| 2.01 |
Participation Requirements
|
| 2.02 |
Determination of Service
|
| 2.03 |
Events Affecting Participation
|
| 2.04 |
Participation Upon Reemployment
|
| 3.01 |
Eligibility Service
|
| 3.02 |
Benefit Service
|
| 3.03 |
Restoration of Retired Participant or Other Former Employee to Service
|
| 4.01 |
Normal Retirement
|
| 4.02 |
Late Retirement
|
| 4.03 |
Early Retirement
|
| 4.04 |
Vesting
|
| 4.05 |
Disability
|
| 4.06 |
Spouse’s Pension
|
| 4.07 |
Lost Participants
|
| 4.08 |
Maximum Benefit Limitation
|
| 4.09 |
Transfers and Employment With an Affiliated Company
|
| 5.01 |
Automatic Form of Payment
|
| 5.02 |
Optional Forms of Payment
|
| 5.03 |
Election of Options
|
| 5.04 |
Commencement of Payments
|
| 5.05 |
Distribution Limitation
|
| 5.06 |
Direct Rollover of Certain Distributions
|
| 6.01 |
Company’s Contributions
|
| 6.02 |
Return of Contributions
|
| 7.01 |
Named Fiduciary and Administrator
|
| 7.02 |
Appointment and Duties of Benefits Administration Board
|
| 7.03 |
Appointment and Duties of Plan Asset Committee
|
| 7.04 |
Meetings
|
| 7.05 |
Action of Majority
|
| 7.06 |
Compensation and Bonding
|
| 7.07 |
Establishment of Rules
|
| 7.08 |
Prudent Conduct
|
| 7.09 |
Actuary
|
| 7.10 |
Maintenance of Accounts
|
| 7.11 |
Service in More Than One Fiduciary Capacity
|
| 7.12 |
Limitation of Liability
|
| 7.13 |
Indemnification
|
| 7.14 |
Appointment of Investment Manager
|
| 7.15 |
Expenses of Administration
|
| 7.16 |
Non-Discrimination
|
| 7.17 |
Claims and Review Procedures
|
| 7.18 |
Limitations of Time for Submitting Claims and Filing Suits
|
| 8.01 |
Funding Agent
|
| 8.02 |
Exclusive Benefit Rule
|
| 9.01 |
Nonalienation
|
| 9.02 |
Conditions of Employment Not Affected by Plan
|
| 9.03 |
Facility of Payment
|
| 9.04 |
Information
|
| 9.05 |
Top-Heavy Provisions
|
| 9.06 |
Prevention of Escheat
|
| 9.07 |
Electronic Transmission of Notices to Participants
|
| 9.08 |
Non-duplication of Benefits
|
| 9.09 |
Construction
|
| 9.10 |
Limitation on Benefits in the Event of a Liquidity Short Fall
|
| 9.11 |
Limitations Based on Funded Status of the Plan
|
| 9.12 |
Limitations on Unpredictable Contingent Event Benefit
|
| 1.01 |
“Accrued Benefit” means, as of any date of
determination, the normal retirement Pension of a Participant computed under Section 4.01(b) on the basis of the Participant’s Benefit Service and other applicable components of the Plan formula as of that date.
|
| 1.02 |
“Affiliated Company” means any company not
participating in the Plan which is a member of a controlled group of corporations (as defined in Section 414(b) of the Code) which also includes as a member the Company; any trade or business under common control (as defined in Section 414(c)
of the Code) with the Company; any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Section 414(m) of the Code) which includes the Company; and any other entity required to be
aggregated with the Company pursuant to regulations under Section 414(o) of the Code. Notwithstanding the foregoing sentence, for purposes of Section 4.08, Section 3.01(d)(iii) and Section 3.02(d)(iii), the definitions in Sections 414(b) and
(c) of the Code shall be modified as provided in Section 415(h) of the Code.
|
| 1.03 |
“Annuity Starting Date” means, unless the
Plan expressly provides otherwise, the first day of the first period for which an amount is paid as an annuity or any other form.
|
| 1.04 |
“Average Final Compensation” means the average annual Compensation of a Participant during the three consecutive calendar years of his or her Eligibility Service affording the highest such average, or during all
of the years of his or her Eligibility Service if less than three years, provided, however and not withstanding any Plan provision to the contrary, a Participant’s Average Final Compensation shall be determined without regard to
Compensation earned after
|
| 1.05 |
“Beneficiary” means the person or persons
named by a Participant by written designation filed with the Benefits Administration Board to receive payments after the Participant’s death. Notwithstanding the foregoing, in determining beneficiary status, the Benefits Administration Board
shall take into the account the additional beneficiary rules in Section 9.03 of the Plan.
|
| 1.06 |
“Benefits Administration Board” means a board
composed of at least three persons named by the Board of Directors to administer and supervise the Plan as provided in Article 7.
|
| 1.07 |
“Benefit Service” means service recognized
for purposes of computing the amount of any benefit, determined as provided in Section 3.02.
|
| 1.08 |
“Board of Directors” means the Board of
Directors of John Wiley & Sons, Inc., as from time to time constituted, or its delegate.
|
| 1.09 |
“Break in Service” means a period which
constitutes a break in an Employee’s Eligibility Service, as provided in Section 3.01(a).
|
| 1.10 |
“Code” means the Internal Revenue Code of
1986, as amended from time to time.
|
| 1.11 |
“Company” means John Wiley & Sons, Inc.
or any successor by merger, purchase or otherwise, with respect to its employees; or any other company participating in the Plan as provided in Section 10.03 with respect to its employees.
|
| 1.12 |
“Compensation” means the basic cash
remuneration plus 50 percent of any bonuses, incentive pay, and overtime pay, paid to an Employee for services rendered to the Company, determined prior to any pre-tax contributions under a “qualified cash or deferred arrangement” (as defined
under Section 401(k) of the Code and its applicable regulations) or under a “cafeteria plan” (as defined under Section 125 of the Code and its applicable regulations) or any salary reduction made pursuant to an arrangement under Section
132(f) of the Code or pursuant to the provisions of another deferred compensation plan maintained by the Company, but excluding any amount earned on and after October 1, 1995 by the employee on a piece work basis, any amount contributed by
the Company under this Plan or any other public or private retirement pension or employee benefit plan, health, hospitalization, long-term sick leave, long-term disability, workers’ compensation, death or retirement benefits whether obtained
through insurance coverage or otherwise, any stock, options, or other rights received under any Company incentive stock, stock option, or stock purchase plan, and all other forms of special pay. The Compensation for a period of absence which
is counted as Benefit Service shall be the Participant’s base rate of Compensation in effect immediately before the period of absence. However, if a Participant is entitled to Benefit Service on account of a period of service in the
uniformed services of the United States, the Participant shall be deemed to have earned Compensation during the period of absence at the base rate he or she would have received had he or she remained employed as an Employee for that period
or, if such rate is not reasonably certain, on the basis of the Participant’s base rate of compensation during the 12-month period immediately preceding such period. For any Plan Year commencing on or after January 1, 2002, annual
Compensation taken into account for any purpose under the Plan shall not exceed $200,000, as adjusted from time to time by the Secretary of the Treasury in accordance with Section 401(a)(17) of the Code. For purposes of determining benefit
accruals in Plan Years beginning after December 31, 2001, annual Compensation for Plan Years beginning before January 1, 2002 shall not exceed $200,000; provided, however, that such limit shall not apply so as to reduce the amount of the
Participant’s frozen accrued benefit determined as of December 31, 1993 based on the Participant’s Compensation, Total Compensation and Benefit Service to that date under the terms of the Plan then in effect. Effective January 1, 1997, the
compensation limit shall be applied without regard to the family aggregation provisions of Section 414(q)(6) of the Code in determining benefit accruals for Plan Years beginning on and after January 1, 1994, and, to the extent permissible
under the IRS rules or regulations, for any earlier Plan Year. Notwithstanding the foregoing, including basic cash remuneration, bonuses, incentive pay or overtime pay received by an Employee on or after July 1, 2013 shall not be recognized
as Compensation.
|
| 1.13 |
“Covered Compensation” means, for any
Participant, the average of the taxable wage bases in effect under Section 230 of the Social Security Act for each year in the 35-year period ending with the year in which the Participant attains his or her Social Security Retirement Age. In
determining a Participant’s Covered Compensation for any Plan Year, the taxable wage base for the current Plan Year and any subsequent Plan Year shall be assumed to be the same as the taxable wage base in effect as of the beginning of the
Plan Year for which the determination is made. With respect to a Participant who retires or terminates employment with the right to a vested Pension on or after January 1, 2002, no increases in the taxable wage base effective after
December 31, 1997 shall be taken into account, with respect to a Participant who retires or terminates employment with the right to a vested Pension on or after January 1, 2002.
|
| 1.14 |
“Effective Date” means January 1, 1955.
|
| 1.15 |
“Eligibility Service” means service
recognized for purposes of determining eligibility for membership in the Plan, determined as provided in Section 2.02, and eligibility for a vested Pension under the Plan, determined as provided in Section 3.01.
|
| 1.16 |
“Employee” means any person employed by the
Company who receives compensation other than a pension, severance pay, retainer or fee under contract, but excluding any Leased Employee, any person who is compensated solely on a piece work basis, any person who is included in a unit of
employees covered by a collective bargaining agreement which does not provide for his or her participation in the Plan, any person classified as a consultant by the Company, any person on the payroll of a third party with whom the Company has
contracted for the provision of said person’s services, and, effective as of May 1, 1999, any person who is accruing benefits under another defined benefit or defined contribution plan (qualified or nonqualified) maintained by the Company,
other than the John Wiley & Sons, Inc. Employees’ Savings Plan, or a nonqualified deferred compensation plan maintained by John Wiley & Sons, Inc.. In addition, any person who, pursuant to a written contract with the Company that
provides that he or she (a) is an independent contractor and not an employee, and (b) waives participation in the Plan, shall be excluded from the definition of Employee, and shall not be eligible to participate in the Plan during the period
such written contract is in effect regardless such person’s reclassification as an employee for such period by the Internal Revenue Service for tax withholding purposes. The term “employee” as used in this Plan means any individual who is
employed by the Company or an Affiliated Company as a common law employee of the Company or an Affiliated Company, regardless of whether the individual is an “Employee,” and any Leased Employee.
|
| 1.17 |
“Equivalent Actuarial Value” means equivalent
value determined on the basis of the applicable factors set forth in Appendix A, except as otherwise specified in the Plan.
|
| 1.18 |
“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time.
|
| 1.19 |
“Funding Agent” means the trustee or trustees
or the legal reserve life insurance company by whom the funds of the Plan are held, as provided in Article 8.
|
| 1.20 |
“Hour of Service” means, with respect to any
applicable computation period,
|
| (a) |
each hour for which the employee is paid or entitled to payment for the performance of duties for the Company or an Affiliated Company,
|
| (b) |
each hour for which an employee is paid or entitled to payment by the Company or an Affiliated Company on account of a period during which no duties are performed,
whether or not the employment relationship has terminated, due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence, but not more than 501 hours for any single continuous
period,
|
| (c) |
each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Company or an Affiliated Company, excluding any hour credited
under (a) or (b), which shall be credited to the computation period or periods to which the award, agreement or payment pertains, rather than to the computation period in which the award, agreement or payment is made,
|
| (d) |
solely for purposes of determining whether an employee has incurred a Break in Service under the Plan, each hour for which an employee would normally be credited under
paragraph (a) or (b) above during a period of Parental Leave but not more than 501 hours for any single continuous period. However, the number of hours credited to an employee under this paragraph (d) during the computation period in which
the Parental Leave began, when added to the hours credited to an employee under paragraphs (a) through (c) above during that computation period, shall not exceed 501. If the number of hours credited under this paragraph (d) for the
computation period in which the Parental Leave began is zero, the provisions of this paragraph (d) shall apply as though the Parental Leave began in the immediately following computation period, and
|
| (e) |
solely for purposes of determining whether an employee has incurred a Break in Service under the Plan, each hour for which an employee would normally be credited under
paragraph (a) or (b) above during a period of leave for the birth, adoption or placement of a child, to care for a spouse or other immediate family member with a serious illness or for the employee’s own illness pursuant to the Family and
Medical Leave Act of 1993 and its regulations.
|
| 1.21 |
“IRS Interest Rate” means, with respect to
determining the amount of a benefit with an Annuity Starting Date:
|
| (a) |
prior to May 1, 2008, the interest rate prescribed under Section 417(e)(3)(A)(ii)(II) of the Code (as it read prior to the first day of the 2008 Plan Year) published in
first full calendar month preceding the applicable Stability Period;
|
| (b) |
on or after May 1, 2008, the interest rate prescribed under Section 417(e)(3)(C) of the Code (as it reads effective on and after the first day of the 2008 Plan Year)
published in the first full calendar month immediately preceding the applicable Stability Period, subject to the second to last paragraph of Section 5.02, and
|
| (c) |
on or after January 1, 2014, the interest rate prescribed under Section 417(e)(3)(C) of the Code (as it reads effective on and after the first day of the 2014 Plan
Year) published in by the fourth calendar month immediately preceding the applicable Stability Period, subject to the last paragraph of Section 5.01 and the second to last paragraph of Section 5.02.
|
| 1.22 |
“IRS Mortality Table” means, with respect to
determining the amount of a benefit with an Annuity Starting Date:
|
| (a) |
on or after January 1, 2002 and prior to May 1, 2008, the mortality table prescribed by Revenue Ruling 2001-62 as in effect on the first day of the applicable Stability
Period; and
|
| (b) |
on or after May 1, 2008, the mortality table prescribed under Section 417(e)(3)(B) of the Code (as it reads effective on and after the first day of the 2008 Plan Year)
as in effect on the first day of the applicable Stability Period, subject to the second to last paragraph of Section 5.02.
