The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-03-20
BANKERS EXPLAIN
PENSION SYSTEMS.
How Aged Employees Are Re-
tired in the Big Finan-
Cial Institutions.
s a general rule, there is a provi-

M
"A sion for compulsory retirement
L h at seventy years Of age Of all
employees of a majority of the big cor
porauons. though where this age Is
specified there are occasional excep-
tons 10 its enforcement within the dis
erection of the company.
In some instances. as In that Of the
Baltimore and Ohio Railroad Company.
the age Of retirement is fixed at sixty
five; in that of the Carnegie Com
pany and the Boston Elevated Railway
Company, at sixty. and in that Of the
Grand Trunk Railway of Canada at
ffty-five. In most cases where tie age
OF retirement is fixed at seventy there
may also be retirement between the
ages Of sixty-One and seventy. with the
granting Of a pension in case the en-
Tloye has served ten years twenty
years, twenty-five years, or thirty years.
such period varying with the different
corporations
Among .he railroad companies. a num-
her. as. for instance. the Illinois Cen
trail Railroad Company. the Southern
Pacific Company, the Oregon Railroad
and Navigation Company. the Houston
East and West Texas Railway. and the
San Antonio and Arkansas Pass Rail
way, have adopted the provision for re-
firing a special class. as locomotive en-
gineers and dremen. conductors. dagmen
and brakemen, train baggagemen, yard
masters, sW-itchmen. bridge foremen.
section fcremen. and r)admasters, at
the age Of sixty-ive years.
Most OF the corpora tons have adopted
the same basis with respect TO the
amount Of pension allowance, which is
rar caur of he aver. o.. -,-,.r ,--,~.f---.-7
for the ten years preceding retirement
Tor each year Of service
Thus. If an employee has been in the
service for forty years. and his average
salary or wages for the last ten years
was So per month, his pension allow
arce would be 20 per cent OF SO. or $50
per month.
The provision Of the First National
Bank Of Chicago is for one-Gftieth of
the salary at the date OF superannua-
ton for each year Of service, with a
maximum pension of thirty-Gye fftieths
OF the salary Provision is made. how
ever. that this maximum shall not APP
ply TO the higher salaries. as. Tor In
stance. on a salary not exceeding $4,000,
II shall not exceed $4,000.
On a salary exceeding $4,000 IL shall
not exceed 5000
4he@e pensions are also continued and
paid TO the widow. and TO minor chill
dren until they reach the age OF eighteen
years. under certain restrictions. The
provision OF the Grand Trunk Railway
OF Canada is for one-sixtieth Of the
salary at the date of experimentation
FOR each year during which the emplOye
has contributed 70 the fund
The National EaniI of St Joseph No.
PAYS 30 per cent of the salary thereto
fore received. and the Midvale steel
Company pays the largest salary the
cmplOye earned at any time during his
period OF service 70 the company
With some of the corporations there
S hmit nXed as 10 the aggregate
amount 20 De expended for pension ah
loWauces; as, for instance, the Penn
sylvaIia Railroad Company fixes the
limit at S55O.eU "a year. and provides
tiet when allowances shall create de-
mands I'm excess or that sum new
basis snail De established raJably re-
Guclns the pension allowances so as 20
bring their aggregate within the limlta-
ton.
In most OF The. instances covered by
the data at hand. the fund out OF which
Tie pension allowances are paid Is pro-
vided solely by the respective companies.
An exception 20 this is found ln the
case Of the Grand Trunk railway. OF
Canada, Wnlcn requires e contribution
Of "a Per cent OF The sala"v of Inc
employe-