Decatur Daily Democrat, Volume 53, Number 208, Decatur, Adams County, 3 September 1955 — Page 6

PAGE SIX

for G»E Employees, their families and the Community A 5-Year Program With 32 “Better Living” Features

7 FEATURES FOR BETTER PAY | 1 Better general wage increaaea—The Company is proposing general annual wagey increase# of <a> 3 per cent per year for each year during the first three years of •' the contract and <b> an even greater increase for each of the fourth and fifth years of 3.48 per cent and 3.46 per vent respectively. 2 Better minimum increase*—While the Company proposes to follow its customary practice of making these annual wage adjustment* on a percentage basis, no employee will receive an annual increase of less than an additional 4.5 cents per hour in each of the first three years and five cents per hour in each of the fourth and fifth years. 3 Better REAL pay—The purchasing power—real pay—of the regular annual wage adjustment would be protected by a cost-of-living escalator clause, with a September, 1355, floor but with no ceiling. Better "take-home” pay—An unusual feature in the new pension proposal offers most General Electric employees even higher take-home pay than the wage proposals in themselves would indicate. Under the Company’s present pension program, employees contribute two per cent of their earnings up to $4,200 and ftve per cent beyond that. The Company proposal would eliminate the first one per cent of this contribution now and the second one per cent at the end of three years. Thus over and above the wage increases offered —all employees now participating in the Pension Plan will get the equivalent of another one per cent tax-free increase in pay for the first three years and the equivalent of a second one per cent tax-frea increase in pay for the last two years of the contract. 5 Better base rates for higher classifications of dayworkers and workers on equivalent graded salaried jobs—ln addition to the general wage increases, certain daywofkers and workers on equivalent graded salaried Jobs would receive special pay adjustments on a specific schedule. 6 Better progression schedules for salaried employees—Salaried employees bn Jobs having Job rates Grade 6 and below would reach their Job rates faster under the Company’s proposal for accelerated salaried progression schedules. 7 Better premium pay—The Company has two proposals for liberalising the contractual provisions on premium pay. One proposal would pay time-and-a-half for the first eight hours of a new wort shift, after a temporary shift change with certain exceptions. Another proposal' would pay double time for time worked in excess of 12 hours a day. 9 FEATURES FOR BETTER PENSIONS 1 Better Minimums for retirement at Social Security age—Beginning with the effecive date of the settlement, employees retiring under the Pension Plan with 15 or more years of full time credited service would receive, after the attainment of eligibility for Social Security, a guaranteed minimum pension of $2.00 per month for each year of credited service up to 25 years. In 1958 this minimum would be Increased to $2.25. These minimums would be in addition to any Social Security benefits. ~ Better minimums for optional retirement before Social Security age-Employees — wh o retire between the age of 60 and the age when they will be eligible for Social Security (now 65) would be guaranteed during, the interim period a minimum pension of $3 per month for each year of service up to 25 years. Thus, the new guaranteed minimum for future optional pensioners would help to bridge the gap between the age of retirement and the age when they begin to receive Social Security benefits. Upon reaching Social Security age, those retiring under the new provisisions would receive the guaranteed minimums of $2.00 452.25 by October 1. 1958) as described above. 3 Better supplements for optional retlrement-All employees with 15 or more years of credited service, now retiring under the Company’s proposed plan would from the age of 60, to the age when Social Security normally starts, have supplemental monthly payments of $55 during the interim period. This >s an increase of $lO over the present supplemental payment. 4 Better minimums for disability retirement-Employees entitled to disability pensions and now retiring under the plan would receive the minimum pension of S 3 00 for each year of service up to 25 years-plus the supplemental payment. At 15 years of service the disability income would be a minimum of SIOO.OO under the Company's proposal. — Better arrangement, for beneficlarie.-The Company proposes to guarantee a 5 6-y® ar P®nslon to the beneficiaries of any employee who dies after 15 years of service under the plan. 6 Better verting privlleges-The vesting privilege, which has been a feature of the t'nneral Electric plan for many years but is still relatively novel in the pension X JTXX «... "UU ** » 7 P0... following: employees hired up through age 25 would have vesting rights after 2 years of credited service; employees hired between the ages of 26 and 35 would, for vesting rights, require one less year of credited service for each year of age at time of hiring tn excess of 25: employees hired at age 35 or over would reqmre only 10 years of credited service for vesting. 5 • ' . •— ' ' . • ' . Agreement on this program has already been worked out by the c ™’ mtttees of many union.. Most of the features became effective August 15 for the GE employees in these unions. They can become effective for G-E employees in other argaining units where current negotiations are appropriately concluded. fk."'' ' 1 #■■■

