Opinion ID: 1716621
Heading Depth: 1
Heading Rank: 3

Heading: The Retirement Plan for Employees

Text: To implement the revision of the company's retirement plan T. L. James & Company, Inc., resolved on August 7, 1967 to adopt a new plan effective January 1, 1967, and directed that the company officers continue contributions to the trust for the plan. The new plan was a restatement and continuation of the existing plan adopted by the company as of January 1, 1955 and the trust agreement entered into with a Shreveport bank at that time; the plan having been previously established on December 31, 1949. The plan is applicable to each employee in the active service of the company on and after January 1, 1967. Employees are persons whose customary employment with the company calls for at least 20 hours of work per week for at least six months per year. The monthly retirement income is based on the participant's final monthly compensation on his credited service. Normal retirement is retirement from the service of the company. Retirement pay, computed according to rules established in the plan, is payable, in the event of the employee's death after retirement, to his beneficiary or to the employee on retirement whether voluntary or because of disability. Upon termination of service because of deathbefore retirement is otherwise due  the retirement benefits are payable to the designated beneficiary and are calculated on the employee's earnings over five consecutive years of the last ten he worked to arrive at an average monthly salary. Ragan Odom, Personnel Manager of the company, explained that, like in the profit-sharing plan, all expenses, costs and investments in the retirement plan are paid by the company, but it is paid by the company because the participant is an employee of T. L. James. Only employees are included. Participation is based upon the employee's earnings and length of service. The funds are paid by the company for his benefit; the funds are designated to the employees. The company actually takes tax deductions for the contributions it makes to the plan, a practice approved by the Internal Revenue Service and the Department of Labor. Once the contribution is made by the company, it is irrevocable. As in the profit-sharing plan it is declared that no participant shall have any interest or right to or under the trust fund, except to the extent expressly provided in the plan. Each participant may designate a beneficiary but if a deceased participant has not done so, the benefits are payable, in the discretion of the retirement committee, to the participant's surviving spouse, his descendants, parents, or heirs-at-law, or it may apportion the benefits among the group as the committee sees fit, or pay to the estate of the participant in its discretion.