Full text of Pension Plans Under Collective Bargaining: Benefits for Survivors, Winter 1960-61 : : Bulletin of the United States Bureau of Labor Statistics, No. 1334

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B enefits for S u r v i v o r s
W inter 1960-61

Bulletin No. 1334
UNITED STATES DEPARTMENT OF LABOR
Arthur J. Goldberg, Secretary
BUREAU OF LABOR STA TISTIC S
Ewan Clague, Commissioner

PENSION PLANS
UNDER COLLECTIVE BARGAINING

BENEFITS FOR SURVIVORS
Winter 1960-61

Bulletin No. 1334
August 1962

UNITED STA TES DEPARTMENT OF LABOR
Arthur J. Goldberg, Secretary
BUREAU O F LABOR STA TISTIC S
Ewan Clague, Commissioner

For sale by the Superintendent of Documents, U.S. Government Printing Office, W ashington 25, D.C.




Price 2 5 cents







Preface

This bulletin, which completes a series of pension
plan studies, analyzes the principal forms of survivor
protection, including death benefits, the return of worker
contributions, and survivor options, in 300 selected pen­
sion plans under collective bargaining. The first study
in this series analyzed vesting and involuntary retire­
ment provisions, and the second analyzed the normal,
early, and disability retirement provisions of the same
300 plans. (See footnote 3, page 2,)
The 300 plans ranged in coverage from 1,000 to
over 100,000 workers. In all, approximately 4.7 million
workers under collective bargaining were covered, or
more than two-fifths of the estimated number of workers
covered, in I960 by all pension plans under collective
bargaining in the United States.
This study was conducted and the bulletin was
prepared in the Bureau's Division of Wages and Industrial
Relations by Harry L. Levin and Stanley S. Sacks, under
the supervision of Donald M. Landay.

iii




Contents
Page
Introduction _______________________________________________________________________
Scope of study _____________________________________________________________________
Death benefits _____________________________________________________________________
Requirements for benefits ____________________________________________________
Level of benefits _______________________________________________________________
Return of worker contributions __________________________________________________
Life insurance _____________________________________________________________________
Survivor options __________________________________________________________________
Availability _____________________________________________________________________
Joint and survivor option ______________________________________________________
Effective date of joint and survivor option _______________________________
Amount of joint and survivor annuity _____________________________________
Period-certain option __________________________________________________________
Designation of beneficiary ____________________________________________________

1
2
3
4
4
6
7
8
9
10
11
13
14
16

Tables:
1. Distribution of plans studied by number of workers covered and
method of financing, winter1960—61 ____________________________________
2. Distribution of plans studied by industry group, type of bargaining
unit, and method of financing, winter 1960—61 ________________________
3. Distribution of benefits for survivors of active and retired workers
in selected pension plans under collective bargaining and benefit
entitlement as related to time of death, by type of bargaining unit
and method of financing, winter 1960—61 _______________________________
4. Distribution of plans providing death benefits, survivor options, and
return of worker contributions,winter 1960—61 ________________________
5. Eligibility requirements for death benefits for active and retired
workers, winter 1960—61 ________________________________________________
6. Relationship of life insurance to pension plan protection at
retirement (age 65) in 200 programs under collective bargaining,
winter 1960—61 ___________________________________________________________
7. Plans providing survivor options by industry group, type of
bargaining unit, and method of financing, winter 1960—61 ___________
8. Plans with an option for normal retirement by conditions of election
and availability of option, winter 1960—61 _____________________________
9. Plans with an option for early retirement by conditions of election
and availability of option, winter 1960—61 _____________________________
10. Plans with an option for disability retirement by conditions of
election and availability of option, winter 1960—61 ____________________
11. Time requirements for election of a joint and survivor option by
effective, date of option, winter 1960—61 ____________________________
12. Distribution of plans by effective date and amount of joint and
survivor option, winter 1960—61 ________________________________________
13. Distribution of survivor options by designated contingent annuitant,
winter 1960—61 ___________________________________________________________




17
17

18
18
19
20
21
22
23
24
25
26
26




Pensions Plans Under Collective Bargaining:

Benefits for Survivors, W inter 1960—61
Introduction
Provisions for payment of benefits to the survivors of workers covered
by pension plans are gaining increasing recognition and acceptance among labor
and management pension negotiators. These provisions, like the normal, early,
and disability retirement provisions, supplement benefits provided under the
Social Security Act. In most instances, social security payments comprise the
major part of survivor protection, just as they usually comprise the major part
of a worker’ s retirement income.
Pension plans protect survivors in two ways: (1) By death benefit pro­
visions under which payments may be made automatically to survivors upon the
death of the worker or pensioner, and (2) by survivor options allowing covered
workers the option of surrendering some part of their regular pension benefits
to provide some protection for their survivors. In addition, most contributory
plans offered some protection by returning worker contributions. Virtually all
survivors of active workers are also protected by life insurance benefits of an
associated health and insurance plan, which, less frequently, offers some pro­
tection to the survivors of retired workers.
One type of protection not dependent on the worker's prior choice is
the death benefit.
This includes lump-sum payments made to the worker's
beneficiary immediately after his death; widow's pension under which part of
the worker's regular pension is continued to his widow until she dies or r e ­
m arries; and guaranteed payments under which the worker and his beneficiary
are jointly assured that they will receive a minimum number of monthly pension
checks regardless of when the worker dies.
The latter device, called "payment
certain, " operates in this manner: A pensioner may be guaranteed a minimum
of 60 monthly payments. If he dies during this period, the remaining number
of guaranteed payments are payable to his beneficiary; if he lives beyond the
6 0 -month period, his pension continues until his death.1
Contributory pension plans provide another type of protection for su r­
vivors. Such plans almost invariably guarantee that the worker's total contri­
butions will be returned either as retirement benefits or as payments to his
survivor, or both. The guarantee usually includes interest (at a specified rate)
presumed to have been earned on his contributions.
Payments to the survivor
are usually made in monthly amounts equal to the worker's accrued pension
claim, but may be paid as a lump sum, particularly when the monthly amounts
are small.
Several types of options are provided by pension plans.
The worker
may elect a joint and survivor option which provides him a reduced annuity
until his death, after which a previously specified annuity is paid for life to his1

1
Plans that guarantee a specified number of payments even if the worker
dies before retirement base their guarantee on the worker's accrued pension
at the time of his death. Thus, for example, the beneficiary of a worker dying
after 20 years of credited service would receive from a plan paying a normal
retirement benefit of $2 a month for each year of service or $40 a month for
the guarantee period, regardless of the worker's age at death.




2

designated joint annuitant. The reduction in benefits to the pensioner in electing
the joint and survivor option depends on the age and sex of both the pensioner
and his joint annuitant at the time of the worker's retirement, as well as on the
amount of the benefit the worker chooses to have continued payable after his
own death.
The worker may elect a period-certain option which insures payment of
an annuity for a specified period of time, thereby assuring the annuitant that he
and his survivor will receive at least the total number of payments specified by
the guarantee.
In essence, this option provides a decreasing amount of life
insurance payable to the beneficiary if the pensioner dies before the expiration
of the guarantee period. If, however, the pensioner lives beyond the guarantee
period— the period-certain— he will continue to receive the same monthly benefit
for the rest of his life.
The principal difference between this option and the
joint and survivor option is that the latter guarantees payment of benefits over
the total life spans of two persons. The reduction in the monthly benefit (the
cost) for a guarantee of a given duration depends solely on the age and sex of
the pensioner.

The cash refund option, another possible choice, guarantees payment to
the pensioner and his beneficiary of a total amount equal to the amount of his
contributions, usually plus interest. A strong similarity exists between the cash
refund and period-certain options, regardless of the method of financing, because
they both guarantee that a stipulated minimum benefit will be paid the retired
worker and/or his survivor. For that reason, the cost of the cash refund option
also depends solely on the worker's sex and age at retirement.
This option is
chosen infrequently because contributory plans normally guarantee at least the
return of worker contributions.
Scope of Study
For this study, 300 selected pension plans under collective bargaining,
in effect in December I960, were analyzed.2 The selected plans ranged in
coverage from 1,000 to over 100,000 workers. These 300 plans— the same plans
used in the previous two studies in this s e r ie s 3— covered approximately 4.7 million
workers (table 1), or more than two-fifths of the estimated coverage in I960
of all collectively bargained pension plans in the United States.
A ll major industries (excluding railroads and airlines) were represented
in the selection (table 2). More than 3 out of 4 plans (Z29) were in manufacturing
industries and covered 3.2 million workers; 71 were in nonmanufacturing industries
and applied to approximately 1.5 million workers. Sixty-nine plans, covering

2 These plans included those established for the first time as the result
of collective bargaining and plans established originally by the employer or the
union but since brought within the scope of the collective bargaining agreement—
at least to the extent that the agreement established employer responsibility to
continue or provide certain benefits.
Many plans were extended uniformly to cover workers outside the scope of
the collective bargaining agreement. However, the pension plan coverage used
in this study represents only the number of workers under collective bargaining
agreements.
3 Pension Plans Under Collective Bargaining, Late 1958: Part I. Vesting
Provisions and Requirements for Early Retirement; Part II. Involuntary R etire­
ment P rovisions, BUS Bulletin 1259 (1959), and Pension Plans Under Collective
Bargaining, Fall 1959: Normal Retirement, Early and Disability Retirement,
BLS Bulletin 1284 (1961).



3

more than a third of the workers in the study, were established on a multiemployer
basis. Noncontributory plans, i.e ., those financed solely by the employer, 4 num­
bered 251 and covered 84 percent of the workers; the remaining 49 plans (contrib­
utory) were financed by both the employer and the worker.
Virtually all plans required that members be full-tim e rather than
part-time or seasonal workers. In addition, a number of plans had preparticipation
requirements that withheld pension plan membership until certain age or service
requirements, or both, had been m et.5
Death Benefits
A death benefit provision, as defined, was included in 50 plans covering
1.2 million workers, or about 1 out of 4 workers in the study. Nearly 1 out of
3 multiemployer plans studied, with more than 2 out of 5 workers under such
plans, provided death benefits, compared with about 1 out of 8 single employer
plans covering about 1 out of 6 workers (table 3). More than 1 out of 6 non­
contributory and contributory plans provided a death benefit.6 The communications
industry was the only industry studied in which all of the plans analyzed provided
death benefits. All of the larger plans in the transportation industry provided
death benefits.
In addition to providing a death benefit, 19 plans with more than 300,000
workers also made available one or more survivor options including, with only
one exception, a joint and survivor option. To avoid double coverage, however,
no death benefit was payable if an option was selected.
All but 3 of the 50 plans provided death benefit coverage after retire­
ment. Only 18 plans, however, paid a benefit if death occurred before retirement.
Lump-sum payments were more common than any other type of death benefit,
as shown in the following tabulation:

Type of death benefit
Total plans with death benefits

Plans

W orkers
(thousands)
1, 199. 2

___________

50

Lum p-sum payment ________________________
Before retirement only ________________
After retirement only __________________
Before or after retirement ____________

31
3
17
l ll

861.3
178.0
314.7
368.6

Paym ent-certain ___________________________
After retirement only __________________
Before or after retirement ____________

18
l , z 14
4

331.4
204.5
126.9

Widow's pension ___________________________
After retirement only __________________

1
1

6.5
6.5

1 Includes 1 plan covering 3, 000 workers that provided a
payment-certain guarantee for 120 months in case of death after
retirement.
2 Includes 4 plans covering 3 7,700 workers that provided for
the return of worker contributions if death occurred before retirement.

4 Some of these plans gave the worker an option to contribute to a supple­
mentary plan to build up additional pension benefits. In these cases, only the
basic noncontributory plan was analyzed.
5 BLS Bulletin 1284, op. c it., pp. 2 and 3.
6 See later discussion of return of worker contributions.



