Multiemployer Pension Plans

Under Collective Bargaining

Spring 1960

Prevalence

Benefit provisions

Administrative procedures

Functions of the administrator

Individual w o rk e r’s pension rights

Financial m anagem ent

Bulletin No. 1326

U.S. DEPARTMENT OF LABOR

in cooperation with Arthur J. Goldberg, Secreta ry

BUREAU OF LABOR STANDARDS

Arthur W. Motley, Director

BUREAU OF LABOR STATISTICS

Ewan Clague, Commissioner

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Federal Reserve Bank of St. Louis
Multiemployer Pension Plans

Under Collective Bargaining

Spring 1960

• Prevalence

• Benefit p ro v isio n s

• A d m in istra tive procedures

• Functions of the a d m in istra to r

• In d ivid u al w o r k e r ’s p e n sio n rights

• Fin an cial m an age m e n t

in cooperation with

BUREAU OF LABOR STANDARDS 

Arthur W. Motley, Director

Bulletin No. 1326

June 1962

U.S. DEPARTMENT OF LABOR

Arthur J. Goldberg, Secretary

BUREAU OF LABOR STATISTICS 

Ewan Clague, Commissioner

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Preface

The W elfare and P ension Plans D isclosu re A ct, effective January 1, 1959, 

which is adm inistered by the U. S. Departm ent of L abor, brought into the custody 

of the Bureau of Labor Standards a vast collection of b a sic docum ents and reports 

dealing with w elfare and pension plans in effect throughout the United States. In 

cooperation with the Bureau of Labor Standards, the Bureau of Labor Statistics 

undertook this com prehensive study of the ch a ra cte ristics, types o f benefits, and 

adm inistrative features of m ultiem ployer pension plans under collectiv e bargaining. It is believed that this study accounts fo r all or virtually all such plans 

coverin g m ore than 25 w ork ers, in effect in the spring of I960.

The inform ation and docum ents required to be filed with the Departm ent 

w ere stipulated in the D isclosu re A ct and in the D epartm en ts fo rm s, which w ere 

m ade available to plan adm inistrators. This study m akes use of these subm ission s, p articu larly the docum ents, but it is not based exclu sively on the 

inform ation subm itted to the Departm ent under the D isclosu re A ct; other r e ­

sou rces of the Bureau of Labor Statistics w ere also used.

Since this is the fir s t study of its type based on the D isclosu re A ct 

file , a w ord on the ch oice of subject and the scope of the study seem s appropriate. T here was no intention on the part of either Bureau, of singling out 

m ultiem ployer pension plans for sp ecial treatm ent, although both Bureaus shared 

a keen in terest in the operation of these join tly adm inistered p rog ram s. A s 

origin ally planned this study was to be follow ed by a study of the finances of 

m ultiem ployer pension plans, and by sim ilar analyses of single em ployer pension 

plans and of single and m ultiem ployer w elfare plans, until eventually the great 

potential o f the entire file would be explored. Although this series of studies 

is not presen tly in p ro g re ss, it is hoped that it can be reinstituted at som e 

tim e in the future.

The Bureau of L abor S tatistics, which takes resp on sibility fo r the con ­

tents of this bulletin, is grateful fo r the assistan ce and cooperation tendered by 

the Bureau of L abor Standards, and, in particu lar, the staff of its D ivision of 

W elfare and P en sion R eports.

Sum m ary a rticles of this study appeared in the O ctober 1961 and the 

F ebruary and A p ril 1962 issu es of the Monthly L abor R eview . A few m inor 

d ifferen ces in the data reported, due to later rev ision s, w ill be found in this 

final bulletin.

This study was undertaken in the Bureau of L abor S tatistics, D ivision 

of W ages and Industrial R elations, under the general d irection of Joseph W. B loch. 

The bulletin was prepared by W alter W. K olodrubetz, who also planned and 

supervised the analysis of the reporting form s and plan docum ents and the co m ­

putation of the data. H arry E. D avis, M aurice L. Cunningham, and Stanley S. 

Sacks w ere resp on sible fo r the plan analysis. The entire p ro je ct was under 

the d irect supervision of Donald M. Landay.

in

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Contents

P re fa ce --------------------------------------

Chapter I. Introduction ----------

Scope and m e th o d ----------------

Chapter II. P revalen ce and m a jor ch a ra cteristics

Size of p la n s ------------------------------------------------------------

Industry and union representation ----------------------

G eographic area -----------------------------------------------------

W orker m obility

T ran sferability of pension rights 

R e c ip r o c it y --------------------

Ffetge

iii

1

2

5

5

5

8

9

9

10

N orm al retirem ent provision s

N orm al retirem ent age -----

Benefit form ulas -----------------

Contributions based on earnings or pa y roll —-------------------- ----------------------- — 15

Other contribution b a s e s ---------------------------------------------------------------------------------- 15

Chapter III. Benefit p r o v is io n s ------------------------------------------------------------------------------- 19

P articipation requirem ents ------------------------------------------------------ 20

21 

21 

22

24 

24 

24 

24 

26 

27

30

31 

33 

35 

39

P ast se rv ice benefit form ulas

Social secu rity in te g r a tio n ----

Minim um benefit — -----------------

Form of paym ents

Optional form s of benefit p a y m e n t---------------------------

Amount of n orm al retirem ent benefit ----------------------

E arly and disability retirem ent, and vesting --------------

E arly retirem ent provision s ------------------------------------

D isability retirem ent provision s -----------------------------

Vesting provision s ——-------------------------------------------------

Death b e n e fits -------------------------------------------------------------------

Chapter IV. A dm inistrative p r o c e d u r e s ---------------------------

C om position of the board ------------------------------------------------

T erm of board m e m b e r s --------------------------------------------

Size of b o a r d s --------------------------------------------------------------

O fficers of the board

Selection of o ffice rs 

T erm of chairm an ~

A ffiliation of chairm an 

P roced u res of the board —

Regular m eetings --------

Special m eetings

Quorum --------------

Lack of quorum . 

Voting

D eadlocks and arbitration

43

44

47

48

49

50 

54 

54

54

55 

55

57

58

59

60

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Contents—Continued

P a g e

Chapter V. Functions of the.adm inistrator and protection of

individual w ork er1 s pension righ ts------------------------------------------------------------------------ 63

A dm inistrative procedures -------------------------------------------------------------------------------- 63

Maintaining re co rd s -------------------------------------------------------------------------------------- 64

R eceiving applications ------------------------------------------------------------------------------------ 64

P ro ce ssin g claim s ___________________________________________________________ 65

D eterm ining eligibility ---------------------------------------- 65

Appeals ------------------------------------------------------------------------------------------------------------- 66

Final decision on appeals ----------------------------------------------------------------------------- 66

S e rv ice -cre d itin g provision s ----------------------------------------------------------------------------- 67

Am endm ent of the pension plan ------------------------------------------------------------------------- 70

R estriction s on reem ploym ent after retirem ent --------------------------------------------- 73

R estricted em p loy m en t______________________________________________________ 73

Maximum earnings tests -------------------------------------------------------------------------------- 76

G eographic lim its ____________________________________________________________ 76

P enalties ---------------------------------------------------------------------------------------------------------- 77

N otification ___________________________________________________________________ 79

P reced en ce to assets in case of term ination of the p la n _____________________ 81

P rotection of pension credits in case of withdrawal of 

an individual em ployer -------------------------------------------------------------------------------- 85

Chapter VI. Financial m an agem en t______________

Selection of m edium of fu n d in g --------------------------

Selection of c a r r ie r or corp orate trustee —

R eceipt of contributions --------------------------------------

C ollection of em ployer contributions _______

Inspection of em ployer re co rd s -------------------

Investm ent policy ------------------------------------------------

Authorization of expenses and benefits ------------

Party making p a y m en t-----------------------------------

Bonding req u irem en ts___________________________

87

88

89

89

90

91

92

94

95 

95

T ables:

1. M ultiem ployer pension plans under collectiv e bargaining

by date of establishm ent __________________________________________________ 98

2. M ultiem ployer pension plans under colle ctiv e bargaining

by num ber of w orkers c o v e r e d ___________________________________________ 98

3. M ultiem ployer pension plans under collectiv e bargaining

by industry group ---------------------------------------------------------------------------------------- 99

4. National and international unions participating in

m ultiem ployer pension plans _____________________________________________ 100

5. M ultiem ployer pension plans under co llectiv e bargaining

by region and State ________________________________________________________ 101

6. Type of adm inistrator in m ultiem ployer pension plans

under collectiv e bargaining ----------------------------------------------------------------------- 101

7. M ultiem ployer pension plans under collectiv e bargaining

by industry group and m edium of funding _______________________________ 102

8. Minimum age and se rv ice requirem ents fo r participation in

m ultiem ployer pension plans under collectiv e b a rg a in in g _____________ 103

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Contents—Continued

P a g e

Table s— Continued

9. N orm al retirem en t age in m ultiem ployer pension plans under

collectiv e bargaining by industry group ------------------------------------------------------- 103

10. N orm al retirem en t age in m ulti em ployer pension plans under

collectiv e bargaining by m edium of funding ------------------------------------------------- 104

11. Types of benefit form u las in m ultiem ployer pension plans

under colle ctiv e bargaining by industry g r o u p --------------------------------------------- 104

12. Types of benefit form u las in m ultiem ployer pension plans

under colle ctiv e bargaining by m edium of fu n d in g -------------------------------------- 105

13. F orm of paym ent of retirem en t benefit in m ultiem ployer

pension plans under co llectiv e bargaining

14. F orm of paym ent of retirem en t benefits in m ultiem ployer

pension plans under colle ctiv e bargaining

by m edium of funding -------------------------------------------------------------------------------------- 106

15. Optional annuity form s in m ulti em ployer pension plans under

collectiv e bargaining by industry group ------------------------------------------------------- 107

16. Optional annuity form s in m ulti em ployer pension plans under

collectiv e bargaining by m edium of funding-------------------------------------------------- 108

17. N orm al retirem en t m onthly benefits, excluding socia l secu rity

benefits, for w ork ers earning $4, 800 per year for 30 years

of future credited serv ice by industry group, in m u ltiem ployer

pension plans under collectiv e bargaining --------------------------------------------------- 109

18. N orm al retirem en t benefits, excluding socia l secu rity benefits,

for w ork ers earning $4, 800 ($400 per month) per year fo r

30 years of future credited se rv ice by m edium of funding, in

m ultiem ployer pension plans under collectiv e b a rg a in in g ------------------------- 111

19. N orm al retirem en t benefits, excluding social secu rity benefits,

for w ork ers earning $4, 800 per year fo r 30 years of future

credited se rv ice by type of benefit form ula, in m ultiem ployer

pension plans under co llectiv e bargaining --------------------------------------------------- 112

20. P rov ision s fo r norm al, early, disability retirem ent, and

vesting in m ultiem ployer pension plans under collectiv e

bargaining by plans and w ork ers c o v e r e d --------------------.-------------------------------- 113

21. Type of benefit provision s in m ultiem ployer pension plans

22. Type of benefit provision s in m ultiem ployer pension plans

by m edium of funding -------------------------------------------------------------------------------------- 116

23. P rov ision s for early and disability retirem ent, and vesting in

m ultiem ployer pension plans under collectiv e bargaining

by industry g ro u p ---------------------------------------------------------------------------------------------- 117

24. P revalen ce of level incom e option under early retirem en t

p rovision s in m ultiem ployer pension plans under co llectiv e

bargaining by industry group ------------------------------------------------------------------------- 118

25. P revalen ce of level incom e option under early retirem en t

provision s in m ultiem ployer pension plans under collectiv e

bargaining by m edium of funding ------------------------------------------------------------------- 118

26. P rov ision s for death benefits b efore and after retirem en t

in m u ltiem ployer pension plans under collectiv e bargaining

by industry group --------------------------------------------------------------------------------------------- 119

vn

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Contents— Continued

P a g e

Tables— Continued

27. P rov ision s fo r death benefits b efore and after retirem ent

in m ultiem ployer pension plans under colle ctiv e bargaining

28. Designated o ffice r s of boards in m ulti em ployer pension plans

under co lle ctiv e bargaining -----------------------------------------------------------------—------120

29. P rov ision s fo r selection of o ffice r s in m ultiem ployer pension

plans under co llectiv e bargaining --------------------------------------------------------------- 121

30. P rov ision s fo r sp ecial m eetings in m ultiem ployer pension

plans under co llectiv e bargaining —------------------------------------------------------------- 122

31. Voting rules in join tly adm inistered m ultiem ployer pension

plans under co llectiv e bargaining --------------------------------------------------------------- 122

32. P arties perform in g specified functions in m u ltiem ployer

pension plans under co llectiv e bargaining ------------------------------------------------- 123

Charts:

1. Growth in coverage of m u ltiem ployer pension plans under

colle ctiv e bargaining, 1943—59 -------------------------------------------------------------------- 6

2. Monthly norm al retirem ent benefits (excluding so cia l security)

fo r a w orker earning $4, 800 a year with 30 years of future 

se rv ice in m ultiem ployer pension plans under collectiv e

A ppendixes:

A: Scope and m ethod of stu d y ------------------------------------------------------------------------------ 125

B: F orm D -l ---------------------------------------------------------------------------------------------------------- 129

vm

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Multiemployer Pension Plans Under Collective Bargaining, Spring I960

Chapter L Introduction

P rivate pension plans have been grow ing at a rapid pace during the past 

two decades. Their covera ge rose from about 4 m illion w ork ers in 1940 to 

11.2 m illion in 1950, and to 21.8 m illion w ork ers (including 1.6 m illion retired 

w ork ers) in 1959* 1 C ollectiv ely bargained plans accounted fo r about half of 

I960 total c o v e r a g e .1 2

The developm ent and growth of join tly adm inistered, co lle ctiv e ly b a rgained plans coverin g w ork ers em ployed by a num ber of em ployers in an industry 

or area has contributed to this expansion. Since these m ultiem ployer plans are 

relatively young— only a few existed p rior to 1947— their covera ge has risen 

rapidly from about a m illion w ork ers in 1950 to 3. 3 m illion in 1959, when they 

cov ered about a sixth of all w ork ers cov ered by private pension plans and about 

a third of those under negotiated program s. T hese plans now include m ost w ork ­

ers in sev era l industries ch aracterized by m ulti em ployer co lle ctiv e bargaining. 

H ow ever, sin ce a large fraction of the w ork ers under sm all agreem ents (those 

coverin g few er than 1, 000 w ork ers each) do not yet have pension plan protection, 

room for further expansion rem ains.

The covera ge of a m ultiem ployer pension plan under collectiv e b a rgaining tends to p arallel the covera ge of the m u ltiem ployer collectiv e bargaining 

agreem ent. T ypically, a plan is established by a union persuading a group of 

em ployers with which it has a single agreem ent, or som etim es a num ber of em ­

ployers under separate con tracts, to make sp ecified paym ents to a pooled central 

fund. F rom this pooled central fund, benefits are provided fo r the eligible w ork ­

ers of all contributing em p loyers. These plans m ost com m only are found in in ­

dustries such as construction, food, apparel, m ining, m otor and w ater tran sportation, and se rv ice and trade, which are ch aracterized by seasonal and irregu lar 

em ploym ent, sm all establishm ents, and such frequent job changes that few w ork ­

ers rem ain with a single em ployer long enough to qualify fo r pensions. Thus, 

m ultiem ployer plans often provide pension covera ge fo r many w ork ers who would 

not, and perhaps could not, be covered by a single em ployer plan.

Although 71 national and international unions participate in m ultiem ployer 

pension plans, alm ost 2 out of 3 w ork ers cov ered by these plans are represen ted 

by 1 of 6 unions: T eam sters, Am algam ated Clothing W ork ers, International

Ladies* Garm ent W orkers, C arpenters, E le ctrica l W orkers (IBEW), and United 

Mine W ork ers. On the other hand, many other large unions, such as the Steelw ork ers, Auto W ork ers, and Rubber W orkers, rarely participate in m ultiem ployer 

pension plans, ch iefly because they have few m u ltiem ployer agreem ents. A ll six 

of the unions with large m ultiem ployer plan covera ge have one or m ore large 

national or region al plans, such as the United Mine W orkers R etirem ent Fund, 

which co v e rs num erous em ployers throughout broad geographic areas, or throughout an industry.

1 A lfred M. Skolnik, "T ren ds in E m ployee-B en efit P lans: P art II" Social 

Security B ulletin, May 1961, p. 7.

2 D orothy R. Kittner, "Health, Insurance, and P ension Plan C overage in 

Union C ontracts, " Monthly Labor R eview , M arch 1962, pp. 274—277. Data in this 

article exclude retired w ork ers who are included in all the data in this report.

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The benefit provision s and adm inistrative features of m u ltiem ployer plans 

differ sharply, in som e re sp ects, from single em ployer plans. These d ifferen ces 

stem , in part, fro m the ch a ra cteristics of the industries in which they operate, 

in part from d ifferen ces in the co lle ctiv e bargaining relationship between the 

parties, and in part from the differen ce between a single em ployer and a group 

of em ployers who m ay, in th em selves, com p rise the labor m arket, or a large 

part of it. To cite one exam ple of a fundamental d ifferen ce: The resp on sibility

of the individual em ployer in a m u ltiem ployer plan is usually lim ited to the co n ­

tribution of a sp ecified amount of m oney on behalf of his em ployees, w hile in a 

single em ployer plan the em ployer is usually obligated to provide sp ecified types 

and levels of benefits. No m onetary obligations are sp ecified in the agreem ent; 

rather they are im plied by the ben efits. In m ultiem ployer agreem ents, on the 

other hand, the m onetary obligations are typically sp ecified, and the determ ination 

of benefits is usually left to the d iscretion of a joint em ployer-u n ion board, and 

is often subject to change at the d iscretion of this board.

Although the approaches to devising benefits d iffer, the basic benefits 

of m ulti em ployer plans are sim ila r in type to those in single em ployer plans. 

H ow ever, som e types of benefits such as vestin g, are found m ore often in single 

em ployer plans than in m ultiem ployer plans, but this differen ce is offset by the 

inherent portability of credited se rv ice among participating em ployers in m u ltiem ployer plans.

C ollectiv ely bargained single em ployer and m ultiem ployer plans also 

differ significantly in their adm inistrative featu res. M ultiem ployer plans are 

jointly m anaged by the union and the em ployer group w hile, with som e exceptions, 

single em ployer plans are m anaged ex clu siv ely by the em ployer. This d ifferen ce 

partly reflects the legal requirem ent, contained in the Labor M anagement R elations 

A ct, 1947, that both parties be equally represen ted in the m anagem ent of unionsponsored em ployer-*financed w elfare and pension funds. The adm inistration of 

m u ltiem ployer plans involves such nonfinancial functions as p rocessin g app lications, p rocessin g cla im s, and awarding benefits, as w ell as such financial fu n ctions as receivin g contributions, m aking investm ents, and paying benefits. A lthough, as in single em ployer plans, som e or all of these functions m ay be 

delegated to other parties, generally the nonfinancial functions are handled d irectly 

by the joint union-m anagem ent board. H ow ever, in about 1 out of 6 plans, investm ents are determ ined and benefits are paid by an insurance com pany. In 

another fifth of the plans, investm ents are m ade through a corp orate trustee. In 

the rem ainder, investm ents are m ade and benefits are paid directly by the board.

Scope and Method

A m ultiem ployer pension plan under collectiv e bargaining, as the term 

is used in this study, is a pension plan negotiated by a union coverin g the e m ­

ployees of two or m ore financially unrelated em ployers. Plans established and 

m aintained outside of a collectiv e bargaining relationship (such as u n ion -spon sored 

plans) which are w holly financed by the m em bers and to which em ployers are not 

a party, are excluded.

The ch ief sou rces of inform ation fo r this study w ere the reports and 

docum ents filed with the U. S. Departm ent of L aborfs Bureau of Labor Standards 

pursuant to the W elfare and Pension Plans D isclosu re A ct (Public Law 85-836) 

by plans coverin g over 25 w ork ers. The form s filed by over 25,000 plans showed 

that they provided pension benefits or a com bination of w elfare and pension ben efits. H ow ever, no inform ation was available on the form s directly distinguishing 

m ultiem ployer plans from single em ployer plans. It was assum ed that few m u ltiem ployer pension plans under co llectiv e bargaining are adm inistered solely by

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em ployers or an em ployers* association , and nearly 20,000 such plans w ere r e ­

m oved from consideration. The description s and supporting docum ents of the r e ­

m aining 5,600 pension plans adm inistered join tly or by an em ployee organization 

w ere exam ined to determ ine whether they w ere, in fact, m ultiem ployer pension 

plans under collectiv e bargaining. A com parison of the resulting list of plans with 

other sou rces revealed som e om ission s which w ere filled in by using the Bureau of 

Labor Standards1 union index referen ce file. M ultiem ployer pension plans not 

under co lle ctiv e bargaining have been excluded from the study because of their unim portance in relation to the whole pension field at the present tim e. Further 

details of scope and m ethod of study are found in appendix A.

This bulletin d escrib es the m ajor ch a ra cteristics o f co lle ctiv e ly b a rgained m ultiem ployer pension plans in the spring of I960, including their size, 

their prevalen ce by industry and union, and their financial and general adm inistrative featu res. Of the 798 plans coverin g 3. 3 m illion active and retired w ork ers 

studied, 62 plans (7.8 percent), coverin g 152,500 w ork ers, w ere in the p ro ce ss 

of form ulating and establishing their p rov ision s. F or these plans, very little 

inform ation other than the m a jor ch a ra cteristics w ere available at the tim e of the 

study. Thus, the analysis of pension benefit provision s including norm al, early, 

and disability pensions, vesting, death benefits, and optional benefit provision s 

was lim ited to 7 36 fully developed plans coverin g 3.2 m illion w ork ers. The co m ­

position, selection , and procedures of the boards of adm inistration of the 7 36 plans 

are exam ined in detail. T hese details include the num ber, selection , and tenure 

of board m em bers and o ffic e r s ; quorum and voting ru les; and p roced u res fo r the 

selection of im partial u m pires. In addition, plan provision s determ ining w o rk e rs1 

pension rights, such as se rv ice crediting p rov ision s, the right of the board to 

reduce the benefits of retired w ork ers, restriction s on amendments of the plan, 

and restriction s on reem ploym ent after retirem en t are analyzed. Som e nonfinaneial adm inistrative details (maintaining of re co rd s, determ ining eligibility, 

and appeals p roced u res) and certain financial p ra ctices (inspection of em ployer 

re co rd s, collection of em ployer contributions, and bonding of o ffice rs and em ­

ployees) are exam ined in the concluding chapters.

It m ust be em phasized that this study, because it deals with the p ro ­

visions of plan docum ents, is a study of form a l rules and proced u res, not of 

actual pra ctice.

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Chapter II. Prevalence and Major Characteristics

Seven hundred and ninety-eight m ultiem ployer pension plans under c o llective bargaining, coverin g 3. 3 m illion w ork ers, active and retired, w ere in 

effect in the spring of I960. These plans accounted fo r alm ost a sixth of the 

estim ated number of w ork ers, active and retired, cov ered by all private pension 

plans, and about a third of the estim ated number of w ork ers under all c o lle c ­

tively bargained plans. It is estim ated that the 3. 3 m illion w ork ers under all 

m ultiem ployer pension plans represented roughly th ree-fifth s of the estim ated c o v ­

erage of all m ultiem ployer collectiv e bargaining agreem ents (excluding railroad s).

M ultiem ployer pension plans are, on the whole, relatively young. Only 

8 of the 7 36 plans in effect in the spring of I960 for which the date of establish ­

ment is known w ere established p rior to January 1, 1946— the effective date of

several adm inistrative requirem ents of the T aft-H artley A ct 3 (chart 1 and table 1). 

Seven percent of the plans, coverin g over a fourth of the w ork ers, w ere established 

before 1950. A spurt in the developm ent of plans occu rred after 1954; about 

60 percent of the plans w ere less than 6 years old in the spring of I960.

Size of Plans

The 798 plans studied ranged in coverage from 26 to approxim ately 

250, 000 active and retired w ork ers. Although m u ltiem ployer plans are generally 

thought of as large scale undertakings, 54 plans cov ered few er than 100 w orkers 

each, and 230 plans had from 100 to 499 w ork ers (table 2). Plans with few er 

than 5, 000 w orkers com prised alm ost nine-tenths of the plans and nearly a fourth 

of the w ork ers. On the other hand, the 6 largest plans, each with over 100,000 w orkers, covered alm ost a third of all w orkers under m ultiem ployer plans. These 

six plans w ere as follow s: United Mine W orkers of A m erica W elfare and R e tire ­

ment Fund; Central States, Southeast and Southwest A reas Pension Fund (T eam ­

sters); The Am algam ated Insurance Fund-P ension Fund (Clothing W orkers); A m algamated Cotton Garm ent and A llied Industries R etirem ent Fund (Clothing W orkers); 

W estern C onference of T eam sters Pension Fund; and International Brotherhood 

of E lectrica l W orkers Pension Benefit T rust Fund. Slightly m ore than a third of 

the w ork ers w ere attached to 46 plans with covera ges ranging from 10, 000 to 

100,000 w ork ers.

Industry and Union Representation

M ore than th ree-fifth s of the plans (499), with 2 m illion w ork ers, w ere in 

nonmanufacturing industries, and over one-third of the plans (286), with about 

1. 3 m illion w ork ers, w ere in m anufacturing (table 3). Thirteen plans involved 

both m anufacturing and nonmanufacturing establishm ents.

The disp ersion of m ultiem pioyer plans by industry follow s the pattern 

of m ultiem ployer collectiv e bargaining relationships. 4 M ajor groupings of cov ered 

w orkers w ere found in food and apparel among m anufacturing industries, and in 

m ining, construction, m otor transportation, and trade among nonmanufacturing 

industries. N early three-fou rth s of all plans, coverin g five-six th s of the w ork ers, 

w ere in these industries. Although only 1 out of 10 plans was in the apparel industries, these plans included alm ost 1 out of 4 of the w ork ers covered by all

3 Pension plans established p rior to this date are exem pt from the req u irements of Subsection 302 (c) (5) (B) the Labor M anagement Relations Act, 1947.

4 See "C h aracteristics of M ajor Union C ontracts, " Monthly L abor R eview , 

July 1956, pp. 805—811.

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Chart 1. Growth in Coverage of Multiemployer Pension

Plans Under Collective Bargaining, 1943-59 1

Number of

Workers Covered2 

(Cumulative)

(In thousands)

Date of Establishment

1 Data exclude $2 plant covering 119,200 workers for |whichi information was not available. 

* Workers covered based on 1959 coverage of active and retired workers.

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plans. The construction industry, which had 1 out of 3 plans, cov ered only lou t of 

5 w ork ers. The food and trade industries also had sm aller than average plans, so 

that with 11.0 and 11.9 percen t of the plans they only covered 6.9 and 9. 3 p e r ­

cent of the w ork ers, resp ectively. Owing to very large national and regional plans 

in the coal m ining and m otor transportation industries, the proportion of w orkers 

covered was substantially greater than the proportion of plans in these industries.

The only other industries with a significant num ber of m ultiem ployer 

plans and w orkers covered , relative to total industry em ploym ent, w ere water 

transportation, printing and publishing, and m otion pictu res and recreation . No 

m ultiem ployer plans w ere found in industries such as petroleum , com m unications, 

and public u tilities, where m ulti em ployer bargaining is uncom m on, but the in ­

cidence of single em ployer pension plans is high. Sim ilarly, among m etalw orking 

industries, where at least 3. 9 m illion w orkers w ere covered by pension plans under 

collectiv e bargaining, only 57,000 w ere covered by m ultiem ployer pension plans.

M em bers of 71 national and international unions w ere covered by the 

798 m ultiem ployer plans (table 4). The T eam sters had the largest num ber of 

individual plans (121), about 15 percen t o f the total with alm ost 20 percen t of 

the w orker coverage. Their plans w ere concentrated p rim a rily in m otor tran sportation, food m anufacturing, and w holesale and retail trade industries. The 

International Ladies* Garment W orkers and the Am algam ated Clothing W orkers, 

which accounted for virtually all plan coverage in the apparel industries, had 

62 plans com prisin g over 20 percen t of the w ork ers. These three unions, plus 

the C arpenters, E le ctrica l W orkers— IBEW (with plans p rim arily in the con ­

struction industry), and United Mine W orkers (excluding D istrict 50), had about 

a third of the plans covering alm ost tw o-thirds of all w ork ers. These 6 unions 

each participated in plans with a coverage of m ore than 100,000 w ork ers, and 

with the exception of the C arpenters, each of the unions had at least 1 plan c o v ­

ering m ore than 50,000 w ork ers.

The unions ordin arily associated with the construction industry had a 

high degree of participation in m ultiem ployer plans. In addition to the C arpenters, and E lectrica l W orkers (IBEW), they included the A sbestos W orkers, 

B rick layers, Hod C a rrie rs, P ainters, P la ste re rs, P lum bers and P ipefitters, 

and Sheet M etal W orkers. A ll or m ost of the plans in which these unions p a rticipated (with the exception of the Carpenters and the E le ctrica l W orkers) had 

few er than 5, 000 w orkers per plan. In the m aritim e industry, where a high 

degree of unionization is also found, the Longshorem en (on both coasts), the 

M aritim e, the M arine E ngineers, and the M asters, M ates and P ilots unions also 

had a high degree of participation in m ultiem ployer pension plans.

Several unions in food manufacturing— the B rew ery W orkers and the 

two Bakery W orkers unions (both the A F L -C IO affiliate and the independent 

union)— and in trade— the Retail C lerks, Hotel & Restaurant E m ployees, the 

Meat Cutters, and the R etail, W holesale and Departm ent Store Union— com m only 

negotiated m ultiem ployer plans.

Twenty unions had only a single plan; in som e ca se s, this plan covered 

as many w ork ers as the union had m em bers, including the M achine P rin ters 

(In d.), the Newspaper and M ail D eliv erers (In d .), and the A m erican Radio A s ­

sociation. N early the entire m em bership of som e unions, such as the International L ad ies1 Garment W orkers, Am algam ated Clothing W orkers, and United 

Mine W orkers (Ind. ) excluding D istrict 50, M aritim e, and M arine E ngineers, 

belonged to m ultiem ployer plans. 5 Between 20 and 75 percen t of the m em bers

5 F or I960 m em bership data, see D irectory of National and International 

Labor Unions in the United States, 1961, BLS Bull. 1320 (1962).

0

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of several large unions— T eam sters (In d .), both Bakery unions, Longshorem en*s 

A ssociation , C arpenters, E le ctrica l W orkers (IBEW), P lum bers and P ip efitters, 

and Retail C lerks— w ere covered by such pension plans.

Som e of the m ajor unions in the country, particu larly the Auto W orkers, 

Steelw orkers, M achinists, and E le ctrica l W orkers (IUE), had few or no m em bers 

in m ultiem ployer plans. M ost of the m em bers of these unions are covered by 

single em ployer collectiv e bargaining agreem ents and pension plans. 6

Although usually only 1 union participated in a plan, in 26 plans, covering 

over 110, 000 w ork ers, 2 or m ore international or national unions w ere involved. 

An exam ple of such a plan is the Building Trades P en sion Fund of W estern. 

Pennsylvania, in which the B rick lay ers, L athers, and P la ste re rs all participate.

G eographic A rea

In alm ost 90 percent of the plans (699), coverin g 50 percen t of the w ork ­

e rs, all participating em ployers w ere located within a single State (table 5). 

These intrastate plans operated in 33 States and the D istrict of Colum bia. They 

w ere concentrated m ainly in the M iddle Atlantic and East North Central regions, 

particu larly in New York, New J ersey , Pennsylvania, Illin ois, M ichigan, and 

Ohio. States outside these regions with substantial w orker coverage included 

C alifornia and M issou ri. In m ost ca ses, these intrastate plans w ere restricted 

to em ployers in a particular locality.

The 99 interstate plans included 56 plans with m em bers in 2 or m ore 

States within a region (intraregional) and 43 with m em bers in m ore than 1 region 

(in terregion al). The 43 interregional plans covered m ore than 45 percent of all 

w orkers in m ultiem ployer plans. Som e w ere national in scope (e. g. , IBEW 

P ension Benefit Trust Fund); others covered large num bers of w orkers in m ore 

lim ited geographic areas (e. g. , W estern C onference of T eam sters P ension Fund, 

and som e plans of the International Ladies* Garm ent W orkers and the A m algam ated Clothing W orkers).

With the exception of the mining industry, the heaviest concentration 

of plans in each of the industries studied was in the M iddle Atlantic region. The 

East North Central region had a substantial num ber of plans and w orkers covered 

in the food, printing, m etalw orking, construction, and m otor transportation in ­

du stries. The New England region had a large num ber of construction plans, 

while the P a cific region had a large number of w ork ers in both construction and 

trade. In the South Atlantic region, a significant num ber of plans w ere in 

w ater transportation.

M ost of the intrastate plans covered from 1, 000 to 10, 000 w orkers; in 

the Southern and Mountain States, few plans had over 5, 000 w ork ers. A m ajority 

of the interregion al plans covered over 5, 000 w ork ers.

6 See D igest of One-Hundred Selected Pension Plans Under C ollective B a rgaining, Spring 1961, BLS Bull. 1307(1962). S ince the analysis for the m ultiem ployer 

study was com pleted, the B oilerm ak ers, Operating E ngineers, and M achinists 

unions have introduced national plans fo r participating lo ca ls. The benefits in 

these plans depend upon the instituted contribution rates which vary from em ployer 

to em ployer.

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W orker M obility

T ran sferability of P en sion R ights. One of the distinguishing ch a ra cte ristics ^or~nTinHempTbyeF^eniion^pIins~Ts that the w orker rem ains covered and 

builds up se rv ice credits as long as he is em ployed by any one of the em ployer 

m em bers. Single em ployer plans, on the other hand, do not perm it continuance 

of pension coverage after a w orker leaves the com p an y .7 The protection a fforded by m ultiem ployer plans, how ever, depends on the scope of plan c o v ­

erage by occupation, industry, or geographic area. N early half of the w orkers 

in the spring of I960 belonged to lo ca l plans coverin g a single craft, occu p ational group, or industry, about a fourth to regional plans (m ostly covering an 

industry), and about a fourth to industrywide national plans.

The m ost lim ited type of m ultiem ployer plan, and also the m ost p re v a ­

lent, covered a particular craft or occupational group in a sp ecific industry in a 

m etropolitan area. T ypically, m ultiem ployer plans in the construction, dairy, 

and printing and publishing industries w ere of this kind. F or exam ple, in the 

construction industry in New Y ork City, separate m ulti em ployer pension plans 

have been established by the P ain ters, C arpenters, Sheet M etal W orkers, etc.

O ccupational m obility is furthered by m ultiem ployer pension plans such 

as those in the retail, apparel, and se rv ice in dustries, which covered w orkers 

with a wide variety o f occupations and skills in an industry in a specified m e tro ­

politan area. The plan covering drug stores in New Y ork City, for exam ple, 

included a variety of occupational groups, although lim ited to w orkers represented 

by a single union (L oca l 1199, R etail Drug E m ployees Union). A lso , a plan m ay 

include m ore than one union within its scope in an industry in a lim ited g e o ­

graphic area. F or exam ple, 10 unions participated in the plan covering hotels 

in New York City. A few plans included w orkers in m ore than one industry and 

occupation in a labor m arket area. F or instance, the Northwest Ohio A rea 

Industries— UAW R etirem ent Incom e Plan negotiated by the United A utom obile 

W orkers, covered about 2,000 w orkers em ployed by about 40 com panies in a 

num ber of different industries.

In som e occupations and industries, m u ltiem ployer pension program s 

cover an entire region or even the entire country. In the longshore industry on 

the W est Coast, for exam ple, a pension fund was established under a coastw ise 

agreem ent between the P a cific M aritim e A ssociation and the International L ongsh orem en ^ and W arehousem en^ Union (In d .). The very nature of the water 

transportation industry virtually com pels developm ent of such plans. Sim ilar 

regional plans w ere negotiated in the trucking and construction industries, but 

an even broader approach was found in the W estern C onference of T eam sters 

P ension Fund. Not only can the w orker m ove from em ployer to em ployer in the 

trucking industry in an 11-State area, but he can also m ove to contributing em ­

ployers in other industries in the area.

Nationwide m obility in certain industries was perm itted by a few large 

plans, covering about a m illion w ork ers. The UMWA W elfare and R etirem ent 

Fund covering virtually all w orkers under agreem ent in the bituminous coal in ­

dustry is probably the best known exam ple of this type of plan. Other national 

plans w ere form ed by the E le ctrica l W orkers (IBEW ), both Bakery W orkers 

unions, the Am algam ated Clothing W orkers, Furniture W orkers, and the Upholsterers* union.

7 The w orker m ay be protected by a vesting p rov ision an d /or tran sferability to branches, plants, and subsidiaries of m ultiplant firm s. See Pension 

Plans Under C ollective Bargaining: P art I. Vesting P rov ision s and R equ irem ents fo r E arly R etirem ent; P art II. Involuntary R etirem ent P rov ision s, Late 

1958, BLS Bull. 1259 (1959).

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R ecip rocity . The num ber and range of job s to which a w orker m ight 

tran sfer without loss of credited se rv ice w ere further broadened by 66 plans with 

re cip ro city agreem ents with other m ulti em ployer plans. Under these agreem ents,

Plans______ _ ______Workers1

Reciprocity provision Number Percent

Number

(thousands) Percent

All formulated plans 2 ------------------ 736 100.0 3 ,229.8 100.0

No provision, or information

not available ------------------------ 633 86.0 2 ,105.1 65.2

Reciprocity arrangements in effect with:

Plans in same union ---------------- 61 8.3 763.4 23.6

Plans in other unions -------------- 5 .7 36.0 1.1

Reciprocity arrangements may be

made with:

Plans in same union ---------------- 26 3.5 95.9 3.0

Plans in other unions -------------- 11 1.5 229.4 7.1

1 Worker coverage includes both active and retired workers in 1959.

2 Excludes 62 plans in the process of formulating plan provisions. See p. 3 .

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

which cov er a fourth of the m em bers of form ulated m ultiem ployer plans, serv ice 

under one plan is used to determ ine, in part, the benefits provided by another 

plan. A ll but five plans w ere lim ited to tran sfers among plans of the sam e 

union. O ver half of the 66 plans w ere negotiated by the ILGWU, and they allowed 

virtually unlim ited tran sfers of credits among them.

An additional 37 plans, coverin g about a tenth of the w ork ers, gave pow er 

to the adm inistrator to w ork out re cip ro ca l arrangem ents with plans of their own 

union and, in 11 of these cases, other unions as w ell.

None of the plans with few er than 100 m em bers contained recip rocity 

provision s of any kind, although sm all plans presum ably have the greatest need 

for such arrangem ents. While a number of plans in all other size categories

Without With

Total reciprocity reciprocity

Size of plan Plans

Workers 1

(thousands) Plans

Workers 1

(thousands) Plans

Workers

(thousands)

All formulated plans ----- 736 3,229.8 633 2 ,105.1 103 1,124.7

26 to 99 workers ---------- 45 2.7 ^5 2.7 _ _

100 to 499 workers -------- 207 96.4 190 91.6 17 ^•9

500 to 4,999 workers ----- 387 662.7 331 562.2 56 100.0

5,000 to 24,999 workers -- 75 718.9 52 492.3 23 226.5

25,000 workers and over — 22 1,749.1 15 955.8 7 793.3

Worker coverage includes both active and retired workers in 1959.

Excludes 62 plans in the process of establishing plan provisions. See p. 3.

NOTE: Because of rounding, s m s of individual itams may not equal totals.

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had such p rov ision s, the proportion was higher among the la rger plans; 7 of the 

22 plans coverin g 25,000 or m ore w ork ers had re cip ro city p rov ision s, as c o m ­

pared with only 56 of the 387 plans with 500 to 5,000 w ork ers.

Financing

A lm ost all m ultiem ployer plans studied w ere financed entirely by e m ­

ployer contributions.

Plans______ ____ Wo rkers \ ____

Number

Method of financing Number Percent (thousands) Percent

All plans ---------------------------- — 798 100.0 3,324.8 100.0

Source of contribution

Employer o n l y ------------------- ----- --- 764 95.7 3,262.3 98.1

Employer and worker ------------------ --- 30 3.8 60.9 1.8

Worker only -------------------------- --- if .5 1.7 .1

Worker coverage Includes both active and retired workers In 1959*

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

In general, participating em ployers contributed to a central fund to p r o ­

vide benefits fo r covered w ork ers. The individual e m p lo y e e s obligation 8 usually 

was fixed fo r the term of the co llectiv e bargaining agreem ent. Only rarely w ere 

the em ployers, individually or collectiv ely , obligated to provide, as is custom ary 

in single em ployer plans, specified types and levels of benefits.

Three out of five plans, with alm ost half of the w ork ers, provided for 

a contribution rate based on the tim e w orked by each em ployee covered by the 

plan. (See b e lo w .) About 1 out of 4 plans, coverin g over a third of the w ork ­

e rs, required the em ployer to contribute a fixed percentage of each em ployee1 s 

earnings or of the p ayroll as a whole. A few plans established other m ethods 

of building up pension fund re se rv e s.

Plans Workers 1

Basis of employer contribution rate Number Percent

Number

(thousands) Percent

All formulated plans ^ ------------------- - 736 100.0 3,229.8 100.0

Specified rate -------------------------- 434 59.0 1,535.2 47.5

Per hour worked ------------------- 210 28.5 765.3 23.7

Per week ---------------------------- - 130 17.7 536.0 16.6

Per month --------------------------- 39 5.3 83.5 2.6

Per shift -------- ------------------ 28 3.8 31.9 1.0

Per day ----------------------------- 27 3.7 118.6 3.7

Percent of earnings or payroll ---------- 169 23.0 1,146.2 35.5

Other ------------------------------------ 8 1.1 303.7 9 A

No contribution ------------------------- 4 .5 1.7 .1

Information not available --------------- 121 16.4 243.0 7.5

2 Worker coverage includes both active and retired workers in 1959.

Excludes 62 plans in the process of establishing plan provisions.

See p. 3.

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

8 Som e plans had different contribution rates fo r em ployers covered by the 

sam e plan. See p. 127 fo r m ethod of analysis.

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Contributions B ased on Tim e W orked. About half the plans with contributions based on som e tim e unit of w ork used hours actually w orked, alm ost onethird used the w orkw eek, while the rem aining plans used days, shifts, or months 

w orked. Many plans based the em p loyer's obligation on the num ber of em ployees 

actually on the payroll for^ a specified number of hours, not n e cessa rily the full 

period. Thus, in som e plans, the full em p loy er's contribution would be payable 

if the w orker was em ployed a m inim um num ber of hours— usually m uch less than 

the fu ll-tim e period. In other plans, esp ecially those on a w eekly b a sis, the em ­

p lo y e r's contribution was proportionate to the hours w orked, usually up to a sp e cified m axim um contribution. Clauses illustrating som e of these form ulas follow :

P er week

P er week

P er hour

P er day

P er shift

P er month

. . . the em ployer shall pay . . . the sum of

$3. 50 per week for each of his em ployees covered 

by the articles of agreem ent . . .

(P er hour rate up to a m axim um rate)

. . . the em ployer agrees to contribute 10 cents per 

hour paid to any and all of his em ployees covered 

by this agreem ent but not to exceed $4 per week. 

Each em ployer shall pay to the trustee for d eposit in the trust fund, effective Septem ber 1 , 

1955, the sum of 10 cents per hour fo r every hour 

w orked for which such e m p lo y e r's em ployees r e ­

ceived com pensation.