|
| 1.23 |
“Leased Employee” means any person (other
than a common law employee of the Company) who, pursuant to an agreement between the Company and any other person (“leasing organization”), has performed services for the Company or any related persons determined in accordance with Section
414(n)(6) of the Code on a substantially full-time basis for a period of at least one year and such services are performed under the primary direction of or control by the Company.
|
| 1.24 |
“Limitation Year” means for each 12-month
period until the Plan Year ending April 30, 1990, the Plan Year, the period from May 1, 1990 until December 31, 1990, and each calendar year thereafter.
|
| 1.25 |
“Non-Suspendible Month” means a four or five
week payroll period ending in a month which precedes the April 1 following the calendar year in which the Participant attains age 70½ and in which the Participant receives payment from the Company or an Affiliated Company for less than eight
days of service during that four or five week payroll period.
|
| 1.26 |
“Normal Retirement Age” means an Employee’s
65th birthday, or in the case of a person who becomes a Participant on or after May 1, 1988, the fifth anniversary of the date he or she becomes a Participant, if later. Effective as of January 1, 2007, Normal Retirement Age means in the
case of a person who becomes a Participant on and after May 1, 1988, the later of (i) an Employee’s 65th birthday or (ii) the earlier of (1) the fifth anniversary of the date he or she became a Participant or (2) the date he or she
completes five years of Eligibility Service.
|
| 1.27 |
“Normal Retirement Date” means the first day
of the calendar month coinciding with or immediately following an Employee’s Normal Retirement Age.
|
| 1.28 |
“Parental Leave” means a period commencing on
or after the first day of the Plan Year which began in 1985 in which the Employee is absent from work immediately following his or her or her active employment because of the Employee’s pregnancy, the birth of the Employee’s child, the
placement of a child with the Employee in connection with the adoption of that child by the Employee, or for purposes of caring for that child for a period beginning immediately following birth or placement.
|
| 1.29 |
“Participant” means any person included in
the membership of the Plan, as provided in Article 2.
|
| 1.30 |
“Pension” means annual payments under the
Plan as provided in Article 5.
|
| 1.31 |
“Plan” means the Employees’ Retirement Plan
of John Wiley & Sons, Inc., as set forth in this document or as amended from time to time.
|
| 1.32 |
“Plan Asset Committee” means a committee
composed of at least four persons named by the Board of Directors for purposes of managing the assets of the Plan as provided in Section 7.
|
| 1.33 |
“Plan Year” means the 12-month period
beginning on any May 1.
|
| 1.34 |
“Qualified Joint and Survivor Annuity” means
an annuity described in Section 5.01(b).
|
| 1.35 |
“Registered Domestic Partner” means the
individual registered with the Company as the Participant’s registered domestic partner as such term is defined in the John Wiley & Sons, Inc. Flexible Benefits Plan.
|
| 1.36 |
“Severance Date” means with respect to an
employee’s employment with the Company or an Affiliated Company the earlier of (a) the date an employee quits, retires, is discharged or dies, (b) the last day of an authorized leave of absence, or if later, the first anniversary of the date
on which an employee is first absent from service, with or without pay, for any other reason such as vacation, sickness, disability, layoff or other leave of absence.
|
| 1.37 |
“Social Security Retirement Age” means age 65
with respect to a Participant who was born before January 1, 1938; age 66 with respect to a Participant who was born after December 31, 1937 and before January 1, 1955; and age 67 with respect to a Participant who was born after December 31,
1954.
|
| 1.38 |
“Social Security Wage Base” means for any
calendar year the maximum amount of annual earnings subject to tax under the provisions of the Federal Insurance Contributions Act as in effect on the first day of that calendar year.
|
| 1.39 |
“Spouse” means, prior to September 16, 2013
the Participant’s legal spouse, as defined under federal law, including the Defense of Marriage Act. Effective on and after September 16, 2013 (or such
other earlier date as may be prescribed by the Internal Revenue Service, “Spouse” means any person who is the legal spouse of the Participant under applicable domestic or foreign law, regardless of the laws of the state in which they work or
reside. For purposes of this Plan, a Participant shall be considered to be “married” only if he is in a relationship with a Spouse which has not been
terminated or declared null under applicable law.
|
| 1.40 |
“Spousal Consent” means irrevocable written
consent given by a Participant’s Spouse to an election made by the Participant of a specified form of Pension or a designation of a specified Beneficiary as provided in Article 5. The specified form or specified Beneficiary shall not be
changed unless further Spousal Consent is given. Spousal Consent shall be duly witnessed by a notary public and shall acknowledge the effect on the Spouse of the Participant’s election. The requirement for Spousal Consent may be waived by
the Benefits Administration Board in the event that the Participant establishes to its satisfaction that he or she has no Spouse, that such Spouse cannot be located, or under such other circumstances as may be permitted under applicable
Treasury Department regulations. Spousal Consent shall be applicable only to the particular Spouse who provides such consent.
|
| 1.41 |
“Stability Period” means (i) with respect to
an Annuity Starting Date prior to January 1, 2014 the calendar year in which occurs the Annuity Starting Date for the distribution and (ii) with respect to an Annuity Starting Date on or after January 1, 2014, the calendar month in which the
Annuity Starting Date occurs.
|
| 1.42 |
“Total Compensation” means the basic cash
remuneration and any bonus, incentive pay, and overtime pay paid to an Employee during a calendar year, commencing on and after January 1, 2005, for services rendered to the Company, determined prior to any pre-tax contributions under a
“qualified cash or deferred arrangement” (as defined under Section 401(k) of the Code and its applicable regulations) or under a “cafeteria plan” (as defined under Section 125 of the Code and its applicable regulations) or any salary
reduction made pursuant to an arrangement under Section 132(f) of the Code or pursuant to the provisions of another deferred compensation plan maintained by the Company, but excluding any amount earned by the employee on a piece work basis,
any amount contributed by the Company under this Plan or any other public or private retirement pension or employee benefit plan, health, hospitalization, long-term disability, workers’ compensation, death or retirement benefits whether
obtained through insurance coverage or otherwise, any stock, options, or other rights received under any Company incentive stock, stock option, or stock purchase plan, and all other forms of special pay. Notwithstanding any Plan provisions
to the contrary, any basic cash remuneration, any bonus, incentive pay, or overtime pay received by an Employee on or after July 1, 2013 shall be excluded from Total Compensation. The Total Compensation for a period of absence which is
counted as Benefit Service on and after January 1, 2005 and prior to July 1, 2013 shall be the Participant’s base rate of Compensation in effect immediately before the period of absence. However, if a Participant is entitled to Benefit
Service on and after January 1, 2005, and prior to July 1, 2013 on account of a period of service in the uniformed services of the United States, the Participant shall be deemed to have earned Total Compensation during the period of absence
prior to July 1, 2013 at the base rate he or she would have received had he or she remained employed as an Employee for that period or, if such rate is not reasonably certain, on the basis of the Participant’s base rate of compensation during
the 12-month period immediately preceding such period.
|
| 2.01 |
Participation Requirements
|
| (a) |
Every employee of the Company on January 1, 2012 who was a Participant in the Plan on December 31, 2011 shall continue to be a Participant, provided he or she is then
an Employee.
|
| (b) |
Prior to July 1, 2013 every other employee in the employ of the Company shall become a Participant in the Plan as of the first day of the calendar month coinciding with
or immediately following the date (i) he or she completes one year of Eligibility Service or (ii) his or her 21st birthday, whichever is later, provided he or she is then an Employee. Notwithstanding the foregoing, any other employee in the
employ of the Company who as of June 30, 2013 has completed one of year of Eligibility Service and has attained at age 21 shall become a Participant as of June 30, 2013, provided he or she is an Employee on that date.
|
| (c) |
Effective as July 1, 2013, participation in the Plan shall be frozen. Any person who was first employed by the Company on or after July 1, 2013 or any person in the
employ of the Company or an Affiliated Company on June 30, 2013, who is not a Participant as of such date, shall not become a Participant of the Plan.
|
| (d) |
Every former employee of the Company or an Affiliated Company who was a Participant on December 31, 2011 shall, subject to Section 2.03, continue to be a Participant.
Such Participant’s benefit shall be determined in accordance with the provisions of the Plan in effect on the date his or her employment terminated, unless otherwise provided in the Plan.
|
| 2.02 |
Determination of Service
|
| 2.03 |
Events Affecting Participation
|
| 2.04 |
Participation Upon Reemployment
|
| 3.01 |
Eligibility Service
|
| (a) |
Except as otherwise provided in Section 2.02 or Appendix B attached hereto, Eligibility Service shall begin on the date the Employee first completes an Hour of Service
and end on the Employee’s Severance Date. If an Employee’s employment is terminated and he or she is later reemployed within one year, the period between his or her Severance Date and the date of his or her reemployment shall be included in
his or her Eligibility Service. However, if his or her employment is terminated during a period of absence from service for reasons such as vacation, sickness, disability, layoff or leave of absence approved by the Company, Eligibility
Service shall be counted for the period from his or her Severance Date to the date of his or her reemployment only if he or she is reemployed within one year of the first day of that absence. A Break in Service shall occur if an Employee is
not reemployed within one year after a Severance Date, provided, however, that if an Employee’s employment is terminated or if the Employee is otherwise absent from work because of Parental Leave, a Break in Service shall occur only if the
Employee is not reemployed or does not return to active service within two years of his or her Severance Date; and provided further that the first year of such absence for Parental Leave, measured from his or her Severance Date, shall not be
considered in determining the Employee’s “period of Break in Service” for purposes of Section 3.03(d). If the Employee has a Break in Service, any period before the Break in Service shall be excluded from his or her Eligibility Service,
except as provided in Section 3.03.
|
| (b) |
If an Employee shall have been absent from the service of the Company because of service in the uniformed services of the United States and if he or she shall have
returned to the service of the Company having applied to return while his or her reemployment rights were protected by law, that absence shall not count as a Break in Service, but instead shall be counted as Eligibility Service to the extent
required by law. Effective January 1, 2007, if an individual who was an Employee dies or, effective as of January 1, 2010, becomes disabled (as described in Section 4.05(a)) while performing qualified military service (as defined in Section
414(u) of the Code) and while his or her reemployment rights are protected by the Uniformed Services Employment and Reemployment Rights Act of 1994 and any related legislation or guidance, such individual's period of time in qualified
military service through the date he died or became disabled shall be counted as Eligibility Service.
|
| (c) |
A period during which an Employee is on a leave of absence approved by the Company shall not be considered as a Break in Service. Under rules uniformly applicable to
all Employees similarly situated, the Benefits Administration Board may authorize Eligibility Service to be counted for any portion of that period of leave which is not counted as Eligibility Service under paragraph (a) of this Section.
|
| (d) |
For purposes of determining eligibility for participation and vesting each of the following periods of service shall be counted in a person’s Eligibility Service to the
extent that it would be recognized under paragraphs (a) through (c) above with respect to Employees:
|
| (i) |
a period of service as an employee, but not an Employee, of the Company,
|
| (ii) |
a period of service as an employee of an Affiliated Company, and
|
| (iii) |
in the case of a person who is a Leased Employee before or after a period of service as an Employee or a period of service described in (i) or (ii) above, a period
during which he or she has performed services for the Company or an Affiliated Company as a Leased Employee. A person who would qualify as a Leased Employee except that he or she has not performed services on a substantially full-time basis
for one year shall nonetheless be deemed a Leased Employee for purposes of this clause (iii).
|
| (e) |
Notwithstanding any prior provision to the contrary, with respect to any person who was employed by the Company or an Affiliated Company during the period prior to
May 1, 1990, Eligibility Service for service rendered during that period shall not be less than the Years of Service credited to such Employee for benefit eligibility purposes as of April 30, 1990, assuming the terms of the Plan as in effect
on April 30, 1989 had remained in effect through such date, unless that service is disregarded pursuant to the Plan’s Break in Service provisions.
|
| 3.02 |
Benefit Service
|
| (a) |
Except as provided below or in Appendix B attached hereto, all Eligibility Service rendered prior to July 1, 2013 as an Employee after reaching age 21 shall be Benefit
Service under the Plan. Any period between a Severance Date and a reemployment date which is counted as Eligibility Service as provided in Section 3.01(a) shall not be counted as Benefit Service. Notwithstanding any Plan provision into the
contrary, Benefit Service shall be frozen as of June 30, 2013 and no Benefit Service shall be credited to a Participant for any period of service or period of absence occurring on or after July 1, 2013.
|
| (b) |
Benefit Service shall include, to the extent required by law, any period of absence from service with the Company due to a period of service in the uniformed services
of the United States rendered prior to July 1, 2013 which is counted in a Participant’s Eligibility Service as provided in Section 3.01(b) and which occurs after the date the Participant becomes an Employee or attains age 21, if later.
