EXHIBIT 10.3
SUPPLEMENTAL RETIREMENT INCOME PLAN
Originally Adopted - August 21, 1978
Last Amended - June 4, 1996
E. I. du Pont de Nemours and Company
EXHIBIT 10.3
SUPPLEMENTAL RETIREMENT INCOME PLAN
I. PURPOSE
The purpose of this Plan is to supplement an employee's pension
payable under the Company's Pension and Retirement Plan to provide Monthly
Retirement Income which represents an appropriate percentage of Average total
Monthly Pay. Supplemental retirement income generally will be provided under the
Plan to those eligible employees for whom awards under the Variable Compensation
Plan, the Incentive Compensation Plan or the former Dividend Unit Plan of the
Company are a significant part of Average Total Monthly Pay.
II. ELIGIBILITY
An employee whose effective date of retirement is after August 1, 1977
will participate in this Plan.
1. To the extent of the benefits provided herein if he is eligible for an
unreduced monthly pension payable under Section IV (the Normal,
Incapability, Early or Optional Retirement provisions) of the
Company's Pension and Retirement Plan; or
2. To the extent deemed appropriate by the Compensation and Benefits
Committee or its delegate if he is eligible for a reduced monthly
pension payable under Section IV (the Early or Optional Retirement
provisions) of the Company's Pension and Retirement Plan.
III. AMOUNT OF SUPPLEMENTAL RETIREMENT INCOME
A. The amount of monthly supplemental retirement income payable to an
employee will be the excess, if any, of (1) the employee's Monthly
Retirement Income, as determined under paragraph B of this Section,
over (2) the employee's monthly pension under the Company's Pension
and Retirement Plan, as determined under paragraph C of this Section.
B. The amount of an employee's Monthly Retirement Income will be Average
Total Monthly Pay multiplied by the applicable percentage factor from
the following table, minus 50% of Primary Social Security Benefit.
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EXHIBIT 10.3
Average Years of Service
Total ------------------------------------------------------------
Monthly Pay 40 &
(in thousands) 15 20 25 30 35 Over
- -------------- ----- ----- ----- ----- ----- -----
$15 & Under 20.8% 27.6% 34.4% 41.2% 48.0% 54.8%
20 19.5 26.3 33.1 39.9 46.7 53.5
30 19.2 25.9 32.5 39.1 45.7 52.3
40 19.1 25.5 32.0 38.5 44.9 51.4
50 19.0 25.4 31.8 38.3 44.7 51.2
80 & Over 18.9 25.2 31.6 37.9 44.3 50.7
For intermediate Average Total Monthly Pay and Service combinations,
the percentage factor will be interpolated from the above.
================================================================================
The amount determined above may not be greater than 50% of Average
Total Monthly Pay.
C. The amount of an employee's monthly pension taken into account under
paragraph A of this Section will be the benefit, exclusive of any
supplement for Incapability Retirement, determined without regard to
the limitations imposed under paragraphs A(2)(b)(iii) and A(2)(b)(v)
and D of Section IX of the Company's Pension and Retirement Plan and
prior to any adjustment on account of (1) Early or Optional
Retirement, (2) the Income-Leveling option, (3) any spouse or survivor
benefit provision, or (4) benefits to which an employee is entitled
from any other private organization or from, or under the law of, any
foreign government.
D. If an employee's monthly pension under the Company's Pension and
Retirement Plan is reduced in accordance with the Early or Optional
Retirement provisions of that Plan, the same percentage reduction
factor used in that Plan will be applied to the monthly supplemental
retirement income determined under paragraph A of this Section.
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EXHIBIT 10.3
E. If the limitation set forth in Section IX.A(2)(b)(iii) of the
Company's Pension and Retirement Plan relating to any deferred
Variable Compensation Award has been applied, effective January 1,
1996, the amount of monthly supplemental retirement income payable to
an employee under this Plan will include the amount of pension benefit
attributable to the deferred Variable Compensation Award.
IV. PAYMENTS OF BENEFITS
A. Subject to paragraphs B and C below, an eligible employee will be
entitled to monthly supplemental retirement income payments for the
period beginning on the day after he retires under the Company's
Pension and Retirement Plan and ending on the last day of the month in
which he dies.
B. If the monthly supplemental retirement income is or becomes less than
or equal to the minimum monthly payment amount fixed by the Board of
Benefits and Pensions, the actuarial equivalent of all such remaining
monthly payments shall be paid in a lump sum.
C. An eligible employee may irrevocably elect under rules prescribed by
the Board of Benefits and Pensions to receive the actuarial equivalent
of all or part of the monthly supplemental retirement income in a lump
sum.
D. Except as otherwise provided, benefits under this Plan are determined
based on the Plan in effect at the time of retirement.