Each em ployer shall pay to the trustees for deposit 

into the fund, the sum of 25 cents per day p er man 

on com pany payroll, em ployed subject to a c o lle c ­

tive bargaining agreem ent with the organization. 

. . . each em ployer shall pay to the fund at regu ­

lar intervals 5Zlh cents per sh ift's pay earned by a 

participant with such em ployer . . .

Each em ployer agrees to make to the fund . . .

a paym ent of $17. 30 per month fo r each em ployee 

working or paid for 80 or m ore straight-tim e hours 

per month.

Contributions on an hourly b a sis, sp ecified in 210 plans p rim a rily in 

the construction industry, ranged from less than 5 cents to m ore than 16 cents. 

The m ost frequent rate was 10 cents per hour.

Workers1

Rate per hour Plans (thousands)

All plans specifying an hourly rate ----- 210 765.3

Less than 5 cents ------------------------ 10 35-2

5 and under 6 c e n t s ---------------------- 17 12.1

6 and under 7 c e n t s---------------------- 9 38.6

7 and under 8 c e n t s ---------------------- 25 123.2

8 and under 9 c e n t s ---------------------- 7 21.1

9 and under 10 cents --------------------- 3 3.9

10 and under 11 c e n t s-------------------- 77 429.8

11 and under 12 c e n t s -------------------- 3 9*4

12 and under 13 c e n t s -------------------- 7 9 • 2

13 and under 14 c e n t s ------------------- 1 .2

14 and under 15 c e n t s ------------------- 4 7.7

15 and under 16 c e n t s ------------------- 24 39.8

16 cents and o v e r ----------------------- 14 26.6

Information not available---------------- 9 8.3

Worker coverage includes both active and retired workers in 1959•

NOTE: Because of rounding, sums of individual items may

not equal totals.

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^Daily rates sp ecified in 27 plans, m ainly in water transportation and 

w holesale and retail industries, ranged from less than 50 cents to over $2.

Workers 1

Hate per day plans (thousands)

All plans specifying a daily r a t e -------- 27 118.6

Less than $ 0 . 5 0 --------------------------- 6 13.8

$0.50 and under $0 .6 0 --------------------- 1 i|#6

$0 .6"0 and under $0 .7 0 --------------------- 1 11.1

$0.70 and under $0 .8 0 --------------------- 1 5.8

$0.80 and under $0 .9 0 --------------------- l 2.3

$0.90 and under $1 .0 0 --------------------- 1 2.8

$1.00 and under $2 . 0 0 --------------------- 11 30.5

$2.00 and o v e r ---------------------------- 3 13.7

Information not available ----------------- 2 33.9

Worker coverage includes both active and retired workers in 1959.

NOTE: Because of rounding, sums of individual items may

not equal totals.

The 28 plans specifying a rate per shift w ere all found in the printing 

industry. None of the rates per shift exceeded 90 cents.

Workers1

Rate per shift Plans (thousands)

All plans specifying a shift rate ------ 28 31-9

Less than $ 0 . 5 0 ------------------------- 7 6.9

$0.50 and under $0 .6 0 ------------------- 6 4.7

$0.60 and under $0 .7 0 ------------------- 10 10.7

$0.70 and under $0 .8 0 ------------------- 4 9.1

$0.80 and under $0 .9 0 ------------------- 1 .5

Worker coverage includes both active and retired workers in 1959*

NOTE: Because of rounding, sums of individual items may

not equal totals.

W eekly rates, usually found in the food, printing, m otor transportation, 

and w holesale and retail trade industries, required in 130 plans, ranged from 

less than $2 to m ore than $6.

Workers1

Rate per week Plans (thousands)

All plans specifying a weekly r a t e --------- 130 536.0

Less than $ 2 ------------------------------- 9 19.8

$2 and under $3 ---------------------------- 32 74.7

$3 and under $4----------------------------- 28 65.7

$4 and under $5 ---------------------------- 25 221.5

$5 and under $ 6 ---------------------------- 25 41.7

$6 and o v e r -------------------------------- 5 20.1

Information not available------------------ 6 92.4

1 Worker coverage includes both active and retired workers

in 1959.

NOTE: Because of rounding, sums of individual items may

not equal totals.

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Monthly rates in 39 plans, m ainly in the w holesale and retail trade industry, ranged from less than $10 to $37,

Workers1

Rate per month plans (thousands)

All plans specifying a monthly rate -------- 39 83.5

Less than $ 1 0 ------------------------------- 15 35*5

$10 and under $20 ------------------------- 15 34.2

$20 and under $ 3 0 ------------------------- 6 4. 1

$30 and under $ 4 0 ------------------------- 1 A

Information not available ----------------- 2 9-3

1 Worker coverage includes both active and retired workers

in 1959*

NOTE: Because of rounding, sums of individual items may

not equal totals.

A com posite distribution of the 434 plans specifying a contribution rate 

based on tim e w orked is presented below . A ll rates w ere converted to an hourly 

ba sis, assum ing 8 hours per day (except for the printing trades w here a 7 7 2 -hour

day was assum ed), 40 hours per w eek, and 473 weeks (173 hours) p er month. 

Under these assum ptions, contribution rates ranged from less than 1 cent to m ore 

than 16 cents an hour, and averaged 9 .7 cents an h o u r .9 A fourth of the plans, 

covering 44 percen t of the w ork ers, sp ecified contributions betw een 9. 5 and 

10.5 cents per hour.

Plans ___ Workers 2

Rate per hour (composite) ^ Number Percent

Number

(thousands) Percent

All plans with rates based on

time worked -------------------------- 434 100.0 1,535.2 100.0

Under 4.5 cents ------------------------ 33 7.6 89.2 5.8

4.5 and under 5.5 cents --------------- 50 11.5 81.6 5.3

5.5 and under 6.5 cents --------------- 21 4.8 65.2 4.2

6.5 and under 7-5 cents --------------- 23 5.3 71.9 4.7

7.5 and under 8.5 cents --------------- 53 12.2 150.9 9.8

8.5 and under 9.5 cents --------------- 12 2.8 37.5 2.4

9.5 and under 10.5 cents -------------- 110 25.3 676.O 44.0

10.5 and under 11.5 cents ------------- 8 1.8 16.1 1.0

11.5 and under 12.5 cents ------------- 10 2.3 12.8 .8

12.5 and under 13.5 cents ------------- 30 6.9 49.8 3.2

13.5 and under 14.5 cents ------------- 7 1.6 12.0 .8

14.5 and under 15.5 cents ------------- 31 7.1 55.0 3.6

15.5 cents and over ------------------- 27 6.2 73.3 4.8

Information not available -------------

Average * -------------------------------

19 4.4 143.9 9.4

9.7 cents per hour

See assumptions in text.

2 Worker coverage includes both active and retired workers in 1959.

^ Arithmetic mean, weighted by workers covered.

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

9 A rithm etic m ean weighted by number of w ork ers.

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Contributions B ased on Earnings or P a y ro ll, A fixed percentage of em ­

ployee earnings or payroll was contributed by em ployers under 169 plans, largely 

in the apparel, construction, and w holesale and retail trade industries. C ontribution rates expressed as a percentage of earnings w ere based on the earnings of 

each individual w orker or of the covered group as a whole (including, in som e 

ca ses, the earnings of all w ork ers in the group, even those not actually covered 

by the plan). Exam ples o f clauses expressing contributions as a percentage of 

earnings or payroll are:

. . . Pursuant to the bargaining agreem ent . . . each em ­

p loy er . . . shall . . . contribute 3 percen t of the payroll

fo r em ployees covered by this agreem ent.

sje s{e ijc

. . . Each em ployer . . . shall contribute 2 percen t of the

w ages of each m em ber of the union em ployed by such em ployer.

Rates of contribution ranged from 1 to m ore than 6 percen t, with the 

largest clu ster at 3 percen t. They averaged 2. 8 percent.

Plans ____Workers *

Percent of earnings or payroll Number Percent

Number

(thousands) Percent

All plans basing contributions on

payroll or earnings ------------------ 169 100.0 1,146.2 100.0

1 and under 2 percent ------------------ 19 11.2 212.0 18.5

2 and under 3 percent ------------------ 37 21.9 322.6 28.1

3 and under 4 percent ------------------ 63 37.3 420.1 36.7

4 and under 5 percent ------------------ 18 10.7 119.5 10.4

5 and under 6 percent ------------------ 12 7.1 32.5 2.8

6 percent and over --------------------- 4 2.4 7.2 .6

Information not available -------------- 16 9.5 32.1 2.8

Average 2 ------------------------------ 2.8 percent

2 Worker coverage includes both active and retired workers in 1959.

Arithmetic mean, weighted by workers covered.

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

Other Contribution B a se s. In five plans, em ployer contributions w ere 

based on factors other than em ploym ent or earnings. F or exam ple, em ployer 

contributions to the bitum inous and anthracite coal pension and w elfare funds 

w ere based on production. The bituminous agreem ent provides that:

. . . There shall be paid into said /w e lfa re and pen sion / fund 

by each signatory operator, $ 0 .4 0 per ton on each ton of bitum inous produced fo r use or sale.

Instead of using entirely different factors to determ ine contributions, three plans 

used a com bination of a percentage of earnings and tim e w orked.

Although m ost plans had a uniform contribution rate for all participating 

em ployers, about 15 plans indicated provision fo r sev eral rates which varied by 

area or industry or other fa cto rs. The provision s w ere found in plans negotiated 

in the food and trucking industries. U sually, the contribution rate is taken into 

account in determ ining the amount of benefit. F or exam ple, one plan in the 

trucking industry provided that a qualified w orker w hose em ployer contributed 

$6. 50 per week would receiv e $125 a month, upon his retirem ent at age 65, while 

a retired w ork er whose em ployer contributed $5.40 would receiv e $100 per month.

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Type of A dm inistration

The adm inistration of a pension plan involves day -to-d a y functions, such 

as p rocessin g applications, determ ining eligibility, awarding ben efits, and in terpreting the plan, as w ell as financial adm inistration, i. e. , selection of m edium 

o f funding, adoption of funding m ethods, receivin g contributions, investm ents, 

paym ent of ben efits, etc. 10 1 Some or all of these adm inistrative functions m ay be 

delegated to an insurance com pany, bank, se rv ice organization, union, em ployer, 

or salaried adm inistrative staff. In this analysis, how ever, adm inistration was 

cla ssified on the basis of original respon sibility. This respon sibility is usually 

d escribed in the trust indenture, the pension plan, or the union agreem ent.

Of the 798 m ultiem ployer pension plans, 735 plans coverin g alm ost th reefourths of the w ork ers provided for the appointment of a join t union-m anagem ent 

board (table 6). An additional 33 plans with one-eighth of the w ork ers provided 

fo r a join t board plus one neutral m em ber, usually acting as im partial chairm an. 

Nine plans covering 10 percen t of the w ork ers provided fo r a tripartite board 

with equal representation of union, m anagem ent, and neutral or public m em bers. 

E leven of the 798 plans, accounting fo r 6 percen t of all w ork ers cov ered , w ere 

adm inistered by the unions alone. 11

P rov ision for the appointment of a neutral im partial chairm an or trustee 

was found alm ost exclu sively in the apparel industry. The two large plans in the 

coal mining industry w ere adm inistered by tripartite boards. Sole union or em ­

ployer adm inistration was found in only 2 plans covering m ore than 1, 000 w ork ers.

M edium of Funding

Although the ultim ate respon sibility fo r the adm inistration of the plan 

rests with the adm inistrator, the function of providing the benefits (m edium of 

funding) m ay be delegated to another party or organization. In m ore than half 

of the plans, covering alm ost tw o-thirds of the w ork ers, these functions w ere not 

delegated, i. e. , the paym ent of benefits was done directly by the adm inistrator. 

(See follow ing tabulation.) About 1 out of 7 plans, coverin g a tenth of the w ork ­

e rs, provided benefits through an insurance com pany. Slightly m ore than a fifth 

of the plans, coverin g about an eighth of the w ork ers, funded benefits through 

a corporate trustee (a bank or trust com pany). Five percen t of the plans had 

not determ ined, at the tim e of the study, the organization through which benefits 

would be funded. In the rem aining plans (cla ssified as "oth er" in the tabulation 

on the follow ing page), benefits w ere usually provided by a com bination of paym ent by the adm inistrator, a corporate trustee, and an insurance com pany.

10 A m ore detailed analysis o f the pow ers, duties, and obligations o f the 

adm inistrator is included later in this study.

11 Subsection 302(c) (5) (B) of the Labor M anagement Relations A ct of 1947 

requ ires equal representation of em ployers and em ployees in the adm inistration of 

a fund w here such fund is maintained by em ployer paym ents. H ow ever, funds 

established b efore 1946 are exem pt from this subsection and the act does not 

apply to em p loyer-on ly adm inistered funds, or to plans coverin g only em ployees 

not engaged in interstate com m erce.

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Plans Workers ^

Medium of funding Number Percent

Number

(thousands) Percent

All plans --------------------------- 798 100.0 3,324.8 100.0

Insured ----------------------------- 119 14.9 334.4 10.1

Self-insured:

Administrator ----------------- 441 55.3 2,097.1 63.1

Corporate trustee ------------------ 170 21.3 460.5 13.9

Other 2 ----------------------------- 27 3.4 359.3 10.8

Information not available ---------- 41 5.1 73.6 2.2

1 Worker coverage includes both active and retired workers in 1959*

2 9 plans, covering 736,000 workers, were self-insured before retirement,

but a temporary annuity was purchased annually after retirement.

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

Insured plans w ere concentrated largely in contract construction, m otor 

transportation, and w holesale and retail trade (table 7). O ver 40 percen t of the 

w ork ers in m otor transportation plans w ere cov ered by insured plans. Corporate 

trusteed plans w ere m ost com m on in food and kindred produ cts, printing and 

publishing, construction, w ater transportation, and w holesale and retail trade. 

Self-adm in istered plans, how ever, w ere predom inant in m ost industries.

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Chapter III. Benefit Provisions

The planning and developm ent of benefits to be provided by m ulti em ployer 

pension plans under collectiv e bargaining are usually the exclu sive resp on sibilities 

of joint em ployer-union boards, as authorized by the trust agreem ents. In such 

ca ses, after the em ployers1 group and the union(s) have negotiated the rate of co n ­

tribution for financing benefits, the boards determ ine the benefits to be provided. 

M ajor changes in plan provision s are also w orked out by the boards. C lauses, 

sim ilar to the follow ing, giving a board pow er to form ulate plan p rov ision s, appear in m ost m ultiem ployer pension plans.

To establish a plan . . . which shall define the retirem ent ben efits to be provided by the em ployer contributions, the conditions 

of eligibility for such benefits, the term s of paym ent, and such 

other item s as the trustees shall deem it n ecessa ry to include. 

The aforesaid term s of the plan shall be determ ined by the 

trustees in their sole d iscretion on the basis of actuarial p rin ­

cip les, and shall be subject to change by the trustees r e tr o ­

actively or otherw ise from tim e to tim e.

In contrast, establishm ent and amendment of the level of benefits and 

other term s of single em ployer plans are negotiated d irectly by the em ployer and 

the union, along with wage and other fringe benefit issu es, typically under the 

p ressu re of contract term ination. By shifting the negotiation of benefits from 

the bargaining table to the calm er, le ss hurried atm osphere of the board room , 

m ulti em ployer plan trustees are provided an opportunity to act as trustees rather 

than as partisan union or m anagem ent representatives facing the tensions of c o llective bargaining. In such circu m stan ces, the judgm ent and cost estim ates of 

actuaries (or in su rers) can be m ore carefu lly con sidered.

Although the basic purposes of m ultiem ployer pension plans are sim ilar 

to those of single em ployer plans, significant d ifferen ces exist between them, 

which reflect, in part, differen ces in labor m arkets, industries, and bargaining 

stru ctu re s.12 Vesting and early retirem ent p rov ision s, for exam ple, are m ore 

prevalent in single em ployer plans; how ever, the tran sferability of credited s e r v ­

ice among participating em ployers— a bu ilt-in feature of m ultiem ployer plans— 

probably accom plish es as much as vesting for w orkers rem aining within the scope 

of the plan. Multi em ployer plans usually gear benefit amounts solely to credited 

se rv ice; single em ployer plans m ore often relate them to both earnings and s e r v ­

ice. Paym ent of cash (lump sum or installm ents) in lieu of p eriod ic pension 

benefits is m ore often found in m ulti em ployer than single em ployer plans.

12 R eferen ces to negotiated single em ployer plans in this chapter are based 

on a series of studies recently com pleted by the Bureau of L abor Statistics and 

published in the follow ing bulletins: BLS Bull. 1259, op. cit. ; Pension Plans

Under C ollective Bargaining: N orm al R etirem ent; E arly and D isability R etirem ent. 

F all 1959j BLS Bull. 1284 (1961); and a forthcom ing BLS bulletin., Pension Plans 

Under C ollective Bargaining: Benefits fo r S u rvivors, D ecem ber I960. Sum -

m aries of these bulletins have appeared in the Monthly Labor R eview . O ctober 

and N ovem ber I960; July and August 1959; and July 1962, resp ectively.

Although these studies w ere based on a selection of 300 plans, each c o v e r ­

ing at least 1,000 w ork ers, it is believed that the coverage adequately represents 

single em ployer plans (231 of the 300) under collectiv e bargaining, particu larly 

in term s of w orkers covered , for the type of com parison s m ade in this bulletin.

19

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The expectation that the w orker w ill receiv e socia l secu rity old-age 

benefits at age 65 is taken into account in both single and m ultiem ployer plans 

in setting the norm al retirem ent age and in the retirem ent incom e provided. Unlike many single em ployer pension plans that d irectly reduce benefits by all or 

part of a worker*s socia l security benefits, or use a m ore lib era l benefit form ula 

fo r earnings above than fo r those below the socia l secu rity taxable wage base 

(currently $4,800 a year), m ultiem ployer plans rarely take socia l secu rity ben efits so explicitly into account.

P articipation Requirem ents

F or a w orker to participate in or to be covered by the plan, m ost m u ltiem ployer pension plans sim ply required that he be on the p ayroll of a co n tributing em ployer in a unit covered by the collectiv e bargaining a g reem en t.13 F or 

exam ple, one plan stated:

. . . every em ployee who is included within a unit covered by

a collectiv e bargaining agreem ent (which requ ires contributions 

to this plan by the em ployer) between an em ployer and union 

which are or becom e parties hereto shall autom atically be a 

participant.

If the agreem ent provides for a union sh o p ,14 15 which is typical among 

m u ltiem ployer agreem ents outside right-to-w ork States, all participating em ployees 

would thus be union m em bers. Only a seventh of the plans, how ever, covering 

less than a tenth of the w ork ers, sp ecifica lly required union m em bership for 

participation. One plan, fo r exam ple, stated that "em ployee m eans any du espaying m em ber of the union. 1,15 The same plan appended the follow ing explanation 

which can be generally applied to all plans with such requirem ents:

So that no m isunderstanding m ay a rise with referen ce to the 

above definition of the term "em ployee" in relation to any p r o ­

visions of the Labor Management Relations A ct of 1947, as 

amended, it is a requirem ent under the term s of the collectiv e 

bargaining agreem ents between participating com panies and the 

union, and it is and always has been the p ra ctice of the union, 

that the union admit into its m em bership all em ployees of the 

participating com panies after their 30th day of em ploym ent, 

without any discrim ination w hatsoever, with the exception of 

those person s to whom reapplication for m em bership m ay be 

denied under said act. T h erefore, since there could not be any 

person against whom discrim ination could be e x ercised within 

the provision s of said act, the definition of em ployee as herein 

stated is considered to be the best term inology fo r the intent and 

purposes of coverage and adm inistration under this pension plan.

13 G enerally, the individual participating em ployer cannot voluntarily include 

additional em ployees (su p ervisors, cle rica l, etc. ) outside the bargaining unit. 

H ow ever, many plans do extend plan coverage to o ffice rs and em ployees of the 

participating loca l union(s).

14 See Union Security and Checkoff P rovision s in M ajor Union C ontracts, 

1958-59, BLS Bull. 1272 (I960). A union shop clause requ ires all em ployees 

in the bargaining unit, as a condition of em ploym ent, to be or becom e union 

m em bers within a specified tim e after hiring.

15 The absence of such clauses from m ost plans m ay stem from the p r o ­

hibition against discrim ination in the Labor M anagement R elations (T aft-H artley) 

A ct. The National Labor Relations Board has held in several cases involving 

illegal union secu rity arrangem ents that pension plan clauses restrictin g payment of benefits to union m em bers only w ere illegal.

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Age and se rv ice participation requirem ents often found in single em ­

p loy er plans, w ere included in only 19 plans, coverin g 66,000 w ork ers, m ainly 

in the m etalw orking and trade industries.

Workers *

Participation requirement Plans (thousands)

All p l a n s .............................. 736 3,229.8

No age or service requirements--------- 686 3,133.0

With requirements---------------------- 19 65.9

A g e ................................ if 52.8

Service---------------------------- 10 11.3

Age and se r v i c e-------------------- 5 1.7

Information not available-------------- 31 31.0

1 Worker coverage includes both active and retired workers in 1959.

NOTE: Because of rounding, sums of individual items may

not equal totals.

M inimum serv ice requirem ents ranged from 1 through 5 y ea rs, with 

1 year as the m ost com m on requirem ent (table 8). Age requirem ents ranged 

from 22 through 40 years.

N orm al R etirem ent P rov ision s

N orm al retirem ent p rov ision s, a feature of virtually all pension plans, 

specify the age at which a qualified w orker would n orm ally be expected to retire, 

the form ula to be used to com pute retirem ent incom e (or the amount if a uniform 

benefit is paid), and the conditions and duration of benefit payment. The norm al 

retirem ent age as stipulated in pension plans is not n e ce ssa rily the age of actual 

retirem ent; it is technically, the earliest age at which a w ork er, having otherw ise 

qualified fo r benefits, m ay retire of his own accord and receiv e im m ediately the 

full amount of benefits to which he is entitled. M ost plans a lso require the fu lfillment of a specified period of credited se rv ice with one or m ore of the em ployers 

participating in the plan, as in the follow ing clause:

An em ployee shall be eligible fo r a norm al pension if, at 

retirem ent

(a) he has attained age 65; and

(b) he has credit fo r 25 years or m ore of serv ice in the 

trade; and

(c) he has actually w orked in covered em ploym ent for at 

least four quarters . . .

N orm al R etirem ent .AgS, The norm al retirem ent age in all but 33 plans 

was 65, the youngest age at which full socia l secu rity old -age benefits are payable; 24 had ages below 65 and 9 above (table 9). Although only 20 plans p e r ­

m itted w orkers to retire on full benefits at age 60, they covered over 15 percent 

of the w ork ers; in this group w ere several large plans in the coal mining and 

m otor transportation industries. A ll but four plans with a norm al retirem ent 

age other than 65 w ere wholly self-in su red (table 10).

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B enefit F orm u las. The pension form ulas in m ultiem ployer plans do not 

exhibit the wide diversity found in single em ployer plans. M ost can be cla ssified 

into two basic types: (1) Flat or uniform benefits fo r all w ork ers who fu lfill sp e cified se rv ice requirem ents, or (2) benefits which varied by length of se rv ice alone. 

Form ulas in which benefits varied by both earnings and se rv ice , com m only found 

in single em ployer plans, w ere used by few m ultiem ployer plans. Exam ples of 

each of these types are:

U niform benefit fo r specified se rv ice —

. . . m em bers eligible under these rules for retirem en t benefits

shall receiv e the sum of $50 per month . . .

>J« $

Benefit proportion al to length of se rv ice—

. . . the monthly amount of . . . benefit shall be equal to 

$ 1 .0 5 a month for each com pleted year (fractional credit w ill 

be given for com pleted m onths) of future se rv ice .

* * *

Benefit based on earnings and se rv ice —

The amount of monthly pension fo r a covered em ployee eligible 

fo r retirem ent shall be an amount equal to four-tenths of 1 p e r ­

cent of average monthly earnings of such em ployee fo r each 

year of credited serv ice.

A fourth of the plans, with alm ost half of the w orkers under m ultiem ployer 

plans, stipulated flat or uniform benefit form ulas (table 11), as contrasted with a 

sm all fraction of negotiated single em ployer plans. Flat benefits fo r specified 

serv ice w ere found m ainly in the apparel, m ining, and water transportation industrie s. The vast m ajority of plans w ere self-in su red (table 12).

F orm ulas in which benefits varied by length of se rv ice alone w ere found 

in over 60 percen t of the plans, with 40 percen t of the w ork ers, as com pared with 

about a third of single em ployer plans. This type of form u la was m ost com m on 

in the food, printing, m etalw orking, construction, trade, m otor transportation, 

and serv ice industries. T h ree-fou rth s of the insured plans and th ree-fifth s of

the self-in su red plans had this type of form ula.

Only six m ultiem ployer plans had a form ula in which a com bination of 

earnings and serv ice was used to determ ine benefits, by far the m ost com m on 

form ula in single em ployer plans.

In 24 plans, benefits w ere expressed as a percentage of the em ployer 

contributions m ade for each w orker— a form ula rarely used in single em ployer 

plans. These plans w ere significant (for wide coverage of w ork ers) in the m otor 

transportation industry. In 13 of these plans, contributions w ere on a tim e 

w orked basis, hence benefits w ere in directly related to se rv ice . Two plans based 

contributions on individual earnings, thus benefits w ere in directly related to both 

earnings and serv ice . The basis of contributions and the underlying basis of 

benefits in the rem aining plans w ere not available. Since contributions are often 

clo se ly related to hours worked, benefits under all 24 plans are m ore apt to be 

affected by short breaks in se rv ice than are benefits under form ulas directly r e ­

lated to se rv ice , which usually credit serv ice annually or quarterly.

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Tw enty-three plans, found m ainly in the construction industry, did not 

contain a sp ecific benefit form u la in the pension plan docum ent. Benefits w ere 

usually determ ined by the amount accum ulated in a w ork er1 s individual account 

at the tim e of retirem ent. One of these plans, fo r exam ple, read:

T rustees shall pay such benefits as the amount credited to each 

individual em ployee*s account w ill purchase fo r such em ployee 

at the tim e of retirem ent.

M ost o f these plans, as shown later (page 26), paid only lum p-sum cash benefits. Since contribution rates w ere based on tim e w orked, benefits w ere 

gen erally proportionate to se rv ice . Usually these plans w ere self-in su red .

Although m ost m u ltiem ployer benefit form ulas w ere readily classifiable 

into the m a jor types d iscu ssed above, unusual benefit o r coverage problem s 

created a need fo r significant variations. F or exam ple, five plans negotiated 

by the T eam sters, each with a norm al retirem ent age of 60, had a bu ilt-in partial 

socia l secu rity adjustm ent. To even out total retirem ent incom e over the entire 

retirem ent p eriod , these plans provided fo r the paym ent o f higher benefits in the 

fir s t 60 months of retirem ent, than subsequently. Under one plan, fo r exam ple, 

a w orker retiring at age 60 re ce iv e s $65 a month m ore between ages 60 and 

65 than after age 65, when he presum ably would be receivin g full socia l secu rity 

benefits. W hile these form ulas w ere apparently designed to encourage retirem ent 

b efore socia l secu rity benefits are payable, they do not penalize those retiring 

after age 60 by lim iting the ages at which the higher benefits m ay be receiv ed . 

The follow ing clause is typical of these plans:

. . . The retirem ent benefit . . . shall con sist of a retirem ent 

incom e payable fo r the rem aining life of the pensioner in the 

amount of:

(a) F or an em ployee fo r whom the last em ployer to make co n ­

tributions to the trust fund has contributed under a c o llective bargaining agreem ent providing fo r contributions at 

the rate of $2 per week—

1. $90 payable monthly fo r a period not to exceed 60 months 

during the lifetim e of the pen sion er; and

2. $22.50 payable m onthly thereafter for as long as the 

pensioner shall survive.

(b) F or an em ployee fo r whom the last em ployer to m ake co n ­

tributions to the trust fund has contributed under a c o lle c ­

tive bargaining agreem ent providing fo r contributions at the 

rate of $3 p er week fo r 2 years and $4 p er week thereafter—

1. $135 payable m onthly fo r a p eriod not to exceed 

60 months during the lifetim e of the pensioner; and

2. $70 payable monthly thereafter fo r as long as the 

pensioner shall survive.

The benefit form ula reproduced above is also an illustration of form ulas 

basing benefits on contribution rates. This proced u re allow s m ore flexibility in 

lo ca l and individual em ployer negotiation, although the w ork ers and em ployers both 

receiv e the advantages of a pooled pension arrangem ent. Although only 13 plans 

included in this study allow ed a ch oice, within p re scrib e d lim its, of rates and 

benefits, this approach m ay spread as unions seek a w ider geographic or industrial scope in pension planning.

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Some uniform benefit plans took occupational earnings differen ces into 

account, as in the follow ing illustration:

. . . The retirem ent fund shall pay to such m em ber, until

the tim e of his or her death, the monthly paym ents set forth 

below : . . .

(a) The sum of $50 m onthly to m em bers who at the tim e of 

their retirem ent are op erators, cutters, or block ers . . .

(b) The sum of $40 m onthly to m em bers who at the tim e of 

their retirem ent are seasonal straw op era tors, trim m ers, 

slick e rs, or shipping clerk s.

One plan had a c o st-o f-liv in g adjustment in its benefit form ula.

P ast S ervice Benefit F orm u las. M ultiem ployer plans usually credited 

past se rv ice (i. e . , em ploym ent rendered p rio r to the effective date of the plan 

or p rio r to an in crea se in plan benefits) at the sam e level as future se rv ice 

(i. e . , subsequent em ploym ent). In contrast, negotiated single em ployer plans, 

except fo r those with a flat benefit fo r specified se rv ice , usually provide le sse r 

credits fo r past serv ice than fo r future serv ice y e a r s . 16

S ocial Security Integration. Only one m ulti em ployer plan d irectly in ­

tegrated plan benefits with socia l secu rity benefits, as contrasted with about 1 out 

of 4 negotiated single em ployer plans.

M inim um B enefit. Few m ultiem ployer pension plans had provision s e s ­

tablishing a m inim um benefit amount although they are frequently found in single 

em ployer plans. Rather, a m inim um benefit was usually established by the 

m inim um requirem ents for receivin g any benefit. W here a flat benefit was p r o ­

vided, fo r exam ple, the benefit itself was both a m inim um and a m axim um . 

W here benefits varied by se rv ice (the m ost prevalent approach in m ultiem ployer 

plans), the m inim um benefit was the product of the m inim um years of serv ice 

required to qualify for benefits and the benefit payable fo r each year of serv ice. 

Som e plans, how ever, had sp ecific m inim um benefits of a tem porary nature for 

w ork ers who could not m eet the m inim um serv ice requirem ents because they 

w ere too near the norm al retirem ent age when the plan began.

F orm of P aym ents. V irtually all pension plans p rom ise that the pension 

w ill continue for the w orker*s lifetim e. Som e plans, in addition, guarantee paym ents for a stated period o f tim e to the pensioner*s ben eficiary should the pensioner die during this guarantee period. Many of the 34 contributory plans 

guarantee to return as benefits at least the amount of m oney contributed by the 

w orker, usually with interest. These com m on form s of pension p rom ises are 

illustrated by the follow ing clau ses:

L ifetim e (straigh t-life) only—

The m onthly amount of retirem ent benefit . . . shall be payable in m onthly installm ents com m encing on his retirem ent date 

and term inating with the m onthly paym ent coinciding with or 

next preceding the date of his death.

Guarantee period (payment certain)—

If a pensioner shall die within the 36-m onth period beginning with 

the effective date of his pension, then the benefit to which

16 See BLS Bull. 1307, op. cit.

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he was entitled shall becom e payable to the surviving w ife. If the 

surviving wife should die b efore the rem ainder o f the 36-m onth 

period, or if there is no surviving w ife at the tim e of the death 

of the pensioner, benefits for the rem ainder of the 36-m onth 

period shall becom e payable and divided equally among the su rviving dependent child or dependent children at the tim e of death 

of the pensioner or the surviving wife as the case may be. Benefits payable under this provision shall cease on the death of the 

surviving wife and of the last surviving dependent child or at the 

end of the 3 6- month period, w hichever shall first o ccu r.

Guaranteed return of em ployee contribution with interest (m odified cash refund) 17 —

Upon death of a pensioner, any ex cess of the amount of his con ­

tributions with interest at the tim e o f retirem en t over the sum 

of pension paym ents received shall be paid to his designated 

ben eficiary . . .

P ension paym ents stop upon the death of the pensioner (payment fo r life, 

only) in 80 percen t of the m ultiem ployer plans coverin g alm ost 90 percen t of the 

w orkers (table 13). E leven percen t (82) of the plans, with 9 percen t of the w ork ­

e rs, m ainly in the food and construction industries, p rom ised that if the w orker 

died before receivin g a guaranteed num ber of pension paym ents, the rem aining 

paym ents would be continued tp his beneficiary,* usually his widow. Such gu arantees w ere included in a sm aller proportion of insured than of the self-in su red 

plans (table 14). Although the length of the guarantee ranged from 1 to 15 y ea rs, 

it was rarely less than 3 y ea rs, and usually ran fo r either 3 (35 plans) or 5 years 

(30 plans).

Guarantee period

Workers**’

Plans, (thpugapqg.)

All plans with payment-certain

guarantees ----------------

12 months -------------------

24 months -------------------

30 months -------------------

36 months -------------------

40 months -------------------

4-8 months-------------------

60 months -------------------

120 months ------------------

180 months ------------------

Other -----------------------

82 284.4

1 1.4

3 1.1

1 40.0

35 184.3

1 (2 )

1 1.0

30 45.8

7 7.1

. 1 .6

t> p 3.0

Worker coverage includes both active and retired workers in 1959.

2 Fewer than 50 workers.

* Guarantee period varies by years of service.

NOTE; Because of rounding, stuns of individual items may

not equal totals.

17 The word "m odified" is used here to distinguish this type of guarantee 

from one guaranteeing the return of the em p loy er's contributions as w ell as the 

em ployee's contributions.

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Fourteen of the 30 join tly financed plans p rom ised a m odified cash r e ­

fund, i. e. , to make a sufficient num ber of paym ents to the w orker and, after his 

death, to return to his ben eficiary at least his contributions, with o r, in som e 

plans, without interest. Two plans provided that if total paym ents w ere less than 

the cost of the benefit at retirem ent the balance would be paid to a ben eficiary 

(i. e. , a full cash refund).

Six plans provided a ch oice of benefits in such a way that it was not 

p ossib le to determ ine which was the ba sic paym ent m ethod (i. e . , the benefit that 

would be paid if the w orker failed to m ake a ch oice). F or exam ple, one plan 

stated that:

The participant (i. e. , retiree) . . . m ay e x e rcise , with the 

approval of the tru stees, one of the options h ereinafter set 

forth . . . (a) the trustees can purchase for the participant a 

paidup annuity contract in such form . . . as the participant 

m ay request, or (b) the trustees m ay pay him a fixed sum of 

m oney per month as long as he shall live, and paym ent of such 

monthly amounts shall cease upon the exhaustion of such p a r tic ip a n ts account, o r (c) the trustees m ay, on their own m otion, or 

at the request of the participant involved . . . provide fo r a 

lum p-sum payment.

Seventeen plans, m ost of which did not have a sp ecific benefit form ula, 

indicated that paym ent would be m ade in a lump sum (5 plans), or in in stallm ents of either a specified amount or duration, or both (12 plans), to w orkers 

retiring at norm al retirem ent age. These plans w ere usually sm all self-in su red 

plans in the apparel and construction industries. This cash benefit was usually 

lim ited to the amount of contributions in the individual w ork er1 s account, as illu s ­

trated by the follow ing clause:

In the event participants retire from the industry, the fund 

shall pay to such participant the sum of $50 per month until 

the m oneys of such individual account have been exhausted.

Optional F orm s of Benefit P aym ent. R etirem ent benefit paym ents 

norm ally cease upon the death of the pen sion er, unless, as previou sly discu ssed, 

a m inim um num ber of paym ents or amount is guaranteed (in som e way) or if 

there is a death benefit provision . (See page 39.) H ow ever, about 1 out of 

7 m ulti em ployer plans, like many single em ployer plans, also provide one or 

m ore optional form s of benefit paym ents under which benefits m ay be paid to a 

ben eficiary after the p e n s io n e rs death (table 15). W orkers electing an option 

through which benefits are continued to their b en eficiaries m ust accept a reduced 

pension during their lifetim e. These options, like m ost early retirem ent p r o ­

visions and so cia l secu rity adjustm ent options, are usually of the sam e actuarial 

value as the norm al pensions they replace, so as not to in crea se the cost of the 

plan; i. e. , the w orker bears the entire cost of the option. To m inim ize adverse 

selection against the plan by w orkers in poor health at retirem ent, the optional 

form m ust usually be elected w ell b efore retirem ent— m ost often 5 years in 

advance— unless the w orker can show evidence of good health at retirem en t. 18

The m ost com m on type of option was the joint and su rvivor option, under 

which the w orker elects to receiv e a reduced benefit fo r life with a guarantee 

that, if he dies while his ben eficiary is living, paym ents at a predeterm ined ratio 

w ill continue to his ben eficiary fo r life. This is illustrated by the follow ing clause:

18 A m ore detailed analysis of optional benefits w ill be presented in a 

forthcom ing BLS bulletin, op. cit.

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. . . Instead o f receivin g the norm al retirem en t benefit, the

em ployee m ay elect a reduced retirem ent annuity to be paid as 

long as he liv e s, with the future p rovision that all or part of 

this reduced retirem ent annuity w ill be continued after his death 

during the rem aining lifetim e of a b en eficiary (known as the 

joint annuitant) named by him • . .

This option was available in 101 plans, covering about 7 percen t o f the w ork ers.

The p eriod -certa in option, available in 26 plans, usually in com bination 

with a join t and su rvivor option, allow s the pensioner to elect to receiv e a reduced 

benefit for life on the condition that, if he dies b efore receivin g a sp ecified numb er of paym ents, the balance w ill be continued to his ben eficiary. F or example':

A participant m ay, in lieu of all paym ents otherw ise payable 

to him on and after his retirem ent annuity date, elect the life 

annuity-certain option providing paym ents as follow s:

(a) To the participant: A reduced retirem ent annuity, the first 

m onthly paym ent th ereof being payable on the participan t* 1 s 

retirem ent annuity date, if he is then living, subsequent 

m onthly paym ents being payable on each due date thereafter 

throughout his rem aining lifetim e, term inating with the last 

m onthly paym ent p rio r to his death.

(b) To the p a rticip a n ts b en eficiary: The continuation of such

reduced retirem ent annuity paym ents, if the participant dies 

b efore receivin g a total of 120 m onthly paym ents of such 

reduced retirem ent annuity, until a total of 120 m onthly 

retirem ent annuity paym ents in all has been m ade to the 

participant and to his ben eficiary . . .

The cash -refu n d option offered by four plans provides that if total ben efits receiv ed by the pensioner are less than the cost of purchasing the benefit 

at retirem ent, the balance w ill be paid to his ben eficiary. The m odified cash - 

refund option, on the other hand, provides that if total benefits received by the 

pensioner are le ss than the w o r k e r s contribution (with or without in terest), the 

balance w ill be paid to a designated ben eficiary. Only 1 plan offered this option 

because all but 16 of the 34 contributory plans provided a m odified cash refund 

as the standard or norm al form of annuity. In addition, four other plans, norm ally 

providing som e type of guarantee, allow ed the w ork er to elect a straight life 

annuity paying a la rger monthly benefit of equal actuarial value.

P rov ision fo r optional form s was m ost com m on among plans in food 

m anufacturing, construction, and trade. P ossib ly a reflection of the greater experien ce of insurance com panies in adm inistering options, 35 percen t of the 

insured plans as com pared with only slightly m ore than 10 percen t of self-in su red 

plans offered optional form s o f paym ent (table 1 6 ).

Amount of N orm al R etirem ent B enefit. In ord er to evaluate m ultiem ployer plans in term s of the amount of retirem ent benefit provided, the m onthly 

amount of norm al pension benefits was com puted for each plan, w here p ossib le, 

under the follow ing assum ed conditions:

1. The w orker w ill retire at age 65 (except fo r nine plans w here a 

higher m inim um age was sp ecified).

2. Annual earnings of $ 4 ,8 0 0 . This earnings level was assum ed to 

be constant throughout the w o rk e r's ca re e r, although som e plans would pay 

the sam e benefit if his average earnings fo r certain years (e .g ., the 10 im ­

m ediately b efore retirem ent) or if his ca re e r average earnings w ere $4,800 .

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3 . Future se rv ice credits of 30 y ea rs. Since few of these plans have 

distinctly different past and future se rv ice ben efits, the amounts com puted, 

in general, also apply to w ork ers retiring at the presen t tim e.

No benefit amount could be com puted for 69 plans coverin g 89,500 w ork ­

ers either because they had no benefit form ula or sufficient inform ation was 

not available.

Monthly benefit amounts thus com puted ranged from $10 to $230. A 

fourth of the plans covering about the sam e proportion of w ork ers provided b e ­

tween $50 and $60 a month as shown in chart 2. The average benefit paid by 

these plans amounted to $ 6 8. 34 influenced by a substantial num ber of w ork ers 

in plans paying $100 or m ore.

Plans Workers1

Monthly benefit excluding Number

social security Number Percent (thousands) Percent

All plans for which benefits

were computed d ------------------ 667 100.0 3,140.3 100.0

Under $30 ------------------------ 40 6.0 208.0 6.6

$30 and under $4-0----------------- 84 12.6 137.3 4.4

$4-0 and under $ 5 0 ----------------- 87 13.0 347.8 11.1

$50 and \inder $ 6 0 ----------------- 169 25.3 824.9 26.3

$60 and under $70 ----------------- 96 14.4 324.1 10.3

$70 and under $80 ----------------- 67 10.0 382.6 12.2

$80 and under $90 ----------------- 8 1.2 31.7 1.0

$90 and under $100 ---------------- 28 4.2 79.9 2.5

$100 and under $110 --------------- 50 7.5 535.0 17.0

$110 and under $120 --------------- 11 1.6 20.4 .6

$120 and under $130 --------------- 14 2.1 39.2 1.2

$130 and o v e r--------- ----------- 13 1.9 209.5 6.7

Average monthly benefit * --------- $68.34

1 Worker coverage includes both active and retired workers in 1959-

2 In 69 plans, covering 89,500 workers, benefit amounts could not be computed. (See explanation in text.)

5 Arithmetic mean, weighted by workers covered.

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

If the m axim um prim ary so cia l security benefit of $12719 is added to 

plan ben efits, total monthly retirem ent incom e ranges from $137 to $357. The 

average for all w ork ers in crea ses to $195.34 ($ 6 8 .3 4 plus $127), representing 

alm ost half (48.8 percen t) of the assum ed preretirem en t earnings level of $4,800 . 

Plans providing m onthly benefit amounts which, when added to m axim um prim ary 

socia l secu rity ben efits, would equal $ 200, or at least half of the worker* s p r e ­

retirem ent in com e, w ere m ost com m on in food, m etalw orking, construction, 

m otor transportation, trade, and m otion pictures and recreation (table 17).

On the average, self-in su red plans provided slightly higher m onthly 

benefits than insured plans— $71.43 and $ 6 7 .0 2 , resp ectively (table 18). M ore 

than 1 out of 4 se lf-in su red plans (covering 4 out of 10 w ork ers under such plans), 

as com pared with slightly less than 1 out of 4 insured plans (with m ore than 7 out 

of 10 w ork ers), provided benefits which, when supplem ented by m axim um prim ary 

socia l secu rity ben efits, amounted to at least half of preretirem en t earnings.