Effective January 1, 2007, if an individual who was an Employee dies or, effective as of January 1, 2010, becomes disabled (as described in Section 4.05(a)) while performing qualified military service (as defined in Section 414(u) of the
Code) and while his or her reemployment rights are protected by the Uniformed Services Employment and Reemployment Rights Act of 1994 and any related legislation or guidance, such individual's period of time in qualified military service
through the date he died or became disabled which is counted in a Participant’s Eligibility Service as provided in Section 3.01(b) and which occurs (i) after the date the Participant becomes an Employee or attains age 21, if later, and (ii)
prior to July 1, 2013 shall be counted as Benefit Service. The Participant shall be deemed to have earned Compensation during the period of absence which is recognized as Benefit Service at the rate he or she would have received had he or
she remained employed as an Employee for that period or, if such rate is not reasonably certain, on the basis of the Participant’s rate of compensation during the 12-month period immediately preceding such period of absence (or if shorter,
the period of employment immediately preceding such period).
|
| (c) |
Under rules uniformly applicable to all Employees similarly situated, the Benefits Administration Board may count as Benefit Service any period, not more than two
years, prior to July 1, 2013 during which an Employee is on an approved leave of absence which is counted as Eligibility Service as provided in Section 3.01(c).
|
| (d) |
Benefit Service shall not be credited for any period in which a Participant is (i) not an Employee but is in the employ of the Company, or (ii) in the employ of an
Affiliated Company, or (iii) performing services for the Company or an Affiliated Company as a Leased Employee. Nor shall any person, who pursuant to a written contract with the Company that provides that he or she (iv) is an independent
contractor and not an employee, and (v) waives participation in the Plan, receive any Benefit Service for the period such written contract is in effect.
|
| (e) |
With respect to an Employee who was employed by the Company during the period prior to May 1, 1990, Credited Service for employment during such period shall not be less
than the Years of Service credited to such Employee for benefit accrual purposes as of April 30, 1990, assuming the terms of the Plan as in effect on April 30, 1989 had remained in effect until such date, unless that service is disregarded
pursuant to the Plan’s Break in Service provisions.
|
| 3.03 |
Restoration of Retired Participant or Other Former Employee to Service
|
| (a) |
If a Participant in receipt of a Pension is restored to service with the Company as an Employee or with an Affiliated Company, the following shall apply:
|
| (i) |
Except as otherwise provided below, the payment of his or her Pension shall cease (unless the provisions of Sections 4.02(c) and 5.04(b) are applicable) and any
election of an optional benefit in effect shall be void.
|
| (ii) |
Any Eligibility Service and Benefit Service to which he or she was entitled when he or she retired or terminated service shall be restored to him or her.
|
| (iii) |
Except as otherwise provided in subparagraph (v) below, upon later retirement or termination, his or her Pension shall be based on the benefit formula then in effect
and his or her Compensation, Total Compensation and Benefit Service before and , if any, after the period when he or she was not in the service of the Company. The resulting Pension amount shall be offset by an amount of Equivalent Actuarial
Value to the benefits, if any; he or she received before the earlier of the date of his or her restoration to service or his or her Normal Retirement Date.
|
| (iv) |
The part of the Participant’s Pension upon later retirement payable with respect to any Benefit Service rendered before his or her previous retirement or termination of
service shall never be less than the amount of his or her previous Pension modified to reflect any option in effect on his or her later retirement.
|
| (v) |
Notwithstanding the foregoing, if a Participant in receipt of a Pension is restored to service on or after May 1, 2004 with the Company as an Employee or with an
Affiliated Company for a period of 90 or less days, the payment of his or her Pension shall not cease and any election of an optional benefit shall remain in effect during such period of reemployment; provided, however, if the Participant
completes more than 90 consecutive days of service with the Company or an Affiliated Company subsequent to his or her reemployment, or if earlier, the Participant’s period of reemployment with the Company or an Affiliated Company exceeds an
accumulated total of 90 days in a calendar year, the payment of such Participant’s Pension shall cease as of the first day of the month coincident with or next following his or her completion of such 90 days of service, provided the
Participant is still employed as of such date (unless the provisions of Section 4.02(c) and 5.04(b) are applicable). Upon such Participant’s subsequent retirement, he or she shall be entitled, prior to any adjustment with respect to the
timing or form of payment, an additional Pension equal to the difference between (i) his or her Accrued Benefit based on the formula then in effect and his or her Compensation, Total Compensation and Benefit Service accrued before and, if
any, after the period when he or she was not in the service of the Company and (ii) his or her Accrued Benefit determined as of his or her previous termination of employment, reduced by an amount of Equivalent Actuarial Value to the benefits,
if any, he or she received before his or her Normal Retirement Date. If the Participant’s Annuity Starting Date with respect to the pre-reemployment portion of his or her benefit is prior to his or her Normal Retirement Date, any additional
Pension payable upon the Participant’s subsequent termination of employment shall be paid in the form of payment elected by such Participant on his or her subsequent retirement and if the Participant’s Annuity Starting Date occurred on or
after his or her Normal Retirement Date, any additional Pension payable upon his or her subsequent termination of employment will be paid in the same optional form of benefit as in effect with respect to the portion of his or her benefit
attributable to pre-reemployment service.
|
| (b) |
If a Participant entitled to but not in receipt of a Pension, or a former Participant, or an employee who was never a Participant is reemployed by the Company or an
Affiliated Company without having had a Break in Service, his or her Eligibility Service and Benefit Service shall be determined as provided in Sections 3.01 and 3.02, and if reemployed as an Employee, he or she shall, in the case of a former
Participant, immediately be restored as a Participant as of his or her date of reemployment, and in the case of an employee who was never a Participant, become a Participant in accordance with Section 2.01. However, if a former Participant
received a lump sum settlement in lieu of a Pension, the Benefit Service to which he or she was entitled at the time of his or her termination of service shall be restored to him or her in accordance with the provisions of
Section 3.03(c)(ii).
|
| (c) |
If a Participant entitled to but not in receipt of a Pension or a former Participant who received a lump sum settlement in lieu of a Pension is restored to service with
the Company or an Affiliated Company, after having had a Break in Service, the following shall apply:
|
| (i) |
Upon completion of one year of Eligibility Service, determined as provided in Section 2.02, following the Break in Service the Eligibility Service to which he or she
was previously entitled shall be restored to him or her, and he or she shall again become a Participant as of his or her date of restoration to service as an Employee.
|
| (ii) |
Any Benefit Service to which the Participant was entitled at the time of his or her termination of service shall be restored to him or her, except that if he or she
received a lump sum settlement by the end of the second Plan Year following the Plan Year in which his or her termination occurred, that Benefit Service shall not be restored to him or her.
|
| (iii) |
Upon later termination or retirement of a Participant whose previous Benefit Service has been restored under this paragraph (c), his or her Pension shall be based on
the benefit formula then in effect and his or her Compensation, Total Compensation and Benefit Service before and, if any, after the period when he or she was not in the service of the Company. The resulting Pension amount shall be offset,
if applicable, but not below zero, by an amount of Equivalent Actuarial Value to any lump sum settlement received upon his or her prior termination.
|
| (d) |
If a former Participant who is not entitled to a Pension is restored to service with the Company or an Affiliated Company, either as an Employee or as an employee,
after having had a Break in Service, the following shall apply:
|
| (i) |
Upon completion of one year of Eligibility Service, determined as provided in Section 2.02, following the Break in Service, he or she shall again become a Participant
as of his or her date of restoration to service as an Employee if his or her Eligibility Service is restored under paragraph (ii) below.
|
| (ii) |
Upon his or her restoration to participation, the Eligibility Service to which he or she was previously entitled shall be restored to him or her if his or her period of
Break in Service does not equal or exceed the greater of (A) five years, or (B) his or her period of Eligibility Service before his or her Break in Service, determined at the time of the Break in Service, excluding any Eligibility Service
disregarded under this paragraph (d) by reason of any earlier Break in Service. If any such former Participant was restored to service prior to January 1, 1985, or if he or she had a Break in Service on December 31, 1984 and his or her
period of Break in Service as of that date would have resulted in the exclusion of his or her previously accrued Eligibility Service under the Plan provisions then in effect, then clause (A) of the preceding sentence shall not be applicable,
and his or her previously accrued Eligibility Service shall be excluded.
|
| (iii) |
Any Benefit Service to which the Participant was entitled at the time of his or her termination of service which is included in the Eligibility Service so restored
shall be restored to him or her.
|
| (iv) |
Upon later termination or retirement of a Participant whose previous Benefit Service has been restored under this paragraph (d), his or her Pension, if any, shall be
based on the benefit formula then in effect and his or her Compensation, Total Compensation and Benefit Service before and after the period, if any when he or she was not an Employee.
|
| (e) |
If an employee who was never a Participant is restored to service with the Company or an Affiliated Company prior to July 1, 2013, after having had a Break in Service,
upon completion of one year of Eligibility Service following the Break in Service, the Eligibility Service to which he or she was previously entitled under Section 3.01(d) shall be restored to him or her if he or she would be entitled to
nonforfeitable benefits under the Plan if he or she were a Participant, or otherwise, if his or her period of Break in Service does not equal or exceed the greater of (i) five years or (ii) his or her period of Eligibility Service before his
or her Break in Service, determined at the time of the Break in Service, excluding any Eligibility Service disregarded under this paragraph (e) by reason of any earlier Break in Service. If an employee who was never a Participant is restored
to Service with the Company or an Affiliated Company on or after July 1, 2013, he or she shall not become a Plan Participant.
|
| 4.01 |
Normal Retirement
|
| (a) |
The right of a Participant to his or her normal retirement Pension shall be nonforfeitable as of his or her Normal Retirement Age, provided he or she is an employee of
the Company or an Affiliated Company at that time. A Participant who has attained his or her Normal Retirement Age may retire from service with the Company and all Affiliated Companies and receive a normal retirement Pension beginning on his
or her Normal Retirement Date, subject to the Notice and timing requirements of Article 5, or he or she may postpone his or her retirement and remain in service after his or her Normal Retirement Date, in which event the provisions of
Section 4.02 shall be applicable.
|
| (b) |
Subject to the provisions of Section 5.01, the annual normal retirement Pension payable upon retirement on a Participant’s Normal Retirement Date shall be equal to the
sum of (i) and (ii) below:
|
| (i) | (A) | the sum of (1) 1.17 percent of the Participant’s Average Final Compensation not in excess of Covered Compensation, and (2) 1.67 percent of such Average Final Compensation in excess of Covered Compensation, multiplied by the number of years of his or her Benefit Service rendered prior to January 1, 2005 up to 35 years; provided, however, that on and after May 1, 1994, such amount shall not be less than |
| (B) |
the sum of:
|
| (1) |
the Participant’s Accrued Benefit on April 30, 1994 under the terms of the Plan as then in effect, and
|
| (2) |
1.17 percent of the Participant’s Average Final Compensation not in excess of Covered Compensation, plus 1.67 percent of such Average Final Compensation in excess of
Covered Compensation, multiplied by the number of years of his or her Benefit Service rendered on and after May 1, 1994, and prior to January 1, 2005 up to 35 years of Benefit Service minus the number of years of Benefit Service used in (1)
above.
|
| (ii) | (A) | For each year (or portion thereof) of Benefit Service earned after December 31, 2004 and prior to July 1, 2013; |
| (1) |
1.0 percent of a Participant’s Total Compensation for each (or partial) calendar year beginning after December 31, 2004 and prior to June 30, 2013 not in excess of 80
percent of the Social Security Wage Base for such calendar year and
|
| (2) |
1.3 percent of such Participant’s Total Compensation for each (or partial) calendar year beginning after December 31, 2004 and prior to June 30, 2013 in excess of 80
percent of the Social Security Wage Base for such calendar year;
|
| (3) |
1.17 percent of the Participant’s Average Final Compensation not in excess of Covered Compensation and
|
| (4) |
1.67 percent of such Average Final Compensation in excess of Covered Compensation,
|
| (iii) |
Notwithstanding the foregoing, in no event shall the combined number of years of Benefit Service used to compute any Participant’s annual normal retirement Pension
under the provisions of subparagraph (i) and (ii) exceed 35 years. For purposes of determining the order in which Benefit Service shall be allocated between and counted under the provisions of subparagraph (i) or (ii) with respect to a
Participant who completes more than 35 years of Benefit Service, such Participant’s Benefit Service shall be allocated in the order that produces, based on consecutive years of Benefit Service, the largest annual normal retirement Pension for
each Participant.
|
| (c) |
In no event shall any Participant’s annual normal retirement Pension be less than the greatest annual amount of reduced early retirement Pension which the Participant
could have received under Section 4.03 before his or her Normal Retirement Date.
|
| (d) |
Subject to Section 5.01, in no event shall the Pension payable to a Participant under the Plan at his or her Normal Retirement Date be less than $120 multiplied by his
or her years of Benefit Service.
|
| (e) |
Notwithstanding any Plan provision to the contrary, the individuals named on Appendix C shall receive, in addition to any normal retirement Pension determined under
paragraph (b) above the amount of retirement Pension set forth in Appendix C. Payment of said amounts shall be in the form of an annuity for the life of the Participant, unless otherwise indicated on Appendix C, and will commence as of May
1, 2008.
|
| 4.02 |
Late Retirement
|
| (a) |
If a Participant postpones his or her retirement as provided in Section 4.01(a), upon his or her termination of employment from the Company and all Affiliated
Companies, he or she shall be entitled to a late retirement Pension beginning on the first day of the next calendar month, subject to the notice and timing requirements of Article 5, which shall be his or her late retirement date.
|
| (b) |
Subject to the provisions of Section 5.01, the annual late retirement Pension shall be an immediate Pension beginning on the Participant’s late retirement date and,
shall be equal to (i) the amount determined in accordance with Section 4.01(b) based on the Participant’s Benefit Service, Average Final Compensation, and Total Compensation accrued to his or her late retirement date, or, if greater, (ii) the
amount of the Pension to which the Participant would have been entitled if he or she had retired on his or her Normal Retirement Date, in either case based on his or her Average Final Compensation, Benefit Service and Total Compensation
determined as of such Normal Retirement Date or June 30, 2013, if earlier, under the provisions of the Plan as then in effect, recomputed as of the first day of each subsequent Plan Year before the Participant’s actual late retirement date
(and as of the actual late retirement date) as if each such date were the Participant’s late retirement date. Effective as of May 1, 1992, the late retirement Pension determined under the preceding sentence for a Participant who terminates
employment on and after May 1, 1992 shall never be less than an amount of Equivalent Actuarial Value to the Pension determined in accordance with Section 4.01(b) based on the Participant’s Benefit Service, Average Final Compensation, and
Total Compensation accrued to his or her Normal Retirement Date, or June 30, 2013, if earlier, recomputed as of the first day of each subsequent Plan Year before the Participant’s late retirement date (and as of the actual late retirement
date) as if each such date were the Participant’s late retirement date.
