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Exhibit 10 (v)
CURTISS-WRIGHT CORPORATION
RETIREMENT PLAN
AMENDED AND RESTATED,
effective as of JANUARY 1, 2001,
except as otherwise specified
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TABLE OF CONTENTS
PREAMBLE.................................................................................................1
ARTICLE 1: DEFINITIONS..................................................................................3
ARTICLE 2: ELIGIBILITY.................................................................................16
2.01 Eligibility for Participation................................................................16
2.02 Break in Service.............................................................................16
2.03 Transferred Employees........................................................................16
ARTICLE 3: COMPANY CONTRIBUTIONS.......................................................................17
3.01 Amount.......................................................................................17
3.02 Payment......................................................................................17
3.03 Forfeitures..................................................................................17
3.04 Return of Company Contributions..............................................................17
ARTICLE 4: ESCALATING ANNUITY BENEFIT..................................................................18
4.01 Escalating Annuity Benefit and Cash Balance Account..........................................18
4.02 Pay Based Credits............................................................................18
4.03 Cost of Living Adjustment....................................................................18
4.04 Vesting......................................................................................19
4.05 Distribution of Escalating Annuity Benefit...................................................19
4.06 Death Benefit................................................................................20
4.07 Amount of Escalating Annuity Benefits........................................................20
4.08 Supplemental Credits.........................................................................21
ARTICLE 5: VESTING.....................................................................................21
5.01 Vesting Schedule.............................................................................21
5.02 Break in Service.............................................................................23
5.03 Forfeiture and Restoration of Vesting Years of Service and Credited Service..................23
5.04 Applicability of Prior Vesting Schedule......................................................25
ARTICLE 6: AMOUNT AND COMMENCEMENT OF RETIREMENT BENEFIT...............................................26
6.01 Normal Retirement............................................................................26
6.02 Minimum Retirement Benefits..................................................................31
6.03 Early Retirement.............................................................................31
6.04 Deferred Retirement..........................................................................32
6.05 Disability Retirement........................................................................32
6.06 Termination of Service After August 31, 1994.................................................33
6.07 Employee Contributions.......................................................................33
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6.08 Leave of Absence.............................................................................33
6.09 Deferred Commencement of Benefits............................................................34
6.10 Deductions for Disability Benefits...........................................................34
6.11 Mandatory Commencement of Benefits...........................................................34
6.12 Maximum Retirement Benefit...................................................................35
6.13 Prior Plan Benefit...........................................................................36
6.14 Supplemental Benefit.........................................................................43
ARTICLE 7: FORM OF BENEFIT PAYMENT.....................................................................44
7.01 Normal Form of Payment.......................................................................44
7.02 Optional Forms of Payment For All Benefits...................................................44
7.03 Limitation on Optional Forms of Payment......................................................46
7.04 Notice to Married Participants...............................................................47
7.05 Mandatory Cashout of Small Benefits..........................................................47
7.06 Annuity Contract Nontransferable.............................................................48
7.07 Conflicts With Annuity Contracts.............................................................48
7.08 Rollovers....................................................................................48
7.09 Waiver of Thirty (30) Day Notice Period......................................................49
ARTICLE 8: DEATH BENEFITS..............................................................................50
8.01 Pre-Retirement Death Benefit.................................................................50
8.02 Post-Retirement Death Benefit................................................................50
8.03 Payment to Beneficiary.......................................................................51
8.04 Required Distributions.......................................................................51
8.05 Return of Contributions......................................................................52
ARTICLE 9: RETIREMENT BENEFITS UNDER COLLECTIVE BARGAINING AGREEMENTS..................................53
9.01 Eligibility for Employees Subject to a Collective Bargaining Agreement.......................53
9.02 Amount, Form, and Commencement of Retirement Benefit.........................................53
9.03 Credited Service.............................................................................70
9.04 Definitions..................................................................................73
ARTICLE 10: MERGER OF METAL IMPROVEMENT COMPANY, INC. AND CURTISS-WRIGHT FLIGHT SYSTEMS/SHELBY, INC.
