On the other hand, if the surviving spouse takes an annuity payout of the tax-free death benefits, less of each payment will be subject to income tax than post-retirement survivor benefits received under a noncontributory pension plan
(i.e., less death benefits will be required to provide the surviving spouse a given after-tax income).
In addition, the company offers noncontributory pension plans
and short-term disability and life insurance policies.
Latimer, "Most pension plans operating in 1929 seem to have been framed with the idea of relating the benefit to the employee's standard of living at the time of retirement."(19) Indeed, half of the noncontributory pension plans
operating in that year specified average pay during the last 10 years of service as the basis for the benefit calculation.