19 Under socia l secu rity provision s in effect in 1961, the m axim um benefit 

of $127 fo r w ork ers at the assum ed earnings level of $ 4,800 per year w ill not 

be payable, with a few exceptions, until after 35 y ea rs, although w ork ers m ay 

becom e eligible fo r slightly less than the m axim um much soon er.

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Chart 2 . Monthly Normal Retirement Benefits

(Excluding Social Security) for a Worker Earning

$4,800 a Year With 30 Years of Future Service

In Multiemployer Pension Plans Under Collective Bargaining, Spring I960 1

Percent Percent

Under $30 $40 $50 $60 $70 $80 $90 $100 $110

and under and

$30 $40 $50 $60 $70 $80 $90 $100 $110 Over

Normal Monthly Benefit

. 1 Based on a study of 736 multiemployer pension plans under collective bargaining covering 3,229,800' workers/ 

active and retired, in 19591. In 69 plans covering 89,500 workers,| benefit amounts could not be computed 

and have|been excluded from the chart.

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Benefits averaged a little higher in flat benefit form u las than those in 

which the benefit form ulas varied by se rv ice — $68.91 and $ 6 6 .9 7 , resp ectively 

(table 19). In part, this differen ce is attributable to (1) paym ent of m axim um 

benefits under the se rv ice plans after 20 and 25 years o f s e rv ice , and (2) inclusion of sev era l large Team sters* plans providing a flat benefit of $13520 a 

month fo r only the first 5 years of retirem en t, but a substantially reduced ben efit thereafter. (See page 23. )

E arly and D isability R etirem ent, and Vesting

Multi em ployer pension plans, as a group, provide all o f the subsidiary 

benefits found in single em ployer plans, but with a differen t em phasis reflecting 

differen ces in the nature of the bargaining relationship and the labor m arket. 

Slightly m ore than a fourth of m ultiem ployer plans, coverin g tw o-fifths of the 

w ork ers, provided a norm al retirem ent benefit only (table 20). Another fourth 

of the plans added a disability retirem en t provision . The rem aining half of all 

m ulti em ployer plans had different com binations of early and disability r e tire ­

m ent and vesting. The prevalen ce of these provision s among the 736 m ultiem ployer plans studied is shown below :

~— Flans— — .....MonteEs.

Number

Provision Number Percent (thousands) Percent

All plans --------------------------- 73 6 100.0 3,229.8 100.0

Early retirement 2 --------------- --- 262 35.6 754.2 23.4

Disability retirement 5 -----------

Vesting ^ ------------------------

--- 386

--- 168

52.4

22.8

1,474.5

595.0

45.7

18.4

Information not available -------- --- 31 4.2 31.0 1.0

* Worker coverage includes both active and retired workers in 1959*

2 Excluded are plans which provided early retirement for women only.

Excluded are plans which provided lump sum disability benefits only.

^ Excluded are plans which provided lump sum termination benefits only.

As shown below , only 70 plans coverin g 195,000 w ork ers provided, in 

addition to norm al retirem ent, all three m a jor benefits— early retirem en t, d isability retirem en t, and vesting. The construction industry accounted fo r 31 of 

these plans (table 2 1 ) and 52 w ere in se lf-in su red plans (table 22).

--- Elans — --- MQgker&;f>..-— 

Major benefits provided in addition Number

to normal retirement Number Percent (thousands) Percent

All plans ------------------------------ 736 100.0 3 ,229.8 100.0

No additional benefits ------------------ 202 27.4 1 ,285.8 39.8

Disability retirement only -------------- 183 24.9 883.2 27.3

Disability retirement ------------------- 203 27.6 591.3 18.3

And early retirement and vesting ---- 70 9.5 194.7 6.0

And early retirement ---------------- 100 13.6 332.5 10.3

And vesting ------------------------- 33 4.5 64.1 2 .0

Without disability retirement ----------- 117 15.9 438.6 13.6

With early retirement and vesting --- 40 5.4 124.7 3.9

With early retirement only ---------- 52 7.1 102.3 3.2

With vesting only ------------------ 25 3.4 211.6 6.6

Information not available --------------- 31 4.2 31.0 1.0

1 Worker coverage includes both active and retired workers in 1959*

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

20 This amount was used in the distributions and in the com putation of the 

foregoing averages.

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E arly R etirem ent P ro v is io n s. E arly retirem en t, as the term is used 

in pension plans, m eans retirem ent b efore the norm al retirem en t age sp ecified 

by the plan. Usually the benefit is reduced below the accru ed norm al benefit 

to com pensate for the longer p eriod over which benefits are expected to be paid. 

Although early retirem ent benefits are always payable im m ediately on re tire ­

m ent, under som e plans the fully qualified w orker m ay ch oose to defer receivin g 

a benefit until he attains the n orm al retirem en t age in the plan when the full, 

o r reduced benefit is payable. E arly retirem ent is alm ost always at the option 

of the w ork er under m ultiem ployer plans.

Age and se rv ice requirem ents are typically stipulated in early r e tire ­

m ent p rov ision s, as in the follow ing exam ple:

. . . Any em ployee m ay retire early on a reduced lifetim e 

pension provided he has:

(i) Attained his 55th birthday;

(ii) Com pleted 15 or m ore years o f se rv ice .

Its amount is calculated as follow s:

(i) The em p loy ee^ norm al pension based upon his com pleted 

se rv ice is determ ined; and

(ii) His early pension is then obtained by reducing the amount 

in (i) by Vio percen t for each full month which rem ains from 

the date of early retirem en t until his 65th birthday . . .

Slightly m ore than a third of the m ulti em ployer plans, covering alm ost 

a fourth of the w ork ers, had an early retirem en t p rov ision applicable to all 

cov ered w ork ers, regardless of sex, as contrasted with 90 percen t of the single 

em ployer plans covering 95 percen t of the w ork ers. These provision s w ere m ost 

prevalent in food, printing, m etalw orking, construction, m otor transportation, 

trade, and se rv ice industries (table 23).

An additional 38 plans, covering 677, 000 w ork ers, perm itted early r e ­

tirem ent for w om en only, usually at age 62. One of the plans stated, fo r exam ple, that:

If you are a fem ale, you m ay . . . request to retire and r e ­

ceive a reduced pension b e fo re your 65th birthday. If your 

request is approved, your pension w ill begin when you retire 

the 1 st day of any month on or after you attain age 6 2 .

Seventeen of these plans, accounting fo r 614,000 w ork ers, w ere in the apparel 

in du stries, w here a large m ajority of em ployees are wom en.

Industry group

All plans with early retirement for

women only ---------------------

Pood and kindred products --------

Apparel and other finished textile

products -----------------------

Wholesale and retail trade -------

Services -------------------------

Other ----------------------------

Plans

- 38

Workers-

(thousands)

676.9

5 10.7

17 613.6

9 36.8

5 .0

- 25 10.8

^ Worker coverage includes both active and retired workers in 1959*

2 Includes 1 plan with 1,400 workers in printing, 1 plan

with 1,900 workers in metalworking, 1 plan with 2,300 workers in

miscellaneous manufacturing, 1 plan with 1,600 workers in construction, and 1 plan with 3,600 workers in motion pictures and

recreation.

NOTE: Because of rounding, sums of individual items may

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The m edium of funding (insured or self-in su red ) appears to have little or 

no effect on whether early retirem ent was provided, perhaps becau se its inclusion 

is virtually costless to the plan if the benefit reduction is based on actuarial 

fa cto rs. Although over a third of both self-in su red and insured plans provided 

for early retirem ent, on ly. 10 percen t of the w ork ers cov ered by insured plans 

w ere included as com pared with nearly 30 percen t of those cov ered by se lfinsured plans.

T o t a l __ Early retirement

Medium of funding Plans

Workers^

(thousands) Plans

Workers 1

(thousands)

All plans ------------------------- 736 3,229.8 262 754.3

Insured --------------------------- --- 116 329.6 33.9

Self-insured ---------------------- 590 2,539.6 211 713.1

Other ----------------------------- 30 360,7 7 7.3

^ Worker coverage includes both active and retired workers in 1959*

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

The early retirem ent provision s of 39 plans with about 135, 000 w ork ers 

contained a level retirem ent, o f a socia l secu rity, adjustm ent option which p r o ­

vides a level incom e (including both private and prim ary socia l secu rity benefits) 

throughout the entire retirem ent period, even though full so cia l secu rity benefits 

do not com m ence until age 65 (table 24). 21 P en sion ers selecting this option r e ­

ceive a monthly benefit larger than the regular early retirem ent benefit until 

full p rim ary socia l secu rity benefits are payable at age 65. A fterw ards they 

get a sm aller plan benefit than norm ally paid. F or exam ple, one plan stated:

An em ployee entitled to a pension after age 55 and before age 65 

m ay elect a socia l secu rity level incom e option in lieu of the 

pension otherw ise payable to him . If he elects this option he 

w ill receiv e a higher m onthly amount from the fund for each 

month b efore the month in which he attains age 65 and a low er 

monthly amount from the fund for life thereafter. The general 

purpose of this option is to provide an early retirem ent pensioner 

with a m ore or less level incom e for life, taking account of 

his likely receip t of the prim ary socia l secu rity benefit after he 

attains age 65. The higher amount payable b e fo re attainment of 

age 65 and the low er amount payable on and after attainment of 

age 65 shall be determ ined on the basis of actuarial equivalence.

A fourth of the insured plans with early retirem en t provided this option 

as against 1 out of 8 self-in su red plans with early retirem en t (table 25). Such 

provision s w ere m ost com m on in food, construction, trade, and se rv ice industries. 

As discu ssed previou sly, five self-in su red plans in the trucking industry with a 

norm al retirem ent age at 60 have a social secu rity adjustm ent built into the benefit 

form ula (page 23).

21 Under current provision s of the Social Security A ct, full prim ary in su rance benefits are payable to qualified w ork ers retiring at age 65 or over. Since 

August 1, 1961, m en, and since 1956, wom en m ay elect to re ce iv e a perm anently 

reduced benefit to begin between ages 62 and 65.

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Considering plans with low norm al retirem ent ages or an early r e tire ­

m ent p rovision , m ore than 40 percen t of the m ultiem ployer plans, with 60 p e r ­

cent of the w ork ers, perm itted retirem ent b efore age 65 (e. g. , at age 62— the 

early retirem ent age under socia l secu rity), as shown below :

___Plans ___ Workers 1

Provision Number Percent

Number

(thousands) Percent

All plans --------------------------- 736 100.0 3 ,229.8 100.0

No provision for retirement before

age 65 ---------------------------- 412 56.0 1,264.6 39.2

With provision for retirement before

age 65 ---------------------------- 324 44.0 1,965.2 60.8

Low normal retirement age

(full benefit) ----------------- 24 3.3 534.0 16.5

Early retirement provision for

all workers (reduced benefit) -- 262 35.6 75*K3 23.4

Early retirement provision for

women only (reduced benefit) --- 38 5.2 676.9 21.0

^ Worker coverage includes both active and retired workers in 1959*

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

D isability R etirem ent P ro v isio n s. D isability retirem ent benefits, when 

provided, are p a y a b le 22 to totally and perm anently disabled w ork ers, provided 

they m eet certain age a n d /or se rv ice requirem ents. In contrast to early re tire ­

ment, benefits are often the sam e as or higher than norm al retirem ent benefits. 

An illustrative p rovision follow s:

An em ployee shall be entitled to retire on a disability pension if

he m eets the follow ing two requirem ents:

(a) He becom es totally and perm anently disabled after he has 

attained age 55 but b efore he has attained the age of 

65 years.

(b) He has pension credits for at least 15 years . . . There

w ill be determ ined the amount of early retirem ent pension to which the applicant would be entitled based on the 

years of pension credit which the em ployee has earned up 

to the tim e of his disability. The disability pension shall 

be $ 10 greater than the said early retirem ent benefits ex ­

cept that in no event shall the disability pension exceed the 

amount that would be payable if the em ployee had attained 

age 65 at the date he becam e disabled.

D isability benefits w ere provided by m ore than half of the m ultiem ployer 

plans with over 45 percent of the w ork ers, as com pared with alm ost 80 percen t of 

the single em ployer plans with alm ost 90 percen t of the w ork ers. 23 The p r o ­

vision s w ere m ost com m on in food, apparel, printing, m etalw orking among the

22 Frequently a 6 -m onth waiting period, during which the severity of the 

disability m ay be determ ined, m ust elapse b efore benefits are payable.

23 Plans which paid disability benefits only at age 65 w ere not counted as 

providing disability benefits in both studies. In these plans, se rv ice was credited 

or frozen after total and perm anent disability until age 65, and then the norm al 

benefit was payable. They w ere found in 17 m ultiem ployer pension plans c o v ­

ering 41,800 w ork ers, prim a rily in the apparel and serv ice industries.

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m anufacturing industries, and in construction, m otor and w ater transportation, 

and trade among the nonmanufacturing industries. (See table 23. ) Disabilitypensions w ere provided by 55 percen t of the se lf-in su red plans covering alm ost 

half of the w ork ers under self-in su red plans, as against 42 percen t of the insured plans with about a sixth of the coverage of such plans. 4

Total Disability retirement

Medium of funding Plans

Workers 1

(thousands) Plans

Workersl

(thousands)

All plans --------------------- ....... 736 3,229.8 386 i , m . 5

Insured ----------------------- 329.6 49 55.2

Self-insured ------------------ ....... 590 2,539.6 327 1.232.1*

Other ------------------------- ....... 30 360.7 10 186.9

^ Worker coverage includes both active and retired workers in 1959.

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

T w enty-seven plans covering 215, 300 w ork ers provided only fo r a cash 

paym ent to w ork ers fo rce d to retire because of total and perm anent disability, 

as in the follow ing exam ple:

. . . The amount of the disability benefit shall be an amount

determ ined by m ultiplying $ 2 by the num ber of weeks during 

which em ployer contributions have been m ade to the trust fund 

on behalf of the em ployee . . . but in no case shall the amount 

o f the disability benefit exceed $2, 000. The disability benefit 

shall be payable 6 months after com m encem ent of total and p e r ­

m anent disability, or 3 months after receip t of the due p ro o f of 

such disability by the tru stees, w hichever is later. Upon paym ent of the disability benefit such em ployee shall be deem ed 

to have term inated his m em bership in the plan and shall not 

be entitled to participate hereunder to any extent or for any 

other benefit.

These 27 plans w ere not con sidered as containing a regular disability provision . 

Such provision s w ere m ost com m on in self-in su red plans in construction and 

m otor transportation (including the large Central States Team sters* plan). 24 5

24 The developm ent of the deposit adm inistration group annuity plan has enabled plan trustees to include disability benefits in the la rger insured plans, since 

p ossib le adverse experien ce is tran sferred from the in su rer to the fund. Under 

a deposit adm inistration plan, the insurer* s obligations and guarantees are lim ited 

to the benefits already purchased. To provide disability benefits under such a 

plan, the fund m ay purchase tem porary annuities until the disabled w orker reaches 

65 or is no longer disabled. At 65, the fund purchases the regular annuity from 

the in su rer.

25 Six plans covering 4, 200 w orkers with regular disability retirem ent ben efits also gave the w orker the option to receiv e such benefit in a lump sum.

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Industry group

Workers 1

Plans,, .(thousands)

All plans with cash disability

benefits ----------------------

Pood and kindred products -------

Apparel and other finished textile

products ----------------------

Leather and leather products ----

Metalworking --------------------

Miscellaneous manufacturing -----

Contract construction -----------

Motor transportation ------------

Wholesale and retail trade ------

Services ------------------------

27 215.3

1 .7

u- 1.1

1 .7

1 3.0

1 A

10 16.9

5 190.9

3 1.3

1 .3

* Worker coverage includes both active and retired workers in 1959.

NOTE: Because of rounding, sums of individual items may

not equal totals,

Vesting P ro v isio n s. Vesting is a guarantee to the w ork er of a right or 

equity in a pension plan, based on all o r part of the e m p lo y e e s contributions 

m ade in his behalf (in term s of accru ed pension ben efits) should his em ploym ent 

or covera ge by the plan be term inated b e fo re he attains eligibility fo r regular 

(norm al o r early) retirem ent benefits. This right is usually payable in the form 

o f a retirem en t benefit at the norm al retirem en t age designated in the plan, 

w h erever the w ork er is then em ployed, as in the follow ing exam ple:

. . • an em ployee who has accru ed 10 years of credited se rv ice 

or m ore at the tim e he cea ses to be em ployed by an em ployer 

shall be entitled to re ce iv e , at age 65, a m onthly benefit equal 

to a norm al retirem en t benefit com puted on the basis o f his 

credited se rv ice at the tim e of cessation of em ploym ent.

F ew er than 1 out of 4 m ulti em ployer plans, covering nearly 1 out of 

5 w ork ers, had a vesting prov ision , as contrasted with 7 out of 10 single em ­

p loyer plans coverin g 5 out of 6 w ork ers. Although not a com plete substitute 

for vesting, the portability of pension credits inherent in m ultiem ployer plans, 

as previou sly explained, provides the sam e sort of protection as a vesting p r o ­

vision in a single em ployer plan.

Vesting provision s w ere m ost com m on in food, printing, m etalw orking, 

construction, m otor transportation, and trade industries. (See table 23. )

Slightly m ore than half of the insured plans with alm ost 3 out of 4 co v ­

ered w ork ers, as com pared with only 1 out of 6 self-in su red plans with 1 out of 

7 w ork ers, had vesting. The custom of including the vesting of the w o rk e r's 

pension rights in insured plans accounts fo r this differen ce, both in m u ltiem ployer 

and single em ployer plans.

JE&fcal

Medium of funding Plans

Workers1

(thousands) Plans

Workers1

(thousands)

All plans --------------------- ...... 736 3,229.8 168 595.0

Insured ----------------------- 329.6 60 2^0.4

Self-insured ------------------ ...... 590 2,539.6 97 337.9

Other ------------------------- 360.7 11 16.8

* Worker coverage includes both active and retired workers in 1959.

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

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T h ree-fou rth s of the 168 plans with vesting p rovision s provided d eferred 

full vesting under which the w ork er retains a right to all accru ed benefits if his 

se rv ice term inates after he attains a sp ecified age, or com pletes a designated 

p eriod of se rv ice , or both. O ne-fifth of the plans had d eferred graded vesting, 

under which the w orker acqu ires a right to a certain percentage of accru ed ben efits when he m eets sp ecified requirem ents. This percentage in crea ses as additional requirem ents are fu lfilled, until the w ork er is fully vested. Only six plans 

provided im m ediate full vesting under which, in contrast to the m ethods of deferrin g an equity in em ployer contributions until certain age or se rv ice requ irem ents have been fu lfilled, the w orker secu res a vested right to his entire accru ed 

benefits im m ediately upon being covered by the plan. Other types of vesting, 

such as d eferred graded partial, im m ediate graded partial vesting, are m od ifications of the m ore com m on vesting cla sses applicable to part o f a w orker*s 

accru ed ben efits. B ecause the 35 plans with d eferred graded vesting included 

1 large plan (W estern C onference of T eam sters), they cov ered only 18 percent 

few er w ork ers than the 127 plans with d eferred full vesting, as shown below :

Plans Workers 1

Type of vesting provision Number Percent

Number

(thousands) Percent

All plans with vesting -------------- 168 100.0 595.0 100.0

Immediate full vesting 2 ------------ 6 3.6 2.6 .4

Deferred graded vesting5 ------------

Deferred full vesting -------------

35 20.8 267.4 4*. 9

127 75.6 325.0 54.6

^ Worker coverage includes both active and retired workers in 1959*

2 Includes 1 plan with 700 workers providing immediate graded vesting.

5 includes 6 plans with 28,300 workers providing deferred graded partial vesting.

Includes 3 plans with 1,100 workers providing deferred partial vesting.

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

Illustrative provision s of the m ore com m on types of vesting are:

D eferred full vesting—

Any em ployee who has accum ulated a total of 15 years of credited 

se rv ice in this plan shall have his rights to participation in this 

plan fully vested . . .

D eferred graded vesting—

Any em ployee w hose em ploym ent is term inated p rio r to his early 

retirem ent date shall be entitled to a deferred retirem ent benefit 

payable at age 65 . . . as follow s:

C redited se rv ice units, for purposes of calculating this deferred 

allow ance shall be only those accum ulated sin ce May 1, 1957, 

when contributions by the em ployer began. The retirem en t ben efit payable at age 65 shall be based on the follow ing percentages 

of accum ulated credited serv ice units since May 1, 1957, m ultiplied by the m onthly amount provided in paragraph (c) 1 *

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Percentage

Credited service units /of benefit/

Less than 5 ----------------

5 but less than 1 0 -------- 10

10 but less than 1 5 -------- 15

15 but less than 2 0 -------- 30

20 but less than 2 5 -------- 50

25 but leas than 3 0 -------- 70

30 or m o r e----------------- 100

Im m ediate full vesting—

The w ork er shall be im m ediately vested in em ployer contributions.

Instead of providing vested ben efits, 29 plans, coverin g 45,600 w ork ers, 

provided only fo r the paym ent of im m ediate cash benefits to w ork ers term inated 

after having m et sp ecified requirem ents. These plans w ere not con sidered as 

having vesting provision s because they did not provide any retirem ent benefits 

to term inated w ork ers. These p rovision s resem ble, both in term s of requ irem ents and benefits paid, dism issa l or severan ce allow ances. 26 The 29 cash 

term ination plans had their greatest covera ge, as shown by the follow ing tabulation, in food m anufacturing, printing, m etalw orking, construction, and trade. 

M ost of them w ere self-in su red .

Cash termination

benefit for worker*s

Cash termination not fulfilling

benefit only vesting requirements

Industry group Plans

Workers*

(thousands) Plans

Workers1

(thousands)

All plans with cash termination

benefits -------------------------- 29 45.6 *12 228.6

Pood and kindred products ------------ 5 8.5 2 7.2

Apparel and other finished textile

products------------------------ - .5

Printing, publishing,and allied

industries ------------------------ 2 3.4 3 4.3

Leather and leather products --------- 1 .7

_

Metalworking ------------------------ 3 9.2 - -

Miscellaneous manufacturing ---------- 1 . .4 • _

Contract construction ---------------- 9 19.1 3 4.6

Motor transportation ----------------- 1 196.1

Wholesale and retail trade ----------- 5 3 A 1 16.5

Services ----------------------------- 1 .3 - -

Worker coverage includes both active and retired workers in 1959.

2 6 plans with 220,800 workers allowed vested workers to elect a cash benefit instead of a vested benefit after completing further age and/or service requirements.

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

26 See C ollective Bargaining C lauses: D ism issa l Pay,BL>S Bull. 1216 (1957).

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Another 12 plans included in the 168 plans with vesting p rovision s p r o ­

vided cash benefits to w ork ers not m eeting vesting requirem ents. T w enty-four 

plans, covering 253,700 w ork ers, with regular vesting p rovision s (including 6 of 

the above 12 plans) gave the w orker the option of receiving his retirem ent ben efits in a lump sum. Som e exam ples of cash term ination p rovision s are:

An em ployee entitled to vested benefits shall make application 

th erefor on form supplied by the board, and such vested ben efits shall be paid in a lump sum not later than 60 days after 

the date paid application is received by the board.

As this plan did not provide regular retirem en t benefits fo r the vested 

w ork ers, it was excluded from the tables showing plans with vesting.

. . . An em ployee who has accru ed less than 10 years of

credited se rv ice at the tim e he ceases to be em ployed by an 

em ployer, shall be entitled to re ce iv e , upon application to the 

tru stees, a lum p-sum paym ent in accordan ce with the follow ing 

schedule, provided he applies for such paym ent within 1 year 

after becom ing eligible th erefor.

Years of future service

credit at date of ces- Withdrawal

sation of employment payment

Less than 2 ----------------

2 but less than 3 ------------- $50

3 but less than 4 ------------- 100

4 but less than 5 ---------- 150

5 but less than 6 ------------- 200

6 but less than 7 ------------- 250

7 but less than 8 ------------- 300

8 but less than 9 ------------- 350

9 but less than 1 0 ------------ 400

As this plan also provided for a vested pension benefit fo r w ork ers with 

10 or m ore years of se rv ice , it was included with plans providing vesting.

In the event an em ployee who has 5 or m ore years of future se r v ­

ice cred it loses his credited se rv ice hereunder, he shall . . . 

re ce iv e a lump sum term ination benefit equal to 50 percen t of 

the contributions made to the fund on his behalf.

No vesting was included in this plan.

At the tim e an em p loy ee^ se rv ice is broken, his rights shall 

be determ ined as follow s:

(a) If, at the tim e of the break in se rv ice , he has a total of 

15 years of continuous serv ice and has had em ployer con ­

tributions m ade on his account for a total of at least 

3, 000 covered hours, he shall be eligible to receiv e a cash 

term ination benefit at any tim e thereafter when he is not 

in covered em ploym ent. E xcept as provided in a rticle VII, 

paym ent to an individual of his cash term ination benefit shall 

be in full settlem ent of all his rights and interests under 

the plan.

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(b) If he has m et the conditions set forth in subsection (a) fo r 

a cash term ination benefit, has attained his 52d birthday, 

and he does not elect to re ce iv e his cash term ination ben efit, he shall be designated as a fo rm e r em ployee and shall 

be entitled to a vested retirem ent benefit as h ereinafter 

d escribed in this a rticle. A fo rm e r em ployee m ay at any 

tim e elect to receiv e his cash term ination benefit and upon 

paym ent th ereof to him he shall cease to be a fo rm e r em ­

ployee and shall not be entitled to any benefits under the 

plan, except as provided in a rticle VII.

(c) If he has not m et the conditions set forth in subsection (a) fo r 

a cash term ination benefit, his past se rv ice credit and future 

se rv ice credit shall be canceled and he shall thereupon cease 

to be an em ployee, and shall not be entitled to any benefits 

under the plan, except as provided in a rticle VII.

This plan provided cash benefits only for w ork ers not qualified fo r v esting, and an option o f cash fo r the vested w ork er.

Death Benefits

M ost w ork ers cov ered by m u ltiem ployer pension plans are also covered 

by a separate group life insurance program . Under an increasing number of these 

program s, retired w ork ers retain part of their life insurance coverage. 27 Many 

pension plans, how ever, also provide death benefits to protect the w ork er 1 s equity 

in the plan as w ell as that of his dependents.

Death benefit provision s analyzed in this study called for a paym ent, 

usually a lump sum , to the w o rk e r’ s b en eficiary, in the event of his death either 

b efore or after retirem ent. P rovision s fo r the return of w ork er contributions 

(with or without interest) and those guaranteeing the num ber or duration of paym ents w ere excluded. 28

Death benefits are illustrated by the follow ing clau ses:

Death benefits b efore retirem ent—

Conditions for Q ualification fo r Death B enefit. Upon the death

of an em ployee who has not retired and who dies after

(a) com pletion of 10 years of continuous se rv ice in the industry; and

(b) com pletion of 5 years of continuous se rv ice under a c o lle c ­

tive bargaining agreem ent; and

(c) paym ent of 40 weeks contributions to the trust fund by the 

em ployer on his behalf

there shall be payable to his designated ben eficia ry , or if no

such ben eficiary is designated, to his estate, a death benefit.

27 See Health and Insurance Plans Under C ollective Bargaining: L ife Insurance, and A ccidental Death and D ism em berm ent B enefits, E arly Sum m er I960, 

BLS B ull. 1296 (1961). “

28 Guarantees of the num ber or duration of paym ents w ere regarded as 

death benefits in a forthcom ing BLS bulletin, op. cit.

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Amount of Death B enefit. The amount o f the death benefit shall 

be an amount determ ined by m ultiplying $ 2 by the num ber of 

weeks during which em ployer contributions have been m ade to 

the trust fund on behalf of the em ployee since the effective date 

or the last break in se rv ice , w hichever is later, but in no case 

shall the death benefit exceed $ 2 , 000.

Death benefits after retirem ent—

Upon qualification fo r a pension and during the p eriod he con ­

tinues to be entitled to paym ent of such pension, a pensioner 

shall be eligible fo r a death benefit in the amount of $1, 500.

Death benefits b efore or after retirem ent—

. . . Death benefits shall be paid to the ben eficiary or ben eficia rie s of a deceased em ployee on the follow ing b a sis:

(a) If the em ployee dies b efore retirem ent his b en eficiary or 

ben eficia ries shall receiv e an amount equal to $50 fo r each 

year of future se rv ice cred it he has accru ed, com puted in 

accordan ce with a rticle II, section 4, h ereof.

(b) If an em ployee dies after retirem ent, his b en eficiary or 

b en eficia ries shall receiv e an amount equal to $50 fo r each 

year of future se rv ice credit he has accru ed, com puted in 

accordan ce with a rticle II, section 4, h ereof, minus the 

total retirem ent benefits which have been paid to such em ­

ployee up to the tim e of his death.

Death benefits b e fo re and after retirem ent—

Subject to the provision s of this section, and unless pension paym ents equalling the lum p-sum paym ent have already been paid, 

a lum p-sum paym ent shall be m ade to the b en eficiary of an em ­

ployee or pensioner upon his death after February 1, 1958. The 

amount of the lum p-sum paym ent shall be in accordan ce with the 

follow ing schedule and based on pension credits earned by actual 

w ork in covered em ploym ent after O ctober 1, 1950, as provided 

in section IV, article 3. Any pension benefits paid to pensioner 

shall be deducted from the lum p-sum paym ent which m ay be due.

Pension credits earned by actual work Lump-sum death

in covered employment, October 1, 1950 benefit amount

At least 5 but less than 6 years------- $500

At least 6 but less than 7 years-------- 600

At least 7 but less than 8 yea r s------- 700

At least 8 but less than 9 y e ars------- 800

At least 9 but less than 10 yea r s------ 900

10 years or m o r e ---------------------- 1,000

If an em ployee incurs a break in serv ice as defined in section 6 of 

a rticle III, he shall lose all credit fo r his p rio r credited se rv ice .

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F ive plans provided sp ecia l w idow 's benefits. The follow ing illustration 

is typical:

. . . In the event a widow survives an em ployee who has been 

receivin g a pension and who dies after attaining the age of 

65 y e a rs, and in the event such widow shall have been m a rried 

to such em ployee fo r a p eriod of not le ss than 10 years and shall 

have attained the age of 50 years p rio r to the death of such em ­

p loyee, then such widow shall be eligible for a pension of $25 

m onthly, to be paid to her until her death or rem a rria ge, w hichever shall first occu r.

P rov ision s fo r death benefits b efore retirem ent w ere found in about the 

sam e proportion of m ultiem ployer plans as p rovision s fo r such benefits after r e ­

tirem ent— 17 and 15 percen t, resp ectively, with each coverin g over a fourth of 

the w ork ers (table 26). In contrast, less than 7 percen t of the single em ployer 

plans, covering le ss than 10 percen t of the w ork ers, had such benefits. P r e ­

retirem ent death benefits w ere m ore com m only provided w ork ers in nonmanufacturing industries— esp ecia lly m ining, construction, and m otor transportation— 

than in m anufacturing industries. P ostretirem en t death ben efits, how ever, w ere 

m ore prevalent in m anufacturing in dustries, m ainly becau se such benefits w ere 

included in the apparel industry plans and largely excluded from the m otor 

transportation plans.

Sixty-fou r plans with 351,1.00 w ork ers, provided death benefits both b efore 

and after retirem ent. As the follow ing tabulation show s, m ore w ork ers w ere 

covered by plans providing only preretirem en t (including the large W estern Conferen ce of T eam sters plan), or only postretirem en t benefits (including large plans 

in the apparel industry) than by those providing both.

Death benefits

Workers ^ Before After

Plans (thousands) retirement retirement

736

64

3,229.8

351.1 X X

59 <*79.9 X

**■9 **97.9 X

533 1,869.9 Not provided

31 31.1 Information not available

^ Worker coverage includes both active and retired

workers in 1959*

NOTE: Because of rounding, sums of individual items

may not equal totals.

A fifth of the insured plans as com pared with a seventh of the se lfinsured plans had a death benefit b efore retirem ent. H ow ever, a tenth of the 

insured plans had postretirem en t death benefits as against a sixth of the se lfinsured plans (table 27).

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Chapter IV. Administrative Procedures

Joint un ion -em ployer adm inistration of em ployee pension funds is one of 

the im portant aspects of m ultiem ployer plans. This developm ent, as previou sly 

m entioned, can be d irectly attributed to the Labor M anagement Relations (T aftH artley) A ct, 1947, subsection 302 (c) (5) (B), which requ ires equal union and 

em ployer representation in the m anagem ent of a pension fund established by a 

union and partly or wholly financed by the em ployer. Since, only m ultiem ployer 

funds established before January 1, 1946, are exem pt from this subsection, there 

was p rovision fo r equal representation in the adm inistration of all but 18 of the 

plans studied.

G enerally, the joint board appointed by the union and em ployers has a lm ost unlim ited pow ers and rights, including the determ ination of plan benefits, 

selection of m edium of funding, designation of funding m ethods, d a y -to-d a y adm inistration, etc. The m ajor exception, as previou sly d iscu ssed, is the revision 

of the basis and amount of contribution, which is always reserv ed fo r the parties 

to determ ine by collectiv e bargaining. Such mutual m anagem ent is, by contrast, 

uncom m on in single em ployer plans. 29

F orm al rules of proced u re are required in m ultiem ployer plan adm inistration, particu larly since the funds are the respon sibility of groups w hose in terests, in this or other resp ects, often clash. Thus, fo r exam ple, proced u re fo r 

the settlem ent of disputes by neutrals is n ecessa ry because the m em bers of the 

board have, at least in theory, no recou rse to the econ om ic sanctions found in 

co llectiv e bargaining. Since the basic docum ents (collectiv e bargaining agreem ent 

and trust agreem ent) setting the pattern fo r the gen eral operation of a m ultiem ployer plan stem from union and em ployer agreem ent, they invariably seek to 

p rotect the rights of each group.

The com position and proced u res of the boards, as provided fo r in c o lle c ­

tive bargaining agreem ents or in trusts agreem ents, are d escrib ed in this chapter. 

F irst, the com position of the boards— the num ber of m em bers, their division 

between the groups represented, and the m ethod of selection and rem oval— is 

exam ined. This is follow ed by an analysis o f the selection of o ffice rs and their 

duties, and the board*s quorum , voting, and related ru les. W hile all data, as 

explained on page 3, relate to the 736 form ulated plans, inform ation was not 

available fo r all plans fo r all item s selected fo r analysis. This situation exists 

not only because of incom plete subm issions and inadequate inform ation due to 

technical distinctions, but also because som e plans sim ply grant the board pow er 

to establish its own rules, as in the follow ing exam ple:

The trustees shall establish proced u ral rules . . . governing 

among other things, the calling and conduct of m eetings, the 

giving of p rox ies, the constitution of a quorum , and the e x istence of a deadlock.

The term s "board of adm inistration, " "board, " "board m em bers, " and 

"join t board, " are used interchangeably throughout this study to re fe r to the group 

of person s (often also called "the board of tru stees, " "pen sion com m ittee, " and 

"adm inistrative body, " in plan docum ents) with ov era ll respon sibility fo r adm inistration of the plan.

29 Notable exceptions are found in pension plans in the autom obile industry, w here joint union-m anagem ent com m ittees adm inister all except the financial aspects.

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C om position of the B oard

An equal num ber of union and em ployer representatives served on the 

boards of all but 22 of the jointly adm inistered plans (as listed below ). H ow ever, 

even in these 22 plans the voting strength of both groups was equal since the quorum and voting rules (pages 57—60) prevented con trol by the la rger group. F or 

exam ple, one plan with m ore em ployer than union m em bers on the board stated:

The operation and adm inistration of the pension and w elfare 

plan shall be the joint respon sibility of the six trustees appointed 

by the em ployers and the three trustees appointed by the union.

The voting pow er of the three union trustees shall equal the 

com bined voting pow er of the six em ployer tru stees. That is, 

each union trustee shall have a voting strength of two as c o m ­

pared to one fo r each em ployer trustee.

Another plan which had m ore union than em ployer representatives in ord er to 

allow representation by all lo ca l unions associated with the plan stated that:

The trustees under this trust agreem ent shall be 14 in num ber,

8 of whom shall be union tru stees, and 6 of whom shall be em ­

p loyer tru stees.

The voting fo r this plan was based on the unit rule (m ajority vote determ ines 

group vote).

Representation on board

All plans studied --------------------

Employer appointed boards: All

employer representatives ------------

Union appointed boards: All union

representatives --------------------

Jointly appointed boards --------------

Equal representation for union

and employers -------------------

More employer than union

representation ------------------

More union than employer

representation ------------------

Equal representation for union,

employers, and public -----------

Equal representation for union and

employers plus a public member —

Information not available ---------

Other --------------------------------

Plans

Workers1

(thousands)

756 3,229.8

5 6.4

10 189.7

718 3,032.7

64 5 2 ,206.0

11 16.6

11 63.2

9 325.2

53 409.3

9 12.4

3 1.1

^ Worker coverage includes both active and retired workers in 1959•

NOTE: Because of rounding, sums of individual items may

not equal totals.

The m em bers of the boards usually served (and su cce sso rs w ere appointed) at the pleasu re of the group origin ally appointing them , i. e. , union and 

em ployer groups, as illustrated by the follow ing clau ses:

Any union trustee m ay be rem oved from o ffice at any tim e by 

the union, such rem oval to be evidenced by an instrum ent in

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w riting signed by the accredited o ffice rs of the union and d e ­

livered to all the tru stees. Any em ployer trustee m ay be r e ­

m oved from o ffice at any tim e by the association or associations 

that designated him , such rem oval to be evidenced by an instrum ent in writing signed by the accredited o ffice r s o f such a s s o cia ­

tion or association s and delivered to all of the tru stees.

* * *

Any trustee m ay be rem oved at w ill by w hom ever shall have 

appointed him , and m ay resign by instrum ent in w riting executed 

for that purpose and delivered to the rem aining tru stees.

sjc sje sje

S u ccessor em ployer trustees and su cce ss o r alternate em ployer 

trustees shall be appointed by the various em ployers who are 

su bscribers to this instrum ent at the tim e such appointments 

are m ade. S u ccessor union trustees and su cce sso r alternate 

union trustees shall be designated by the national o ffice . . .

P articipation of board m em bers in appointment and rem oval, which was 

found in only a few plans, is illustrated by a plan in which union m em bers could 

only be rem oved by the union but:

Any em ployer trustee' m ay be rem oved’from office at any tim e 

by an instrum ent in writing duly signed by a m ajority of the 

em ployers or by a m ajority of the em ployer trustees then 

in o ffice .

Another plan in which an em ployer m em ber could be rem oved by the other em ­

ployer m em bers stated that:

A su cce sso r em ployer trustee shall be im m ediately appointed 

by the two rem aining em ployer tru stees.

R em oval and appointment of a su cce sso r neutral m em ber of the board 

by the union and em ployees, and the board, resp ectively, are illustrated below :

The em ployers shall have the right at all tim es fo r substantial 

cause, to rem ove and replace any trustee or trustees designated 

by them including the public m em ber designated by them and 

representing the em ployers and to fill any vacancy or vacancies 

caused by the death, resignation, or rem oval of any trustee or 

trustees representing such em ployers.

* * *

The union shall have the right at all tim es, fo r substantial 

cause, to rem ove or replace any trustee or trustees re p re ­

senting the union, including the public m em ber designated by 

them and to fill any vacancy or vacancies caused by death, r e s ­

ignation, or rem oval of any trustee or trustees representing 

the union.

The im partial trustee shall be subject to rem oval at any tim e 

at a m eeting of the trustees . . .

* * *

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If there is a vacancy in the o ffice of the neutral trustee, the 

trustee representing the association and the trustee representing 

the contributing em ployers shall select a su cce sso r neutral 

trustee . . .

Although m ost plan docum ents did not detail the reasons fo r which a 

board m em ber might be rem oved, som e gave the circu m stan ces under which 

rem oval action could be instituted. One such p rovision read:

T rustee m ay be rem oved fo r violation of his fidu ciary ob lig a ­

tions under this declaration of trust or other good legal grounds 

by action in a court of appropriate ju risd iction initiated by any 

two trustees or by the party which appointed said trustee.

Another plan provided fo r a board of inquiry with pow er to rem ove for "m a lfea sa n ce”— a term which was left undefined.

A trustee can be rem oved fo r m alfeasance in the execution of 

his trust. Any em ployer or union m ay initiate charges of m a lfeasance against a trustee by filing such charges with the em ­

p loyers and with the union and with the tru stees. Such charges 

shall be re fe rre d by the trustees to a board of inquiry which 

shall con sist of an equal num ber of m em bers appointed by the 

em ployers and the union. The m em bers so appointed shall 

attempt to agree upon an additional m em ber to act as im partial 

chairm an and, if within a period of 5 days an im partial ch a irman is not agreed upon, then application by the trustees shall 

be m ade to the Judge of the United States D istrict Court fo r the 

Southern D istrict of M ississip p i fo r the appointment of an im ­

partial chairm an. A ll record s and other inform ation available 

to the trustees shall be m ade available to the board o f inquiry.

If a m ajority of said board of inquiry finds that a trustee has 

been guilty of m alfeasance, he shall be rem oved and m ay not 

thereafter be eligible to serve as a trustee.

To encourage the prom pt appointment of su cce sso r trustees and to p r e ­

vent the p ossib le interruption and curtailm ent of board action, a few plans p r o ­

vided alternative m ethods of appointment to be used in delays or neglect in filling 

vacancies on the board accordin g to the n orm al proced u res ju st discu ssed. Some 

plans, for exam ple, perm itted any two trustees to petition the courts to fill o ffices 

that have rem ained vacant for a sp ecified period. Two illustrative clauses read 

as follow s:

. . . In the event of the failu re of any party to appoint a su cc e s s o r trustee to fill a vacancy in the offic'e of trustee, which 

such party has the pow er to fill, fo r a period of 30 days, any 

two trustees m ay petition a court of appropriate ju risd iction for 

an o rd er requiring such party to appoint a su cce sso r trustee 

forthwith, and, in the event of a failu re of said party to com ply 

with such o rd er, m ay petition a court of appropriate ju risd iction 

fo r the appointment of a su cce sso r trustee to fill such vacancy.

* * *

In the event of the rem oval term ination of a trustee, or the 

resignation, death, disqualification, disability, or refu sal to act 

of any trustee, or a su cce sso r to any of them, a su cce sso r 

trustee shall be named and appointed by the party which named 

his p re d e ce sso r, within 10 days, after the vacancy o ccu rs. In 

the event either party fails to appoint a su cce sso r trustee within

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10 days after a vacancy o ccu rs as provided fo r in this trust 

agreem ent, then any two trustees m ay petition the United States 

D istrict Court for the Southern D istrict of Ohio, w here the fund 

has its prin cipal o ffice , fo r the appointment o f such trustee. 

Im m ediately upon his acceptance of the trusteeship in writing 

a su cce sso r trustee shall becom e vested with all the property, 

rights, pow ers, and duties of a trustee hereunder with like affect 

as if origin ally named as a trustee.

T erm of Board M em bers. The m em bers o f 80 percen t o f the boards 

w ere appointed to indefinite term s; i. e. , they retained their positions until they 

w ere rem oved, resigned, or died. (See text tabulation.)

