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L .2 .1

SOUTHWEST MISSOURI STATE
COLLEGE LIBRARY
U. S. DEPOSITORY COPY
JUN 2 21964
BLS Bulletin 1394

Unfunded
Private
Pension
Pla ns

UNITED STATES D EPARTM ENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU OF LABOR STATISTICS
Ewan Clague, Commissioner

in cooperation with

U NITED STATES DEPARTM ENT OF HEALTH,

/
*0


http://fraser.stlouisfed.org/
>LFederal Reserve Bank of St. Louis

EDUCATION, AND WELFARE
Anthony J. Celebrezze, Secretary
SOCIAL SECURITY ADMINISTRATION
Robert M. Bail, Commissioner

BUREAU OF LABOR STATISTICS REGIONAL OFFICES

SAN
FRANCISCO

___
Region V — Western
630 Sansome Street
San Francisco, Calif. 94111
Tel. : YUkon 6-3111




Region IV— North Central

1365 Ontario Street
Cleveland, Ohio 44114
T e l.: 241-7900

105 West Adams Street

Region III — Southern
1371 Peachtree Street, NE.
Atlanta, Ga. 30309
T e l . : TRinity 6-3311

BLS Bulletin 1394

Unfunded
Private
Pension
Plans

U NITED STATES DEPARTM ENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU OF LABOR STATISTICS
Ewan Clague, Commissioner

in cooperation with

UNITED STATES D EPARTM ENT OF HEALTH,
EDUCATION, AND WELFARE
Anthony J. Celebrezze, Secretary
SOCIAL SECURITY ADMINISTRATION
Robert M. Ball, Commissioner
M ay 1964

For sale by the Superintendent of Documents, U.S. Government Printing O
ffice
Washington, D.C., 20402 - Price 30 cents









The principal features of unfunded private pension
plans, commonly referred to as "pay-as-you-go" plans,
are analyzed in this bulletin.
The plans* coverage ranged from 26 workers (the
minimum number required for reporting under the provi­
sions of the Welfare and Pension Plans Disclosure Act) to
more than 90, 000 workers. In total, they covered approx­
imately 1.4 million workers.
The study was conducted by the Bureau of Labor
Statistics at the request of, and with financial assistance
from, the Division of Research and Statistics of the Social
Security Administration, U.S. Department of Health, Edu­
cation, and Welfare. The cooperation and assistance of
Joseph Krislov of the Social Security Administration, who
proposed this study, is gratefully acknowledged.
The Bureau of Labor Statistics, which takes re­
sponsibility for the contents of this bulletin, is also grate­
ful for the cooperation rendered by the staff of the Office of
Labor-Management and Welfare-Pension Reports, the cus­
todian of the Department of Labor's Disclosure Act files.
This study was conducted in the Bureau's Di­
vision of Industrial and Labor Relations by Joseph W.
Bloch, Chief of the Division, under the general direction
of L. R. Linsenmayer, Assistant Commissioner for Wages
and Industrial Relations. The bulletin was prepared by
Harry L. Levin. Walter W. Kolodrubetz planned the study
and supervised the analyses of the plans and the computa­
tion of the benefit amounts. Harry E. Davis and Stanley S.
Sacks assisted in the plan analyses. The entire project
was under the supervision of Donald M. Landay.

iii




C on ten ts

Page
Introduction----------------------------------------------------------------------------------------------------------Scope and method of study-----------------------------------------------------------------------------Administration of plans______________________________________________________
Appeals____________________________________________________________________
Final decision on appeals--------------------------------------------------------------------------Amendment of the pension plan-------------------------------------------Reduction of benefits---------------------------------------------------------------------------------Suspension of benefits------------------------------------------------------------------------------Discontinuance of the pension plan-----------------------------------------------------------Basic plans----------------------------------------------------------------------------------------------------------Normal retirement______________
Benefit form ulas__________________________________________________________
Adjustment of private to Federal benefits----------------------------------------------Maximum and minimum benefits-------------------------------------------------------------Level of benefits__________________________________________________________
Prenormal retirement and vesting----------------------------------------------------------------Early retirement______________________________________________________________
Eligibility requirements__________________________________________________
"Special" early retirement--------------------------------------------------------Disability retirement-------------------------------------------------------------------------------------Eligibility requirements---------------------------------------------------------------------------Benefit form ulas---------------------------------------------------------------------------------------Level of benefits___________________________ -______________________________
Vesting provisions------------------------------------------------------------------------------------------Eligibility requirements---------------------------------------------------------------------------Benefit form ulas__________________________________________________________
Death benefits_________________________________________________________________
Survivor options______________________________________________________________
Supplementary plans-----------------------------------------------------------------------------Disability retirement-----------------------------------------------------------------------------------Eligibility requirements--------------------------------------------------------------------------Benefit form ulas---------------------------------------------------------------------------------------Level of benefits —-------------------------------------------------------------------------------------Death benefits_________________________________________________________________
Additional benefit amount_____________________________________________________

1
2
3
5
5
5
6
7
7
8
8
8
10
11
12
14
15
15
16
16
16
17
18
18
19
19
19
20
21
21
21
21
22
22
23

Tables:
1.
2.
3.
4.
5.
6.

Year of establishment of unfunded pension plans
by type of plan, spring 1962-----------------------------------------------------------------Unfunded pension plans by number of workers
covered and type of plan, spring 1962_________________________________
Benefits provided by unfunded pension plans by type
of plan, spring 1962 -----------------------------------------------------------------------------Amount of benefits paid in I960 by type of benefits
provided by unfunded pension plans, spring 1962--------------------------------Unfunded pension plans by industry and
type of plan, spring 1962_______________________________________________
Minimum age and service requirements for normal retire­
ment in unfunded basic pension plans, spring 1962___________________




v

24
24
24
25
25
26

C o n te n ts — C o n tin u e d

Page
T ab 1e s— Co ntinued
7.
8.

9.
10.
11.
12.
13.

14.
15.
16.
17.

18.

19.
20.
21.
22.

Provision for integration of primary social security or
railroad retirement benefit with basic benefit by type
of basic benefit formula, spring 1962________________________________
Percentage factors used in uniform percent formulas
and the reduction of plan benefits by either primary
social security or railroad retirement benefit, by
earnings computation utilized, spring 1962__________________________
Basic monthly normal retirement benefit for each
year of credited service by maximum years of service
allowed, spring 1962__________________________________________________
Minimum benefit provisions by type of basic benefit
formula in unfunded pension plans, spring 1962_____________________
Provision for deduction of primary social security benefit
from minimum benefit by type of minimum benefit formula
in unfunded basic pension plans, spring 1962________________________
Normal retirement benefits payable by basic unfunded
pension plans to workers earning $4, 800 per year
for 30 years of future service, spring 1962_________________________
Normal retirement benefits including primary social
security or railroad retirement benefit, payable by
unfunded basic pension plans to workers earning $4, 800
per year for 30 years of future service, spring 1962_______________
Provisions for early and disability retirement and vesting
in unfunded basic pension plans by industry, spring 1962___________
Minimum age and service requirements for early re­
tirement in unfunded basic pension plans, spring 1962_____________
Minimum age and service requirements for disability
retirement in unfunded basic pension plans, spring 1962___________
Disability retirement benefits payable by unfunded pension
plans to workers retiring at age 50 and earning $4, 800 per
year for 20 years of future service by type of plan,
spring 1962____________________________________________________________
Disability retirement benefits, including social security
or railroad retirement disability benefit, payable to
workers retiring at age 50 and earning $ 4 ,800 per
year for 20 years of future service under unfunded
pension plans, by type of plan, spring 1962__________________________
Minimum age and service requirements for vesting
in unfunded basic pension plans, spring 1962________________________
Type of death benefit provided by unfunded basic
pension plans, by industry, spring 1962_____________________________
Types of benefit provisions in unfunded supplementary
pension plans by industry, spring 1962_______________________________
Minimum age and service requirements for disability
retirement in unfunded supplementary pension
plans, spring 1962_____________________________________________________




vi

26

27
28
28
28
29

29
30
30
31

31

32
32
33
33
34

Unfunded Private Pension Plans
Introduction
Most unfunded private pension plans were established after World War II,
when the pension movement as a whole grew rapidly (table 1). By the end of I960,
23 million workers (active and retired) belonged to private pension and deferred
profit-sharing plans. They included 1. 4 million workers covered by the 851 un­
funded pension plans that filed financial reports for I960 under the Welfare and
Pension Plans Disclosure Act (table 2). 1 However, less than half a million of these
workers were covered by the 677 unfunded basic plans providing old-age pensions.
The other 900,000 workers belonged to unfunded supplementary plans that provided
long-term disability, death, or other benefits (table 3); virtually all members
of such plans also belonged to funded plans providing old-age pensions.
The aggregate amount of benefits paid in I960 by all 677 basic plans was
$51 million (table 4) or 3 percent of the total benefit payments made by all re­
tirement plans, funded or unfunded. An additional $64 million was paid by
174 supplementary plans.
The types and amounts of benefits provided by basic unfunded plans were
generally similar to those provided by funded plans.
Direct comparisons are
difficult because of the greater concentration of unfunded plans in certain indus­
tries, the absence of employee contributions to unfunded plans, the absence of
multiemployer plans, etc. Nonetheless, the differences are, on the whole, not
significantly large, with one important, but expected, exception. The prevalence
of vesting 1 in unfunded plans is so much lower than in funded plans that it must
2
be attributed chiefly to the difference in financing.
The essential difference between funded and unfunded plans lies in the
method of paying for benefits. The benefits of unfunded plans are paid, like wages,
directly from an employer’ s general assets, often as a payroll item. On the other
hand, the benefits of funded plans are paid from special funds which are admin­
istered by trustees or insurance companies, and are irretrievably segregated from
the general assets of the firm. Funded plans afford the worker greater intrinsic
assurance that benefits will be paid when due because once they are fully funded,
payment does not depend entirely, as it does in an unfunded plan, upon the em­
ployer’ s willingness and ability to fulfill the terms of the plan. 3
From the employer's viewpoint, too, funded basic plans have some ad­
vantages.
Employers may currently reduce their Federal income taxes by ob­
taining tax credits as they make contributions, instead of waiting until the pensions
are paid. Furthermore, the earnings of the pension trust fund, which reduce future
contributions, are exempt from income taxes.

1 The data for unfunded plans exclude small plans not required to report (i. e . , those covering fewer than
26 workers and those sponsored by nonprofit organizations). On the other hand, the data for all plans, as estimated
by the Social Security Administration, include estimates for all retirement plans, including nonprofit plans, those not
reporting under the act, and those financed through profit sharing.
2 A vesting provision guarantees the worker who has met specific requirements, a right or equity in his accrued
pension based on all or part of the employer's contributions should his employment be terminated before he becomes
eligible for regular retirement benefits.
For additional information on vesting provisions see Pension Plans Under
Collective Bargaining, Late 1958 (BLS Bulletin 1259, 1959).
3 It should be noted that the benefits for past service promised by many funded plans may not be fully funded;
however, insofar as they are funded, they are presumably more secure than they would be under an unfunded plan.




1

2

Owners actively engaged in operating a business, and high paid employees
whom the owners wish to attract and retain, may also prefer a funded plan because
of its tax advantages to them and their families. They may, for example, reduce
their personal income taxes by electing to take a lump-sum payment instead of
an annuity, to obtain the favorable capital gains treatment granted such pay­
ments only if made by a funded plan. Moreover, they and their heirs are relieved
of gift and estate taxes for which they might be liable under an unfunded plan.
In addition, the first $5,000 of death benefits are excluded from the taxable income
of the beneficiaries.

The chief disadvantage of a funded basic pension plan is that contributions
to a separate fund divert assets (chiefly cash) from the business.
Where the
earnings of the tax-free pension trust fund are substantially lower than the earn­
ings of the business after payment of taxes (or the net cost, after taxes, of borrow­
ing the funds needed to replace the contributions), this disadvantage may be great.
Another drawback, in the eyes of some employers, is that a funded plan must meet
the nondiscrimination test and other requirements of the Internal Revenue Service.

The relative advantages and disadvantages to employers of funding sup­
plementary pension plans are not as great as those of funding a basic plan because
supplementary plans cost far less. Moreover, some companies consider it best
to treat certain benefits, such as those payable for deaths prior to retirement,
as current expense items rather than as deferred charges. Furthermore, because
some benefits are payable only temporarily, the advantages of funding are short
lived; the possibility of certain other benefits becoming payable is so unpredictable
that such benefits are difficult to fund appropriately.

Scope and Method of Study
Basic plans, as the term is used in this study, provide old-age retire­
ment benefits (ordinarily payable at age 65) and usually also provide other bene­
fits, such as early and disability retirement, and death benefits (table 3). The
remaining plans are termed supplementary plans because they provide retirement
and death benefits that supplement the old-age retirement benefits provided in vir­
tually all instances by funded pension plans.
The study is based on a stratified random sample of the reports to the
U .S. Department of Labor required under the provisions of the Welfare and Pen­
sion Plans Disclosure Act. The sample accounted for 30 percent of the reports
and over 92 percent of the workers under the unfunded plans reporting to the
Department of Labor. It was selected from plans filing a 1959 financial report
(Form D -2).
Coverage and financial data were adjusted to reflect the I960 fi­
nancial reports, and data on benefits were obtained from the plan descriptions
(Form D -l) on file in the spring of 1962.

All plans covering 1, 000 workers or more were included in the study.
Plans covering 26 to 1, 000 workers were stratified by both industry division and
size (number of workers) so that data could be presented for industry divisions
(1-digit SIC codes) and for some major industry groups (2-digit SIC codes) in
manufacturing. These designations were based on the 1957 edition of the Standard
Industrial Classification Manual prepared by the Bureau of the Budget.



3
Data for each sample report were weighted in accordance with the prob­
ability of selection of that report. For example, where 1 report out of 10 was
selected in an industry division-size class, it was considered as representing
itself as well as 9 other plans; i. e. , it was given a weight of 10.
No attempt was made to adjust the totals so derived to the total number
of plans or the financial data previously reported by the Department’ s Office
of Welfare and Pension Plans (OWPP) 4 for all unfunded retirement plans on file,
because the latter were found to include some plans outside the scope of the study.
OWPP data included, for example, some reports from plans with less than 26 par­
ticipants, which are outside the reporting requirements of the disclosure act, re­
ports from plans with separately maintained pension funds (funded plans), and
plans not providing retirement benefits or benefits designed to supplement retire­
ment benefits.
Administration of Plans
Less than half the plans were under collective bargaining but, because
they included most of the larger plans, they covered a large majority of the
workers; 7 out of 10 workers covered by unfunded plans belonged to plans that
were collectively bargained as compared to 6 out of 10 workers under funded
plans. 5 This was largely because over half the workers in unfunded bargained
plans were covered by several large supplementary plans in the highly organized
telephone industry.

Basic plan_____

Supplementary plan

Plans

Workers 1
(thousands)

Plans

Workers 1
(thousands)

A ll plans--------------------------------------------------- --

677

462

174

904

Plans under collective bargaining-------—
Plans not under collective bargaining-------

310
367

192
270

81
93

751
153

Bargaining status

1

See footnote 1, table 1.

NOTE:

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

All but a tenth of the 200, 000 workers covered by basic plans under
collective bargaining were represented by national or international unions. 6 The
rest were represented by single-firm independent unions and, in a few cases,
by local unions directly affiliated with the AFL-CIO. Only four unions represented
over 10, 000 workers— the Steelworkers, Mine Workers District 50, Electrical
Workers (IBEW), and Teamsters— and none covered over 20,000. The Commu­
nications Workers, which represents most workers in the telephone industry,
represented more workers belonging to supplementary plans than any other union.

4 Merged in September 1963 into the Office of Labor-Management and Welfare-Pension Reports under the
Labor-Management Services Administration.
5 Based on data compiled for Health and Insurance, and Pension Plan Coverage in Union Contracts, Late 1960
(BLS Report 228, 1962), p. 2.
6 The number of workers represented by unions is somewhat overstated because many plans negotiated by unions
also cover workers outside the bargaining units represented by the unions.




4
The national and international unions participating in unfunded basic pension plans
in the spring of 1962 are shown in the following tabulation: 7
1 0 .0 0 0

and under 2 0 , 0 0 0 workers

5 , 0 0 0 and under 10, 0 0 0 workers— Continued

Electrical (IBEW)
Mine District 50 (UMW) (Ind. )
Steelworkers (USA)
Teamsters (TCWH) (Ind.)