4

Requirements for Benefits, Twenty-nine of the plans with death benefit
provisions contained eligibility requirements 7 typically based on age and/or service
at the time of death (table 5).
Such requirements were, with one exception,
prerequisites to the payment of survivor benefits in case of death before retire­
ment. For death after retirement, age and/or service requirements were appli­
cable in 8 out of 15 plans, while 11 plans only required that the deceased be on
the pension rolls at the time of death. Two out of three plans providing a death
benefit made the retiree automatically eligible for such benefit.
Nineteen plans with eligibility requirements stipulated the completion of
a specified period of service— usually 5 years or less. Five of these plans also
required the attainment of a specified age. In three plans, coverage depended
m erely upon membership in the employer’ s group insurance plan, which was
attainable after a few months' employment. Forty of the 50 plans permitted the
worker to designate anyone with an insurable interest8 as his beneficiary.
Ten
plans restricted the choice of beneficiary to either a spouse (3 plans); spouse
and child (2 plans); spouse, child, and dependent relative (4 plans); or spouse,
child, relative, and estate (1 plan).
Level of Benefits. The lump-sum benefit payable in case of death before
or after retirement was usually the same for all qualified workers, regardless
of their earnings, age, or service. A few plans, however, paid larger benefits
to long-service workers, and one plan paid $ 2, 000 when death occurred before
age 70 and $ 1, 000 if it occurred after.
The length of the payment-certain guarantee was uniform in each plan
for all eligible workers. The amounts payable were dependent on the size of the
pension and the number of payments, if any, made prior to death. For example,
assuming all pensioners under a given plan were guaranteed 60 monthly payments,
then the maximum amount payable to the survivors of a pensioner entitled to
$ 100 a month would be $6, 000; only $3, 000 would be payable if he were entitled
to $ 50 monthly.
To ascertain the level of benefits relative to previous earnings and
credited service, and to compare the death benefit amounts provided by the plans
studied, death benefits were computed under the following arbitrary assumptions:
1. Thirty years of future credited service.
2. Annual earnings of $5, 000. This earnings level was assumed
to be constant throughout the worker's career, in order to
eliminate any difference between plans basing benefits on
career earnings and those using a period of high or terminal
earnings. Some plans would, however, pay the same benefit
if average earnings in specified years or if average earnings
over the career were also $ 5, 000.
3. Retirement at age 65.
4. For benefits before retirement: That death occurred at age
65, on the day before retirement.
5. For benefits after retirement: That death occurred im m edi­
ately after retirement and before receipt of the first monthly
pension payment.
It must be emphasized that the benefits thus calculated are hypothetical; they
should not be interpreted as the amounts currently paid to beneficiaries of eligible
workers.
7 For preparticipation requirements of pension plans, see BLS Bulletin
1284, op. c it., p. 2. Such requirements were equally represented among plans
with and without death benefits.
8 An insurable interest may be in the form of love and affection (presumed
in a close family relationship) or a pecuniary relationship. See O. D. Dicker son,
Health Insurance (Homewood, 111., Richard D. Irwin, 1959), p. 87.



5

Under these assumed conditions, the lump-sum death benefits provided
by 31 plans ranged from $36 to $ 8 ,2 00.
The following tabulation provides a
distribution of these lump-sum benefits according to three situations:

Death benefit payable in case of death occurring—

Before r e tir e ment only

A ll plans
L um p-su m death benefit
for worker earning
$ 5 ,0 0 0 a year

W orkers
Num ber (thousands)

Total plans with lu m p-su m
death benefit ________________

31

8 6 1.3

L ess than
$ 1 , 000 to
$ 2 , 000 to
$ 4 , 000 to
4 5. 000 to
$ 8 , 000 to

11
7
7
1
4
1

231.2
292.8
193.3
8.0
129.9
6.1

$ 1 ,0 0 0
$ 1 ,9 9 9
$ 2 , 999
$ 4 , 999
4 5. 999
$ 8 ,9 9 9

_____________
_____________
_____________
_____________
_____________

A fter retire ment only

Before or after
retirem ent

Plans

W orkers
(thousands)

Plans

W orkers
(thousands)

Plans

3

178.0

17

314.7

11

368.6

30.0

9
l4
4

194.3
105.3
15.1

1
3
22
1
3
1

6.9
187.5
33.2
8.0
126.9
6.1

1
_

1

-

145.0

-

-

-

1
-

3.0
-

_

_

-

-

-

W ork ers
(thousands)

1 Includes 1 plan covering 4 ,2 0 0 w orkers that provided $ 4 ,5 0 0 in case of death before retirem ent.
2 Includes 1 plan covering 3 ,0 0 0 w orkers that provided a paym ent-certain guarantee for 120 months in case
of death after retirem ent.

For the 27 plans providing a lump-sum death benefit after retirement,
the average benefit (weighted by worker coverage) amounted to $ 2 ,1 1 6 , or about
two-fifths of the assumed preretirement earnings. Most plans provided less.
The average for the 14 plans providing a death benefit before retirement was
$ 2,7 65.
Two-thirds of the 18 payment-certain guarantees, as shown in the
following tabulation, were for 60 months.

P la n s with benefit if death o c c u r s —

A ll plans

Length of guarantee

Num be r

W o rk e r s
(thousands)

A fte r re tire m e n t

P lans

W o rk e r s
(thousands)

P lan s

W o rk e r s
(thousands)

4

126.9

T otal plans with
paym ent -c e r ta in
b enefit

18

3 3 1 .4

14

2 0 4 .5

6 m onths ___________________
12 m onths __________________
36 m onths __________________
60 m onths
_
_ _ .

1
3
2
12

1.4
4 5 .9
9 2 .7
1 9 1 .4

1
2
2
l9

1.4
4 3 .0
9 2 .7
6 7 .4

1 Includes 4 plans c overin g 37 , 700 w o rk e rs
contributions b e fo re re tire m e n t.

B e fo r e or a fter
re tire m e n t

that provided

_

_

1

2 .9

3

124.0

_

_

for the retu rn of w ork er

As a temporary form of insurance, the amount of survivor protection
provided by payment-certain plans is limited. Even the most liberal of these
guarantees may span only a part of a survivor’ s remaining years.
Wives of



6

men retiring at 65, for exatnple, have an average life expectancy of nearly
20 years.9 The amount of money likely to be paid out under such guarantees is
conditioned by the fact that 4 out of 5 men reaching their 65th birthday live to
see their 70th.

Because of the rapid decline in the amount of protection provided by
payment-certain guarantees, as well as the brief period over which they give
protection, it is difficult to compare them, in money term s, with lump-sum death
benefits which remain fixed throughout the retirement period.
However, the
initial (and maximum) protection available immediately after retirement through
payment-certain guarantees was considerably greater than that provided by
lump-sum benefit plans.
The weighted average amounted to $ 4 ,8 8 4 , or almost
a year's earnings. As shown in the following tabulation, nearly half the plans
provided at least $ 5, 000.
Maximum survivor benefit for
worker retiring at age 6 5 1

Plans

W orkers
(thousands)

Total plans with paym ent-certain
benefit ________________________________________

18

331.4

L ess than $ 1 ,0 0 0 _____________________________
$ 1, 000 to $ 1 , 999 _____________________________
$ 3 , 000 to $ 3 ,9 9 9 _____________________________

3
1
2

29.3
18.0
94.0

$ 4 , 00 0 t o $ 4 , 9 9 9

4

16 .6

1
2
3
1
1

4.0
120.1
45.1
2.8
1.5

$ 5 , 000
$ 6 , 000
$ 7 , 000
$ 8 ,0 0 0
$ 9 ,0 0 0

to $ 5 ,9 9 9
to $ 6 , 999
to $ 7 ,9 9 9
to $ 8 ,9 9 9
and over

....................................

_____________________________
_______
_____________________________
_____________________________
________

1 Computed by multiplying the monthly pension payable under
the assumed conditions by the guaranteed number of monthly payments.

Return of Worker Contributions
Instead of providing death benefits, as such, most contributory plans
guarantee the return of worker contributions, with interest, either as pension
payments or, if the worker dies before he has received the entire sum, as pay­
ments t o his beneficiary. If, for example, a worker dies just before retirement,
his beneficiary would receive the entire amount he contributed, plus interest
calculated at the rate specified in the plan.10 If he dies after retirement, the sum
of the benefits already paid to him would be subtracted from the total contributed
and the interest accrued during his retirement would be added to it.

9 The U.S. Life Table for 1958 shows a life expectancy of 19.2 years for
white women at age 60— typically the age of women whose husbands are 65. See
Vital Statistics of the United States, 1958 (U.S. National Office of Vital Statistics,
1961), p. 5 -4 .
10 Assuming that a uniform amount is contributed each month for 30 years
and that interest is compounded annually, accrued interest would amount to
between a third and somewhat more than a half of the contributions, depending
on whether it is computed at 2 or 3 percent a year.



Of the 49 contributory plans studied, 42 provided for return of worker
contributions and, with 4 exceptions, the accrued interest. All but 1 of these
42 plans did so regardless of whether death occurred before or after retirement.
Whereas the exception provided for the return of contributions before retirement
only. Contributions were returned under four additional plans only if death oc­
curred before retirement, but a death benefit was provided when death occurred
after retirement; another two plans provided death benefits either before or after
retirement; and the one remaining plan provided neither returned contributions
or a death benefit. The death benefits provided for in the six plans were, with
one exception, in the form of payment-certain guarantees and in all cases they
exceeded the maximum amount of worker contributions, including interest.
The total amounts contributed by workers to their plan under the condi­
tions assumed in computing death benefits, plus the accrued interest to the date
of retirement, are shown in the following tabulation for the 42 plans only r e ­
turning contributions. Nearly 60 percent of these plans returned at least $5, 000.

R eturning w ork er contributions—

A ll plans
M axim u m w ork er contributions
and in te re st to date of
W o rk e r s
re tire m e n t 1
N um ber (thousands)

Without in te re st

P lans

T otal plans returning w orker
contributions ____________________

42

3 1 1 .0

4

________________
________________
________________
________________
________________
________________
________________
________________
________________

2
1
1
4
10
6
7
6
5

12.8
2 .0
1.0
2 0 .2
7 0 .8
4 1 .6
6 0 .4
5 3 .4
4 8 .8

_
1
1
1
1
-

L e s s than
$ 1 , 000 to
$ 2 , 000 to
$ 3 ,0 0 0 to
$ 4 ,0 0 0 to
$ 5 ,0 0 0 to
$ 6 , 000 to
$ 7 , 000 to
$ 8 ,0 0 0 to

$ 1 ,0 0 0
$ 1 ,9 9 9
$ 2 , 999
$ 3 ,9 9 9
$ 4 ,9 9 9
$ 5 ,9 9 9
$ 6 , 999
$ 7 , 999
$ 8 ,9 9 9

-

-

1 In tere st e stim ated for 3 plans not specifying an
rate in s im ila r plans in the sa m e in dustry.

W o rk e r s
(thousands)

10 .4
_
2 .0
1.0
4 .4
3 .0
-

W ith in te re st

P lans

W o rk e r s
(thousands)

38

3 0 0 .6

2

12.8

-

3
9
6
7
6
5

in te re s t rate on b a s is

-

15.8
6 7 .8
4 1 .6
6 0 .4
5 3 .4
4 8 .8
of interes1

The weighted average, based on the maximum amounts returnable, was
$ 5,8 40, or more than a year’ s earnings.
Translated into time intervals, the
age at which workers retiring on their 65th birthday could expect the full return
of their contributions, including interest, ranged from age 65 years and 2 months
to 71 years, and averaged about age 68.

