D igest of

Profit-Sharing,

Savings, and Stock

Purchase Plans,

Winter 1961-62

(2 0 Selected Plans)

Bulletin No. 1325

UNITED STATES DEPARTMENT OF LABOR Arthur J. Goldberg, Secretary 

BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner

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Federal Reserve Bank of St. Louis
Digest of

Profit-Sharing, Savings,

and Stock Purchase Plans

Winter 1961-62

(20 Selected Plans)

Bulletin No. 1325

April 1962

UNITED STATES DEPARTMENT OF LABOR Arthur J. Goldberg, Secretary

BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner

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Preface

This bulletin describes the principal features of 

20 selected profit-sh arin g, savin gs, and stock purchase 

plans in effect in the winter of 1961-62. It was p r e ­

pared in response to inquiries about such plans that the 

Bureau of Labor Statistics continuously receives from 

individuals and organizations at home and abroad, and 

as p art of the Bureau* s continuing p ro g ra m of em p lo y eebenefit plan studies.

M ost of the plans in this digest are well known; 

the others were selected because they illustrate different 

m eans of providing benefits to w orkers. These plans are 

not presented as typical or model plans or a s a re p re ­

sentative sample of all plans in effect. All of the plans 

summarized cover production and related workers or nonsupervisory workers; some also cover salaried and supervisory employees.

The cooperation of the companies who kindly 

furnished information about their plans is gratefully a c ­

knowledged. This d igest w as p rep are d in the B u r e a u ’ s 

Division of Wages and Industrial Relations by Dorothy R. 

Kittner, under the supervision of Donald M. Landay.

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Contents

Page

Explanatory notes -------------------------------------------------------------------------------------- 1

P ro fit-sh arin g plans:

A m e r i c a n M o to r s C o rp. ------------------------------------------------------------------------- 3

A m erican Velvet Co. (cash bonus p la n )--------------------------------------------------- 5

A m e r i c a n V e lv et Co. ( d e f e r r e d p l a n ) ------------------------------------------------------ 6

P h ilip M o r r i s , Inc. -------------------------------------------------------------------------------- 7

P ro fit-sh arin g and savings plans:

E astm an Kodak Co. (cash bonus p la n )---------------------------------------------------- 8

E astm an Kodak Co. (savin gs and investm ent plan) --------------------------------- 9

F e d e r a t e d D e p a r tm e n t S t o r e s , Inc. ------------------------------------------------------- 10

P r o c t e r and G a m b le Co. , The --------------------------------------------------------------- 12

S e a r s , R o e b u c k and Co. ------------------------------------------------------------------------- 15

S ta n d a r d O il Co. of C a lifo r n ia --------------------------------------------------------------- 17

Savings plans:

E. I. Dupont de N e m o u r s Co. ----------------------------------------------------------------- 18

G e n e ra l E l e c t r i c Co. ( s a v i n g s and s e c u r it y p r o g r a m ) -------------------- 19

G e n e r a l E l e c t r i c Co. ( s a v i n g s and sto c k bo n u s plan) -------------------- 20

Gulf Oil C o rp. ----------------------------------------------- 21

P a c i f i c G a s and E l e c t r i c Co. ----------------------------------------------------------------- 23

S o c o n y -M o b il Oil Co. , Inc. ------------------------------------------------------------------- 24

Swift and Co. ----------------------------------------------------------------------------------------- 26

Union C a r b id e C o rp. ---------------------------------------------------------------------------- 28

Stock p u rch ase plan:

A m erican Telephone and T elegraph Co. ------------------------------------------------- 29

Stock purch ase and savings plan:

G e n e ra l F o o d s C o rp. ---------------------------------------------------------------------------- 30

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Digest of Selected Profit-Sharing, Savings, and Stock Purchase Plans,

Winter 1961—62

Explanatory Notes

This d igest su m m arize s the m ajo r p rov ision s of selected p ro fit-sh arin g, 

sav in gs, stock p u rch ase, and sim ilar plans for wage and sa la ry em ployees. B r ie f 

explanations of the te rm s u se d in the su m m a ry outlines a r e se t forth below . It 

m u st be e m p h asized that a su m m a ry of a plan m u st n e c e s s a r ily om it m any fe a tu re s 

and adm in istrativ e details em bodied in the plan and tru st agreem en t which govern 

its operation.

Type of P lan .

P r o f i t - S h a r i n g P l a n . A p la n r e q u ir in g the c o m p a n y to p a y into a 

fund a p a r t of it s annu al n et p r o fit , which i s c r e d it e d to e ac h p a r t i c i p a n t 1 s 

account— usually in proportion to his annual com pensation. The contribution 

is invested in stocks and bonds. If participants contribute, the plan is called 

a profit-sh arin g and savin gs plan .

S a v in g s P l a n . A p la n r e q u ir in g the p a r t i c i p a n t s a s w e ll a s the e m ­

ployer to contribute. The w o rk e r’ s savin gs are usually invested in U. S. 

Savings Bonds and the em p lo y er’ s bonus, com m only a percen tage of the 

w o rk e r's contribution, in stocks and bonds. T hese plans are often called 

a ’’th rift p lan , ” o r , w h e re the e m p l o y e r ’ s bo n u s is in co m p a n y sto c k , a 

"stock bonus plan. "

S to c k P u r c h a s e P l a n . A p la n th at p e r m i t s p a r t ic ip a t in g e m p lo y e e s 

to p u rch ase, often through payroll deductions, sh a re s of company stock, 

usually at le ss than the prevailing m ark et p rice.

P lan s identified by two or m o re te rm s include elem ents of two or m ore 

of the plan types d escrib ed above. Som e plans of either of the first two types 

provide retirem en t incom es to participants through p u rch ase of annuities with the 

a ss e ts in p articip an ts' a c c o u n ts.1

E f f e c t iv e D a t e . The e ffe c tiv e d ate of the o r i g i n a l p r o v i s i o n s o f the plan .

D ate of L a t e s t A m e n d m e n t. E f f e c t iv e d ate of the m o s t r e c e n t a m e n d m e n ts 

to the plan. This d igest reflects p rov ision s in effect in the winter of 1961-62.

P a r t i c i p a n t s . W o r k e r s e lig ib le to p a r t i c i p a t e in p lan . P a r t i c ip a t i o n , 

except where noted, is voluntary in plans requiring w orker contributions.

P a r t i c i p a n t ’s C o n trib u tio n . T he am o u n t o r p e r c e n t a g e of e a r n in g s a 

participant m u st contribute. Conditions under which a w orker m ay tem p orarily 

discontinue his contribution are not d escrib ed in this digest.

1 S e e the p la n s of the follow in g c o m p a n ie s : E a s t m a n K o d a k Co. ; F e d e r a t e d

D e p a r tm e n t S t o r e s , Inc. ; G u lf O il C o rp . ; P h ilip M o r r i s , Inc. ; The P r o c t e r and 

G a m b le Co. ; S e a r s , R o e b u c k and Co.

1

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C o m p a n y 1 s C o n trib u tio n . T he f o r m u la d e te r m in in g the c o m p a n y 's c o n ­

tribution.

D ist r ib u tio n of C o m p an y C o n trib u tio n . The f o r m u l a d e te r m in in g how the 

com pany’ s contribution is allocated to each p artic ip an t’ s account.

In v e stm e n t of F u n d ’s M o n ie s . The type of in v e s t m e n t p e r m i t t e d u n d e r 

the p la n (e. g. , U. S. S a v in g s B o n d s , co m p a n y s to c k , n o n c o m p a n y s to c k , e t c . ) , 

and lim itations, if any, on the amount of money that can be invested in each type.

W ith d raw al of M oney F r o m F u n d . The co n d itio n s u n d e r which an a c t iv e ly 

em ployed participant m ay withdraw m oney from the fund and the restrictio n s on 

the amount that m ay be withdrawn. If a participant w ithdraw s totally or p a r ­

tially, he is usually prohibited from participatin g in the plan for a specified period.

Paym ent F ro m Fund in C ase of R etirem ent, D isability, Death, and Other 

S p e c i f ie d R e a s o n s . T he am o u n t c r e d it e d to the p a r t i c i p a n t ’ s a c c o u n t to w hich 

he or his b en eficiary is entitled on term ination of em ploym ent for the reaso n s 

specified. The disability benefits in this section are those payable to disabled 

p articip an ts. The benefit amounts are due the participant or his b en eficiary in 

a single lum p-su m paym ent, un less otherw ise indicated.

Vesting (C redits or P aym ents F ro m Fund in C ase of Separation for Other 

R e a s o n s ). T he am o u n t of co m p a n y c o n trib u tio n s c r e d it e d to a p a r t i c i p a n t ’ s a c ­

count to which a participant is entitled if his em ploym ent term in ates for reaso n s 

o th e r than th o se c ite d u n d e r p a y m e n t f r o m fund in c a s e o f r e t i r e m e n t , d i s a b i l i t y , 

death, and other specified r e a so n s.

F o r f e i t u r e s . The f o r m u la d e te r m in in g the a llo c a t io n of c o m p a n y c o n ­

tributions forfeited by p articip an ts— usually on term ination of employm ent.

P r o v i s i o n in I ll u s t r a t iv e Union A g r e e m e n t . T he p r o v i s i o n qu o ted i l l u s ­

trates how the plan is re fe rre d to in one or m o re of the com pany’s current co llective bargaining agreem en ts.