Plans Workers1

Number

Term of board members Number Percent (thousands) Percent

All plans studied ----------------

1 year ---------------------------

2 years --------------------------

3 years --------------------------

4 years --------------------------

5 years --------------------------

6 years --------------------------

Employer members, indefinite; union

members, 3 years ---------------

Union members, indefinite; employer

members, 1 year ----------------

Indefinite -----------------------

Other ----------------------------

No provision, or information

not available ------------------

736 100.0 3,229.8 100.0

15 2.0 36.1 1.1

25 3.4 103.9 3.2

15 2.0 77.8 2.4

6 .8 14.9 .5

6 .8 20.0 .6

2 .3 196.8 6.1

4 .5 7.7 .2

3 .4 2.5 .1

588 79.9 2,642.4 81.8

8 1.1 48.8 1.5

64 8.7 78.9 2A

1 Worker coverage includes both active and retired workers in 1959*

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

A typical clause read:

Each trustee shall serve until his death, resignation, or rem oval.

S pecific term s found in 10 percen t of the plans ranged from 1 to 6 years; m ost 

com m only they w ere for 1 , 2, or 3 y ears.

The union and association shall each designate the nam es of 

three trustees, one of whom shall serve fo r a term of 6 years, 

one of whom shall serve fo r a term of 4 y ea rs, and one of whom 

shall serve for a term of 2 y ears; thereafter the union and 

association shall every 2 years during the month of February 

designate one trustee to serve fo r a period of 6 y ea rs; provided, 

how ever, that the foregoin g shall not re strict either the right of 

the initial trustees to succeed them selves or to serve as many 

term s as either the union or association, resp ectively, m ay 

ch oose to redesignate them.

* * *

The term of office of the trustees shall be 1 year and until their 

su cce sso rs are appointed and qualify.

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Size of B oards. The num ber of m em bers currently serving on the boards 

ranged from 2 to 31, and was m ost frequently 6 .

Plans Workers 2------

Number of members of Number

the board * Number Percent (thousands) Percent

All plans studied ---------------- 736 100.0 3,229.8 100.0

Under 4 ^ ---- ------------------- *.5 474.1 14.7

4 ~ 5 ............................. 17.5 144.9 4.5

6 - 7 ............................. . 41.4 521.8 16.2

8 - 9 ............................. . 14.5 305.8 9.5

10-13........................... . 14.0 680.4 21.1

14-17........................... . *.5 525.8 16.3

18-25........................... .

1.6 117.0 3.6

28-31........................... . .5 447.2 13.8

Number not available ------------- 10 1.4 12.8 .4

1 All but 68 plans had an even number of members,

2 Worker coverage Includes both active and retired workers In 1959*

5 1 plan had an Individual trustee as administrator.

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

An exam ple of the m anner of designating the size of the board follow s:

The fund shall be adm inistered by a board of eight tru stees, 

four of whom shall be designated as em ployer trustees and four 

of whom shall be designated em ployee trustees . . .

T ripartite boards had three m em bers (1 union, 1 em ployer, ind 1 public 

or neutral m em ber) in all but one plan, which had six m em bers. Joint boards 

in which a perm anent neutral m em ber was appointed usually had seven or m ore 

m em bers (including the neutral). Illustrative clauses are:

M r. _ _ _ _ _ _ _ has been selected by the d ire cto rs of the

union, M r. _______________ has been selected by the em ployers

. . . and Rev. _ _ _ _ _ _ _ has been selected as the neutral

trustee by the other two tru stees.

* * *

The . . . retirem ent fund . . . shall . . . be adm inistered 

by a board of tru stees, com posed of nine p erson s, four of 

whom shall be representatives of the union, four of whom shall 

be representatives of the em ployer contributors to the said fund, 

and one of whom shall be a neutral person , nam ely the im partial 

chairm an designated in this agreem ent.

Som e trust agreem ents did not specify the num ber of m em bers to be 

appointed to the board, or specified an origin al num ber to be appointed but left 

open the p ossib ility of an in crea se. The latter is illustrated by the follow ing 

clause:

. . . The trustees shall initially number four, two trustees

being em ployer trustees and two trustees being union tru stees. 

M ore trustees m ay be added from tim e to tim e as additional 

em ployers or em ployer groups becom e party to this agreem ent 

as provided herein, except, how ever, that the num ber of e m ­

ployer trustees shall not exceed five, nor the num ber of union 

trustees exceed five. F or each such em ployer trustee so added, 

one union trustee shall be added.

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O fficers of the Board

Like m ost other organized groups, m ultiem ployer plans usually provide 

fo r the appointment of o ffice r s o f the board, such as chairm an, v ice chairm an, 

secreta ry , and trea su rer. The effectiven ess o f the operation o f the governing 

body of a joint labor-m anagem ent pension fund is often determ ined by these appointed o ffice r s . Although, the sp ecific pow ers and duties assigned to these o ffice rs o f the board w ere, in m ost instances, not stated in plan docum ents, it is 

reasonable to assum e that the positions would entail resp on sibilities ordin arily 

associated with such designations in like organizations, and that boards would 

adopt rules delegating sp ecific pow ers to each o ffice r . F or exam ple, m ost plans 

presum ably give the chairm an the right to p resid e over m eetings, p ossib ly with 

little independent pow er to interpret the rules of p roced u re o f the board. A vice 

chairm an would act as a replacem ent of the chairm an, when needed, and a s e c ­

retary would have the duties of keeping the reco rd s of m eetings. A treasu rer, 

if appointed, would probably act as fisca l agent fo r the board. A few plans d e ­

scribed the duties of the o ffice rs as follow s:

The chairm an shall notify the trustees of impending m eetings 

and p resid e over m eetings, and in addition shall p erform such 

other duties as the trustees m ay provide.

jje sje

There shall be a secreta ry of the board who shall keep minutes 

and record s of all m eetings, proceed in gs, and acts of the board 

of tru stees. Copies of all minutes and proceedin gs of the board 

shall be sent by the secreta ry to all m em bers of the board.

* * *

The se cre ta ry -tre a su re r shall keep m inutes and record s of all 

m eetings, proceed in gs, and acts of the tru stees. He shall send 

copies of such minutes and re co rd s to all of the tru stees.

5Je * *

The treasu rer shall have the care and custody and be respon sible 

fo r all the funds of this trust and deposit all such funds in the 

name of this trust in such banks, etc.

The one pow er clea rly delegated to the o ffice rs of the board by nearly all plans 

was to ca ll sp ecial m eetings of the board. (See page 55.)

Although the need of sm all plans m ay not be the sam e as large plans, 

about a sixth of those covering few er than 1,000 w ork ers selected 3 or m ore 

o ffice r s . This proportion was not m uch higher in the plans covering over 10,000 

w orkers— about a fourth. These variations probably stem from the m ore active 

role which all board m em bers m ay take in adm inistering som e of the sm aller 

funds, while in the larger plans it is m ore likely that a p rofession a l adm inistrator 

w ill be em ployed to run the d a y -to-d a y activities. In the sm aller plans the m e m ­

ber selected as secreta ry w ill often person ally m anage the plan; in many cases he 

does so in conjunction with his norm al duties as se cre ta ry o f the participating 

union.

V irtually all plans with o ffice rs had a chairm an or co-ch airm en ; nearly 

1 out of 4, a v ice chairm an; and about 4 out of 5, a secreta ry . Only 14 percen t 

of the plans had an o ffice r designated as trea su rer.

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Plans Workers1

Officers Number Percent

Number

(thousands) Percent

All plans with 1 or more

officers designated ----------...... 591 100.0 2 ,917.0 100.0

Chairman or co-chairmen --------...... 583 98.6 2,89it-.it 99.2

Vice chairman ----------------- •..... 139 23.5 535.0 18.3

Secretary --------------------- 78.3 1 ,653.3 56.7

Treasurer --------------------- ...... 84 14.2 378.8 13.0

Other ------------------------- ...... 21 3.6 120.9 4.1

1 Worker coverage includes both active and retired workers in 1959*

NOTE: Because a plan may have several officers, the sums of individual

items do not equal totals.

Am ong 23 different com binations of o ffice rs , the largest num ber of 

boards— over 50 percent— had a chairm an (or co-ch airm en ) and secreta ry (table 28). 

A com plete slate of o ffice rs— chairm an, v ice chairm an, secreta ry a n d /or a tr e a s ­

urer— was selected in nearly a fifth of the plans. The only o ffice rs found in 

som e plans w ere chairm an (47 plans), co-ch a irm en (37 plans), and secreta ry 

(7 plans).

Selection of O ffice r s . The selection of o ffice rs was, as m ight be e x ­

pected, usually left to the board. The ch oice of particu lar board o ffice r s , how ­

ever, was often restricted to m em bers of a single group. These restriction s— 

a com plex m aze of rules usually detailed in the plan docum ents— w ere designed 

so as to ca rry out the theory of joint respon sibility and distribution of con trol in 

the join t board.

In alm ost 40 percen t of the plans with at least one o ffice r , fo r exam ple, 

the chairm an had to be selected from a group other than that of another o ffice r, 

usually the v ice chairm an, secreta ry , or both. O ver a third of these plans r e ­

quired that the jobs be alternated annually between the groups represented.

Plans ___ Workers 2

Number

Selection of chairman1 Numbfer Percent (thousands ) Percent

All plans with chairman -------------- 583 100.0 2 ,894.11 100.0

By the board ------------------------ 490 84-.0 1 ,898.6 65.6

Any board member ----------------- 153 26.2 736.0 25.4

Position must alternate

each year ------------------ 25 4.3 241.2 8.3

Position does not alternate — 128 22.0 494.8 17.1

Must be from different group than

another officer ----------- ---- 224 38.ll 742.0 25.6

Position must alternate

each year ------------------ 88 15.1 248.3 8.6

Position does not alternate -- 136 23.3 493.7 17.1

Must be from designated group ---- 31 5.3 84.4 2.9

Co-chairmen ---------------------- 70 12.0 162.5 5.6

Other --------------------------- 12 2.1 173.7 6.0

By employers and union --------------- 22 3.8 608.7 21.0

Information not available ------------ 71 12.2 387.3 13.4

1 See table 29 for added details.

2 Worker coverage includes both active and retired workers in 1959.

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

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Exam ples of each of these com m on approaches are:

Chairm an m ay be any board m em ber

The trustees shall select a chairm an from among their num ber.

5jc >5< Sjc

Chairm an m ay be any board m em ber but job alternates

The chairm an of the board of trustees shall be changed every 

6 months to the end that the chairm anship shall rotate every 

6 m onths.

* * *

Chairm an and other o ffice r(s ) m ust be from different group

The board shall select one of its number who shall serve as 

chairm an and one who shall serve as se creta ry . If the ch a irman is a union trustee, the secreta ry shall be an em ployer 

trustee.

* * *

At the first m eeting of the trustees, they shall elect a chairm an 

and a secreta ry whose term s shall com m ence on the date of 

their election and continue for 1 year or until his other su cc e s s o rs have been elected . . . At no tim e shall both such 

o ffice s be held by tru stees, both of whom have been designated 

by the em ployers or by the brotherhood.

* ❖ ❖

Chairm an and other o ffice r(s ) m ust be from different group and 

jobs alternate

. . . During the month of D ecem ber in each year, the trustees 

shall select from am ong the trustees a chairm an and a c o - 

chairm an [v ic e chairm an/ of the tru stees, to serve for a term 

of 1 year com m encing January 1 st of the year follow ing and 

until their su cce sso rs have been regularly elected. In oddnum bered y ears, the chairm an shall be selected from among 

the union trustees and the /v ic e chairm an/ co-ch airm a n from 

among the em ployer trustees, and in the even-num bered years 

the chairm an shall be selected from among the em ployer trustees 

and the co-ch airm a n from among the union tru stees.

❖ ❖ ❖

Chairm an and other o ffice r(s ) rotate in pairs

The d irectors shall m eet as prom ptly as possible after the ex ecution of this plan and elect a chairm an, a v ice chairm an, a 

secreta ry and a vice secreta ry from among the d ire cto rs. The 

chairm an and vice chairm an shall be selected from among the 

em ployer d irectors, and the secretary and v ice secreta ry shall 

be selected from among the union d irectors in the odd-num bered 

y ea rs. In even-num bered years the chairm an and vice chairm an 

shall be selected from among the union d ire cto rs and the s e c r e ­

tary and vice secretary shall be selected from among the em ­

ployer d irectors.

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On the other hand, any m em ber of the board, regard less of the group 

he represen ts, could be selected as chairm an in about a fourth o f the plans, a lthough, in som e ca ses, the chairm anship had to alternate between the groups 

each year.

The o ffice rs w ere chosen by each partisan group of trustees or the board 

as a whole in all plans with co-ch a irm en . F or exam ple:

The trustees shall . . . elect an em ployer chairm an and . . 

a union chairm an • . •

In 31 plans the chairm an always had to be selected by the board from 

a sp e cific group as, fo r exam ple, under the follow ing clau se:

The trustees shall select one of their number selected by the con ­

tributing em ployers to serve for a term of 1 year as chairm an.

In a few of these plans, how ever, although the chairm an always had to be selected 

from one group, another o ffice r had to be appointed from the other group. One 

plan read, for exam ple:

The chairm an of the board of trustees shall be selected from 

the em p loy er-tru stees of the board and the se cre ta ry -tre a su re r 

shall be selected from the union trustees of the board . . .

Twenty plans provided for the selection of an im partial arbitrator as 

chairm an, usually by the em ployers and union, w hose function was to break 

deadlocks. In a few plans he also had adm inistrative duties.

Linked with the selection of chairm an, half of the plans providing fo r 

vice chairm an required alternating of his position each year with that of another 

o ffice r, usually the chairm an, as illustrated by the clause on page 51.

Plans_____ _____ Workers 2

Selection of vice chairman Number Percent

Number

(thousands) Percent

All plans with vice chairman -------- 139 100.0 535.0 100.0

By the board ----------------------- 132 95.0 520.1 97.2

Any board member ---------------- 30 21.6 79.9 14.9

Must be from different group than

another ~of fleer--------------- 84 60.4 267.9 50.1

Position must alternate ----- 47.5 173.2 32.4-

Position does not alternate — 18 12.9 94.7 17.7

Co-vice chairmen ---------------- 4 2.9 48.0 9.0

Must be from designated group --- 6 4.3 10.9 2.0

Other -------------------------- 8 5.8 113.4 21.2

Information not available ----------- 7 5.0 14.9 2.8

* See table 29 for added details

2 Worker coverage includes both active and retired workers in 1959

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

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In over 40 percent of the plans with a secreta ry , selection by the board 

was m ade regardless of group - affiliations of other o ffic e r s .

Plans Workers 2

Selection of secretary1

All plans with secretary -----------

By the board -----------------------

Any board member ---------------

Must be from different group than

another officer --------------

Position must alternate — *---

Position does not alternate —

Must be from designated group ---

Co-secretaries -----------------

Other --------------------------

By union and employers -------------

Information not available ----------

Number Percent

Number

(thousands) Percent

463 100.0 1 ,653.3 100.0

394 85.1 1,248.5 75.5

199 43.0 502.9 30.4

148 32.0 519.3 31.4

24 5.2 109.6 6.6

124 26.4 409.7 24.8

32 6.9 97.1 5.9

5 1.1 3.8 .2

10 2.1 125.4 7.6

7 1.5 28.9 1.7

62 13.4 375.9 22.7

retired workers in 1959.

1 See table 29 for added details.

2 Worker coverage includes both active and

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

These clauses usually read:

The board shall appoint a secreta ry who shall keep minutes or 

re co rd s of all m eetings, proceedin gs, and acts of the board.

A third of the plans with a secreta ry required that he be from a group other than 

that of another o ffice r, usually the chairm an. Some of these plans also required 

the alternation of jo b s. (See clau ses on page 5 1 .)

The treasu rer, selected in 84 plans, could be any board m em ber in a lm ost half of the plans.

Plans Workers 2

Selection of treasurer 1

All plans with treasurer ------------

By the board -----------------------

Any board member ----------------

Must be from different group than

another officer ---------------

Position must alternate -----

Position does not alternate—

Must be from designated group ---

Co-treasurers -------------------

Other --------------------------

Information not available -----------

Number Percent

Number

(thousands) Percent

84 100.0 378.8 100.0

72 85.7 365.6 96.5

37 44.0 204.6 54.0

13 15.5 23.1 6.1

3 3.6 4.7 1.2

10 11.9 18.4 *.9

11 13.1 22.7 6.0

2 2.4 1.5 .4

9 10.7 113.7 30.0

12 14.3 13.3 3.5

1 See table 29 for added details.

2 Worker coverage includes both active and retired workers in 1959.

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

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T erm o f C hairm an, About the sam e num ber o f plans provided 1-year 

term s fo r their chairm an as provided indefinite term s. About half the plans 

with 1-year term s alternated the chairm anship between the groups. M ost plans, 

w here alternating was not required, had indefinite term s. The latter cov ered 

about half the w ork ers in plans fo r which inform ation was available w hile the 

fo rm e r cov ered only a fourth because the larger plans do not alternate job s as 

m uch as the sm aller plans.

Pl^ns _____Workers 1

Term of chairman Number Percent

Number

(thousands) Percent

All plans with chairman ----------— 583 100.0 2,894.4 100.0

1 y e a r -------------------------- 236 40.5 770.0 26.6

2 years ------------------------- 9 1.5 26.6 .9

3 years ------------------------- .5 9.0 .3

5 years ------------------------- .2 16.5 .6

6 months ------------------------ 5 .9 16.3 .6

1 meeting ----------------------- 3 .5 178.4 6.2

Indefinite ---------------------- 41.3 1,427.5 49.3

Information not available -------- 85 14.6 450.1 15.6

^ Worker coverage Includes both active and retired workers in 1959#

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

A ffiliation of Chairm an. The chairm an currently serving was a union 

representative in over 30 percen t of the plans and an em ployer m em ber in about 

the sam e proportion of plans. Since many of the larger plans have union or 

public chairm en, plans with an em ployer chairm an only cov ered a fourth of the 

w ork ers under m ultiem ployer plans. In 22 plans, a public m em ber acted as 

chairm an, usually, as pointed out previou sly, as an im partial u m pire.

Affiliation of chairman, i960

All plans with chairman ----------

Union member ---------------------

Employer member ------------------

Co-chairmen ----------------------

Public member --------------------

Other ----------------------------

Information not available --------

Plans___ ____Workers.,-L

Number Percent

Number

(thousands) Percent

583 100.0 2,894.4 100.0

197 33.8 1,214.7 42.0

180 30.9 748.8 25.9

70 12.0 162.5 5.6

22 3.8 372.6 12.9

2 .3 13.9 .5

112 19.2 381.9 13.2

Worker coverage Includes both active and retired workers in 1959.

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

P rocedu res of the B oard

The rules for a quorum (the number of board m em bers n ecessa ry to be 

present in ord er that action can be taken on m atters before the board) and voting

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(the num ber o f votes needed to take action) w ere designed, alm ost without ex ce p ­

tion, to ensure either the p resen ce of equal num bers of each group o r equal 

voting strength when unequal num bers are present. Since it is im perative that 

decision s be reached in every case, virtually all plans either had neutral m em ­

bers on their boards, o r, m ore often, had a procedure fo r selecting an im partial 

arbitrator to settle disputes. Although m ost of the plans did not define the term 

’’deadlock, " it m ay be assum ed that the deadlock* would exist, as stated in one 

plan: . . /u p on / the failu re of the em ployer and union trustees to agree on

a m atter relating to the adm inistration or accounting of the pension trust fund. ”

Regular M eetings. Only 22 percent of the plans had sp e cific provision s for 

regular m eetings, usually scheduled quarterly, annually, or sem iannually. Another 

10 percent of the plans sim ply stated that the board would m eet p eriod ically .

,Elans........ ........Wo^cersi

Number

Regular meetings Number Percent (thousands) Percent

All plans ----------------------- 736 100.0 3,229.8 100.0

Specific provisions -------------- 163 22.2 865.9 26.7

Annually -------------------- 6.0 309.1 9.6

Semiannually ---------------- 38 5.2 133.8 4.1

Quarterly ------------------- 49 6.7 87.7 2.7

Monthly --------------------- 14 1.9 143.5 4.4

Other ----------------------- 18 2.4 191.8 5.9

Periodically --------------------

No provision, or information

79 10.7 303.4 9 A

not available — ---------------- --- 4$4 67.1 2 ,060.6 63.8

1 Worker coverage Includes both active and retired workers in 1959*

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

Such p rovision s, how ever, m ay be contained in other docum ents, e. g . , board 

m inutes, bylaw s, e t c ., as the follow ing clause illu strates:

M eetings of the trustees shall be held at such tim es as the 

trustees shall determ ine.

An exam ple of regu larly scheduled m eetings is:

Regular m eetings shall be held at least sem iannually.

Special M eetings. O ver 60 percent o f the plans had proced u res fo r the 

calling of sp ecial m eetings even though less than a fourth had provision s for 

holding regular m eetings. Special m eetings m ight be called by the chairm an 

an d/or another o ffice r, or by two, three, o r four board m em bers in nearly 

40 percent of the plans. (See tabulation on the follow ing p a g e .) A lm ost 10 percent 

allow ed only one o r, som etim es, two designated o ffice r s , always including the 

chairm an, to ca ll sp ecial m eetings; while 15 percent of the plans, perm itted a 

sp ecified number of board m em bers to ca ll sp ecial m eetings without giving the 

o ffice r s of the board any greater authority than other board m em bers.

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■Plans______ _______ Workers*

Number

Special meetings Number Percent (thousands) Percent

All plans -------------------------- 736 100.0 3,229.8 100.0

Plans with procedure for calling

special meetings ----------------- 46o 62.5 2,133.6 66.1

Special meetings may be called by:

Chairman and other officer(s)

or board members 2 ----------- 272 37.0 1,187.7 36 .8

Chairman and other officer(s)

o n l y......... ................ 62 8 .^ 230.4 7.1

Any board members ' ------------ 111 15.1 630.6 19.5

Other -------------------------- 15 2 .0 84.9 2.6

No provision, or information

not available -------------------- 276 37.5 1,096.4 33.9

* Worker coverage Includes both active and retired workers in 1959.

Usually 2 or 3 members. See table 30 for details.

^ Between 1 and 4 members. See table 30 for details.

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

Illustrations o f the m ore com m on of these provision s are presented below

. . . Any two m em bers of the board of trustees may ca ll a 

m eeting setting the tim e and place by giving to the other m em ­

b ers of the board at least 5 days* w ritten notice by r e g is ­

tered m ail • . .

* * *

A m eeting m ay be called at any tim e by the chairm an or by 

any two of the trustees upon giving 5 days* w ritten notice to 

all the other trustees . . .

* * ❖

. . . Either the chairm an or the co-ch airm a n , or any two 

trustees m ay ca ll a m eeting of the trustees at any tim e by 

giving at least 5 days1 w ritten notice of the tim e and place 

th ereof to each trustee . . .

* * *

Some illustrations of less com m on m ethods are:

. . . The chairm an or any four trustees m ay ca ll a m eeting of

the trustees at any tim e by giving at least 1 week*s w ritten 

notice of the tim e and place thereof to each trustee . . .

* * *

Special m eetings of the trustees held on the w ritten request of 

the m ajority of the em ployer trustees or a m ajority of the 

union trustees . . .

* * $

M eetings of the trustees m ay be called by the im partial trustee 

in his discretion , and shall be called by the im partial trustee 

at the w ritten request of any two trustees . . .

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Q uorum . Over a third of the plans sim ply sp ecified that a quorum 

existed if a m ajority of each group was present, as shown by the follow ing ru les:

A m ajority of the em ployer trustees and a m ajority of the union 

trustees m ust be present in person at any m eeting to constitute 

a quorum for the transaction of bu sin ess.

Another plan with six tru stees, three union and three em ployer m em bers, 

stated that:

. . . At any regular or special m eeting of the board of trustees, 

the physical p resen ce of at least two em ployer trustees and two 

em ployee trustees shall constitute a quorum .

Flans___ ___ Workers,,?:,

Quorum rule Number Percent

Number

(thousands) Percent

All jointly administered plans 2 ---- — 718 100.0 3,032.8 100.0

All board members ------------------ 58 5.3 178.8 5.9

Majority of board members ---------- — 83 11.6 242.8 8.0

Majority of members of each group -- — 257 35.8 827.7 27.3

Equal proportion of members* of

each g roup----------------- ---- — 132 18.4 734.5 24.2

Specified number of all members * -- 47 6.5 117.0 3.9

Other ----------------------------- 1 .8 30.6 1 .0

No provision, or information

not available -------------------- — 148 20.6 901.3 29.7

1 Worker coverage includes both active and retired workers in 1959.

2 It is assumed that the provisions for quorum, voting, and breaking of

deadlocks have no significance in union- or employer-administered plans, hence

the exclusion from this analysis.

5 of these, 22 plans did not specify that a certain number of each group

be present; however, the total number specified always equaled, except, in a few

plans, more than half of the total board members, thus insuring the presence of

at least 1 member of each group.

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

A sixth o f the plans required the presen ce of an equal number of m e m ­

bers from each group— m ost often one or two. The num ber required was exactly 

half or, w here the board was large, less than half of each group. F or exam ple, 

one plan with four m em bers provided:

Two m em bers of the board of trustees shall constitute a quorum, 

provided that one of such m em bers is a trustee designated by 

the union and the other is a trustee designated by the association .

In another plan with eight tru stees, the quorum rule w as:

Four or m ore trustees present in person at any m eeting shall 

constitute a quorum fo r the transaction of business, provided 

that there is present at least two trustees designated by the 

associations which are a party to this declaration of trust and 

two trustees designated by the unions which are a party to this 

declaration of trust.

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T hirty-eight plans, including 18 plans with a tw o-m em ber board, required 

all trustees to be present. A plan with four tru stees, fo r exam ple, stated:

F our trustees shall constitute a quorum for the purpose of 

holding a m eeting and transacting business.

Although the group affiliation of the board m em bers was not m entioned 

in the quorum rules of 1 out of 8 plans (sim ply requiring that a m ajority of the 

board be present), they required the presen ce of at least one m em ber o f each 

group. F or exam ple, one plan with six trustees (three from each party) im plicity 

required the presen ce of at least one from each group by specifying M. . . four 

trustees shall constitute a quorum at any m eeting. n Others required at least one 

m em ber from each by providing ". . . a m ajority of the trustees shall con ­

stitute a quorum . "

The rules of 47 plans d escribed a quorum in term s o f a sp ecified number 

of board m em bers, often without further qualification. They are illustrated by 

the follow ing clau ses:

A quorum shall con sist of at least three trustees present or 

voting, as hereinafter provided. A ll decision s o f the trustees 

shall be by m ajority vote of the quorum , which voting shall be 

on a unit basis of the resp ective em ployer and em ployee tru stees.

* * *

F our trustees shall constitute a quorum for a m eeting of the 

tru stees, provided that at least one trustee appointed by each 

association is part of the quorum .

Lack o f Quorum . To discou rage any group from boycotting a m eeting to 

prevent action because of the lack of a quorum , 1 out of 6 plans said that:

A deadlock shall be deem ed to exist whenever the lack of a 

n ecessa ry quorum of trustees . . . continued fo r £a specified 

num ber oT7 su ccessiv e m eetings of the trustees . . .

The follow ing tabulation shows that nearly th ree-fou rth s of the plans 

with such a clause provided that if no quorum was present for two consecutive 

m eetings, the m em bers o f the board could insist on bringing the m atter up for 

the review and d ecision o f an im partial arbitrator. (See page 60 fo r discu ssion 

of p roced u res fo r breaking d ea d lock s.)

Plans___ _____ Workers,!

Deadlock in case of

lack of quorum Number Percent

Number

(thousands) Percent

All jointly administered plans2 ------ 718 100.0 3,032.8 100.0

Deadlock exists if quorum lacks for:

1 meeting ----------------------- 31 4.5 123.6 4 .1

2 meetings ---------------------- 87 12.1 353.6 U , 7

3 meetings ----- ---------------- 1 .1 .5 (3 )

No provision, or information

not available --------------------- 599 83.4 2,555.0 «4.2

1 Worker coverage includes both active and retired workers in 1959*

2 See footnote 2 in tabulation on p. 57.

5 Less than 0.05 percent.

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

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V oting. Although voting ru les, like quorum rules, exhibited wide v a ria ­

tions, all but a few rules w ere expressed in term s of a m ajority or unanimity. 

Three out of 5 jointly adm inistered plans required a m ajority vote. This was 

defined as a m ajority of the entire board by 190 plans; a m ajority of the number 

of m em bers actually present in 112 plans; a m ajority of the votes cast in 121 plans; 

and a m ajority o f a quorum in 12 plans (table 31). Some of these rules also 

sp ecified that equal voting pow er be assigned to each party or that a m inim um 

num ber o f m em bers from each party had to vote favorably.

The variations are illustrated by the follow ing excerpts fro m plans with 

m aj o r ity rule s ;

Any action taken by the trustees shall be by the con cu rrin g vote 

of a m ajority of all tru stees.

In one six -m em b er board the rule read:

On all m atters the concurring vote of four trustees shall be 

sufficient to ca rry any m otion or resolution.

Any action taken by the trustees shall be by the con cu rrin g 

vote' of a m ajority of the trustees present at a m eeting at which 

a quorum shall be present.

A ction taken by the trustees shall generally be by a m ajority 

vote, except that . . . each trustee present shall have one 

vote on all m atters, provided, how ever, that if there are an 

unequal number of em ployee trustees or em ployer trustees p r e ­

sent at any m eeting, then in that event the group of trustees being 

the le s s e r in num ber shall be entitled to cast an equal num ber 

of votes as the group that has the larger number present at any 

such m eeting.

A unanimous vote of the m em bers of the board was needed in 1 out of 

4 plans. Since these 178 plans included 18 plans with a tw o-m em ber board and 

136 plans w here the unit rule (the vote of a particular group is determ ined by the 

m ajority vote of the group) prevailed, in nearly all of these plans a m ajority vote 

was also a unanimous vote. The follow ing quotation illu strates how one plan set 

forth the unanimous unit rule:

The one vote of the union trustees shall be cast in accordan ce 

with the decision of the m ajority of said union trustees . . .

The one vote of the em ployer trustees shall be cast in accordan ce 

with the decision of the m ajority of said em ployer trustees . . .

At least a total of four affirm ative votes m ust be cast by em ­

ployer trustees to determ ine the one vote of the entire group of 

em ployer trustees . . .

At least a total of four affirm ative votes m ust be cast by union 

trustees to determ ine the one vote of the entire group of 

union trustees . . .

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These voting rules would by their very nature n ecessitate the affirm ative 

vote of at least one m em ber o f each party in ord er to pass a m otion— with the 

p ossib le exception o f som e of the plans in which the rules w ere stated in term s 

o f a bare m ajority of m em bers presen t, of votes cast, or of a quorum . Of the 

49 plans with a "b a re m ajority of the m em bers presen t" rule, 19 plans appeared 

to allow , through a litera l interpretation of the quorum and voting ru les, p ossib le 

dom inance at a valid m eeting o f the board by a single group. F or exam ple, one 

board with three m em bers from each group had a quorum rule requiring the 

p resen ce o f at least two m em bers of each group. If three m em bers from one 

group and two from the other w ere presen t, the m ajority of the m em bers presen t 

would be three of the m em bers o f a single group, and their votes would be su fficient to pass any m otion. Seven plans with a "m a jority of votes ca st" rule and 

six plans with a "quorum m ajority " rule also could con ceivably allow fo r in ­

equities in adm inistration. It is entirely p ossib le that lo ose w ording of such 

trust agreem ents, rather than actual p ra ctice, accounts fo r the existence of 

such p o ssib ilitie s.

D eadlocks and A rbitration . A lm ost 90 percen t of the join tly adm inistered 

plans coverin g alm ost all of the w ork ers had som e p rovision fo r the settlem ent 

o f adm inistration disputes. Under 3 out o f 4 plans, an arbitrator was selected 

when the need a rose, while under 1 out o f 7 plans a perm anent arbitrator was 

always available, either as a neutral m em ber of the board or through p rio r 

selection .

Bnpartial arbiter

All Jointly administered plans 2

Temporary arbitrator selected --

Permanent arbitrator selected —

Board member --------------

Not a board member --------

No provision, or information

not available ---------------

■Plans____ ___ Workers1

Number Percent

Number

(thousands) Percent

718 100.0 3,032.8 100.0

53^ 7*L4 1,752.8 57.8

104 14.5 1 ,20*1.1 39.7

42 5.8 734.6 24.2

62 8.6 469.5 15.5

80 11.1 75.7 2.4

^ Worker coverage includes both active and retired workers in 1959*

2 See footnote 2 in tabulation on p. 57.

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

W here an im partial um pire was to be selected fo r a sp ecific dispute, 

the board was first em pow ered to appoint him , as in the follow ing clause:

In the event of a deadlock between the tru stees, the question 

shall be decided by an im partial um pire appointed by the vote 

of the trustees . . .

If the board could not agree on a selection , virtually all plans designated that 

another p erson (s) would be asked to select an um pire. N early 3 out of 5 plans, 

as shown by the follow ing tabulation, use the appropriate U. S. D istrict Court— the 

proced u re provided in the L abor Management R elations A ct.

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If board Is unable to agree

on arbitrator, he will be Number

---Class--- ----- Workers1

appointed by Number Percent (thousands) Percent

All plans with temporary arbitrator --- 534 100.0 1,752.8 100.0

U.S. District Court ------------------- 309 57.9 1,073.7 61.3

American Arbitration Association ------ 82 15.4 186.3 10.6

State authority -----------------------

Federal Mediation and Conciliation

65 12.2 74.0 4.2

Service-----------------------------

Plan documents specify person who

20 3.7 26.9 1.5

names temporary arbitrator ---------- 20 3.7 134.8 7.7

Other -------------------------------- 6 1 .1 180.1 10.3

No provision ------------------------- 32 6 .0 76.9 4.4

Worker coverage Includes both active and retired workers in 1959.

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

An exam ple o f D istrict Court p roced u re is:

. • • and upon failu re o f the trustees to agree within a reasonable 

length of tim e on the selection o f an im partial um pire, either the 

em ployer or union tru stees m ay petition the United States D istrict 

Court fo r the D istrict of M assachusetts fo r the appointment of 

such im partial um pire.

Another plan re fe rre d m ore d irectly to the p roced u re set forth in the a ct;

In the event o f failu re to appoint such an um pire within a re a ­

sonable length of tim e (not to exceed 30 days, which m ay be 

extended by mutual agreem ent o f the two said groups), an im ­

partial um pire to decide such dispute shall, upon petition of 

either group, be appointed by the United States D istrict Court 

fo r the E astern D istrict o f M ichigan, Southern D ivision, in the 

m anner p re scrib e d by Section 302 of the Labor Management 

Relations A ct of 1947, as amended. The d ecision of such im ­

partial um pire, whether appointed by the two groups, as a fo re ­

said, or by the D istrict Court of the United States, shall be 

final and binding on all parties to this p la n .'

The other outside agencies com m only called upon in board d isa g re e ­

m ents— the A m erican A rbitration A ssociation and the F ed eral M ediation and 

C onciliation S ervice— are re fe rre d to in the follow ing clau ses:

. . . In the event of failu re o f the trustees to agree on an im ­

partial um pire within 5 days thereafter, any one df the trustees 

m ay petition the D irector of the F ed eral M ediation and Conciliation S ervice fo r the appointment o f an im partial um pire. 

The decision of said um pire shall be final, binding, and con ­

clu sive upon the trustees and all parties con cern ed.

. . . In the event that no um pire shall have been selected within 

20 days after such deadlock shall a rise, the A m erican A rb itra ­

tion A ssociation shall be requested by such trustees or any of 

them to appoint an um pire.

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In the 32 plans with no p rovision fo r an outside party to select an a r ­

bitrator in case of the board*s deadlock, presum ably the m em bers of the board 

would apply to the U. S. D istrict Court as provided in the L abor Management 

R elations A ct.

Since plans with a tripartite adm inistrative body, or a neutral m em ber, 

had a "b u ilt-in perm anent arbitrator, n they needed no additional help to settle 

disputes. If the perm anent arbitrator was not a board m em ber, he was o r d inarily appointed by the union and em ployers by designation in the collectiv e 

bargaining agreem ent, pension plan, or trust agreem ent, or they did so pursuant 

to pow er granted to them by one of these instrum ents. F or exam ple, one trust 

agreem ent stated:

In the event that the assent of the m ajority of the trustees is 

not obtained on any issu e, the dispute shall be re fe rre d to . . . , 

a neutral person to be called the "u m pire. "

H ow ever, as shown by the follow ing tabulation, he is som etim es appointed by 

the board.

Permanent arbitrator is

appointed by

All plans with permanent arbitrator

not a board member -------------

Board ----------------------------

Union and employers---------------

____ Elans___ ......

Number

Number Percent (thousands) Percent

62 100.0 ^69.5 100.0

15 24.2 100.2 21.3

*7 75.8 369.3 78.7

Worker coverage Includes both active and retired workers in 1959.

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

If the board could not reach agreem ent, the arbitrator could som etim es be appointed by an outside agency, usually the U. S. D istrict Court.

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Chapter V* Functions of the Administrator and Protection 

of Individual Worker’ s Pension Rights

Although the benefit provision s o f pension plans determ ine the req u irem ents which the w orker m ust m eet to receiv e benefits, their realization and 

continuation depend upon adm inistrative decision s as w ell as other plan provision s 

and the legal fram ew ork in which they operate. 30

This chapter exam ines in detail the adm inistrative p roced u res and selected 

plan provision s that m ay affect a w ork er1 s rights to re ce iv e benefits, or a pens io n e r s assurance of continued benefits. F irst, the adm inistrative details, in ­

cluding recordkeeping activities and application, claim s, and appeals proced u res 

are exam ined, based on an analysis of the adm inistrative arrangem ents reported 

by plan adm inistrators in item 9 of the form D - l . 31 This is follow ed by an 

analysis of plan provision s fo r se rv ice crediting, plan amendm ent and term ination, 

em ployer withdrawal, and restriction s on em ploym ent after retirem ent. A ll data 

in this chapter re fe r to the 736 form ulated plans.

A dm inistrative P roced u res

In tw o-thirds of the plans studied, coverin g an equal prop ortion of the 

w ork ers, the board of adm inistration was authorized to p e rfo rm , and had resp on ­

sibility fo r, all of the six adm inistrative functions listed in item s 9 and 12 of the 

form D - l , nam ely: Maintaining re co rd s, receivin g applications, p rocessin g

claim s, determ ining eligibility, and initially and finally determ ining appeals 

(table 32). In many of these plans, the board itself did not p erform each function; 

rather, it delegated one or m ore to a paid adm inistrator or to an individual board 

m em ber respon sible to the board. One plan, fo r exam ple, included a clause in 

the trust agreem ent providing fo r the appointment of a paid adm inistrator to p e r ­

form these functions:

The adm inistrator shall p erform the duties delegated to him by 

the trustees and shall be in charge of the adm inistration of the 

o ffice and record s of the plan and trust, the receip t and deposit 

of m onies and other p rop erties of the trust, of all claim s against 

the trust and such other duties as m ay be delegated to him by 

the tru stees.

30 Som e of the legal problem s pecu liar to pension plans are exam ined in: 

Edwin R. P atterson, L egal P rotection of P rivate P en sion Expectations (Hom ewood,

III., R ichard D. Irwin, 1961), and Benjam in A aron, L egal Status of E m ployee 

Benefit Rights Under P rivate P ension Plans (H om ewood, III. , Richard D. 

Irwin, 1961 ).

31 A dm inistrators w ere required to report the nam es of the party or parties 

perform in g specified adm inistrative functions, including m aintaining re co rd s, d e ­

term ining eligibility, p rocessin g claim s, and determ ining appeals. Each adm inistrator was also to report the p roced u res follow ed in presenting claim s fo r ben efits and in appealing denial of claim s. In ord er to attain con sisten cy, the 

resp on den ts reports w ere edited by the Bureau of Labor Statistics fo r purposes 

of this study. F or exam ple, if a paid adm inistrator (other than a se rv ice o r ­

ganization) or a m em ber of the board was identified as perform in g a specified 

function, this was taken to show that the function was p erform ed by the board as 

a whole— the m anner in which it was reported by m ost plans, including those 

known to have a paid adm inistrator, who, in fact, did p erform the function.

See appendix B fo r form D - l.

63

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H ow ever, the ultim ate respon sibility fo r the p erform an ce of the duty was usually 

vested in the board by the sam e plan docum ents.

In the rem aining third of the plans som e of the functions w ere delegated 

by the board to other p arties. In these plans, the union, a se rv ice organization, 

a corporate trustee, or an insurance com pany, was m ore likely to m aintain plan 

re co rd s or to p ro ce ss claim s than to p erform any of the other adm inistrative 

functions. F or exam ple, in about 1 out of 5 of these plans, the union maintained 

plan re co rd s while the board p erform ed the other functions. A se rv ice organ ization relieved the board of this function in an alm ost equal num ber of plans.

Maintaining R e co rd s. The board of adm inistration alone or in co o p e ra ­

tion with another party, e. g. , the insurance c a r r ie r , kept plan record s in about 

th ree-fou rth s of the plans.

Plans Workers1

Number

Maintains records Number Percent (thousands) Percent

All plans studied -------------------- 736 100.0 3,229.8 100.0

Board ------------------------------- 567 77.0 2 ,668.8 82.6

Board only ----------------------- 521 70.8 2 , M 8 .tf 7^.9

Board and insurer ---------------- 36 **.9 239.8

Board and corporate trustee ------ 2 .3 .8 w

Board and union ------------------ 2 .3 3.8

Board and service organization --- 1 .1 1 .0 (4)

Board and insurer and corporate

trustee ----------- ------------ 1 .1 1 .8 .1

Board and employers -------------- * .5 3.2 .1

Service organization ----------------- 50 6 .8 117.5 3.6

Union ------------------------------- 55 7.5 371.7 11.5

Employers --------------------------- 12 1.6 10.1 .3

Corporate trustee -------------------- 25 3 A 39*1 1.2

Insurer ----------------------------- 5 .7 2.2 .1

Employers and union ------------------ 3 A 5.i .2

Other ^ ---------------------------- 9 1.2 2 A .1

Information not available ------------ 10 1 .* 12.9 A

1 Worker coverage Includes both active and retired workers in 1959*

2 Less than 0.05 percent.

5 1 plan with 100 workers, an individual trustee; 1 plan with 500 workers,

Insurance carrier and union; 2 plans with 1,000 workers, service organization

and insurance carrier; 2 plans with 500 workers, union and corporate trustee;

1 plan with 100 workers, investment agent; and 2 plans with 200 workers, employers and insurance carrier.

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

R eceiving A pplication s. A pplications fo r benefits w ere to be submitted 

d irectly to the board in all but 19 plans. F or exam ple, one typical plan stated that:

A ll applications fo r retirem ent benefits shall be submitted to the 

board of tru stees.

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Eiaos Katissta.3

Receives applications

Number

Number Percent (thousands) Percent

All plans studied -------------------

Board ------------------------------

Board only ----------------------

Board and insurer ---------------

Board and union -----------------

Board and service organization —

Union ------------------------------

Service organization ----------------

Other ^ ----------------------------

Information not available -----------

736 100.0 3,229.8 100.0

704 95.7 3,191.9 98.8

700 95.1 3,189.4 98.7

2 .3 .2 (2 )

1 .1 1.3 (2 )

1 .1 1 .0 (2 )

8 1.1 7.9 .2

8 1.1 15.6 ,5

3 .4 .2 (2 )

13 1 .8 14.2 .4

Worker coverage Includes both active and retired workers in 1959#

Less than 0.05 percent.

