under F e d e ra l o ld -a g e and s u r v iv o r s in su ra n ce.
sje

$

*

R e s t r ic t io n on re e m p lo y m e n t w ithin the ju r is d ic tio n o f the union
In o r d e r to r e c e iv e a p e n sio n , a w o rk e r m u st r e fr a in fr o m any
w o rk w ithin the ju r is d ic tio n o f the lo c a l union, o r any oth er
lo c a l o f the in tern ation al union.
❖

* >
!<

R e s t r ic t io n on re e m p lo y m e n t in the industry
T o b e c o n s id e r e d r e tir e d under this p en sion plan, a w o r k e r
m u st r e fr a in fr o m any em ploym en t fo r w ages o r p r o fit in
the in du stry.
❖

* *

A fte r re tir e m e n t you w ill continue to r e c e iv e re tire m e n t b e n e ­
fits if you w ork in the in du stry and earn not m o r e than $ 1 ,2 0 0 in
a ca le n d a r y e a r .
se *
j

se
j

R e s t r ic t io n on any fu rth er em p loym en t o f any kind
No p e r s o n w ho has r e tir e d pursuant to the ru les and reg u lation s
sh a ll th e r e a fte r engage in w ork in any ca p a city w h a tso e v e r in
any in d u stry w hich y ie ld s h im an in co m e in e x c e s s o f the am ount
p e r m itte d at any tim e by the F e d e ra l S ecu rity A ct as m onthly
ea rn in gs fo r any r e tir e d e m p loy ee w ithout dep riv in g such e m ­
p lo y e e o f the b en efits under that A ct.
❖

*

An e m p lo y e e who r e t ir e s sh all c e a s e fr o m engaging in any e m ­
p lo y m e n t o r gainful occu p a tion .

A t le a s t 80 p e r c e n t o f the plans co v e rin g a lm o st 90 p e r c e n t o f the w ork
e r s r e s t r ic t e d re e m p lo y m e n t, but the d efin ition of what con stitu ted p roh ib ited em
p loy m en t, as p r e v io u s ly illu stra te d , v a rie d w id ely.



75

Flans
Benefits are suspended
when worker
All plans studied ---------------Works in any employment ---------Is gainfully employed -------Earns more than a specified
amount --------------------Works for a contributing employer Is gainfully employed -------Earns more than a specified
amount --------------------Works more than a specified
number of hours -----------Works in the industry or craft --Is gainfully employed -------Earns more than a specified
amount -------------- ------Works more than a specified
number of hours -----------Works in the industry or earns more
than a specified amount in any
employment --------------------Works in a job under collective
bargaining agreement with union Other ---------------------------No provision, or information
not available -----------------1
2

Workers 7
Number
(thousands) Percent

Number

Percent

736

100.0

3,229.8

100.0

6o
n

8.2
1.5

512.3
41.5

15.9
1.3

49
158
137

6.7
21.5
1 8 .6

470.8
468.4
397.6

14.6
14.5
12.3

7

1.0

47.8

1.5

14
300
268

1.9
40.8
36.4

23.0
1,397.8
1 ,16 1.8

.7
43.3
36.0

7

1.0

19.9

.6

25

3.4

2 1 6 .1

6.7

46

6.2

476.6

14.8

22
2

3.0
(2)

42.4
2.7

1.3
(2 )

148

20.1

329.8

10.2

Worker coverage includes both active and retired workers in 1959*
Less than 0,05 percent.

NOTE:

Because of rounding, sums of individual items may not equal totals.

O ver h alf o f the plans w hich r e s t r ic t e d reem p loy m en t re q u ire d w ithdraw al
fr o m em p loy m en t o r s e lf-e m p lo y m e n t within the c r a ft o r indu stry. Som e p lan s,
h o w e v e r, a llo w e d p e n s io n e r s to do a lim ite d am ount o f w ork i f th eir h ou rs o r
earn in gs did not e x c e e d s p e c ifie d lim its .
R e tire m e n t w as defin ed as w ithdraw al fr o m em p loym en t with contributing
e m p lo y e r s by about a fourth o f the p lan s.
W hile n e a rly a ll o f th ese re q u ired
co m p le te w ith draw al fr o m em ploym en t within the sco p e o f the plan, p e n s io n e rs
cou ld p re s u m a b ly w o rk fo r oth er e m p lo y e rs in the trade o r in du stry not belon gin g
to the plan.
The s c o p e o f p ro h ib ite d w ork was defin ed som ew hat m o r e b ro a d ly by
22 pla n s, co v e rin g 4 2 ,4 0 0 w o r k e r s , w hich suspended b en efits if the p e n sio n e r
w ork ed at jo b s c o v e r e d b y any c o lle c tiv e bargain in g unit o f the en tire national
union, o r , in so m e c a s e s , any one o f the lo c a l union(s) p a rticip a tin g in the plan.
A nother 46 plans co v e rin g about 15 p e rce n t o f the w o r k e r s , m ain ly in the g a r ­
m ent tr a d e s , app lied 2 r e tire m e n t r e s tr ic tio n s : (1) The w o r k e r cou ld not b e c o m e
re e m p lo y e d in the in du stry, and (2) he cou ld not earn in e x c e s s o f a s p e c ifie d
sum in any em ploym en t.
F o r ex a m p le, one such plan stated:

No p e r s o n w h ose a p p lica tion fo r re tire m e n t has b een a p p roved
sh a ll th e re a fte r engage in the industry in any ca p a city w h a tso­
e v e r eith er as e m p lo y e e o r e m p lo y e r, d ir e c tly o r in d ir e ctly ;
n or m a y such p e r s o n do any w ork in any ca p a city w h a tsoev er




76

in any oth er in du stry w hich y ie ld s him an in co m e in e x c e s s o f
the am ount p e rm itte d to b e earn ed under the F e d e r a l S o cia l
S e cu rity A c t b y w o r k e r s r e ce iv in g o ld -a g e b en efits in e m p lo y ­
m en t c o v e r e d by the A ct. 32
Sixty p la n s, co v e rin g about 6 p e r c e n t o f the w o r k e r s , re q u ire d co m p le te ,
o r a lm o st c o m p le te , w ith draw al and continued abstention fr o m em p loym en t o f any
kind. T h ese r e s t r ic t io n s on em ploym en t w e re a p p lica b le in about 1 out o f 7 plans
if the w o r k e r ea rn ed m o r e than a s p e c ifie d am ount o r w ork ed m o r e than a ce rta in
n u m ber o f h o u rs.
M ost o f the plans that suspended b en efits if the p e n s io n e r
w o rk e d at any em p loy m en t w a ived the su sp en sion if his earn in gs w e re b elow a
ce rta in am ount; but on ly r a r e ly did plans with m o r e lim ite d r e s tr ic tio n s w aive
su sp en sion .
M axim um E arn in gs T e s t s . A bout th re e -fo u rth s o f the 100 plans with a
m axim u m earn in gs te st u sed the earn in gs te st fo r re tire m e n t under the S o cia l
S ecu rity A ct. 33 F o r ex a m p le , one plan stated that:
Such r e tir e d p e r s o n sh all not engage d ir e c tly o r in d ire ctly in
any ca p a city in any in du stry w hich w ill y ie ld him an in co m e in
e x c e s s o f the am ount p e rm itte d to b e earn ed under the F e d e ra l
S o c ia l S ecu rity A ct.
The rem ain in g plans s p e c ifie d m onthly o r annual d o lla r lim its .
Som e o f these
plans w e r e p ro b a b ly w ritten to co n fo rm with the s o c ia l s e c u r ity re tire m e n t test,
but w e r e ou tm oded by the I960 and 1961 am endm ents to the S o cia l S ecu rity A ct.
Illu stra tion s o f plan p r o v is io n s
am endm ents a re . as fo llo w s :

s im ila r to the p r e -1 9 6 0 s o c ia l s e c u r ity

A n o r m a l p e n s io n e r m ay engage in lim ite d
w hich . . . m ean s em p loym en t o r a ctiv ity
in any kind o f w o rk r e g u la rly p e r fo r m e d
union . . . p ro v id e d earn ings fr o m such
sh a ll not e x c e e d $100 a m onth.
5jc

5jC

ou tside em p loy m en t
e x cep t em ploym en t
by m e m b e rs o f the
ou tside em ploym en t

9jC

. . . to b e c o n s id e r e d r e tir e d under this p en sion plan, a p e r ­
son m u st r e fr a in fr o m any em ploym en t fo r w ages o r p r o fit in
w hich h is earn in gs sh all a g greg a te m o r e than $ 1 ,2 0 0 in any
1 ca len d a r y e a r . . .
G e o g ra p h ic L im it s .
A lm o st 60 p e rce n t o f the p la n s, co v e rin g o v e r
75 p e r c e n t o f the w o r k e r s , in w hich reem p loy m en t w as r e s tr ic te d p la ce d no g e o ­
gra p h ic lim it on the r e s tr ic tio n .
One ty p ica l plan stated, fo r ex am p le, that:
T h e re sh a ll b e no lim it to the g eog ra p h ic a rea c o v e re d .

32 This cla u se b e c a m e am biguous when the A ct w as am ended in 1954 to
p e r m it earn in gs in any am ount, the red u ction o f o ld -a g e b en efits depending on
both the am ount o f earn in gs in each m onth and in each y e a r . (See footn ote 33. )
33 The S o c ia l S e cu rity A ct c u rre n tly (M ay 1962) p r o v id e s fo r w ithholding
$ 1 o f the fa m ily s o c ia l s e c u r ity b e n efit fo r each $2 o f annual earnings betw een
$ 1 ,2 0 0 and $ 1 ,7 0 0 , and d o l l a r - f o r - d o l la r above that am ount. H ow ev er, ben efits
a r e not w ithheld fo r any m onth that earnings a re b e lo w $100 o r earn ed a fter
age 72.



77

Plans
Geographic limits of
reemployment after
retirement

Workers 1

Number

Percent

Number
(thousands)

Percent

All plans with restrictions ---------

588

1 0 0.0

2 ,9 0 0 .0

1 0 0 .0

Unlimited geographic application ---Limited geographic application ------

336
252

57.1

2 ,2 6 6 .6
63 3.4

7 8 .2
2 1 .8

^

4 2 .9

Worker coverage includes both active and retired workers in 1959*

NOTE:

Because of rounding, sums of individual items may not equal totals.

The rem ain in g p la n s, eith er e x p lic itly o r im p licitly , lim ite d the r e s tr ic tio n
to the g e o g ra p h ic a re a c o v e r e d b y the plan, i. e ., State, county, city, o r m e t r o p o l­
itan a re a . E x cep t fo r a few nationw ide p la n s, plans defining re tire m e n t as w ith ­
draw al fr o m em p loy m en t with con tributing e m p lo y e rs im p lic itly set g e o g ra p h ic
lim its . E n fo rce m e n t o f w o rk r e s t r ic tio n s ou tside the im m ed ia te a rea o f the plan
is , o f c o u r s e , d iffic u lt; apart fr o m volu n tary d is c lo s u r e by the individual p e n s io n e r,
it u su a lly r e q u ir e s the m ain ten an ce o f ce n tra l r e c o r d s — a task w hich few , if any,
national and in tern ation al unions a re able and w illin g to p e r fo r m .
P e n a ltie s .
O v er 3 out o f 5 plans re s tr ic tin g em p loym en t rem ov ed the
w o r k e r fr o m the p e n sion r o lls during the p e r io d o f reem p loy m en t.
T y p ica l o f
such cla u se s is one readin g:
If a p e n s io n e r b e c o m e s an e m p loy ee as above d efin ed ,
sion sh all term in a te as o f the fir s t day o f the m onth
he b e c o m e s such e m p lo y e e , and he sh all again b e c o m e
b e r o f the plan.
Upon subsequent re tire m e n t under
he sh all again b e entitled to r e c e iv e a p en sion .

his p en ­
in w hich
a m em ­
the plan,

Som e o f th ese plans re m o v e d offending p e n s io n e rs fr o m the ro le s fo r a m in im u m
length o f tim e— u su a lly fo r 6 m onths o r a y e a r.

Plans

Workers1

Length of suspension

for engaging in
restricted employment

Number

Percent

All plans with employment restrictions —

588

100.0

Period of reemployment -----------------Without minimum suspension period --With minimum suspension period -----6 months* minimum---------------1 year minimum-----------------Suspension period in addition to
reemployment period ------------------Discretion of board ----------------1 month ---------------------------3 months --------------------------6 months --------------------------12 months -------------------------First time, 6 months; second time,
l i f e .............................
First time, 6 months; second time,
6 months; third time, life -------Other specified periods ------------L i f e ...................................
Other penalties ------------------------

365
321
44
24
20
187
36
9
30
72
11




*

Number
(thousands) Percent
2 ,9 0 0 .0

100.0

6 2 .1

1,866.1

54.6
7.5
4.1
3.4

1 ,4 3 6 .9
42 9.2
11 1.6
3 1 7 .6

64.3
^9.5
14.8
3.8
11.0

31.8
6.1
1.5
5.1
12.2
1.9

882.5
14 7.6
2 8 .8
430.3
2 1 9 .6
29 .3

30.4
5.1
1.0
14.8
7.6
1.0

9

1.5

5 .6

.2

3
17
19
17

.5
2.9
3.2
2.9

2 .1
1 9 .1
4 4 .7
10 6.7

.1
.7
1.5
3.7

Worker coverage includes both active and retired workers in 1959•

NOTE:

Because of rounding, sums of individual items may not equal totals.

78

The rem ain in g plans a s s e s s e d an additional penalty. M ost o f th ese plans
suspen ded b e n e fits fo r an addition al s p e c ifie d p e r io d — u su ally fo r 3 o r 6 m onths.
The pen alty w as le ft to the d is c r e tio n o f the b o a rd b y 36 p la n s, co v e rin g 5 p e r ­
cen t o f the w o r k e r s . The m a xim u m penalty— the perm an en t lo s s o f a ll rights to
p e n sion b e n e fits— w as a u tom a tica lly im p o se d by only 19 pla n s.
The follow in g
c la u se s illu str a te th ese types o f p r o v is io n s :
The g r e a te r o f tim e o r re e m p loy m en t o r fix e d p e r io d
. . . p e n sio n paym en ts sh all ce a s e fo r so long as he sh all c o n ­
tinue to b e em p loy ed in the in du stry o r fo r 1 y e a r , w h ich ev er
p e r io d is g r e a te r .
T h e re a fte r his right to p en sion paym ents
sh a ll r e c o m m e n c e .
* * *
S p e c ifie d duration
If a r e tir e d m e m b e r . . . re e n te rs industry and a cce p ts e m ­
p lo y m e n t . . . with any e m p lo y e r, p en sion paym en ts sh all
im m e d ia te ly c e a s e and m a y be resu m ed only by re a p p lica tion to
the jo in t co m m itte e not le s s than 6 m onths a fter he has t e r ­
m in a ted em ploym en t.
D is c r e tio n o f b o a r d
If a p e n s io n e r w o rk s in v io la tio n o f this s e ctio n , he m ay b e
d isq u a lifie d , at the so le d is c r e tio n o f the tru s te e s , fo r re c e iv in g
o r bein g en titled to any p e n sion b en efits fr o m the p en sion plan.
S
je

❖

S p e c ifie d additional su sp en sion p e r io d
If a p e n s io n e r . . . en ters such em ploym en t o r a ctiv ity , p en sion
b e n e fits sh a ll not b e payable fo r the m onths o f such a ctiv ity
plu s 6 addition al m onths.
A p e n s io n e r who b e c o m e s re e m p lo y e d in the in du stry sh all fo r fe it
a ll righ t to b e n e fit paym en ts due on o r a fte r the fir s t day of
such em ploym en t. If the e m p loy ee again r e tir e s and re a p p lies
fo r re tir e m e n t b en efit, and is oth e rw ise q u a lified , subsequent
b e n e fit paym ents w ill b eg in on the fir s t day o f the ca len d a r
m onth w hich is m o r e than 90 days a fter h is subsequent r e t ir e ­
m ent date.
3flc

*

5je

L o s s o f a ll righ ts to a p en sion
In the event that such r e tir e d m e m b e r o f the union re e n te rs the
in du stry and a c c e p ts em ploym en t as a m e m b e r o f the union with
any e m p lo y e r h is pen sion paym ents sh all im m ed ia tely c e a s e and
he sh a ll not th e re a fte r b e c o v e r e d by any o f the p r o v is io n s o f
the plan.



7*

N o tifica tio n . T o fa c ilita te p o licin g the reen try o f w o r k e rs into p roh ib ited
em ploym en t, about 40 p e r c e n t o f the plans with re tire m e n t r e s tr ic tio n s a ls o r e ­
q u ired n o tifica tio n o f ree m p lo y m e n t. Som e plans a s s e s s e d p en a lties (in addition
to th ose ju s t d is c u s s e d ) in c a s e o f n on n otification .
The m a jo r ity o f the plans re q u ire d that the w o r k e r n otify the a d m in istra ­
to r w ithin a g iven p e r io d o f tim e a fter em ploym en t w as s e c u r e d , eith er within
1 w eek , 2 w e e k s, o r a m onth. The rem aining plans re q u ire d eith er p ro m p t o r
advance w ritten n o tifica tio n o f ree m p loy p ien t by a r e tir e d w o rk e r.
Plans

Workers 1
Number
(thousands) Percent

Number

Percent

All plans requiring notification ---- ....

228

1 0 0 .0

953.4

1 0 0 .0

Advance written notification -----------Promptly --------------------------- ---Within a specified time of
reemployment --------------------- ---1 week ------------------------- ---2 weeks ------------------------ ---1 month ------------------------ ----

25
72

1 1 .0

31.6

47.0
458.8

48.1

131
35
72
24

57.5
15.4
31.6
10.5

Period of notification

447.6
8 7 .6

265.4
9 6 .6

4.9
46.9
9.2
2 7 .6
1 0 .1

Worker coverage Includes both active and retired workers in 1959*
NOTE:

Because of rounding, sums of individual items may not equal totals.

One out o f fou r plan s req u irin g n otifica tion did not im p o s e an additional
penalty fo r not filin g a n o tic e , i. e. , the w o r k e r w as r e s p o n s ib le only fo r the
retu rn o f b e n e fits r e c e iv e d in v io la tion .
One plan rea d , fo r ex a m p le:
Any p e n s io n e r who a cce p ts such em ploym en t within the t e r r i ­
t o r ia l ju r is d ic tio n o f the union, but fa ils to n otify the o ffic e o f
the tru st fund w ithin 1 w eek , sh all b e re q u ire d to r e im b u r s e the
tru st fund fo r a ll such p en sion paym ents a cce p te d in v iola tion
o f the p en sion plan.
Plans

Workers1

Penalty in case of
nonnotification

Number

Percent

Number
(thousands)

Percent

All plans requiring notification -------

228

1 0 0 .0

953.4

1 0 0 .0

53
139
37
4
12
11

2 5 .4
6 1 .4
1 6 .2
1 .8
5 .3
4 .8

1 5 1 .6
68 9.5
109.3
2 6 .7
3 7 .3
1 9 .0

15.9
72.4
11.5
2.8
3.9
2.0

10
103
16

4.4
45.2
7.0

26.3
5 8 0 .2
3 9 .6

2 .8
6 0 .9
4 .2

4

1 .8

28.8

3.0

47

20.6

1 5 1 .6

15.9

1

.4

1.4

.1

35

15.4
11.4
1.8

3 5 8 .8

37.7
6.7
5.0

Reimbursement of benefits received in
violation only ---------------------Additional suspension periods ---------Fixed penalty---------------------3 months* benefits omitted ----6 months* benefits omitted ----12 months* benefits omitted ---Double number of months of
reemployment ----------------No fixed penalty ------------------Discretion of board -------- ------Discretion of board, 6-month
maximum ------------------------Discretion of board, 12-month
maximum ------------------------Discretion of board, 18 -month
maximum ------------------------Discretion of board, disqualification authorized -------------Forfeiture of all future benefits -----Other penalties -----------------------




26

4

64.2
48.0

Worker coverage includes both active and retired workers in 1959*
NOTE:

Because of rounding, sums of individual items may not equal totals.

80

H ow ev er, 47 plans im p o se d a fix e d penalty b y om itting a s p e c ifie d num ­
b e r o f m onthly b en efit paym en ts due the e rrin g p e n s io n e r, u su ally 6, 12, o r
double the m onths o f re em p loy m en t. F o r t y -fiv e p e rce n t o f the plans with n o tifi­
cation p r o v is io n s le ft the pen alty to the d is c r e tio n o f the b o a rd , u su ally setting
a m a xim u m o f 12 m onths o f b e n e fits.
In a third o f such p la n s, the b o a rd did
have d is c r e tio n a r y p o w e r to suspend b en efits p erm an en tly— a penalty au tom a tica lly
in voked in 26 oth er plan s.
Som e ex am p les o f n otifica tio n cla u se s c la s s ifie d by
the pen a lties fo r fa ilu re to g iv e tim e ly n otice a r e :
12-m onth d isq u a lifica tio n p e r io d
A r e tir e d e m p lo y e e sh all n otify the b o a rd o f tru ste e s in w ritin g
w ithin 15 days follow in g h is return to em ploym en t fo r w ages o r
p r o fit in the in du stry.
If he fa ils to g ive such n o tice w ithin
such 15-d a y p e r io d , he sh all be d isq u a lifie d fo r an additional
p e r io d o f 12 m onths o v e r and above the d isq u a lifica tio n p e r io d
o f the p r e c e d in g su b se ctio n .
A p e n s io n e r sh a ll n otify the tru stees in w ritin g within 15 days
a fte r he retu rn s to em p loym en t in the cra ft. If he fa ils to g ive
such w ritten n o tice w ithin 15 d a y s, he m ay be d isq u a lified fo r
b e n efits fo r an additional p e r io d o f 12 m onths (o v e r and above
the d isq u a lifica tio n p e r io d o f the p re ce d in g su b se ctio n ), as the
tr u s te e s d eterm in e in th eir s o le d is c r e tio n .

F o r fe itu r e o f b en efits r e c e iv e d during reem p loy m en t
A p e r s o n who has b een r e tir e d by the re tire m e n t fund . . .
is
re q u ire d in each c a s e to r e p o rt to the re tire m e n t fund, in w ritin g ,
any em ploym en t w h ich he obtains . . . Any p e r s o n who b r e a c h e s
this regu lation in any r e s p e c t sh all forthw ith r e s to r e to the r e ­
tire m e n t fund a ll b e n e fits r e c e iv e d fo r the p e r io d o f r e e m p lo y ­
m en t o r lo s e a ll rights to r e c e iv e retire m e n t b en efits again.
Any p e n s io n e r who a cce p ts such em ploym en t within the j u r i s ­
d ictio n o f the union, sh all within 1 w eek o f com m e n ce m e n t o f
such em ploym en t, give n o tice th e re o f to the fund o ffic e .
Any
p e n s io n e r who . . . fa ils to n otify the o ffic e o f the tru st fund
w ithin 1 w eek sh all be r e q u ire d to re im b u rse the tru st fund fo r
a ll such pen sion b en efits a c ce p te d in v iola tion o f the p en sion plan.

