Exhibit (10)(d)* to Report
on Form 10-K for Fiscal
Year Ended June 30, 1995
by Parker-Hannifin Corporation
Parker-Hannifin Corporation Supplemental Executive
Retirement Benefits Program (July 16, 1992 Restatement),
as amended as of August 17, 1995
*Numbered in accordance with Item 601 of Regulation S-K.
Parker-Hannifin Corporation
Supplemental Executive
Retirement Benefits Program
TABLE OF CONTENTS
Section Page
Premises. . . . . . . . . . . . . . . . . . . . . . . . .1
Definitions . . . . . . . . . . . . . . . . . . . . . . 1
Participation . . . . . . . . . . . . . . . . . . . . . 5
Participants . . . . . . . . . . . . . . . . . .5
Designation of Participants. . . . . . . . . . .5
Continuation of Participation. . . . . . . . . .5
Effect of Termination of Employment. . . . . . .6
Supplemental Retirement Benefits. . . . . . . . . . . . .6
Eligibility at or After Normal
Retirement . . . . . . . . . . . . . . . . .6
Eligibility Prior to Normal
Retirement Date. . . . . . . . . . . . . . .6
Amount of Supplemental
Retirement Benefits. . . . . . . . . . . . .7
Payments of Benefits. . . . . . . . . . . . . . . . . . 10
Commencement of Benefits . . . . . . . . . . . 10
Payments Under Certain Situations. . . . . . . 10
Optional Methods of Payment. . . . . . . 10
Payment Upon a Change in
Control . . . . . . . . . . . . . . . 10
Election to Receive a Lump
Sum Payment . . . . . . . . . . . . . 11
Certain Matters Following a
Lump Sum Payment. . . . . . . . . . . 11
Determination of the Lump Sum
Payment. . . . . . . . . . . . . . . . . . 12
Death Benefits. . . . . . . . . . . . . . . . . . . . . 12
Eligibility . . . . . . . . . . . . . . . . . 12
Benefit Amount. . . . . . . . . . . . . . . . 12
Benefit Payments. . . . . . . . . . . . . . . 13
Non-Competition . . . . . . . . . . . . . . . . . . . . 13
Condition of Payment. . . . . . . . . . . . . 13
Competition . . . . . . . . . . . . . . . . . 13
Cessation of Payments . . . . . . . . . . . . 14
General Provisions. . . . . . . . . . . . . . . . . . . 14
Denial of Claims. . . . . . . . . . . . . . . 14
Claims Review Procedure . . . . . . . . . . . 14
Rights of Participants. . . . . . . . . . . . 15
Administration. . . . . . . . . . . . . . . . 16
Program Non-Contractual . . . . . . . . . . . 16
Non-Alienation of Retirement
Rights or Benefits . . . . . . . . . . . . 16
Payment of Benefits to Others . . . . . . . . 16
Notices . . . . . . . . . . . . . . . . . . . 17
Amendment, Modification, Termination. . . . . 17
Parker-Hannifin Corporation
Supplemental Executive
Retirement Benefits Program
WHEREAS, by instrument effective as of January 1, 1980, a supplemental
executive retirement benefits program was established for the benefit of
certain employees of Parker-Hannifin Corporation and their beneficiaries; and
WHEREAS, said Program was amended from time to time; and
WHEREAS, it is desired to restate the terms, provisions, and
conditions of said Program;
NOW, THEREFORE, effective as of August 17, 1995, said Program is
hereby amended and restated in its entirety to provide as hereinafter set
forth.
1. Definitions
Except as otherwise required by the context, the terms used in this
Program shall have the meaning hereinafter set forth.
(a) Benefit Payment Period. The one of the following which
applies to the particular Participant or Recipient:
(i) For a Recipient who is receiving payments for the
remainder of a term certain period, Benefit Payment Period means the
remainder of such term certain period.
(ii) For a Participant who is to receive a Lump Sum Payment
pursuant to subparagraph (b) of Paragraph 4.02, or a Recipient who is
receiving payments for his or her remaining lifetime, the Benefit
Payment Period is the Life Expectancy of the Participant or
Recipient.
(iii) For a Recipient who is receiving payments for his or
her remaining lifetime plus payments for the lifetime of a Contingent
Annuitant, the Benefit Payment Period is the Life Expectancy of the
Recipient plus an additional period to reflect the Life Expectancy of
the Contingent Annuitant after the death of the Recipient.
(b) Change in Control: Any one or more of the following
occurrences:
(i) any "person" (as such term is defined in Section
3(a)(9) of the Securities Exchange Act of 1934 (the "Exchange Act")
and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is
or becomes a "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing 20%
1
or more of the combined voting power of the Company's then outstanding
securities eligible to vote for the election of the Board of Directors
of the Company (the "Company Voting Securities"); provided, however,
that the event described in this paragraph shall not be deemed to be a
Change in Control by virtue of any of the following situations: (A) an
acquisition by the Company or, direct or indirect, majority-owned
subsidiaries of the Company; (B) an acquisition by any employee benefit
plan sponsored or maintained by the Company or any corporation controlled
by the Company; (C) an acquisition by any underwriter temporarily holding
securities pursuant to an offering of such securities; (D) a Non-Control
Transaction (as defined in paragraph (iii)); (E) any acquisition by one
or more of the officers who have "change in control" contracts with the
Company; or (F) the acquisition of Company Voting Securities from the
Company, if a majority of the Board of Directors of the Company approves
a resolution providing expressly that the acquisition pursuant to this
clause (F) does not constitute a Change in Control under this
paragraph (i);
(ii) individuals who, at the beginning of any period of
twenty-four (24) consecutive months, constitute the Board of
Directors of the Company (the "Incumbent Board") cease for any reason
to constitute at least a majority thereof, provided that any person
becoming a director subsequent to the beginning of such twenty-four
(24) month period, whose election, or nomination for election, by the
Company's shareholders was approved by a vote of at least two-thirds
of the directors comprising the Incumbent Board (either by a specific
vote or by approval of the proxy statement of the Company in which
such person is named as a nominee for director, without objection to
such nomination) shall be, for purposes of this paragraph (ii),
considered as though such person were a member of the Incumbent
Board; provided, however, that no individual initially elected or
nominated as a director of the Company as a result of an actual or
threatened election contest with respect to directors or any other
actual or threatened solicitation of proxies or consents by or on
behalf of any person other than the Board of Directors shall be
deemed to be a member of the Incumbent Board;
(iii) a merger or consolidation or similar form of corporate
reorganization, or sale or other disposition of all or substantially
all of the assets, of the Company (a "Business Combination") is
consummated, unless immediately following such Business Combination:
(A) more than 55% of the total voting power of the corporation
resulting from such Business Combination (including, without
limitation, for purposes of making such 55% determination, any shares
owned through any entity which directly or indirectly has beneficial
ownership of the Company Voting Securities or all or substantially
all of the Company's assets) eligible to elect directors of such
corporation is represented by shares held by shareholders of the
Company immediately prior to such Business Combination (either by
remaining outstanding or being converted); (B) no person (other than
any holding company resulting from such Business Combination, any
employee benefit plan sponsored or maintained by the Company (or the
corporation resulting from such Business Combination), or any person
which beneficially owned, immediately prior to such Business
Combination, directly or indirectly, 20% or more of the Company
Voting Securities)
2
becomes the beneficial owner, directly or indirectly, of 20% or more
of the total voting power of the outstanding voting securities eligible
to elect directors of the corporation resulting from such Business
Combination; and (C) at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination
were members of the Incumbent Board at the time of the execution of the
initial agreement, or action of the Board of Directors, providing for
such Business Combination (a "Non-Control Transaction"); or
(iv) the stockholders of the Company approve a plan of
complete liquidation or dissolution of the Company.