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Profit-Sharing Plans

N am e of plan: A m erican M otors C o rp .--- Union P r o g r e ss Sharing Plan.

E ffective date: October 1961.

P articip an ts: All em ployees represen ted by the United Autom obile W orkers 

(A FL-CIO ) and other unions recognized by company as b a r ­

gaining agents.

P a r tic ip a n ts

contribution:

None.

C o m pan y* s 

contribution:

10 p e r c e n t of p r o f i t - s h a r i n g fund b a s e 1 in c a s h ; and 5 p e r c e n t 

of p ro fit-sh arin g fund b ase in company com m on stock.

D istribution 

of co m p an y * s 

contribution:

10 p e r c e n t of p r o f i t - s h a r i n g fund b a s e , 1 l e s s the am o u n t r e q u ir e d 

to be p a id to the co m p an y * s e m p l o y e e - p e n s io n t r u s t , 1 2 to be u s e d 

as follow s:

F i r s t — to m e e t additional in su ra n ce c o st for ensuing y e a r;

Second---to e sta b lish a n d /o r in c r e a s e a contingency r e s e r v e ;

T hird— an amount equal to Vi6 of the m ax im u m funding of the 

supplem ental unem ployment benefit fund for the month 

of D ecem ber of the current y ear tra n sferre d to the 

sp ecial account of the SUB fund; and the rem ain der, 

if any, to be put in a gen eral re se rv e .

C o m p an y c o m m o n s t o c k 3 to be c r e d it e d to e ac h in d iv id u al e m ­

ployee in m anner determ ined by the joint com m ittee.

W ithdrawal 

of money 

from fund:

To be determ ined by joint com m ittee.

Paym ent from 

fund in c a se of 

retirem ent, 

death, or 

other reaso n s:

To be determ ined by joint com m ittee.

Vesting: To be determ ined by joint com m ittee.

1 C o n so lid a t e d net annu al e a r n in g s a s a d ju st e d , l e s s 10 p e r c e n t of s t o c k ­

h o l d e r s 1 in v e s tm e n t , a s a d ju st e d a s of begin n in g of y e a r .

2 T he am o u n t r e f e r r e d to i s the annu al co n trib u tio n c o m p a n y m u s t m a k e

to the em ployee-pension tru st with resp ect to any in c re a se in cost attributable 

to the extension and im provem ent in the pension plan p ro v isio n s as amended 

Septem ber 6, 1961.

3 S e e nc o m p a n y 1 s co n trib u tio n . M

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P a r t i c i p a n t s ’ 

participation 

in plan adm inistration

P ro v isio n in 

illu strativ e 

union a g r e e ­

ment:

A m e r i c a n M o to r s C o rp .— Union P r o g r e s s S h a r in g P la n — Continued

Joint com m ittee, consisting of six m em b ers appointed by the 

union and six appointed by company, is respon sib le for the d is ­

trib u tio n of a s s e t s r e p r e s e n t e d by the c o m p a n y 1 s c a s h c o n t r i ­

bution under the plan.

Joint com m ittee, consisting of three m em b ers appointed by the 

union and three by the company, is respon sib le for im plem enting 

the stock portion of the plan.

National collective bargaining agreem en t with the United A utom o b ile W o r k e r s (A F L —CIO), A r t i c l e II—A, e n te re d into S e p ­

tem b er 6, 1961, p ro v id e s:

"Subject to the approval of its board of d ire cto rs and also of its 

s t o c k h o l d e r s , if , d e e m e d n e c e s s a r y o r a d v is a b l e . . . ,

the c o m p an y w ill e s t a b l i s h a p r o g r e s s s h a r in g p la n . . . which

i s . . . m a d e a p a r t of th is a g r e e m e n t a s is fu lly s e t out h e r e in 

for the purpose of sharing the p ro g r e ss of the company with 

e m p lo y e e s c o v e r e d by the p la n . . .

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Name of plan: A m erican Velvet Co.

P rofit-Sh arin g Benefit (cash bonus plan). 1

Effective date: D e c e m b e r 1, 1940.

P a rtic ip a n ts: E m ployees, including forem en (but excluding o fficers, execu ­

tives, and salesm en ), with 160 hours of work during year.

P articip an t’ s 

contribution:

None.

C om pan y’ s 

contribution:

18 p e rc e n t of net annual p rofit.

Distribution 

of com pany's 

contribution:

Proportionate to w ages earned during year. D istribution is 

m ade annually.

P rov isio n in

illu strative

union

agreem ent:

C o lle c tiv e b a r g a in in g a g r e e m e n t with L o c a l 110, T e x t ile W o rk e rs 

Union of A m eric a, Section 10, dated A ugust 30, 1961, p ro v id es:

"In addition to the w ages provided for in this agreem en t there 

shall be paid, distributed an d /o r set asid e annual additional 

com pensation of tw enty-seven (27) p ercen t of the net profits 

earned by the company during each fisc a l y ear during the term 

of th is a g r e e m e n t a s fo llo w s: . . .

"Eighteen (18) percent of such net profits shall be paid over and 

d iv id e d am o n g a ll e lig ib le e m p lo y e e s . . . " 1 2

1 A d e f e r r e d p r o f i t - s h a r i n g p la n is a l s o in e ffe c t. (See p age 6.)

2 The r e m a in in g 9 p e r c e n t is u s e d to p r o v id e the d e f e r r e d p r o f i t - s h a r i n g 

benefit.

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Nam e of plan:

Effective date: 

P a rtic ip a n ts:

A m erican Velvet Co.

A m e r i c a n V e lv et Fu nd ( d e f e r r e d p r o f i t - s h a r i n g plan ). 1 

August 16, 1947.

E m plo yees, including forem en (but excluding o fficers, execu ­

tives, and salesm en ), with 160 hours of work during y ear.

P a rtic ip a n t's 

contribution:

None.

C om pan y's 

contribution:

9 p e r c e n t of net an nu al p ro fit.

Distribution 

of com pany's 

contribution:

Proportionate to w ages earned during y ear.

Investm ent of 

fund's m onies:

Stocks and sec u rities (not in company).

W ithdrawal of 

money from fund 

during tem porary layoff:

With 10 or m o re y e a r s of s e r v ic e , while receivin g State UI b e n e ­

fi t s — $ 1 0 p e r w eek ; t h e r e a f t e r , $ 4 0 p e r w eek . M a x im u m — $ 1,300.

Paym ent from 

fund in case of— 

R etirem ent or 

disability:

100 percent payable in 120 monthly in stallm en ts if amount is 

over $ 2 ,4 0 0 , in lump sum if le ss; if participant re tire s at age 

60 (age 55 for women), paym ent d e fe rre d until age 65.

Death:

Layoff:

100 percent.

E m p lo y ees m ay choose either (1) 100 p e rc en t plus annual rea d ju s t m e n t s , 1 2 d e f e r r e d until a g e 65,

or

(2) with l e s s than 10 y e a r s of s e r v ic e — 50 p e rc e n t im m e d ia te ly

and rem ain d er fo rfeited ; with 10 or m o re y e a r s of s e r v ic e ---

50 percen t im m ediately and rem ain der deferred until age 65.

V e s t i n g : 

F o r fe itu r e s:

With l e s s than 10 y e a r s of s e r v ic e — 50 p e rc e n t im m e d iate ly and 

re m a in d e r fo rfeited ; with 10 or m o re y e a r s of s e r v ic e — 50 p e r ­

cent im m ediately and rem ain der d eferred until age 65.

Credited to account of rem aining participan ts.

P rov isio n in 

illu strativ e

Collective bargaining agreem en t with L o cal 110, Textile W orkers 

Union of A m eric a, Section 10, dated A ugust 30, 1961, p ro v id e s:

union

agreem ent: "In addition to the w ages provided for in this agreem en t there 

shall be paid, distributed an d /o r set aside annual additional 

com pensation of tw enty-seven (27) percen t of the net p rofits 

earned by the company during each fisc a l y ear during the term 

of this agreem en t as follow s:

"Nine (9) p ercen t of such net p ro fits sh all be paid into the p rofitsharing plan and tru st fund known as the A m erican Velvet Fund 

e s t a b l i s h e d by the a g r e e m e n t of A u g u st 16, 1947 . . . " 3

1 A c a s h p r o f i t - s h a r i n g b e n e fit p la n i s a l s o in e ffe c t. (See page 5.)

2 R e a d ju s t m e n t s r e su ltin g f r o m r e v a lu a t io n of fund and annual c r e d i t fo r 

accum ulated earnings and fo rfeitu res.

3 The r e m a in in g 18 p e r c e n t is u s e d to p r o v id e the c a s h p r o fit - s h a r in g b en efit.

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Name of plan: Philip M o rris, Inc.

D eferred P rofit-Sh arin g Plan.

Effective date: O ctober 5, 1955.

Date of latest 

amendm ent:

Novem ber 30, I960.

P a rtic ip a n ts: Fu ll-tim e w orker em ployed 24 months, excluding em ployees of 

nontobacco divisions.

P a r tic ip a n t’ s 

contribution:

None.

C o m p a n y ' s 

contribution:

3 p e r c e n t of c o n so lid a te d annual in c o m e , exc lu d in g a ll o r p a r t 

of nontobacco incom e.

Distribution of 

c o m p a n y ' s 

contribution:

P r o p o r t io n a t e to p a r t i c i p a n t 1 s c o m p e n sa t io n d u rin g y e a r .

