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Organizational Affairs
Organizational Affairs Reference Committee Report The Reference Committee on Organizational Affairs considered the report of the Policy Committee on Organizational Affairs.
Paragraph A of the report is entitled "Vesting Provisions of Pharmacist Pension Plans." The Reference Committee recommends adoption of whole number section 1 under paragraph A of the Committee report and I so move. The Reference Committee recommends adoption of whole number section 2 under paragraph A of the committee report and I so move.
Paragraph B of the report is entitled "Establishment of an APhA Employee-
Employer Relations Board." The Reference Committee recommends adoption of whole number section 1 under paragraph B of the committee report and I so move.
Casimir H. Srutwa, chairman Rollin C. Bridge D. Stephen Crawford Pershing D. Frederick Metta Lou Henderson Robert Schwartz
[The House adopted by voice vote the Reference Committee's recommendations as presented.]
Casimir H. Srutwa
Organizational Affairs A. Vesting Provisions of Pharmacist Pension Plans Recommendation 1. The Committee recommends that the Association encourage employers to incorporate early vesting rights in pension plans provided as a part of the remuneration of employed pharmacists.
2. The committee also recommends that such provisions include a schedule assuring the pharmacist at least 50 percent vesting not later than five years and 100 percent not more than 10 years from the date of employment.
b. In recent years, the inclusion of a pension plan in the employee pharmacist's fringe benefit package has become increasingly common, and in 1970, the Association recognized such plans as a basic employment standard through the adoption of the APhA Policy Statement on Employment Standards which contains the following provisionEmployers are obligated to fairly compensate the employed pharmacist commensurate with his duties and performance. Such compensation should include benefits generally available to other professionals including, but not limited to, vacation, sick leave, insurance plans and a retirement program (emphasis added).
Background
a. It is the personal and social responsibility of every individual during . the productive years of his life to make provisions for assured and adequate financial resources during his retirement years. Therefore, both employer pharmacists and employed pharmacists, during the course of their professional careers, should accept this personal responsibility, either through their individual planning and investment activities or through a mutually acceptable plan provided by employers to employed pharmacists as a part of their remuneration.
c. The committee feels strongly that the employer-provided pension program should be looked upon as an integral component of overall remuneration to which the employed pharmacist is entitled as a condition of his employment, and not as a mechanism instituted by the employer for the forced retention of valuable employees. Therefore, portability i.e., the ability of an employed pharmacist to retain the benefits accrued to him through the program should he change employment situations, should be an important feature of any pharmacist pension plan. The
degree of portability depends on the vesting provisions of the plan, i.e., a guarantee of a share in the pension fund through transfer of ownership from the employer to the employee of some or all of the contributions in the employee's account. For example, if the employe~ were 50 percent vested at the time of termination of his employment, h e would be entitled to retain 50 percent of retirement program contributions made by his employer; total portability of the plan would be achieved when th e employee is 100 percent vested by his employer. d. Some might reason that early vesting provisions in employer-provided pensicn plans are of advantage only to the employee since he is able, when fully ves 1ed, to leave the service of his employer without losing his accrued retirement benefits. However, the committee believes that such provisions are also beneficial to the employer. Fringe benefits can serve not only to help assure the retention of valuable employees, but they could become an undesirable basis for preserving an employment relationship which would be mutually beneficial if it were terminated. Therefore, the committee has made specific recommendations pertaining to vesting rights which it feels will provide a degree of portability that is equitable to both . employer and employee. Vol. NS14, No.9, September 1974
489
Paragraph A of the report is entitled "Vesting Provisions of Pharmacist Pension Plans." The Reference Committee recommends adoption of whole number section 1 under paragraph A of the Committee report and I so move. The Reference Committee recommends adoption of whole number section 2 under paragraph A of the committee report and I so move.
Paragraph B of the report is entitled "Establishment of an APhA Employee-
Employer Relations Board." The Reference Committee recommends adoption of whole number section 1 under paragraph B of the committee report and I so move.
Casimir H. Srutwa, chairman Rollin C. Bridge D. Stephen Crawford Pershing D. Frederick Metta Lou Henderson Robert Schwartz
[The House adopted by voice vote the Reference Committee's recommendations as presented.]
Casimir H. Srutwa
Organizational Affairs A. Vesting Provisions of Pharmacist Pension Plans Recommendation 1. The Committee recommends that the Association encourage employers to incorporate early vesting rights in pension plans provided as a part of the remuneration of employed pharmacists.
2. The committee also recommends that such provisions include a schedule assuring the pharmacist at least 50 percent vesting not later than five years and 100 percent not more than 10 years from the date of employment.
b. In recent years, the inclusion of a pension plan in the employee pharmacist's fringe benefit package has become increasingly common, and in 1970, the Association recognized such plans as a basic employment standard through the adoption of the APhA Policy Statement on Employment Standards which contains the following provisionEmployers are obligated to fairly compensate the employed pharmacist commensurate with his duties and performance. Such compensation should include benefits generally available to other professionals including, but not limited to, vacation, sick leave, insurance plans and a retirement program (emphasis added).
Background
a. It is the personal and social responsibility of every individual during . the productive years of his life to make provisions for assured and adequate financial resources during his retirement years. Therefore, both employer pharmacists and employed pharmacists, during the course of their professional careers, should accept this personal responsibility, either through their individual planning and investment activities or through a mutually acceptable plan provided by employers to employed pharmacists as a part of their remuneration.
c. The committee feels strongly that the employer-provided pension program should be looked upon as an integral component of overall remuneration to which the employed pharmacist is entitled as a condition of his employment, and not as a mechanism instituted by the employer for the forced retention of valuable employees. Therefore, portability i.e., the ability of an employed pharmacist to retain the benefits accrued to him through the program should he change employment situations, should be an important feature of any pharmacist pension plan. The
degree of portability depends on the vesting provisions of the plan, i.e., a guarantee of a share in the pension fund through transfer of ownership from the employer to the employee of some or all of the contributions in the employee's account. For example, if the employe~ were 50 percent vested at the time of termination of his employment, h e would be entitled to retain 50 percent of retirement program contributions made by his employer; total portability of the plan would be achieved when th e employee is 100 percent vested by his employer. d. Some might reason that early vesting provisions in employer-provided pensicn plans are of advantage only to the employee since he is able, when fully ves 1ed, to leave the service of his employer without losing his accrued retirement benefits. However, the committee believes that such provisions are also beneficial to the employer. Fringe benefits can serve not only to help assure the retention of valuable employees, but they could become an undesirable basis for preserving an employment relationship which would be mutually beneficial if it were terminated. Therefore, the committee has made specific recommendations pertaining to vesting rights which it feels will provide a degree of portability that is equitable to both . employer and employee. Vol. NS14, No.9, September 1974
489