|
| (c) |
In the event a Participant commences receipt of his or her Pension while in active service under the provisions of Section 5.04(b), such commencement date shall not be
the Participant’s Annuity Starting Date for purposes of Article 5 and the Participant shall receive a late retirement Pension commencing on such date in an amount determined as if he or she had retired on such date. The Pension payable to
the Participant during his or her period of active service shall be in the form of a Qualified Joint and Survivor Annuity, if he or she is married, or as a single life annuity, if he or she is unmarried. In the event of the death of the
Participant during active service, the provisions of Section 4.06 shall apply with respect to any death benefit payable. Upon subsequent retirement, the Participant’s Pension shall be paid in accordance with Section 5.01(a) or (b), as
appropriate, unless he or she elects an optional form of payment under Section 5.02. Subsequently, as of the end of each prior Plan Year before the Participant’s actual late retirement date (and as of his or her actual late retirement date),
the Participant’s Pension shall be recomputed to reflect any additional accruals. The Participant’s recomputed Pension shall then be paid as of the following January 1 (or applicable as of his or her late retirement date). The Participant’s
recomputed Pension shall then be reduced by the Equivalent Actuarial Value of the total payments of his or her late retirement Pension made with respect to monthly payments other than for Non-Suspendible Months of continued employment which
were paid prior to each such recomputation to arrive at the Participant’s late retirement Pension; provided that no such reduction shall reduce the Participant’s late retirement Pension below the amount of late retirement Pension payable to
the Participant prior to the recomputation of such Pension.
|
| (d) |
Notwithstanding paragraphs (b) and (c) above, in the event a Participant remains in service after the April 1 following the calendar year in which he or she attains age
70½, and does not commence payment of his or her Pension while in service under the provisions of Section 5.04(b), then his or her Pension shall be the excess, if any, of (i) over (ii) where:
|
| (i) |
is the greater of (A) the Participant’s Pension determined in accordance with Section 4.01(b) as of his or her actual retirement date taking into account the
Participant’s Benefit Service, Average Final Compensation, and Total Compensation accrued as of that date, or June 30, 2013, if earlier or (B) an amount of Equivalent Actuarial Value to the Pension to which the Participant would have been
entitled under Section 4.01(b) if he or she retired at the end of the Plan Year preceding such April 1 based on accruals through such date or June 30, 2013, if earlier, recomputed in accordance with regulations issued by the U.S. Treasury
Department as of the first day of each calendar year which begins subsequent to said date (and as of his or her actual late retirement date) as if such date were the Participant’s late retirement date, and
|
| (ii) |
is the actuarial equivalent value of any distributions made with respect to the Participant’s retirement benefits after said date.
|
| (e) |
The pension payable to a Participant who is not a 5 percent owner (as defined in Section 416(i) of the Code) of the Company or an Affiliated Company and who is
receiving payments under the provisions of paragraph (c) and Section 5.04(b) as of December 31, 1996, shall continue to be governed by the provisions of paragraph (c) above on and after January 1, 1997.
|
| (f) |
For purposes of this Section 4.02, Equivalent Actuarial Value or actuarial equivalent value shall be determined on the basis set forth in Appendix A.
|
| 4.03 |
Early Retirement
|
| (a) |
A Participant who has not reached his or her Normal Retirement Date but who, prior to his or her termination of employment from the Company and all Affiliated
Companies, has reached his or her 55th birthday and completed 10 years of Eligibility Service may retire from service and receive an early retirement Pension beginning on the first day of the calendar month after the Benefits Administration
Board receives his or her written application to retire.
|
| (b) |
The early retirement Pension shall be a deferred Pension beginning on the Participant’s Normal Retirement Date and, subject to the provisions of Section 5.01, shall be
equal to his or her Accrued Benefit. However, the Participant may elect to receive an early retirement Pension beginning on the first day of any calendar month before his or her Normal Retirement Date, provided that an early payment date
shall be subject to the notice and timing requirements described in Article 5. In that case, the Participant’s Pension shall be equal to the deferred Pension reduced by one-third of one percent for each month by which the date the
Participant’s early retirement Pension begins precedes his or her Normal Retirement Date; provided, however, that no reduction shall apply if the Participant has reached age 62 and completed 20 years of Eligibility Service on the date he or
she terminates employment with the Company and all Affiliated Companies.
|
| 4.04 |
Vesting
|
| (a) |
A Participant shall be 100 percent vested in, and have a nonforfeitable right to, his or her Accrued Benefit upon completion of five years of Eligibility Service since
his or her 18th birthday. If the Participant’s employment with the Company and Affiliated Company is subsequently terminated for reasons other than retirement or death, he or she shall be eligible for a vested Pension after the Benefits
Administration Board receives his or her written application for the Pension.
|
| (b) |
The vested Pension shall begin on the Participant’s Normal Retirement Date and, subject to the provisions of Section 5.01, shall be equal to his or her Accrued
Benefit. However, if on the date of his or her termination, he or she had completed ten years of Eligibility Service, the Participant may elect to have his or her vested Pension begin on the first day of any calendar month on or after his or
her 55th birthday and before his or her Normal Retirement Date; provided that the election of an early payment date shall be subject to the notice and timing requirements described in Article 5. In that case, the Participant’s Pension shall
be equal to the vested Pension otherwise payable at his or her Normal Retirement Date reduced by one-third of one percent for each month by which the date the Participant’s vested Pension precedes his or her Normal Retirement Date.
|
| (c) |
Notwithstanding paragraph (b) above, effective as the date on or after January 1,
2014 designated by the Benefits Administration Board, a Participant who has not attained age 55 and who is eligible to receive a vested Pension under the Plan pursuant to the provisions of this Section 4.04 where the present value of such
vested Pension as determined pursuant to the provisions of Section 5.02 is more than $1,000 but not more than $5,000, may elect to receive such vested Pension in a single lump sum payment determined as provided under Section 5.02 - Option 7
as of the first day of any month following his or her termination of employment with the Company and Affiliated Company and prior to the first day of the calendar month in which his or her 55th birthday occurs.
|
| 4.05 |
Disability
|
| (a) |
Notwithstanding any other Plan provision to the contrary, a Participant who ceases to be actively employed by the Company prior to July 1, 2013 and while an Employee on
account of disability shall continue to be credited with (i) Eligibility Service but only for the period he or she is eligible for and continuously receiving either (1) disability benefits under the Company’s long-term disability plan or (2)
disability insurance benefits under the Social Security Act and (ii) Benefit Service for the period prior to July 1, 2013 during which he or she is continuously receiving the disability benefits described in clause (1) and (2) of this
sentence. With respect to a Participant who, on or after January 1, 2010 and prior to July 1, 2013, becomes disabled while in qualified military service (as defined in Section 414(u) of the Code) and while his or her reemployment rights are
protected by the Uniformed Services Employment and Reemployment Rights Act of 1994 and any related legislation or guidance, such Participant shall be deemed to be disabled for purposes of the Plan if he or she would qualify for disability
benefits under the Company’s long-term disability program even though he or she otherwise may be ineligible for benefits thereunder due to the injury occurring while in the military service. There shall also be included in his or her
Eligibility Service and Benefit Service any applicable waiting period for disability benefits under the Company’s long-term disability plan or the Social Security Act; provided no Benefit Service shall be credited for any period after June
30, 2013; and provided further that after expiration of such period the Participant becomes entitled to such long-term disability benefits or Social Security disability insurance benefits. Upon attaining age 65, the Participant shall be
entitled to a disability retirement Pension in an amount provided in paragraph (b) below. Such disability retirement Pension shall commence on the Participant’s Normal Retirement Date. The Total Compensation credited to a Participant for a
period of absence accruing on or after December 31, 2004 that is counted as Benefit Service under the preceding provisions of this paragraph (a), shall be the Participant’s base rate of compensation in effect immediately prior to the date he
or she ceased employment on account of disability.
|
| (b) |
Subject to Section 5.01, the disability retirement Pension shall be calculated as a normal retirement Pension in accordance with Section 4.01(b) as in effect on the
date the Participant’s Pension commences, based on his or her Average Final Compensation at the time he or she ceased employment on account of disability, his or her Total Compensation under Section 1.42 and paragraph (a) above, and his or
her Benefit Service under Section 3.02 and paragraph (a) above. Notwithstanding the foregoing, all Benefit Service, Average Total Compensation and Total
Compensation accruals under the ongoing provisions of this Section 4.05 shall cease as of June 30, 2013.
|
| (c) |
If the Participant’s disability benefits under the Company’s long-term disability plan or disability insurance benefits under the Social Security Act are discontinued
prior to his or her Normal Retirement Date and he or she is not restored to service with the Company or an Affiliated Company, he or she shall be entitled to retire on an early retirement Pension as of the first day of the calendar month
immediately after such discontinuance or to receive a vested retirement Pension payable in accordance with Section 4.04 if at the date he or she ceased to be disabled he or she had completed the service requirements for such Pension and, in
the case of an early retirement Pension, at the date he or she ceased to be disabled he or she had attained the required age for early retirement. In either case, the Pension shall be computed on the basis of his or her Average Final
Compensation, Total Compensation, at the date of discontinuance of disability benefit determined in accordance with Section 1.42 and paragraph (a) above, and Benefit Service at the date of discontinuance of disability benefits, determined in
accordance with Article 3 and paragraph (a) above, and the benefit formula in effect on the date he or she ceases to be disabled.
|
| 4.06 |
Spouse’s Pension
|
| (a) |
If a Participant:
|
| (i) |
dies while employed by the Company or any Affiliated Company and prior to his or her Annuity Starting Date having met the requirements for any Pension under Section
4.01, 4.02, 4.03 of 4.04, or
|
| (ii) |
dies after retiring on any Pension under Section 4.01, 4.02 or 4.03, or after terminating service on or after August 23, 1984 with entitlement to a vested Pension, but
in either case before his or her Annuity Starting Date, or
|
| (iii) |
dies while accruing service under Section 4.05 and while entitled to any Pension, but before his or her Annuity Starting Date,
|
| (b) | (i) | If the spouse’s Pension is payable to the Participant’s Spouse, the spouse’s |
| (A) |
if the Participant dies in active service with the Company or any Affiliated Company or while accruing Eligibility Service under Section 4.05 in either case after
having completed at least five years of Eligibility Service, or after retiring early but before his or her Annuity Starting Date, the Spouse may elect to begin receiving payments as of the first day of any month following the Participant’s
date of death and prior to what would have been his or her Normal Retirement Date; and
|
| (B) |
if the Participant dies after terminating service with the Company and all Affiliated Companies with the right to a vested Pension and having completed ten years of
Eligibility Service, but prior to his or her Annuity Starting Date, the Spouse may elect to begin receiving payments as of the first day of any month following what would have been the Participant’s 55th birthday (or following his or her date
of death, if later) and prior to what would have been his or her Normal Retirement Date.
|
| (ii) |
If the spouse’s Pension is payable to the Participant’s surviving Registered
Domestic Partner, the spouse’s Pension shall commence as of the first day of the month coincident with or next following the date on which the Benefits Administration Committee is officially notified of the Participant’s death, but only after
written application is made to commence such payment, provided, however such payment shall not commence later than one year following the Participant’s date of death.
|
| (c) | (i) | In the case of a Participant who dies in active service with the Company or any |
| (ii) |
In the case of any other eligible Participant who dies prior to his or her Annuity Starting Date, the spouse’s Pension shall be equal to the amount of benefit the
Spouse (or surviving Registered Domestic Partner) would have received if the Pension to which the Participant was entitled at his or her date of death had commenced on his or her Normal Retirement Date (or the first day of the month following
his or her date of death, if later) in the form of a Qualified Joint and Survivor Annuity and the Participant had died immediately thereafter. The spouse’s Pension shall be further adjusted to reflect its commencement prior the Participant’s
Normal Retirement Date as follows:
|
| (A) |
if the spouse’s Pension payable to a Spouse (or Registered Domestic Partner) of a Participant who dies after retiring but prior to his or her Annuity Starting Date
commences prior to the what would have been the Participant’s Normal Retirement Date, the amount of the Pension payable to the Spouse (or Registered Domestic Partner) will be based on the amount of early retirement Pension to which the
Participant would have been entitled if he or she had requested benefit commencement at that earlier commencement date, reduced in accordance with Section 4.03(b); and
|
| (B) |
if the spouse’s Pension payable to a Spouse (or surviving Registered Domestic Partner) of a Participant who dies after terminating with the right to a vested Pension
and having completed at least ten years of Eligibility Service, but prior to his or her Annuity Starting Date commences prior to what would have been the Participant’s Normal Retirement Date, the amount of the Pension payable to the Spouse
(or Registered Domestic Partner) shall be based on the amount of vested Pension to which the Participant would have been entitled if he or she had requested benefit commencement at that earlier date, reduced in accordance with Section 4.04(b)
and in the event such commencement date is prior to the 55th anniversary of the Participant’s birth, the benefit payment to the Registered Domestic Partner shall be of Equivalent Actuarial Value to the benefit otherwise payable hereunder to
the Registered Domestic Partner on the date the Participant would have attained age 55.
|
| 4.07 |
Lost Participants
|
| (a) |
Notwithstanding the foregoing provisions of Article 4, in the event a Participant's Pension otherwise scheduled to commence on the Participant’s Normal Retirement Date
(or late retirement date, if applicable) is delayed because the Benefits Administration Board is unable to locate the Participant, the Benefits Administration Board shall commence payment as soon as practicable after the date the Participant
is located. Unless the Participant elects an optional form of payment in accordance with the provisions of Section 5.02, payment shall be in the automatic form set forth in Section 5.01 applicable to the Participant on his or her Annuity
Starting Date. The Pension payable to the Participant as of his or her Annuity Starting Date shall be of Equivalent Actuarial Value to the Pension otherwise payable to the Participant on his or her Normal Retirement Date.