Newspaper Guild (ANG)
Packinghouse (UPWA)
Papermakers (UPP)
Printing Pressmen (IPPA)

5 .0 0 0 and under 1 0,0 0 0 workers

2 ,5 0 0 and under 5 ,0 0 0 workers

Cement (CLGW)
Communi cations (CWA)
Electrical (IUE)
Longshoremen (ILA)
Machinists (IAM)

Retail Clerks (RCIA)
Rubber (URW)
Street (SERMCE)
Textile (TWUA)
Textile (UTWA)

Three-fifths of the plans were in manufacturing industries (table 5), par­
ticularly chemicals, textiles, and other nondurable goods industries. Among non­
manufacturing industries, worker coverage was concentrated in the telephone and
railroad industries.
Virtually all plans were administered by (i. e. , ultimate financial re­
sponsibility resided in) the employer or an employer-appointed board. 8 However,
as shown in the tabulation below, 50 plans, with about 28, 000 workers, had a
joint union-management committee to handle appeals. Another 20 plans covering
15, 000 workers had a joint board that was responsible for only a segment of the
administration of the plan. Only one plan was jointly administered by an employer
and a union.
________Type of plan
Total

Basic

Supplementary

Type of administrator

Plans

Workers 1
(thousands)

Plans

Workers *
(thousands)

Plans

Workers 1
(thousands)

A ll plan s------------------------------------------------------------------

851

1,367

677

462

174

904

Employer or employer-appointed b o a r d ---------------Without supplementary joint board or
committee -----------------------------------------------------With joint appeals committee appointed
by e m p lo y e r---------------------------------------------------With joint board having limited administrative
responsibility appointed by e m p lo y e r-----------Joint board (union and employer appointed)----------

850

1,365

676

461

174

904

780

1, 322

608

420

172

902

50

28

49

27

1

1

20
1

15

19

14

1

1

2

1

2

^ See footnote 1, table 1.
NOTE: Because of rounding, sums of individual items may not equal totals.

7 A ll unions are affiliated with the AFL—CIO except those followed by (Ind. ).
Excluded from this list are
unions representing fewer than 2, 500 workers under unfunded pension plans, single firm independent unions, and Federal
labor and industrial unions directly affiliated with the AFL—CIO.
8 Plans were directed to identify their administrator according to the following definition in the Welfare and
Pension Plans Disclosure Act: "(1 ) The person or persons designated by the terms of the plan or the collective bar­
gaining agreement with responsibility for the ultimate control, disposition, or management of the money received
or contributed; or ( 2 ) 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. M




5

Appeals. All plans made provision for appeal when a claim for benefits
was denied.
Three-fourths of the plans required that appeals be made to the
employer or his designated representative. Nearly all the remaining plans pro­
vided a joint union-management board to rule on appeals.
Type of plan
Total
Party to receive initial
appeal for benefits

Plans

Basic

Workers *
(thousands)

Supplementary

Plans

Workers1
(thousands)

Plans

Workers *
(thousands)

A ll plans-----------

851

1 ,3 6 7

677

462

174

904

Employer----------------------------------------------------------------Joint union-management b o a rd ---------------------------Specific cases appealed to impartial umpire
or arbitrator--------------------------------------------------------Tripartite appeals board--------------------------------------Joint uni on-management board for minimums;
employer for disability---------------------

648
187

1 ,13 5
145

491
173

361
81

157
14

774
63

14
1

71
15

12

5
15

2

66

-

-

1

1

*

1

1

1

_

_

See footnote 1, table 1.

NOTE:

Because of rounding, sums of individual i

may not equal totals.

Final Decision on Appeals.
The final decision regarding any claim for
benefits was made by the employer in nearly all the plans where appeals were
initially made to the employer or a board designated by him.
However, most
of the plans with joint appeal boards provided for the appointment of an impartial
umpire or arbitrator if the union and management members were deadlocked.
This procedure was used by one-fifth of the plans.
Type of plan
Total

Basic

Supplementary

Final determination of appeal

Plans

Workers1
(thousands)

Plans

Workers 1
(thousands)

Plans

A ll plan s----------------------------------------------------------------- -

851

1 ,3 6 7

677

462

174

904

Employer----------------------------------------------------------------- Joint union-management board only (without
provision for resolving disagreements)----------------If union and employer cannot agree, impartial
umpire or arbitrator decides---------------------------------Tripartite appeals b o a r d ----------------------------------------

632

1,091

476

352

156

739

52

32

47

29

5

4

166

228
15

153

66

1

15

2 13
-

161
-

1

Workers *
(thousands)

See footnote 1, table 1.
Includes 1 plan, covering 3 5 ,0 0 0 nonunion workers, who may appeal to an impartial medical board and
1 plan in which appeals relating to disability benefits are decided by the employer.
1

2

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

Amendment of the Pension Plan. In 2 out of 3 plans, covering 2 out
of 5 workers, the employer explicitly reserved the right to amend the plan at his
sole discretion. A somewhat larger number of workers were covered by plans
that required union consent before the worker's benefits or privileges could be
diminished. In addition, in a tenth of the plans the employer also had the right



6

to amend the plan but agreed to make no change during the period of the collec­
tive bargaining agreement. A fifth of the plans could only be amended by collec­
tive bargaining.

____________ Type of plan___________
Total_______ ______ Basic

Authorization to amend plan

Plans

Supplementary

Workers 1
Workers 1
(thousands) Plans (thousands) Plans

Workers1
(thousands)

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

851

1 ,3 6 7

677

462

174

904

At company's discretion-------------------- ----------- ------------------At company's discretion, but no change during period
of collective bargaining agreement-----------------------------By collective bargaining o n ly ----------------------------------------Information not available-------------------------------------------------

563

574

445

319

118

255

103
175

662
124
7

78
144

53
84
7

2 25

609
40

10

10

3 31
-

-

See footnote 1, table 1.
Includes 18 plans, covering 5 2 0 ,0 0 0 workers, that required union consent before benefits or privileges
could be diminished.
3 Includes 1 plan, covering 1 ,0 0 0 workers, in which only the minimum benefit cannot be reduced other
than by collective bargaining; disability benefits may be amended at company's discretion.
1

2

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

Reduction of Benefits. In more than half of the plans, affecting two-fifths
of the workers, the company reserved the right to reduce the amounts of plan
benefits.
Almost all remaining plans prohibited a reduction or restricted its
timing.
Although the majority of these plans prohibited a reduction of benefits
during the period of the collective bargaining agreement and another two-fifths of
these plans prohibited a reduction at any time, almost two-fifths of the workers
belonged to plans that were restrained from reducing benefits without the union*s
consent.

Type of plan
Basic

Total

Limitations on reduction of benefits

Plans

Supplementary

Workers 1
Workers1
(thousands) Plans (thousands) Plans

Workers 1
(thousands)

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

851

1 ,3 6 7

677

462

174

904

None—may be reduced at company's discretion---------Benefits for workers already retired cannot be reduced
by terms of collective bargaining agreement-----------Benefits cannot be reduced (not under collective
bargaining)--------------------------------------------------------------------Benefits cannot be reduced unless union agrees-----------Benefits cannot be reduced during period of collective
bargaining agreement--------------------------------------------------Benefits cannot be reduced prior to a specific d a te ----Information not available-----------------------------------------------

477

533

3 77

297

100

235

53

27

38

21

15

6

75
19

89
529

58

21

1

9

17
18

67
520

210

169
10

188
5

11

9

10

104
3
7

2 22

6

65
7
3

1
1

See footnote 1, table 1.
Includes 1 plan, covering 1 ,0 0 0 workers, in which only minimum benefits cannot be reduced at the
company's discretion during the life of the agreement.
1
2

NOTE:

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




7

Suspension of Benefits. Most unfunded plans, like most single employer
funded plans, place no restriction on a pensioner^ employment. However, about
a fourth of the plans reserved the right to suspend benefits, usually for spec­
ified reasons, such as engaging in employment prejudicial to the company*s in­
terest. An eighth of the supplementary plans provided for suspension of benefits.
Type of plan
Total
Conditions for suspension of
individual's benefits

Plans

Suppl e m e nt ary

Basic

Workers *
(thousands)

Plans

Workers 1
(thousands)

Workers 1
(thousands)

Plans

A ll plan s---------------------------------------------------------------

851

1,367

677

462

174

904

Not provided--------------------------------------------------------At company's discretion-------------------------------------Employment prejudicial to company interest----Employed by competitor-------------------------------------Any em ploym ent------------------------------------------------Information not available------------------------------------

641
38
89

1,08 9
23
177
75

489
28
83
62

192

152

20

10

174
73

6

897
3
3

68
10

(2 )
3

5

10

(2 )
3

5

6

1

-

-

-

-

See footnote 1, table 1.
Fewer than 500 workers.

2

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

Discontinuance of the Pension Plan. Most unfunded plans,, like most
funded plans, could be discontinued at the discretion of the company. 9 Two-thirds
of the unfunded plans covering four-fifths of the workers had such a provision.
Virtually all of the remaining plans prohibited discontinuance during the term
of a collective bargaining agreement. These plans comprised more than two-thirds
of the plans under agreements, but covered less than 30 percent of the workers.

Type of plan
Total

Limitations on discontinuance of plan

Plans

Basic

Workers 1
(thousands)

Plans

Supplementary

Workers *
(thousands)

Plans

Workers *
(thousands)

A ll p lan s---------------------------------------------------------------

851

1,367

677

462

174

904

At company's discretion-------------------------------------Plan cannot be discontinued during term of
collective bargaining agreement---------------------Information not available------------------------------------

571

1,093

436

321

135

772

270

267
7

231

135
7

239

132

10

10

_

_

* See footnote 1, table 1.

2

Includes 1 plan covering 1 ,0 0 0 workers in which only minimum benefits cannot be discontinued at
the company's discretion during the life of the agreement.
NOTE: Because of rounding, sums of individual items may not equal totals.

9
To meet the requirements of the Internal Revenue Code, all funded plans provide that at termination, accrued
benefits are vested by plan members; only if the assets in the fund exceed the members' vested benefits can the em­
ployer recover any of his contributions. When an unfunded plan is terminated, however, the employer "recovers" the
cost of all pensions not yet paid, including, if he wishes, those of workers previously retired.




8

Basic Plans
Four out of five basic plans reporting their date of establishment com­
menced operating in the period 1945—
59.
(See table 1.) However, due to the
establishment of a few large plans during the early 1900* s, about a fifth of the
workers belonged to plans that had been in operation for more than half a century.
Basic plans generally covered fewer workers than supplementary plans.
Seven basic plans, covering 10,000 or more workers each, accounted for 180,000
workers. An additional 67 plans covered between 1,000 and 10,000 workers each.
In contrast, about three-fourths of the plans covered fewer than 300 workers each.
About three-fifths of the workers under basic plans were employed in
nonmanufacturing industries, chiefly in railroad transportation (144,000) and trade
(52,000) (table 5). Among manufacturing industries, two-thirds of the plans were
in nondurable goods industries. About half of the coverage among durable goods
industries was in primary metals (41,000).
Normal Retirement
In over 6 out of 7 basic plans, covering 9 out of 10 workers, the normal
retirement age 1 was the same as in nearly all private funded plans and in the
0
Social Security Act, i. e. , age 65 (table 6). Most plans also required the fulfill­
ment of 10 years or more of service with the employer. *1 Three out of five work­
1
ers belonged to plans requiring 15 or 20 years of service. Only 1 out of 7 plans
covering about 10 percent of the workers had no service requirement or required
less than 10 years of service.
Forty-nine plans provided a lower retirement age for women than for
men. Most of these plans, as shown by the following tabulation, allowed women
to retire on full benefits at 60.
Normal retirement age
Men

Women

A ll plans with earlier normal retirement
age for women 1 -------------------61
65
60
55

------------------------------------------------------------------------5 5 -------------------

70
68

65
65
60
1

2

Plans

Workers
(thousands)

49

103

1

5
37
5
1

7
(2 )
78
16
1

See footnote 1, table 8 .
Fewer than 500 workers.

NOTE:

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

Benefit Formulas.
Three-fifths of the plans had only one formula for
determining normal retirement benefits.
The other plans, covering two-fifths
of the workers, had two formulas; (1) A basic formula, by which benefits are
The normal retirement age is usually defined as the earliest age at which a worker, having otherwise quali­
fied, may retire at his own volition and receive immediately the full amount of benefits to which he is entitled.
11
The term "service" as used in this bulletin refers to the years of employment credited toward qualification
for benefits or used in computing benefits, regardless of the definition of service in the plan. In the plan documents,
it may be referred to as "continuous service, " "credited service, " "consecutive years of service, " and, unlike our
definition, may exclude service before the worker was eligible to belong to the plan. Only 38 plans, covering 6 5 ,0 0 0
workers, specified a minimum age or service requirement for participation.




9
usually computed, and (2) an alternate or minimum formula, guaranteeing certain
benefits for specified service and/or earnings, used for workers with long serv­
ice, low earnings, or both. Nine out of 10 plans (349) without minimum formulas,
moreover, implicitly established a guaranteed base in their basic formulas by
specifying minimum service requirements for eligibility for normal retirement
benefits.
For example, a plan requiring 10' years of service that provides a
benefit of 1 percent of average monthly earnings for each year of service, has
an implicit minimum benefit of 10 percent of average monthly earnings.
The basic benefits payable by 3 out of 10 plans were based solely on
service, by 1 out of 15 solely on earnings, and 1 out of 2 on both service and
earnings, as shown by the following tabulation: 1
2
Plans

Workers *
(thousands)

A ll plans providing for normal retirement

677

462

Benefits vary by earnings and service---------Benefits vary by service alone---------------------Uniform benefit for specified service---------Benefits vary by earnings alone-------------------Other-------------------------------------------------------------Information not a v a ila b le ----------------------------

346
61
46
14

349
84
9
7
13

10

1

Type of basic benefit formula

*

200

See footnote 1, table 1.

NOTE:

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

The majority of the plans in which benefits varied by earnings and serv­
ice or by earnings alone considered earnings for all the years in which the worker
belonged to the plan (i. e. , career, average, or total earnings). However, more
than a fourth of the plans based their benefits on earnings in selected years—
usually on average earnings in the last 5 or 10 years.
Earnings base
A ll plans in which benefits vary by earnings
and service, or earnings alone 1 --------------------Plans using earnings in all years----------------------Each year’ s earnings-----------------------------------Total earnings---------------------------------------------Average earnings-----------------------------------------Plans using earnings in selected y e a r s ------------Last 10 years' earnings-------------------------------High 10 consecutive years' earnings----------High 5 of last 10 years' earnings----------------Last 5 years' earnings---------------------------------High 5 consecutive years’ earnings------------Other-------------------------------------------------------------------

Plans

Workers
(thousands)

392

356

268

212

2 233

5
30
109
4 53
1

9
44
b 2
5 15

207
(3)
5
141
100
1

23
12

4
3

*
^
benefits
3

See footnote 1, table 8 .
Includes some plans, covering fewer than 500 workers, that computed
on the last year's earnings.
Fewer than 500 workers.
4 Includes plans, covering about 1,00 0 workers, that computed benefits
on the last 15 years' earnings.
5 Includes plans, covering about 3 ,00 0 workers, that provided a lump­
sum benefit based on earnings and service and other plans, covering fewer than
500 workers, that provided benefits at the discretion of the board of directors.
NOTE:

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

12
The term "earnings" as used in this bulletin refers to that part of the cash income, derived from employ­
ment with a company, that is used in computing the worker's pension benefit. Such earnings may be termed "total
earnings," "career earnings," "terminal earnings, " "credited earnings," "average earnings," e tc ., and may exclude
certain earnings, such as the first $4, 800 earned each year, or overtime and other premium pay.