Investm ent of 

fu n d 1 s m o n ie s :

No lim itation; m ay be invested in co m p an y 's secu rities.

Withdrawal 

of money 

from fund:

Not perm itted.

Paym ent from 

fund in case of 

term ination of 

employm ent for 

any reason:

100 percent of p articip an t's account; in cash (lump sum or installm en ts) or an annuity, at p rofit-sh arin g co m m ittee's option.

V esting: 100 percent of p a rtic ip a n t's account.

F o rfe itu re s: None.

P rov isio n in

illu strative

union

agreem ent:

C ollective bargaining agreem en ts with Tobacco W orkers Intern atio n al Union, L o u i s v i l l e , Ky. , and R ich m o n d , V a. , e ffe c tiv e 

Ja n u a r y 31, I960, and F e b r u a r y 1, I960, r e s p e c t iv e ly , p ro v id e:

"A n n o u n cem en t of a ll e m p lo y e e b e n e fit p r o g r a m s , in cludin g . . . 

d eferred p rofit-sh arin g plan has been m ade and explanation of 

such p ro g ram shall be distributed as soon as p ra c tic a l to each 

employee and to each new em ployee. "

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Profit-Sharing and Savings Plans

N am e of plan:

Effective date

Date of latest 

amendment:

E astm an Kodak Co. Wage Dividend P lan (cash bonus

1912.

I960.

plan).

P articip an ts: W o r k e r s e m p lo y e d on o r b e fo r e D e c e m b e r 1, 

Sunday in D ecem ber, and actively at work 

scheduled workday in last week of y ear. 1

on payroll on last 

on w orker* s la s t

Amount of wage 

dividend:

P e r c e n t a g e of p a r t i c i p a n t s ’ e a r n in g s d u rin g p r e v io u s 5 y e a r s 

is determ ined by the amount of cash dividends paid on comm on 

stock during the y ear for which the wage dividend is d eclared 

as shown in following schedule:

If cash dividends 

declared on comm on 

______ stock is— ______

Wage dividend rate that is 

applied to earnings in the 

p r e v io u s 5 y e a r s is —

$ 0 .3 5 a share or le ss — ----- None.

$ 0 . 36 to $ 0 . 90 ------------------ 0. 05 p e r c e n t fo r e a c h cent of c a s h

dividend in e x c e ss of $0. 35.

$ 0 .9 1 to $ 1 .4 0 ------------------ 2 .7 5 p e r c e n t , p lu s 0 .0 1 p e r c e n t fo r

each cent of cash dividend in e x c e ss 

of $ 0 .9 0 .

$ 1 .4 1 to $ 2 . 2 0 ------------------ 3 .2 5 p e r c e n t , p lu s 0 .0 0 5 p e r c e n t

for each cent of cash dividend in 

e x c e s s of $ 1 .4 0 .

$2.21 and over ______________ 3.65 percent, plus 0.001 percen t

for each cent of cash dividend d e ­

clared in e x c ess of $ 2 .2 0 .

1 A ls o e lig ib le a r e w o r k e r s a b s e n t f r o m w o rk owing to s i c k n e s s , a c c id e n t, 

vacation or excused absence; laid-off w orkers; women on leave because of p r e g ­

nancy; w orkers who retired during y ear or left company during y ear because of 

perm anent and total disability; and ben eficiaries of w orkers who died during y ear.

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N am e of plan: E astm an Kodak Co.

E astm an Kodak Savings and Investm ent Plan.

Effective date: N o v em b e r 1, I960.

Date of latest 

amendment:

1961.

P articip an ts: E m p lo y e e s with at l e a s t 5 y e a r s of s e r v i c e who e a r n e d l e s s 

than $45,000 annually.

P a r t i c i p a n t 1 s 

contribution:

C o m p a n y 1 s 

contribution:

E m p loyer contributes to this plan rath er than to w age dividend 

plan, at p a rtic ip a n ts option.

Investm ent of 

fu nd1 s m o n ie s :

At p a rtic ip a n ts option, in company stock, diversifiednoncom pany 

stock, and U. S. Governm ent se c u ritie s.

W ithdrawal of 

m oney from 

fund:

O nce a y e a r , c u r r e n t v alu e of any in v e s tm e n t m a d e e ith e r 2 o r 

10 y e a r s e a r l i e r (but not both), including any e a r n in g s on that 

investm ent.

In financial em ergen cies, all or p art of m oney in account, 

dependent on the m e rits of the situation; ad m in istrative com ­

m itte e ^ approval required.

Paym ent from 

fund in 

ca se of— 

Retirem ent:

100 percent; lump sum (stock and cash), in stallm en ts, or annuity, at a d m i n is t r a t iv e c o m m it t e e 1 s option.

Death: 100 percent; lump sum (stock and cash).

Vesting: 100 percent of p a rtic ip a n ts account; in lump sum (stock and 

cash ), in sta llm en ts, or an annuity, at a d m in istra tiv e c o m m itte e ’ s 

option.

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Name of plan: F ed erated D epartm ent S to res, Inc.

R etirem ent Income and Thrift Incentive Plan.

Effective date: Jan u ary 25, 1953.

Date of latest 

am endm ent:

Jan u ary 24, 1961.

P a rtic ip a n ts: R e g u l a r e m p lo y e e s with 5 y e a r s of s e r v i c e and who a r e l e s s 

than age 65.

P a rtic ip a n t's T h rift fund— up to 5 p e r c e n t of annual c o m p e n sa t io n (not in e xcontribution: c e ss of $20,000), at p a rtic ip a n t's option.

R etirem ent fund— none.

C o m p a n y 1 s 

contribution:

6 p e r c e n t of b e f o r e - t a x in c o m e , but not m o r e than an am o u n t 

that r e d u c e s c o m p a n y 's net in c o m e to 6 p e r c e n t of c o m p a n y 's 

invested capital for y ear, distributed as follow s:

Thrift fund— 25 p ercen t of p a r tic ip a n t's contributions. 1

R e t ir e m e n t fund— 6 p e r c e n t of p a r t ic ip a n t * s w a g e s (not in e x -

c e ss of $20, 000). 1

R em ainder, if any, is allocated in equal p a rts to the thrift fund 

and the retirem en t fund.

D istribution of Thrift fund— proportionate to p a rtic ip a n t's contribution.

c o m p a n y ' s 

contribution:

R etirem ent fund— proportionate to p a rtic ip a n t's com pensation.

Investm ent of P a rtic ip a n t's contribution— governm ent bonds.

fu n d's m on ies:

C o m p a n y 's co n trib u tion — no lim ita tio n . 1 2

1 If p r o f i t s a r e not su ffic ie n t to m a k e m a x i m u m co n trib u tio n s to e a c h fund, 

contributions are allocated first to the thrift fund and the rem ain der, if any, to 

the retirem en t fund.

2 P o lic y is to in v e s t in c o m p a n y ’ s c o m m o n sto c k .

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Withdrawal 

of money 

from fund:

F ed erated D epartm ent S to res, Inc.— Continued

T h r ift fund— only c o m p le t e w ith d r a w a l p e r m i t t e d . C o m p a n y 1 s 

contribution is forfeited, but Z l!z percen t in terest compounded 

annually is paid on savings withdrawn.

R etirem ent fund— not perm itted.

Paym ent from 

fund in c a se of 

death or d is a ­

bility after 

20 y e a rs of 

em ploym ent:

100 percen t in an annuity, or cash and investm ents in a lum psum paym ent or in in stallm en ts, at p artic ip an t’s option but with 

adm in istrative co m m ittee’ s approval.

R etirem ent 

and vesting:

A fter age 65, or after age 60 with 20 y e a rs of em ploym ent— 

100 percent in an annuity or cash and investm ents in a lum psum paym ent or, in in stallm en ts, at p artic ip an t’ s option but 

with ad m in istrativ e co m m ittee’ s approval.

F o r fe itu r e s: Reduce company* s contribution.

P rov isio n in

illu strativ e

union

agreem ent:

M em orandum of agreem en t between Bloom ingdale B ro th ers (a 

unit of Fed erated ) and R etail, W holesale and D epartm ent Store 

Union, D istrict 65, dated N ovem ber 19, 1954, p ro v id es:

"The em ployer hereby ag re e s that the p rov ision s of the R e tire ­

m ent Income and Thrift Incentive P lan of F ed erated D epartm ent 

S to re s, Inc#, dated Jan u ary 25, 1953, as th ereafter supplem ented 

and am ended, subject to all the lim itations and qualifications 

therein contained, are hereby incorporated in and m ade p art of 

this collective bargaining agreem en t ..."

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Nam e of plan: The P ro c te r and Gam ble Co. 

P rofit-Sh arin g Dividend Plan.

Effective date:

Date of latest 

am endm ent:

May 11, 1948 

October 31, 1961.

P a rtic ip a n ts:

P articipant* s 

contribution:

Company* s 

contribution:

12 m o n th s' em p lo y m en t; p aid on h o u rly o r w eekly b a s i s , o r if 

in sa le s, staff, su p erv iso ry , technical, ad m in istrative or executive w o rk , d o e s not e a r n m o r e than $37 5 p e r m onth; and not 

participating in any other profit-sh arin g plan. 1

To p r o f i t - s h a r i n g fund A— du ring f i r s t 6 y e a r s of p a r t ic ip a t io n , 

5 p e r c e n t of to ta l p ay up to a m a x i m u m of $ 1 0 0 a y e a r . No 

co n trib u tio n s a f t e r 6 y e a r s .

