, 1934-11-27
GENERAL FOODS
PLANS PENSION

Assurance or old age retirement
incomes Is given General Foods EN-
ployes through a new cooperative
annuity plan announced Sunday by
O.. s. Robinson, 1913 Mercantile
Bank building, Dallas district man
ager for General Foods. The plan
effects employees In As plants and
20 sales divisions and districts In
this country and Canada.
Every General FOODS employe IN
his district, according TO Robinson,
has approved the new plan This
one hundred percent acceptance
makes each one q part OF the Co
operative annuity agreement.
Joint contributions Of corporation
and employees win provide fixed
monthly incomes to be paid ernplo-
es will provide retirement eligibility
age 50 FOR women. IS for men.
General Foods pays more than hall
the total cost Of the retirement
plan. Although income payments
start when women and men employ
es are so and s. years DID, respec-
lively, retirement then Is not OBJ
ligatory. The plan also provides
that employees with ne company's
consent may elect TO retire, anG re-
ceive income at a reduced rate, at
any time within 10 years Of custom
ary retirement age.
Amount of monthly income de-
ponds on length Of service and rate
OF earnings prior to retirement. Pay
ments by the corporation ana the
employe obtain for the participant
a retirement income more than twice
as large, on the average, as he could
purchase individually through an
nuity insurance.
An example: An employe 30 years
old, earning SIS a week, viii con-
tribute toward the plan $lB4 forty
eight times a year, and his pay
ments win be matched by General
Foods. If he remains In the same
earnings classification and makes
this same weekly contribution until
age IS. his retirement income viii
be SIP monthly. Actuarial studies
show that the average man OF c5
can look forward to another IL
years Of life.
FOR years we have been working
on the development Of q plan TO
eliminate old age insecurity for our
employees, states G. NJ Chester,
president Of General Foods. The
system we are now instituting has
several unusual features. All Par
ticipating workers have the option
II they should leave the corporation
OF, !, having their contributions re-
turned or. 2, leaving them with the
insurance company as q paid-up
annuity. But II they have partlci-
mated for IS consecutive years, they
can. BY leaving their own deposits
with the insurance companies, re-
ceiye retirement income based on
the corporations contributions, as
well as their own.
Upon retirement, an employe may
expect to enjoy an income equiva-
lent TO 2 per cent Of his average
earnings for every year OF his par
ticiuation m the plan. For in
stance, an employee age 80 today
viii. on retirement, receive each
month so per cent Of whatever his
average monthly salary may be dur
ing the next 80 years. II an en-
ploye wishes, he "a arrange his
policy 50 that payments, in reduced
amounts, win be continued during
the hfe-time Of O designated de-
pendent. should this dependent sur
vive the retired employees death. III
such arrangenent Is not chosen,
the balance Of the contributions not
disbursed as retirement income Is
paid to q beneficiary named In the
policy"
September /, 1884. has been desig-
mated as the date when the plan
goes into effect. AL employees OF
General Foods and subsidiary COM
panies in United States and Canada,
now under retirement age. who have
been with the organization one year
prior TO September I, are eligible 70
participate, but participation Is not
obligatory. General viii pay not only
It's share Of the plan, but also the
September, October, and November
employees contributions for all work.
ers joining the plan before Deem
Der /. Although the plan itself does
not provide for 1t. the announce
ment states General Foods may at
its discretion add TO the retirement
income OF employees who are now
more than Al years old
General Foods Will deduct pay
ments Of participating employees di-
rectly from salary checks These
funds, together with the corpora
tons contributions, viii be i'm
mediately turned over to the two
largest insurance companies In the
country. These companies will
handle the administration Of the
plan and assure security Of all pay
mentS.