Decatur Daily Democrat, Volume 48, Number 153, Decatur, Adams County, 30 June 1950 — Page 6

PAGE SIX

We Offer* ' - * « . ‘ ‘ i a it- ‘tn o - " ' • ... _ . . \

FCP«vteMLMYßtiPWwlMv«botniMeMivitydfoeuMing with toe coranrittees of *• tw larger unione ths poo* pooafo which they hare and toe ones which we hove. We have otoeruniem whose contracts are in proctm of negotiation. In ■ddßtai wa ham bam aMyiagthe awn factore. Mhe gamtaaa md taourence, over many months. la rmarrHna witoaUaf there, we have not only been taking into consideration the idem at the various unions involved bat have, at . course, been studying the situations and observing the trends of settlements by other emptoyere tat the vgrious communities where we operate. We have bam making soon local wage adjwtments right along, aad quite a substantial member at additional ones were made just recently on a local baste when the dections vmm over and it bi rarer poaaible again to take action in naaaemic matters without possible jeopardy to the elections. Thia process at continuous local check, and rack occasional focal adjustments as may prove appropriate, will, at course. After the beneftt of the recent discussions aad the eartier studies, we came thio week to the point where we were ready to make proposals to the various unions. Besides the contract aad other items under consideration individually with the various unions, here to an abbreviated summary of the principal economic hemo we ere proposing to make available: MSURANCt lacramml Ufa tototmmea. Oram Use lasursMe lor an insured implcyru ra soon ra they start to work amounting famootcree.to - apprarinwftiy 1H t"MAt tiem aameot roraiay eritoftJOO so a wlelwnw, and with the average amovatiag to am $4,500. . Moat group Mt policies elsewhere provide insurance squat to , one ytoi reraim Aad, the toot $1,500 of the insurance heft io tree to the towered employee. Ufo tasuramco After Ago M (M for Wonsea). laoured employees. with IP years or more of coatinuom ewyift am| attefa teghgefiS(Cftfcr women). to be provided with life insurance ri no coot to them thereafter, end equal to J 4 of the average ayomt brid under the plan dart <4tee y rm Mine » years. Wk rmptoyrre with '• S years, but imder 10 years, of service to get a proportionately AiridenlalßeuHi need Piamomhanwant ■anaftt. in odditfon. a SI,OOO Accidental Death Beneftt to be included for all in eured employees. Thue the beneficiary of any insured employee, whore death is caused by an accident on or oft the job, will get a minimum of S4OOO, and the average payment will be about $6,500. Lump sum payments up to $2,000 will also be made for specified major dismemberments not resulting in death. Weekly lldoeaas and Accident Insuranco. insured employe's shall receive in moot crass approximately 60% of straight time earnings, up to a maximum of $35 per week, for each of the twente-etomta following the first wee* while out because of a non-occupetional accident or illness. If an-insured mgifojrir to admitted to a hospital as a bed-patient during the ftrst week, the beneftt payments are to