F o r fe itu r e o f a ll future p e n sion b en efits
F a ilu re to n otify the b o a rd w ithin 30 days after his retu rn to
em p loym en t sh all be c o n s id e re d a w a iv e r of any rights he m ay
have to future pen sion b e n e fits, and such w a iv er sh all be final
and binding on the e m p lo y e e ; the b o a rd sh all have no d is c r e tio n
w h a tso e v e r in the a p p lica tion o f this p ro v is io n .
F a ilu re o f a p e n s io n e r to n otify the tru ste e s o f his r e e m p lo y ­
m ent in the trade w ithin 3 days a fter his return to such e m ­
p loy m en t sh all be d eem ed a w a iv e r of any rights he m ay have
to future pen sion b e n e fits. This p r o v is io n shall apply each tim e
the p e n s io n e r retu rn s to em p loym en t in the trade a fte r the date
o f co m m e n ce m e n t o f re tire m en t.



81

The s e v e r ity o f th ese p en a lties is ju s tifie d by m any tru ste e s as n e c e s s a r y
to e n fo r c e the reem p loy m en t p r o v is io n . They usually try to m itig a te the h a rs h ­
n e ss o f the ru le s b y giving each p e n s io n e r frequ en t w arnings when he r e tir e s and
w h ile he is in re tire m e n t. The a d m in istra to rs of m o s t m u ltie m p lo y e r plans try
to p rev en t m isu n dersta n din gs and undue hardship on the r e tir e d w o rk e r by e x ­
plaining the ru les in c le a r language to each r e tir e d w o rk e r both in p e r s o n and in
w ritin g .
A p p lica tion fo r m s a re often u sed fo r this p u rp o se , but m any, such as
the fo llo w in g , fa il to m en tion the pen a lties fo r v iolatin g the r e s tr ic tio n s on
reem p loy m en t:
I a g re e to n otify the pen sion fund in w ritin g o f any and a ll e m ­
ploy m en t in w hich I sh all b e c o m e engaged w h ile in r e c e ip t o f
p en sion .
It is u n d erstood that I m ay not b e reen g aged in the
in du stry o r any b ra n ch th e re o f . . . w hile in r e c e ip t o f a p en ­
sion , and sh all im m e d ia te ly notify the p en sion fund in w riting
if I do b e c o m e so engaged.
The a pp lica tion u sed b y another plan im p osin g p en a lties a lso fa ile d to m ention
them by the follow in g language:
I understand that I m u st w ithdraw co m p le te ly and re fra in fro m
any fu rth er em ploym en t within the ju r is d ic tio n o f the lo c a l
union . .
in the . . . industry.
P r e c e d e n c e to A s s e ts in C ase o f T erm in a tion o f the Plan
T o qu alify fo r tax exem ption under the Internal R evenue C o d e ,34 p en sion
plans are r e q u ir e d to have a p r o v is io n determ in in g the d istrib u tion o f the fu n d s’
a ss e ts on a n o n d iscrim in a to ry b a s is in ca se the plan is term in ated; i. e. , the
rights o f all p a rticip a n ts in the plan a re to be fu lly v e ste d upon term in ation .
During the life o f m o s t m u ltie m p lo y e r p la n s, as w e ll as m o s t sin gle e m p loy er
pla n s, e c o n o m ic con dition s have b een e x tre m e ly fa v o ra b le fo r the accu m u lation
o f p en sion r e s e r v e s ; but during a p e r io d o f p ro lo n g e d r e c e s s io n , term in ation
cla u se s m ay be a valu a ble p r o te c tio n o f the right o f plan pa rticip a n ts to plan
a s s e ts . B e ca u se o f the w ide d iv e r s ity and co m p le x ity o f th ese cla u ses found in
m u ltie m p lo y e r pen sion p la n s, no attem pt was m ade to analyze them in d eta il.
Som e o f the cla u se s found in the plans a llow ed co n s id e ra b le d is c r e tio n
to the b o a rd , as fo r exa m ple:
. . . If . . . eith er at the ex p ira tion o f the ex istin g c o lle c tiv e
bargain in g a g reem en ts o r at som e future date, p r o v is io n shall
c e a s e to b e m ade fo r fu rth er con trib u tion s to the re tirem en t
fund, the b o a rd o f tru ste e s shall then m ake such p r o v is io n s as
it m ay deem a p p rop ria te to enable it to continue, out o f m on ies
then on hand in the re tire m e n t fund, the paym ent o f re tirem en t
b en efits to w o r k e rs who have a lrea d y been granted the sam e,
and sh all apply the re m a in d e r, if any, o f the m on ies in the r e ­
tire m e n t fund to p ro v id e re tire m e n t ben efits fo r additional w o rk ­
e r s in such fo r m and am ounts and on such an equitable and non­
dis c r im in a to r y b a s is as the b o a rd o f tru ste e s sh all determ in e.
In no event sh all any o f the m on ies in the fund r e v e r t o r be
d iv e rte d to the p a rticip a tin g e m p lo y e rs o r to the union o r to be
used fo r any p u rp o se oth er than the paym ent o f b en efits to the
w o r k e rs o r fo r ex p en ses in con n ection therew ith.
34

Internal Revenue Code,




1954,

section 401a.

82

M ost m u ltie m p lo y e r p en sion p lan s, h ow ev er, had d eta iled term in ation
p r o c e d u r e s , illu stra te d by the follow in g ex a m p les.
The fir s t plan quoted b elow
p ro v id e d p e n sion b en efits in ca se o f plan term in ation in the follow in g o r d e r :
(1) R e tir e d w o r k e r s , (2) w o r k e rs o v e r the n orm a l re tire m e n t age o f 65, (3) w o r k ­
e r s e lig ib le fo r e a r ly re tire m e n t, (4) v e ste d w o r k e r s , including th ose p r e v io u s ly
v e ste d , and (5) a ll o th e rs.
(c)

If the b oa rd te rm in a te s the plan in a c c o r d a n c e with se ctio n 1
o f this a r t ic le , the r e a liz a b le value o f the tru st fund r e ­
m aining a fte r p ro v id in g fo r the exp en ses o f the plan and o f
the tru st fund, sh all be a llo ca te d by the b oa rd , to the extent
that they sh all be su fficien t, fo r the p u rp o se o f paying p e n ­
sion s (b a sed on cre d ite d s e r v ic e to the date o f d isco n tin u ­
an ce o f the plan) to em p loy ees in the follow in g o r d e r
of precedence:
(1)

(2)

T o p ro v id e p e n s io n s , ca lcu la ted , b a se d upon re tire m e n t
at age 65, under the te rm s of the plan, as if it w e re
in e ffe c t, to e m p lo y e e s e lig ib le fo r e a rly re tire m e n t on
the date o f d iscon tin u an ce, without r e fe r e n c e to the
o r d e r in w hich they shall rea ch age 65;

(4)

T o p r o v id e p e n s io n s , ca lcu la ted , b a s e d upon retire m e n t
at age 65, to e m p loy ees who as o f the date o f d is c o n ­
tinuance had both (i) attained age 55 but not age 60 and
(ii) co m p le te d at le a st 25 y e a rs o f c r e d ite d s e r v ic e ,
and fo r m e r e m p loy ees then e lig ib le fo r , but not yet
r e c e iv in g , a v e ste d d e fe r r e d p en sion , without r e fe r e n c e
to the o r d e r in w hich they shall rea ch age 65; and

(5)




T o p r o v id e p en sion s upon re tire m e n t under the te rm s
o f the plan, as if it w ere in e ffe ct, to em p lo y e e s age
65 o r o v e r on the date o f d iscon tin u an ce, without r e f e r ­
en ce to the o r d e r in w hich they shall have rea ch ed
age 65;

(3)

(d)

To p r o v id e p en sion s to em p loy ees who sh all have r e ­
tir e d under the plan p r io r to its d iscon tin u a n ce, without
r e fe r e n c e to the o r d e r o f re tire m e n t; and to fo r m e r
e m p lo y e e s then r e ce iv in g a v ested d e fe r r e d p en sion
under the plan;

T o p ro v id e p e n s io n s , ca lcu la ted , b a se d upon retire m e n t
at age 65, under the te rm s o f the plan, as if it w e re
in e ffe c t, to a ll e m p loy ees not in cluded in (1), (2), (3),
o r (4), without r e fe r e n c e to the o r d e r in w hich they
sh all re a ch age 65.

If the fund is in su fficie n t to p r o v id e in full fo r the pen sion s
under any o f the p a ra grap hs in su b section (c) above after
p r o v is io n fo r a ll p en sion s under p re v io u s p a ra g ra p h s, each
p e n sion under such paragrap h as to w hich the funds a re
in su fficie n t sh all be red u ced p ro rata.
P r o v is io n m ay be
m ade by the b o a rd fo r the paym ent o f p en sion s under this
a r t ic le subsequent to the term in ation o f the plan through
(i) continuance o f the trust fund, (ii) p u rch a se o f in su ra n ce
com pan y annuity co n tr a cts, (iii) d isb u rsem en ts in cash o f
the a ctu a ria l equ ivalen t of such p e n s io n s , o r (iv) any c o m ­
bin ation o f th ese. Under no c ircu m s ta n ce s shall any p o rtio n
o f the tru st fund b e payable to o r fo r the b en efit of any
p a rticip a tin g com pan y, the union, o r any s u c c e s s o r c o m ­
pany o r union.

83

The follow in g exam ple is s im ila r to the p re v io u s one ex cep t that ben efits
fo r d isa b ility re tire m e n t a re in clu d ed, and b en efits fo r e a r ly retire m e n t and
vestin g a re ex clu d ed :
A r t ic le X— T erm in ation o f the P lan
1.

F o r the p u rp o se o f this a r t ic le , the plan sh all b e co n s id e r e d
to b e term in a ted if discon tin u ed by a m a jo r ity o f the m e m ­
b e r e m p lo y e rs with the con sen t o f the union. In the event
o f such term in a tion the a ss e ts then rem aining in the tru st
fund, a fter p ro v id in g fo r the ex p en ses o f the plan, sh all b e
a llo ca te d , to the extent that they sh all b e su fficie n t, fo r the
p u rp o se o f paying r e tire m e n t and d isa b ility b en efits (based
on c r e d ite d s e r v ic e to the date o f discon tin u an ce o f the plan)
to r e tir e d and p r e s e n t m e m b e r e m p lo y e e s in the follow in g
ord er of preced en ce:
(a)

(b)

T o p r o v id e d isa b ility b en efits fo r all m e m b e r e m p lo y ­
e es then cu rre n tly r e ce iv in g such b en efits without r e f ­
e r e n c e to the o r d e r in w hich they sh all have b e c o m e
e lig ib le fo r such b e n e fits;

(d)

T o p ro v id e re tire m e n t b e n e fits , with a ll rem aining
funds, upon n o rm a l re tire m e n t to all rem aining m e m ­
b e r e m p lo y e e s on the date o f d iscon tin u a n ce, without
r e fe r e n c e to the o r d e r in w hich they sh all re a ch th eir
n o rm a l r e tire m e n t age; and

(e )




T o p ro v id e n o rm a l re tire m e n t b en efits upon retire m e n t
to e m p lo y e e s aged 65 o r o v e r on the date o f d is c o n ­
tinuance, without r e fe r e n c e to the o r d e r in w hich they
sh all have re a ch e d the age o f 65;

(c )

2.

T o p ro v id e re tire m e n t b en efits to em p lo y e e s who shall
have r e tir e d under the plan p r io r to its discon tin u an ce,
w ithout r e fe r e n c e to the o r d e r o f re tire m e n t;

In the event the a s s e ts o f the tru st fund a re in su fficien t
to p ro v id e in fu ll fo r the re tire m e n t and d isa b ility
b en e fits in the above o r d e r o f p r e c e d e n c e , each b en efit
payable to the m e m b e r em p lo y e e s in the c la s s in w hich
th ere is a d e fic ie n c y shall be red u ced p r o rata; su b ject
to the fo re g o in g p r o v is io n s as to p r o rata red u ction ,
a ll b e n e fits sh all b e payable in full in the o r d e r o f th eir
p r e c e d e n c e to the e x clu s io n o f all c la s s e s with lo w e r
p r io r it y .

Such a llo ca tio n sh all b e a cco m p lish e d through eith er (1) c o n ­
tinuance o f the tru st fund o r a new tru st fund, o r (2) p u r ­
ch a se o f in su ra n ce annuity co n tra cts; p ro v id e d , h ow ev er,
that the tru ste e s upon finding that it is not p r a c tic a b le o r
d e s ir a b le under the c irc u m s ta n ce s to do eith er o f the f o r e ­
going with r e s p e c t to so m e o r all o f the g rou p s lis te d above,
m a y , with the unanim ous con sen t o f all tru s te e s , p ro v id e
fo r som e a llo ca tio n o f a p a rt o r all o f the a ss e ts o f the
tru st fund oth er than the continuance o f a tru st fund o r the
p u rch a se o f in su ra n ce annuity co n tra cts with r e s p e c t to any
o r a ll such grou ps p ro v id e d , h ow ev er, that no change shall
b e e ffe cte d in the o r d e r o f p r e c e d e n c e and b a s is fo r a llo c a ­
tion above esta b lish ed .

84

In the follow in g ex a m p le, em p loy ee con trib u tion s
p r o v is io n had been m ade fo r r e tir e d w o r k e rs .
A r t ic le VI.

w e re

retu rn ed a fter

A m endm ent and T erm in a tion

S ection 2.
D isco n tin u a n ce .
If the plan is d iscon tin u ed , the
a s s e ts then rem ain in g in the p en sion fund (a fter p rov id in g the
ex p en ses o f the plan), sh a ll be a lloca ted to the extent that they
sh all be su fficie n t, fo r the p u rp o se o f paying re tire m e n t ben efits
(b a sed on cr e d ita b le s e r v ic e to the date o f discon tin u a n ce o f the
plan) to r e t ir e e s in the follow in g o r d e r o f p r e c e d e n c e :
(a)

T o p r o v id e th eir re tire m e n t ben efits to p e n s io n e rs who shall
have r e tir e d under the plan p r io r to its d iscon tin u a n ce,
w ithout r e fe r e n c e to the o r d e r o f retire m e n t;

(b)

T o p r o v id e the refund to e m p lo y e e s o f th eir own co n trib u ­
tion s to the p en sion fund;

(c)

T o p r o v id e n o rm a l o r red u ced p en sion s to e m p lo y e e s aged
65 o r o v e r on the date o f d iscon tin u an ce, without r e fe r e n c e
to the o r d e r in w hich they shall have rea ch ed n o rm a l r e ­
tire m e n t age; and

(d)

T o p ro v id e n o rm a l o r red u ced p en sion s upon attainm ent o f
age 65 to e m p lo y e e s le s s than 65 y e a r s o f age on the date
o f d iscon tin u a n ce, in the o r d e r in w hich they sh all attain
age 65.

In no event sh all any o f the a ss e ts o f the p en sion fund re v e rt
to , o r b e su b je ct to, any cla im s o f any kind o r nature by
the e m p lo y e r s .
U nder the follow in g cla u se , the funds rem aining a fte r p r o v is io n has been m ade
fo r r e tir e d w o r k e rs and th ose o v e r age 65, a re to be d istrib u ted to the rem aining
m e m b e r s a cc o r d in g to p e n sion c r e d its they have accu m u lated.
S e ctio n 9.
T e rm in a tio n .
The plan m ay be term in ated by the
b o a rd only with the con sen t o f the union and the e m p lo y e r a s s o c i ­
ations who a re then p a rties to the tru st a g reem en t, and in such
event a ll o f the funds o f the plan, after n e c e s s a r y and rea son a b le
e x p e n se s, shall be used fo r the e x clu s iv e ben efit of m e m b e rs and
p en sion ers under the plan and shall be a llo ca te d in sh a res d e t e r ­
m ined by the b oa rd on the b a sis o f a ctu a ria l valuation, in the f o l ­
low ing o r d e r :




F ir s t , each p e n sio n e r shall be entitled to a sh a re equal to
the r e s e r v e com pu ted to be req u ire d fo r his p en sion ; and
S econ d, each m e m b e r who has rea ch ed his 65th birthday
sh all be entitled to a sh are equal to the r e s e r v e com puted
to be re q u ire d fo r h is pen sion c r e d its ; and
T h ird, each oth er m e m b e r shall be entitled to a sh a re equal
to the r e s e r v e com pu ted to be req u ired fo r his p en sion c r e d ­
its; p ro v id e d that
If the funds o f the plan a re in su fficie n t to p r o v id e in fu ll
fo r the sh a re s under any o f above pa ra g ra p h s a fter p r o ­
v is io n fo r a ll sh a res under p re v io u s p a ra g ra p h s, each sh are
•under such pa ra g ra p h s as to w hich the funds a re in su fficien t
sh a ll be red u ced p r o rata.

The b o a rd m ay r e q u ir e that all sh a res be w ithdraw n in ca sh o r
in im m ed ia te o r d e fe r r e d annuities o r oth er p e r io d ic a l paym ents
as the b o a rd m ay d e te rm in e.
P r o te c tio n o f P e n sio n C red its in C ase o f W ithdraw al o f an Individual
E m p lo y e r . When an individual e m p lo y e r w ithdraw s fr o m a plan, h is e m p lo y e e s 1
re la tio n sh ip with the plan is a ls o u su ally s e v e r e d , u n less they tra n s fe r to oth er
p a rticip a tin g e m p lo y e r s , u su a lly within the tim e p r e s c r ib e d by the b r e a k -in s e r v ic e ru le.
F o r exa m ple, so m e plans s p e c ific a lly stated that:
. . . When an e m p lo y e r c e a s e s to be a p a rty to this ag reem en t,
no addition al p e n sion c r e d its w ill a c c r u e to the e m p lo y e e s o f
such e m p lo y e r until they b e c o m e em p loy ed by a p a r tic ip a t­
ing e m p lo y e r . . .
* * *
. . . an e m p lo y e r is d e c la r e d by the tru ste e s to have ce a s e d
p a rticip a tio n in the fund b e ca u se o f fa ilu re o f the em p lo y e r to
m ake con trib u tion s to the pen sion fund, as re q u ire d by the e m ­
p l o y e e s c o lle c t iv e ba rga in in g a g reem en t with the D is tr ic t C oun­
c il, it sh all be d eem ed a term in a tion o f p a rticip a tio n by that
e m p lo y e r and the fo llo w in g shall apply:
(a)

E m ploym en t by that e m p lo y e r a fter term in a tion shall not be
cre d ite d as c o v e r e d em ploym en t; and

(b)

E m ploym en t by that e m p lo y e r p r io r to term in a tion shall s till
be cre d ite d under this plan, ex cep t if a b re a k in e m p lo y ­
m ent as defin ed in A r t ic le III, se ctio n 5, is in cu rre d ; and

(c)

T h ere sh all be no refund o f con trib u tion s o r r e v e r s io n o f
a ss e ts to a term in a ted e m p lo y e r, d ir e c tly o r in d ire ctly ,
o r to a pen sion tru st o r annuity co n tra ct o r p en sion plan
o f a term in a ted e m p lo y e r . . .

H ow ever, 45 plans with n e a rly 2 73,000 w o rk e rs
te ctio n to e m p lo y e e s o f w ithdraw ing e m p lo y e rs .

p ro v id e d som e additional p r o ­

Plans

Workers1

Provision if an employer
withdraws from the plan

Number

Percent

All plans ---------------------------

736

100.0

3 ,2 2 9 .8

100.0

Plans with withdrawal provisions ----Worker may contribute -----------Fund allocated to workers -------Service credits retained — ------Break-in-service provision applies --Other 2 -----------------------------Information not available ------------

*5
15

6.0
2.0
3.8

272.5

214.6
51.7

8.*
6.6

.2
85 .2
.6
8 .0

6 .2
2 ,86 7.9
2 .9
86.5

28
2
627

5
59

Number
(thousands) Percent

1 .6
.2
8 8 .8
.1

2.7

1
2

Worker coverage Includes both active and retired workers in 1959.
Includes ^ plans covering 1,700 workers to which only workers contribute
and 1 plan covering 1,300 workers in the process of being terminated.




NOTE:

Because of rounding, sums of individual items may not equal totals.

