RETIREMENT INCOME SECURITY FOR EMPLOYEES ACT, 1972

HEARINGS

BEFORE THE

SUBCOMMITTEE ON LABOR

OF THE

COMMITTEE ON

LABOR AND PUBLIC WELFARE

UNITED STATES SENATE

NINETY-SECOND CONGRESS

SECOND SESSION

ON

S. 3598

TO STRENGTHEN AND IMPROVE THE PROTECTIONS AND INTERESTS OF PARTICIPANTS AND BENEFICIARIES OF EMPLOYEE PENSION AND WELFARE BENEFIT PLANS

JUNE 28 AND 29, 1972

PART 3

Printed for the use of the Committee on Labor and Public Welfare

82-079 O

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1972

GENERAL BOOKBINDING CO.

2201

CHRONOLOGICAL LIST OF WITNESSES

WEDNESDAY, JUNE 28, 1972

Willis, E. S., manager, employee benefits, General Electric Co., on behalf of
the U.S. Chamber of Commerce, accompanied by Andrew A. Melgard,
U.S. Chamber of Commerce committee executive_-_
Root, Charles D., Jr., vice president and director, Towers, Perrin, Forster &
Crosby, Inc., accompanied by Mario Leo, manager, Research Depart-
ment

Bret, William N., Jr., vice president, A. S. Hansen, Inc---
Savitz, Samuel J., president, American Society of Pension Actuaries, ac-
companied by Solaman G. Lippman, counsel_

Thielbar, Henry B., member of the board of governors of the Investment
Counsel Association of America, accompanied by Juris Padeges, vice
president-Law, Scudder Stevens & Clark and Ramsay Potts, counsel to
the association____.

Nyhart, Eldon H., president, Howard E. Nyhart Co., accompanied by
Daryl Dean, director__

THURSDAY, JUNE 29, 1972

Page

969

992

1035

1055

1076

1085

Biemiller, Andrew, director, department of legislation, AFL-CIO, ac-
companied by Richard Shoemaker, assistant director, Social Security
Department, and Kenneth A. Meiklejohn, legislative representative_-_- 1108
Abel, I. W., president, United Steelworkers of America, AFL-CIO, accom-
panied by Bernard Kleiman, general counsel; Bernard Greenberg, Pen-
sion Insurance Department; Jack Sheehan, director, Legislative De-
partment; and Murray Latimer, actuarial consultant__

STATEMENTS

Abel, I. W., president, United Steelworkers of America, AFL-CIO, accom-
panied by Bernard Kleiman, general counsel; Bernard Greenberg, Pen-
sion Insurance Department; Jack Sheehan, director, Legislative Depart-
ment; and Murray Latimer, actuarial consultant---
American Pension Conference__.

1153

1153

1250

Association of American Railroads

1292

Beirne, Joseph A., president, Communications Workers of America, AFL-
CIO

1314

Biemiller, Andrew, director, department of legislation, AFL-CIO, accompanied by Richard Shoemaker, assistant director, Social Security Department, and Kenneth A. Meiklejohn, legislative representative_ Prepared statement (with attachments).

1108

1146

Bret, William N., Jr., vice president, A. S. Hansen, Inc___
Corporate Fiduciaries Association of Illinois_

1035

1273

Griffin, Hon. Robert P., a U.S. Senator from the State of Michigan__
Hartke, Hon. Vance, a U.S. Senator from the State of Indiana.......

1206

1198

King, Stanley L., Jr., assistant vice president, Human Resources Develop-
ment, American Telephone & Telegraph Co. (with attachment)_
Lee, Toomey & Kent law firm, Washington D.C., July 5, 1972.
Mantler, Marshall J., managing director, Bureau of Salemen's National
Associations

1217

1326

1259

McGovern, J. B., vice president-personnel, Nabisco, Inc., New York, N.Y.,
July 17, 1972__

1361

(III)

Miller, Morton D., president-elect, American Academy of Actuaries (with attachment)

Page

1241

Nyhart, Eldon H., president, Howard E. Nyhart Co., accompanied by Daryl
Dean, director_.

Myers, Robert J., president, Society of Actuaries, June 10, 1972.
Noble, S. D., president, Council of Profit Sharing Industries, Chicago,
Ill., July 20, 1972-

1253

1303

1085

Prepared statement_-_.

1091

Rolnick, Louis, administrator, ILGWU National Retirement Fund, August 7, 1972__

1323

Root, Charles D., Jr., vice president and director, Towers, Perrin, Forster & Crosby, Inc., accompanied by Mario Leo, manager, Research Department

992

Prepared statement, with attachments..