Notwithstanding the foregoing, a Change in Control shall not be deemed
to occur solely because any person acquires beneficial ownership of more than
20% of the Company Voting Securities as a result of the acquisition of
Company Voting Securities by the Company which, by reducing the number of
Company Voting Securities outstanding, increases the percentage of shares
beneficially owned by such person; provided, that if a Change in Control
would occur as a result of such an acquisition by the Company (if not for the
operation of this sentence), and after the Company's acquisition such person
becomes the beneficial owner of additional Company Voting Securities that
increases the percentage of outstanding Company Voting Securities
beneficially owned by such person, then a Change in Control shall occur.
(c) Committee: The Compensation and Management Development
Committee of the Board of Directors of the Company.
(d) Company: Parker-Hannifin Corporation, an Ohio corporation,
its corporate successors, and the surviving corporation resulting from any
merger of Parker-Hannifin Corporation with any other corporation or
corporations.
(e) Competition: Conduct defined in Paragraph 6.02 of the
Program.
(f) Contingent Annuitant: The person designated by a Participant
as provided in Section 9.1 of the Retirement Plan.
(g) Controlled Group: The group of related corporations of which
the Company is a member as determined under Section 1563(a) of the Internal
Revenue Code of 1986, as amended.
(h) Highest Average Three-Year Compensation: One-third of the
aggregate amount of the highest of compensation of a Participant from the
Controlled Group with respect to any three calendar years of the
Participant's employment which produces a higher average than any other three
calendar years including base salary, executive or incentive compensation or
bonus, Return on Net Assets (RONA)/Profit Sharing payments, and any amounts
which would otherwise be paid as compensation but which are deferred by a
Participant pursuant to any qualified or unqualified deferred compensation
program sponsored by the Controlled Group, but excluding (i) any deferred
3
compensation received during any such year but credited under the Program to
the Participant for a prior year, (ii) any income realized due to the
exercise of stock options or stock appreciation rights; (iii) any payments,
in cash or otherwise, paid to the Participant under the Company's Long-Term
Incentive Plan, any extraordinary one-time bonus arrangements, or as an
executive prequisite; and (iv) such items as fringe benefits includible in
income as compensation for federal tax purposes, moving and educational
reimbursement expenses, overseas allowances received by the Participant from
the Controlled Group, and any other irregular payments.
(i) Life Expectancy: The expected remaining lifetime (to the
nearest integer) based on the Mortality Table and the age nearest birthday
of the Participant or Recipient at the date the Lump Sum Payment is made.
If a joint and contingent survivor annuity has been elected, then Life
Expectancy shall reflect the joint Life Expectancy of the Participant or
Recipient and Contingent Annuitant.
(j) Lump Sum Payment: The Lump Sum Payment provided in Paragraph
4.02 of Section 4 of the Program with the amount determined as set forth in
Paragraph 4.03 thereof.
(k) Mortality Table: The UP-1984 Table (or such other pensioner
annuity mortality table as the Company with the written consent of the
Participant or Recipient shall determine) and the associated Uniform
Seniority Table for the determination of joint life expectancies.
(l) Net Specified Rate: The interest rate which will produce
income on a tax free basis, that equals the income produced by the Specified
Rate net of the combined highest rates of Federal, state and local income
taxes that are in effect in the jurisdiction of the Participant or Recipient
on the date of payment of the Lump Sum Payment.
(m) Normal Retirement Date: The date on which a Participant
attains 65 years of age unless and until another date is prescribed in the
Retirement Plan as the normal retirement date of participants in the
Retirement Plan in which event such other date shall become the Normal
Retirement Date hereunder.
(n) Participant: An employee of the Company designated to
participate in the Program pursuant to Section 2 of the Program, while so
employed.
(o) Profit Sharing Account Balance: The definition set forth in
Section 1.1(y) of the Parker-Hannifin Corporation Retirement Plan.
4
(p) Program: The Supplemental Executive Retirement Benefits
Program set forth in these pages.
(q) Recipient: A retiree, Contingent Annuitant, term certain
beneficiary, or Surviving Spouse, who is currently receiving benefits or is
entitled to receive benefits under the Program.
(r) Retirement Plan: The Parker-Hannifin Corporation Retirement
Plan and any excess benefit plan, including any amendments thereto that may
be adopted after the Effective Date of the Program.
(s) Service: Employment as an employee by any member of the
Controlled Group, as well as employment by a corporation, trade or business,
that is now part of the Controlled Group at a time prior to its becoming part
of the Controlled Group, but in each such case only if and to the extent that
the Committee shall so direct at any time prior to retirement.
(t) Specified Rate: The interest rate for immediate annuities
of the Pension Benefit Guarantee Corporation (PBGC) in effect on the date of
payment of the Lump Sum Payment as set forth in Appendix B to Part 2619 of
29 Code of Federal Regulations or such successor to such Appendix B as may
be in effect on such date.
(u) Surviving Spouse: The person who is the Participant's spouse
at the time of the Participant's death and who has been such spouse for at
least one year immediately prior to the date of the Participant's death.