86
N e a rly tw o -th ird s o f th ese plans a lloca ted p a rt o f th eir a ss e ts to the
a ffe cte d m e m b e r s ; i. e. , they trea ted an e m p lo y e r w ithdraw al as if it w e re a
p a rtia l term in a tion o f the plan, as the follow in g cla u se illu s tr a te s :
In the event any e m p lo y e r d is a s s o c ia te s it s e lf fr o m the plan
through the nonpaym ent o f con trib u tion s o r o th e rw ise , the actu ary
actin g on the in fo rm a tio n and em p loy ee data fu rn ish ed with the
m utual con sen t and a g reem en t o f a ll e m p lo y e rs and union, sh all
d e te rm in e that p o r tio n o f the fund in r e s p e c t o f the e m p lo y e e s
o f the d is a s s o c ia tin g e m p lo y e r then in the p o s s e s s io n o f the
tru ste e o r in su ra n ce com pany.
Said p o rtio n o f the fund shall
be a llo ca te d , su b ject to p r o v is io n fo r ex p en ses o f adm in istra tion
o r liqu ida tion , fo r b en efit p u rp o se s in r e s p e c t o f the e m p lo y e e s
o f the d is a s s o c ia te d e m p lo y er in the sam e m anner and o r d e r ,
to the extent o f the s u ffic ie n cy o f such a s s e ts , as p r e s c r ib e d
in s e c tio n 3 a bove.
In a ll oth er r e s p e c t s , this plan with the
rem ain in g e m p lo y e r s and unions sh all continue in fu ll f o r c e and
e ffe c t in the sam e m anner as if no e m p lo y e r had withdrawn
fr o m the plan.
A n oth er plan r e fe r r e d to the w ithdraw al o f an e m p lo y e r as a "p a rtia l term in a tion "
in the fo llo w in g w o rd s :
P a r tia l T e rm in a tio n . In the event o f the term in a tion o f the plan
and tru st with r e s p e c t to any p a rticu la r e m p lo y e r fo r any re a so n
w h a tso e v e r, but not with r e s p e c t to all e m p lo y e rs , an a ctu a ria l
com pu tation sh all be m ade as if the plan w e re term in atin g in its
en tire ty as o f the term in atin g em ployer* s com putation date so as
to se g re g a te fr o m the tru st fund within a re a so n a b le tim e after
the com pu tation date the a ss e ts th e re o f w hich on the b a s is o f
such com putation a re a p p lica b le to the e m p lo y e e s em p loy ed by
the term in atin g e m p lo y e r at the term in a tion date and, at the
com pu tation date, a re not then in c o v e re d em ploym en t in the
in du stry with an e m p lo y e r with r e s p e ct to w hich the plan is
then e ffe c tiv e . F ollow in g such se g re g a tio n o f a s s e ts upon p a rtia l
d iscon tin u a n ce o f the plan and tru st, as a fo r e s a id , the am ount
o f a ss e ts se g re g a te d a fter the com putation date sh all be a llo ca te d
by the jo in t co m m itte e , on the b a s is o f an a ctu a ria l valuation,
am ong the p e r s o n s who w e re em p loy ees on the term in a tion date
but a re not on the com putation date as p ro v id e d in se ctio n 6 of
this a r t ic le .
Any e m p lo y e e who was em p loyed by any term in atin g e m p lo y e r
sh a ll, on b e co m in g an e m p loy ee o f any oth er e m p lo y e r h e r e ­
under betw een his term in atin g e m p lo y e rf s term in a tion date and
com pu tation date, a u tom a tically b e c o m e s c o v e re d h ereu n d er
again.
The 15 plans c o v e rin g o v e r 200,00 0 w o r k e rs , w hich p e rm itte d the w o rk e r to c o n ­
tribu te in stead o f h is e m p lo y e r and to continue accu m u latin g s e r v ic e c r e d its , a re
illu stra te d by the fo llo w in g cla u se :
If any p a rticip a tin g e m p lo y e r d iscon tin u es b u sin e ss o r ce a s e s
fo r any re a so n to be a p a rticip a tin g e m p lo y e r by cea sin g to
m ake paym ents to the fund in beh alf o f h is e m p lo y e e s . . . he
sh a ll th ereu pon c e a s e to be d eem ed a p a rticip a tin g em p lo y e r
. . . and the em p loy ee fo r whom paym ents to the plan by such
e m p lo y e r have c e a se d , sh all be d eem ed to have been laid o ff
by such e m p lo y e r and such em p loy ee sh all have the p r iv ile g e o f
prev en tin g ca n ce lla tio n o f h is o r h e r q u a lifica tion s and cre d ite d
s e r v ic e by . . . paying to the pen sion fund, each w eek, such
am ount as such e m p lo y e r would be req u ired to pay in his o r
h e r b eh alf . . .



Chapter VI. Financial Management

The la r g e num ber and rapid tu rn ov er o f e m p lo y e rs and w o rk e rs in m o s t
in d u strie s with m u ltie m p lo y e r p e n sion plans re q u ire plan a d m in istra to rs to devote
m uch tim e and e ffo r t to p rom p t paym ent and c o lle c tio n o f e m p lo y e r con trib u tion s.
L ike oth er funds, m u ltie m p lo y e r plans a lso have in vestm en t p r o b le m s .
T h ese
funds, as a w h ole, p r e s e n tly con stitute only a sm a ll fr a c tio n o f total p riv a te
p e n sion a s s e ts , w hich w e re estim a ted to total $50 b illio n at the end o f I960. 35
H ow ever, sin ce m u ltie m p lo y e r plans on the w hole a re re la tiv e ly re ce n t th eir
a s s e ts can be ex p ected to g ro w ra pidly.
T his w ill p ro b a b ly spur in te re st in
iden tifyin g the p a r tie s in ch a rg e o f in vestin g th ese funds and in the safegu ards
o f the funds, e s p e c ia lly th ose contained in tru st a g reem en ts.
The in fo rm a tio n re q u ire d by the W elfa re and P e n sio n P lan s D is c lo s u r e
A c t id e n tifie s the p a rtie s handling the fin a n cia l rein s in m u ltie m p lo y e r p en sion
pla n s.
The a n a ly sis o f th ese fo r m s 36 shows that, with on ly a few ex ce p tio n s,
the b o a rd p e r fo r m e d and had re s p o n s ib ility fo r fin a n cia l a d m in istration , ex cep t
that, as p r e v io u s ly noted (ch a p ter II), it often d eleg ated the in vestm en t of funds
and paying o f b en e fits to an in su re r or co r p o r a te tru stee.

V a rio u s d e v ic e s and sy ste m s have been d e v ise d to c o n tr o l and p r o te c t
the m on ey s due the ce n tra l fund fo r the ben efit o f c o v e r e d w o r k e rs .
The m o s t
im portan t o f th ese a re the cla u se s found in m any tru st ag reem en ts w hich give
the b o a rd o r its re p re se n ta tiv e p o w er to c o lle c t con trib u tion s, in sp e ct e m p loy er
r e c o r d s , and c o m p e l paym ent o f con trib u tion s. The authority to s e le c t the o r g a n i­
zation through w hich b en efits a re to be p ro v id e d , a ls o , was usu ally r e s e r v e d
fo r the b oa rd .
This ch apter id e n tifie s the p a rtie s p e rfo rm in g each o f the m o r e s ig n ifi­
cant fin a n cia l fu n ction s in m u lti e m p lo y e r p en sion plans under c o lle c t iv e b a r ­
gaining. T h ese fu n ction s in clu de the authorization o f b en efits and e x p en ses, the
paym ent o f b e n e fits, the s e le c tio n o f in su ra n ce c a r r ie r o r c o r p o r a te tru ste e ,
and the determ in a tion o f in vestm en t p o lic y . In addition, ce rta in cla u se s in plan
docu m en ts d esig n ed to e n fo r c e c o lle c tio n and p r o te c tio n o f m on ey s due the f u n d in sp e ctio n o f e m p lo y e r r e c o r d s , c o lle c tio n o f con trib u tion s, s e le c tio n o f funding
m ediu m , and bonding o f e m p lo y e e s and boa rd m e m b e rs — a re exam ined. A ll data
re la te , as in the p re v io u s th ree ch a p ters, to the 736 form u la ted plan s.

35 U .S . S e c u r itie s and E xchange C o m m issio n , C o rp o ra te P e n sio n F u n ds.
I9 6 0 . S ta tistica l S e r ie s R e le a se No. 1750, M ay 3, 1961. (See table 6 .)
36 The en trie s r e c o r d e d on the fo r m D - l , p a r tic u la r ly the item identifying
the p a rty with p o w e r to d eterm in e investm ent p o lic y , w e re edited by the B ureau
fo r p u rp o se s o f this study to re m o v e in co n s is te n cie s and to co m p lete the data.
In a ll in su red pla n s, the in vestm en t d e cis io n s w e re co n s id e re d as being m ade
by the in s u r e r , and in c o r p o r a te tru steed plans by the b o a rd and co rp o ra te
tru ste e .
F o r exa m ple, som e o f the in su red plans in d icated that the b oa rd , o r
the b o a rd and in s u r e r d eterm in ed investm ent p o lic y , p re s u m a b ly b eca u se the
b oa rd o r ig in a lly s e le c te d the in su r e r and cou ld change to another in s u re r o r to
s e lf-in s u r a n c e ; th ese w e re edited to read "in su ra n ce com p a n y "— the re sp o n se
given by m o s t in su red plan s.




87

88
S e le ctio n o f M edium o f Funding

The sig n ifica n ce o f the org a n iza tion through w hich b en efits a re p ro v id e d
(the m ediu m o f funding) has a lre a d y been d em on stra ted . (See p a g es 71 and 7 2 . )
In o v e r 75 p e r c e n t o f the pla n s, with 70 p e r c e n t o f the w o r k e r s , the b oa rd was
given the s o le authority to d e cid e w hether to u se an in su ra n ce com pan y, a c o r p o ­
rate tr u ste e , o r its own o rg a n iza tion .
The follow in g cla u se is ty p ica l:
The tru ste e s sh all without lim ita tion have the p ow er and duty
to: . . . en ter into a p p ro p ria te co n tra cts with in su ra n ce c o m ­
p a n ies . . . enter into a g re e m e n ts, co n tra cts , and oth er in ­
stru m en ts fo r the d e p o sit o f funds with banks, tru st com p a n ies,
o r oth er institutions w hich a cce p t and hold m on ey s on d ep osit
and a u th orize such d e p o s ito r ie s to act as cu stod ian o f the p e n ­
sion fund, w hether in ca sh o r s e c u r itie s o r oth er p r o p e r ty and
to a u th orize such d e p o s ito r ie s to co n v e rt, in vest, and re in v e st
the funds in such type o f s e c u r itie s as the tru ste e s d e t e r ­
m in e . . . enter into and execu te an a g reem en t with one or
m o r e banks o r tru st com p a n ies w h ose p rin cip a l o ffic e s a re l o ­
cated . . . to p r o v id e fo r the in vestm en t and rein vestm en t o f the
tru st funds in the d is c r e t io n o f such banks o r tru st com p a n ies.

Workers1

Plans
Responsibility for selecting
medium of funding

Number
736

1

*
3

10 0.0

569

All plans studied ------------Board ------------------------Employers and union ----------Union ------------------------Employers --------------------Other ........................ .
No provision, or information
not available ---------------

Percent

77.3

131

1 7 .8
.1

Number
(thousands) Percent
3 ,2 2 9 .8

10 0.0

.1

---

1

32

2 ,258.5
9 2 6 .4
(2 )
1 .1

6 9 .9
2 8 .7

.3

-----

.4

(3)

4.3

43.4

(’ >

(?)

1.3

Worker coverage includes both active and retired workers in 1959 .
Fewer than 50 workers.
Less than 0.05 percent.

NOTE:

Because of rounding, sums of individual items may not equal totals.

In a lm o st 1 out o f 5 p la n s, the pen sion plan o r tru st a g reem en t s p e cifie d
the funding m ediu m to be used, i. e. , the union and e m p lo y e rs m ade the d e c is io n
in drafting the a g reem en t.
E xam ples o f such d ir e c tiv e s to the b oa rd fo llo w :
The tru ste e s a re h e re b y em p ow ered , au thorized, and d ir e c te d . . .
to enter into a group annuity co n tra ct with a reputable insur-%
ance com pan y.
* * *

The b o a rd sh all s e le c t a bank to be tru stee o f the fund and
sh all enter into a tru st a g reem en t with such bank.



S e le ctio n o f C a r r ie r o r C o rp o ra te T r u s te e . R e g a rd le s s o f how the fund­
ing m ediu m w as to be se le c te d , the b o a rd had the s o le r e s p o n s ib ility and p o w e r to
s e le c t the in su ra n ce c a r r ie r o r c o r p o r a te tru ste e in 90 p e r c e n t o f the plans a p ­
pointing eith er one o r both.

Workers1
Responsibility for selecting
insurance carrier and/or
corporate trustee
All plans with carrier and/or
corporate trustee -------Board ---------------------Board only ------------Board and employers ----Board and union -------Employers and union -------Employers -----------------Union ---------------------Information not available --1
2

Number

Percent

Number
(thousands)

Percent

308

1 0 0 .0

1,148.2

10 0.0

28 l
279

91.2

1,128.4

98.3

9 0 .6

1
1
10
8
1
8

.3
.3
3.2

1 ,1 2 7 .0
1 .1

9 8 .2
.1

2 .6

.3
2 .6

.3
5.6
5.5
5.3
3.4

(2 )
.5
.5
.5
.3

Worker coverage includes both active and retired workers in 1959.
Less than 0.05 percent.

NOTE:

Because of rounding, sums of individual items may not equal totals.

R e ce ip t o f C ontributions
The b o a rd o f a d m in istra tion d ir e c tly r e c e iv e d e m p lo y e r and w o rk e r c o n ­
tribu tion s (if any) in 7 out o f 8 plan s.

Plans
Party receiving
contributions

Number

Workers1

Percent

Number
(thousands) Percent

All plans studied -------------

736

1 0 0 .0

3,229.8

1 0 0.0

Board ------------------------Corporate trustee ------------Union ------------------------Employers --------------------Service organization ---------Information not available -----

635
55
5
3
2

86.3

3,048.4123.7
1.7

94.4
'3.8

2.2

13.6

.1
.4

36

*.9

40.2

1.2

1

.1

Worker coverage includes both active and retired workers in 1959 .

NOTE:

F o r exam ple,

7.5
.7
.4
.3

Because of rounding, sums of individual items may not equal totals.

one plan stated:

The tru ste e s , in th eir n am es as tru ste e s , shall have the p ow er
c o lle c t , and r e c e iv e and hold e m p lo y e r paym ents.

to dem and,



90

The m on ey s went d ir e c t ly fr o m the e m p lo y e r co n trib u to rs to the c o r p o r a te
tru ste e in 55 pla n s.
One plan, fo r exam ple, p ro v id e d that:
The a r e a e m p lo y e rs
rate tru ste e .

sh all pay a ll con trib u tion s

to the c o r p o ­

The c o r p o r a te tru ste e , h o w e v e r, was not o r d in a r ily r e s p o n s ib le fo r the a c c u r a c y
and c o lle c t io n o f such paym en ts, as is illu stra ted by a d is c la im e r cla u se in a
ty p ica l c o r p o r a t e tru st a g reem en t o r "in d e n tu re :”
N otw ithstanding any oth er p r o v is io n s o f this indenture the tru ste e
sh a ll be under no ob lig a tion w hatever to re q u ire with r e s p e ct
to n o r to institute any le g a l action w hatever to e n fo r c e the o b ­
lig a tio n o f any e m p lo y e r.
U nder in su red plan s, e m p lo y e r con trib u tion s w e re n o rm a lly fir s t d ir e c te d
to the b o a rd and then tra n sm itted to the c a r r ie r in the fo r m o f p re m iu m s.
F or
e x a m p le, one in su red plan stated that:
A ll e m p lo y e r co n trib u tion s, after paym ent o f ex p en ses o f the
tr u ste e s in a d m in isterin g the plan, sh all be paid to the in s u r ­
an ce com pan y under the group annuity co n tra ct.
C o lle c tio n o f E m p lo y e r C o n trib u tion s. R e g a rd le s s o f the b a s is o f c o n ­
trib u tion s, the e m p lo y e r w as u su a lly req u ired to m ake paym ent within a sh ort
tim e (5 to 10 days) a fter the end o f each s p e c ifie d p a y r o ll p e r io d in w hich w ork
w as p e r fo r m e d .
F o r exa m ple, one plan stated that:
E m p lo y e r con trib u tion s sh all b e co m e due on the p a y r o ll date.
The fa ilu r e o f an e m p lo y e r to pay the con trib u tion s req u ired
h ereu n d e r within 10 days a fter the date due shall be in v io la ­
tion o f the c o lle c t iv e b argaining a g reem en t.
S in ce the em p loy er*s o b lig a tion to con trib u te s p e c ifie d sum s is d eterm in ed by
the te r m s o f a c o lle c t iv e bargain in g a g reem en t, the fa ilu re to m ake such p a y ­
m en t is a v io la tio n o f the a g reem en t.
H ow ev er, w h ere a jo in t b oa rd w as r e ­
sp o n sib le fo r the r e c e ip t o f funds, m o s t plans d eleg ated to it p a rt o r a ll o f the
r e s p o n s ib ility fo r en fo rce m e n t.
The follow in g cla u se is ty p ica l:
The tru ste e s m a y take w h atever step s, including the in stitution
and p r o s e cu tio n of, o r in terven tion , in, any p ro ce e d in g s at law,
in equity o r in bankruptcy, as they deem d e s ir a b le to effectu a te
the c o lle c t io n o f e m p lo y e r con trib u tion s.
A fou rth o f the plans s p e c ific a lly gave the b oa rd p ow er to a s s e s s p e n a l­
tie s in c a s e o f e m p lo y e r delin qu en cy, u su ally a penalty to be d eterm in ed at the
d is c r e t io n o f the b o a rd , o r fix e d at 6 p e r c e n t in te re st p e r y e a r.

Plans
Penalty for delinquent
payment
All plans studied ---------------No penalty provided, or Information
not available -----------------Penalty -------------------------At board*s discretion-------6 percent interest per year --Maximum legal interest ------Other -----------------------^

Number

Percent

Number
(thousands)

Percent

736

10 0.0

3,229.8

10 0.0

537
179
56
59

75.7
24.3
7.6

2,379.7

73.7
26.3
6.9

8 .0

18

2.4
6.3

393.7
14.0
220.4

46

8 5 0 .0
22 1.9

1 2 .1

.4
6 .8

Worker coverage includes both active and retired workers in 1959*

NOTE:




Workers 1

Because of rounding, sums of individual items may not equal totals.

n

The fo llo w in g c la u se s illu str a te such p en a lties:
In addition to any o th er r e m e d ie s to w hich the p a r tie s m a y be
entitled a c o n tr a c to r in default fo r 10 w ork in g days sh all be
ob lig a te d to pay in te r e s t, at the rate o f 6 p e r c e n t p e r annum,
on the m on ey due to the tru ste e s fr o m the date when the p a y ­
m en t w as due to the date when paym ent w as m a d e, tog eth er
with a ll ex p en ses o f c o lle c t io n in cu rre d by the tr u s te e s .
* * *

In addition to any oth er re m e d ie s to w hich the p a rtie s m ay be
en titled, an e m p lo y e r in default fo r 10 w ork in g days m ay be
r e q u ir e d at the d is c r e t io n o f the tru ste e s to pay such r e a s o n ­
able rate o f in te re st.
# # *

The tru ste e s m a y co m p e l and e n fo r c e the paym ent o f c o n t r i­
butions in any m an n er w hich they m ay, in th eir s o le and un­
c o n tr o lle d d is c r e tio n , d eem p r o p e r .
In sp ection o f E m p lo y e r R e c o r d s .
In tw o -th ird s o f the plans co v e rin g
a lm o st fo u r -fift h s o f the w o r k e r s , the b oa rd w as granted p o w e r to in sp e ct e m ­
p lo y e r p a y r o ll r e c o r d s to a s c e r ta in w hether p r o p e r paym ent was m ad e.
M any
in d u strie s in w hich m u ltie m p lo y e r plans a re found a re c h a r a c te r iz e d by nu m erou s
s m a ll e m p lo y e r s and the p r o b le m o f delin qu en cy m ak es such p r o v is io n s as the
fo llo w in g n e c e s s a r y :

The tru ste e s sh all have the right through an independent c e r t i ­
fie d p u b lic accountant o f th eir c h o ic e , to exam ine em ploym en t
r e c o r d s o f e m p lo y e r s with r e s p e ct to w h ose e m p lo y e e s c o n t r i­
butions should have been m ade to the tru st fund.

J c 5 sjc
5
je

The tru ste e s sh all have the p ow er to re q u ire any con tribu tin g
e m p lo y e r , and a con trib u ting e m p lo y e r, when so re q u ire d , sh all
fu rn ish to the tru ste e s such in form a tion and re p o rts as they
m a y r e q u ir e in the p e r fo r m a n c e o f th eir duties under this a g r e e ­
m en t and d e c la r a tio n o f tru st. The tru ste e s o r any au th orized
agent o r re p re se n ta tiv e o f the tru ste e s sh all have the right at
a ll re a so n a b le h ou rs during b u sin ess h ou rs to enter upon the
p r e m is e s o f the e m p lo y e r and to exam ine and cop y such o f the
b o o k s, r e c o r d s , p a p e rs, and re p o rts o f said e m p lo y e r as m ay
be n e c e s s a r y to p e r m it the tru ste e s to d eterm in e w hether said
e m p lo y e r s a re m aking fu ll paym ent to the tru ste e s o f the
am ounts re q u ire d under this tru st a g reem en t and the a f o r e ­
m en tion ed c o lle c t iv e bargain in g a g reem en t.




❖ * *

92

E ach em p loy e i sh all p ro m p tly fu rn ish to the B o a rd o f tru ste e s
on dem and any and a ll r e c o r d s o f h is em p lo y e e s con cern in g the
c la s s ific a tio n s o f such e m p lo y e e s, th eir n am es, s o c ia l s e cu rity
n u m b e rs, am ount o f w a ges paid and h ou rs w ork ed , and any oth er
p a y r o ll r e c o r d s and in fo rm a tion that the tru ste e s m ay re q u ire
in con n ection with the a d m in istra tion o f the tru st fund and fo r
no oth er p u rp o se . E ach e m p lo y e r shall a ls o subm it in w ritin g
to the b o a rd o f tru ste e s at such reg u la r p e r io d ic in te rv a ls and
in such fo r m as the tru ste e s m ay esta b lish such o f the above
data as m a y b e re q u e ste d by the tru ste e s .
The b o a rd o f tru ste e s
o r th eir a u th orized r e p re se n ta tiv e s m ay exam ine the p a y r o ll
b o ok s and r e c o r d s o f each e m p lo y e r w h en ever such ex a m in a ­
tion is d eem ed n e c e s s a r y o r adv isa b le by the tru ste e s in c o n ­
n ection with the p r o p e r a d m in istra tion o f the trust.

Investm ent P o lic y
The b o a r d reta in ed e x c lu s iv e co n tro l o v e r in vestm en t p o lic y in m o r e
than h a lf o f the pla n s, with a lm o st 2 out o f 3 w o r k e r s . A s the follow in g tabu­
lation sh ow s, h o w e v e r, in n e a rly 1 out o f 4 p lan s, the b o a rd sh a red the in v e s t­
m en t function with a c o r p o r a te tru stee. U sually the b o a rd set b ro a d in vestm en t
p o lic y with the a d v ice o f the c o r p o r a te tru ste e , but le ft the s e le c tio n o f s p e c ific
s e c u r itie s and oth er in vestm en t m ed ia fo the latter.
Of c o u r s e , in the w h olly

Workers 1

Plans
Party determining
investment policy

Number
(thousands) Percent

Number

Percent

All plans studied ------------------

736

10 0.0

3,229.8

1 0 0 .0

Board ----------------------------- --Board only --------------------Board and corporate trustee ---Board, corporate trustee,
and insurer ------------------ --Board and union ---------------- --Insurer --------------------------Uni o n ----------------------------Investment agent ------------------Other 5 ---------------------------Information not available ----------

578

78.5
54.5
22.7

2 ,5 2 2 .0
2 ,056.1

7 8 .1
6 3 .7
1A .2

1 .0

5.7
1.3

167
7
3

9

.4
17.7
.3
1.9
.4
1 .2

**■58.9

68 1.9

.2

(2 )
2 1 .1

.3

(2 )

1 2 .0
1 .0
1 2 .6

(2 )
A

1

Worker coverage includes both active and retired workers in 1959*
2 Less than 0.05 percent.
^ Employers and corporate trustee in 1 plan with 700 workers; employers and
union in 1 plan with 200 workers; and an individual trustee in 1 plan with
100 workers.
NOTE:

Because of rounding, sums of individual items may not equal totals.

in su red plans— 1 out o f 6 plans with m o r e than 1 out o f 5 w o r k e rs — the in su re r
had co m p le te c o n tr o l o v e r the in vestm en t o f the funds on ce they had been d e ­
p o s ite d as p r e m iu m s.
(See page 87 fo r b a s ic an a ly tica l assu m ption . ) H ow ev er,
th ese data in clu d e 9 plans co v e rin g 336, 000 w o r k e r s , p r im a r ily in the ap p arel
in du stry, that p u rch a se d annuities o f only 1 y e a r 's duration, and in v ested the
g r e a te r p r o p o r tio n o f th eir funds in s e c u r it ie s , e t c ., usu ally s e le c te d by the b o a rd .



