EXHIBIT 10(I)
CONSTELLATION HOLDINGS, INC.
SUMMARY OF AMENDED EXECUTIVE BENEFITS PLAN
The objective of the Plan is to enhance the benefits provided to high-
level, senior management employees of Constellation Holdings, Inc. and
certain of its subsidiaries in order to attract and retain talented
executive personnel.
SUPPLEMENTAL PENSION BENEFIT.
Those who are participants at the time of retirement will generally be
entitled to a supplemental pension benefit under this Plan, which will be
calculated as follows:
- add the Annual Base Salary and the Average Incentive Award,
- divide the sum by 12,
- multiply this dollar amount by the appropriate percentage,
determined as follows: President of Constellation Holdings, Inc. - 60%;
all other participants (by completed years of Credited Service) 1 though
9 - 3% per year; 10 though 19 - 40%; 20 through 24 - 45%; 25 through 29 -
50%; and 30 or more - 55%,
- multiply this dollar amount by the Early Retirement Adjustment
Factor under the Pension Plan,
- subtract from this dollar amount the charges relating to coverage
for a preretirement survivor annuity in excess of 50%, and for a post-
retirement survivor annuity in excess of 50%, and
- subtract from the remainder the net amount received by the
participant under the Pension Plan.
The supplemental pension benefit is payable either in the form of a
lump sum or in monthly installments at the election of the participant, and
is payable from a funded trust. If a participant receives (or would have
received but for the Internal Revenue Code limitations) cost of living
adjustment(s) under the Pension Plan, the payments hereunder will be
automatically increased based on the percentage of, and at the same time
as, such adjustment(s).
A participant is eligible to retire under this Plan on the first day
of any month preceding his/her Normal Retirement Date, if the participant
has attained (i) age 55 and has accumulated at least 20 years of Credited
Service; or (ii) age 60 and has accumulated at least one year of Credited
Service.
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In addition, the gross supplemental pension benefit amounts will be
accrued, and participants will be entitled to the accrued benefit when any
of the following events occur before retirement: termination, demotion or
loss of benefit eligibility without cause; a change in control of Baltimore
Gas and Electric Company followed within two (2) years by the participant's
demotion, termination or loss of benefit eligibility; or reduction of
previously accrued benefits. As a result of the occurrence of any such
event, the participant is entitled to a lump sum payout of the accrued
benefit amount from a funded trust at the later of age 55 or employment
termination.
SUPPLEMENTAL LONG-TERM DISABILITY BENEFIT.
Any participant with at least one year of Credited Service who, as
determined by the Manager, Safety and Medical Services Department of BGE,
is disabled, is entitled to a supplemental disability benefit under this
Plan. The amount of such supplemental disability benefit shall be
determined as follows:
- multiply the monthly base salary by twelve,
- add the Average Incentive Award to the product,
- divide the sum by 12,
- multiply this monthly dollar amount by 60%, and
- subtract from the product the gross amounts provided for the
participant under the LTD plan before such amounts are reduced for Offset
for Other Income (as that term is defined in the LTD Plan).
The monthly disability benefit will continue until the Normal
Retirement Date or until 60 monthly payments have been made, whichever
produces a larger net benefit to the participant.
If a participant receives cost of living adjustment(s) under the LTD
Plan, the payments hereunder will be automatically increased based on the
same percentage of, and at the same time as, such adjustment(s).
SUPPLEMENTAL 50% SURVIVOR ANNUITY BENEFIT.
Following the death of a participant, a supplemental survivor annuity
will be paid to the participant's surviving spouse until the death of that
spouse. For purposes of this benefit, a participant's surviving spouse is
the individual married to the participant on the date of the participant's
death.
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If there is no surviving spouse, no supplemental survivor annuity will
be payable.