THE RECATHR DAILY DEMOCRAT. DECATUR, INDIANA

7 Better crediting arrangement, for eligibility —It is proposed that the first year of General Electric service be. credited for pension benefits to employees who join the Flan promptly after their first year at General Electric. For employees hired within about the last 10 years under the existing arrangement, the first year of service is a waiting period and is not credited for pension benefits. Thus, the new proposal, while it does not now increase calculated pensions, would reduce by one year the eligibility period for disability pensions, guaranteed minimums, vesting and supplemental payments. These benefits would be available one year earlier than in the past for such employees. Better pension opportunities for women —The Company s offer would raise the normal retirement age of women from 60 to 65, thus giving women the opportunity to acquire larger pensions. a Better benefit, plus protection of existing privilege, for pre.ent women participant.—One part of the proposal, which gives women the opportunity to wort until age 65, would protect women now participating in the present plan in these rights: a. The .present optional retirement as early as age 55. b. For those with 15 or more years of service who elect to retire before age 60, the present guaranteed minimums would remain. c. The present supplement payment of $45 provided for optional retirement before 60 will continue to be provider to those with 15 or more years of credited - service. y d. Age 60 will continue to be the basis for calculating pensions built up to the date of change. The early reduction factor of 4% would apply only for each hi year of retirement prior to age 60. K.' Women with 15 years or more of service under the plan who retire at age 60 or later would, until the date they become eligible for Social Security, receive the new minimum of $3.00 per month for each year of credited service under the Plan as well as the new supplemental payment of $55 a month for the interim period. Then, when Social Security normally starts, the new $2.00 minimum ($2.25 after 1958) will be payable to those eligible. 3 FEATURES FOR REHER LIFE, DISABILITY, BENEFITS Better Life Insurance-—The Company proposes to increase life insurance bene--1 tits from about 1(4 to 2 times«-straight-time annual earnings an increase of 1/3 to a new high. v .'777~ 7 «>■ «-. . ■> ’ ' 2 Better Accidental Death and Dl.memberment Insurance —The Company offer would raise the maximum here from a flat $2,000 to an amount equal to straight time annual earnings up to a new maximum of $20,000. In case of accidental death, the total benefit consisting of life insurance plus accidental death insurance would be equal to roughly three years pay. 3 Better Benefit, for Slckne.. and Accident.—The Company has proposed to increase the maximum in. this area from a weekly benefit of $40.00 to $85.00, one of the highest maximums in industry. New weekly minimums are also proposed of $32.50 (and $35.00 for earnings of $3,000 or more). BETTER HOSPITAL SURGICAL and MEDICAL DENEFITS (Non-Occapalional) The Company offer includes two alternate plans for hospital, surgical and medical coverage. Both plans would, after appropriate deductibles, provide major benefits in catastrophic cases —the areas of greatest need. , The first plan—the "Corridor” plan—would provide initial hospital and surgical benefits through an improved standard hospital and surgical plan; then, after the payment of a SIOO "Corridor” amount by the employee, 75 per cent of excess expenses (whether they are “hospital and surgical” or "all other medical expenses ) would be paid by the Plan, with payments going up to $5,000 for any single mediof $7 500 for a single medical expense period, and up to $15,000 for a lifetime. The second plan, the Comprehensive Medical Expense Plan would, after small deductibles ($25 for. hospital, surgical and diagnostic X-ray expenses. SSO for “all other medical expenses”) make payments in whole or in large part (85 per cent or 75 per cent, depending on the type of expense) for all excess expenses up to a total benefit of $7,500 for a single medical expense period, and up to $15,000 for a lifetime. The higher maximums of the Comprehensive Plan would approximately match the totals 67 the first plan’s initial benefits plus the first plan’s benefits for “excess expenses. The benefits under both Plans would be available for each employee and each dependent, and provisions in both plans would permit reinstatement of lifetime maximums, upon demonstration of insurability. The essential difference between the two plans is this: By dropping the Corridor plan’s basic layer of hospital and surgical .benefits (with the exception of maternity benefits which are the same under both plans), the- “Comprehensive plan would offer broader and more flexible coverage. 6 REHER FEATURES IN THE “CORRIDOR” PLAN — Better benefits for dependents—lnasmuch as the out-of-pocket costs of a catas--1 trophe are about the same, regardless of what member of the family a catastrophe strikes, catastrophe insurance should offer the same benefits for all members of the family in order to meet its objective. Therefore, the Company has offered substantial improvements in benefits for dependents by means of two broad approaches: (a) expanding the definition of dependent, and (b) providing the same benefits for dependents as for employees. a Better flexibility to meet varying local cost., condition, and practice. In order so provide flexibility to meet varying hospital costs and medical practices, the proposed plan (a) permits employees to elect any one of three different specified benefits for hospital room and' board, (b) provides supplemental benefits to accommodate so-called “inclusive rate" arrangements and (c) provides for diagnostic X-rays outside of hospitals. ,

