Newspapers / Piedmont Aviation Employee Newsletter / Oct. 1, 1963, edition 1 / Page 6
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PAGE SIX THE PIEDMONITOR OCTOBER, 1963 YOU ASKED . . . (Continued from Page One) make up the difference. Since Piedmont pays the full amount to provide this normal level of retirement income, the' compulsory contributory plan is unnecessary. Piedmont is one of the few airlines that does this without cost to the employee. In a voluntary contributory plan the employee can make pay ments in addition to the com pany payments so that his ulti mate retirement income will be higher. In effect, this type plan is nothing more than a savings account. Since several employees had indicated an interest in a volun tary contributory plan, much consideration was given to amending the present plan or establishing a new, separate plan to accomplish this objective. tirement for those years we worked prior to our 25th birth day? No. An employee must have been with the company at least two years and must be at least 25 years old before he or she starts receiving credit toward re tirement income. 11. Suppose an employee with ten years of service leaves the company at age 41. When will he receive his retirement benefits? This employee can begin re ceiving monthly pension pay ments from his Piedmont Pen sion Plan — a. Anytime he becomes disabled. b. Upon reaching age 55 and notifying Pied mont that he wants early retirement. c. Upon reaching age 65. Here's How To Determine Amount Below is an example of how retirement benefits can be computed. The following figures show what an employee who has served 15 years would receive in retirement income from Piedmont, based on the amount of money he earns a year. PAST SERVICE Years creditable service prior to July 1, 1956 5 Years Annual compensation during 1955 $3,600.00 % of 1 per cent of $3,600 equals 27.00 Creditable service (5 x $27.00) equals 135.00 Monthly benefit* 11.25 FUTURE SERVICE Years of service after July 1, 1956 10 Years Average annual compensation $4,800.00 % of 1 per cent of $3,000 equals 22.50 1-V2 per cent of $1,800 equal 27.00 49.50 Years of creditable service (10 x $49.50) equals 495.00 Monthly benefit* 41.25 TOTAL MONTHLY VESTED BENEFITS FOR RETIREMENT Past creditable service (prior to 7-1-56) $ 11.25 Future creditable service (after 7-1-56) 41.25 Total $ 52.50 *See page 12 of Piedmont Employee Retirement Plan booklet. Pension experts advised that this was impractical and, consid ering all factors, the employee would be better off to make whatever payments he wanted to in savings accounts, U. S. Sav ings Bonds or even certain high quality stocks or bonds. 7. I find the retirement book let difficult to understand. Does Piedmont have any plans under way to revise the booklet and ex plain our benefits in layman’s language? Yes, the booklet will be revis ed soon to include the new vest ing privileges and we will at tempt to review it and simplify it wherever possible. 8. I started with the company when I was 20. I’m now 38. How many years do I now have cred ited toward retirement? 13 years. Your retirement be nefits start at age 25. Thus 25 minus 38 is 13. 9. If I have ten years service with the company and leave it when I am 39, w'ill I receive any retirement benefits from Pied mont? No. The provision is that in order to leave the company and still get benefits upon retire ment, you must have been with the company five years and be at least 40 years old. 10. Many of us started with Piedmont before age 25. Would we receive any credit toward re- 12. Will people who left the company prior to approval of the new vesting privileges receive their retirement benefits, or do the new privileges apply only to the persons who leave Piedmont after July 17, 1963, the day the Directors approved the new pri vileges? The new provisions apply only to employees working for Pied mont July 1, 1963. Persons who left the company at any time prior to that date would not re ceive benefits upon retirement. 