The b o a r d 's d is c r e tio n m ay be lim ite d by the tru st a g reem en t to certa in
types o f s e c u r it ie s o r oth er in vestm en ts.
The follow in g cla u se is illu stra tiv e
o f such r e s t r ic t io n s :
. . . The
fund as in
p en d itu res
tr u st funds
B y co n tra st,

tru ste e s m a y in vest and re in v e s t such p a rt o f the
th eir s o le judgm ent is not re q u ire d fo r cu rre n t e x ­
in such in vestm en ts as a re le g a l fo r in vestm en t o f
under the law s o f the State o f New Y ork .

another tru st a g reem en t gave the b o a rd w ide latitude:

Such m on ey s in the fund as the tru ste e s in th eir s o le d is c r e tio n
m a y d e te rm in e a re not re q u ire d fo r cu rren t expen ditu res . . .
m ay be in vested and re in v e s te d in any s e c u r itie s o r oth er p r o p ­
e r t ie s , eith er r e a l o r p e r s o n a l, including p a rt in te re sts th erein ,
r e g a r d le s s o f w hether the sam e a re now o r a re h e re a fte r au­
th o riz e d as le g a l in vestm en ts fo r fid u c ia r ie s , w hether by statu­
to r y en actm en t, ju d ic ia l d e c is io n o r oth erw ise w hich the tru stees
m ay p u rch a se in the e x e r c is e o f that d e g re e o f judgm ent and
c a r e under the circ u m s ta n ce s then p re v a ilin g , w hich m en o f
p ru d e n ce , d is c r e tio n , and in te llig e n ce e x e r c is e in the m a n a g e­
m en t o f th eir own a ffa ir s , not in re g a rd to sp ecu la tion but in
r e g a rd to the perm a n en t d isp o sitio n o f th eir funds, con sid e rin g
the p ro b a b le in co m e to be d e riv e d th e r e fr o m as w e ll as the
p ro b a b le sa fety o f th eir capital.
The d is c r e tio n that cou ld be e x e r c is e d by co r p o r a te tru stees is illu s ­
trated by the follow in g cla u s e s . Often un lim ited in vestm en t d is c r e tio n w as given
to the c o r p o r a te tru stee as in the follow in g cla u se :
The tru stee sh all have the follow in g p o w e rs and authority in
the a d m in istra tion o f the tru st fund to be e x e r c is e d in its un­
co n tr o lle d d is c r e tio n :
T o p u rch a se o r s u b s c rib e fo r any s e c u r itie s o r oth er p ro p e rty
and to retain in tru st such s e c u r itie s o r oth er p r o p e r ty ; in the
event in vestm en ts a re to be m ade in s e c u r itie s o r oth er p r o p ­
e rty o f any contributing e m p lo y e r, advance n o tice sh all be given
to the C o m m is s io n e r o f Internal Revenue o f such con tem plated
in vestm en ts.
In no event shall any in vestm en t be m ade in s e ­
c u ritie s o r oth er p r o p e r ty o f the tru stee.
A nother exam ple o f granting v irtu a lly u nlim ited investm en t p o w e rs to the c o r p o r a te
tru ste e is :
. . . the c o r p o r a te tru stee sh all, fr o m tim e to tim e, su b je ct
to the oth er p r o v is io n s o f this a g reem en t, in v est and re in v e s t
p r in c ip a l and in co m e o f the tru st and keep the sam e in vested
in such s e c u r it ie s , b on d s, d eben tu res, sto ck s (com m on o r p r e ­
fe r r e d ), re a l esta te, m o r tg a g e s , deeds o f tru st, sh a res o f in ­
v e stm e n t tru sts, com m on tru sts o r oth er p r o p e r ty , as the c o r p o ­
rate tru ste e sh all b e lie v e to be sound and suitable investm ents
fo r the tru st, r e g a r d le s s o f w hether the sa m e, w ithout this e x ­
p r e s s p r o v is io n , w ould b e p r o p e r in vestm en ts fo r funds o f a
tru st esta te, p ro v id e d , h o w ev er, that in no event sh all the p r in ­
cip a l o r in co m e o f the tru st be in vested in the s to ck s , bon ds,
n otes o r oth er s e c u r it ie s o r p ro p e rty o f any com pany who shall
have adopted the p en sion plan pursuant to the p r o v is io n s o f the
c o lle c t iv e bargain in g a g re e m en t as defined . . . n or sh all the



p r in c ip a l o r in co m e o f the tru st be in v ested in the s to c k s , b on d s,
n otes o r oth er s e c u r itie s o r p ro p e rty o f any oth er . . . c o m ­
pany, w hether o r not it sh all have adopted the . . . plan . . .
A nother c o r p o r a te tru st a g reem en t re q u ire d the tru stee to ap p ortion the in v e s t­
m en t o f funds betw een com m on sto ck s and oth er in vestm en ts.
It rea d , in p a rt:
In vest and r e in v e s t such p a rt o f the tru st estate as the tru ste e s
sh a ll d eterm in e is not re q u ire d fo r cu rren t ex p en d itu res, in
such s e c u r it ie s (o f any c la s s ific a tio n ) as it m ay s e le c t; p r o v id e d ,
h o w e v e r, that no in vestm en t shall b e m ade in any com m on stock
w h ich w ou ld cau se the total in vestm en ts in the tru st estate in
co m m o n sto ck s (at then cu rre n t v a lu es) to e x ce e d 35 p e r c e n t
o f the value o f a ll o f the a ss e ts (at then cu rre n t v a lu e s) o f the
tru st esta te, but this p r o v is o shall not re q u ire the sa le o f any
co m m o n stock p r e v io u s ly p u rch a sed if such p u rch a se w as not
in con tra ven tion h e r e o f; and p ro v id e d fu rth er, that no in v e s t­
m en t sh a ll b e in s e c u r itie s o f any c o rp o ra tio n w hich is , at the
tim e such in vestm en t is m a d e, an e m p lo y e r w hich is a p a rty
to sa id d e cla ra tio n o f tru st.
The c o r p o r a te tru ste e w as quite lim ite d under the follow in g a g reem en t:
The in vestm en t p o w e rs o f any c o r p o r a te tru stee acting pursuant
to the p r o v is io n s h e r e o f o r oth erw ise with r e fe r e n c e to this
p e n sio n plan sh all be lim ite d to those in vestm en ts w hich a re
a u th orized as r e s e r v e in vestm en ts fo r life in su ra n ce com p a n ies
o r g a n iz e d under the law s o f the State o f New Y ork o r fo r fid u ­
c ia r ie s as m ay be p e rm itte d by the p r o v is io n s o f law o f the
State o f New Y ork .
A u th oriza tion o f E x p en ses and B en efits
The b o a r d a u th orized the paym ent o f both ex p en ses and b en efits in o v e r
90 p e r c e n t o f the plans with 90 p e r c e n t o f the w o r k e r s . B en efit paym ents w e re
au th orized by the in s u r e r in o n e -s ix th o f the in su red plans and jo in tly by the in ­
s u r e r and the b o a r d in on e -tw e lfth o f such p lan s.
The b o a rd alon e, h ow ev er,
au th orized the paym ent o f ex p en ses in these plan s.

______
Plans

Workers 1
(thousands)

736

3,229.8

679

2 ,86 6.2

11

5.8
330.4
.3
2.5
1.3

Authorizes
~

17
1

5
2
2
2
1

1 .6

5.8
.1

5

3.0

2

.2
1 2 .6

9
x

Payments

Board
Board and insurer
Insurer
Insurer
Insurer
Board
Board
Union
Board
Other 5
Other ^
Not available

Expenses

Board
Board
Board
Board and insurer
Not available
Board and insurer
Corporate trustee and board
Board
Other 2
Board
Other ^
Not available

Worker coverage includes both active and retired workers in 1959*
A service organization and board, 1 plan covering 100 workers.
^ A service organization and board, 1 plan covering 1,000 workers;
a service organization, 1 plan covering 300 workers; employers, 1 plan
covering 100 workers; a corporate trustee and board, 1 plan covering
200 workers; employers and union, 1 plan covering 1,400 workers.
” An individual trustee, 1 plan covering 100 workers; union, 1 plan
covering 100 workers.




2

95

P a rty M aking P a y m e n ts. The m ediu m o f funding la r g e ly , though not en­
t ir e ly , d e te rm in e d the p a rty paying b e n e fits.
In n e a rly all the in su red plan s,
fo r e x a m p le, the in su ra n ce com pan y m ade paym ents d ir e c tly to the b e n e fic ia r y .
But in only th r e e -fifth s o f the c o r p o r a te tru steed plans w as paym ent m ade by the
tru ste e . A n oth er party— u su a lly the b o a r d — m ade paym ent in the rem ain in g c o r p o ­
rate tru ste e d pla n s. A s shown in the follow in g tabulation, the b o a rd it s e lf paid
b e n e fits in 3 out o f 5 plan s.

Plans
Party making payments
of benefits

Workers *

Number

Percent

Number
(thousands)

Percent

All plans studied ------------------

73 6

1 0 0 .0

3,229.8

1 0 0 .0

Board ----------------------------- --Board only --------------------- --Board and insurer -------------- --Board and corporate trustee ---- --Board, corporate trustee,
and insurer ------------------ --Corporate trustee ------------------ --Insurer --------------------------- --Service organization --------------- --Investment agent ------------------Other5 --------------------------Information not available ----------

453
447
I
f

61.5
60.7
•5

2 .26 7.2
2,259.3
5.9

7 0 .2
7 0 .0
.2

.1

.2

.1
1 ^ .8

1 .8

.1

187.5
677.3
69.4
8.7
7.1

5.8

1
1

109
129
22
6
8
9

17.5
3.0
.8
1 .1
1 .2

1 2 .6

(2 )

2 1 .0
2 .1

.3
.2
A

^

Worker coverage includes both active and retired workers in 195$.
Less than 0.05 percent.
^ The employers in 1 plan with 800 workers; the union in 2 plans with
200 workers; the employers and union in 1 plan with 3,^ 0 0 workers; the insurer
and corporate trustee in 3 plans with 2,6 00 workers; and the individual trustee
in 1 plan with 100 workers.
2

NOTE:

Because of rounding, sums of individual items may not equal totals.

Bonding R eq u irem en ts
The L a b or M anagem ent R eportin g and D is c lo s u r e A ct, w hich r e q u ir e s ,
am ong oth er things, the bonding o f any union re p re se n ta tiv e , including o ffic e r s
and e m p lo y e e s who handle the m on ey s of any union o r tru st funds3 w as p a s s e d
7
s e v e r a l m onths a fte r n e a rly a ll o f the docum ents an alyzed in this re p o rt w e re
subm itted to the D epartm ent o f L a b or. N e v e rth e le ss , the tru st a g reem en ts and
oth er docu m en ts file d b y a lm o st h a lf o f the plans studied re q u ire d the bonding
o f its m e m b e r s .
Many o f the oth er plans p re s u m a b ly bonded b o a rd m e m b e rs
and e m p lo y e e s handling funds as a m atter o f p ru d e n ce , although not s p e c ific a lly
re q u ire d to do so by plan docu m en ts.

A bout 1 out o f 6 plans s p e c ifie d that a ll m e m b e rs m u st b e bonded,
w h ile n e a rly 1 out o f 3 re q u ire d that all m e m b e rs handling funds m u st be bonded.

37

S ection 502(a), L a b o r M anagem ent R eportin g and D is c lo s u r e A ct o f 1959.




Workers1

Plans
Provision for bonding
of board members

Percent

73 6

1 0 0 .0

3,229.8

320

43.4
17.0
31.3
4.8
.4
3.1

1 ,6 7 0 .^

51.7

5*
*6.8
9*9.9
*7.3
2.3
13.3

1 6 .9

All plans studied ----------------- ---No provision, or information
not available ------------------- ---All must be bonded --------------------All those handling funds --------------Discretion of board -------------------Specified member of board ---------- ---No bonding required -------------------*

Number
(thousands) Percent

Number

125
230

35
3
23

1 0 0 .0

29.4
1.5
.1

.4

Worker coverage Includes both active and retired workers In 1959*

NOTE;

Because of rounding, sums of individual items may not equal totals.

The rem a in in g 35 plans with bonding req u ire m e n ts le ft the a rra n g em en ts to the
d is c r e t io n o f the b o a rd .
Illu stra tiv e cla u s e s of each of th ese a r e :
A ll m e m b e r s m u st be bonded
The tru ste e s shall p r o v id e fo r fid e lity p o s itio n bonds with such
co m p a n ie s and in such am ounts as they m ay d eterm in e . .
* * *

A ll m e m b e r s handling funds m u st be bonded
The tr u s te e s who a r e e m p ow ered and au th orized to sign ch e ck s
as a fo r e s a id sh all each be bonded . . .
* * *

D is c r e tio n o f b oa rd
The tr u ste e s a u th orized to sign ch eck s or engaged in handling
m on ey s o f the trust, m ay be bonded by duly au th orized su rety
com pany, and, if so, the p re m iu m s on such bon ds shall be paid
by the tru st.

T w en ty -th ree plan s, on the other hand, s p e c ific a lly stated that no bond w as r e ­
q u ired fo r b o a rd m e m b e r s .
One of th ese plans stated:

No bond o r other s e cu rity shall be re q u ire d of any m e m b e r of
the b o a r d in such ca pa city.

In addition to bonding of b o a rd m e m b e r s , about a third of the plans s p e c i­
fie d bonding fo r c e rta in e m p lo y e e s o f the fund, i. e. , th ose handling funds.
(See
the fo llo w in g ta b u la tion .) A lm o s t another 10 p e rce n t o f the plans re q u ire d that
a ll e m p lo y e e s b e bonded, w hile in 30 plans (4 p e rcen t) this w as le ft to the d i s ­
c r e tio n o f the b oa rd .



97

Workers1

Plans
Number

Percent

Number
(thousands)

Percent

All plans studied -----------------

736

1 0 0 .0

3,229.8

1 0 0 .0

All must be bonded ---------------All those handling funds -------------Discretion of board --------------No bonding required --------------No provision, or information
not available — ---------------- ---

69
230

30
9

9.9
31.3
9.0
.5

403

59.7

Provision for bonding
of employees

1

295.0

9-1

1 ,17 0.2

3 6 .2

46.1

1.9

2 .0

.1

1,716.6

53.2

Worker coverage Includes both active and retired workers in 1959*

NOTE:

Because of rounding, sums of individual items may not equal totals.

E xa m ples o f th ese p r o v is io n s fr o m plan d ocu m en ts a r e :

E m p lo y e e s shall be bonded
The tru ste e s sh all . . . p ro v id e
p lo y e e s o f the tru ste e s .

fo r

fid e lity

bonds fo r

em ­

* * *

E m p lo y e e s handling funds shall b e bonded
E ach e m p lo y e e em p loy ed by the tru ste e s who m ay be engaged in
handling o f m o n e y s o f the p en sion fund sh all be bonded . . .
by a duly a u th orized su rety com pany.
P lan s re q u irin g that so m e o r a ll of the tru ste e s b e bonded usu ally a ls o
re q u ir e d that som e o r a ll o f the e m p lo y e e s of the fund be bonded.
F o r exam ple,
one plan said:
The tr u ste e s and the e m p lo y e e s o f the tru st fund who handle
ca sh or d is b u r s e cash , s e c u r itie s , or tra n sfe r p ro p e rty o f any
kind w h a tsoev er sh all each be bonded, and any other tru ste e s
o r e m p lo y e e s m a y be bonded in the d is c r e tio n o f the tru ste e s
b y a duly a u th orized su rety com pany q u alified under law s o f the
State of New Y ork in such am ounts as m ay be d eterm in ed fr o m
tim e to tim e by the tru ste e s .

Only 12 plan s, c o v e rin g 223,000 w o rk e rs , re q u ire d the bonding o f e m p lo y ­
e e s handling funds even though they had no bonding re q u ire m e n t fo r the b oa rd .
On the other hand, 72 plans w hich re q u ired , or le ft to the d is c r e tio n of the
b oa rd , bonding a rra n g e m e n ts fo r it s e lf had no bonding req u ire m e n t fo r e m p lo y e e s.




98




T a b le

1.

M u lt ie m p lo y e r p e n s io n p la n s u n d e r c o lle c t iv e b a r g a in in g
b y d a te o f e s t a b lis h m e n t , s p r in g I 9 6 0

(Workers in thousands)
Date of establishment

W orkers 1

Plans

798

19 44

------------ --------- ----------------------- ------ -------- --- -------------

104^

----------

___

_

_

104A

1047
104ft

_
_

_

_

_

__
____

...

1040

_

_

_____

_

io^n
1Q

R

1

.

10^7

....
...

.
_ _

_
_ _

_

1954 ____r
_________________ ,___________
1
_____
____
... _ - . .
]O ftA

...

-

-

-

-

. . . . . . . .

10*7

-

._

_

________

- ._

IQ 59

Information not available

---------------------------------------------

.

3, 324. 8

2
4
2
5
5
16
19
62
30
30
66
48
85
108
130
86
38
62

44. 1
8 .5
173. 9
420. 8
109. 9
48. 0
9 5 .8
363. 9
179. 8
87. 5
207. 6
86. 9
564. 6
243. 8
310. 9
159. 3
100. 2
119. 2

1
in 1959.

Worker coverage

includes both active

and retired workers

NOTE:
equal totals.

Because of rounding, sums of individual items may not

Table 2. Multiemployer pension plans under collective bargaining
by number of workers covered, spring I960
(Workers in
Pericent

Number of workers
covered

Plans

W orkers 1
Plans

W orkers

A ll plans __________________________________________

798

3, 324 .8

100. 0

100.0

Under 100 —-----—------------------- -----------------------------100 and under 500 ------ ------ —---------- —--------------- —
500 and under 1,000 -------------------------------------------1,000 and under 5 ,00 0 ---------------------------------------5 ,0 0 0 and under 10,000 --------------------------------------10,000 and under 2 5 ,0 0 0 -----------------------------------25, 000 and under 50, 000 -----------------------------------50,0 0 0 and under 100,000
--------- -------------100, 000 and over -------------------- --------------------

54
230
154
257
51
29
15
2
6

3. 3
59. 2
108 .8
5 9 9 .8
354. 0
407. 6
540. 5
195.0
1 ,0 5 6 . 7

6. 8
28. 8
19. 3
32. 2
6 .4
3. 6
1.9
. 3
.8

0. 1
1. 8
3. 3
18. 0
10. 6
12. 3
16. 3
5 .9
31. 8

1 Worker
NOTE:

coverage includes both active and retired workers in 1959.

Because of rounding,

sums of individual items may not equal totals.

99

T a b le 3.

M u ltie m p lo y e r p e n s io n p la n s u n d er c o lle c t iv e b a r g a in in g
by in d u stry g ro u p ,

sp r in g I 9 6 0

Percent
Industry

Plans

Workers 1
Plans

W orkers

100 .0

100 .0
3 7.9

798

3, 324. 8 _
_

M anufacturing____— —---------------- -----------------

286

1. 2 61 .0

35. 8

Food and kindred p r o d u c t s ------ ------------------------Apparel and other finished textile

88

2 3 0 .5

1 1 .0

6 .9

84

7 7 8 .9

10. 5

2 3 .4

55
6
28
25

6 3 .8
24. 2
57. 1
106. 5

6 .9
.8
3. 5
3. 1

1 .9
.7
1 .7
3. 2

-------------------------------—

499

2 .0 4 1 . 8

62. 5

6 1 .4

M in in g --------------------------------- — ------------------------ -----Contract c o n str u c tio n ---------------------------------------—
Motor tran sp orta tio n ---------------------------------------- —
Water transportation ------------------------------------------Wholesale and retail trade --------------------------------___
____ __ Services __ __
Motion pictures and recreation -----------------------Other nonmanufacturing -------------------------------------

4
262
48
41
95
28
18
3

2 9 5 .4
6 5 3 .8
500. 1
1 47 .6
3 08 .7
79. 1
5 5 .0
2. 1

0. 5
32. 8
6 .0
5. 1
11.9
3. 5
2. 3
.4

8 .9
19. 7
15.0
4 .4
9. 3
2 .4
1. 7
. 1

2 2 .0

1. 6

0. 7

A ll in d u s tr ie s ------ -----—-------------------- ------------------—

Printing, publishing, and allied
industries ---------------------------------------------- ----------------Leather and leather products Metalworking — --------------------------- --------------- ------Other manufacturing —------------------------------------- —
Nonmanufacturing —

Interindustry manufacturing and
nonmanufacturing -------------------------------------

13

Worker coverage includes both active and retired workers in 1959.
NOTE:

Because of rounding,




sums of individual items may not equal totals.