start upon such • Insured salaried eraptoyees shall receive sls s week commencing upon the eighth day of Continuous disability (or earlier if hospital - toed) during the period of salary continuance. Thereafter, the ben eto shall be approximately 60% of their straight time earnings, up to $35 a week, for an additional period of 36 weeks. MgSptowHgpHaW RoneftfS. For each day an insured employee to confined to a hospital for non-occupotional disability, he will be reimbursed for the semi-private room coot up to a maximum of $lO per day, aad up to a total of S7OO for any one period of disability, plus up to SIOO for special hospital services. Swrakal Operation BonofttS. If an insured employee undergoes a surgical operation for non-occupational disability, benefits mil be paid equal to the doctor's charge for the operation up to the maximum amount listed for that particular operation in accordance with the standard $175 schedule included to the policy. - NMplNdteation RsnoftH After Retirement. if at toe time of retirement toe employee has had 15 years of continuous service and has contributed to this new plan for as much of that period as he was eligible, toe hospital aad surgical operation benefits shall be continued in force, provided toot after age 65 (60 for women) toe total payments for all such benefits during retirement shall not exceed SSOO. aad no employee payment will be required. AtoHrwity BrareAH. In toe event of the pregnancy of sn insured female employee. SIOO win be paid for normal delivery. $l5O for Caesarean section onactopic pregnancy, or reimbursement up to SSO far actual doeton* and hospital charges for a miscarriage. These benefits are payable in lieu of any other benefits under the Plan m the event of pregnancy. He spited end Surgical Rififißti lor Pspsndsntt. The Company will continue to make payroll deductions for, and pay the administration costs of, MBA and other Company approved plans providing hospital and surgical coverage only for dependents of employees. - — ■ ¥ ■- CggtrißwHgm by Coospony end Impleyoe*. The only contributions which the insured employee will make in the future towards the coot of this entire Life Insurance and Health Insurance Promm would be an amount equal to 60f per month far each SI,OOO of Life Insurance in excess of the ftrst $1,500, plus a fiat SOf per month. After attaining age 55 (50 for women) this contribution -X wist be increesed by COfper month for eocfislJOO of Lite Insurance above the first SIJ6O. to be applied eoleiy to toe purchase of paid VP life is rare err after apt 65 (60 for women). This additional contribution wifi be returned to any insured employee who leaves toe service of too rompaay before retirement and elects not to retain toe paid up iawirin re No farther contributions from employees will be required far the envenmre continued wMte the iraplnyrr is eligible to receive weekly - tichram aad strident benefits under toe Plan, or after age 65 for men end 66 for women, or m cose of total and permament disability iiiratiag before age 66. ar after retirement on 0 disability pension