* Corporate trustee in 1 plan with 50 workers; individual trustee in

1 plan with 100 workers; employers in 1 plan with 50 workers.

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

P ro ce ssin g C laim s. The board of adm inistration p ro ce sse d the claim s 

for b e n e fits'in over Sb percen t of the plans.

Plans Workers1

Processes claims Number Percent

Number

(thousands) Percent

All plans studied ------------------- 736 100.0 3,229.8 100.0

Board ------------------------------ 610 82.9 2,413.5 74.7

Board only --------------------- 570 77.4 2,165.9 67.I

Board and insurer --------------- 32 4.3 239.0 7.4

Board and union ----------------- 2 .3 4.5

Board and corporate trustee ----- 3 .4 .7 <*>

Board and employers ------------- 1 .1 1 .8

Board and service organization — 2 .3 1.6 (2)

Insurer----------------------- ?---- 20 2.7 331.9 10.3

Service organization ---------------- 34 4.6 106.9 3.3

Union----------- ------------------- 36 4.9 335.7 10.4

Corporate trustee ------------------- 7 1.0 12.0 .4

Employer --------------------------- 6 .8 6.4 .2

Other ^ ---------------------------- 5 .7 6.1 .2

Information not available — --------- 18 2.4 17.3 .5

1 Worker coverage includes both active and retired workers in 1959*

2 Less than 0.05 percent.

3 in 2 plans with 2,100 workers, the insurer and service organization; in

1 plan with 3,400 workers, the employer and union; in 1 plan with 100 workers,

an individual trustee; and in 1 plan with 500 workers, the union and insurer.

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

D eterm ining E ligibility. The board m ade the initial determ ination of the 

cla im a n ts application in over 90 percent of the plans.

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Plans Workers *

Determines eligibility Number Percent

Number

(thousands) Percent

All plans studied ----------------- 736 100.0 3,229.8 100.0

Board ---------------------------- 690 93.8 3,178.5 98.4.

Board only -------------------- 671 91.2 3 ,166.1 98.0

Board and insurer ------------- 14 1.9 9.2 .3

Board and union--- ------------ 2 .3 1.7 .1

Board and other --------------- 3 .4 1.5 (2 )

Service organization -------------- 13 1 .8 18.3 .6

Insurer ----- --------------------- 7 1 .0 3.3 .1

Union---------------------------- 6 .8 11.1 .3

Other 3 .......................... 4 .5 2.7 .1

Information not available --------- 16 2.2 16.0 .5

^ Worker coverage Includes both active and retired workers in 1959*

2 Less than 0.05 percent.

3 In 1 plan with 600 workers, corporate trustee; 1 plan with 1,4-00 workers,

employer and union; 1 plan with 500 workers, insurer and union; and 1 plan with

100 workers, an individual trustee.

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

A ppeals. Few plans lacked a specified p roced u re fo r appeal of a claim 

denial. In 95 percen t of the plans, the appeal m ust be directed to the board (or 

a com m ittee of the board). F or exam ple, one plan said:

A p erson whose application has been rejected on the m erits by 

the pension com m ittee shall have the right to have his app lication review ed by the board o f trustees and to appear person ally 

b efore them if request is m ade th erefor in w riting within 10 days 

after notification by the pension com m ittee of the rejection of 

the application.

Plans Workers 1

Appeals are directed to Number Percent

Number

(thousands) Percent

All plans studied -------------------- 736 100.0 3,229.8 100.0

Board ------------------------------- 703 95.5 3,207.2 99.3

Board o n l y------ ,---------------- 681 92.5 3,189.0 98.7

Board and employers -------------- 3 .4 1.1 (2 )

Board and insurer ---------------- 16 2.2 14.6 .5

Board and union ------------------ 1 .1 1.3 (2 )

Board and corporate trustee ------ 1 .1 .2 (2 )

Board and service organization --- 1 .1 1 .0 (2 )

Insurer ----------------------------- 8 1.1 3.9 .1

Union ------------------------------- 3 .4 1.2 (2 )

Other 3 ---------------------------- 2 .3 .4 (2 )

No provision, or information

not available ---------------------- 20 2.7 17.1 .5

* Worker coverage includes both active and retired workers in 1959.

2 Less than 0.05 percent.

* In 1 plan with 300 workers, a service organization; and 1 plan with

100 workers, an individual trustee.

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

Final D ecision on A ppeals. The final d ecision regarding any claim fo r 

benefits was m ade by the board in 95 percen t of the plans.

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Number

Plans Workers *

Finally decides appeals Number Percent (thousands) Percent

All plans studied ------------------- 736 100.0 3,229.8 100.0

Boa r d ---------------.---------------- 703 95.5 3,207.^ 99.3

Board only ----------------------- 669 90.9 3,169.9 98.1

Board and insurer ---------------- 31 * .2 35.0 1.1

Board and union — ---------------- 1 .1 1.3

Board and corporate trustee ------ 1 .1 .2 0

Board and service organization --- 1 .1 1 .0 (2 )

Insurer ----------------------------- 12 1.6 5.5 .2

Employers and union ------------------ 3 A 1.1 (2 )

Union ------------------------------- 3 A 1.2 (2 )

Other^ ------------------------------ 2 .3 .3 (2 )

Information not available ------------ 13 1 .8 1^.3

* Worker coverage Includes both active and retired workers in 1959.

2 Less than 0.05 percent.

5 In 1 plan with 200 workers, insurer and union; and in 1 plan with

100 workers, an individual trustee.

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

Once this d ecision is m ade the w orker had exhausted all m eans at his disp osal 

provided by the plans. Further recou rse is available to the w orker through the 

cou rts, o r, if covered by an insured plan, the State insurance departm ent, or in 

a few States, to a State agency charged with supervising such plans. Regarding 

the finality of the board* s d ecision , one plan said:

An applicant fo r retirem ent benefits whose application has been 

rejected by the board of tru stees, either upon determ ination of 

his application in the first instance or upon appeal fro m the r e ­

tirem ent com m ittee as aforesaid, or w hose application has been 

rejected by the retirem ent com m ittee without appeal to the board 

of trustees in the m anner hereinabove, shall have no further 

recou rse whatever.

Another read:

. . . The d ecision of the board of trustees sustaining the pension 

com m ittee in rejectin g the application or overru lin g the pension 

com m ittee and granting the application and as to all m atters 

relating to the application shall be final and binding.

* * *

A rejected applicant or one whose application is not granted or 

approved shall have no recou rse against the retirem en t fund, . . . 

the board of tru stees, the pension com m ittee, the union, the 

em ployer, or any of the o ffice r s , agents, or m em bers of any 

of them.

In only 31 of the plans, the insu rer acted in cooperation with the board to make 

this final determ ination.

Service-C rediting P rov ision s

Interm ittent, seasonal, and casual em ploym ent is ch a ra cteristic of many 

of the industries in which m ultiem ployer plans are found; hence, the plans stress 

se rv ice -cre d itin g p rovision s m ore than single em ployer plans. G enerally, to 

receiv e benefits, a w orker m ust have fa irly regular em ploym ent with one or m ore 

contributing em ployers throughout the m inim um serv ice p eriod , but only rarely is 

fu ll-tim e, year-rou n d em ploym ent required to obtain a y e a r’ s serv ice credit.

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Plan rules defining how se rv ice credits are accum ulated varied con sid ­

erably among the industries in which m ultiem ployer plans are com m on. Several 

exam ples of different types of se rv ice -cre d itin g provision s are presented below :

An em p loy ee^ serv ice cred it shall be com puted on the basis 

of the total num ber of straigh t-tim e shifts fo r which he has 

been paid . . . in each of the calendar years since the last 

calendar year (excluding years during which he was on a properly authorized leave of absence) in which he w orked le ss than 

10 straight-tim e shifts . . . In making this com putation: (a) As

to any calendar year during which an em ployee has been paid 

. . . fo r 220 or m ore straigh t-tim e shifts he shall have 1 year 

of se rv ice credit and (b) as to any calendar year during which 

an em ployee has been paid . . . fo r less than 220 straight-tim e 

shifts he shall have that proportion of 1 year of se rv ice credit 

that the num ber of straight-tim e shifts fo r which he has been 

paid . . . in that year bears to 220, com puted to the nearest 

one-tw elfth of a year . . .

Reported employment or service Credited

during a calendar year service

1,600 or more ho u r s ------------------- 1 year

1,200 to 1,600 h o u r s ------------------ 3 /4 year

800 to 1,200 h o u r s -------------------- 1/2 year

400 to 800 hours---------------------- 1 /4 year

Less than 400 h o urs------------------- None

* * *

. . . A m em ber of the plan fo r whom contributions are m ade

by a participating em ployer shall be entitled to cred it fo r one 

unit of participation in the plan fo r each m ultiple of $10 con trib ­

uted on his behalf during a fis c a l year, as above defined. If less 

than $10 is contributed during any fis c a l year, as above defined, 

no credit shall be allow ed. Nor shall credit be allow ed fo r any 

fraction al portions of $10 contributed during any fis c a l year, as 

above defined. Any fisc a l year during which one or m ore units 

of participation are earned shall be counted as a year of p a r t i ­

cipation in the plan . . .

* * *

. . . any m em ber of the union in good standing who has been 

a m em ber of the loca l . . . continuous good standing fo r at 

least 20 years im m ediately precedin g his date of application fo r 

pension benefits and has reached the age of 65 or ov e r, m ay at 

his request be retired from active serv ice and becom e eligible 

fo r retirem ent benefits . . .

* * *

To re ce iv e your retirem ent pension . . . you m ust be 65 years 

old, and . . . you m ust have w orked in the . . . industry at

least 25 consecutive years fo r an average of at least 700 hours 

per year fo r the first 20 years and at least 500 hours per year 

fo r the last 5 years . . .

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M ost se rv ice -cre d itin g p rovision s also defined the circu m stan ces under 

which se rv ice credits are perm anently lost or continuous se rv ice is broken. They 

usually provided that a m em ber who did not w ork fo r a participating em ployer 

during a specified period of tim e (frequently 1 or 2 years) would be dropped from 

the plan. If he subsequently w orked in a covered jo b , he would be regarded as 

a new m em ber without any credits fo r p rio r se rv ice . If, how ever, his p rio r 

m em bership, entitled him to a retirem ent benefit— early, norm al, or disability— 

or to a vested interest, he was usually reinstated with appropriate credits fo r his 

previous se rv ice , esp ecially if he had not received any benefit. Exceptions w ere 

often m ade if the worker*s absence from covered em ploym ent was due to illn ess, 

disability, or serv ice in the A rm ed F o rce s. Som e exam ples of provision s g o v ­

erning the loss of credited se rv ice are shown below .

. . . If you w orked less than 350 hours per year fo r any 2 years 

in a row, you w ill have lost credit fo r those years and all 

ea rlier years unless your failu re to w ork 350 hours was due to 

injury, sickness, or m ilitary serv ice . . .

* * *

. . . P articipation by an em ployee in this plan and all credited 

serv ice previou sly accum ulated shall be term inated if the em ­

ployee has earned no credited se rv ice fo r a period in accordan ce 

with the follow ing tabulation:

Credited service previously Period during which no

accumulated service credit earned

Less than 2 years* service credit--------- 1 calendar year

2 to 5 years* service credit ---------- 2 calendar years

5 to 10 years* service credit ----------- 3 calendar years

10 to 15 years* service credit------------ if calendar years

Tim e of se rv ice in the A rm ed F o rce s of the United States shall 

be excluded from the period during which no se rv ice credit 

was earned . . .

* * *

An employee* s se rv ice w ill be deem ed to have term inated upon 

the occu rren ce of the ea rlier of the follow ing two events:

(a) When the trustees are served with notice by a union of a 

legally valid term ination of em ploym ent of an em ployee 

due to failure of such em ployee to tender to the union 

p eriod ic dues and initiation fees or his share of the cost 

of negotiating and servicin g the collectiv e bargaining a g reem ent between the em ployer and union, provided that the said 

collectiv e bargaining agreem ent requ ires such paym ents.

(b) The failure by an em ployee to com plete 600 or m ore covered 

hours of em ploym ent in 2 consecutive plan y ea rs.

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If, how ever, an em ployee does not have 600 covered hours of 

em ploym ent in 2 consecutive plan year periods due to an absence caused by m ilitary serv ice with the A rm ed F o rce s of the 

United States, or a bona fide disability, he shall be allow ed an 

additional period of tim e equal to the length of the absence to 

com plete the 600 covered hours of em ploym ent.

Am endm ent of the Pension Plan

A m ultiem ployer pension plan can usually be amended at any tim e by the 

board of adm inistration, and in this resp ect, m u ltiem ployer plans are far m ore 

flexible than the typical negotiated single em ployer plan. The boa rd 's authority 

to amend a m ultiem ployer pension plan is usually con cisely stated in the form al 

pension plan docum ent, and is separate and distinct from the pow er of the parties 

to affect changes in the trust indenture or in contribution rates. G enerally, the 

changes that can be made are those affecting eligibility fo r benefits, types of 

benefits provided, amount of benefits, p roced u res, etc. H ow ever, the board 's 

right to change the amounts of benefits fo r retired w orkers is often lim ited and 

guided by other plan p rovision s. (See page 7 1 .)

Eighty percen t of the plans with nearly 85 percen t of the w ork ers specified 

that the board of trustees had the pow er to amend pension plan provision s at any 

tim e, subject, in som e ca ses, to the review and approval of the em ployers, the 

union, or plan participants.

Plans Workers 1

Provision for amendment

of the pension plans Number Percent

Number

(thousands) Percent

All plans studied ---------------------- 736 100.0 3 ,229.8 100.0

Board may amend ----------------------- 595 8o .8 2 ,715.4 84.1

Board only ------------------------ 563 76.5 2,649.3 82.0

Board with approval of plan

participants --------------------- 4 .5 8.9 .3

Board with approval of union

and employers -------------------- 24 3.3 50.8 1.6

Board with approval of union ------- 3 .if 6 A .2

Board with approval of employers --- 1 .1 .2 (2 )

Board or union and employers

may amend --------------------------- 15 2 .0 14.0 .4

Union and employers may amend ---------- 68 9.2 415.2 12.9

Other --------------------------------- 13 1.8 17.1 .5

No provision, or information

not available ----------------------- *5 6.1 68.0 2.1

1 Worker coverage Includes both active and retired workers in 1959.

2 Less than 0.05 percent.

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

Exam ples of typical clauses follow :

Board only m ay amend

This plan m ay be amended by the trustees at any tim e . .

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B oard m ay amend with approval of union and em ployers

These rules and regulations m ay be added to, am ended, or 

m odified from tim e to tim e, without notice by the retirem ent 

board provided that such amendments or m odifications shall first 

have been approved by the executive or other governing boards 

of the union and the association s . . .

B oard m ay amend with approval of participants

The provision s of the plan m ay be m odified or amended by the 

board by vote of a regular or sp ecial m eeting of the board, 

subject to referendum o f the m em bership of the plan • . .

On the other hand, 9 percen t of the plans could be amended only by joint 

action of the em ployer and the union—custom arily at the expiration of the collectiv e 

bargaining agreem ent. The benefits in many of these plans w ere origin ally n egotiated by the parties at the bargaining table rather than, as in m ost plans, by the 

joint board appointed by them. In these plans, the board usually acted solely on 

adm inistrative m atters. These plans typically said:

This plan is established pursuant to a collectiv e bargaining a g re e - 

ment^between the em ployers and the union and m ay be amended 

/o n ly / by collectiv e bargaining agreem ents.

One o f the im portant prerogatives of boards of adm inistration is to adjust 

the benefits paid to w orkers already retired.

. . . The em ployee shall be paid a retirem ent benefit of $100 p er 

month . . . provided sufficient funds are available fo r paym ents 

as aforesaid, but if sufficient funds are not available, the monthly 

benefit m ay be determ ined to be less than $100, as hereinafter 

provided in this agreem ent.

Only 2 out of 7 plans explicitly withheld this right from the board and allow ed for 

no reduction in benefits. In m ost of the rem aining plans, som e d iscretion was 

given to the boards, im plicitly or explicitly.

Plans Workers1

Restrictions on reduction

of benefits for

retired workers Number Percent

Number

(thousands) Percent

All plans studied ------------------- 736 100.0 3 ,229.8 100.0

No restriction on reduction --------- 355 48.2 1 ,873.6 58.0

No reduction ----------------------- 28.4 578.5 17.9

Insured ------------------------ 116 15.8 329.6 10.2

Self-insured -------------------- 93 12.6 248.9 7.7

No reduction if funds available ----- 96 13.0 343.2 10.6

No reduction unless fund depleted --- 1* 1.9 26.8 .8

Other ^ --------------------------- - 30 4.1 360.7 11.2

No provision, or information

not available --------------------- 32 4.3 47.1 1.5

Worker coverage includes both active and retired workers in 1959*

^ 9 plans with 336,000 workers were self-insured before retirement, but a

temporary annuity was purchased annually after retirement.

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

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The 116 w holly insured plans, which cov ered 10 percen t of the w ork ers, 

could not reduce benefits fo r w orkers already retired , owing to the p rio r pu rchase of a life annuity fo r each pen sion er; i. e. , the benefit paid to the retired 

w ork er was the obligation of the in su rer, not the fund. A clause from one group 

annuity contract read:

. . . This contract m ay also be am ended in any resp ect, re tro ­

actively o r oth erw ise, at any tim e or tim es by w ritten agreem ent 

betw een the contract holders /Joint b oard 7 and . . . /th e ins u r e r /. H ow ever, no such amendm ent shall adversely affect 

any rights with resp ect to an annuity purchased b efore the e ffe ctive date of the amendm ent, unless the consent of any participant 

in in terest is obtained . . .

An additional 9 plans, coverin g 336, 000 w ork ers, p rim a rily in the apparel industry, purchased insured annuities of 1 y e a r 's duration fo r each pensioner. The 

continuance o f these "annuities" depended upon the annual d ecision of the board 

of each fund, which w as, presum ably, influenced ch iefly by the availability of 

funds. In contrast with w holly insured plans, the pensioners did not have the 

secu rity of an insurance com pany's obligation to fu lfill a lifetim e annuity contract.

About 30 percen t of the plans (including the 116 insured plans), covering 

about 18 percen t of the w ork ers prohibited the reduction of retired w o rk e rs' 

benefits through am endm ents to the plan. Exam ples of clauses in self-in su red 

plans are:

The board of trustees m ay amend or m odify this plan at any 

tim e in accordan ce with the agreem ent and declaration o f trust. 

H ow ever, benefits payable to person s retired hereunder, p rio r 

to am endm ents, shall not in any event be reduced.

* * *

. . . In determ ining the amount of pension to be paid, it is 

and shall continue to be the p olicy of the join t com m ittee to 

make such paym ents on an actuarially sound b a sis, as the sam e 

m ay be determ ined by the joint com m ittee upon the advice of 

its actuary, pension consultants and legal counsel; keeping a 

re se rv e at all tim es sufficient to m eet com m itm ents to m em ­

b e rs of the union who have retired and to m eet paym ents due 

in future years to those m em bers of the union who m ay retire 

subsequently. In no event, how ever, shall the amount of pension 

payable to m em bers of the union who have retired be redu ced. . .

Fourteen plans covering 27, 000 w ork ers prohibited reductions unless required by 

the condition of the pension fund itself, as in the follow ing clause:

No amendm ent shall be valid which would reduce the re tire ­

m ent benefit of any retired em ployee, unless actuarial soundness of the plan would be jeop ardized and a com petent actuary 

so ce rtifie s.

Another eighth of the se lf-in su red plans covering a tenth of the w ork ers 

prohibited reducing benefits fo r retired w orkers as long as funds w ere available. 

A clause illustrating this approach is:

The trustees m ay amend o r m odify this pension plan at any tim e 

in accordan ce with the trust agreem ents, except that no am endm ent or m odification m ay reduce any benefits payable to a p e r ­

son who retired hereunder p rio r to amendment or m odification, 

so long as funds are available fo r paym ent of such benefits, 

nor m ay any amendm ent or m odification revert any of the assets 

of the pension fund to any em ployer . . .

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In self-in su red funds, how ever, regardless of the plan p rov ision s, in 

case of dim inution of revenue (contributions and earnings investm ents) and assets, 

som e point m ay be reached w here an adjustm ent m ust be m ade in o rd er for the 

plan to fu lfill its stated purpose. If no adjustm ent is m ade in the retired w o r k e rs 1 

benefits, the entire burden falls on the w ork ers currently em ployed. F or that 

reason, among oth ers, both of the coal m ining funds have reduced the benefits 

for retired w ork ers and the prom ised benefits of future re tire e s.

It m ust be em phasized that this study deals with plan p rov ision s, not 

p ra ctice. The reduction of benefits fo r retired w ork ers cov ered by m u ltiem ployer 

plans has rarely o ccu rred . On the con trary, the generally favorable state o f the 

econom y since these plans w ere established, com bined with conservative funding 

p ra ctices and the renegotiation of em ployer contributions, have been conducive to 

the building up of substantial pension reserv es in many plans.

R estriction s on R eem ploym ent A fter R etirem ent

E xcept fo r keeping trade secrets and sca rce skills from their com petito rs, individual em ployers usually have little d esire o r in terest in com pelling 

the withdrawal of pen sion ers from all active em ploym ent. Single em ployer pension plans, th erefore, are either silent on w orking fo r other em ployers after 

retirem ent or bar only "activity detrim ental to the in terest of the com pany. " 

On the other hand, the in terest of unions and groups of em ployers in controlling 

the labor m arket is reflected by the provision s found in m ost m ultiem ployer plans 

restrictin g reem ploym ent after retirem ent. In this regard, the group or a s s o ­

ciation of em ployers involved in the pension plan acts as a single em ployer under 

an individual pension plan, with a fa irly obvious rule: The w ork er cannot both

retire and continue his em ploym ent with the com pany. In general, restrictiv e 

provision s are clea rly directed towards deterring retired w ork ers from seeking 

em ploym ent in d irect com petition with other union m em b ers, or from em ploym ent with com peting nonunion em ployers, or from entering into business 

for them selves.

R estricted Em ploym ent. R estriction s on reem ploym ent after retirem ent 

in m ulti em ployer plans contain two essential elem ents: (1) The definition of r e ­

tirem ent and (2) the penalty to be a ssessed in case of violation of the retirem ent 

rule. In addition, many plans require notification of reem ploym ent, with additional 

penalties fo r noncom pliance.

The definitions of retirem ent can be cla ssifie d in term s of com plete or 

partial withdrawal from em ploym ent, i. e. , restriction s on the perform an ce 

of w ork—

(1) with any contributing em ployer,

(2) under the ju risd iction of the union,

(3) in the industry or craft, or

(4) in any em ploym ent.

Within these cla ssifica tion s the amount of em ploym ent perm itted, if any, m ay be 

expressed in term s of hours or earnings. Clauses illustrating each of these 

general restriction s are listed below :

R estriction on reem ploym ent with any contributing em ployer

R etirem ent benefits shall be suspended during any p eriod in

which the eligible em ployee returns to active se rv ice fo r a

cov ered em ployer.

* * *

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If any pensioner receivin g benefits resum es em ploym ent (except 

casual em ploym ent) with any contributing em ployer, he ceases 

to be a pensioner and his benefits are suspended after the first 

day of the month in which such resum ption of em ploym ent o ccu rs. 

Casual em ploym ent is that which is at a rate not exceeding two 

shifts w orked in any payroll week.

If a retired em ployee is reem ployed by one of the em p loyers, 

the retirem ent benefit paym ents to him shall be discontinued . . . 

provided, how ever, that a retired em ployee who is retired . . . 

shall not have his retirem ent benefit paym ents discontinued if 

he accepts em ploym ent when and if offered by the em ployers 

on a casual b a sis. Casual em ploym ent as used h erein is d efined as em ploym ent by any or all of the em ployers w here the 

total w ages earned w ill not cause said retired em ployee to lose 

any of his benefits under F ederal old-age and su rvivors insurance.

sje $ *

R estriction on reem ploym ent within the ju risd iction o f the union

In o rd er to receiv e a pension, a w orker m ust refrain from any 

w ork within the ju risd iction of the loca l union, or any other 

lo ca l of the international union.

❖ * >!<

R estriction on reem ploym ent in the industry

To be con sidered retired under this pension plan, a w ork er 

m ust refrain from any em ploym ent for wages or p rofit in 

the industry.

❖ * *

A fter retirem ent you w ill continue to receiv e retirem en t ben efits if you w ork in the industry and earn not m ore than $ 1,200 in 

a calendar year.

sje * sje

R estriction on any further em ploym ent of any kind

No p erson who has retired pursuant to the rules and regulations 

shall thereafter engage in w ork in any capacity w hatsoever in 

any industry which yields him an incom e in excess of the amount 

perm itted at any tim e by the F ederal Security A ct as monthly 

earnings fo r any retired em ployee without depriving such em ­

ployee of the benefits under that Act.

❖ *

An em ployee who retires shall cease from engaging in any em ­

ploym ent or gainful occupation.

At least 80 percen t of the plans covering alm ost 90 percen t of the w ork 

ers restricted reem ploym ent, but the definition of what constituted prohibited em 

ploym ent, as previou sly illustrated, varied w idely.

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Flans Workers 7

Benefits are suspended

when worker

All plans studied ----------------

Works in any employment ----------

Is gainfully employed --------

Earns more than a specified

amount ---------------------

Works for a contributing employer -

Is gainfully employed --------

Earns more than a specified

amount ---------------------

Works more than a specified

number of hours ------------

Works in the industry or craft ---

Is gainfully employed --------

Earns more than a specified

amount -------------- -------

Works more than a specified

number of hours ------------

Works in the industry or earns more

than a specified amount in any

employment ---------------------

Works in a job under collective

bargaining agreement with union -

Other ----------------------------

No provision, or information

not available ------------------

Number Percent

Number

(thousands) Percent

736 100.0 3,229.8 100.0

6o 8.2 512.3 15.9

n 1.5 41.5 1.3

49 6.7 470.8 14.6

158 21.5 468.4 14.5

137 18.6 397.6 12.3

7 1.0 47.8 1.5

14 1.9 23.0 .7

300 40.8 1,397.8 43.3

268 36.4 1 ,161.8 36.0

7 1.0 19.9 .6

25 3.4 216.1 6.7

46 6.2 476.6 14.8

22 3.0 42.4 1.3

2 (2) 2.7 (2 )

148 20.1 329.8 10.2

1 Worker coverage includes both active and retired workers in 1959*

2 Less than 0,05 percent.

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

O ver half of the plans which restricted reem ploym ent required withdrawal 

from em ploym ent or self-em ploym en t within the craft or industry. Some plans, 

how ever, allow ed pen sion ers to do a lim ited amount of w ork if their hours or 

earnings did not exceed sp ecified lim its.

R etirem ent was defined as withdrawal from em ploym ent with contributing 

em ployers by about a fourth of the plans. While nearly all of these required 

com plete withdrawal from em ploym ent within the scope of the plan, pensioners 

could presum ably w ork for other em ployers in the trade or industry not belonging 

to the plan.

The scope of prohibited w ork was defined som ewhat m ore broadly by 

22 plans, coverin g 42,400 w ork ers, which suspended benefits if the pensioner 

w orked at job s covered by any collectiv e bargaining unit of the entire national 

union, o r, in som e ca se s, any one of the loca l union(s) participating in the plan. 

Another 46 plans covering about 15 percen t of the w ork ers, m ainly in the g a rment trades, applied 2 retirem ent restriction s: (1) The w ork er could not becom e 

reem ployed in the industry, and (2) he could not earn in ex cess of a specified 

sum in any em ploym ent. F or exam ple, one such plan stated:

No person whose application for retirem ent has been approved 

shall thereafter engage in the industry in any capacity w hatsoever either as em ployee or em ployer, directly or in directly; 

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in any other industry which yields him an incom e in ex cess of 

the amount perm itted to be earned under the F ederal Social 

Security A ct by w ork ers receivin g old -age benefits in em ploym ent covered by the A ct. 32

Sixty plans, covering about 6 percen t of the w ork ers, required com plete, 

o r alm ost com plete, withdrawal and continued abstention from em ploym ent of any 

kind. These restriction s on em ploym ent w ere applicable in about 1 out of 7 plans 

if the w ork er earned m ore than a sp ecified amount or w orked m ore than a certain 

num ber of hours. M ost of the plans that suspended benefits if the pensioner 

worked at any em ploym ent waived the suspension if his earnings w ere below a 

certain amount; but only rarely did plans with m ore lim ited restriction s w aive 

suspension.

M axim um Earnings T ests. About three-fourths of the 100 plans with a 

m axim um earnings test used the earnings test fo r retirem ent under the Social 

Security Act. 33 F or exam ple, one plan stated that:

Such retired person shall not engage d irectly or in directly in 

any capacity in any industry which w ill yield him an incom e in 

ex cess of the amount perm itted to be earned under the F ederal 

S ocial Security Act.

The rem aining plans sp ecified monthly or annual dollar lim its. Some of these 

plans w ere probably w ritten to conform with the socia l secu rity retirem ent test, 

but w ere outm oded by the I960 and 1961 amendments to the Social Security A ct.

Illustrations of plan p rovision s sim ila r to the pre-1960 so cia l secu rity 

am endm ents are. as follow s:

A norm al pensioner m ay engage in lim ited outside em ploym ent 

which . . . m eans em ploym ent or activity except em ploym ent 

in any kind of w ork regularly perform ed by m em bers of the 

union . . . provided earnings from such outside em ploym ent 

shall not exceed $100 a month.

5jc 5jC 9jC

. . . to be con sidered retired under this pension plan, a p e r ­

son m ust refrain from any em ploym ent fo r wages or profit in 

which his earnings shall aggregate m ore than $ 1 ,2 0 0 in any 

1 calendar year . . .

G eographic L im its. A lm ost 60 percen t of the plans, covering over 

75 percen t of the w ork ers, in which reem ploym ent was restricted placed no g e o ­

graphic lim it on the restriction . One typical plan stated, fo r exam ple, that:

There shall be no lim it to the geographic area covered .

32 This clause becam e ambiguous when the A ct was amended in 1954 to 

perm it earnings in any amount, the reduction of old -a g e benefits depending on 

both the amount of earnings in each month and in each year. (See footnote 33. )

33 The Social Security A ct currently (May 1962) provides for withholding 

$ 1 of the fam ily socia l secu rity benefit for each $2 of annual earnings between 

$1,2 0 0 and $ 1 ,7 0 0 , and d o lla r -fo r -d o lla r above that amount. H ow ever, benefits 

are not withheld for any month that earnings are below $100 or earned after 

age 72.

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Plans Workers 1

Geographic limits of

reemployment after Number

retirement Number Percent (thousands) Percent

All plans with restrictions --------- 588 100.0 2 ,900.0 100.0

Unlimited geographic application ---- 336 57.1 2 ,266.6 78.2

Limited geographic application ------ 252 42.9 633.4 21.8

^ Worker coverage includes both active and retired workers in 1959*

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

The rem aining plans, either explicitly or im plicitly, lim ited the restriction 

to the geographic area covered by the plan, i. e., State, county, city, or m etrop olitan area. E xcept fo r a few nationwide plans, plans defining retirem ent as withdrawal from em ploym ent with contributing em ployers im plicitly set geographic 

lim its. E nforcem ent of w ork restriction s outside the im m ediate area of the plan 

is, of cou rse, difficult; apart from voluntary d isclosu re by the individual pen sion er, 

it usually requ ires the m aintenance of central re co rd s— a task which few , if any, 

national and international unions are able and w illing to p erform .

P en alties. O ver 3 out of 5 plans restrictin g em ploym ent rem oved the 

w ork er from the pension rolls during the p eriod of reem ploym ent. T ypical of 

such clauses is one reading:

If a pensioner b ecom es an em ployee as above defined, his pension shall term inate as of the first day of the month in which 

he becom es such em ployee, and he shall again becom e a m em ­

b er of the plan. Upon subsequent retirem ent under the plan, 

he shall again be entitled to receiv e a pension.

Som e of these plans rem oved offending pensioners from the roles for a m inim um 

length of time— usually fo r 6 months or a year.

Plans Workers1

Length of suspension

for engaging in

restricted employment Number Percent

Number

(thousands) Percent

All plans with employment restrictions — 588 100.0 2 ,900.0 100.0

Period of reemployment ------------------ 365 62.1 1,866.1 64.3

Without minimum suspension period --- 321 54.6 1 ,436.9 ^9.5

With minimum suspension period ------ 44 7.5 429.2 14.8

6 months* minimum---------------- 24 4.1 111.6 3.8

1 year minimum------------------ 20 3.4 317.6 11.0

Suspension period in addition to

reemployment period ------------------- 187 31.8 882.5 30.4

Discretion of board ----------------- 36 6.1 147.6 5.1

1 month ---------------------------- 9 1.5 28.8 1.0

3 months --------------------------- 30 5.1 430.3 14.8

6 months --------------------------- 72 12.2 219.6 7.6

12 months -------------------------- 11 1.9 29.3 1.0

First time, 6 months; second time,

l i f e............................. 9 1.5 5 .6 .2

First time, 6 months; second time,

6 months; third time, life -------- 3 .5 2.1 .1

Other specified periods ------------- 17 2.9 19.1 .7

L i f e................................... 19 3.2 44.7 1.5

Other penalties ------------------------ 17 2.9 106.7 3.7

* Worker coverage includes both active and retired workers in 1959•

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

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The rem aining plans a sse sse d an additional penalty. M ost of these plans 

suspended benefits fo r an additional sp ecified period— usually fo r 3 or 6 m onths. 

The penalty was left to the discretion of the board by 36 plans, covering 5 p e r ­

cent of the w ork ers. The m axim um penalty— the perm anent lo ss of all rights to 

pension benefits— was autom atically im posed by only 19 plans. The follow ing 

clauses illustrate these types of p rov ision s:

The greater of tim e or reem ploym ent o r fixed p eriod

. . . pension paym ents shall cease fo r so long as he shall con ­

tinue to be em ployed in the industry or fo r 1 year, w hichever 

p eriod is greater. T hereafter his right to pension paym ents 

shall recom m en ce.

* * *

S pecified duration

If a retired m em ber . . . reenters industry and accepts em ­

ploym ent . . . with any em ployer, pension paym ents shall

im m ediately cease and m ay be resum ed only by reapplication to 

the joint com m ittee not less than 6 months after he has te r ­

m inated em ploym ent.

D iscretion of board

If a pensioner w orks in violation of this section, he m ay be 

disqualified, at the sole d iscretion of the tru stees, for receivin g 

or being entitled to any pension benefits from the pension plan.

Sje ❖

S pecified additional suspension period

If a pensioner . . . enters such em ploym ent or activity, pension 

benefits shall not be payable for the months of such activity 

plus 6 additional m onths.

A pensioner who b ecom es reem ployed in the industry shall forfeit 

all right to benefit paym ents due on or after the first day of 

such em ploym ent. If the em ployee again retires and reapplies 

for retirem en t benefit, and is otherw ise qualified, subsequent 

benefit paym ents w ill begin on the first day of the calendar 

month which is m ore than 90 days after his subsequent r e tire ­

ment date.

3flc * 5je

L oss of all rights to a pension

In the event that such retired m em ber of the union reenters the 

industry and accepts em ploym ent as a m em ber of the union with 

any em ployer his pension paym ents shall im m ediately cease and 

he shall not thereafter be covered by any of the provision s of 

the plan.

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N otification. To facilitate policin g the reentry of w ork ers into prohibited 

em ploym ent, about 40 percen t of the plans with retirem ent restriction s also r e ­

quired notification of reem ploym ent. Som e plans a sse sse d penalties (in addition 

to those just discu ssed) in case of nonnotification.

The m ajority of the plans required that the w ork er notify the adm inistrator within a given p eriod of tim e after em ploym ent was secu red, either within 

1 w eek, 2 w eeks, or a month. The rem aining plans required either prom pt or 

advance w ritten notification of reem ploypient by a retired w ork er.

Plans Workers 1

Period of notification Number Percent

Number

(thousands) Percent

All plans requiring notification ----.... 228 100.0 953.4 100.0

Advance written notification ------------ 25 11.0 47.0 4.9

Promptly --------------------------- ---- 72 31.6 458.8 48.1

Within a specified time of

reemployment --------------------- ---- 131 57.5 447.6 46.9

1 week ------------------------- ---- 35 15.4 87.6 9.2

2 weeks ------------------------ ---- 72 31.6 265.4 27.6

1 month ------------------------ ---- 24 10.5 96.6 10.1

Worker coverage Includes both active and retired workers in 1959*

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

One out of four plans requiring notification did not im pose an additional 

penalty for not filing a n otice, i. e. , the w ork er was respon sible only fo r the 

return of benefits receiv ed in violation. One plan read, fo r exam ple:

Any pensioner who accepts such em ploym ent within the te r r itorial ju risdiction o f the union, but fails to notify the office of 

the trust fund within 1 week, shall be required to reim bu rse the 

trust fund fo r all such pension paym ents accepted in violation 

of the pension plan.

Plans Workers1

Penalty in case of

nonnotification Number Percent

Number

(thousands) Percent

All plans requiring notification ------- 228 100.0 953.4 100.0

Reimbursement of benefits received in

violation only ---------------------- 53 25 .4 151.6 15.9

Additional suspension periods ---------- 139 61.4 689.5 72.4

Fixed penalty---------------------- 37 16.2 109.3 11.5

3 months* benefits omitted ----- 4 1 .8 26.7 2.8

6 months* benefits omitted ----- 12 5.3 37.3 3.9

12 months* benefits omitted ---- 11 4 .8 19.0 2.0

Double number of months of

reemployment ----------------- 10 4.4 26.3 2 .8

No fixed penalty ------------------- 103 45.2 580.2 60.9

Discretion of board -------- ------- 16 7.0 39.6 4 .2

Discretion of board, 6-month

maximum ------------------------- 4 1 .8 28.8 3.0

Discretion of board, 12-month

maximum ------------------------- 47 20.6 151.6 15.9

Discretion of board, 18-month

maximum ------------------------- 1 .4 1.4 .1

Discretion of board, disqualification authorized -------------- 35 15.4 358.8 37.7

Forfeiture of all future benefits ------ 26 11.4 64.2 6.7

Other penalties ----------------------- 4 1.8 48.0 5.0

Worker coverage includes both active and retired workers in 1959*

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

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H ow ever, 47 plans im posed a fixed penalty by om itting a sp ecified number of m onthly benefit paym ents due the erring pen sion er, usually 6, 12, or

double the months of reem ploym ent. F orty -fiv e percen t of the plans with n otification p rovision s left the penalty to the discretion of the board, usually setting 

a m axim um of 12 months of benefits. In a third of such plans, the board did 

have d iscretion ary pow er to suspend benefits perm anently— a penalty autom atically 

invoked in 26 other plans. Som e exam ples of notification clauses cla ssified by 

the penalties fo r failure to give tim ely notice are:

12-m onth disqualification p eriod

A retired em ployee shall notify the board of trustees in writing 

within 15 days follow ing his return to em ploym ent fo r wages or 

p rofit in the industry. If he fails to give such notice within 

such 15-day period , he shall be disqualified fo r an additional 

p eriod of 12 months over and above the disqualification p eriod 

of the preceding subsection.

A pensioner shall notify the trustees in w riting within 15 days 

after he returns to em ploym ent in the craft. If he fails to give 

such w ritten notice within 15 days, he m ay be disqualified for 

benefits for an additional p eriod of 12 months (over and above 

the disqualification period of the preceding subsection), as the 

tru stees determ ine in their sole discretion .

F orfeitu re of benefits received during reem ploym ent

A person who has been retired by the retirem ent fund . . . is 

required in each case to report to the retirem ent fund, in w riting, 

any em ploym ent which he obtains . . . Any person who breach es 

this regulation in any resp ect shall forthwith restore to the r e ­

tirem ent fund all benefits receiv ed for the period of reem p loym ent or lose all rights to receiv e retirem ent benefits again.

Any pensioner who accepts such em ploym ent within the ju r is ­

diction of the union, shall within 1 week of com m encem ent of 

such em ploym ent, give notice th ereof to the fund office . Any 

pensioner who . . . fails to notify the office o f the trust fund

within 1 week shall be required to reim burse the trust fund fo r 

all such pension benefits accepted in violation of the pension plan.

F orfeitu re of all future pension benefits

F ailure to notify the board within 30 days after his return to 

em ploym ent shall be con sidered a w aiver of any rights he m ay 

have to future pension benefits, and such w aiver shall be final 

and binding on the em ployee; the board shall have no discretion 

w hatsoever in the application of this provision .

F ailure of a pensioner to notify the trustees of his reem ploym ent in the trade within 3 days after his return to such em ­

ploym ent shall be deem ed a w aiver of any rights he m ay have 

to future pension benefits. This p rovision shall apply each tim e 

the pensioner returns to em ploym ent in the trade after the date 

of com m encem ent of retirem ent.

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The severity of these penalties is ju stified by many trustees as n ecessa ry 

to en force the reem ploym ent provision . They usually try to m itigate the h arsh ­

ness of the rules by giving each pensioner frequent warnings when he retires and 

while he is in retirem ent. The adm inistrators of m ost m ultiem ployer plans try 

to prevent m isunderstandings and undue hardship on the retired w orker by ex ­

plaining the rules in clear language to each retired w orker both in person and in 

w riting. Application form s are often used for this purpose, but many, such as 

the follow ing, fail to m ention the penalties fo r violating the restriction s on 

reem ploym ent:

I agree to notify the pension fund in w riting of any and all em ­

ploym ent in which I shall becom e engaged while in receipt of 

pension. It is understood that I m ay not be reengaged in the 

industry or any branch th ereof . . . while in receip t of a pension, and shall im m ediately notify the pension fund in writing 

if I do becom e so engaged.

The application used by another plan im posing penalties also failed to m ention

them by the follow ing language:

I understand that I m ust withdraw com pletely and refrain from 

any further em ploym ent within the ju risdiction of the local 

union . . in the . . . industry.

P receden ce to A ssets in Case of Term ination of the Plan

To qualify for tax exem ption under the Internal Revenue C ode,34 pension 

plans are requ ired to have a p rovision determ ining the distribution of the funds’ 

assets on a n ondiscrim inatory basis in case the plan is term inated; i. e. , the 

rights of all participants in the plan are to be fully vested upon term ination. 

During the life of m ost m ultiem ployer plans, as w ell as m ost single em ployer 

plans, econom ic conditions have been extrem ely favorable fo r the accum ulation 

of pension re se rv e s; but during a p eriod of prolonged recession , term ination 

clauses may be a valuable protection of the right of plan participants to plan 

assets. B ecause of the wide diversity and com plexity of these clauses found in 

m ultiem ployer pension plans, no attempt was m ade to analyze them in detail.

Some of the clauses found in the plans allow ed con siderable discretion 

to the board, as for exam ple:

. . . If . . . either at the expiration of the existing collectiv e

bargaining agreem ents or at som e future date, p rovision shall 

cease to be made for further contributions to the retirem ent 

fund, the board of trustees shall then make such provision s as 

it m ay deem appropriate to enable it to continue, out of m onies 

then on hand in the retirem ent fund, the paym ent of retirem ent 

benefits to w ork ers who have already been granted the sam e, 

and shall apply the rem ainder, if any, of the m onies in the r e ­

tirem ent fund to provide retirem ent benefits fo r additional w orkers in such form and amounts and on such an equitable and nondis crim in atory basis as the board of trustees shall determ ine.

