Review of RCA Retirement Benefits Questioned by Terminated Employee
PSAD-78-116: Published: May 26, 1978. Publicly Released: May 26, 1978.
- Full Report:
A terminated employee questioned the manner in which the RCA Corporation administered and implemented its employees' retirement plan. Aaron alleged that RCA committed fraud by pocketing Government-reimbursed employer contributions to the retirement fund and that employees were not receiving applicable benefits under the company's retirement plan. The employee, who worked on Government contracts during his entire RCA career, complained that his own contributions, if left in the RCA plan and compounded at 8 percent interest, would be sufficient to pay for the deferred benefit of $270 per month which he would get if he left his contributions in the plan. The employee's claim against the pension fund was in accordance with the terms of the plan documents. The pension plan itself does not violate any Government regulations and is operated in a manner similar to most contributory, defined benefit pension plans. The allegations were unfounded.