Exhibit (10)(v)
CURTISS-WRIGHT CORPORATION RETIREMENT PLAN
(AS AMENDED THROUGH JANUARY 1, 1998)
WITNESSETH:
WHEREAS, the CURTISS-WRIGHT CONTRIBUTORY RETIREMENT PLAN, a defined benefit
retirement plan, was established for eligible non-union Employees of the
Company. The benefits under the retirement plan were also available to the
Company's union employees whose collective bargaining units negotiated for these
benefits. The Plan, as amended, and as restated from time to time, had been
approved by the Internal Revenue Service as a qualified plan under the
applicable Federal income tax laws.
WHEREAS, effective December 31, 1991, the CURTISS-WRIGHT PENSION PLAN was
merged into the CURTISS-WRIGHT CONTRIBUTORY RETIREMENT PLAN.
WHEREAS, wherever the words "Prior Plan" are used below, they shall refer
to the CURTISS-WRIGHT CONTRIBUTORY RETIREMENT PLAN, established on May 1, 1953,
and which was in full force and operation through August 31, 1994.
WHEREAS, effective September 1, 1994, the METAL IMPROVEMENT COMPANY, INC.
RETIREMENT INCOME PLAN and the CURTISS-WRIGHT FLIGHT SYSTEMS/SHELBY, INC.
CONTRIBUTORY RETIREMENT PLAN were merged into the CURTISS-WRIGHT CONTRIBUTORY
RETIREMENT PLAN.
NOW, THEREFORE, the CURTISS-WRIGHT CONTRIBUTORY RETIREMENT PLAN, the Prior
Plan, is hereby renamed and amended by restating it in its entirety and shall
hereafter be known and referred to as the CURTISS-WRIGHT CORPORATION RETIREMENT
PLAN (hereinafter referred to as the "Restated Plan" or the "Plan").
ARTICLE 1
DEFINITIONS
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Wherever used herein, the following terms shall have the following meanings
unless the context otherwise requires:
1.01 "Actuarial Equivalent" means the value determined on the basis of
applicable factors set forth below or as otherwise specifically set forth in the
Plan.
Effective January 1, 1992, for calculating Joint & Survivor reduction
factors which are applied to a Life Annuity benefit, the UP 84 mortality table
with a one (1) year setback for participant and a four (4) year setback for
beneficiaries at an interest rate of seven percent (7%).
Effective September 1, 1994, for calculating lump sum factors for benefits
other than escalating benefits, converting the Cash Balance Account into an
immediate level annuity, deriving the employee annuity based upon the cashout of
employee contributions with interest at a specified date, the applicable
mortality table and interest rate shall be the UP 84 mortality table with no
setback for the participant and a three (3) year setback for beneficiaries,
using the PBGC interest rates.
All lump sums other than those attributable to the Cash Balance Account
that are paid to participants after age fifty-five (55), regardless of whether
the participant terminated prior to age fifty-five (55), will use an immediate
annuity factor times the early retirement factor at that age. All lump sums
other than those attributable to the Cash Balance Account paid before age
fifty-five (55) will use a deferred annuity factor deferred to age sixty-five
(65). For calculating the Cash Balance Account, the Escalating Annuity Benefit
is adjusted to payment age as described in Sections 4.07(b) and (c) multiplied
by the complete expectation of life of the Participant, at the date of
determination, based on the 1983 Group Annuity Mortality Table using a fixed
blend of fifty percent (50%) of the male rates and fifty percent (50%) of the
female rates.
For a non-escalating annuity that commences prior to Early Retirement Date,
the 1983 GAM table for Males and Females with an eighty percent (80%) weighting
on the male table's q and a twenty percent (20%) weighting on the female table's
q. The interest rate is six percent (6%). The early retirement reduction factor
will be based on benefit payments that would have commencedat age sixty-five
(65), reduced without subsidy to an age below fifty-five (55).
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Effective January 1, 1997, for calculating Joint & Survivor reduction
factors which are applied to a Life Annuity benefit, the applicable mortality
table and interest rate shall be the mortality table derived by using a fixed
blend of fifty percent (50%) of the male mortality rates and fifty percent (50%)
of the female mortality rates from the 1983 Group Annuity Mortality Table with
ages set forward two (2) years for participants and ages set back one (1) year
for beneficiaries and an interest rate of seven percent (7%).
For calculating lump sum factors for benefits other than escalating
benefits, converting the Cash Balance Account into an immediate level annuity,
deriving the employee annuity associated with employee contributions with
interest at a specified date, the applicable mortality table and interest rate
shall be the mortality table described in Code Section 417(e)(3)(A)(ii)(I) as in
effect on the first day of the Plan Year in which the Annuity Starting Date
occurs with no setback for the participant or for beneficiaries, and the Code
Section 417(e)(3)(A)(ii)(II) interest rate which is equivalent to the annual
rate of interest on 30-year Treasury securities in effect during the month of
December for which the distribution occurs in the following year. The annual
rate of interest on the 30-year Treasury securities in effect during the month
of December is the rate published by the Board of Governors of the Federal
Reserve System during the early part of January of the following year.
All lump sums that are paid to participants will use an immediate annuity
factor times the early retirement factor at that age. The early retirement
factor for benefits commencing prior to age 55 for the non-escalating annuity
benefit is actuarially reduced from age 65 using the interest rate and mortality
table described in Code Section 417(e)(3)(A)(ii). For the escalating annuity
benefit, early retirement factors for all ages are actuarially reduced, as
described in Section 4.07(b) and (c).
For converting an amount payable as an escalating annuity to a lump sum,
the amount of the annuity shall be multiplied by the complete expectation of
life of the Participant, at the date of determination, based on the 1983 Group
Annuity Mortality Table using a fixed blend of fifty percent (50%) of the male
rates and fifty percent (50%) of the female rates. For converting an amount
payable as an escalating annuity to any other form of benefit, the amount shall
first be converted to a lump sum as above, the lump sum shall be converted to an
immediate single life annuity using whatever factors are then otherwise used in
the Plan to convert annuities to lump sums, and the single life annuity will be
converted to any other form of annuity using whatever factors are otherwise used
in the Plan to convert single life annuities to other forms of annuities."
1.02 "Age" means the years and months attained by a Participant.
1.03 "Affiliated Service Group" or "Controlled Group" means the Company and all
corporations, partnerships or other organizations, the Employees of which are
treated as employed by the Company pursuant to Section 414(b), (c), (m), (n) or
(o) of the Code, as modified, where applicable, by Section 415(h) of the Code.
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1.04 "Annuity Starting Date" means the first day of the period for which an
amount is payable as an annuity. If a benefit is not payable in the form of an
annuity, the first day on which all events have occurred which entitle the
Participant to such benefit.
1.05 "Average Compensation" means the average of a Participant's Compensation
over the sixty (60) consecutive months within the last one hundred twenty (120)
months which produces the highest average. If the Participant has less than
sixty (60) months of Service, Compensation is averaged over the Participant's
months of Service from the date of his employment to his date of termination of
employment.
1.06 "Beneficiary" means the individual or entity designated as such by a
Participant pursuant to the Plan or otherwise entitled to receive any payment
pursuant to the Plan upon the death of the Participant. If with respect to any
payment no individual or entity has been designated by a Participant, or no
designated Beneficiary survives the Participant, the Participant's Beneficiary
shall be (a) the Participant's surviving Spouse, if living at the time of such
payment; or in default thereof (b) the Participant's estate.
1.07 "Board of Directors" means the Board of Directors of the
Company.
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1.08 "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and the corresponding provisions of any subsequently enacted Federal tax
laws.
1.09 "Committee" means the Committee appointed by the President to administer
the Plan as agent of the Company.
1.10 "Company" or "Employer" means CURTISS-WRIGHT CORPORATION, including any
affiliate or subsidiary of the Company which shall adopt this Plan for its
Employees, with the approval of the Company, and any other corporation,
partnership, business associa tion or proprietorship which shall have assumed in
writing the obligations of the Plan and Trust, with the approval of the Company,
including any successor to an Employer as a result of a statutory merger,
purchase of assets or any other form of reorgani zation of the business of the
Company.
1.11 "Compensation" means, except as defined in Section 6.12, all of each
Participant's regular or base salary or wages, including overtime pay,
commissions and payments under the Company's incentive compensation plans or
bonus plans.
Compensation shall include only that Compensation which is actually paid to the
Participant during the applicable period. Except as provided elsewhere in this
Plan, the applicable period shall be the Plan Year.
Notwithstanding the above, Compensation shall include any amount which is
contributed by the Company pursuant to a salary reduction agreement and which is
not includable in the gross income of the Employee under a "qualified cash or
deferred arrangement," as defined in Section 401(k) of the Code, a non-qualified
cash or deferred arrangement, or under a "cafeteria plan," as defined in Section
125 of the Code.
However, effective on and after January 1, 1989 and before January 1, 1994,
Compensation taken into account for any purpose under the Plan, including the
determination of Average Compensa tion, shall not exceed $200,000 per year. As
of January 1 of each calendar year on and after January 1, 1990 and before
January 1, 1994, the applicable limitation as determined by the Commissioner of
Internal Revenue for that calendar year shall become effective as the limitation
on Compensation to be taken into account under the Plan for such calendar year
and all prior calendar years, inlieu of the $200,000 limitation set forth above,
or as previously adjusted.
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For Plan Years beginning on or after January 1, 1994, the annual Compensation of
each Employee taken into account under the Plan shall not exceed the OBRA '93
annual compensation limit. The OBRA '93 annual compensation limit is $150,000,
as adjusted by the Commissioner for increases in the cost of living in
accordance with Section 401(a)(17)(B) of the Code. The cost-of-living adjustment
in effect for a calendar year applies to any period, not exceeding twelve (12)
months, over which compensation is determined (determi nation period) beginning
in such calendar year.
In applying the OBRA '93 annual compensation limitation, the family group of a
Highly Compensated Employee who is subject to the family member aggregation
rules of Code Section 414(q)(6) because such Participant is either a "five
percent owner" of the Employer or one of the ten (10) Highly Compensated
Employees paid the greatest "415 Compensation" during the year, shall be treated
as a single Participant, except that for this purpose family members shall
include only the affected Participant's spouse and any lineal descendants who
have not attained age nineteen (19) before the close of the year. If, as a
result of the application of such rules the OBRA '93 annual compensation
limitation is exceeded, then the limitation shall be prorated among the affected
family members in proportion to each such family member's Compensation prior to
the application of this limitation except for purposes of determin ing
compensation below the Plan's integration level.
For Plan Years beginning on or after January 1, 1994, (i) any reference in this
Plan to the limitation under Section 401(a)(17) of the Code shall mean the OBRA
'93 annual compensation limit set forth in this provision; and (ii) if
Compensation for any Plan Year beginning before January 1, 1994 is taken into
account in determin ing an Employee's contributions or benefits for the current
year, the compensation for such prior year is subject to the applicable annual
compensation limit in effect for that prior year.
Notwithstanding any provision in this Plan to the contrary, however, subject to
any limitations imposed under Code Section 401(a)(17), effective for periods
prior to September 1, 1994, Compensation shall mean:
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(a) for each calendar month prior to July 1, 1970, 1/12th of his basic salary
(on an annual basis) in effect at the beginning of each Plan Year; and
(b) for each calendar month after June 30, 1970, 1/12th of the sum of his basic
salary (on an annual basis) in effect at the beginning of each Plan Year,
plus any cash payments he received in the prior Plan Year under the
Company's Modified Incentive Compensation Plan; and shall remain constant
throughout each particular Plan Year (except for the effect on the last
half of the 1970 Plan Year of cash payments received in 1969 under the
Company's Modified Incentive Compensation Plan) regardless of increases or
decreases in actual salary. In the case of an Employee not eligible to
participate under the Plan at the beginning of a Plan Year, his
Compensation for the remaining months of that Plan Year shall be 1/12th of
his basic salary (on an annual basis) in effect on his eligibility date.
For purposes only of subparagraphs 3(c)(i)(B) of Article III of the Prior
Plan, Compensation means:
(c) prior to July 1, 1970, the basic salary or basic wages actually paid to the
Employee in the particular Plan Year;
(d) after June 30, 1970, the basic salary or basic wages plus cash payments
under the Company's Modified Incentive Compen sation Plan actually paid to
the Employee in the particular Plan Year; and
(e) after July 1, 1982, basic salary, basic wages or compensation received
under either the Company's Modified Incentive Compensation Plan or the
Metal Improvement Company bonus plan shall not be considered under this
Plan as reduced on account of any deferral or contribution which is made
pursuant to the CURTISS-WRIGHT CORPORATION DEFERRED COMPENSATION PLAN
(subsequently known as the CURTISS-WRIGHT CORPORATION SAVINGS AND
INVESTMENT PLAN). Basic salary, basic wages or Compensa tion received under
either the Company's Modified Incentive Compensation Plan or the Metal
Improvement Company bonus plan shall be calculated as if no deferral or
contributions were made to the CURTISS-WRIGHT CORPORATION DEFERRED
COMPENSATION PLAN (subsequently known as the CURTISS-WRIGHT CORPORATION
SAVINGS AND INVESTMENT PLAN).
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"Basic salary or basic wages" of an Employee means his basic salary or
basic wages only, and shall in no case include any amounts paid to him as
overtime, bonuses, deferred compensa tion or additional compensation of any
sort."
1.12 "Covered Compensation" means with respect to any Participant for Plan Years
beginning after December 31, 1994 the average (without indexing) of the Taxable
Wage Bases in effect for each calendar year during the thirty-five (35) year
period ending with the last day of the current calendar year, and for Plan Years
beginning prior to January 1, 1995, the thirty-five (35) year period ending with
the last day of the calendar year prior to the current calendar year. The
determination of Covered Compensation shall be made with reference to Section
1.401(l)-1(c)(7) of the Treasury Regulations. A Participant's Covered
Compensation shall be adjusted each Plan Year and no increase in Covered
Compensation shall decrease a Participant's retirement benefit. In determining
the Covered Compensation for a Plan Year, the Taxable Wage Base for all calendar
years beginning after the first day of the Plan Year is assumed to be the same
as the Taxable Wage Base in effect as of the beginning of the Plan Year. Any
change in a Participant's Covered Compensation shall not cause any reduction in
his retire ment benefit.
1.13 "Credited Service" means completed years and calendar months of employment
and shall include the following:
(a) All periods of employment of an Employee with the Company, and periods
of employment with a member of the Controlled Group while the member of the
Controlled Group has adopted the Plan."
(b) Any periods of Leave of Absence approved by the Company in writing, or
military leave during the period in Subsection (a) above.
(c) For periods on or after May 1, 1966 and before Decem ber 31, 1991,
Credited Service of an Employee eligible to partici pate in this Plan shall
include Service which would be creditable under the CURTISS-WRIGHT PENSION PLAN
for any periods of his employment not included as Credited Service under
Subsections (a) and (b) above.
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For purposes of determining Credited Service for the Prior Plan, the
following provisions shall apply:
(i) Only Employees who were Participants under the terms of the Prior
Plan shall be entitled to Credited Service.
(ii) Credited Service shall mean completed years and calendar months
of employment, including periods of employment with the Company or a member of
the Controlled Group following his most recent date of hire preceding December
31, 1991.
Notwithstanding any provision in this Plan to the contrary, a Participant
who elects Disability Retirement shall continue to receive credit for Years of
Credited Service and Vesting Years of Service until his Normal Retirement Date
and shall be deemed to receive Compensation in each such year in an amount equal
to his Compensation on the date on which payment of his Long Term Disability
Benefits commenced.
Notwithstanding any provision in this Plan to the contrary, for purposes of
determining Credited Service, an Employee shall be credited with a calendar
month of Service for a month in which such Participant completes one (1) Hour of
Service. This provision shall apply only in the month of hire and the month of
separation of Service.
1.14 "Disability" means a physical or mental impairment that, in the opinion of
the Committee, is of such permanence and degree that the Participant is unable,
because of such impairment, to perform any gainful activity for which the
Participant is entitled by virtue of experience, training, or education. The
permanence and degree of such impairment shall be supported by medical evidence.
1.15 "Disability Retirement Date" means the date that a Partici pant who is
totally and permanently disabled elects to retire and commence to receive his
Disability Retirement Benefits.
1.16 "Early Retirement Date" means the date on which a Participant has attained
at least age fifty-five (55) and completed at least five (5) Years of Credited
Service.
A Participant who terminates employment after satisfying the service
requirement for Early Retirement and who thereafter reaches the age requirement
contained herein shall be entitled to receive his benefits pursuant to Section
6.03 of the Plan."
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1.17 (a) "Effective Date" means September 1, 1994.
(b) "Original Effective Date" means May 1, 1953.
1.18 "Employee" means any Employee of the Company maintaining the Plan or of any
other Employer required to be aggregated with such Company under Section 414(b),
(c), (m) or (o) of the Code.
The term Employee shall also include any leased Employee deemed to be an
Employee of any Employer described in the previous paragraph as provided in
Section 414(n) or (o) of the Code.
1.19 "Entry Date" means the first day of every January, April, July and October.
1.20 "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the corresponding provi sions of any subsequently
enacted pension laws.
1.21 "Fiduciary" means any Person that exercises any discretionary authority or
discretionary control respecting the management or disposition of Plan assets or
renders any investment advice for a fee or other compensation or exercises any
discretionary authority or responsibility for the administration of the Plan.
1.22 "Highly Compensated Employee"
The group of highly compensated employees ("HCEs") includes any employee
who during the plan year performs services for the employer and who (i) is a
5-percent owner, (ii) receives compensa tion for the plan year in excess of the
ss.414(q)(I)(B) amount for the plan year, (iii) receives compensation for the
plan year in excess of the ss.414 (q)(I)(C) amount for the plan year and is a
member of the top paid group of employees within the meaning of ss.414(q)(4), or
(iv) is an officer and receives compensation during the plan year that is
greater than 50 percent of the dollar limitation in effect under
ss.415(b)(I)(A). If no officer satisfies the compensation requirement during the
plan year, the highest paid officer for such year shall be treated as a HCE.
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For purposes of determining who is a HCE, compensation means compensation
within the meaning of ss.415(c)(3) as set forth in the plan for purposes of
determining the ss. 415 limits, except that amounts excluded pursuant to
ss.ss.125,402(e)(3), 402(h)(1)(B) and 403(b) are included. If compensation used
for purposes of determining the ss. 415 limits under the plan is not defined as
total compensation as provided under ss.415(c)(3) and the regulations
thereunder, then for purposes of determining who is a HCE, compensation means
compensation within the meaning of ss.1.415- 2(d)(11)(I) of the Income Tax
Regulations, except that amounts excluded pursuant to ss.ss.125, 402(e)(3),
402(h)(I)(B) and 403(b) are included.
If an employee is a family member of either a 5-percent owner (whether
active or former) or a HCE who is one of the 10 most HCE's ranked on the basis
of compensation paid by the employer during such year, then the family member
and the 5-percent owner or top- ten HCE shall be aggregated. In such case, the
family member and 5-percent owner or top-ten HCE shall be treated as a single
employee receiving compensation and plan contributions or benefits equal to the
sum of the compensation and benefits of the family member and 5-percent owner or
top-ten HCE. For purposes of this section, family member includes the spouse,
lineal ascendants and descendants of the employee or former employee, and the
spouses of such lineal ascendants and descendants.
The determination of who is a HCE, including the determina tions of the
number and identity of employees in the top paid group, the number of employees
treated as officers and the compensation that is taken into account, shall be
made in accor dance with the ss. 414(q) and ss. 1.414(q)-1T of the temporary
Income Tax Regulations to the extent they are not inconsistent with the method
established above.
1.23 "Hour of Service" means:
(a) Each hour for which an Employee is paid, or entitled to payment, for
the performance of duties for the Company. These hours will be credited to the
Employee for the computation period in which the duties are performed; and
(b) Each hour for which an Employee is paid, or entitled to payment, by the
Company on account of a period of time during which no duties are performed
(irrespective of whether the employment relationship has terminated) due to
vacation, holiday, illness, incapacity (including disability), layoff, jury
duty, military duty or Leave of Absence. No more than five hundred one (501)
Hours of Service will be credited under this paragraph for any single continuous
period (whether or not such period occurs in a single computation period). Hours
under this paragraph will be calculated and credited pursuant to Section
2530.200b-2 of the Department of Labor Regulations, which is incorporated herein
by this reference; and
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(c) Each hour for which back pay, irrespective of mitigation of damages, is
either awarded or agreed to by the Company. The same Hours of Service will not
be credited both under paragraph (a) or paragraph (b), as the case may be, and
under this paragraph (c). These hours will be credited to the Employee for the
computation period or periods to which the award or agreement pertains rather
than the computation period in which the award, agreement or payment is made.
Hours of Service will be credited for employment with other members of an
Affiliated Service Group (under Section 414(m) of the Code), a Controlled Group
(under Section 414(b) of the Code), or a group of trades or businesses under
common control (under Section 414(c) of the Code) of which the adopting Employer
is a member, and any other entity required to be aggregated with the Company
pursuant to Section 414(o) of the Code and the regulations thereunder.
Hours of Service will also be credited for any individual considered an
Employee for purposes of this Plan under Section 414(n) or (o) of the Code and
the regulations thereunder.
Notwithstanding any provision in this Plan to the contrary, Hours of
Service shall not be credited for severance pay.
1.24 "Leased Employee" means any person (other than an Employee of the
recipient) who pursuant to an agreement between the recipient and any other
person ("leasing organization") has performed services for the recipient (or for
the recipient and 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 of a type historically performed by
Employees in the business field of the recipient Employer. Con tributions or
benefits provided a Leased Employee by the leasing organization which are
attributable to services performed for the recipient Employer shall be treated
as provided by the recipient Employer.
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A Leased Employee shall not be considered an Employee of the recipient if:
(i) such Employee is covered by a money purchase pension plan providing: (1) a
nonintegrated employer contribution rate of at least ten (10%) percent of
Compensation, as defined in Section 415(c)(3) of the Code, but including amounts
contributed by the Company pursuant to a salary reduction agreement which are
excludable from the Employee's gross income under Section 125, Section
402(a)(8), Section 402(h) or Section 403(b) of the Code, (2) immediate
participation, and (3) full and immediate vesting; and (ii) Leased Employees do
not constitute more than twenty (20%) percent of the recipient's nonhighly
compensated workforce.
1.25 "Leave of Absence" means any leave of absence which may be granted by the
Company in accordance with reasonable standards and policies uniformly observed
and consistently applied and may include, by way of illustration and not
limitation, leaves of absence granted because of illness of the Employee or of
his family members, vacations without pay, and pursuit of educational or
vocational studies.
1.26 "Life Annuity" means, for other than the Escalating Annuity Benefit, a
benefit payable in equal monthly amounts for the life of the annuitant and
ceasing with the payment made on the first day of the month in which the
annuitant dies, or, for the Escalating Annuity Benefit, the benefit form
described in the second paragraph of Section 4.01."
1.27 "Limitation Year" means, for purposes of complying with Section 415 of the
Code, a Plan Year.
1.28 "Maternity/Paternity Leave" means a temporary cessation from active
employment with the Company or with any member of the Controlled Group which
begins on or after the first day of the first Plan Year beginning after December
31, 1984, for any of the following reasons:
(a) the pregnancy of the Employee;
(b) the birth of a child of the Employee;
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(c) the placement of a child with the Employee in connection with the
adoption of such child by the Employee; or
(d) the caring for such child for a period beginning immediately following
such birth or placement; provided, however, that in order for an Employee's
absence to qualify as a Maternity/ Paternity Leave of Absence, the Employee must
furnish the Committee in a timely manner, with such information and
documentation as the Committee may reasonably request to establish that the
absence from work is for reasons referred to above and the number of days for
which there was such absence.
1.29 "Named Fiduciary" means the Company.