|
| (b) |
In lieu of the Pension otherwise payable under paragraph (a) above, a Participant described in paragraph (a) whose Pension will be paid in the form of an annuity may
elect to receive:
|
| (i) |
a reduced Pension equal to the Pension otherwise payable under paragraph (a) above (as adjusted to reflect the form of payment elected by the Participant under the
provisions of Section 5.01 or 5.02, as applicable) reduced by the Equivalent Actuarial Value of the lump sum payment under clause (ii)
below, and
|
| (ii) |
a lump sum payment equal to the sum of the monthly payments the Participant would have received during the period beginning on his or her Normal Retirement Date (or
late retirement date, if applicable) and ending with the month preceding his or her Annuity Starting Date. The amount of such monthly payments shall be determined as of the Participant’s Normal Retirement Date (or late retirement date, if
applicable) on the basis of the actual form of payment in which the Participant’s Pension under subparagraph (i) above is payable.
|
| (c) |
For purposes of paragraph (a) and (b), Equivalent Actuarial Value shall be determined on the basis set forth in Appendix A.
|
| 4.08 |
Maximum Benefit Limitation
|
| (a) |
The provisions of Section 415 of the Code are incorporated into the Plan by reference. The
following provisions of this Section reflecting the increased limitations of Section 415(b) of the Code effective on and after January 1, 2002 shall apply to all current and former Participants (with benefits limited by Section 415(b) of the
Code) who have an Accrued Benefit under the Plan immediately prior to January 1, 2002 (other than an Accrued Benefit resulting from a benefit increase solely as a result of the increases in limitations under Section 415(b).
|
| (b) |
Notwithstanding any other provision of the Plan, the annual benefit to which a Participant is entitled under the Plan shall not, in any Limitation Year, be in an amount
which would exceed the applicable limitations under Section 415 of the Code and regulations thereof. As of January 1 of each calendar year commencing on or after January 1, 2003, the dollar limitation as determined by the Commissioner of
Internal Revenue for that calendar year shall become effective as the maximum permissible dollar amount of benefit payable under the Plan during the Limitation Year ending within that calendar year including benefit payable to Participants
who retired prior to that Limitation Year. The determination of the amount of any increase in the Pension payable to a Participant in receipt of a Pension on the
last day of the prior Limitation Year shall be determined based on the Participant's age at the date his or her Pension commenced.
|
| (c) |
To the extent required to comply with Section 415 of the Code, if a Participant participates in more than one defined benefit pension plan required to be aggregated
with this Plan under Section 415 of the Code and if the provisions of Section 415 require an adjustment to benefits to comply with Section 415 of the Code, adjustments to a Participant’s benefits payable with respect to such Participant
shall be made first under any other defined benefit plan maintained by the Company or an Affiliated Company which provides for a reduction in this circumstance prior to making any adjustment under this Plan.
|
| (d) |
The term “remuneration” for purposes of applying the limitations under Section 415 of the Code with respect to any Participant shall mean the wages, salaries, and other
amounts paid in respect of such Participant by the Company or an Affiliated Company for personal services actually rendered and including any elective amounts that are not includible in gross income of the Participant by reason of Section
125, 132(f), 402(g) or 457(b) of the Code and shall exclude other deferred compensation, stock options, and other distributions which receive special tax benefits under the Code. For Limitation Years beginning on or after July 1, 2007, “remuneration” shall include payments made by the later of 2½ months after severance from employment, or the end of the Limitation Year that includes the date of
severance from employment, if, absent a severance from employment, such payments would have been paid to the employee while the employee continued in employment with the Company or an Affiliated Company, and are regular compensation for
services during the employee’s regular working hours, compensation for services outside the employee’s regular working hours (such as overtime or shift differential), commissions, bonuses or other similar compensation. Effective
for Limitation Years beginning on and after July 1, 2007, for purposes of applying the maximum benefit limitations under this Section 4.08, remuneration shall not exceed the limitation on compensation under Section 401(a)(17) of the Code.
|
| (i) |
salary continuation payments for military service as described in Treasury Regulation Section 1.415(c)-2(e)(4);
|
| (ii) |
compensation paid after severance from employment as described in Treasury Regulation Section 1.415(c)-2(e)(3)(ii) and (iii)(A), and
|
| (iii) |
foreign income as described in Treasury Regulation Section 1.415(c)-2(g)(5)(i), excluding amounts described in Treasury Regulation Section 1.415(c)-2(g)(5)(ii).
|
| 4.09 |
Transfers and Employment With an Affiliated Company
|
| (a) |
If an Employee (i) becomes employed by the Company in any capacity other than as an Employee as defined in Article 1, (ii) becomes employed by an Affiliated Company, or
(iii) becomes a Leased Employee, he or she shall retain any Benefit Service he or she has under this Plan. Upon his or her later retirement or termination of employment with the Company or Affiliated Company (or upon benefit commencement in
the case of a Leased Employee), any benefits to which the Employee is entitled under the Plan shall be determined under the Plan provisions in effect on the date he or she ceases to be an Employee as defined in Article 1, and only on the
basis of his or her Benefit Service, Average Final Compensation, and Total Compensation accrued prior to July 1 , 2013 and while he or she was an Employee as defined in Article 1.
|
| (b) |
Subject to the Break in Service provisions of Article 3 and except as otherwise provided in paragraphs (c) and (d) below, in the case of a person who (i) was originally
employed by the Company in any capacity other than as an Employee as defined in Article 1, (ii) was originally employed by an Affiliated Company, or (iii) was originally providing services to the Company as a Leased Employee, and thereafter
becomes an Employee, upon his or her later retirement or termination of employment, the benefits payable under the Plan shall be computed under the Plan provisions in effect at that time, and only on the basis of the Benefit Service, Average
Final Compensation, and Total Compensation accrued while he or she is an Employee as defined in Article 1 and prior to July 1, 2013.
|
| (c) |
Notwithstanding any Plan provision to the contrary, in the case of a person who is employed by the Company as an Employee prior to January 1, 2005 and who was
previously employed by an Affiliated Company, other than a person who retired or otherwise terminated employment with the Company prior to May 1, 1984, the annual Pension computed under the Plan shall include as Benefit Service any period of
employment with an Affiliated Company rendered prior to January 1, 2005 (but only during the period it qualified as such); provided, the annual Pension payable hereunder shall be reduced by the Equivalent Actuarial Value of any retirement
benefit the Participant received or is entitled to receive under a retirement plan of such Affiliated Company with respect to any service which is recognized as Benefit Service for purposes of computation of benefits under this Plan.
Notwithstanding any Plan provision to the contrary, in the case of a person who is employed by the Company as an Employee on or after January 1, 2005 and prior to July 1, 2013 and who was previously employed by an Affiliated Company, the
annual Pension computed under the Plan shall include as Benefit Service any period of employment with an Affiliated Company rendered prior to January 1, 2005 (but only during the period it qualified as such) to the extent such employment was
recognized as service for the purpose of calculating a benefit under a defined benefit plan maintained by such Affiliated Company; provided, the annual Pension payable hereunder shall be reduced by the Equivalent Actuarial Value of any
retirement benefit the Participant received or is entitled to receive under a defined benefit plan of such Affiliated Company with respect to any service which is recognized as Benefit Service for purposes of computation of benefits under
this Plan.
|
| (d) |
Notwithstanding any Plan provisions to the contrary, with respect to any person who immediately prior to the date on which he or she becomes an Employee is in the
employ of the Company as an employee but not as an Employee, the annual Pension computed under the Plan shall include as Benefit Service any period of employment with the Company rendered as an employee prior to January 1, 2005.
|
| (e) |
Notwithstanding the foregoing provisions of this Section 4.09, the Pension computed under Section 4.01, 4.02, or 4.03 of any Participant previously employed by The
Ronald Press Company (“Ronald”), excluding Employees who have retired or otherwise terminated their employment with the Company prior to May 1, 1984, shall be equal to the Pension which the Participant would have been entitled to if he or she
had been credited with service with Ronald, in addition to his or her service with the Company, minus an amount equal to an annual annuity commencing at age 65 for the life of the Participant which could have been obtained in September 1977
(under the actuarial assumptions used by the Plan) for an amount equal to the lump sum payment the Participant received from Ronald in September 1977 as additional compensation (being the payment referred to in Section 3.3 of the Stock
Purchase Agreement between the Company and the shareholders of Ronald). The provisions of this paragraph (d) shall be applicable only if it results in a larger Pension to the Participant.
|
| 5.01 |
Automatic Form of Payment
|
| (a) |
If the Participant is not married on his or her Annuity Starting Date, his or her Pension shall be payable in monthly installments ending with the last monthly payment
before death, unless the Participant has elected an optional benefit as provided in Section 5.02.
|
| (b) |
If the Participant is married on his or her Annuity Starting Date or has a Registered Domestic Partner on his or her Annuity Starting Date, and if he or she has not
elected an optional form of benefit as provided in Section 5.02, the Pension payable shall be in the form of a Qualified Joint and Survivor Annuity of Equivalent Actuarial Value to the Pension otherwise payable, providing for a reduced
Pension payable to the Participant during his or her life, and after his or her death providing that one-half of that reduced Pension will continue to be paid during the life of, and to, the Spouse (or Registered Domestic Partner) to whom he
or she was married at his or her Annuity Starting Date. Notwithstanding the preceding, if an option described in Section 5.02 provides for payments continuing after the Participant’s death for the life of a Beneficiary at a rate of at least
50 percent but not more than 100 percent of the Pension payable for the life of the Participant and if such option, with the Spouse to whom the Participant is married on his or her Annuity Starting Date or the Participant’s Registered
Domestic Partner on his or her Annuity Starting Date) named as Beneficiary, would be of greater actuarial value than the joint and survivor annuity described above, such option with such Spouse (or Registered Domestic Partner) as Beneficiary
shall be the Qualified Joint and Survivor Annuity.
|
| (c) |
Notwithstanding any Plan provision to the contrary, effective as of January 1, 2014, if the Participant’s Annuity Starting Date occurs on or after his or her Normal
Retirement Date and the present value of his or her Pension amounts to $5,000 or less, or if the Participant’s Annuity Starting Date occurs before his or her Normal Retirement Date and the present value of his or her Pension amounts to
$1,000 or less as of such Annuity Starting Date, a lump sum payment of Equivalent Actuarial Value shall be made in lieu of all benefits. Notwithstanding any Plan provision to the contrary, effective as of January 1, 2014, a lump sum payment
of Equivalent Actuarial Value shall be made in lieu of all benefits if the present value of the Pension payable on behalf of a Participant to a his or her spouse, Registered Domestic Partner or other Beneficiary determined as of his or her
Normal Retirement Age or actual date of death, if later, amounts to $5,000 or less. In determining the amount of a lump sum payment payable under this paragraph, (i) Equivalent Actuarial Value shall mean a benefit, in the case of a lump sum
benefit payable prior to a Participant’s Normal Retirement Age, of Equivalent Actuarial Value to the benefit which would otherwise have been provided commencing at the Participant’s Normal Retirement Age, and (ii) the Equivalent Actuarial Value shall be determined by using the IRS Mortality Table and the IRS Interest Rate. Such Equivalent Actuarial Value shall be determined as of the
Participant’s Annuity Starting Date by using the IRS Mortality Table and the IRS Interest Rate in effect as of such Annuity Starting Date. The lump sum payment shall be made as soon as practicable following the determination that the amount
qualifies for distribution under this paragraph. The determination as to whether a lump sum payment is due shall be made as in accordance with procedures established by the Benefits Administration Committee on a basis uniformly applicable to
all Participants similarly situated. In no event shall such lump sum payment be made following the date Pension payments have commenced as an annuity.Notwithstanding the foregoing, in calculating the amount of a lump sum payment under this
paragraph (c) with an Annuity Starting Date on or after January 1, 2014 and prior to January 1, 2015, in no event shall such lump sum payment be less than the lump sum amount that would have been provided if the IRS Interest Rate under
Section 1.21(a) and the Stability Period under Section 1.41(i) continued in effect for the 2014 calendar year.
|
| 5.02 |
Optional Forms of Payment
|
| Option 1. |
A modified Pension payable during the Participant’s life, and after his or her death payable during the life of, and to, the Beneficiary named by him or her when he or
she elected the option.
|
| Option 2. |
A modified Pension payable during the Participant’s life, and after his or her death payable at 50% (or, effective with respect to an Annuity Starting Date occurring on
or after May 1, 2008, 75%) the rate of his or her modified Pension during the life of, and to, the Beneficiary named by him or her when he or she elected the option.
|
| Option 3. |
Either Option 1 or Option 2; provided, that in the event the Beneficiary predeceases the Participant, the annual Pension payable to the Participant after the
Beneficiary’s death shall equal the Pension that would have been payable pursuant to Section 5.01(a).
|
| Option 4. |
In the case of a Participant who retires before the first day on which he or she shall be entitled (upon proper application) to receive his or her old age Social
Security insurance benefit (regardless of reduction on account of commencement of such Social Security benefit prior to Social Security Retirement Age), a Pension payable until such date during the Participant’s lifetime, and at any reduced
amount thereafter, but not less than zero, for the remainder of the Participant’s life. For purposes of this Option 4, “Social Security Benefit” means the old age insurance benefit which the Employee is entitled to receive under Title II of
the Social Security Act as in effect on the date he or she retires or otherwise terminates employment, or which he or she would be entitled to receive if he or she did not disqualify himself or herself from receiving Social Security benefits
by entering into covered employment or for any other reason. In computing any Social Security Benefit, no wage index adjustment or cost-of-living adjustment shall be assumed with respect to any period after the end of the calendar year in
which the Employee retires or terminates service. The Employee’s Social Security Benefit shall be determined on the basis of the Employee’s actual earnings, where available from Company records, in conjunction with a salary increase
assumption based on the actual yearly change in the national average wages as determined by the Social Security Administration for all other years prior to retirement or other termination of employment with the Company where actual earnings
are not so available.
|
| Option 5. |
A Pension payable for the Participant’s life, with no Pension payable after his or her death.