Life Insurance
Although death benefits, return of worker contributions, and survivor
options afford some survivor protection, group life insurance remains the chief
method of protecting workers covered by both a pension and an insurance plan.
Life insurance is provided by more employers, covers more active and retired
workers, and generally provides more survivor protection. The Bureau's earlier
study of 300 health and insurance plans under collective bargaining showed that



8

98 percent provided life insurance for active workers and 63 percent for retired
w orkers.11 In contrast, only 20 percent of the pension plans studied automatically
provided any protection for survivors of active workers; 31 percent provided
protection for survivors of retired w orkers.1
12
To determine how pension and insurance protection complement each
other and to obtain some measure of the absence of any type of protection 200
associated pension and insurance plans were analyzed.13 Of these 200 programs,
a fourth (55) provided some pension plan protection for survivors of retired
workers (table 6). In these programs, however, pension plan and life insurance
protection tended to complement each other. In the 55 plans, pension plan pro­
tection for survivors replaced, at least temporarily and in part, the life insur­
ance protection which would be reduced or discontinued at age 65 when the
worker retired.
The insurance discontinued at retirement under 51 plans was fully r e ­
placed in 7 pension plans and partially in 9 others. The reductions provided in
125 other life insurance plans were fully offset in 22 pension plans and partially
offset in 10 others. Five of the 10 programs that maintained life insurance at
age 65 but later reduced or discontinued it, provided some other type of survivor
protection— in all but one plan by returning the worker's contributions. That the
complementary relationship between the insurance and pension plans was far from
perfect is shown by the failure of 19 pension plans to provide more than partial
replacement of discontinued or reduced life insurance, and of all but 14 plans
to provide more than temporary protection.
Most of the 145 programs with no pension plan protection provided only
limited amounts of life insurance for retired workers. No protection of any kind
was automatically provided by 35 program s.14 On the other hand, 14 programs
maintained for retired workers the same amount of life insurance provided for
active workers, while 98 plans provided only reduced amounts of life insurance.
Survivor Options
A more common method of providing some protection for pensioners'
survivors is to offer workers a reduced annuity with specified benefits for their
survivors in place of the straight life annuity normally paid by the plan. One
or more types of annuities with benefits for survivors or "survivor options,"
previously described, were offered by about half the plans studied: (1) Joint and
survivor, (2) period certain, and (3) cash refund. Unlike death benefits discussed
in the preceding pages, the cost of these options was typically borne solely by the
retiree, because the optional annuity provided a smaller monthly benefit of the
same actuarial value as the regular pension payable to him .15 The options were
11 See Health and Insurance Plans Under Collective Bargaining: Life Insurance and Accidental Death and Dismemberment Benefits, Early Summer I960,
BLS Bulletin 1296 (1961).
12 An additional 29 percent of the pension plans, covering 25 percent of all
workers, provided only optional benefits for survivors of retired workers. Details
are discussed subsequently in this bulletin.
13 The analysis was limited to the 200 pension plans whose associated
insurance plan was previously analyzed in Bulletin 1296. Although the pension
plans generally were companywide, benefit provisions of many of the health and
insurance plans varied from plant to plant and from area to area. Those analyzed
here covered the largest group of workers under collective bargaining.
14 Includes 12 plans that made only survivor options available.
15 Subsequent to the period covered by this report, the United Automobile
Workers negotiated a new survivor's option with a number of automobile companies
which provides that the cost of the option will be shared by the companies and
the pensioners electing it.



9

made available only to active employees meeting certain conditions such as age,
health, and service. These restrictions are designed to minimize the possibility
of adverse selection against the plan by retirees, who, in expectation of an early
death, attempt to extend payments to their survivors.
Optional forms of annuities were included in about half (148) of the 300
plans and covered 2 out of 5 workers in the study. Of the 229 plans in manu­
facturing industries, 125 plans, covering 1 out of 2 workers, made an option
available, while 23 out of 71 plans in nonmanufacturing, representing 1 out of
9 workers, contained such a provision (table 7).
Optional forms of annuities were much more common in single employer
than in multiemployer plans, and in contributory as against noncontributory plans.
Of the 231 single employer plans in the study, 3 out of 5 contained provisions
for optional annuities, while only 1 out of 11 multiemployer plans did so. Nearly
9 out of 10 contributory plans and only slightly more than 2 out of 5 noncontrib­
utory plans had optional features.
Availability. All but 1 of the 148 plans with optional annuities offered a
joint and survivor option, with the exception offering only the period-certain
option. Of the 147 plans with a joint and survivor option available, 121 plans
provided no other option; 18 plans also provided a period-certain option; 6 plans
allowed the worker an additional choice of any form of survivor option approved
by the administrator of the plan; and the remaining 2 plans also allowed a cash
refund annuity (table 4).
Only about half of the plans with a joint and survivor option made it
available for all types of retirement owing both to the limited number of plans
providing disability retirement benefits and the large number restricting the option
to early and normal retirement. As shown by the following tabulation, 36 plans
expressly excluded the joint and survivor option for disability retirement and an
additional 38 plans did not provide for that type of retirement.

T o ta l with re tire m e n t
p ro v isio n containing a
su rv iv o r option
Type of re tire m e n t
p ro v isio n

N o r m a l re tire m e n t ________
E a r ly re tire m e n t __________
D isa b ility re tire m e n t _____

W ith
joint and su rv iv or
option

P lans

W o rk e r s
(thousands)

P lans

W o rk e r s
(thousands)

147
138
111

1 ,8 2 0 .2
1, 7 4 7 .9
1 ,4 7 6 .3

147
128
73

1, 8 2 0 .2
1, 6 5 5 .8
1, 0 7 6 .3

Without
joint and su rv iv or
option

P lans

10
38

W o rk e r s
(thousands)

9 2 .1
4 0 0 .0

Language in the plans varied widely. A large number of plans made the
option applicable to ’’actual retirem ent," without specifying a particular type of
retirement to which the option was applicable. For example, a typical clause
stated:
Any member may elect to convert the retirement allowance
otherwise payable on his account after retirement into a reduced
retirement allowance in accordance with the optional forms
named below.



10

In some additional plans, the particular types
specifically mentioned:

of retirement provisions were

Any employee may . . . before the due date of the first payment
of his normal, disability, or early pension, elect to convert
such pension into an optional form of benefit of equivalent a c­
tuarial value .
On the other hand,

10 plans

expressly excluded the option for

early retirees:

. . . in the event an employee shall retire prior to attaining age
65, any election of an optional method of payment theretofore
made by him shall be inoperative and ineffective.
Thirty-eight other plans containing disability retirement benefits that
confined the availability of the option to normal retirement only, used language
such as:
. . . the worker may have the option only . . . before the due date
of his normal retirement.
Joint and Survivor Option. In the plans studied, the joint and survivor
option generally may be elected without restriction up to a specified age or
specified time prior to retirem ent.16 Plans that permitted the election of the
option after the specified age or point of time required the worker to demon­
strate that he was in good health, usually by a physical examination. In addition,
advance notification of the worker's intention was required to prevent a worker
in poor health from transferring his pension to a beneficiary immediately prior
to retirement; such adverse selections, however, can be made at the time when
the option may be elected without restriction, and to that extent represent addi­
tional costs to the plans which cannot be limited.
Seven out of 10 plans with options for normal retirement required that
evidence of good health be submitted if the option was to be* elected after the
required time or age (table 8). Most plans in this group (81 plans covering
about 7 out of 8 workers) required workers electing the option within 5 years of
retiring to submit evidence of good health. The remaining 22 plans required
that, unless the election of the option was made from 1 to 3 years prior to
retirement, evidence of the w orker's good health had to be submitted.
Individual company policy regarding advance notice to the employee of
the criteria that must be fulfilled for selection of an option could not be deter­
mined from plan documents. In one plan, however, which allowed employees to
elect an option anytime prior to age 64, without any other restriction, the com ­
pany made a definite commitment to give such notice as follows:
The company agrees to give each employee notice at least 6
months prior to the 64th anniversary of his birth of his right
to elect such reduced pension.
Only 21 plans permitted the worker to elect the joint and survivor option
without restriction up to the time of his retirement or receipt of plan benefits.
Five other plans made the option available up to the time eligibility for retire­
ment was established, or within 90 days of retirement. Sixteen plans withdrew
the option entirely after periods ranging from 1 to 5 years prior to retirement

16
Since all but one plan offered the joint and survivor option, this analys
is limited to that option. However, usually the same requirements and effective
dates would be applicable to the other options.



11

or after ages from 62 to 64. Eight of the plans with time restrictions allowed
the worker to make an election anytime prior to actual retirement, so that a
worker failing to meet the prescribed time limit could, by postponing his actual
retirement until after normal retirement age, still elect the option.1' Under the
seven plans with age limitations, the worker had no recourse but to select the
option prior to those ages.
Joint and survivor options were generally available to early retirees
under the same conditions as for normal retirees.
The chief exceptions were
29 plans that permitted the early retiree to select the option anytime before he
was eligible for such retirement (table 9). Under these plans, once the age and
service requirements for early retirement had been met, the option was no longer
available.
Options were available to disability retirees in 73 plans, but requirements
similar to those in early and normal retirement are undoubtedly more restrictive
in the case of disability retirement. Disability retirees usually cannot anticipate
their retirement, and thus they may not be able to meet the same conditions of
election imposed under normal and early retirement. Although 47 of the 53 plans
requiring at least a year’ s notice do not make that notice an absolute condition,
they do require evidence of good health— a requirement which may be inconsistent
with the evidence the worker must show for disability retirement (table 10).
However, 15 of the 73 plans permitting disabled workers to elect the joint and
survivor option had no requirements other than that the election be made prior
to retirement or receipt of payment of plan benefits. In three plans providing
the time limitations of 30 through 90 days prior to retirement or receipt of plan
benefits, the worker could qualify for the option during the 6 months’ waiting
period usually required for disability retirement benefits.1
18
7
Effective Date of Joint and Survivor Option.
The valid election of a
joint and survivor option does not immediately guarantee the worker and his bene­
ficiary the protection of the option. It is also necessary for the worker to be
alive on the ’’ effective date" of the option. In most cases, this is the date of
his actual retirement; for those workers retiring before the normal retirement
age? many plans defer the effective date until they reach normal age. Prior to
the effective date, changes can be made in the designation of the beneficiary or
in the percent of the annuity that is to be continued to the beneficiary, subject
to the approval of the insurance company or retirement committee. However, the
option cannot be canceled lest the advance notice requirements be made ineffective.
Only the death of the worker or his beneficiary after election of the option and
prior to its effective date automatically cancels the option.
In all of the plans analyzed, the option continued in force once the
effective date had passed, so that even if the beneficiary’ s death preceded that of
the retiree, he continued to receive only the reduced income specified by the
opti on.
More than three-fourths of the plans (113) made the effective date
of the option coincide with the worker’ s actual retirement; i.e ., the employee who
continued to work after normal retirement age 19 was not covered by the option
until he retired (table 11). Included in this group were 27 plans under which

17 Since the actual retirement date is based upon the date on which the
individual worker chooses to retire, these time limitations can be applicable only
if retroactive from these dates.
18 See BLS Bulletin 1284, op. cit., p. 35.
19 Age 65 was the normal retirement age in virtually all of the 300 pension
plans studied. See BLS Bulletin 1284, op. cit., p. 3.



12

retirement was not considered formal until the fourth month after actual retire­
ment. A ll of these plans were included in agreements of the Steelworkers union,
which defer regular pension benefits for 90 days during which a special payment
of up to 13 weeks of vacation pay is made.20
Of the 48 plans in which the election of the option was limited to
’1anytime prior to normal retirem ent," 27 plans did not make the option effective
until actual retirement or some later date. On the other hand, because post­
ponement of the option’ s effective date might deter the worker who had elected
the option from continuing to work after age 65, an additional 18 plans made the
option effective at normal retirement age, regardless of the time the employee
actually retired. For example, one such provision stated:
. . . a member who remains in active service after . . .
age 65, may nevertheless elect one of the said optional
form s, and . . . the member and the person designated
under the option shall be treated as if the member had
retired at the time of election, except that no retire­
ment allowance payments shall accrue or be payable to
the member until he retires, or accrue, or be payable
to the person designated under the option until the death
of the member either before or after retirement.
Under such a provision, the worker who continued in employment after age 65 did
not receive a plan benefit until he actually retired, but one would be payable to
the survivor upon his death even if it occurred while the worker was still an
active employee.
The effective date of the option for the early retiree often followed
a longer waiting period than for the normal retiree. Under 43 plans, the option
for the early retiree became effective only after the pensioner reached normal
retirement age. One provision stated, for example, that:
. . . the employee may . . . elect to have annuity pay­
ments commence at optional early retirement date . . .
but, if both the employee and the previously designated
joint annuitant are living on the first of the month next
following the employee's 65th birthday, annuity payments
then and thereafter shall be made on the joint and
survivor annuity form.
An apparent reason for this kind of provision was to avoid further
reduction in the early retirement benefit which is already reduced below the level
of the normal straight-life annuity. Since no supplementary income (such as
social security benefits21) could generally be expected, such a reduction might
make the option unattractive to many workers. Seven out of 10 of the 82 plans
that permitted the option to be elected anytime prior to actual early retirement
made the option effective on retirement. In addition, 1 out of 4 of these plans
(20) deferred the effective date to normal retirement age.
20 Thirteen weeks of vacation pay, less vacation payments received during
the calendar year of retirement, is paid to all retirees except those eligible for
deferred benefits or disability retirement.
21 Under the 1961 amendments to the Social Security Act, reduced benefits
are payable to qualified male workers retiring at age 62. The extent to which pri­
vate pension plans have been amended to reflect this change is unknown. One plan,
however, anticipated such a change in the law, and inserted the following clause:
Effective January 1, 1961 . . . an employee may elect . . . at anytime prior
to his 62d birthday, or he may make such election anytime after his 62d
birthday and prior to his normal retirement date, provided, in the latter
instance, he furnishes evidence of his good health.




