Theodore D. Bower

Theodore D. Bower, who passed away in 2006 at age 79, was a prominent force in the evolving law affecting profit sharing plans before and after the Employee Retirement Income Security Act of 1974 (“ERISA”). He was inducted into the American College of Employee Benefits Counsel (the “College”) in 2001 as an Emeritus Fellow.

Ted served his country in the U.S. military between December 1944 and August 1946.

Identified closely with his work for Sears, Roebuck & Company in Chicago, Ted, a tax attorney with Sears for more than 32 years, came to have primary responsibility for the ERISA compliance of the Sears Profit Sharing Plan, one of the oldest U.S. defined contribution profit sharing plans. In advising Sears and working in-house with the plan administration team, Ted developed first-hand practical knowledge of how profit sharing plan administration worked…and the obstacles…within this very large employer.

Ted’s involvement with the Sears plan started well before ERISA. For example, he appeared with Lawrence O’Connor of Sears before the Subcommittee on Fiscal Policy of the Joint Economic Committee of Congress in May of 1966. O’Connor’s testimony laid out the history of the Sears plan, which started in 1916 to promote the habit of saving for retirement. By 1964, there were over 158,000 members in the Sears plan which made it a model to study for other employers. Sears was a strong supporter of profit sharing plans and Ted and its other lawyers were active in professional organizations and before Congress promoting law changes to enhance employers’ ability to sponsor the plans.

In addition to his responsibilities for the Sears plan, Ted was active in the Profit Sharing/401(k) Council of America (“PSCA”) (later, the Profit Sharing Council of America), then the largest association of U.S. employers, which promoted employee profit sharing/401(k) plans as a means of increasing company productivity and economic competitiveness, and fostering employee satisfaction.

College Fellow Jim Klein knew Ted from 1984 to 1988. During that time, Ted was very active on the U.S. Chamber of Commerce’s Employee Benefits Committee that developed pension and health policy positions for approval by the organization’s board of directors. Jim recalled that Ted was one of the handful of benefits professionals who very regularly and actively engaged in policy discussions, not only at the U.S. Chamber, but other organizations as well and he was well known in the benefits community.

David Wray, PCSA President from 1987 to 2012, recalled that the Sears plan in 1918, matched employee contributions with a profit sharing contribution. In the 1950s, the CEO of Sears was proud that his chauffeur retired with more than $1 million dollars in the plan. “PSCA was fully committed to these plans. Ted was the Sears point person in his company’s support of these plans. He was chair of the PSCA Legal and Legislative Committee for 10 years. When I become president of PSCA in 1987, I knew a lot about association management but not much about defined contribution plans. Sears committed hundreds of hours of Ted’s time to teach me. I fondly remember the many hours we spent together writing position papers for submittal to Congress. He was a close personal friend and his legacy should include the contribution he made to making the defined contribution system what it is today.”

Ted’s active role in professional organizations was also noted by College Fellow Mark Ugoretz who remembered Ted being active in the ERISA Industry Committee (“ERIC”) for many years. “He was a staunch supporter of employers’ ability to provide sound retirement and health benefits to their workers especially when Sears was a major retail force. Many long-term Sears employees retired with substantial retirement savings that lasted them well in retirement. Ted also strongly opposed those government restrictions that he believed undermined employers’ efforts to provide benefits and that he believed restricted employee savings.”

Ted was an avid traveler who told engaging stories of his adventures on the road. Friends described Ted as knowledgeable and yet accessible, warm and friendly. He wielded a keen wit, had a sharp mind and was willing to share both with all. Known affectionately as Mr. Profit Sharing among his co-workers at Sears, Roebuck & Co. and his contemporaries, Ted worked toward law changes to improve how profit sharing plans worked.

Photo Source: The Decade Book, American College of Employee Benefits Counsel 2000-2010