To p rofit-sh arin g fund B— none.

To p rofit-sh arin g fund A— percent of each particip an t's quarterly 

earnings up to $500:

Y ears of participation P ercen t of total pay

1st and 2d __________________ 5

3d and 4th ___________________ 6

5 th and 6 th __________________ 7

7th, 8th, and 9th ___________ 8

10th, 11th, and 12th _______ 10

13th, 14th, and 15th _______ 12

16th and th ereafter _________ 15

T o p r o f i t - s h a r i n g fund B — 0. 15 p e r c e n t fo r e ac h m illio n of p r o fit 

sharing b ase p a y ,* applied to the first $30 m illion of consolidated 

p r o fit. T h is p e r c e n t a g e (0. 15 p e r c e n t x p r o f i t - s h a r i n g b a s e p ay )

$ 1, 000,000

is in creased by one-sixth for each of the next $10 m illion of 

consolidated profit, and so on for each additional $10 m illion 

of consolidated profit.

M axim um — an amount that would not reduce consolidated net 

p r o f i t 1 234 to belo w $ 3 0 m illio n , and is not in e x c e s s of 15 p e r c e n t 

of p ro fit-sh arin g b a se pay (pay in e x c ess of $ 2 ,0 0 0 per year) 

of all participants.

If profits are not sufficient to m ake full contribution to this fund 

and to the P ro c te r and Gam ble profit sharing tru st plan c o v e ring sala rie d em ployees, company contribution is to be divided 

between them in proportion to the applicable rem uneration of 

the participating em ployees.

1 P r o f i t - s h a r i n g t r u s t p la n is in e ffe c t fo r s a l a r i e d e m p lo y e e s e arn in g m o r e 

than $250 a month.

2 P r o f it - s h a r in g b a s e pay is pay in e x c e s s of $2,000 p e r y e a r p e r p a r t ic ip a n t .

3 C o n so lid a t e d p r o fit (including s u b s i d i a r i e s 1) b e f o r e p ro v id in g fo r U. S. 

F e d e ra l taxes.

4 C o n so lid a t e d p r o fit (including s u b s i d i a r i e s '

F e d e ra l taxes.

after providing for U. S.

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The P ro c te r and Gam ble C o .— Continued

Distribution 

of co m p an y 's 

contribution:

P r o f i t - s h a r i n g fund A— fo r f i r s t 6 y e a r s of p a r t ic ip a t io n , eac h 

p artic ip an t’s account credited with p ro fit-sh arin g dividends a c ­

cording to num ber of y e a rs of continuous participation. After 

6 y e a r s , q u a r t e r l y c a s h p a y m e n t s a r e m a d e . (See co m p an y 

contribution to fund. )

P ro fit-sh arin g fund B— each p artic ip an t’ s account is credited 

with a pro rata sh are b ased upon the relationship of his share 

(determ ined by the following schedule) to the total of all sh a re s.

P e rc e n t of p a rtic ip a n t’ s 

pay in e x c e ss of

Y ears of participation ______$ 2, 000 a y e a r _____

1st and 2d __________________ 5

3d and 4th __________________ 6

5 th and 6 th __________________ 7

7th, 8th, and 9th --------------- 8

10th, 11th, and 12th _______ 10

13th, 14th, and 15th _______ 12

16th and th ereafter _________ 15

Investm ent of 

fu nd's m onies

P ro fit-sh arin g fund A--- com pan y’ s com m on stock (see annual

d istribution).

P ro fit- sh a rin g fund B— com pan y’ s com m on stock, UoS. s e c u r ities, or other secu rities, as determ ined by tru stee s.

W ithdrawal 

of money 

from funds:

Prohibited while actively employed.

Paym ent from 

funds in ca se of— 

R etirem ent, 

death, or 

disability:

P ro fit-sh arin g funds A and B — 100 percen t of investm ents and 

cash, an im m ediate annuity or som e other equitable distribution, 

at tru ste e s' option.

T ra n sfer to 

nonm em ber 

su b sid iary or 

asso c iate d 

company:

100 percen t of p artic ip an t’ s account.

Vesting: P r o f i t - s h a r i n g fund A— a f t e r 6 y e a r s of p a r t i c i p a t i o n :5 100 p e r ­

cen t of p a r t i c i p a n t ' s a cco u n t. U n d er 6 y e a r s , e m p lo y e e c o n t r i ­

butions plus 4 -p ercen t interest.

5 R e d u c e d to 3 y e a r s of p a r t ic ip a t io n fo r w o m en le a v in g to b e m a r r i e d 

within 60 days after term ination of employm ent, and for women leaving company 

who m a rrie d while em ployed by company.

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The P ro c te r and Gam ble C o .— Continued

V esting:— 

Continued

P r o f it - s h a r in g fund B — with 10 y e a r s of p a r tic ip a tio n : 100 p e r - 

cen t of p a r t i c i p a n t 1 s acco u n t. If p a r t ic ip a n t t e r m in a t e s e m p l o y ­

m ent, distribution is m ade in five annual in stallm en ts. If p a r ­

ticipant d irects tru stees to purch ase a d e ferre d annuity (which 

p a r tic ip a n t m ay do a fte r com pletin g 10 y e a r s of s e r v ic e ) and 

if the em ployee then resign s or is d ism isse d , such annuity is 

h eld by t r u s t e e s fo r 5 y e a r s fr o m d ate p u r c h a s e d u n l e s s death 

o r d is a b il it y o c c u r s p r i o r to c o m p le tio n of 5 y e a r s .

Annual

distribution:

On c o m p le tio n of 6 y e a r s of continu ous p a r t ic ip a t io n : C e r t i f ic a t e 

for num ber of sh are s of common stock issu e d and delivered to 

participant; thereafter, all dividends on stock paid to him as 

shareholder. A lso, as long as he retains the sh are s acquired 

d u rin g the f i r s t 3 y e a r s of a c tiv e p a r t ic ip a t io n , he r e c e i v e s 

com pany’s contribution (profit-sh aring dividends) in cash.

F o rfeitu res: Reduce com pany's contribution to funds A and B.

P rov isio n in

illu strativ e

union

agreem en t:

Collective bargaining agreem en t with Ivorydale and St. B ern ard 

E m p lo y ees' R epresentation A ssociation , Ivorydale and St. B e r ­

nard, Ohio, A rticle XVIII, effective F eb ru ary 13, I960, pro v id es:

"The em ployer has set up plans for the benefit of em ployees, 

su ch a s . . . p r o fit sh a r in g . . . The e m p lo y e r h o p e s it can 

keep these plans in effect. It is understood that this a g r e e ­

m ent in no way affects the em ployer's right to change or stop 

these plans. "

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Nam e of plan: S e a rs, Roebuck and Co.

Savings and P rofit Sharing Pension Fund of S e a rs, 

and Co. E m plo yees.

Roebuck

Effective date: J u l y 1, 1916.

Date of latest 

amendm ent:

N ovem ber 22, 1961.

P artic ip a n ts: R e g u l a r e m p lo y e e s with 1 y e a r of s e r v i c e .

P a rtic ip a n ts

contribution:

5 p e r c e n t of c o m p e n sa t io n up to a m a x i m u m c o n trib u tio n of 

$500 annually. 1

C o m p a n y 1 s 

contribution:

The percentage of consolidated net profits, before taxes and 

dividends, shown by the following schedule:

P ercent

contribConsolidated net annual profit uted

$50 m illio n but l e s s than $ 100 m illio n ___ 5

$ 100 m illio n but l e s s than $ 150 m i l l i o n ___ 6

$ 1 5 0 m illio n but l e s s than $ 175 m i l l i o n ___ 7

$ 1 7 5 m illio n but l e s s than $ 2 0 0 m i l l i o n ___ 8

$ 2 0 0 m illio n but l e s s than $ 2 5 0 m i l l i o n ___ 9

$ 2 5 0 m illio n and o v e r ______________________ 10

D istribution 

of com pan y^ 

contribution:

Proportionate to serv ice , age, and deposits of participant and

his group classificatio n .

Ratio of 

company

Group Length of company contribution

c l a s s i ­ serv ice requ ired for each

fication for p articu lar group dollar deposited

A _______ . L e s s than 5 y e a r s ________________ 1 for 1

B _______ . 5 o r m o r e but l e s s than 10 y e a r s — Twice group A

C _______ 10 o r m o r e y e a r s , e xc lu d in g

g ro u p D ___________________________ T hree tim es 

group A

D _______ 15 o r m o r e y e a r s and 50 o r

m ore y e a rs of age _______________ F o u r tim es 

group A

Investm ent of 

fund's m on ies:

No lim itation; in sofar as p racticable, in com pany's com m on stock.

1 F o r e m p l o y e e s w h o se an nu al c o m p e n sa t io n e x c e e d s $ 10, 000, the s u p p l e ­

m ental savings and retirem en t plan of S e a r s, Roebuck and Co. provides additional benefits.

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W ithdrawal of 

m oney from 

fund:

Paym ent from 

fund in c a se 

of retirem en t, 

death, or 

disability:

Vesting:

F o rfeitu res:

P articip an ts' 

participation 

in plan a d ­

m inistration:

S e a r s, Roebuck and C o .— Continued

In o r d e r to fu rth e r r e tir e m e n t s e c u r it y , a d e p o s ito r of 10 o r 

m o re consecutive calendar y e a rs m ay apply for w ithdraw al of 

one-half of the cred its added to his account beginning with the 

10th year le s s the total of all w ithdraw als m ade p rio r to such 

w ithdraw al; a group D d ep osito r with 15 or m o re y e a r s of s e r v ic e 

and ov er age 50 m ay apply fo r w ithdraw al of la r g e r am o u n ts. 