13

Although 73 plans made a joint and survivor option available to the
disability retiree, about half (35) postponed the effective date of the option until
the retiree attained normal retirement age. One such provision stated:
If a member receiving disability benefits attains his
normal retirement date he shall then receive . . . if he
has so elected, optional retirement benefits . . . with
credited service to the date of commencement of dis­
ability benefit payments.
By taking into account the possibility of a disability retiree's early death, these
plans reduce the cost of adverse selection against the plan.
Twenty-seven of the 45 plans permitting the disabled worker to elect
the option at anytime prior to actual retirement made the option effective at
such retirement.
For the worker retiring at an early age, the amount of the
deduction necessitated by the selection of a joint and survivor option could be
so great as to make the option unattractive, owing to the shorter accumulation
period for service credit and the longer duration of the expected payment period.
Two out of five plans (17) using this election criterion postponed the effective
date until normal retirement age was attained.
In addition, more than 3 out of
4 plans which allow the option to be elected prior to receipt of plan benefits
made the option effective when the disability retiree reached age 65.
Amount of Joint and Survivor Annuity.
In all bu t five p l a n s pro­
viding a joint and survivor option, the survivor could receive payments equal
to that of the annuitant (table 12).
Sixty plans contained no restriction as to
the fraction of benefit the retiree could select for payment, after his death, to
his survivor; 65 plans restricted the choice to equal or one-half payments;
11 plans allowed the selection of specified fractions ranging from one-half to
equal payments, while 10 plans restricted the choice to one fraction only— usually
equal payments.
Plans which restricted the choice of amount at a minimum
level of one-half did so to assure the survivor a significant amount relative to
previous payments.
The larger the monthly benefit payable to the joint annuitant the
larger the actuarial reduction in the pensioner's regular annuity.
For example,
the reduction in the life annuity for a male pensioner age 50 to provide an annuity
equal to his own for a wife 5 years younger was, as shown in the following tab­
ulation, almost twice the reduction required to make available to the beneficiary

Percent reduction in life annuity for joint and
survivor option providing b en eficiary1-—

Age at which m ale
pensioner retired
50
55
60
65

O ne-half of
pensioner's reduced
annuity

Same amount as
pensioner's reduced
annuity

12.1
14.2
16.0
19.2

21.8
24.9
28.4
32.2

1 Based on actuarial reductions
wife 5 years younger than her husband.




in a typical insured plan

for

14

an annuity equal to one-half of his reduced annuity.22 This ratio gradually
declines as age increases.
To leave his wife a benefit equal to half his own,
a man retiring at age 65 has to give up only about one-fifth of his regular
pension amount, but for her to receive the full amount of his reduced annuity
he has to give up about one-third.
Under the new agreements of 1961 in the automobile industry, the
cost to the retiree of electing a 50-percent joint and survivor annuity with his
spouse as joint annuitant— the only option offered by these plans— is one-eighth
the amount of his basic pension if his spouse is 5 years younger, instead of
one-fifth the basic pension.23 As shown below, the additional pension accruing
to the retiree and to his widow is 8 percent greater than that provided by the
example cited above.

Joint and su rv iv o r b e n e fit1
T y p ic a l in su red
p la n 2
Y e a r s of se r v ic e

B a s ic pension in
au tom obile plans
$ 7 0 .0 0
8 4 .0 0
9 8 .0 0

25
30
35
1
2

A u to m o bile
plans

R e tire e

W idow

R e tire e

W idow

$ 5 6 .5 6
6 7 .8 7
7 9 .1 8

$ 2 8 .2 8
3 3 .9 3
3 9 .5 9

$ 6 1 .2 5
7 3 .5 0
8 5 .7 5

$ 3 0 .6 3
3 6 .7 5
4 2 .8 8

B ased on m a le re tirin g at age 65 with a w ife age 60 nam ed a s b e n e fic ia r y .
B a sic pension le s s reduction fo r o n e -h a lf annuity shown in p recedin g tabulation.

This additional benefit amount is provided by the companies absorbing about a
third of the cost of this option.
The workers are, however, restricted to naming
their spouses as beneficiaries.

Period-Certain Option.
Only 25 of the 148 plans that provided optional
annuities offered a period-certain option, as shown in the following tabulation.
Since all period-certain options had the same actuarial value as the life annuities
they replaced, the longer the length of the guarantee period, the greater the
cost— i . e . , the greater the consequent reduction of the annuity payable to the
retiree.
Twelve plans permitted the worker to elect a guarantee period of any
length up to a specified limit (usually 120 months), 11 plans provided a guarantee
of 120 months, and the remaining 2 plans permitted the worker a choice of 60 or
120 months.

22 For a given amount of annuity, the greater the proximity of the female
joint annuitant's age to that of the male annuitant the smaller the actuarial
reduction.
23 Although the automobile plans provide for reduction of the pensioner's
benefit by 121/2 percent regardless of his age or sex, if the joint annuitant is
5 years younger, the reduction in other plans depends on both the pensioner's
age and sex.
The one-fifth reduction attributed in the text is based on the
assumption in footnote 2 of the tabulation above.



15

T o ta l__________
Length of p e r io d -c e r ta in
option

P lan s

W o rk e r s
(thousands)

Joint and su rv iv or
or p eriod c e rta in

P lan s

W o rk e r s
(thousands)

A ll plans providing a
p e r io d -c e r ta in option ______

25

177.0

19

1 3 2.4

Any length within a
sp ecified m a x im u m ________
60 or 120 m onths ____________
120 m onths ____________________

12
2
11

100.2
9 .7
67 .1

4 10
2
7

85 .1
9 .7
3 7 .6

Any su rv iv or
_______ option 1

P lans

W o rk e r s
(thousands)

4 4 .6

2
-

4

15.1
-

2 9 .5

1 Any fo r m of reduced annuity approved by the plan authority.
2 Includes 1 plan, coverin g 3 ,0 0 0 w o r k e r s , having a p e r io d -c e r ta in option only.

Since period-certain options guarantee benefits for limited periods,
whereas joint and survivor options guarantee income for the combined life span
of two people, the actuarial reduction for the former is the sm aller.24 The
difference in cost is, moreover, much greater for early than for normal retirees.
The reductions for the joint and survivor option and the period-certain option in
the following illustration show that the one-half payment joint and survivor option
is over 3 times as costly as the 120-month period-certain option at age 55; at
age 65, it is only 1 V2 times as costly.25

P e r c e n t r e d u c t i o n o f l i f e a n n u ity
________ o f a m a l e p e n s i o n e r ________

A g e at r e t ir e m e n t
55
60
65

___
__________________________________
__________________________________
1
2

J o in t an d s u r v i v o r
o n e -h a lf
p a y m e n t o p tio n
2
1 1 .4
1 3 .0
1 4.9

P e r io d -c e r ta in
o p tio n
(1 2 0 m o n t h s )
3 .4
5 .7
9 .9

B a s e d o n a c t u a r i a l r e d u c t i o n s m a d e b y a t y p i c a l i n s u r e d p la n .
F e m a l e c o n t in g e n t a n n u ita n t s a m e a g e a s p e n s i o n e r .

24 While the foregoing is generally true, very long period-certain options
exceeding, say, 120 months are often more costly than joint and survivor options
providing equal benefits to a survivor considerably older than the pensioner.
25 A joint and survivor option providing the same amount to the joint annui­
tant as to the pensioner is 6ver 6 times as costly as the period-certain option
at age 55, and 3 times as costly at age 65.



16

It is interesting to note that owing to the sm aller-than-usual reduction
of benefits in the new automobile plans, the cost of providing a 50-percent joint
and survivor benefit to a spouse for workers retiring at 65, is 10 percent— about
the same as the cost of the 120-month period-certain option under the ex­
ample cited.
Designation of Beneficiary. Three out of four plans offering optional
annuities allowed the retiree to name anyone with an insurable interest as a
beneficiary (table 13). Persons with such an interest, by definition, included
not only the w orker's spouse but anyone who might, as a result of his death,
suffer a hardship or a loss. Moreover, allowing him to designate "anyone" as
beneficiary makes the option meaningful to the unmarried retiree by permitting
him to pass his pension on to his choice of survivor(s).
A ll of the remaining 37 plans contained specific limitations on the desig­
nation of a beneficiary; 22 of these plans, for example, restricted the choice to
the pensioner's spouse.




17
T a b le 1.

D is tr ib u tio n o f p la n s stu died b y n u m ber o f w o r k e r s c o v e r e d
and m e th o d o f fin a n cin g , w in te r 1960-61

___________________________ (W o r k e r s in th ou san d s)___________________________
A ll plans

N u m ber o f w o r k e r s
cov ered

N u m ber

N o n c o n trib u to r y

W ork ers

P la n s

C o n trib u to ry

W ork ers

P la n s

W orkers

A ll plans studied --------------------------- —

300

4. 672. 7

251

3 .9 0 1 .9

49

770. 8

1 ,0 0 0 and und er 2, 000 w o r k e r s -----2, 000 and u nd er 3, 000 w o r k e r s -----3, 000 and under 4, 000 w o r k e r s -----4, 000 and u nd er 5, 000 w o r k e r s -----5, 000 and under 7, 500 w o r k e r s -----7, 500 and u nd er 10, 000 w o r k e r s —
10,000. and u nd er 15,000 w o r k e r s —
15,000 and under 25,000 w o r k e r s —
25,000 and u nd er 50,000 w o r k e r s —
50,000 and under 100,000 w o r k e r s —
100, 000 w o r k e r s and o v e r —-------------

55
41
35
22
28
18
36
23
22
9
11

78. 1
99. 1
1 1 5 .8
95. 0
165. 4
149. 1
410. 9
418. 8
704. 6
613. 5
1, 8 2 2 .4

43
34
31
19
23
16
29
18
20
9
9

61. 4
81. 5
102. 6
82. 4
134. 4
132. 1
325. 6
329. 2
632. 8
613. 5
1 ,4 0 6 .4

12
7
4
3
5
2
7
5
2
_
2

1 6 .7
17. 6
13. 2
12. 6
3 1 .0
1 7 .0
85. 3
89. 6
71. 8
_
4 1 6 .0

T a b le 2.

