The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1912-11-11
ANNOUNCE PENSION
PLAN FOR EMPLOYEES
Bell Telephone Co. Sets a
7 Large Sum Aside
SUMMARY OF TERMS
Provides Pensions for Employees, Dis
ability Benefits and Life lnsur-
anee on What is Termed
Very Liberal Scale

Approximately 800 employees in Birming-
ham of the Southern Bell Telephone and
Telegraph company aud Western Union
Telegraph company will be affected by
the plan for employees pensions disability
benefits and insurance just announced.
A fund of 100000 for pensions, sick
benefits and life insurance will be avail
able on January ]. for the $4,000 en-
ployes of the Bell system and associated
interests and their families and de-
pendents, amounting altogether to more
than a quarter of million people.
This s1o000.Oo0 fund viii be made good
from year TO year by annual appropria-
lions on the part of the American Tele-
phone and Telegraph company and as
ISOLATED companies, and tEe Western
Union Telegraph company and the West
crn Electric company.
Employees in South
More than 1880 telephone employees in
the south will be directly benefited by
his plan. OF these 1900 are employees
Of the Southern Bell Telephone COM
pany. which operates in North and South
Carolina, Georgia, Florida and Alabama.
and $3.50 are employees of the Cumberland
Telephone company. which operates in
Tennessee, Kentucky, Louisiana, Missis-
sippi and Missouri.
Officials and employees of these two
companies are enthusiastic over the plan
They regard it as another progressive step
Tor the furtherance OF the interest of
telephone employees, which will result in
II. 81
lations now existing between these COM
ranies and their thousands of employees.
The plan for tho distribution of this
fund has been characterized as the most
liberal. comprehensive and ideal ever in
auyurated. President r. NJ Vail has
provided combined benefits for super
anauation, sickness, accident and DEATH
for an industrial army more than twice
as large as the standing army Of the
United States.
This provision is made entirely 1t he
exrense OF the various companies in
tcrested, without contribution of any
Kind from the employees themselves. The
application of these varied benefits Will
be strictly democratic and win be for
the benefit Of all employees of every
Isaiit The plan will provide for free
Change Of employment from one COM
pany 10 another, with full credit for
combined terms of service.
The Bell system and associated inter-
esta provide employment for about It's,
oel people; Of this number 10000 are
employees of the Bell Telephone System
The total yearly pay for the whole
group IS about $1l5,0oOOoo, something oyer
ssdooo.eo0 being paid out in wages by the
Eel telephone system alone.
Summary of Terms
Tie terms by which provision is made
for the needs of age illness. accidents
and death, may be summarized as fol-
loNs
Fensions-Male employees who hayc
reached the age of sixty years and who
have been twenty years or more in SER
wee, may retire on pensions. They may
he retired at the option of the company
when they nave reached the age of fifty
i've years and have been twenty-five
years or more in the service. The PEN
sion age of female employees is in each
caEe five years younger than that of male
employees. Any employee who has been
tbirty years in service, regardless of age,
may he pensioned on the approval of the
Pr, sident of the company.
The amount of the pension is automat-
ically based on the years of service and
4t.n smot1nt of nav and will he per cent.