T ru ste e s' approval required.

F o r any r e a s o n , a d e p o s it o r of 15 o r m o r e c a le n d a r y e a r s m a y 

apply for w ithdraw als equal to one-half of cred its added to his 

account beginning with the 15th y ear, le s s previous w ithdraw als. 

T ru stees* approval required.

To p u rch ase hom e to provide adequate living facilities for h im ­

s e l f and f a m i l y , a d e p o s it o r with 5 o r m o r e y e a r s of s e r v i c e 

m ay apply for a w ithdraw al providing the proposed w ithdraw al 

will be used to further the d ep o sito r's retirem en t secu rity. Such 

w ithdraw als plus all previous w ithdraw als cannot exceed 60 p e r ­

cent of all m onies and sec u rities credited to his account since 

joining the fund. T ru stee s' approval required.

In event of illn ess of depositor or death or illn e ss in im m ediate 

f a m i l y , a d e p o s it o r with 5 o r m o r e y e a r s of co n tin u ous s e r v i c e 

m ay apply for p a rtia l w ithdraw als not otherw ise perm itted. D e ­

p o s i t o r s with l e s s than 5 y e a r s of s e r v i c e m a y in no in s t a n c e 

apply for w ithdraw al in e x c ess of their own deposits. T ru ste e s' 

approval required.

O th er r e a s o n s : Only c o m p le t e w it h d r a w a ls p e r m i t t e d . ( P a r t i c i ­

p a n ts with l e s s than 5 y e a r s of s e r v i c e f o r f e i t c o m p a n y 's c o n ­

tribution. )

Up to 100 percen t of company stock, cash an d/or an annuity 

contract as requested, subject to tru ste e s' approval. Within 

5 y e a r s of r e t i r e m e n t d a te , t r u s t e e s m a y , on r e q u e s t of p a r t i c i ­

pant, purch ase single prem ium annuity, either individual or 

joint and su rv iv o rs, contract.

A fte r 5 y e a r s of s e r v i c e , 100 p e r c e n t of p a r t i c i p a n t 's a c c o u n t.

L a p s e d a c c o u n ts of d e p o s i t o r s with l e s s than 5 y e a r s ' s e r v i c e 

are credited at yearend to rem aining particip an ts' accounts in 

proportion to num ber of sh are s of com pany capital stock to their 

credit at beginning of y ear and not withdrawn during y e ar.

A d v i s o r y co u n cil, c o n s is t i n g of 19 p a r t i c i p a n t s e le c te d by e m ­

ployees in specified areas, m eets with board of tru stee s s e m iannually to d isc u ss and m ake recom m endations.

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Name of plan: Standard Oil Co. of C alifornia 

Stock Plan.

Effective date: J uly 1, 1952.

P articip an ts: E m p lo y e e s with 5 y e a r s of s e r v i c e and who a r e at l e a s t 35 y e a r s 

of age.

P articip an t’ s 

contribution:

P ercen tage of regu lar earnings:

Type of Amount of contribution on annual earnings 

contribution Up to $4, 800 1 In e x c e s s of $ 4 , 8 0 0 1

B a sic _____ 2V2 0

O p tion al ___ 0 2V2 o r 5

C om pany’ s 

contribution:

2 p e r c e n t of its q u a r t e r ly c o n so lid a te d n et in c o m e b e f o r e in c o m e 

taxes and before the contribution.

D istribution of 

com pany’ s 

contribution:

Proportionate to p artic ip an t’ s contribution.

Investm ent of 

fund’ s m on ies:

Com pany’ s com m on stock.

W ithdrawal 

of money 

from fund:

Only com plete withdrawal perm itted. Stock and cash, attributable 

to co m p an y's contribution are forfeited.

Paym ent from 

fund in case of 

retirem en t 

at or after 

age 60, death, 

or disability:

100 p ercen t of p artic ip an t’ s account.

Vesting: With l e s s than 10 y e a r s of p lan m e m b e r s h ip — none.

With 10 y e a r s or m o r e p lan m e m b e r sh ip — 25 p e rc e n t of stock 

p u r c h a s e d with c o m p a n y 's co n trib u tio n ; p lu s an a d d itio n a l 5 p e r ­

cent of stock for each additional y ear of plan m em bership.

At or after age 60— 100 percent.

F o rfe itu re s: Credited to accounts of rem aining participan ts.

P rov isio n in

illu strative

union

agreem ent:

Collective bargaining agreem en ts with Oil, C hem ical and Atom ic 

W o r k e r s In tern a tio n a l Union, E l S egu n d o , C a lif. , e ffe c tiv e 

A pril 9, 1959, A rticle XV, p rov id es:

’’E m p lo y e es co vered by this a g re e m e n t w ill re c e iv e em ployee 

benefits in accordan ce with the provision s set forth in the published benefit plans of the company. The company a g re e s to 

inform the union in advance of any rev isio n s or am endm ents to 

its published benefit plans but r e se r v e s the right to am end said 

plans in accordan ce with the provision thereof ..."

1 E a r n i n g s l e v e l s a u t o m a t ic a l ly a d ju s t e d to the m a x i m u m an n u al a m o u n t of 

w ages on which so c ia l secu rity tax es a re paid.

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Savings Plans

Nam e of plan: E. I. Dupont de N em ou rs Co. 

The Dupont Thrift Plan.

E ffective date: S e p te m b e r 1, 1955.

Date of latest 

am endm ent:

J uly 1, I9 6 0 .

P articip an ts: E m p lo y e e s with 2 y e a r s of s e r v i c e .

P a r t i c i p a n t 1 s 

contribution:

$ 1 2 .5 0 , $ 1 8 .7 5 , $25, $ 3 1 .2 5 , or $ 3 7 .5 0 monthly, at p a rtic ip an t’ s option.

Company* s 

contribution:

One-fourth of participant* s contribution.

D istribution 

of company* s 

contribution:

Proportionate to participant* s contribution.

Investm ent of 

fund’ s m on ies:

P a rtic ip a n t’ s contribution: U .S . Savings Bonds. 

Com pany’ s contribution: C om pany’ s com m on stock.

Paym ent 

from fund 

during active 

em ploym ent:

A fter 4 y e a rs of participation, bonds p u rch ased during first y ear 

delivered to participant together with any full sh are of company 

s to c k r e g i s t e r e d in h is n a m e fo r at l e a s t 2 y e a r s ; t h e r e a f t e r , 

e ac h y e a r p a r t ic ip a n t r e c e i v e s 1 y e a r ’s p u r c h a s e of bo n d s and 

the s to c k r e g i s t e r e d in h is n a m e fo r 2 y e a r s .

W ithdrawal 

of m oney 

from fund:

Only com plete w ithdrawal perm itted. P articip an ts with le ss 

than 1 y e a r of s e r v i c e f o r f e i t s to c k p u r c h a s e d with co m p an y * s 

contribution.

Paym ent from 

fund in case 

of retirem en t, 

or layoff:

100 percent of p articip an t’ s account.

V esting: A fte r 1 y e a r of p a r t ic ip a t io n , 100p e r c e n t of p a r t i c i p a n t ’s a c c o u n t.

F o r fe itu r e s: Reduce company* s contribution.

P ro v isio n in

illu strativ e

union

agreem ent:

Collective bargaining agreem en t with M artin sville Nylon E m ­

p l o y e e s ’ C o u n cil C o rp . , M a r t i n s v i l l e , Va. , A r t i c l e IX, e f f e c ­

tive June 8, 1959, p rov id es:

"The company has adopted certain plans and p ra c tic e s, known 

as industrial relations plans and p ra c tic e s, listed below, d es ig n e d to p r o m o t e e m p lo y e e s e c u r i t y . . . T h e s e p la n s and p r a c ­

tices are adm in istered solely according to company ru les, regu ­

lations and in terpretation s, and m ay be changed or withdrawn 

by the company when, in its judgm ent, it becom es advisable, 

provided, how ever, that as long as any one of such plans and 

p ra c tic e s is in effect within the company, it shall not be withdrawn from the em ployees covered by this agreem ent.

. . . th rift p lan . "

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19

Nam e of plan: G eneral E lectric Co.

G eneral E lec tric Savings and Security P ro g ra m .

Effective date: J a n u a r y 1, 1959.

P articipan ts: All em ployees except those represen ted by unions which did not 

accept the p ro g ram and certain other em ployees who initially 

elected not to participate. M ajor executives not eligible.

P a r t i c i p a n t 1 s 

contribution:

1, 2, 3, 4, 5, o r 6 p e r c e n t of e a r n in g s , at p a r t i c i p a n t s option.

C o m p a n y 1 s 

contribution:

50 p erc en t of p a r t ic ip a n t s contribution.

D istribution 

of c o m p a n y 1 s 

contribution:

B ased on p a rtic ip a n ts contribution (see above).

Investm ent of P a r t i c i p a n t s co ntribution— a ll in U. S. G o v ern m en t S av in g s B on ds

fundts m onies: or at p a r t ic ip a n t s option, 10, 20, 30, 40, or 50 p ercen t in 

c o m p a n y 1 s c o m m o n s to c k and r e m a in d e r in b o n d s.