1.30 Normal Retirement Age' means the later of:
(a) the date a Participant attains age sixty-five (65); or
(b) the fifth (5th) anniversary of the date as of which the Participant
commenced employment.
A Participant shall become fully vested in his Normal Retirement Benefit
upon attaining his Normal Retirement Age."
1.31 "Normal Retirement Date" means the first day of the month coinciding with
or next following the Participant's Normal Retirement Age.
1.32 "OBRA '93" means the Omnibus Reconciliation Act of 1993.
1.33 "Participant" means a person who meets the requirements of Article 2, 9 or
10 for participation in the Plan, including a former Participant.
1.34 "Plan" means the CURTISS-WRIGHT CORPORATION RETIREMENT PLAN, as set forth
herein and as it may be amended.
1.35 "Plan Year" means:
(a) prior to May 1, 1966, a twelve (12) month period starting May 1 and
ending April 30 of the succeeding year; and
(b) the eight (8) month period starting May 1, 1966 and ending December 31,
1966; and
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(c) commencing with January 1, 1967, a twelve (12) month period starting
January 1 and ending December 31 of the same calendar year.
1.36 "Present Value" means the Actuarial Equivalent, as defined in Section 1.01,
of the Normal Form of Benefit.
1.37 "Qualified Joint and Survivor Annuity" means an immediate annuity for the
life of the Participant with a survivor annuity for the life of the Spouse,
which is equal to the amount, which is payable during the joint lives of the
Participant and the Spouse, and which is the amount of benefit which can be
purchased with the actuarial equivalent of the Participant's vested retirement
benefit.
1.38 "Service" means all periods of employment with the Company. The period of
employment begins when a Participant first completes one (1) Hour of Service and
ends on the earlier of the date the Employee resigns, is discharged, retires,
dies or, if the Employee is absent for any other reason, on the first
anniversary of the first day of such absence (with or without pay) from the
Company. If an Employee is absent for any reason and returns to the employ of
the Company before incurring a One-Year Break in Service, he will receive credit
for his period of absence up to a maximum of twelve (12) months. Service
subsequent to a One-Year Break in Service will be credited as a separate period
of employment.
1.39 "Severance From Service Date" means the earliest of the date on which an
Employee (a) resigns, retires, is discharged or dies, or (b) the first
anniversary of the first date of absence for any reason.
1.40 "Spouse" means the person to whom the Participant is legally married at the
earlier of the Participant's death or the date on which payment of the
Participant's benefits commence, and any former Spouse to the extent provided
under a qualified domestic relations order as described in Section 414(p) of the
Code ("QDRO"). Except as otherwise required pursuant to a QDRO, an individual
shall not be considered to be a Spouse eligible to receive the Spouse's Survivor
Annuity pursuant to Section 8.01, unless such individual was married to the
Participant for the one-year period ending on the Participant's death.
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1.41 "Taxable Wage Base" means the maximum amount of earnings which may be
considered wages with respect to any Plan Year under Code Section 3121(a)(1) and
determined as of the first day of each such Plan Year.
1.42 "Trust" means the trust created by the Trust Agreement.
1.43 "Trust Agreement" means the agreement entered into with a bank or trust
company establishing the Trust under the Plan for the purpose of holding
contributions under the Plan and for the payment of benefits under the Plan, as
such agreement may be amended from time to time.
1.44 "Trust Fund" means the assets of the Trust.
1.45 "Trustee" means the person or persons acting as trustee or trustees
hereunder at any time or from time to time. A Trustee shall be deemed to be a
"named fiduciary" pursuant to Section 402(a)(1) of ERISA.
1.46 "Vesting Year of Service" means any Plan Year during which the Employee is
credited with at least one thousand (1,000) Hours of Service. Vesting Years of
Service shall include all Years of Service prior to this restatement for which
such Employee received a Year of Service for vesting purposes under the terms of
the Prior Plan or under the terms of either the METAL IMPROVEMENT COMPANY, INC.
RETIREMENT INCOME PLAN or the CURTISS-WRIGHT FLIGHT SYS TEMS/SHELBY, INC.
CONTRIBUTORY RETIREMENT PLAN. If the Company maintains the Plan of a predecessor
Employer, Service with such Employer will be treated as Service for the Company.
1.47 "Year of Eligibility Service" means the completion of a twelve (12)
consecutive month period of Service which commences on the date the Employee
first completes one (1) Hour of Service.
1.48 "Year of Credited Service" means each year with the Company with respect to
which benefits are treated as accruing on behalf of the Participant for such
year pursuant to Section 1.13 of the Plan.
1.49 "Year of Service" means, unless otherwise indicated, twelve (12)
consecutive months of Service.
-17-
ARTICLE 2
ELIGIBILITY
2.01 Eligibility for Participation.
(a) Any non-union Employee and any union Employee (whose union has
negotiated a benefit under this Plan), employed by the Company as of the
Effective Date, shall become a Participant under this Plan as of the Effective
Date.
(b) Any future non-union Employee and union Employee (whose union has
negotiated a benefit under this Plan), shall be eligible to participate in the
Plan as of the Entry Date coinciding with or next following the date he
completes his Year of Eligibility Service, provided that he satisfies the
following eligibility requirements:
(i) He shall be a salaried or hourly Employee;
(ii) He shall either be employed by the Company in the United
States, or, if he is in the employ of a participating subsidiary and/or
constituent corporation now or hereafter organized under the laws of a country,
or political subdivision thereof, foreign to the United States of America, he
shall be a citizen of the United States of America.
2.02 Break in Service. There are no Breaks in Service under the terms of this
Plan.
-18-
ARTICLE 3
COMPANY CONTRIBUTIONS
3.01 Amount. Effective September 1, 1994, no contribution shall be required of
any Participant as a condition of his participation in the Plan. The Company
shall contribute to the Plan, for each Plan Year at least the amount, if any,
necessary to satisfy the minimum funding requirements of the Code for such Plan
Year.
3.02 Payment. Company contributions for any Plan Year shall be paid in cash to
the Trustee no later than the date prescribed by Section 412 of the Code (and
the regulations thereunder) for meeting the minimum funding requirements for
such Plan Year.
3.03 Forfeitures. Any forfeitures arising under the Plan shall be used to reduce
the Company's contribution.
3.04 Return of Company Contributions. A contribution made by the
Company may be returned to the Company if:
(a) the contribution is made by the reason of a mistake of fact, provided
such contribution is returned within one year of the mistaken payment, or
(b) the contribution is conditioned on its deductibility for Federal income
tax purposes (each contribution shall be deemed to be so conditioned unless
otherwise stated in writing by the Company) and such deduction is disallowed;
provided such contribu tion is returned within one year of the disallowance of
the deduction for Federal income tax purposes, or
(c) the contribution is made prior to the receipt of a determination letter
of the Internal Revenue Service as to the initial qualification of the Plan
under Section 401(a) of the Code and no favorable determination letter is
received; provided that any contribution made incident to that initial
qualification must be returned to the Company within one year after the initial
qualification is denied, but only if the application for qualifi cation is made
by the time prescribed by law for filing the Company's return for the taxable
year in which the Plan is adopted, or such later date as the Secretary of the
Treasury may prescribe.
-19-
The amount of any contribution which may be returned shall be reduced to
reflect its proportionate share of any net investment loss in the Trust Fund. In
the event Subsection (c) applies, the returned contribution may include any net
investment earnings or gains in the Trust Fund.
-20-
ARTICLE 4
ESCALATING ANNUITY BENEFIT
4.01 Escalating Annuity Benefit and Cash Balance Account. Effective September 1,
1994, an Escalating Annuity Benefit shall be established and maintained for each
Participant to which credits shall be made pursuant to the provisions of this
Article 4. The amount of Escalating Annuity Benefit credited to any Participant
shall be in addition to any other benefits credited under this Plan. The lump
sum value of a Participant's Escalating Annuity Benefit, determined in
accordance with Section 1.01, shall be referred to as his Cash Balance Account.
The normal form of retirement benefit for the Escalating Annuity Benefit is
a life annuity payable monthly, commencing at Normal Retirement Date, under
which the monthly benefit is automatically increased at the beginning of each
calendar year after benefit commencement. The percentage of increase, or
escalator, applicable to a calendar year is (i) for increases prior to 1997, the
applicable rate from Section 4.03(a), and (ii) for increases after 1996, the
30-year Treasury Bond rate for December of the prior year.
4.02 Pay Based Credits. For each Plan Year commencing with the 1994 Plan Year,
there shall be credited to the Escalating Annuity Benefit of each Participant
4/75 of three percent (3%) of the Participant's Compensation earned during that
Plan Year, such amount being credited as of the first day of the Plan Year.
For the Plan Year ending December 31, 1994, Compensation shall only include
that Compensation earned during the period from September 1, 1994 through
December 31, 1994.
4.03 Cost of Living Adjustment. For each Participant who has not commenced to
receive his Escalating Annuity Benefit, such benefit shall be increased in the
manner described in Subsection (b) below by a Cost of Living Adjustment
determined in accordance with Subsection (a) below, except that for active
Participants beyond Normal Retirement Age, (a) and (b) below will not apply and
(c) below will apply:
(a) The Cost of Living Adjustments shall be as follows:
-21-
(i) 6.880% for calendar year 1994; however, for the period from
September 1, 1994 to December 31, 1994, the equivalent rate of 2.24266%
is credited.
(ii) 8.688% for calendar year 1995.
(iii) 6.230% for calendar year 1996.
(iv) 6.550% for calendar year 1997.
(b) The Participant's Escalating Annuity Benefit shall be in creased at the end
of each Plan Year described in (a) above by an amount equal to the Cost of
Living Adjustment for such year multiplied by the Participant's Escalating
Annuity Benefit on the first day of such year inclusive of the Pay Based
Credits allocated to such year under 4.02 above.
The amount of a Participant's Escalating Annuity Benefit at any date shall
be the amount of the Benefit on the first day of the month containing such
date. The value of a Partici pant's Escalating Annuity Benefit on the first
day of a month shall be determined by increasing the value of the Benefit
as of the first day of the Plan Year containing such month by any Pay Based
Credits earned in such year and then by multiplying the sum by a Cost of
Living Factor based on (a) above and the number of months from the
beginning of the year to the first day of the month of determination.
(c) Participants who remain active employees beyond Normal Retirement Age will
not receive Cost of Living Adjustments in accordance with (a) and (b)
above, but will instead have their Escalating Annuity Benefits increased at
the end of each Plan Year by the 30-year Treasury Bond rate for December of
the prior year. If the amount of an Escalating Annuity Benefit is to be
determined as of a date other than the beginning or end of a Plan Year, the
rules of the second paragraph of (b) above shall be applied but using the
30-year Treasury Bond rate for December of the prior year in lieu of the
rates set forth in (a) above. Such increase will be in addition to any Pay
Based Credits earned under Section 4.02 above.
-22-
4.04 Vesting. The interest of a Participant in his Escalating Annuity Benefit
shall be vested in accordance with Article 5 of this Plan.
4.05 Distribution of Escalating Annuity Benefit.
(a) A Participant shall be entitled to commence distribution of his Escalating
Annuity Benefit upon (i) retirement on his Normal Retirement Date, Early
Retirement Date, or his Disabil ity Retirement Date, as the case may be, or
(ii) the date he separates from Service with the Company with a vested
benefit.
(b) A Participant's Escalating Annuity Benefit shall be distribut able pursuant
to a form of payment permissible under Article 7 as elected by the
Participant.
4.06 Death Benefit.
(a) If a Participant who has an Escalating Annuity Benefit dies before
commencement of the payment of such Benefit, the Participant's Beneficiary
shall receive an annuity that is the Actuarial Equivalent of the Escalating
Annuity Benefit, payable for the life of the Beneficiary. Payment of the
annuity shall commence on what would have been the Partici pant's Normal
Retirement Date (or the first day of the month following his date of death,
if later), unless the Beneficiary elects earlier commencement.
(b) In lieu of the annuity described in Section 4.06(a), a Beneficiary may
elect to receive the Participant's Cash Balance Account in a single sum.
Payment shall be made at such time as the Beneficiary elects.
(c) Subject to the spousal consent requirements of Section 8.01 of the Plan,
the Participant may, by written designation filed with the Committee,
designate one Beneficiary to receive payment under this Article and may
rescind or change any such designation.
(d) In the absence of spousal consent under Section 8.01, the Actuarial
Equivalent of any vested Escalating Annuity Benefit shall be paid to the
surviving spouse as a single life annuity over the spouse's life. In no
event shall the amount of the annuity payable to the surviving spouse be
less than the amount that would be payable under Section 8.01.
-23-
4.07 Amount of Escalating Annuity Benefits.
(a) A Participant's accrued benefit under this Article 4 as of any date is his
Escalating Annuity Benefit as of such date.
(b) If the Participant's benefit commences prior to Normal Retirement Date, the
amount of Escalating Annuity commencing at any earlier benefit commencement
date shall be the amount of his accrued Escalating Annuity Benefit
multiplied by an early retirement factor. For the purpose of this Section
4.07 the early retirement factor shall be the ratio of 18.75 to the
complete expectation of life at the Participant's age at benefit
commencement, such expectation being calculated using a fixed blend of
fifty percent (50%) of the male mortality rates and fifty (50%) of the
female mortality rates from the 1983 Group Annuity Mortality Table.
(c) If the Participant's benefit commences on or after Normal Retirement Date,
the amount of Escalating Annuity commencing at any such benefit
commencement date shall be the amount of his accrued Escalating Annuity
Benefit multiplied by a late retirement factor. For the purpose of this
Section 4.07 the late retirement factor shall be the ratio of 18.75 to the
complete expectation of life at the Participant's age at benefit
commencement, such expectation being calculated using a fixed blend of
fifty percent (50%) of the male mortality rates and fifty (50%) of the
female mortality rates from the 1983 Group Annuity Mortality Table.
(d) The lump sum value of the Escalating Annuity Benefit described in (b) or
(c) above shall be the Actuarial Equivalent of such Escalating Annuity
Benefit and any other form of annuity benefit shall be the Actuarial
Equivalent of the lump sum so determined."
-24-
ARTICLE 5
VESTING
5.01 Vesting Schedule.
(a) Normal Retirement Benefit. Upon termination of Service prior to Normal
Retirement Date, the interest of a Participant in his Normal Retirement Benefit
shall be vested in accordance with the following schedule based on the number of
Vesting Years of Service of the Participant on the date of termination of
employment:
IF VESTING YEARS OF THE PARTICIPANT'S
SERVICE AS OF THE DATE NONFORFEITABLE
OF TERMINATION EQUAL: PERCENTAGE IS:
4 or less 0%
5 or more 100%
(b) Cash Balance Account. Upon termination of Service prior to attaining his
Normal Retirement Age, the interest of a Participant who commences employment
with the Company or a member of the Controlled Group prior to June 1, 1997 in
his Escalating Annuity Benefit shall be vested in accordance with the following
schedule based on the number of Vesting Years of Service of the Participant on
the date of his termination of Service:
IF VESTING YEARS OF THE
SERVICE AS OF THE PARTICIPANT'S
DATE NONFORFEITABLE
OF TERMINATION PERCENTAGE IS:
EQUAL:
1 20%
2 40%
3 60%
4 80%
5 100%
The interest of a Participant who commences employment with the Company or a
member of the Controlled Group on or after June 1, 1997 shall be vested in
accordance with the following schedule based on the number of Vesting Years of
Service of the Participant on the date of his termination of Service:
-25-
IF VESTING YEARS OF THE
SERVICE AS OF THE PARTICIPANT'S
DATE NONFORFEITABLE
OF TERMINATION PERCENTAGE IS:
EQUAL:
4 or less 0%
5 or more 100%
5.02 Break in Service. There are no Breaks in Service under the terms of this
Plan.
5.03 Forfeitures.
(a) In the case of a termination of a Participant's employ ment for any
reason, if as of the date of such termination the Participant was not fully
vested in his retirement benefit, the Participant may elect, subject to the
limitations of Articles 4, 6 and 7 of the Plan, to receive a distribution of the
entire vested portion of such retirement benefit and the nonvested portion will
be treated as a forfeiture.
(b) If a Participant received a distribution from the Plan and subsequently
resumes covered employment under the Plan, the following shall apply:
(i) The Participant's Vesting Years of Service shall be
restored.
(ii) Repayment of any distribution from the Plan shall not be
permitted.
(iii) If the Participant had less than five Vesting Years of
Service at the time of his termination, his Years of
Credited Service shall also be restored, and the for
feited portion of his Company-derived retirement benefit,
determined as of the time of his termination, shall be
restored to him without interest from the time of the
distribution to the date the Participant resumes covered
employment.
(iv) If the Participant had five or more Vesting Years of Service
at the time of his termination, and did not receive a
distribution from the Plan, or received a distribution
representing less than his entire Company-derived retirement
benefit, all of his Years of Credited Service shall be
restored.
-26-
(v) If the Participant had five or more Vesting Years of Service
at the time of his termination, and received a single sum
representing all of his retirement benefit, his Years of
Credited Service shall not be restored to him.
(vi) Upon subsequent retirement or termination of employment, the
Participant's retirement benefit shall be reduced by the
Actuarial Equivalent value of any benefit previously
distributed to him."
(c) If the present value of a Participant's vested retirement benefit
derived from Company and Participant contributions exceeds (or at the time of
any prior distribution exceeds) $5,000, and the retirement benefit is
immediately distributable, the Participant and the Participant's Spouse (or
where either the Participant or the Spouse has died, the survivor) must consent
to any distribution of such retirement benefit. The consent of the Participant
and the Participant's Spouse shall be obtained in writing within the ninety (90)
day period ending on the Annuity Starting Date. The Plan Administrator shall
notify the Participant and the Participant's Spouse of the right to defer any
distribution until the Partici pant's retirement benefit is no longer
immediately distributable. Such notification shall include a general description
of the material features, and an explanation of the relative values of, the
optional forms of benefit available under the Plan in a manner that would
satisfy the notice requirements of Section 417(a)(3) of the Code, and shall be
provided no less than thirty (30) days and no more than ninety (90) days prior
to the Annuity Starting Date.
Notwithstanding the foregoing, only the Participant need consent to the
commencement of a distribution in the form of a Qualified Joint and Survivor
Annuity while the retirement benefit is immediately distributable. Neither the
consent of the Partici pant nor the Participant's Spouse shall be required to
the extent that a distribution is required to satisfy Section 401(a)(9) or
Section 415 of the Code.
A retirement benefit is immediately distributable if any part of the
retirement benefit could be distributed to the Participant (or surviving Spouse)
before the Participant attains (or would have attained if not deceased) the
Normal Retirement Age.
-27-
5.04 Prior Vesting Schedule.
(a) Notwithstanding the vesting schedule hereinabove, the vested percentage
of a Participant's retirement benefit shall not be less than the vested
percentage attained as of the Effective Date.
(b) A Participant with at least three (3) Years of Service as of the
Effective Date may elect to have his nonforfeitable percentage computed under
the Prior Plan. Notwithstanding the foregoing, for Plan Years beginning before
December 31, 1988, or with respect to Participants who fail to complete at least
one Hour of Service in a Plan Year beginning after December 31, 1988, five (5)
shall be substituted for three (3) in the preceding sentence. If a Participant
fails to make such election, then such Participant shall be subject to the new
vesting schedule. The Participant's election period shall commence on the
Effective Date of the amendment and shall end sixty (60) days after the latest
of:
(i) the adoption date of the amendment,
(ii) the effective date of the amendment, or
(iii) the date the Participant receives written notice of the
amendment from the Company or Plan Administrator.
Except, however, any Employee who was a Participant as of the Effective
Date of this restatement and who completed three (3) Years of Service shall be
subject to the pre-amendment vesting schedule provided such schedule is more
liberal than the new vesting schedule. Notwithstanding the foregoing, for Plan
Years beginning before December 31, 1988, or with respect to Employees who fail
to complete at least one Hour of Service in a Plan Year beginning after December
31, 1988, five (5) shall be substituted for three (3) in the preceding sentence.
This election hereinabove shall also be applicable when a Top-Heavy Plan
reverts to non Top-Heavy status.
-28-
ARTICLE 6
AMOUNT AND COMMENCEMENT OF RETIREMENT BENEFIT
6.01 Normal Retirement. In addition to his Escalating Annuity Benefit under
Article 4 of this Plan, a Participant who retires on his Normal Retirement Date
shall be entitled to his Normal Retirement Benefit. The Participant shall be
entitled to receive a Normal Retirement Benefit, the Actuarial Equivalent of
which is equal to the sum of (a) and (b) below:
(a) Service Before September 1, 1994.
(i) Prior to January 1, 1997, for Participants in covered employment
on or after September 1, 1994 a Participant's accrued benefit
under the Prior Plan as of August 31, 1994 multiplied by the
factor below:
(A) The numerator shall be the greater of the Participant's
Average Compensation as of August 31, 1994 or the
Participant's Average Compensation at retirement.
(B) The denominator shall be the Participant's Average
Compensation as of August 31, 1994 except that with respect
to an employee with a frozen Section 401(a)(17) benefit, the
plan shall operate by adjusting the frozen Decem ber 31,
1993 accrued benefit and the frozen accrued benefit for the
period from January 1, 1994 to August 31, 1994 by using in
the denominator, the Participant's Average Final
Compensation as of December 31, 1993 and August 31, 1994
respectively, in each case, as limited by Section
401(a)(17).
If a Participant elects pursuant to Section 6.07(c) of the Plan
to receive a distribu tion of his employee contributions to the
Plan, the accrued benefit under the Prior Plan as of August 31,
1994, as adjusted above, shall be reduced by the Actuarial
Equivalent of the amount actually distributed to the Participant.
-29-
(ii) For all Participants in covered employment on January 1, 1997, a
Participant's accrued benefit under the Prior Plan, as of August
31, 1994, with the portion of the accrued benefit attributable to
employer contributions under the Prior Plan multi plied by the
factor described in Section 6.01(a)(i)(A) and (B).
If a Participant does not elect to receive a dis tribution of his
employee contributions prior to his Annuity Starting Date, the
Participant's ac crued benefit under the Prior Plan shall be in
creased by the Actuarial Equivalent value of the Participant's
contributions."
In no event will the accrued benefit, indexed after December 31,
1996 in accordance with the method described herein increased by
the Actuarial Equiva lent value of the Participant's
contributions, be less than the Participant's accrued benefit, in
dexed in accordance with the provisions of this Section prior to
January 1, 1997."
(b) Service After August 31, 1994. One and one-half (1 1/2%) percent of Average
Compensation in excess of Covered Compensation multiplied by the Participant's
total number of Years of Credited Service (up to a maximum of 35 years) plus one
percent of Average Compensation up to Covered Compensation multiplied by the
Partici pant's total number of Years of Credited Service (up to a maximum of 35
years).
6.02 Minimum Retirement Benefit.
(a) A minimum retirement benefit equal to the greater of (i) or (ii) below shall
be provided for "contributing participants" as such term is defined under the
Prior Plan, who attained age fifty-five (55) with sixty (60) months of
contributory Service ending on August 31, 1994:
(i) the Normal Retirement Benefit under the Plan; or
-30-
(ii) the Participant's Prior Plan benefit calculated
pursuant to Section 6.15.
(b) Notwithstanding any provision of the Plan to the contrary, the annual normal
retirement benefit of a Participant who is affected by the imposition of the
$150,000 limitation on Compensa tion provided in Section 1.11 shall be equal to
the greater of (i) the Participant's retirement benefit calculated under the
provi sions of the Plan as determined with regard to such imposition or (ii) a
retirement benefit equal to the Participant's accrued benefit determined as of
December 31, 1993, plus the Participant's accrued benefit based solely on
service after such date under the provisions of the Plan as determined with
regard to such imposi tion. For purposes of the Plan, the accrued benefit
determined as of December 31, 1993 shall be equal to the greater of (iii) the
Participant's accrued benefit determined as of December 31, 1993, as determined
with regard to the $200,000 limitation on Compensa tion provided in Section
1.11, or (iv) the Participant's accrued benefit determined as of December 31,
1988, plus the Participant's accrued benefit based solely on service after such
date under the provisions of the Plan as determined with regard to such limita
tion."
