The Washington times., 1912-06-30

L
ject Of pensions for employees more gen.
orally talked Of. longed for and appa'
rently less likely of realization in any,
| thing like the near future, than in tn,
city Of Washington. where so many
thousands of employees OF the Govern
ment are constantly employed, and
where salaries are admittedly made
quate to permit of accumulation against
old age, sickness and death.
Pensions for employees is generally
| accredited as largely responsible fol
industrial prosperity of Germany.
or late years pensions, profit-sharine
measures, etc, for employees Of banks
and trust companies have been giver
much consideration and several of the
larger institutions have we'll organized
successful contributory plans and some
profit sharing methods that promise to
add to the success of the banks through
interested, enthusiastic employees. sure
of a competency when retirement is en-.
forced by passing years. sure of some.
thing for their wives and children. in
the event of sickness, retirement. OF
death--an incentive to effort, to loyalty
to continuity of service and the welfare
Of an institution.
sooner or later the profit -shar ring OIL
contributive plan will be generally
adopted. Some Washington banks are
at work on plans at this time. one
proht-shartng plan is In. operation.
Exanlpics OF profit sharing and pcn.
sion plans are given here, that are not
only interesting but may be useful to
iocal bank directors, who may be con.
temrIating the introduction of some
such methods In the interest of their
employees and officials.
FOR twenty wears the Union Savings
i'ahk and Trust Company Of Cincin.
i'au mas maintained a profit sharing
pE'n' q certain percentage of the earn
ihgs over per cent on the capital. was
set aside for the benefit Of employees
VINO had served over three years. At
llrst tho fund was distributed at the
end Of the year. but the officials recog-
nized that this would in no way an
sist In enabling the employees to pre-
pare for evcntualitiss no the plan was
changed TO permit Of the company TAX
ing charge Of the fund, ccmpoupdine II
at per cent annually
No employe was permitted to with
draw his share or any Fart thereof,
for investment in securities that were
approved oy the officers Of the hank,
and as few per cent securities are
available. there were few Withdrawals
Tor this purpose. On quitting the clerk
might withdraw his share. In the
event Of illness. salary is paid out of
the fund for Il period not exceeding
twelve months. The only cases OF i'll
6ar
for by officers. Convalescents, forced to
go to warmer climate, may secure
employment to help out. II possible or
advisable, and part aalary is paid. The
full share Is paid to the family Of an
employe on the latter's death.
An employe may retire after reaching
sixty years. and a twenty-five years
service. with half pay for hfe. Many
employees reach this age, after forgetting
natHsd many Ms0n sh that have passed 1
under twenty years and have scored
forty years Of work, when reaching
sixty years OF age. Bankers generally
put the retirement age at sixty-hve
years.
An insurance annuity has been ar
ranged for. After ten years service
the widow of a deceased employe is
given 10 per cent of salary, half Of /
per cent OF salary for each additional
year of labor. To each minor child one
fifth of amount paid to the mother. If
orphaned children, one-third of the
amount mother would have received.
officials of the bank declare that they.
have received benefits from increased
loyalty, have received the best possible
assistance and service from employees
have assisted to save during productive
capacity. by providing for family, par
italy, In case Of death and for employe
after retirement.
An assessment plan, they claim, tends
to diminish employees interest in the
bank. Increased efficiency makes II
possible for the employees to earn part
Of the fund.
James B. Forgan, head of the great
First National Of Chicago, brought pen
sion IDEAS from Canada. The plan in
operation in the First National is based
on per cent Of salaries deducted from
pay envelopes, but is optional with en-
ployes. All subscribers to fund must
be eighteen years Of age. Clerks mar
not marry on less than $1,000 annual
salary Clerks voluntarily resigning or
discharged are paid their share of funds,
but without interest.
NO pension is granted unless employe
has been with bank fifteen years and
reached sixty years of age. If death
comes before completing the fifteen
years or service the amount contributed
plus I per cent interest Is returned to
legal representative.
Having completed fifteen years of ser-
vice and reaching sixty, an employe or
official may retire or be compelled to
retire. W
At sixty-hve retirement is compulsorv
unless employe or Official is asked to
stay. II before reaching the age of sixty
ii health incapacitates, retirement with
pension is possible. Officers and en-