Table 4. National and international unions1 participating
in multi employer pension plans, spring I960
(Number of plans indicated in parentheses)

100.000

workers and over

Carpenters (18)
Clothing (14)
E lectrical (IBEW) (32)
Garment, Ladies (48)
Mine (excluding D istrict 50) (I) (2)
Team sters (I) (121)
5 0,0 0 0

and under 100.000 workers

Bakery (I) (8)
Hod C arriers (23)
Hotel (13)
Longshoremen (21)
Meat Cutters (31)
Plumbing (63)
Retail Clerks (11)
25,0 0 0

and under 5 0,0 0 0 workers

Bakery, Am erican (5)
Building Service (8)
Engineers, Operating (18)
Iron (20)
M aritime (4)
Painters (23)
Retail, Wholesale (12)
Sheet Metal (24)
Upholsterers (1)

5, 000 and under 25, 000— Continued
Musicians (1)
P la sterers (8)
Printing P ressm en (14)
Pulp (6)
Shoe W orkers, United (1)
Stage (13)
Toy Workers (1)
Textile W orkers (TWUA) (1)
Typographical (13)

1,00 0

and under 5 ,0 0 0 workers

A sbestos (17)
Boilerm akers (2)
D istillery (5)
Jewelry (1)
Leather W orkers (1)
Lithographers (I) (1)
Mine D istrict 50 (I) (3)
Newspaper Guild (2)
Newspaper and M ail
D eliverers (I) (1)
Pattern Makers (5)
Photo Engravers (4)
Roofers (4)
Stereotypers (3)
Watchmen*s Ass*n. (I) (3)

5, 000 and under 25, 000 workers
Fewer than 1,000 workers
A ctors (1)
Automobile (6)
Bookbinders (6)
Brewery (9)
Bricklayers (30)
E lectrical (IUE) (3)
Furniture (6)

Engineers, Technical (I) (1)
Firem en and O ilers (1)
Garment, United (2)
Hosiery (l)
Machine P rinters (I) (1)
M ailers (I) (2)

H a tters (23)

M a rb le (1)

Lathers (5)
Leather goods (5)
Longshoremen and Warehousemen (I) (5)
Machinists (10)
Marine Engineers (3)
M asters, Mates (2)

Metal P olishers (1)
Office (2)
Radio (1)
Shoe and Boot W orkers (1)
Telegraphers (1)
Textile W orkers (UTWA) (1)

1 A ll unions are affiliated with A F L -C IO except those followed by (I). For full union
identification and addresses, see Directory of National and International Labor Unions in the
United States, 1961, BLS Bull. 1320 (1962).
Excluded from this list are 26 plans covering 110,000 workers which included m em bers
of 2 or m ore unions and 12 plans covering 13,000 workers which were negotiated by local
Federal labor and industrial unions or unaffiliated local unions.

101
T a b le 5

M u lt ie m p lo y e r p e n sio n p la n s un der c o lle c t iv e b a r g a in in g
b y r e g io n and S ta te , sp rin g I9 6 0

(Workers in thousands)
Percent
Plans Workers 1

Region and State

798

All plans -------------------------------

3. 324. 8

100.0

100.0

43

1, 546.9

5 .4

46. 5

New England------------------------In tra re g io n -------------------Maine ----------------- „ ---------Vermont ---M assa c h u se tts---------------Rhode Is la n d ------------------Connecticut ---------------------

58
5

52. 8
7 .7
2)
(1
1.9
28.0
1. 5
13. 7

7. 3
0. 6
.1
.1
3.0
.5
2.9

1. 6
0. 2

Middle A tlan tic----------------- -—
Intraregion --------------------New York
- _ _______
New Jersey —-----------------Pennsylvania ------------------

417
37
265

1,040. 1
125. 3
678. 1
73.0
163. 6

52. 3
4. 6
33. 2
8. 5
5 .9

31. 3
3. 8
20. 4
2. 2
4 .9

East North
Central ----------------------------Intraregion --------------------Ohio
- ------- -------Indiana --------------------------Illinois --------------------------Michigan ______________ _
Wisconsin —------------------West North
Central ...... ........... „ . „---Minnesota — ------------------Iowa —---------------------------—
Missouri --------------------------

24
4
23

68
47

122
2
24

6
51
31

8
33
9

1
23

220. 6
1. 1
21.0
5 .9
121 . 6
62.5
8 .5
48. 3
3.9
.2
44. 3

Plans Workers

Workers

Interregion------------------------- -

1
1

Plans Workers

Region and State
Plans

(3)
.1
.8
(3)
.4

15. 3
6.6
0. 3 -------3.0
0.6
.8
.2
6 .4
3.7
3.9
1.9
.3
1.0

FT

4. 1
1. 1
.1
2.9

1. 5

0. 1
(3)
1. 3

38. 8
12. 3

36

South A tla n tic --------------------Intraregion —---------------Delware ------------------------M a ry la n d ------------------—
District of
C o lu m b ia -------------------V ir g in ia ---- ------- -----------West Virginia ---------- —
North C a ro lin a ------------Georgia ------------------------Florida -------------------------

10
2

1.0

9

11.9

11
.

3
4
2

2.0
5.7
2. 5

2

2.0

2

1. 0

.4
.5
.3
.3
.3
.3

2

East South
C e n t r a l ------Kentucky -.
Alabama
Mississippi

.5

3.0
2. 1

1

.1

M ou n tain ---------------------------C o lo r a d o ---------------------N e v a d a --------------------------

3________ 5. 0
2
0 .2
1
4 .9

.1

68

P a c i f i c ----------Intraregion
Washington
California
A l a s k a ----

340.4
19.8
2 .4
317.5

2
5
59

2

.6




Type of administrator in multiemployer pension plans
under collective bargaining, spring I 960

Percent
Plans

Workers 1
Workers

_______________________________________

798

3. 324. 8

100. 0

100. 0

Bipartite b o a r d ________________________________
Bipartite board plus 1 neutral member —------Tripartite board ----- ------------- ----- —-----------------Union appointed board ------- — --------------------------Employer appointed board 2 -------------- -------------Other — ------------------- ------- ---------------------------------Information not available — ----------------------- ------

735
33
9

92. 1

72.0
12. 3
9 .8
5. 7
.2

2

2, 392. 6
409. 3
325. 2
189.7
6 .4
.6

3

1.0

11

5

4. 1

1..1
1. 4

.6
.3
.4

0

(3)

1 Worker coverage includes both active and retired workers in 1959.
2 Although employer-administered multiemployer pension plans under collective bar­
gaining would presumably be eliminated by method of selection of the plans for study, it
was determined during the course of analysis that the administrator (by Bureau definition)
was, in fact, an employer appointed board.
3 Less than 0. 05 percent.
B e c a u s e o f rou n d in g ,

•1

0. 3
.9

Plans

NOTE:

.5

9_______ 26. 7
2
7 .9
7
18.8

(Workers in thousands

AUplans

0 .5

West South
C e n t r a l-------Louisiana .
Texas ------

NOTE: Because of rounding, sums of individual items may not equal totals.

Type of administrator

1. 2
0. 4
(3)
.4

.1
.2
.1
.1

1. 1______ (L_2
4
4

1 Worker coverage includes both active and retired workers in 1959.
2 Fewer than 50 workers.
3 Less than 0 .0 5 percent.

Table 6.

4. 5
1. 3
.3

su m s o f in d iv id u a l it e m s m a y not e q u al t o t a ls .

0 .1

.
1
(3)

1. 1_______(L_8

8 .5
0 .3

.6
7 .4

.3

0 .2

.6

0. 1
10.2
0.6

.1

9 .6
(3)

102

Table 7.

Multiemployer pension plans under collective bargaining by industry group and medium of funding, spring I960

Medium of funding
All plans

Self-insured

Industry

Insured
Number

Workers1

Plans

Information
not available

Other
Self-administered

Workers 1

Plans

Workers 1

Corporate trusteed
Plans

Workers 1

Plans

Workers 1 Plans

Workers 1

798
Manufacturing — --------------------- —------- —------Food and kindred p r o d u c t s ---------------------- -------Apparel and other finished textile
products
..
' _
Printing, publishing, and allied
industries _ _ ________
Leather and leather products ___________ ______
Metalworking
— ---- - _
----Other manufacturing ----------------------------------------Nonmanufacturing
Mining
. - ...
Contract construction

_

- _ -----

—

___ _ __
- _

3. 324. 8

119 .

334. 4

441

2.097. 1

170

460. 5

359. 3

41

73. 6

286

1 . 261.0

23

18.0

159

699.7

85

187. 5

11

339. 6

8

16. 3

88

230. 5

8

8.8

39

155. 4

36

5 6 .4

3

8. 6

2

1 .4

84

778.9

3

1.9

70

428.9

3

12 . 6

5

330. 1

3

5 .4

55

63.
24.
57.
106.

1
1

21

-

.5
_
.4
-

_
_
3

_
_

2

7

27 .4
3 .4
20. 2
67. 6

1

10

35. 6
20. 6
34. 5
24. 9

32

5
5

.4
.3
2. 1
4. 5

9 .5

91

309. 1

277

1. 386. 1

82

269. 6

16

19.7

33

57. 3

1

3
136
33
26
54

36
4
14

63.
19.
48.
102.

8

11. 1

19

1

0 .4
52. 7
207. 3
.1
44.9
2 .7
.2
.8

32. 2
1. 2
7 .5
11. 2
5. 3
-

5

7. 3

6
28
25
499

_

8
2
1
5

2 .0 4 1 .8

Wholesale and retail trade
------Services
Motion pictures and re cre ation ____________ ___
Other nonmanufacturing
- — -

4
262
48
41
95
28
18
3

295. $
653. 8
500. 1
147. 6
308.7
79. 1
55. 0
2. 1

Interindustry manufacturing
and nonmanufacturing ----------— ------- -------

13

22.0

M o to r tr a n s p o r ta tio n
Water t r a n s p o r t a t i o n

___

_

63
9

1
11

4

1

4
15

1
6

11

295.0
494. 7
272. 3
98.7
151.4
53. 3

13

19.6

1

1

1. 1

-

30.0
-

5

11. 3

3

3 .4

20
7

1
3

BBj^27M_
sg

-

_

8

-

5

4
3
_
1
_

6.0

_
2. 5
5 .9

Because of rounding,




sums of individual items may not equal totals.

-

6

.2

3
3
-

_

_

1 Worker coverage includes both active and retired workers in 1959.
2 9 plans covering 336,000 workers were self-insured before retirement, but a temporary annuity was purchased annually after retirement.
NOTE:

2

-

_

T a b le 8 .

M in im u m age and s e r v i c e r e q u ir e m e n ts f o r p a r tic ip a tio n in m u lt ie m p lo y e r p e n s io n p la n s u n d er c o lle c t iv e b a r g a in in g ,

sp r in g I 9 6 0 1

(Workers in thousands)
Minimum service requirements
Plans

Minimum age requirements

1 year

Age 22 ------ ------------ ------- -------------------------------------Age 25 ----------------------------------------------------------------Age 30
- Age 35 ----------------------------------------------------------------Age 40
—
None ------- --------------------- -------------------- -------------- —

Workers

Plans

8. 5
0. 1
.2

2

1. 3

2

_

_

-

-

-

-

-

-

1

7

8. 1

-

1. 3

19

65.9

9

1

0. 1
48. 6

<j>

.9
4. 5
.4
11. 3

1
3

1
10

5 years

Plans

Workers

3

3 years

Workers

Plans

Number
All plans with age and service
participation requirements 2 ---------------------- ----1

2 years

_

_

-

2

None

Plans

Workers

Plans

Workers

2

0. 5

4

52. 8

-

-

-

2

48 .4

0 .9
1.9

-

-

-

-

2

0. 5

“

-

1
1

4 .0
.4

"

“

Workers

-

1

_

_

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering approximately 3,2 2 9 ,8 0 0 active and retired workers in 1959.
2 An additional 106 plans covering 306,700 workers had a union membership requirement.
3 This plan also required union membership.
NOTE: Because of rounding, sums of individual items may not equal totals.

Table 9.

Normal retirement age in multiemployer pension plans under collective bargaining by industry group, spring I960
,£W ork eri
£iiir^Jhou£ands}>

Normal retirement age
All plans

Age 55

Industry
Number
All industries

—--------------------------------------------------

Manufacturing

____________________________

W orkers 1

Plans

736

3. 229. 8

4

270

1. 239.6

84
78
53

22

226. 8
772.9
63.0
24. 2
5 5.7
97 .0

---------------------------- --------

454

1,969. 1

Mining -----— ------------------------------------------ -----------Contract construction
Motor transportation
-------------------------- — -------Water transportation
-------------------------- — -------Wholesale and retail trade
Services
--------------------------------------------------- -------

4
232
46
41
89
25
14
3

295. 4
612. 0
498.9
147. 6
295. 8
67.9
49. 5
2. 1

12

21.0

Food and kindred products
Apparel and other finished textile products
Printing, publishing, and allied industries ----Leather and leather products -------------------------Metalwo rking ________ __ ____________________ ___
Miscellaneous manufacturing -------------------------Nonmanufacturing

Miscellaneous nonm anufacturing----------------- —
Interindustry manufacturing and
nonm anufacturing---------------------- ------------

6
27

_
_

-

4

Workers 1

Plans

13.0

_
_

13.0

_

3
-

6.8
-

-

-

-

-

6. 1
-

-

-

1

Age 68 and 70

A ge.65

Age 60
Workers 1

Workers 1

Information
not available
Plans
Workers1

Plans

Workers 1

Plans

20

521.0

672

2. 651. 6

29

13. 2

31

7

16.6

246

1. 203. 8

6

12.7

1

1. 0

-

15.7
504. 5

82
70
47

11
1

-

6
13

2
3
4
3
-

1
-

294. 6
30. 6
175. 5
1.9
1.9
-

22

225. 6
770. 8
5 0 .4
24. 2
35.8
97.0

414

1 .4 2 6 .7

2

0.8

213
41
40
78
25

2

3

559. 1
322. 6
145. 6
287. 1
67.9
41. 5
2. 1

12

21.0

6
19

12

_

B e c a u s e o f rou n d in g ,




s u m s o f in d ivid u al ite m s m a y not e q u al t o t a ls .

6. 5

-

0. 3
1.9
(3)
4. 3
-

20

24. 5

11
1
1

15. 1
.7

-

0 .3
.2
-

7
_
_
-

_
_
-

-

-

-

1
5
3

-

1

0. 2
12. 5
0 .5

_

7

1

-

2

_

1 Worker coverage includes both active and retired workers in 1959.
2 Includes 2 plans covering 300 workers with a normal retirement age at 68, and 7 plans covering 12,900 workers with a normal retirement age at 70.
3 Fewer than 50 workers.
NOTE:

31.0

_

2.0
6. 7

_

104

T a b le 1 0 .

N o r m a l r e t ir e m e n t age in m u lt ie m p lo y e r p e n sio n p la n s un der c o lle c t iv e b a r g a in in g by m e d iu m o f fu n d in g, sp r in g I 9 6 0

Medium of funding
All plans
Insured

Normal retirement age

736

3, 229.8

Age 55 ________________ ___ ___ ______ ______ _____
Age 60
. . .
Age 65
_ __
_ _ _
_ ___
Age 68 and 7 0 _____________________________ __ __
----Information not available

4

13.0
521.0
2, 651.6
13. 2
31.0

20
672
29
31

Other

Workers 1

Plans

Workers 1

329. 6

590

2. 539. 6

5. 4
318.6
4 .6

3
18
539

7. 6
520.0
1 ,9 7 3 .4
13.0
25. 6

30
_

107
_
7

_______________________________________

AUplans

Self-insured
Plans

1
1

Workers 1

Workers 1

116

Number

360. 7
_
0. 1
359. 5
.2
.9

Plans

1.0

8
22

1
26

1
2

Worker coverage includes both active and retired workers in 1959.

2 Includes 2 plans covering 300 workers with a normal retirement age at 68, and 7 plans covering 12,900 workers with a normal retirement at age 70.
NOTE: Because of rounding, sums of individual items may not equal totals.

Table 11.

Types of benefit formulas in multiemployer pension plans under collective bargaining

by industry group, spring I960

(Workers in thousands)

All plans
Industry
Num­ ! Work­
ber
ers 1

Flat
benefit
for
specified
service

Benefits
vary by
earnings
and
service

Benefits
vary by
service
alone

Plans

Work­
e rs 1

Plans

Work­
ers1

Plans

Benefits
are a
percent of
employer
contribution

Work­
Plans
e rs 1

Work­
ers 1

Plans

Information
not
available

No
specific
formula

Other

Work­
Work­
Plans
ers1
e rs 1

Plans

Work­
e rs 1

188

1 .5 6 3 .9

455

1. 267 .6

6

^58^

24

270.8

9

14. 2

23

23.9

31

270

1. 239.6

92

817.9

146

352. 2

3. 3

6

11. 7

11

6. 5

2

0. 8
745. 8

214. 5
24. 1
41. 6
21. 7
34. 5
15.8

2

1. 1

4

10.0

0. 1

1

2.0

1
1

.7
.7
3. 1
.4

7

1

22

226. 8
772.9
63.0
24. 2
55. 7
9 7.0

8
1

5 .0

84
78
53

42.9
_
0 .3
42. 6

4

Food and kindred products
------------ ------- ---------Apparel and other finished textile products — Printing, publishing, and allied industries ——
Leather and leather products
Metalworking
—
_ ____ —
Miscellaneous m an u factu rin g-----------------------—

3
_
-

Nonm anufacturing--------------------------------------

454

19

20

Mining --------------------------------------------------------- ------Contract construction-------------------------------------—
Motor tra n sp o r ta tio n --------------------------- -----------Water transportation -------------------------- ------------Wholesale and retail tra d e --------------------------------Services
. -------- ,------------------------------ -------------------Motion pictures and recreation — ------------ -----Miscellaneous nonmanufacturing
— -------------

4
232
46
41
89
25
14
3

498.9
147. 6
295. 8
67.9
49. 5
2. 1

11
1
1
7

15. 1
.7

-

18.8
_
17. 2
1. 3
.3
-

0. 3
1.9
(1
2)
4. 3
24. 5

_
-

6.7
_
-

Interindustry manufacturing and
nonm anufacturing-----------------------------------

12

21.0

_

.

_

_

---------------------------------------------------- ^ 7 3 6 ^ 3. 229. 8

A ll industries

Manufacturing

--------------------------------------------

6
27

1
6
10

17.
1.
13.
38.

2

74
7
36
4
16
9

1.969. 1

96

746.0

298

895. 1

295. 4

2
16
11

294. 6
28. 6
192 . 2

2

0. 8
519. 2

26
28

92.0

612.0

60
13

7

8
6

2

9 3 .2
11. 6
32. 5
1. 3

-

_

7
4

183
30
14
44
15
9

1

11

1 Worker coverage includes both active and retired workers in 1959.
2 Fewer than 50 workers.
NOTE:

B ecause




o f ro u n d in g ,

s u m s o f in d ivid u al it e m s m a y not e q u al t o t a ls .

1

-

2
3
_

.8

-

15. 5
_
2. 2
7. 2
6. 1
-

20. 2

_

_

1

91.0
53. 6

-

170.9
47.9
10. 9

-

1

1

-

-

.3
-

_
-

.3
1 .4
-

3

2. 6

-

266. 7
_
28.0
215.0
15. 6
8. 1
-

_
-

_
1. 7
.9
_
-

1

.8

_

_

_

1
-

8
4
5

2

_

2
-

1

3
-

1
2
1
15
_

11
3

1

1

-

2
-

31.0

_

2.0

T a b le 1 2 .

T y p e s o f b e n e fit fo r m u la s in m u lt ie m p lo y e r p e n s io n p la n s u n d er c o lle c t iv e b a r g a in in g

b y m e d iu m o f fun ding, sp r in g I 9 6 0

(Workers in thousands)
Medium of funding
Plans
Insured

Type of benefit formula

Self-insured

Other

Number

Workers 1

Plans

Workers 1

Plans

Workers 1

Plans

Workers 1

All plans ------------------------------------------------------------

736

3 ,2 2 9 .8

116

329. 6

590

2,539. 6

30

360. 7

Flat benefit for specified service ------------------Benefits vary by service alon e-----------------------Benefits vary by earnings and se rv ic e -----------Benefits are a percent of employer
contributions _________________________________
No specific formula -----------------------------------------O th e r ___ _____ __ ______ ______ _____ ___________
Information not available ---------------------------------

188
455

9
89

20. 9

168

1 , 206. 1

11

101. 7
.9

353
5

I, 148. 3
57. 5

13

6

1 ,5 6 3 .9
1,267. 6
58 .4

336. 9
17. 6
-

24
23
9
31

270. 8
23.9
14. 2
31. 0

8
1
1

200. 2
.2
1. 0
4. 6

21
6
22

1

7

15

67.
23.
11.
25.

-

1
1
2
2

4
5
3

6

3. 3
.1
2. 0
.9

1 Worker coverage includes both active and retired workers in 1959.
NOTE: Because of rounding, sums of individual items may not equal totals.

Table 13.

Form of payment of retirement benefit in multiemployer pension plans under collective bargaining

by industry group, spring I960

(Workers in thousands)
Payment for liie plus—
All plans
Industry

Payment for
life only
Work­
e rs 1

Payment
certain
guarantee
Work­
Plans
ers 1
284. 4

14

52. 3

6

2. 0

2

145. 0

6
6

16. 3

2

_

16. 3
-

1

0. 2
0. 1

_

. 1
-

-

_
_
-

1. 8

2

0. 8

_
1. 7
.1
-

_

_

2

0. 8

-

Plans

All industries
Manufacturing -----------------------------------------------

736

3, 229.8

584

2, 837. 2

82

270

1,2 3 9 .6

211

1,066. 5

33

Food and kindred products -------------------------------Apparel and other finished textile products ___
Printing, publishing, and allied industries-----Leather and leather products _________________
Metalworking------------------------------------------------------Miscellaneous manufacturing ---------------------------

84
78
53

52
47
5

20
21

80. 7
769. 0
54. 3
23. 5
4 2 .4
96.6

24

22

226. 8
772. 9
63. 0
24. 2
55.7
97. 0

Nonmanufacturing -----------------------------------------

454

1,969. 1

364

1 , 759. 0

295.4
612 . 0
498.9
147. 6
295.8
6 7.9
49. 5
2. 1

4
166
42
39
77
24
9
3

295. 4
463. 3
488. 9
142. 4
284. 8
67.6
14. 5
2. 1

46
_
39
3
-

129. 5
1. 0
8. 6
6. 0
130. 0
_
113. 0
9. 3
3. 0
4. 8
-

21 . 0

9

11. 7

Mining __________________ ____ ___ ____________
Contract construction ---------------------------------------Motor transportation ___________________________
Water transportation ----------------------------------------Wholesale and retail trade -------------------------------Services _________________________________________
Motion pictures and recreation ________________
Miscellaneous nonmanufacturing ______________
Interindustry manufacturing and
nonmanufacturing __________________________

6
27

4
232
46
41
89
25
14 ‘
3

12

1

1
3
3

Cash refund

Work­
ers 1

Work­
ers 1

5
3
-

Option
methods

Plans

Number

66

Modified cash
refund

9 .4

-

-

8
_
4
-

1
1

36. 0
_
2. 6
3. 2
(2)

Plans

-

1
4
_
3
-

1

-

30. 2
-

-

-

-

-

-

2

Work­
ers 1

Plans

_
_
-

Cash benefit

Information
not available

Work­
ers 1

Plans

Work­
ers 1

Plans

Work­
ers 1

0. 8

17

22. 1

31

31. 0

7

5. 1
_
1. 1
.7
3. 0
.4

11

6. 5

1

0 .3
1.9
(1
2)

20

_

_

4
-

1
1
1
10

_
_
_
_
-

2
1
_
-

17. 0
_
15.4
1. 3
.3
_
-

-

-

-

_
7
-

7

1

-

2
-

4. 3
-

7
_

24. 5
_
15. 1
.7
2. 0
6. 7
_

-

-

-

-

_

11
1
1

_

_

_______ i

NOTE:

B e c a u s e o f rou n d in g ,




s u m s o f in d ivid u al ite m s m a y not e q u al t o t a ls .