6.03 Early Retirement. If a Participant's Service terminates on or after the
Participant's Early Retirement Date, the Participant shall be entitled to
receive his Normal Retirement Benefit determined as of the date on which the
Participant terminated Service; provided, however, that in no event shall the
Normal Retirement Benefit of any Participant who continues to perform Service
after the Early Retirement Date be reduced as a result of such continued
Service. Should the Participant elect to receive his Normal Retirement Benefit
prior to the Normal Retirement Age, the Participant shall be entitled to a
retirement benefit that is equal to his Normal Retirement Benefit multiplied by
the applicable Early Retirement Factor below. The Normal Retirement Benefit
shall be payable in one of the forms provided in Article 7 of the Plan and shall
commence on the first day of the month following the date on which the
Participant terminates Service.
Early Retirement Factors (Schedule A):
Age Factor Age Factor
64 98% 59 87%
63 96% 58 84%
62 94% 57 81%
61 92% 56 78%
60 90% 55 75%
-31-
If the sum of a Participant's Age and Years of Credited Service exceed
eighty (80), then one (1%) percent multiplied by the said sum in excess of
eighty (80) shall be added to the applicable Early Retirement Factor. The Early
Retirement Factor, as adjusted, shall not exceed one hundred (100%) percent.
6.04 Deferred Retirement. If a Participant should continue Service beyond his
Normal Retirement Age, the Participant shall continue his accrual of benefits in
accordance with Section 6.01 of the Plan.
6.05 Disability Retirement.
(a) If, prior to his Normal Retirement Date or other termination of
employment with the Company, a Participant who shall have completed at least
five (5) Years of Credited Service retires by reason of becoming totally and
permanently disabled in a manner which would qualify him to receive disability
benefits under the Social Security Act ("Disability Retirement"), he shall have
a right to his Normal Retirement Benefit as of his Disability Retirement Date.
(b) Disability Retirement Benefit payments to a Participant shall commence
on the first to occur of (i) his Normal Retirement Date; (ii) the first day of
the month following the date payment of the disability benefits under the
Company's Long Term Disability Plan are terminated; or (iii) such other earlier
date as shall be determined by the Committee.
(c) If the Participant is married on the date his Disability Retirement
Benefit Commences, his benefits shall be paid in the form of a Joint and
Survivor Annuity unless the necessary election and consent were made for an
alternative form of benefit payment under the Plan.
(d) The Committee may require that a Participant receiving a Disability
Retirement Benefit periodically submit proof of his continued disability.
(e) A Participant who elects Disability Retirement shall continue to
receive credit for Years of Credited Service and Vesting Years of Service until
his Normal Retirement Date and shall be deemed to receive Compensation in each
such year in an amount equal to his Compensation on the date on which payment of
his Long Term Disability benefits commenced.
-32-
6.06 Termination of Service After August 31, 1994. A Participant who separates
from Service shall be entitled to receive a distribu tion equal to the Actuarial
Equivalent of his Normal Retirement Benefit. In the event of such an election,
the vested retirement benefit shall commence as soon as administratively
practicable following the Participant's separation from Service. The vested
retirement benefit shall be payable in one of the forms provided in Article 7 of
the Plan.
6.07 Employee Contributions.
(a) Effective September 1, 1994, no contribution shall be required of any
Participant as a condition of his participation in the Plan. The provisions of
the Prior Plan shall govern mandated employee contributions required before
September 1, 1994.
(b) For periods on or after January 1, 1988, interest on the employee
contributions shall be calculated pursuant to Section 411(c)(2)(C)(iii) of the
Code. For the period from January 1, 1976 to January 1, 1988, interest shall be
equal to 5%. Prior to January 1, 1976, interest shall be equal to the rate in
effect under the terms of the Prior Plan.
(c) A Participant may request a distribution of his employee contributions
plus accrued interest thereon at any time, in writing, on a form or forms
prescribed by the Committee. Such distribution shall be in a lump sum cash
payment equal to the aggregate of his employee contributions plus accrued
interest thereon. The distribution shall reduce the Participant's retire ment
benefit under Section 6.01(a)(i) by the Actuarial Equivalent of the amount
distributed.
(d) If a Participant is employed on or after January 1, 1997, employee
contributions that have not been returned to the Participant as of his Annuity
Starting Date shall be converted into an additional benefit of Actuarial
Equivalent value in the application of Section 6.01(a)(ii) in the form of
benefit selected by the Participant in accordance with Section 7.02.
-33-
6.08 Leave of Absence.
(a) If a Participant is on an approved Leave of Absence, the Participant's
retirement benefit shall be equal to the Partici pant's retirement benefit
determined as of the beginning of such Leave of Absence. If the Participant
returns to Service immediate ly following such approved Leave of Absence, the
Participant's retirement benefit will be determined by including the period
during such Leave of Absence in the Participant's Years of Service.
(b) The provisions of this Section 6.08, including the conditions for
granting a Leave of Absence, shall be applied on a uniform and nondiscriminatory
basis for Participants under all qualified plans maintained by the Company.
6.09 Deferred Commencement of Benefits.
(a) Subject to Section 7.03 of the Plan, a Participant may elect, in the
form and manner prescribed by the Committee, to defer payment of his vested
Normal Retirement Benefit to a date specified by the Participant.
(b) If payment of the Participant's vested Normal Retire- ment Benefit
commences after the Participant's Normal Retirement Date, the Participant shall
be entitled to a retirement benefit that is equal to his Normal Retirement
Benefit multiplied by the applicable Deferred Retirement Factor below.
Deferred Retirement Factors:
Age Factor Age Factor
66 1.1049 71 1.9071
67 1.2244 72 2.1505
68 1.3608 73 2.4355
69 1.5175 74 2.7710
70 1.6980 75 3.1687
6.10 Deductions for Disability Benefits. In determining benefits payable to any
Participant, a deduction shall be made equivalent to all or any part of the
following benefits payable to such pensioner by reason of any law of the United
States, or any political subdivision thereof, which has been or shall be
enacted, provided that such deduction shall be to the extent that such benefits
have been provided by premiums, taxes or other payments paid by or at
the expense of the Company:
-34-
(a) Disability benefits, other than a Primary Insurance Amount payable
under the Federal Social Security Act as now in effect or as hereafter amended.
(b) Workers' Compensation (including hearing, pulmonary, ocular, and other
occupational diseases and accident claims but excluding statutory payments for
loss of any physical or bodily members such as leg, arm or finger) for Workers'
Compensation awards granted subsequent to March 1, 1978, for Wood-Ridge and
Nuclear facilities; January 9, 1978 for Curtiss-Wright Flight Systems, Inc.; May
5, 1978 for Target Rock Corp.; July 28, 1987 for Buffalo facility; and March 1,
1978 for the Corporate Office.
6.11 Mandatory Commencement of Benefits. Unless a Participant elects otherwise,
payment of the Participant's vested retirement benefit must commence not later
than the sixtieth (60th) day after the close of the Plan Year in which occurs
the latest of:
(a) the Participant attains the earlier of age sixty- five (65) and the
Normal Retirement Age,
(b) the date the Participant's Service terminates or
(c) the tenth (10th) anniversary of the year in which the Participant
commenced Plan participation.
6.12 Maximum Retirement Benefit.
(a) The retirement benefit payable from the Plan, together with the Annual
Benefits payable to a Participant under all other plans of the Controlled Group
that are defined benefit plans under Section 414(j) of the Code, shall not in
any Limitation Year exceed the lesser of either (i) or (ii) hereinbelow:
(i) Defined Benefit Dollar Limitation: $90,000. Effective on January
1, 1988, and each January thereafter, the $90,000 limitation above will be
automatically adjusted by multiplying such limit by the cost-of-living
adjustment factor prescribed by the Secretary of the Treasury under Section
415(d) of the Code in such manner as the Secretary shall prescribe. The new
limitation will apply to Limitation Years ending within the calendar year of the
date of the adjustment.
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(ii) One hundred (100%) percent of the average Compensa tion of a
Participant for the three (3) consecutive calendar years for which such average
is highest.
The limitation in this paragraph is deemed satisfied if the Annual Benefit
payable to a Participant is not more than $1,000 multiplied by the Participant's
number of Years of Service or parts thereof (not to exceed ten (10)) with the
Company, and the Company has not at any time maintained a defined contribution
plan, a welfare benefit plan as defined in Section 419(e) of the Code, or an
individual medical account as defined in Section 415(l)(2) of the Code in which
such Participant participated.
(b) Annual Benefit shall mean a retirement benefit under the Plan which is
payable annually in the form of a straight Life Annuity. Except as provided
below, a benefit payable in a form other than a straight Life Annuity must be
adjusted to an actuar ially equivalent straight Life Annuity before applying the
limitations of this Article. The interest rate used under this subparagraph (b)
will be five (5%) percent. The Annual Benefit does not include any benefits
attributable to voluntary contribu tions, rollover contributions, or the assets
transferred from a qualified plan that was not maintained by the Company. No
actuarial adjustment to the benefit is required for:
(i) the value of a Qualified Joint and Survivor Annuity,
(ii) the value of benefits that are not directly related to retirement
benefits (such as the qualified disability benefit, pre-retirement death
benefits, and post-retirement medical benefits), and
(iii) the value of post-retirement cost-of-living increases made
in accordance with Section 415(d) of the Code and Section 1.415-3(c)(2)(iii) of
the Treasury Regulations.
Projected Annual Benefit means the Annual Benefit to which a Participant
would be entitled under the terms of the Plan assuming:
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(i) the Participant will continue employment until Normal Retirement
Age under the Plan (or current age, if later), and
(ii) the Participant's Compensation for the current Limitation Year
and all other relevant factors used to determine benefits under the Plan will
remain constant for all future Limitation Years.
(c) Compensation shall mean, for purposes of this Section, wages, salaries,
and fees for professional services, and other amounts received (without regard
to whether or not an amount is paid in cash) for personal services actually
rendered in the course of employment with the Company maintaining the Plan
(including, but not limited to, commissions paid salesmen, compensation for
services on the basis of a percentage of profits, commissions on insurance
premiums, tips, bonuses, fringe benefits, reimbursements and expense
allowances), and excluding the following:
(i) Company contributions to a plan of deferred compensation which are
not included in the Employee's gross income for the taxable year in which
contributed, or Company contributions under a simplified employee pension plan
to the extent such contributions are deductible by the Employee, or any
distributions from a plan of deferred compensation;
(ii) Amounts realized from the exercise of a non qualified stock
option, or when restricted stock (or property) held by the Employee either
becomes freely transferable or is no longer subject to a substantial risk of
forfeiture;
(iii) Amounts realized from the sale, exchange or other disposition of
stock acquired under a qualified stock option; and
(iv) Other amounts which receive special tax benefits, or
contributions made by the Company (whether or not under a salary reduction
agreement) towards the purchase of an annuity described in Section 403(b) of the
Code (whether or not the amounts are actually excludable from the gross income
of the Employee).
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For any self-employed individual, compensation will mean earned income.
For Limitation Years beginning after December 31, 1991 for purposes of
applying the limitations of this Article 6, compensa tion for a Limitation Year
is the compensation actually paid or includable in gross income during such
Limitation Year.
(d) If the Participant has less than ten (10) Years of Credited Service
with the Company, the Defined Benefit Dollar Limitation is reduced by one-tenth
(1/10) for each year of participation (or part thereof) less than ten (10). To
the extent provided in regulations or in other guidance issued by the Internal
Revenue Service, the preceding sentence shall be applied separately with respect
to each change in the benefit structure of the Plan.
If the Participant has less than ten (10) Years of Service with the
Company, the Compensation limitation is reduced by one-tenth (1/10th) for each
Year of Service (or part thereof) less than ten (10). The adjustments of this
Section (d) shall be applied in the denominator of the defined benefit fraction
based upon Years of Service. Years of Service shall include future years
occurring before the Participant's Normal Retirement Age. Such future years
shall include the year which contains the date the Participant reaches Normal
Retirement Age, only if it can be reasonably anticipated that the Participant
will receive a Year of Service for such year.
(e) If the Annual Benefit of the Participant commences before the
Participant's social security retirement age, but on or after age sixty-two
(62), the Defined Benefit Dollar Limitation shall be determined as follows:
(i) If a Participant's social security retirement age is sixty-five
(65), the dollar limitation for benefits commencing on or after age sixty-two
(62) is determined by reducing the Defined Benefit Dollar Limitation by
five-ninths (5/9) of one (1%) percent for each month by which benefits commence
before the month in which the Participant attains age sixty-five (65).
(ii) If a Participant's social security retirement age is greater than
sixty-five (65), the dollar limitation for benefits commencing on or after age
sixty-two (62) is determined by reducing the Defined Benefit Dollar Limitation
by five-ninths (5/9) of one (1%) percent for each of the first thirty-six (36)
months and five-twelfths (5/12) of one (1%) percent for each of the additional
months (up to twenty-four (24) months) by which benefits commence before the
month of the Participant's social security retirement age.
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(f) If the Annual Benefit of a Participant commences prior to age sixty-two
(62), the Defined Benefit Dollar Limitation shall be the actuarial equivalent of
an annual benefit beginning at age sixty-two (62), as determined in Section (e)
above, reduced for each month by which benefits commence before the month in
which the Participant attains age sixty-two (62). The interest rate used under
this subparagraph (f) will be five (5%) percent. The mortality table used under
this subparagraph (f) will be the GAM 83 Male and Female Blended 80% Male and
20% Female. Any decrease in the Defined Benefit Dollar Limitation determined in
accordance with this Section (f) shall not reflect the mortality decrement to
the extent that benefits will not be forfeited upon the death of the
Participant. The actuarial equivalent value in this subparagraph (f) shall be
based on the Plan's early retirement reduction factors, or if less, an interest
rate of five percent (5%).
(g) If the Annual Benefit of a Participant commences after the
Participant's social security retirement age, the Defined Benefit Dollar
Limitation shall be increased so that it is the actuarial equivalent of an
annual benefit of such dollar limitation beginning at the Participant's social
security retirement age. The interest rate used under this subparagraph (g) will
be five (5%) percent.
(h) If the benefit limitations of this Section 6.12 are exceeded in any
Plan Year solely because the Plan is aggregated with one or more other defined
benefit plans of any member of the Controlled Group, the amount of any benefit
that would otherwise be accrued under such other plans shall be reduced so that
(to the extent possible) such limitations are not exceeded before any adjustment
is required under this Plan.
(i) In the case of an individual who was a Participant in one or more
defined benefit plans of the Company and/or any other member of the Controlled
Group on or before January 1, 1983, the maximum benefit for such Participant
under this Section 6.12 shall not be less than the current accrued benefit under
such plan or plans at the close of the last Limitation Year beginning before
January 1, 1983 if such plan or plans met the requirements of Section 415 of the
Code, as in effect on July 1, 1982, for all years.
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(j) In the case of an individual who was a Participant in one or more
defined benefit plans of the Company and/or any other member of the Controlled
Group on or before January 1, 1987, the maximum benefit for such Participant
under this Section 6.12 shall not be less than the current accrued benefit under
such plan or plans at the close of the last Limitation Year beginning before
January 1, 1987 if such plan or plans met the requirements of Section 415 of the
Code, as in effect on May 6, 1986, for all years.
(k) If a Participant also participates, or previously participated, in one
or more defined contribution plans (as defined in Section 414(i) of the Code),
or a welfare benefit fund, as defined in Section 419(e) of the Code maintained
by any member of the Controlled Group, or an individual medical account, as
defined in Section 415(l)(2) of the Code, which provides an annual addition as
defined in Code Section 415(c), the sum of the following fractions shall not
exceed 1.0 as of the end of any Limitation Year.
(i) Defined Contribution Fraction: A fraction, the numerator of which is
the sum of the annual additions to the Participant's account under all the
defined contribution plans (whether or not terminated) maintained by the Company
for the current and all prior Limitation Years (including the annual additions
attributable to the Participant's voluntary contributions to this and all other
defined benefit plans (whether or not terminated) maintained by the Company, and
the annual additions attributable to all welfare benefit funds, as defined in
Section 419(e) of the Code, or individual medical accounts, as defined in
Section 415(l)(2) of the Code, maintained by the Company, and the denominator of
which is the sum of the maximum aggregate amounts for the current and all prior
Limitation Years of Service with the Company (regardless of whether a defined
contribution plan was maintained by the Company).
The maximum aggregate amount in any Limitation Year is the lesser of one
hundred twenty-five (125%) percent of the dollar limitation determined under
Sections 415(b) and (d) of the Code in effect under Section 415(c)(1)(A) of the
Code or thirty-five (35%) percent of the Participant's Compensation for such
year.
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If the Employee was a Participant as of the first day of the first
Limitation Year beginning after December 31, 1986, in one or more defined
contribution plans maintained by the Company which were in existence on May 6,
1986, the numerator of this fraction will be adjusted if the sum of this
fraction and the defined benefit fraction would otherwise exceed 1.0 under the
terms of this Plan. Under the adjustment, an amount equal to the product of (1)
the excess of the sum of the fractions over 1.0 times (2) the denominator of
this fraction, will be permanently subtracted from the numerator of this
fraction. The adjustment is calculated using the fractions as they would be
computed as of the end of the last Limitation Year beginning before January 1,
1987, and disregarding any changes in the terms and conditions of the plans made
after May 6, 1986, but using the Section 415 limitation applicable to the first
Limitation Year beginning on or after January 1, 1987.
The annual addition for any Limitation Year beginning before January 1,
1987, shall not be recomputed to treat all voluntary contributions as annual
additions.
(ii) Defined Benefit Fraction: A fraction, the numerator of which is
the sum of the Participant's Projected Annual Benefits under all the defined
benefit plans (whether or not terminated) maintained by the Company, and the
denominator of which is the lesser of one hundred twenty-five (125%) percent of
the dollar limitation determined for the Limitation Year under Sections 415(b)
and (d) of the Code or one hundred forty (140%) percent of the highest average
Compensation, including any adjustments under Section 415(b) of the Code.
Notwithstanding the above, if the Participant was a par ticipant as of the
first Limitation Year beginning after Decem ber 31, 1986, in one or more defined
benefit plans maintained by the Company which were in existence on May 6, 1986,
the denominator of this fraction will not be less than one hundred twenty-five
(125%) percent of the sum of the Annual Benefits under such plans which the
Participant had accrued as of the close of the last Limitation Year beginning
before January 1, 1987, disregarding any changes in the terms and conditions of
the plans after May 5, 1986. The preceding sentence applies only if the defined
benefit plans individually and in the aggregate satisfied the requirements of
Section 415 of the Code for all Limitation Years beginning before January 1,
1987.
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(l) The Committee may elect to compute the Defined Contribution Fraction
for all Participants for all Limitation Years ending before January 1, 1983 by
using the "transition fraction" (as defined in Section 415(e) of the Code). In
the event the limitation imposed by paragraph (a) of this Section is exceeded as
of the last day of the last Limitation Year beginning before January 1, 1983,
with respect to a Participant, but the limitation imposed by such paragraph (a)
was not exceeded with respect to the Participant in any prior Limitation Years,
then the numerator of the Participant's Defined Contribution Fraction shall be
reduced in accordance with Treasury Regulations as necessary so that the sum of
the Defined Benefit Fraction and the Defined Contribution Fraction does not
exceed 1.0 as of the end of such Limitation Year.
(m) The "125%" applied in paragraph (k)(i) of this Section 6.12 shall be
reduced to "100%" for any Limitation Year in which either:
(i) the Plan is included in an "Aggregation Group" (as defined in Section
14.02) which is "Top Heavy" (as defined in Section 14.02) and the Plan or any
other plan within such "Aggre gation Group" fails to provide the minimum benefit
prescribed by Section 416(h) of the Code and the regulations thereunder;
or
(ii) the Plan is included in an "Aggregation Group" which is
"Top Heavy" if "90%" were substituted for "60%" in Section 14.02 of the Plan.
(n) If the limitations of this Section 6.12 are exceeded in any Limitation
Year because the aggregation of the Plan with one or more defined contribution
plans produces a fraction that exceeds 1.0, the retirement benefit to which the
Participant would otherwise be entitled under the Plan shall be reduced so that
such fraction does not exceed 1.0.
(o) If the Participant's benefit is payable as a joint and survivor annuity
with his spouse as the Beneficiary, the modifica tion of the benefit for that
form of payment shall be made before the application of the maximum limitation,
and as so modified, shall be subject to the limitation.
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(p) If the Participant's benefit is payable in a form that is neither a
life annuity for the life of the Participant nor in the form described in
subparagraph (o) above, the maximum benefit payable in subparagraph (a) above
shall be the Actuarial Equivalent to the maximum benefit payable as a life
annuity, such Actuarial Equivalent to be calculated using the Plan's factors for
computing optional benefits, or if less, using an interest rate of five percent
(5%).
6.13 Applicable Employer. For purposes of this Article 6, Employer shall mean
the Employer that sponsors this Plan, and all members of a controlled group of
corporations (as defined in Code Section 414(b) as modified by Code Section
415(h)), all commonly controlled trades or business (as defined in Code Section
414(c) as modified by Code Section 415(h) of the Code), or Affiliated Service
Groups (as defined in Code Section 414(m) of the Code) of which the sponsoring
Employer is a part, and any other entity required to be aggregated with the
Company pursuant to regulations under Section 414(o) of the Code.
6.14 Incorporation by Reference. Notwithstanding anything hereinabove to the
contrary, the limitations, adjustments and other requirements prescribed in this
Article shall at all times comply with the provisions of Section 415 of the Code
and the regulations thereunder, the terms of which are specifically incorporated
herein by reference.
6.15 Prior Plan Benefit For Vested Employees Terminated Prior To September 1,
1994 And Current Employees Who Attained Age Fifty-Five (55) With Sixty (60)
Continuous Months Of Contributory Active Service Ending On August 31, 1994.
(a) Normal Retirement Benefit. A Participant who retires on his Normal
Retirement Date shall be entitled to his Normal Retirement Benefit calculated as
of the date he retires. The Normal Retirement Benefit of a Participant shall be
an annual annuity benefit (payable monthly) equal to the sum of the follow ing:
(i) A Past Service Benefit if he shall have become an active
Participant as of May 1, 1953, shall have been a continuous Participant (whether
active or suspended) during the period of his employment on and after May 1,
1953, and shall have made contribu tions while an active Participant during such
period;
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(ii) A Future Service Benefit if he shall have made contributions
while an active Participant;
(iii) A Supplemental Benefit if he shall have made contributions while
an active Participant;
(iv) A Pension Equivalent Benefit; and
(v) Minus the value of contributions that the Participant would have
made from September 1, 1994, if permitted, to the Participant's retirement date.
(A) The "Past Service Benefit" of a Participant eligible therefor
shall be equal to three-quarters percent (3/4%) of his annual earnings on May 1,
1953, multiplied by the number of his Years of Credited Service prior to May 1,
1953.
(B) The "Future Service Benefit" of a Participant eligible
therefor shall be one percent (1%) of his annual earnings for each year of
active participation during which he shall have made contributions under the
Plan.
(C) The "Supplemental Benefit" of a Participant eligible therefor
shall be the benefit calculated under either subparagraph (1) or (2) below,
whichever shall be applicable:
(1) If the Participant shall have been a continuous
Participant (whether active or suspended) for the period from his eligibility
date to his Normal Retirement Date and shall have made contributions at all
times while an active Participant during such period, two percent (2%) of his
final average earnings in excess of $3,600 as determined below, multiplied by
the sum of his Years (not in excess of fifteen (15) years) of Credited Service.