Com pany’ s contribution— U. S. Governm ent Savings Bonds or

co m p an y ^ comm on stock, at p a rtic ip a n ts option.

Withdrawal of A fte r 2 w ee k s— a ll o r p a r t of am o u n t to h is c r e d it b e c a u s e of

m oney fro m fund 

due to—

Layoff for 

lack of work:

his contribution without affecting his eligibility to company contribution.

A fte r 6 m o n th s— e n tir e am ount (b a s e d on h is and co m p a n y con -

tribution).

Strike absence: Without e a r n in g s fo r m o r e than 2 w e e k s— w ith d r a w a ls of h is

savings are perm itted without affecting his eligibility to co m ­

pany* s contribution.

Other reaso n : At any time— participant m ay withdraw savin gs; however, he 

f o r f e i t s h is e lig ib ilit y to c o m p a n y 1 s p a s t co n trib u tio n .

Paym ent from 

fund in case of— 

R etirem ent, 

disability, or 

plant closing:

100 percent.

Other absence 

or term ination 

of employment:

If amount based on contribution is left with company for r e ­

m ainder of holding period, participant is entitled to entire a c ­

count, including com pany’ s contribution.

Vesting: 100 p e r c e n t — at end of 3 y e a r s f r o m J a n u a r y 1 fo llow in g the 

year in which the secu rities are credited. P articip an t m ay have 

stocks and bonds delivered to him or he m ay leave them with 

the company until retirem ent or term ination of employm ent.

F o rfeitu res: Reduce com pany’ s contribution.

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Federal Reserve Bank of St. Louis
20

Nam e of plan: G eneral E lectric Co.

G eneral E lectric E m ployees Savings and Stock Bonus Plan. 1

Effective date: O c to b e r 1, 1948.

Date of latest 

amendment:

N ovem ber 21, 1958.

P articip an ts: All em ployees represen ted by unions which did not accept the 

"G en eral E lectric Savings and Secu rity P ro g ra m " and certain 

other em ployees who initially elected not to participate in sam e 

savings and secu rity p ro gram . M ajor executives not eligible.

P a r t i c i p a n t 1 s 

contribution:

At p a rtic ip a n ts option: M inimum— $ 0 .7 5 weekly.

M a x im u m — $ 10. 00 w eekly.

C o m p a n y 1 s 

contribution:

A g g r e g a t e e m p l o y e e s 1 s a v in g s u n d e r p la n lim ite d to $ 5 0 , 000, 000 

annually.

15 p erc en t of a g g re g a te co st of bonds p u rc h a se d annually by 

participant.

D istribution 

of c o m p a n y 1 s 

contribution:

B ased on p a r tic ip a n ts contribution.

Investm ent of 

fund1 s m o n ie s :

P a rtic ip a n t’ s contribution— U. S. Savin gs Bonds. 

Com pany’ s contribution— com pany’ s com m on stock.

W ithdrawal 

of money 

from fund:

W ithdrawal perm itted of either all bonds pu rch ased with p a r tic ipan t’ s contribution or th ose p u rc h a se d during y e a r . C om pan y’ s 

contribution (stock bonus) forfeited.

Paym ent from 

fund in 

case of— 

Death:

100 percent— bonds plus stock bonus, although bonds w ere not 

h eld by c o m p an y fo r 5 y e a r s .

Other: D istribution after n orm al holding period. (See "V estin g" below. )

Vesting: 100 p e r c e n t at end of 5 y e a r s f r o m J a n u a r y 1, fo llow in g y e a r 

in which bonds w ere purchased. Bonds and stock will be d e ­

livered to participant following com pletion of said 5-year holding period.

F o r f e i t u r e s : Reduce com pany’ s contribution.

1 P l a n i s in ad d itio n to e x istin g s a v in g s p la n which d o e s not r e q u ir e w o r k e r 

to deposit bond with company for a 5-y ear period.

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Federal Reserve Bank of St. Louis
21

Name of plan: Gulf Oil Corp.

E m ployees Savings Plan.

Effective date: Ja n u a r y 1, 1950.

Date of latest 

am endm ent:

A p ril 1, 1961.

P a rtic ip a n ts: W o r k e r s with a t l e a s t 6 m o n th s ' co n tin u ous s e r v i c e and e a r n ­

ing l e s s than $ 1 6 ,8 5 4 an nu ally.

P articip an t* s 

contribution:

At p a r t ic ip a n t * s option, up to 9 p e r c e n t of c o m p e n sa t io n a l l o ­

cated as follow s:

Annuity fund— 3 p e r c e n t of c o m p e n sa t io n (o r am o u n t of c o n tr ibu tion, if l e s s than 3 p e r c e n t ) .

S a v in g s fund— am o u n t in e x c e s s of 3 p e r c e n t of c o m p e n sa t io n .

Com pany* s 

contribution:

Annuity fund— amounts actu arially computed to provide the 

amounts requ ired, in addition to p artic ip an ts' accum ulated contributions, for the benefits payable.

Savings fund— none.

Stock bonus fund— 50 percen t of participant* s total aggregate 

contributions to the savin gs fund.

D istribution of 

company* s 

contribution:

Annuity fund— no allocations m ade to individual accounts.

Stock bonus fund— no allocations m ade to individual accounts. 

At the end of term , the fund is distributed to participants in p r o ­

portion to the amount then in their accounts in the savings fund. 1

Investm ent of 

fund* s m on ies:

Annuity fund— stocks and secu rities (not in company).

Savings fund---U. S. savings bonds.

S tock bonus fund— com pany's com m on stock.

Withdrawal 

of money 

from funds:

Annuity fund— not perm itted.

S av in g s fund—p e rm itte d ; h o w ev er, such w ith d raw als red u ce b en efits from stock bonus fund. (See "paym ent from funds during 

active employm ent. ")

Paym ent 

from funds 

during active 

em ploym ent:

Annuity fund— none.

S a v in g s fund— at the c l o s e of eac h t e r m , 1 the b o n d s h eld in the 

account of the participant in that term and any cash balance are 

delivered to the participant.

1 A t e r m ru n s fo r 3 c o n se c u t iv e c a le n d a r y e a r s . C o n trib u tio n s to the s a v -

ings fund and the stock bonus fund are m ade only during the first y ear of each 

t e r m ; the r e m a in in g 2 y e a r s c o n stitu te a holding p e r i o d . A new s a v in g s fund and 

a new stock bonus fund a re estab lish ed for each term .

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Federal Reserve Bank of St. Louis
Paym ent 

from funds 

during active 

em ploym ent:— 

Continued

Paym ent 

from funds 

in case of— 

R etirem ent:

Death:

Vesting:

F o rfe itu re s:

P rov isio n in

illu strativ e

union

agreem ent:

Gulf Oil C o rp .— Continued

S to c k bonus fund— at the c l o s e of each t e r m , 2 the a s s e t s of the 

fund of that term are distributed to m em b ers in whose accounts 

bonds or cash are still held by the savings fund of that term , 

b a se d on the proportion which the total of the p u rch ase p ric e 

of the p a rtic ip a n t's bonds at that tim e plus cash in account 

b e a rs to the pu rch ase p rice of all bonds and cash held by the 

savings fund of that term .

Annuity fund—annuity actu arially equivalent to twice p artic ip an t’s 

accum ulated contributions.

Savings fund— 100 percent of all of p artic ip an t’s accounts in the 

savings funds.

Stock bonus fund— stock equal in cost to one-half the value of 

the total p u rch ase p ric e of bonds held in p articip an t* s account 

in the savings fund of the sam e term . 2

Annuity fund— lum p-sum paym ent equal to twice w o rk e r's accu ­

m ulated contributions.

Savings fund and stock bonus fund— sam e as for retirem ent.

Annuity fund— with l e s s than 10 y e a r s of s e r v ic e — none; with 

at l e a s t 10 y e a r s of s e r v ic e , if p artic ip a n t le a v e s h is c o n tribution in account until age 65— 100 percent. Paym ent is m ade 

in the form of an annuity actu arially equivalent to twice the 

p artic ip a n t's accum ulated contributions.

Stock bonus fund— none (see "paym ent from funds during active 

e m p l o y m e n t " ).

Annuity fund— not applicable.

S tock bonus fund— all a ss e ts rem ain in fund until end of term 

and thus in cre ase amount of bonus that is distributed to rem ain ­

ing participants.

Stipulation covering w elfare and benefit plans with Oil W orkers 

International Union, CIO (now Oil, Chem ical and Atomic W orkers 

International Union, A FL-C IO ), A rticle II, dated Septem ber 19, 

1950, covering clerical em ployees at the P o rt Arthur R efinery, 

P o r t A rth u r, T e x . , p r o v i d e s :

"The company will estab lish the "E m p lo y ees' Savings Plan of 

Gulf Oil Corporation, " herein after re fe rre d to as the "Savings 

Plan, " a copy of which is attached hereto as exhibit "A " and 

m ade a p art of this agreem en t to the extent applicable to the 

em ployees represen ted by the Union and covered by this supplem ental agreem ent, as if fully set out herein. "

2 Op. cit. , footnote 1.

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Federal Reserve Bank of St. Louis
23

i

Nam e of plan: P acific G as and E lec tric Co. 

Savings Fund Plan.

Effective date: A p r il 1, 1959.

Date of latest 

amendment:

N ovem ber 23, 1959.

P articip an ts: E m p lo y e e s with at l e a s t 5 y e a r s of s e r v i c e who a r e m e m b e r s 

of retirem en t plan.