D is tr ib u tio n o f plan s studied b y in d u stry grou p , type o f b a rg a in in g unit,
and m e th o d o f fin a n cin g , w in te r 1960-61
(W o r k e r s in thousands)
T yp e o f b a rg a in in g unit

M eth od o f fin a n cin g

A l l plan s
In du stry grou p

S in gle e m p lo y e r
N um ­
ber

W ork­
ers

P la n s

M u ltie m p lo y e r

W ork­
ers

P la n s

W ork­
ers

N o n c o n trib u to r y
P la n s

W ork­
ers

C o n tr ib u to r y
P la n s

W ork­
ers

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

300

4. 672. 7

231

2 .9 4 6 . 4

69

1 .7 2 6 . 3

251

3 .9 0 1 .9

49

770. 8

M a n u fa c tu r in g --------------------------

229

3. 209. 6

197

2. 639. 8

32

5 6 9 .8

195

2. 821. 1

34

388. 5

F o o d and k in d red p r o d u c t s -------------T o b a c c o m a n u f a c t u r e s ---------------------T e x tile m il l p r o d u c ts -----------------------A p p a r e l and r e la te d p r o d u c t s ---------L u m b e r and w ood p r o d u c t s ,
e x c e p t f u r n i t u r e -----------------------------F u rn itu re and fix t u r e s
- P a p e r and a llie d p r o d u c t s ---------------P r in tin g , p u b lish in g , and
a llie d in d u s tr ie s — ------------------- -----C h e m ic a ls and a llie d p r o d u c t s ------P e t r o le u m r efin in g and
r e la te d in d u s tr ie s
R u b b er and m is c e lla n e o u s
p la s t ic s p r o d u c ts — ------------------ -----L e a th e r and le a th e r p r o d u c t s ------- Stone, c la y , and g la s s p r o d u c ts ----P r i m a r y m e ta l in d u s tr ie s —------------F a b r ic a te d m e ta l p r o d u c ts ------------—
M a c h i n e r y -----------------------------------------E l e c t r ic a l equipm ent
and su p p lies ------------------------------------T r a n sp o rta tio n equ ipm en t —------------In stru m en ts and r e la te d p r o d u c t s —
M is c e lla n e o u s m a n u fa ctu rin g
in d u s tr ie s -----------------------------------------

17
3
8
9

185. 0
26. 1
3 9 .4
3 2 5 .9

12
3
6
1

5

3
4
9

23. 1
42. 7
50. 1

5
13

N onm an u factu rin g -----------------M ining
C o n tr a c t c o n s t r u c t i o n -----------------------T r a n s p o r t a t io n 1---------------------------------C o m m u n ic a t io n s --------------------------------U tilitie s : E l e c t r ic and g a s -------------W h o le s a le and r e t a il t r a d e -------------H o te ls and r e s t a u r a n t s --------------------S e r v ic e s ---------------------------------------------M is c e lla n e o u s n on m an u fa ctu rin g
in d u s tr ie s —----------------------------------- —

2
1
8
3

2
8

114. 8
22. 6
324. 6

11
3
7
9

156. 6
26. 1
3 0 .4
3 2 5 .9

6
_
1
-

28. 4
9 .0
-

2
1
8

1 3 .7
2 .0
45. 6

1
3
1

9 .4
4 0 .7
4. 5

3
4
5

23. 1
4 2 .7
17. 1

_
_
4

_
3 3 .0

16. 2
121. 1

1
13

4. 3
121. 1

4

1 1 .9

5
12

16. 2
119. 6

1

1. 5

9

8 1 .7

9

8 1 .7

8

80. 6

8
4
10
33
13
28

1 0 6 .9
40. 3
74. 4
588. 3
1 1 3 .0
201. 2

8
3
10
33
13
27

1 0 6 .9
30. 3
7 4 .4
588. 3
113. 0
1 9 4 .7

-

16
24
4

316. 3
8 0 5 .0
19. 4

14
24
4

309. 4
8 0 5 .0
1 9 .4

-

-

-

1

1. 1

1
_
1

1 0 .0
_
6. 5

8
4
10
32
13
26

1 0 6 .9
40. 3
74. 4
5 7 1 .9
1 1 3 .0
1 8 4 .4

1
.
2

1 6 .4
_
16. 8

2
-

6 .9
-

11
20
2

1 6 3 .0
759. 2
15. 7

5
4
2

153. 3
45. 8
3. 7

-

9

33. 5

5

15. 6

4

1 7 .9

9

33. 5

71

1 .4 6 3 . 1

34

306. 6

37

1. 156. 5

56

1. 080. 8

15

382. 3

6
12
17
4
14
8
2
4

221. 6
405. 0
468. 2
153. 2
64. 3
50. 1
3 9 .0
3 1 .7

4
10
4
14
-

21. 6
46. 5
153. 2.
64. 3
-

2
12
7

2 0 0 .0
405. 0
4 2 1 .7
50. 1
39. 0
3 1 .7

5
11
11
4
9
8
2
4

2 1 8 .0
105. 0
4 3 5 .0
153. 2
3 9 .8
50. 1
3 9 .0
3 1 .7

1
1
6
_
5
-

3. 6
3 0 0 .0
33. 2
_
24. 5
-

4

3 0 .0

2 1 .0

2

2

2 1 .0

E x clu d e s r a ilr o a d and a ir lin e in d u s tr ie s ,




70.
26.
16.
1.

2

-

8
2
4

9 .0

2

9 .0

18
T a b le 3.

D is tr ib u tio n o f b e n e fits f o r s u r v iv o r s o f a c t iv e and r e t ir e d w o r k e r s in s e le c t e d p e n s io n p lan s
un d er c o ll e c t iv e b a rg a in in g and b e n e fit en title m e n t as r e la te d to tim e o f d eath,
by type o f b a rg a in in g unit and m e th o d o f fin a n cin g , w in te r I9 6 0 —61
(W o rk e rs in th ou san d s)
T yp e o f b a rg a in in g unit

E n title m e n t to s u r v iv o r
b e n e fit as r e la te d to
tim e o f death

M eth od o f fin a n cin g

j-

S in gle e m p lo y e r
N u m ber

W ork ers

4 ,6 7 2 . 7

A ll plan s s tu d ie d ___________________

300

T o ta l w ith death b e n e fit ----------------W ith s u r v iv o r op tio n 1 ---------------D eath b e n e fit p a y a b le f o r
death o c c u r r in g —
B e fo r e r e t ir e m e n t o n l y ------------W ith s u r v iv o r op tio n 1 --------A fte r r e t ir e m e n t o n l y ---------------W ith s u r v iv o r o p tio n 1 --------B e fo r e o r a fte r r e t ir e m e n t ----W ith s u r v iv o r o p tio n 1 ----------

50
19

1, 1 9 9 .2
317. 2

3
1
32
10
15
8

178. 0
3. 0
5 2 5 .7
132. 3
495. 5
1 8 1 .9

P la n s

M u ltie m p lo y e r

W orkers

P la n s

2 ,9 4 6 . 4

69

28
18

472. 4
310. 7

22
1

1
1
15
9
12
8

3.
3.
165.
125.
304.
181.

231 .

0
0
2
8
2
9

W orkers

P la n s

C o n tr ib u to r y

W orkers

P la n s

W ork ers

1 ,7 2 6 . 3

251

3 ,9 0 1 .9

49

770. 8

726. 8
6. 5

44
13

1 ,0 3 9 .4
1 5 7 .4

6
6

1 5 9 .8
1 5 9 .8

175. 0

3
1
28
6
13
6

178. 0
3. 0
488 . 0
9 4 .6
3 7 3 .4
5 9 .8

4
4
2
2

2
-

17
1
3

N o n c o n trib u to r y

-

360. 5
6. 5
191. 3

-

-

-

-

3 7 .7
3 7 .7
122. 1
122. 1

1 P la n s con tain in g p r o v is io n s f o r both a death b e n e fit and s u r v iv o r op tio n .

Table 4.

Distribution of plans providing death benefits, survivor options, and return of worker contributions, winter I960—611

B e fo r e
r e t ir e m e n t
on ly

-

-

A ft e r
r e t ir e m e n t
on ly

X
-

W o r k e r co n tr ib u tio n s
re tu r n a b le 1
23
4

S u r v iv o r option

D eath b e n e fit
B e fo r e
o r a fte r
r e t ir e m e n t

Any

Join t and
s u r v iv o r

P e r io d
c e r ta in

B e fo r e
B e fo r e
r e t ir e m e n t o r a fte r
r e t ir e m e n t
on ly

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

A ll p lan s

N u m ber

W orkers
(th ou san ds)

184

2 ,7 2 6 .4

8
6
7
22
2
1
34
72
15
4 33
2
1
5
1
5

181. 9
9 4 .6
313. 6
3 9 3 .4
1 7 5 .0
3. 0
3 7 .7
1, 0 7 3 .8
1 0 9 .8
258. 2
14. 0
5. 6
32. 6
12. 0
21. 2

'

1
2
3
4




B a s e d on a study o f 300 s e le c t e d p e n s io n plan s u n d er c o ll e c t iv e b a rg a in in g c o v e r in g a p p ro x im a te ly 4 ,6 7 0 ,0 0 0 w o r k e r s .
R e la te s o n ly to c o n tr ib u to r y p la n s.
In clu d e s 1 plan c o v e r in g 3 1 ,8 0 0 w o r k e r s that a ls o p r o v id e d a c a s h refu n d op tion .
In clu d e s 1 p lan c o v e r in g 1 6 ,4 0 0 w o r k e r s that a ls o p r o v id e d a c a s h refu n d op tion .

19
T a b le 5.

E lig ib ility r e q u ir e m e n ts f o r death b e n e fits f o r a c tiv e and r e t ir e d w o r k e r s , w in te r 1960—61 1

_£Workers_ir^Jjhous^nd£^
D eath b e n e fit p a y a b le upon death o c c u r r in g —
T o ta l
B e f o r e r e t ir e m e n t on ly

E lig ib ility r e q u ir e m e n t
P la n s

W orkers

P la n s

W ork ers

1, 1 9 9 .2

3

178. 0

A ll plans w ith death b e n e fit -----------

50

P la n s w ithout e lig ib ilit y r e q u ir e m en ts f o r death b e n e fits _________
P la n s w ith e lig ib ilit y r e q u ir e ­
m en ts f o r death b e n e fits _________
S e r v ic e ___________________________ __
3 y e a r s o r l e s s __________________
5 y e a r s ___________________________
10 y e a r s _____________________ —
15 y e a r s __________________________
P a r t ic ip a t io n 3 _____________________
3 y e a r s o r l e s s __________________
A g e ----------------------------------------------------A g e 65 ---------------------------------- ----A g e and s e r v ic e ____________________
A g e 30 and 2 y e a r s ' s e r v i c e ----A g e 45 and 10 y e a r s ' s e r v ic e —
A g e 55 and 5 y e a r s ' s e r v i c e ----A g e 60 and 10 y e a r s ' s e r v ic e —
A g e 65 and 15 y e a r s ' s e r v ic e —
A lte r n a tiv e s _________________________
15 y e a r s ' s e r v ic e o r a ge 6 0 -----O th er _________________________________

21

3 8 5 .4

-

29
11
4
4
1
2
3
3
2
2
5
1
1
1
1
1
1
1
7

8 1 3 .8
524. 1
1 4 9 .7
45. 5
145. 0
1 8 3 .9
44. 9
44. 9
27. 1
27. 1
27. 8
11. 8
3. 0
4. 1
2 .9
6. 0
116. 0
116. 0
7 3 .9

3
2
1
1
1
1
-

178. 0
148. 0
3. 0
145. 0
3 0 .0
30. 0
-

A ft e r r e t ir e m e n t on ly
P la n s

W orkers

B e f o r e o r a fte r
r e t ir e m e n t
P la n s

W ork ers

32

5 2 5 .7

20

379. 3

1

6. 1

12
3
2
1
2
42
1
1
56

1 4 6 .4
4 3 .6
3 4 .6
9. 0
27. 1
27. 1
6. 0
6. 0
6 9 .7

2 14
6
2
2
2
2
2
4
1
1
1
1
1
1
61

4 8 9 .4
332. 5
115. 1
33. 5
1 8 3 .9
14. 9
1 4 .9
2 1 .8
1 1 .8
3. 0
4. 1
2 .9
116. 0
116. 0
4. 2

15

495 . 5

1 S ee fo o tn o te 1, ta b le 4.
2 In clu d es 11 p la n s , c o v e r in g 4 7 4 ,4 0 0 w o r k e r s , w ith e lig ib ilit y re q u ir e m e n ts f o r a c tiv e w o r k e r s o n ly.
3 E x clu d e s p r e m e m b e r s h ip s e r v ic e .
4 In clu d es 1 plan c o v e r in g 25, 000 w o r k e r s that p r o v id e d i f d is a b ilit y r e t ir e m e n t o c c u r r e d a fte r age 60, the death b e n e fit
w ou ld not b e p a y a b le u n til # ie w o r k e r attained age 65.
5 In clu d es 2 plans c o h e r in g 1.0, 300 w o r k e r s that p r o v id e d au tom a tic e lig ib ilit y if in s u r e d un d er co m p a n y gro u p life in ­
s u r a n c e plan ; and 1 p la n c o v e r in g 6, 500 w o r k e r s that p r o v id e d a w id o w 's b e n e fit at age 55, p a y a b le f o r life o r until r e m a r r ia g e .
6 P r o v id e d a u tom a tic e lig ib ilit y i f in s u r e d u n d er co m p a n y grou p life in s u r a n c e plan .