(v) Unreduced Benefit: An amount equal to 1/12th of 55 percent
(i.e., 4.5833%) of Highest Average Three-Year Compensation.
2. Participation
2.01 Participants. The Participants in the Program shall be such
officers and other key executives of the Company as shall be designated as
Participants from time to time by the Committee.
2.02 Designation of Participants. An individual may be designated
a Participant by action of the Committee or in a written employment agreement
approved by the Committee. Participation of each individual designated as
a Participant shall be subject to the terms, conditions, and limitations set
forth in the Program and to such other terms, conditions and limitations as
the Committee may, in its discretion, impose upon the participation of any
such individual at the time the individual is designated a Participant in the
Program.
2.03 Continuation of Participation. Subject only to the
provisions of Paragraph 2.04 and Section 6 of the Program, an individual
designated as a Participant shall continue to be a
5
Participant for the purpose of the supplemental retirement benefits provided
by the Program and his participation in the Program shall not be terminated.
2.04 Effect of Termination of Employment. To be eligible for
supplemental retirement benefits under the Program a Participant shall not
voluntarily terminate employment with the Company without the consent of the
Committee for a period, not exceeding 60 calendar months, set by the
Committee at the time he is designated a Participant. If he shall so
voluntarily terminate his employment within such period, his participation
in the Program shall terminate and he shall cease to be a Participant. For
purposes of this Paragraph 2.04, in no event shall the termination by a
Participant of his employment with the Company pursuant to his right to do
so under an agreement with the Company be deemed to be a voluntary
termination of employment with the Company without the consent of the
Committee.
3. Supplemental Retirement Benefits
3.01 Eligibility at or After Normal Retirement Date. Any
provision of Paragraph 2.04 above to the contrary notwithstanding, any
Participant with at least 120 calendar months of Service who terminates his
employment with the Controlled Group on or after his Normal Retirement Date
shall be eligible for a monthly supplemental retirement benefit computed as
follows:
(a) If such Participant has at least 180 calendar months of
Service, such benefit shall be an amount determined in accordance with the
provisions of subparagraph (a) of Paragraph 3.03; or
(b) If such Participant has less than 180 calendar months of
Service, such benefit shall be an amount determined in accordance with the
provisions of subparagraph (b) of Paragraph 3.03.
3.02 Eligibility Prior to Normal Retirement Date. Any provision
of Paragraph 2.04 to the contrary notwithstanding, any Participant with at
least 120 calendar months of Service (i) who terminates his employment with
the Controlled Group with the consent of the Committee after attainment of
age 55; or (ii) who terminates his employment with the Controlled Group prior
to attainment of age 60 and after a Change in Control of the Company; or
(iii) whose employment with the Controlled Group is terminated by the Company
for reasons other than for cause (as determined solely by the Board of
Directors of the Company) after attainment of age 55 but prior to the
expiration of the requisite period of employment established by the Committee
with respect to him pursuant to Paragraph 2.04; or (iv) who terminates his
employment with the Controlled Group due to disability after attainment of
age 55 but prior to his Normal Retirement Date; or (v) who terminates his
employment with the Controlled Group after attainment of age 60 but prior to
his Normal Retirement Date, shall be eligible for a monthly supplemental
retirement benefit as follows:
6
(a) If such Participant has at least 180 calendar months of
Service, such benefit shall be an amount determined in accordance with the
provisions of subparagraph (c) of Paragraph 3.03; or
(b) If such Participant has less than 180 calendar months of
Service, such benefit shall be an amount determined in accordance with the
provisions of subparagraph (d) of Paragraph 3.03.
3.03 Amount of Supplemental Retirement Benefits. The amount of
a monthly supplemental retirement benefit payable to an eligible Participant
shall be computed in the following manner:
(a) If a Participant is eligible for a supplemental retirement
benefit pursuant to the provisions of subparagraph (a) of Paragraph 3.01,
such benefit shall equal his Unreduced Benefit reduced by the sum of:
(i) the monthly straight-life normal retirement benefit
to which the Participant is eligible under the Retirement Plan,
including any amount attributable to such Participant's
Profit-Sharing Account Balance;
(ii) the monthly straight-life benefit to which the
Participant is eligible pursuant to any unfunded program of the
Company that is not attributable to compensation deferred by the
Participant under any deferred compensation program;
(iii) the monthly straight-life actuarial equivalent of any
benefit to which the Participant is eligible from any qualified
pension plan of the Company and which is attributable to
contributions of the Company unless benefit service for employment on
which such benefit is based is credited to the Participant under the
Retirement Plan;
(iv) commencing at the earliest date payable on or after
termination of employment, 50 percent of the monthly primary social
security benefit to which the Participant is entitled, or would be
entitled, at the time in the absence of any compensation that may at
the time be or have been earned by him after such date; and
(v) the monthly straight-life actuarial equivalent of any
benefit which the Participant is eligible to receive from any
previous employer, provided that a contract between the Participant
and the Company grants the Participant service credit for service
with the previous employer and the contract states the benefit to be
offset.
(b) If a Participant is eligible for a supplemental retirement
benefit pursuant to the provisions of subparagraph (b) of Paragraph 3.01,
such benefit shall equal his Unreduced Benefit reduced by the sum of:
7
(i) .3055 percent of the Unreduced Benefit for each
calendar month his Service is less than 180 calendar months;
(ii) the monthly straight-life normal retirement benefit
to which the Participant is eligible under the Retirement Plan,
including any amount attributable to such Participant's
Profit-Sharing Account Balance;
(iii) the monthly straight-life benefit to which the
Participant is eligible pursuant to any unfunded program of the
Company that is not attributable to compensation deferred by the
Participant under any deferred compensation program;
(iv) the monthly straight-life actuarial equivalent of any
benefit to which the Participant is eligible from any qualified
pension plan of the Company and which is attributable to
contributions of the Company unless benefit service for employment on
which such benefit is based is credited to the Participant under the
Retirement Plan;
(v) commencing at the earliest date payable on or after
termination of employment, 50 percent of the monthly primary social
security benefit to which the Participant is entitled, or would be
entitled, at the time in the absence of any compensation that may at
the time be or have been earned by him after such date; and
(vi) the monthly straight-life actuarial equivalent of any
benefit which the Participant is eligible to receive from any
previous employer, provided that a contract between the Participant
and the Company grants the Participant service credit for service
with the previous employer and the contract states the benefit to be
offset.