CONTRIBUTORY RETIREMENT PLANS...........................................................................74
10.01 Merger Date..................................................................................74
10.02 Eligibility..................................................................................74
10.03 Retirement Benefits..........................................................................74
10.04 Prior Accrued Benefit........................................................................75
10.05 Vesting......................................................................................75
10.06 Transfer of Assets...........................................................................75
ARTICLE 11: ADMINISTRATION..............................................................................76
11.01 Plan Administrator...........................................................................76
11.02 Committee's Authority and Powers.............................................................76
11.03 Delegation of Duties.........................................................................76
11.04 Compensation.................................................................................76
11.05 Exercise of Discretion.......................................................................76
11.06 Fiduciary Liability..........................................................................76
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11.07 Indemnification by Company................................................................77
11.08 Plan Participation by Fiduciaries.........................................................77
ARTICLE 12: AMENDMENT AND TERMINATION OF PLAN........................................................78
12.01 Amendment.................................................................................78
12.02 Procedure for Amendment...................................................................79
12.03 Company's Right to Terminate Plan.........................................................79
12.04 Consequences of Termination...............................................................79
12.05 Special Restrictions on Benefits..........................................................79
ARTICLE 13: MERGER OF PLAN AND TRANSFER OF ASSETS OR LIABILITIES.....................................80
13.01 Merger or Transfer........................................................................80
13.02 Transfer from Trust.......................................................................80
13.03 Transfer to Trust and Transfer Account....................................................80
ARTICLE 14: SPECIAL PROVISIONS FOR NON-KEY EMPLOYEES.................................................81
14.01 Effective Date............................................................................81
14.02 Determination of Top-Heavy Status.........................................................81
14.03 Minimum Benefit...........................................................................84
14.04 Minimum Vesting...........................................................................85
ARTICLE 15: GENERAL PROVISIONS.......................................................................85
15.01 Trust Fund Sole Source of Payments for Plan...............................................85
15.02 Exclusive Benefit.........................................................................86
15.03 Binding Effect............................................................................86
15.04 Nonalienation.............................................................................86
15.05 Claims Procedure..........................................................................87
15.06 Location of Participant or Beneficiary Unknown............................................88
15.07 Applicable Law............................................................................88
15.08 Rules of Construction.....................................................................88
SCHEDULE A 1: EARLY RETIREMENT FACTORS ON OR AFTER SEPTEMBER 1, 1994.................................90
SCHEDULE A 2: DEFERRED RETIREMENT FACTORS ON OR AFTER SEPTEMBER 1, 1994..............................91
SCHEDULE B: RETIREMENT PLAN RATES IN FORCE FOR PURPOSES OF SECTION 6.13(B)(II)(D)...................92
SCHEDULE C: EARLY RETIREMENT FACTORS FOR DEFERRED VESTED EMPLOYEES WHO TERMINATED EMPLOYMENT
PRIOR TO SEPTEMBER 1, 1994 AND PRIOR TO AGE 55 (CONTRIBUTORS)........................................93
SCHEDULE D: EARLY RETIREMENT FACTORS FOR EARLY COMMENCEMENT OF DEFERRED VESTED PENSIONS.............94
SCHEDULE E: JOINT AND SURVIVOR FACTORS..............................................................95
SCHEDULE F: EARLY RETIREMENT FACTORS (UNION EMPLOYEES)..............................................96
SCHEDULE G 1: WOOD-RIDGE DEFERRED PENSION RATES......................................................97
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SCHEDULE G 2: BUFFALO DEFERRED PENSION RATES............................................................98
SCHEDULE G 3: CURTISS-WRIGHT FLIGHT SYSTEMS DEFERRED PENSION RATES.....................................100
SCHEDULE G 4: TARGET ROCK CORPORATION DEFERRED PENSION RATES...........................................101
SCHEDULE H: CERTAIN BUFFALO EMPLOYEES..................................................................103
SCHEDULE I 1: SPECIAL FACTORS FOR ADDITIONAL BENEFITS REFERENCED IN SECTION 6.01(C)....................104
SCHEDULE I 2: SPECIAL FACTORS FOR BENEFITS REFERENCED IN SECTION 6.01(D)...............................105
SCHEDULE J: SPECIAL PROVISIONS APPLICABLE TO EMPLOYEES OF ACQUIRED ENTITIES............................106
SCHEDULE K 1: SPECIAL PROVISIONS FOR SUPPLEMENTAL CREDITS FOR PARTICIPANTS AFFECTED BY CERTAIN
REDUCTIONS IN FORCE ...................................................................................112
SCHEDULE K 2: SPECIAL VESTING PROVISIONS FOR PARTICIPANTS AFFECTED BY CERTAIN REDUCTIONS IN FORCE......113
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CURTISS-WRIGHT CORPORATION RETIREMENT PLAN
AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2001,
except as otherwise specified
PREAMBLE
The Curtiss-Wright Contributory Retirement Plan, a defined benefit
pension plan, was established effective May 1, 1953 for eligible non-union
Employees of the Curtiss-Wright Corporation ("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.
Effective December 31, 1991, the Curtiss-Wright Pension Plan was merged
into the Curtiss-Wright Contributory Retirement Plan.
Wherever the term "Prior Plan" is used herein, it 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.
Effective September 1, 1994, the Prior Plan was renamed the
Curtiss-Wright Corporation Retirement Plan ("the Plan"), the Plan was amended
and restated in its entirety ("the September 1, 1994 Restatement"), and the
Metal Improvement Company, Inc. Retirement Income Plan and the Curtiss-Wright
Flight Systems/Shelby, Inc. Contributory Retirement Plan were merged into the
Plan. The September 1, 1994 Restatement included special effective dates for
certain provisions thereof, in accordance with the requirements of the Tax
Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1986, the Omnibus
Budget Reconciliation Act of 1987, the Technical and Miscellaneous Revenue Act
of 1988, the Omnibus Budget Reconciliation Act of 1989, the Unemployment
Compensation Amendments of 1992, the Omnibus Budget Reconciliation Act of 1993
and regulations and rulings thereunder. Subsequent to the September 1, 1994
Restatement, the Plan has been amended from time to time.