20
T a b le 6.

R e la tio n s h ip o f life in s u r a n c e to p e n s io n plan p r o t e c tio n at r e t ir e m e n t (age 65) in 200 p r o g r a m s
u n d er c o ll e c t iv e b a rg a in in g , w in te r 1960—61
(W o r k e r s in th ou san d s)
W ith p e n s io n plan p r o t e c tio n at age 65, f o r s u r v iv o r s
A ll p r o g r a m s

D eath b e n e fits

R e la tio n s h ip
Lu m p sum
T o ta l

W ork ers

P la n s

W ork ­
ers

P la n s

W ork ­
ers

P aym en t
c e r ta in
W ork ­
P la n s
ers

W orker
c o n tr ib u tio n s
re tu r n a b le

W ithout p e n s io n
p la n p r o t e c tio n
at age 65, f o r
s u r v iv o r s

P la n s

W ork­
ers

P la n s

W ork­
ers

A ll p r o g r a m s a n a ly z e d ------------------

200

3 ,5 5 1 .4

55

799. 5

14

323. 3

15

243. 3

26

2 3 2 .9

1 145

2 , 7 5 1 .9

L ife in s u r a n c e d is c o n tin u e d _____
F u lly r e p la c e d by p e n s io n plan

51

749. 8

16

2 2 7 .9

8

147. 8

6

31. 1

2

49. 0

35

521. 9

7

78. 1

7

78. 1

1

2. 3

4

26. 8

2

49. 0

9

149. 8

9

1 4 9 .8

7

145. 5

2

4. 3

-

-

-

35

521. 9

-

-

-

-

-

3 35

521. 9

125

2 .3 0 9 . 1

32

529. 3

6

175. 5

8

2 1 0 .7

18

143. 1

93

1 .7 7 9 . 8

22

4 1 8 .4

22

418. 4

3

149. 8

47

1 8 5 .7

5 12

8 2 .9

10

1 1 0 .9

10

1 1 0 .9

63

2 5 .7

25. 0

76

60. 2

93

1 ,7 7 9 .8

8 93

1 ,7 7 9 . 8

24
10

492. 5
38. 5

7
5

42. 3
18. 6

-

1. 5
1 .5

6
4

4 0 .8
17. 1

17
’ 5

450 . 2
------- T T T T

14

454. 0

2

2 3 .7

2

23. 7

10 12

430 . 3

P a r t ia lly r e p la c e d b y p e n s io n
p la n p r o t e c t i o n ---------- -------------N o p e n s io n plan p r o t e c tio n
p r o v id e d —------------------- ------------L ife in s u r a n c e im m e d ia te ly
r e d u c e d ___________________________
F u lly r e p la c e d b y p e n s io n p lan
p rn tprtin n ^
P a r t ia lly r e p la c e d b y p e n s io n
plan prn tprtin n
....
.
N o p e n s io n pla n p r o t e c tio n
p r o v id e d — __
- L ife in s u r a n c e m a in ta in e d at
a ge 65 _________________ : ___________
R ed u ce d o r d is c o n tin u e d la t e r __
N ot r e d u c e d o r d is co n tin u e d
la te r

1
2
3
4
5
6
fu r th e r
7
8
9
10




In clu d es
In m o s t
In clu d e s
In clu d es
In clu d es
In clu d e s
reduced
In clu d e s
In clu d e s
In clu d es
In clu d es

-

-

-

“

1
1

-

68 p la n s c o v e r in g 1 ,1 1 6 ,1 0 0 w o r k e r s that m a d e s u r v iv o r o p tio n s a v a ila b le .
p la n s , the r e p la c e m e n t p r o t e c t io n w a s , at le a s t t e m p o r a r ily , g r e a t e r than the am ount d is c o n tin u e d .
12 p la n s c o v e r in g 163, 100 w o r k e r s that m a d e o n ly s u r v iv o r o p tio n s a v a ila b le .
2 p la n s c o v e r in g 1 4 7 ,8 0 0 w o r k e r s that fu r th e r r e d u c e d the am ount o f life in s u r a n c e b e f o r e a ge 70.
4 plan s c o v e r in g
4 4 ,6 0 0 w o r k e r s that fu r th e r r e d u c e d the am ount o f l if e in s u r a n c e b e f o r e a ge 70.
1 p lan c o v e r in g 6 ,0 0 0 w o r k e r s that d is co n tin u e d life in s u r a n c e c o v e r a g e , and 1 plan w ith 7 ,9 0 0
w o r k e r s that
the am ount o f lif e in s u r a n c e b e f o r e age 70.
1 pla n c o v e r in g 3 ,6 0 0 w o r k e r s that fu r th e r r e d u c e d the am ount o f l if e in s u r a n c e b e f o r e age 70.
51 p la n s c o v e r in g 9 1 0 ,6 0 0 w o r k e r s that m a d e s u r v iv o r o p tio n s a v a ila b le .
3 plan s c o v e r in g
1 8 ,4 0 0 w o r k e r s that m a d e s u r v iv o r o p tio n s a v a ila b le .
2 p la n s c o v e r in g
24, 000 w o r k e r s that m a d e s u r v iv o r o p tio n s a v a ila b le .

21
T a b le 7.

P la n s p r o v id in g s u r v iv o r o p tio n s by in d u stry gro u p , type o f b a rg a in in g unit,
and m eth od o f fin a n cin g , w in te r 1960—61 1
(W o r k e r s in thousands)
M eth od o f fin a n cin g

T yp e o f b a rg a in in g unit
A l l plan s
In du stry grou p
N u m ber W o r k e r s

S in gle e m p lo y e r

M u lti e m p lo y e r

N on c ont r ibuto r y

P la n s

P la n s

W orkers

P la n s

W ork ers

W orkers

C o n tr ib u to r y
P la n s

W ork ers

A ll plans w ith s u r v iv o r o p t i o n s ------

148

1 .8 2 3 . 2

142

1 .7 7 6 . 5

6

4 6 .7

105

1. 373. 6

43

4 4 9 .6

M a n u fa c tu r in g --------------------------

125

1 .6 5 8 .4

122

1. 635. 7

3

22. 7

91

1. 2 6 9 .9

34

388. 5

F o o d and k in d red p r o d u c t s -------------T o b a c c o m a n u fa c t u r e s ---------------------T e x tile m il l p r o d u c t s -----------------------A p p a r e l and r e la te d p r o d u c ts —— —
L u m b er and w ood p r o d u c t s ,
e x c e p t f u r n i t u r e -----------------------------F u rn itu re and fix t u r e s — -----------------P a p e r and a llie d p r o d u c t s ---------------P r in tin g , p u b lis h in g , and
a llie d i n d u s t r ie s -----------------------------C h e m ic a ls and a llie d p r o d u c t s ------P e t r o le u m re fin in g and
r e la te d i n d u s t r ie s ------------- -------------R u b b er and m is c e lla n e o u s
p la s t ic s p r o d u c t s -------------— --------—
L e a th e r and le a th e r p r o d u c t s ---------Stone, c la y , and g la s s p r o d u c t s ----P r im a r y m e t a l i n d u s t r i e s ---------------F a b r ic a t e d m e ta l p r o d u c ts -------------M ach in e r y _______________________ —___
E l e c t r ic a l equ ipm en t and
s uppli e s ___ ____ _________ ________
T ra n sp o rta tio n equ ipm en t ---------------In stru m en ts and re la te d p r o d u c t s —
M is c e lla n e o u s m a n u fa ctu rin g
in d u s tr ie s -----------------------------------------

9
2
1
-

38. 6
21. 5
9 .0
-

8
2
1
-

31. 8
21. 5
9 .0
-

1
-

6 .8
-

3
2
-

10. 2
2 1 .5
-

6
1
-

2 8 .4
9 .0
-

3
7

23. 1
43. 3

2
7

1 3 .7
43. 3

1
-

9 .4
-

3
3

23. 1
10. 3

4

3 3 .0

1
8

4. 3
5 9 .6

1
8

4. 3
59. 6

-

-

-

1
7

4. 3
58. 1

-

-

1

1 .5

8

8 0 .6

8

80. 6

-

-

-

8

80. 6

8
1
9
21
7
14

1 0 6 .9
3. 5
52. 1
493. 5
8 6 .6
113. 6

8
1
9
21
7
13

1 0 6 .9
3. 5
52. 1
493. 5
8 6 .6
107. 1

1

6 .5

8
1
9
20
7
12

1 0 6 .9
3. 5
52. 1
477. 1
8 6 .6
96. 8

1
2

16. 4
1 6 .8

9
9
4

286. 5
2 0 3 .7
1 9 .4

9
9
4

286. 5
2 0 3 .7
19. 4

-

-

4
5
2

133. 2
1 5 7 .9
1 5 .7

5
4
2

153. 3
4 5 .8
3 .7

4

12. 6

4

12. 6

4

12. 6

-

-

N onm an u factu rin g — ------- --------

23

1 6 4 .8

20

1 4 0 .8

14

1 0 3 .7

9

61. 1

M ining
C on tra ct c o n s t r u c t i o n -----------------------T r a n s p o r ta tio n 2---------------------------------1
C o m m u n ic a t io n s --------------------------------U tilitie s : E l e c t r ic and g a s -------------W h o le s a le and r e t a il t r a d e -------------H otels and r e s t a u r a n t s --------------------S e r v ic e s —-----------------— ------------------ —
M is c e lla n e o u s n on m an u fa ctu rin g
i n d u s t r i e s -----------------------------— --------

2
1
1
2
13
1

6 .9
4 .0
1 2 .0
38. 1
6 2 .8
1 5 .0

2
1
2
13

6 .9
1 2 .0
38. 1
6 2 .8

1
1

3. 3
4 .0

-

-

!
1

3. 6
1 2 .0

-

-

24. 5

-

-

-

-

-

-

38. 1
38. 3
1 5 .0

5

-

2
8
1

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1

5 .0

1

5 .0

2

3

2 6 .0

1 See fo o tn o te 1, ta b le 4.
2 E x clu d e s r a ilr o a d and a ir lin e in d u s t r ie s .




2

2 1 .0

-

3

2 4 .0

1
-

4 .0
-

-

-

.

