Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, September 18, 1993 TAG: 9309180025
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE: DANIEL HOWES STAFF WRITER
DATELINE: LENGTH: Medium
Last month, the Norfolk-based transportation company extended the voluntary offer to about 13 percent of its non-union work force.
Non-union employees must be 55 years or older to be eligible. In announcing the retirement offer last month, officials said 151 of the 600 eligible employees live in the Roanoke Valley. Based on Friday's count, nearly 60 percent of those eligible to retire early in the valley decided to do so.
The retirements will be effective Oct. 1. And, unlike previous buyout offers for union workers, each request will be approved by the company.
Norfolk Southern does not set targets when it announces programs designed to cut employment, said Robert Fort, a company spokesman. "That's the way it's been with union buyouts and early retirement programs."
The retirement offer, announced Aug. 19, approximates a 1987 offer extended to 1,100 non-union employees. Of those eligible, 999 chose early retirement then.
Requirements of the current Norfolk Southern package include:
Eligible employees must be 55 years or older in 1993. They will retire Oct. 1 with their accrued pension benefits.
The company will supplement pensions to the level of retirees' Railroad Retirement or Social Security benefits until they reach normal retirement age - 62 for both programs. Retirees with 30 or more years of service under Railroad Retirement can qualify at age 60.
An amount equivalent to the 1993 year-end bonus will be added to the pension calculation. Full vacation also will be added for 1993 even if the vacation has been taken. Credit will be added for any unused vacation.
by CNB