|
| Option 6. |
Effective as of the date on or after January 1, 2014 designated by the Benefits Administration Board, a lump sum payment of Equivalent Actuarial Value to the Pension
otherwise payable to the Participant, provided the amount of the lump sum payment at the Annuity Starting Date exceeds $1,000 but not $5,000. In determining
the amount of a lump sum optional benefit available under this Option, (a) Equivalent Actuarial Value shall mean a benefit, in the case of a lump sum benefit payable prior to a Participant’s Normal Retirement Date, of equivalent value to the
benefit which would otherwise have been provided commencing at the Participant’s Normal Retirement Date and (b) in no event shall the Equivalent Actuarial
Value be less than the amount determined by using the IRS Mortality Table and the IRS Interest Rate.
|
| 5.03 |
Election of Options
|
| (a) |
A married Participant’s election of any option shall only be effective if Spousal Consent to the election is received by the Benefits Administration Board, unless:
|
| (i) |
the option provides for monthly payments to his or her Spouse for life after the Participant’s death, in an amount equal to at least 50 percent but not more than
100 percent of the monthly amount payable under the option to the Participant, and
|
| (ii) |
the option is of Equivalent Actuarial Value to the Qualified Joint and Survivor Annuity.
|
| (b) |
Upon receipt of notification that a Participant wishes to commence payments of his or her Pension, the Company shall furnish to each Participant a written explanation
in nontechnical language of the terms and conditions of the Pension payable to the Participant in the normal and optional forms described in Sections 5.01 and 5.02. Such explanation shall include a general description of the eligibility
conditions for, and the material features and relative values of, the optional forms of Pensions under the Plan, any rights the Participant may have to defer commencement of his or her Pension, the consequences of failing to defer receipt of his or her Pension, the requirement for Spousal Consent as provided in paragraph (a) above, and the right of the Participant to make, and to revoke,
elections under Section 5.02.
|
| (c) |
The Company must provide the notice required by paragraph (b) no more than 90 days and no less than 30 days prior to the Participant’s Annuity Starting Date. A
Participant’s Annuity Starting Date may not occur less than 30 days after receipt of the notice, except as otherwise provided in paragraph (d). An election under Section 5.02 shall be made on a form provided by the Benefits Administration
Board and may be made during the 90-day period following the date the notice is furnished to the Participant, but not prior to the date the Participant receives the written explanation described in paragraph (b). Notwithstanding the
foregoing, an election made after the Annuity Starting Date shall be deemed to have been made within the election period if (i) the written explanation described in paragraph (b) is provided to the Participant before the Annuity Starting
Date, (ii) distribution commences not later than 90 days after the date such written explanation is provided to the participant, and (iii) the Participant’s election is made before the distribution commences. A distribution shall not be
deemed to violate the requirements of clause (ii) of the preceding sentence merely because, due solely to administrative delay, it commences more than 90 days after the date such written explanation is provided to the Participant.
|
| (d) |
Notwithstanding the provisions of paragraph (c) above, a Participant may, after having received the notice required by paragraph (b), affirmatively elect to have his or
her benefit commence sooner than 30 days following his or her receipt of the notice, provided all of the following requirements are met:
|
| (i) |
the Benefits Administration Board clearly informs the Participant that he or she has a period of at least 30 days after receiving the notice to decide when to have his
or her benefits begin and, if applicable, to choose a particular optional form of payment;
|
| (ii) |
the Participant affirmatively waives the 30-day period referred to above and elects a date for his or her benefits to begin and, if applicable, an optional form of
payment, after receiving the notice;
|
| (iii) |
the Participant is permitted to revoke his or her election until the later of his or her Annuity Starting Date or seven days following the day he or she received the
notice;
|
| (iv) |
payment does not commence less than seven days following the day after the notice is received by the Participant (except the 90 day period may be extended due to
administrative delay; and
|
| (v) |
the Participant’s Annuity Starting Date is after the date the notice is provided.
|
| (e) |
An election of an option under Section 5.02 may be revoked on a form provided by the Benefits Administration Board, and subsequent elections and revocations may be made
at any time and from time to time during the election period specified in paragraph (c) or (d) above, whichever is applicable. An election of an optional benefit shall be effective on the Participant’s Annuity Starting Date and may not be
modified or revoked after his or her Annuity Starting Date unless otherwise provided under paragraph (d) above. A revocation of any election shall be effective when the completed form is filed with the Benefits Administration Board. If a
Participant who has elected an optional benefit dies before the date the election of the option becomes effective, the election shall be revoked except as provided in Section 4.06(c). If the Beneficiary designated under an option dies before
the date the election of the option becomes effective, the election shall be revoked.
|
| 5.04 |
Commencement of Payments
|
| (a) |
Except as otherwise provided in Article 4 or this Article 5, payment of a Participant’s Pension shall begin as soon as administratively practicable following the latest
of (i) the Participant’s 65th birthday, (ii) the fifth anniversary of the date on which he or she became a Participant, or (iii) the date he or she terminates service with the Company, (but not more than 60 days after the close of the Plan
Year in which the latest of (i), (ii) or (iii) occurs).
|
| (b) |
Notwithstanding the preceding paragraph, in the case of a Participant who is 5 percent owner (as defined in Section 416(i) of the Code) who remains in the active
service of the Company or an Affiliated Company after April 1 following the calendar year in which he or she attains age 70½ in accordance with the provisions of Section 4.02(c), the Participant’s Pension shall begin not later than the
April 1 following the calendar year in which he or she attains age 70½. Notwithstanding the foregoing, in the case of any Participant who is not a 5 percent owner and who remains in active service of the Company or an Affiliated Company
after the April 1 of the calendar year in which he or she attains age 70½, such Participant’s Pension shall be payable as of the last day of the month following the date he or she terminates employment with the Company and all Affiliated
Companies, subject to the notice and timing requirements of Article 5, unless otherwise required to commence earlier to comply with applicable law.
|
| 5.05 |
Distribution Limitation
|
| (b) |
If the Participant’s Pension is being distributed in the form of a joint and survivor annuity for the joint lives of the Participant and a non-Spouse Beneficiary,
annuity payments to be made on or after the Participant’s required beginning date to the designated beneficiary after the Participant’s death must not at any time exceed the applicable percentage of the annuity payment for such period that
would have been payable to the Participant using the table set forth in Q&A-2(c)(2) of Section 1.401(a)(9)-6 of the U. S. Treasury Department regulations, in the manner describe in Q&A-2(c)(1) of the regulations, to determine the
applicable percentage.
|
| (c) |
For purposes of this Section, the following definitions shall apply:
|
| (iii) |
Life expectancy. Life expectancy as computed using the Single Life Table in Section 1.401(a)(9)-9 of the Treasury regulations.
|
| (iv) |
Required beginning date. The date specified in Section 5.04(b).
|
| 5.06 |
Direct Rollover of Certain Distributions
|
| (a) |
Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this Article, a distributee may elect, at the time
and in the manner prescribed by the Benefits Administration Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
|
| (b) |
The following definitions apply to the terms used in this Section:
|
| (i) |
“Eligible rollover distribution” means any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover
distribution does not include:
|
| (A) |
any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten years or more;
|
| (B) |
any distribution to the extent such distribution is required under Section 401(a)(9) of the Code;
|
| (C) |
after-tax amounts unless such amount is rolled over or transferred (i.e., directly rolled) to an individual retirement account or individual retirement annuity
described in Section 408(a) or 408(b) of the Code, respectively, or effective as of January 1, 2008 , a Roth individual account described in Section 408A(b) of the Code or transferred to a defined contribution plan qualified under Section
401(a) of the Code that agrees to separately account for such amount; or for taxable years beginning after December 31, 2006 to a defined benefit plan qualified under Section 401(a) of the Code or to an annuity contract described in Section
403(b) of the Code, if such qualified plan or contract provides for separate accounting for such amounts; and
|
| (D) |
effective on and after January 1, 2002, any in-service withdrawal that is made on account of hardship.
|
|
(ii)
|
An “eligible retirement plan” means any of the following types of Plans that accept the distributee’s eligible rollover:
|
|
(A)
|
an individual retirement account or an individual retirement annuity described in Section 408(a) and 408(b) of the Code, respectively;
|
|
(B)
|
an annuity plan described in Section 403(a) of the Code;
|
|
(C)
|
a qualified Plan described in Section 401(a) of the Code;
|
|
(D)
|
effective January 1, 2002, an annuity contract described in Section 403(b) of the Code;
|
|
(E)
|
effective January 1, 2002, an eligible plan under Section 457(b) of the Code which is maintained by a State, political subdivision of a state, or
any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan; and
|
|
(F)
|
effective January 1, 2008, a Roth IRA described in Section 408A of the Code.
|
| (iii) |
A “distributee” includes an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving Spouse and the Employee’s or former Employee’s
Spouse or former Spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the Spouse or former Spouse; and
|
| (iv) |
A “direct rollover” is a payment by the Plan to the eligible retirement plan specified by the distributee.
|
| (c) |
Notwithstanding any provision of this Section to the contrary, effective as of January 1, 2007, the non-spouse Beneficiary of a deceased Participant may elect, at the
time and in the manner prescribed by the Benefits Administration Board, to directly rollover any portion of his or her distribution from the Plan to an individual retirement account or annuity described in Section 408(a) or 408(b) of the Code
or effective as of January 1, 2008 as Roth IRA described in Section 408A of the Code, (collectively “IRA”) that is established on behalf of the designated beneficiary and that will be treated as an inherited IRA pursuant to the provisions of
Section 402(c)(11) or Section 408(d)(3)(c)(ii) of the Code.
|
| 6.01 |
Company’s Contributions
|
| 6.02 |
Return of Contributions
|
| (a) |
The Company’s contributions to the Plan are conditioned upon their deductibility under Section 404 of the Code. If all or part of the Company’s deductions for
contributions to the Plan are disallowed by the Internal Revenue Service, the portion of the contributions to which that disallowance applies shall be returned to the Company without interest, but reduced by any investment loss attributable
to those contributions. The return shall be made within one year after the date of the disallowance of deduction.
|
| (b) |
The Company may recover without interest the amount of its contributions to the Plan made on account of a mistake in fact, reduced by any investment loss attributable
to those contributions, if recovery is made within one year after the date of those contributions.
|
| 7.01 |
Named Fiduciary and Administrator
|
| 7.02 |
Appointment and Duties of Benefits Administration Board
|
| 7.03 |
Appointment and Duties of Plan Asset Committee
|
| 7.04 |
Meetings
|
| 7.05 |
Action of Majority
|
| 7.06 |
Compensation and Bonding
|
| 7.07 |
Establishment of Rules
|
| 7.08 |
Prudent Conduct
|
| 7.09 |
Actuary
|
| 7.10 |
Maintenance of Accounts
|
| 7.11 |
Service in More Than One Fiduciary Capacity
|
| 7.12 |
Limitation of Liability
|
| 7.13 |
Indemnification
|
| 7.14 |
Appointment of Investment Manager
|
|
(a)
|
has the power to manage, acquire or dispose of any asset of the Plan;
|
|
(b)
|
is (i) registered as an investment advisor under the Investment Advisors Act of 1940, (ii) a bank, as defined in that Act, or
(iii) an insurance company qualified to perform services described in paragraph (a) above; and
|
| (c) |
has acknowledged in writing that he or she is a fiduciary with respect to the Plan.
|
| 7.15 |
Expenses of Administration
|
| 7.16 |
Non-Discrimination
|
| 7.17 |
Claims and Review Procedures
|
|
(a)
|
the specific reasons for the denial;
|
|
(b)
|
specific references to pertinent Plan provisions on which the denial is based;
|
|
(c)
|
a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of
why such material or information is necessary; and
|
|
(d)
|
an explanation of the claim review procedure set forth in this Section 7.17.
|
| (a) |
The claimant’s right to receive, upon request and free of charge, copies of all documents and records relevant to the claim, including any guidelines, protocols, or
similar criteria that was relied upon by the Review Panel;
|
| (b) |
If relevant, an explanation of any scientific or clinical judgment that was the basis of the determination; and
|
| (c) |
The following statement: “You and the Plan may have other voluntary alternative dispute resolution options, such as mediation. One way to find out what may be
available is to contact your local U.S. Department of Labor office.”
|
| 7.18 |
Limitations of Time for Submitting Claims and Filing Suits
|
| 8.01 |
Funding Agent
|
| 8.02 |
Exclusive Benefit Rule
|
| 9.01 |
Nonalienation
|
| (a) |
Except as required by any applicable law, or by paragraph (b), no benefit under the Plan shall in any manner be anticipated, assigned or alienated, and any attempt to
do so shall be void. However, payment shall be made in accordance with the provisions of any judgment, decree, or order which:
|
| (i) |
creates for, or assigns to, a spouse, former spouse, child or other dependent of a Participant the right to receive all or a portion of the Participant’s benefits under
the Plan for the purpose of providing child support, alimony payments or marital property rights to that spouse, child or dependent,
|
| (ii) |
is made pursuant to a State domestic relations law,
|
| (iii) |
does not require the Plan to provide any type of benefit, or any option, not otherwise provided under the Plan, and
|
| (iv) |
otherwise meets the requirements of Section 206(d) of ERISA, as amended, as a “qualified domestic relations order,” as determined by the Benefits Administration Board.
|
| (b) |
A Participant’s benefits under the Plan shall be offset by the amount the Participant is required to pay to the Plan under the circumstances set forth in
Section 401(a)(13)(C) of the Code.
|
| 9.02 |
Conditions of Employment Not Affected by Plan
|
| 9.03 |
Facility of Payment
|
| (a) |
If the Benefits Administration Board shall find that a Participant or other person entitled to a benefit is unable to care for his or her affairs because of illness or
accident or because he or she is a minor, the Benefits Administration Board may direct that any benefit due him or her, unless claim shall have been made for the benefit by a duly appointed legal representative, be paid to his or her spouse,
a Registered Domestic Partner, a child, a parent or other blood relative, or to a person with whom he or she resides. Any payment so made shall be a complete discharge of the liabilities of the Plan for that benefit.
|
| (b) |
Beneficiary’s Ability to Disclaim Interest in Plan
|
| 9.04 |
Information
|
| 9.05 |
Top-Heavy Provisions
|
| (a) |
The following definitions apply to the terms used in this Section:
|
| (i) |
“applicable determination date” means the last day of the preceding Plan Year;
|
| (ii) |
“top-heavy ratio” means the ratio of (A) the present value of the cumulative Accrued Benefits under the Plan for key employees to (B) the present value of the
cumulative Accrued Benefits under the Plan for all key employees and non-key employees; provided, however, that if an individual has not performed services for the Company at any time during the one-year period ending on the applicable
determination date, any accrued benefit for such individual (and the account of such individual) shall not be taken into account, and provided further, that the present values of Accrued Benefits under the Plan for an employee as of the
applicable determination date shall be increased by the distributions made with respect to the employee under the Plan and any aggregated with the Plan under Section 416(g)(2) of the Code during the one-year period (five-year period in the
case of a distribution made for a reason other than severance from employment, death or disability) ending on the applicable determination date, and any
distributions made with respect to the employee under a termination which, had it not been terminated, would have been in the required aggregation group;
|
| (iii) |
“applicable valuation date” means the date within the preceding Plan Year as of which annual Plan costs are or would be computed for minimum funding purposes;
|
| (iv) |
“key employee” means any employee or former employee (including any deceased employee) who at any time during the Plan Year that includes the applicable determination
date was an officer of a Company or an Affiliated Company having remuneration greater than $130,000 (as adjusted under Section 416(i)(1) of the Code for Plan Years beginning after December 31, 2002), a 5 percent owner (as defined in Section
416(i)(1)(B)(i) of the Code) of a Company or an Affiliated Company or a one percent owner (as defined in Section 416(i)(1)(B)(ii) of the Code) of a Company or an Affiliated Company having remuneration greater than $150,000. The determination
of which is a key employee shall be made in accordance with Section 416(i) of the Code and the applicable regulations and other guidance of general applicability issued thereunder). For purposes of this Section, Remuneration shall mean the
wages, salaries and other amounts paid in respect of such employee by the Company or an Affiliated Company for personal services actually rendered, including by way of limitation, bonuses, overtime payments and commissions; but excluding
deferred compensation, stock options and other distributions which receive special tax benefits under the Code. Remuneration shall include elective deferrals as defined in Section 402(g)(3) of the Code and amounts contributed by the Company
or an Affiliated Company pursuant to a salary reduction agreement which are not included in the gross income of the employee under Section 125, 132(f)(4) or 457 of the Code.
|
| (v) |
“non-key employee” means any employee who is not a key employee;
|
| (vi) |
“average Remuneration” means the average annual remuneration of a Participant for the five consecutive years of his or her Eligibility Service after December 31, 1983
during which he or she received the greatest aggregate remuneration, as limited by Section 401(a)(17) of the Code, from the Company or an Affiliated Company, excluding any remuneration for service after the last Plan Year with respect to
which the Plan is top-heavy. For purposes of this Section 9.05 “remuneration” shall have the same meaning as set forth in Section 4.08(d).
|
| (vii) |
“required aggregation group” means each other qualified plan of the Company or an Affiliated Company (including plans that terminated within the five-year period ending
on the determination date) in which there are members who are key employees or which enables the Plan to meet the requirements of Section 401(a)(4) or 410 of the Code; and
|
| (viii) |
“permissive aggregation group” means each plan in the required aggregation group and any other qualified plan(s) of the Company or an Affiliated Company in which all
members are non-key employees, if the resulting aggregation group continues to meet the requirements of Sections 401(a)(4) and 410 of the Code.
|
| (b) |
For purposes of this Section, the Plan shall be “top-heavy” with respect to any Plan Year, if as of the applicable determination date the top-heavy ratio exceeds
60 percent. The top-heavy ratio shall be determined as of the applicable valuation date in accordance with Section 416(g)(3) and (4)(B) of the Code on the basis of the actuarial assumptions described in Appendix A. For purposes of
determining whether the Plan is top-heavy, the present value of Accrued Benefits under the Plan will be combined with the present value of accrued benefits or account balances under each other plan in the required aggregation group, and, in
the Company’s discretion, may be combined with the present value of accrued benefits or account balances under any other qualified plan(s) in the permissive aggregation group. The accrued benefit of a non-key employee under the Plan or any
other defined benefit plan in the aggregation group shall be determined (i) under the method, if any, that uniformly applies for accrual purposes under all plans maintained by the Company or an Affiliated Company, or (ii) if there is no such
method, as if such benefit accrued not more rapidly than the slowest accrual rate permitted under the fractional rule described in Section 411(b)(1)(C) of the Code.
|
| (c) |
The following provisions shall be applicable to Participants for any Plan Year with respect to which the Plan is top-heavy:
|
| (i) |
In lieu of the vesting requirements specified in Section 4.04, a Participant shall be vested in, and have a nonforfeitable right to, a percentage of his or her Accrued
Benefit determined in accordance with the provisions of Section 1.01 and subparagraph (ii) below, as set forth in the following vesting schedule:
|
| (ii) |
With respect to Plan Years beginning prior to January 1, 2014, the Accrued Benefit of a Participant who is a non-key employee shall not be less than 2 percent of his or
her average Remuneration multiplied by the number of years of his or her Eligibility Service, not in excess of 10, during the Plan Years for which the Plan is top-heavy. For purposes of the preceding sentence, years of Eligibility Service
shall be disregarding the extent that such years of Eligibility Service occurred during a Plan Year when the Plan benefits (within the meaning of Section 410(b) of the Code) no key employee or former key employee. That minimum benefit shall
be payable at a Participant’s Normal Retirement Date. If payments commence at a time other than the Participant’s Normal Retirement Date, that minimum Accrued Benefit shall be of Equivalent Actuarial Value to that minimum benefit.
|
| (d) |
If the Plan is top-heavy with respect to a Plan Year and ceases to be top-heavy for a subsequent Plan Year, the following provisions shall be applicable:
|
| (i) |
The Accrued Benefit in any such subsequent Plan Year shall not be less than the minimum Accrued Benefit provided in paragraph (c)(ii) above, computed as of the end of
the most recent Plan Year for which the Plan was top-heavy.
|
| (ii) |
If a Participant has completed three years of Eligibility Service on or before the last day of the most recent Plan Year for which the Plan was top-heavy, the vesting
schedule set forth in paragraph (c)(i) above shall continue to be applicable.
|
| (iii) |
If a Participant has completed at least two, but less than three, years of Eligibility Service on or before the last day of the most recent Plan Year for which the Plan
was top-heavy, the vesting provisions of Section 4.04 shall again be applicable; provided, however, that in no event shall the vested percentage of a Participant’s Accrued Benefit be less than the percentage determined under paragraph (c)(i)
above as of the last day of the most recent Plan Year for which the Plan was top-heavy.
|
| 9.06 |
Prevention of Escheat
|
| 9.07 |
Electronic Transmission of Notices to Participants
|
| 9.08 |
Non-duplication of Benefits
|
| 9.09 |
Construction
|
| (a) |
The Plan shall be construed, regulated and administered under ERISA as in effect from time to time, and the laws of the State of New York, except where ERISA controls.
|
| (b) |
The titles and headings of the Articles and Sections in this Plan are for convenience only. In case of ambiguity or inconsistency, the text rather than the titles or
headings shall control.
|
| 9.10 |
Limitation on Benefits in the Event of a Liquidity Short Fall
|
| 9.11 |
Limitations Based on Funded Status of the Plan
|
| (a) |
In the event the Plan’s adjusted funding target attainment percentage for a Plan Year is less than 60 percent (or would be less than 60 percent to the extent described
in Section 9.12 below), then the limitations of this paragraph (a) shall apply as follows:
|
| (i) |
Benefit accruals shall cease as of the applicable Section 436 measurement date under the provisions of Section 436(e) of the Code. In addition, if the Plan is required
to cease benefit accruals under this clause (a)(i), the Plan may not be amended in a manner that would increase the liabilities of the Plan by reason of an increase in benefits or the establishment of new benefits. For purposes of
determining whether the accrual limitation under this clause (a)(i) applies to the Plan, the adjusted funding target attainment percentage for a Plan Year shall be determined in accordance with "Special Rules for Certain Years" under Section
436(j)(3) of the Code (except as provided under Section 203(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, if applicable).
|
| (ii) |
A Participant or Beneficiary is not permitted to elect, and the Plan shall not pay, a single sum payment or other optional form of benefit that includes a prohibited
payment with an annuity starting date on or after the applicable Section 436 measurement date, and the Plan shall not make any payment for the purchase of an irrevocable commitment from an insurer to pay benefits or any other payment or
transfer that is a prohibited payment. This clause (a)(ii) shall not apply to any payment of a benefit which under Section 411(a)(11) of the Code may be immediately distributed without the consent of the Participant. For purposes of
determining whether the limitations under this clause (a)(ii) applies to payments under a social security leveling option, within the meaning of Section 436(j)(3)(C)(i) of the Code, the adjusted funding target attainment percentage for a Plan
Year shall be determined in accordance with the "Special Rule for Certain Years" under Section 436(j)(3) of the Code and any Treasury Regulations or other published guidance thereunder.
|
| (b) |
In the event the Plan's adjusted funding target attainment percentage for a Plan Year is less than 80 percent (or would be less than 80 percent to the extent described
in Section 9.11(b)(ii) below) but not less than 60 percent then the limitations of this paragraph (b) shall apply as follows:
|
| (i) |
A Participant or Beneficiary is not permitted to elect, and the Plan shall not pay, a single sum payment or other optional form of benefit that includes a prohibited
payment with an annuity starting date on or after the applicable Section 436 measurement date, and the Plan shall not make any payment for the purchase of an irrevocable commitment from an insurer to pay benefits or any other payment or
transfer that is a prohibited payment, unless the present value of the portion of the benefit that is being paid in a prohibited payment does not exceed the lesser of:
|
| (A) |
50 percent of the present value of the benefit payable in the optional form of benefit that includes the prohibited payment; or
|
| (B) |
100% of the PBGC maximum benefit guarantee amount (as defined in Treasury Regulation Section 1.436-1(d)(3)(iii)(C)).
|
| (ii) |
An amendment that has the effect of increasing liabilities of the Plan by reason of increases in benefits, establishment of new benefits, changing the rate of benefit
accrual, or changing the rate at which benefits become nonforfeitable shall not become effective during a Plan Year if the adjusted funding target attainment percentage for the Plan Year is:
|
| (A) |
less than 80 percent; or
|
| (B) |
80 percent or more, but would be less than 80 percent if the benefits attributable to the amendment were taken into account in determining the adjusted funding target
attainment percentage.
|
| (c) |
Notwithstanding any other provisions of this Plan to the contrary, a Participant or beneficiary is not permitted to elect, and the Plan shall not pay, a single sum
payment or other optional form of benefit that includes a prohibited payment with an annuity starting date that occurs during any period in which the Employer is a debtor in a case under Title 11, United States Code, or similar Federal or
State law, except for payments made within a Plan Year with an annuity starting date that occurs on or after the date on which the Plan's enrolled actuary certifies that the Plan's adjusted funding target attainment percentage for the Plan
Year is not less than 100 percent. In addition, during such period in which the Employer is a debtor, the Plan shall not make any payment for the purchase of an irrevocable commitment from an insurer to pay benefits or any other payment or
transfer prior to the date on which the Plan's enrolled actuary certifies that the Plan's adjusted funding target benefit percentage for that Plan Year is not less than 100 percent. The limitation set forth in this paragraph (c) does not
apply to any payment of a benefit which under Section 411(a)(11) of the Code may be immediately distributed without the consent of the Participant.
|
| (d) |
Notwithstanding any other provisions of this Plan to the contrary, the provisions of this paragraph (d) shall apply after the limitations of paragraphs (a), (b) and (c)
above cease to apply:
|
| (i) |
If a limitation on prohibited payments under clause (a)(ii), clause (b)(i) or paragraph (c) above applied to the Plan as of a Section 436 measurement date, but that
limit no longer applies to the Plan as of a different Section 436 measurement date, then that limitation does not apply to benefits with Annuity Starting Dates that are on or after that later Section 436 measurement date.
|
| (ii) |
If a limitation on benefit accruals under clause (a)(i) above applied to the Plan as of a Section 436 measurement date, but that limitation no longer applies to the
Plan as of a later Section 436 measurement date, then benefit accruals shall resume prospectively and that limitation shall not apply to benefit accruals that are based on service on or after that later Section 436 measurement date, except as
otherwise provided under the Plan. The Plan shall comply with the rules relating to partial years of participation and the prohibition on double proration under 29 CFR § 2530.204-2(c) and (d).
|
| (iii) |
If a Plan amendment does not take effect as of the effective date of the amendment because of the limitations of clause (a)(i) or (b)(ii) above, but is permitted to
take effect later in the same Plan Year (as a result of additional contributions or pursuant to the enrolled actuary's certification of the adjusted funding target attainment percentage for the Plan Year that meets the requirements of
Treasury Regulation Section 1.436-1(g)(5)(ii)(C)), then the Plan amendment must automatically take effect as of the first day of the Plan Year (or, if later, the original effective date of the Plan amendment). If the Plan amendment cannot
take effect during the same Plan Year, then it shall be treated as if it were never adopted, unless the Plan amendment provides otherwise.
|
| (e) |
The limitations on prohibited payments set forth in clauses (a)(ii) and (b)(i) and paragraph (c) do not apply to prohibited payments that are made to carry out the
termination of the Plan in accordance with applicable law. Any other limitations under this Section 9.11 do not cease to apply as a result of termination of the Plan.
|
| (f) |
The limitations on prohibited payments set forth in clauses (a)(ii) and (b)(i) and paragraph (c) do not apply for a Plan Year if the terms of the Plan, as in effect for
the period beginning on September 1, 2005, and continuing through the end of the Plan Year, provide for no benefit accruals with respect to any participants. This paragraph (f) shall cease to apply as of the date any benefits accrue under the
Plan or the date on which a Plan amendment that increases benefits takes effect.
