Radio age research, manufacturing, communications, broadcasting, television (1941)

RCA Inaugurates Retirement Plan MOKE THAN S5 PER CENT OF ELIGIBLE EMPLOYEES ENROLL FOR PARTICIPATION —BENEFITS INCLUDE PENSIONS AND ANNUITIES FOR LIFE — COMPANY MATCHES MEMBERS' CONTRIBUTIONS ENROLLMENT in Radio Cor- poration of America's new- employee Retirement Plan, an- nounced by Brig. Gen. David Sar- noff. Pre.'iident, at RCA's 25th An- niversary Dinner on December 1, totaled more than 85 per cent of all eligible employees at the year end, and was expected to go still higher, according to officials of the Company. The plan provides pen- sions and annuities for life to members. In both Radiomarine Corporation of America and RCA Institutes, the enrollment was 100 per cent of eligible employees; in RCA Lab- oratories, it was 97 per cent; in the National Broadcasting Company, 90 per cent: in R.C.A. Communica- tions, Inc., 90 per cent, and in the RCA Victor Division, 83 per cent. Final reports from some depart- ments and divisions have not yet been received. Participation Voluntary Membei-ship in the plan, which became effective December 1, 1944, subject to approval by RCA stock- holders and the U. S. Treasury De- partment, is open to all persons regularly employed by RCA and its domestic subsidiaries who have reached the age of 25 and hav'e com- pleted three years of service. Par- ticipation is voluntary. Benefits, which are designed to supplement Social Security, nor- mally start at age 65 and consist of: 1. The pension, which is to be financed entirely by the employer and amounts to ^4 of 1 per cent of the first $250 of the member's monthly earnings on November 30. 1944, plus 114 per cent of such earnings in excess of $250, for each year of continuous service prior to December 1, 1944, up to 20 years after excluding the first three years of service and any service rendered prior to age 25. 2. The contributory annuity, which depends upon the amount of combined contributions of the em- ployee and the employer made at each age and the annuity rates then in effect. Each member will con- tribute 2 per cent of the first $35 of basic weekly earnings, plus 4 per cent of the next $25. plus 6 per cent of basic weekly earnings in excess of $60. The Company contributes a like amount and the combined contribu- tions will be used to purchase con- tributory annuities for each mem- ber. The RCA Retirement Plan is de- signed to provide in tj-pical cases of employees having long service, retirement benefits which, with So- cial Securit.v payments, will ap- proximate one-third to one-half pay. Special provisions are made un- der the plan for optional retirement benefits, and benefits in case of death or other termination of serv- ice. While a contributory annuity normally provides an income pay- able for life of the member, his Ijeneficiary will receive the differ- ence if, at his death, the annuity payments received by him have not equalled the amount of his own con- tributions plus interest to his re- tirement date. The pension nor- mally provides an income for the life of the member only. Optional annuity and pension benefits available under the plan are: 1. A joint and survivor annuity providing for reduced retirement benefit payments to the member dur- ing his lifetime and for the con- tinuance of such payments after the member's death, in full or in one-half the amount received by the member, to a joint annuitant named by him for life. 2. An adjusted annuity for mem- bers who retire before age 65, pro- viding larger payments until age 65 to take account of the fact that Social Security benefits do not be- gin until that age, and smaller pay- ments afterwards. In the event a member dies be- fore retirement, his beneficiary re- ceives the full amount he has con- tributed, with interest. The present interest rate, which is guaranteed for all contributions made before December 1, 1949, is 2 per cent compounded annually. The plan also provides that upon termination of service, an employee may withdraw the amount of his own contributions with interest. Paid-up Annuities If the employee does not with- draw his contributions upon ter- mination of service after five years of contributory membership, ac- cording to the plan he will receive the paid-up annuity purcha.sed by both his and the employer's con- tributions. Should termination of service oc- cur after ten years of contributory membership and after attainment of age 50, he will receive not only the paid-up annuity purchased by both his and the employer's con- tributions but also a right to any pension financed for him for serv- ice prior to December 1, 1944. The paid-up annuity or pension may commence any time after age 55. The annuities will be purchased from The Equitable Life Assurance Society of the United States, under the terms of a Group Annuity Contract, and the pensions will be financed with .J. P. Morgan & Com- pany, Inc., as Trustee, under a Pen- sion Trust Agreement. Among those participating in the plan are employees of the Radio Corporation of America, including RCA Victor Division and RCA Lab- oratories; National Broadcasting Company, Inc.; R.C.A. Communica- tions, Inc.; Radiomarine Corpora- tion of America, and RCA Insti- tutes, Inc. [RADIO AGE II]