(c) If a Participant is eligible for a supplemental retirement
benefit pursuant to the provisions of subparagraph (a) of Paragraph 3.02,
such benefit shall equal his Unreduced Benefit reduced by the sum of:
(i) .1515 percent of the Unreduced Benefit multiplied by
the number of calendar months during which such benefit is to be paid
after attainment of age 60 but prior to his Normal Retirement Date;
(ii) .3030 percent of the Unreduced Benefit multiplied by
the number of calendar months during which such benefit is to be paid
after attainment of age 55 but prior to attainment of age 60;
(iii) the monthly straight-life early retirement benefit to
which the Participant is eligible under the Retirement Plan,
including any amount attributable to such Participant's
Profit-Sharing Account Balance;
8
(iv) the monthly straight-life benefit to which the
Participant is eligible pursuant to any unfunded program of the
Company that is not attributable to compensation deferred by the
Participant under any deferred compensation program;
(v) the monthly straight-life actuarial equivalent of any
benefit to which the Participant is eligible from any qualified
pension plan of the Company and which is attributable to
contributions of the Company unless benefit service for employment on
which such benefit is based is credited to the Participant under the
Retirement Plan;
(vi) commencing at the earliest date payable on or after
termination of employment, 50 percent of the monthly primary social
security benefit to which the Participant is entitled, or would be
entitled, at the time in the absence of any compensation that may at
the time be or have been earned by him after such date; and
(vii) the monthly straight-life actuarial equivalent of any
benefit which the Participant is eligible to receive from any
previous employer, provided that a contract between the Participant
and the Company grants the Participant service credit for service
with the previous employer and the contract states the benefit to be
offset.
(d) If a Participant is eligible for a supplemental retirement
benefit pursuant to the provisions of subparagraph (b) of Paragraph 3.02,
such benefit shall equal his Unreduced Benefit reduced by the sum of:
(i) .3055 percent of the Unreduced Benefit for each calendar
month his service is less than 180 calendar months;
(ii) .1515 percent of the Unreduced Benefit multiplied by
the number of calendar months during which such benefit is to be paid
after attainment of age 60 but prior to his Normal Retirement Date;
(iii) .3030 percent of the Unreduced Benefit multiplied by
the number of calendar months during which such benefit is to be paid
after attainment of age 55 but prior to attainment of age 60;
(iv) the monthly straight-life early retirement benefit to
which the Participant is eligible under the Retirement Plan,
including any amount attributable to such Participant's
Profit-Sharing Account Balance;
(v) the monthly straight-life benefit to which the
Participant is eligible pursuant to any unfunded program of the
Company that is not attributable to compensation deferred by the
Participant under any deferred compensation program;
(vi) the monthly straight-life actuarial equivalent of any
benefit to which the Participant is eligible from any qualified
pension plan of the Company and which is
9
attributable to contributions of the Company unless benefit service for
employment on which such benefit is based is credited to the Participant
under the Retirement Plan;
(vii) commencing at the earliest date payable on or after
termination of employment, 50 percent of the monthly primary social
security benefit to which the Participant is entitled, or would be
entitled, at the time in the absence of any compensation that may at
the time be or have been earned by him after such date; and
(viii) the monthly straight-life actuarial equivalent of any
benefit which the Participant is eligible to receive from any
previous employer, provided that a contract between the Participant
and the Company grants the Participant service credit for service
with the previous employer and the contract states the benefit to be
offset.
(e) Attachment A to the Program sets forth illustrative examples
of certain retirement situations under this Paragraph 3.03.
4. Payment of Benefits
4.01 Commencement of Benefits. Subject to Paragraphs 4.02 (b) and
4.02 (c) below, supplemental retirement benefits shall be payable monthly to
an eligible Participant commencing with the later of the month next following
the month in which he becomes eligible for such benefit or the month
designated by him in writing to the Company and terminating with the month
in which the death of such Participant occurs.
4.02 Payments Under Certain Situations.
(a) Optional Methods of Payment. Subject to Paragraphs 4.02 (b)
and 4.02 (c) below, an optional method of payment selected by the Participant
for payment of his retirement benefit under the Retirement Plan, including
without limitation any deferment in the time of payment thereof, shall
automatically be applicable to the payment of the supplemental retirement
benefits provided by the Program, upon the same terms and conditions,
including factors (other than those specified in Section 3 for early
commencement of benefits) applicable under the Retirement Plan.
(b) Payment Upon a Change in Control. Upon the occurrence of a
Change in Control, each Participant and each Recipient shall receive on
account of future payments of any and all benefits (taking into account any
service period under any contract with the Participant) due under the
Program, a Lump Sum Payment so each such Participant and Recipient will
receive substantially the same amount of after tax income as before the
Change in Control. The Lump Sum Payment referred to herein shall be
determined as set forth in subparagraph (a) of Paragraph 4.03. Attachment
B to the Program sets forth illustrative examples.
10
(c) Election to Receive a Lump Sum Payment. A Participant, who
is anticipating retirement and is eligible to receive benefits under the
Program pursuant to Paragraph 3.01 or pursuant to clause (i), (iii), (iv) or
(v) of Paragraph 3.02, or a Recipient, may elect, subject to the terms and
conditions hereinafter set forth, to receive, in lieu of future payments of
any and all then unpaid accrued and vested benefits under the Program, a Lump
Sum Payment determined in accordance with subparagraph (b) of Paragraph 4.03.
The election of such Lump Sum Payment shall be made under either of the
following two clauses:
(i) Such Participant or a non-retiree Recipient may file
a request for a Lump Sum Payment with the Committee prior to the date
on which the first monthly benefit payment under the Program would
otherwise be made to such Participant or non-retiree Recipient. In
the case of the Participant, such election shall be made at least 180
days prior to his retirement date, unless such period shall be
reduced or waived by the Committee on a case by case basis or by rule
of general application. If the Committee in its sole discretion
consents to such request, which consent may be made subject to such
terms and conditions, if any, as the Committee may impose, and which
consent may be given on a case by case basis or by rule of general
application, 100% of such Lump Sum Payment shall be paid by the
Company on the date on which the first monthly benefit payment under
the Program would otherwise be made, or the Committee may direct that
the Trustee make such payment on such date from the Grantor Trust to
the extent funded, with the Company paying the balance, if any; or
(ii) Such Participant or a Recipient, who has not filed a
request pursuant to clause (i) above, may file an election at any
time with either the Company or the Trustee of the Grantor Trust
under this clause (ii), in which case he shall receive 90% of the
Lump Sum Payment, and the remaining 10% shall be forfeited. If such
election is filed with the Trustee, the Trustee, as promptly as
administratively feasible after the filing of such election, shall
make such payment to the Participant or Recipient. In the event the
election is filed with the Company, the Company may make the payment
or direct the Trustee to make the payment. To the extent that the
entire amount of Participant's or Recipient's 90% Lump Sum Payment is
not made from the Trust, the Trustee shall notify the Company of the
portion of such Lump Sum Payment not so made and such portion shall
be paid by the Company.