10

Under another type of formula, a uniform amount was provided all quali­
fied pensioners regardless of the amount of service or earnings. The attainment
of age 65 and from 10 to 25 years of service were sufficient to qualify for this
uniform benefit. Although 61 plans made such a benefit available, they covered
only a small number of workers. The benefit amounts varied considerably from
plan to plan; ranging from $40 to $ 300 a month.
Adjustment of Private to Federal Benefits.
While the old-age benefits
provided under the Social Security and the Railroad Retirement Acts are con­
sidered in fixing private plan benefits, they were directly incorporated into the
basic normal retirement benefit formulas of about 2 out of 5 unfunded basic plans
which covered almost 2 out of 3 workers.
Private plan benefit formulas are "integrated" with the public programs
in three ways:
1.
Under the offset method, all or part of the Federal benefits payable
to the worker are "offset" against (i. e. , deducted from) the amount calcu­
lated from the benefit formula under the private plan. This reduction usually
applies only to the Federal benefit for the worker himself, i. e. , the benefits
stemming from his marital status (wife* s benefits) are excluded.
2.
Under the step rate method, a larger percentage factor is applied to
earnings in excess of a specified amount (almost always the maximum earnings
considered in computing social security or railroad retirement benefits at the
time the formula was adopted or amended)1 than to those below that amount.
3
3.
Under the excess earnings method, only earnings in excess of a
specified amount (usually also the maximum considered in computing the
Federal benefits) are used to compute private benefits. This third method,
where zero percent is applied to earnings below a certain amount, is of
course, a variant of the second.
The prevalence of the three integration methods among basic plans was
as follows:

Integration provision

Plans,

462

A ll basic p la n s ------------------------------------------—
No integration provision------------------------------ --------Integrated p la n s ----------------------------------------—
Offset m e th o d ---------------------------------------Step rate method-------------------------------------Excess earnings method — -------------------------------

Workers 1
(thousands)

2 401

12

168
294
194
50
50

See footnote 1, table 1.
Includes 10 plans, covering 1 ,0 0 0 workers, for which no information
was available.
1

2

NOTE: Because of

rounding, sums of individual items may not equal

totals.

13
The maximum ceiling placed on earnings has been raised from $ 3 ,0 0 0 in 1935 to $3, 600 in 1951, to $4, 200
in 1955, and to $ 4 ,8 0 0 in 1959; cf. Social Security Act, sec. 215 (e) (1).
Creditable railroad earnings under the
Railroad Retirement Act were raised from $ 3 ,6 0 0 to $4, 200 in 1954, to $4, 800 in 1959, and to $ 5 ,4 0 0 in 1963.




11

The prevalence of integration provisions depended largely on the factors
used to determine benefits.
Plans not basing their basic benefits on earnings
were rarely explicitly integrated with the Government programs.
On the other
hand, most plans with formulas based on earnings integrated their benefits
either by making deductions or by using 2 percentage factors (table 7).
Over­
all, about 3 out of 10 plans, covering 2 out of 5 workers, had offset provisions,
most commonly deducting the entire primary social security and railroad re­
tirement benefits.
About two-thirds of the workers belonging to integrated plans were in
plans that used the offset method.
The largest group of these plans deducted
one-half the primary social security benefit. A slightly smaller number of plans
covering more than twice as many workers deducted the entire social security
benefits, presumably on the theory that since the employer pays only half of
social security taxes, he can claim credit for only half the benefits.
Other
plans followed the steel industry practice of deducting $85 a month (the maxi­
mum primary benefit when the steel industry plans were established) or $80 a
month, so that all subsequent increases in social security benefits would go
to the pensioners. 1
4
In contrast to the offset method, which was used by plans of all ex­
cept the flat benefit type, the percentage factors and excluded earnings methods
of integration were limited to plans basing benefits on both service and earnings.
Two plans which covered two-thirds of the workers belonging to plans using the
first method provided, for each year of service, a benefit of 0. 75 percent of
the first $250 of monthly earnings and 1.5 percent of the balance. For workers
earning over $ 375 monthly, these factors determine higher benefits than 1 per­
cent of all earnings for each year of service— the factor most commonly used by
plans with a single factor and no deductions (table 8).
The benefits of most workers in plans using the excluded earnings
method, which was found only in the railroad industry, were based on monthly
earnings in excess of $ 350— the maximum considered under the Railroad Re­
tirement Act when the provision was adopted or revised by the plans.
One percent was the most prevalent factor in plans that used a single
percentage factor to compute benefit amounts. Among plans of this type, whose
basic benefits varied by earnings, more than half integrated such benefits with
primary social security or railroad retirement benefits.
Of these, plans cov­
ering over half the workers reduced their benefits by all primary Federal benefits.
Eighty-five percent of the plans that based their basic benefits solely on
service did not offset Federal benefits. They ranged from $1 a month to over
$4 a month for each year of service— most frequently $2 a month (table 9).
Maximum and Minimum Benefits. A maximum benefit was specified in
about half of all basic benefit formulas.
Three-eighths of these plans estab­
lished a uniform monthly benefit amount that could not be exceeded regardless
of earnings or length of service.
They included 61 plans providing a uniform
benefit for all workers with at least a specified amount of service.
Another
three-eighths of the plans covering half as many workers established a maxi­
mum benefit by not crediting service in excess of a specified amount— usually
30 to 35 years.
In addition, a few large plans set maximum benefits varying
by years of service.
In order to increase pensions by $5 a month, effective Jan. 1, 1960, funded plans in the steel industry
reduced from $85 to $80 the amount deducted for primary social security benefits from plan benefits computed by
the basic benefit formula.




12

Plans

Workers *
(thousands)

A ll plans providing normal retirement benefits-----

677

462

Without maximum benefit-------------------------------------With maximum b en efit------------------------------------------Uniform maximum regardless of service
or earnings------ --------------------------------------------------Limits on length of service credited-----------------Uniform percent of earnings regardless
of s e r v ic e --------------------------------------------------------Maximum graduated by length of serv ice--------Other-------------------------------------------------------------------Information not a v a ila b le -------------- ----------------------

287
380

251

139
138

87
42

66

18
19

16
58
9

10

1

Maximum benefit provision

1

211

See footnote 1, table 1.

NOTE:

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

A minimum benefit determined by a formula different than that used to
compute the basic benefit was provided by two-fifths of the unfunded plans cov­
ering two-fifths of the workers. Most minimum benefit provisions were one of
two types: (l) A uniform benefit for each year of service, and (Z) a uniform
benefit for workers with a specified amount of service. The first type was pro­
vided by over half the plans with minimums and covered three-fifths of the
workers (table 10).
Minimum benefit formulas, unlike basic formulas, were seldom inte­
grated with Federal benefits.
Social security benefits, for example, were de­
ducted from the minimum benefit amount by only Z5 plans.
Twenty subtracted
all the primary social security benefit and five subtracted half of such benefit
(table 11).
Level of Benefits.
To ascertain the level of normal retirement bene­
fits relative to previous earnings and service, hypothetical benefits payable by
each plan were computed under the following assumptions: 1
5
1.

Retirement at age 65.

Z.

Thirty years of credited service.

3.
Annual earnings of $ 4 ,8 0 0 . (Since this earnings level was assumed
to be constant throughout the worker1 s career, an important difference be­
tween plans basing benefits on career earnings and those using terminal earn­
ings was not taken into account. )
4.
Maximum primary social security benefit of $ 1Z7 a month, or,
where applicable, the maximum railroad retirement benefit, for 30 years'
service, of $ Z51 a month.

15 The computations were based on the formula for current service.
However, the amounts currently payable
to eligible workers are often less because they are based, at least in part, on benefit formulas for past service. See
Normal Retirement, Early and Disability Retirement, Fall 1959 (BLS Bulletin 1284, 1960), p. 5.
The F ed era l

benefits were those in effect in 1962, when the information on private plan benefits was obtained.




13

No benefits were payable under the foregoing assumptions by 48 plans
covering 71,000 railroad workers and 7,000 others— about 1 out of 6 workers
belonging to the 618 plans for which plan benefits could be calculated (table 12).
These plans include 23 out of 28 railroad plans covering almost half the work­
ers belonging to plans in that industry. 1
6 These plans were obviously designed
to pay benefits only to workers with higher earnings or longer service than those
of the hypothetical pensioner who is expected to receive $251 a month under the
Railroad Retirement Act.
They also included plans in other industries where
workers typically earn less than $4,800 a year. Plans with offset formulas may
pay significant benefits to workers with low earnings even though they do not pay
any benefits to higher paid workers receiving maximum social security benefits.
Nearly three-fourths of the private plans outside the railroad industry
provided, under the assumed conditions, benefits that ranged between $50 and
$150 a month and averaged about $89 a month. 1
7 Because plans covering half
the workers belonging to plans in the railroad industry, as previously noted, pay
no benefit under the assumed conditions and because the rest pay only small
benefits averaging less than $ 20 a month, the average railroad plan benefit was
$ 10 a month.
When all plans are considered, benefit amounts (exclusive of pri­
mary social security or railroad retirement benefits) ranged upwards to more
than $250 a month (table 12).
The average plan benefit amount was $64.40 a
month or about one-sixth the worker* s previous average gross monthly earn­
ings.
Plans with only 1 percent of the workers paid at least 50 percent of
preretirement earnings.
The total pension benefits (private plus public benefits) of retired rail­
road workers were usually greater than that of pensioners from other industries
because private plan benefits rarely cover the difference between social security
and railroad retirement benefits.
Only about 1 out of 5 nonrailroad workers
belong to unfunded plans that provide as large a benefit, including $ 127 for
maximum primary social security benefits, as railroad workers receive from
the Government plan alone (i. e. , $251 a month). As a result, the average com­
bined benefits were nearly two-thirds of preretirement earnings for railroad men
and somewhat more than half for other pensioners.
Under these assumptions, total monthly retirement income (private plan
benefit plus Federal benefits) payable to the hypothetical pensioner covered by
the plans whose benefits were computable, ranged from $ 127— his social se­
curity benefit— upward to more than $400 a month (table 13). No private bene­
fits were payable by plans which offset the entire Federal benefit, because the
Federal benefits always equaled or exceeded the total benefit determined by the
plans* benefit formulas.
The average normal retirement benefit, 1 including maximum primary
8
social security and railroad retirement benefits, was $230. 10 a month— nearly
three-fifths of the hypothetical worker* s gross preretirement earnings. 1 For
9

^ Except for some small plans that based their benefits solely on earnings in excess of $400 a month, these
plans offset the entire Federal benefit.
17 Excludes 59 plans for which no benefit could be computed.
18 Arithmetic mean of normal retirement benefits, including social security or railroad retirement benefits,
weighted by the number of workers covered.
Maximum primary social security and railroad retirement benefits are 3 1 .7 5 and 6 2 .7 5 percent, respectively,
of average annual earnings of $4, 800.




14

workers eligible for social security, the weighted average was $215.90 or 54 per­
cent of the assumed preretirement earnings, while workers eligible for railroad
retirement received an average of $261, or almost two-thirds.20

All
plans
Number of unfunded plans for which benefits were computed* —
Average monthly normal retirement benefits for workers with
constant earnings of $4, 800 per year and 30 years of
credited service: 2
Including primary social security or railroad
retirement benefit ^ -------------------------------------------------------------Percent of earnings-------------------------------------------------------------Excluding primary social security or railroad
retirement b e n e fits---------------------------------------------------------------Percent of earnings--------------------------------------------------------------

618

Railroad
plans
28

Other
plans
590

$ 2 3 0 .10
5 7 .5

$ 26 1 .00
6 5 .2

$215. 90
5 4 .0

$64. 40
16.1

$ 1 0 .0 0
2 .5

$88. 90
2 2 .2

1 See footnote 1, table 8.
2 Arithmetic mean of plan benefits computed from future service benefit formulas weighted
by number of workers covered.
3 Includes primary social security benefit of $127 or railroad retirement benefit of $251.

Since Federal benefits are not subject to the personal income tax and
since personal exemptions of persons over 65 are twice those of persons under
65, their after-tax postretirement incomes would be an even larger fraction of
their after-tax preretirement incomes.
For some railroad workers, their net
incomes would be greater after retiring than when they were working.
Prenormal Retirement and Vesting
About 80 percent of the unfunded basic plans, covering 95 percent of the
workers, provided monthly retirement benefits to qualified workers retiring or
terminating their employment before the normal retirement age, i. e. , early
and/or disability retirement and vesting.
(See table 4 .) An immediate benefit
was permitted under early and disability retirement provisions, while all but one
plan, with a vesting provision, deferred payment to the normal retirement age. 21
An early retirement provision was included in more than half the basic
plans (358) covering three-fifths of the workers (table 14).
Fifteen of these
plans also contained a "sp ecial" early retirement provision that permitted the
employer to compel early retirement.
Inasmuch as the worker1s retirement
was involuntary, he was afforded a larger benefit than the regular early re­
tirement benefit. 2
2

20 The foregoing considers only benefits provided single men. If wives apply for benefits at age 65, a married
couple would, under the assumed conditions, receive an additional $63. 50 under the Social Security Act and $69. 90
under the Railroad Retirement Act.
21 "A n early retirement provision, " as defined in this as in other BLS studies, refers to a provision that permits
workers meeting certain age and/or service requirements to retire before attaining the normal retirement age and
receive immediate benefits. It differs from the normal retirement provision in at least one of two respects: (1) A
smaller benefit is payable than would be payable at the normal retirement age to a worker with the same credited
earnings and service, and (2) the employer’ s consent may be required.
22 See p. 16.




15
Early Retirement
Eligibility Requirements.
Age and service requirements are the prin­
cipal criteria used to establish eligibility for early retirement.
The employer*s
consent was another requirement specified by most plans.
More than 9 out of 10 workers belonged to plans with both age and serv­
ice requirements (table 15). Plans covering two-fifths of the workers required
30 years of service and plans having, altogether, about the same fraction of the
workers required 15, 20, or 25 years of service.
Three-fourths of the work­
ers had to attain at least age 60 (by far the most prevalent age) for eligibility.
Only 2, 000 workers belonged to plans with no age or service requirements.
All but one plan permitted early retirement at least 5 years before the
normal retirement age— age 65 in all but nine plans— while roughly one-fourth
of the plans, covering almost the same ratio of workers, allowed as many as
10 years.
Comparatively few plans permitted retirement more than 10 years
before the normal age.
The number of years before the normal retirement
age that early retirement benefits were first payable is shown in the follow­
ing cumulative tabulation:

Difference between normal
and early retirement ages

Plans

Workers
(thousam

A ll plans with an early retirement provision1 -------

358

282

3 years or m o r e ------------------------------------------------------5 years or m o r e ------------------------------------------------------8 years or m o r e ------------------------------------------------------10 years or m o r e ----------------------------------------------------13 years or m o r e ----------------------------------------------------15 years or m o r e ----------------------------------------------------Not computable 2 -----------------------------------------------------

358
357
103
102
58
53
49

282
281
76
74
19
19
12

1
2

See footnote 1, table 8.
No age requirement for early retirement.

NOTE: Where alternative requirements were specified, the earliest possi­
ble age for men was used in this tabulation regardless of whether the employer's
consent was required.

Women were permitted to retire up to 5 years earlier than men in
15 plans covering 10, 000 workers, and up to 10 years earlier in 4 plans with
8, 000 workers.
All but 1 of the 19 plans also specified a sex differential in
normal ages.
Three out of five workers, as shown in the tabulation on the next page,
belonged to plans permitting employees meeting the age and service requirements
to retire early at their own volition.
However, the employer's consent was
required by many of these plans if the worker wished to retire even earlier
after meeting alternative age and service requirements.
In addition, 1 out of
6 workers belonged to plans under which they could be involuntarily retired. 23

23

Excludes the "sp ecial" early retirement provision discussed in the next section.




16
Approval of action by other party—
Total______

Not required

A ll basic plans with an early retirement
provision 1----------------------------------------------------------

69

Plans

Workers
(thousands)

Plans

Workers
(thousands)

282

Plans

Early retirement may be initiated by 2—
W ork er---------------------------------------------- -----------Worker or em p lo ye r--------------------------------------

Required

198

104

160

178

236
47

153
4 45

85
19

•
5136
5 24

151
27

Workers
(thousands)

* See footnote 1, table 8.
2 Excludes the "special" early retirement provision.
3 Includes 13 plans, covering 2 9 ,0 0 0 workers, that permitted retirement at the worker's request or under
mutually satisfactory conditions.
4 Required the employer's consent or his request.
5 Includes 2 plans, covering 5 ,0 0 0 workers, that permitted retirement at the worker's request or employ­
er's request or under mutually satisfactory conditions and 8 plans covering 1 1 ,0 0 0 workers requiring the em­
ployer's request.
NOTE: Because of rounding, sums of individual items may not equal totals.