105

1 Worker coverage includes both active and retired workers in 1959.
2 Fewer than 50 workers.

106
Table 14.

Form of payment of retirement benefits in multiemployer pension plans
under collective bargaining by medium of funding, spring I 960

Medium of funding
Plans
Number

Workers 1

Plans

Other

Self-insured

Insured

Form of payment

Workers 1

Plans

Workers 1 Plans

W orkers 1

736

3, 229.8

116

329. 6

590

2, 539. 6

30

360.7

Payment for life o n ly ----------------------------------------Payment for life plus—

584

2, 837. 2

97

313. 8

468

2, 169. 8

19

353.6

Payment rarfain guarantee.
Modified cash refund
Optional methods ------------------ ------- — ----------Cash r e f u n d ------------------------------------------ — —

82
14

284.4
52. 3

9

9. 1
1. 8

67

2

6
2

2.0
.8

-

-

270.4
49. 5
1.9

-

-

.6

6
1
1
1

4 .8
1. 1
.1
.2

17
31

22. 1

1
7

21.8
25. 6

_

31.0

.2
4 .6

2

_
.9

Cash benefit
Information not available

—------------------- ------—

Worker coverage includes both active and retired workers in 1959.
NOTE:

B e c a u s e o f rou n d in g ,




s u m s o f in d iv id u a l it e m s m a y not eq u al t o t a ls .

11
5

1
16
22

Table 15.

Optional annuity forms in multiemployer pension plans under collective bargaining

by industry group, spring I960

(Workers in thousands)

_____
Option provided

No option
provided

Plans
Industry

T
<
offe ring
options

Joint and
survivor
option

Information
Joint and
Period
not
Joint and
surviv<ar or
survivor or
certain
Other option
available
period c
:ertain
other option
option
oot ion
Work­
Work­
Work­
Work­
Work­
Plans
Plans
Plans
Plans
Plans
ers 1
ers 1
ers 1
ers 1
ers 1

Num­
ber

Work­
ers 1

Plans

Work­
ers 1

Plans

Work­
ers 1

Plans

Work­
ers 1

A ll i n d u s t r i e s ---------------- ------

736

3. 229.8

594

2 .9 2 8 .9

111

270.0

75

192. 2

Manufacturing ------- -----—.

270

1 . 239.6

224

1. 164.4

35

68.8

23

Food and kindred products —
Apparel and other finished
textile products ----------------Printing, publishing, and
allied industries —-------— —
Leather and leather
products
----------------------------Metalworking —— --------------—
Miscellaneous

84

226. 8

60

190.9

23

35.6

15

78

772.9

71

771.0

-

-

-

-

-

-

-

-

-

-

53

63.0

48

53.7

4

9 .3

2

7 .5

-

_

-

-

1

1 .4

6

24. 2
55.7

6
20

24. 2
35. 5

5

16.0

15. 5

-

.5

-

-

-

-

-

-

-

-

-

-

-

4

8.9.

2

1. 3

3

2 9 .4

20

24. 5

72
91

1.7
1. 1
.
-

2

1. 3

-

-

82
41

-

-

11
1
1

15. 1
.7

-

2 7.6
1. 8
-

4

4. 4
.2
15.9
1. 5

-

-

-

-

7
-

6.7
-

-

111

6. 1

-

-

-

-

-

-

-

-•

-

-

-

-

-

-

-

-

-

27

22

52. 5

6

22. 6

24

1

19

89. 2

3

7 .8

2

6 .9

1

454

1.969. 1

360

1 .7 4 8 .9

74

195.8

50

134. 2

15

--------------------- -------------

4
232
46
41
89
25

295.4
612.0
498.9
147. 6
295. 8
67.9

4
177
40
39

44
5
16
7

74. 1
11. 2
.4
9 9 .8
4 .0

39.1
8. 1
.4
84. 0
2. 5

8
1

18

2 9 5 .4
522. 7
487.0
145. 2
189. 3
63.9

14

49. 5

13

43. 3

1

6. 1

-

-

3

2. 1

3

2. 1

-

-

-

12

21.0

10

15. 6

2

5. 5

2

5

11.0

5

5. 2

1

2. 1

3

3 .6

3.9

31

2. 1

2

2. 2

-

Water transportation — — —
Wholesale and retail trade —
Services
—— -------- ■
---------------Motion pictures and
recreation —------- ---------------Miscellaneous
manufacturing
-------------- —
Interindustry
manufacturing and
nonmanufacturing -------

1
2
3
4
5
6
7
8
9
10
11

27. 2

—___-

Nonmanufacturing
Mining

- .4

21

9 7 .0

66

1

_
30

2
1
14
3

.9
_21.J9__

-

4 .9

34. 7

31

2

5. 3

11

6. 5

41

4 .9

1

0. 3

-

-

7

1.9

51

.4

1

(17
6)
50
41
39
28

-

-

4. 3

5

.

.

5. 5

-

10 2

-

-

-

-

Worker coverage includes both active and retired workers in 1959.
1 plan covering 200 workers also provided a straight life annuity option.
This plan also provided a modified cash refund annuity option.
This plan provided for any option.
This plan provided a straight life annuity option.
Fewer than 50 workers.
1 plan covering 1,000 workers also provided a straight life annuity option, and 1 plan with 700 workers also provided a cash refund annuity option.
1 plan with 27, 400 workers provided for a cash refund option, and the other plan with 200 workers had any option.
This plan also provided a cash refund annuity option.
1 plan covering 900 workers also provided a cash refund annuity option.
This plan also provided a straight life annuity option.

NOTE:




B e c a u s e o f rou n d in g , s u m s o f in d ivid u al ite m s m a y not equ al to t a ls .

2

31.0

1

2.0

-

108

Table 16.

Optional annuity forms in multiemployer pension plans under collective bargaining
by medium of funding, spring I 960
(Workers in thousands)
Medium of funding

Provisions for options

Insured
Number

Workers 1

All plans _________________________

736

3, 229.8

No option provided _______________
Options provided _________________
Joint and survivor option _____
Joint and survivor or period
certain option ________________
Joint and survivor or
othe r option __________________
Period certain option_________
Other option__ _______ __ ___
Not available _____________________

594

111
75

21
5
5
5
31

Self-insured

Other

Workers 1

Plans

Workers 1

Plans

Workers 1

116

329. 6

590

2, 539. 6

30

360. 7

2, 928. 9

68
41
27

281. 0
44. 0
19.4

506
62
46

2, 296. 1

270. 0
192. 2

20
8
2

351. 8
8. 1
2. 4

27. 2

8

18. 1

29

4. 3

34

4. 8

11. 0

43
1
72

4 .2
. 1
2. 2
4 .6

5j
4

6. 1

61

4 .8
32. 3
25. 6

91
2

.7
_
.2
.9

4 .9
34.7
31. 0

Plans

7

1
2
3
4

82
22

217.8
170. 3

-

Worker coverage includes both active and retired workers in 1959.
1 plan covering 200 workers also provided a straight life annuity.
1 plan covering 900 workers also provided for a cash refund annuity option.
1 plan covering 2,100 workers also provided a modified cash refund annuity option; 1 with 1,000 workers provided
a straight life annuity option; and 1 with 1 , 100 workers provided for a cash refund annuity option.
5 This plan also provided a straight life annuity option.
8 This plan also provided a cash refund annuity option.
7 1 plan covering 400 workers provided for a straight life annuity option; and the other plan with 1,800 workers pro­
vided for any option.
8 1 plan covering 27,000 workers provided for a cash refund annuity option; and 1 plan with 4 ,900 workers provided
for any option.
9 This plan provided for any option.
NOTE:

B e c a u s e o f rou n d in g ,




s u m s o f in d ivid u al it e m s m a y not e q u al t o t a ls .

T a b le 1 7 .

N o r m a l r e t ir e m e n t m o n th ly b e n e f it s , exclu d in g s o c i a l s e c u r ity b e n e f it s , fo r w o r k e r s e a rn in g $ 4 , 8 0 0 p e r y e a r f o r 30 y e a r s o f fu tu r e c r e d ite d s e r v ic e
b y in d u stry g ro u p , in m u lt ie m p lo y e r p e n s io n p la n s u n d er c o lle c t iv e b a r g a in in g , sp r in g I 9 6 0

(Workers in thousands)
All plans

Under $ 3 0 1

Industry
Number Workers 2 Plans

$30
and under
$40

Workers2 Plans

$40
and under
$50

Workers2 Plans

$50
and under

Workers2 Plans

$70
and under
$80

$60
and under
$70

$60

Workers2 Plans

Workers2 Plans Workers2

All industries __________________________________

736

3,229. 8

40

208. 0

84

137. 3

87

347.8

169

824.9

96

324. 1

67

382. 6

Manufacturing ----------------------------------------------

270

1,239. 6

12

32. 1

29

41.9

37

256.4

73

589. 2

40

99. 1

19

36. 1

Food and kindred products ------------------------------Apparel and other finished textile products---Printing, publishing, and allied industries---Leather and leather products -------------------------Metalworking ----------------------------------------------------Miscellaneous manufacturing --------------------------

84
78
53

226. 8
772. 9
63. 0
24. 2
55.7
97. 0

2

1. 0
12 . 2

4

3. 3
9 .9
12 . 2
13. 1

8
12
8
1

12. 8
169. 2

10

21
2
11

32. 6
44. 1
14.7

7

3
5

2 .4
56.6

11
1
8
8

9 .9
533.7
12 . 8
1. 8
16. 8
14. 3

49

90. 6

94

2

6
27

22
454

1,969. 1

Motion pictures and recreation __________ _____
Miscellaneous nonmanufacturing _____________

4
232
46
41
89
25
14
3

295.4
612. 0
498.9
147. 6
295.8
67.9
49. 5
2. 1

Interindustry manufacturing and
nonmanufacturing _______ ___________ __ _

12

21 . 0

Nonmanufacturing__________________________
Mining _ -----------------------------------------------------------Contract construction---------------------------------------Motor transportation----------------------------------Water transportation ---------------------------------------Wholesale and retail trade — ------------------------

_

S e e fo o tn o te s




__

a t end o f ta b le .

5
3

4. 4

11
8

-

-

2

14. 5

3
3

175. 5

54

-

27

.

-

_

_
27
3

1
1

126. 9
6. 2
5 .4
2. 5
4. 3
30. 0
.2

1

0.4

7
3
7
3
5

-

3 .4
94 .4

.

31

2
1
1

1. 0

1

4

8.6

.

20.7
2. 5
3. 6
46. 8
15. 8
4. 3
.8

6
11

6.9

2
4

8
2
2

-

31. 3
2. 6
2. 1
15. 8
35. 1
3.7

35

48

8
4
23

6
3

“

-

0. 8

2

-

-

-

5

6 .7
.9

5

1

1

8 .9
.4
8. 2
17.7
.9

229. 6

54

222. 6

44

338. 0

43. 4
83.7
20. 1
23.4
52.4
5.8
.7

1

0 .3
151.9
1. 2
36.9
29. 1
1. 1
2. 0
-

22
1
12
2
1
1

87.9
199. 3
.3
44.9
4. 3
.2
1. 1

4

8. 6

-

6. 0

37

2
5

6
2
1
-

2

2 .4

1
5

.
5

N o r m a l r e t ir e m e n t m o n th ly b e n e f it s , exclu d in g s o c ia l s e c u r ity b e n e f it s , f o r w o r k e r s ea rn in g $ 4 , 8 0 0 p e r y e a r f o r 30 y e a r s o f fu tu re c r e d ite d s e r v i c e
b y in d u str y g ro u p , in m u ltie m p lo y e r p e n sio n p la n s u n d er c o lle c t iv e b a r g a in in g , sp r in g I 9 6 0 — C ontinued

110

T a b le 1 7 .

^ W o r k e r s in (itiiousands2i

Industry

Plans

All industries

$90
and under

$100

$110

$120

and under

and under

$100

$80
and under
$90

$110

$120

and under
$130

Workers2 Plans Workers2 Plans Workers2 Plans

_________________________________

8

31.7

28

79. 9

50

$ 130 and over 3

Workers2 Plans Workers2 Plans Workers2 Plans

535. 0

11

20 .4

14

39.2

Manufacturing ----------------------------------------------

2

6. 2

5

11.4

18

116.2

8

14. 8

3

1

6. 1

2

6. 0

15

8

-

.7
4 .6
“

1
1

3
-

-

(5 )

-

1

14. 8
"

20.8

-

109. 2
.5
.5
6. 0

Nonmanufacturing___________________________

6

68. 6

32

418. 8

1

251.6
15.9
21. 5
57. 4
70. 9
.9
.6
-

3 13

Mining ---------------------------------------------------------------Contract construction__________________________
Motor transportation ---------------------------------------Water transportation ---------------------------------------Wholesale and retail trade ------------------------------Services -------------------------------------------------------------Motion pictures and recreation -----------------------Miscellaneous nonmanufacturing --------------------Interindustry manufacturing and
nonmanufacturing ________________________

1

"
25. 5

_

_

2
2

-

2. 5
7. 9
9. 0
6. 1
-

-

-

-

1
-

1

1
-

2
23

_
14

64
4

1
-

-

_
26.9
30. 0
11. 5
.2
-

-

1
2
3
4

9
5

6
7

2
2

-

-

_

-

-

“

-

10

16 . 6

13

-

-

3

5. 6

_

_

_

_

_

1
2

6

6. 6

3
-

9 .6
.4
-

1
76

-

1. 3
4. 3
-

-

-

1

-

-

-

-

-

1

1. 8

-

1

5
-

209. 5

_
1. 7
193. 0
12.9
1.9
-

4 69

89. 5
15.4

3

1

_

-

Workers2

24

209. 5

20. 8

Food and kindred products ------------------------------Apparel and other finished textile products —
Printing, publishing, and allied industries---Leather and leather products__________________
Metalworking ----------------------------------------------------Miscellaneous manufacturing---------------------------

-

Benefits were
not computed

1. 5
3. 0
2. 5
.7
7 .4
.4

45

74. 0

11
4

1
4

_
27

1
2
14

1
-

_
54.9
.7
5. 2
13. 0
.3
-

-

-

The smallest benefit was $10 a month.
Worker coverage includes both active and retired workers in 1959.
The largest benefit was $230 a month.
Includes 23 plans with 23,900 workers which had no specific benefit and formula; 40 plans with 60,300 workers for whichinformation was notavailable;
and
6 plans with 5, 300 workers for whichcomputation of benefit was impossible.
5 Fewer than 50 workers.
6 Includes 1 plan with 1,000 workers which provided $90 a month for the first 5 years of retirement, and $25 thereafter.
7 Includes 3 plans with 174,500 workers which provided $135 a month for the first 5 yearsof retirement, and $70 thereafter;
and 1
planwith 3,000 workers
which provided $175 a month for the first 5 years of retirement and $85 thereafter.
NOTE;

B e c a u s e o f ro u n d in g ,




su m s

of in d ivid u al ite m s m a y not eq u al t o t a ls .

T a b le 1 8 .

N o r m a l r e t ir e m e n t b e n e f it s , e xc lu d in g s o c i a l s e c u r ity b e n e f it s , f o r w o r k e r s e a rn in g $ 4 , 8 0 0 ( $ 4 0 0 p e r m on th ) p e r y e a r f o r 30 y e a r s
o f fu tu r e c r e d ite d s e r v i c e b y m e d iu m o f fu n d in g, in m u lt ie m p lo y e r p e n s io n p la n s u n d er c o lle c t iv e b a r g a in in g , sp r in g I 9 6 0

i wor

.

Medium of funding
Plans
Amount of monthly benefit

Insured
Number

A ll plans

Workers 1

Plans

736

-----------T in d e r $ 3 0
$ 3 0 and under $ 4 0
$ 4 0 and tinder $ 5 0
$ 5 0 and u n d e r $ 6 0
$ 6 0 and under $ 7 0
—
$ 7 0 and u n d e r $ 8 0
$ 8 0 and under $ 9 0
—
$ 9 0 and under $ 1 0 0
$ 1 0 0 and under $ 1 1 0
$ 1 1 0 and under $ 1 2 0
$ 1 2 0 a n d u n d e r $ 1 30
$ 1 3 0 and o v e r
—

.

____________
-------------_
__
_ _

.
• «.
.

n „

__

.

_ ___
_

Plans for which benefits were not computed —.

116

40
84
87
169
96
67
8
28
50
11
14
13
4 69

2 0 8 .0
137. 3
3 4 7 .8
8 2 4 .9
324. 1
3 8 2 .6
3 1 .7
7 9 .9
5 3 5 .0
2 0 .4
3 9 .2
2 0 9 .5
8 9 .5
$ 6 8 . 34

7. 3
2 1 .4
1 0 .7
1 7 .6
2 7 .0
215. 2

4
4
_

18. 3
2 .7

5

2. 5

11

6 .9
$ 6 7 .0 2




B e c a u s e o f rou n d in g ,

su m s o f in d ivid u al it e m s m a y not eq u a l t o t a ls .

Other

W orkers1

Plans

329. 6

4
13
21
26
14
14
_

1_____ ______ L.
_

________________

Worker coverage includes both active and retired workers in 1959.
2 See footnote 2, table 17.
3 See footnote 3, table 17.
4 See footnote 4, table 17.
Arithmetic mean weighted by number of workers.
NOTE:

Self-insured

W orkers1

2. 5 3 9 . 3

30

198. 4
109. 8
179. 8
630. 5
294. 0
167. 4
25. 6
60. 3
5 2 9 .9
20. 4
36. 7
209. 5
7 7 .4

32
68
61
139
78
53
7
2 22
44
11
9
3 13
53

Workers1

Plans

4
3
5
4
4

^

3 6 0 ^ 7 ^
2.
6.
157.
176.
3.

3
2
4
8
1

1
2
2

6. 1
1. 3
2, 4

5

5. 1

$ 7 1 .4 3

1

________________ _________________

1

i
______

112

T a b le 1 9.

N o r m a l r e t ir e m e n t b e n e fit s , exc lu d in g s o c ia l s e c u r ity b e n e f it s , f o r w o r k e r s e a rn in g $ 4 , 8 0 0 p e r y e a r fo r 30 y e a r s o f fu tu r e c r e d ite d s e r v i c e
.by typ e o f b e n e fit f o r m u la , in m u lt ie m p lo y e r p e n sio n p la n s u n d e r c o lle c t iv e b a r g a in in g , sp r in g I 9 6 0

i thousands)

Plans

Amount of monthly
benefit

—

. —

Under $30
$30 and under $40
____
$40 and under $50 ------ ------—
$50 and under $60
$60 and under $70
$70 and under $80 — ----------$80 and under $90 —-----------$90 and under $100 —------—
$100 and under $110 ------—
$ 110 and under $ 120
$ 120 and under $ 130 —-------$130 and over
— — —
Plans for which benefits
were not computed
A verage’

Benefits
vary by
earnings
and
service

Benefits
vary by
service
alone

Benefits
are a
percent of
employer
contribution

Workers1

Plans

Workers1

Plans

Workers1

Plans

736

3. 229.8

188

1 .563.9

455

1 .2 6 7 .6

6

5 8 .4

24

270. 8

40
84
87
169
96
67
8
28
50
11
14
13

208.0
137. 3
347.8
824.9
324. 1
382. 6
31.7
79.9
535.0
20.4
39. 2
209. 5

23
28
23
72
9
10
2
21
9
2
36

57. 1
66.6
192.6
660.7
85.5
31.8
7.7
1.0
275. 1
1.7
179.8

17
55
60
95
78
53
4
26
40
11
10
6

150.9
62. 8
112. 1
163. 8
218. 3
142.9
17. 1
77.9
255. 3
20.4
29.9
16. 3

1
1
3
1
-

_
41 .7
.3
10. 3
6. 1
-

1
3
1
5
4
1
1
1
1

8 .0
1. 4
.1
8 .9
207.8
.8
4 .6
.9
13. 3

89. 5

3

4. 3

-

6

Benefits
are a
percent of
employee
contribution

25.0

Number

A ll plans

Flat
benefit
for
specified
service

69
$68 . 34

------------------------------

___________

!|

$68 .91

1 _ _ _ _
_

-

Workers1

Plans

Workers1 Plans

Other

Workers1

Plans

3

8 .9

60

_
_
1
1
1
-

_
_
_
1. 1
_
1. 1
_
6. 8
-

Workers1

_
_
_
_
_
_
_
_
_
_
4 60

60. 2
_
_
_
_
_
_
_
_
_
_
60. 2

$66 .97

1__________
1

L__________ __________ 1

1
r

_ _ _ _ 1_

1 Worker coverage includes both active and retired workers in 1959.
2 Includes 1
plan with 1,000 workers which provided $90 a month for the first 5 years ofretirement,
and $25 thereafter. •
3 Includes 3 plans with 174, 500 workers which provided $135 a month for the first 5 years ofretirement, and $70 thereafter; and 1
plan with
3,000 workers
which provided $175 a month for the first 5 years of retirement, and $85 thereafter.
4 Includes 23 plans with 23,900 workers which had no specific benefit formula; 31 plans with 31,000 workers for which information was notavailable;
and
6 plans with 5, 300 workers for which the computation of benefits was not possible.
5 Arithmetic mean weighted by number of workers.
NOTE:

B e c a u s e o f r o u n d in g ,




su m s

of in d ivid u al it e m s m a y not eq u a l to t a ls .

T a b le 2 0 .