(d) Certain Matters Following a Lump Sum Payment. A Participant
who has received a Lump Sum Payment pursuant to subparagraph (b) of Paragraph
4.02 shall, thereafter (i) while in the employ of the Company, continue to
accrue benefits under the Program, and (ii) be eligible for further benefits
under Paragraph 4.01 or subparagraphs (a), (b) or (c) of Paragraph 4.02,
after appropriate reduction in respect of the Lump Sum Payment previously
received. The previous Lump Sum Payment shall be accumulated with interest
at the Specified Rate as in effect from time to time for the period of
time from initial payment date to the next computation date. It shall then
be converted to a straight-life annuity using the current annuity certain
factor. The current annuity certain factor will be determined on the Net
Specified Rate basis if this benefit payment is being made due to a later
Change in Control; otherwise, the Specified Rate shall be used.
Attachment C
11
to the Program sets forth illustrative examples. Provided, however, that
in the case of any Participant or Recipient for whom the benefits provided
by this subparagraph (d) have been funded by contributions to the Trust
established under the Grantor Trust Agreement referred to in Paragraph 7.03
hereof, his right to receive any portion of such benefits that is payable
from the Trust shall be governed by Section 7(b)(i) of the Grantor Trust
Agreement.
4.03 Determination of the Lump Sum Payment.
(a) The Lump Sum Payment referred to in subparagraph (b) of
Paragraph 4.02 shall be determined by multiplying the annuity certain factor
(for monthly payments at the beginning of each month) based on the Benefit
Payment Period and the Net Specified Rate by the monthly benefit (adjusted
for assumed future benefit adjustments due to Social Security and Internal
Revenue Code Section 415 changes in the Retirement Plan) to be paid to the
Participant or Recipient under the Program.
(b) The Lump Sum Payment referred to in subparagraph (c) of
Paragraph 4.02 shall be determined by multiplying the annuity certain factor
(for monthly payments at the beginning of each month) based on the Benefit
Payment Period and the Specified Rate by the monthly benefit (adjusted for
assumed future benefit adjustments due to Social Security and Internal
Revenue Code Section 415 changes in the Retirement Plan) to be paid to the
Participant or Recipient under the Program.
5. Death Benefits
5.01 Eligibility. If a Participant dies after completing
120 calendar months of Service but prior to the earlier of his retirement or
his Normal Retirement Date, his Surviving Spouse (or, in the event there is
no surviving spouse, or there is a common death, his estate) shall be
eligible for a benefit under this Section 5.
5.02 Benefit Amount.
(a) The monthly amount of a benefit payable under this Section 5
to a deceased Participant's Surviving Spouse or estate, as the case may be,
who has applied therefor, shall be equal to the monthly payment the spouse
or estate would have received had the Participant retired on the day before
his death and after having effectively elected an optional benefit under
Option F (50% joint and contingent survivor annuity with a 10-year minimum
payment provision) defined in Section 9.1 of the Retirement Plan and
designated said spouse as his Contingent Annuitant under such option or, in
the case of his estate, said estate as his Term - Certain Beneficiary under
such option.
(b) The monthly benefit that would have been payable as an early
retirement benefit to the Participant on a life annuity basis will be reduced
by the factor for Option F as specified in the Retirement Plan, and that
reduced benefit amount is paid for 120 months. After the 120 month
12
period has expired, the benefit amount will cease if paid to the deceased
Participant's estate, and will be 50% of that reduced monthly benefit if it
is paid to the Surviving Spouse.
(c) If the Participant dies before reaching age 55, then the
monthly benefit shall be determined under subparagraphs (c) or (d) of
Paragraph 3.03 (depending on the Participant's length of service) and the
applicable percent shall be adjusted by the .3030 percent (specified in those
subparagraphs for Participants between age 55 and age 60) multiplied by the
number of months that the participant was under age 60 at the time of his
death.
(d) Attachment D to this Restatement sets forth illustrative
example of certain death benefit situations under this Paragraph 5.02.
5.03 Benefit Payments. Subject to subparagraphs (b) and (c) of
Paragraph 4.02 above, the benefit under this Section 5 shall be paid to the
deceased Participant's Surviving Spouse commencing with the first day of the
month following the month in which the Participant's death occurs, and shall
be payable monthly thereafter during the life of the Surviving Spouse, the
last payment being for the month in which the death of the Surviving Spouse
shall occur. If the Surviving Spouse should commence to receive benefit
payments under this Section 5 but should die before 120 monthly payments have
been made, the monthly benefit payments required to be paid under this
Section 5, which have not been paid, will be paid to the deceased Surviving
Spouse's estate. In the event there is no Surviving Spouse or there is a
common death, the monthly payments required to be paid under this Section 5,
which have not been paid, will be paid to the deceased Participant's estate.
Anything in this Section 5 to the contrary notwithstanding, all monthly
payments required to be made to the deceased Participant's estate or the
deceased Surviving Spouse's estate shall be paid, in lieu thereof, in a
discounted lump sum payment within 30 days of the original commencement date
of such payments.
6. Non-Competition
6.01 Condition of Payment. Each monthly payment of supplemental
retirement benefits under the Program shall be subject to the condition that
the Participant and retiree-Recipient shall not have engaged in Competition
with the Company, as defined in Paragraph 6.02 below, at any time prior to
the date of such payment.