"Special" Early Retirement.
In addition to a regular early retirement
provision, several plans in the food and primary metal industries permitted
workers to retire under a "special" early retirement provision. This provision
appears to combine elements of a severance arrangement and a modified disa­
bility retirement related to a worker*s incapacity to perform his job satisfactorily,
rather than to total and permanent disability.
Among the 15 plans providing for special early retirement, service re­
quirements were generally less stringent than those required for regular early
retirement but the age requirements were, with one exception, the same. Only
2 plans stipulated the same service requirement as for regular early, and the
remaining 13 plans required 5 or 10 fewer years of service.
In addition, all
plans allowed retirement "under mutually satisfactory conditions, " 24 except one
plan with 3,000 workers that permitted retirement solely at the worker*s re­
quest. Full normal benefits were payable immediately on retirement by all but
one plan, which paid twice the normal amount.
Disability Retirement
Disability retirement was the most prevalent benefit, apart from normal
retirement, provided by basic unfunded plans. 25 It was provided by about twothirds of the plans covering more than four-fifths of the workers (tables 4 and 14).
In addition, 96 plans without a disability retirement benefit made available
a partial substitute— early retirement benefits, or, in one instance, a vest­
ing provision.
Eligibility Requirements.
Age requirements for disability retirement
were, as a rule, lower than for early retirement, but the service requirements
were often greater than those for early retirement.
24 This term was not defined in any of these plans.
25 Under disability retirement provisions, pensions are payable to totally and permanently disabled workers
meeting specified age and/or service requirements. However, considerable variation existed among the plans studied,
as it does among funded plans, as to what constitute? total and permanent disability.
Qualified workers generally
received benefits after a 6 - month waiting period.




17
Although the attainment of age 55 or 60 was almost always required
for early retirement, almost four-fifths of the plans did not specify an age re­
quirement for disability retirement (table 16). The remaining plans usually had
a minimum age of 50 years.
However, this waiver of age requirements was
often qualified by long service requirements.
More than nine-tenths of the
workers belonged to plans with service requirements that ranged from 10 to
30 years— most often 15 years.
Benefit Formulas. Almost four-fifths of the workers belonged to plans
paying the same disability benefits for comparable earnings and service as for
normal retirement. Plans with about half the remaining workers modified their
normal benefit formulas to provide greater benefits and the rest modified them
to provide less.
Disability retirement benefits were less frequently integrated with Federal
disability benefits (social security or railroad retirement benefits)26 than were
normal retirement benefits.
About one-fourth of the plans, covering less than
half of the workers, integrated disability benefits as compared with two-fifths of
the plans with two-thirds of the workers that integrated normal benefits.
All
but one plan used the offset method for disability benefits while only three-fourths
used it for normal benefits.
The entire Federal benefit, as shown in the fol­
lowing tabulation, was deducted in about two-thirds of the integrated plans.

Integration provision

Plans

Workers
(thousands)

A ll basic plans with a disability retirement provision1 -----------

432

375

No integration provision— --------------------------------------------------------

2327

205

Integrated plans-------------------------------------------------------------------------All Federal benefits deducted:
All social security disability benefit deducted-------------A ll railroad retirement benefit deducted-----------------------One-half social security disability benefit deducted-------—
$80 for social security disability benefit deducted-----------85 percent railroad retirement benefit deducted---------------Other--------------------------------------------------------------------------------------

105

170

362
46
27
4
1
5S

66
36
29
28
1
10

1 See footnote 1, table 8.
2 Includes a few plans, covering about 1 ,0 0 0 workers, for which no informa­
tion was available.
2
Includes 10 plans, covering fewer than 500 workers, that used allowances
provided under the 1936 Social Security Act.
4 Includes 1 plan, covering fewer than 1 ,0 0 0 workers, that utilized the excess
earnings method.
5 Plans provide the greater of alternative benefits, with social security dis­
ability benefits deducted from 1 or more of the alternatives.
NOTE:

26

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

Social security disability benefits are payable to disabled workers, regardless of age, with 5 years of social
security credit in the 10 years preceding disablement. The benefits are the same as those payable for old-age re­
tirement at age 65.
Railroad retirement disability benefits are payable to disabled workers regardless of age with
20 years of service or at age 60 with 10 years of service. Railroad benefits, like social security benefits, are com ­
puted in the same way as those for old-age retirement.




18

Level of Benefits.
The level of benefits was computed under certain
uniform assumptions similar to those used in computing normal retirement bene­
fits.
The assumptions were:
1.

Retirement at age 50.

2.

Twenty years of credited service.

3.
Annual earnings of $4,800. (Since such earnings were assumed to
be constant throughout the worker’ s career, an important difference between
plans basing benefits on career earnings and those using terminal earnings
was not taken into account. )
4.
Eligibility for and receipt of maximum social security disability
benefits of $127 a month or of railroad retirement benefits of $167 a month. 2
7
Benefits were computed for 55 percent of the basic plans (237) that per­
mitted retirement for total and permanent disability.
These plans covered a
slightly larger fraction of workers (a total of 210,000) (table 17). Benefits could
not be computed for the other plans either because their minimum age or serv­
ice requirements were greater than those assumed for this study (94 plans with
137, 000 workers) or because of unspecified actuarial reductions^ unknown amounts
of integrated funded benefits, or unavailability of formula information (101 plans
with 28, 000 workers).
Plans with one-fourth of the workers for which the hypothetical benefits
could be computed would, under the assumed conditions, pay $50 to $60 a month
exclusive of social security disability or railroad retirement benefits. Plans with
about two-fifths of the workers provided over $60 a month. 2 The average disa­
8
bility benefits payable, weighted by the number of workers covered, was $56. 40. 2
9
The total monthly benefit amount, including a maximum social security
disability benefit of $127 or $167 from a railroad retirement benefit, whichever
was applicable, ranged from $127 (less than one-third of the assumed $ 4 0 0 -a month preretirement earnings level) to over $265, or at least two-thirds of pre­
retirement earnings (table 18). The weighted average was $190.20 a month, or
almost half the assumed preretirement earnings.
Vesting Provisions
Less than 1 out of 8 workers covered by unfunded plans belonged to one
with a vesting provision (table 14). 3
0 The relatively low frequency of vesting,
as compared with funded plans, presumably stems from the difference in fi­
nancing. Perhaps because vesting is less of a potential financial strain on em ­
ployers who have regularly set aside funds as benefits accrued, funded plans are
more inclined to include vesting. However, about half the unfunded plans with­
out a vesting provision (296 plans covering more than a quarter million workers)
had early retirement provisions, under which the accrued benefits of terminated
older workers with long service may be vested.
Plans with vesting provisions
^ An exception to the social security maximum was made in a few instances where a plan was self-terminating,
i. e . , applying to workers who had retired prior to some past date, and whose plan benefits were integrated with the
maximum social security benefit at that time, e. g . , $108. 50 a month.
28 Four plans, covering about 7 percent of the workers, provided no benefit under the assumed conditions b e­
cause of the railroad retirement benefit integration. These plans, do, however, pay benefits to workers entitled to
less than the maximum Federal benefit.
29 Weighted by the number of workers covered.
30 por definition of "vesting, " op. cit., footnote 2, p. 2.




19

covered about three-tenths of the workers belonging to unfunded plans in manu­
facturing industries.
Most of them were employed in the primary metals and
food industries (table 14). Only a few thousand workers employed in nonmanu­
facturing industries belonged to plans with vesting.
Eligibility Requirements. In addition to meeting age and service re­
quirements somewhat more liberal than those for early retirement, workers had
to be involuntarily separated to qualify under the vesting provisions of 39 of the
64 plans with vesting.
However, somewhat over half the workers (31, 000 out
of 57,000) belonged to plans without this restriction. Many of the unfunded plans
conditioning vesting on a permanent shutdown were in the metalworking indus­
tries where funded plans have similar vesting requirements.
Terminated workers usually also had to attain 15 years of service, age 40,
or (more often) both, to qualify (table 19).
Four plans, covering a significant
number of workers, required both age 55 and ZO years of service.
Benefit Formulas. All vested workers were eligible for the full bene­
fits to which their earnings and service entitled them under the normal retire­
ment formula. These benefits were payable commencing at the normal retirement
age— age 65 in every-plan. One plan, covering 1,366 workers, permitted work­
ers to choose, instead, an immediate benefit in a reduced amount.
Death Benefits 3
1
Death benefits were provided by 116 basic plans covering about 88,000
workers, or nearly 1 out of 5 workers (table 20). The survivors of over 9 5 per­
cent of the covered workers were eligible for benefits if death occurred after re­
tirement and of more than 70 percent if death occurred before retirement.
A payment-certain guarantee 3 was provided by very few more plans
2
than a lump-sum benefit, but the latter was applicable to 70 percent of the workers
with death benefits while the former covered 20 percent. The remaining workers
were provided a widow’ s benefit. 3
3 A widow's benefit was the only type of death
benefit that was payable only before retirement.
The prevalence of the three
types of death benefits, and the type of workers covered, are shown in the fol­
lowing tabulation:
_______ _______Type of workers__________________
Active and retired

Type of death benefit

Plans

Workers
(thousands)

Retired only

Plans

Workers
(thousands)

A ll basic plans with a death benefit *-------------- -----------

67

65

49

25

Lump-sum paym en t----------------------------------------- ■
.............
Payment-certain guarantee----------------------------- ■
.............
Widow's b e n e fit ----------------------------------------------- -----------

35
,2 2
210

51
6
8

16
32
1

10
12
3

1

See footnote 1, table 8.
Includes 7 plans with 4, 000 workers

that covered active workers only.

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

3* A death benefit is a payment or payments made automatically to survivors upon the death of a covered
worker or pensioner.
See Pension Plans Under Collective Bargaining: Benefits for Survivors, Winter 1960—61 (BLS
Bulletin 1334, 1962), p. 3.
32 A payment-certain guarantee assures a plan member and his beneficiary that they jointly w ill receive a
minimum number of monthly benefit payments regardless of when the member dies.
3.3 A widow's benefit continues the deceased member's benefit, all or in part, to his widow for the rest of her
life or until she remarries.




20
Survivor Options
Another method of protecting the survivors of retirees is to permit work­
ers to choose a reduced annuity with specified benefits for their survivors in
place of the straight life annuity normally paid by the plan. As in funded plans,
two types of survivor options were offered: (1) Joint and survivor, and (2) period
certain. 34 Unlike death benefits, 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. The
reduction in benefits to the retiree selecting the joint and survivor option depends
on the age and sex of both the retiree and joint annuitant at the time of retire­
ment, as well as the amount of benefit to be continued after the retiree's death.
The reduction in the monthly benefit for a guarantee of a given duration depends
solely on the age and sex of the pensioner.
The principal difference between
this option and the joint and survivor option is that the latter guarantees payment
of benefits over the combined life spans of two persons, regardless of how long
that may be.
Survivor options were made available by 107 plans with 107, 000 workers,
or almost 1 out of 4 workers. All but one plan, covering 20, 000 workers, pro­
vided a joint and survivor option. A period-certain option was offered by eight
plans to about 30,000 workers.

Type of survivor option

Plans

Workers
(thousands)

A ll supplementary plans with a survivor option 1 -------

107

107

Joint and survivor o n ly ----------------------------------------------Period certain only----------------------------------------------- --—
Joint and survivor and period certain-------------------------Any "standard" option---------------------------------------------------

99

76

1

20

5

4

2

6

1 See footnote 1, table 22.

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

34 A joint and survivor option pays the retiree a reduced annuity until his death, after that, a previously
specified annuity is paid for life to his designated beneficiary or, more technically, "joint annuitant." A periodcertain option insures payment of an annuity for a specified period of tim e, thereby assuring the retiree and his
survivor that they and/or their heirs, will jointly receive a minimum number of payments specified by the guarantee.




21

Supplementary Plans
Supplementary plans— plans that supplement funded pension plans— applied
to 904,000 workers, or two-thirds of the workers in all unfunded plans.35 A l­
though three-fourths of the plans in this group were established since World
War II, the 113 plans represented only about one-fifth of the workers because
about 1Z large plans established in 1913 in the telephone industry now cover nearly
500.000 workers.
Eighteen plans, each with 10, 000 or more workers, accounted for over
700.000 workers (table 2).
Over two-fifths of the plans covered fewer than
300 workers each.
Seven-tenths of the workers were employed in nonmanufacturing indus­
tries, chiefly in telephone communications (table 5).
Two-thirds of the plans,
covering three-fourths of the workers in manufacturing industries, were in non­
durable goods, with the largest number of workers employed in chemicals.
Three principal provisions applicable to a significant number of workers
were found in supplementary plans: Disability retirement benefits, death bene­
fits, and additional benefit amounts. Chiefly because only the first two benefits
were provided by the large telephone company plans, over 750,000 workers were
covered by disability retirement plans and over 600, 000 by death benefits.
Disability Retirement
Slightly more than two-fifths of the supplementary plans, covering more
than four-fifths of the workers in such plans, provided disability retirement bene­
fits (table 21). Most of the covered workers were employed in telephone com­
panies.
There were also significant numbers employed in chemicals (70, 000),
electric and gas utilities (48,000), and petroleum refineries (35,000).
Eligibility Requirements. Almost a fifth of the plans merely required the
worker to show that he was sufficiently disabled to qualify for a pension.
At
least 15 years of service was the most common requirement (table 22), but, in
contrast with many basic plans (both funded and unfunded) only six plans had an
age requirement.
Benefit Formulas. As under basic plans (both funded and unfunded) disa­
bility benefits were based, at least in part, on the normal retirement formula.
Plans covering 9 out of 10 workers had formulas that provided benefits equal to
or greater than the normal retirement benefits provided workers with the same
earnings and service by the associated funded basic plan.
Half the plans, covering four-fifths of the workers, integrated their
benefits with social security disability benefits as shown in the tabulation on the
following page. Almost all used the offset method, which provides larger bene­
fits to workers who are eligible for private plan benefits, but not for social
security benefits, than do the other methods.
Most plans, including the large
telephone plans,36 offset half the public benefit— the same offset as they used in
their normal benefit formula.

The administrators of these plans apparently regarded them as part of their pension program because they all
checked item 3B, "Pension Benefit Plan, " or, in a few instances, item 36, "Combination of Welfare and Pension
Plan, " on disclosure Form D - l . Moreover, the close relationship of benefits provided by the supplementary plans to
those provided by the funded program was often shown by the use of the same or similar benefit formula, eligibility
requirements, etc.
36
In 1963, the telephone companies announced that the offset would be reduced to one-third of primary social
security benefits.




22
Workers
(thousands)

Integration provision

Plans

All supplementary plans with a disability retirement provision*-----

73

752

No integration provision---------------------------------------------------------------------

2 36

153

Integrated plans-----------------------------------------------------------------------------------A ll social security disability benefit deducted-----------------------------One-half social security disability benefit deducted-------------------One-fourth social security disability benefit deducted---------------$30 for social security disability benefit deducted---------------------O ther-------------------------------------------------------------------------- --------------------

37
5
27
1
1
^3

598
28
557
1
7
6

1 See footnote 1, table 2 2 .
2 Includes 1 plan, covering 3, 000 workers, for which no information was available.
3 Plans offer the greater of alternative benefits, with social security disability bene­
fits deducted from 1 or more of the alternatives.
NOTE:

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

Level of Benefits. Plans covering three-fourths of the workers provided
disability benefits of $20 to $30 a month to disabled workers with the same age,
service, and earnings assumed in computing disability benefits under basic plans
(table 17). 37 Benefits would be larger under nearly all of the remaining plans.38
The weighted average benefit of $29. 70 a month was about half the average disa­
bility benefit computed under the same conditions for unfunded basic p lans.39 The
average was largely determined by the telephone plans which provided $21 .5 0 a
month under the assumed conditions.
Total monthly benefits, including maximum social security disability
benefits of $127, would range from $127 to $270; from less than one-third
to more than two-thirds of preretirement earnings (table 18).
The weighted
average benefit would be $156.70 (two-fifths of preretirement earnings) or fourfifths of the average total benefit amount payable by the basic plans.
Chiefly
because the large telephone company plans would provide $148.50 a month (in­
cluding social security), plans covering 70 percent of the workers would provide
$140 to $150 a month.
Death Benefits
Although only 34 plans granted a death benefit, they covered two-thirds of
the workers under supplementary plans. Nearly all plans, as shown in the tab­
ulation on the next page, provided benefits for both active and retired workers,
and all but two made lump-sum payments.
Lump-sum payments were paid by 18 plans in the communications indus­
try (520, 000 workers) and by 14 small plans— all but 1 of which were in manu­
facturing industries.
The 1-year payment-certain guarantee was provided by a
petroleum refining company (35,000 workers) and the widow*s benefit by an electric
utility (28, 000 workers).