The Company hereby amends and restates the Plan in its entirety,
effective as of January 1, 2001, provided, however, that the effective date of
any provision or provisions of the Plan shall, to the extent required by
specific provisions of the Plan, the Uruguay Round Agreements Act, the Uniformed
Services Employment and Reemployment Rights Act of 1994, the Small Business Job
Protection Act of 1996, the Taxpayer Relief Act of 1997, the Internal Revenue
Service Restructuring and Reform Act of 1998, the Community Renewal Tax Relief
Act of 2000, or the Economic Growth and Tax Relief Reconciliation Act of 2001 or
other law, be any such earlier or other effective date required by the Plan,
such acts or such law.
Until the applicable effective dates of the provisions of the Plan as
hereby amended and restated, the September 1, 1994 Restatement shall continue in
full force and effect and its provisions shall be amended and restated as of the
applicable
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effective dates described herein, without any termination or gap or lapse in
time or effect.
The amount of benefits, forms of benefit, benefits payable upon a
Participant's death, and commencement of benefits for Participants who are
non-union employees are set forth in Articles 4, 5, 6, 7, and 8. The amount of
benefits, benefits payable upon death, and commencement of benefits for
Participants who are union employees are set forth in Article 9.
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ARTICLE 1: DEFINITIONS
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.
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 IRS Mortality Table.
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 commenced at age sixty-five (65), reduced
without subsidy to an age below fifty-five (55).
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 IRS Mortality Table. and
the IRS Interest Rate.
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,
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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 IRS Mortality Table. 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 age attained by a Participant, expressed in years and
months.
1.03 "Affiliated Employer" means any company not participating in the Plan
which is a Participant of a controlled group of corporations, as
defined in Section 414(b) of the Code, which also includes as a member
the Employer; any trade or business under common control, as defined in
Section 414(c) of the Code, with the Employer; any organization,
whether or not incorporated, which is a member of an affiliated service
group, as defined in Section 414(m) of the Code, which includes the
Employer; and any other entity required to be aggregated with the
Employer pursuant to regulations under Section 414(o) of the Code.
Notwithstanding the foregoing sentence, for purposes of Section 6.12
and Section 1.26, the definitions in Sections 414(b) and (c) of the
Code shall be modified as provided in Section 415(h) of the Code.
1.04 "Annuity Starting Date" means the first day of the period for which an
amount is payable as an annuity or, 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 Chairman of the
Board of Directors 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 association 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 reorganization 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, provided,
however, payments under the Company's incentive compensation plans and
for accrued vacation pay shall be taken into account in the periods to
which such payments relate. 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, or under a "cafeteria plan," as defined in Section 125 of
the Code.
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 Compensation, 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, in lieu of the $200,000 limitation set forth above, or
as previously adjusted.
For Plan Years beginning on or after January 1, 1994 and prior to
January 1, 2002, 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
(determination period) beginning in such calendar year.
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Effective for Plan Years beginning on or after January 1, 1989 and
prior to January 1, 1997, 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 Section 414(q)(6) of
the Code, 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 determining compensation below the
Plan's integration level.
For Plan Years beginning on or after January 1, 1994 and prior to
January 1, 2002, (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 determining 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.
For Plan Years beginning on or after January 1, 2002, the annual compensation of
each Participant taken into account under the Plan shall not exceed $200,000, as
adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B)
of the Code. In determining benefit accruals in plan years beginning on or after
January 1, 2002, the annual compensation limit described in this paragraph shall
be taken into account, for determination periods beginning before January 1,
2002.
Special Provisions applicable under Prior Plan:
(a) 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:
(i) 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
(ii) 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
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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.
(b) For purposes only of subparagraphs 3(c)(i)(B) of Article III
of the Prior Plan, Compensation means:
(i) prior to July 1, 1970, the basic salary or basic wages
actually paid to the Employee in the particular Plan
Year;
(ii) after June 30, 1970, the basic salary or basic wages
plus cash payments under the Company's Modified
Incentive Compensation Plan actually paid to the
Employee in the particular Plan Year; and
(iii) 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
(a tax qualified defined contribution plan,
subsequently renamed the Curtiss-Wright Corporation
Savings and Investment Plan, herein, "the Savings
Plan"). Basic salary, basic wages or Compensation
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 Savings Plan.
"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
compensation 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 in accordance with Section
1.401(l)-1(c)(7) of the Treasury Regulations. A Participant's Covered
Compensation shall be adjusted each Plan Year. 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 retirement benefit.
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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 December 31,
1991, 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 periods of his
employment not included as Credited Service under Subsections
(a) and (b) above.
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.
Special Provisions applicable under Prior Plan
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.