13. Suppose I want to retire from Piedmont at an age earlier than age 65? Can I do it? Yes. As the retirement book let says, if you are 55 years old or older, upon request you can retire from Piedmont and still receive monthly retirement be nefits for the rest of your life. Of course your benefits will be less per month than they would have been if you had stayed with the company until you were 65. This early retirement provision applies also to your new vesting privileges. For example, if you left Piedmont (being at least 40 and having 5 years of service) and went to work for XYZ Corp oration and decided to retire from XYZ at age 55 or 60, you could start getting your old re tirement benefits from Piedmont at the same time. /Jnou4iJ(i PROMOTIONS Katherine Cox to Sr. Steno. Katharyn Spainhour to Jr. Sec. T. M. Kersey to Ld. Mech. W. H. Poindexter to Sr. Spec. L. L. Hubbard to Sr. Spec. T. F. Sizemore to Jr. Mech. D. A. Griffin to Sr. Spec. A. S. Rinehardt to Sr. Mech. R. D. Williams to Mech. R. R. Belsick to Mech. Spec. W. F. Edwards to Jr. Mech. D. P. Holloman to Jr. Mech. H. V. Chambers to Jr. Mech. H. W. Kelly to Jr. Mech. A. E. Peoples to Jr. Mech. TRANSFERS L,. T. Ramsey, ATL to CLT P. R. Bostick to CRW W. L. Downey to ATL T. W. Steelman to DCA J. T. Treadway to TYS NEW EMPLOYEES E. W. McKinney, Oper. Agt., RIC Dorothy Muller, Res. Agt., FAY Carole Roub, Agt., DCA Harold Carter, Oper. Agt., RCA William Thomas, Ramp Agt., RCA J. T. Burger, Oper. Agt., SDF E. P. Capps, Lineman, ORF-FB W. O. Radford, Oper. Agt., PHF M. L. Thesing, Res. Agt., CVGT C. J. Thomas, Oper. Agt., SDF W. A. Wirt, Oper. Agt., DCA J. P. Angel, Acct. Clrk., INT-A W. N. Horn, Jr. Mech., INT J. C. Howard, Jr. Mech., INT-FB D. C. Martin, Comm., ROA William McFalls, Oper. Agt., DCA PILOTS AID . , . (Continued from Page Two) civic duty the pilot group should assume.” Idea Accepted Encouraged by Piedmont pi lots, Ivey attend Council meet ings of each airline group. More information concerning the pro ject was given pilots through a series of fact sheets. After three months of talks, letters, calls, and coffee shop sales pitches, the individual airline Councils ac cepted the idea. Highlights of the pilot-spon sored program are to include eight solo flight scholarships yearly to be awarded to out standing cadets for achievement and leadership. Thirty minutes orientation flying per cadet will be provided each month. Funds are allocated to cover the expenses of local high school teachers while attending USAF- CAP-sponsored workshops, in order that the educational por tion of the program may be taught in the local high schools. 20 YEARS SERVICE Herbert J. Brendle, Sr. Mech., INT-M, September 15 Jason F. Rowe, Forem., INT-FB, September 22 Kee C. Rowe, Asst. Supt., INT- FB, September 22 John F. Johnson, Sales Rep., INT-FB, September 30 15 YEARS SERVICE Compton K. Lane, Sr. Spec., INT, August 16 Arthur M. Whittaker, Sta. Mgr., ORF, August 16 Paul S. Snell, F/0, INT, Septem ber 16 William C. Cook, Sta. Chf. Mech., ATL, September 27 Joseph D. Hoots, Supt., Acc. O’Haul, INT, September 28 10 YEARS SERVICE Laura A. Talbert, Comm., INT, August 3 Alfred R. Cumbie, Agt., ROA, August 10 Barney L. Padgett, Sr. Mech., ILM Edward L. McMillan, F/0, ORF, August 31 Dixie Holt, Sec., INT, September 8 Joel Baum, Porter, ORF, Sep tember 9 Donald M. Shanks, Sta. Mgr., DCA, September 27 5 YEARS SERVICE James Y. Spencer, F/0, INT, August 5 J. B, Ramey, Sr. Spec., INT, Aug ust 11 Nettie B. Coe, Key Punch Oper., INT, August 25 Margaret J. Calhoun, Agt., ORF, September 4 James W. Starr, Agt., TRI, Sep tember 15 Howard B. Crites, Agt., DCA, September 16 Marilyn R. Eastes, Comm., DCA, September 16 Russell J. Holliday, Sr. Mech., ROA-M, September 16 C. H. W i d e n e r. Asst. Crew Coordn., INT, September 16 Thomas F. Young, Ld. Agt., ATL, September 18 R. L. McAlphin (left), Manager-Schedules, and J. A. Shulley, Manager- Tariffs. Two Positions Created From One Two new positions were creat ed out of one department at INT recently and R. L. McAlphin and J. A. “Al” Shulley were named to fill the posts. Shulley, former Assistant Di- rector-Tariffs and Schedules, has assumed the title Director-Ta- riffs, and McAlphin, previously Manager-Space Control, will now act as Director-Schedules. McAlphin has been with Pied mont since 1955 when he was hired as an Agent in Charlotte. He