37 Benefits were computed for 52 plans covering nine-tenths of the workers in the 73 plans that permitted disa­
bility retirement. Benefits could not be computed for 21 plans, usually for the same reasons they could not be com­
puted for basic plans.
(See p. 18. )
38 Six plans, covering the great majority of workers provided no benefit because of social security disability
offset.
These plans do, however, pay benefits to workers entitled to less than the maximum Federal benefit.
39 Basic plans under the Railroad Retirement Act have been excluded from this and subsequent comparisons be­
cause no plans in the railroad industry provided supplementary benefits.




23
Type of workers
Active and retired

Type of death benefit

Plans

Workers
(thousands)

Active only

Plans

Workers
(thousands)

A ll supplementary plans with a death benefit1 ---------

27

595

7

9

Lump-sum payment----------------------------------------------------Payment-certain guarantee----------------------------------------Widow's b e n e fit-----------------------------------------------------------

225
1
1

532
35
28

7

9

1
2

See footnote 1, table 22.
Includes 1 plan, with 3, 000 workers, that covered only retired workers.

The amount of the lump-sum benefit paid by the telephone pension plans
depends on when the worker d ie s.40 If he dies before he retires, the benefit
equals 4 months' earnings for service of 6 months but less than 2 years, in­
creased by 2 months' earnings for each additional year of service to 12 months'
earnings for 5 or more years, or $250, whichever is greater. If he dies after
retiring, the benefit is the greater of his annual earnings at retirement reduced
10 percent for each full year elapsed since retirement and his annual pension.
Additional Benefit Amount
Some unfunded plans supplemented the benefits under funded plans and,
occasionally, the benefits under unfunded plans, by paying additional benefits for
the same cause (e.g. , normal retirement or disability retirement). These ad­
ditional payments, provided by nearly 3 out of 5 supplementary plans covering 1 out
of 5 workers under such plans, increased the amount of benefits payable to a bene­
ficiary but, unlike the supplementary plans previously described, did not affect
the number of different types of benefits provided.
The additional benefit amounts were provided in several different ways.
The group of plans with the largest number of workers (93, 000) guaranteed a
minimum retirement benefit applicable to specified funded benefits or often to
all benefits, funded and unfunded. 41 Other plans supplemented their funded bene­
fits by granting pensioners additional benefits, such as cost-of-living allowances.
Pensions (normal, early, and disability) based on past service— i. e. , service
prior to the adoption of a funded pension plan— were provided by a number of
unfunded plans.
Still others supplemented funded plans by paying pensions to
workers who retired before a specified date— usually the effective date of the a s­
sociated funded plan— or to workers who were ineligible for benefits under the
funded plan, such as retired workers with insufficient service to qualify for a
funded pension. And, finally, a small number of plans paid social security ad­
justment allowances to workers retiring early under a funded plan. These allow­
ances temporarily take the place of social security benefits that are not payable
immediately on retirement.

40 Additional benefits are usually payable under the company's life insurance plans; cf. Digest of One Hundred
Selected Health and Insurance Plans Under Collective Bargaining, Winter 1961—62 (BLS Bulletin 1330, 1962),
pp. 168-173.
41 If the minimum was applicable only to unfunded benefits it would be classified as part of the unfunded bene­
fits ) to which it applied, rather than to supplementary benefits, here.




24
T a b l e 1.

Y e a r o f E s t a b l i s h m e n t o f U n fu n d e d P e n s i o n
P la n s b y T y p e o f P l a n , S p r in g 1 9 6 2

T a b le 2 .

U n fu n d e d P e n s i o n P la n s b y N u m b e r o f W o r k e r s
C o v e r e d a n d T y p e o f P la n , S p r in g 1 96 2

( W o r k e r s in t h o u s a n d s )
B a s ic p la n
Y e a r o f e s t a b lis h m e n t
P la n s

( W o r k e r s in t h o u s a n d s )
S u p p le m e n t a r y
p la n

W o r k e r s 1 P la n s

W ork ers 1

____

677

462

174

B e f o r e 1 9 2 0 ____________
1 9 2 0 t h r o u g h 1 9 4 4 ____
1 9 4 5 t h r o u g h 1 9 5 9 2___
N o t a v a i l a b l e ___ _____

11
73
375
218

98
47
204
114

17
21
113
23

462

1 74

904

313
187
27
76
62
5
4
3

18
33
12
51
131
38
62
118

50
25
20
13
36
12
5
8
5

3
7
6
9
84
88
73
261
3 73

1

N O T E : B e c a u s e o f r o u n d in g , s u m s o f in d iv i d u a l i t e m s
m a y n ot eq u a l to ta ls .




S e e f o o t n o t e 1, t a b l e 1.

N O T E : B e c a u s e o f r o u n d in g , s u m s o f i n d iv i d u a l i t e m s
m a y n ot eq u a l to ta ls .

B e n e f i t s P r o v i d e d b y U n fu n d e d P e n s i o n P la n s
b y T y p e o f P l a n , S p r in g 1 9 6 2
( W o r k e r s in t h o u s a n d s )

B asic plan
Type of benefit
Plans

A ll plans—

________

______

____

N orm al r e t ir e m e n t ________ ___ _
E a rlv re tir e m e n t--------------------------------------D isability retirem ent
V e s tin g _____
_______
Death benefits____________
Survivor options
Special early r e tir e m e n t____ _______
Special vacation p a y __ _______
____ _
Additional benefit am ounts_______________
Supplement (not a m inim um )_________
Minimum
P ast s e r v i c e ___________________________
Social security adjustment
allowance__ _______ __ _________
O th er____
__
______________

1

W ork ers 1

677

1 I n c lu d e s b o th a c t iv e and r e t ir e d w o r k e r s c o v e r e d
in I 9 6 0 .
2 S in c e o n l y p l a n s th a t f i l e d f i n a n c i a l r e p o r t s ( F o r m
D - 2 ) f o r 1 9 5 9 a r e in c l u d e d in th e s t u d y , p l a n s e s t a b l i s h e d
in I 9 6 0 a n d s u b s e q u e n t y e a r s a r e o m i t t e d .

T a b l e 3.

W o r k e r s 1 P la n s

2 6 - 9 9 .......................................
1 0 0 - 2 9 9 . ................................
3 0 0 -4 9 9
5 0 0 - 9 9 9 ..............................
1 , 0 0 0 - 4 , 9 9 9 ____________
5 ,0 0 0 - 9 ,9 9 9
1 0 , 0 0 0 - 2 4 , 9 9 9 _________
2 5 , 0 0 0 - 4 9 , 9 9 9 _________
5 0 , 0 0 0 o r m o r e _ ___

515
84
1 64
141

_____

P la n s

S u p p le m e n t a r y
p la n

A l l p l a n s ........ .......................

904

A l l p l a n s __

B a s i c p la n

N um ber of
w ork ers cov ered

Supplementary
plan

W orkers 1 Plans W orkers 1

677

462

677
358
432
64
116
107
15
19
-

462
282
375
57
88
107
33
18
-

-

-

-

-

174

904

1
73
_
34
_

28
752
_
604
_

-

-

100
42
29
20

189
48
93
35

13
8

49
77

-

S e e f o o t n o t e 1, t a b l e 1.

N O T E : B e c a u s e m a n y p l a n s p r o v i d e m o r e th a n 1 b e n e f i t , th e t o t a l s a r e
l e s s th a n th e s u m s o f th e i n d iv i d u a l i t e m s .

25
T a b le 4 . A m o u n t o f B e n e f i t s P a i d in I 9 6 0 b y T y p e o f B e n e f i t s P r o v i d e d b y U n fu n d e d P e n s i o n P l a n s , S p r in g 1962
( W o r k e r s in t h o u s a n d s )

With death benefit

Total
Type of benefit
Plans

Amount
of benefits
W orkers 1
paid
(thousands)

Plans

Without death benefit

Amount
of benefits
W orkers 1
paid
(thous ands)

Plans

W orkers 1

Amount
of benefits
paid
(thous ands)

AU p la n s _____________________________

851

1, 367

$ 115,447

150

692

$ 6 4 , 390

701

675

$ 5 1 ,0 5 7

B asic p la n s___________________

677

462

$ 5 1 , 304

116

88

$ 13, 036

561

374

$ 3 8 ,2 6 8

N orm al retirem en t_________________
N orm al, early, and disability
retirem ent, and vesting 1 ________
2
N orm al, early, and disability
retirem en t__________
____________
N orm al and early re tir e m e n t_____
N orm al and disability
retirem en t_____ __________________
N orm al retirem ent and
vestin g---------------------------------------------

148

25

11,946

21

3

1, 840

127

22

10, 106

62

53

1 ,8 2 3

5

5

50

57

48

1 ,7 7 3

200
96

170
60

1 7 ,6 1 4
3, 835

33
26

31
35

3 ,4 1 3
2, 141

167
70

139
25

14,201
1 ,6 9 4

170

153

1 6 ,0 3 4

3 31

15

5 ,5 9 2

139

138

1 0,442

1

2

52

-

-

-

1

2

52

Supplementary p la n s________

174

904

64, 143

34

603

5 1 ,3 5 4

140

301

1 2,789

61

639

5 1 ,1 1 7

4 26

591

50, 261

35

48

856

7

41

1, 802

2

11

1, 084

55

30

718

5
6
93
2

72
2
149
2

2 ,9 1 1
9
8, 129
175

-

-

-

5

72

6

2

9

-

-

-

-

-

-

-

93
2

2 ,9 1 1
8, 129
175

Disability retirem en t______________
D isability retirem ent and
additional b en efits________________
D isability retirem ent and other
b en efits___________ ________ ____ __
Death b e n e fits______________________
Additional benefits
Other b e n e fit s _______________________

1
2
3
4
5

-

149
2

S e e f o o t n o t e 1, t a b l e 1.
I n c l u d e s 15 p l a n s th a t a l s o p r o v i d e d " s p e c i a l " e a r l y r e t i r e m e n t .
I n c l u d e s 1 p l a n , c o v e r i n g 2 , 0 0 0 w o r k e r s , th a t a l s o p r o v i d e d v e s t i n g .
I n c l u d e s 1 p l a n , c o v e r i n g 2 8 , 0 0 0 w o r k e r s , th a t a l s o p r o v i d e d e a r l y r e t i r e m e n t .
I n c l u d e s 1 p l a n , c o v e r i n g 3, 0 0 0 w o r k e r s , th a t a l s o p r o v i d e d o t h e r b e n e f i t s .

NOTE:

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

T a b le 5 .

s u m s o f in d iv i d u a l i t e m s m a y n o t e q u a l t o t a l s .

U n fu n d e d P e n s i o n P la n s b y I n d u s t r y a n d T y p e o f P l a n , S p r in g 1 96 2
_____________ ( W o r k e r s in t h o u s a n d s )________________
B a s ic p la n

S u p p le m e n t a r y p la n

In d u stry
P la n s

W ork ers 1

P la n s

W ork ers 1

677

462

174

904

404

188

92

226

136
31
22
37
4 46
268
17
56
22
85
(5 )
88

81
6
41
9
24
107
18
9
14
29
(5 )
37

32

54

(3 4
)
9
12
11
60
(5 )
( )
(5 )
5
25
30

(3 )
17
9
28
172
(5 )

N o n m a n u f a c t u r i n g -----------------------------------------------------

263

274

81

642

R a i l r o a d t r a n s p o r t a t i o n -----------------------------------------------------M o t o r t r a n s p o r t a t i o n ______________________________________
C o m m u n i c a t i o n s _____________________________________________
U t i l i t i e s : E l e c t r i c a n d g a s ________________________________
W h o l e s a l e a n d r e t a i l t r a d e ________________________________
F i n a n c e , i n s u r a n c e , a n d r e a l e s t a t e ___________________
O t h e r n o n m a n u f a c t u r in g i n d u s t r i e s _____________________

28
30
25
51
21
46

1 44
20
11
21
52
20
7

(6 )
(6 )
18
22
2
27
12

(6 )
(6 )
520
70
30
8
14

A ll in d u s t r ie s 2
M a n u f a c t u r i n g _______________________________________
D u r a b l e g o o d s ________________________________________________
S t o n e , c l a y , a n d g l a s s p r o d u c t s -------------------------------P r i m a r y m e t a l i n d u s t r i e s _____________________________
F a b r i c a t e d m e t a l p r o d u c t s ____________________________
O t h e r d u r a b l e g o o d s ____________________________________
N o n d u r a b le g o o d s ___________________________________________
F o o d a n d k i n d r e d p r o d u c t s ____________________________
T e x t i l e m i l l p r o d u c t s ___________ - ______________________
P r i n t i n g , p u b l i s h i n g , a n d a l l i e d i n d u s t r i e s ----------C h e m i c a l s a n d a l l i e d p r o d u c t s _______________________
P e t r o l e u m r e f i n i n g a n d r e l a t e d i n d u s t r i e s ________
O t h e r n o n d u r a b l e g o o d s ________________________________

4 62

< )
(5 )
82
60
31

1 S e e f o o t n o t e 1, t a b l e 1.
2 I n c l u d e s 10 b a s i c a n d 1 s u p p l e m e n t a r y p l a n , w it h a t o t a l o f 3 6, 0 0 0 w o r k e r s , w h i c h c o v e r e d
m a n u f a c t u r i n g a n d n o n m a n u f a c t u r in g e s t a b l i s h m e n t s .
3 I n c l u d e d in o t h e r d u r a b l e g o o d s .
4 I n c l u d e s p l a n s c o v e r i n g f i r m s e n g a g e d in b o t h d u r a b l e a n d n o n d u r a b l e g o o d s m a n u f a c t u r i n g .
5 I n c l u d e d in o t h e r n o n d u r a b l e g o o d s .
6 I n c l u d e d in o t h e r n o n m a n u f a c t u r in g i n d u s t r i e s .
NOTE:




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

s u m s o f i n d iv i d u a l i t e m s m a y n o t e q u a l t o t a l s .

b o th

26
T a b le 6 .

M i n im u m A g e a n d S e r v i c e R e q u i r e m e n t s f o r N o r m a l R e t i r e m e n t in U n fu n d e d B a s i c P e n s i o n P l a n s , S p r in g 1 9 6 2

(W orkers in thousands)
Minimum age requirem ent1
2
Total
Age 60

M inimum service req u irem en t1

Age 65

Age 70

Other

Plans W orkers 3 Plans W orkers 3 Plans W orkers 3 Plans W orkers 3 Plans W orkers 3
A ll plans with a norm al retirem ent
provision _
_ _ _ _ _ _
----No service requirem ent—
__
L e ss than 10 yea rs
_
10 years __ — __ _ _
15 years ______ _ _ _ ----20 years __ __
_ _ _ _ _ _
25 yea rs
________
_
----30 years
_ _
__
—
Other
___ ____

4 677

__
_
_ _
_
_

462

42

22

569

416

31

21

45
48
122
177
165
82
3
20

34
16
51
114
173
68
4
1

_

_
1
8
9
4
“

33
33
121
147
159
76
“

29
15
51
113
150
59
“

5 12
15
1
3

5
1
1
_
14

_

_ _ _

6 30
3
6
3
"

-

1

-

_
_
_
_
_

_
_

-

“

20

■

-

20

-

1

1 For those plans which specified that a period of employment be served before participation in the plan could begin,
the m inimum service requirem ent includes the participation service and the required plan m em bership serv ice .
2 In 21 plans, covering 2 5 ,0 0 0 w ork ers, alternative requirements wqre specified; the 1 with the e a rlie st age requirem ent
at the w o r k e r 's option is shown, or the earliest age or no age requirem ent is used if no worker option was perm itted. In
49 plans, covering about 1 0 3 ,0 0 0 w orkers, age requirem ents were lower for women.
Age differences ranged from 3 to 10
years with a 5 -y e a r sex differential the m ost prevalent.
3 See footnote 1, table 1.
4 Includes 15 plans for which m inimum age and service requirements were not available.
5 Includes 6 plans, covering about 2 ,5 0 0 w orkers, that specified a minimum age requirem ent of 68.
6 Includes plans, covering nearly 1 ,0 0 0 w orkers, that specified no age requirem ent.
N O T E:

Because of rounding, sums of individual item s m ay not equal totals.

Table 7.