a Better hospital benefit!—Up to $9lO for hospital room and board for any one case plus up to $1,600 for hospital extras are offered to both employees and dependents by the new proposal. The proposal would pay to participating employees and their families the cost of a semi-private room up to sl3 per day for 70 days for any cause, with options of electing maximum benefits $3 higher (to sl6) or $3 lower (to $10) with appropriate adjustment of employee contributions. For special hospital services, the proposal offers both participating employees and dependents SIOO —slso at the end of three years—plus 75 per cent of the next $2,000. 4 Better benefits for hospital care fo^infants —Up to $5 per day from birth for infant care while the mother remains in the hospital is offered in\the new plan. In case of complications, or for hospital expenses incurred by the infant after the mother leaves the hospital, regular benefits would be paid. 5 Better maternity coverage for employees and dependents —The proposal would increase the maternity benefits for dependent wives from SIOO for normal delivery to $150; from 1150 tor a Caesarean operation to $226, and from up to SSO for a miscarriage to up to $75. The plan would also pay (up to the plan’s maximum of $5,000) 75% of covered medical expenses in excess of the sura of the applicable benefits plus $l5O. 6 Better benefits for surgical operations—Up to $250 —instead of the present $175 —is offered under the plan for both employees and dependents. 6 BETTER FEATURES IN THE “COMPREHENSIVE” PLAN 1 Better benefits for dependents —Like the “Corridor” plan, the “Comprehensive plan expands the definition of a "dependent” and makes benefits available to them* on an equal basis with the participating employee. 2 Better flexibility to meet varying local costs, conditions and practices — The “Comprehensive" plan provides coverage for almost all types of medical expenses which are reasonable and necessary. The initial deductibles in the "Comprehensive plan permit tailoring the benefits to meet Individual needs. 3 Better hospital room and board benefits—There are practically no rigidly imposed limits on any reasonable and necessary hospital room and board expenses included in the coverage of the plan. For example. If the normal semi-private room rate in a particular locality were S2O. the whole amount could be included in the covered medical expenses. 4 Bettor benefits for hospital cars for Infant*—Here again, the expenses that may be included in the coverage are only limited by the definition of “reasonable and necessary.” If, tor example, the normal hospital nursery charges were $lO per day, the whole amount could be included in the coverage. 5 Better maternity coverage—The benefits here would be the same as those that would be made available under the “Corridor" plan. 6 Better benefits for surgical operations—There is no fixed surgical schedule. Thus there is no limit beyond the bounds of what is "reasonable and necessary” to surgical expenses which may be included in covered medical expenses. 2 FEATURES FOR “MORE FOR THE MONEY” INSURANCE 1 Better benefits? for the employee's money—Because ■ General Electric would pay such a substantial portion of the total cost of the whole Insurance Plan, and because of the "deductible” and “co-insurance” features in either plan for medical expense coverage, employees would get more and broader coverage for their contributions. For all personal benefits, employee contributions would be set at .9 per cent of normal straight time earnings. For all dependent benefits, the employee would contribute an additional 2 per cent of the first $5,000 of annual straight time earnings, y 2 Better benefits for pensioners at NO cost to them after age 65 —Up to $1,500 (instead of the present maximum of $500) for hospital and surgical benefits after age 65 would be available to any future GE pensioner with 15 years of service who has contributed to the General Electric Insurance Plan for aslnany of the immediately preceding years as he was eligible. ' The program would also provide benefits to any pensioner with more than 10, but less than 15, years of service, if he had contributed to the General Electric Insurance Plan as long as eligible during the 10 years immediately prior to age 65. Up to SI,OOO in benefits would be available to him. For the first time, wives of pensioners eligible for the foregoing hospital and surgical benefits would also be covered, but the combined payments to husband, and wife could not exceed the appropriate maximum. 5 FEATURES FOR OTHER BETTER BENEFITS 1 Better vacations —The Company is offering two alternative improvements in vacations: (1) employees-with 10 years but less than 15 years of service Would receive an additional one-half week of paid vacations making a total of two and onehalf weeks, or (2) employees with 11 years of service would acquire an extra day of vacation for each year of service up to a total of three weeks for 15 years of service. Better holiday pay for continuous operations—Under the Company’s proposal aM eligible employees on continuous operations would be assured of 7 paid holidays a year, even though one or more of the holidays should fall on the employee’s day off. 3 Better allowance* for jury duty—The Company proposes to pay hourly employees, regardless of length of service, the difference between straight time hourly earnings and fees for jury duty. Salaried employees, regardless of length of service, would receive their normal salary and the jury duty fee. 4 Better recall rights for long service employees—The Company proposes to extend the recall rights from one year to 18 months for employees with 5 years’ continuity of service and to two years for employees with 10 years' continuity of service. 5 New payments for death-ln-family absences—The Company will pay for time lost, up to three days, because of death in the immediate family.

SATURDAY, SEPTEMBER 8.