P a r t i c i p a n t 1 s 

contribution:

P ercen tage of pay, varying according to length of serv ice:

P ercen tage, at

Y e ars of serv ice p a rtic ip a n ts option

5 but l e s s than 10 ____ 2, 3, or 4 p e rc e n t

10 but l e s s than 15 _ _ _ 2, 3, 4, or 5 p e rc e n t 

15 and o v er ----------------- 2, 3, 4, 5, or 6 p e rc e n t

Co m p an y 1 s 

contribution:

50 p erc en t of p a rtic ip a n t’ s contribution.

D istribution 

of c o m p a n y 1 s 

contribution:

P rop o rtio n ate to p a rtic ip a n t’ s contribution.

Investm ent of 

fund1 s m o n ie s :

P a rtic ip a n t’ s contribution— equallv in com pan y's com m on stock 

and U. S. Savin gs Bonds or en tirely in either one, at p a r t ic ipant’ s option.

Com pany's contribution— com pany's com m on stock.

W ithdrawal 

of money 

from fund:

P articipan t perm itted to withdraw all or p art of stocks, bonds, 

and cash attributable to his contribution at any tim e, and stocks 

and cash attributable to com pany’ s contribution at end of y ear 

in which a vested right is obtained (in case of unusual h ard ­

ship this provision m ay be waived).

If participant withdraws amount attributable to his contribution 

for any y ear for which com pany’ s contribution is not vested 

(see "V estin g "), com pany’ s contribution for that y e a r is forfeited.

Paym ent from 

fund in case 

of retirem en t, 

death, or 

disability:

100 p e rc e n t of p a r tic ip a n t’ s account.

Vesting: Stock and cash attributable to company contributions vested in 

w orker at the end of the third year following the year in which 

the contributions w ere m ade.

F o rfeitu res: Reduce com pany’ s contribution.

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Nam e of plan: S o c o n y -M o b il Oil Co. , Inc. 

E m ployees Savings Plan.

Effective date: S e p t e m b e r 1, 1951.

Date of latest 

amendm ent:

Ja n u a ry 1, 1961.

P a rtic ip a n ts: R e g u l a r e m p lo y e e s co n trib u tin g to r e t i r e m e n t p la n a f t e r 1 y e a r 

of continuous active serv ice .

P a r t i c i p a n t 1 s 

contribution:

1, 2, 3, 4, o r 5 p e r c e n t of b a s e p a y , a t w o r k e r ’s option.

C o m p a n y 1 s 

contribution:

B a se d on p artic ip an t’s y e a rs of serv ice and contribution:

P e r c e n t of p a r t i c i p a n t 1 s

Y ears of serv ice contribution em ployer contributes

L e s s than 1 0 ________ 60

1 0but le ss than 2 0 __ 80

20 and over _________ 100

D istribution of 

c o m p a n y 1 s 

contribution:

P r o p o r t io n a t e to p a r t i c i p a n t 1 s co n trib u tio n .

Investm ent of 

fu n d 1 s m o n ie s :

At p a rtic ip a n t’ s option, in U. S. Savings B on d s, com pan y’ s 

capital stock, and sh are s of common stock of eligible in v estm ent com panies.

Withdrawal 

of money 

from fund:

B e f o r e 5 y e a r s of p a r t ic ip a t io n — c o m p le te w ith d ra w al of am o u n t 

equal to the value of his entire account m inus total company 

contributions, or the percentage of his account which w as attrib ­

utable to his own contributions, w hichever is g reate r. R em ain ­

der in account is forfeited.

A ft e r 5 y e a r s of p a r t ic ip a t io n — c o m p le te w ith d ra w al o r p a r t i a l 

’'allotm ent" withdrawal of up to 50 percen t of his total con tributions le ss cum ulative w ithdraw als p rev io u sly m ade (but not 

m o re than value of entire account at time of withdrawal). T h e re ­

after, at 2-year in terv als, sim ila r w ithdraw als m ay be m ade.

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Paym ent 

from fund 

in case of 

retirem ent, 

death, or 

disability:

S o c o n y -M o b il Oil Co. , In c .— C on tin u ed

100 percent of p artic ip a n t's account, re g a rd le ss of y e a rs of 

participation.

Vesting: A fte r 5 y e a r s of p a r t ic ip a t io n , 100 p e r c e n t of p a r t i c i p a n t s a cco u n t.

F o rfeitu res: Reduce com pany's future contribution.

P rov isio n in

illu strativ e

union

agreem ent:

C o lle c tiv e b a r g a in in g a g r e e m e n t with Independent Union of S o c o n y - 

M obil O il C o ., Inc., of C a l if o r n i a , A r t i c l e X IV , e ffe c tiv e J u ly 1, 

I960, p rov id es:

"No em ployee covered by this agreem en t, who is receiving any 

b e n e fit . . . s h a l l s u f f e r any . . . l o s s of b e n e fit . . . b e c a u s e 

of the application of this agreem ent. "

"No em ployee covered by this agreem en t shall by reason of 

m em b ersh ip in the Union be deprived of any p riv ileg es or benefits under the p olicies and plans heretofore estab lish ed or which 

m ay h ereafter be estab lish ed and c a rrie d on by the company 

gen erally for the benefit of all its em ployees. Said p riv ileg es 

and benefits are not subject to collective bargaining within the 

m eaning of this agreem en t, but all such plans shall be governed 

by their resp ective p rov ision s. "

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N am e of plan: Swift and Co.

Savings and Secu rity Plan.

Effective date: D e c e m b e r 1, 1959.

Date of latest 

amendm ent:

D e c e m b e r 1, 1961.

P articip an ts: E m ployees represen ted by the N ational Brotherhood of P ack in g ­

house W o rk e rs.1

P a r t i c i p a n t 1 s 

contribution:

$ 1 , $ 1 . 2 0 , $ 1 . 6 0 , $ 2 , o r $ 2 . 4 0 w eek ly , at p a r t i c i p a n t 1 s option.

C o m p a n y 1 s 

contribution:

50 p erc en t of p a r t ic ip a n t s contribution.

D istribution 

of c o m p a n y 1 s 

contribution:

Proportionate to p a r tic ip a n ts contribution.

Investm ent of 

fu n d 1 s m o n i e s :

P a r tic ip a n ts contribution— U. S. Savings Bonds.

Company contribution— Either in U. S. Savings Bonds or in com - 

pany stock, at participant*s option.

W ithdrawal of 

m oney from fund 

due to— 

T em p orary 

layoff becau se 

of lack of work:

If la id off fo r m o r e than 2 w e e k s , m a y w ith d raw s e c u r i t i e s in 

his account without forfeiture except those p u rch ased with c o m ­

pany contributions which have not been held for the 2-year holding p e r io d ; if laid o ff fo r 6 m o n th s, m a y w ith d raw e n t ir e a cco u n t.

Other re aso n s: M ay withdraw sec u rities held for the 2-year holding period 

without forfeiting secu rities and m onies rem aining in account. 

Such w ithdraw als m ust be m ade for one or m o re calendar y e a rs 

at a tim e.

M ay w ith d raw h is e n tir e a cco u n t. C o m p a n y 1 s c o n trib u tio n s f o r ­

feited except those invested in secu rities held for the 2-year 

holding period or longer.

1 A ls o in c lu d e s e m p lo y e e s r e p r e s e n t e d by o th er un ion s that h av e a c c e p t e d 

the plan and other selected groups of w ork ers not under collective bargaining.

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Swift and C o.--- Continued

P aym ent from 

fund in case of 

retirem ent, 

death, d is ­

ability, or 

pe rm an en t 

separation because of closing 

of departm ent 

or unit of 

b u sin ess, or 

technological 

changes in 

production

100 p ercen t of se c u ritie s and cash.

Vesting: 100 p ercen t of se c u ritie s held for the 2 -y e ar holding period.

F o rfeitu res: Credited to accounts of rem aining p articipan ts.

P rov isio n in 

illu strative 

union a g r e e ­

ment:

E x h ib it 7 of c o lle c tiv e b a r g a in in g a g r e e m e n t with N atio n a l B r o t h ­

erhood of Packinghouse W orkers (Ind.), executed October 22, 1959, 

provides:

"Sw ift and Company (hereinafter called the Company) and N ational Brotherhood of Packinghouse W orkers (hereinafter called 

the Union) hereby agree that the Company will m ake available 

to the em ployees covered by the M aster A greem ent executed 

on this date by the Company and the Union the Swift and Company 

Savings and Security Plan. "

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28

N am e of plan:

Effective date:

P a rtic ip a n ts:

P a r t i c i p a n t 1 s 

contribution:

C o m p a n y 1 s 

contribution:

P lacem en t of 

p a rtic ip a n t* s 

and co m p an y ’s 

contributions:

Investm ent of 

fund’ s m on ies:

Paym ent 

from funds 

during active 

employm ent:

W ithdrawal 

of money 

from funds:

Paym ent 

from fund 

in case of 

retirem en t, 

death, or 

disability:

Ve s tin g :

F o r fe it u r e s :

Union C arbide Corp.

Savings Plan for Em ployees

J uly 1, 195 3.

E m p lo y e e s with 1 y e a r of s e r v i c e , e x c e p t o f f i c e r s of c o r p o r a tio n . 

Up to l l/z percen t of earnings; m axim um — $83 p er month.

