United States Steel Corporation

The 1960 average hourly earnings reflect only one month's effect of the
December 1, 1960, wage rate increases. These average hourly and weekly
earnings are exclusive of social security taxes, pensions, insurance, and other
employe benefits.
Employe benefit programs
The amounts provided by U. S. Steel to cover the cost of pensions, social
security taxes, insurance and other employe benefits in the years 1960 and
1959 are shown in the table on the following page.
Pensions - During the year the pension plan was amended by the Board of
Directors to include increased pension benefits negotiated with labor unions,
and related adjustments. Under the U. S. Steel pension plan, pensions were
granted during 1960 to 4,708 retiring employes. At the end of the year there
were 37,401 former employes or their co-pensioners receiving pensions as
compared with 35,175 at the end of 1959. Pension benefits paid in 1960 were
$42.5 million.
Insurance - Under the U. S. Steel group insurance plans, beneficiaries of
active and retired employes received death benefits of about $14.4 million in
1960 and $13.3 million in 1959. At the end of the year approximately 243,000
active and retired employes were insured for about $1,629 million of life
insurance. Accident, sickness, hospital, surgical, in-hospital medical and
major medical benefits of $37.0 million were received during 1960 by
employes or their families under the U. S. Steel insurance plans.
S. U. B. - Supplemental unemployment benefit payments to eligible employes,
which first became payable in September 1957, have totaled $41.9
million since the inception of the plans, including $16.5 million in 1960.
Savings fund plan - The Savings Fund Plan for Salaried Employes, designed
to encourage individual savings and assist employes in acquiring a stock interest
in the Corporation on a continuing basis, completed its fourth year of
operation. About 40,000 salaried employes - over 92 per cent of those eligible
- were participating in the plan at year end and were saving on the average
about 6.6 per cent of their base salaries. Employe savings during the year
amounted to $22.4 million.
Participants may elect to have all of their savings invested in obligations
of the U. S. Government or one-half in such obligations and one-half in
U. S. Steel common stock. They elected to invest in U. S. Steel common stock
almost 93 per cent of their savings eligible for such investment. These savings,
together with company contributions of 50 cents for each dollar of savings
by a participant, and the dividends received during the year were used for
the purchase of 303,702 shares of U. S. Steel common stock. Since the inception
of the plan such purchases which were credited to savings plan participants
amounted to 1,078,991 shares as of December 31, 1960, or 2.0 per cent
of the outstanding shares. Shares held in the trust, except shares not vested
in employes, are voted by the trustee in accordance with directions furnished
by the employes. Shares not vested are not voted. Company contributions
17