Document ykkZnpnp0jp00Z1vBk2mDdE84

tin.** TO: Kr* Amory Houghton, Cfr. ccs Mr. R. E. Waterman Mr. P. P. Hunt Mr. Thomas Waaland FROM: J. H. Al DATBs August 28t 1969 SUBJECT: Pitts orning Benefits Proposal East Friday I met at Pittsburgh, with Mr. Stanley Williams from PPG industries and Messrs. Brittingham, Bierer, Maston and Kelley of Pittsburgh-Coming to review their final proposal for an improved benefits program for their salaried employees. They intend to submit this plan for approval to the Pittsburgh-Corning September Board meeting. Previously extensive discussions of the plan were held here in Corning vith Messrs. Waal and. Hunt, Aanestad and Allen, and similar discussions were conducted with PPG officials. Many revisions from their original proposals have been made as a result of suggestions made by PPG and CGW people. In general the final proposal is somewhat more similar to PPG program* than to CGW^s, and again, in general, is not quite as liberal as CGW's benefit package, but represents a significant improvement over Pittsburgh- Coming' s current program. I recommend approval of the program. The features of the new plan can be summarized briefly as fcTiows: % 1.) Group Life Insurance Proposal allows for more qroup life insurance being available to sallied employees with a plan identical to PpG*s. This plan allows for an choice of a spouse's benefit between the ages of 5 5 ana 55. (CGW spouse'benefit feature is part of our pension plan.) The proposal also allows for an additional choice by employees to carry, entirely at their own cost, 1 < insurance up to age 55 in an amount equal to CG~s la" - WV-11150 Mf. Amory Houghton, Jr. August 28, 1969 Page X - 2.) long Terra Disability A formal long term disability plan is proposed, identical to PPG*8 plan, and similar in many VfSSgfebfcs to what we Will be proposing for CGW for 1970. * Hospital and Surgical Insurance Their basic plan, modified in 1968, is left virtually intact with a few very modest improvefl&hts proposes in the Diagnostic, X-Ray and . Laboratory benefits. Pension Plan Changes proposed in their pension plan will* 1.) Provide the typA***^ since 1953. Updating is based on 1968 actual earnings on base pay only. .2.) Future pension credits will be on a new formula which will-meet government guidelines ror integration and will be based on total earnings. 3.) Early retirement to age 62 without actuarial reduction is iuclT3dydr"` 4.) Currently-retired employees will have their pension increasedvery modestly. 5.) An informal 45% rule is abandoned. (Provided that annual pehiloft plus Sbdial security would -eijual ..at ..least 45% of annual average of last ten year's earnings.) Investment Plan Proposal sets up an employee investment plan similar to CGW's except that company's 50% contribution would be onehalf CGW stock and one-half PPG stock. Cost Total cost, after making higher assumption of interest rat earned by Pension Fund, is about ?65H or 2.2% of the annual salaried payroll cost. JHAsmb