For purposes of the preceding sentence, "final average annual earnings in excess
of $3,600" means (A) for an Employee with five (5) or more years of active
participation, the average of the excess of his annual earnings over $3,600 for
the five (5) con secutive years of his active participation during his final
years of active participation, but not in excess of ten (10), which produce the
highest such average, or (B) for an Employee with less than five (5) years of
active participation, the average of his annual earnings in excess of $3,600
actually paid to him for the period of his service, not in excess of five (5)
years, ending with his last year of active participation.
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(2) If the Participant shall not have been a continuous
Participant (whether active or suspended) for the period from his eligibility
date to his Normal Retirement Date, or shall not have made contributions at all
times while an active Partici pant during such period, an amount calculated
under subparagraph (1) above, as if the Participant had, in fact, been a
continuous Participant for such period and made contributions at all times while
an active Participant therein, multiplied by a fraction, the numerator of which
shall be the sum of his Years of Credited Service (not limited to fifteen (15)
years) on the basis of which the Participant shall actually accrue a Past and/or
Future Service Benefit under the Plan, and the denominator of which shall be the
sum of his Years of Service (whether or not regarded as Credited Service for
purposes of the Plan and not limited to fifteen (15) years) on the basis of
which the Participant would have been entitled to accrue a Past and/or Future
Service Benefit under the Plan if he had, in fact, been a continuous Participant
for such period and made contributions while an active Participant therein.
(D) The "Pension Equivalent Benefit" of a Partic ipant eligible
therefor shall be the monthly pension benefit in accordance with Schedule B
attached hereto; provided, however, that the portion, if any, of such Pension
Equivalent Benefit which shall have been based upon Years of Credited Service
for which the Participant also is entitled to Past and/or Future Service
Benefits under this Section 6.15 shall be reduced by the amount of such Past
and/or Future Service Benefits.
(b) Death Benefit. In the event an inactive Participant shall die
before retirement, a death benefit shall be payable to his beneficiary equal to
the aggregate of his contributions plus interest and any applicable annuity.
(c) Severance of Employment Benefit.
(i) After Vesting Date. If the employment of a Par ticipant who
has made contributions while an active Participant shall be severed after he
shall have completed five (5) Years of Credited Service, and before he has
reached his Early Retirement Date, he shall be entitled to a Severance of
Employment Benefit which shall be an annual annuity benefit commencing as of the
first of the month next following his sixty-fifth (65th) birthday, which shall
be equal to his Normal Retirement Benefit based upon his Years of Credited
Service and years of active participation on the date of his severance of
employment. (In the calculation of the Supplemental Benefit of a Participant who
severs his employment under this subparagraph (c)(i), the denominator of the
fraction referred to in subparagraph (a)(iv)(C)(2) of this Section 6.15 shall
include Years of Service the Participant would have had at his Normal Retirement
Date if he had remained in the employ of the Company until such date.) Such
Participant may elect (by filing a written request therefor with the Committee
on such form and on such terms and conditions as the Committee may prescribe) to
receive an annual annuity benefit commencing as of the first of any month
following his fifty-fifth (55th) birthday, in which event such annual annuity
benefit shall be the actuarial equivalent benefit calculated under the preceding
sentences of this subpara graph (c)(i) in accordance with Schedule C attached
hereto. The first payment of a benefit under this subparagraph (i) will commence
the first of the month next following receipt by the Committee of all completed
necessary forms and documentation. On or after January 1, 1976, one (1) Year of
Service toward eligibili ty for a vested benefit will be credited for any
Participant who works at least one thousand (1,000) hours in any calendar year.
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In lieu of the foregoing annuity benefits, the Partici pant may
elect (by filing a written request therefor with the Committee on such form and
on such terms and conditions as the Committee may prescribe), at any time after
the date of his severance of employment and prior to the commencement of said
annuity benefit, to receive in a lump sum cash payment the aggregate of his
contributions plus interest and a deferred pension benefit equal to the benefit
as provided in Schedule D attached hereto paid for solely through Company
Contributions.
(ii) Prior to Vesting Date. If the employment of a Participant
who has made contributions while an active Participant shall be severed prior to
satisfying the applicable age and service conditions prescribed in subparagraph
(i) of this paragraph (d), he shall be entitled, without request therefor, to a
Severance of Employment Benefit equal to the aggregate of his contributions plus
interest.
(iii) Deferred Pension Benefit. If the employment of an active
Participant was severed after his vested Retirement Benefit Date but prior to
September 1, 1994, and he is not entitled to a Normal, Early or Disability
Retirement Benefit, he shall be entitled to a Deferred Benefit under this Plan
in accordance with Schedule D attached hereto.
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(d) Optional Survivor Benefit. The Participant's fifty- five percent
(55%) optional survivor benefit and/or contingent annuitant benefit shall be
reduced by a percentage as set forth below for each full month or fraction
thereof in effect for such Participant.
The appropriate percentages are:
For Coverage While The
Participant's Age Is Monthly Percentage
under 35 .01%
35 - 45 .02%
45 - 54 and 11 months .04%
(e) Optional Annuity Benefits for Deferred Vested Participant. A
Participant may elect (by filing a written request therefor with the Committee
on such form and on such terms and conditions as the Committee may prescribe).
For an Employee receiving a benefit with a survivor benefit
adjustment, the reduced amount of his monthly benefit shall be equal to an
amount determined by multiplying the monthly benefit otherwise payable to the
Employee by ninety percent (90%) if the Employee's age and his designated
Spouse's age are the same; or, if such ages are not the same, such percentage
shall be increased by one-half of one percent (1/2%), up to a maximum of one
hundred percent (100%) for each year that the designated spouse's age exceeds
the Employee's age and shall be decreased by one-half of one percent (1/2%) for
each year that the designated spouse's age is less than the Employee's age, and
his or her surviving spouse will receive fifty-five percent (55%) of such
annuity benefit.
A "Contingent Annuity Option" of seventy-five percent (75%) or one
hundred percent (100%) with respect to the total of the Supplemental Benefit
amount included within his annuity benefit, under which an annuity, on such
terms as the Committee may prescribe, shall be payable for the Participant's
life and continue after his death, in the same or lesser amount, to and for the
life of a selected contingent annuitant; provided, however, that if such
selected contingent annuitant is other than the Participant's spouse or
physically or mentally disabled child, the amount payable under the option shall
be adjusted, if necessary, so that the reduction on account of the option in the
Supplemental Benefit otherwise payable to the Participant does not exceed forty
percent (40%). Such annuity shall be the actuarial equivalent of the aforesaid
Supplemental Benefit amount. Election of a seventy-five (75%) percent or one
hundred percent (100%) option shall ordinarily be made at least one year prior
to the commencement date of the Participant's annuity benefit which includes a
Supplemental Benefit amount in accordance with Schedule E attached hereto;
otherwise, the Committee may require evidence satisfactory to it of the
Participant's good health.
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6.16 Definitions. For purposes of determining a Participant's minimum benefit in
accordance with Section 6.15, the following definitions shall apply.
(a) Credited Service. The term "credited service" shall have the following
meanings:
(i) Service Prior to May 31, 1953. Only Employees who become
contributing active Participants as of May 31, 1953 shall be entitled to
"credited service" under this subparagraph (a) for any periods prior to May 31,
1953. Such "credited service" shall mean completed years and calendar months of
employment prior to May 31, 1953, including the following periods:
(A) the period of employment of an Employee with the Company (or
with a member of the Controlled Group) following his most recent date of hire
preceding May 31, 1953 and prior to his sixty-eighth (68th) birthday;
(B) the period of employment of an Employee with the Company (or
with a member of the Controlled Group) preceding his most recent date of hire
and prior to his sixty-eighth (68th) birthday; provided, however, that the
period of his employment preceding a break in employment (except a break in
employment of any duration during the interval commencing August 1, 1945, and
ending on or before December 31, 1949) of two (2) or more years shall not be
taken into account;
(C) any periods of approved Leave of Absence or military leave
during the period(s) defined in paragraphs (A) and/or (B) above.
-48-
(ii) Service Commencing on or After May 31, 1953. "Credited service"
after May 31, 1953 shall mean completed years and calendar months of employment
commencing on or after May 31, 1953 and shall include the following periods:
(A) the periods of employment of an Employee with the Company (or
with a member of the Controlled Group) while eligible to participate under the
Plan following his most recent date of hire and prior to the earlier of his
retirement;
(B) any periods of leave of absence approved by the Company in
writing, or military leave during the period defined in subparagraphs (i) and
(ii) above.
(iii) Pension Plan Equivalent Service. On and after May 1, 1966,
"credited service" of an Employee eligible to participate in this Plan shall
include Service which would be creditable under the Curtiss-Wright Pension Plan
for any period(s) of his employment not included as Credited Service under
subpara graphs (i) and (ii) above.
(b) Years of Participation. The term "years of participation" shall be
Years of Credited Service while a continu ous Participant; "years of active
participation" shall mean Years of Credited Service while an active Participant,
whether or not interrupted by a period or periods of suspended participation;
and "years of contributory active participation" shall mean Years of Credited
Service while (a) an active Participant prior to May 1, 1966 and (b) a
contributing active Participant after May 1, 1966, whether or not interrupted by
a period or periods of suspended participation.
(c) "Annual Earnings" for periods prior to September 1, 1994 shall mean:
(i) for each calendar month prior to July 1, 1970, one-twelfth
(1/12) of his basic salary (on an annual basis) in effect at the beginning of
each Plan Year; and
(ii) for each calendar month after June 30, 1970, one-twelfth
(1/12) of the sum of his basic salary (on an annual basis) in effect at the
beginning of each Plan Year, plus any cash payments he received in the prior
Plan Year under the Company's incentive compensation plan;
-49-
(d) "Interest" for deferred vested prior to September 1, 1994 means
interest calculated from the first day of the Plan Year next following the
Participant's contribution, compounded annually to the first of any month in
which (a) there shall occur an event under the Plan calling for the distribution
of an amount plus interest or (b) the Participant's retirement, whichever first
occurs. Interest to May 1, 1966 shall be calculated at the rate of two (2%)
percent compounded annually; interest from May 1, 1966 to January 1, 1971 shall
be calculated at the rate of three and one-half (3 1/2%) percent compounded
annually; and interest from Janu ary 1, 1971 to December 31, 1975 shall be
calculated at the rate of four and one-half (4 1/2%) percent compounded
annually. Interest from January 1, 1976 to December 31, 1987 shall be calculated
at the rate of five (5%) percent compounded annually; and interest from January
1, 1988 at one hundred twenty (120%) percent of the Federal mid-term rate as at
the beginning of the Plan Year compounded annually.
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6.17 Supplemental Benefit
(a) Management shall have the authority to cause a benefit, calculated in
accordance with paragraph (b) below, to be paid to any one or more of the
individuals identified in Schedule H. The supplemental benefit shall be in
addition to any benefit payable under the Plan.
(b) The special supplemental benefit under this Section 6.17 shall be as
specified herein for the individuals listed in Schedule H. Such payment shall be
payable either in the form of an annuity described in paragraph (c) below,
payable beginning at normal retirement date, or, at the election of the
participant with spousal consent if necessary, in the form of a lump sum payment
on the first day of any month following the sale of the Corporation's Buffalo
facility and the completion of the applicable forms and waiting period as
specified in Section 7.09. In lieu of lump sum payment as described above, the
Participant may elect to commence his annuity at the same time the lump sum
would have been payable.
(c) The supplemental benefit shall be paid in accordance with Section 7.01
(a) for an unmarried Participant or Section 7.01 (b) for a married Participant,
unless the Participant elects the following optional form of payment: cash lump
sum. In order to derive the life annuity described by Section 7.01(a) the lump
sum listed in Schedule H will be divided by a deferred annuity factor (using the
PBGC interest rate(s) - as described in Section 1.01). Section 7.01(b) annuities
are derived by using the basis stipulated in Section 1.01. Early retirement
annuities are the actuarial equivalent of normal retirement annuities using the
immediate PBGC interest rate and the P 84 (0) mortality table as stated in
Section 1.01.
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ARTICLE 7
FORM OF BENEFIT PAYMENT
7.01 Normal Form of Payment. Unless a Participant has elected pursuant to
Section 7.02 of the Plan that his vested Normal Retirement Benefit be paid in
another form or to a Beneficiary other than his surviving Spouse, a
Participant's vested Normal Retirement Benefit shall be paid in whichever of the
following forms is applicable:
(a) If the Participant does not have a Spouse at the time payment of his
vested Normal Retirement Benefit commences, the vested Normal Retirement Benefit
shall be payable in the form of a Life Annuity.
(b) If the Participant has a Spouse at the time payment of the vested
Normal Retirement Benefit commences, and the Participant terminates Service
after attaining the earlier of his Normal Retirement Age or his Early Retirement
Date, the Partici pant's vested Normal Retirement Benefit shall be payable in
the form of a Qualified Joint and Survivor Annuity which is the Actuarial
Equivalent of the vested Normal Retirement Benefit payable to the Participant as
a Life Annuity.
7.02 Optional Forms of Payment For All Benefits.
(a) In lieu of the form of payment provided in Section 7.01 of the Plan, a
Participant may elect in the manner prescribed by the Committee and during the
election period described in Subsection (c) of this Section 7.02, a form of
benefit payment provided under Section 7.02(b); provided, however, that any
election, made by a Participant who has a Spouse, not to have payment of the
Participant's benefits made in the form of a Qualified Joint and Survivor
Annuity under Subsection of Section 7.01 of the Plan, as applicable, shall not
be effective unless:
(i) The Spouse of the Participant consents in writing to the election;
the election designates a specific Beneficiary, including any class of
beneficiaries or any contingent beneficia ries, which may not be changed without
spousal consent (or the Spouse expressly permits designations by the Participant
without any further spousal consent); and the Spouse's consent acknowledges the
effect of such election and is witnessed by a member of the Committee or a
Notary Public. Additionally, a Participant's waiver of the Qualified Joint and
Survivor Annuity shall not be effective unless the election designates a form of
benefit payment which may not be changed without spousal consent (or the Spouse
expressly permits designations by the Participant without any further spousal
consent).
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(ii) If it is established to the satisfaction of the Committee that
the required consent may not be obtained because there is no Spouse, because the
Spouse cannot be located, or because of such other circumstances as provided in
Treasury regulations under the applicable provisions of the Code, a waiver will
be deemed a qualified election.
Any consent by a Spouse (or establishment that the consent of a Spouse may
not be obtained) under this Section 7.02(a) of the Plan shall be effective only
with respect to such Spouse. At any time during the election period described in
Section 7.02(c) of the Plan, a Participant may, without the consent of the
Participant's Spouse, revoke the election pursuant to this Section 7.02(a) of
the Plan to have payment of the retirement benefit made in a form other than a
Qualified Joint and Survivor Annuity.
(b) In the event an election is validly made and in effect pursuant to
Section 7.02(a) of the Plan not to receive payment of benefits in the normal
form provided in Section 7.01, then the benefit payable to a Participant shall
be the Actuarial Equivalent of the retirement benefit otherwise payable to the
Participant in the form of a Life Annuity. A Participant may, in the form and
manner prescribed by the Committee, elect any one of the following optional
forms of payment:
(i) a Life Annuity payable monthly to the Participant;
(ii) an immediate joint and survivor annuity commencing on or after
the Participant's Early Retirement Date, or date of termination
of employment, if later, under which one hundred percent (100%),
seventy-five percent (75%), sixty-six and two-thirds percent
(66-2/3%) or fifty percent (50%) of the amount payable to the
Participant for his life is continued thereafter for the life of
a contingent annuitant designated by him, for a period not in
excess of the joint life expectancies of the Participant and the
Participant's Benefi ciary;
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(iii) a lump sum payment; or
(iv) one-half (1/2) as a lump sum payment and one-half (1/2) as an
annuity.
A Participant may make separate elections of an optional form of
benefit with respect to the benefit payable under Article 4 and
the benefit payable under Article 6.
(c) Any election not to receive payment of benefits under the Plan in the
normal form provided in Section 7.01 of the Plan shall be made at any time
during the election period in writing. Any such election may be revoked in
writing, and a new election made, at any time during the election period. The
election period shall be the ninety (90) day period ending on the Annuity
Starting Date.
7.03 Limitation on Optional Forms of Payment.
---------------------------------------
(a) Notwithstanding any other Plan provision, payment of the
Participant's entire interest in this Plan:
(i) shall be made to the Participant no later than the
Required Beginning Date (as defined in Section 7.03(b) of the
Plan), or
(ii) shall commence not later than the Required Beginning Date
(as defined in Section 7.03(b) of the Plan) and be distributable (in accordance
with Treasury regulations under Section 401(a)(9) of the Code) over one of the
following periods:
(A) the life of the Participant,
(B) the joint and survivor lives of the Participant
and the Participant's designated Beneficiary,
(C) a period certain not extending beyond the life
expectancy of the Participant, or
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(D) a period certain not extending beyond the joint
and survivor life expectancies of the Participant and the Partici
pant's designated Beneficiary.
For purposes of this Section 7.03, the life expectancy of the
Participant and the Participant's Spouse, if any, may be redetermined (other
than in the case of a life annuity), but no more frequently than annually.
(b) For purposes of this Section, the Required Beginning Date
means the April 1 of the calendar year following the calendar year in which the
Participant attains age seventy and one-half (70 1/2). The Required Beginning
Date shall be the Participant's Annuity Starting Date and the Participant shall
receive a late retirement benefit commencing on or before such required
beginning date in an amount determined as if he had retired on such date. As of
each succeeding December 31 prior to the Participant's actual late retirement
date (and as of his actual late retirement date), the Participant's retirement
benefit shall be recomputed to reflect additional accruals. The Participant's
recomputed retirement benefit shall then be reduced by the Actuarial Equivalent
value of the total payments of his late retirement benefit which were paid prior
to each such recomputation to arrive at the Participant's late retirement
benefit; provided that no such reduction shall reduce the Participant's late
retirement benefit below the amount of late retirement benefit payable to the
Participant prior to the recomputation of such retirement benefit; provided
further that the reduction herein for prior payments shall be computed
separately with respect to the retirement benefit determined under Article 4 and
the retirement benefit determined under Article 6.
(c) Notwithstanding any other Plan provision, all distributions
required under this Article shall be determined and made in accordance with the
Treasury Regulations under Section 401(a)(9) of the Code, including the minimum
distribution inciden tal benefit requirement of Section 1.401(a)(9)-2 of the
Treasury Regulations.
7.04 Notice to Married Participants. No less than thirty (30) days and no more
than ninety (90) days prior to the Annuity Starting Date, the Committee shall
furnish any Participant who has a Spouse, by mail or personal delivery, with a
written explanation of (a) the terms and conditions of the Qualified Joint and
Survivor Annuity provided in Section 7.01 of the Plan, (b) the Participant's
right to make, and the effect of, an election to waive the Qualified Joint and
Survivor Annuity form of benefit, (c) the rights of the Participant's Spouse
under Section 7.02(b) of the Plan to consent to a waiver of the Qualified Joint
and Survivor Annuity form, and (d) the right to make, and the effect of, a
revocation of an election to waive payment in the form of a Qualified Joint and
Survivor Annuity. Within thirty (30) days following receipt by the Committee of
a Participant's written request, the Participant shall be furnished an
additional written explanation, in terms of dollar amounts, of the financial
effect of an election not to receive the Qualified Joint and Survivor Annuity.
The Committee shall not be required to comply with more than one such request.
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7.05 In any case, a lump sum payment of the Actuarial Equivalent value shall be
made in lieu of all benefits if the present value of the retirement benefit
payable to or on behalf of the Participant, determined as of the Participant's
actual termination of service, amounts to $5,000 or less. In determining the
amount of a lump sum payment payable under this paragraph, (i) Actuarial
Equivalent 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 (ii) the interest rate to be used shall be the
annual rate of interest on 30-year Treasury Securities as specified by the
Commissioner of Internal Revenue for the first full calendar month preceding the
Plan Year in which the Annuity Starting Date occurs, and the mortality table to
be used shall be the mortality table prescribed by the Secretary of the Treasury
under Code Section 417(e)(3)(A)(ii)(I) as in effect on the first day of the Plan
Year in which the Annuity Starting Date occurs.
7.06 Annuity Contract Nontransferable. Any annuity contract
distributed herefrom must be nontransferable.
7.07 Conflicts With Annuity Contracts. The terms of any annuity contract
purchased and distributed by the Plan to a Participant, Spouse or Beneficiary
shall comply with the requirements of this Plan.
7.08 Rollovers. This Section 7.08 applies to distributions made on or after
January 1, 1993. Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a distributee's election under this Section 7.08, a
distributee may elect, at the time and in the manner prescribed by the Plan
Administrator, to have any portion of an eligible rollover distribution paid
directly to an eligible retirement plan specified by the distributee in a direct
rollover.
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The following definitions shall apply for purposes of this Section
7.08:
(a) Eligible rollover distribution: An eligible rollover
distribution is 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: 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; any distribution to the extent such
distribution is required under Section 401(a)(9) of the Code; and the portion of
any distribution that is not includable in gross income (determined without
regard to the exclusion for net unrealized appreciation with respect to employer
securities).
(b) Eligible retirement plan: An eligible retirement plan is an
individual retirement account described in Section 408(a) of the Code, an
individual retirement annuity described in Section 408(b) of the Code, an
annuity plan described in Section 403(a) of the Code, or a qualified trust
described in Section 401(a) of the Code, that accepts the distributee's eligible
rollover distribution. However, in the case of an eligible rollover distribution
to the surviving Spouse, an eligible retirement plan is an individual retirement
account or individual retirement annuity.
7.09 Waiver of Thirty (30) Day Notice Period. The notice required by Section
1.411(a)-11(c) of the Treasury Regulations must be provided to a Participant no
less than thirty (30) days and no more than ninety (90) days before the Annuity
Starting Date.
A Participant may, after receiving the notice required under Sections 411 and
417 of the Code, affirmatively elect to have his benefit commence sooner than 30
days following his receipt of the required notice, provided all of the following
requirements are met:
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(i) the Plan Administrator clearly informs the Participant that he
has a period of at least 30 days after receiving the notice to
decide when to have his benefit begin, and if applicable, to
choose a particular optional form of payment;
(ii)the Participant affirmatively elects a date for benefits to begin,
and if applicable, an optional form of payment, after receiving
the notice;
(iii)the Participant is permitted to revoke his election until the
later of his Annuity Starting Date or seven (7) days following
the day he received the notice;
(iv)the Participant's Annuity Starting Date is after the date the
notice is provided; and
(v) payment does not commence less than seven (7) days following the
day after the notice is received by the Participant.
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ARTICLE 8
DEATH BENEFITS
8.01 Pre-Retirement Death Benefit
(a) If a Participant who has a vested interest in his
retirement benefit dies before payment of his benefits commence, then his
Beneficiary shall be entitled to receive a benefit under this Section 8.01. The
benefit shall be equal to the amount the Participant would have received
pursuant to Section 6.01(a) and Section 6.01(b) if the benefit to which
Participant had been entitled at his date of death had commenced in the form of
a one hundred percent (100%) joint and survivor annuity in the month next
following the month in which his Normal Retirement Date had occurred (or next
following the month in which his date of death occurred, if later). The benefit
payable to the Beneficiary shall be reduced in accordance with Schedule A to
reflect its commence ment prior to the Participant's Normal Retirement Date and
on or after the Participant's 55th birthday if the Beneficiary elects early
commencement. The benefit payable hereunder shall commence as of the first day
of the month following the month in which the Participant's Normal Retirement
Date would have occurred. However, the Participant's Beneficiary may elect to
begin receiving payments as of the first day of any month following the
Participant's death. If the Beneficiary elects to commence receipt of payment
prior to the Participant's 55th birthday, the reduction for early commence ment
shall be the Actuarial Equivalent from age 65.
(b) If the Participant is married at the date of his death, the
Participant's Spouse shall be entitled to the benefit provided in Section
8.01(a), unless:
(i) The Spouse consents in writing to the election,
the election designates a specific Beneficiary, which may not
be changed without spousal consent (or the Spouse expressly
permits designations by the Participant without further
spousal consent); and the Spouse's consent acknowledges the
effect of such election and is witnessed by a member of the
Committee or a notary public; and
(ii) It is established to the satisfaction of the
Committee that the required consent may not be obtained
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because there is no Spouse, because the Spouse cannot be
located, or because of such other circumstances as provided in
Treasury Regulations under the applicable provisions of the
Code.
Any consent by a Spouse (or establishment that the consent of
a Spouse may not be obtained) under this Section 8.01(b) shall
be effective only with respect to such Spouse. Any election
pursuant to this Section 8.01(b) may be revoked by the
Participant without the consent of the Participant's Spouse at
any time during the election period (as described hereafter in
this Section 8.01(b)). The election period shall commence on
the first day of the Plan Year in which the Participant
attains age thirty-five (35) and shall end on the date of his
death; provided, however, that in the case of any Participant
who is separated from Service, the election period with
respect to benefits accrued before the date of such separation
from Service shall begin not later than the date of the
Participant's separation from Service.
A Participant who will not yet attain age thirty-five
(35) as of the end of any current Plan Year, may make a
special qualified election to name a Beneficiary other than
his Spouse for the period beginning on the date of such
election and ending on the first day of the Plan Year in which
the Participant will attain age thirty-five (35). Such
election shall not be valid unless the Participant receives a
written explanation of the benefit payable to the Spouse.
Spousal coverage will be automat ically reinstated as of the
first day of the Plan Year in which the Participant attains
age thirty-five (35). Any new waiver on or after such date
shall be subject to the full requirements of this Section.
The Plan Administrator shall provide each Participant
within the applicable period for such Participant, a written
explanation of the death benefit in such terms and in such a
manner as would be comparable to the explanation provided for
meeting the requirements of Section 7.04 applicable to a
Qualified Joint and Survivor Annuity.
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The applicable period for a Participant is whichever
of the following periods ends last:
(iii) the period beginning with the first day of the Plan Year
in which the Participant attains age thirty-two (32) and
ending with the close of the Plan Year preceding the Plan Year
in which the Participant attains age thirty-five (35);
(iv)a reasonable period ending after the individual
becomes a Participant; or
(v) a reasonable period ending after this Article
first applies to the Participant.
Notwithstanding the foregoing, notice must be
provided within a reasonable period ending after the
separation of Service in case of a Participant who separates
from Service before attaining age thirty-five (35).
For purposes of the preceding paragraph, a reasonable
period ending after the enumerated events described in
Subparagraphs (ii) and (iii) of this Section 8.01(b) is the
end of the two (2) year period beginning one (1) year after
that date. In the case of a Participant who separates from
Service before the Plan Year in which age thirty-five (35) is
attained, notice shall be provided within the two (2) year
period beginning one year prior to separation and ending one
(1) year after separation. If such a Participant thereafter
returns to employment with the Company, the applicable period
for such Partici pant shall be redetermined.
8.02 Post-Retirement Death Benefit. Upon the death after retire ment of a
Participant, a death benefit in addition to any other benefit that may be
payable to the Beneficiary under the Plan shall be payable to his Beneficiary in
an amount equal to:
(i) one thousand dollars ($1,000); plus
(ii) (A) if the Participant retired prior to September 1, 1994 and
contributed to the Plan while a Participant of the
Curtiss-Wright Contributory Retirement Plan for the three (3)
consecutive years immediately prior to retirement or
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(B) if the Participant retired after August 31, 1994 and
contributed to the Plan for the sixty (60) consecutive months
ending August 31, 1994, the greater of:
(1) his basic salary (on an annual basis) in effect on
the January 1 next preceding his retirement date,
reduced by 1/60th of such amount on the first day of
each month following his retirement date; and
(2) two thousand dollars ($2,000); less
(iii) any amounts under a Group Life Insurance Plan of the Company
which were paid to such Participant during his lifetime or are
payable by reason of his death.
8.03 Payment to Beneficiary.
The Beneficiary entitled to a benefit pursuant to Section 8.01(a) may
elect to receive the benefit in a lump sum, payable at the election of the
Beneficiary, at any time following the Participant's death. The death benefit
payable to a Benefi ciary pursuant to Section 8.02 shall be paid in a lump sum
as soon as practicable after the date of the Participant's death.
8.04 Required Distributions.
(a) If a Participant dies after distribution of his interest in the
Plan has commenced in accordance with Article 7 of the Plan, the remaining
portion of the Participant's interest in the Plan shall be distributed at least
as rapidly as the method of distribu tion being used as of the date of the
Participant's death pursuant to Article 7 of the Plan.
(b) If the Participant dies before distribution of his interest in the
Plan has commenced, the Participant's entire interest in the Plan shall be
distributed no later than five (5) years after the date of the Participant's
death except to the extent provided in Subparagraphs (i) or (ii) below:
(i) if any portion of the Participant's interest in the Plan
is payable to (or for the benefit of) a designated Benefi ciary, distribution of
the Participant's interest in the Plan may be made over the life of such
designated Beneficiary (or over a period not extending beyond the life
expectancy of such designated Beneficiary), commencing no later than one year
after the date of such Participant's death or such later date as may be provided
in Treasury Regulations under the applicable provisions of the Code; and
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(ii) if the designated Beneficiary is the Participant's surviving
Spouse, the date on which the distributions are required to begin in accordance
with paragraph (i) immediately above shall not be earlier than the date on which
the Participant would have attained age seventy and one-half (70 1/2), and if
the surviving Spouse dies before the distributions to such Spouse begin,
subsequent distributions shall be made as if the surviving Spouse were the
Participant.
(c) For purposes of this Section 8.04:
(i) the life expectancy of the Participant and, if applicable,
the Participant's Spouse (other than in the case of a Life Annuity) may be
determined but not more frequently than annually, and
(ii) any amount paid to a child shall be treated as if it had been
paid to the surviving Spouse if such amount will become payable to the surviving
Spouse when such child reaches the age of majority (or such other designated
event permitted under Treasury regulations).
8.05 (a) Upon receipt of proof, satisfactory to the Committee, of the death of a
Participant, provided no other benefit is payable under the Plan on his account
except as set forth in Section 8.05(b) below, the amount of his employee
contributions at the time of the Participant's death which have not been
distributed to the Participant shall be payable in one sum to his Beneficiary,
if living.
(b) If the Participant's Beneficiary is the Participant's spouse, the
spouse shall receive the amount of employee contribu tions which have not been
distributed in one sum, in addition to, and without any reduction for, any other
benefit the spouse is entitled to receive under any other provision of this
Plan.
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ARTICLE 9
RETIREMENT BENEFITS UNDER
COLLECTIVE BARGAINING AGREEMENTS
9.01 Eligibility for Employees Subject to a Collective Bargaining
Agreement.
(a) Each Employee whose employment is covered by a collective
bargaining agreement to which the Company is a party who, on or after September
15, 1952, shall have attained the age of sixty-five (65), shall have completed
ten (10) or more Years of Credited Service and shall have ceased active Service
shall be entitled to receive the pension under this Article 9.
(b) Effective January 1, 1976, an Employee to whom Subsection (a) of
this Section 9.01 applies who begins employment with the Company five (5) or
more years before the Normal Retirement Age shall be a Participant in the Plan
and entitled to a benefit after reaching Normal Retirement Age based upon actual
Years of Credited Service.
(c) Effective January 1, 1989, each Employee to whom Sub section (a)
of this Section 9.01 applies who, on or after Septem ber 15, 1952, shall have
completed five (5) or more Years of Credited Service, and shall have ceased
active Service shall be entitled to receive a pension benefit under the Plan
regardless of the number of years of participation before retirement age.
9.02 Amount, Form, and Commencement of Retirement Benefit. The monthly amount of
pension payable to a pensioner retired pursuant to the provisions of Section
9.01 of the Plan shall be as follows:
(a) Normal Retirement.
(i) Wood-Ridge and Nuclear Facilities. With respect to
any such pensioner whose Credited Service was with the Wood-Ridge
and Nuclear Facilities:
(A) With benefits payable commencing prior to October
1, 1962, $6.00 multiplied by his Years of Credited Service for any pension
payments due for months commencing on and after October 1, 1974 but prior to
October 1, 1976 and $6.25 multiplied by his Years of Credited Service for any
pension payments due for months commencing on and after October 1, 1976.
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(B) With benefits payable commencing on and after
October 1, 1962 and prior to October 1, 1965, $6.25 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1974 but prior to October 1, 1976 and $6.50 multiplied by his Years
of Credited Service for any pension payments due for months commencing on and
after October 1, 1976.
(C) With benefits payable commencing on and after
October 1, 1965 and prior to October 1, 1968, $6.50 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1974 but prior to October 1, 1976 and $6.75 multiplied by his Years
of Credited Service for any pension payments due for months commencing on and
after October 1, 1976.
(D) With benefits payable commencing on and after
October 1, 1968 and prior to October 1, 1971, $7.50 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1974 but prior to October 1, 1976 and $7.75 multiplied by his Years
of Credited Service for any pension payments due for months commencing on and
after October 1, 1976.
(E) With benefits payable commencing on and after
October 1, 1971 and prior to October 1, 1974, $8.25 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1974 but prior to October 1, 1976 and $8.50 multiplied by his Years
of Credited Service for any pension payments due for months commencing on and
after October 1, 1976.
(F) With benefits payable commencing on and after
October 1, 1974 and prior to October 1, 1976, $9.00 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1974.
(G) With benefits payable commencing on and after
October 1, 1976, $10.00 multiplied by his Years of Credited Service for any
pension payments due for months commencing on and after October 1, 1976.
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(ii) Buffalo Facility. With respect to any such pensioner whose
Credited Service was with the Buffalo Facility:
(A) With benefits payable commencing prior to October
1, 1962, $4.75 multiplied by his Years of Credited Service for any pension
payments due for months commencing on and after October 1, 1969.
(B) With benefits payable commencing on or after
October 1, 1962 and prior to October 1, 1965, $5.00 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1969.
(C) With benefits payable commencing on or after
October 1, 1965 and prior to October 1, 1968, $5.25 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1969.
(D) With benefits payable commencing on or after
October 1, 1968 and prior to October 1, 1971, $6.25 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1970.
(E) With benefits payable commencing on or after
October 1, 1971 and prior to October 1, 1973, $6.25 multiplied by his Years of
Credited Service for benefit payments due prior to February 1, 1972, becoming
the sum of $6.25 multiplied by his Years of Credited Service prior to January 1,
1972 and $7.00 multiplied by his Years of Credited Service on and after January
1, 1972 for benefit payments due on and after February 1, 1972.
(F) With benefits payable commencing on or after
October 1, 1973, the sum of $6.50 multiplied by his Years of Credited Service
prior to January 1, 1972 and $7.00 multiplied by his Years of Credited Service
on and after January 1, 1972.
(G) With benefits payable commencing on or after
October 1, 1974, the sum of $8.00 multiplied by his Years of Credited Service
prior to January 1, 1972 and $7.00 multiplied by his Years of Credited Service
on and after January 1, 1972 for payments due on and after October 1, 1974.
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(H) With benefits payable commencing on or after
October 1, 1975, $8.00 multiplied by his Years of Credited Service for payments
due on and after October 1, 1975.
(I) With benefits payable commencing on or after
November 1, 1977 and prior to November 1, 1978, the sum of $8.00 multiplied by
his Years of Credited Service prior to January 1, 1978 and $9.00 multiplied by
his Years of Credited Service on and after January 1, 1978.
(J) With benefits payable commencing on or after
November 1, 1978, the sum of $8.00 multiplied by his Years of Credited Service
prior to January 1, 1978 and $10.00 multiplied by his Years of Credited Service
on and after January 1, 1978.
(K) With benefits payable commencing on or after
November 2, 1980, the sum of:
(1) $8.00 multiplied by his Years of Credited
Service prior to January 1, 1978,
(2) $10.00 multiplied by his Years of Credited
Service from January 1, 1978 through November 1, 1980,
(3) $11.00 multiplied by his Years of Credited
Service from November 2, 1980 through November 1, 1981,
(4) $12.00 multiplied by his Years of Credited
Service on and after November 2, 1981 through May 4, 1985,
(5) $13.00 multiplied by his Years of Credited
Service on and after May 4, 1985 through July 23, 1993, and
(6) $17.00 multiplied by his Years of Credited
Service on and after July 24, 1993.
(iii) Curtiss-Wright Flight Systems, Inc. Facility. With
respect to any such pensioner whose Credited Service was with the
Curtiss-Wright Flight Systems, Inc. Facility:
(A) With benefits payable commencing prior to
October 1, 1962, $4.75 multiplied by his Years of Credited Service for any
pension payments due for months commencing on and after October 1, 1969.
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(B) With benefits payable commencing on or after
October 1, 1962 and prior to October 1, 1965, $5.00 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1969.
(C) With benefits payable commencing on or after
October 1, 1965 and prior to October 1, 1968, $5.25 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1969.
(D) With benefits payable commencing on or after
October 1, 1968, $6.25 multiplied by his Years of Credited Service.
(iv) Marquette Metal Products Company. With respect to any such
pensioner whose Credited Service was with The Marquette Metal Products Company:
(A) With benefits payable commencing prior to
October 1, 1962, $4.75 multiplied by his Years of Credited Service for any
pension payments due for months commencing on and after October 1, 1969.
(B) With benefits payable commencing on or after
October 1, 1962 and prior to October 1, 1965, $5.00 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1969.
(C) With benefits payable commencing on or after
October 1, 1965 and prior to October 1, 1968, $5.25 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1969.
(D) With benefits payable commencing on or after
October 1, 1968 and prior to October 1, 1971, $6.25 multiplied by his Years of
Credited Service for any pension payments due for months commencing on and after
October 1, 1970.
(E) With benefits payable commencing on or after
October 1, 1971 and prior to October 1, 1973, $6.25 multiplied by his Years of
Credited Service for benefit payments due prior to February 1, 1972, becoming
the sum of $6.25 multiplied by his Years of Credited Service prior to October 1,
1971 and $7.00 multiplied by his Years of Credited Service on and after October
1, 1971 for benefit payments due on and after February 1, 1972.
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(F) With benefits payable commencing on or after
October 1, 1973, the sum of $6.50 multiplied by his Years of Credited Service
prior to October 1, 1971 and $7.00 multiplied by his Years of Credited Service
on and after October 1, 1971.
(G) With benefits payable commencing on or after
October 1, 1974, the sum of $7.50 multiplied by his Years of Credited Service
prior to October 1, 1971 and $7.50 multiplied by his Years of Credited Service
on and after October 1, 1971.
(H) With benefits payable commencing on or after
October 1, 1975, the sum of $7.50 multiplied by his Years of Credited Service
prior to October 1, 1971 and $8.00 multiplied by his Years of Credited Service
on and after October 1, 1971.
(I) With benefits payable commencing on or after
October 1, 1976, the sum of $7.50 multiplied by his Years of Credited Service
prior to October 1, 1971 and $9.00 multiplied by his Years of Credited Service
on and after October 1, 1971 and $10.00 multiplied by his Years of Credited
Service on and after November 1, 1979.
(v) Target Rock Corporation. With respect to any such
pensioner whose Credited Service was with Target Rock Corporation:
(A) With benefits commencing on or after June 1,
1967 and prior to October 1, 1968, $6.25 multiplied by his Years of Credited
Service, for any pension payments due for months commenc ing on and after
February 1, 1972.
(B) With benefits payable commencing on or after
October 1, 1968 and prior to October 1, 1971, $7.25 multiplied by his Years of
Credited Service, for any pension payments due for months commencing on and
after February 1, 1972.
(C) With benefits payable commencing on or after
October 1, 1971 and prior to June 1, 1975, his Years of Credited Service
multiplied by $6.25 for any pension payments due for months commencing on and
after October 1, 1971 but prior to February 1, 1972 and by $8.00 for any pension
payments due for months commenc ing on or after February 1, 1972.
(D) With benefits payable commencing on or after
June 1, 1975 and prior to May 1, 1977, $9.00 multiplied by his Years of Credited
Service for any pension payments due for months commencing on and after June 1,
1975.
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(E) With benefits payable commencing on or after
May 1, 1977, the sum of $9.00 multiplied by his Years of Credited Service prior
to May 1, 1977 and $10.00 multiplied by his Years of Credited Service on and
after May 1, 1977 for any pension payments due for months commencing on and
after May 1, 1977.
(F) $11.00 multiplied by his Years of Credited
Service on or after May 1, 1981 for any pension payments due for months
commencing on and after May 1, 1981, $12.00 multiplied by his Years of Credited
Service on and after May 5, 1982 for any pension payments due for months
commencing on and after May 5, 1982, $13.00 multiplied by his Years of Credited
Service on and after May 7, 1984 for any pension payments due for months commenc
ing on and after May 7, 1984, $14.00 multiplied by his Years of Credited Service
on and after May 6, 1985 for any pension payments due for months commencing on
and after May 6, 1985, and $15.00 multiplied by his Years of Credited Service on
and after May 5, 1986 for any pension payments due for months commencing on and
after May 5, 1986.
(G) Seventeen Dollars ($17.00) multiplied by his
Years of Credited Service with TARGET ROCK CORPORATION, now known as
CURTISS-WRIGHT FLOW CONTROL CORPORATION, on or after August 1, 1994 for any
pension payments due for months commencing on or after August 1, 1994. The
benefit under this subparagraph (G) is only available for those union members
who did not elect to participate in the CURTISS-WRIGHT CORPORATION SAVINGS AND
INVESTMENT PLAN.
(H) Nineteen Dollars ($19.00) multiplied by his
years of Credited Service with CURTISS-WRIGHT FLOW CONTROL CORPORATION on or
after August 1, 1997 for any pension payments due for months commencing on or
after August 1, 1997; Twenty-One Dollars ($21.00) multiplied by his years of
Credited Service with CURTISS-WRIGHT FLOW CONTROL CORPORATION on or after August
1, 1998 for any pension payments due for months commencing on or after August 1,
1998.
(b) Early Retirement. On or after January 1, 1989 any Employee who has
attained age fifty-five (55) but not age sixty-five (65) and who has five (5) or
more Years of Credited Service may retire at his option, and for any such
Employee who retires with benefits which first could commence on or after
October 1, 1965, the monthly pension payable to him shall be either:
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(i) a pension commencing at age sixty-five (65) deter mined in
accordance with Section 9.02(a) of the Plan and based upon his Credited Service
at the time of his early retirement, or
(ii) a pension commencing on the first day of the month selected
by him at the time of his early retirement which is after such retirement and
prior to age sixty-five (65) in an amount equal to the amount that would have
been payable at age sixty-five (65) on the basis of his Credited Service at the
time of early retire ment, multiplied by the applicable percentage set forth in
the following table (Schedule F):
Attained Age at the Time
Pension Commences Percent *
64 97.0
63 94.0
62 91.0
61 88.0
60 85.0
59 79.6
58 74.2
57 68.8
56 63.4
55 58.0
* To be prorated on the basis of the Employee's attained age plus the
number of complete months (twelfths of a year) since his last birthday.
If an Employee's Credited Service at the time of his early
retirement is in excess of twenty (20) years, then the amount of the monthly
pension payable to such an Employee as determined above shall be increased by:
(A) one tenth (1/10) of one percent (1%) for each
one-tenth (1/10) year of such Employee's Credited Service in excess of twenty
(20) years up to a maximum increase of ten percent (10%) with respect to
benefits which first could commence on or after October 1, 1965 and prior to
October 1, 1968, or
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(B) two-tenths (2/10) of one percent (1%) for each
one-tenth (1/10) year of such Employee's Credited Service in excess of twenty
(20) years up to a maximum increase of ten percent (10%) with respect to
benefits which first could commence on or after October 1, 1968, but in no event
shall the total monthly pension payable to such Employee under this Section
9.02(b) be greater than the amount of monthly pension that would have been
payable to him at age sixty-five (65) on the basis of his Credited Service at
the time of early retirement.
(c) Total and Permanent Disability Retirement.
(i) An Employee with at least five (5) Years of Credited
Service who is actually at work for the Company or is on an Company-approved
Leave of Absence on or after January 1, 1989, who subsequent to September 15,
1952 becomes totally and permanently disabled prior to attaining age sixty-five
(65), shall be eligible for a disability pension as hereinafter provided.
(ii) An Employee shall be deemed to be totally and per manently
disabled when on the basis of medical evidence satis factory to the Company he
is found to be wholly and permanently prevented from engaging in any occupation
or employment for wage or profit as a result of bodily injury or disease, either
occupational or non-occupational in cause, provided, however, that no Employee
shall be deemed to be totally and permanently disabled for the purposes of the
Plan if his disability resulted from a self-inflicted injury, or a hostile act
of a foreign power, or resulted from service in the Armed Forces of any country,
unless his benefits could first commence on or after January 1, 1989, and he has
accumulated five (5) Years of Credited Service since such hostile act or since
leaving service in such Armed Forces.
(iii) The monthly pension payable to a disability pen sioner shall
be in accordance with Section 9.02(a) of the Plan, based on Credited Service at
the date of disability.
(iv) In addition to the monthly pension provided for in
subparagraph (iii), there shall be payable to a disability pensioner during the
continuance of his total and permanent disability until he attains age
sixty-five (65), or, if earlier, until the date at which such disability
pensioner becomes or could have become entitled to an unreduced Federal Social
Security benefit for age for disability, a monthly amount equal to:
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(A) $5.20 multiplied by his Years of Credited
Service at the date of disability, but not more than $130, with respect to a
monthly pension that first could commence prior to October 1, 1968,
(B) $6.00 multiplied by his Years of Credited
Service at the date of disability, but not more than $150, with respect to a
monthly pension that first could commence on or after October 1, 1968, and
(C) $10.00 multiplied by his Years of Credited
Service at the date of disability, but not more than $250, with respect to a
monthly pension that first could commence on or after March 1, 1978.
(v) Any disability pensioner may be required to submit to
medical examination at any time during retirement prior to age sixty-five (65),
but not more often than semi-annually, to deter mine whether he is eligible for
continuance of the disability pension. If, on the basis of such examination, it
is found that he is no longer disabled or if he engages in gainful employment,
except for purposes of rehabilitation as determined by the Company, his
disability pension will cease. In the event the disability pensioner refuses to
submit to medical examination, his pension will be discontinued until he submits
to examination.
(vi) Metal Improvement Company Inc. Columbus Division.
With respect to any such pensioner whose Credited Service is
with the METAL IMPROVEMENT COMPANY, INC. COLUMBUS DIVISION.
With benefits commencing on or after January 1, 1996, Ten Dollars
($10.00) multiplied by his Years of Credited Service on or after January 1,
1996, for any pension payments due for months commencing on or after January 1,
1996. Credited Service for vesting purposes shall commence January 1, 1996.
(vii) Metal Improvement Company, Inc. Vernon Division. With
respect to any such pensioner whose Credited Service was with the METAL
IMPROVEMENT COMPANY, INC. VERNON DIVISION:
- -73-
With benefits commencing on or after October 1, 1996, Six Dollars
($6.00) multiplied by his Years of Credited Service on or after October 1, 1996,
for any pension payments due for months commencing on or after October 1, 1996.
Credited Service for vesting purposes shall commence October 1, 1996.
(viii) Metal Improvement Company, Inc. Addison Division. With
respect to any such pensioner whose Credited Service was with the METAL
IMPROVEMENT COMPANY, INC. ADDISON DIVISION:
With benefits commencing on or after November 1, 1996, Four Dollars
($4.00) multiplied by his Years of Credited Service on or after November 1,
1996, for any pension payments due for months commencing on or after November 1,
1996. Credited Service for vesting purposes shall commence November 1, 1996.
(d) Retention of Deferred Pension.
(i) An Employee who loses Credited Service in accordance with
Section 9.03(c) of the Plan prior to the age at which he is eligible for early
retirement in accordance with Section 9.02(b) of the Plan, shall be eligible for
a deferred pension; provided, that:
(A) If such loss was on or after September 15, 1957
and prior to September 30, 1962, such Employee then had at least
twenty (20) Years of Credited Service; or
(B) If such loss was on or after September 30, 1962
and prior to September 30, 1965, such Employee either:
(1) then had at least ten (10) Years of
Credited Service and had attained his fortieth (40th) birthday; or
(2) then had at least twenty (20) Years of
Credited Service accrued through (i) the calendar year 1962 or (ii) the date of
his loss of Credited Service, whichever is earlier; or
(C) If such loss was on or after September 30,
1965, such Employee then had at least ten (10) Years of Credited
Service; or
(D) If such loss was on or after January 1, 1989,
such Employee then had at least five (5) Years of Credited Service.
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(ii) The monthly amount of such deferred pension com mencing at
age sixty-five (65) for Employees eligible therefor in accordance with Section
9.02(a) of the Plan shall be as shown in Schedule A attached hereto for the
Wood-Ridge Facility, Schedule G attached hereto for the Buffalo Facility,
Schedule C attached hereto for the Curtiss-Wright Flight Systems Facility, and
Schedule D attached hereto for the Target Rock Facility. The deferred pension
rates for Marquette are the same rates as shown in Section 9.02(a)(iv) of the
Plan for the Marquette Facility.
(iii) For Employees who became eligible for a deferred pension
before January 1, 1976:
Upon written request to the Company by a former Employee
eligible for a deferred pension in accordance with this Section 9.02(d), such
deferred pension shall be payable on the first day of the month following the
later of (a) the month in which such former Employee attains age sixty-five
(65), or effective October 1, 1962, age sixty (60), or (b) the month during
which the Company receives such written request, provided, that any deferred
pension commenc ing after age sixty (60) and prior to age sixty-five (65) shall
be the amount in accordance with Section 9.02(a) of the Plan, reduced by
sixth-tenths (6/10) of one percent (1%) (Schedule D) for each complete calendar
month by which such former Employee is under the age of sixty-five (65) at the
time such deferred pension commences. The written request must be received by
the Company not earlier than sixty (60) days prior to his sixtieth (60th)
birthday.
(iv) For Employees who became eligible for a deferred pension on
or after January 1, 1976:
Such deferred pension benefit shall be payable on the first
day of the month following the later of (a) the month in which such former
Employee attains age fifty-five (55), or (b) sixty (60) days from the date the
Company receives such written request; provided that any deferred pension
benefit commencing after age fifty-five (55) and prior to age sixty-five (65)
shall be the amount in accordance with Section 9.02(a) of the Plan, reduced by
six-tenths (6/10) of one percent (1%) for each complete calendar month by which
such former Employee is under the age of sixty-five (65) at the time such
deferred pension commences. The written request must be received by the Company
not earlier than sixty (60) days prior to his fifty-fifth (55th) birthday.
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(e) Optional Survivor Benefit Election.
(i) An Employee retiring with benefits payable commenc ing on
or after January 1, 1989, in accordance with the normal, early or total and
permanent disability retirement provisions of this Article 9, where an Employee
is age fifty-five (55) or older, or who loses Seniority on or after January 1,
1989 and is eligible for a deferred pension benefit in accordance with Section
9.02(d) of the Plan, will, unless waived, receive an adjusted amount of monthly
pension benefit to provide that, if his or her designated Spouse shall be living
at his or her death after the survivor benefit becomes effective, a survivor
benefit shall be payable to such Spouse during his or her further lifetime.
(A) The Employee may designate as a beneficiary of
a survivor benefit only the person who is his or her Spouse at such time and who
has been his or her Spouse for at least one (1) year immediately prior to the
date of benefit commencement. Such designation must be accompanied by proof of
marriage and date of birth of Spouse.
(B) An Employee who is entitled to a total and
permanent disability benefit prior to attaining age fifty-five (55) shall have
such benefit adjusted to provide the survivor benefit, if not waived, effective
the first day of the month following his or her fifty-fifth (55th) birthday.
(C) A survivor benefit shall be irrevocable at or
after its effective date if the Employee and the designated Spouse both shall be
living at such time.
(D) The survivor benefit shall become effective, if
not waived, on the commencement date of the Employee's monthly benefit and
payable on and after the first day of the month following the pensioner's death.
(E) If the amount of monthly pension benefit that
would be payable to the Employee, in accordance with subparagraph (ii) of this
Section 9.02(e), shall be less than $30.00 a month, the option set forth in this
Section 9.02(e) shall not be avail able.
(ii) For an Employee receiving a pension benefit with a survivor
benefit adjustment in accordance with subparagraph (i) of this Section 9.02(e),
the reduced amount of his monthly pension benefit referred to in subparagraph
(i) shall be equal to an amount determined by multiplying the monthly pension
benefit otherwise payable to the Employee by ninety percent (90%) if the
Employee's age and his designated Spouse's age are the same (the age of each for
the purposes hereof being the age at his or her last birthday prior to the
effective date of the survivor benefit); or, if such ages are not the same, such
percentage shall be increased by one-half of one percent (1/2%), up to a maximum
of one hundred percent (100%), for each year that the designated Spouse's age
exceeds the Employee's age and shall be decreased by one-half of one percent
(1/2%) for each year that the designated Spouse's age is less than the
Employee's age.
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(iii) The survivor benefit payable to the surviving Spouse of a
retired Employee in accordance with paragraph 1 and who dies after such benefit
becomes effective, shall be a monthly benefit for the further lifetime of such
surviving Spouse equal to fifty- five percent (55%) of the reduced amount of
such Employee's monthly pension benefit as determined in accordance with Section
9.02(a) of the Plan for any such Employee with benefits payable commencing on or
after October 1, 1965.
(iv) Effective August 23, 1984, a survivor benefit, not waived,
shall be paid to a surviving Spouse of a vested active participant not eligible
for early retirement or a vested deferred participant who was credited with at
least one (1) Hour of Service subsequent to August 22, 1984 not eligible for
early retirement at the date the participant would have been eligible for early
retirement but reduced in accordance with the tables below.
For Coverage While The
Participant's Age Is Monthly Percentages
Under 35 .01%
35 - 45 .02%
45 - 54 and 11 months .04%
(v) Effective August 23, 1984, a survivor benefit, may not be
waived by the participant without the consent of the partic ipant's Spouse. Such
consent for a waiver must be in writing and either notarized or witnessed by a
member of the Board of Adminis tration. Notwithstanding this consent
requirement, if the participant establishes to the satisfaction of the Board of
Administration that such written consent cannot be obtained because:
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(A) there is no Spouse;
(B) the Spouse cannot be located; and
(C) of other circumstances if the Secretary of the
Treasury may by regulation prescribe the participant's election to waive
coverage will be considered valid if made within the Applicable Election Period.
A Participant who will not yet attain age thirty-five (35), as of the
end of any current Plan Year, may make a special qualified election to waive the
Qualified Pre-retirement Survivor Annuity for the period beginning on the date
of such election and ending on the first day of the Plan Year in which the
Participant will attain age thirty-five (35). Such election shall not be valid
unless the Participant receives a written explanation of the Qual ified
Pre-Retirement Survivor Annuity. The Qualified Pre-Retire ment Survivor Annuity
coverage will be automatically reinstated as of the first day of the Plan Year
in which the Participant attains age thirty-five (35). Any new waiver on or
after such date shall be subject to the full requirements of this Section.
The Plan Administrator shall provide each Participant within the
applicable period for such Participant, a written explanation of the Qualified
Pre-Retirement Survivor Annuity in such terms and in such a manner as would be
comparable to the explanation provided for meeting the requirements applicable
to a Qualified Joint and Survivor Annuity.
The applicable period for a Participant is whichever of the following
periods ends last:
(1) the period beginning with the first day of
the Plan Year in which the Participant attains age thirty-two (32) and ending
with the close of the Plan Year preceding the Plan Year in which the Participant
attains age thirty-five (35);
(2) a reasonable period ending after the
individual becomes a Participant;
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(3) a reasonable period ending after the
subsidy of cost ceases to apply to the Participant;
(4) a reasonable period ending after this
Article first applies to the Participant.
Notwithstanding the foregoing, notice must be provided within a
reasonable period ending after separation of Service in case of a Participant
who separates from Service before attaining age thirty-five (35).
For purposes of the preceding paragraph, a reasonable period ending
after the enumerated events described in Subparagraphs (2), (3) and (4) of this
Section 9.02(e) is the end of the two (2) year period beginning one (1) year
prior to the date the applicable event occurs and ending one year after that
date. In the case of a Participant who separates from Service before the Plan
Year in which age thirty-five (35) is attained, notice shall be provided within
the two (2) year period beginning one year prior to separation and ending one
(1) year after separation. If such a Participant thereafter returns to
employment with the Company, the applicable period for such Participant shall be
redetermined.
Notwithstanding the other requirements of the Plan, the respective
notices prescribed in the Plan may not be given to a Participant if the Plan
fully subsidizes the cost of a Qualified Joint and Survivor Annuity or Qualified
Pre-Retirement Survivor Annuity, and the Plan does not allow the Participant to
waive the Qualified Joint and Survivor Annuity or Qualified Pre-Retirement
Survivor Annuity and does not allow a married Participant to designate a
non-Spouse Beneficiary. For purposes of the Plan, the Plan fully subsidizes the
cost of a benefit if, under the Plan, no increase in cost or decrease in
benefits to the Participant may result from the Participant's failure to elect
another benefit. Prior to the time the Plan allows the Participant to waive the
Qualified Pre-retirement Survivor Annuity, the Plan may not charge the
Participant for the cost of such benefit by reducing the Participant's benefits
under the Plan or by any other method.
(f) Employees Not Actively at Work. The absence of an Employee from
active work at the time he would be eligible to retire under the Plan shall not
preclude his retirement without return to active work, provided that such
absence is due to lay-off, medical leave or other Company approved leave of
absence commencing subsequent to September 15, 1952 and provided there has been
no loss of Credited Service.
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(g) Pension Payments.
(i) Pensions shall be paid monthly. The first monthly payment
of an Employee's pension other than for total and permanent disability shall be
on the first day of the month following the month in which the Employee actually
retires or, in the case of early retirement, the later date selected by the
Employee in accordance with Section 9.02(b)(i) or (ii) of the Plan, and the
pension shall be payable monthly during his lifetime thereafter.
(ii) Total and permanent disability pensions shall be payable to
the disability pensioner (A) on the first day of the month following the date
the required proof of such disability is received by the Company, or (B) the
first day of the month following the completion of a period of total and
permanent disability of six (6) months, whichever is later, and thereafter shall
be payable monthly during the continuance of total and permanent disability
while he remains eligible for such benefits.
(iii) In determining the pension payable to any pensioner, a
deduction shall be made equivalent to all or any part of the following benefits
payable to such pensioner by reason of any law of the United States, or any
political subdivision thereof, which has been or shall be enacted; provided,
that such deduction shall be to the extent that such benefits have been provided
by premiums, taxes or other payments paid by or at the expense of the Company:
(A) Workers' Compensation (except fixed statutory
payments for loss of any bodily member); provided, however, that this
subparagraph shall not be applicable with respect to the monthly pension payable
to any pensioner for months commencing on and after October 1, 1965 except as
provided in subparagraph (C) below.
(B) Disability benefits, other than a Primary
Insurance Amount payable under the Federal Social Security Act as now in effect
or as hereafter amended, or a benefit specified in subparagraph (ii) above.
(C) Workers' Compensation (including hearing,
pulmonary, ocular, and other occupational disease and accident claims, but
excluding statutory payments for loss of any physical or bodily members such as
a leg, arm or finger) for Workers' Compensation awards granted subsequent to
March 1, 1978, for Wood-Ridge and Nuclear, January 9, 1978 for Caldwell
facility, May 5, 1978 for Target Rock, and August 1, 1988 for Buffalo.
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(h) Death Benefits.
(i) On or after January 1, 1989, upon the death before
retirement of an Employee who had attained age fifty-five (55) and had at least
five (5) Years of Credited Service, a death benefit shall be payable under the
Plan to his surviving Spouse which shall be a monthly pension determined as if
the Employee had retired under the early or normal retirement provisions of the
Plan, whichever would apply at his age as of the date of his death, with monthly
payments commencing on the first day of the month following the date of his
death, and had a survivor benefit adjustment in accordance with Section 9.02(e)
of the Plan; provided, however, that:
(A) No such benefit shall be payable for any month
in which the surviving Spouse is entitled to receive a Transition or Bridge
Survivor Income Benefit under a Group Life Insurance Plan of the Company; and
(B) If no qualified Spouse shall survive the
Employee, or if the qualified Spouse's death shall occur while receiving a
Transition or Bridge Survivor Income Benefit under a Group Life Insurance Plan
of the Company, no death benefit shall be payable under this paragraph.
(ii) Upon the death of a pensioner who retired with benefits which
first could commence on or after October 1, 1965 in accordance with the early,
normal, automatic, or total and permanent disability retirement provisions of
the Plan, the death benefit under the Plan shall be $1,000, reduced by any
amounts under a Group Life Insurance Plan of the Company which were paid to the
pensioner during his lifetime or are payable by reason of his death.
Notwithstanding any provision in this Plan to the contrary, a
pensioner whose Credited Service was with the Buffalo Facility, the death
benefit shall be increased to $2,000 effective September 1, 1994 and $3,000
effective September 1, 1995.
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(iii) Payment of the death benefit after retirement shall be made
in a lump sum to a surviving beneficiary designated by the pensioner or,
otherwise, to his estate.
(iv) There shall be no death benefit under the Plan at any time by
reason of the death of an Employee eligible for, or in receipt of, a deferred
pension as provided for in Section 9.02(d) of the Plan.
9.03 Credited Service. The following provisions shall apply to
Employees to whom Section 9.01 of the Plan applies:
(a) Credited Service Prior to September 15, 1952.
(i) Credited Service prior to September 15, 1952 shall be
computed to the nearest one-tenth (1/10) year and shall be the sum of:
(A) the number of years following the Employee's
Seniority date with the Company and preceding September 15, 1952,
plus
(B) any period or periods of Service as an hourly
or salaried Employee of the Company preceding the Employee's Seniority date with
the Company, provided that if there was an interval equal to two (2) years or
more between periods of employment with the Company beginning with the last day
of active Service in the employment immediately preceding such interval, no
Service prior to such interval shall be counted, except this provision shall not
apply to any such interval commencing on or after August 1, 1945, and ending on
or before December 31, 1949.
(b) Credited Service Subsequent to September 15, 1952.
(i) Subparagraph (A) of this Section 9.03(b)(i) shall be
applicable for the period of time prior to January 1, 1976. Sub paragraphs (B)
and (C) of this Section 9.03(b)(i) shall be applicable to the period of time
subsequent to January 1, 1976.
(A) For purposes of vesting and for purposes of
accrual of benefits prior to January 1, 1976, Credited Service, commencing with
September 15, 1952 and thereafter, shall be computed for each calendar year for
each Employee on the basis of total hours compensated by the Company during such
calendar year and prior to his attaining age sixty-eight (68). Any calendar year
in which the Employee has one thousand seven hundred (1,700) or more compensated
hours shall be counted a full calendar year. Where his total hours compensated
during a calendar year are less than one thousand seven hundred (1,700) hours, a
proportionate credit shall be given to the nearest one-tenth (1/10) of a year
according to Schedule A attached hereto. For the calendar year 1952 no more than
a year's credit will be given including credit for Service prior to September
15, 1952.
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(B) For the purpose of vesting only, Credited
Service commencing with January 1, 1976 shall be computed for each calendar year
for each Employee on the basis of total hours com pensated by the Company during
such calendar year. Any calendar year in which the Employee has one thousand
(1,000) or more compensated hours shall be counted a full calendar year. Where
his total hours compensated during a calendar year are less than one thousand
seven hundred (1,700) hours, a proportionate credit shall be given to the
nearest one-tenth (1/10) of a year.
(C) For the purpose of accrual of benefits after
January 1, 1976, subparagraph (i) of this Section 9.03(b) shall continue to
apply.
(ii) For the purpose of computing Credited Service, hours of pay
at premium rate shall be computed as straight time hours.
(iii) For the purpose of computing compensated hours under
subparagraph (i) of this Section 9.03(b), an Employee who, after September 15,
1952, shall be absent from work because of occupa tional injury or disease
incurred in the course of his employment with the Company, and on account of
such absence receives Workers' Compensation while on Company approved Leave of
Absence, shall be credited with the number of hours that he would have been
regularly scheduled to work during such absence, provided that no Employee shall
be credited with Service under this paragraph after retire ment.
(iv) Any Employee who may be transferred subsequent to September
15, 1952 from employment that is not eligible for the benefits of the Plan, to
employment that is eligible for such benefits, shall have credited to the
nearest one-tenth (1/10) of a year any Credited Service he had as of the date of
such transfer; provided, that there shall be no duplication of Credited Service,
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nor, Credited Service of more than one (1) year in respect to any calendar year.
(v) An Employee who has Seniority and who:
(A) leaves the employment of the Company to enter
the Armed Forces of the United States and retains re-employment rights with the
Company under the re-employment provisions of the Universal Military Training
and Service Act of 1948, as amended, and who, during the period he retains such
re-employment rights, returns to work for the Company or reports to the Company
and is given leave of absence or laid off status, shall be credited with Future
Service at the rate of forty (40) hours per week during the period he would
normally have worked for the Company during the period he was in the Armed
Forces (or the number of hours that the Company is regularly scheduled to work
if less than forty (40) hours), or
(B) after September 30, 1968, is given a medical
leave of absence approved by the Company, shall be credited with Future Service
at the rate of forty (40) hours per week during the period he would normally
have worked for the Company while on such medical leave of absence; provided,
that the Employee otherwise had at least one hundred seventy (170) compensated
hours during the calendar year in which such medical leave of absence commenced,
except this Section 9.03(b) shall not apply to any absence to which Section
9.03(b)(iii) would apply.
(c) Loss of Credited Service.
(i) After September 15, 1952, an Employee of the Company will
lose all Credited Service for purposes of the Plan and if re-employed shall be
considered as a new Employee of the Company for purposes of the Plan:
(A) if the Employee quits,
(B) if the Employee is discharged or released,
(C) if the Employee loses his Seniority for any
other reason.
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The provisions of this paragraph shall not affect an
Employee's entitlement to any benefit under the Plan for which he is eligible at
the time of his loss of Credited Service.
(ii) Effective January 1, 1976 for purposes of vesting and accrual
of benefits, any Employee under the Plan whose employment is terminated and is
later re-employed by any other facility or wholly owned subsidiary of the
Company which has adopted the Plan will be entitled to Credited Service as
follows:
(A) if entitled to a vested benefit at the time of
termination, the pre-break and post-break Service will be aggregat
ed.
(B) if not entitled to a vested benefit at the time
of termination, the pre-break and post-break Service subsequent to January 1,
1976 will be aggregated only if his period of absence is less than five (5)
years.
(d) Restoration of Lost Credited Service.
(i) Anything in the Plan to the contrary notwithstand ing, any
Employee who has Seniority with the Company on or after September 30, 1968 will
be entitled to have any Credited Service with such Company, which he previously
lost in accordance with subparagraph (ii) of Section 9.03(a) of the Plan or
subparagraph (i) or (ii) of Section 9.03(c) of the Plan, restored for purposes
of entitlement to and computation of any benefit under the Plan, provided that:
(A) In the case of an Employee who lost such
Credited Service prior to October 1, 1968 and who (i) has Seniority on September
30, 1968, such Employee applies to such Company for restoration of such lost
Service prior to July 1, 1969 or (ii) does not have the Seniority on September
30, 1968 but thereafter acquires Seniority, such Employee applies for
restoration of such lost Credited Service within ninety (90) days of
re-employment by such Company.
(B) Effective January 1, 1976 any Employee having
Seniority with the Company on or after January 1, 1976 will be entitled to have
any Credited Service with the Company which he had previously lost in accordance
with Section 9.03(c) of the Plan restored automatically.
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(ii) Effective January 1, 1976, any Employee included in
subparagraphs (i)(B) and (ii)(B) of Section 9.03(c) of the Plan shall be
entitled to the benefit specified in this Section 9.03(d).
9.04 Definitions. For purposes of this Article 9, the following definitions
shall apply:
(a) "Board of Administration" means equal members which shall be
appointed by the Company and equal members which shall be appointed by the
respective union. Such Board of Administration shall have the powers enumerated
in the collective bargaining agreements attached hereto.
(b) "Salaried or Hourly Employee" means an Employee who is carried on
the payroll records of the Company as receiving Compensation on a weekly,
bi-weekly, semi-monthly, monthly or annual basis.
(c) "Seniority" shall have the meaning as defined under the respective
collective bargaining agreement.
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ARTICLE 10
MERGER OF METAL IMPROVEMENT COMPANY, INC. AND
CURTISS-WRIGHT FLIGHT SYSTEMS/SHELBY, INC.
CONTRIBUTORY RETIREMENT PLANS
10.01 Merger Date. On the Effective Date of this Plan, the METAL IMPROVEMENT
COMPANY, INC. RETIREMENT INCOME PLAN and CURTISS-WRIGHT FLIGHT SYSTEMS/SHELBY,
INC. CONTRIBUTORY RETIREMENT PLAN (herein after referred to individually as a
"Merged Plan" or collectively as "Merged Plans") were merged into the Plan. The
following provisions shall apply under the Plan to the individuals at METAL
IMPROVEMENT COMPANY, INC. and CURTISS-WRIGHT FLIGHT SYSTEMS/SHELBY, INC. who
were non-union Employees on the Effective Date or non-union Employees hired
after said date.
10.02 Eligibility.
(a) Notwithstanding any other provision of this Plan to the
contrary, a non-union Employee of either METAL IMPROVEMENT COMPANY, INC. or
CURTISS-WRIGHT FLIGHT SYSTEMS/SHELBY, INC. employed by said companies on August
31, 1994 shall become a Participant of this Plan on the Effective Date.
(b) Any future Employee of METAL IMPROVEMENT COMPANY, INC.
or CURTISS-WRIGHT FLIGHT SYSTEMS/SHELBY, INC. shall be eligible to
participate in the Plan as of the Entry Date coinciding with or
next following the date he completes his Year of Eligibility
Service.
10.03 Retirement Benefits.
(a) With respect to a "participant" in either of the Merged Plans
who retired, died, became disabled, or terminated Service with "vested benefits"
under either of the Merged Plans prior to September 1, 1994 (irrespective of
whether benefits have commenced as of that date), the Plan will pay to, or in
respect of, that "participant" the benefits provided under the applicable
section of the respective Merged Plan in accordance with the terms thereof (and
that person shall have no rights under the other terms of this Plan).
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(b) With respect to a Participant who satisfies the eligibility
requirements of Section 10.02 of the Plan, if he retires, dies, becomes disabled
or terminates Service on or after September 1, 1994, the Plan will pay to, or in
respect of, that Participant the benefits provided under Articles 4, 6 and 8 of
this Plan in accordance with Articles 4, 6, 7 and 8 of the Plan.
For purposes of determining a Participant's benefit under this
paragraph (b), references to Prior Plan in Article 6 of the Plan shall mean the
respective Merged Plan.
For purposes of Section 1.05 of the Plan, a Participant's
earnings with METAL IMPROVEMENT COMPANY, INC. or CURTISS-WRIGHT
FLIGHT SYSTEMS/ SHELBY, INC. prior to September 1, 1994 shall be
included in the calculation of Final Average Compensation.
(c) For purposes of determining a Participant's benefits under this
Article 10, a Participant shall be credited with his participation in the
respective Merged Plan as of August 31, 1994.
(d) Notwithstanding any provision in this Plan to the contrary, any
former participant under the METAL IMPROVEMENT COMPANY, INC. RETIREMENT INCOME
PLAN shall not qualify for a death benefit under Section 8.02 of the Plan.
10.04 Prior Accrued Benefit. Notwithstanding any other provision of this Plan to
the contrary, in respect of periods prior to August 31, 1994, a Participant who
was formerly covered under either of the Merged Plans shall be credited with an
accrued benefit under this Plan equal to his "retirement benefit" under the
respective Merged Plan as of August 31, 1994.
10.05 Vesting.
(a) With respect to a Participant who satisfies the eligibility
requirements of Section 10.02 of the Plan, he shall be vested in his retirement
benefits in accordance with Article 5 of the Plan.
(b) Notwithstanding the provisions of Article 5 of the Plan, the
vesting percentage of a Participant (who is described in (a) hereinabove and who
was a participant in either of the Merged Plans as of August 31, 1994) in his or
her retirement benefit shall not be less than the vesting percentage as provided
under the terms of the respective Merged Plan.
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(c) For purposes of Article 5 of the Plan, a Participant who is
described in (a) hereinabove shall receive vesting credit for his number of full
Years of Service under the terms of the respective Merged Plan as of August 31,
1994, and his number of Hours of Service for the period from January 1, 1994 to
August 31, 1994, to the extent credited for vesting purposes under the
respective Merged Plan as of August 31, 1994.
10.06 Transfer of Assets. As of a date fixed in accordance with law, the assets
held under the Merged Plans shall be transferred to the Trust Fund.
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ARTICLE 11
ADMINISTRATION
11.01 Plan Administrator. The President shall appoint a Committee. The Committee
shall consist of three (3) or more persons designated by the President. Members
of the Committee and its officers and agents may participate in the benefits
under this Plan if otherwise eligible to do so. The members of the Committee
shall serve at the pleasure of the President and the President shall appoint
succes sors to fill any vacancies in the Committee.
11.02 Committee's Authority and Powers. The Committee shall administer the Plan,
except where that part of the Plan is pursuant to a collectively bargained
agreement and in such case that agree ment shall govern the administration of
that part of the Plan. The Committee shall have the exclusive discretionary
authority and power to determine eligibility for benefits and to construe the
terms and provisions of the Plan, determine questions of fact and law arising
under the Plan, direct disbursements pursuant to the Plan, and exercise all
other powers specified herein or which may be implied from the provisions
hereof. The Committee may adopt such rules for the conduct of the administration
of the Plan as it may deem appropriate.
11.03 Delegation of Duties. The Committee may delegate such of its duties and
may engage such experts and other persons as it deems appropriate in connection
with administering the Plan.
11.04 Compensation. No member of the Committee shall receive any Compensation
for his services as such.
11.05 Exercise of Discretion. Any person with any discretionary power in the
administration of the Plan shall exercise such discretion in a nondiscriminatory
manner and shall discharge his duties with respect to the Plan in a manner
consistent with the provisions of the Plan and with the standards of fiduciary
conduct contained in Title I, Part 4, of ERISA.
11.06 Fiduciary Liability. In administering the Plan, neither the
Committee nor any member of the Committee nor any person to whom the Committee
delegates any duty or power in connection with administering the Plan shall be
liable, except in the case of his own willful misconduct, for:
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(a) any action or failure to act,
(b) the payment of any amount under the Plan,
(c) any mistake of judgment, or
(d) any neglect, omission or wrongdoing of any other member of
the Committee.
No member of the Committee shall be personally liable under any
contract, agreement, bond, or other instrument made or executed by him or on his
behalf as a member of the Committee.
11.07 Indemnification by Company. To the extent not compensated by insurance or
otherwise, the Company shall indemnify and hold harmless each member of the
Committee, and each partner and Employee of the Company designated by the
Committee to carry out any fiduciary responsibility with respect to the Plan,
from any and all claims, losses, damages, expenses (including counsel fees
approved by the Company) and liabilities (including any amount paid in
settlement with the approval of the Company), arising from any act or omission
of such member, or partner or Employee, except where the same is judicially
determined or is determined by the Company to be due to willful misconduct of
such member or Employee. No assets of the Plan may be used for any such
indemnification.
11.08 Plan Participation by Fiduciaries. No person who is a fiduciary with
respect to the Plan shall be precluded from becoming a Participant upon meeting
the requirements for eligibility.
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ARTICLE 12
AMENDMENT AND TERMINATION OF PLAN
12.01 Amendment. The Company may at any time and from time to time amend the
Plan by written instrument, provided, that:
(a) no amendment that affects the rights and obligations of the
Trustee shall be effective without the written consent of the Trustee, unless
such amendment is necessary for the qualification of the Plan under Section
401(a) of the Code or to avoid actual or potential liability of the Company with
respect to the Plan, including, without limitation, liability to make future
contribu tions;
(b) no amendment shall cause the Trust Fund to be used other than
for the exclusive benefit of Participants and their Beneficiaries;
(c) if any amendment changes the vesting provisions of the Plan,
within sixty (60) days after receiving written notice of such amendment (or such
longer period as may be prescribed by Code Section 411 or the regulations
promulgated thereunder), a Par ticipant who has completed at least three (3)
Years of Service may file with the Committee an election to have his vested
interest in his retirement benefit computed under the Plan's vesting provisions
as applicable to such Participant immediately prior to the amendment; and
(d) any party will be protected in assuming that this Agreement has
not been amended until such party has received written notice of the amendment.
No amendment to the Plan (including a change in the actuarial basis
for determining optional or early retirement benefits) shall be effective to the
extent that it has the effect of decreasing a Participant's retirement benefit.
Notwithstanding the preceding sentence, a Participant's retirement benefit may
be reduced to the extent permitted under Section 412(c)(8) of the Code. For
purposes of this paragraph, a Plan amendment which has the effect of eliminating
or reducing an early retirement benefit or a retirement-type subsidy; or
eliminating an optional form of benefit, with respect to benefits attributable
to Service before the amendment shall be treated as reducing retirement
benefits. In the case of a retirement-type subsidy, the preceding sentence shall
apply only with respect to a Participant who satisfies (either before or after
the amendment) the pre-amendment conditions for the subsidy. In general, a
retirement-type subsidy is a subsidy that continues after retirement, but does
not include a qualified disability benefit, a medical benefit, a social security
supple ment, a death benefit (including life insurance). Furthermore, if the
vesting schedule of a plan is amended, in the case of an Employee who is a
Participant as of the later of the date such amendment is adopted or becomes
effective, the nonforfeitable percentage (determined as of such date) of such
Employee's employer-derived retirement benefit will not be less than the
percentage computed under the Plan without regard to such amendment.
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12.02 Procedure for Amendment. Any modification or amendment of or to any or all
of the provisions of the Plan shall be made by a written resolution of either
the of the Company or the Committee referred to in Section 1.09 of the Plan,
which shall be delivered to the Trustee and, where required, to the Board of
Administra tion, as defined in the collective bargaining agreements referred to
herein.
12.03 Company's Right to Terminate Plan. The Company intends to maintain the
Plan as a permanent tax-qualified retirement plan. Nevertheless, the Company
reserves the right to terminate the Plan (in whole or in part) at any time and
from time to time, for any reason whatsoever.
12.04 Consequences of Termination.
(a) If the Plan is terminated in whole or in part, or if Company
contributions are completely discontinued, each Participant affected by such
termination or discontinuance shall be fully vested in his retirement benefit as
of the date of such termination or discontinuance of Company contributions. The
Committee shall determine the date and manner of distribution of the retirement
benefits of all affected Participants.
(b) The Committee shall give prompt notice to each Partici pant
(or, if deceased, his Beneficiary) affected by the Plan's complete or partial
termination, or the discontinuance of Company contributions.
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(c) The balance, if any, of the residual assets held by the Trust
Fund after all liabilities have been extinguished, shall revert to the Company,
but only after the satisfaction of liabili ties with respect to the Participants
under the Plan.
12.05 Early Termination Restrictions.
(a) In the event that (i) the Plan is terminated within ten (10)
years after the "Commencement Date" or (ii) the benefits provided for a
"Restricted Participant" become payable within ten (10) years after the
Commencement Date, the maximum amount of Company contributions that may be used
to provide benefits for a Restricted Participant may not exceed the largest of:
(i) Twenty Thousand Dollars ($20,000);
(ii) an amount equal to twenty (20%) percent of the first
$50,000 of a Restricted Participant's "Annual Compensation" multiplied by the
number of years between the Commencement Date and the date of termination of the
Plan, or between the Commencement Date and the date benefits become payable if
such date precedes termination of the Plan; or
(iii) in the event the Plan becomes subject to Title IV of
ERISA, an amount equal to the present value of the maximum benefit guaranteed
for the Participant by the Pension Benefit Guaranty Corporation as described in
Section 4022(b)(3) of ERISA. Such amount shall be determined on the earlier of
the date of termination of the Plan, or the date benefits to a Restricted
Participant become payable, in accordance with regulations issued by the Pension
Benefit Guaranty Corporation.
(d) In the event of a Plan termination, the benefit of any Highly
Compensated active or former Employee is limited to a benefit that is
nondiscriminatory under Section 401(a)(4) of the Code. Benefits distributed to
any of the twenty-five (25) most Highly Compensated active and former Employees
are restricted such that the annual payments are no greater than an amount equal
to the payment that would be made on behalf of the Employee under a single life
annuity that is the Actuarial Equivalent of the sum of the Employee's retirement
benefit and the Employee's other benefits under the Plan.
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The preceding paragraph shall not apply if after payment of the
benefit to an Employee described in the preceding paragraph, the value of Plan
assets equals or exceeds one hundred ten (110%) percent of the value of current
liabilities, as defined in Section 412(l)(7) of the Code, or the value of the
benefits for an Employee described above is less than one (1%) percent of the
value of current liabilities.
For purposes of this Section 12.05, benefit includes loans in
excess of the amount set forth in Section 72(p)(2)(A) of the Code, any periodic
income, any withdrawal values payable to a living Employee, and any death
benefits not provided for by insurance on the Employee's life.
(b) For purposes of this Section 12.05:
(i) "Annual Compensation" means annual average Compensation
for the period of five (5) consecutive Years of Service that produces the
highest average;
(ii) "Commencement Date" means the Original Effective Date, or
the effective date of any amendment to the Plan that substantially increases
benefits under the Plan, with a separate set of limitations to be determined as
of each such date; and
(iii) "Restricted Participant" means the Participant, if the
Participant's anticipated retirement benefit exceeds $1,500 and the Participant
is among the twenty-five (25) Participants entitled to the highest Annual
Compensation as of the Commencement Date.
(c) The foregoing limitations shall not restrict the payment of the
Participant's retirement benefit, if:
(i) in the case of annuity payments, the level amount
of annuity does not exceed the level amount of annuity payable
under the normal form of retirement benefit; or
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(ii) in the case of a lump sum distribution, a written
agreement between the Participant and the Trustee guarantees the repayment of
the distribution that would be restricted if the Plan were terminated within ten
(10) years after the Commencement Date. Such agreement shall require the
Participant to provide "adequate security" for the guaranteed repayment. For
purposes of this paragraph (c)(ii), "adequate security" means property having a
fair market value at least equal to one hundred twenty-five (125%) percent of
the amount subject to repayment that is deposited with an acceptable depository
under an agreement providing that if the market value of such property falls
below one hundred ten (110%) percent of the amount subject to repayment, the
Participant will deposit additional property necessary to bring the value of the
property held by the depository up to at least one hundred twenty-five (125%)
percent of such amount; or
(iii) in the case of termination of the Plan, Plan assets are
sufficient to pay each Participant who is not a Restricted Participant the full
amount of the Participant's retirement benefit accrued to the date of Plan
termination and to pay to each Restricted Participant the amount of the
retirement benefit as restricted by this Section 12.05.
(e) The foregoing limitations shall not restrict the payment of any
death benefit to any Beneficiary.
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ARTICLE 13
MERGER OF PLAN AND TRANSFER OF ASSETS OR LIABILITIES
13.01 Merger or Transfer. The Plan shall not be merged or consolidated with, nor
shall any Plan assets or liabilities be transferred to, any other plan, unless
each Participant (if the other plan then terminated) would receive a benefit
that is equal to or greater than the benefit he would have been entitled to
receive immediately before the merger, consolidation or transfer (if the Plan
had then terminated).
13.02 Transfer from Trust. At a Participant's request and pursuant to uniform
rules prescribed by the Committee, the Committee may instruct the Trustee to
transfer the Participant's Account to another qualified plan described in Code
Section 401(a) in which the Participant is participating at the time of such
transfer.
13.03 Transfer to Trust and Transfer Account.
(a) At a Participant's request, the Committee shall instruct the
Trustee to accept a transfer of assets from another qualified plan described in
Section 401(a) of the Code which assets are attributable to the Participant's
interest in such other plan. The transferred amount shall be maintained in the
Trust Fund on behalf of the Participant as a separate account under the Plan,
designated the "Transfer Account."
(b) Any portion of the Transfer Account (whether the whole, the
lesser amount or none) may be commingled with other assets of the Trust Fund for
investment. In any event, the balance in the Transfer Account shall be adjusted
to reflect its proportionate share of the Trust Fund's earnings, gains, losses
and expenses.
(c) Unless the Participant has elected otherwise in the form and
manner prescribed by the Committee, payment of the Transfer Account shall be
made at the same time and in the same form as the retirement benefit and shall
be in addition to the retirement benefit.
(d) A Participant's interest in his Transfer Account shall be at
all times and in all events fully vested and nonforfeitable.
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(e) The Participant's account will continue to retain all rights
and protections ascribed to it pursuant to Section 411(d)(6) of the Code.
ARTICLE 14
SPECIAL PROVISIONS FOR NON-KEY EMPLOYEES
14.01 Effective Date. If the Plan is or becomes top heavy in any Plan Year
beginning after December 31, 1983, the provisions of this Section will supersede
any conflicting provisions in the Plan.
14.02 Determination of Top-Heavy and Super Top-Heavy Status. This
Plan is top heavy if any of the following conditions exists:
(a) If the top-heavy ratio for this Plan exceeds sixty (60%)
percent and this Plan is not part of any required aggregation group or
permissive aggregation group of plans.
(b) If this Plan is a part of a required aggregation group of plans
but not part of a permissive aggregation group and the top-heavy ratio for the
group of plans exceeds sixty (60%) percent.
(c) If this Plan is a part of a required aggregation group and part
of a permissive aggregation group of plans and the top-heavy ratio for the
permissive aggregation group exceeds sixty (60%) percent.
Top-heavy ratio:
(a) If the Company maintains one or more defined benefit plans and
the Company has not maintained any defined contribution plans which during the
five (5) year period ending on the determi nation date(s) has or has had account
balances, the top-heavy ratio for this Plan alone or for the required or
permissive aggregation group as appropriate is a fraction, the numerator of
which is the sum of the present value of retirement benefits of all Key Employ
ees as of the determination date(s) (including any part of any retirement
benefits distributed in the five (5) year period ending on the determination
date(s), and the denominator of which is the sum of present value of retirement
benefits (including any part of any retirement benefits distributed in the five
(5) year period ending on the determination date(s)), both computed in
accordance with Section 416 of the Code and the regulations thereunder. Both the
numerator and denominator of the top-heavy ratio are increased to reflect any
contribution not actually made as of the determina tion date, but which is
required to be taken into account on that date under Section 416 of the Code and
regulations thereunder.
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(b) If the Company maintains one or more defined contri bution
plans and the Company maintains or has maintained one or more defined benefit
plans which during the five (5) year period ending on the determination date(s)
has or has had any retirement benefits, the top-heavy ratio for any required or
permissive aggregation group as appropriate is a fraction, the numerator of
which is the sum of account balances under the aggregated defined contribution
plan or plans for all Key Employees, determined in accordance with (a) above,
and the present value of retirement benefits under the aggregated defined
benefit plan or plans for all Key Employees as of the determination date(s), and
the denominator of which is the sum of the account balances under the aggregated
defined contribution plan or plans for all Participants, determined in
accordance with (a) above, and the present value of retirement benefits under
the defined benefit plan or plans for all Partici pants as of the determination
date(s), all determined in accordance with Section 416 of the Code and the
regulations thereunder. The retirement benefits under a defined benefit plan in
both the numerator and denominator of the top-heavy ratio are increased for any
distribution of a retirement benefit made in the five (5) year period ending on
the determination date.
(c) For purposes of (a) and (b) above the value of account balances
and the present value of retirement benefits will be determined as of the most
recent valuation date that falls within or ends with the twelve (12) month
period ending on the determina tion date, except as provided in Section 416 of
the Code and the regulations thereunder for the first and second Plan Years of a
defined benefit plan. The account balances and retirement benefits of a
Participant (1) who is not a Key Employee but who was a Key Employee in a prior
year, or (2) who has not been credited with at least one Hour of Service with
any Employer maintaining the Plan at any time during the five (5) year period
ending on the determi nation date will be disregarded. The calculation of the
top-heavy ratio, and the extend to which distributions, rollovers, and transfers
are taken into account will be made in accordance with Section 416 of the Code
and the regulations thereunder. Deductible employee contributions will not be
taken into account for purposes of computing the top-heavy ratio. When
aggregating plans the value of account balances and retirement benefits will be
calculated with reference to the determination dates that fall within the same
calendar year.
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The retirement benefit to a Participant other than a Key Employee
shall be determined under (a) the method, if any, that uniformly applies for
accrual purposes under all defined benefit plans maintained by the Company, or
(b) if there is no such method, as if such benefit accrued not more rapidly than
the slowest accrual rate permitted under the fractional rule of Section
411(b)(1)(c) of the Code.
Permissive aggregation group: The required aggregation group of
plans plus other plan or plans of the Company which, when considered as a group
with the required aggregation group, would continue to satisfy the requirements
of Sections 401(a)(4) and 410 of the Code.
Required aggregation group: (1) Each qualified plan of the Company
in which at least one Key Employee participates or par ticipated at any time
during the determination period (regardless of whether the Plan has terminated),
and (2) any other qualified plan of the Company which enables a plan described
in (1) to meet the requirements of Section 401(a)(4) or 410 of the Code.
Determination date: For any Plan Year subsequent to the first Plan
Year, the last day of the preceding Plan Year. For the first Plan Year of the
Plan, the last day of that year.
This Plan shall be a Super Top-Heavy Plan for any Plan Year
commencing after December 31, 1983, in which, as of the Determi nation Date, (1)
the Present Value of retirement benefits of Key Employees and (2) the sum of the
Aggregate Accounts of Key Employees under this Plan and all plans of an
Aggregation Group, exceeds ninety (90%) percent of the Present Value of
retirement benefits and the Aggregate Account of all Key and Non-Key Employees
under this Plan and all plans of an Aggregation Group.
14.03 Key Employee. Any Employee or former Employee (and the beneficiaries of
such Employee) who at any time during the determination period was an officer of
the Company if such individual's Annual Compensation exceeds fifty (50%) percent
of the dollar limitation under Section 415(b)(1)(A) of the Code, an owner (or
considered an owner under Section 318 of the Code) of one of the ten (10)
largest interests in the Company if such individual's Compensation exceeds one
hundred (100%) percent of the dollar limitation under Section 415(c)(1)(A) of
the Code, a five (5%) percent owner of the Company, or a one (1%) percent owner
of the Company who has an Annual Compensation of more than One Hundred Fifty
Thousand Dollars ($150,000). Annual Compensation means compensation as defined
in Section 415(c)(3) of the Code, but including amounts contributed by the
Company pursuant to a salary reduction agreement which are excludable from the
Employee's gross income under Section 125, Section 402(a)(8), Section 402(h) or
Section 403(b) of the Code. The determination date is the Plan Year containing
the determination date and the four (4) preceding Plan Years.
-100-
The determination of who is a Key Employee will be made in
accordance with Section 416(i)(1) of the Code and the regulations thereunder. A
Non-Key Employee means any Employee or former Employee (and his Beneficiaries)
who is not a Key Employee.
14.04 Minimum Benefit.
(a) Notwithstanding any other provision in this Plan to the
contrary, except as otherwise provided in Subsections (c), (d) and (e) of this
Section 14.04, a Participant who is not a Key Employee and has completed one
thousand (1,000) Hours of Service will accrue a benefit (to be provided solely
by Company contributions and expressed as a Life Annuity commencing at Normal
Retirement Age) of not less than two (2%) percent of his or her highest average
Com pensation for the five (5) consecutive years for which the Partic ipant had
the highest Compensation. The aggregate Compensation for the years during such
five (5) year period in which the Participant was credited with a Year of
Service will be divided by the number of years in order to determine average
Annual Compensation. The minimum accrual is determined without regard to any
Social Security contribution. The minimum accrual applies even though under
other Plan provisions the Participant would not otherwise be entitled to receive
an accrual, or would have received a lesser accrual for the year because (i) the
Non-Key Employee fails to make mandatory contributions to the Plan, (ii) the
Non-Key Employee's Compensation is less than a stated amount, (iii) the Non-Key
Employee is not employed on the last day of the accrual computation period, or
(iv) the Plan is integrated with Social Security.
-101-
(b) For purposes of computing the minimum retirement benefit,
Compensation shall mean Compensation as defined in Section 1.11 of the Plan.
(c) No additional benefit accruals shall be provided pur suant to
(a) above to the extent that the total accruals on behalf of the Participant
attributable to Company contributions will provide a benefit expressed as a Life
Annuity commencing as Normal Retirement Age that equals or exceeds twenty (20%)
percent of the Participant's highest average Compensation for the five (5)
consec utive years for which the Participant had the highest Compensation.
(d) The provision in Subsection (a) of this Section 14.04 shall not
apply to any Participant to the extent the Participant is covered under any
other plan or plans of the Company. Such other plan or plans must provide a
minimum two (2%) percent top-heavy Benefit Accrual or a five (5%) percent
top-heavy contribution.
(e) All accruals of employer-derived benefits, whether or not
attributable to years for which the Plan is top heavy, may be used in computing
whether the minimum accrual requirements of Subsection (c) of this Section 14.04
are satisfied.
14.05 Minimum Vesting. For any Plan Year in which this Plan is top heavy, the
following vesting schedule shall automatically apply to this Plan. The vesting
schedule applies to all benefits within the meaning of Section 411(a)(7) of the
Code except those attribut able to employee contributions, including benefits
accrued before the effective date of Section 416 and benefits accrued before the
Plan became top heavy. Further, no reduction in vested benefits may occur in the
event the Plan's status as top heavy changes for any Plan Year. However, this
Section does not apply to the account balances of any Employee who does not have
an Hour of Service after the Plan has initially become top heavy and such
Employee's account balance attributable to Company contributions and forfeitures
will be determined without regard to this Section.
VESTING NONFORFEITABLE
YEARS OF SERVICE PERCENTAGE OF ACCOUNT
Less than 3 0%
3 or more 100%
-102-
ARTICLE 15
GENERAL PROVISIONS
15.01 Trust Fund Sole Source of Payments for Plan. The Trust Fund shall be the
sole source for the payment of all Participant's retirement benefits. In no
event shall assets of the Company be applied for the payment of Plan benefits.
15.02 Exclusive Benefit. The Plan is established for the exclu sive benefit of
the Participants and their Beneficiaries, and the Plan shall be administered in
a manner consistent with the pro visions of Section 401(a) of the Code and of
ERISA.
15.03 Binding Effect. This Agreement shall be binding upon the heirs, executors,
administrators, successors and assigns of the parties to this Agreement and upon
any and all persons interested in this Agreement, presently or in the future.
