Word: pensionable
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Dates: during 1950-1959
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...general, industrial pension plans are either contributory (employer & employee share the cost of the plan), or noncontributory (employer pays the full cost). Theoretically, either system may be financed and maintained on a pay-as-you-go basis, or funded (a reserve fund is set up to guarantee payments in good & bad years alike). Some plans-usually the contributory type-allow an employee to build up credits ("vesting"), and cash them in if he leaves the company before retirement. Still others permit an employee-should he leave the company before retirement-to leave his vested share in the company plan, collect...
While Social Security is a basically simple pension system, private industry plans vary greatly, and are enormously com plex because of the varying ages of workers, employment turn over, profits, and a score of other factors in every company...
...contribution is kept in cash or Government bonds, thus guaranteeing that he will get back at least what he put in. The company's share is used to buy Sears any thus the employees benefit from dividends and any increase in the stock's value. (The pension fund owns 21% of Sears stock, and is the company's largest stockholder...
...company more successful, the payoffs to retiring employees have jumped sharply. Sample payoff last year: a $4,600-a-year clerk who had contributed $3,561 to the fund in 34 years got $95,626. The technical drawback to the plan is that most of the employees' pension eggs are in one basket. But under the circumstances, Sears and its employees are not worried: they do not know where they could find a more productive basket...
...biggest-and among the oldest-of the noncontributory plans are those of the Bell system-A.T. & T. and its subsidiaries-which roll sickness, accident, disability, death and pension benefits all into one jumbo package. Bell started the plans in 1913 on a pay-as-you-go basis, but in 1927 started setting up a reserve fund for pensions ("funding") because it thought the method sounder. (A.T. & T. now has more than $1 billion in its pension funds.) In computing Bell pensions, an employee's length of service is taken as a percentage (e.g., 20 years = 20%) and multiplied...