Special Provisions applicable to Employees of Acquired Entities
The Credited Service of Employees who were formerly employed by
entities that were acquired by the Employer shall be subject to the
special rules set forth in Schedule J.
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
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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 Participant 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.
1.17 "Effective Date." The original effective date of the Prior Plan was
May 1, 1953.The effective date of this amendment and restatement of
the Plan is January 1,2001, except as otherwise provided herein, or as
required by applicable law.
1.18 "Employee" means any Employee of the Company or of any other Employer.
The term Employee shall not include any Leased Employee deemed to be an
employee of any Employer described in the foregoing paragraph as
provided in Section 414(n) or (o) of the Code.
Any person deemed to be an independent contractor by any Employer and
paid by the Employer in accordance with its practices for the payment
of independent contractors, including the provision of tax reporting on
Internal Revenue Service Form 1099, shall be excluded from the
definition of Employee for all purposes under the Plan, notwithstanding
any subsequent reclassification of such person for any purpose under
the Code, whether agreed to by the Employer or adjudicated under
applicable law.
The term "employee," as used in the Plan, means any individual who is
employed by an Employer or an Affiliated Employer as a common law
employee of the Employer or an Affiliated Employer, regardless of
whether the individual is an "Employee," and any Leased Employee.
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 provisions 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.
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1.22 "Highly Compensated Employee" means, for a Plan Year commencing on or
after January 1, 1997, any employee of the Employer or an Affiliated
Employer (whether or not eligible for membership in the Plan) who:
(a) was a 5 percent owner (as defined in Section 416(i)
of the Code) for such Plan Year or the prior Plan
Year, or
(b) for the preceding Plan Year received Statutory
Compensation in excess of $80,000, and was among the
highest 20 percent of employees for the preceding
Plan Year when ranked by Statutory Compensation paid
for that year, excluding, for purposes of determining
the number of such employees, such employees as the
Committee may determine on a consistent basis
pursuant to Section 414(q) of the Code. The $80,000
dollar amount in the preceding sentence shall be
adjusted from time to time for cost of living in
accordance with Section 414(q) of the Code.
Notwithstanding the foregoing, employees who are nonresident aliens and
who receive no earned income from the Employer or an Affiliated
Employer which constitutes income from sources within the United States
shall be disregarded for all purposes of this Section.
The Employer's top-paid group election as described above, shall be
used consistently in determining Highly Compensated Employees for
determination years of all employee benefit plans of the Employer and
Affiliated Employers for which Section 414(q) of the Code applies
(other than a multiemployer plan) that begin with or within the same
calendar year, until such election is changed by Plan amendment in
accordance with IRS requirements. Notwithstanding the foregoing, the
consistency provision in the preceding sentence shall not apply for the
Plan Year beginning in 1997 and, for Plan Years beginning in 1998 and
1999, shall apply only with respect to all qualified retirement plans
(other than a multiemployer plan) of the Employer and Affiliated
Employers.
The provisions of this Section shall be further subject to such
additional requirements as shall be described in Section 414(q) of the
Code and its applicable regulations, which shall override any aspects
of this Section inconsistent therewith.
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,
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11
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
(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.
The Hours of Service credited shall be determined as required by
Section 2530.200b-2(b) and (c) of the Labor Regulations.
1.24 "IRS Interest Rate" means 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 applicable
Stability Period, which rate is the interest rate published in Federal
Reserve release H.15, or its successor, as the average yield on a
30-year Treasury Constant Maturities for said month.
1.25 "IRS Mortality Table" means the mortality table prescribed by the
Secretary of the Treasury under Section 417(e)(3)(A)(ii)(I) of the Code
as in effect on the first day of the applicable Stability Period.
1.26 "Leased Employee" means, effective for Plan Years beginning on or after
January 1, 1997, any person (other than a common law employee of the
Employer) who, pursuant to an agreement between the Employer and any
other person ("leasing organization"), has performed services for the
Employer or any 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 performed under the primary
direction of or control by the Employer. In the case of any person who
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12
is a Leased Employee before or after a period of service as an
Employee, the entire period during which he has performed services
as a Leased Employee for the Employer or an Affiliated Employer
shall be counted as service as an Employee for all purposes of
the Plan, except that he shall not, by reason of that status,
become a Participant in the Plan.
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.
1.27 "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.
1.28 "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.
1.29 "Limitation Year" means, for purposes of complying with Section 415
of the Code, a Plan Year.
1.30 "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;
(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
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13
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.
1.31 "Named Fiduciary" means the Company.
1.32 "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.
1.33 "Normal Retirement Date" means the first day of the month coinciding
with or next following the Participant's Normal Retirement Age
1.34 "Participant" means a person who meets the requirements of Article 2,
9 or 10 for participation in the Plan, including a former
Participant.
1.35 "Plan" means the Curtiss-Wright Corporation Retirement Plan, as set
forth herein and as it may be amended.
1.36 "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
(c) commencing with January 1, 1967, a twelve (12) month period
starting January 1 and ending December 31 of the same calendar
year.