P r o v is io n s fo r n o r m a l, e a r ly , d is a b ilit y r e t ir e m e n t , and v e s t in g in m u lt ie m p lo y e r p e n sio n p la n s u n d er c o lle c t iv e b a r g a in in g
b y p la n s and w o r k e r s c o v e r e d , sp r in g I 9 6 0

Percent

All plans

Normal retirement

Workers 1
2

Plans

Workers2

736

3 ,2 2 9 .8

100. 0

100. 0

194. 7
332. 5
124.7
102. 3
1 ,2 8 5 .8
64. 1
883. 2
211. 6
31. 0

9 .5
13. 6
5 .4
7. 1
27. 3
4. 5
24.9
3. 4
4. 2

6. 0
10. 3
3 .9
3. 2
39.8
2. 0
27. 3
6 .6
1. 0

Plans

3, 229.8

736

70
100
40
52
202
33
183
25
31

Early retirement1

Workers2

Plans

Number

262

754. 3

>
c
X




o f rou n d in g ,

Plans

1,474. 5

168

£
£

Workers2

595. 0
3c

3
c

X

Vesting

Workers2

386

t
3

>
:

c
3

X

>i
*
>i

£
£

X

X

X

(N o t
1

B ecau se

Plans

t
3

s u m s o f in d ivid u al it e m s m a y not eq u a l t o t a ls .

a v a ila b le )

1

1

1

1
_______________________ 1
_____________________ 1
__________________________ !_______________________ ______________ i ______________
_

1 Excludes 38 plans covering 677, 000 workers which provided early retirement for women only.
2 Worker coverage includes both active and retired workers in 1959.
NOTE:

Disability retirement

Workers2

114
T a b le 2 1 .

T y p e o f b e n e fit p r o v is io n s in m u lt ie m p lo y e r p e n sio n p la n s b y in d u str y g ro u p ,

sp r in g

I9 6 0

(Workers in thousands)
All plans

Normal
retirement

Industry
Number

Early
Disability
retirement1 retirement

Vesting

Workers 2

736

3, 2 2 9 .8

Manufacturing industries ----------------------------

270

1 ,2 3 9 . 6

Food and kindred products ____________________

84
10
31
5
6
4
18
3
6
1

226. 8
17. 5
1 3 9 .7
9 .2
4 .9
7. 6
3 6 .6
3. 3
7. 8
.3

78
1
1
28
41
7

772. 9
11. 6
1. 0
4 3 8 .4
320. 1
1 .9

53
8
13
1
9
2
13

63. 0
5 .9
20. 3
2. 0
3. 0
3 .8
23. 0

1
5
1

(3)

X

5. 0

X

6

24. 2

1
1

.3
1. 8

X
X

X

4

22. 1

X

-

27

5 5 .7
13. 5
5 .4

X

X

X

5

X

X

X

-

1

. 1

X

X

X

3

7. 3

X

X

-

4
5
4
2

1. 1

X
X

X

X

17. 3
6 .7
4. 3

X

_
_

Apparel and other finished textile products___

Printing, publishing, and allied industries ____

Leather and leather products _________________

Metalworking __________________________________

3

Miscellaneous manufacturing --------------------------

9
454
4
1
3

295. 4
.4
295. 0

232
31
26
14
10
17
45
14
64

612. 0
73. 2
75. 2
4 0 .8
8 .4
42. 2
82. 1
9 .8
265. 1
15. 1

3
1
4
2

Contract construction----------------------------------------

11

See footnotes at end of table.




X

X

X

-

X

X

X

X

X

X

X
X
X
X

(N o t

X

X

X

X

X
X

(N o t

X

av a i l a b l e )

X

X

-

X

X

-

X

X

-

av a i l a b l e )

X

X

X

X

X

X

-

X

X

X

X

X

X

X

X
X

X

(N o t
-

(N o t

X

a v a ila b le )

X

_
av a i l a b l e )

X

_
X

-

X

X

-

1 ,9 6 9 . 1

1

Mining ________________________

X

X
X

(3)

97. 0
1 .4
16. 0
6. 8
.9
4 5 .7
1. 7
2 4 .4

22
2

Nonmanufacturing industries _ ____________

X

X

X

X

X

X

X

X
-

X

X
-

X

-

X

-

X

X
_
X
-

X
_

X

X

-

-

X

X

X

-

X

X

X

X

X

X

X

X
-

X

X
-

X

X
X

-

X

-

X

-

(N o t

-

X
_
-

av a i l a b l e )

X
X
_
X
_
X
_

Table 21.

Type of benefit provisions in multiemployer pension plans by industry group,

_______________________________________

spring I960— Continued

(Workers in thousands)
All plans

Normal
retirement

Industry
Number

498.9
23. 3
11.9
1. 3
39. 2
1. 1
39. 3
196. 0
186. 0
.7

41
9
2
1
26
2
1

147. 6
52. 0
.6
.5
86.9
5. 7
2. 0

89
3
4
6

295.8
35.9
4. 8
62. 7
19. 1
7. 0
63. 3
(3)
9 6 .4
6. 7

Vesting

Workers1
2

46
5
5
3
9
1
10
1
11
1

Disability
Early
retirement1 retirement

Nonmanufacturing industries— Continued
Motor transportation ----------------------------------------

Water transportation ----------------------------------------

Wholesale and retail trade

------------------------------

6

3
22
1
37
7
Services

-------------------------------------------------------------------------------------------

Motion pictures and recreation

-----------------------------------

25
3
2
5
3
2
10

67.9
2. 9
3.9

14
1
1
7
1
4

49.
4.
2.
6.

.8

10.9
36. 1
13.4
5
2
0
7
. 2
36.4

X

X

X

-

X

-

X

X

X

-

X

X

-

X

X

-

X

-

-

X

-

-

X
X

(N o t

av a i l a b l e )

X

X

X

-

X

X
X

-

3

X
X
X

-

(N o t

X
-

av a i l a b l e )

X

X

X

X

X

-

X

X

-

X

X

X

-

-

X

-

X

X

X

-

X

-

X

-

-

X

-

-

X

-

(N o t

av a i l a b l e )

Interindustry manufacturing and
nonmanufacturing --------------------------------------------------------

X

X

X

X

X

X

X

-

X

X

-

X

X

X

-

-

X

-

X

X

-

-

X

X

X

X

X

-

-

X

-

X
-

3
i

X
X

X
-

-

3

2. 1
1. 1

X

X

2

------------------------------

X

X

1

Miscellaneous nonmanufacturing

X

X

X
X

X

1. 0

X

-

12
4

21. 0
5 .4

X

X

X

1

1. 8

X

X

2
1
2
2

6. 3
.4
6. 2

X

X

X
-

X

X

X

-

X

-

X

1. 1

X

X

X

1 Excluded are 38 plans with 677,000 workers which provided early retirement for women only, however, these plans were
found mainly with apparel industry where a large majority of the employees are women.
2 Worker coverage includes both active and retired workers in 1959.
3 Fewer than 50 workers.
NOTE:

B e c a u s e of rou n d in g,




s u m s o f in d ivid u al it e m s m a y not eq u al to t a ls .

116

Table 22.

Type of benefit provisions in multiemployer pension plans
by medium of funding, spring I960
(W orkers in thousands)
P la n s

M e d iu m o f fu n d in g

N orm al
N um ber

_______

AU plans
In su re d

— -------------------------------- —------------

S e lf-in s u r e d

___________________________

736

—----------------------------------------- ---------

V e s t in g

3, 2 2 9 , 8

116
15
8
17
4
12
14
16
23
7

329. 6
8. 3
5 .9
12. 7
7. 1
14. 2
26. 8
205. 2
44. 9
4 .6

590
52

2, 5 3 9 . 6
182. 8
326. 2
108. 8
95. 3
40. 1
683. 3
6. 2
1 ,0 7 1 .4
25. 6

91
20
48
17
167
8
165
22
O th e r

E a r l y 1 D is a b ility

W ork ers2

30
3
1
3
4
1
14
2
2

360. 7
3. 6
. 5
3. 2
9 .8
. 2
169. 5
173. 1
.9

X

X

X

X

X

X

X

-

X

X

-

X

X

X

-

X

-

X

X

-

X

-

X

-

-

X

X

X

(N o t

-

a v a ila b le )

X

X

X

X

X

X

-

X

X

X

X

X

-

X

_
-

X

X

X

X
X
X

(Not

-

X

-

-

X

-

a \ ra i l a b l e ) 1

X

X

X

X

X

X

-

X

X

-

X

X

-

X

X

X

X

X

-

-

X

-

X

!( N o t

X

-

available)

1
1 Excludes 38 plans covering 677, 000 workers, mainly self-insured plans, which p ro­
vided early retirement for women only.
2 Worker coverage includes both active and retired workers in 1959.




NOTE:

Because of rounding, sums of individual items may not equal totals.

T a b le 2 3 .

P r o v is io n s fo r e a r l y and d is a b ilit y r e t ir e m e n t , and v e s tin g in m u lt ie m p lo y e r p e n s io n p la n s
under c o lle c t iv e b a r g a in in g b y in d u str y g r o u p , sp r in g I 9 6 0

(Workers in thousands)
Plans with early
retirement1

All plans
Industry

Plans with disability
retirement1
2

Plans with vesting 3

Information not
available for early
and disability
retirement
and vesting

Number

Plans

Number

Workers4

Number

W orkers4

Number

736

3. 229.8

262

754. 3

386

1 .4 7 4 .5

168

595. 0

31

31.0

270

1, 239.6

103

265.4

155

807. 6

49

81.0

11

6 .5

84
78
53
6
27
22

226.8
772.9
63.0
24. 2
55.7
97.0

52
2
31
12
6

171. 2
12. 6
31. 1
26. 3
24. 2

63
29
36
2
17
8

201.4
449.9
52.9
2. 1
37. 2
64. 0

22
2
12
1
8
4

37. 6
12. 6
11. 7
.3
14.8
4 .0

1
7
1
2
-

0 .3
1.9
(5)
4. 3
-

------- ------— --------------------

454

1.969. 1

151

475. 1

224

653. 5

111

501.4

20

24. 5

Mining — -----—— —------------------------------- — -------- —
Contract c o n str u c tio n -----------------------------------—
Motor transportation
—------------------ ----------------Water transportation
--------------------------------- ----Wholesale and retail trade --------------------------- —
—
Services ----------------------- --------------------------------—
Motion pictures and recreation ------- — --------- —
Miscellaneous nonmanufacturing -------------------

4
232
46
41
89
25
14
3

295. 4
612.0
498.9
147. 6
295. 8
67.9
49. 5
2. 1

1
81
22
12
19
13
2
1

0 .4
197.7
75. 7
53.0
122. 4
18. 4
6. 2
1. 1

1
119
21
35
32
7
8
1

0 .4
272.8
75. 6
138. 8
110.9
42.9
10. 9
1. 1

76
10
2
13
8
2
-

_
165. 3
221.7
.6
105. 6
3.7
4 .4

_
11
1
1
7
-

_
15. 1
.7
2.0
6. 7
-

-

-

12

21.0

8

13. 8

7

13.4

8

Food and kindred p r o d u c t s ------------------- -------—
Apparel and other finished textile products —
Printing, publishing, and allied industries — Leather and leather products — --------- -— —— —
M etalwo r k i n g ----------— — —-----— ----------------------Miscellaneous manufacturing — — --------------- —
Nonmanufacturing

Interindustry manufacturing and
nonmanufacturing —------------------------ -------

-

Workers4

1 Excluded are 38 plans covering 677,000 workers which provided early retirement for women only.
the large majority of the employees are women.
2 Excluded are plans which provided lump-sum disability benefits only.
(See p. 3 4 .)
3 Excluded are plans which provided lump-sum termination benefits only.
(See p. 3 7 .)
4 Worker coverage includes both active and retired workers in 1959.
5 Fewer than 50 workers.
NOTE:

B e c a u s e o f rou n d in g ,




s u m s o f in d ivid u al it e m s m a y not eq u a l t o t a ls .

Workers4

-

-

12. 7

_

Workers4

_

These plans were mainly in the apparel industry where

118
T a b le 2 4 .

P r e v a le n c e o f le v e l in c o m e option u n d er e a r ly r e t ir e m e n t p r o v is io n s in m u lt ie m p lo y e r p e n sio n p la n s
un der c o lle c t iv e b a r g a in in g b y in d u stry gro u p , sp r in g I 9 6 0 1

(Workers in thousands)
All plans with
early retirement

Industry

Without level
income option

With level income option

Plans

Workers

Plans

Workers

Plans

Workers

_________________________________

262

754. 3

39

134.4

223

619.9

Manufacturing ----------------------------------------------

103

265. 4

13

14. 1

90

251. 3

Food and kindred products ____________________
Apparel and other finished textile products —
Printing, publishing, and allied industries---Leather and leather products -------------------------Metalworking ---------------------------------------------------Miscellaneous manufacturing --------------------------

52
2
31
12
6

171.2
12. 6
31. 1
26. 3
24. 2

11
1
1

12. 2
1. 0
.9

41
2
31
11
5

159. 0
12. 6
31. 1
25. 3
23. 2

Nonmanufacturing ---------------------------------------

26

120. 3

125

354. 8
0 .4
139. 6
73. 5
53. 0
72. 4
14. 7
. 1
1. 1
13.8

All industries

151

475. 1

Mining _________________________________________
Contract construction _________________________
Motor transportation --------------------------------------Water transportation __________________________
Wholesale and retail trade ------------------------------Services _______________________________________
Motion pictures and recreation ----------------------Miscellaneous nonmanufacturing ____________

1
81
22
12
19
13
2
1

0 .4
197. 7
75. 7
53. 0
122. 4
18.4
6. 2
1. 1

Interindustry manufacturing and
nonmanufacturing ________________________

8

13. 8

_

.
16
1
3
5
1
-

58. 2
2. 2
50. 1
3. 7
6. 1
-

1
65
21
12
16
8
1
1

-

-

8

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering 3,2 2 9 ,8 0 0 active and retired
workers in 1959.
NOTE: Because of rounding, sums of individual items may not equal totals.1

Table 25.

Prevalence of level income option under early retirement provisions in multiemployer pension plans
under collective bargaining by medium of funding, spring I960 1
(Workers in thousands)
Medium of funding
Plans
Insured

Provision

Self-insured

Other

Number

Workers

Plans

Workers

Plans

Workers

All plans with early retirem ent_______________

262

754. 3

44

33.9

211

713. 1

7

7. 3

With level income option --------------------------------No level income option ________________________

39
223

134. 4
619.9

11
33

6 .9
27. 0

27
184

125. 6
587.4

1
6

1.9
5 .4

Plans

Workers

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering 3,2 2 9 ,8 0 0 active and retired
workers in 1959.
NOTE:

B e c a u s e o f rou n d in g,




su m s

o f in d ivid u al it e m s m a y not eq u al to ta ls .

119
T a b le 2 6 .

P r o v is io n s f o r death b e n e fits b e f o r e and a ft e r r e t ir e m e n t in m u lt ie m p lo y e r p e n sio n p la n s u n d er c o lle c t iv e
b a r g a in in g by in d u str y g r o u p , sp r in g I 9 6 0

(Workers in thousands)
Death benefits

Information
not available

All plans
Industry

Before retirement
Number

Workers1

Plans

Workers1

After retirement
Plans

Workers1

Plans

Workers1

31. 0

736

3, 229. 8

123

830.9

113

849. 0

31

Manufacturing ----------------------------------------------

270

1, 239. 6

32

4 6 .4

46

423. 2

11

6. 5

Food and kindred products ------------------------------Apparel and other finished textile products---Printing, publishing, and allied industries---Leather and leather products _________________
Metalworking ---------------------------------------------------Miscellaneous manufacturing
— - —

84
78
53
6
27
22

226.
772.
63.
24.
55.
97.

8
9
0
2
7
0

14
4
7
1
6
-

25. 0
2. 0
7. 7
.7
11. 0
-

9
27
1
1
6
2

19.9
365. 1
3. 0
.7
23.8
10.6

1
7
1
2
-

0 .3
1.9
(2)

2. 0

2 4.5

11
1
1
7
-

15.1
.7
2 .0
6 .7
-

-

-

454

1,969. 1

89

778.4

65

417.9

Mining
_ _ _ _ _ _
Contract construction _ — -----_ -------Motor transportation __________________________
Water transportation _
_ __ _ _
Wholesale and retail tr a d e _________________ —
_ _ _ _ _ _ _ _
Services _ ------- __ _
Motion pictures and recreation _ _ _ _
Miscellaneous nonmanufacturing__________ ___

Nonmanufacturing _

___________ ____

4
232
46
41
89
25
14
3

295.
612.
498.
147.
295.
67.
49.
2.

4
0
9
6
8
9
5
1

1
62
10
11
1
4
-

251.6
110.9
4 0 1.0
7 .6
.3
7 .0
-

1
38
3
7
12
1
3
-

251.6
57.8
3. 1
8 6 .0
12. 3
.3
6 .8
-

Interindustry manufacturing and
nonmanufacturing ________________________

12

21. 0

2

6 .1

2

-

7 .9

4 .3
-

1 Worker coverage includes both active and retired workers in 1959.
2 Fewer than 50 workers.
NOTE: Because of rounding,

Table 27.

sums of individual items may not equal totals.

Provisions for death benefits before and after retirement in multiemployer pension plans
under collective bargaining by medium of funding, spring I960
(Workers in thousands)
Death benefits
Plans

Medium of funding

Before retirement

After retirement

Number

Workers 1

Plans

----- ----

736

3 ,2 2 9 .8

123

830.9

113

849.0

In su re d -------------------------------------------------------------Self-insured
__— _
_ _ _
__ _
Other
____
_
------—

116
590
30

329.6
2 ,5 3 9 .6
360.7

25
88
10

211.4
610.2
9 .3

12
99
2

5 .4
838.5
5.2

All plans

—

------

—

__

__

1 Worker coverage includes both active and retired workers in 1959.
NOTE:

B e c a u s e o f rou n d in g ,




s u m s o f in d ivid u al it e m s m a y n o t e q u al t o t a ls .

Workers1

Plans

Workers 1

120
T a b le 2 8 .

D e sig n a te d o f f ic e r s o f b o a r d s in m u lt ie m p lo y e r p e n sio n p la n s un der c o lle c t iv e b a r g a in in g , sp r in g I 9 6 0 1

(Workers in thousands)
Chairman

Co-chairmen

Secretary

Treasurer

Other officers

nore officers
X
_

X
-

_

-

-

X
-

-

-

-

_

X

-

-

_

-

X

-

-

X
_

-

X

-

-

X

-

-

X

-

X

X
-

X

-

X
_

-

-

-

X

X

X

-

X
_
X
_
X

X
X

-

-

X

X

-

X
-

-

X

X

-

X

X

X

-

-

X

-

-

X

-

X

-

X

X

X
-

-

X

X

X

X

-

2X

X

X

-

X
_

-

X

X

X

3X

X
-

X

4x

-

X
-

-

X
-

X
-

X

X
-

X

-

X

-

X

_
_

2x
3x
2X

X

-

Plans

Workers

591

Vice chairman

2 ,9 1 7 .0

47
37
26
7
287
21
64
2
13
1
20
6
28
1
1
5
2
4
5
2
10

987.0
76.8
87. 3
2 2.2
1 ,0 2 5 .8
75 .2
163.4
5 .2
69.7
. 5
8 3 .4
4. 1
142.6
1.9
2.6
29.7
12. 0
29. 1
3.8
1. 5
57.6
34.9

1
1

1

.

1

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering approximately 3, 229, 800 active
and retired workers in 1959.
2 Co-vice chairmen.
3 Co-secretaries.
4 Co-treasurers.
NOTE: Because of rounding, sums of individual items may not equal totals.




T a b le 2 9 .

P r o v is io n s fo r s e le c t io n o f o f f i c e r s in m u lti e m p lo y e r p e n s io n p la n s u n d er c o lle c t iv e b a r g a in in g , sp r in g I 9 6 0

(Workers in thousands)
Chairman
Plans

Vice chairman

Workers

Plans

Workers

Secretary

Treasurer

Plans

Workers

Plans

Other officers

Workers

Plans

Workers

All plans with designated officers ------------------

583

2 ,8 9 4 .4

139

535.0

463

1,653. 3

84

378.8

21

120. 9

By the board _ ------------------------------------------No alternating re q u ire d ----------------------- ------No group limitation _ ---------- ------------- _ _
From specified group „ —
_ _
---From different group than that of - -----Chai rm a m -----—--------------------- — --------Vice chairm an_______________________
Secretary
—__________ ___ __________
Treasurer
------------------- ---Secretary and tr e a s u r e r ------------------Chairman and vice chairm an-------- —
Other officers _ __ ____
Alternating between groups each te r m ------No further limitation ___ —_ _ _ _
From different group than that of --------Chairman
..
. ________ ,__
Vice chairman _______________________
Secretary__________ —,___ ________ ____
Treasurer
-------- _ —
---Vice chairman and treasurer _______
Chairman and secretary -------- _ —
Secretary and tr e a su r e r ___ _______
Chairman and vice chairman __ „
Secretary and other o ffic e r _________
Chairman and vice chairm an-----------Co-chairmen ______ _____
- --------- __
Co-vice chairmen _ ____ _____ _ __ _ _
C o -secretaries---------------------------------------------C o-treasurers------------------------- ----------------------

478
295
128
31
136
17
115
2
2
113
25
88
63
21
1
1
1
1
70
-

1,725. 0
1 ,0 7 3 .0
494.8
8 4 .4
493.8
85. 2
393.9
5 .2
9 .5
489.5
241.2
248.3
138.6
7 5 .0
.1
3. 5
1. 1
30. 0
162. 5
-

124
54
30
6
18
17
1
66
66
63
1
1
1
.4
"

406.7
185.5
7 9 .9
10.9
94.7
85. 2
9 .5
173. 2
173.2
138.6
3.5
1. 1
30.0
48. 0
-

391
355
199
32
124
116
6
1
1
24
24
21
1
1
1
5
-

1, 152.0
1 ,0 0 9 .7
502.9
97. 1
409.7
393.9
3.7
9 .5
2 .6
109.6
109.6
7 5 .0
3 .5
1. 1
30.0
3.8
-

63
58
37
11
10
4
6
3
3
1
1
1
2

251.9
245.7
204.6
22.7
18.4
14.7
3.7
4 .7
4.7
.1
3.5
1. 1
1.5

17
16
14
1
1
1
1
1
1
-

110. 3
80. 3
77. 3
.4
2 .6
2.6
30. 0
30.0
30. 0
-

By union and/or employers
_ — _______
No group limitation ___ __ ____ ____ _ _
Alternating between groups each te r m ____
From different group than:
Chairman ----------- --------------------S ecretary---------------------------------------------

22
20
2

608.7
6 0 2.4
6. 3

_
-

_
"

7
5
2

28.9
22.6
6. 3

1
1

.3
.3

“

_
-

2

6. 3

-

-

2
-

6. 3
-

“

-

-

"

'

----------- ------

12

173.7

8

113.4

10

125.4

8

113.4

1

(2 )

Information not a v a ila b le ---------------------------------

71

387. 3

7

14.9

62

375.9

12

13.3

3

10. 5

Other ----------------------

--------

- —

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering approximately 3 ,2 2 9 ,8 0 0 active and retired workers in 1959.
2 Fewer than 50 workers.
NOTE: Because of rounding, sums of individual items may not equal totals.




Table 30.

Provisions for special meetings in multiemployer pension
plans under collective bargaining, spring I960

T a b le 3 1 .