V. DEFINITIONS AND GENERAL CONDITIONS
A. Definitions
1. All terms used in this Plan which are defined in the Company's
Pension and Retirement Plan will have the same meaning for
purposes of this Plan except as expressly provided herein.
2. (a) The term "Average Total Monthly Pay" means the higher of
(i) total pay for the thirty-six consecutive calendar
months for which the employee's pay is the highest,
divided by 36; or
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EXHIBIT 10.3
(ii) average pay per month based on total pay over a number of
calendar years, and a fraction of total pay for a
calendar year if necessary, sufficient to obtain an
aggregate amount of service equivalent to three full
years. Such calendar years shall be selected beginning
with the calendar year in which average pay per month was
the highest and taking in turn calendar years of
successively lower average pay per month. A fraction of
total pay for a calendar year shall be calculated by
multiplying average pay per month for that year by the
number of months needed to yield an aggregate amount of
service equivalent to three full years. Only pay for the
120 calendar months up to and including the calendar
month in which the employee retires under the Company's
Pension and Retirement Plan will be taken into account in
computing Average Total Monthly Pay.
(b) The term "pay" includes variable pay and awards under the
Variable Compensation Plan, the Incentive Compensation Plan
and former Dividend Unit Plan of the company or similar plans
of any of its affiliated companies, which are not forfeited,
but does not include (i) allowances in connection with
transfer of employment or termination of employment and other
special payments, or (ii) awards, pay under a gain sharing
program or payments under the Special Compensation Plan or
Stock Option Plan of the Company or similar plans of the
Company or any of its affiliated companies.
(c) The value of an award under the Company's Variable
Compensation Plan, the Incentive Compensation Plan or former
Dividend Unit Plan for any calendar year will be prorated over
the length of an employee's service for that year which is
used in computing his benefit under this Plan to the extent
the award is attributable to such service. The value of an
award under the Variable Compensation Plan, or the Incentive
Compensation Plan will be the total award value approved by
the Compensation and Benefits Committee. The value of an award
under the former Dividend Unit Plan will be the value used by
the Compensation and Benefits Committee in determining the
number of dividend units awarded to an employee.
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EXHIBIT 10.3
(d) Where a retired employee is granted an award under the
Variable Compensation Plan, the Incentive Compensation Plan or
the former Dividend Unit Plan for the calendar year in which
his retirement is effective, his Average Total Monthly Pay
will be recomputed and, if applicable, his monthly
supplemental retirement income will be increased beginning the
month following that in which such award is granted.
3. The term "Service" means the length, in years and fractions of a
year, of an employee's period of "continuous service" as
determined under the Company's Continuity of Service Rules for
computing the amount of a pension and, to the extent prescribed in
such Rules, recognition will be given for service which the
employee has rendered to an affiliated company or to a company
whose assets have been acquired in whole or in part, by the
Company.
4. The term "Company" means E. I. du Pont de Nemours and Company,
any wholly owned subsidiary or part thereof and any partnership
or joint venture in which E. I. du Pont de Nemours and Company is
joined which adopts this Plan with the approval of the Company,
or such person or persons as the Company may designate.
B. Payments Rounded to Next Higher Full Dollar
Each monthly payment which is computed in accordance with this Plan
will, if not in whole dollars, be increased to the next higher whole
dollar. Such rounding shall be made after applying any applicable
reduction factors.
C. Nonassignment
No assignment of the rights and interests under this Plan will be
permitted or recognized under any circumstances, nor shall such rights
and interests be subject to attachment or other legal processes for
debt.
D. Forfeiture of Benefits
If an employee forfeits all or part of an award under the Company's
variable Compensation Plan, the Incentive Compensation Plan or former
Dividend Unit Plan, all rights and interests of the employee under
this Plan will be forfeited.
E. Administration
1. The administration of this Plan is vested in the Board of
Benefits and Pensions appointed by the Company, except that the
Compensation and Benefits Committee shall determine the discount
rate to be used in
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EXHIBIT 10.3
calculating the lump sum payment described in Section IV. The Board
shall have the discretionary right to determine eligibility for
benefits hereunder and to construe the terms and conditions of this
Plan. The Board may adopt, subject to the approval of the Compensation
and Benefits Committee, or its delegate, such rules as it may deem
necessary for the proper administration of the Plan, and its decision
in all matters involving the interpretation and application of the
Plan shall be final, conclusive and binding.
2. All expenses and costs in connection with the operation of this
Plan shall be borne by the Company out of its general assets.
F. Amendment
The Company reserves the right to change this Plan in its discretion
by action of the Compensation and Benefits Committee or its delegate,
or to discontinue this Plan in its discretion by action of the Board
of Directors.
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