In no event shall any of the m onies in the fund revert or be 

diverted to the participating em ployers or to the union or to be 

used fo r any purpose other than the paym ent of benefits to the 

w ork ers or fo r expenses in connection therewith.

34 Internal Revenue Code, 1954, section 401a.

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M ost m ultiem ployer pension plans, how ever, had detailed term ination 

p roced u res, illustrated by the follow ing exam ples. The first plan quoted below 

provided pension benefits in case of plan term ination in the follow ing ord er:

(1) R etired w ork ers, (2) w ork ers over the norm al retirem ent age of 65, (3) w ork ­

ers eligible for early retirem ent, (4) vested w ork ers, including those previou sly 

vested, and (5) all others.

(c) If the board term inates the plan in accordan ce with section 1 

of this a rticle, the realizable value of the trust fund r e ­

m aining after providing fo r the expenses of the plan and of 

the trust fund, shall be allocated by the board, to the extent 

that they shall be sufficient, for the purpose of paying pen ­

sions (based on credited se rv ice to the date of discontinuance of the plan) to em ployees in the follow ing order 

of preced en ce:

(1) To provide pensions to em ployees who shall have r e ­

tired under the plan p rio r to its discontinuance, without 

referen ce to the ord er of retirem ent; and to form er 

em ployees then receivin g a vested deferred pension 

under the plan;

(2) To provide pensions upon retirem ent under the term s 

of the plan, as if it w ere in effect, to em ployees age 

65 or over on the date of discontinuance, without r e fe r ­

ence to the ord er in which they shall have reached 

age 65;

(3) To provide pensions, calculated, based upon retirem ent 

at age 65, under the term s of the plan, as if it w ere 

in effect, to em ployees eligible for early retirem ent on 

the date of discontinuance, without referen ce to the 

order in which they shall reach age 65;

(4) To provide pensions, calculated, based upon retirem ent 

at age 65, to em ployees who as of the date of d iscon ­

tinuance had both (i) attained age 55 but not age 60 and 

(ii) com pleted at least 25 years of credited se rv ice , 

and form er em ployees then eligible for, but not yet 

receivin g, a vested deferred pension, without referen ce 

to the order in which they shall reach age 65; and

(5) To provide pensions, calculated, based upon retirem ent 

at age 65, under the term s of the plan, as if it w ere 

in effect, to all em ployees not included in (1), (2), (3), 

or (4), without referen ce to the ord er in which they 

shall reach age 65.

(d) If the fund is insufficient to provide in full for the pensions 

under any of the paragraphs in subsection (c) above after 

p rovision for all pensions under previous paragraphs, each 

pension under such paragraph as to which the funds are 

insufficient shall be reduced pro rata. P rov ision m ay be 

made by the board for the payment of pensions under this 

article subsequent to the term ination of the plan through 

(i) continuance of the trust fund, (ii) purchase of insurance 

com pany annuity contracts, (iii) disbursem ents in cash of 

the actuarial equivalent of such pensions, or (iv) any co m ­

bination of these. Under no circu m stan ces shall any portion 

of the trust fund be payable to or for the benefit of any 

participating com pany, the union, or any su cce ss o r co m ­

pany or union.

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The follow ing exam ple is sim ila r to the previous one except that benefits 

fo r disability retirem ent are included, and benefits fo r early retirem ent and 

vesting are excluded:

A rticle X— Term ination of the Plan

1. F or the purpose of this a rticle, the plan shall be con sidered 

to be term inated if discontinued by a m ajority of the m em ­

b er em ployers with the consent of the union. In the event 

of such term ination the assets then rem aining in the trust 

fund, after providing fo r the expenses of the plan, shall be 

allocated, to the extent that they shall be sufficient, for the 

purpose of paying retirem ent and disability benefits (based 

on credited se rv ice to the date of discontinuance of the plan) 

to retired and present m em ber em ployees in the follow ing 

ord er of preced en ce:

(a) To provide retirem ent benefits to em ployees who shall 

have retired under the plan p rio r to its discontinuance, 

without referen ce to the order of retirem ent;

(b) To provide norm al retirem ent benefits upon retirem ent 

to em ployees aged 65 or over on the date of d iscon ­

tinuance, without referen ce to the ord er in which they 

shall have reached the age of 65;

(c) To provide disability benefits for all m em ber em ployees then currently receiving such benefits without r e feren ce to the ord er in which they shall have becom e 

eligible for such benefits;

(d) To provide retirem ent ben efits, with all rem aining 

funds, upon norm al retirem ent to all rem aining m em ­

b er em ployees on the date of discontinuance, without 

referen ce to the ord er in which they shall reach their 

norm al retirem ent age; and

(e) In the event the assets of the trust fund are insufficient 

to provide in full fo r the retirem ent and disability 

benefits in the above ord er of p reced en ce, each benefit 

payable to the m em ber em ployees in the class in which 

there is a deficien cy shall be reduced p ro rata; subject 

to the foregoing provision s as to p ro rata reduction, 

all benefits shall be payable in full in the ord er of their 

p reced en ce to the exclusion of all cla sses with low er 

priority.

2. Such allocation shall be accom plished through either (1) con ­

tinuance of the trust fund or a new trust fund, or (2) p u rchase of insurance annuity contracts; provided, how ever, 

that the trustees upon finding that it is not practicable or 

desirable under the circu m stan ces to do either of the fo r e ­

going with resp ect to som e or all of the groups listed above, 

m ay, with the unanimous consent of all tru stees, provide 

fo r som e allocation of a part or all of the assets of the 

trust fund other than the continuance of a trust fund or the 

purchase of insurance annuity contracts with resp ect to any 

or all such groups provided, how ever, that no change shall 

be effected in the order of p reced en ce and basis fo r a llo ca ­

tion above established.

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In the follow ing exam ple, em ployee contributions w ere returned after 

p rov ision had been m ade for retired w ork ers.

A rticle VI. Am endm ent and Term ination

Section 2. D iscontinuance. If the plan is discontinued, the 

assets then rem aining in the pension fund (after providing the 

expenses of the plan), shall be allocated to the extent that they 

shall be sufficient, fo r the purpose of paying retirem ent benefits 

(based on creditable se rv ice to the date of discontinuance of the 

plan) to retirees in the follow ing ord er of p reced en ce:

(a) To provide their retirem ent benefits to pensioners who shall 

have retired under the plan p rio r to its discontinuance, 

without referen ce to the ord er of retirem ent;

(b) To provide the refund to em ployees of their own con tribu ­

tions to the pension fund;

(c) To provide n orm al or reduced pensions to em ployees aged 

65 or over on the date of discontinuance, without referen ce 

to the ord er in which they shall have reached norm al r e ­

tirem ent age; and

(d) To provide norm al or reduced pensions upon attainment of 

age 65 to em ployees less than 65 years of age on the date 

of discontinuance, in the ord er in which they shall attain 

age 65.

In no event shall any of the assets of the pension fund revert 

to, or be subject to, any claim s of any kind or nature by 

the em ployers.

Under the follow ing clause, the funds rem aining after p rov ision has been m ade 

fo r retired w orkers and those over age 65, are to be distributed to the rem aining 

m em bers according to pension credits they have accum ulated.

Section 9. T erm ination. The plan may be term inated by the 

board only with the consent of the union and the em ployer a s s o c iations who are then parties to the trust agreem ent, and in such 

event all of the funds of the plan, after n ecessa ry and reasonable 

expenses, shall be used for the exclusive benefit of m em bers and 

pensioners under the plan and shall be allocated in shares d etermined by the board on the basis of actuarial valuation, in the fo llowing order:

F irst, each pensioner shall be entitled to a share equal to 

the reserv e com puted to be required fo r his pension; and

Second, each m em ber who has reached his 65th birthday 

shall be entitled to a share equal to the rese rv e com puted 

to be required for his pension cred its; and

Third, each other m em ber shall be entitled to a share equal 

to the reserv e com puted to be required fo r his pension c r e d ­

its; provided that

If the funds of the plan are insufficient to provide in full 

fo r the shares under any of above paragraphs after p r o ­

vision fo r all shares under previous paragraphs, each share 

• under such paragraphs as to which the funds are insufficient 

shall be reduced pro rata.

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The board m ay require that all shares be withdrawn in cash or 

in im m ediate or d eferred annuities or other p erio d ica l paym ents 

as the board m ay determ ine.

P rotection of P ension C redits in Case of W ithdrawal of an Individual 

E m ployer. When an individual em ployer withdraws fro m a plan, his em ployees1 

relationship with the plan is also usually severed, unless they tran sfer to other 

participating em ployers, usually within the tim e p re scrib e d by the b re a k -in - 

se rv ice rule. F or exam ple, som e plans sp ecifica lly stated that:

. . . When an em ployer ceases to be a party to this agreem ent, 

no additional pension credits w ill accru e to the em ployees of 

such em ployer until they becom e em ployed by a participating em ployer . . .

* * *

. . . an em ployer is declared by the trustees to have ceased

participation in the fund because of failu re of the em ployer to 

make contributions to the pension fund, as required by the em ­

p lo y e e s collectiv e bargaining agreem ent with the D istrict Council, it shall be deem ed a term ination of participation by that 

em ployer and the follow ing shall apply:

(a) Em ploym ent by that em ployer after term ination shall not be 

credited as covered em ploym ent; and

(b) Em ploym ent by that em ployer p rio r to term ination shall still 

be credited under this plan, except if a break in em ployment as defined in A rticle III, section 5, is incurred; and

(c) There shall be no refund of contributions or rev ersion of 

assets to a term inated em ployer, d irectly or indirectly, 

or to a pension trust or annuity contract or pension plan 

of a term inated em ployer . . .

H ow ever, 45 plans with nearly 273,000 w ork ers provided som e additional p r o ­

tection to em ployees of withdrawing em ployers.

Plans Workers1

Provision if an employer

withdraws from the plan Number Percent

Number

(thousands) Percent

All plans --------------------------- 736 100.0 3 ,229.8 100.0

Plans with withdrawal provisions ----- *5 6.0 272.5 8.*

Worker may contribute ------------ 15 2.0 214.6 6.6

Fund allocated to workers -------- 28 3.8 51.7 1.6

Service credits retained — ------- 2 .2 6.2 .2

Break-in-service provision applies --- 627 85.2 2 ,867.9 88.8

Other 2 ------------------------------ 5 .6 2.9 .1

Information not available ------------ 59 8.0 86.5 2.7

1 Worker coverage Includes both active and retired workers in 1959.

2 Includes ^ plans covering 1,700 workers to which only workers contribute

and 1 plan covering 1,300 workers in the process of being terminated.

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

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86

N early tw o-thirds of these plans allocated part of their assets to the 

affected m em bers; i. e. , they treated an em ployer withdrawal as if it w ere a 

partial term ination of the plan, as the follow ing clause illu strates:

In the event any em ployer d isassociates itself from the plan 

through the nonpayment of contributions or otherw ise, the actuary 

acting on the inform ation and em ployee data furnished with the 

mutual consent and agreem ent of all em ployers and union, shall 

determ ine that portion of the fund in resp ect of the em ployees 

of the disassociating em ployer then in the p o sse ssio n of the 

trustee or insurance com pany. Said portion of the fund shall 

be allocated, subject to p rovision fo r expenses of adm inistration 

or liquidation, fo r benefit purposes in resp ect of the em ployees 

of the disassociated em ployer in the sam e m anner and ord er, 

to the extent of the su fficien cy of such assets, as p re scrib e d 

in section 3 above. In all other resp ects, this plan with the 

rem aining em ployers and unions shall continue in full fo r c e and 

effect in the sam e m anner as if no em ployer had withdrawn 

from the plan.

Another plan re fe rre d to the withdrawal of an em ployer as a "partial term ination" 

in the follow ing w ords:

P artial T erm ination. In the event of the term ination of the plan 

and trust with resp ect to any particular em ployer fo r any reason 

w hatsoever, but not with resp ect to all em ployers, an actuarial 

com putation shall be m ade as if the plan w ere term inating in its 

entirety as of the term inating employer* s com putation date so as 

to segregate from the trust fund within a reasonable tim e after 

the com putation date the assets th ereof which on the basis of 

such com putation are applicable to the em ployees em ployed by 

the term inating em ployer at the term ination date and, at the 

com putation date, are not then in covered em ploym ent in the 

industry with an em ployer with resp ect to which the plan is 

then effective. Follow ing such segregation of assets upon partial 

discontinuance of the plan and trust, as aforesaid, the amount 

of assets segregated after the com putation date shall be allocated 

by the joint com m ittee, on the basis of an actuarial valuation, 

among the persons who w ere em ployees on the term ination date 

but are not on the com putation date as provided in section 6 of 

this a rticle.

Any em ployee who was em ployed by any term inating em ployer 

shall, on becom ing an em ployee of any other em ployer h e r e ­

under between his term inating em ployerf s term ination date and 

com putation date, autom atically becom es covered hereunder 

again.

The 15 plans covering over 200,000 w ork ers, which perm itted the w orker to con ­

tribute instead of his em ployer and to continue accum ulating se rv ice cred its, are 

illustrated by the follow ing clause:

If any participating em ployer discontinues business or ceases 

fo r any reason to be a participating em ployer by ceasing to 

make paym ents to the fund in behalf of his em ployees . . . he 

shall thereupon cease to be deem ed a participating em ployer 

. . . and the em ployee fo r whom paym ents to the plan by such 

em ployer have ceased, shall be deem ed to have been laid off 

by such em ployer and such em ployee shall have the priv ileg e of 

preventing cancellation of his or her qualifications and credited 

se rv ice by . . . paying to the pension fund, each week, such

amount as such em ployer would be required to pay in his or 

her behalf . . .

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Chapter VI. Financial Management

The large num ber and rapid turnover of em ployers and w ork ers in m ost 

industries with m ultiem ployer pension plans require plan adm inistrators to devote 

m uch tim e and effort to prom pt payment and collection of em ployer contributions. 

Like other funds, m ultiem ployer plans also have investm ent problem s. These 

funds, as a whole, presen tly constitute only a sm all fraction of total private 

pension assets, which w ere estim ated to total $50 billion at the end of I960. 35 

H ow ever, since m ultiem ployer plans on the whole are relatively recent their 

assets can be expected to grow rapidly. This w ill probably spur interest in 

identifying the parties in charge of investing these funds and in the safeguards 

of the funds, esp ecially those contained in trust agreem ents.

The inform ation required by the W elfare and P ension Plans D isclosu re 

A ct identifies the parties handling the financial reins in m ultiem ployer pension 

plans. The analysis of these form s 36 shows that, with only a few exceptions, 

the board perform ed and had respon sibility for financial adm inistration, except 

that, as previou sly noted (chapter II), it often delegated the investm ent of funds 

and paying of benefits to an insurer or corporate trustee.

V arious devices and system s have been devised to con trol and protect 

the m oneys due the central fund for the benefit of cov ered w ork ers. The m ost 

im portant of these are the clauses found in many trust agreem ents which give 

the board or its representative pow er to co lle ct contributions, inspect em ployer 

re co rd s, and com pel payment of contributions. The authority to select the organ ization through which benefits are to be provided, also, was usually reserved 

fo r the board.

This chapter identifies the parties perform in g each of the m ore sig n ificant financial functions in m ulti em ployer pension plans under collectiv e b a r ­

gaining. These functions include the authorization o f benefits and expenses, the 

payment of benefits, the selection of insurance c a r r ie r or corporate trustee, 

and the determ ination of investm ent p olicy. In addition, certain clauses in plan 

docum ents designed to en force collection and protection of m oneys due the f u n d - 

inspection of em ployer re co rd s, collection of contributions, selection of funding 

m edium , and bonding of em ployees and board m em bers— are exam ined. A ll data 

relate, as in the previous three chapters, to the 736 form ulated plans.

35 U .S. Securities and Exchange C om m ission, C orporate P ension Funds. 

I960. Statistical Series R elease No. 1750, May 3, 1961. (See table 6 .)

36 The entries record ed on the form D -l, particu larly the item identifying 

the party with pow er to determ ine investm ent policy, w ere edited by the Bureau 

for purposes of this study to rem ove in consisten cies and to com plete the data. 

In all insured plans, the investm ent decision s w ere con sidered as being m ade 

by the in su rer, and in corporate trusteed plans by the board and corporate 

trustee. F or exam ple, som e of the insured plans indicated that the board, or 

the board and insu rer determ ined investm ent p olicy, presum ably because the 

board origin ally selected the insurer and could change to another insu rer or to 

self-in su ran ce; these w ere edited to read "insurance com pany"— the response 

given by m ost insured plans.

87

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Selection of M edium of Funding

The significance of the organization through which benefits are provided 

(the m edium of funding) has already been dem onstrated. (See pages 71 and 72. ) 

In over 75 percen t of the plans, with 70 percen t of the w ork ers, the board was 

given the sole authority to decide whether to use an insurance com pany, a c o r p o ­

rate trustee, or its own organization. The follow ing clause is typical:

The trustees shall without lim itation have the pow er and duty 

to: . . . enter into appropriate contracts with insurance c o m ­

panies . . . enter into agreem ents, con tracts, and other in ­

strum ents for the deposit of funds with banks, trust com panies, 

or other institutions which accept and hold m oneys on deposit 

and authorize such dep ositories to act as custodian of the pen ­

sion fund, whether in cash or secu rities or other property and 

to authorize such dep ositories to convert, invest, and reinvest 

the funds in such type of secu rities as the trustees d e te rm ine . . . enter into and execute an agreem ent with one or

m ore banks or trust com panies whose principal o ffice s are lo ­

cated . . . to provide fo r the investm ent and reinvestm ent of the 

trust funds in the discretion of such banks or trust com panies.

Plans Workers1

Responsibility for selecting

medium of funding Number Percent

Number

(thousands) Percent

All plans studied ------------- 736 100.0 3 ,229.8 100.0

Board ------------------------- 569 77.3 2 ,258.5 69.9

Employers and union ----------- --- 131 17.8 926.4 28.7

Union ------------------------- --- 1 .1 (2 ) (’ >

Employers --------------------- .3 1.1 (?)

Other........................ . .1 .4 (3)

No provision, or information

not available --------------- --- 32 4.3 43.4 1.3

1 Worker coverage includes both active and retired workers in 1959 .

* Fewer than 50 workers.

3 Less than 0.05 percent.

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

In alm ost 1 out of 5 plans, the pension plan or trust agreem ent specified 

the funding m edium to be used, i. e. , the union and em ployers m ade the decision 

in drafting the agreem ent. Exam ples of such directives to the board follow :

The trustees are hereby em pow ered, authorized, and directed . . . 

to enter into a group annuity contract with a reputable insur-% 

ance com pany.

* * *

The board shall select a bank to be trustee of the fund and 

shall enter into a trust agreem ent with such bank.

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Selection of C arrier or C orporate T ru stee. R egardless of how the funding m edium was to be selected, the board had the sole respon sibility and pow er to 

select the insurance c a rrie r or corporate trustee in 90 percen t of the plans appointing either one or both.

Responsibility for selecting

insurance carrier and/or

corporate trustee

Workers1

Number

Number Percent (thousands) Percent

All plans with carrier and/or

corporate trustee --------

Board ----------------------

Board only -------------

Board and employers -----

Board and union --------

Employers and union --------

Employers ------------------

Union ----------------------

Information not available ---

308 100.0 1,148.2 100.0

28l 91.2 1,128.4 98.3

279 90.6 1 ,127.0 98.2

1 .3 1.1 .1

1 .3 .3 (2 )

10 3.2 5.6 .5

8 2.6 5.5 .5

1 .3 5.3 .5

8 2 .6 3.4 .3

1 Worker coverage includes both active and retired workers in 1959.

2 Less than 0.05 percent.

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

R eceipt of Contributions

The board of adm inistration d irectly received em ployer and w orker con ­

tributions (if any) in 7 out of 8 plans.

Plans Workers1

Party receiving

contributions

All plans studied -------------

Board -------------------------

Corporate trustee -------------

Union -------------------------

Employers ---------------------

Service organization ----------

Information not available -----

1 Worker coverage includes

NOTE: Because of rounding,

Number Percent

Number

(thousands) Percent

736 100.0 3,229.8 100.0

635 86.3 3,048.4- 94.4

55 7.5 123.7 '3.8

5 .7 1.7 .1

3 .4 .1

.4

1.2

both active and retired workers in 1959.

sums of individual items may not equal totals.

2

36

.3

*.9

2.2

13.6

40.2

F or exam ple, one plan stated:

The trustees, in their nam es as trustees, shall have the pow er 

to demand, collect, and receiv e and hold em ployer paym ents.

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The m oneys went d irectly from the em ployer contributors to the corporate 

trustee in 55 plans. One plan, for exam ple, provided that:

The area em ployers shall pay all contributions to the c o r p o ­

rate trustee.

The corp orate trustee, how ever, was not ordin arily respon sible fo r the accu racy 

and collection o f such paym ents, as is illustrated by a d iscla im er clause in a 

typical corp orate trust agreem ent or "indenture:”

Notwithstanding any other provision s of this indenture the trustee 

shall be under no obligation whatever to require with resp ect 

to nor to institute any legal action whatever to en force the o b ­

ligation of any em ployer.

Under insured plans, em ployer contributions w ere norm ally fir s t directed 

to the board and then transm itted to the c a r r ie r in the form o f prem iu m s. F or 

exam ple, one insured plan stated that:

A ll em ployer contributions, after paym ent of expenses of the 

trustees in adm inistering the plan, shall be paid to the in su rance com pany under the group annuity contract.

C ollection of E m ployer C ontributions. R egardless of the basis of con ­

tributions, the em ployer was usually required to m ake paym ent within a short 

tim e (5 to 10 days) after the end of each specified payroll period in which w ork 

was p erform ed . F or exam ple, one plan stated that:

E m ployer contributions shall becom e due on the payroll date.

The failu re of an em ployer to pay the contributions required 

hereunder within 10 days after the date due shall be in v io la ­

tion of the collectiv e bargaining agreem ent.

Since the em ployer*s obligation to contribute specified sums is determ ined by 

the term s of a collectiv e bargaining agreem ent, the failu re to make such paym ent is a violation of the agreem ent. H ow ever, w here a join t board was r e ­

sponsible for the receip t of funds, m ost plans delegated to it part or all of the 

respon sibility fo r enforcem ent. The follow ing clause is typical:

The trustees m ay take whatever steps, including the institution 

and prosecu tion of, or intervention, in, any proceedin gs at law, 

in equity o r in bankruptcy, as they deem desirable to effectuate 

the collection of em ployer contributions.

A fourth of the plans sp ecifica lly gave the board pow er to a ssess penalties in case o f em ployer delinquency, usually a penalty to be determ ined at the 

d iscretion of the board, or fixed at 6 percen t interest per year.

Penalty for delinquent

payment

All plans studied ----------------

No penalty provided, or Information

not available ------------------

Penalty --------------------------

At board*s discretion--------

6 percent interest per year ---

Maximum legal interest -------

Other ------------------------

Plans Workers 1

Number Percent

Number

(thousands) Percent

736 100.0 3,229.8 100.0

537 75.7 2,379.7 73.7

179 24.3 850.0 26.3

56 7.6 221.9 6.9

59 8.0 393.7 12.1

18 2.4 14.0 .4

46 6.3 220.4 6 .8

^ Worker coverage includes both active and retired workers in 1959*

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

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The follow ing clauses illustrate such penalties:

In addition to any other rem edies to which the parties m ay be 

entitled a con tractor in default fo r 10 working days shall be 

obligated to pay in terest, at the rate of 6 percen t p e r annum, 

on the m oney due to the trustees from the date when the paym ent was due to the date when paym ent was m ade, together 

with all expenses of collection in curred by the tru stees.

* * *

In addition to any other rem edies to which the parties m ay be 

entitled, an em ployer in default fo r 10 working days m ay be 

requ ired at the d iscretion of the trustees to pay such rea son ­

able rate of interest.

# # *

The trustees m ay com pel and en force the paym ent of co n tributions in any m anner which they m ay, in their sole and uncon trolled d iscretion , deem prop er.

Inspection of E m ployer R ecord s. In tw o-thirds o f the plans covering 

alm ost fou r-fifth s of the w ork ers, the board was granted pow er to inspect em ­

ployer p ay roll record s to ascertain whether prop er paym ent was m ade. Many 

industries in which m ultiem ployer plans are found are ch aracterized by num erous 

sm all em ployers and the problem of delinquency m akes such provision s as the 

follow ing n ecessa ry :

The trustees shall have the right through an independent c e r t ified public accountant of their ch oice, to exam ine em ploym ent 

re co rd s of em ployers with resp ect to whose em ployees co n tributions should have been m ade to the trust fund.

J5c 5je sjc

The trustees shall have the pow er to requ ire any contributing 

em ployer, and a contributing em ployer, when so required, shall 

furnish to the trustees such inform ation and reports as they 

m ay requ ire in the perform an ce of their duties under this a g re e ­

m ent and declaration of trust. The trustees or any authorized 

agent or representative of the trustees shall have the right at 

all reasonable hours during business hours to enter upon the 

p rem ises of the em ployer and to exam ine and copy such of the 

books, reco rd s, papers, and reports of said em ployer as m ay 

be n ecessa ry to perm it the trustees to determ ine whether said 

em ployers are making full payment to the trustees of the 

amounts required under this trust agreem ent and the a fo r e ­

m entioned collectiv e bargaining agreem ent.

❖ * *

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Each em ploy ei shall prom ptly furnish to the B oard of trustees 

on demand any and all record s of his em ployees concerning the 

classification s of such em ployees, their nam es, socia l secu rity 

num bers, amount of wages paid and hours w orked, and any other 

payroll record s and inform ation that the trustees m ay require 

in connection with the adm inistration of the trust fund and for 

no other purpose. Each em ployer shall also subm it in w riting 

to the board of trustees at such regular p eriod ic intervals and 

in such form as the trustees m ay establish such of the above 

data as m ay be requested by the trustees. The board of trustees 

or their authorized representatives m ay exam ine the payroll 

books and record s of each em ployer whenever such exam ination is deem ed n ecessa ry or advisable by the trustees in con ­

nection with the prop er adm inistration of the trust.

Investm ent P o licy

The board retained exclu sive control over investm ent p o licy in m ore 

than half of the plans, with alm ost 2 out of 3 w ork ers. As the follow ing tabulation shows, how ever, in nearly 1 out of 4 plans, the board shared the investm ent function with a corporate trustee. Usually the board set broad investm ent 

p olicy with the advice of the corporate trustee, but left the selection of sp ecific 

secu rities and other investm ent m edia fo the latter. Of cou rse, in the wholly

Party determining

Plans Workers 1

Number

investment policy Number Percent (thousands) Percent

All plans studied ------------------ 736 100.0 3,229.8 100.0

Board ----------------------------- --- 578 78.5 2 ,522.0 78.1

Board only --------------------- 54.5 2 ,056.1 63.7

Board and corporate trustee ----

Board, corporate trustee,

167 22.7 **■58.9 1A .2

and insurer ------------------ --- 7 1 .0 5.7 .2

Board and union ---------------- --- 3 .4 1.3 (2 )

Insurer --------------------------- 17.7 681.9 21.1

Union----------------------------- .3 .3 (2 )

Investment agent ------------------- 1.9 12.0

Other 5 ---------------------------- .4 1.0 (2 )

Information not available ---------- 9 1.2 12.6 A

1 Worker coverage includes both active and retired workers in 1959*

2 Less than 0.05 percent.

^ Employers and corporate trustee in 1 plan with 700 workers; employers and

union in 1 plan with 200 workers; and an individual trustee in 1 plan with

100 workers.

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

insured plans— 1 out of 6 plans with m ore than 1 out of 5 w ork ers— the insurer 

had com plete con trol over the investm ent of the funds once they had been d eposited as prem ium s. (See page 87 for b asic analytical assum ption. ) H ow ever, 

these data include 9 plans covering 336, 000 w ork ers, p rim a rily in the apparel 

industry, that purchased annuities of only 1 y e a r's duration, and invested the 

greater proportion of their funds in secu rities, etc., usually selected by the board.

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The b o a rd 's discretion m ay be lim ited by the trust agreem ent to certain 

types of secu rities or other investm ents. The follow ing clause is illustrative 

of such restriction s:

. . . The trustees m ay invest and reinvest such part of the

fund as in their sole judgm ent is not required for current expenditures in such investm ents as are legal fo r investm ent of 

trust funds under the laws of the State of New Y ork.

By contrast, another trust agreem ent gave the board wide latitude:

Such m oneys in the fund as the trustees in their sole discretion 

m ay determ ine are not required for current expenditures . . .

m ay be invested and reinvested in any secu rities or other p rop ­

erties, either real or person al, including part interests therein, 

regardless o f whether the sam e are now or are h ereafter authorized as legal investm ents for fid u ciaries, whether by statutory enactm ent, ju dicial decision or otherw ise which the trustees 

m ay purchase in the e x e rcise of that degree of judgm ent and 

care under the circu m stan ces then prevailing, which m en of 

prudence, d iscretion , and intelligence e x e rcise in the m anagem ent of their own affairs, not in regard to speculation but in 

regard to the perm anent disposition of their funds, considering 

the probable incom e to be derived th erefrom as w ell as the 

probable safety of their capital.

The discretion that could be e x ercised by corporate trustees is illu strated by the follow ing clau ses. Often unlim ited investm ent discretion was given

to the corporate trustee as in the follow ing clause:

The trustee shall have the follow ing pow ers and authority in 

the adm inistration of the trust fund to be ex e rcise d in its uncon trolled discretion :

To purchase or su bscribe for any secu rities or other property 

and to retain in trust such secu rities or other property; in the 

event investm ents are to be m ade in secu rities or other p ro p ­

erty of any contributing em ployer, advance notice shall be given 

to the C om m ission er of Internal Revenue of such contem plated 

investm ents. In no event shall any investm ent be m ade in s e ­

cu rities or other property of the trustee.

Another exam ple of granting virtually unlim ited investm ent pow ers to the corporate

trustee is:

. . . the corporate trustee shall, from tim e to tim e, subject

to the other provision s of this agreem ent, invest and reinvest 

prin cipal and incom e of the trust and keep the sam e invested 

in such secu rities, bonds, debentures, stocks (common or p r e ­

fe rre d ), real estate, m ortgages, deeds of trust, shares of investm ent trusts, com m on trusts or other property, as the co rp o ­

rate trustee shall believe to be sound and suitable investm ents 

for the trust, regardless of whether the sam e, without this ex ­

p re ss provision , would be prop er investm ents for funds of a 

trust estate, provided, how ever, that in no event shall the p rin ­

cipal or incom e of the trust be invested in the stock s, bonds, 

notes or other secu rities or property of any com pany who shall 

have adopted the pension plan pursuant to the provision s of the 

collectiv e bargaining agreem ent as defined . . . nor shall the

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Federal Reserve Bank of St. Louis
prin cip al or incom e of the trust be invested in the stock s, bonds, 

notes or other secu rities or property of any other . . . co m ­

pany, whether or not it shall have adopted the . . . plan . . .

Another corporate trust agreem ent required the trustee to apportion the in vestm ent of funds between com m on stocks and other investm ents. It read, in part:

Invest and reinvest such part of the trust estate as the trustees 

shall determ ine is not required for current expenditures, in 

such secu rities (of any classification ) as it m ay select; provided, 

h ow ever, that no investm ent shall be made in any com m on stock 

which would cause the total investm ents in the trust estate in 

com m on stocks (at then current values) to exceed 35 percen t 

of the value of all of the assets (at then current values) of the 

trust estate, but this p rov iso shall not require the sale of any 

com m on stock previou sly purchased if such purchase was not 

in contravention h ereof; and provided further, that no in vestm ent shall be in secu rities of any corporation which is, at the 

tim e such investm ent is m ade, an em ployer which is a party 

to said declaration of trust.

The corp orate trustee was quite lim ited under the follow ing agreem ent:

The investm ent pow ers of any corporate trustee acting pursuant 

to the provision s h ereof or otherw ise with referen ce to this 

pension plan shall be lim ited to those investm ents which are 

authorized as reserv e investm ents for life insurance com panies 

organized under the laws of the State of New York or for fiducia rie s as m ay be perm itted by the provision s of law of the 

State of New York.

Authorization of Expenses and Benefits

The board authorized the paym ent of both expenses and benefits in over 

90 p ercen t of the plans with 90 percen t of the w ork ers. Benefit paym ents w ere 

authorized by the in su rer in on e-sixth of the insured plans and jointly by the insu rer and the board in one-tw elfth of such plans. The board alone, how ever, 

authorized the paym ent of expenses in these plans.

______ Authorizes

Workers 1 ~

Plans (thousands) Payments Expenses

736 3,229.8

679 2 ,866.2 Board Board

11 5.8 Board and insurer Board

17 330.4 Insurer Board

1 .3 Insurer Board and insurer

5 2.5 Insurer Not available

2 1.3 Board Board and insurer

2 1.6 Board Corporate trustee and board

2 5.8 Union Board

1 .1 Board Other 2

5 3.0 Other 5 Board

2 .2 Other ^ Other ^

9 12.6 Not available Not available

x Worker coverage includes both active and retired workers in 1959*

2 A service organization and board, 1 plan covering 100 workers.

^ A service organization and board, 1 plan covering 1,000 workers;

a service organization, 1 plan covering 300 workers; employers, 1 plan

covering 100 workers; a corporate trustee and board, 1 plan covering

200 workers; employers and union, 1 plan covering 1,400 workers.

” An individual trustee, 1 plan covering 100 workers; union, 1 plan

covering 100 workers.

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95

P arty Making P aym ents. The m edium of funding largely, though not entirely , determ ined the party paying benefits. In nearly all the insured plans, 

fo r exam ple, the insurance com pany m ade paym ents directly to the ben eficiary. 

But in only th ree-fifth s of the corporate trusteed plans was paym ent m ade by the 

trustee. Another party— usually the boa rd — m ade paym ent in the rem aining co rp o ­

rate trusteed plans. As shown in the follow ing tabulation, the board itse lf paid 

benefits in 3 out of 5 plans.

Party making payments

Plans Workers *

Number

of benefits Number Percent (thousands) Percent

All plans studied ------------------ 73 6 100.0 3,229.8 100.0

Board ----------------------------- --- 453 61.5 2 .267.2 70.2

Board only --------------------- --- 447 60.7 2,259.3 70.0

Board and insurer -------------- --- If •5 5.9 .2

Board and corporate trustee ----

Board, corporate trustee,

--- 1 .1 .2 (2 )

and insurer ------------------ --- 1 .1 1 .8 .1

Corporate trustee ------------------ --- 109 1^.8 187.5 5.8

Insurer --------------------------- --- 129 17.5 677.3 21.0

Service organization --------------- --- 22 3.0 69.4 2.1

Investment agent ------------------- 6 .8 8.7 .3

Other5 --------------------------- 8 1.1 7.1 .2

Information not available ---------- 9 1.2 12.6 A

^ Worker coverage includes both active and retired workers in 195$.

2 Less than 0.05 percent.

^ The employers in 1 plan with 800 workers; the union in 2 plans with

200 workers; the employers and union in 1 plan with 3,^00 workers; the insurer

and corporate trustee in 3 plans with 2,600 workers; and the individual trustee

in 1 plan with 100 workers.

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

Bonding Requirem ents

The Labor Management Reporting and D isclosu re A ct, which requ ires, 

among other things, the bonding of any union representative, including o ffice rs 

and em ployees who handle the m oneys of any union or trust funds37 was passed 

several months after nearly all of the docum ents analyzed in this report w ere 

subm itted to the Departm ent of L abor. N evertheless, the trust agreem ents and 

other docum ents filed by alm ost half of the plans studied required the bonding 

of its m em bers. Many of the other plans presum ably bonded board m em bers 

and em ployees handling funds as a m atter of prudence, although not sp ecifica lly 

required to do so by plan docum ents.

About 1 out of 6 plans sp ecified that all m em bers m ust be bonded, 

while nearly 1 out of 3 required that all m em bers handling funds m ust be bonded.

37 Section 502(a), Labor Management Reporting and D isclosu re A ct of 1959.

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Federal Reserve Bank of St. Louis
Plans Workers1

Provision for bonding

of board members Number Percent

Number

(thousands) Percent

All plans studied ----------------- ---- 73 6 100.0 3,229.8 100.0

No provision, or information

not available ------------------- ---- 320 43.4 1 ,670.^ 51.7

All must be bonded --------------------- 125 17.0 5* 6.8 16.9

All those handling funds --------------- 230 31.3 9*9.9 29.4

Discretion of board -------------------- 35 4.8 *7.3 1.5

Specified member of board -------------- 3 .4 2.3 .1

No bonding required -------------------- 23 3.1 13.3 .4

* Worker coverage Includes both active and retired workers In 1959*

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

The rem aining 35 plans with bonding requirem ents left the arrangem ents to the 

d iscretion of the board. Illustrative clau ses of each of these are:

A ll m em bers m ust be bonded

The trustees shall provide fo r fidelity position bonds with such 

com panies and in such amounts as they m ay determ ine . .

* * *

A ll m em bers handling funds m ust be bonded

The tru stees who are em pow ered and authorized to sign checks 

as aforesaid shall each be bonded . . .

* * *

D iscretion of board

The trustees authorized to sign checks or engaged in handling 

m oneys of the trust, m ay be bonded by duly authorized surety 

com pany, and, if so, the prem ium s on such bonds shall be paid 

by the trust.

Tw enty-three plans, on the other hand, sp ecifica lly stated that no bond was r e ­

quired for board m em bers. One of these plans stated:

No bond or other security shall be required of any m em ber of 

the board in such capacity.

In addition to bonding of board m em bers, about a third of the plans sp e cified bonding for certain em ployees of the fund, i. e. , those handling funds. (See 

the follow ing tabulation.) A lm ost another 10 percen t of the plans required that 

all em ployees be bonded, while in 30 plans (4 percent) this was left to the d is ­

cretion of the board.

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Plans Workers1

Provision for bonding

of employees Number Percent

Number

(thousands) Percent

All plans studied ----------------- 736 100.0 3,229.8 100.0

All must be bonded ---------------- 69 9.9 295.0 9-1

All those handling funds -------------- 230 31.3 1 ,170.2 36.2

Discretion of board --------------- 30 9.0 46.1 1.9

No bonding required --------------- 9 .5 2 .0 .1

No provision, or information

not available — ---------------- --- 403 59.7 1,716.6 53.2

1 Worker coverage Includes both active and retired workers in 1959*

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

Exam ples of these provision s from plan docum ents are:

E m ployees shall be bonded

The trustees shall . . . provide for fidelity bonds for em ­

ployees of the trustees.

* * *

E m ployees handling funds shall be bonded

Each em ployee em ployed by the trustees who m ay be engaged in 

handling of m oneys of the pension fund shall be bonded . . . 

by a duly authorized surety com pany.

Plans requiring that som e or all of the trustees be bonded usually also 

required that som e or all of the em ployees of the fund be bonded. F or exam ple, 

one plan said:

The trustees and the em ployees of the trust fund who handle 

cash or disbu rse cash, secu rities, or transfer property of any 

kind w hatsoever shall each be bonded, and any other trustees 

or em ployees m ay be bonded in the d iscretion of the trustees 

by a duly authorized surety com pany qualified under laws of the 

State of New Y ork in such amounts as m ay be determ ined from 

tim e to tim e by the trustees.

Only 12 plans, covering 223,000 w orkers, required the bonding of em ployees handling funds even though they had no bonding requirem ent fo r the board. 

On the other hand, 72 plans which required, or left to the d iscretion of the 

board, bonding arrangem ents fo r itse lf had no bonding requirem ent fo r em ployees.

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98

(Workers in thousands)

T a b le 1. M u l t i e m p l o y e r p e n s io n p la n s u n d e r c o l l e c t i v e b a r g a in in g

b y d a te o f e s t a b l i s h m e n t , s p r in g I 9 6 0

Date of establishment Plans Workers 1

798 3, 324. 8

2 44. 1

19 44 -------------------------------------------------- ------------------------ ---------- 4 8 .5

1 0 4 ^ _ ___ _ . 2 173. 9

1 0 4 A 5 420. 8

1047 _ __ 5 109. 9

1 0 4 f t _ _ _ _ ... ____ _ _ 16 48. 0

1 0 4 0 _ _____ 19 9 5.8

io^n 62 363. 9

1 Q R 1 . .... . _ 30 179. 8

1 0 ^ 7 ... _ _ _ _ _ ... 30 87. 5

66 207. 6

1954 ____r_________________,___________ 48 86. 9

1 _____ ____ ... _ - .. - - - - 85 564. 6

]OftA ........ 108 243. 8

1 0 * 7 - ._ _ ________ - ._ 130 310. 9

86 159. 3

I Q 5 9 38 100. 2

Information not available --------------------------------------------- 62 119. 2

1 Worker coverage includes both active and retired workers

in 1959.

NOTE: Because of rounding, sums of individual items may not

equal totals.

Table 2. Multiemployer pension plans under collective bargaining

by number of workers covered, spring I960

(Workers in

Number of workers Plans Workers 1

Pericent

covered Plans Workers

All plans __________________________________________ 798 3, 324.8 100. 0 100.0

Under 100 —-----—------------------- ------------------------------ 54 3. 3 6. 8 0. 1

100 and under 500 ------------—----------—--------------- — 230 59. 2 28. 8 1. 8

500 and under 1,000 -------------------------------------------- 154 108.8 19. 3 3. 3

1,000 and under 5,000 ---------------------------------------- 257 599.8 32. 2 18. 0

5,000 and under 10,000 --------------------------------------- 51 354. 0 6 .4 10. 6

10,000 and under 25,000 ------------------------------------ 29 407. 6 3. 6 12. 3

25, 000 and under 50, 000 ------------------------------------ 15 540. 5 1.9 16. 3

50,000 and under 100,000 --------- -------------- 2 195.0 . 3 5.9

100, 000 and over -------------------- -------------------- 6 1,056. 7 . 8 31. 8

1 Worker coverage includes both active and retired workers in 1959.

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

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T a b le 3 . M u l t i e m p l o y e r p e n s i o n p la n s u n d e r c o l l e c t i v e b a r g a in in g

b y i n d u s t r y g r o u p , s p r in g I 9 6 0

Industry Plans Workers 1

Percent

Plans Workers

All in d u stries-----------—-------------------- ------------------— 798 3, 324. 8 __ 100.0 100.0

Manufacturing____— —---------------- ----------------- 286 1. 261.0 35. 8 37.9

Food and kindred p r o d u c ts -------------------------------

Apparel and other finished textile

88 230.5 11.0 6.9

Printing, publishing, and allied

84 778.9 10. 5 2 3.4

industries --------------------------------------------------------- 55 63.8 6.9 1.9

Leather and leather products - ------- 6 24. 2 .8 .7

Metalworking — ------------------------------------------------- 28 57. 1 3. 5 1.7

Other manufacturing —------------------------------------- — 25 106. 5 3. 1 3. 2

Nonmanufacturing — -------------------------------— 499 2.041. 8 62. 5 6 1.4

M ining---------------------------------— ------------------------ ------ 4 295.4 0. 5 8.9

Contract construction---------------------------------------— 262 653.8 32. 8 19. 7

Motor transportation---------------------------------------- — 48 500. 1 6.0 15.0

Water transportation ------------------------------------------- 41 147.6 5. 1 4 .4

Wholesale and retail trade --------------------------------- 95 308.7 11.9 9. 3

Services __ __ ___ ____ __ - 28 79. 1 3. 5 2 .4

Motion pictures and recreation ------------------------ 18 55.0 2. 3 1. 7

Other nonmanufacturing ------------------------------------- 3 2. 1 . 4 . 1

Interindustry manufacturing and

nonmanufacturing ------------------------------------- 13 22.0 1. 6 0. 7

Worker coverage includes both active and retired workers in 1959.