1

-

1 5 .0

-

2 1 .0

22
T a b le 8.

P la n s w ith an op tio n f o r n o r m a l r e t ir e m e n t b y c o n d itio n s o f e le c t io n
and a v a ila b ility o f option , w in te r 1960—61 1
( W o r k e r s in thousand s)
O ption a v a ila b le an ytim e p r i o r to ----A l l plan s

A c tu a l
r e t ir e m e n t

C on d itio n s o f e le c t io n
N um ber W ork ers

A ll p la n s p r o v id in g a jo in t and
s u r v iv o r o p tio n —-------------------------- —

147

P la n s

W orkers

N or m a l
retire rr lent age
P la n s

W orkers

O th er

R e c e ip t o r p a y ­
m e n t o f b e n e fits
P la n s

W orkers

P la n s

W orkers

1. 820. 2

61

7 3 4 .9

52

552. 5

31

527. 5

3

5. 3

1

1 .8

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

21

319. 1

2 10

2 3 6 .0

5

31. 5

5

49. 8

O ption not a v a ila b le a f t e r ----------------90 d a ys o r l e s s p r i o r to
r e t i r e m e n t ---------------------------------1 y e a r p r i o r to r e t i r e m e n t ------ —
2 y e a r s p r i o r to r e t i r e m e n t -------3 y e a r s p r i o r to r e t ir e m e n t — —
5 y e a r s p r i o r to r e t i r e m e n t -------A s p e c ifie d a g e ---------------------------

21

236. 5

15

216. 7

3

13. 4

3

6 .4

5
2
4
1
3
6

18. 4
37. 1
126. 2
9 .0
12. 8
3 3 .0

1
2
53
1
2
66

3. 5
37. 1
123. 1
9 .0
11. 0
3 3 .0

32
1
-

42
1
-

4. 6
1 .8
"

-

-

-

10. 3
3. 1
-

103
7
8
5
76
3

1 .2 6 0 .6
54. 8
6 2 .0
27. 6
1 ,0 6 6 . 3
3 6 .8

35
2
3
4
7 21
82

279. 2
1 8 .0
38. 8
23 . 6
156. 3
3 5 .4

43
2
4
1
35
-

5 0 6 .6
3 0 .0
21. 1
4 .0
4 4 5 .5
-

23
3
20
-

471. 3
6. 8
464. 5
-

2
1
91

3. 5
2. 1
1 .4

4

13. 1

10 3

7. 1

11 1

6 .0

-

-

-

-

2

4 .0

1

3. 0

1

1 .0

_

_

_

_

N o c o n d itio n s o f e le c t io n

E v id e n ce o f ann u itan t's g o o d health
r e q u ir e d i f e le c t e d a ft e r ---------------1 y e a r p r i o r to r e t i r e m e n t --------2 y e a r s p r i o r to r e t ir e m e n t — —
3 y e a r s p r i o r to r e t i r e m e n t -------5 y e a r s p r i o r to r e t i r e m e n t -------A s p e c ifie d a g e ----------------------------A s p e c ifie d a ge o r 5 y e a r s
p r i o r to r e t i r e m e n t -------------------O t h e r ___ ______________________ _______

-

1 S ee fo o tn o te 1, ta b le 4.
2 In clu d e s 2 p la n s c o v e r in g 6 3 ,0 0 0 w o r k e r s that p r o h ib ite d e le c t io n a ft e r e lig ib ilit y f o r r e t ir e m e n t w as e s ta b lis h e d .
3 1 p la n c o v e r in g 4 ,8 0 0 w o r k e r s s p e c ifie d that the op tio n w as not a v a ila b le a fte r 31 days p r i o r to r e t ir e m e n t ; and
1 pla n c o v e r in g 5 ,5 0 0 w o r k e r s s p e c ifie d a fte r 15 d a y s .
4 O p tio n not a v a ila b le a fte r 30 days p r i o r to r e c e ip t o r p aym en t o f b e n e fits .
5 In clu d e s 1 pla n c o v e r in g 59, 200 w o r k e r s that s p e c ifie d that the o p tio n w as not a v a ila b le a fte r 2 y e a r s p r i o r to r e t i r e ­
m en t, o r age 65, w h ic h e v e r is e a r l ie r .
6 1 p lan c o v e r in g 3 ,0 0 0 w o r k e r s s p e c ifie d that the o p tio n w as not a v a ila b le a fte r age 62; a n oth er plan, c o v e r in g 2,600 w o r k ­
e r s , s p e c ifie d age 63; and the r e m a in in g 4 p la n s, c o v e r in g 27, 400 w o r k e r s , s p e c ifie d a ge 64.
' In clu d e s 3 p la n s c o v e r in g 45, 600 w o r k e r s that r e q u ir e d e v id e n c e o f g o o d health o f both the annuitant and the c o n t in ­
gent annuitant.
8 1 p lan c o v e r in g 9, 400 w o r k e r s r e q u ir e d e v id e n c e o f g o o d health if the o p tio n w as e le c t e d a fte r age 60; and the o th e r
plan, c o v e r in g 2 6 ,0 0 0 w o r k e r s , s p e c ifie d a ge 64.
9 R e q u ir e d e v id e n c e o f g o o d h ealth i f o p tio n e le c t e d a fte r age 62.
10 O p tion m a y b e e le c t e d upon the e a r l ie r o f age 65 o r 5 y e a r s p r i o r to r e t ir e m e n t .
11 O p tion m a y b e e le c t e d upon the e a r l ie r o f age 60 o r 5 y e a r s p r i o r to r e t ir e m e n t .




23
T a b le 9.

P la n s w ith an o p tio n f o r e a r ly r e t ir e m e n t by co n d itio n s o f e le c t io n
and a v a ila b ility o f option , w in te r 1 9 6 0 -6 1 1
(W o r k e r s in thousands)
O ption a v a ila b le an ytim e p r i o r t o —
A l l p lan s

A c tu a l
r e t ir e m e n t

C on d ition s o f e le c t io n
N um ­
ber

A l l p lan s p r o v id in g a jo in t and
s u r v iv o r op tion f o r e a r ly
r eti r em e n t __________________________

128

W ork­
ers

P la n s

W ork­
ers

1. 655. 8

56

6 8 3 .4
2 3 4 .8

N onn al
r e tir e im ent
ae e
W ork­
P la n s
ers

11

217. 0

M in im ui n e a r ly
r e t ir e iment
r e q u ir e iments
W ork­
P la n s
ers

R e c e ip t o r
p a ym e n t o f
b e n e fits
W ork­
P la n s
ers

29

2 2 9 .4

30

522. 5
4 9 .8

O th er

P la n s

W ork­
ers

2

3. 5

No con d ition s o f e l e c t i o n -----------------

17

3 0 0 .0

z9

3

1 5 .4

5

O ption not a v a ila b le a ft e r
— — 90 days o r l e s s p r i o r to
r e t ir e m e n t
--------------------- —
1 y e a r p r i o r to r e t i r e m e n t ------ —
2 y e a r s p r i o r to r e t i r e m e n t ------3 y e a r s p r i o r to r e t i r e m e n t ------5 y e a r s p r i o r to r e t ir e m e n t -------A s p e c ifie d a g e -----------------------------

19

201. 5

14

186. 5

1

3. 1

!

5. 5

3

6 .4

4
1
4
1
3
6

13. 6
6 .9
126. 2
9 .0
12. 8
3 3 .0

1
1
53
1
2
66

3. 5
6 .9
123. 1
9 .0
1 1 .0
3 3 .0

1
-

3. 1
-

31
-

5. 5
-

42
1
“

4 .6
1 .8
-

-

"

90
8
3
67
3

1. 150. 3
2 9 .8
6 2 .0
15. 2
9 9 3 .4
36. 8

32
1
3
3
7 20
82

2 5 9 .1
8 .0
38. 8
15. 2
154. 6
3 5 .4

10
9
-

2 1 3 .9
2 0 7 .9
-

24
1
4
19
-

207. 5
1 5 .0
21. 1
171. 4
-

22
3
19
-

466. 3
6 .8
459. 5
-

2
1
9 1.

3. 5
2. 1
1 .4

4

13. 1

10 3

7. 1

“ 1

6 .0

-

-

-

"

-

-

3 .0

_

_

1

1 .0

_

_

_

_

E v id e n ce o f a n n u ita n ts g o o d health
r e q u ir e d i f e le c t e d a fte r — —-----—
1 y e a r p r i o r to r e t ir e m e n t — — 2 y e a r s p r i o r to r e t i r e m e n t -------3 y e a r s p r i o r to r e t i r e m e n t -------5 y e a r s p r i o r to r e t ir e m e n t — —
A s p e c ifie d age — ------------------------A s p e c ifie d a ge o r 5 y e a r s
p r i o r to r e t ir e m e n t — -------------O t h e r ---------------------------------- ------------- —

5

2

4. 0

i

-

1 S ee fo o tn o te 1, ta b le 4.
2 2 plan s c o v e r in g 63* 000 w o r k e r s p r o h ib ite d e le c t io n a fte r e lig ib ilit y f o r r e t ir e m e n t w as e s ta b lis h e d .
3 O ption not a v a ila b le a ft e r 30 d a ys p r i o r to r e t ir e m e n t .
4 O ption not a v a ila b le a ft e r 30 d a ys p r i o r to r e c e ip t o r p aym en t o f b e n e fits .
5 1 p la n c o v e r in g 59, 200* w o r k e r s s p e c ifie d that the op tio n w as not a v a ila b le a fte r 2 y e a r s p r i o r to r e t ir e m e n t , o r age 65,
w h ic h e v e r is e a r l ie r .
6 1 pla n c o v e r in g 3, 000 w o r k e r s s p e c ifie d that the o p tio n w as not a v a ila b le a fte r age 62; 1 plan , c o v e r in g 2, 600 w o r k e r s ,
s p e c ifie d age 63; and 4 plan s, c o v e r in g 27, 400 w o r k e r s , s p e c ifie d age 64.
7 3 plan s c o v e r in g 45, 600 w o r k e r s r e q u ir e d e v id e n c e o f g o o d h ealth o f both the annuitant and the con tin gen t annuitant.
8 1 p la n , c o v e r in g 9 ,4 0 0 w o r k e r s , s p e c ifie d a ge 60; the o th e r plain, c o v e r in g 2 6 ,0 0 0 w o r k e r s , s p e c ifie d age 64.
9 R e q u ir e d e v id e n c e o f g o o d h ealth i f e le c t e d a ft e r age 62.
10 O ption m a y b e e le c t e d upon the e a r l ie r o f age 65 o r 5 y e a r s p r i o r to r e tir e m e n t.
11 O ption m a y b e e le c t e d upon the e a r l ie r o f age 60 o r 5 y e a r s p r i o r to r e tir e m e n t.




24
T a b le 10.

P la n s w ith an op tio n f o r d is a b ilit y r e t ir e m e n t by c o n d itio n s o f e le c t io n and a v a ila b ility o f option, w in te r 1960—61 1
(W o r k e r s in thousand s)
O ption a v a ila b le an ytim e p r i o r to—
A l l plan s

A ctu a l
r e t ir e m e n t

C on d ition s o f e le c t io n
N u m ber

W ork ers

P la n s

W ork ers

N o rm a l
r e t ir em ent
ag e
P la n s
W ork ers

k e c e ip t o r
paym ent of
b e n e fits
P la n s

W orkers

A l l p la n s p r o v id in g a jo in t and
s u r v iv o r o p tio n f o r d is a b ilit y
r e t ir e m e n t -------------------------------

73

1, 076. 3

44

423. 9

7

162. 3

22

490. 1

---------

15

176. 6

2 10

125. 5

1

10. 0

4

41. 1

9

58. 5

6

49. 3

1

4. 8

2

4. 4

3

10. 9

1

3. 5

31

4. 8

41

2. 6

2

32. 2

52

32. 2

N o c o n d itio n s o f e le c t io n

O ption not a v a ila b le i f
e le c t e d a ft e r ---------------------------90 d a ys o r l e s s p r i o r to
r e t ir e m e n t -------------------------1 y e a r p r i o r to
r e t ir e m e n t -------------------------2 y e a r s p r i o r to
r e t i r e m e n t -------------------------5 y e a r s p r i o r to
r e t ir e m e n t -------------------------E v id e n ce o f an n u itan t's g o o d
h ealth r e q u ir e d if
e le c t e d a f t e r ----------------------------1 y e a r p r i o r to
r e t i r e m e n t -------------------------2 y e a r s p r i o r to
r e t ir e m e n t -------------------------3 y e a r s p r i o r to
r e t ir e m e n t -------------------------5 y e a r s p r i o r to
r e t i r e m e n t -------------------------A s p e c ifie d a g e o r 5 y e a r s
p r i o r to r e t i r e m e n t -----------O t h e r ---------------------------------------------




1

2. 6

61

2. 6

“

"

3

12. 8

2

11. 0

1

1. 8

47

830. 2

26

238. 1

5

16

444. 6

1

26. 0

71

26. 0

-

1

4. 0

1

4. 0

147. 5
-

-

3

14. 1

2

10. 1

1

4. 0

38

773. 0

8 19

1 9 0 .9

3

137. 5

16

4

13. 1

3

7. 1

1

6. 0

-

2

11. 0

2

11. 0

_

_

_

-

444. 6

1 S ee fo o tn o te 1, ta b le 4.
2 In clu d e s 2 p la n s c o v e r in g 63, 000 w o r k e r s that p r o h ib ite d e le c t io n a ft e r e lig ib ilit y f o r r e t ir e m e n t w as e s ta b lis h e d .
3 O ption not a v a ila b le a fte r 31 d a y s p r i o r to r e t ir e m e n t .
4 O ption n o t a v a ila b le a ft e r 30 d a y s p r i o r to r e c e ip t o r p aym en t o f b e n e fits .
5 In clu d e s 1 p la n c o v e r in g 2, 000 w o r k e r s that s p e c ifie d that the o p tio n w as not a v a ila b le a fte r a g e 64.
6 O ption n o t a v a ila b le a fte r a ge 63.
7 E v id e n ce o f g o o d health r e q u ir e d i f e le c t e d a ft e r a g e 64.
8 In clu d e s 1 p la n c o v e r in g 9, 400 w o r k e r s that r e q u ir e d e v id e n c e o f g o o d h ealth i f e le c t e d a fte r a g e 60.