1.37 "Present Value" means the Actuarial Equivalent, as defined in
Section 1.01, of the Normal Form of Benefit.
1.38 "Prior Plan" means Curtiss-Wright Contributory Retirement Plan,
established on May 1, 1953, and which was in full force and operation
through August 31, 1994.
1.39 "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.
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14
1.40 "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.
1.41 "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.
1.42 "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.
1.43 "Stability Period" means the Plan Year in which occurs the Annuity
Starting Date for the distribution.
1.44 "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.
1.45 "Trust" means the trust created by the Trust Agreement.
1.46 "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.
1.47 "Trust Fund" means the assets of the Trust.
1.48 "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.
1.49 "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 determined
as of August 31, 1994, 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 Retirement
Income Plan or the Curtiss-Wright Flight Systems/Shelby, Inc.
Retirement Plan. If the Company maintains the Plan of a predecessor
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15
Employer, Service with such Employer will be treated as Service for the
Company.
Special Provisions applicable to Employees of Acquired Entities
The Vesting Years of Service of Employees who were formerly employed by
entities that were acquired by the Employer shall be subject to the
special provisions set forth in Schedule J.
1.50 "Year of Eligibility Service" means , with respect to any Employee, the
12-month period of employment with the Employer or any Affiliated
Employer, whether or not as an Employee, beginning on the date he first
completes an Hour of Service upon hire or rehire, or any Plan Year
beginning after that date, in which he first completes at least 1,000
Hours of Service.
1.51 "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.
1.52 "Year of Service" means, unless otherwise indicated, twelve (12)
consecutive months of Service.
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ARTICLE 2: ELIGIBILITY
2.01 Eligibility for Participation.
(a) Any nonrepresented Employee and any represented Employee whose
union had negotiated a benefit under this Plan, employed by
the Company as of the September 1, 1994, became a Participant
under this Plan as of September 1, 1994.
(b) Any nonrepresented Employee and any represented Employee whose
union has negotiated a benefit under this Plan, not described
in subsection (a), 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 then satisfies the following eligibility
requirements:
(i) He shall be a salaried or hourly Employee; and
(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.
(c) Special Provisions applicable to Employees of Acquired
Entities: The Vesting Years of Service of Employees who were
formerly employed by entities that were acquired by the
Employer shall be subject to the special rules set forth in
Schedule J.
2.02 Break in Service.
There are no Breaks in Service under the terms of this Plan. All periods of
employment shall be aggregated for the purpose of determining whether an
Employee has satisfied the requirements of Section 2.01.
2.03 Transferred Employees.
(a) Any active Participant of the Plan who is transferred to
employment with an Affiliated Employer that is not an Employer
under the Plan:
(i) shall not, for purposes of the Plan, be considered to
have severed his employment with the Employer; and
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(ii) shall remain an active Participant.
(b) Any person who is transferred as described in Section 2.03(a),
or who is transferred to employment with an Employer from
employment with an Affiliated Employer that is not an Employer
under the Plan, shall have his period of employment with such
Affiliated Employer recognized as service for the purpose of
determining his Vesting Years of Service.
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 and such deduction is disallowed, provided
such contribution is returned within one year of the disallowance
of the deduction for Federal income tax purposes and provided
further that each contribution shall be deemed to be conditioned
on its deductibility, unless otherwise stated in writing by the
Company); or
(c) the contribution is made prior to the receipt of a determination
letter from 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
qualification 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.
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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.
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:
(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.
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(iii) 6.230% for calendar year 1996.
(iv) 6.550% for calendar year 1997
(v) for years subsequent to 1997, the 30-year Treasury
Bond rate for December of the prior year.
(b) The Participant's Escalating Annuity Benefit shall be increased
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 Participant'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.
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
Disability Retirement Date, as the case may be, or (ii) the
date he separates from Service with the Company with a vested
benefit.
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(b) A Participant's Escalating Annuity Benefit shall be
distributable 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
Participant'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.
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
the IRS 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
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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 the IRS 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.
4.08 Supplemental Credits.
(a) Supplemental Credits shall be provided in accordance with the
provisions of Schedule K1.
(b) For purposes of Section 4.03(b), the Supplemental Credits
added to a Participant's Escalating Annuity Benefit in
accordance with this section shall be treated in the same
manner as the Pay Based Credits earned by the Participant
during the year in which such supplemental credits were added.
(c) The supplemental credits added to a Participant's Escalating
Annuity Benefit in accordance with this section shall be
payable in the same manner and under the same conditions as
amounts credited to his Escalating Annuity Benefit under
Section 4.02.
ARTICLE 5: VESTING
5.01 Vesting Schedule.
(a) Normal Retirement Benefit determined under Section 6.01.
Upon termination of Service prior to Normal Retirement Date,
the interest of a Participant in that portion of his Normal
Retirement Benefit that is determined in accordance with
Section 6.01 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 employment:
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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) Normal Retirement Benefit derived from Cash Balance Account
as determined under Article 4.
