Founder, Carnegie Steel Co., Pittsburgh; Carnegie Corp., New York
Andrew Carnegie is known as the father of the modern funded defined benefit plan.
In 1901, he started the Carnegie Relief Fund, contributing $4 million in Carnegie Steel Co. bonds. He designated the proceeds to all employees of Carnegie Steel Co. who were injured at work and to dependents of employees who were killed, and "to provide small pensions or aids to such employees as, after long and creditable service, through exceptional circumstances, need such help in their old age and who make good use of it."
This investment fund became the prototype for every defined benefit plan.
In 1905, he donated $10 million to establish the Carnegie Foundation for the Advancement of Teaching to provide pensions to professors at private universities, colleges and technical schools. That, in turn, led to the establishment of the Teachers Insurance and Annuity Association in 1918 as a non-profit organization, with an initial grant of $1 million from Carnegie Corp.
"In using his wealth to fund what has become the premier pension system for education and research employees, Andrew Carnegie demonstrated tremendous vision in realizing that providing employees with financial security in their old age was the best way to strengthen education," said Herbert M. Allison Jr., chairman, president and chief executive officer of TIAA-CREF, New York.
Mr. Carnegie died Aug. 11, 1919. He was 84.