6.02 Competition. Competition for purposes of the Program shall
mean assuming an ownership position or a consulting, management, or director
position with a business engaged in the manufacture, processing, purchase or
distribution of products of the Controlled Group during the fiscal year prior
to the date of termination of the Participant's employment; provided,
however, that in no event shall ownership of less than two percent of the
outstanding capital stock entitled to vote for the election of directors of
a corporation with a class of equity securities held of record by more than
500 persons in itself be deemed Competition; and provided further, that all
of the following shall have taken place:
13
(i) the Secretary of the Company shall have given written
notice to the Participant or retiree-Recipient that, in the opinion
of the Committee, the Participant or retiree-Recipient is engaged in
Competition within the meaning of the foregoing provisions of this
Paragraph 6.02, specifying the details;
(ii) the Participant or retiree-Recipient shall have been
given a reasonable opportunity, upon receipt of such notice, to
appear before and to be heard by the Committee with respect to his
views regarding the Committee's opinion that the Participant or
retiree-Recipient engaged in Competition;
(iii) the Secretary of the Company shall have given written
notice to the Participant or retiree-Recipient that the Committee
determined that the Participant or retiree-Recipient is engaged in
Competition; and
(iv) the Participant or retiree-Recipient shall neither
have ceased to engage in such Competition within thirty days from his
receipt of notice of such determination nor diligently taken all
reasonable steps to that end during such thirty-day period and
thereafter.
6.03 Cessation of Payments. If the Participant or
retiree-Recipient shall have engaged in Competition with the Company contrary
to the provisions of Paragraph 6.01 above, the Company may cease making any
future payments of the supplemental retirement benefits otherwise payable to
the Participant or retiree-Recipient under the Program but shall not be
entitled to repayment of any amounts theretofore paid to the Participant or
retiree-Recipient under the Program.
7. General Provisions
7.01 Denial of Claims. Whenever the Company denies, in whole or
in part, a claim for benefits filed by any person (hereinafter referred to
as the "Claimant"), the Company shall transmit a written notice setting
forth, in a manner calculated to be understood by the Claimant, a statement
of the specific reasons for the denial of the claim, references to the
specific Program provisions on which the denial is based, a description of
any additional material or information necessary to perfect the claim and an
explanation of why such material or information is necessary, and an
explanation of the claims review procedure as set forth in Paragraph 7.02.
In addition, the written notice shall contain the date on which the written
notice was sent and a statement advising the Claimant that, within 60 days
of the date on which such notice was received, he may obtain review of the
decision of the Company.
7.02 Claims Review Procedure. Within 60 days of the date on which
the notice of denial of claim is received by the Claimant, the Claimant, or
his authorized representative, may request that the claim denial be reviewed
by filing with the Company a written request therefor, which request shall
contain the following information:
14
(i) The date on which the notice of denial of claim was
received by the Claimant;
(ii) The date on which the Claimant's request was filed
with the Company; provided, however, that the date on which the
Claimant's request for review was in fact filed with the Company
shall control in the event that the date of the actual filing is
later than the date stated by the Claimant pursuant to this clause
(ii);
(iii) The specific portions of the denial of his claim which
the Claimant requests the Company to review;
(iv) A statement by the Claimant setting forth the basis
upon which he believes the Company should reverse its previous denial
of his claim for benefits and accept his claim as made; and
(v) Any written material (included as exhibits) which the
Claimant desires the Company to examine in its consideration of his
position as stated pursuant to clause (iv).
Within 60 days of the date determined pursuant to clause (ii) of this
Paragraph 7.02, the Company shall conduct a full and fair review of the
decision denying the Claimant's claim for benefits. Within ten days
following the date of such review, the Company will send to the Claimant its
written decision setting forth, in a manner calculated to be understood by
the Claimant, a statement of the specific reasons for its decision, including
references to the specific Program provision relied upon.
7.03 Rights of Participants. The Company has entered into a
Grantor Trust Agreement dated July 16, 1992, with Society National Bank as
Trustee (the "Grantor Trust Agreement"), pursuant to which it has established
a trust (the "Trust") for the purpose of holding assets as a reserve for the
discharge of the Company's obligations under the Program. Except as
expressly provided in the Grantor Trust Agreement, and except to such extent
as the Company may have made contributions to the Trust and the earnings
thereon:
(i) no Participant or Recipient shall have any right,
title, or interest whatsoever in or to any investments which the
Company may make to aid it in meeting its obligations under the
Program;
(ii) nothing contained in the Program shall create or be
construed to create a trust of any kind, or a fiduciary relationship
between the Company and any Participant, Recipient or any other
person;
(iii) to the extent that any person acquires a right to
receive payments from the Company under the Program, such right shall
be no greater than the right of an unsecured general creditor of the
Company; and
15
(iv) all payments to be made under the Program shall be
paid from the general funds of the Company and no special or separate
fund shall be established and no segregation of assets shall be made
to assure payment of amounts payable under the Program.
Anything in the Program to the contrary notwithstanding, nothing in
the Program shall require any Participant or Recipient, or imply a
requirement, to refund the Company all or any part of any payment made to a
Participant or Recipient under the Program.
7.04 Administration. The Committee shall be responsible for the
general administration of the Program and for carrying out the provisions
thereof. Any act authorized, permitted or required to be taken by the
Company under the Program may be taken by action of the Committee. Subject
to the provisions of Paragraph 7.01 above relating to denial of claims and
claims review procedure, any action taken by the Committee which is
authorized, permitted or required under the Program shall be final and
binding upon the Company, all persons who have or who claim an interest under
the Program, and all third parties dealing with the Company.
7.05 Program Non-Contractual. Nothing herein contained shall be
construed as a commitment or agreement on the part of any person to continue
his employment with the Company, and nothing herein contained shall be
construed as a commitment on the part of the Company to continue the
employment or the rate of compensation of any such person for any period, and
all employees of the Company shall remain subject to discharge to the same
extent as if the Program had never been put into effect.
7.06 Non-Alienation of Retirement Rights or Benefits. No right
or benefit under the Program shall at any time be subject in any manner to
alienation or encumbrances. If any person shall attempt to, or shall,
alienate or in any way encumber his rights or benefits under the Program, or
any part thereof, or if by reason of his bankruptcy or other event happening
at any time any such benefits would otherwise be received by anyone else or
would not be enjoyed by him, his interest in all such benefits shall
automatically terminate and the same, at the discretion of the Company, shall
be held or applied to or for the benefit of such person, his spouse,
children, or other dependents as the Company may select.
7.07 Payment of Benefits to Others. If any person to whom a
retirement benefit is payable is unable to care for his affairs because of
illness or accident, any payment due (unless prior claim therefor shall have
been made by a duly qualified guardian or legal representative) may be paid
to the spouse, parent, brother, or sister, or any other individual deemed by
the Company to be maintaining or responsible for the maintenance of such
person. The monthly payment of a retirement benefit to a person for the
month in which he dies, if not paid to such person prior to his death, shall
be paid to his spouse, parent, brother, or sister, as the Company shall
determine. Any payment made in accordance with the provisions of this
Paragraph 7.07 shall be a complete discharge of any liability of the Program
with respect to the retirement benefit so paid.
