THE ANACONDA COMPANY PENSION PLAN FOR DAY'S PAY EMPLOYEES APPENDIX A Statement of Actuarial Method And Assumptions Actuarial Method The principal funding method used in the valuation is the accrued benefit method (the "unit credit" method as set forth in Part III (D) of the Bulletin on Section 23(p) (1) (A) and (B), issued by the Internal Revenue Service under date of June 1, 1945). All of the benefits provided by the Plan are valued using this actuarial method, with the exception of the disability, spouse's and 75/80 benefits. The estimated cost of these benefits is determined on the "one-year term" cost method. A reserve is maintained for each such benefit equal to the accumulation of the unused one-year term costs, up to a maximum of five times the 4% per annum. The Group Annuity Table for 1951, set back one year. Employees with less than five years of service are excluded from the valuation as a form of turnover discount. At age 65 or at the valuation date, if older than 65, Rate of disability - 1955 UAW-CIO Table. The benefit None. 1% per year for eligible employees up to age 55, 1% 80% of eligible employees are assumed to have a spouse Page 19. Senator JAVITS. This plan covered their hourly workers. According to their own record, that plan apparently had $107 million in liabilities for all accrued vested benefits and $33,814,000 in plan assets as of December 31, 1969. The $107 million figure is as of January 1, 1970. Do you have the pension plan booklet which shows the composition of the pension board, Mrs. Kwek? Mrs. KWEK. I don't know whether it is spelled out who the board is. As I said, I have this folder here. The CHAIRMAN. We have a copy of it and the Anaconda retirement plan. Mrs. KWEK. Yes; I have that. But I don't know if it is spelled out who was on the board. Senator JAVITS. In any case, Mr. Chairman, I ask unanimous consent that the record include the pertinent provisions which relate to the witness's testimony. The CHAIRMAN. All right. I think at this point, too, we will include our invitation to Mr. Walter Mayer, who is the assistant pension plan administrator of the Anaconda Corp., inviting him to appear, and his letter of reply, in which he states that the company will not appear to testify. (The information referred to follows:) On March 1, 1971, by Senate Resolution 35, the U. S. Senate ordered the Senate Subcommittee on Labor to cunduct a study of the private pension system in the United States, with special emphasis upon the need for protection of employees covered by these funds. As you were advised on July 9, 1971 by a staff member of the Senate Subcommittee on Labor, Mrs. Iris Kwek of Detroit, Michigan, had informed the Subcommittee of alleged hardships resulting from inability to qualify for a pension under your pension; lan. These were discussed with you in order to ascertain appropriate explanation in response to the difficulties recited. The complainant has been invited to testify before the Subcommittee on Labor on or about July 27, 1971, on hearings to be held pursuant to the Senate study of private pension plans. It will be for the purpose of presenting the problem alleged. Accordingly, the Subcommittee on Labor similarly invites your organization to designate a representative to appear to testify witn respect to your pension lan benefits relating to Mrs. Kwek, and matters alleged by the complainant. It would be a preciated if you would indicate expeditiously whether you will appear. In the interim, please forward a copy of the pension plan and such ther publications which you issue relating thereto. Your assistance is appreciated. Sincerely, MTN: 1t 66-500 O-71-pt. 1—17 Mario T. Nɔtɔ |