Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1908-01-21
The Grand TRUNKS Pension Plan.

With the first of January system Of
pensions went into effect on the Grand
Trunk Railway, which may apply to al
its IS 900 or more employees.
The pension fund will be entirely con
tributed by the company, the men not
being assessed one cent for its mainte
nance or administration. 1t will affect
every member of the staff from Charles NJ
Hays down to the humblest section man,
while provision is also made for men in
capacitated by accident or otherwise, OF
even men discharged without cause, and
otherwise eligible under the pension
rules.
The establishment of this pension sys-
tenn was approved at the last annual
meeting of the shareholders, when the
handsome sum of 5000, 900 was voted as
a nucleus. In addition to the income
from this sum, however, it is estimated
that the company will have to supple
ment this BY large sum, varying from
$4,000 to So, 900 year.
Unlike the pension funds which have
baen established by some of the other
large railways of this continent (of
which there are not a few, the rules Of
the Grand Trunk pension fund will ap-
ply from the highest to the lowest of the
staff, from the general manager himself
down to the humblest section man or
gate keeper. They require absolutely
the retirement from active service of
every officer or employee when attaining
the age of 65, and If he has entered the
service before the age of so years, and
has served for period Of Is years, or
more, he is entitled with the approval of
the pension fund committee to an annuity
of per cent of the average annual salary
paid for ten continuous years, for each
year of uninterrupted employment, the
basis of calculation being the same as
that practically universal on this CONT
nent.
Thus if man has served say 30 years,
receiving an average of 81 900 per annum
(SSS.33 per monthly on the pay rolls of
the company for the last ten years-or
for any period of ten years during his
term of service-he would be entitled to
1 per- cent of $1,000 equal S10x30 years,
or $500 per annum, equal to S25 per
The company, however, have made
provision that irrespective Of rate of pay
or service, the minimum allowance to be
paid under any circumstances will be
5000 per annum, and this without any
maximum.
Another distinguishing feature is that
whilst nearly all other companies base
their pension on the average wage rate
of the last ten years of service, the allow
ance from this fund will be on the high
est average rate of wages for any ten
consecutive years of continuous service.
The most satisfactory rule, however,
from the employees standpoint will be
one providing that any employee over
80 years of age, after Is years of service,
Il discharged without cause, at any time
previous to reaching the pension age
limit, becomes eligible to pension in
to the number of years of
service up to date of discharge.
The benefits of the fund will also ap
ply to worthy employees who may have
been injured in the service of the COM
pany, or who have suffered the loss of
which render them incapable of
such employees having
served the company the minimum period
If 10 years-whether the age has been
attained or not.
1t is anticipated that the pension
scheme will form an admirable adjunct
70 the company's Insurance and Provi- |
lent Society which has been for many
years in operation; the weak point in
his has always been the inability of an
aged or permanently disabled employee
% keep up his payments to the insurance
'und, although privileged to do so.
Hereafter very small deduction from
MS pension allowance will enable an
employee to make provision for his |
family up to the maximum amount of
81, 900.
Many of the conservative and thought |
'ul men among the employees will well
come this innovation, because Of the
class of men it is likely to induce to join
The service of the company, as we'll as
The inducement it furnishes to the train
ID and careful employees, whose ex-
perience makes them desirable, to re-
main.