P rovision for Integration of P rim ary Social Security or R ailroad Retirem ent Benefit With
B asic Benefit by Type of B asic Benefit F orm ula, Spring 1962
(W orkers in thousands)
B asic benefit form ula based on—
Total

Earnings
and service

I n te g r a tio n p r o v is io n

Earnings

Service

Uniform
amount

Other

Plans W orkers 1 Plans W orkers 1 Plans W orkers 1 Plans W orkers 1 Plans W orkers 1 Plans W orkers 1
All^plans with a b asic
benefit provision __

__

* 677

462

346

349

46

7

200

84

61

9

14

13

No integration p ro vision ________
Integrated plans __ __ __ _
O ffset m ethod_________________
A ll prim ary social
security benefit—
O ne-half prim ary social
security benefit__
$85 for p rim ary social
security benefit__________
$ 8 0 for p rim ary social
security ben efit-.
85 percent railroad
retirem ent b en efit— ____
Step rate method _ _ _ _ _ _
E x cess earnings m ethod_____

2401
276
208

168
294
194

137
209
141

71
278
178

10
36
36

(3 )

80
4
4

61

9

7
7

170
30
30

-

-

-

-

13
1
1

8
5
5

94

110

43

100

30

2

20

2

-

-

1

5

86

47

70

41

6

5

10

2

-

-

-

-

22

_

7

22

7

-

-

-

-

-

-

-

-

5

29

5

29

-

-

-

-

-

-

-

-

1
56
12

1
50
50

1
56
12

1
50
50

-

-

-

-

-

-

■

“

-

~

-

-

-

-

1 See footnote 1, table 1.
2 Includes 10 plan s, covering 1, 000 w orkers, for which no inform ation was available regarding what basic benefit fo r ­
mula was based on.
3 Fewer than 500 w orkers.
NOTE:

B ecause




o f r o u n d in g ,

s u m s o f in d iv i d u a l i t e m s

m a y n ot eq u a l to ta ls .

27
T a b le 8 .

P e r c e n t a g e F a c t o r s U s e d in U n i f o r m P e r c e n t F o r m u l a s a n d (th e R e d u c t i o n o f P la n B e n e f i t s b y E i t h e r P r i m a r y
S o c i a l S e c u r i t y o r R a i l r o a d R e t i r e m e n t B e n e f it , b y E a r n i n g s C o m p u t a t i o n U t i l i z e d , S p r in g 1 9 6 2 1
( W o r k e r s in t h o u s a n d s )

Y ears i f earnings utilized—
o
Total

Offset provision and
percentage factor
applied to earnings

Each year

Last 10 years

5 highest of
last 10 years

Other

Last !5 years

Plans W orkers Plans W orkers Plans W orkers Plans W orkers Plans W orkers Plans W orkers

A ll plans with uniform
percentage fo r m u la s ---------------A ll prim ary social security
benefit deducted-----------------------1 .0 p e rcen t----------------------------2. 0 p e rcen t----------------------------Other----------------------------------------O ne-half prim ary social
security benefit deducted-------1. 0 percent-----------------------------1. 5 percent----------------------------- 1 .6 7 percent---------------------------2. 0 p e rce n t----------------------------O th e r---------------------------------------$85 for prim ary social
security benefit deducted------1. 0 p e rcen t----------------------------1. 25 percent---------------------------$80 for prim ary social
security benefit deducted-------1. 0 percent-----------------------------1. 25 percent---------------------------A ll railroad retirem ent
benefit deducted-----------------------1. 1 p e rce n t----------------------------1. 5 p e rce n t----------------------------85 percent for railroad r e tir e ­
ment benefit deducted------------No deduction for prim ary
social security or railroad
retirem ent benefits-----------------0. 7 percent-----------------------------0. 75 percent---------------------------1. 0 p e rce n t----------------------------1. 1 p e rce n t----------------------------1. 25 percent------------------------- —
1. 5 p e rcen t------------------------- :
—
1 .7 5 percent---------------------------2. 0 percent-----------------------------Other ----------------------------------------

41

95

15
5
_
4 10

77
76
_
1

336

306

214

69
18
21
30

96
91
3
2

44
13
21
3 10

75
36
35
2
1
1

44
10
23
7
4
1

53
26
24
2
1
_

40
7
22
7
4
_

21
10
10

22
12
10

7
6
1

22
12
10

5
4
1

29
14
15

2
1
1

166

19
15
3
(2)

9

23

44

12

28

9

_

10

(2)

_

_

-

-

-

-

-

_
_

_
_

_
_

_
5 10

_
_
_

1
1
_
_

1
_
1
_
_

_
_
_

_

_

-

-

_
1

_
1

_
_
_
_

7
6
1

_
-

_
_

_
_
_

_
_
_

_
_
_

_
_

1
1

15
15

4
4
-

14
14
-

_
_
_

_
_
-

_
_
_

4
2
2

_
-

_
-

_
-

_
_
-

_
_
-

_
_
_

1

1

1

1

_

_

_

162
1
7
44
42
10
16
1
15
26

126
1
12
83
16
1
3
1
2
6

93
_
86
32
35
10

85
_
8
66
10
1

1
_
_
_
_

1
_
_
_
_

9

-

_

-

(2)

-

10

3
3
(2)

-

_
_
-

_
_
_

_

_
_

_
_
_

_
_
_

1
_
1

2
_
2

1
61
_

2
2
_

_

_

_

23

42

9

_
_

-

_
2
7
_

_

_

_

1

1

_

_

_

_

_

_

17
6
_

_

1
10
_
_
16

_

_

17
71

7
1

4
(2)

_

_

_

_

_
3

_

_

_

_

_

_

_

5

1

9 10
'

-

_
(2)

_
_
_

_

'

-

_

(2)

_

1016

_

_

_

6

'

1
2
3
4
5
6

Based on a study of 677 unfunded basic pension plans covering approximately 462, 000 active and retired w orkers in I960.
Fewer than 500 w orkers.
Includes, for example, plans providing 40 percent of average monthly earnings during last full year of employment.
Includes, for example, plans providing 40 percent of average annual earnings during last 15 years of employment.
Includes, for example, plans providing benefit amounts entirely at discretion of board of d irecto rs.
Benefit is based on 5 highest consecutive y e a rs' earnings.

7

B e n e f it i s b a s e d o n 10 h i g h e s t c o n s e c u t i v e y e a r s ' e a r n i n g s .

8 Includes som e plans, covering fewer than 500 w orkers, that based the benefit on total earnings.
9 Includes, for example, plans providing 25 percent of average annual earnings during last 5 years of employment.
u Includes, for exam ple, plans providing a lu m p-su m benefit graduated by earnings and service.
N OTE:

Because of rounding, sums of individual item s may not equal totals.




28
Table 9.

B asic Monthly N orm al Retirem ent Benefit for Each Year of Credited Service
by M aximum Y ears of Service Allowed, Spring 1962 1
(W orkers in thousands)
M axim um years of credited service allowed
Total

Monthly benefit for each
year of service

No m axim um

25 years

20 years

35 years
or m ore

30 years

Plans W orkers Plans W orkers Plans W orkers Plans W orkers Plans W orkers Plans W orkers
A ll plans in which norm al
benefits vary by s e r v ic e ---------

200

$ 1 . 0 0 ---------------------------------------------$ 1 . 5 0 ---------------------------------------------$ 1 . 7 5 ---------------------------------------------$ 1 . 8 0 ---------------------------------------------$ 2 . 00--------------------------------------------$ 2 . 25---------------------------------------------$ 2 . 50---------------------------------------------$ 3 . 33---------------------------------------------$ 4 . 33--------------------------------------------Other 5 -------------------------------------------

26
12
1
1
55
16
2
11
5
71

1
2
3
4
5
6

84
7
8
3
(3)
21
6
( 3)
2
3
33

27

37

1
1
1

1
1
3

_

_

3
6
1

4
6
(3)

_

20

35

6

5

65

20

_

2 25
1

6
2

53

4

_

_

_

_

_

_

_

_

_

_

-

-

-

_

10

1

10

1

_

_

_

_

_

-

-

_

_

_

_

_

16
10
1
4 11

1
16

_

_

_

_

_

3

_

14

23

-

-

5
20

1

1

16

10

_

8
1
(3)
2

_
_

(3)
8

_

_

_

_

_

_

_

_

_

1

6 36

8

See footnote 1, table 8.
Includes plans covering about 2, 000 w orkers for which on e-h alf prim ary social security is deductible.
Fewer than 500 w orkers.
Includes plans covering about 2, 000 w orkers for which all prim ary social security is deductible.
Includes plans providing a uniform monthly benefit in addition to a benefit graduated by years of service .
Includes plans covering fewer than 500 w orkers for which all prim ary social security is deductible.

N OTE:

Because of rounding, sums of individual item s may not equal totals.

Table 10.

Minimum Benefit P rovisions by Type of B asic Benefit Form ula in Unfunded Pension Plans, Spring 1962 1
(W orkers in thousands)
Basic benefit form ula based on—
Total

Earnings and
service

Type of minim um benefit provision

Earnings

Service

Other

Plans W orkers Plans W orkers Plans W orkers Plans W orkers Plans W orkers
A ll plans with a m inimum benefit p r o v is io n ____
Flat benefit varying by s e r v i c e ----------------------------Flat benefit for specified s e r v i c e ------------------------Other2
--------------------------------------------------------------------------1

Includes plans

144
105
30

116
77
2

240

170

25

6

1

137
83
20

104
65
1

5
20

4
1

.

13

11

1

8

-

-

8

-

2
1
10

8
3
1

S e e f o o t n o t e 1, t a b l e 8.

2

195

279

N OTE:

with fewer

than

1,0 0 0 w orkers, for which information was not available.

Because of rounding, sum s of individual item s m ay not equal totals.

Table 11.

P rovision for Deduction of P rim ary Social. Security Benefit F rom M inim um Benefit by Type of
Minimum Benefit Form ula in Unfunded Basic' Pension P lan s, Spring 1962 1
(W orkers in thousands)
M inim um benefit form ula based on—
Total

Flat amount varying
by service

Integration provision

Flat amount for
specified service

Other

Plans

W orkers

Plans

W orkers

Plans

W orkers

Plans

A ll plans with a m inim um benefit provision-----

279

195

144

116

105

77

2 30

2

No integration provision 2 -----------------------------------Integrated p la n s -----------------------------------------------------A ll prim ary social security
benefit deducted---------------------------------------------O ne-half prim ary social security
benefit deducted---------------------------------------------

254
25

163
32

130
14

106
9

94
11

55
22

30
-

2
-

20

21

14

9

6

11

5

11

“

5

11

1 See footnote 1, table 8.
2 Includes plans with fewer
N O T E:

than

“

1,000 w orkers, for which information was not available.

Because of rounding, sums of individual item s may not equal totals.




W orkers

-

-

”

“

29
T a b le

1 2.

N o r m a l R e t i r e m e n t B e n e f i t s P a y a b l e b y B a s i c U n fu n d e d P e n s i o n P l a n s t o
E a r n i n g $ 4 , 8 0 0 P e r Y e a r f o r 30 Y e a r s o f F u t u r e S e r v i c e , S p r in g 1 9 6 2

W ork ers

( W o r k e r s in t h o u s a n d s )
T ype

o f p la n

T ota l
M o n th ly b e n e fit

R a ilr o a d
W ork ers 1

P la n s

A l l p la n s

w it h n o r m a l r e t i r e m e n t

P la n s

6 77

P la n s f o r w h ic h b e n e f i t w a s n o t c o m p u t a b l e _____
P l a n s f o r w h ic h b e n e f i t w a s c o m p u t e d ____________
N o b e n e fit p r o v id e d 1
2_________________ __
_____
$ 1 a n d l e s s th a n $ 2 5 _____________________________
$ 2 5 a n d l e s s th a n $ 5 0 ___________________________
$ 5 0 a n d l e s s th a n $ 7 5 ___________________________
$ 7 5 a n d l e s s th a n $ 1 0 0 __________________________
$ 1 0 0 a n d l e s s th a n $ 1 2 5 _____ .__________________
$ 1 2 5 a n d l e s s th a n $ 1 5 0 ________________________
$ 1 5 0 a n d l e s s th a n $ 1 7 5 ________________________
$ 1 7 5 a n d l e s s th a n $ 2 0 0 ________________________
$ 2 0 0 a n d l e s s th a n $ 2 2 5 _________________________
$ 2 2 5 a n d l e s s th a n $ 2 5 0 ________________________
$ 2 5 0 a n d o v e r __________ __________________________

462
11
451
78
50
56
67
70
63
61

W ork ers 1

P la n s

1 44

649

318

59
5 90
25
10
97
186
82
103
48
5
7
12
5
10

11
307
7

28

59
618
48
12
99
187
82
103
48
5
7
12
5
10

O th er

_

A v e r a g e m o n t h ly b e n e f i t 4 ____________________________

( 3)
2
2
1
(3 )

28
23
2
2
1
-

144
71
50
21
3
-

-

-

-

-

_

_
-

-

-

-

$64 .4 0

$ 1 0 . 00

W ork ers 1

( 3)
35
64
70
63
61
( 3)
2
2
1
(3 )
$ 8 8 . 90

1 S e e f o o t n o t e 1, t a b l e 1.
2 N o p la n b e n e f i t w a s p r o v i d e d u n d e r a s s u m e d c o n d i t i o n s b e c a u s e o f th e d e d u c t i o n o f p r i m a r y s o c i a l s e c u r i t y o r r a i l r o a d
r e t ir e m e n t b e n e fit s .
T h e s e p la n s d o , h o w e v e r , p a y b e n e f i t s t o w o r k e r s e n t it l e d t o l e s s t h a n th e m a x i m u m F e d e r a l b e n e f i t .
3 F e w e r th a n 5 0 0 w o r k e r s .
4 W e ig h te d b y n u m b e r o f w o r k e r s c o v e r e d .
NOTE:

B ecau se

o f r o u n d in g ,

sum s

o f i n d iv i d u a l i t e m s m a y n o t e q u a l t o t a l s .

T a b l e 1 3 . N o r m a l R e t i r e m e n t B e n e f i t s I n c lu d in g P r i m a r y S o c i a l S e c u r i t y o r R a i l r o a d R e t i r e m e n t
B e n e f i t , P a y a b l e b y U n fu n d e d B a s i c P e n s i o n P la n s t o W o r k e r s E a r n i n g $ 4 , 8 0 0 P e r Y e a r
f o r 30 Y e a r s o f F u t u r e S e r v i c e , S p r in g 1 96 2
( W o r k e r s in t h o u s a n d s )
Type

A l l p l a n s w it h n o r m a l

re tire m e n t _

P l a n s f o r w h ic h b e n e f i t
P la n s f o r w h ic h b e n e f i t
L e s s th a n $ 1 5 0 ____
$ 1 5 0 a n d l e s s th a n
$ 1 7 5 a n d l e s s th a n
$ 2 0 0 a n d l e s s th a n
$ 2 2 5 a n d l e s s th a n
$ 2 5 0 a n d l e s s th a n
$ 2 7 5 a n d l e s s th a n
$ 3 0 0 a n d l e s s th a n
$ 3 2 5 a n d l e s s th a n
$ 3 5 0 a n d l e s s th a n
$ 4 0 0 a n d l e s s th a n

w a s n o t c o m p u t a b l e ----------w as co m p u te d
__________
_________________
$ 1 7 5 __________________________
$ 2 0 0 _____
$ 2 2 5 ________________________
$ 2 5 0 __________________________
$ 2 7 5 ______________________
$ 3 0 0 ___________
__________
$ 3 2 5 __________________________
$350
$ 4 0 0 ____________________ ___
$450
_______________________

_ _ __

A v e r a g e m o n t h ly b e n e f i t 3

W ork ers 1

P la n s

6 77

462

49
628
55
97
174
93
1 04
73
7
8
2
5
10

B ecau se




o f r o u n d in g ,

P la n s

144

649

318

49
600
55
97
174
93
104
48
5
7
2
5
10

11
307
12
31
54
77
66
61

_

( 2)

o f in d iv i d u a l i t e m s

1 44

28
_
_
_
_
_
25
2
1
_

_
_
_
_
1 20
21
3
_

_

_

_

-

$ 2 3 i0. 10

sum s

W ork ers 1

28

11
4 51
12
31
54
77
66
181
22
4
2
1

S e e f o o t n o t e 1, t a b l e 1.
F e w e r th a n 5 0 0 w o r k e r s .
W e ig h te d b y n u m b e r o f w o r k e r s c o v e r e d .

NOTE:

O th er

R a ilr o a d
P la n s

1
2
3

o f p la n

T ota l

M o n t h l y b e n e f it in c lu d in g
s o c ia l s e c u r ity o r r a ilr o a d
re tire m e n t

m a y n ot eq u al to ta ls .

