In 1955, R. J. Reynolds Tobacco created an employee profit sharing plan. Based on a profitability formula, a portion of the company’s profit was annually deposited into an account for each eligible employee.[1] The contribution was about 13% of base pay each year. The employees made no contribution; 100% came from RJR. One third of the money was invested in RJR stock, and two thirds in a diversified portfolio. An employee was allowed to access the funds at retirement.
This really shows us how far we have come in terms of improving the retirement fund offerings, thank you Gene.