(i) Participant employed prior to June 1, 1997:
Upon termination of Service prior to attaining his Normal
Retirement Age, the interest of a Participant who commenced
employment with an Employer or an Affiliated Employer prior to
June 1, 1997 in the portion of his Normal Retirement Benefit
that is derived from his Cash Balance Account, as determined
in accordance with Article 4 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 PARTICIPANT'S
SERVICE AS OF THE DATE NONFORFEITABLE
OF TERMINATION EQUAL: PERCENTAGE IS:
--------------------- -----------------
1 20%
2 40%
3 60%
4 80%
5 100%
(ii) Participant not employed prior to June 1, 1997:
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Upon termination of Service prior to attaining his Normal
Retirement Age, the interest of a Participant who commenced
employment with an Employer or an Affiliated Employer on or
after June 1, 1997 in the portion of his Normal Retirement
Benefit that is derived from his Cash Balance Account, as
determined in accordance with Article 4 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 PARTICIPANT'S
SERVICE AS OF THE DATE NONFORFEITABLE
OF TERMINATION EQUAL: PERCENTAGE IS:
---------------------- -----------------
4 or less 0%
5 or more 100%
(c) Special Provision for Reductions in Force.
The provisions of subsections (a) and (b) shall be subject to
the provisions of Schedule K 2, if and to the extent
applicable, with respect to Participants whose employment with
the Employer is terminated on account of a reduction in force.
5.02 Break in Service.
There are no Breaks in Service under the terms of this Plan. All periods of
employment shall be aggregated for the purpose of determining a Participant's
Vesting Years of Service and for the purpose of determining whether a
Participant's nonforfeitable percentage in accordance with Section 5.01.
5.03 Forfeiture and Restoration of Vesting Years of Service and Credited
Service.
(a) In the case of a termination of a Participant's employment
from the Employer 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 and to the provisions of
subsection (d), 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.
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(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
forfeited 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, but subject to the
provisions of Section 4.07.
(iv) If the Participant had five or more Vesting Years of
Service at the time of his termination received a
distribution representing less than his entire
Company-derived retirement benefit, all of his Years of
Credited Service shall be restored.
(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) If a Participant's Credited Service is restored in
accordance with paragraphs (iii), or (iv), then, 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 a Participant terminated employment from the Employer, but
did not receive a distribution from the Plan in accordance
with subsection (a), and subsequently resumes covered
employment under the Plan, the following shall apply;
(i) The Participant's Vesting Years of Service shall be
restored.
(ii) The Participant's Credited Service shall be restored.
(d) 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 exceeded)
$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 Participant'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 Sections 411(a)(11) and
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.
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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 Participant 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.
For purposes of this subsection, 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.
5.04 Applicability of Prior Vesting Schedule.
(a) Notwithstanding the vesting schedules set forth in Section
5.01, the vested percentage of a Participant's retirement
benefit shall not be less than the vested percentage
attained under the terms of the Prior Plan as of August 31,
1994.
(b) A Participant with at least three (3) Years of Service as of
September 1, 1994 may elect to have his nonforfeitable
percentage computed under the Prior Plan. 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 vesting schedules
set forth in Section 5.01. The Participant's election period
shall commence on the effective date of Section 5.01 as
amended and shall end sixty (60) days after the latest of:
(i) the adoption date of such amendment,
(ii) the effective date of such amendment, or
(iii) the date the Participant receives written notice of
such amendment from the Company or Plan
Administrator.
Notwithstanding the foregoing, any Employee who was a
Participant as of the effective date of the amendment of
Section 5.01 and who completed three (3) Years of Service
shall be subject to the vesting schedule determined without
regard to such amendment, provided that such schedule
provides, in all circumstances, a nonforfeitable percentage
that is no less than the percentage determined Section 5.01 as
amended. 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.
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This election hereinabove shall also be applicable when a
Top-Heavy Plan reverts to non-Top-Heavy status.
ARTICLE 6: AMOUNT AND COMMENCEMENT OF RETIREMENT BENEFIT
6.01 Normal Retirement.
In addition to the portion of his Normal Retirement benefit that is determined
in accordance with Article 4, a Participant who retires on his Normal Retirement
Date shall be entitled to a Normal Retirement Benefit determined in accordance
with this Section and subject to the minimum benefit provisions of Section 6.02.
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) For Participants in covered employment on or after
September 1, 1994, the Normal Retirement Benefit
under this Section attributable to Service before
September 1, 1994 shall be the amount determined in
paragraph (ii). For Participants in covered
employment on or after September 1, 1994 and who
remain in covered employment on or after January 1,
1997, the Normal Retirement Benefit under this
Section attributable to Service before September 1,
1994 shall be the greater of the amount determined in
paragraph (ii) or the amount determined in paragraph
(iii).
(ii) The amount determined in this paragraph shall be the
product of the Participant's accrued benefit under
the Prior Plan as of August 31, 1994 and a fraction,
the numerator of which is the amount determined in
subparagraph (A) and the denominator of which is the
amount determined in subparagraph (B), as follows:
(A) The greater of (I) the Participant's Average
Compensation as of August 31, 1994 or (II)
the Participant's Average Compensation at
retirement.