P e rc e n t of p a rtic ip a n t’ s contribution depending on y e a rs of s e r v ­

ice, as shown below:

P ercen t of participant* s

Y ears of serv ice contribution

1 10

2 20

3 o r m o r e _______ 30

D u rin g f i r s t 3 y e a r s of s e r v i c e , in g e n e r a l s a v in g s fund; a f t e r 

3 y e a r s of s e r v i c e , at p a r t i c i p a n t ’ s option, a ll in g e n e r a l s a v ­

ings fund, all in p erso n al savings account, or half in each.

G eneral savings fund— Governm ent sec u rities.

P e rso n al savings account— equally in U. S. Savings Bonds and 

com pany’s comm on stock, or entirely in either, at p artic ip an t’s 

option.

G e n e r a l s a v in g s fund— E v e r y 2 y e a r s , lu m p - s u m p a y m e n t e q u al 

to p a r t i c i p a n t ’ s and c o m p a n y ’ s c o n trib u tio n s to fund p lu s 2 p e r ­

cent in terest compounded annually, proportionate sh are of e arn ­

ings for fund, and fo rfeitu res.

P e rso n al savings account— none.

G eneral savings fund— p rio r to the biennial distribution date, 

only com plete withdrawal of savings plus in terest perm itted. 

Company contribution forfeited.

P e rso n al savings account—

With le ss than 24 months of paym ents—an amount equal to p a r ­

t i c i p a n t ’ s co n trib u tio n p lu s i n t e r e s t and d iv id e n d s o r v a lu e of 

account le ss company contributions, w hichever is g re a te r, 

perm itted.

A fter 24 months of paym ents to account— com plete withdrawal 

of entire account, or p artial w ithdraw al of not m o re than onethird the current m ark et value of account, perm itted.

G eneral savings fund and p erso n al savings account— 100 percent.

G e n e r a l s a v in g s fund— l e s s than 3 y e a r s of s e r v i c e — n on e, 

A fte r 3 y e a r s of s e r v i c e — 100 p e r c e n t .

P e rso n al savings account— 100 percent.

C red ite d to a ccou n ts of re m a in in g p a r tic ip a n ts.

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29

Stock Purchase Plan

N am e of plan: A m erican Telephone and T elegraph Co. 

E m p l o y e e s 1 S to c k P la n .

Effective date: Jan u ary 1958.

Date of latest 

amendment:

A pril 1961.

P a r t i c i p a n ts: R egular em ployees of company and su b sid iaries, except officers 

of A m erican Telephone and T elegraph Co.

How p a r tic ipants pay 

for stock:

T h ro u gh p a y r o l l d e d u c tio n s, a s p e c i fie d a m o u n t 1 p e r s h a r e p e r 

pay period over a 24-month "p u rch ase period. " Money credited 

to p a rtic ip a n ts account collects 3-percent in terest compounded 

s e m ia n n u a lly .

Num ber of 

sh are s of stock 

participant 

m ay purchase:

Up to one s h a r e fo r e ac h $ 133. 3 3 - L/3 of annual b a s i c r a te of 

pay; m axim um — 300 sh are s during period ending the last bu sin ess 

d ay of p u r c h a s e p e rio d . 2 3

C ost of share 

of stock to 

participant:

85 percent of average m ark et p rice on last bu sin ess day of p u rchase period; m inim um — $33. 34 per share, m axim um — 85 p e r ­

cent of m a r k e t p r i c e on day of an n o u n cem en t. 1 23

W ithdrawal 

of money 

from fund:

At any tim e, participant m ay cancel his election to purch ase 

stock and receive cash plus in terest or use the amount credited 

to his account to p u rch ase stock.

1 In the 1961—63 p u r c h a s e p e rio d , p a r t ic ip a n t s p a y $ 4 . 24 p e r s h a r e m onthly 

w hich, to g e th e r with in t e r e s t , t o ta ls $ 1 0 4 .8 7 — the m a x i m u m p r i c e p e r s h a r e .

2 P u r c h a s e p e r i o d s h av e run fo r 2 y e a r s f r o m J u l y th rou gh Ju n e ; e. g. , 

Ju ly 1961 through June 1963. Announcement day is u su ally on la s t b u sin e ss day 

of A pril preceding the beginning of purch ase period.

3 T h is in fo r m a tio n r e f l e c t s the 3 - f o r - l s p lit of the co m p a n y s to c k e ffe c tiv e

A pril 24, 1959.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
30

Stock Purchase and Savings Plan

N am e of plan: G eneral Foods Corp.

E m ployees Savings-Investm ent Plan.

Effective date 1953.

Date of latest 

amendment:

J a n u a r y 1, 19&1.

P articip an ts: A ll r e g u l a r e m p lo y e e s with 2 y e a r s of s e r v i c e , who a r e at 

l e a s t 21 y e a r s of a g e . 1

P a r t i c i p a n t 1 s 

contribution:

At p articipan t's option, through regu lar payroll deductions or in 

a lum p-sum payment, an amount varying according to earnings:

Annual wage or 

sa la ry rates

M inimum and m axim um 

amounts of payroll d e ­

duction per pay p erio d 1 Lum psum

co n tribution

F o r e m ­

p lo yees on 

a weekly 

payroll2

F o r em - 

ployees on 

a s e m imonthly 

payroll

B elow $ 2, 000 _________ $ 3 to $6 $ 6 to $ 12 $60

$ 2, 000. 0 0 - $ 3, 000 ____ $3 to $7 $ 6 to $ 14 $70

$ 3, 000. 01—$ 4 , 000 ____ $ 4 to $8 $ 8 to $ 16 $80

$4, 000. 01—$ 5 , 000 ___ $ 4 to $ 10 $8 to $20 $ 100

$ 5, 000. 01—$ 6 , 000 ____ $5 to $12 $ 10 to $ 2 4 $ 120

$ 6 , 000. 01—$ 7 , 000 ____ $5 to $14 $ 10 to $ 2 8 $ 140

$ 7 , 000. 01—$ 8 , 000 ____ $ 6 to $ 16 $ 1 2 to $ 32 $ 160

$ 8 , 000. 01—$ 9 , 000 ____ $ 6 to $18 $ 12 to $ 36 $ 180

$9, 000. 01-$ 10, 000 __ $ 7 to $20 $14 to $40 $200

$ 10, 000. 0 1 - $ 1 1, 000 -- $7 to $22 $ 14 to $ 4 4 $220

$ 11, 000. 0 1 - $ 12, 000 . . $8 to $24 $16 to $48 $240

$ 12, 000. 0 1 - $ 13, 000 $ 8 to $ 26 $16 to $52 $260

$ 13, 000. 0 1 - $ 14, 000 $9 to $28 $ 18 to $ 56 $280

$ 14, 000. 0 1 - $ 15, 000 $9 to $30 $ 18 to $ 6 0 $300

$ 15, 000. 0 1 - $ 16, 000 __ $ 10 to $ 3 2 $20 to $64 $320

$ 16, 000. 0 1 - $ 17, 000 __ $ 10 to $ 3 4 $ 2 0 to $ 68 $ 340

$ 17, 000. 0 1 - $ 18, 000 _. $ 11 to $ 3 6 $22 to $72 $360

$ 18, 000. 01-$ 19, 000 .. $ 11 to $ 3 8 $ 2 2 to $ 76 $380

$ 19, 000. 0 1 -$ 20, 000 __ $ 12 to $ 40 $24 to $80 $400

A bove $ 20, 000 . . . $ 12 to $ 4 2 $24 to $84 $420

1 C o n trib u tio n s m a y be m ad e only in even d o l l a r s .

2 To be m ad e 48 t i m e s p e r y e a r and no m o r e than 

four tim es in any calendar month.

1 E x c l u d e s e m p lo y e e s fo r whom a c o m p e n sa t io n a w a rd h a s been m a d e o r 

allotted for any year under the corporation 's executive com pensation plan.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
31

G eneral Foods C o rp .---Continued

Investm ent of 

p a rtic ip a n t’ s 

contribution:

C om pany’ s com m on stock.

C om pany’ s 

contribution:

O ne-sixth of cost of sh ares pu rch ased by participant, or $1 for 

for every $5 contributed by participant.

W ithdrawal 

of money 

from fund:

Only com plete withdrawal of amount in account is perm itted.

Paym ent from 

fund in 

case of

retirem ent, 

death, or 

reaso n s other 

than disch arge 

or resignation:

100 percen t of amount credited to p articip an t’ s account, which 

participant or ben eficiary m ay requ est tru stee to use to purch ase 

com pan y’ s com m on stock.

Vesting: 100 p ercen t of amount credited to p a rtic ip a n t’ s account.

P ro v isio n s in 

illu strativ e 

union a g r e e ­

ment:

Collective bargaining agreem ent between the P o st D ivision and 

the Carton and Container D ivision of the C orporation and R etail, 

W h o le sa le and D e p a r tm e n t S to r e Union, L o c a l 374, A F L —CIO, 

B a t t le C r e e k , M ich. , d ate N o v e m b e r 10, I9 6 0 , p r o v i d e s :

"E m ploy ees shall have the benefit of all vacation, insurance, 

retirem ent, sick benefits and other recorded benefit plans for 

which they are eligible and which a re prom u lgated by the com pany 

in the field of person n el adm inistration from tim e to tim e. P u b ­

lications issu ed by the company explaining benefit plans for 

hourly rated em ployees will be furnished to the union. "

* U S. GOVERNMENT PRIN TIN G O FFIC E : 1962 0 — 637482

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis