AT&T NON-QUALIFIED PENSION PLAN
As Amended and Restated effective January 1, 1995
AT&T NON-QUALIFIED PENSION PLAN
TABLE OF CONTENTS
ARTICLE 1
PURPOSE.............................................................4
ARTICLE 2
DEFINITIONS.........................................................5
ARTICLE 3 PARTICIPATION AND
ELIGIBILITY.......................................9
3.01.
PARTICIPATION............................................................9
3.02.
ELIGIBILITY..............................................................9
ARTICLE 4 PENSION
BENEFITS...................................................12
4.01. BENEFIT
ELIGIBILITY.....................................................12
4.02. BENEFIT
FORMULAS........................................................13
4.03. MONTHLY
PAYMENTS........................................................16
4.04. COMMENCEMENT AND DURATION OF
PAYMENTS...................................16
4.05. TREATMENT DURING SUBSEQUENT
EMPLOYMENT..................................16
4.06. METHOD AND FORM OF
PAYMENT..............................................16
ARTICLE 5 DEATH
BENEFITS.....................................................18
5.01.
PARTICIPATION...........................................................18
5.02. DEATH
BENEFITS..........................................................18
ARTICLE 6 SOURCE OF
PAYMENT..................................................21
6.01. SOURCE OF
PAYMENTS......................................................21
6.02. UNFUNDED
STATUS.........................................................21
ARTICLE 7 ADMINISTRATION OF THE
PLAN.........................................23
7.01. ADMINISTRATION AND
AUTHORITIES..........................................23
7.02.
COMMITTEE...............................................................23
7.03.
INDEMNIFICATION.........................................................23
7.04. BENEFIT CLAIMS AND
APPEALS..............................................24
ARTICLE 8 ADOPTION, AMENDMENT AND
TERMINATION................................25
8.01. ADOPTION OF
PLAN........................................................25
8.02. AMENDMENT AND
TERMINATION...............................................25
8.03. SALE, SPIN-OFF, OR OTHER DISPOSITION OF PARTICIPATING
COMPANY...........25
ARTICLE 9 GENERAL
PROVISIONS.................................................27
9.01. BINDING
EFFECT..........................................................27
9.02. FIDUCIARY
RELATIONSHIP..................................................27
9.03. NO GUARANTEE OF
EMPLOYMENT..............................................27
9.04. TAX
WITHHOLDING.........................................................28
9.05. ASSIGNMENT OF
BENEFITS..................................................28
9.06. FACILITY OF
PAYMENT.....................................................28
9.07.
SEVERABILITY............................................................28
9.08. EFFECTIVE
DATE..........................................................29
9.09. PLAN
YEAR...............................................................29
9.10.
HEADINGS................................................................29
9.11. GOVERNING
LAW...........................................................29
9.12. FORFEITURE OF
BENEFITS..................................................29
9.13. OPTION DURING
DISABILITY................................................29
9.14. SPECIAL
CLASSIFICATION..................................................30
9.15. CLAIMS
RELEASE..........................................................30
9.16. DAMAGE CLAIMS OR
SUITS..................................................30
9.17. JUDGMENT OR
SETTLEMENT..................................................30
9.18. PAYMENT UNDER
LAW.......................................................31
9.19. ENTIRE
PLAN.............................................................31
APPENDIX
A....................................................................32
APPENDIX
B....................................................................36
APPENDIX
C....................................................................37
AT&T NON-QUALIFIED PENSION PLAN
ARTICLE 1
PURPOSE
This AT&T Non-Qualified Pension Plan (the "Plan") is an Amendment and
Restatement of predecessor programs sponsored by the Company that where first
adopted on October 1, 1980, to provide supplemental pension, disability and
death benefits to certain employees of the Company. The Plan is intended to
constitute an unfunded plan of deferred compensation for a select group of
management or highly compensated employees for purposes of Title I of ERISA.
ARTICLE 2
DEFINITIONS
Whenever used herein, the terms set forth below have the following meanings
unless a different meaning is clearly required by the context:
2.01. "Active Service" means the period of active employment
but excluding
any time the individual is absent on account of
disability and
receiving or eligible to receive sickness or
accident disability
benefits under the Company's Sickness and Accident
Disability Benefit
Plan.
2.02. "ADEA" means the Age Discrimination in Employment Act
of 1967, as it
may be amended from time to time.
2.03. "Adjusted Career Average Pay" as used in the
Alternate Formula
described in Section 4.02(b), means (i) in the case of
an Officer, the
sum of A and B below divided by such Officer's Term of
Employment and
(ii) in the case of an E-band Employee, the amount
described in B below
divided by such E-band Employee's Term of Employment:
A. the sum of (1) the average of an
Officer's annual
Short Term Incentive Awards and any
salary amounts
deferred under the AT&T Senior
Management Incentive
Award Deferral Plan includable in
the 1989 Base
Period multiplied by his or her Term
of Employment
as of December 31, 1989 and (2)
his or her Short
Term Incentive Awards includable
under the Basic
Formula and any salary amounts
deferred under the
AT&T Senior Management Incentive
Award Deferral
Plan for the period from January
1, 1990 to the
date of retirement.
B. the sum of (a) the product of (i) the
Participant's
average annual "Compensation" as
defined in the
Pension Plan for the 1992 Base
Period and (ii) the
Participant's Term of Employment as
of December 31,
1992 and (b) the Participant's
"Compensation" for
the period from January 1, 1993 to
the last day of
his or her Term of Employment.
2.04. "Administrator" means the person identified as
the Pension Plan
Administrator under the Pension Plan or such other
person or entity
designated by the Company.
2.05. "Affiliated Corporation" means any corporation or
other entity of
which 50 percent or more of the voting stock is
owned directly or
indirectly by AT&T.
2.06. "AT&T" or "Company" means AT&T Corp. (formerly American
Telephone and
Telegraph Company), a New York Corporation, or its
successors.
2.07. "1989 Base Period" means the period from January
1, 1987, to
December 31, 1989.
2.08. "1992 Base Period" means the period from January
1, 1990, to
December 31, 1992.
2.09. "Board" means the Board of Directors of AT&T.
2.10. "Committee" means the Employees' Benefit Committee
appointed by the
Company to administer the Pension Plan.
2.11. "Covered Compensation Base" means an amount which is the
average of the
maximum wage amounts on which an employee's
liability for Social
Security taxes were determined for each year beginning
with January 1,
1958 and ending with the year in which the calculation is
made.
2.12. "Delegate" means the Board's authorized
representative designated
pursuant to a delegation of authority by the Board to
act on behalf
of or to perform one or more administrative
responsibilities under the
Plan.
2.13. "E-band Employee" means any employee of a
Participating Company
employed in a position evaluated or classified as
an "E-band" or
equivalent position by the Company, except that no
employee who is
assigned to such a position on a temporary basis after
being notified
in writing of the temporary status of such
assignment shall be an
"E-band Employee" for any purpose under this Plan.
2.14. "ERISA" means the Employee Retirement Income Security
Act of 1974, as
amended from time to time.
2.15. "Long Term Disability Plan" means the AT&T Senior
Management Long
Term Disability and Survivor Protection Plan.
2.16. "Normal Retirement Age" means the Normal Retirement
Age determined
under the Pension Plan.
2.17. "Officer" means any employee of a Participating
Company holding a
position evaluated or classified above the
"E-band" level by the
Company, except that no employee who is assigned to such
a position on
a temporary basis after being notified in writing of
the temporary
status of such assignment shall be an "Officer" for any
purpose under
this Plan.
2.18. "Participant" means an Officer who is eligible for a
service pension,
deferred vested pension or disability pension under
the terms of the
Pension Plan or an E-band Employee who is eligible
for a service
pension under the terms of the Pension Plan.
2.19. "Participating Company" means AT&T and any
Affiliated Corporation
which has elected, with the approval of the Committee
as required by
Section 8.01, to participate in the Plan.
2.20. "Pension Plan" means the AT&T Management Pension Plan,
as amended from
time to time.
2.21. "Pension Plan Benefit" means the annual pension
benefit determined
under the Pension Plan without regard to the
limitations on covered
compensation under Section 401(a)(17) of the Internal
Revenue Code of
1986, or the limitations on benefit accruals and payments
under Section
415 of the Internal Revenue Code of 1986, and before
any reduction in
such pension benefit for the cost of a survivor
annuity or for early
retirement.
2.22. "Plan" means this AT&T Non-Qualified Pension Plan, as
set forth herein
and as amended from time to time.
2.23. "Position Rate" means an amount established periodically
by the Company
for each Officer position upon which base salaries are
administered.
2.24. "Short Term Incentive Award" means the actual amount
awarded (including
any amounts deferred pursuant to the AT&T Senior
Management Incentive
Award Deferral Plan) annually to an Officer pursuant to
the AT&T Short
Term Incentive Plan or predecessor short term incentive
plans. Short
Term Incentive Awards shall, for purposes of this Plan,
be considered
to be awarded on the last day of the performance period
with respect to
which they are earned.
2.25. "Standard Award" means an amount determined
periodically for each
Position Rate under the AT&T Short Term Incentive Plan
or predecessor
short term incentive plans.
2.26. "Successor Plan Sponsor" means Lucent Technologies Inc.
and any other
corporation or entity that enters into an agreement
or agreements
providing for the assumption of liabilities arising
under this Plan
comparable to the Management Interchange Agreement dated
as of April 8,
1996, and the Employee Benefits Agreement dated
February 1, 1996, and
amended and restated as of March 29, 1996, between
AT&T and Lucent
Technologies Inc.
2.27. "Term of Employment" means the period of employment
described in
Section 2.38 of the Pension Plan and, unless expressly
limited by the
context, shall also mean the number of full or partial
calendar years
comprising Years of Service as defined in Section 2.39
of the Pension
Plan.
2.28. "Total Compensation" As used in the Alternate Minimum
Formula described
in Section 4.02(c) means the sum of (i) the elements of
Compensation as
defined in Section 4.2(f) of the Pension Plan, (ii)
salary amounts
deferred under the AT&T Senior Management Incentive
Award Deferral
Plan, and (iii) Short Term Incentive Awards.
2.29. "Transition Participant" means a Participant as
to whom the
responsibility and liability for the payment of
benefits accrued or
payable under this Plan has been assumed by a Successor
Plan Sponsor.
ARTICLE 3
PARTICIPATION AND ELIGIBILITY
3.01. Participation.
All Officers and E-band Employees who meet the
criteria set forth in
Section 2.18 shall be eligible to participate in this Plan.
3.02. Eligibility.
(a) Service Benefit. Each Participant who is
eligible for a
service pension pursuant to the terms of the
Pension Plan (
excluding for purposes of this Section 3.02(a)
the effect of
any management pension enhancement pursuant to
Section 4.2(h)
of the Pension Plan) and who meets the
relevant requirements
of Article 4 shall be eligible for a service
benefit pursuant
to this Plan.
(b) Deferred Benefit.
(i) Except as otherwise specified in Sections
4.04 and 4.05,
an Officer who is eligible for a deferred
vested pension
pursuant to the terms and conditions of
the Pension Plan
is eligible for a deferred benefit
pursuant to this
Plan.
(ii) An Officer who leaves the service of a
Participating
Company and who has elected to have his or
her deferred
vested pension payable early in reduced
amounts pursuant
to the terms and conditions of the Pension
Plan shall be
deemed to have elected to have his or
her deferred
benefits under this Plan payable
early in reduced
amounts under the same terms and
conditions as set forth
in the Pension Plan. In the event of
such an election,
the amount of deferred benefit
otherwise payable at
Normal Retirement Age under this
Plan to such
participant shall be reduced in accordance
with the same
formulas as are set forth in the
Pension Plan for the
discounting of the deferred vested pension.
(iii) The Committee, the Administrator or a
Delegate, as
appropriate, shall notify each Officer
who leaves the
employment of such Participating Company
(except to take
employment without a break in service
with another
Participating Company or other
Affiliated Corporation)
of his or her eligibility, if any,
for a deferred
benefit by mailing, within a reasonable
time after his
or her leaving, a notice to his or
her last known
address as shown on the Participating
Company's records.
(c) Disability Benefit. A Participant who, while an
Officer, has
become eligible for a Disability Pension
pursuant to Section
4.1(c) of the Pension Plan shall be eligible
for a Disability
Benefit hereunder. Should the
Disability Pension be
discontinued (other than by reason of
conversion to a Service
Pension) pursuant to the terms of the
Pension Plan, the
Disability Benefit hereunder shall be discontinued as well.
(d) Contingent Benefits.
(i) An Officer who, on or after January
1, 1986, is
reassigned to a position evaluated
below the E-band
level for reasons other than
unsatisfactory performance,
and who has satisfied the vesting
requirements of
Section 3.02(a) or Section 3.02(b) of
this Plan as of
the reassignment date, will be
eligible for Officer
benefits upon his or her termination
of employment
provided he or she is then eligible for
either a service
pension under Section 4.1(a) or a
deferred vested
pension under Section 4.1(b) of the
Pension Plan. The
determination of the amount of such
former Officer's
benefits will be based on his or her Term
of Employment
completed as of the reassignment date
and shall be
computed in accordance with Section
4.02(a) in effect on
such date.
(ii) An Officer who, on or after January
1, 1986, is
reassigned to a position evaluated below
the E-band, and
who has not satisfied the vesting
requirements of this
Plan as of the reassignment date, will
not be eligible
for benefits under this Plan upon his or
her termination
of employment.
(iii) An Officer who, on or after January
1, 1986, is
reassigned to a position evaluated at
the E-band level
for reasons other than unsatisfactory
performance, and
who has satisfied the vesting
requirements of Section
3.02(a) or Section 3.02(b) of this
Plan as of the
reassignment date shall be eligible for
a benefit (A)
under Section 3.02(a), if such Officer is
eligible for a
service pension under Section 4.1(a) of
the Pension Plan
on the last day of his or her Term of
Employment or (B)
under Section 3.02(b), if such Officer
is not eligible
for a service pension under Section
4.1(a) of the
Pension Plan on the last day of his or
her Term of
Employment. The benefit of any
reassigned Officer
described in this Section
3.02(d)(iii)(A) shall be
computed based on his or her Term of
Employment and in
accordance with Section 4.02(b) in
effect on the last
day of such Term of Employment. The
benefit of any
reassigned Officer described in
this Section
3.02(d)(iii)(B) shall be computed based
on his or her
Term of Employment completed as of the
last day of the
year in which his or her job is
reclassified and in
accordance with Section 4.02(a) in effect
as of the date
of such reassignment.
(iv) A Participant, other than an Officer
whose job is
classified or reclassified during or
after 1986 to a
level below E-band will be eligible
for the service
benefit described in Section 3.02(a)
and computed in
accordance with Section 4.02(b) based on
his or her Term
of Employment completed as of the last day
of 1988 or if
later, the last day of the year in which
his or her job
is reclassified and based on the
provisions of the Plan
in effect on such day, provided he
or she is then
eligible for a service pension under the
Pension Plan,
and further provided he or she is not
demoted subsequent
to such day because of unsatisfactory
job performance
prior to retiring under the Pension Plan.
ARTICLE 4
PENSION BENEFITS
4.01. Benefit Eligibility.
(a) Officers. The following provisions govern the
eligibility for
benefits of Officers whose retirement date
is on or after
December 31, 1993.
(i) The benefit of an Officer who had at least
five Years of
Service as an Officer as of December
31, 1993 will be
the greater of the annual benefit
amounts determined
under the Basic Formula, the Alternate
Formula or the
Alternate Minimum Formula described in
Sections 4.02(a),
(b) and (c) respectively.
(ii) The benefit of an Officer who is not
described in
Section 4.01(a)(i) but who is eligible
for a service
pension under Section 4.1(a) of the
Pension Plan as of
the last day of his or her Term of
Employment will be
the greater of the annual benefit
amounts under the
Basic Formula or the Alternate Formula
described in
Sections 4.02(a) and (b) respectively.
(iii) The benefit of an Officer who is not
described in
Sections 4.01(a)(i) or (ii) but who is
eligible for a
deferred vested pension under Section
4.1(b) or a
disability pension under Section 4.1(c)
the Pension Plan
as of the last day of his or her Term of
Employment will
be the amount determined under the
Basic Formula
described in Section 4.02(a).
(iv) The benefit payable to the surviving
lawful spouse of an
Officer shall be determined in
accordance with Section
4.02(d)(i), if the Officer is an employee
at the time of
death and in accordance with Sections
4.02(d)(ii) and
(iii), if the Officer is not an employee
at the time of
death.
(b) E-band Employees. The annual service
benefit of an E-band
Employee whose retirement date is on or
after October 19,
1993, will be the amount computed under the
Alternate Formula
described in Section 4.02(b). The benefit
payable to the
surviving lawful spouse of an E-band
Employee shall be
determined in accordance with Section
4.02(d)(i), if the
E-band Employee is an employee at the time
of death. The
formulas for computing the pension
benefits of an E-band
Employee whose employment terminated prior
to October 19,
1993, are shown in Appendix A.
4.02. Benefit Formulas.
(a) Basic Formula. The annual service or disability
benefit under
the Basic Formula shall be determined by
adding (A) the
product of one and five-tenths percent (1.5%)
of the average
annual Short Term Incentive Awards for the
1989 Base Period
and the Officer's Term of Employment as of
December 31, 1989,
and (B) the sum of one and six-tenths percent
(1.6%) of the
Short Term Incentive Award for each successive
full or partial
calendar year of employment following 1989.
(i) Early Retirement Discount. The monthly
service benefit,
determined in accordance with the Basic
Formula of this
Section 4.02(a), for each Officer who
is granted a
service benefit for reasons other than
total disability
as a result of sickness or injury, shall
be reduced by
one-half percent (0.5%) for each calendar
month or part
thereof by which his or her age at time
benefits are
first paid under this Plan is less than
fifty-five (55)
years, except that each Officer retired
with thirty (30)
or more years of service shall receive a
monthly benefit
allowance reduced by one-quarter
percent (0.25%) for
each calendar month or part thereof
by which such
Officer's age at the time benefits are
first paid under
this Plan is less than fifty-five (55)
years.
(ii) Deferred Benefit Amount. The monthly
benefit for each
Officer eligible for a deferred
benefit under the
provisions of Section 3.02(b) shall
be calculated
exclusively in accordance with the
provisions specified
as applicable to those receiving a
benefit under this
Section 4.02(a) effective as of the
date such Officer
leaves the service of a Participating
Company.
(iii) An Officer who leaves the service of a
Participating
Company with eligibility for a
deferred benefit in
accordance with Section 3.02(b) but who
is not entitled
to any other class of pension or benefit
under this Plan
shall not be considered a retiree
pursuant to the
Pension Plan or a retired Officer.
(b) Alternate Formula. The annual benefit under
the Alternate
Formula shall be the excess of B over A,
where A equals the
Participant's Pension Plan Benefit and B equals
the product of
one and seven-tenths percent (1.7%) of the
Participant's
Adjusted Career Average Pay, less eight-tenths
of one percent
(0.8%) of the Participant's Covered Compensation
Base, and the
Participant's Term of Employment. The service
benefit under
this Alternate Formula will be reduced in case
of retirement
before age 60 by applying the appropriate
reduction factor
from the Table of such factors shown in
Appendix C to such
benefit.
(c) Alternate Minimum Formula. The annual
benefit under the
Alternate Minimum Formula in this Section
4.02(c) shall be an
amount equal to (A) the product of the greater
of the amount
determined under Formula A or the amount
determined under
Formula B, multiplied by the applicable
factor set forth in
Appendix B, less (B) the amount of the
Officer's Pension Plan
Benefit.
(i) Formula A. For purposes of the Alternate
Minimum Formula
in this Section 4.02(c), Formula A means
the sum of (a)
the product of one and five tenths
percent (1.5%) of
average calendar year Total
Compensation for the 1992
Base Period and the Term of Employment
as of December
31, 1992 and (b) one and six tenths
percent (1.6%)of
Total Compensation for the
calendar year 1993
actuarially reduced in case of retirement
before age 55
by applying the appropriate reduction
factor set forth
in Section 4.02(a)(i).
(ii) Formula B. For purposes of this
Alternate Minimum
Formula in this Section 4.02(c),
Formula B means the
product of (a) the excess of one and
seven tenths
percent (1.7%) of Adjusted Career
Average Pay, over
eight tenths of one percent (0.8%)
of the Covered
Compensation Base, and (b) the
Officer's Term of
Employment at December 31, 1993,
reduced in case of
retirement before age 60 by applying
the appropriate
reduction factor set forth in Appendix C.
(d) Automatic Survivor Annuities.
(i) Before-Retirement. In the event of
the death of an
active Participant whose Term of
Employment includes at
least fifteen years or who is eligible
for a service
benefit under Section 4.02(a) at the time
of his or her
death and who leaves a surviving lawful
spouse, such
surviving lawful spouse shall receive,
effective on the
day following the date of death, a
survivor annuity in
the amount of forty five percent (45%)
of the benefit
which would have been payable had
such Participant
retired with a service benefit, regardless
of his or her
actual eligibility therefor, on the date
of his or her
death. For purposes of the automatic
survivor annuity
provided in this Section
4.02(d)(i), the early
retirement discounts in Sections
4.02(a)(i) and 4.02
(b)(i) shall not apply.
(ii) Post-Retirement. Upon the death of an
Officer receiving
a service or disability benefit under
this Plan who
retired on or after December 31, 1986 or
retired prior
to that date but had not reached age 55
on or before
December 31, 1983, a survivor annuity in
the amount of
45% of such retired Officer's monthly
benefit amount
will be payable beginning on the day
following the date
of his or her death to the surviving
lawful spouse of
such retired Officer.
(iii) Post-Retirement Transition Cases. In
the case of a
deceased Officer who retired prior to
December 31, 1987,
the survivor annuity payable under
Section 4.02(d)(ii)
above, shall be increased by the amount
required, if
any, to bring the total monthly survivor
annuity payable
under this Plan to an amount computed by
multiplying the
product of the average of such Officer's
Standard Awards
for a maximum of six (6) years prior
to his or her
retirement year and sixty-five
hundredths percent
(0.65%) by his or her Term of
Employment, and dividing
the result by twelve (12); the
Standard Awards
includable in this computation cannot
exceed sixty
percent (0.60%) of such Officer's Position
Rate.
(e) Special Increases. Service and disability
benefit payments, as
determined under Sections 4.02(a) and (b), of
retired Officers
and service benefit payments, as determined
under Section
4.02(b), of retired E-band Employees, and
survivor annuities
in pay status under Sections 4.02(d)(i),
(d)(ii), and (d)(iii)
shall be increased by the same percentage and
pursuant to the
same terms and conditions as are set forth
for comparable
payments, from time to time, in the Pension Plan.
4.03. Monthly Payments.
The annual benefit determined under this Article 4 shall
be divided by
twelve (12) and shall be payable monthly or at such
other periods as
the Committee or the Administrator, as applicable,
may determine in
each case.
4.04. Commencement and Duration of Payments
(i) Subject to the exception set forth in paragraph
(ii) herein,
benefits granted under this Plan shall commence on
the date the
benefits under the Pension Plan are first paid to the
Participant and
shall, except for the reasons specified in Sections
3.02(c), 4.05 and
9.12, continue to the death of the recipient.
(ii) Any benefit payable to an Officer pursuant to
Section 4.02(c) who
had at least five Years of Service as an Officer as of
December 31,
1993 and as to whom the sum of his or her attained
age and Term of
Employment equaled or exceeded seventy (70) as of that
date shall be
payable as of the last day of his or her Term of
Employment and shall,
except for the reasons specified in Section 4.05 and
Section 9.12,
continue to his or her death. (iii) Benefit amounts
accrued and payable
under this Article 4 but not actually paid at the time
of death of a
Participant shall be paid in accordance with the
standards and
procedures set forth in the Pension Plan.
4.05. Treatment During Subsequent Employment.
When a Participant's Term of Employment includes service
with more than
one Participating Company or with a company that is not a
Participating
Company, the last Participating Company to
employ him or her
immediately prior to his or her retirement or termination
of employment
with entitlement to a benefit hereunder shall be
responsible for the
full benefit under this Plan. Employment with any
Participating Company
subsequent to retirement or termination of employment
with entitlement
to any type of benefit under this Plan shall result in
the permanent
suspension of the benefit for the period of such
employment or
reemployment to the extent and in a manner consistent
with the terms
and conditions applicable to the suspension of benefit
payments under
the Pension Plan. Payment of a Participant's benefit
under this Plan
shall resume simultaneously with the recommencement
of his or her
benefits under the Pension Plan. Following
recommencement of payment
under this Plan, the Participant (or surviving lawful
spouse) shall not
be eligible to receive any payments under this
Plan that would
otherwise have been payable but for the suspension.
4.06. Method and Form of Payment.
Payments under this Article 4 shall be made in the same manner as set
forth under the Pension Plan.
ARTICLE 5
DEATH BENEFITS
5.01. Participation.
Upon the death of an active Officer or an Officer
who, on or after
August 10, 1980, retires on a service or disability
pension under the
Pension Plan (excluding for purposes of this Section 5.01
the effect of
any management pension enhancement pursuant to Section
4.2(h) of the
Pension Plan) or who terminates employment with
eligibility to receive
payments under the Long Term Disability Plan, a Death
Benefit shall be
provided under this Article 5. The Death Benefits under
this Article 5
are in addition to the accident, sickness and pensioner
death benefits
under the Death Benefit Plan in the Pension Plan and
shall be paid to
the same beneficiary or beneficiaries and
administered in the same
manner as such benefits under the Pension Plan.
5.02. Death Benefits.
(a) Primary Death Benefit. In the case of the death
of an Officer
described in Section 5.01 a benefit equal to
one year's wages
shall be paid.
(i) Death Prior to June 1, 1991. For purposes
of determining
the benefit payable under this Section
5.02(a) with
respect to an Officer who dies on or
after August 10,
1980 but prior to June 1, 1991, one
year's wages is
defined as the lesser of the Officer's
Standard Award in
effect as of the earlier of his or her
retirement date,
termination date or date of death, or
the percentage
shown below of his or her Position
Rate as of the
earlier of such dates:
Percentage
Retirement, Termination or Death: of Position Rate
On or After September 30, 1983 through May 31,
1991 60%
October 31, 1981 through September 29,
1983 50%
August 10, 1980 through October 30,
1981 15%
(ii) Death On or After June 1, 1991.
For purposes of
determining the benefit payable under
this Section
5.02(a) with respect to an Officer who
dies on or after
June 1, 1991, one year's wages is defined
as the greater
of (A) his or her Short Term Award for the
calendar year
preceding the earlier of his or her
date of death or
date of retirement, or (B) the
Officer's Short Term
Award payable with respect to any later
partial calendar
year period of service.
(b) Other Post-Retirement Death Benefits. An
additional death
benefit described in this Section 5.02(b)
shall be provided
under this Plan in the case of an Officer
who retires on a
service or disability Pension under the
Pension Plan after
December 31, 1986, or before such date provided
he or she did
not attain age 55 on or before December 31,
1983. The death
benefits under Section 5.02(b)(ii) are
provided also in the
case of an Officer who terminates employment
with entitlement
to Long Term Disability Plan payments.
(i) Group Life Differential. Upon the death
of an Officer
age 66 or older who retired after December
31, 1986, and
before October 1, 1990, the
difference between the
amount of his or her Basic Group Life
Insurance under
the Company's Group Life Insurance
Program which was in
effect on the day before his or her
sixty-sixth (66)
birthday and the amount of such
insurance in effect on
the date of his or her death shall be paid
in a lump sum
to a beneficiary or beneficiaries
designated by the
Officer, or, if there is no such
beneficiary, to the
Officer's Estate.
(ii) Tax Differential. An individual who is
the beneficiary
of a deceased retired Officer or
an Officer who
terminated employment with entitlement
to Long Term
Disability payments and who receives one
or more of the
benefits listed below, shall be
eligible to receive,
under this Section 5.02(b)(ii), a
tax differential
payment related to the difference
between the
beneficiary's assumed Federal Income
tax liability on
such benefit or benefits and the
beneficiary's assumed
Federal Income Tax liability had
such benefit or
benefits been funded by the proceeds of a
life insurance
policy on the life of the retired Officer:
(A) Post-Retirement Survivo Annuity
described in Section
4.02(d)(ii),
(B) Pensioner Death Benefit described in
Section 5.02(a),
(C) Group Life Differential Death
Benefit described in
Section 5.02(b)(i),
(D) Pensioner Death Benefit described in
Paragraph 3 of
Section 5 of the Pension Plan, and
(E) The Death Benefit described in Section
5 of the Long
Term Disability Plan.
Federal Estate Tax and state and local
inheritance or income
taxes shall not be considered in
computing the tax
differential payment under this Section
5.02(b)(ii).
ARTICLE 6
SOURCE OF PAYMENT
6.01. Source of Payments.
AT&T may establish a trust to hold assets to be used to
make benefit
payments under the terms of this Plan, provided such
trust does not
cause the Plan to be "funded" within the meaning of
ERISA. Funds
invested hereunder shall, for purposes of this Plan, be
considered to
be part of the general assets of the Participating
Company which
invested the funds, and no Participant, beneficiary or
lawful spouse
shall have any interest or right in such funds. To the
extent trust
assets are available, they may be used to pay benefits
arising under
this Plan and all costs, charges and expenses relating
thereto. To the
extent that the funds held in the trust are
insufficient to pay such
benefits, costs, charges and expenses, AT&T or
the responsible
Participating Company shall pay such benefits,
costs, charges and
expenses from its general assets. In addition, AT&T
may, in its sole
discretion, direct that payments required under
this Plan to any
Participant or surviving lawful spouse be made through
the purchase and
distribution of one or more nontransferable annuity
contracts or cause
the trustee of the trust to purchase and distribute
such annuity
contracts. Any such purchase and distribution of an
annuity contract
shall be a full and complete discharge of the Plan's,
AT&T's and the
Participating Companies' liability for payments assumed
by the issuer
of the annuity contract. Further, the Senior Vice
President, Human
Resources, may determine, in his sole discretion, to
pay additional
sums to any Senior Manager, from the Company's general
assets or from
the trust, if any, to reimburse the Senior Manager
for additional
federal and state income taxes estimated to be
incurred by reason of
the distribution of any such annuity contracts.
The Senior Vice
President, Human Resources shall establish a
methodology or
methodologies for determining the amount of such
additional sums. The
methodology or methodologies selected shall be those
that the Senior
Vice President, Human Resources determines, in his sole
discretion, to
be the most effective and administratively feasible for
the purpose of
producing after tax periodic benefit payments that
approximate the
after tax periodic benefit payments that would have
been received by
[Senior Managers] in the absence of the distribution
of the annuity
contract.
6.02. Unfunded Status.
The Plan at all times shall be entirely unfunded for
purposes of the
Internal Revenue Code of 1986 and ERISA, and, except
as provided in
Section 6.01, no provision shall at any time be made
with respect to
segregating any assets of a Participating Company for
payment of any
benefits hereunder. The Plan constitutes a mere
promise by the
Participating Company to make payments, if any, in
the future. No
Participant, surviving lawful spouse or any other person
shall have any
interest in any particular assets of a Participating
Company by reason
of the right to receive a benefit under the Plan and to
the extent the
Participant, surviving lawful spouse or any other
person acquires a
right to receive benefits under this Plan, such
right shall be no
greater than the right of any unsecured general
creditor of a
Participating Company.
ARTICLE 7
ADMINISTRATION OF THE PLAN
7.01. Administration and Authorities.
The Plan shall be administered by the Company and it
shall have full
discretionary authority to manage and control the
operation and
administration of the Plan, including the power to
interpret provisions
of the Plan, make determinations of fact,
promulgate rules and
regulations, determine benefit eligibility of individual
and classes of
Participants (including, without limitation,
determinations of a
Participant's applicable Term of Employment, Position
Rate and rate of
pay), delegate its powers and duties hereunder to the
Committee, the
Administrator or others and take such other action as
it shall find
necessary and appropriate to implement the provisions of
the Plan. The
Committee and the Administrator may retain
attorneys, consultants,
accountants or other persons (who may be employees of the
Company or an
Affiliated Corporation) to render advice and
assistance and may
delegate any of the authorities conferred on it to such
persons as it
shall determine to be appropriate to effect the discharge
of its duties
hereunder. The Company, the Affiliated Corporations
and any of their
Officers and E-band Employees shall be entitled to
rely upon the
advice, opinions, and determinations of any such
persons. Any exercise
of the authorities set forth in this Section, whether
by the Company,
the Committee or its Delegate, or the Administrator,
shall be final and
binding upon the Company, its Affiliated Corporations,
their officers,
directors and affected Participants and beneficiaries.
7.02. Committee.
The Company has delegated to the Committee authority to
make the final
determination to grant or deny claims for benefits under
the Plan with
respect to Participants, surviving lawful
spouses, and other
beneficiaries and to authorize disbursements according
to the terms of
the Plan.
7.03. Indemnification.
No member of the Board, the Committee or the
Administrator shall be
personally liable by reason of any contract or
other instrument
executed by such individual or on his or her behalf
in his or her
capacity as a member of the Board, Committee or the
Administrator nor
for any mistake of judgment made in good faith,
and AT&T shall
indemnify and hold harmless each member of the Board,
each member of
the Committee, the Administrator and each other
employee, officer, or
director of AT&T or any Participating Company to whom any
duty or power
relating to the administration or interpretation of
the Plan may be
allocated or delegated, against any cost or
expense (including
attorneys' fees) or liability (including any sum paid in
settlement of
a claim) arising out of any act or omission to act in
connection with
the Plan unless arising out of such person's own fraud or
bad faith.
7.04. Benefit Claims and Appeals
(a) Benefit Claims. All claims for benefit payments
under the Plan
shall be submitted in writing by Participants
to the person
designated by the Company to make
determinations as to
eligibility for benefits under the Plan and
such person shall
notify the Participant in writing within 90 days
after receipt
as to whether the claim has been granted or
denied. This
period may be extended for up to an
additional 90 days in
unusual cases provided that written notice of
the extension is
furnished to the claimant prior to the
commencement of the
extension. In the event the claim is denied,
such notice shall
(i) set forth the specific reason or reasons for
denial, (ii)
make reference to the pertinent Plan
provisions on which the
denial is based, (iii) describe any
additional material or
information necessary before the Participant's
request may be
acted upon favorably, and (iv) explain the
procedure for
appealing the adverse determination.
(b) Benefit Appeals. A Participant whose claim
for benefits
has been denied may, within 60 days of
receipt of any
adverse benefit determination, appeal such
denial to the
Committee. All appeals shall be in the
form of a written
statement and shall (i) set forth all of
the reasons in
support of favorable action on the appeal, (ii)
identify those
provisions of the Plan upon which the claimant
is relying, and
(iii) include copies of any other documents or
materials which
may support favorable consideration of
the claim. The
Committee shall decide the issues presented
within 60 days
after receipt of such request, but this period
may be extended
for up to an additional 60 days in unusual cases
provided that
written notice of the extension is furnished
to the claimant
prior to the commencement of the extension.
The decision of
the Committee shall be set forth in writing,
include specific
reasons for the decision, refer to pertinent
Plan provisions
on which the decision is based, and shall be
final and bindin
on all persons affected thereby.
ARTICLE 8
Adoption, Amendment and Termination
8.01. Adoption of Plan.
Any Affiliated Corporation that participates in the
Pension Plan may,
with the consent of the Committee, elect to
participate in the Plan.
Such Affiliated Corporation shall become a Participating
Company as of
the date specified by the Committee in its resolution
approving the
participation of the Affiliated Corporation in the Plan.
8.02. Amendment and Termination.
AT&T is the Sponsor of the Plan and the Board or its
Delegate, may from
time to time amend, modify or change the Plan as set
forth in this
document, and the Board or its Delegate (acting pursuant
to the Board's
delegations of authority then in effect) may terminate
the Plan at any
time. Plan amendments may include, but are not limited
to, elimination
or reduction in the level or type of benefits provided
to any class or
classes of Participant (and surviving lawful spouses).
Any and all Plan
amendments may be made without the consent of
any Participant,
surviving lawful spouse or beneficiary. Notwithstanding
the foregoing,
no such amendment, suspension or termination shall
retroactively impair
or otherwise adversely affect the rights of any
Participant or
surviving lawful spouse to benefits under the Plan to
which they have
previously become entitled as a result of a
Participant's satisfaction
of the vesting schedule of this Plan which is the
same as and never
will be greater than the vesting schedule under the
Pension Plan.
8.03. Sale, Spin-Off, or Other Disposition of Participating
Company.
(a) Subject to Section 9.01 of this Plan, in the
event AT&T sells,
spins off, or otherwise disposes of an
Affiliated Corporation,
or disposes of all or substantially all of
the assets of an
Affiliated Corporation such that one or
more Participants
terminate employment for the purposes of
accepting employment
with the purchaser of such stock or
assets, any person
employed by such Affiliated Corporation who
ceases to be an
employee of the Company or an Affiliated
Corporation as a
result of the sale, spin-off, or disposition
shall be deemed
to have terminated his or her employment with a
Participating
Company for all relevant purposes under this Plan.
(b) Notwithstanding the foregoing provisions of this
Section 8.03,
and subject to Section 9.01 of this Plan,
if the sale,
spin-off, or other disposition of the stock
or assets of an
Affiliated Corporation is to a Successor Plan
Sponsor with the
effect that a Participant is or becomes
a Transition
Participant, the Successor Plan Sponsor shall be
solely liable
for the payment of the pension and death
benefits described in
this Plan, and the entitlement of the
Transition Participant
or his or her surviving lawful spouse or
beneficiary to
benefits under this Plan shall terminate.
A Transition
Participant shall not be considered to have
terminated his or
her employment with AT&T or a Participating
Company for any
purpose under this Plan.
ARTICLE 9
GENERAL PROVISIONS
9.01. Binding Effect.
The Plan shall be binding upon and inure to the
benefit of each
Participating Company and its successors and
assigns, and each
Participant, employee, his or her successors,
assigns, designees,
spouse, and estate. The Plan shall also be binding upon
any successor
corporation or organization succeeding to
substantially all of the
assets and business of AT&T, but nothing in the Plan
shall preclude
AT&T from merging or consolidating into or with, or
transferring all or
substantially all of its assets to, another corporation
which assumes
the Plan and all obligations of AT&T hereunder. AT&T
agrees that it
will make appropriate provision for the preservation of
the rights of
Participants, employees and surviving lawful spouses
under the Plan in
any agreement or plan or reorganization into which
it may enter to
effect any merger, consolidation, reorganization or
transfer of assets.
Upon such a merger, consolidation, reorganization,
or transfer of
assets and assumption that results in a Participant
continuing to be
employed by the Company or an Affiliated
Corporation, the term
"Participating Company" shall refer to such other
corporation and the
Plan shall continue in full force and effect as to that
Participant and
his or her lawful spouse or other beneficiary.
9.02. Fiduciary Relationship.
Nothing contained in the Plan, and no action taken
pursuant to the
provisions of the Plan, shall create or be construed to
create a trust
or contract of any kind, or a fiduciary relationship
between or among
AT&T, any other Participating Company, any Affiliated
Corporation, the
Board, the Administrator, the Committee, any Participant,
employee, any
surviving lawful spouse or any other person.
9.03. No Guarantee of Employment.
Neither the Plan nor any action taken hereunder shall
be construed as
(i) a contract of employment or deemed to give any
employee the right
to be retained in the employment of a Participating
Company, the right
to any level of compensation, or the right to future
participation in
the Plan; or (ii) affecting the right of the
Participating Company to
discharge or dismiss any employee at any time.
9.04. Tax Withholding.
AT&T shall withhold all federal, state, local or other
taxes required
by law to be withheld from payments or accruals under the
Plan.
9.05. Assignment of Benefits.
The benefits payable hereunder or the right to receive
future benefits
under the Plan may not be anticipated, alienated,
sold, transferred,
assigned, pledged, executed upon, encumbered, or
subjected to any
charge or legal process; no interest or right to receive
a benefit may
be taken, either voluntarily or involuntarily, for the
satisfaction of
the debts of, or other obligations or claims against,
such person or
entity, including without limitation, any judgment
or claim for
alimony, support or separate maintenance pursuant
to a domestic
relations order within the meaning of Section
206(d)(3) of ERISA and
claims in bankruptcy proceedings. Any such attempted
disposition shall
be null and void.
9.06. Facility of Payment.
If the Administrator shall find that any person to whom
any amount is
or was payable under the Plan is unable to care for his
or her affairs
because of illness or accident, then any payment, or any
part thereof,
due to such person (unless a prior claim therefor has
been made by a
duly appointed legal representative), may, if the
Administrator so
directs AT&T, be paid to the same person or
institution that the
benefits with respect to such person are paid under the
Pension Plan if
applicable, or to the Participant's surviving lawful
spouse, a child, a
relative, an institution maintaining or having custody
of such person,
or to any other person deemed by the Administrator
to be a proper
recipient on behalf of such person otherwise entitled to
payment. Any
such payment shall be in complete discharge of the
liability of AT&T,
the Board, the Committee, the Administrator, and the
Participating
Company therefor. If any payment to which a Participant
or beneficiary
is entitled under this Plan is unclaimed or otherwise
not subject to
payment to the person or persons so entitled, such
amounts representing
such payment or payments shall be forfeited after a
period of two years
from the date the first such payment was payable and
shall not escheat
to any state or revert to any party; provided, however,
that any such
payment or payments shall be restored if any person
otherwise entitled
to such payment or payments makes a valid claim.
9.07. Severability.
If any section, clause, phrase, provision or portion
of this Plan or
the application thereof to any person or circumstance
shall be invalid
or unenforceable under any applicable law, such event
shall not affect
or render invalid or unenforceable the remainder of this
Plan and shall
not affect the application of any section, clause,
provision, or
portion hereof to other persons or circumstances.
9.08. Effective Date.
This Plan first became effective for Officers actively
employed on or
after October 1, 1980 and for E-band Employees actively
employed on or
after on January 1, 1984 and is amended and restated
effective January
1, 1995.
9.09. Plan Year.
For purposes of administering the Plan, the plan year
shall begin on
January 1 and end on December 31.
9.10. Headings.
The captions of the preceding sections and articles
hereof have been
inserted solely as a matter of convenience and shall not
in any manner
define or limit the scope or intent of any provision of
the Plan.
9.11. Governing Law.
To the extent such laws are not preempted by the laws
of the United
States of America, the Plan shall be governed by the
laws of the State
of New Jersey, except as to its principles of conflict of
laws.
9.12. Forfeiture of Benefits.
Except as provided in this Section 9.12 and Section
3.02, benefits
previously awarded may not be canceled and, upon
attaining the right
under the Plan for an immediate service benefit or
deferred benefit or
for an automatic survivor annuity, such right shall be
nonforfeitable.
Notwithstanding any eligibility or entitlement to
benefits of an
individual arising or conferred under any other
provision or paragraph
of this Plan, all benefits for which a Participant
would otherwise be
eligible hereunder may be forfeited, at the discretion
of the Board or
the Committee, if an individual without the
Company's consent
establishes a relationship with a competitor of the
Company or engages
in activity in conflict with or adverse to the interests
of the Company
under the standards of the AT&T Non-Competition
Guideline and as
determined by the Board or the Committee in its sole
discretion.
9.13. Option During Disability.
If an employee who has left the service of a
Participating Company has
elected to continue receiving disability benefits which
he or she had
been receiving prior to his or her termination and to
defer receiving
pension payments under the Pension Plan to which he or
she is eligible,
benefits under the Plan shall be deferred until
such time as the
employee begins to receive payments under the Pension
Plan.
9.14. Special Classification.
For purposes of the Plan, the determination of those
causes of death
not classified as due to accident shall be
accomplished in the same
manner as set forth in the Pension Plan.
9.15. Claims Release.
In case of accident resulting in the death of a
Participant which
entitles his or her beneficiaries or his or her
annuitant to death
benefits under the Plan, such beneficiaries or annuitant
shall, prior
to the payment of any such benefits, sign a release,
releasing the
Company or other Participating Companies, as
applicable, from all
claims and demands which the deceased had and
which his or her
beneficiaries or his or her annuitant may have against
them, otherwise
than under the Plan, on account of such accident. If any
persons other
than the beneficiaries under this Plan might legally
assert claims
against a Participating Company on account of the
death of the
individual, no part of the death benefit under the Plan
shall be due or
payable until there have also been delivered to the
Committee or the
Administrator, as applicable, good and sufficient
releases of all
claims, arising from or growing out of the death of
the individual,
which such other persons might legally assert against any
Participating
Company. The Committee or the Administrator, as
applicable, in its
discretion, may require that the releases described above
shall release
any other company connected with the accident, including
the Company or
any other Participating Company, as applicable. This
requirement of a
release or releases shall not apply in the case of
Survivor Annuities
as described in Section 4.02(d).
9.16. Damage Claims or Suits.
Should a claim other than under the Plan be presented
or suit brought
against the Company or any Participating Company for
damages on account
of death of a Participant, nothing shall be payable
under the Plan on
account of such death except as provided in Section
9.17; provided,
however, that the Committee or the Administrator, as
applicable, may,
in its discretion and upon such terms as it may
prescribe, waive this
provision if such claim be withdrawn or if such suit be
discontinued;
and provided further that this provision shall not
preclude the payment
of Survivor Annuities as described in Section 4.02(d).
9.17. Judgment or Settlement.
In case any judgment is recovered against any
Participating Company or
any settlement is made of any claim or suit on account
of the death of
a Participant, and the amount paid to the beneficiaries
who would have
received benefits under the Plan is less than what would
otherwise have
been payable under the Plan, the difference between
the two amounts
may, in the discretion of the Committee or the
Administrator, as
applicable, be distributed to such beneficiaries.
9.18. Payment under Law.
In the case of any benefit (which the Committee or the
Administrator,
as applicable, shall determine to be of the same general
character as a
payment provided by the Plan)that is payable to any
Participant, to his
or her beneficiaries, his or her estate or his or her
annuitant under
any law now in force or hereafter enacted, only the
excess, if any, of
the amount prescribed in the Plan above the amount of
such payment
prescribed by law shall be payable under the Plan;
provided, however,
that no benefit payable under the Plan shall be
reduced by reason of
any governmental benefit or pension payable on
account of military
service or by reason of any benefit which the
recipient would be
entitled to receive under the Social Security
Act or Railroad
Retirement Act. In those cases where, because of
differences in the
beneficiaries or in the time or methods of payment or
otherwise, the
determination of any such excess is not
ascertainable by mere
comparison but adjustments are necessary, the
Committee or the
Administrator, as applicable, shall, in its
discretion, determine
whether or not in fact any such excess exists and make
the adjustments
necessary to carry out in a fair and equitable manner the
spirit of the
provision for the payment of any such excess. Further,
in determining
whether or not there is an excess, to the extent any
payments under any
law are considered in determining whether there is any
excess payable
to an employee under any other comparable plan
sponsored by the
Company, the amount of such payments under law shall not
be considered
under this Plan.
9.19. Entire Plan.
This written Plan document is the final and exclusive
statement of the
terms of this Plan, and any claim of right or
entitlement under the
Plan shall be determined in accordance with its
provisions pursuant to
the procedures described in Article 7. Unless otherwise
authorized by
the Board or its delegate, no amendment or
modification to this Plan
shall be effective until reduced to writing and
adopted pursuant to
Section 8.02.
Appendix A
Prior Pension Formulas
The pension formulas in effect for retirements between
the period from
August 10, 1980 to April 14, 1991, inclusive, are
outlined below. The
Basic Formula shown in Part 1. applies solely to
Officers; the
Alternate Formula in Part 2. applies to all
participants for service
benefit purposes only, and an Officer is entitled
to the greater
benefit provided under either the Basic Formula or
Alternate Formula.
Part 1 - Basic Formula:
The product of one and six tenths percentum (1.6%) and
an Officer's
Adjusted Career Income. The early retirement
discounts shown is
Paragraphs 3(b)(ii) and 4(b)(i) of Section 4 of the
Plan apply to
pension benefits under this Formula.
"Adjusted Career Income" is calculated in two steps:
Step 1 - Determine the average of the amount of short
term incentive
awards or standard awards up to a permitted maximum
amount which were
paid or effective during a specified pay base period and
multiply this
average amount by Term of Employment completed as of the
end of the pay
base period;
Step 2 - Total the amount of the applicable awards
after the pay base
period to retirement and add this amount to the amount
calculated under
Step 1.
The components of the adjusted career income
calculation are shown
below:
Type of Award Type
of Award Limitation on Amount
Date of Pay Base Includable in
Includable after of Award Includable in
Retirement Period Pay Base Period* Pay
Base Period* Pension Computation
- ---------- ------ ----------------
- ---------------- -------------------
8-10-80 to 1-1-75 to Actual Short Term
Actual Short Term 15% of Position Rate
1-30-82 12-31-79 Incentive Award
Incentive Award
1-31-82 to 10-1-76 to Actual
Actual for 1981 and 50% of Position Rate
9-29-83 9-30-81 1982;
Standard for 1983
9-30-83 to 10-1-77 to Actual
Actual for 1982; 60% of Position Rate
1-30-86 9-30-82
Standard for 1983
and after
1-31-86 to 7-1-79 to Actual to 1-1-83;
Standard 60% of Position Rate
5-30-88 6-30-85 Standard for 1983
and after
5-31-88 to 1-1-84 to Standard
Standard 60% of Position Rate
4-14-91 6-30-85
<FN>
* Awards for partial years during and after the Pay Base
Period and for the
year of retirement are prorated. In addition, no award is
includable for
the year of retirement if an Officer does not complete at
least 3 months of
Active Service during such year.
</FN>
Appendix A
Part 2 - Alternate Formula:
Provisions applicable from January 2, 1984 through May 30, 1988
The following Alternate Formula was effective for retirements on or after
January 2, 1984 through May 30. 1988:
A. The product of one and two-tenths percentum (1.2%) and
Adjusted Career
Average Pay,
PLUS
B. Ten dollars ($10.) and the product of five-hundredths
percentum (.05%)
and the difference between the Covered Compensation Base
for the year
of retirement and the Adjusted Career Average Pay.
TIMES
C. Term of employment at retirement,
MINUS
D. Annual Service pension payable under the Pension Plan
before reduction
for a Survivor Annuity or early retirement.
The early retirement discount described in Appendix C of this
Plan applies to the amounts computed under the Alternate Formula.
"Adjusted Career Average Pay" in the case of
an Officer is
calculated by dividing the sum of the total
Adjusted Career
Income under the Basic Formula of this
Plan in effect at
retirement and the total Adjusted Career
Income under the
Pension Plan formula in effect at retirement by
such Officer's
Term of Employment at retirement.
"Adjusted Career Average Pay" for an
E-band Employee is
Calculated by dividing the total Adjusted
Career Income under
the Pension Plan formula in effect at
retirement by such
employee's Term of Employment at retirement.
Provisions applicable from May 31, 1988 through October 18, 1993
The following Alternate Formula was effective for retirements on or after May
31, 1988 through October 18. 1993:
A. The product of one and seven-tenths percentum (1.7%)
and Adjusted
Career Average Pay,
MINUS
B. The product of eight-tenths (0.8%) and the Covered
Compensation Base,
TIMES
C. Term of employment at retirement,
MINUS
D. Annual Service pension payable under the Pension Plan
before reduction
for a Survivor Annuity or early retirement.
The early retirement discount described in Appendix C of this
Plan applies to the amounts computed under the Alternate Formula.
"Adjusted Career Average Pay" is calculated
by dividing the
sum of the total Adjusted Career Income
under the Basic
Formula of this Plan in effect at retirement
and the total
Adjusted Career Income under the Pension
Plan formula in
effect at retirement by such Officer's Term of
Employment at
retirement.
Part 3 - Waiver of Death Benefit
Waiver of the Death Benefit. If an Officer is deemed to
have waived the
death benefit under the Pension Plan, he or she will be
deemed to have
waived such death benefits pursuant to this Plan as
well, provided he
or she either died before January 1, 1987 or he or
she retired or
terminated employment before December 31, 1986 and had
attained age 55
on or before December 31, 1983; if a prior waiver by
an Officer of
death benefits under the Pension Plan is deemed
rescinded under the
Pension Plan, such waiver is deemed rescinded under this
Plan effective
December 31, 1986.
APPENDIX B
Section 4.02(c) Alternate Minimum Formula - Table of
Factors
Age
Service 50 51 52 53 54 55 56
57 58 59 60 61 62 63 64 65
20 or less 1.33 1.33 1.33 1.36 1.43 1.47 1.43
1.38 1.33 1.28 1.25 1.20 1.15 1.10 1.05 1.00
21 1.38 1.32 1.32 1.35 1.42 1.46 1.42
1.37 1.32 1.27 1.24 1.19 1.14 1.09 1.05 1.00
22 1.42 1.37 1.31 1.34 1.41 1.45 1.41
1.36 1.30 1.26 1.23 1.18 1.14 1.09 1.05 1.00
23 1.47 1.41 1.36 1.33 1.40 1.44 1.40
1.35 1.29 1.25 1.22 1.17 1.13 1.09 1.04 1.00
24 1.52 1.46 1.40 1.39 1.39 1.43 1.39
1.34 1.29 1.24 1.21 1.17 1.12 1.08 1.04 1.00
25 1.58 1.51 1.45 1.43 1.45 1.42 1.38
1.33 1.28 1.23 1.20 1.16 1.12 1.08 1.04 1.00
26 1.57 1.50 1.44 1.42 1.44 1.41 1.37
1.32 1.27 1.22 1.19 1.15 1.11 1.08 1.04 1.00
27 1.57 1.49 1.43 1.42 1.43 1.40 1.36
1.31 1.26 1.21 1.18 1.15 1.11 1.07 1.04 1.00
28 1.56 1.48 1.42 1.41 1.43 1.39 1.36
1.31 1.25 1.21 1/18 1.14 1.11 1.07 1.04 1.00
29 1.55 1.48 1.42 1.40 1.42 1.39 1.35
1.30 1.25 1.20 1.17 1.14 1.10 1.07 1.03 1.00
30 1.38 1.36 1.33 1.35 1.39 1.38 1.34
1.29 1.24 1.19 1.17 1.13 1.10 1.07 1.03 1.00
31 1.38 1.35 1.33 1.34 1.39 1.37 1.34
1.29 1.24 1.19 1.16 1.13 1.10 1.06 1.03 1.00
32 1.37 1.35 1.32 1.34 1.38 1.37 1.33
1.28 1.23 1.18 1.16 1.12 1.09 1.06 1.03 1.00
33 1.37 1.34 1.32 1.34 1.38 1.36 1.33
1.28 1.23 1.18 1.15 1.12 1.09 1.06 1.03 1.00
34 1.36 1.34 1/31 1.33 1.37 1.36 1.32
1.27 1.22 1.17 1.15 1.12 1.09 1.06 1.03 1.00
35 or more 1.36 1.33 1.31 1.33 1.37 1.35 1.32
1.27 1.22 1.17 1.14 1.11 1.09 1.06 1.03 1.00
APPENDIX C
Section 4.02(b) Alternate Formula
Early Retirement Factors Based Upon Attained Years and
Months of Age
Attained Age
Years Months
0 1 2 3 4 5
6 7 8 9 10 11
- - - - - -
- - - - - -- --
50 .29 .29 .30 .30 .31 .31
.32 .32 .32 .33 .33 .34
--
51 .34 .34 .35 .35 .36 .36
.37 .37 .37 .38 .38 .39
--
52 .39 .40 .40 .41 .42 .42
.43 .44 .44 .45 .46 .46
--
53 .47 .48 .48 .49 .50 .50
.51 .52 .52 .53 .54 .54
--
54 .55 .56 .57 .57 .58 .59
.60 .60 .61 .62 .63 .63
--
55 .64 .64 .66 .66 .66 .66
.67 .67 .67 .67 .69 .69
--
56 .69 .69 .71 .71 .71 .72
.72 .72 .74 .74 .74 .76
--
57 .76 .76 .78 .78 .78 .79
.79 .79 .81 .81 .81 .83
--
58 .83 .83 .84 .84 .86 .86
.88 .88 .88 .90 .90 .91
--
59 .91 .91 .93 .93 .95 .95
.97 .97 .97 .98 .98 1.00
--
60 1.00
--