$ 2 6 1. 00

W ork ers 1

(2)
2
2
1
( 2)
$ 2 1 5 . 90

30
T a b le 14.

P r o v i s i o n s f o r E a r l y a n d D i s a b i l i t y R e t i r e m e n t a n d V e s t i n g in U n fu n d e d B a s i c
P e n s i o n P la n s b y I n d u s t r y , S p r in g 1 9 6 2
( W o r k e r s in t h o u s a n d s )
D is a b ilit y
re tire m e n t

E a r ly
r e tir e m e n t

T ota l
In d u stry

W ork ers 1

P la n s

P la n s

V e s tin g

W ork ers 1

P la n s

W ork ers 1

P la n s

W ork ers 1

A l l i n d u s t r i e s 13
2----------------------------------------------------------------

677

462

358

28 2

432

3 75

64

57

M a n u f a c t u r i n g ------------------------------------------------------

404

188

224

122

2 53

147

52

54

D u r a b l e g o o d s ----------------------------------------------------------------S t o n e , c l a y , a n d g l a s s p r o d u c t s -----------------------P r i m a r y m e t a l i n d u s t r i e s -----------------------------------F a b r i c a t e d m e t a l p r o d u c t s ---------------------------------O th e r d u ra b le g o o d s 4 5
---------------------------------------------

136
31
22
37
46

81
6
41
9
24

58
20
3 19
1
18

57
5
36
2
14

57
20
21
1
15

60
2
40
2
15

25

41

N o n d u r a b le g o o d s ---------------------------------------------------------F o o d a n d k i n d r e d p r o d u c t s ---------------------------------T e x t i l e m i l l p r o d u c t s ---------------------------------------------P r i n t i n g , p u b l is h i n g , a n d a l l i e d i n d u s t r i e s —
C h e m i c a l s a n d a l l i e d p r o d u c t s --------------------------O t h e r n o n d u r a b l e g o o d s ----------------------------------------

268
17
56
22
85
88

107
18
9
14
29
37

1 66
5 14
35
1
78
38

65
13
8
2
19
22

196
14
35
12
74
61

N o n m a n u f a c t u r in g ----------------------------------------------

263

274

134

161

R a i l r o a d t r a n s p o r t a t i o n ---------------------------------------------M o t o r t r a n s p o r t a t i o n -------------------------------------------------C o m m u n i c a t i o n s ------------------------------------------------------------U t i l i t i e s : E l e c t r i c a n d g a s ---------------------------------------W h o l e s a l e a n d r e t a i l t r a d e ---------------------------------------F i n a n c e , i n s u r a n c e , a n d r e a l e s t a t e --------------------O t h e r n o n m a n u f a c t u r in g i n d u s t r i e s 4----------------------

28
30
25
51
21
46
62

144
20
11
20
52
20
7

22
1
25
21
8
36
21

1
2
3
4
5
6

-

18
1
6

34
2
5

87
13
7
12
24
32

27
12

12
7

-

-

-

-

10
5

1
4

179

228

12

3

28
30
25
31
2
31
32

82
2
11
19
37
9
2

_

144
20
11
19
12
18
4

1

2

-

-

-

-

-

-

-

-

1
10

1
(6 )

S e e f o o t n o t e 1 , t a b l e 1. E a r l y a n d d i s a b i l i t y r e t i r e m e n t b e n e f i t s a r e a l s o p r o v i d e d b y s u p p l e m e n t a r y u n fu n d e d p e n s i o n p l a n s .
I n c l u d e s p l a n s c o v e r i n g f i r m s o p e r a t i n g in b o t h m a n u f a c t u r i n g a n d n o n m a n u f a c t u r in g i n d u s t r i e s n o t s h o w n s e p a r a t e l y b e l o w .
I n c l u d e s 4 p l a n s , c o v e r i n g 2 8 , 0 0 0 w o r k e r s , th a t a l s o p r o v i d e d " s p e c i a l " e a r l y r e t i r e m e n t .
In c lu d e s in te r in d u s t r y .
I n c l u d e s p l a n s c o v e r i n g 5 ,0 0 0 w o r k e r s th a t a l s o p r o v i d e d " s p e c i a l " e a r l y r e t i r e m e n t .
F e w e r th a n 500 w o r k e r s .

NOTE:

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

s u m s o f i n d iv i d u a l i t e m s m a y n o t e q u a l t o t a l s .

T a b l e \b. M i n im u m A g e a n d S e r v i c e R e q u i r e m e n t s f o r E a r l y R e t i r e m e n t in U n fu n d e d B a s i c P e n s i o n P l a n s , S p r in g 1 9 6 2 1

i ^ rk e£s- ir^thousa^dsj>
£\
M i n im u m a g e r e q u i r e m e n t '3
T ota l
M i n im u m s e r v i c e r e q u i r e m e n t 2

No age
re q u ire m e n t

A g e 50

A g e 60

A g e 55

A g e 65

P la n s W o r k e r s P la n s W o r k e r s P la n s W o r k e r s P la n s W o r k e r s P la n s W o r k e r s P l a n s W o r k e r s
A ll p la n s p r o v id in g f o r e a r ly
re tire m e n t
_
--------- ----------------------

—

N o s e r v i c e r e q u i r e m e n t ___ ___________ ____
3 y e a r s ------- -------------------- — ----- ----- 5 y e a r s . _ __ ____ _____________________ _
7 y e a r s __
------------------------------10 y e a r s _
_ _
---- -------- ----15 y e a r s ____________ _ -------- ----------- ----20 y e a r s
_____ ______ _ _____ _ _
25 y e a r s __________ __________________________ ____
30 y e a r s
__________ __ __ — ___________

3 58
29
1
10
10
55
72
72
56
53

282
12
3
4
2
23
70
39
15
113

12

4

8

49

55

252

198

4

10

2
8
1

_

_

_

_

_

-

1

-

4

8

6
34
12

1

-

-

-

-

-

1

1

15
9
23
1
1

11
3
4
2
16
28
10
13
110

_

-

9
1
10
10
39
41
37
54
51

49
20
22
6

-

■

(4 )
2

-

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7
2

"

"

1 S e e f o o t n o t e 1, t a b l e 8 .
2 F o r t h o s e p l a n s w h ic h s p e c i f i e d th a t a p e r i o d o f e m p l o y m e n t b e s e r v e d b e f o r e p a r t i c i p a t i o n in th e p l a n c o u l d b e g i n ,
th e m in i m u m s e r v i c e r e q u i r e m e n t i n c l u d e s th e p r e p a r t i c i p a t i o n s e r v i c e a n d th e r e q u i r e d p l a n m e m b e r s h i p s e r v i c e .
3 In 23 p l a n s , c o v e r i n g 3 0 , 0 0 0 w o r k e r s , a l t e r n a t i v e r e q u i r e m e n t s w e r e s p e c i f i e d ; th e a l t e r n a t i v e w it h th e e a r l i e s t a g e
r e q u i r e m e n t a t th e w o r k e r 's o p t i o n i s s h o w n , o r th e e a r l i e s t a g e o r n o a g e r e q u i r e m e n t i s u s e d i f n o w o r k e r o p t i o n w a s p e r ­
m it t e d .
In 19 p l a n s , c o v e r i n g 1 7 , 0 0 0 w o r k e r s , a g e r e q u i r e m e n t s w e r e 5 y e a r s l o w e r f o r w o m e n .
4 F e w e r th a n 5 0 0 w o r k e r s .
5 P la n s p e c i f i e d a g e 6 2 .
NOTE:

B ecause




o f r o u n d in g ,

sum s

o f in d iv i d u a l i t e m s

m a y n ot eq u a l to ta ls .

31
T a b le 16.

M i n im u m A g e a n d S e r v i c e R e q u i r e m e n t s f o r D i s a b i l i t y R e t i r e m e n t in U n fu n d e d B a s i c P e n s i o n P l a n s , S p r in g 1 9 6 2 1
( W o r k e r s in t h o u s a n d s )
M i n im u m a g e r e q u i r e m e n t
T ota l

M i n im u m s e r v i c e
r e q u ir e m e n t 1
2

N o age
re q u ire m e n t

A g e 45

3

A ge

A g;e 50

55

I n f o r m a t io n
n ot a v a ila b le

A g e 60

P l a n s W o r k e r s P la n s W o r k e r s P la n s W o r k e r s P la n s W o r k e r s P la n s W o r k e r s P la n s W o r k e r s P la n s W o r k e r s
A l l p l a n s w it h d i s a b i l i t y
r e t i r e m e n t ______ _____

4 432

N o s e r v ic e r e q u ire m e n t_
_
10 y e a r s ______________________
15 y e a r s ______________________
2 0 y e a r s ________ _____ ___
25 y e a r s _________________
3 0 y e a r s ---------- __ _____
I n f o r m a t io n n o t
a v a i l a b l e _________________

375

339

323

3

8

53

34

22

7

5

29
71
197
67
54
4

30
36
115
66
70
57

29
544
154
56
52
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30
26
101
43
66
57

.

.

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.

.

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1
-

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14
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10
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-

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1 S e e f o o t n o t e 1, t a b l e 8 .
2 F o r t h o s e p l a n s w h ic h s p e c i f i e d th a t a p e r i o d o f e m p l o y m e n t b e s e r v e d b e f o r e p a r t i c i p a t i o n in th e p la n c o u l d b e g i n ,
th e m in i m u m s e r v i c e r e q u i r e m e n t i n c l u d e s th e p r e p a r t i c i p a t i o n s e r v i c e a n d th e r e q u i r e d p l a n m e m b e r s h i p s e r v i c e .
The s e r v ­
i c e r e q u i r e m e n t w a s 5 y e a r s l o w e r f o r w o m e n in 4 p l a n s th a t c o v e r e d 7 , 0 0 0 w o r k e r s .
3 In 17 p l a n s , c o v e r i n g 2 4 , 0 0 0 w o r k e r s , a l t e r n a t i v e r e q u i r e m e n t s w e r e s p e c i f i e d ; th e o n e w it h th e e a r l i e s t a g e r e q u i r e ­
m e n t a t th e w o r k e r 's o p t i o n i s s h o w n , o r th e e a r l i e s t a g e o r n o a g e r e q u i r e m e n t i s u s e d i f n o w o r k e r o p t i o n w a s p e r m i t t e d .
In c lu d e s 7 p la n s , c o v e r in g 13, 000 w o r k e r s ,
th a t d i ff e r e n t ia t e d b e tw e e n n o n o c c u p a t io n a l a n d o c c u p a t io n a l d is a b ilit y
b e n e fit r e q u ir e m e n t s .
5 I n c l u d e s 1 p l a n w it h 1 7 , 0 0 0 w o r k e r s th a t r e q u i r e d I 2 V2 y e a r s o f s e r v i c e .
6 P la n s p e c i f i e d a g e 30 f o r p a r t i c i p a t i o n .
7 F e w e r th a n 5 0 0 w o r k e r s .
8 I n c l u d e s 1 p l a n w it h 1, 0 0 0 w o r k e r s t h a t s p e c i f i e d a g e 4 0 f o r p a r t i c i p a t i o n .
9 P la n s p e c i f ie d a g e 56.
NOTE:

B ecau se

o f r o u n d in g ,

su m s

o f in d iv i d u a l i t e m s

m a y n ot eq u a l to ta ls .

T a b l e 1 7 . D i s a b i l i t y R e t i r e m e n t B e n e f i t s P a y a b l e b y U n fu n d e d P e n s i o n P la n s to W o r k e r s
R e t i r i n g a t A g e 50 a n d E a r n i n g $ 4 , 8 0 0 P e r Y e a r f o r 20 Y e a r s o f F u t u r e S e r v i c e
b y T y p e o f P la n , S p r in g 1 96 2 1
( W o r k e r s in t h o u s a n d s )
B a s i c p la n

S u p p le m e n t a r y
p la n 2

A l l p la n s

P la n s

W ork ers

P la n s

O th er

R a ilr o a d

T ota l

M o n t h ly b e n e f i t

W ork ers

P la n s

W ork ers

P la n s

W ork ers

P la n s

W ork ers

A l l p l a n s w it h d i s a b i l i t y r e t i r e m e n t ------------------------

5 05

1, 127

432

375

28

1 44

404

231

73

752

P la n s f o r w h ic h b e n e f i t w a s n o t
c o m p u t a b l e --------------------------------------------------------------------P la n s f o r w h ic h b e n e f i t w a s c o m p u t e d -----------------N o b e n e f i t p r o v i d e d 3 ---------------------------------------------$ 1 a n d l e s s th a n $ 2 0 --------------------------------------------$ 20 a n d l e s s th a n $ 3 0 -------------------------------------------$ 30 a n d l e s s t h a n $ 4 0 -------------------------------------------$ 4 0 a n d l e s s th a n $ 5 0 -------------------------------------------$ 50 a n d l e s s th a n $ 6 0 -------------------------------------------$ 60 a n d l e s s th a n $ 7 0 -------------------------------------------$ 7 0 a n d. l e s s th a n $ 8 0 -------------------------------------------$ 80 a n d l e s s th a n $ 9 0 -------------------------------------------$ 90 a n d l e s s th a n $ 1 0 0 -----------------------------------------$ 100 a n d l e s s th a n $ 1 1 0 _______________ ,— ------- _
$ 1 1 0 a n d l e s s th a n $ 1 3 0 --------------------------------------$ 1 3 0 a n d l e s s th a n $ 1 4 0 --------------------------------------$ 140 a n d o v e r ------------------------------------------------------------

216
2 89
10
2
46
39
23
53
14
1
48
22
12
16
1
2

2 45
882
45
10
559
31
12
74
14
8
78
13
20
3
3
10

195
237
4
1
23
28
21
47
13
1
47
22
12
16
1
1

165
2 10
15
5
28
18
10
52
12
8
20
13
20
3
3
1

22
6
4
2
-

109
36
15
20
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173
231
1
21
28
21
47
13
1
47
22
12
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174
5
8
18
10
52
12
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20
13
20
3
3
1

21
52
6
1
23
11
2
6
1
1
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80
672
30
5
531
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2
22
3
58
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A v e r a g e m o n t h ly b e n e f i t 4 ------------------------------------------

$ 3 6 .0 0

$ 5 6 . 40

-

-

-

-

-

-

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$ : 14. 20

$ 6 5 . 10

r

________ 1

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8
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1

1 B a s e d o n a s t u d y o f 851 u n fu n d e d p e n s i o n p l a n s , in c lu d in g 6 7 7 b a s i c p l a n s , c o v e r i n g a p p r o x i m a t e l y 4 6 2 , 0 0 0 a c t i v e
a n d r e t i r e d w o r k e r s in I 9 6 0 , a n d 1 74 s u p p l e m e n t a r y p l a n s , c o v e r i n g a p p r o x i m a t e l y 9 0 4 , 0 0 0 a c t i v e a n d r e t i r e d w o r k e r s in I 9 6 0 .
2 I n c l u d e s n o n r a i l r o a d p la n s o n l y ; n o s u p p l e m e n t a r y p la n s w e r e r e p o r t e d b y e m p l o y e r s w h o a r e u n d e r th e R a i l r o a d R e ­
t ir e m e n t A c t.
3 N o p l a n b e n e f i t w a s p r o v i d e d u n d e r a s s u m e d c o n d i t i o n s b e c a u s e o f th e d e d u c t i o n o f s o c i a l s e c u r i t y o r r a i l r o a d r e t i r e ­
m e n t d is a b ilit y b e n e fit .
T h e s e p l a n s d o , h o w e v e r , p a y b e n e f i t s t o w o r k e r s e n t it l e d t o l e s s th a n th e F e d e r a l b e n e f i t p a y a b le
u n d e r th e a s s u m e d c o n d i t i o n s .
4 W e ig h te d b y n u m b e r o f w o r k e r s c o v e r e d .
NOTE:

B ecau se




o f r o u n d in g ,

s u m s o f in d i v i d u a l i t e m s

m a y not eq u al to ta ls .

