History of pensions in the United States
History of pensions in Year 1717: The Presbyterian Church creates a Fund for Pious Uses to provide for retired ministers.
History of pensions in Year 1875: The American Express Company creates its first pension plan in the United States.
History of pensions in Year 1884: Baltimore and Ohio Railroad establishes the first pension plan by a major employer, allowing workers at age 65 who had worked for the railroad for at least 10 years to retire and receive benefits ranging from 20 to 35% of wages.
The Revenue Act of 1913, passed following the passage of the 16th amendment to the constitution which permitted income taxation, recognized the tax exempt nature of pension trusts. At the time, several large pension trusts were already in existence- including the pension trust for ministers of the Anglican Church in the United States.
History of pensions in Year 1924: The Presbyterian Church, USA, creates its current pension programme
History of pensions in Year1940s: General Motors chairman Charles Erwin Wilson designed GM's first modern pension fund. He said that it should invest in all stocks, not just GM.
History of pensions in Year 1963: Studebaker terminated its underfunded pension plan, leaving employees with no legal recourse for their pension promises.
History of pensions in Year 1974: Employee Retirement Income Security Act (ERISA) – imposed reporting and disclosure obligations and minimum standards for participation, vesting, accrual and funding on U.S. plan sponsors, established fiduciary standards applicable to plan administrators and asset managers, established the Pension Benefit Guaranty Corporation to ensure benefits for participants in terminated defined benefit plans, updated the Internal revenue Code rules for tax qualification.
History of pensions in Year 1985: The linguistic move was to avoid mentioning actual individual accounts but using the words hypothetical account or notional account.
History of pensions plans in Year 1991: Pension and retirement funds own 40% of American common stock and represent $2.5 trillion in assets.