V o tin g r u le s in jo in t ly a d m in is te r e d m u lt ie m p lo y e r p e n s io n
p la n s u n d e r c o lle c t iv e b a r g a in in g , sp r in g I 9 6 0 1

(Workers in thousands)

(Workers in thousands)
Plans

Special meeting called by

Plans

Workers1

Number
736

826. 6
11.4
558.4
39.2
217. 6

Chairman or another officer or board members .................. —
Chairman or another officer only —— --------- ------. . . ----Chairman or another officer or 2 board members —— —
Chairman or another officer or 3 board m e m b e r s ---------Chairman or another officer or 4 and more
board members - — — -----—--------------------- -------- ------------- —

122
15
71
16

452.9
125.0
153. 3
63.0

20

111.6

board members ------—
only
-----------— -------— —
---or 3 board members -------or 4 board members — — -

44
33
4
7

138. 6
94.0
10. 8
33.8

Any board members —-------------------------------- — ------------- ---- ------1 board member , ------- ,------, nr. i . . r ------------*
-------------------------------— --------------------- —
------- ------— —
2 board members
3 board members
——--------------------- — ------— ——--------------4 and more board members ----------- ----------— ------------------- -

111
31
55
10
15

630.6
187.9
193.9
13.0
235.8

No provision, or information not available —— —— --------------

15
276

Percent

Number

Percent

718

100.0

3.032. 8

100.0

206
130
49
17
10

28.7
18. 1
6 .8
2 .4
1 .4

529.0
328.8
147.7
45 .9
6 .6

17. 4
10.8
4 .9
1. 5
.2

Members present --------------------Votes cast —--------- -----------------—
Q u o r u m -------------------------------------

167
20
44
101
2

23. 3
2 .8
6. 1
14. 1
.3

721.7
200. 8
78. 3
440.9
1.7

23.8
6 .6
2 .6
14.5
.1

Majority with specified number — Board ----------------- ---------------------- Members p r e s e n t ----------------Votes c a s t ----------------------------------

62
40
19
3

8. 6
5. 6
2. 6
.4

143.4
101. 3
30. 3
11.7

4 .7
3. 3
1.0
.4

Unanimous or unit rule — -----------—,
Other ------------------------------------ ---- -----No provision, or information
not available —------------------------------

178
4

24. 8
.6

1 ,0 4 7 .7
8. 6

34 .4
.3

101

14. 1

583.4

19.2

3. 229. 8

168
14
101
26
27

Workers

Voting rule

84. 9
1 ,0 9 6 .4

A ll jointly administered plans 2 ——
Chairman or board members ----------------------------------------------- —
Chairman or 2 members

-------- ------------------------------------- —

Chairman or 4 and more board members

Chairman and another officer or
Chairman and another officer
Chairman and another officer
Chairman and another officer

............... ........—

Majority________________
Board

----------------------------------------

Votes cast

----------------------------------

Majority with equal voting power —

1 Worker coverage includes both active and retired workers in 1959.

1 Based on a study of 736 multiemployer pension plans under collective
bargaining covering approximately 3, 229,800 active and retired workers in 1959.
2 See footnote 2 in text tabulation on p. 57.

NOTE: Because of rounding, sums of individual items may not equal totals.

NOTE: Because of rounding, stuns of individual items may not equal totals.




T a b le 3 2 .

P a r t ie s p e r fo r m in g s p e c ifie d fu n ctio n s in m u lt ie m p lo y e r p e n s io n p la n s u n d er c o lle c t iv e b a r g a in in g ,

sp r in g I 9 6 0

(Workers in thousands)
All plans
Maintains records
Number

Receives applications

Board
Employers
Board
Employers
Board
Union
Union
Corporate trustee
Corporate trustee
Service organization
Service organization
Service organization
Board and insurer
Board and insurer

Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board

Processes claims

Determines eligibility

Appeals are directed

Makes final
decision on appeals

Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board

Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board
Board

Workers1

736

3. 229. 8

487
4
4
4
6
16
30
16
4
15
19
7
5
4
2 106
9

2, 067. 3
4. 1
322.9
4. 2
10. 5
25. 3
333. 4
25. 6
11.0
8. 8
86. 1
5 .0
208. 5
6. 5
9 7 .9
12. 6

___________________________

Board
Board
Board
Board
Insurer
Board
Board
Employers
Board and insurer
Board
Board
Board
Union
Board
Board
Board
Corporate trustee
Board
Board
Board
Service organization
Board
Service organization
Service organization
Board and insurer
Board
Board and insurer
Board
M i s c e lla n e o u s
In fo r m a tio n not a v a ila b le

1
1_______1
_

1 Worker coverage includes both active and retired workers in 1959.
2 Does not exceed 3 plans for any one combination.
NOTE: Because of rounding, sums of individual items may not equal totals.




1

1

1

_________________________ ___________________________




Appendix A: Scope and Method of Study

The chief sources of information for this study were the reports and documents filed
with the U. S. Department of Labor’s Bureau of Labor Standards pursuant to the Welfare and
Pension Plans Disclosure Act (PL 85-836). Administrators of any employee welfare or pen­
sion benefit plan, as defined by the act, covering more than 25 workers are required to
file with the Department two copies of a description of the plan, within 90 days after the
effective date of the act (January 1, 1959) or plan (whichever occurs later), and two copies
of an annual financial report within 120 days after the end of each calendar, policy, or other
fiscal year.
By the spring of I960, plan descriptions for over 136,000 welfare and pen­
sion plans, and about 100, 000 annual financial reports had been filed.
Virtually all reports are filed on the forms issued by the Department: The D -l
form for use in describing the plan and the D-2 form for making the annual financial report.
The D -l description plan form (reproduced in appendix B) requires that the follow­
ing information and documents be submitted:

1.

Name and address of the plan.

2.

Accounting period of the plan.

3.

Type of plan (i. e. , welfare, pension, or combination).

4.

Group(s) covered by the plan (hourly rate,

5.

Industry in which most participants are employed (8 industry divisions are listed).

6.

Whether the plan is mentioned in a collective bargaining agreement.

7.

Parties making contributions (employer, participants, union).

salaried,

or all employees).

8. The name and address of the administrator (in multiemployer plans, usually a
board of trustees) and the names and addresses of person(s) constituting the administra­
tor, their official positions with respect to the plan, their relationship to the employer
and employee organization, and any other offices, positions, or employment held by them.
9. A detailed description of the administration of the plan, including the names of
the party or parties performing the following functions: Maintaining records; determin­
ing eligibility; processing claim s; making determination on appeals; authorizing payments;
making payments; authorizing expenses; selecting the insurance carrier, corporate trus­
tee, or service organization; and determining investment policy.
10. The name and address of the party or organization through which benefits are
provided.
11. Names,
8 or 10.

titles,

and addresses

of any trustee(s) not mentioned under items

12.
Copies of plan documents under which the plan is established and operated,
schedule of plan benefits, and a statement of the procedures to be followed under the
plan in presenting claims for benefits and for appealing the denial of claims.

The D -2 form, which in this study was used only to obtain the number of members
(active and retired) covered by each plan, also shows the assets, liabilities, contributions,
benefits paid, and salaries and commissions paid.




125

126

One of the initial problems in the conduct of this study was to locate the multi­
employer pension plans among the 136,000 welfare and pension plan descriptions filed with
the U. S. Department of Labor by the spring of I960. Twenty-five thousand of these plans
were readily identified by the Bureau of Labor Standards as providing pension benefits or
a combination of welfare and pension benefits, from item 3 (type of plan) on the D -l form.
However, no information on the forms would serve to distinguish directly multiemployer
from single employer pension plans. To reduce the 25, 000 plans to a manageable number
for investigation, it was assumed that few multiemployer pension plans under collective
bargaining are administered solely by an employer(s) or an employers' association.
On
this basis, nearly 2 0 ,0 0 0 pension plans for which item 8 (D -l) showed employer admin­
istration were removed from consideration.
The descriptions and supporting documents
of each of the remaining 5, 600 pension plans administered jointly or by an employee or­
ganization were examined to determine whether they were, in fact, multiemployer pension
plans under collective bargaining.
A comparison of the resulting list of plans with plans mentioned in other sources
in the Bureau of Labor Statistics— union convention proceedings, financial reports, the Bu­
reau's file of collective bargaining agreements, and staff knowledge of the field— revealed
some om issions.
A subsequent check of the Bureau of Labor Standards' union index ref­
erence file filled in these and some other gaps.
In all, 798 multiemployer pension plans,
each with more than 25 workers, covering a total of 3 ,3 2 4 ,8 0 0 workers (active and retired),
were identified. It is believed that all or virtually all such plans in effect in the spring of
I960 are accounted for in this study. Multiemployer pension plans not under collective bar­
gaining were excluded from the study because of their unimportance in relation to the whole
pension field. 38
The standard documents used for analysis are briefly described below.
Although
these documents are usually necessary to provide a complete description of the establishment
and operation of a multiemployer pension plan as required by the act, other documents or
descriptive materials may have been and often were substituted.
1. Collective bargaining agreement between the union(s) and the employer(s) (or
association of employers) describing, among other things, the employers' obligation
either to make specified contributions to a trust fund or provide specified pension bene­
fits or both.
2. Pension plan stating in full the pension plan adopted by the board of trustees
or negotiated by the employers and union. Only simplified booklets issued to plan par­
ticipants, rather than the full text of the plan, were typically available for insured plans.
3. Trust agreement (also called "agreement and declaration of trust" or "trust in­
denture") detailing the powers, duties, and obligations of the board of trustees appointed
to administer the plan.
4. Master group annuity contract setting forth the full text of the insured pension
plan and obligations of the parties.
5. Individual certificates
sured plans.

of participation issued to participants under some in­

6. The corporate trust agreement setting forth the responsibilities of the parties
where a bank or trust company is given the responsibility for the investment or safe­
keeping of funds or both.
7. The D -l and D -2 forms and attachments which give an overall description of
the plan and summary financial information.

38 To the Bureau's knowledge, although there are some multiemployer pension plans
established outside of a collective bargaining relationship, they are believed to comprise only
a small fraction of the total. The expense and effort involved in locating these plans p re­
cluded their inclusion.
Further, had they been included, it would have been necessary to
study them apart from collectively bargained plans, because of the basic difference in admin­
istrative procedures.




127

For certain key characteristics, as explained below, the analysis was based on sup­
porting documents filed by the administrators, rather than on the form itself, supplemented
by other sources of information available to the Bureau of Labor Statistics.
Plan administrators indicated on the D -l form (item 5) the industry division in which
m ost of the participants were employed. Eight broad divisions were listed: Manufacturing;
mining; construction; transportation; communications and utilities; wholesale and retail trade;
finance, insurance, and real estate; and services. To provide a more informative and mean­
ingful breakdown of the plans studied and to correct errors in reporting (probably mostly due
to the lack of industry definitions), each plan was classified into the 2-digit industry groups
of the Standard Industrial Classification.
Guidance for this classification was obtained from
the D -l form , and was checked against supporting plan documents. For some plans it was
also necessary to check other sources available to the Bureau of Labor Statistics.
The unions participating in the plan were usually not fully identified on the D -l form
(i. e. , the name of the national or international union with which the participating local was
affiliated was often omitted); in most cases, the supporting plan documents thus had to be
examined.
For some plans, however, complete identification was only possible by uti­
lizing other sources.
The number of employees participating (active and retired) in each plan was usually
obtained from the D -2 forms (item 6B). For some 100 plans, however, estimates of cover­
age had to be made by using other sources, primarily the Bureau’ s current file of collective
bargaining agreements and reports submitted for the Bureau’ s union wage scale surveys.
In the absence of such data, or as a check on its accuracy, additional sources (union con­
stitutions, union financial reports, and other Bureau files) were used. In a few cases where
there were no reports on which to base an estimate, estimates were made by drawing upon
the general knowledge of the Bureau's professional staff.
Complete information about some subjects analyzed in this report was not available,
either because no documents were submitted or the documents submitted were oversimplified
or incomplete.
However, the notation that information was "not available" does not nec­
essarily mean that the submission was incomplete.
The information desired could not be
obtained from some complete submissions becaus-e it was not given in a suitable form. It
was impossible, for example, to determine the employers' pension contribution rate under
some plans with a single, combined contribution rate for both welfare and pension benefits.
Nor could the rate be obtained for other plans with flexible contribution rates, where the
applicable rate was dependent on each individual em ployer's collective agreement.
Since
these rates affected some benefit provisions, the latter also were classified as "not available."
If, however, the rate and benefits applicable to the largest number of workers were known,
they were used, as in other studies by the Bureau of Labor Statistics, to represent the rate
and benefits for all workers under the plan.
For the above reasons, data are not presented for alT plans for all items. However,
the selectioh of items for analysis and the techniques used were based on the Bureau’ s pre­
vious experiences in pension plan analyses and on the range of data usually available in
pension plan documents.
Analysis for each plan included in this study encompassed some or all of the doc­
uments described on page 126, usually the pension plan text, trust agreement, collective b ar­
gaining agreement, and D -l form. The D -l items analyzed— financing, plan administrator,
etc.— were all verified and edited by examination of plan documents. Many misinterpretations,
errors, and omissions were corrected by this check, and as previously explained, some items
were only obtainable from outside sources.
Most items selected for analysis were only
available in the documents themselves. The complete analysis of a single plan usually in­
volved the critical examination of at least four separate legal and descriptive documents which
were marked by a wide diversity in language and format.

39

U. S. Bureau of the Budget, Standard Industrial Classification Manual, 1957.







Appendix B: Form D—
1
U. S. DEPARTMENT OFLAB°R

EMPLOYEE WELFARE OR PENSION

R F M F F iT
D t W t r 11

PI AN

Form approved.

r LABI

Budget Bureau N o. 44-R1114.

DESCRIPTION FORM

DECEM
BER 19
58

This form is made available by the U. S. Department of Labor as directed by the W elfare and Pension Plans Disclosure Act/ Public
L a w 8 5-836/ to assist administrators of welfare and pension plans in discharging their responsibilities under the act. Use a separate form
for each' separate employee welfare benefit plan and each separate employee pension benefit plan or combination thereof. Read
Instructions carefully before completing the form.
Is this an original filing Q

or an amended filing [I] ?

File No............................

1. NAME OF PLAN AND ADDRESS OF ITS PRINCIPAL OFFICE
(In clu d e the n am e of the employer or employee

2. FINANCIAL RECORDS OF THE PLAN ARE MAINTAINED ON A CALENDAR. POLICY. OR
FISCAL YEAR ENDING
MONTH
DAY

organization with which plan is identified.)

3. INDICATE BY CHECKING THE APPROPRIATE BOX BELOW THE TYPE OF PLAN FOR WHICH
THIS DESCRIPTION IS BEING SUBMITTED

A. WELFARE
BENEFIT PLAN

B. PENSION
BENEFIT P U N

□

C. COMBINATION
OF A. AND B.

□

□

«. CHECK THE CATEGORY THAT BEST DESCRIBES THE GROUPS COVERED BY THE PLAN:
A. ALL
EMPLOYEES

B. HOURLY RATE
EMPLOYEES

□

C. SALARIED
EMPLOYEES

□

D. OTHER (SPECIFY):

..........

□

5. INDUSTRY IN WHICH MOST OF THE PARTICIPANTS ARE EMPLOYED:

(CHECK ONE)

MINING

A .D

CONSTRUCTION

TRANSPORTATION

COMMUNICATION
AND UTILITIES

WHOLESALE AND
RETAIL TRADE

B .D

MANUFACTURING

C .D

d. o

e.q

f.q

6. IS THE P U N MENTIONED IN A COLLECTIVE-BARGAINING AGREEMENT? YES □
7. PARTIES MAKING CONTRIBUTIONS TO THE PLAN:
A. EMPLOYER(S)

□

G. □

SERVICES

H. □

OTHER (SPECIFY):

I.

NO □

(CHECK ALL THAT APPLY)

B. PLAN
C. UNION (OUT OF
PARTICIPANTS
GENERAL FUNDS)

□

FINANCE. INSURANCE.
AND REAL ESTATE

□

D. OTHER (SPECIFY):

.............

8. PROVIDE THE FOLLOWING INFORMATION:
A. OFFICIAL NAME (OR TITLE) AND ADDRESS OF PLAN ADMINISTRATOR*

B.

ADMINISTRATOR OF THE PLAN IN 8A IS AN:
(1) EMPLOYER
OR EMPLOYER
ASSOCIATION
□

C.

(2) JOINT
EMPLOYER-EMPLOYEE
BOARD OF TRUSTEES
□

INDIVIDUAL NAMES AND ADDRESSES OF PERSONS CON­
STITUTING THE ADMINISTRATOR UNDER THE ACT. AS
IDENTIFIED IN 8A ABOVE

ill

(3) EMPLOYEE ORGANIZATION
INCLUDING EMPLOYEE
BENEFICIARY ASSOCIATION

(4) OTHER (SPECIFY):

□

OFFICIAL POSITION WITH
RESPECT TO THE PLAN

()
2

RELATIONSHIP, IF ANY, TO EMPLOYERS) OR TO
EMPLOYEE ORGANIZATIONS
(SEE INSTRUCTIONS)

________________ (3)________________

ANY OTHER OFFICES. POSITIONS.
OR EMPLOYMENT HELD

___________ (4)___________

*The act defities the administrator of the plan as follows: “(/) the person or persons designated by the terms of the plan or the collective-bargaining agreement with responsi­
bility for the ultimate control, disposition, or management of the money received or contributed; or (t) in the absence of such designation, the person or persons actually responsible
for the control, disposition, or management of the money received or contributed, irrespective of whether such control, disposition, or management is exercised directly or through
an agent or trustee designated by such person or persons.” Under the act, the term “person” means “an individual, partnership, corporation, mutual company, joint-stock
company, trust, unincorporated organization, association, or employee organization.”




129

130

9. DESCRIPTION OF TYPE OF ADMINISTRATION. OPPOSITE EACH OF THE FUNCTIONS LISTED IN COLUMN ( I ) , INDICATE THE PARTY OR PARTIES WHO PERFORM SUCH FUNCTION. FOR
EXAMPLE. EMPLOYER. UNION. TRUSTEE. CARRIER. AS SHOWN IN THE INSTRUCTIONS. IN CASE DIFFERENT PARTIES PERFORM A PARTICULAR FUNCTION WITH RESPECT TO DIF*
FERENT BENEFITS. FOOTNOTE EACH PARTY AND SHOW IN FOOTNOTE SPACE THE BENEFIT OR BENEFITS FOR WHICH HE PERFORMS THE FUNCTION.

FUNCTION
(IF APPLICABLE)

PARTY PERFORMING FUNCTION

(D

(2)

A. MAINTAINS RECORDS OF PLAN PARTICIPANTS.......................
B. DETERMINES ELIGIBILITY OF INDIVIDUAL CLAIMANTS FOR
RECEIPT OF BENEFITS.................................................................

C. PROCESSES CLAIMS FOR BENEFITS UNDER THE PLAN . . . .

D. MAKES DETERMINATION ON APPEALS . . .

-------

E. AUTHORIZES PAYMENT OF BENEFITS............

....

F. MAKES PAYMENTS TO BENEFICIARIES . . .

G. AUTHORIZES INCURRENCE OF EXPENSES...............................

H. SELECTS CARRIER OR SERVICE ORGANIZATION....................

I. SELECTS CORPORATE TRUSTEE..............
J. DETERMINES INVESTMENT POLICY...........................................
FOOTNOTES:

10. IDENTIFY EACH PARTY THROUGH WHICH PLAN BENEFITS ARE PROVIDED. FOR EXAMPLE. INSURANCE COMPANY. CORPORATE TRUSTEE. TRUSTEES OTHER THAN CORPORATE. COM.
MUNITY HOSPITAL-SURGICAL ASSOCIATION. HEALTH CARE CONTRACTOR. AND INDICATE BENEFITS PROVIDED THROUGH EACH.

STATE NAME AND ADDRESS

(If benefits are provided directly by the plan administrator enter
term “plan administrator” in lien of his name and address.)

ENTER BELOW EACH BENEFIT PROVIDED THROUGH THE PARTY
OR ORGANIZATION LISTED IN COLUMN (1)

0)

n. STATE THE NAMES. TITLES. AND ADDRESSES OF ANY TRUSTEE OR TRUSTEES NOT LISTED IN ITEMS 8C (1) OR 10 (1) ABOVE.




(2)

131

12. SUBMIT AS PART OF THIS DESCRIPTION:
(A) COPIES OF THE PLAN OR BARGAINING AGREEMENT. TRUST AGREEMENT. CONTRACT. OR OTHER INSTRUMENT
UNDER WHICH THE PLAN WAS ESTABLISHED AND IS OPERATED;
(B ) THE SCHEDULE OF PLAN BENEFITS;
(C ) THE PROCEDURES TO BE FOLLOWED UNDER THE P U N IN PRESENTING CLAIMS FOR BENEFITS AND FOR
APPEALING DENIAL OF CLAIMS.
IDENTIFY BELOW EACH DOCUMENT OR OTHER MATERIAL BEING SUBMITTED.

N O TE: If schedule of benefits and pro­
cedures for appeals, required in (B ) and
( C ) are part of one o f the documents
submitted and listed, specify on the list
those documents containing this infor­
mation.

LIST OF DOCUMENTS SUBMITTED

SIGNATURE AND VERIFICATION
The plan description after its completion shall be signed b y the plan administrator, in the presence of a N ota ry Public or other officer
authorized to administer oaths, using ( A ) or (B) below, whichever is approDrie te.
S T A T E O F _____________________________
C O U N T Y O F __________________________
( A ) ------------------------------------------------ , being duly sworn, says that he is
(Title o f officer)

..................................... .............................., administrator of the plan ar d that the information in this plan description (including the
(Nam e of com pany)

information contained in a n y accom panying documents described in Item 1 2) has been examined b y him and is to the best of his knowledge
and belief, true, correct, and complete.

()
B_________________________________________________________________________________________________________________________________the
administrator of the plan, being d uly sworn, each for himself deposes and say; that the information in this plan description (including the
information contained in a n y accom panying documents described in Item 1 2) has been examined b y him and is to the best of his knowledge
a n d belief, true, correct, and complete.
Signed and Sworn To Before M e

D a y o f ...................... ,1 9 .

This

(M onth)

(N otary Public)

M a il two copies of the form completed in accordance with the instructions and two copies of each accom panying document to the
W elfare and Pension Reports Division, Bureau of L ab or Standards, U. S. Department of Labor, W ashington 25, D. C.

For official use by the U. S. Department of Labor

(DO NOT WRITE IN THIS SPACE)

This will constitute a receipt for documents submitted for filing with the
Secretary of Lab or as a description of a welfare or pension benefit plan
under the provisions of the W elfare and Pension Plans Disclosure A c t, when
stamped opposite with the date and the file number with which such documents
have been marked. Please seif-address the receipt form below and enter the
name of the plan as given in Item 1, page 1, of this form.

NAME OF P U N

NAME

ADDRESS
CITY. ZONE.
AND STATE




* U.S. GOVERNMENT PRINTING OFFICE : 1962 0 — 643840