32
T a b le 1 8. D i s a b i l i t y R e t i r e m e n t B e n e f i t s , I n c lu d in g S o c i a l S e c u r i t y o r R a i l r o a d R e t i r e m e n t D i s a b i l i t y
B e n e f i t , P a y a b l e t o W o r k e r s R e t i r i n g a t A g e 5 0 a n d E a r n i n g $ 4 , 8 0 0 P e r Y e a r f o r 20 Y e a r s o f
F u t u r e S e r v i c e U n d e r U n fu n d e d P e n s i o n P l a n s , b y T y p e o f P l a n , S p r in g 1 96 2 1
( W o r k e r s in t h o u s a n d s )
B a s i c p la n

S u p p le m e n t a r y
p la n 2

A l l p la n s
T ota l

M o n t h ly b e n e f i t
P la n s

A l l p l a n s w it h a d i s a b i l i t y r e t i r e m e n t
p r o v is io n
_____________________________________________

505

P l a n s f o r w h ic h b e n e f i t w a s n o t
c o m p u t a b l e - _________________________________ ______ ___
P l a n s f o r w h ic h b e n e f i t w a s c o m p u t e d — ________
L e s s th a n $ 1 4 0 _____________________________________
$ 140 a n d l e s s th a n $ 1 5 0 --------------------------------------$ 150 a n d l e s s th a n $ 1 6 0 --------------------------------------$ 160 a n d l e s s t h a n $ 1 7 0 --------------------------------------$ 170 a n d l e s s th a n $ 1 8 0 ----------------------- ------------$ 180 a n d l e s s th a n $ 1 9 0 --------------------------------------$ 190 a n d l e s s th a n $ 2 0 0 --------------------------------------$ 2 0 0 a n d l e s s th a n $ 2 1 0 --------------------------------------$ 2 1 0 a n d l e s s th a n $ 2 2 0 --------------------------------------$ 2 2 0 a n d l e s s th a n $ 2 35 --------------------------------------$ 2 3 5 a n d l e s s th a n $ 2 5 0 --------------------------------------$ 2 5 0 a n d l e s s th a n $ 2 65 --------------------------------------$ 2 6 5 a n d o v e r — ________________________ _________

W ork ers

2 16
289
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A v e r a g e m o n t h ly b e n e f i t 3 ------------------------------------------

1
2
3

P la n s

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9
16
27
37
20
30
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S e e f o o t n o t e 1, t a b l e 1 7 .
S e e f o o t n o t e 2, t a b l e 1 7.
W e ig h te d b y n u m b e r o f w o r k e r s c o v e r e d .

NOTE:

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

s u m s o f in d iv i d u a l i t e m s m a y n o t e q u a l t o t a l s . 1
5
4
3
2

T a b le 1 9. M i n im u m A g e a n d S e r v i c e R e q u i r e m e n t s f o r V e s t i n g
in U n fu n d e d B a s i c P e n s i o n P l a n s , S p r in g 1 9 6 2 1
( W o r k e r s in t h o u s a n d s )
M i n im u m a g e r e q u i r e m e n t
T ota l
M i n im u m s e r v i c e r e q u i r e m e n t 2

N o age r e q u ire m e n t

A ge 40

A g e 55

P la n s

W ork ers

P la n s

A l l p l a n s w it h v e s t i n g _______________

64

57

15

5

33

31

10
11
15
20
25

11
1
37
4
11

11
1
25
15
5

5

4

7
1
23
-

years
years
years
years
years

of
of
of
of
of

s e r v i c e __ ______________
s e r v i c e __________________
s e r v i c e __________________
s e r v ic e
s e r v i c e __________________

W ork ers

P la n s

-

-

10
-

1

36
41
26

-

-

W ork ers

P la n s

W ork ers

16

21

_

_

S1
4
11

1
15
5

1 S e e f o o t n o t e 1, t a b l e 8 .
2 F o r t h o s e p l a n s w h ic h s p e c i f i e d th a t a p e r i o d o f e m p l o y m e n t b e s e r v e d b e f o r e p a r t i c i p a t i o n in th e p l a n c o u l d b e g i n ,
th e m in i m u m s e r v i c e r e q u i r e m e n t i n c l u d e s th e p r e p a r t i c i p a t i o n s e r v i c e a n d th e r e q u i r e d p l a n m e m b e r s h i p s e r v i c e .
3 I n c l u d e s 1 p l a n w it h 2 , 4 0 0 w o r k e r s th a t s p e c i f i e d a g e 4 5 .
4 P la n p a r t i c i p a t i o n a g e 3 0 .
5 P la n s p e c i f ie d a g e 5 0.
NOTE:

B ecau se




o f r o u n d in g ,

su m s

o f in d iv i d u a l i t e m s

m a y n ot eq u a l to ta ls .

33
T a b le 2 0.

T ype

o f D ea th

B e n e fit

P r o v i d e d b y U n fu n d e d B a s i c P e n s i o n P l a n s , b y I n d u s t r y , S p r in g 1 96 2 1
( W o r k e r s in t h o u s a n d s )
T y p e o f d ea th b e n e fit

T ota l

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

_ --------

1 16

_

W ork ers

P la n s

W ork ers

54

18

11

10

51

88

_

_

77

36

23

18

54

18

28
1

18
2

7
-

10
-

21
1

8
2

-

-

-

-

2
15
10
49
1

5
9
2
18
2

2
5
16
-

5
4
8
-

10
10
33
1

4
2
10
2

-

-

10
38

(1 )
2
15

10
6

(2 )
8

32

7

-

-

7

'

39

53

28

_

-

11

10

6
15
1

__ —

D u r a b l e g o o d s - -------------------- —
F a b r i c a t e d m e t a l p r o d u c t s ---------E l e c t r i c a l e q u ip m e n t a n d
s u p p lie s
_ — ------- —
T r a n s p o r t a t i o n e q u ip m e n t —
O t h e r d u r a b l e g o o d s _______________
N o n d u r a b le g o o d 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 l a t e d i n d u s t r i e s — ----------O t h e r n o n d u r a b l e g o o d s __________

10
10
29

_

-

15
1

10
29

-

-

6
-

10
-

-

-

5

(2 )

N o n m a n u f a c t u r in g — _
R a i l r o a d t r a n s p o r t a t i o n _ _ _ ----C o m m u n i c a t i o n s ________________________
W h o l e s a l e a n d r e t a i l t r a d e ---------------F in a n c e , in s u r a n c e , an d r e a l
esta te
„
------------- ------- — —
O t h e r n o n m a n u fa c t u r in g
i n d u s t r i e s ----------- ----------------

1
2

W i d o w 's i b e n e f i t

P la n s

60

P la n s

W ork ers

P la n s

M a n u f a c t u r in g -

P a y m e n t c e r ta in

W ork ers

L u m p su m

In d u stry

43

6

1

1

1

11

3

11

3

S e e f o o t n o t e 1, t a b l e 8.
F e w e r th a n 5 0 0 w o r k e r s .

NOTE:

B ecause

T a b le 2 1 .

o f r o u n d in g ,

su m s

o f i n d iv i d u a l i t e m s

m a y not eq u al to ta ls .

T y p e s o f B e n e f i t P r o v i s i o n s in U n fu n d e d S u p p le m e n t a r y P e n s i o n P la n s b y I n d u s t r y , S p r in g 1 9 6 2
( W o r k e r s in t h o u s a n d s )
T y p e o f b e n e fit
S o c i a l s e ­ S u p p le m e n ­
c u r it y
ta l b e n e fit
P ast
O th er
(n o t a
a d ju s tm e n t
s e r v ic e
m in im u m )
a llo w a n c e
W ork W o rk ­
W ork ­
W ork W ork ­
W ork ­
W ork ­
W ork ­
P la n s
P la n s
P la n s
P la n s
P la n s
P la n s
P la n s
i P la n s
ers 1
ers 1
ers 1
ers 1
ers 1
ers 1
ers
ers1
T ota l

In d u s try

D is a b ilit y
r e tir e m e n t

M i n im u m
g u a ra n te e

D ea th
b e n e fit

__________________

174

904

73

752

34

603

29

93

13

49

42

48

20

35

8

77

M a n u fa c t u r in g ___________________

92

226

47

173

9

50

17

51

1

1

19

31

12

20

5

65

D u r a b l e g o o d s ___________________________
P r i m a r y m e t a l s i n d u s t r i e s ______
F a b r i c a t e d m e t a l p r o d u c t s ---------O t h e r d u r a b l e g o o d s _______________
N o n d u r a b le g o o d s ______________________
C h e m ic a ls a n d a ll ie d p r o d u c t s _
_
P e t r o le u m r e fin in g and
r e l a t e d i n d u s t r i e s ------------------------O t h e r n o n d u r a b l e g o o d s ________

32
9
12
11
60
5

54
17
9
28
172
82

25
8
11
6
22
3

42
16
7
19
132
70

6
5
1
3
1

2
6
3
. 1
3 ' 1
44
15
2
7

5
1
3
46
12

1
-

_

5
1
1
3
14
2

9
2
1
6
22
11

1
1
11
-

1
1
19
-

4
1
3
1
1

7
1
6
58
58

25
30

60
31

1
18

35
27

1
1

35
1

11
2

13
21

1

1

10
1

10
1

1
18

-

-

2
10

-

-

-

-

N o n m a n u f a c tu r i n g _____________

81

642

26

578

25

553

12

42

11

11

23

16

8

14

3

12

M o t o r t r a n s p o r t a t i o n __________________

1
18
2 22
2

3
520
70
30

1
18
5
1

3
520
48
5

_

_

_

_

_

_

_

_

1

3

1

3

18
1
1

520
28
5

6
1

15
25

_

12
_

6

2

11

1

8

_

_
-

_

_

_

_

_

27

8

1

2

5

5

2

-

-

10

2

5

1

1

1

11

11

-

-

-

-

-

11

11

1

8

-

-

-

-

1

37

_

_

_

_

_

1

37

_

_

_

_

_

_

A l l i n d u s t r i e s ______

U t i l i t i e s : E l e c t r i c a n d g a s __________
W h o l e s a l e a n d r e t a i l t r a d e __________
F in a n c e , in s u r a n c e , a n d r e a l
e s t a t e ___________________________________
O t h e r n o n m a n u fa c t u r in g
i n d u s t r i e s ______________________________
I n t e r i n d u s t r y _______________

1
2
3

_

S e e f o o t n o t e 1, t a b l e 1.
In clu d e s 1 p la n , c o v e r in g
F e w e r th a n 5 0 0 w o r k e r s .

NOTE:

B ecau se




o f r o u n d in g ,

2 8 ,0 0 0
sum s

w ork ers,

th a t a l s o

o f in d iv i d u a l i t e m s

(3 )

_

c o n t a in e d a n e a r l y

1
-

r e tir e m e n t p r o v is io n .

m a y not eq u a l to ta ls .

34
T a b le 2 2 .

M i n im u m A g e a n d S e r v i c e R e q u i r e m e n t s f o r D i s a b i l i t y R e t i r e m e n t
in U n fu n d e d S u p p le m e n t a r y P e n s i o n P l a n s , S p r in g 1 9 6 2 1
( W o r k e r s in t h o u s a n d s )
M i n im u m a g e r e q u i r e m e n t 3
T ota l

N o age
r e q u ire m e n t

M i n im u m s e r v i c e r e q u i r e m e n t 2
P la n s
A l l p la n s w it h d i s a b i l i t y r e t i r e m e n t -------No
10
15
20
30

473
14
3
42
13
1

s e r v i c e r e q u i r e m e n t _______ _____ —
y e a r s ------------------------------------------------------------y e a r s ________________________________________
y e a r s -----------------------------------------------------------y e a r s -------------------------------------------------------------

W ork ers
752
56
20
6 36
11
28

P la n s
67

W ork ers

A g e 45
P la n s

A g e 50

W ork ers

P la n s

A g e 55

W ork ers

P la n s

W ork ers

691

1

28

4

29

1

4

5 14
3
6 39
11

56
20
611
4

_

_

_

_

_

.

-

-

-

-

2
2

22
7

1

4

-

-

-

“

"

-

-

-

-

7 1

-

28

1 B a s e d o n a s t u d y o f 1 7 4 u n fu n d e d s u p p l e m e n t a r y p e n s i o n p l a n s , c o v e r i n g a p p r o x i m a t e l y 9 0 4 ,0 0 0 a c t i v e a n d r e t i r e d w o r k e r s
I9 6 0 .
2 F o r t h o s e p la n s w h ic h s p e c i f i e d th a t a p e r i o d o f e m p l o y m e n t b e s e r v e d b e f o r e p a r t i c i p a t i o n in th e p la n c o u l d b e g i n , th e
m i n i m u m s e r v i c e r e q u i r e m e n t i n c l u d e s th e p r e p a r t i c i p a t i o n s e r v i c e a n d th e r e q u i r e d p la n m e m b e r s h i p s e r v i c e .
The s e r v ice
r e q u i r e m e n t w a s 3 y e a r s g r e a t e r f o r w o m e n in 1 p la n th a t c o v e r e d 2 8 , 0 0 0 w o r k e r s .
3 In 21 p l a n s , c o v e r i n g 6 1 , 0 0 0 w o r k e r s , a lt e r n a t i v e r e q u i r e m e n t s w e r e s p e c i f i e d ; th e o n e w it h t h e e a r l i e s t a g e r e q u i r e m e n t
a t t h e w o r k e r * s o p t i o n i s s h o w n , o r th e e a r l i e s t a g e o r n o a g e r e q u i r e m e n t is u s e d i f n o w o r k e r o p t i o n w a s p e r m i t t e d .
• 4 I n c l u d e s 9 p l a n s , c o v e r i n g 2 8 , 0 0 0 w o r k e r s , th a t d i f f e r e n t i a t e d b e t w e e n n o n o c c u p a t i o n a l a n d o c c u p a t i o n a l d i s a b i l i t y
r e q u ire m e n ts .
5 I n c l u d e s 1 p la n w it h 7 ,0 0 0
w ork ers
th a t r e q u i r e d
2 y e a rs of s e r v ic e .
6 I n c l u d e s 1 p la n w it h 2, 0 0 0
w ork ers
th a t r e q u i r e d
16 y e a r s o f s e r v i c e .
7 P la n p r o v i d e d th a t a g e p lu s
s e r v i c e m u s t e q u a l 7 5 , w it h i n i t i a l m i n i m u m s o f a g e 4 5 a n d 8 y e a r s o f s e r v i c e .
in

NOTE:

B ecau se




o f r o u n d in g ,

sum s

of

in d iv i d u a l i t e m s m a y n o t e q u a l t o t a l s .

☆ U. S. GOVERNMENT PRINTING OFFICE : 1964 O - 729-806

R e c e n t BLS P u blication s on E m p lo y e e B en efit Plans

ulletin
umber

Pensions

1284

Pension Plans Under C ollectiv e Bargaining: Normal Retirement, Early
and Disability Retirement, Fall 1959.

1307

Digest of One-Hundred Selected Pension Plans Under C ollectiv e Bargaining,
Spring 1961.

1326

Multiemployer Pension Plans Under C ollective Bargaining, Spring 1960.

1334

Pension Plans Under C ollectiv e Bargaining: Benefits for Survivors,
Winter 1960-61.

1373

Digest of 50 Selected Pension Plans for Salaried Employees, Spring 1963.
R ecent Changes in Negotiated Pension Plans.
May 1962. (Reprint 2392. )

Monthly Labor Review,

Preliminary Release: Prevalence of M ultiemployer Pension Plans Under
C ollectiv e Bargaining, Spring 1960. (February 1961. )

Health and Insurance
1250

Health and Insurance Plans Under C ollectiv e Bargaining: A cciden t and
Sickness Benefits, Fall 1958.

1274

Health and Insurance Plans Under C ollectiv e Bargaining: Hospital Benefits,
Early 1959.

1280

Health and Insurance Plans Under C ollectiv e Bargaining: Surgical and
M edical Benefits, Late Summer 1959.

1293

Health and Insurance Plans Under C ollectiv e Bargaining: Major M edical
Benefits, Fall 1960.

1296

Health and Insurance Plans Under C ollective Bargaining: Life Insurance
and A ccidental Death and Dismemberment Benefits, Early Summer 1960.

1330

Digest of One Hundred Selected Health and Insurance Plans Under
C ollective Bargaining, Winter 1961-62.

1377

Digest of 50 Selected Health and Insurance Plans for Salaried Employees,
Spring 1963.
R ecent Changes in Negotiated Health and Insurance Plans, Monthly Labor
Review, September 1962. (Reprint 2402. )

Other
1325

Digest of Profit-Sharing, Savings, and Stock Purchase Plans,
Winter 1961-62. (20 Selected Plans. )

1365

Digest of Nine Supplemental Unemployment Benefit Plans, Early 1963.
Health, Insurance, and Pension Plan Coverage in Union Contracts,
Late 1960. BLS Report 228.