An adventure in applied science - IRRI books - International Rice ...

88 History of the International Rice Research Institutestandard of English used), they were able to benefit from the advantages ofPhilippine culture offered by the campus schools.IRRI’s educational benefits (under the subsidization policy in force in themid-l960s, as shown in Appendix 10) included reimbursement for half of theeducational costs (tuition, fees, and cost of textbooks) for each child of a seniorstaff family, from kindergarten through secondary school, and the cost of oneround-trip passage a year for children who were undergraduates at colleges oruniversities abroad.PENSION AND SAVINGS PLANSThe Rockefeller Foundation had a retirement plan with the Teacher's InsuranceAnnuity Association (TIAA) that applied only to the Americans amongIRRI’s senior professional staff. Therefore, some similar perquisite had to beestablished for the non-Americans, who could not be covered by that plan. Theoriginal arrangement, discussed with Harrar and Hill in New York in November1961, was for the Institute to carry its own pension plan. The schemeworked out and followed for some years was that IRRI deducted 5% from themonthly salary of each non-American senior staff member and made an equalcontribution itself. It then deposited the combined amount in a savingsaccount at the First National City Bank in New York. When the staff memberleft the Institute at retirement age or earlier, he would receive the full amountof the contributions, plus the accumulated interest. None of the funds in thesavings account could be withdrawn before the staff member left IRRI norcould the account be used as collateral for a personal loan.In 1969, this earlier plan was discontinued for a new one. It was found thatif IRRI worked out an agreement with the International Institute of Education(IIE) in New York for the latter to pay the salaries of the senior staff, thatorganization could provide both group insurance and a pension plan. Thus,the TIAA system was used for all U.S. citizens, while the non-U.S. citizens wereprovided with a pension plan with the American International ReinsuranceCompany in the Bahamas (the carrier for IIE). The benefits of the plans weresimilar. If an IRRI scientist worked for 20 years, he or she on retirement, at age65, would receive an annual pension of about half the average salary for the last3 years of employment.In 1965, IRRI initiated a retirement plan for all permanent employees whowere not senior scientists. It was an optional savings plan whereby IRRIcontributed 2.5% of the employee’s monthly salary and an equal amount wasdeducted (obligatorily) from his or her pay.In 1970, the plan was liberalized in its present form, IRRI contributing 7.5%of the salary of all non-senior staff employees on the regular payroll. This is adirect bonus and does not require a contribution from the employee. However,an employee may request the treasurer to deduct any specified additionalamount from his salary as a further contribution to the retirement/savingsplan. As with the first scheme adopted for senior staff, when the employeeeither retires or leaves the Institute for another reason he or she will be paid,in lump sum, the total amount contributed plus interest.