The amount of the supplemental survivor annuity will generally be
determined as follows:
- if the participant had retired prior to the date of death, begin
with the pension benefit that the participant was receiving prior to the
date of death. Otherwise, begin with the larger of the Early Retirement
pension benefit to which the participant would have been entitled to
receive if the (i) participant had been retired at age 60 on the date of
death for purposes of computing the Early Retirement Adjustment Factor, or
(ii) participant had retired on the date of death for purposes of computing
the Early Retirement Adjustment Factor,
- multiply by .5, and
- subtract from the product the net amount, if any, of the Survivor
Annuity provided on behalf of the participant under the Pension Plan.
If a surviving spouse receives cost of living adjustment(s) under the
Pension Plan, the payments hereunder will be automatically increased based
on the percentage of, and at the same time as, such adjustment(s).
DEATH BENEFIT.
The Company shall make arrangements, for whole life insurance coverage
for each participant providing that the participant's beneficiary shall
receive, as a pre-rollout death benefit, an amount which is approximately
equal to three times the participant's compensation, and as a post-rollout
benefit, an amount which is approximately equal to two times the
participant's compensation, as set forth in a separate agreement between
the Company and the participant.
In the event that either (i) a participant is ineligible to receive
the type of whole life insurance coverage provided to other participants
under this Plan, or (ii) such coverage is not available on reasonably cost-
effective terms, then the Company shall pay the cost of his/her receiving a
benefit that, in the discretion of the Company, is determined to be
substantially equivalent to the value provided to other participants under
this Plan.
DEPENDENT DEATH BENEFIT.
In the event of the death of a participant's qualified dependent while
the participant is an active employee of the Company, the Company shall
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make a death benefit payment to the participant. Qualified dependent shall
have the same meaning as set forth in BGE's Family Life Insurance Plan.
The amount of the death benefit payment shall generally be the highest
amount of insurance that would have been payable with respect to such
qualified dependent if coverage had been provided under BGE's Family Life
Insurance Plan. The dependent death benefit payment under this Plan shall
be grossed-up to provide for income taxes.
SICKNESS BENEFIT.
Each participant shall generally be entitled to a minimum of twenty-
six (26) weeks of sick benefits under the Company's Sick Benefit Plan
without regard to length of Service.
VACATION BENEFIT.
Each participant shall generally be entitled to a minimum of five
weeks of paid vacation under the Company's Vacation Benefits Plan without
regard to length of service.
PLANNING BENEFIT.
Each participant shall generally be entitled to certain personal
financial, tax, and estate planning services paid for by the Company but
provided through designated professional firms. This entitlement shall be
subject to any dollar limitation established by the Plan Administrator with
respect to all such fees. The services shall be provided to each
participant by the chosen firm(s) on a personalized and confidential basis;
and each firm shall have sole responsibility for quality of the services
which it may render.
The services to be provided shall be on an on-going and continuous
basis, but shall be limited to (i) the development and legal documentation
of both career-oriented financial plans and estate plans, and (ii) tax
counseling regarding personal tax-return preparation and the most
advantageous structuring, tax-wise, of proposed personal transactions.
Such planning benefit shall continue during the year of retirement
plus the next two calendar years and include the completion of the federal
and state personal tax returns for the second calendar year following
retirement. However, if a retired member of senior management continues to
serve as a member of the Board of Directors of the Company, his/her
planning benefit period shall be extended until he/she no longer serves as
a member of the Board of Directors.
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Upon the death of a participant entitled to the planning benefit
provided hereunder at the time of death, his/her surviving spouse shall be
entitled to receive the following planning benefit: (i) if the deceased
was not retired at the time of death, the surviving spouse shall be
entitled to the planning benefit for the year in which the death occurred
plus the next two (2) calendar years, including completion of the federal
and state personal tax returns for the second calendar year after the year
in which the death occurred; or (ii) if the deceased was retired at the
time of death, then the surviving spouse shall receive a planning benefit
equal to that the deceased would have received if he/she had not died prior
to expiration of the planning benefit. The surviving spouse of a retired
member of senior management whose death occurs while serving as a member of
the Board of Director of the Company shall be entitled to a planning
benefit as set forth in (i) above.
The planning benefit provided under this Plan shall be grossed-up to
provide for income taxes.
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