GENERAL@ ELECTRIC , . ' ■’ / '■ ” ■ - i . ■ ■.

BteCATOTt DAILT WMOOUT, nOCATCh. BfBUIU

The balance of the cost of the entire Lift Isesresn and Mb W— FrjLßrft— Ms Rfem temnkbWft* wAtrihiitinwa will be Mid by the Company. X.... FMMM UMR MWWMWVh Tne r»® win pnmoe pchmmb m iifeatap'6SforHMnMMl6ofor women for nU partiripeting tmpleytte retiring with more than one year of Company service. Buvteyeos retiring at those ages will receive payments for life amounting in onto year tn 46 per cent of the total contributions they have made to the Plan during toe entire period of took manbenhip ia it subsequent to leptensber 1,1646. Braed upon aoticigated aeortaftty rates, the ereerage employee retiring would tone receive in fatal pension payments more than six timeo what be or ohe would contritaete ra hie eg her share. For continuoue asmica aefee to leutember 1. 1646. substantial •dditioMl ptntioM how beta pfoiddtd imdcf the CcwniMay'B at the expense of the Company. When revised on September 1, 1646, the Plan was designed so that an employee would receive a total retirement income st age 65 (66 for women) including primary Social Security benefits, of $lO6 a month if be earned $3,000 a year during 35 years' partidpation in the Plan ra thus amended while under the preaant Social Security Law. Penriona under toe General Electric Pension Plan are now and win continue to be additionaf to Old Age Security benefits. So, if the Social Security lews ore revised along the lines presently contemplated by the Senate and House of Representatives, the additional Federal benefits win not nduca the Company pension benefits ra in the ease in many current pension plans (except m the tax ’ brae of $3,000 may be changed), but will be added and sriH thus mcreow the total retirement income of General Electric participating employees. For example: The total retirement income of an employee earning $3,000 with 35 yenre' credited service ia the Plan as thus amended would approximate $135 a month under the Social Security revision -which now is under legislative consideration. The same employee with 30 years’ service would receive a total income of approximately $133 a month. \ Since the average earnings of G.E. hourly end salaried employees are substantially in excess of the $3,000 figure used above, it is obvious that mart-employees retiring with or 30 years’ service .. under the Plan as thus amended will ieceive total retirement incomes in excess of these figures. Minimum Rgflrwmtort Incomn. A new minimum total retire ment income to guaranteed for long service employees retiring under the normal or optional retirement provisions of the new Plan after its effective date. If the total retirement income (Company pensions plus primary benefits under present or any fature Social Security law) to less than the minimum total retirement income specified below, the pension payable shall be increased accordingly: For an employee retiring on his normal retirement date, witb-35 or more years of credited service under the Pension Plan, the minimum total retirement income shall be $135 a month, except that if $135 is more that 50% pt the employee's average monthly earnings during the 10 years of his employment preceding his retirement, the, , minimum retirement income shall be such 50%. X A review made by the Company of the anticipated pensions payable to employees retiring during even the next five years, assum- ' ing normal retirements, indicates that most employees with 35 years of service would receive a total retirement income of more than the $135 minimum and the great majority of other cases would benefit by the full $135 provision. To take care of some of the remaining cases, where (he 50 percent provisions applicable for employees with 35 years or more of credited service does result in a pension less than $135 per month, we are proposing that the minimum retirement income shall in no event be less than SIOO per month. " It should be noted that these provisions apply only to determine the minimum total retirement income. There shall be a prorata minimum total retirement income for an employee having 15 or more, but less than 35, years of credited service. For an employee with less than 1.5 years of such service, the pension shall be calculated in the regular way but with no guaranteed minimum of total retirement income. There shall also be a minimum total retirement income for an employee having the required period of credited service who retires prior to the normal retirement date. This minimum will be the above minimum reduced by 4% for each year by which his retire- „ ment precedri the normal retirement date. Pmslms AddfttoMl to Social Security. As already indicated, regardless of the outcome of the pending changes in the Social Security Law. the pension received from the Company will be in addition to the Old Age Insurance Benefits of the Act, except as provided in connection with the minimum total retirement provisions previously described. 1 This General Electric pension to not limited to a fiat amount to all, but goes up in amount as rate of pay and years of service go up. Rotiraman* Aga. The retirement age for aH employees (whether participants or non-participants) will continue to be 65 for men and 60 for women, except as the Pension Board may otherwise approve in individual cases. However, regardless of years of service an option to provided so that men may retire as early as age 60 and women as early as age 55 with an appropriately reduced pension for life. Venting. Employees who. at any age aad for any reason, leave toe Company after 30 years or more of credited service under the plan, can elect not to withdraw their contributions and interest but can have, instead, a vested right to a pension beginning at normal or optioned retirement age. The minimum total retirement income provirions are not applicable to any such pension. SugplMMMtal Baytisgats. After toe effective date of toe new agreement, a participating man or woman, who retiree on pension prior to age 65 with 15 or more years of credited service under toe Plan, trill receive in addition to hto prestos a supptemeatai payment of $45 per month until age 65. Employees retiring after toe effective date of the new agreement srito Ism than IS years of credited service under the Plan trill not receive any oupptemeatal ptymcstß* ~ This supplemental payment to a part of. aad not in addition to, the minimum total retirement income described previously, ft to not