16
7.08 Notices. All notices provided for by the Program shall be
in writing and shall be sufficiently given if and when mailed in the
continental United States by registered or certified mail or personally
delivered to the party entitled thereto at the address stated below or to
such changed address as the addressee may have given by a similar notice:
To the Company: Attention:
Secretary
17325 Euclid Avenue
Cleveland, Ohio 44112
To the Participant: address of residence
Any such notice delivered in person shall be deemed to have been received on
the date of delivery.
7.09 Amendment, Modification, Termination. The Program may at any
time be terminated, or at any time or from time to time be amended or
otherwise modified, prospectively, by the Board of Directors of the Company;
provided, however, that no such termination, amendment or modification of the
Program shall operate to:
(a) reduce or terminate the benefit of a Participant
participating in the Program at the time of any such termination, amendment,
or modification;
(b) terminate the participation or the rights or benefits, of a
Participant participating in the Program at the time of any such termination,
amendment, or modification;
(c) increase the eligibility requirements applicable to a
Participant participating in the Program at the time of any such termination,
amendment or modification; or
(d) terminate the Program, or reduce or terminate any benefit,
or terminate the participation or any rights or benefits, after the
occurrence of a Change in Control, with respect to a Participant or Recipient
who was a Participant or Recipient, or became a Participant or Recipient, at
the time of the occurrence of the Change in Control.
EXECUTED in Cleveland, Ohio as of the 27th day of September, 1995.
PARKER-HANNIFIN CORPORATION
By: Daniel T. Garey
Daniel T. Garey
Corporate Vice President-Human Resources
17
ATTACHMENT A
Page 1 of 2
Example A
PARKER SUPPLEMENTAL PLAN
Benefit for Retiring Employee
Age 60
Salary $200,000
Service at Retirement 30 years
Social Security Base $21.192
Expected Social Security at Age 62 $10,860
Parker Pension:
(.0075 x $200,000) $ 1,500
(.0065 x ($200,000 - $21,192)) 1,091
_________
$ 2,591
Pension: 30 x $2,591 = $ 77,730 at age 65
Reduces: 70% x $77,730 = $ 54,411 at age 60
Supplemental Pension:
50% x $200,000 $ 100,000
less:
Parker Pension 54,411
_________
45,589 at age 60
less:
Social Security (50%) 5,430
_________
$ 40,159 at age 62
ATTACHMENT A
Page 2 of 2
Example B
PARKER SUPPLEMENTAL PLAN
Benefit for Retiring Employees
Employee with employment agreement granting 18 years of service from prior
employer but offsetting $33,500 pension at 60 from that employer.
Age 60
Salary $ 200,000
Service at Retirement 12 years
Service with prior employer 18 years
Benefit at age 60 from prior employer $ 33,500
Social Security Base $ 21,192
Expected Social Security at Age 62 $ 10,860
Parker Pension:
(.0075 x $200,0000) $ 1,500
(.0061 x ($200,000 - $21,192)) 1,091
_________
$ 2,591
Pension: 12 x $2,591 = $ 31,092 at age 65
Reduces: 70% x $31,092 = $ 21,764 at age 60
Supplemental Pension:
50% x $200,00 $ 100,000
less:
Parker Pension 21,764
less:
Pension from prior employer 33,500
________
$ 44,736 at age 60
less:
Social Security (50%) 5,430
________
$ 39,306 at age 62
ATTACHMENT B
Page 1 of 3
Example C
PARKER SUPPLEMENTAL PLAN
Benefit for Retiring Employee
Employee covered under Supplemental Plan at change in control. Benefit is
determined based on continued service for 10 years assuming that Parker
Salaried Plan and employees' pay remain unchanged to the expiration (in 10
years) of the change in control officer agreement with the company.
Age 48
Salary $ 200,000
Change in control officer contract
expires at age 58.
Change in control effective
January 1, 1987.
Service to December 31, 1986: 20 years
Maximum aggregate tax rate: 35%
PBGC immediate interest rate: 6.5%
Final 5-year average salary: $ 200,000
Final 3-year average salary: 200,000
Pension - Parker Salaried: 52,000
Base Supplemental Pension 92,000
Supplement to age 62: 40,000
Estimated Social Security: 10,860
Supplement after age 62: 34,570
Life Expectancy at age 58: 20 years
Value of Pension at Specified Rate
Net of Taxes $ 678,038
Taxes due on lump sum (35%) 237,313
Lump Sum Amount after taxes 440,725
ATTACHMENT B
Page 2 of 3
Example D
PARKER SUPPLEMENTAL PLAN
Benefit for Retiring Employee
Employee covered under Supplemental Plan at change in control. Benefit is
determined based on continued service for 2 years assuming that Parker
Salaried Plan and employees' plan remain unchanged to the expiration (at age
60) of the change in control officer agreement with the company.
Age 58
Salary $ 200,000
Change in control officer contract
expires at age 60.
Change in control effective
January 1, 1987.
Service to December 31, 1986: 28 years
Maximum aggregate tax rate: 35%
PBGC immediate interest rate: 6.5%
Final 5-year average salary: $ 200,000
Final 3-year average salary: 200,000
Pension - Parker Salaried: 52,000
Base Supplemental Pension 100,000
Supplement to age 62: 48,000
Estimated Social Security: 10,068
Supplement after age 62: 42,966
Life Expectancy at age 60: 19 years
Value of Pension at Specified Rate
Net of Taxes $ 673,200
Taxes due on lump sum (35%) 235,620
Lump Sum Amount after taxes 437,580
ATTACHMENT B
Page 3 of 3
Example E
PARKER SUPPLEMENTAL PLAN
Benefit for Retiring Employee
Employee covered under Supplemental Plan at change in control. Benefit is
determined based on continued service for 2 years assuming that Parker
Salaried Plan and employees' pay remain unchanged to the expiration (at age
60) of the change in control officer agreement with the company.
Employee also has employment agreement granting 16 years of service from prior
employer but offsetting $34,000 pension at age 60 from that employer.
Age 58
Salary $ 200,000
Change in control officer contract
expires at age 60.
Change in control effective
January 1, 1987.