15.04 Nonalienation. Except as is permitted under Section 401(a) (13) of the
Code in the case of a qualified domestic relations order as defined in Section
414(p) of the Code, no Participant or Beneficiary shall have the right to
alienate or assign his benefits under the Plan, and no Plan benefits shall be
subject to attach ment, execution, garnishment, or other legal or equitable
process. If a Participant or his Beneficiary attempts to alienate or assign his
benefits under the Plan, or if his property or estate should be subject to
attachment, execution, garnishment or other legal or equitable process, the
Committee may direct the Trustee to distribute the Participant's (or
Beneficiary's) benefits under the Plan to members of his family, or may use or
hold such benefits for his benefit or for the benefit of members of his family
as the Committee deems appropriate under the circumstances.
15.05 Claims Procedure. All claims for benefits under the Plan by a Participant
not covered under a collective bargaining agreement or his Beneficiary with
respect to benefits not received by such person shall be made in writing to the
Committee, which shall designate one of its members to review such claims. If
the reviewing member believes that a claim should be denied, he shall notify the
claimant in writing of the denial within ninety (90) days after his receipt of
the claim, unless special circumstances require an extension of time for
processing the claim. Such notice shall:
-103-
(a) set forth the specific reasons for the denial, making reference
to the pertinent provisions of the Plan or the Plan documents on which the
denial is based;
(b) describe any additional material or information that should be
received before the claim may be acted upon favorably, and explain why such
material or information, if any, is needed; and
(c) inform the person making the claim of his right pur suant to
this Section to request review of the decision by the Committee.
Any such person who believes that he has submitted all available
and relevant information may appeal the denial of a claim to the Committee by
submitting a written request for review to the Committee within sixty (60) days
after the date on which such denial is received. Such period may be extended by
the Committee for good cause. The person making the request for review may
examine pertinent Plan documents. The request for review may discuss any issues
relevant to the claim. The Committee shall decide whether or not to grant the
claim within sixty (60) days after receipt of the request for review, but this
period may be extended by the Committee for up to an additional sixty (60) days
in special circumstances. If such an extension of time for review is required
because of special circumstances, written notice of the extension shall be
furnished to the claimant prior to the commencement of the extension. The
Committee's decision shall be in writing, shall include specific reasons for the
decision and shall refer to pertinent provisions of the Plan or of the Plan
documents on which the decision is based.
All claims for benefits under the Plan by a Participant covered
under a collective bargaining agreement, or his Benefi ciary, who has been
denied a benefit, or feels aggrieved by any other act of the Board of
Administration, shall be entitled to request a hearing before the Board of
Administration of the Plan. Such request, together with a written statement of
the claimant's position, shall be filed with the Board of Administration no
later than ninety (90) days after receipt of the written notification. The Board
of Administration shall schedule an opportunity for a full and fair hearing of
the issue within the next sixty (60) days. The decision following such hearing
shall be made within sixty (60) days and shall be communicated in writing to the
claimant. The decision of the Board of Administration shall be final and binding
upon all parties concerned. In the event the Board of Administration cannot
reach a majority decision, an impartial chairman shall be appointed by the Board
of Administration.
-104-
15.06 Location of Participant or Beneficiary Unknown. In the event that all, or
any portion, of the distribution payable to a Participant or his Beneficiary
hereunder shall, at the expiration of five (5) years after it shall become
payable, remain unpaid solely by reason of the inability of the Committee, after
sending a registered letter, return receipt requested, to the last known
address, and after further diligent effort, to ascertain the where abouts of
such Participant or his Beneficiary, the amount so dis tributable shall be
forfeited and shall be used to reduce the cost of the Plan. In the event a
Participant or Beneficiary is located subsequent to his benefit being forfeited,
such benefit shall be restored.
15.07 Applicable Law. Except as otherwise expressly required by ERISA, this
Agreement shall be governed by the laws of the State of New Jersey, where it was
entered into and where it shall be enforced.
15.08 Rules of Construction. Whenever the context so admits, the use of the
masculine gender shall be deemed to include the feminine and vice versa; either
gender shall be deemed to include the neuter and vice versa; and the use of the
singular shall be deemed to include the plural and vice versa.
-105-
IN WITNESS WHEREOF, the Company has caused this instrument
to be executed by an officer duly authorized on this 30th day of
December, 1994.
ATTEST: CURTISS-WRIGHT CORPORATION
/s/ D M Taylor By: /s/ David Lasky
- ---------------------- -----------------------
, Secretary David Lasky, President
-106-
SCHEDULE A
CURTISS-WRIGHT CORPORATION RETIREMENT PLAN
EARLY RETIREMENT FACTORS on or AFTER 9/1/94
ALL RETIREES and TERMINATED NON-UNION EMPLOYEES on and AFTER 9/1/94
AGE 55 56 57 58 59 60 61 62 63 64
===== ======== ======= ======= ======= ======= ======= ======= ======== ======= ========
0/12 .75000 .78000 .81000 .84000 .87000 .90000 .92000 .94000 .96000 .98000
1/12 .75250 .78250 .81250 .84250 .87250 .90167 .92167 .94167 .96167 .98167
2/12 .75500 .78500 .81500 .84500 .87500 .90333 .92333 .94333 .96333 .98333
3/12 .75750 .78750 .81750 .84750 .87750 .90500 .92500 .94500 .96500 .98500
4/12 .76000 .79000 .82000 .85000 .88000 .90667 .92667 .94667 .96667 .98667
5/12 .76250 .79250 .82250 .85250 .88250 .90833 .92833 .94833 .96833 .98833
6/12 .76500 .79500 .82500 .85500 .88500 .91000 .93000 .95000 .97000 .99000
7/12 .76750 .79750 .82750 .85750 .88750 .91167 .93167 .95167 .97167 .99167
8/12 .77000 .80000 .83000 .86000 .89000 .91333 .93333 .95333 .97333 .99333
9/12 .77250 .80250 .83250 .86250 .89250 .91500 .93500 .95500 .97500 .99500
10/12 .77500 .80500 .83500 .86500 .89500 .91667 .93667 .95667 .97667 .99667
11/12 .77750 .80750 .83750 .86750 .89750 .91833 .93833 .95833 .97833 .99833
Rule of 80
If the sum of your age and years of credited service exceed 80, 1% will
be added to your early retirement factor. No more than 100% of your
benefit will be payable.
-ii-
SCHEDULE B
RETIREMENT PLAN RATES RATES CURRENTLY IN FORCE
BUFFALO FACILITY
$ 8.00 per month per year of credited service prior to 1/1/78 $10.00 per month
per year of credited service from 1/1/78 thru 11/1/80 $11.00 per month per year
of credited service from 11/2/80 thru 11/1/81 $12.00 per month per year of
credited service from 11/2/81 thru 5/3/85 $13.00* per month per year of credited
service from 5/4/85 thru 7/23/93 $17.00* per month per year of credited service
from 7/24/93
FLIGHT SYSTEMS
$ 6.25 per month per year of credited service
TARGET ROCK
$ 9.00 per month per year of credited service prior to 5/l/77 $10.00 per month
per year of credited service from 5/1/77 thru 4/30/81 $11.00 per month per year
of credited service from 5/1/81 thru 5/4/82 $12.00 per month per year of
credited service from 5/5/82 thru 5/6/84 $13.00 per month per year of credited
service from 5/7/84 thru 5/5/85 $14.00 per month per year of credited service
from 5/6/85 thru 5/4/86 $15.00 per month per year of credited service from
5/5/86
CORPORATE
$10.00 per month per year of credited service
*Does not apply to Local 212
SCHEDULE C
CURTISS-WRIGHT CORPORATION RETIREMENT PLAN
EARLY RETIREMENT FACTORS
EARLY RETIREMENT FACTORS for DEFERRED VESTED EMPLOYEES
WHO LEFT EMPLOYMENT PRIOR to 9/1/94 and PRIOR to AGE 55 (CONTRIBUTORS)
AGE 55 56 57 58 59 60 61 62 63 64
====== ======= ======= ======= ======= ======= ======= ======= ======= ======= =========
0/12 .50000 .53333 .56667 .60000 .63333 .66667 .73333 .80000 .86667 .93333
1/12 .50278 .53611 .56945 .60278 .63611 .67222 .73889 .80556 .87222 .93889
2/12 .50556 .53889 .57222 .60556 .63889 .67778 .74444 .81111 .87778 .94444
3/12 .50833 .54167 .57500 .60833 .64167 .68333 .75000 .81667 .88333 .95000
4/12 .51111 .54445 .57778 .61111 .64445 .68889 .75556 .82222 .88889 .95556
5/12 .51389 .54722 .58056 .61389 .64722 .69444 .76111 .82778 .89444 .96111
6/12 .51667 .55000 .58333 .61667 .65000 .70000 .76667 .83333 .90000 .96667
7/12 .51944 .55278 .58611 .61944 .65278 .70556 .77222 .83889 .90556 .97222
8/12 .52222 .55556 .58889 .62222 .65556 .71111 .77778 .84444 .91111 .97778
9/12 .52500 .55833 .59167 .62500 .65833 .71667 .78333 .85000 .91667 .98333
10/12 .52778 .56111 .59444 .62778 .66111 .72222 .78889 .85556 .92222 .98889
11/12 .53056 .56389 .59722 .63056 .66389 .72778 .79444 .86111 .92778 .99444
-iii-
SCHEDULE D
THE CURTISS-WRIGHT CORPORATION RETIREMENT PLAN
for COMMENCEMENT of all DEFERRED PENSIONS ONLY
EFFECTIVE DATE of FACTOR SEPTEMBER 30, 1965
AGE of RETIRED EMPLOYEE
------------------------------------------------------------------------------------------------------------------
TWELFTHS OF 55 56 57 58 59 60 61 62 63 64
YEAR
0/12 28.0% 35.2% 42.4% 49.6% 56.8% 64.0% 71.2% 78.4% 85.6% 92.8%
1/12 28.6 35.8 43.0 50.2 57.4 64.6 71.8 79.0 86.2 93.4
2/12 29.2 36.4 43.6 50.8 58.0 65.2 72.4 79.6 86.8 94.0
3/12 29.8 37.0 43.2 51.4 58.6 65.8 73.0 80.2 87.4 94.6
4/12 30.4 37.6 44.8 52.0 59.2 66.4 73.6 80.8 88.0 95.2
5/12 31.0 38.2 45.4 52.6 59.8 67.0 74.2 81.4 88.6 95.8
6/12 31.6 38.8 46.0 53.2 60.4 67.6 74.8 82.0 89.2 96.4
7/12 32.2 39.4 46.6 53.8 61.0 68.2 75.4 82.6 89.8 97.0
8/12 32.8 40.0 47.2 54.4 61.6 68.8 76.0 83.2 90.4 97.6
9/12 33.4 40.6 47.8 55.0 62.2 69.4 76.6 83.8 91.0 98.8
10/12 34.0 41.2 48.4 55.6 62.8 70.0 77.2 84.4 91.6 98.8
11/12 34.6 41.8 49.0 56.2 63.4 70.6 77.8 85.0 92.2 99.4
NOTE:
Factors are for non-union non-contributors who terminated employment
prior to 9/1/94 and prior to attaining age 55; factors are for union
employees who terminate prior to age 55.
-iv-
SCHEDULE E
JOINT and BENEFICIARY FACTORS
(Partial List of Factors)
PENSIONER BENEFICIARY
- ----------------- ------------------
MEN WOMEN MEN WOMEN 100% 50% 75% 66%
========= ======= ========= ======= ================= ================= ================= ================
65 0 0 35 0.6491 0.7872 0.7115 0.7350
65 0 0 36 0.6518 0.7892 0.7139 0.7373
65 0 0 37 0.6546 0.7912 0.7164 0.7397
65 0 0 38 0.6575 0.7934 0.7191 0.7423
65 0 0 39 0.6607 0.7956 0.7219 0.7449
65 0 0 40 0.6640 0.7981 0.7249 0.7477
65 0 0 41 0.6675 0.8006 0.7280 0.7507
65 0 0 42 0.6711 0.8032 0.7312 0.7537
65 0 0 43 0.6749 0.8059 0.7347 0.7569
65 0 0 44 0.6790 0.8088 0.7382 0.7603
65 0 0 45 0.6832 0.8117 0.7419 0.7638
65 0 0 46 0.6876 0.8148 0.7458 0.7675
65 0 0 47 0.6922 0.8181 0.7499 0.7713
65 0 0 48 0.6969 0.8214 0.7541 0.7753
65 0 0 49 0.7019 0.8249 0.7585 0.7794
65 0 0 50 0.7072 0.8285 0.7630 0.7836
65 0 0 51 0.7125 0.8321 0.7677 0.7881
65 0 0 52 0.7182 0.8359 0.7726 0.7926
65 0 0 53 0.7239 0.8399 0.7776 0.7973
65 0 0 54 0.7299 0.8438 0.7828 0.8021
65 0 0 55 0.7361 0.8480 0.7881 0.8071
65 0 0 56 0.7424 0.8521 0.7935 0.8122
65 0 0 57 0.7490 0.8565 0.7991 0.8174
65 0 0 58 0.7557 0.8609 0.8048 0.8227
65 0 0 59 0.7626 0.8653 0.8107 0.8282
65 0 0 60 0.7697 0.8699 0.8167 0.8337
65 0 0 61 0.7769 0.8744 0.8227 0.8393
65 0 0 62 0.7842 0.8790 0.8289 0.8450
65 0 0 63 0.7917 0.8837 0.8352 0.8508
65 0 0 64 0.7993 0.8884 0.8415 0.8566
65 0 0 65 0.8070 0.8931 0.8479 0.8624
65 0 0 66 0.8147 0.8979 0.8543 0.8683
65 0 0 67 0.8225 0.9026 0.8607 0.8742
65 0 0 68 0.8302 0.9073 0.8671 0.8801
65 0 0 69 0.8380 0.9118 0.8734 0.8858
65 0 0 70 0.8458 0.9164 0.8797 0.8916
65 0 0 71 0.8535 0.9210 0.8859 0.8973
65 0 0 72 0.8611 0.9254 0.8920 0.9029
65 0 0 73 0.8687 0.9297 0.8982 0.9084
65 0 0 74 0.8761 0.9339 0.9041 0.9138
65 0 0 75 0.8834 0.9381 0.9099 0.9191
-vi-
SCHEDULE F
THE CURTISS-WRIGHT CORPORATION RETIREMENT PLAN
EARLY RETIREMENT - % of NORMAL PENSION
PAYABLE at EARLY RETIREMENT DATE*
EFFECTIVE DATE of FACTOR SEPTEMBER 30, 1965
UNION EMPLOYEES
AGE of RETIRED EMPLOYEE
------------------------------------------------------------------------------------------------
TWELFTHS OF 55 56 57 58 59 60 61 62 63 64
YEAR
0/12 58.00% 63.40% 68.80% 74.20% 79.60% 85.00% 88.00% 91.00% 94.00% 97.00%
1/12 58.45 63.85 69.25 74.65 80.05 85.25 88.25 91.25 94.25 97.25
2/12 58.90 64.30 69.70 75.10 80.50 85.50 88.50 91.50 94.50 97.50
3/12 59.35 64.75 70.15 75.55 80.95 85.75 88.75 91.75 94.75 97.75
4/12 59.80 65.20 70.60 76.00 81.40 86.00 89.00 92.00 95.00 98.00
5/12 60.25 65.65 71.05 76.45 81.85 86.25 89.25 92.25 95.25 98.25
6/12 60.70 66.10 71.50 76.90 82.30 86.50 89.50 92.50 95.50 98.50
7/12 61.15 66.55 71.95 77.35 82.75 86.75 89.75 92.75 95.75 98.75
8/12 61.60 67.00 72.40 77.80 83.20 87.00 90.00 93.00 96.00 99.00
9/12 62.05 67.45 72.85 78.25 83.65 87.25 90.25 93.25 96.25 99.25
10/12 62.50 67.90 73.30 78.70 84.10 87.50 90.50 93.50 96.50 99.50
11/12 62.95 68.35 73.75 79.15 84.55 87.75 90.75 93.75 96.75 99.75
*NOTE:
Early Retirement Pensions calculated per this table are subject to an
increase of 2/10 of 1% for each 1/10 year of credited service in excess
of 20.0 years up to a maximum increase of 30% provided, however, that
the total Early Retirement Pension shall not be an amount greater than
the normal pension.
-vii-
SCHEDULE G
WOOD-RIDGE DEFERRED PENSION RATES
The monthly amount of such deferred pension commencing at age 65 for an
employee eligible therefore in accordance with paragraph 13 shall be as
follows:
1.For any such employee whose loss of credited service is prior to September 30,
1962, $2.25 multiplied by his years of credited service.
2.For any such employee whose loss of credited service is on or after September
30, 1962 and prior to September 30, 1965, $2.75 multiplied by his years of
credited service.
3.For any such employee whose loss of credited service is on or after September
30, 1965 and prior to September 30,1968, $4.25 multiplied by his years of
credited service.
4.For any such employee whose loss of credited service is on or after September
30, 1968 and prior to September 30, 1969i $5.25 multiplied by his years of
credited service.
5.For any such employee whose loss of credited service is on or after September
309 1969 and prior to September 30, 19709 $5.75 multiplied by his years of
credited service.
6.For any such employee whose loss of credited service is on or after September
30, 1970 and prior to September 30,1971, $6.25 multiplied by his years of
credited service.
7.For any such employee whose credited service was with the Wood-Ridge or
Nuclear Facilities and whose loss of credited service is on or after September
30, 1971 and prior to September 30, 1974, $8.00 multiplied by his years of
credited service.
8.For any such employee whose credited service was with the Wood-Ridge or
Nuclear Facilities and whose loss of credited service is on or after September
30, 1974 and prior to September 30, 1976, $9.00 multiplied by his years of
credited service.
9.For any such employee whose credited service was with the Wood-Ridge or
Nuclear Facilities and whose loss of credited service is on or after September
30, 1976, $10.00 multiplied by his years of credited service.
SCHEDULE G
BUFFALO DEFERRED PENSION RATES
The monthly amount of such deferred pension commencing at age 65 for an employee
eligible therefore in accordance with paragraph 13 shall be as follows:
1 For any such employee whose loss of credited service is prior to
September 30, 1962, $2.25 multiplied by his years of credited service.
2. For any such employee whose loss of credited service is on or after
September 30, 1962 and prior to September 30,1965, $2.75 multiplied by
his years of credited service.
3. For any such employee whose loss of credited service is on or after
September 30, 1965 and prior to September 30,1968, $4.25 multiplied by
his years of credited service.
4. For any such employee whose loss of credited service is on or after
September 30, 1968 and prior to September 30,1969, $5.25 multiplied by
his years of credited service.
5. For any such employee whose loss of credited service is on or after
Ser)tember 30, 1969 and prior to September 30,1970, $5.75 multiplied by
his years of credited service.
6. For any such employee whose loss of credited service is on or after
September 30, 1970 and prior to September 30,1971, $6.25 multiplied by
his years of credited service.
7. For any such employee whose credited service was with the Buffalo
Facility and whose loss of credited service is either:
a. On or after September 30, 1971 and prior to September 30, 1973, the sum
of $6.25 multiplied by his years of credited service prior to January
1, 1972 and $7.00 multiplied by his years of credited service on or
after January 1 1972;
b. On or after September 30, 1973, the sum of $6.50 multiplied by his
years of credited service prior to January 1, 1972 and $7.00 multiplied
by his years of credited service on or after January 1, 1972;
c. On or after September 30, 1974, the sum of $7.00 multiplied by his
years of credited service prior to January 1, 1972 and $8.00 multiplied
by his years of credited service on or after January 1, 1972;
d. On or after September 30, 1975, $8.00 multiplied by his years
of credited service;
e. On or after October 31, 1977 and prior to October 30, 1978, the sum of
$8.00 multiplied by his years of credited service prior to January 1,
1978 and $9.00 multiplied by his years of credited service on and after
January 11 1978; or
f. On or after October 31, 1978 and prior to November 2, 1980, the sum of
$8.00 multiplied by his years of credited service prior to January 1,
1978 and $1 0.00 multiplied by his years of credited service on and
after January 1, 1978; or
g. On or after November 2, 1980, the sum of
$8.00 multiplied by his years of credited service prior to
January 1, 1978; and
$10.00 multiplied by his years of credited service prior to
January 1 p 1978 through November 1, 1980; and
$11.00 multiplied by his years of credited service from
November 2, 1980 through November 1, 1981; and
$12.00 multiplied by his years of credited service from
November 2, 1981 through May 3, 1985; and
$13.00 multiplied by his years of credited service from May
4,1985 through July 23, 1993; and
$17.00 multiplied by his years of credited service on and
after July 24,1993.
CURTISS-WRIGHT FLIGHT SYSTEMS SCHEDULE G
DEFERRED PENSION RATES
The monthly amount of such deferred pension commencing at age 65 for an employee
eligible therefore in accordance with paragraph 14 shall be as follows:
1 For any such employee whose loss of credited service is prior to
September 30, 1962, $2.25 multiplied by his years of credited service.
2. For any such employee whose loss of credited service is on or after
September 30, 1962 and prior to September 30, 1965, $2.75 multiplied by
his years of credited service.
3. For any such employee whose loss of credited service is on or after
September 30, 1965 and prior to September 30, 1968, $4.25 multiplied by
his years of credited service.
4. For any such employee whose loss of credited service is on or after
September 309 1968 and prior to September 30, 1969, $5.25 multiplied by
his years of credited service.
5. For any such employee whose loss of credited service is on or after
September 309 1969 and prior to September 30, 1970, $5.75 multiplied by
his years of credited service.
6. For any such employee whose loss of credited service is on or after
September 30, 1970 and prior to September 30, 1971, $6.25 multiplied by
his years of credited service.
7. For any such employee whose loss of credited service is on or after
September 30, 1971, $6.25 multiplied by his years of credited service.
SCHEDULE G
TARGET ROCK CORPORATION
DEFERRED PENSION RATES
The monthly amount of such deferred pension commencing at age 65 for an employee
eligible therefore in accordance with paragraph 14 shall be as follows:
1. For any such employee whose loss of credited service is on or after
June 1, 1967 and prior to September 30, 1968, $4.25 multiplied by his
years of credited service.
2. For any such employee whose loss of credited service is on or after
September 30, 1968 and prior to September 30, 1969, $5.25 multiplied by
his years of credited service.
3. For any such employee whose loss of credited service is on or after
September 30, 1969 and prior to September 30, 1970, $5.25 multiplied by
his years of credited service.
4. For any such employee whose loss of credited service is on or after
September 30, 1970 and prior to September 30, 1971, $6.25 multiplied by
his years of credited service.
5. For any such employee whose credited service was at the Target Rock
Corporation and whose loss of credited service is on or after September
30, 1971, and prior to June 1, 1975, $8.00 multiplied by his years of
credited service.
6. For any such employee whose credited service was at the Target Rock
Corporation and whose loss of credited service is on or after June 1,
1975, and prior to May 1, 1977, $9.00 multiplied by his years of
credited service.
7. For any such employee whose credited service was with Target Rock
Corporation and whose loss of credited service is on or after May 1,
1977, the sum of:
$9.00 multiplied by his years of credited service prior to May
1, 1977;
$10.00 multiplied by his years of credited servicefrom May 1,
1977 to May 1, 1981;
$11.00 multiplied by his years of credited service from May
1, 1981 to May 1, 1982;
$12.00 multiplied by his years of credited service from May 1,
1982 to May 1 1984;
$13.00 multiplied by his years of credited service from May 1,
1984 to May 1 1985;
$14.00 multiplied by his years of credited service from May 1,
1985 to May 1, 1986;
$15.00 multiplied by his years of credited service on or after
May 1, 1986.
Schedule H
Buffalo employees:
Bronzino, P.
1,657.92
Fennell, J.
3,021.00
Knox, D.
31,811.00
Niemczycki, J.
2,332.00
Osborn, D.
9,167.00
Sorrentino, W.
8,552.50