was subsequently, promoted to Chief Agent, and in 1960 trans ferred to Winston-Salem where he was promoted to Manager- Space Control. A native Tarheel, before coming to Piedmont he attended the National School of Aeronautics in Kansas, and be fore that served with the U. S. Air Force in Korea, and was dis charged as a Staff Sergeant. Shulley joined Piedmont early in 1956 as an Agent at Charlotte. Late in 1959 he was promoted to Chief Agent and served in that capacity at Washington. In the fall of 1961 he was transferred to Winston-Salem and promoted to Assistant Director-Tariffs and Schedules, a position he has held until the present. POTTER’S OPINION . . . (Continued from Page One) cent of all passengers boarding their flights in eastern North Carolina. “What advantages are to be gained by Wilson and Green ville? Wilson will derive little if any. From Wilson to the present Rocky Mount airport is 23 miles; it will be 22.3 miles to Toddy. The requirements of Golds boro passengers and the Depart ment of Defense at Seymour Johnson Air Force Base in rela tion to an airport at Toddy were dealt with and, said the decision, “Considering the superior qua lity of airline transportation now available at Raleigh-Durham as opposed to what could reason ably be expected at Toddy, con sidering also a difference in driv ing time of only 20 minutes and that it will be substantially cheaper to fly from Raleigh, it is difficult to understand what circumstance one would choose to fly from Toddy. Prom Raleigh “Accordingly, it is not found reasonable to assume that 80 per cent of the Goldsboro passengers now using the Seymour Johnson Air Force Base will go to Toddy; it appears more reasonable to as sume that they will all go to Ra leigh.” Examiner Potter cited the fi nancial effect to Piedmont of centralization of service at Tod dy, and noted that Piedmont esti mated it would result in a loss in revenue of $70,421, increasing the company’s “Brea k-Even- Need” by that amount. Eight Recommendations On the basis of the entire rec ord of the proceedings. Exami ner Potter issued the following findings in his recommendation to the Civil Aeronautics Board: (1) A centrally-located area airline service airport would not be accessible to most users of airline service in eastern North Carolina, the Toddy proposal would impose substantial incon venience upon approximately 80 per cent of the airline passen gers in eastern North Carolina; (2) The proposed airports at Toddy and Town Creek would not be “all-weather airports, their capability to provide reli able airline service would be less than that of Stalling Field and Seymour Johnson Air Force Base, and neither would provide for use of larger, more modern equipment; (3) It is not established that a centrally-located area airline air port for eastern North Carolina would provide greater frequency or greater quality of airline serv ice; (4) Fewer passengers would use a centrally-located airport than presently use the three lo cal airline service airports in eastern North Carolina, it being estimated that only two-thirds of the present traffic would patro nize the Toddy airport; (5) Centralization of air serv ice at one airport would not pro vide for more economical air line operation; it is estimated that Piedmont would lose over $70,423 if eastern North Carolina service were centralized at Toddy; (6) Centralization of air serv ice at one airport will substan tially increase the cost of ground transportation and airline fares for most of those now using air line service in eastern North Carolina; (7) The public convenience and necessity do not require the amendment of the certificate held by Piedmont Aviation, Inc., so as to provide scheduled air line service to eastern North Carolina at one or more central ly-located airports. Potter’s decision is of course not the final CAB decision, and the matter is subject to further procedural steps, including oral argument before the Board and issuance by the CAB itself of a final decision in the matter.
Piedmont Aviation Employee Newsletter
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Oct. 1, 1963, edition 1
6
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