|
| (g) |
During any period in which none of the presumptions under Section 436(h) of the Code (or Treasury Regulation Section 1.436-1(h)) apply to the Plan and the Plan's
enrolled actuary has not yet issued a certification of the Plan's adjusted funding target attainment percentage for the Plan Year, the limitations under clause (b)(ii) above shall be based on the inclusive presumed adjusted funding target
attainment percentage for the Plan, calculated in accordance with the rules of Treasury Regulation Section 1.436-1(g)(2)(iii).
|
| (h) |
For purposes of this Section 9.11, the terms "adjusted funding target attainment percentage," "section 436 measurement date," "annuity starting date," "prohibited
payment," "unrestricted portion of the benefit," and "restricted portion of the benefit" shall have the meanings given under Section 436 of the Code, the regulations thereunder, and any applicable Internal Revenue Service guidance.
|
| (i) |
This Section 9.11 and Section 9.12 of the Plan shall be interpreted and administered in accordance with Section 436 of the Code and Section 1.436-1 of the Treasury
Regulations, including, without limitation, Section 1.436-1(f).
|
| (j) |
In the event that the provisions of this Section 9.11 or any part thereof cease to be required by law as a result of subsequent legislation or otherwise, this Section
or any applicable part thereof shall be ineffective without the necessity of further amendments to the Plan.
|
| 9.12 |
Limitations on Unpredictable Contingent Event Benefit
|
| (a) |
Notwithstanding any provision of the Plan to the contrary, with respect to Plan Years beginning on or after May 1, 2008, an unpredictable contingent event benefit with
respect to an unpredictable contingent event occurring during a Plan Year shall not be paid to a Participant or Beneficiary if the Plan's adjusted funding target attainment percentage (as defined in Section 9.11) for such Plan Year is less
than 60 percent or would be less than 60 percent if the adjusted funding target attainment percentage were redetermined applying an actuarial assumption that the likelihood of occurrence of the unpredictable contingent event during the Plan
Year is 100 percent.
|
| (b) |
If an unpredictable contingent event benefit with respect to an unpredictable contingent event that occurs during a Plan Year is not permitted to be paid after the
occurrence of the event because of the limitations of this Section 9.12, but is permitted to be paid later in the same Plan Year (as a result of additional contributions or pursuant to the enrolled actuary's certification of the adjusted
funding target attainment percentage for the Plan Year that meets the requirements of Treasury Regulation Section 1.436-1(g)(5)(ii)(B)), then that unpredictable contingent event benefit shall be paid, retroactive to the period that benefit
would have been payable under the terms of the Plan (determined without regard to this Section). If the unpredictable contingent event benefit does not become payable during the Plan Year in accordance with the preceding sentence, then the
Plan is treated as if it does not provide for that benefit.
|
| (c) |
During any period in which none of the presumptions under Section 436(h) of the Code (or Treasury Regulation Section 1.436-1(h)) apply to the Plan and the Plan's
enrolled actuary has not yet issued a certification of the Plan's adjusted funding target attainment percentage for the Plan Year, the limitations under this Section shall be based on the inclusive presumed adjusted funding target attainment
percentage for the Plan, calculated in accordance with the rules of Treasury Regulation Section 1.436-1(g)(2)(iii).
|
|
(d)
|
For purposes of this Section 9.12, the terms "unpredictable contingent event" and "unpredictable contingent event benefit" shall have the
meanings given under Section 436 of the Code, the regulations thereunder, and any applicable Internal Revenue Service guidance.
|
| (e) |
In the event that the provisions of this Section 9.12 or any part thereof cease to be required by law as a result of subsequent legislation or otherwise, this Section
or any applicable part thereof shall be ineffective without the necessity of further amendments to the Plan.
|
| 10.01 |
Amendment of Plan
|
| 10.02 |
Merger, Consolidation, or Transfer
|
| 10.03 |
Additional Participating Companies
|
| (a) |
If any company is now or becomes a subsidiary or associated company of the Company, the Board of Directors may include the employees of that company in the membership
of the Plan upon appropriate action by that company necessary to adopt the Plan. In that event, or if any persons become Employees of the Company as the result of merger or consolidation or as the result of acquisition of all or part of the
assets or business of another company, the Board of Directors shall determine to what extent, if any, credit and benefits shall be granted for previous service with the subsidiary, associated or other company, but subject to the continued
qualification of the trust for the Plan as tax-exempt under the Code.
|
| (b) |
If a company participating in the Plan pursuant to the provisions of Section 10.03(a) ceases to be a subsidiary or affiliate of the Company, its participation in the
Plan shall cease as of that date and its employees shall cease to be eligible Employees as defined in Section 1.14, subject to the provisions of Section 10.04. A Company participating in the Plan pursuant to the provisions of Section
10.03(a) may voluntarily cease its participation in the Plan upon appropriate action by it, and upon such action, its employees shall cease to be eligible Employees as defined in Section 1.16, subject to the provisions of Section 10.04. In
either event, the funds of the Plan held on account of Participants in the employ of that company shall continue to be held as part of the Plan, unless the Board of Directors directs the Funding Agent to segregate the funds held on account of
the Participants in the employ of that company as a separate trust, pursuant to certification to the Funding Agent by the Benefits Administration Board (determined as if the Plan had then terminated), and continue the Plan as a separate plan
for the employees of that company under which the Board of Directors of that company shall succeed to all the powers and duties of the Board of Directors, including the appointment of the member of the Benefits Administration Board and a Plan
Asset Committee.
|
| 10.04 |
Termination of Plan
|
| 10.05 |
Limitation Concerning Highly Compensated Employees or Highly Compensated Former Employees
|
| (a) |
The provisions of this Section shall apply (i) in the event the Plan is terminated, to any Participant who is a highly compensated employee or highly compensated former
employee of the Company or an Affiliated Company and (ii) in any other event, to any Participant who is one of the 25 highly compensated employees or highly compensated former employees of the Company or Affiliated Company with the greatest
remuneration (as defined in Section 4.08) in any Plan Year. The amount of the annual payments to any one of the Participants to whom this Section applies shall not be greater than an amount equal to the annual payments that would be made on
behalf of the Participant during the year under a single life annuity that is of Equivalent Actuarial Value to the sum of the Participant’s Accrued Benefit and the Participant’s other benefits under the Plan.
|
| (a) |
was a 5 percent owner (as defined in Section 416(i) of the Code) for such Plan Year or the prior Plan Year, or
|
| (b) |
for the preceding Plan Year received statutory Compensation in excess of $80,000.
|
| (b) |
If, (i) after payment of Pension or other benefits to any one of the Participants to whom this Section applies, the value of Plan assets equals or exceeds 110 percent
of the value of current liabilities (as that term is defined in Section 412(l)(7) of the Code) of the Plan, (ii) the value of the Accrued Benefit and other benefits of any one of the Participants to whom this Section applies is less than one
percent of the value of current liabilities of the Plan, or (iii) the value of the benefits payable to a Participant to whom this Section applies does not exceed the amount described in Section 411(a)(11)(A) of the Code, the provisions of
paragraph (a) above will not be applicable to the payment of benefits to such Participant.
|
| (c) |
If any Participant to whom this Section applies elects to receive a lump sum payment in lieu of his or her Pension and the provisions of paragraph (b) above are not met
with respect to such Participant, the Participant shall be entitled to receive his or her benefit in full provided he or she shall agree to repay to the Plan any portion of the lump sum payment which would be restricted by operation of the
provisions of paragraph (a), and shall provide adequate security to guarantee that repayment.
|
| (d) |
Notwithstanding paragraph (a) of this Section, in the event the Plan is terminated, the restriction of this Section shall not be applicable if the benefit payable to
any highly compensated employee and any highly compensated former employee is limited to a benefit that is nondiscriminatory under Section 401(a)(4) of the Code.
|
| (e) |
If it should subsequently be determined by statute, court decision acquiesced in by the Commissioner of Internal Revenue, or ruling by the Commissioner of Internal
Revenue, that the provisions of this Section are no longer necessary to qualify the Plan under the Code, this Section shall be ineffective without the necessity of further amendment to the Plan.
|
| (2) |
Unless otherwise specified in the Plan, the Equivalent Actuarial Value determined for purposes of Section 4.08 of the Plan for pensions beginning before the
Participant’s 65th birthday or after the Participant’s 65th birthday shall be based on the mortality table as specified in (1) above and an interest rate of 5 percent.
|
| (3) |
In no event shall the Equivalent Actuarial Value of a Participant’s Pension be less than the amount that would have be determined if the calculation were based on the
Participant’s Pension accrued to April 30, 1994 and the Plan’s provisions in effect on said date.
|
| (1) |
Effective as of June 24, 1999 with respect to an individual who becomes an employee of the Company or one of its wholly-owned subsidiaries on June 16, 1999 and who
immediately preceding said date was an employee of Jossey-Bass or any of its affiliated companies, any period of employment with Jossey-Bass or any of its affiliated companies, rendered by such employee prior to June 16, 1999 shall be
recognized as Eligibility Service under the Plan for purposes of determining eligibility for membership and benefits, but not for purposes of determining Benefit Service, to the extent such employment was recognized under the terms of the
Pearson, Inc. Pension Equity Plan as in effect on June 16, 1999 for purposes of determining plan eligibility and vesting.
|
| (2) |
Effective as of November 12, 1999 with respect to an individual who becomes an employee of the Company or one of its wholly-owned subsidiaries on November 12, 1999 and
who immediately preceding said date was an employee of IDG Books Worldwide, Inc. (“IDG”) or any of its affiliated companies, (i) any period of employment with IDG or any of its affiliated companies rendered by such individual prior to
November 12, 1999, or (ii) any period of employment rendered by said employee immediately prior to the date such individual became an employee of IDG (August 2, 1999) which was recognized for purposes of determining plan eligibility for
membership and vesting under the terms of the Pearson, Inc. Pension Equity Plan as in effect on August 1, 1999 shall be recognized as Eligibility Service under the Plan for purposes of determining eligibility for membership and benefits, but
not for purposes of determining Benefit Service.
|
| (3) |
Effective as of September 21, 2001, to provide that with respect to an individual who becomes an Employee of the Company or one of its wholly-owned subsidiaries on
September 21, 2001 and who immediately preceding said date was an employee of HMI, any period of employment with HMI (including any predecessor company) or any of its affiliated companies rendered by such employee prior to September 21, 2001
shall be recognized as Eligibility Service under the Plan for determining eligibility for membership and benefits, but not for purposes of determining Benefit Service, to the extent such period of employment would have been counted as
Eligibility Service under the Plan had it been rendered at the Company or one of its Affiliated Companies.
|
| (4) |
Effective as of May 1, 2012, in the case of an individual who became an Employee of the Company or any Affiliated Company as a result of the acquisition of Harlan
Davidson Inc. (“HDI”) by the Company on May 1, 2012 and who immediately prior to said date was an employee of HDI, any period of employment with HDI prior to
May 1, 2012 shall be recognized as Eligibility Service under the Plan for determining eligibility for membership and benefits, but not for purposes of determining Benefit Service, to the extent such period of employment would have been
counted as Eligibility Service under the Plan had it been rendered at the Company or one of its Affiliated Companies.
|
| (5) |
Effective as of February 16, 2012, in the case of an individual who became an employee of the Company or any Affiliated Company as a result of the acquisition of
Inscape Publishing, Inc. (“IPI”) by the Company on February 16, 2012 and who immediately prior to said date was an employee of IPI, any period of employment as an employee of IPI rendered prior to February 16, 2012 shall be recognized as
Eligibility Service under the Plan for determining eligibility for membership and benefits, but not for purposes of determining Benefit Service, to the extent such period of employment would have been counted as Eligibility Service under the
Plan had it been rendered at the Company or one of its Affiliated Companies.
|
| (6) |
Effective as of October 25, 2012, in the case of an individual who became an employee of the Company or any Affiliated Company as a result of the acquisition of Deltak
edu, LLC. (“Deltak”) by the Company on October 25, 2012, any period of employment as an employee of Deltak rendered on and after October 25, 2012 and prior to becoming an Employee of the Company on January 1, 2013 shall be recognized as
Eligibility Service under the Plan for determining eligibility for membership and benefits, but not for purposes of determining Benefit Service, to the extent such period of employment would have been counted as Eligibility Service under the
Plan had it been rendered at the Company.
|
| (7) |
Effective as of November 1, 2012, in the case of an individual who became an employee of the Company or any Affiliated Company as a result of the acquisition of
Efficient Learning Systems, Inc. (“ELS”) by the Company on November 1, 2012, any period of employment as an employee of ELS rendered on and after November 1, 2012 and prior to becoming an Employee of the Company on January 1, 2013 shall be
recognized as Eligibility Service under the Plan for determining eligibility for membership and benefits, but not for purposes of determining Benefit Service, to the extent such period of employment would have been counted as Eligibility
Service under the Plan had it been rendered at the Company.
|
|
Name
|
Additional Annual Normal
|
Form of Payment
|
|
|
Retirement Pension
|
|
|
|
|
|
|
Anthony, Norma
|
$2,699.28
|
Life Annuity
|
|
Arendash, Stella
|
$2,271.00
|
Life Annuity
|
|
Bodian, Nat
|
$2,821.20
|
Life Annuity
|
|
Bukofsky, John
|
$2,440.68
|
Life Annuity
|
|
Corring, Alfred
|
$1,437.96
|
Life Annuity
|
|
Cowell, Mark
|
$4,090.68
|
Life Annuity
|
|
Maslowsky, Peter
|
$6,212.16
|
Life Annuity
|
|
Miranda, Blanca
|
$3,916.68
|
Life Annuity
|
|
Monroe, Audrey
|
$1,873.32
|
Life Annuity
|
|
Weiss, Rudolph
|
$6,302.52
|
50 % Joint & Survivor Annuity*
|