Analysis of 36 plans with vesting after 10 years of service or less- A comparison of 51 plans with no vesting or later vesting and 36 plans Monthly normal, early, and disability retirement benefits and prevalence of death benefit provisions of private pension plans, November 7, 1971. FOREWORD Pursuant to the authority of S. Res. 360, 91st Congress, 2d Session, and S. Res. 35, 92nd Congress, 1st Session, the Subcommittee on Labor has undertaken a comprehensive study of the private pension plan system in the United States, "with special emphasis on the need for protection of employees covered," according to the language of S. Res. 35. One important aspect of the comprehensive study has been a survey and analysis of approximately 1500 private plans, selected on the basis of a statistically-designed sampling technique, from 34,000 plans on file with the U.S. Department of Labor. These plans include more than half the total number of private plan participants in the country, and are representative of a cross-section of American industry, as well as of other important plan characteristics. From the plans in this survey, two preliminary staff analyses have been made which form the basis of this report. The first analysis, released on March 31, 1971, is a study of benefits and forfeitures in 87 private pension plans. This analysis discloses that the number of employees in the 87 plans who did not receive benefits or vested rights since 1950 greatly exceeded those who did receive benefits or vested rights. It demonstrates the adverse impact of restrictive plan rules on employee expectations of benefits. The second staff analysis, released on November 7, 1971, is based upon a survey of 764 private pension plans. This analysis discloses that the median normal, early, and disability retirement benefits paid by private plans during 1969-1970 were less than $100 a month. When the income represented by this figure is coupled with the median social security monthly benefit, the average amount of retirement income still falls short of the $241 monthly minimum which the Bureau of Labor Statistics has pronounced as necessary for the bare subsistence of a retired urban couple. This second study points up the inadequacy of the retirement income received by the typical pensioner. Additional staff analyses of the private pension plan system are now being prepared, and will subsequently be published by the Subcom mittee. HARRISON A. WILLIAMS, Jr., Chairman, JACOB K. JAVITS, Ranking Minority Member, |