Service to December 31, 1986: 14 years
Maximum aggregate tax rate: 35%
PBGC immediate interest rate: 6.5%
Service with prior employer: 16 years
Benefit from prior employer to be paid
if payments begin at age 60 $ 34,000
Final 5-year average salary: $ 200,000
Final 3-year average salary: 200,000
Pension - Parker Salaried: 27,500
Base Supplemental Pension 100,000
Supplement to age 62: 38,500
Estimated Social Security: 10,068
Supplement after age 62: 33,466
Life Expectancy at age 60: 19 years
Value of Pension at Specified Rate
Net of Taxes $ 527,530
Taxes due on lump sum (35%) 184,630
Lump Sum Amount after taxes 342,900
ATTACHMENT C
Page 1 of 1
Example F
PARKER SUPPLEMENTAL PLAN
Example of Benefit Determination for Participation who has
received a prior Lump Sum Payment
Change in control lump sum paid in 1987 to employee aged 48.
Supplemental benefit determined to begin at age 58 was $35,000.
Lump sum based on Specified rate (8%) $ 166,000
Actual lump sum (net specified rate (4%)) 328,200
Lump sum rolled up at the specified rate to age 65 $ 614,200
Supplemental benefit at age 65 $ 85,000
Lump sum value (at specified rate) 827,100
Excess of current lump sum over accumulated lump sum $ 212,900
Additional annual pension available at 65 21,880
Factor:
Original lump sum at specified rate (based on 8% interest, assumed
payments beginning in 10 years, no taxes to be paid, and life expectancy
of 20 years).
$35,000 x (20-year annuity) x discount from 58
= $35,000 x 10.2386 x .4631935 = $166,000
Actual lump sum:
$35,000 x 13,8830 x .675564 = $328,260
Accumulated initial lump sum (Note: The lump sum originally paid was
$166,000 so that is the base for additional calculation. The difference
between $328,200 and $166,000 is the 50% tax rate.)
$166,000 x interest for 17 years
= $166,000 x 3.700018 = $614,200
Final benefit calculation (based on 6.5% interest and 15-year life
expectancy at age 65.)
$85,000 x (15-year annuity)
= $85,000 x 9.7305 = $827,100
($827,100 - $614,200) / 9.7305 = $21,880
ATTACHMENT D
Page 1 of 4
Example G
PARKER HANNIFIN CORPORATION
Supplemental Executive Retirement Plan
Example of Death Benefit for Participants
A participant dies at age 58 after working for 20 years. The Supplemental
benefit to his spouse (age 55) is based on the following information:
Salaried Plan benefit at 65 $ 100,000
Profit Sharing balance at 58 120,000
Immediate benefit from Profit Sharing ($120,000 / 11.0694) 10,840
Benefit from prior employer
at 65 (life only) 20,000
at 58 (50% J&S) 5,300
Salaried Plan benefit at 58 (life only) (.58 x $100,000) $ 58,000
Benefit on 50% J&S basis (.8897 x $58,000) 51,600
Benefit to spouse (.50 x $51,600) 25,800
Assumed Social Security benefit at 62 6,360
The Supplemental benefits are determined as follows:
Final three-year average salary $ 240,000
Base Supplemental benefit (.46 x $240,000) 110,400
Supplemental after J&S adjustment (.86 x $110,400) 94,940
Less:
Salaried plan benefit 25,800
Profit Sharing benefit 10,840
Prior employer benefit 5,300
Annual benefit to spouse under 62 $ 53,000
Less: 50% of Social Security 4,680
Annual benefit to spouse 62 and over $ 48,320
ATTACHMENT D
Page 2 of 4
Total retirement income to the spouse will be as follows:
For 10 years After 10 years
_______________________ _______________________
While under While 62 While under While 62
Plan Age 62 and over Age 62 and over
_____ __________ _________ _________ ________
Salaried Plan $ 25,800 $ 25,800 $ 25,800 $ 25,800
Supplemental Plan 53,000 48,320 5,530 3,190
Profit Sharing 10,840 10,840 10,840 10,840
50% of Social Security - 4,680 - 4,680
Previous employer 5,300 5,300 5,300 5,300
Total 94,940 94,940 47,470 49,810
The following factors were used in determining the above results:
Joint and Survivor factors:
50% J&S (Salaried benefit) 88.97%
50% with 10 years (SERP) 86.00
Salaried early retirement factor 58.00
Immediate annuity for profit sharing 11.0694
Supplemental plan factors:
at 65 55%
at 60 50
at 58 46
ATTACHMENT D
Page 3 of 4
Example H
PARKER HANNIFIN CORPORATION
Supplemental Executive Retirement Plan
Example of Death Benefits for Participants
A participant dies at age 53 after working for 20 years. The Supplemental
benefit to his spouse (age 50) is based on the following information:
Salaried Plan benefit at 65 $ 100,000
Profit Sharing balance at 58 90,000
Immediate benefit from Profit Sharing ($90,000 / 12.1667) 7,400
Salaried Plan benefit at 53 (life only) (.32 x $100,000) $ 32,000
Benefit on 50% J&S basis (.9085 x $32,000) 29,080
Benefit to spouse (.50 x $29,080) 14,450
Assumed Social Security benefit at 62 9,360
The Supplemental benefits are determined as follows:
Final three-year average salary $ 240,000
Base Supplemental benefit (.36 x $240,000) 86,400
Supplemental after J&S adjustment (.8882 x $86,400) 76,740
Less:
Salaried plan benefit 14,540
Profit Sharing benefit 7,400
Annual benefit to spouse under 62 $ 54,800
Less: 50% of Social Security 4,680
Annual benefit to spouse 62 and over $ 50,120
Total retirement income to the spouse will be as follows:
For 10 years After 10 years
________________________ ________________________
While under While 62 While under While 62
Plan Age 62 and over Age 62 and over
____ __________ ________ ___________ ________
Salaried Plan $ 14,540 $ 14,540 $ 14,540 $ 14,450
Supplemental Plan 54,800 50,120 16,430 14,090
Profit Sharing 7,400 7,400 7,400 7,400
50% of Social Security - 4,680 - 4,680
Total 76,740 76,740 38,370 40,710
ATTACHMENT D
Page 4 of 4
The following factors were used in determining the above results:
Joint and Survivor factors:
50% J&S (Salaried benefit) 90.85%
50% with 10 years (SERP) 88.82
Salaried early retirement factor 32.00
Immediate annuity for profit sharing 12.1667
Supplemental plan factors:
at 65 55%
at 60 50
at 55 40
at 53 36