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

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Table 4. National and international unions1 participating

in multi employer pension plans, spring I960

(Number of plans indicated in parentheses)

100.000 workers and over

Carpenters (18)

Clothing (14)

Electrical (IBEW) (32)

Garment, Ladies (48)

Mine (excluding District 50) (I) (2)

Teamsters (I) (121)

50,000 and under 100.000 workers

Bakery (I) (8)

Hod Carriers (23)

Hotel (13)

Longshoremen (21)

Meat Cutters (31)

Plumbing (63)

Retail Clerks (11)

25,000 and under 50,000 workers

Bakery, American (5)

Building Service (8)

Engineers, Operating (18)

Iron (20)

Maritime (4)

Painters (23)

Retail, Wholesale (12)

Sheet Metal (24)

Upholsterers (1)

5, 000 and under 25, 000 workers

Actors (1)

Automobile (6)

Bookbinders (6)

Brewery (9)

Bricklayers (30)

Electrical (IUE) (3)

Furniture (6)

H atters (23)

Lathers (5)

Leather goods (5)

Longshoremen and Warehousemen (I) (5)

Machinists (10)

Marine Engineers (3)

M asters, Mates (2)

5, 000 and under 25, 000— Continued

Musicians (1)

Plasterers (8)

Printing Pressm en (14)

Pulp (6)

Shoe Workers, United (1)

Stage (13)

Toy Workers (1)

Textile Workers (TWUA) (1)

Typographical (13)

1,000 and under 5,000 workers

Asbestos (17)

Boilermakers (2)

Distillery (5)

Jewelry (1)

Leather Workers (1)

Lithographers (I) (1)

Mine District 50 (I) (3)

Newspaper Guild (2)

Newspaper and Mail

Deliverers (I) (1)

Pattern Makers (5)

Photo Engravers (4)

Roofers (4)

Stereotypers (3)

Watchmen*s Ass*n. (I) (3)

Fewer than 1,000 workers

Engineers, Technical (I) (1)

Firemen and Oilers (1)

Garment, United (2)

Hosiery (l)

Machine Printers (I) (1)

Mailers (I) (2)

M arble (1)

Metal Polishers (1)

Office (2)

Radio (1)

Shoe and Boot Workers (1)

Telegraphers (1)

Textile Workers (UTWA) (1)

1 All unions are affiliated with AFL-CIO except those followed by (I). For full union

identification and addresses, see Directory of National and International Labor Unions in the

United States, 1961, BLS Bull. 1320 (1962).

Excluded from this list are 26 plans covering 110,000 workers which included members

of 2 or more unions and 12 plans covering 13,000 workers which were negotiated by local

Federal labor and industrial unions or unaffiliated local unions.

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Federal Reserve Bank of St. Louis
(Workers in thousands)

Table 5 M u ltiem p loyer pension plans under c o lle ctiv e bargaining

by region and State, spring I960

101

Region and State Plans Workers1

Percent

Plans Workers

All plans ------------------------------- 798 3. 324. 8 100.0 100.0

Interregion------------------------- - 43 1, 546.9 5.4 46. 5

New England------------------------- 58 52. 8 7. 3 1. 6

Intraregion-------------------- 5 7.7 0. 6 0. 2

Maine ----------------- „---------- 1 (1 2) . 1 (3)

Vermont - ---- 1 1.9 . 1 . 1

M assachusetts---------------- 24 28.0 3.0 . 8

Rhode Islan d------------------- 4 1. 5 . 5 (3)

Connecticut --------------------- 23 13. 7 2.9 . 4

Middle Atlantic----------------- -— 417 1,040. 1 52. 3 31. 3

Intraregion --------------------- 37 125. 3 4. 6 3. 8

New York - _ _______ 265 678. 1 33. 2 20. 4

New Jersey —------------------ 68 73.0 8. 5 2. 2

Pennsylvania ------------------ 47 163. 6 5.9 4.9

East North

Central ----------------------------- 122 220. 6 15. 3 6.6

Intraregion --------------------- 2 1. 1 0. 3 --------F T

Ohio - ------- -------- 24 21.0 3.0 0.6

Indiana --------------------------- 6 5.9 .8 . 2

Illinois --------------------------- 51 121. 6 6.4 3.7

Michigan ______________ _ 31 62.5 3.9 1.9

Wisconsin —------------------- 8 8.5 1.0 . 3

West North

Central ...... ........... „ . „---- 33 48. 3 4. 1 1. 5

Minnesota — ------------------- 9 3.9 1. 1 0. 1

Iowa —---------------------------— 1 . 2 . 1 (3)

Missouri -------------------------- 23 44. 3 2.9 1. 3

Region and State Plans Workers

South A tlantic---------------------

Intraregion —----------------

Delware -------------------------

M aryland------------------—

District of

C olum bia--------------------

V irgin ia---- -------------------

West Virginia ---------- —

North C arolina-------------

Georgia -------------------------

Florida -------------------------

36

10

2

9

38. 8 

12. 3

1.0 

11.9

3 2.0

4 5.7

2 2. 5

2 2.0

2 1.0

2 . 5

East South

C e n tr a l-------

Kentucky -.

Alabama

Mississippi

West South

C e n tra l--------

Louisiana .

Texas ------

4 3.0

4 2. 1

1 . 1

9_______ 26. 7

2 7.9

7 18.8

M ountain---------------------------- 3________ 5. 0

C o lo ra d o ---------------------- 2 0.2

N evad a-------------------------- 1 4.9

P a c ific -----------

Intraregion

Washington

California

A la s k a ----

68 340.4

2 19.8

5 2.4

59 317.5

2 .6

Plans Workers

4. 5

1. 3

. 3

1. 1

1. 2 

0. 4

(3)

. 4

. 4

. 5

. 3

. 3

. 3

. 3

. 1 

. 2 

. 1 

. 1

1. 1______ (L_2

0.5 0.1

.5 .1

• 1 (3)

1. 1_______(L_8

0. 3 0.2

.9 .6

. 1 0. 1

8.5 10.2

0.3 0.6

. 6 . 1

7.4 9.6

.3 (3)

1 Worker coverage includes both active and retired workers in 1959.

2 Fewer than 50 workers.

3 Less than 0.05 percent.

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

Table 6. Type of administrator in multiemployer pension plans

under collective bargaining, spring I960

(Workers in thousands

Percent

Type of administrator Plans Workers1

Plans Workers

AUplans _______________________________________ 798 3. 324. 8 100. 0 100. 0

Bipartite b o a r d ________________________________ 735 2, 392. 6 92. 1 72.0

Bipartite board plus 1 neutral member —------- 33 409. 3 4. 1 12. 3

Tripartite board ----- ------------------—------------------ 9 325. 2 1..1 9.8

Union appointed board -------— --------------------------- 11 189.7 1. 4 5. 7

Employer appointed board2 ---------------------------- 5 6.4 .6 . 2

Other — ------------------- ----------------------------------------- 2 . 6 . 3 0

Information not available — ----------------------- ------ 3 1.0 .4 (3)

1 Worker coverage includes both active and retired workers in 1959.

2 Although employer-administered multiemployer pension plans under collective bargaining would presumably be eliminated by method of selection of the plans for study, it

was determined during the course of analysis that the administrator (by Bureau definition)

was, in fact, an employer appointed board.

3 Less than 0. 05 percent.

N O T E : B ecau se of rounding, su m s of individual item s m a y not equal to ta ls.

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Table 7. Multiemployer pension plans under collective bargaining by industry group and medium of funding, spring I960

Medium of funding

Industry

All plans

Insured

Self-insured

Other Information

not available Self-administered Corporate trusteed

Number Workers1 Plans Workers1 Plans Workers 1 Plans Workers1 Plans Workers1 Plans Workers1

798 3. 324. 8 119 . 334. 4 441 2.097. 1 170 460. 5 BsBgj^27M_ 359. 3 41 73. 6

Manufacturing — ---------------------—-------—------- 286 1. 261.0 23 18.0 159 699.7 85 187. 5 11 339. 6 8 16. 3

Food and kindred p ro d u c ts ---------------------- -------- 88 230. 5 8 8.8 39 155. 4 36 56.4 3 8. 6 2 1.4

Apparel and other finished textile

products .. ' _ 84 778.9 3 1.9 70 428.9 3 12. 6 5 330. 1 3 5.4

Printing, publishing, and allied

industries - _ _ ________ 55 63. 8 1 . 4 21 35. 6 32 27.4 1 . 5 _ _

Leather and leather products ___________ ______ 6 24. 2 1 . 3 4 20. 6 1 3.4 - _ _ _

Metalworking — ---- - _ ----- 28 57. 1 5 2. 1 15 34. 5 6 20. 2 2 .4 - -

Other manufacturing ----------------------------------------- 25 106. 5 5 4. 5 10 24. 9 7 67. 6 - - 3 9.5

Nonmanufacturing _ - _ ----- — 499 2.041.8 91 309. 1 277 1. 386. 1 82 269. 6 16 19.7 33 57. 3

Mining . - .. . ___ _ __ _ 4 295. $ 1 0.4 3 295.0

Contract construction - _ 262 653. 8 63 52. 7 136 494. 7 36 63. 1 8 11 . 1 19 32. 2

M o t o r t r a n s p o r t a tio n 48 500. 1 9 207. 3 33 272. 3 4 19. 3 _ _ 2 1. 2

Water tr a n s p o r t a t io n ___ _ 41 147. 6 1 . 1 26 98.7 14 48. 8 - - - -

Wholesale and retail trade ------- 95 308.7 11 44.9 54 151.4 20 102. 5 4 2. 5 6 7.5

Services 28 79. 1 4 2.7 11 53. 3 7 6.0 3 5.9 3 1 1 . 2

Motion pictures and recreation____________ ___ 18 55. 0 1 . 2 13 19.6 1 30.0 _ 3 5. 3

Other nonmanufacturing - — - 3 2. 1 1 . 8 1 1. 1 - - 1 . 2 - -

Interindustry manufacturing

and nonmanufacturing ----------— -------------- 13 22.0 5 7. 3 5 11. 3 3 3.4 _ _ _ _

1 Worker coverage includes both active and retired workers in 1959.

2 9 plans covering 336,000 workers were self-insured before retirement, but a temporary annuity was purchased annually after retirement.

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

102

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T a b le 8. M in im u m age and se rv ic e requ irem en ts fo r p articipation in m u ltiem p lo y er p en sion plan s under c o lle c tiv e bargain in g, sprin g I 9 6 0 1

(Workers in thousands)

Minimum age requirements

Plans

Minimum service requirements

1 year 2 years 3 years 5 years None

Number Workers Plans Workers Plans Workers Plans Workers Plans Workers Plans Workers

All plans with age and service

participation requirements 1 2 --------------------------- 19 65.9 9 8. 5 2 1. 3 2 2 0. 5 4 52. 8

Age 22 ------------------ --------------------------------------------- 1 0. 1 <j> 0. 1 _ _ _ _ _ _

Age 25 ----------------------------------------------------------------- 3 48. 6 . 2 - - - - - - 2 48.4

Age 30 - - 1 .9 - - - - 1 0.9 - - - -

Age 35 ----------------------------------------------------------------- 3 4. 5 - - - - - - 2 0. 5 1 4.0

Age 40 — 1 . 4 - - - - - - - - 1 .4

None ---------------------------- -------------------- --------------— 10 11. 3 7 8. 1 2 1. 3 1 1.9 “ " “

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering approximately 3,229,800 active and retired workers in 1959.

2 An additional 106 plans covering 306,700 workers had a union membership requirement.

3 This plan also required union membership.

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

Table 9. Normal retirement age in multiemployer pension plans under collective bargaining by industry group, spring I960

,£W orkeri£iiir^Jhou£ands}>

Industry

All plans

Normal retirement age

Age 55 Age 60 Age.65 Age 68 and 70 Information

not available

Number Workers1 Plans Workers1 Plans Workers1 Plans Workers1 Plans Workers1 Plans Workers1

All industries —-------------------------------------------------- 736 3. 229. 8 4 13.0 20 521.0 672 2. 651. 6

29 13. 2 31 31.0

Manufacturing ____________________________ 270 1. 239.6 _ _ 7 16.6 246 1. 203. 8 6 12.7 11 6. 5

Food and kindred products 84 226. 8 _ _ 1 1. 0 82 225. 6 _ 1 0. 3

Apparel and other finished textile products 78 772.9 - - - - 70 770. 8 1 0. 2 7 1.9

Printing, publishing, and allied industries ----- 53 63.0 - - - - 47 50.4 5 12. 5 1 (3)

Leather and leather products -------------------------- 6 24. 2 - - - - 6 24. 2 - - - -

Metalwo rking ________ _________________________ 27 55.7 - - 6 15.7 19 35.8 - - 2 4. 3

Miscellaneous manufacturing -------------------------- 22 97.0 - - - - 22 97.0 - - - -

Nonmanufacturing ---------------------------- -------- 454 1,969. 1 4 13.0 13 504. 5 414 1.426.7 3 0 .5 20 24. 5

Mining -----— ------------------------------------------ ------------ 4 295. 4 _ 2 294. 6 2 0.8 _ _ _

Contract construction 232 612. 0 3 6.8 3 30. 6 213 559. 1 2 0 .3 11 15. 1

Motor transportation --------------------------— -------- 46 498.9 - - 4 175. 5 41 322. 6 - - 1 .7

Water transportation --------------------------— -------- 41 147. 6 - - - - 40 145. 6 - - 1 2.0

Wholesale and retail trade 89 295. 8 - - 3 1.9 78 287. 1 1 . 2 7 6. 7

Services --------------------------------------------------- ------- 25 67.9 - - - - 25 67.9 - - _ _

14 49. 5 1 6. 1 1 1.9 12 41. 5 - - _ _

Miscellaneous nonmanufacturing-----------------— 3 2. 1 - - - - 3 2. 1 - - - -

Interindustry manufacturing and

nonmanufacturing---------------------- ------------ 12 21.0 - - - - 12 21.0 - - - _

1 Worker coverage includes both active and retired workers in 1959.

2 Includes 2 plans covering 300 workers with a normal retirement age at 68, and 7 plans covering 12,900 workers with a normal retirement age at 70.

3 Fewer than 50 workers.

N O T E : B e c a u se of rounding, sum s o f individual item s m a y not equal to ta ls.

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T a b le 10. N o rm a l re tirem en t age in m u ltiem p loyer pension plan s under c o lle ctiv e bargaining by m ediu m of funding, spring I960

Normal retirement age

All plans

Medium of funding

Insured Self-insured Other

Number Workers 1 Plans Workers1 Plans Workers1 Plans Workers1

AUplans _______________________________________ 736 3, 229.8 116 329. 6 590 2. 539. 6 30 360. 7

Age 55 ____________________________ ______ _____ 4 13.0 1 5. 4 3 7. 6 _ _

Age 60 - . . . 20 521.0 1 1.0 18 520.0 1 0. 1

Age 65 _ __ _ _ _ _ ___ 672 2, 651.6 107 318.6 539 1,973.4 26 359. 5

Age 68 and 7 0 _____________________________ ____ 29 13. 2 _ - 8 13.0 1 . 2

Information not available ----- 31 31.0 7 4.6 22 25. 6 2 .9

Worker coverage includes both active and retired workers in 1959.

2 Includes 2 plans covering 300 workers with a normal retirement age at 68, and 7 plans covering 12,900 workers with a normal retirement at age 70.

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

Table 11. Types of benefit formulas in multiemployer pension plans under collective bargaining by industry group, spring I960

(Workers in thousands)

Industry

All plans

Flat

benefit

for

specified

service

Benefits

vary by

service

alone

Benefits

vary by

earnings

and

service

Benefits

are a

percent of

employer

contribution

Other

No

specific

formula

Information

not

available

Number

! Workers 1

Plans Workers1

Plans Workers1Plans Workers1Plans Workers 1

Plans Workers1

Plans Workers1

Plans Workers1

All industries ---------------------------------------------------- ^ 7 36^ 3. 229. 8 188 1.563.9 455 1. 267.6 6 ^ 5 8 ^ 24 270.8 9 14. 2 23 23.9 31 31.0

Manufacturing -------------------------------------------- 270 1. 239.6 92 817.9 146 352. 2 3 42.9 4 3. 3 6 11. 7 8 5.0 11 6. 5

Food and kindred products ------------ ----------------- 84 226. 8 2 0. 8 74 214. 5 _ _ 2 1. 1 4 10.0 1 0. 1 1 0. 3

Apparel and other finished textile products — - 78 772.9 60 745. 8 7 24. 1 - - - - 1 . 3 3 .7 7 1.9

Printing, publishing, and allied industries —— 53 63.0 13 17. 7 36 41. 6 1 0.3 1 2.0 1 1.4 - - 1 (1 2)

Leather and leather products 6 24. 2 1 1. 8 4 21. 7 - - _ - _ - 1 .7 - -

Metalworking — _ ____ — 27 55. 7 6 13. 6 16 34. 5 - - 1 . 3 - - 2 3. 1 2 4. 3

Miscellaneous m anufacturing-----------------------— 22 97.0 10 38. 2 9 15.8 2 42. 6 - - - - 1 .4 - -

Nonmanufacturing-------------------------------------- 454 1.969. 1 96 746.0 298 895. 1 3 15. 5 19 266. 7 3 2. 6 15 18.8 20 24. 5

Mining ---------------------------------------------------------------- 4 295. 4 2 294. 6 2 0. 8 _ _ _ _ _ _ _ _

Contract construction-------------------------------------— 232 612.0 16 28. 6 183 519. 2 1 2. 2 8 28.0 2 1. 7 11 17. 2 11 15. 1

Motor transportation--------------------------------------- 46 498.9 11 192. 2 30 91.0 - - 4 215.0 - - - - 1 . 7

Water transportation -------------------------- ------------- 41 147. 6 26 92.0 14 53. 6 - - - - - - - - 1 2.0

Wholesale and retail trade--------------------------------- 89 295. 8 28 93.2 44 170.9 1 7. 2 5 15. 6 1 .9 3 1. 3 7 6.7

Services .-------- ,-------------------------------------------------- 25 67.9 7 11 . 6 15 47.9 - - 2 8. 1 _ _ 1 . 3 _ -

Motion pictures and recreation — ------------------ 14 49. 5 4 32. 5 9 10. 9 1 6. 1 - - - - - - - _

Miscellaneous nonmanufacturing — ------------- 3 2. 1 2 1. 3 1 .8 - - - - - - - - - -

Interindustry manufacturing and

nonmanufacturing----------------------------------- 12 21.0 - _ 11 20. 2 _ _ 1 .8 _ _ _ . _ _

1 Worker coverage includes both active and retired workers in 1959.

2 Fewer than 50 workers.

N O T E : B e ca u se of rounding, su m s of individual ite m s m ay not equal to ta ls.

104

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T a b le 12. T ypes of ben efit form u las in m u ltie m p lo y e r p en sion plans under co lle c tiv e bargaining by m ediu m of funding, sprin g I9 6 0

(Workers in thousands)

Type of benefit formula

Plans

Medium of funding

Insured Self-insured Other

Number Workers 1 Plans Workers1 Plans Workers1 Plans Workers1

All plans ------------------------------------------------------------ 736 3,229.8 116 329. 6 590 2,539. 6 30 360. 7

Flat benefit for specified service ------------------- 188 1,563.9 9 20. 9 168 1, 206. 1 11 336. 9

Benefits vary by service alone------------------------ 455 1,267. 6 89 101. 7 353 I, 148. 3 13 17. 6

Benefits vary by earnings and service------------ 6 58.4 1 .9 5 57. 5 - -

Benefits are a percent of employer

contributions _________________________________ 24 270. 8 8 200. 2 15 67. 4 1 3. 3

No specific formula ------------------------------------------ 23 23.9 1 . 2 21 23. 5 1 . 1

O th er________________ ___________ ___________ 9 14. 2 1 1. 0 6 11. 3 2 2. 0

Information not available --------------------------------- 31 31. 0 7 4. 6 22 25. 6 2 .9

1 Worker coverage includes both active and retired workers in 1959.

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

Table 13. Form of payment of retirement benefit in multiemployer pension plans under collective bargaining by industry group, spring I960

(Workers in thousands)

Industry

All plans Payment for

life only

Payment for liie plus—

Cash benefit Information

not available

Payment

certain

guarantee

Modified cash

refund

Option

methods Cash refund

Number Workers1

Plans Workers1

Plans Workers1Plans Workers1Plans Workers1

Plans Workers1

Plans Workers1

Plans Workers1

All industries 736 3, 229.8 584 2, 837. 2 82 284. 4 14 52. 3 6 2. 0 2 0. 8 17 22. 1 31 31. 0

Manufacturing ----------------------------------------------- 270 1,239.6 211 1,066. 5 33 145. 0 6 16. 3 2 0. 2 _ _ 7 5. 1 11 6. 5

Food and kindred products -------------------------------- 84 226. 8 52 80. 7 24 129. 5 6 16. 3 1 0. 1 _ _ _ 1 0 .3

Apparel and other finished textile products ___ 78 772. 9 66 769. 0 1 1. 0 - - - - - _ 4 1. 1 7 1.9

Printing, publishing, and allied industries------ 53 63. 0 47 54. 3 5 8. 6 - - - - - - - - 1 (1 2)

Leather and leather products _________________ 6 24. 2 5 23. 5 - - - - - - - - 1 . 7 -

Metalworking------------------------------------------------------- 27 55.7 20 42.4 3 6. 0 - - 1 . 1 - _ 1 3. 0 2 4. 3

Miscellaneous manufacturing --------------------------- 22 97. 0 21 96.6 - - - - - - - - 1 . 4 - -

Nonmanufacturing ----------------------------------------- 454 1,969. 1 364 1, 759. 0 46 130. 0 8 36. 0 4 1. 8 2 0. 8 10 17. 0 20 24. 5

Mining __________________ ____ ___ ____________ 4 295.4 4 295. 4 _ _ _ _ _ _ _ _ _ _ _ _

Contract construction ---------------------------------------- 232 612. 0 166 463. 3 39 113. 0 4 2. 6 3 1. 7 2 0. 8 7 15.4 11 15. 1

Motor transportation ___________________________ 46 498.9 42 488. 9 3 9. 3 - - - - - _ - - 1 . 7

Water transportation ----------------------------------------- 41 147. 6 39 142. 4 - - 1 3. 2 - - - - - - 1 2. 0

Wholesale and retail trade -------------------------------- 89 295.8 77 284. 8 1 3. 0 1 (2) 1 . 1 _ _ 2 1. 3 7 6. 7

Services _________________________________________ 25 67.9 24 67.6 - - - - - - _ 1 . 3 _ _

Motion pictures and recreation ________________ 14 ‘ 49. 5 9 14. 5 3 4. 8 2 30. 2 - - _ _ _ _ _ _

Miscellaneous nonmanufacturing ______________ 3 2. 1 3 2. 1 - - - - - - - - - - - -

Interindustry manufacturing and

nonmanufacturing __________________________ 12 21. 0 9 11. 7 3 9.4 - - - - - - - - - -

_______ i

1 Worker coverage includes both active and retired workers in 1959.

2 Fewer than 50 workers.

N O T E : B e c a u se of rounding, su m s of individual item s m a y not equal to ta ls.

105

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106

Table 14. Form of payment of retirement benefits in multiemployer pension plans

under collective bargaining by medium of funding, spring I960

Form of payment

Plans

Medium of funding

Insured Self-insured Other

Number Workers1 Plans Workers1 Plans Workers 1 Plans Workers1

736 3, 229.8 116 329. 6 590 2, 539. 6 30 360.7

Payment for life o n ly ----------------------------------------- 584 2, 837. 2 97 313. 8 468 2, 169. 8 19 353.6

Payment for life plus—

Payment rarfain guarantee. 82 284.4 9 9. 1 67 270.4 6 4.8

Modified cash refund 14 52. 3 2 1. 8 11 49. 5 1 1. 1

Optional methods -------------------------— ----------- 6 2.0 - - 5 1.9 1 . 1

Cash r e fu n d ------------------------------------------— — 2 .8 - - 1 .6 1 . 2

Cash benefit 17 22. 1 1 . 2 16 21.8 _ _

Information not available —------------------- ------— 31 31.0 7 4.6 22 25. 6 2 .9

Worker coverage includes both active and retired workers in 1959.

N O T E : B ecau se of rounding, su m s of individual ite m s m ay not equal to ta ls.

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Table 15. Optional annuity forms in multiemployer pension plans under collective bargaining by industry group, spring I960

(Workers in thousands) _____

Industry

Plans

No option

provided

T<

offe

opt

Option provided

Information

not

available

ring

ions

Joint and

survivor

option

Joint

surviv<

period c

oot

and

ar or

:ertain

ion

Joint and

survivor or

other option

Period

certain

option

Other option

Number

Workers 1

Plans Workers 1

Plans Workers 1

Plans Workers 1Plans Workers1

Plans Workers1Plans Workers 1

Plans Workers 1

Plans Workers 1

All in d u s tr ie s ---------------------- 736 3. 229.8 594 2.928.9 111 270.0 75 192. 2 21 27. 2 5 11.0 5 4.9 5 34. 7 31 31.0

Manufacturing ------------—. 270 1. 239.6 224 1. 164.4 35 68.8 23 52. 5 6 5. 2 1 2. 1 3 3.6 2 5. 3 11 6. 5

Food and kindred products — 84 226. 8 60 190.9 23 35.6 15 22. 6 24 3.9 31 2. 1 2 2. 2 4 1 4.9 1 0. 3

Apparel and other finished

textile products ----------------- 78 772.9 71 771.0 - - - - - - - - - - - - 7 1.9

Printing, publishing, and

allied industries —-------— — 53 63.0 48 53.7 4 9 .3 2 7.5 - _ - - 1 1.4 51 .4 1

(1 23456 78910)

Leather and leather

products ----------------------------- 6 24. 2 6 24. 2 - - - - - - - - - - - - - - -

Metalworking —— --------------— 27 55.7 20 35. 5 5 16.0 .4 15. 5 1 . 5 - - - - - - 2 4. 3

Miscellaneous

22 97.0 19 89. 2 3 7.8 2 6.9 1 .9 - - - - - - -

Nonmanufacturing —___- 454 1.969. 1 360 1.748.9 74 195.8 50 134. 2 15 _21.J9__ 4 8.9. 2 1. 3 3 29.4 20 24. 5

Mining --------------------- ------------- 4 295.4 4 295.4 _ . .

232 612.0 177 522. 7 44 74. 1 30 39.1 8 4. 4 7 2 1.7 2 1. 3 82 27.6 11 15. 1

46 498.9 40 487.0 5 1 1 . 2 2 8. 1 1 . 2 9 1 1. 1 - - 4 1 1. 8 1 .7

Water transportation — — — 41 147. 6 39 145. 2 1 . 4 1 . 4 - - - - - - - - 1 2.0

Wholesale and retail trade — 89 295. 8 66 189. 3 16 99.8 14 84. 0 10 2 15.9 - . - - - - 7 6.7

Services —— -------- ---------------- 25 67.9 18 63.9 7 4.0 3 2. 5 4 1. 5 - - - - - - - -

Motion pictures and

recreation —----------------------- 14 49. 5 13 43. 3 1 6. 1 - - - 111 6. 1 - - - -

Miscellaneous

manufacturing -------------- — 3 2. 1 3 2. 1 - - - - - - - -• - - -

Interindustry

manufacturing and

nonmanufacturing ------- 12 21.0 10 15. 6 2 5. 5 2 5. 5 - - - - - - - - 1 -

1 Worker coverage includes both active and retired workers in 1959.

2 1 plan covering 200 workers also provided a straight life annuity option.

3 This plan also provided a modified cash refund annuity option.

4 This plan provided for any option.

5 This plan provided a straight life annuity option.

6 Fewer than 50 workers.

7 1 plan covering 1,000 workers also provided a straight life annuity option, and 1 plan with 700 workers also provided a cash refund annuity option.

8 1 plan with 27, 400 workers provided for a cash refund option, and the other plan with 200 workers had any option.

9 This plan also provided a cash refund annuity option.

10 1 plan covering 900 workers also provided a cash refund annuity option.

11 This plan also provided a straight life annuity option.

N O T E : B e c a u se of rounding, sum s of individual item s m ay not equal to ta ls.

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1 0 8

Table 16. Optional annuity forms in multiemployer pension plans under collective bargaining

by medium of funding, spring I960

(Workers in thousands)

Medium of funding

Provisions for options Insured Self-insured Other

Number Workers1 Plans Workers1 Plans Workers1 Plans Workers1

All plans _________________________ 736 3, 229.8 116 329. 6 590 2, 539. 6 30 360. 7

No option provided _______________ 594 2, 928. 9 68 281. 0 506 2, 296. 1 20 351. 8

Options provided _________________ 111 270. 0 41 44. 0 62 217.8 8 8. 1

Joint and survivor option _____

Joint and survivor or period

75 192. 2 27 19.4 46 170. 3 2 2. 4

certain option ________________

Joint and survivor or

21 27. 2 8 18. 1 29 4. 3 34 4. 8

othe r option __________________ 5 1 1 . 0 4 3 4.2 5 j 6. 1 61 . 7

Period certain option_________ 5 4.9 1 . 1 4 4.8 - _

Other option__ _______ __ ___ 5 34.7 7 2 2. 2 82 32. 3 9 1 . 2

Not available _____________________ 31 31. 0 7 4.6 22 25. 6 2 .9

1 Worker coverage includes both active and retired workers in 1959.

2 1 plan covering 200 workers also provided a straight life annuity.

3 1 plan covering 900 workers also provided for a cash refund annuity option.

4 1 plan covering 2,100 workers also provided a modified cash refund annuity option; 1 with 1,000 workers provided

a straight life annuity option; and 1 with 1, 100 workers provided for a cash refund annuity option.

5 This plan also provided a straight life annuity option.

8 This plan also provided a cash refund annuity option.

7 1 plan covering 400 workers provided for a straight life annuity option; and the other plan with 1,800 workers provided for any option.

8 1 plan covering 27,000 workers provided for a cash refund annuity option; and 1 plan with 4,900 workers provided

for any option.

9 This plan provided for any option.

N O T E : B eca u se of rounding, sum s of individual item s m ay not equal to ta ls.

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T a b le 17. N o rm a l re tire m e n t m onthly b e n efits, excluding so c ia l se cu rity b e n e fits, for w o rk e rs earning $ 4 ,8 0 0 p e r y e a r fo r 30 y e a rs of future cred ited se rv ic e

by industry group, in m u ltie m p lo y e r pen sion plan s under c o lle ctiv e b argain in g, sprin g I9 6 0

(Workers in thousands)

Industry

All plans Under $ 3 0 1

$30

and under

$40

$40

and under

$50

$50

and under

$60

$60

and under

$70

$70

and under

$80

Number Workers2 Plans Workers2 Plans Workers2 Plans Workers2 Plans Workers2 Plans Workers2 Plans Workers2

All industries __________________________________ 736 3,229. 8 40 208. 0 84 137. 3 87 347.8 169 824.9 96 324. 1 67 382. 6

Manufacturing ---------------------------------------------- 270 1,239. 6 12 32. 1 29 41.9 37 256.4 73 589. 2 40 99. 1 19 36. 1

Food and kindred products ------------------------------- 84 226. 8 2 1. 0 4 3. 3 8 12. 8 10 9.9 21 32. 6 7 8.9

Apparel and other finished textile products---- 78 772. 9 5 12. 2 11 9.9 12 169. 2 35 533.7 2 44. 1 1 .4

Printing, publishing, and allied industries---- 53 63. 0 3 4. 4 8 12. 2 8 6.9 11 12. 8 11 14.7 5 8. 2

Leather and leather products -------------------------- 6 24. 2 - - 3 13. 1 1 8.6 1 1. 8 - - - -

Metalworking ----------------------------------------------------- 27 55.7 - - - - 3 2.4 8 16. 8 5 6.7 5 17.7

Miscellaneous manufacturing -------------------------- 22 97. 0 2 14. 5 3 3.4 5 56.6 8 14. 3 1 .9 1 .9

Nonmanufacturing__________________________ 454 1,969. 1 27 175. 5 54 94.4 49 90. 6 94 229. 6 54 222. 6 44 338. 0

Mining _ ------------------------------------------------------------ 4 295.4 . _ _ . . 2 43. 4 1 0 .3 .

Contract construction---------------------------------------- 232 612. 0 7 126. 9 27 20.7 31 31. 3 48 83.7 37 151.9 22 87.9

Motor transportation--------------- --------------------- 46 498.9 3 6. 2 3 2. 5 2 2. 6 8 20. 1 2 1. 2 5 199. 3

Water transportation ---------------------------------------- 41 147. 6 7 5.4 6 3. 6 4 2. 1 4 23.4 5 36.9 1 . 3

Wholesale and retail trade — ------------------------ 89 295.8 3 2. 5 11 46. 8 8 15. 8 23 52.4 6 29. 1 12 44.9

_ _ _ 25 67.9 5 4. 3 4 15. 8 2 35. 1 6 5.8 2 1. 1 2 4. 3

Motion pictures and recreation __________ _____ 14 49. 5 1 30. 0 2 4. 3 2 3.7 3 . 7 1 2. 0 1 . 2

Miscellaneous nonmanufacturing _____________ 3 2. 1 1 . 2 1 . 8 - “ - - - - 1 1. 1

Interindustry manufacturing and

nonmanufacturing _______ ___________ __ _ 12 21. 0 1 0.4 1 1. 0 1 0. 8 2 6. 0 2 2.4 4 8. 6

See footnotes at end of table.

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T a ble 17. N o rm a l re tire m e n t m onthly b en efits, excluding so cia l secu rity b e n e fits, for w o rk e rs earning $ 4 , 800 p e r y e a r fo r 30 y e a rs of future c red ite d se r v ic e

by indu stry group, in m u ltiem ployer pension plan s under co lle c tiv e b argain in g, sprin g I9 6 0 — Continued

^W orkersin (itiiousands2i

Industry

$80

and under

$90

$90

and under

$100

$100

and under

$110

$110

and under

$120

$120

and under

$130

$ 130 and over 3

Benefits were

not computed

Plans Workers2 Plans Workers2 Plans Workers2 Plans Workers2 Plans Workers2 Plans Workers2 Plans Workers2

All industries _________________________________ 8 31.7 28 79. 9 50 535. 0 11 20.4 14 39.2 3 13 209. 5 4 69 89. 5

Manufacturing ---------------------------------------------- 2 6. 2 5 11.4 18 116.2 8 14. 8 3 20. 8 24 15.4

Food and kindred products ------------------------------- 1 6. 1 2 6. 0 15 109. 2 8 14. 8 3 20.8 _ _ 3 1. 5

Apparel and other finished textile products — - - - - 1 . 5 - - - - - - 11 3. 0

Printing, publishing, and allied industries---- 1 (5) 1 . 7 1 . 5 - - - - - - 4 2. 5

Leather and leather products__________________ - - - - - - - - - - - 1 . 7

Metalworking ----------------------------------------------------- - - 2 4.6 - - - - - - - - 4 7.4

Miscellaneous manufacturing--------------------------- - " “

1 6. 0 " - “ -

1 .4

Nonmanufacturing___________________________ 6 25. 5 23 68. 6 32 418. 8 3 5. 6 10 16. 6 13 209. 5 45 74. 0

Mining ---------------------------------------------------------------- _ _ _ _ 1 251.6 _ _ _ _ _ _ _ _

Contract construction__________________________ 2 2. 5 14 26.9 9 15.9 1 1. 3 6 6. 6 1 1. 7 27 54.9

Motor transportation ---------------------------------------- 2 7. 9

64 30. 0 5 21. 5 2 4. 3 3 9.6 7 6 193. 0 1 . 7

Water transportation ---------------------------------------- - - - - 6 57. 4 - - 1 . 4 5 12.9 2 5. 2

Wholesale and retail trade ------------------------------- 1 9. 0 4 11. 5 7 70. 9 - - - - - - 14 13. 0

Services -------------------------------------------------------------- - - 1 . 2 2 .9 - - - - - - 1 . 3

Motion pictures and recreation ------------------------ 1 6. 1 - - 2 . 6 - - - - 1 1.9 - -

Miscellaneous nonmanufacturing --------------------- - - - - - - - - - -

Interindustry manufacturing and

nonmanufacturing ________________________ - - - - - - - - 1 1. 8 - - - -

1 The smallest benefit was $10 a month.

2 Worker coverage includes both active and retired workers in 1959.

3 The largest benefit was $230 a month.

4 Includes 23 plans with 23,900 workers which had no specific benefit and formula; 40 plans with 60,300 workers for which information was not available; and

6 plans with 5, 300 workers for which computation of benefit was impossible.

5 Fewer than 50 workers.

6 Includes 1 plan with 1,000 workers which provided $90 a month for the first 5 years of retirement, and $25 thereafter.

7 Includes 3 plans with 174,500 workers which provided $135 a month for the first 5 years of retirement, and $70 thereafter; and 1 plan with 3,000 workers

which provided $175 a month for the first 5 years of retirement and $85 thereafter.

N O T E ; B e c a u se o f rounding, su m s of individual item s m ay not equal to ta ls.

110

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T a ble 18. N o rm a l retirem en t b en efits, excluding s o c ia l se c u rity b en e fits, fo r w o rk e rs earning $ 4 ,8 0 0 ($ 4 0 0 p e r m onth) p e r y e a r fo r 30 y e a r s

o f fu tu re credited se r v ic e by m ediu m of funding, in m u ltie m p lo y e r pen sion plan s under c o lle c tiv e bargain in g, sprin g I9 6 0

Amount of monthly benefit

. i wor

Plans

Medium of funding

Insured Self-insured Other

Number Workers 1 Plans W orkers1 Plans W orkers1 Plans Workers1

All plans 736 116 329 . 6 2. 5 3 9 . 3 30 ^ 3 6 0 ^ 7 ^

T in d er $ 3 0 - ------------ . ____________ 40 2 0 8 .0 4 7 . 3 32 19 8 . 4 4 2. 3

$ 3 0 and under $ 4 0 -------------- 84 13 7 . 3 13 2 1 .4 68 10 9 . 8 3 6. 2

$ 4 0 and tinder $ 5 0 _ 87 3 4 7 .8 21 1 0 .7 61 17 9 . 8 5 157. 4 $ 5 0 an d u n d e r $ 6 0 169 8 2 4 .9 26 1 7 .6 139 6 3 0 . 5 4 176. 8

$ 6 0 and under $ 7 0 — __ 96 3 2 4 . 1 14 2 7 .0 78 2 9 4 . 0 4 3. 1 $ 7 0 and u n d e r $ 8 0 _ _ n „ 67 3 8 2 .6 14 2 1 5 . 2 53 16 7 . 4

$ 8 0 and under $ 9 0 — 8 3 1 .7 _

7 2 5 . 6 1 6. 1

$ 9 0 and under $ 1 0 0 28 7 9 .9 4 18. 3 2 22 6 0 . 3 2 1. 3

$ 1 0 0 and under $ 1 1 0 . _ _ 50 5 3 5 .0 4 2 .7 4 4 5 2 9 .9 2 2, 4

$ 1 1 0 and under $ 1 2 0 • «. 11 2 0 .4 _ 11 2 0 . 4

$ 120 and u n d e r $ 1 30 14 3 9 .2 5 2. 5 9 3 6 . 7 $ 1 3 0 and o v e r — . . __ ___ 13 2 0 9 .5 3 13 2 0 9 . 5

Plans for which benefits were not computed —. 4 69 8 9 .5 11 6 .9 53 7 7 . 4 5 5. 1

$ 6 8 . 34

________________1______

$ 6 7 .0 2

______L.

$ 7 1 .4 3

________________1_________________1 i______

Worker coverage includes both active and retired workers in 1959.

2 See footnote 2, table 17.

3 See footnote 3, table 17.

4 See footnote 4, table 17.

Arithmetic mean weighted by number of workers.

N O T E : B e ca u se o f rounding, su m s of individual ite m s m a y not equal to ta ls.

Digitized for FRASER 

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i thousands)

T able 19. N o rm a l r e tire m e n t b en efits, excluding so c ia l secu rity b e n efits, for w o rk e rs earning $ 4 ,8 0 0 p e r y ea r fo r 30 y e a rs of future cred ite d se r v ic e

.by type o f benefit fo rm u la , in m u ltiem p loyer pension plan s under c o lle c tiv e bargaining, sprin g I960

Amount of monthly

benefit

Plans

Flat

benefit

for

specified

service

Benefits

vary by

service

alone

Benefits

vary by

earnings

and

service

Benefits

are a

percent of

employer

contribution

Benefits

are a

percent of

employee

contribution

Other

Number Workers1 Plans Workers1 Plans Workers1 Plans Workers1 Plans Workers1 Plans Workers1 Plans Workers1

All plans — . — 736 3. 229.8 188 1.563.9 455 1.267.6 6 58.4 24 270. 8 3 8.9 60 60. 2

Under $30 40 208.0 23 57. 1 17 150.9

$30 and under $40 ____ 84 137. 3 28 66.6 55 62. 8 - _ 1 8.0 _ _ _

$40 and under $50 ------------— 87 347.8 23 192.6 60 112. 1 1 41.7 3 1. 4 _ _ _ _

$50 and under $60 169 824.9 72 660.7 95 163. 8 1 . 3 1 . 1 _ _ _ _

$60 and under $70 96 324. 1 9 85.5 78 218. 3 3 10. 3 5 8.9 1 1. 1 _ _

$70 and under $80 — ----------- 67 382. 6 10 31.8 53 142.9 - - 4 207.8 - _ _ _

$80 and under $90 —------------ 8 31.7 2 7.7 4 17. 1 1 6. 1 1 . 8 - - _

$90 and under $100 —------— 28 79.9 21 1.0 26 77.9 - - - - 1 1. 1 _ _

$100 and under $110 ------— 50 535.0 9 275. 1 40 255. 3 - - 1 4.6 - _ _ _

$ 110 and under $ 120 11 20.4 - - 11 20.4 - - - - - - - _

$ 120 and under $ 130 —-------- 14 39. 2 2 1.7 10 29.9 - - 1 .9 1 6. 8 _ _

$130 and over — — — 13 209. 5 3 6 179.8 6 16. 3 - - 1 13. 3 - - _ _

Plans for which benefits

were not computed 69 89. 5 3 4. 3 - - 6 25.0 4 60 60. 2

Average’ ------------------------------ $68

___________!

. 34

|

$68 .91

1_ _ _ _ _

$66

1

.97

1__________ L__________ __________ 1 1r _ _ _ _ _ 1

1 Worker coverage includes both active and retired workers in 1959.

2 Includes 1 plan with 1,000 workers which provided $90 a month for the first 5 years of retirement, and $25 thereafter. •

3 Includes 3 plans with 174, 500 workers which provided $135 a month for the first 5 years of retirement, and $70 thereafter; and 1 plan with 3,000 workers

which provided $175 a month for the first 5 years of retirement, and $85 thereafter.

4 Includes 23 plans with 23,900 workers which had no specific benefit formula; 31 plans with 31,000 workers for which information was not available; and

6 plans with 5, 300 workers for which the computation of benefits was not possible.

5 Arithmetic mean weighted by number of workers.

N O T E : B e c a u se of rounding, su m s of individual item s m ay not equal to ta ls.

