About half of the supplemental plans provide for flat amounts of pension while in the remainder, the pension varies with length of service. The Greyhound plan is the only one providing for both a varying pension and for a minimum pension. The Central States Trucking plan is unique in that it provides for a relatively high amount ($90 per month) for the first 5 years after retirement and for a substantially smaller amount thereafter.

Under all plans, the amount of pension is supplemental to and is not affected by the amount of benefit under the social security system. The Greyhound plan provides for a higher prenormal benefit at the option of the employee, with a reduction when social security benefits become available. Similarly, there is no restriction in the railroad system on the simultaneous receipt of retirement benefits under the social security system based on nonrailroad credits, as long as the "overall social security minimum guarantee" does not apply.

Very few of the plans provide for vested rights to retirement benefits, and these are for the most part the contributory plans. Generally, under the plans, rights to pensions vest only after retirement, and only to the extent that funds are available to pay them. Rights to pensions are usually based on continuous or near-continuous service; breaks in service almost invariably result in loss of service credits. In contrast, under the railroad plan, rights to retirement annuities vest permanently after 10 years of service, and continuity of service is not a requirement for eligibility.

Only 3 of the 11 plans (the airline plans and that of the Greyhound lines) are fully contributory, in contrast with the railroad retirement system in which both employers and employees contribute equal amounts. One plan provides for employee contributions only for the first 2 years of the plan. Employer contributious are usually on the basis of a fixed amount per unit of covered service. Eight of the plans are of that type, while for the remaining three, employers contribute only the amounts necessary to maintain the plan funds on a second actuarial basis. For the three plans in which employees contribute, comparison with the railroad retirement system is difficult because of the makeup of the contributions formula.

All plans are subject to termination, either on a fixed future date, or at the discretion of the trustees or company, as the case may be, while the railroad retirement system may be modified only by law. Invariably, each plan provides that, in the event of termination, amounts remaining in the trust fund are to be distributed solely to present or future pensioners. None of the plans has a provision similar to the residual guarantee of the railroad retirement system, and none has the same degree of assurance of permanent life as does the railroad system.

The principal features of the 11 plans are outlined in an attached tabular summary which includes, for convenient comparison, comparable information on the railroad retirement system. Except for contribution rates, no information on costs was readily available. An illustrative table showing monthly retirement benefits (including social security benefits) is also attached.

Monthly retirement benefits payable under plans of selected companies (including social security benefits) in interstate transportation and to railroad employees with specified earnings and services

1 Annuity for 1st 5 years of retirement; it is reduced by $67.50 thereafter.

2 Benefits were calculated on the assumption of 160 average hours per month.

3 As of Jan. 1, 1957, maximum years of service for Greyhound Lines' plan was 1712 years; minimum annuity is 50 percent of average wage.

4 Beneficiaries under the Railroad Retirement Act may in addition receive benefits under Social Security Act if qualified under that act.

Maximum creditable compensation under Railroad Retirement Act was raised from $300 to $350 July 1, 1954; annuity was computed using $350 average for 21⁄2 years and $300 average for remainder of service.

NOTE. For purposes of computing benefits, retirement was assumed to take place
on Jan. 1, 1957. Benefits include the amount payable under social security to employee,
but do not include the wife's annuity. The wife's benefit under social security would
be $44.30 in the case of employees with average wages of $250, $49.30 for wages of $300,
and $54.30 for wages of $350. Under Railroad Retirement Act the wife's annuity would
be 12 of amount shown with a maximum of $54.30.

Summary and comparison of selected pension plans in interstate transportation and the railroad retirement system

Summary and comparison of selected pension plans in interstate transportation and the railroad retirement system-Continued

percent (percent-
age for service after
June 30, 1953,
ranges from 1.35
to 1.50 percent for
drivers and women
retiring at ages
60-64).
Normal annuity re-
duced on basis of
age at retirement;
may elect larger
amounts up to age
65 to be reduced at
that age by social
security benefit.
For occupational dis-
ability: double nor-
mal rate on basis of
earnings to date,
subject to reduc-
tion at normal age;
for total disability,
50 percent of aver-
age earnings in last
year (up to $200)
less other disability
benefits.
Minimum normal
rate 25 to 50 per-
cent of last 5 years'
average; minimum
occupational dis-
ability benefit
is $75.
Optional increase in
prenormal benefits
with reduction by

(b) Prenormal.

Normal amount less actuarial reduction.

Not applicable.

Not applicable.

Normal benefit less
11⁄2 of 1 percent for
each month under
age 65.