Pension Scheme Designed for Hauliers
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Retirement at 65 : Fixed Contributions : No Medical Examination : R.H.A. Draft Scheme Being Considered AA DVANCE details of the model pension scheme which was approved in principle, list week, by the executive committee of the Road Haulage Association, show that it has attractive points.
The scheme has been drawn up as one which can be recommended for use by members of the Association, to whom, because of certain special features, it will be confined. Its terms arc at present being placed before the area organizations of the R.H.A., whose views on the scheme will be considered by the national council at their meeting on May 10.
The inauguration of the scheme is contingent upon at least 1,000 employees agreeing to take part in it. That is why its acceptance by the areas is important.
It is recognized that some hauliers already have in operation pension' schemes which suit their own purposes. The model scheme has been devised for the benefit of those who have not and would like to inaugurate one designed to meet the specific needs of the road haulage industry.
Pension or Death Benefit
The scheme provides for retirement at the age of 65 years, although employees may retire before or after that age, in which case the pension will be either reduced or increased. Apart from pension benefit, there is a death benefit if an employee dies before retiring: There is an optional arrangement whereby additional pension benefit can be given for years of service before the inauguration of the scheme. The employer has to pay for this past service.
The scheme is contributory and premiums are payable by the employer and employee monthly 'in arrear,
The .pension increases with years of service, but not with advances in pay. It is calculated by multiplying years of service by a certain fixed sum. If the employer chooses to take into account past service, the fixed sum used in calculating the "benefits for those years is -smaller than the amount by which service from the date of inauguration of the scheme is multiplied.
One of the attractions of the scheme is that employer's and employee's contributions are fixed throughout the period of service, so that each knows in advance his commitments. The employer's contribution is, however. graded according to the age of each employee on entry into the scheme.
Evidence of the health of employees need not be given, but each must be actively at work when the scheme starts. An employee who voluntarily gives up his job will be paid back his contributions in full and the employer will receive 95 per cent. of his payments. .
In certain circumstances, such as the dismissal of a worker through no fault, the haulier would be obliged to pass on to the employee the benefit of his (the employer's) contributions. The employee would have to take his own and his employer's contributions as a deferred pension, and not as a cash
SUM.
War Risks
Civilian war risks are fully covered v ithout extra premium.
A pension is payable for five years, whether or not the employee lives for that period after retirement, and thereafter continues as long as he survives.
Employees' contributions rank as life-assurance premiums and may be set in full against liability for income tax. Employers' .contributions are also a charge against income tax.
No figures have been released to show the cost of the scheme.
If it is widely accepted, it should do a great deal to create stable conditions of employment in road haulage and should help to spike the guns of those who, for political reasons, try to cause discontent among workers. It would also place independent hauliers ahea,d of British Road Services in the matter of conditions of employment.