(B) The Participant's Average Compensation as
of August 31, 1994,
With respect to a Participant with a "frozen Section
401(a)(17) benefit", within the meaning of Section
6.02(b), the amount shall be determined by adjusting
the frozen December 31, 1993 accrued benefit and the
frozen accrued benefit for the period from January 1,
1994 to August 31, 1994 separately, 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).
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If a Participant elects pursuant to Section 6.07(c)
to receive a distribution of his employee
contributions to the Plan, prior to his Annuity
Starting Date, the accrued benefit under the Prior
Plan as of August 31, 1994, adjusted as provided in
this paragraph, shall be reduced by the Actuarial
Equivalent of the amount actually distributed to the
Participant.
(iii) The amount determined in this paragraph shall be the
portion of Participant's accrued benefit under the
Prior Plan, as of August 31, 1994, that is
attributable only to employer contributions, with the
portion of the accrued benefit attributable to
employer contributions under the Prior Plan,
multiplied by the fraction described in paragraph
(i)(A) and (B), increased by the Actuarial Equivalent
value of the Participant's contributions, provided,
however, that this increase shall not apply, if the
Participant elects pursuant to Section 6.07(c) to
receive a distribution of his employee contributions
to the Plan, prior to his Annuity Starting Date.
(b) Service After August 31, 1994.
The Normal Retirement Benefit under this Section attributable to Service after
August 31, 1994 shall be equal to 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 after August 31, 1994, up to a maximum
of 35 years, plus one percent (1%) of Average Compensation up to Covered
Compensation multiplied by the Participant's total number of Years of Credited
Service after August 31, 1994, up to a maximum of 35 years.
(c) Effective January 1, 1997, in addition to the benefits
described in Section 4.02 and paragraphs (a) and (b) of this
Section, the Normal Retirement Benefit of certain participants
shall be increased. Participants described in Part A of
Schedule I 1 shall receive the increase set forth in
subparagraphs (i) through (iii) herein. Participants described
in Part B of Schedule I 1 shall receive the increase set forth
in subparagraph (iv) herein, adjusted for optional form of
payment as provided in Section 7.02.
(i) The benefit described in Section 6.01(a) shall be
increased by the sum of (A) and (B) below:
(A) the applicable factor in Schedule I 1
multiplied by the employer accrued benefit
under Section 6.01(a), as of the date of
determination, but in no event later than
December 31, 2000,
(B) the applicable factor in Schedule I 1
multiplied by the employer accrued benefit
under Section 6.01(a) as of
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28
the date of determination, but in no event
later than December 31, 2000, multiplied by
a Participant's Years of Credited Service
after December 31, 1997 and before
January 1, 2001.
(ii) The benefit described in Section 6.01(b) shall be
increased by the sum of (A) and (B) below:
(A) the product of the applicable factor in
Schedule I 1, multiplied by the fraction
10/3, multiplied by the sum of:
(I) one and one-half percent (1 1/2%) of
Average Compensation in excess of
Covered Compensation, with Average
Compensation determined as of the
date of determination, but in no
event later than December 31, 2000,
and Covered Compensation determined
as of December 31, 1997, plus
(II) one percent (1%) of Average
Compensation, as determined in
accordance with subparagraph (I)
above, up to Covered Compensation,
with Covered Compensation determined
as of December 31, 1997.
(B) the product of the applicable factor in
Schedule I 1, multiplied by a Participant's
Years of Credited Service after December 31,
1997 and before January 1, 2001, multiplied
by the sum of:
(I) one and one-half percent (1 1/2%) of
Average Compensation in excess of
Covered Compensation, with Average
Compensation and Covered
Compensation determined as of the
date of determination, but in no
event later than December 31, 2000,
plus
(II) one percent (1%) of Average
Compensation up to Covered
Compensation, with Covered
Compensation and Average
Compensation determined in
accordance with subparagraph (I)
above.
(iii) The benefit described in Section 4.02 shall be
increased by the sum of (A) to (D) below:
(A) the applicable factor described in Schedule
I 1 multiplied by the Participant's Cash
Balance Account as of December 31, 1997.
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(B) the applicable factor described in Schedule
I 1 multiplied by the credit to the
Participant's Cash Balance Account for the
1998 Plan Year.
(C) the applicable factor described in Schedule
I 1 multiplied by the credit to the
Participant's Cash Balance Account for the
1999 Plan Year.
(D) the applicable factor described in Schedule
I 1 multiplied by the credit to the
Participant's Cash Balance Account for the
2000 Plan Year.
(iv) The additional benefits set forth in Part B of
Schedule I 1.
(v) In the event the limitation on Compensation in Section
401(a)(17) of the Code is increased at any time by
statute or regulation, but not by application of the
cost-of-living adjustment factor in Section
401(a)(17)(b) of the Code, all accruals under this
section 6.01(c) shall cease as of the effective date of
said increase.