112

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T a b le 20. P ro v isio n s for n o rm a l, ea rly , disab ility re tire m e n t, and vestin g in m u ltie m p lo y e r pension plan s under c o lle ctiv e bargaining

by plan s and w o rk e rs c o v e re d , sprin g I9 6 0

All plans Percent Normal retirement Early retirement1 Disability retirement Vesting

Number Workers 1 2 Plans Workers2 Plans Workers2 Plans Workers2 Plans Workers2 Plans Workers2

736 3,229.8 100. 0 100. 0 736 3, 229.8 262 754. 3 386 1,474. 5 168 595. 0

70 194. 7 9.5 6. 0 >c 3t £ 3c

100 332. 5 13. 6 10. 3 X 3t £

40 124.7 5.4 3.9 >: 3c X

52 102. 3 7. 1 3. 2 X 3c

202 1,285.8 27. 3 39.8 >i

33 64. 1 4. 5 2. 0 * £ X

183 883. 2 24.9 27. 3 >i £

25 211. 6 3. 4 6.6 X X

31 31. 0 4. 2 1. 0

1 1_______________________

(N o t a v a i l a b l e )

1_____________________1__________________________ !1_______________________1______________ i1_______________

1 Excludes 38 plans covering 677, 000 workers which provided early retirement for women only.

2 Worker coverage includes both active and retired workers in 1959.

N O T E : B e c a u se of rounding, su m s of individual item s m a y not equal to ta ls.

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(Workers in thousands)

Table 21. Type of ben efit p ro v isio n s in m u ltiem p loyer pension plans by indu stry group, sprin g I960

Industry

All plans Normal

retirement

Early

retirement1

Disability

retirement Vesting

Number Workers 2

736 3, 2 2 9 .8

Manufacturing industries ---------------------------- 270 1 ,2 3 9 . 6

Food and kindred products ____________________ 84 2 2 6 . 8

10 17. 5 X X X X

31 1 3 9 .7 X X X -

5 9 . 2 X X - X

6 4 . 9 X X - -

4 7 . 6 X - X X

18 3 6 .6 X - X -

3 3. 3 X - - X

6 7. 8 X - - -

1 . 3 (N o t av a i l a b l e )

Apparel and other finished textile products___ 78 7 7 2 . 9

1 11. 6 X X X X

1 1. 0 X X - X

28 4 3 8 .4 X - X -

41 3 20 . 1 X - - -

7 1 .9 (N o t av a i l a b l e )

Printing, publishing, and allied industries ____ 53 6 3 . 0

8 5 .9 X X X X

13 2 0 . 3 X X X -

1 2. 0 X X - X

9 3. 0 X X - _

2 3 .8 X - X X

13 23. 0 X - X -

1 (3) X - - X

5 5. 0 X - - -

1 (3) (N ot a v a i l a b l e )

Leather and leather products _________________ 6 24. 2

1 . 3 X - X X

1 1. 8 X X -

4 22. 1 X - -

Metalworking __________________________________ 27 5 5 .7

3 13. 5 X X X X

5 5 .4 X X X -

1 . 1 X X - X

3 7. 3 X X - -

4 1. 1 X - X X

5 17. 3 X - X _

4 6 .7 X - _ _

2 4 . 3 (N ot av a i l a b l e )

Miscellaneous manufacturing -------------------------- 2 2 9 7 . 0

1 1 .4 X X X X

2 16. 0 X X X _

3 6 . 8 X X - -

1 . 9 X - X X

4 4 5 .7 X - X -

2 1. 7 X - _ X

9 2 4 .4 X - -

Nonmanufacturing industries _ ____________ 4 5 4 1 ,9 6 9 . 1

Mining ________________________ 4 29 5 . 4

1 . 4 X X

3 2 9 5 . 0 X -

Contract construction---------------------------------------- 232 6 1 2 . 0

31 7 3 . 2 X X X X

26 7 5 . 2 X X X -

14 4 0 .8 X X - X

10 8 . 4 X X - _

17 4 2 . 2 X - X X

45 8 2 . 1 X - X _

14 9 .8 X - _ X

64 2 6 5 . 1 X - - _

11 15. 1 (N o t av a i la b le )

See footnotes at end of table.

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Table 21. Type of benefit provisions in multiemployer pension plans by industry group, spring I960— Continued

_______________________________________ (Workers in thousands)

Industry

All plans Normal

retirement

Early

retirement1

Disability

retirement Vesting

Number Workers1 2

Nonmanufacturing industries— Continued

Motor transportation ---------------------------------------- 46 498.9

5 23. 3 X X X X

5 11.9 X X X -

3 1. 3 X X - X

9 39. 2 X X - -

1 1. 1 X - X X

10 39. 3 X - X -

1 196. 0 X - - X

11 186. 0 X - - -

1 . 7 (N o t av a i la b le )

Water transportation ---------------------------------------- 41 147. 6

9 52. 0 X X X -

2 .6 X X - 3

1 . 5 X X -

26 86.9 X - X

2 5. 7 X - -

1 2. 0 (N ot av a i la b le )

Wholesale and retail trade ------------------------------ 89 295.8

3 35.9 X X X X

4 4. 8 X X X -

6 62. 7 X X - X

6 19. 1 X X - -

3 7. 0 X - X X

22 63. 3 X - X -

1 (3) X - - X

37 96.4 X - - -

7 6. 7 (N ot av a ila b le )

Services ------------------------------------------------------------------------------------------- 25 67.9

3 2. 9 X X X X

2 3.9 X X X -

5 . 8 X X - X

3 10.9 X X - -

2 36. 1 X - X

10 13.4 X - -

Motion pictures and recreation ----------------------------------- 14 49. 5

1 4. 2 X X X X

1 2. 0 X X - -

7 6. 7 X - X -

1 . 2 X - - 3i

4 36.4 X -

Miscellaneous nonmanufacturing ------------------------------ 3 2. 1

1 1. 1 X X

2 1. 0 X -

Interindustry manufacturing and

nonmanufacturing -------------------------------------------------------- 12 21. 0

4 5.4 X X X X

1 1. 8 X X X -

2 6. 3 X X - X

1 .4 X X - -

2 6. 2 X - X -

2 1. 1 X X

1 Excluded are 38 plans with 677,000 workers which provided early retirement for women only, however, these plans were

found mainly with apparel industry where a large majority of the employees are women.

2 Worker coverage includes both active and retired workers in 1959.

3 Fewer than 50 workers.

N O T E : B ecau se of rounding, su m s of individual item s m ay not equal totals.

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Table 22. Type of benefit provisions in multiemployer pension plans

by medium of funding, spring I960

(Workers in thousands)

M e d iu m of funding

P la n s

N o r m a l E a r l y 1 D is a b ility V e stin g

N u m b e r W o r k e r s 2

AU plans _______

7 3 6 3, 2 2 9 , 8

In su re d — -------------------------------- —------------ 116 3 2 9 . 6

15 8 . 3 X X X X

8 5 .9 X X X -

17 12. 7 X X - X

4 7 . 1 X X - -

12 14. 2 X - X X

14 26 . 8 X - X -

16 2 0 5 . 2 X - - X

23 4 4 . 9 X - - -

7 4 .6 ( N o t a v a i l a b l e )

S e lf-in s u r e d ___________________________ 590 2, 5 3 9 . 6

52 18 2 . 8 X X X X

91 3 2 6 . 2 X X X -

20 10 8 . 8 X X - X

48 9 5 . 3 X X - -

17 4 0 . 1 X _ X X

167 6 8 3 . 3 X - X -

8 6. 2 X - - X

165 1 ,0 7 1 .4 X - - -

22 2 5 . 6 (Not a \ra i l a b l e ) 1

O th e r —-------------------------------------------------- 30 3 6 0 . 7

3 3. 6 X X X X

1 . 5 X X X -

3 3. 2 X X - X

4 9 . 8 X - X X

1 . 2 X - - X

14 1 6 9 . 5 X - - -

2 1 7 3 . 1 X - X -

2 . 9 !(Not

1

available)

1 Excludes 38 plans covering 677, 000 workers, mainly self-insured plans, which provided early retirement for women only.

2 Worker coverage includes both active and retired workers in 1959.

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

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T able 23. P ro v isio n s for e a r ly and d isa b ility re tire m e n t, and vestin g in m u ltiem p lo y er pen sion plans

under co lle c tiv e bargaining by indu stry grou p, sprin g I960

(Workers in thousands)

Industry

All plans Plans with early

retirement1

Plans with disability

retirement1 2 Plans with vesting 3

Information not

available for early

and disability

retirement

and vesting

Number Workers4 Number W orkers4 Number Workers4 Number Workers4 Plans Workers4

736 3. 229.8 262 754. 3 386 1.474.5 168 595. 0 31 31.0

270 1, 239.6 103 265.4 155 807. 6 49 81.0 11 6.5

Food and kindred p ro d u c ts------------------- -------— 84 226.8 52 171. 2 63 201.4 22 37. 6 1 0 .3

Apparel and other finished textile products — 78 772.9 2 12. 6 29 449.9 2 12. 6 7 1.9

Printing, publishing, and allied industries — - 53 63.0 31 31. 1 36 52.9 12 11. 7 1 (5)

Leather and leather products — --------- -— —— — 6 24. 2 - - 2 2. 1 1 . 3 - -

M etalwo r k i n g ----------— — —-----— ----------------------- 27 55.7 12 26. 3 17 37. 2 8 14.8 2 4. 3

Miscellaneous manufacturing — — --------------- — 22 97.0 6 24. 2 8 64. 0 4 4.0 - -

Nonmanufacturing -------------— -------------------- 454 1.969. 1 151 475. 1 224 653. 5 111 501.4 20 24. 5

Mining — -----—— —------------------------------- — -------- — 4 295. 4 1 0 .4 1 0 .4 _ _ _

Contract construction-----------------------------------— 232 612.0 81 197.7 119 272.8 76 165. 3 11 15. 1

Motor transportation —------------------ ----------------- 46 498.9 22 75. 7 21 75. 6 10 221.7 1 . 7

Water transportation --------------------------------- ----- 41 147. 6 12 53.0 35 138. 8 2 . 6 1 2.0

Wholesale and retail trade ---------------------------— 89 295. 8 19 122. 4 32 110.9 13 105. 6 7 6. 7

Services ----------------------- --------------------------------—— 25 67.9 13 18. 4 7 42.9 8 3.7 - -

Motion pictures and recreation -------— --------- — 14 49. 5 2 6. 2 8 10. 9 2 4.4 - -

Miscellaneous nonmanufacturing ------------------- 3 2. 1 1 1. 1 1 1. 1 - - -

Interindustry manufacturing and

nonmanufacturing —------------------------ ------- 12 21.0 8 13. 8 7 13.4 8 12. 7 _ _

1 Excluded are 38 plans covering 677,000 workers which provided early retirement for women only. These plans were mainly in the apparel industry where

the large majority of the employees are women.

2 Excluded are plans which provided lump-sum disability benefits only. (See p. 34.)

3 Excluded are plans which provided lump-sum termination benefits only. (See p. 37.)

4 Worker coverage includes both active and retired workers in 1959.

5 Fewer than 50 workers.

N O T E : B e c a u se of rounding, su m s of individual ite m s m a y not equal to ta ls.

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Table 24. P revalen ce of le v e l in com e option under early retirem en t p ro v isio n s in m u ltiem p lo y er pension plans

under c o llectiv e bargaining by industry group, sprin g I 9 6 0 1

(Workers in thousands)

Industry

All plans with

early retirement With level income option Without level

income option

Plans Workers Plans Workers Plans Workers

All industries _________________________________ 262 754. 3 39 134.4 223 619.9

Manufacturing ---------------------------------------------- 103 265. 4 13 14. 1 90 251. 3

Food and kindred products ____________________ 52 171.2 11 12. 2 41 159. 0

Apparel and other finished textile products — 2 12. 6 - - 2 12. 6

Printing, publishing, and allied industries---- 31 31. 1 - - 31 31. 1

Leather and leather products -------------------------- - - - - - -

Metalworking ---------------------------------------------------- 12 26. 3 1 1. 0 11 25. 3

Miscellaneous manufacturing -------------------------- 6 24. 2 1 . 9 5 23. 2

Nonmanufacturing --------------------------------------- 151 475. 1 26 120. 3 125 354. 8

Mining _________________________________________ 1 0 .4 . _ 1 0.4

Contract construction _________________________ 81 197. 7 16 58. 2 65 139. 6

Motor transportation --------------------------------------- 22 75. 7 1 2. 2 21 73. 5

Water transportation __________________________ 12 53. 0 - - 12 53. 0

Wholesale and retail trade ------------------------------- 19 122. 4 3 50. 1 16 72. 4

Services _______________________________________ 13 18.4 5 3. 7 8 14. 7

Motion pictures and recreation ----------------------- 2 6. 2 1 6. 1 1 . 1

Miscellaneous nonmanufacturing ____________ 1 1. 1 - - 1 1. 1

Interindustry manufacturing and

nonmanufacturing ________________________ 8 13. 8 - - 8 13.8

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering 3,229,800 active and retired

workers in 1959.

NOTE: Because of rounding, sums of individual items may not equal totals. 1

Table 25. Prevalence of level income option under early retirement provisions in multiemployer pension plans

under collective bargaining by medium of funding, spring I960 1

(Workers in thousands)

Provision

Plans

Medium of funding

Insured Self-insured Other

Number Workers Plans Workers Plans Workers Plans Workers

All plans with early retirement_______________ 262 754. 3 44 33.9 211 713. 1 7 7. 3

With level income option --------------------------------- 39 134. 4 11 6.9 27 125. 6 1 1.9

No level income option ________________________ 223 619.9 33 27. 0 184 587.4 6 5.4

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering 3,229,800 active and retired

workers in 1959.

N O T E : B ecau se of rounding, su m s of individual item s m ay not equal totals.

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119

T able 26. P ro v isio n s fo r death ben efits b efo re and after retirem en t in m u ltiem p loyer pension plan s under co lle ctiv e

bargaining by indu stry group, sprin g I9 6 0

(Workers in thousands)

Industry

All plans

Death benefits Information

not available Before retirement After retirement

Number Workers1 Plans Workers1 Plans Workers1 Plans Workers1

736 3, 229. 8 123 830.9 113 849. 0 31 31. 0

Manufacturing ---------------------------------------------- 270 1, 239. 6 32 46.4 46 423. 2 11 6. 5

Food and kindred products ------------------------------- 84 226. 8 14 25. 0 9 19.9 1 0 .3

Apparel and other finished textile products---- 78 772. 9 4 2. 0 27 365. 1 7 1.9

Printing, publishing, and allied industries---- 53 63. 0 7 7. 7 1 3. 0 1 (2)

Leather and leather products _________________ 6 24. 2 1 .7 1 .7 -

Metalworking ---------------------------------------------------- 27 55. 7 6 11. 0 6 23.8 2 4.3

Miscellaneous manufacturing — - — 22 97. 0 - - 2 10.6 - -

Nonmanufacturing _ ___________ ____ 454 1,969. 1 89 778.4 65 417.9 2. 0 24.5

Mining ______ 4 295. 4 1 251.6 1 251.6

Contract construction _ — ------ _ -------- 232 612. 0 62 110.9 38 57.8 11 15.1

Motor transportation __________________________ 46 498. 9 10 401.0 3 3. 1 1 .7

Water transportation _ _ __ _ _ 41 147. 6 - - 7 86.0 1 2.0

Wholesale and retail tra d e_________________ — 89 295. 8 11 7.6 12 12. 3 7 6.7

Services _ ------- __ _ ________ 25 67. 9 1 . 3 1 . 3 - -

Motion pictures and recreation _ _ _ _ 14 49. 5 4 7.0 3 6.8 - -

Miscellaneous nonmanufacturing__________ ___ 3 2. 1 - - - - - -

Interindustry manufacturing and

nonmanufacturing ________________________ 12 21. 0 2 6.1 2 7.9 - -

1 Worker coverage includes both active and retired workers in 1959.

2 Fewer than 50 workers.

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

Table 27. Provisions for death benefits before and after retirement in multiemployer pension plans

under collective bargaining by medium of funding, spring I960

(Workers in thousands)

Medium of funding

Plans

Death benefits

Before retirement After retirement

Number Workers 1 Plans Workers1 Plans Workers 1

All plans — ------ — __ __ ----- ---- 736 3,229.8 123 830.9 113 849.0

Insured-------------------------------------------------------------- 116 329.6 25 211.4 12 5.4

Self-insured __— _ _ _ _ __ _ 590 2,539.6 88 610.2 99 838.5

Other ____ _ ------— 30 360.7 10 9.3 2 5.2

1 Worker coverage includes both active and retired workers in 1959.

N O T E : B eca u se of rounding, su m s o f individual ite m s m ay not equal to ta ls.

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T a ble 2 8. D esignated o ffic e rs of b oa rd s in m u ltiem p lo y er pension plans under co lle c tiv e b argain in g, sprin g I 9 6 0 1

(Workers in thousands)

Chairman Co-chairmen Vice chairman Secretary Treasurer Other officers Plans Workers

nore officers 591 2,917.0

X 47 987.0

_ X _ - - 37 76.8

X - X - - - 26 87. 3

_ _ - X - - 7 22.2

X _ - X - - 287 1,025.8

_ X - X - - 21 75.2

X _ X X - - 64 163.4

X - X - X - 2 5.2

X - - - X - 13 69.7

_ - - X X - 1 . 5

X - - X X - 20 83.4

- X - X X - 6 4. 1

X - X X X - 28 142.6

X - X - - X 1 1.9

- X - X - X 1 2.6

X - - X X X 5 29.7

X - 2 X X X - 2 12. 0

X - X X X X 4 29. 1

_ X _ 3 X - - 5 3.8

X - _ X 4x - 2 1. 5

X - 2x X - X 10 57.6

X - 3x - - - 1 34.9

X 2 X X 1 1 . 1

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering approximately 3, 229, 800 active

and retired workers in 1959.

2 Co-vice chairmen.

3 Co-secretaries.

4 Co-treasurers.

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

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T a b le 2 9 . P ro v isio n s for selection of o ffic e rs in m u lti em p lo y er pen sion plan s under c o lle c tiv e bargain in g, sprin g I960

(Workers in thousands)

Chairman Vice chairman Secretary Treasurer Other officers

Plans Workers Plans Workers Plans Workers Plans Workers Plans Workers

All plans with designated officers ------------------ 583 2,894.4 139 535.0 463 1,653. 3 84 378.8 21 120. 9

By the board _ --------------------- ----------------------- 478 1,725. 0 124 406.7 391 1, 152.0 63 251.9 17 110. 3

No alternating required----------------------- ------- 295 1,073.0 54 185.5 355 1,009.7 58 245.7 16 80. 3

No group limitation _ ---------- ------------- _ _ 128 494.8 30 79.9 199 502.9 37 204.6 14 77. 3

From specified group „ — _ _ ---- 31 84.4 6 10.9 32 97. 1 11 22.7 1 .4

From different group than that of - ------ 136 493.8 18 94.7 124 409.7 10 18.4 1 2.6

Chai rm a m -----—--------------------- — --------- - - 17 85. 2 116 393.9 4 14.7 - -

Vice chairman_______________________ 17 85. 2 - - - - - - - -

Secretary —__________ _____________ 115 393.9 - - - - 6 3.7 1 2.6

Treasurer ---------- ----- ------ ---- 2 5.2 - - 6 3.7 - - - -

Secretary and treasurer------------------- 2 9.5 1 9.5 - - - - - -

Chairman and vice chairman--------— - - - - 1 9.5 - - - -

Other officers _ __ ____ - - - - 1 2.6 - - - -

Alternating between groups each term ------- 113 489.5 66 173. 2 24 109.6 3 4.7 1 30. 0

No further limitation ___ — _ __ _ 25 241.2 - - - - - - - -

From different group than that of --------- 88 248.3 66 173.2 24 109.6 3 4.7 1 30.0

Chairman . . . ________ ,__ - - 63 138.6 21 75.0 1 . 1 - -

Vice chairman _______________________ 63 138.6 - - - - - - - -

Secretary__________—,___ ________ ____ 21 75.0 - - - - - - - -

Treasurer -------- _ — - ---- 1 . 1 - - - - - - - -

Vice chairman and treasurer _______ 1 3. 5 - - 1 3.5 - - - -

Chairman and secretary -------- _ — - - 1 3.5 - - 1 3.5 - -

Secretary and treasurer___ _______ 1 1. 1 1 1. 1 - - - - - -

Chairman and vice chairman __ „ - - - - - 1 1. 1 1 1. 1 - -

Secretary and other officer_________ 1 30. 0 1 30.0 - - - - - -

Chairman and vice chairman------------ - - - - 1 30.0 - - 1 30. 0

Co-chairmen ______ _____ - --------- __ 70 162. 5 - - - - - - - -

Co-vice chairmen _ ____ _____ _ __ _ _ - - .4 48. 0 - - - - - -

Co-secretaries---------------------------------------------- - - - - 5 3.8 - - - -

Co-treasurers----------------------------------------------- - - " - - - 2 1.5 - -

By union and/or employers _ — _______ 22 608.7 _ _ 7 28.9 1 . 3 - _

No group limitation ___ ______ ____ _ _ 20 602.4 - - 5 22.6 1 .3 - -

Alternating between groups each term ____

From different group than:

2 6. 3 - " 2 6. 3 “

'

Chairman ------ ------ --------------------- - - - - 2 6. 3 - - - -

Secretary--------------------------------------------- 2 6. 3 - - - - “ - - "

Other ---------------------- -------- - — ----------- ------ 12 173.7 8 113.4 10 125.4 8 113.4 1 (2)

Information not available--------------------------------- 71 387. 3 7 14.9 62 375.9 12 13.3 3 10. 5

1 Based on a study of 736 multiemployer pension plans under collective bargaining covering approximately 3,229,800 active and retired workers in 1959.

2 Fewer than 50 workers.

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

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Table 30. Provisions for special meetings in multiemployer pension

plans under collective bargaining, spring I960

(Workers in thousands)

Special meeting called by Plans Workers1

736 3. 229. 8

Chairman or board members -----------------------------------------------— 168 826. 6

14 11.4

Chairman or 2 members --------------------------------------------- — 101 558.4

26 39.2

Chairman or 4 and more board members ............... ........— 27 217. 6

Chairman or another officer or board members .................. — 122 452.9

Chairman or another officer only —— --------- ------...----- 15 125.0

Chairman or another officer or 2 board members —— — 71 153. 3

Chairman or another officer or 3 board m e m b e rs---------- 16 63.0

Chairman or another officer or 4 and more

board members - — — -----—--------------------- --------------------- — 20 111.6

Chairman and another officer or board members ------— 44 138. 6

Chairman and another officer only -----------—---- -------— — 33 94.0

Chairman and another officer or 3 board members -------- 4 10. 8

Chairman and another officer or 4 board members — — - 7 33.8

Any board members —-------------------------------- — ------------- ---- ------- 111 630.6

1 board member ,--------,------,nr. i . . r ------------*----------------- 31 187.9

2 board members ---------------— --------------------- —-------------— — 55 193.9

3 board members ——--------------------- — ------— ——--------------- 10 13.0

4 and more board members ---------------------— ------------------- - 15 235.8

15 84. 9

No provision, or information not available —— —— -------------- 276 1,096.4

1 Worker coverage includes both active and retired workers in 1959.

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

T able 31. Voting ru les in join tly ad m in istered m u ltiem p lo y er pen sion

p lan s under c o lle c tiv e bargain in g, sprin g I 9 6 0 1

(Workers in thousands)

Voting rule

Plans Workers

Number Percent Number Percent

All jointly administered plans 2 —— 718 100.0 3.032. 8 100.0

Majority________________ 206 28.7 529.0 17. 4

Board ---------------------------------------- 130 18. 1 328.8 10.8

49 6.8 147.7 4.9

Votes cast ---------------------------------- 17 2.4 45.9 1. 5

10 1.4 6.6 . 2

Majority with equal voting power — 167 23. 3 721.7 23.8

20 2.8 200. 8 6.6

Members present --------------------- 44 6. 1 78. 3 2.6

Votes cast —--------- -----------------— 101 14. 1 440.9 14.5

Q u o r u m ------------------------------------- 2 . 3 1.7 . 1

Majority with specified number — - 62 8. 6 143.4 4.7

Board --------------------------------------- - 40 5. 6 101. 3 3. 3

Members p r e s e n t ----------------- 19 2. 6 30. 3 1.0

Votes c a s t ---------------------------------- 3 .4 11.7 . 4

Unanimous or unit rule — -----------—, 178 24. 8 1,047.7 34.4

Other ------------------------------------ ---- ------

No provision, or information

4 .6 8. 6 . 3

not available —------------------------------ 101 14. 1 583.4 19.2

1 Based on a study of 736 multiemployer pension plans under collective

bargaining covering approximately 3, 229,800 active and retired workers in 1959.

2 See footnote 2 in text tabulation on p. 57.

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

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T a ble 32. P a rtie s pe rfo rm in g specified functions in m u ltiem p loyer p en sion plan s under c o lle ctiv e bargain in g, spring I960

(Workers in thousands)

All plans

Maintains records Receives applications Determines eligibility Processes claims Appeals are directed Makes final

decision on appeals Number Workers1

736 3. 229. 8

487 2, 067. 3 Board Board Board Board Board Board

4 4. 1 Employers Board Board Board Board Board

4 322.9 Board Board Board Insurer Board Board

4 4. 2 Employers Board Board Employers Board Board

6 10. 5 Board Board Board Board and insurer Board Board

16 25. 3 Union Board Board Board Board Board

30 333. 4 Union Board Board Union Board Board

16 25. 6 Corporate trustee Board Board Board Board Board

4 11.0 Corporate trustee Board Board Corporate trustee Board Board

15 8. 8 Service organization Board Board Board Board Board

19 86. 1 Service organization Board Board Service organization Board Board

7 5.0 Service organization Board Service organization Service organization Board Board

5 208. 5 Board and insurer Board Board Board and insurer Board Board

4 6. 5 Board and insurer Board Board Board and insurer Board Board

2 106 97.9 M i s c e lla n e o u s

9 12. 6

___________________________1________1

In fo r m a tio n not a v a ila b le 1 1 11_________________________1___________________________

1 Worker coverage includes both active and retired workers in 1959.

2 Does not exceed 3 plans for any one combination.

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

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Appendix A: Scope and Method of Study

The chief sources of information for this study were the reports and documents filed

with the U. S. Department of Labor’s Bureau of Labor Standards pursuant to the Welfare and

Pension Plans Disclosure Act (PL 85-836). Administrators of any employee welfare or pension benefit plan, as defined by the act, covering more than 25 workers are required to

file with the Department two copies of a description of the plan, within 90 days after the

effective date of the act (January 1, 1959) or plan (whichever occurs later), and two copies

of an annual financial report within 120 days after the end of each calendar, policy, or other

fiscal year. By the spring of I960, plan descriptions for over 136,000 welfare and pension plans, and about 100, 000 annual financial reports had been filed.

Virtually all reports are filed on the forms issued by the Department: The D -l

form for use in describing the plan and the D-2 form for making the annual financial report.

The D -l description plan form (reproduced in appendix B) requires that the following information and documents be submitted:

1. Name and address of the plan.

2. Accounting period of the plan.

3. Type of plan (i. e. , welfare, pension, or combination).

4. Group(s) covered by the plan (hourly rate, salaried, or all employees).

5. Industry in which most participants are employed (8 industry divisions are listed).

6. Whether the plan is mentioned in a collective bargaining agreement.

7. Parties making contributions (employer, participants, union).

8. The name and address of the administrator (in multiemployer plans, usually a

board of trustees) and the names and addresses of person(s) constituting the administrator, their official positions with respect to the plan, their relationship to the employer

and employee organization, and any other offices, positions, or employment held by them.

9. A detailed description of the administration of the plan, including the names of

the party or parties performing the following functions: Maintaining records; determining eligibility; processing claims; making determination on appeals; authorizing payments;

making payments; authorizing expenses; selecting the insurance carrier, corporate trustee, or service organization; and determining investment policy.

10. The name and address of the party or organization through which benefits are

provided.

11. Names, titles, and addresses of any trustee(s) not mentioned under items

8 or 10.

12. Copies of plan documents under which the plan is established and operated,

schedule of plan benefits, and a statement of the procedures to be followed under the

plan in presenting claims for benefits and for appealing the denial of claims.

The D-2 form, which in this study was used only to obtain the number of members

(active and retired) covered by each plan, also shows the assets, liabilities, contributions,

benefits paid, and salaries and commissions paid.

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One of the initial problems in the conduct of this study was to locate the multiemployer pension plans among the 136,000 welfare and pension plan descriptions filed with

the U. S. Department of Labor by the spring of I960. Twenty-five thousand of these plans

were readily identified by the Bureau of Labor Standards as providing pension benefits or

a combination of welfare and pension benefits, from item 3 (type of plan) on the D -l form.

However, no information on the forms would serve to distinguish directly multiemployer

from single employer pension plans. To reduce the 25, 000 plans to a manageable number

for investigation, it was assumed that few multiemployer pension plans under collective

bargaining are administered solely by an employer(s) or an employers' association. On

this basis, nearly 20,000 pension plans for which item 8 (D -l) showed employer administration were removed from consideration. The descriptions and supporting documents

of each of the remaining 5, 600 pension plans administered jointly or by an employee organization were examined to determine whether they were, in fact, multiemployer pension

plans under collective bargaining.

A comparison of the resulting list of plans with plans mentioned in other sources

in the Bureau of Labor Statistics— union convention proceedings, financial reports, the Bureau's file of collective bargaining agreements, and staff knowledge of the field— revealed

some omissions. A subsequent check of the Bureau of Labor Standards' union index reference file filled in these and some other gaps. In all, 798 multiemployer pension plans,

each with more than 25 workers, covering a total of 3,324,800 workers (active and retired),

were identified. It is believed that all or virtually all such plans in effect in the spring of

I960 are accounted for in this study. Multiemployer pension plans not under collective bargaining were excluded from the study because of their unimportance in relation to the whole

pension field. 38

The standard documents used for analysis are briefly described below. Although

these documents are usually necessary to provide a complete description of the establishment

and operation of a multiemployer pension plan as required by the act, other documents or

descriptive materials may have been and often were substituted.

1. Collective bargaining agreement between the union(s) and the employer(s) (or

association of employers) describing, among other things, the employers' obligation

either to make specified contributions to a trust fund or provide specified pension benefits or both.

2. Pension plan stating in full the pension plan adopted by the board of trustees

or negotiated by the employers and union. Only simplified booklets issued to plan participants, rather than the full text of the plan, were typically available for insured plans.

3. Trust agreement (also called "agreement and declaration of trust" or "trust indenture") detailing the powers, duties, and obligations of the board of trustees appointed

to administer the plan.

4. Master group annuity contract setting forth the full text of the insured pension

plan and obligations of the parties.

5. Individual certificates of participation issued to participants under some insured plans.

6. The corporate trust agreement setting forth the responsibilities of the parties

where a bank or trust company is given the responsibility for the investment or safekeeping of funds or both.

7. The D -l and D-2 forms and attachments which give an overall description of

the plan and summary financial information.

38 To the Bureau's knowledge, although there are some multiemployer pension plans

established outside of a collective bargaining relationship, they are believed to comprise only

a small fraction of the total. The expense and effort involved in locating these plans precluded their inclusion. Further, had they been included, it would have been necessary to

study them apart from collectively bargained plans, because of the basic difference in administrative procedures.

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For certain key characteristics, as explained below, the analysis was based on supporting documents filed by the administrators, rather than on the form itself, supplemented

by other sources of information available to the Bureau of Labor Statistics.

Plan administrators indicated on the D -l form (item 5) the industry division in which

most of the participants were employed. Eight broad divisions were listed: Manufacturing;

mining; construction; transportation; communications and utilities; wholesale and retail trade;

finance, insurance, and real estate; and services. To provide a more informative and meaningful breakdown of the plans studied and to correct errors in reporting (probably mostly due

to the lack of industry definitions), each plan was classified into the 2-digit industry groups

of the Standard Industrial Classification. Guidance for this classification was obtained from

the D -l form, and was checked against supporting plan documents. For some plans it was

also necessary to check other sources available to the Bureau of Labor Statistics.

The unions participating in the plan were usually not fully identified on the D -l form

(i. e. , the name of the national or international union with which the participating local was

affiliated was often omitted); in most cases, the supporting plan documents thus had to be

examined. For some plans, however, complete identification was only possible by utilizing other sources.

The number of employees participating (active and retired) in each plan was usually

obtained from the D-2 forms (item 6B). For some 100 plans, however, estimates of coverage had to be made by using other sources, primarily the Bureau’s current file of collective

bargaining agreements and reports submitted for the Bureau’ s union wage scale surveys.

In the absence of such data, or as a check on its accuracy, additional sources (union constitutions, union financial reports, and other Bureau files) were used. In a few cases where

there were no reports on which to base an estimate, estimates were made by drawing upon

the general knowledge of the Bureau's professional staff.

Complete information about some subjects analyzed in this report was not available,

either because no documents were submitted or the documents submitted were oversimplified

or incomplete. However, the notation that information was "not available" does not necessarily mean that the submission was incomplete. The information desired could not be

obtained from some complete submissions becaus-e it was not given in a suitable form. It

was impossible, for example, to determine the employers' pension contribution rate under

some plans with a single, combined contribution rate for both welfare and pension benefits.

Nor could the rate be obtained for other plans with flexible contribution rates, where the

applicable rate was dependent on each individual employer's collective agreement. Since

these rates affected some benefit provisions, the latter also were classified as "not available."

If, however, the rate and benefits applicable to the largest number of workers were known,

they were used, as in other studies by the Bureau of Labor Statistics, to represent the rate

and benefits for all workers under the plan.

For the above reasons, data are not presented for alT plans for all items. However,

the selectioh of items for analysis and the techniques used were based on the Bureau’ s previous experiences in pension plan analyses and on the range of data usually available in

pension plan documents.

Analysis for each plan included in this study encompassed some or all of the documents described on page 126, usually the pension plan text, trust agreement, collective bargaining agreement, and D -l form. The D -l items analyzed— financing, plan administrator,

etc.— were all verified and edited by examination of plan documents. Many misinterpretations,

errors, and omissions were corrected by this check, and as previously explained, some items

were only obtainable from outside sources. Most items selected for analysis were only

available in the documents themselves. The complete analysis of a single plan usually involved the critical examination of at least four separate legal and descriptive documents which

were marked by a wide diversity in language and format.

39 U. S. Bureau of the Budget, Standard Industrial Classification Manual, 1957.

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Appendix B: Form D—1

R F M F F iT P I A N Form approved. D t W t r 11 r L A B I Budget Bureau N o. 44-R1114.

the Welfare and Pension Plans Disclosure Act/ Public 

Law 85-836/ to assist administrators of welfare and pension plans in discharging their responsibilities under the act. Use a separate form 

for each' separate employee welfare benefit plan and each separate employee pension benefit plan or combination thereof. Read 

Instructions carefully before completing the form.

Is this an original filing Q or an amended filing [I] ? File No............................

U. S. DEPARTMENT OFLAB°R EMPLOYEE WELFARE OR PENSION

DECEMBER 1958 DESCRIPTION FORM

This form is made available by the U. S. Department of Labor as directed by

1. NAME OF PLAN AND ADDRESS OF ITS PRINCIPAL OFFICE 

(Include the name of the employer or employee

organization with which plan is identified.)

2. FINANCIAL RECORDS OF THE PLAN ARE MAINTAINED ON A CALENDAR. POLICY. OR 

FISCAL YEAR ENDING

MONTH DAY

3. INDICATE BY CHECKING THE APPROPRIATE BOX BELOW THE TYPE OF PLAN FOR WHICH 

THIS DESCRIPTION IS BEING SUBMITTED

A. WELFARE B. PENSION C. COMBINATION

BENEFIT PLAN BENEFIT PU N OF A. AND B.

□ □ □

«. CHECK THE CATEGORY THAT BEST DESCRIBES THE GROUPS COVERED BY THE PLAN:

A. ALL B. HOURLY RATE C. SALARIED D. OTHER (SPECIFY):

EMPLOYEES EMPLOYEES EMPLOYEES

□ □ □ ..........

5. INDUSTRY IN WHICH MOST OF THE PARTICIPANTS ARE EMPLOYED: (CHECK ONE)

MANUFAC- MINING CONSTRUC- TRANSTURING TION PORTATION

COMMUNICATION WHOLESALE AND 

AND UTILITIES RETAIL TRADE

FINANCE. INSURANCE. 

AND REAL ESTATE

SERVICES OTHER (SPECIFY):

A . D B . D C . D d.o e.q f .q G. □ H. □ I.

6. IS THE PU N MENTIONED IN A COLLECTIVE-BARGAINING AGREEMENT? YES □ NO □

7. PARTIES MAKING CONTRIBUTIONS TO THE PLAN: (CHECK ALL THAT APPLY)

A. EMPLOYER(S) B. PLAN C. UNION (OUT OF D. OTHER (SPECIFY):

PARTICIPANTS GENERAL FUNDS)

□ □ □ .............

8. PROVIDE THE FOLLOWING INFORMATION:

A. OFFICIAL NAME (OR TITLE) AND ADDRESS OF PLAN ADMINISTRATOR*

B. ADMINISTRATOR OF THE PLAN IN 8A IS AN:

(1) EMPLOYER (2) JOINT (3) EMPLOYEE ORGANIZATION (4) OTHER (SPECIFY):

OR EMPLOYER EMPLOYER-EMPLOYEE INCLUDING EMPLOYEE

ASSOCIATION BOARD OF TRUSTEES BENEFICIARY ASSOCIATION

C. INDIVIDUAL NAMES AND ADDRESSES OF PERSONS CONSTITUTING THE ADMINISTRATOR UNDER THE ACT. AS 

IDENTIFIED IN 8A ABOVE

OFFICIAL POSITION WITH 

RESPECT TO THE PLAN

i l l (2)

RELATIONSHIP, IF ANY, TO EMPLOYERS) OR TO 

EMPLOYEE ORGANIZATIONS 

(SEE INSTRUCTIONS)

________________ (3)________________

ANY OTHER OFFICES. POSITIONS.

OR EMPLOYMENT HELD

___________(4)___________

*The act defities the administrator of the plan as follows: “(/) the person or persons designated by the terms of the plan or the collective-bargaining agreement with responsibility for the ultimate control, disposition, or management of the money received or contributed; or (t) 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.” Under the act, the term “person” means “an individual, partnership, corporation, mutual company, joint-stock

company, trust, unincorporated organization, association, or employee organization.”

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9. DESCRIPTION OF TYPE OF ADMINISTRATION. OPPOSITE EACH OF THE FUNCTIONS LISTED IN COLUMN ( I ) , INDICATE THE PARTY OR PARTIES WHO PERFORM SUCH FUNCTION. FOR 

EXAMPLE. EMPLOYER. UNION. TRUSTEE. CARRIER. AS SHOWN IN THE INSTRUCTIONS. IN CASE DIFFERENT PARTIES PERFORM A PARTICULAR FUNCTION WITH RESPECT TO DIF* 

FERENT BENEFITS. FOOTNOTE EACH PARTY AND SHOW IN FOOTNOTE SPACE THE BENEFIT OR BENEFITS FOR WHICH HE PERFORMS THE FUNCTION.

FUNCTION 

(IF APPLICABLE)

(D

PARTY PERFORMING FUNCTION 

(2)

A. MAINTAINS RECORDS OF PLAN PARTICIPANTS.......................

B. DETERMINES ELIGIBILITY OF INDIVIDUAL CLAIMANTS FOR 

RECEIPT OF BENEFITS.................................................................

C. PROCESSES CLAIMS FOR BENEFITS UNDER THE PLAN ....

D. MAKES DETERMINATION ON APPEALS . . . -------

E. AUTHORIZES PAYMENT OF BENEFITS............ ....

F. MAKES PAYMENTS TO BENEFICIARIES . . .

G. AUTHORIZES INCURRENCE OF EXPENSES...............................

H. SELECTS CARRIER OR SERVICE ORGANIZATION....................

I. SELECTS CORPORATE TRUSTEE..............

J. DETERMINES INVESTMENT POLICY...........................................

FOOTNOTES:

10. IDENTIFY EACH PARTY THROUGH WHICH PLAN BENEFITS ARE PROVIDED. FOR EXAMPLE. INSURANCE COMPANY. CORPORATE TRUSTEE. TRUSTEES OTHER THAN CORPORATE. COM. 

MUNITY HOSPITAL-SURGICAL ASSOCIATION. HEALTH CARE CONTRACTOR. AND INDICATE BENEFITS PROVIDED THROUGH EACH.

STATE NAME AND ADDRESS

(If benefits are provided directly by the plan administrator enter

term “plan administrator” in lien of his name and address.)

0 )

ENTER BELOW EACH BENEFIT PROVIDED THROUGH THE PARTY 

OR ORGANIZATION LISTED IN COLUMN (1)

(2)

n. STATE THE NAMES. TITLES. AND ADDRESSES OF ANY TRUSTEE OR TRUSTEES NOT LISTED IN ITEMS 8C (1) OR 10 (1) ABOVE.

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12. SUBMIT AS PART OF THIS DESCRIPTION:

(A) COPIES OF THE PLAN OR BARGAINING AGREEMENT. TRUST AGREEMENT. CONTRACT. OR OTHER INSTRUMENT 

UNDER WHICH THE PLAN WAS ESTABLISHED AND IS OPERATED;

(B) THE SCHEDULE OF PLAN BENEFITS;

(C) THE PROCEDURES TO BE FOLLOWED UNDER THE PU N IN PRESENTING CLAIMS FOR BENEFITS AND FOR 

APPEALING DENIAL OF CLAIMS.

IDENTIFY BELOW EACH DOCUMENT OR OTHER MATERIAL BEING SUBMITTED.

LIST OF DOCUMENTS SUBMITTED

NOTE: If schedule of benefits and procedures for appeals, required in (B) and

(C ) are part of one of the documents

submitted and listed, specify on the list

those documents containing this information.

SIGNATURE AND VERIFICATION

The plan description after its completion shall be signed by the plan administrator, in the presence of a Notary Public or other officer 

authorized to administer oaths, using ( A ) or (B) below, whichever is approDrie te.

ST A T E O F _____________________________

C O U N T Y O F __________________________

( A ) ------------------------------------------------, being duly sworn, says that he is

(Title of officer)

..................................................................., administrator of the plan ar d that the information in this plan description (including the

(Name of company)

information contained in any accompanying documents described in Item 12) has been examined by him and is to the best of his knowledge 

and belief, true, correct, and complete.

(B)-

_________________________________________________________________________________________________________________________________the

administrator of the plan, being duly sworn, each for himself deposes and say; that the information in this plan description (including the 

information contained in any accompanying documents described in Item 12) has been examined by him and is to the best of his knowledge 

and belief, true, correct, and complete.

Signed and Sworn To Before M e

This D a y o f ......................,19.

(M onth)

(Notary Public)

M a il two copies of the form completed in accordance with the instructions and two copies of each accompanying document to the 

Welfare and Pension Reports Division, Bureau of Labor Standards, U. S. Department of Labor, Washington 25, D. C.

For official use by the U. S. Department of Labor

(DO NOT WRITE IN THIS SPACE)

This will constitute a receipt for documents submitted for filing with the 

Secretary of Labor as a description of a welfare or pension benefit plan 

under the provisions of the Welfare and Pension Plans Disclosure Act, when 

stamped opposite with the date and the file number with which such documents 

have been marked. Please seif-address the receipt form below and enter the 

name of the plan as given in Item 1, page 1, of this form.

NAME OF PUN 

NAME

ADDRESS

CITY. ZONE. 

AND STATE

* U.S. GOVERNMENT PRINTING OFFICE : 1962 0 — 643840

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