_

25
T a b le 11.

T im e r e q u ir e m e n ts f o r e le c t io n o f a jo in t and s u r v iv o r o p tio n b y e ffe c t iv e date o f o p tio n , w in te r 1960—61 1
(W o r k e r s in thou san d s)
O ption is e ffe ctiv e
A ll plan s

T im e r e q u ir e m e n ts

At norm al
r e t ir e m e n t
age

N um ber

W orkers

P la n s

W orkers

P lans.

147

1,820. 2

71

7 2 2 .8

29

47

521. 7

29

315. 5

48

529. 0

24

183. 3

31

527. 5

7

8

3 8 .4

10
3

A ll p la n s p r o v id in g option
f o r n o r m a l r e t ir e m e n t __
P r i o r to actu al
r e t ir e m e n t ______________
P r i o r to n o r m a l
P r i o r to r e c e ip t o r
p aym en t o f b e n e f i t s _____
P r i o r to a s p e c ifie d
age 3 _____________________
P e r io d o f y e a r s p r i o r
to a ctu a l o r n o r m a l
r e t ir e m e n t 4 ___________ _
O th er ______________________
A ll p la n s p r o v id in g option
f o r e a r ly r e t i r e m e n t ----P r i o r to a ctu a l
r e t ir e m e n t _____________
P r i o r to r e c e ip t o r
p a y m en t o f b e n e f i t s ------P r i o r to a s p e c ifie d
acre3
_ ______ __
“ o '5 P e r io d o f y e a rs p r io r
to a ctu al
r e t ir e m e n t 4 _____________
Ofh<»r ...
A ll p la n s p r o v id in g op tion
f o r d is a b ilit y
r e t ir e m e n t ______________
P r i o r to a ctu a l
r e t i r e m e n t ______________
P r i o r to r e c e ip t o r
p aym en t o f b e n e fits ______
P r i o r to a s p e c ifie d
P e r io d o f y e a rs p r io r
to a ctu a l
rpm pn t *

1
2
3
4
5

U pon a ctu a l
r e t ir e m e n t

W ork­
ers

L a te r o f
a ctu a l r e ­
t ir e m e n t o r
norm al r e ­
tir e m e n t age
W ork­
P la n s
ers

60 days
a ft e r a ctu a l
r e t ir e m e n t
P la n s

W ork ­
ers

D ate annuity
r e c e iv e d o r
paym ent
P la n s

W ork ­
ers

O th er

P la n s

W ork ­
ers

361. 5

27

4 9 5 .8

6

55. 2

9

1 0 3 .8

23

38. 0

7

3 6 .9

2

23. 2

5

18

271. 0

2

9. 9

1

5. 5

_

3 5 .7

1

5. 0

16

444. 6

3

26. 5

4

2

6. 0

5

2 9 .4

1

3. 0

-

-

-

-

-

198. 3
5. 3

8

180. 2
2. 1

52
-

18. 1
-

_

_

_

_

_

_

_

_

1

1 .4

-

-

-

-

1

1. 8

128

1,655.8

67

671. 2

17

259.. 2

27

4 9 5 .8

5

54. 0

9

1 0 3 .8

3

7 1 .8

82

9 4 3 .7

51

4 8 1 .4

2 12

228. 1

9

46. 8

2

27. 5

5

88. 1

3

7 1 .8

30

522. 5

7

3 5 .7

16

444. 6

3

26. 5

4

15. 7

■

6

33. 0

1

2. 0

4

28. 0

1

3. 0

_

-

_

_

_

8
2

153. 1
3. 5

7
1

150. 0
2. 1

1

3. 1

_

_

_

_

1

_
1 .4

_

_

•

_

_

_

_

73

1,076. 3

29

255. 0

12

2 5 2 .9

24

487. 5

4

4 5 .8

4

35. 1

_

_

45

5 3 6 .4

22

1 8 9 .8

2 10

2 4 7 .4

8

42. 9

2

23. 2

3

33. 1

-

22

490 . 1

2

18. 0

1

2 .9

16

444. 6

2

22. 6

1

2. 0

-

3

8. 6

2

6 .0

1

2. 6

“

"

"

■

“

■

3

41. 2

3

41. 2

5

81. 1

88. 1

1

20. 0

_

3

59. 3

1 5 .7

“

*

1

“

“

-

S ee fo o tn o te 1, ta b le 4.
In clu d es 1 pla n c o v e r in g 8, 400 w o r k e r s that m a d e the o p tio n e ffe c t iv e the e a r l ie r o f a ctu a l o r n o r m a l r e t ir e m e n t .
E le c t io n o f op tion m u s t b e m a d e p r i o r to a g e s 6 2 -6 5 .
E le c t io n o f op tion m u s t b e m a d e w ith in 1 to 5 y e a r s p r i o r to a ctu a l r e t ir e m e n t o r g o o d h ealth m u s t b e d e m o n s tr a te d .
E le c t io n o f op tion m u s t b e m a d e w ith in 1 to 2 y e a r s p r i o r to n o r m a l r e t ir e m e n t o r g o o d h ealth m u s t b e d e m o n s tr a te d .




■

_

26
T a b le 12.

D is trib u tio n o f p lan s b y e ffe c t iv e date and am ount o f jo in t and s u r v iv o r option , w in ter 1960—61 1
(W o r k e r s in thousands)
A m oun t o f jo in t and s u r v iv o r o p tio n
C h o ic e o f—
A ll plan s

Any
fr a c t io n 2

E ffe c tiv e date

W ork ­
N um ­ W ork ­
P la n s
ber
ers
ers

A l l p la n s p r o v id in g a jo in t
and s u r v iv o r o p tio n — ---------U pon a ctu a l r e t ir e m e n t ---------U pon n o r m a l r e t i r e m e n t -------L a te r o f a ctu a l r e t ir e m e n t o r
n o r m a l r e t ir e m e n t age ------60 d a y s a fte r actu a l
r e t i r e m e n t ----------------------------D ate annuity is r e c e iv e d o r
p a y m en t is m a d e —---------- ----O th er ---------------------- —

E qual,
E qual
pa ym en ts
o n e -h a lf
p a y m e n ts ,
on ly
o r o th e r
f r a c t io n
W ork­
W ork­
P la n s
P la n s
ers
ers

E qual o r
o n e -h a lf
paym en ts
P la n s

W ork­
ers

T w o -th ir d s
p a ym e n ts
o n ly

1.820. 2

60

3 6 1 .8

65

1.126. 4

11

224. 8

6

34. 3

2

71
29

7 2 2 .8
3 6 1 .5

42
8

201. 1
5 8 .7

14
17

269. 4
2 8 9 .9

38
52

209. 1
3 .9

3
2

1 7 .3
9 .0

-

27

4 9 5 .8

.

.

6

55. 2

65

51. 3

1

3 .9

9
5

1 0 3 .8
81. 1

4
1

10. 7
4 0 .0

3
3

38. 1
29. 3

P la n s

W ork­
ers

3

1

1 6 .0
-

43

9 .9

-

-

.

.

•

4 9 5 .8

27

W ork­
ers

P la n s

147

O n e -h a lf
p aym en ts
o n ly

_
71

.

1

8 .0

4 7 .0

11. 8

1 S e e fo o tn o te 1, ta b le 4.
2 T h e w o r k e r m a y e l e c t any f r a c t io n o f h is r e d u c e d annuity to b e con tin u ed to h is jo in t annuitant.
3 4 p la n s , c o v e r in g 1 6 1 ,8 0 0 w o r k e r s , s p e c ifie d a c h o ic e o f e q u a l, o n e -h a lf, o r t h r e e -fo u r t h s p a y m e n ts; and 4 p la n s ,
c o v e r in g 47, 300 w o r k e r s , s p e c ifie d a c h o ic e o f equal, o n e -h a lf, o r t w o -t h ir d s p a y m e n ts .
4 In clu d e s 1 p la n c o v e r in g 2 ,0 0 0 w o r k e r s that s p e c ifie d o n e -h a lf o r t w o -t h ir d s p a y m e n ts.
5 1 p la n , c o v e r in g 2, 600 w o r k e r s , s p e c ifie d a c h o ic e o f equ a l, o n e -h a lf, o r th r e e -fo u r t h s p a y m e n ts ; and 1 plan , c o v e r in g
1, 300 w o r k e r s , s p e c ifie d a c h o ic e o f equ a l, o n e -h a lf, o r tw o -t h ir d s p a y m e n ts .
6 In clu d e s 1 p lan c o v e r in g 2 0 ,0 0 0 w o r k e r s that s p e c ifie d any am ount, but not m o r e than t h r e e -fo u r t h s that o f the annuitant.
7 C h o ic e o f e qu a l, o n e -h a lf, o r t w o -t h ir d s p a y m e n ts.

T a b le 13.

D is trib u tio n o f s u r v iv o r op tio n s b y d e s ig n a te d co n tin gen t annuitant, w in te r 1 9 6 0 -6 1 1
(W o r k e r s in thousand s)
C on tingen t a n n u itan t2
T o ta l

P la n s

A l l p la n s p r o v id in g o p tio n a l
a n n u it ie s ____ __ _____ ____ ___ __ ____ _
J o in t and s u r v iv o r o n l y --------------------Joint and s u r v iv o r and p e r io d
c e r ta in -------------------------------------- -— —
J o in t and s u r v iv o r and c a s h
refu nd
_ _ _
A n y s u r v iv o r o p t i o n -------------------------P e r i o d c e r ta in o n l y --------------------------

W ork ers

P la n s

D ependents

S p o u se

A n yon e

T yp e o f o p tio n a v a ila b le

W orkers

P la n s

W orkers

P la n s

W orkers

148

1 .8 2 3 . 2

111

1. 234. 3

23

461. 1

14

1 2 7 .8

121

1, 5 9 8 .0

89

1 ,0 7 4 .7

18

395. 5

3 14

127. 8

18

129. 4

13

63. 8

45

6 5 .6

-

2
6
1

48. 2
44. 6
3 .0

2
6
1

48. 2
44. 6
' 3 .0

-

-

-

-

-

-

-

1 S ee fo o tn o te 1, ta b le 4.
2 O nly p e r s o n s w ith an in s u r a b le in t e r e s t , by d e fin itio n , co u ld b e d e s ig n a te d as a b e n e fic ia r y . S e e fo o tn o te 8, p a g e 4.
3 In clu d e s 1 pla n c o v e r in g 30, 200 w o r k e r s that s p e c ifie d the fo llo w in g o r d e r o f p r e c e d e n c e : S p o u s e , c h ild r e n , r e la tiv e s ,
o r e s ta te ; and 2 p la n s c o v e r in g 9 ,4 0 0 w o r k e r s that s p e c ifie d im m e d ia te fa m ily o n ly .
4 I n clu d e s 1 pla n c o v e r in g 1 0 ,0 0 0 w o r k e r s that s p e c ifie d s p o u s e o r c h ild r e n o n ly . •




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