pnMtooiMfeVM haring tke ooretee of toe Cangnny end slKting their vested rights. Ftaoton Pte. would still dtoability prariore Hr 1 telm* who become totally and permanently disabled alter 1$ poare re ZSited servireuX to. BrafJ^vriorshipytio.far empfopore who wish to provide a reduced income for fife for «Mr atwp ar tr - toraM toe rmptoyer die first; and a gnerawM es fam years of pension payments, even ts toe employee Mould die efiftin five yrers after irtirsairat. «<kr UMO w •—> toe CTrngony and 5% additional on all Loioproutine over $$M». (Thtobooeof $3,000 trill be toeaged to conform to tire tea base to Uy ««W tew wlrito wifi remain the same.) The Company py the reM of toe rest, which for the average employee vtoe retiree aadsr toe Ptente Stimated to be twice what the unployot wouid heve put fa- Thte is in addition to the cost of the peaoiora provided for emptoyoto / / rertoTtote to fieptember I. 1646, wtoto Io paid far ratMy kg Company. PundNftg. The amounts calculated OU M actuarially OSuad bralO ra necemmy to provide peratora booed on the employee toaOribq* ■. tfons ehan continue to be paid into toe Ptatira Treat as presently conetituted. and added to the nearly $350 milboa praiilrty to such fund. NIW IOAN MAN To help relieve participating employees from Oarariel hordfoipe during a period of lay-off or sickneaa. a jew tea, u 1 ratlin be available, in addition to toe other Company ReUet aad Low Plans at moot locations- / Under conditions specified to the proposal, toe Company riH, toad a participating employee not actively at work toe amouteoC kft contributions in the Pennon Plan up to a manmum of S3OO PAY INCMASIS Gonaral McrPOfig. The Company is offering a praaral srepe incre.se of three per cent (3%) but not lew titan four eratt (so) - per hour to.hourly end salaried employees ia the bergaiaMg ante under current connder.t.on with thf umora. la toe eaee of employ ee*, on incentive jobs, three per cent (3%) but a** feta toe. f<Sur cents (4<) per hour worked will be added to ti* weekly ings of such employees. This increase will be combined wtth toe last general increase of eight per cent (6%) but not less than area cents (6g) per.hour, for administrative simplicity. — UNGTH Os CONTRACT Since our objective is the greatest stability and well-being m oot Employee Relations, we are proposing a ftve yrer cratfact. Vader this the Pension Plan, Insurance Program, and National Agreement would remain unchanged for five yean; toe matter of whether or not a general wage adjustment is appropriate could be optneu OOM each year after 1650 by either party to the Agreement. COST The foregoing proposes considerably greater benefits thaa T A** already being enjoyed by our employees. The coot to employees hM again been materially reduced. And the Company is obvicuaiy to-, creasing very substantially its current coats and fature obiigetiona. It should be noted: k Substantially greater benefits are provided. 3. The sound principle of employee sharing in the coot ia fttningd. ,3. However, no increase in present employee payrfieate towardo ton term insurance coverages will be required foe any member pratently covered under the Company Group Life Insurance Fte. and either MBA or Health Insurance Plan (assuming adjustment of the present Company-approved Health and My Flafo). Actually costs to employees toward toe new Group Life. Accidental Death, Sickness. Insurance. Hospitalisation. fiurgiMt and Maternity Benefits Plan will in most cases be ngmAeantiy smaller than they are presently paying toward their corresponding coverages. Also, future pensioners will pay nothing far their life insurance benefits, whereas at the present base they mute —pay at the rate of $1.30 per month per SI,OOO. The waiver of contributions during sickness has been noted above. Thue, despite ths inert-td no oifinm stances is a reduction in pr—ont tako-hnmn piss (with a minor ogeeptton for otnpfoymt in a small afie (froup). Ptinthp case of some plans rocently nsfiotiated. 4. As a result, the added coot to the Company io substantially more than the entire cost of additional improvements. The Company is assuming roughly two-thirds of the subsequent operating cost of toe Group Life, Accident, fiidmrea. Hospitalisation, Surgical and Maternity Benefits insurance pragmas, and reducing employees’ own present payments far their share, (which in effect inersasss their net take-home pay)- Alto there te a sl6 million transition expense that muot be met on account Os the new life insurance feature providing far centtotiatfoti as toteto ance after age 65 for men (60 for women) with ao further emgfoyoe contributions. Os this amount, about half trill be paid from aoaMbutiora alreody collected under toe present gdditioanl guqp fife iasuraace plan, which have been held ia reserve far just ouch aptitpore. The other half must be paid ra fresh tap tnee by the Compagy. The parent Company put $33 millioa into the perafoa sand test year. There will be about $350 million ia the faad mt July LlfiM It io presently estimated that more than $M milloti additiMkci kg the parent Company will be needed to property fund the pact Oteto ice of our employees, in addition to maUag proper cumat payments into toe fund. aH to the end of keeping tita sand aCtiMftffo sound. „ • We will not know the coot of the gropasid pgraioa and faa«oaae program until we have had experienqe onto M. Hrosroor, aur otefe „ matre indicato that thr oror-all coot at the porafen and irauraaae program will bo lorn than one-third by ffte oropfarooo and abre than two-thirdt by thr Cantpaqp. •ns a a jnmwuto aem uaraieto sftsjlOvaSgi

PVDAT. JtTMI N. 1650