1002

Prepared statement---

Savitz, Samuel J., president, American Society of Pension Actuaries, accompanied by Solaman G. Lippman, counsel_

1055

1063

Sealy, Albert H., counsel and secretary, Mead Corp----
Thielbar, Henry B., member of the board of Governors of the Investment
Counsel Association of America, accompanied by Juris Padeges, vice
president-Law, Scudder Stevens & Clark and Ramsay Potts, counsel
to the association.......

1255

Tolley, Russell M., chairman of the board, National Association of
Professional Administrators__-
Williams, Hon. Harrison A., a U.S. Senator from the State of New Jersey,
on S. 3598 and related pension legislation, concluding statement----
Willis, E. S., manager, employee benefits, General Electric Co., on behalf
of the U.S. Chamber of Commerce, accompanied by Andrew A. Mel-
gard, U.S. Chamber of Commerce Committee Executive_.
Prepared statement____

Examples of letters received by Senator Jacob K. Javits concerning loss of employees' benefits in multiemployer union pension plans

1117

Hansen, A. S., Inc., a viewpoint on retirement income security for employees act, S. 3598-

1044

Memorandum concerning certain studies cited by various pension consultants

1041

Communications to:

Cummings, Frank, minority general counsel, Committee on Labor and
Public Welfare, U.S. Senate, from I. Goodman, Chief, Pension Trust
Branch, Internal Revenue Service, June 23, 1972__
Goodman, Isadore, Chief, Pension Trust Branch, Internal Revenue
Service, Washington, D.C., from Frank Cummings, minority gen-
eral counsel, Committee on Labor and Public Welfare, U.S. Senate,
June 8, 1972__.

Mills, Hon. Wilbur D., a Representative from the State of Arkansas,
chairman, House Ways and Means Committee, Washington, D.C.,
from Edwin A. Morris, chairman of the board, Blue Bell, Inc., May
17, 1972.

Williams, Hon. Harrison A., Jr., a U.S. Senator from the State of New
Jersey, from:

980

978

1372

Adams, R. L., manager, Employee Security Division, Reynolds
Metals Co., Richmond, Va., July 7, 1972__.

1365

Blasier, Robert D., vice president, Industrial Relations, Westing-
house Electric Corp., Pittsburg, Pa., July 11, 1972__--
Buzhardt, J. Fred, General Counsel of the Department of Defense,
Washington, D.C., June 8, 1972.

1363

1194

Casey, William J., Chairman, Securities and Exchange Commis-
sion, Washington, D.C., May 6, 1972 (with enclosure).
Connolly, Russell G., vice president and secretary, Gulf Oil Corp.,
Pittsburgh, Pa., July 11, 1972___

1170

1364

Erlewine, John A., Deputy General Manager, Atomic Energy Com-
mission, Washington, D.C., June 9, 1972__

1193

Communications to-Contiuned

Williams, Hon. Harrison A., Jr.-Continued

Hickman, Frederic W., Deputy Assistant Secretary, U.S. Depart-
ment of the Treasury, Washington, D.C., June 9, 1972_
Laxson, Russell W., vice president, Public Affairs, Honeywell,

Page

1168

August 8, 1972__.

1375

Martin, John H., vice president, Litton Industries, Inc., Beverly
Hills, Calif., July 26, 1972__.

1369

Mayson, J. D., vice president, secretary, and general counsel,
Dresser Industries, Inc., July 11, 1972_

1366

Morris, Edwin A., chairman of the board, Blue Bell, Inc., Greens-
boro, N.C., June 19, 1972_.

1371

Mullaney, Joseph E., General Counsel, Cost of Living Council,
Washington, D.C., July 7, 1972.

1191

Romney, George, Secretary, Housing and Urban Development,
Washington, D.C., June 15, 1972

1195

Rommel, Wilfred H., Assistant Director for Legislative Refer-
ence, Office of Management and Budget, Washington, D.C.,
June 8, 1972____.

1196

Sagan, John, vice president-treasurer, Ford Motor Co., Dear-
born, Mich., July 10, 1972_.

1362

Talmadge, George E., chairman, Profit Sharing Committee,
Bowes Seal Fast Corp., Indianapolis, Ind., July 20, 1972 (with
enclosure)

Thomas, W. R., vice president, Employees Relations Department,
Phillips Petroleum Co., Bartlesville, Okla., August 1, 1972___
Wall, John R., vice president, personnel, Republic Steel Corp.,
Cleveland, Ohio, July 28, 1972.

1379

1370

1368

Warren, Kenneth A., treasurer, Kimberly-Clark Corp., July 19,
1972

1367

Selected tables:

Private pension plans_-_‒‒‒

985

Trends in corporate wages and salaries, supplements, and after-tax profits, 1946-71, exhibit A-B.......

990