(d) Effective January 1, 2000, in addition to the benefit
described in Section 4.02 and paragraphs (a), (b) and (c) of
this Section, the Normal Retirement Benefit of certain
participants shall be increased. Participants described in
Schedule I 2 shall receive the increase set forth in
subparagraphs (i) through (iii) herein.
(i) The sum of the benefits described in Section 6.01(a)
and 6.01(c)(i) shall be increased by the sum of (A) and
(B) below:
(A) the applicable factor in Schedule I 2 multiplied by
the employer accrued benefit under Section 6.01(a)
and 6.01(c)(i) as of the date of determination, but
in no event later than December 31, 2003,
(B) the applicable factor in Schedule I 2 multiplied by
the employer accrued benefit under Section 6.01(a)
and 6.01(c)(i) as of the date of determination, but
in no event later than December 31, 2003, multiplied
by a Participant's Years of Credited Service after
December 31, 2000 and before January 1, 2004.
(ii) The benefit described in Section 6.01(b) and
6.01(c)(ii) shall be increased by the sum of (A) and
(B) below:
(A) the product of the applicable factor in Schedule I 2,
multiplied by three (3.0), multiplied by the sum of:
(I) one and one-half percent of Average
Compensation in excess of Covered Compensation,
with Average Compensation determined as of the
date of determination, but in no event later
than December 31, 2003, and
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30
Covered Compensation determined as of December
31, 2000, plus
(II) one percent of Average Compensation, as
determined in accordance with subparagraph (I)
above, up to Covered Compensation, with Covered
Compensation determined as of December 31,
2000, plus
(III) the accrued benefit provided under Section
6.01(c)(ii)(A) and 6.01(c)(ii)(B).
(B) the product of the applicable factor in
Schedule I 2, multiplied by a Participant's
Years of Credited Service after December 31,
2000 and before January 1, 2004, multiplied by
the sum of:
(I) one and one-half percent (1 1/2%) of Average
Compensation in excess of Covered Compensation,
with Average Compensation and Covered
Compensation determined as of the date of
determination, but in no event later than
December 31, 2003, plus
(II) one percent (1%) of Average Compensation up to
Covered Compensation, with Covered Compensation
and Average Compensation determined in
accordance with subparagraph (I) above.
(iii) The benefit described in Section 4.02 and 6.01(c)(iii)
shall be increased by the sum of (A) to (D) below:
(A) the applicable factor described in Schedule I
2, multiplied by the Participant's Cash Balance
Account as of December 31, 2000.
(B) the applicable factor described in Schedule I 2,
multiplied by the credit to the Participant's Cash
Balance Account for the 2001 Plan Year.
(C) The applicable factor described in Schedule I 2,
multiplied by the credit to the Participant's Cash
Balance Account for the 2002 Plan Year.
(D) The applicable factor described in Schedule I 2,
multiplied by the credit to the Participant's Cash
Balance Account for the 2003 Plan Year.
(iv) In the event the limitation on Compensation in Section
401(a)(17) of the Code is increased at any time by statue or
regulation (but
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31
not by application of the cost-of-living adjustment factor
in Section 401(a)(17)(b) of the Code), all accruals under
this section 6.01(d) shall cease as of the effective date of
said increase.
(v) If the Internal Revenue Service, upon timely application,
determines that this Section 6.01(d) causes the Plan to lose
its status as a qualified plan under Section 4.01(a) of the
Code, then this subsection (d) shall be void ab initio.
6.02 Minimum Retirement Benefits.
(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
(ii) the Participant's Prior Plan Benefit determined
pursuant to Section 6.13.
(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 OBRA '93 annual compensation
limit, as described in Section 1.11, shall be equal to the
greater of:
(i) the Participant's retirement benefit calculated
under the provisions of the Plan as determined with
regard to such limitation, 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
imposition.
For purposes of this Section, the accrued benefit determined
as of December 31, 1993 shall be equal to the greater of (A)
the Participant's accrued benefit determined as of December
31, 1993, as determined with regard to the limitation on
Compensation as in effect prior to the imposition of the OBRA
'93 annual compensation limit , or (B) 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 limitation, and such amount shall be deemed to
the "frozen Section 401(a)(17) benefit" for purposes of
Section 6.01(a).
6.03 Early Retirement.
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32
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 set forth in Schedule A 1. The Early 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, unless the Participant elects a later commencement date, which
commencement date shall not be later than his Normal Retirement Date.
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 and the benefit payable upon his retirement shall be subject to
the provisions of Section 6.09.
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) Vesting Years of 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) The Committee may require that a Participant receiving a
Disability Retirement Benefit periodically submit proof of his
continued disability.
(d) 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.
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33
6.06 Termination of Service After August 31, 1994.
A Participant who separates from Service shall be entitled to receive a
distribution equal to the Actuarial Equivalent of his nonforfeitable interest,
determined in accordance with Section 5.01(a), in the portion of his Normal
Retirement Benefit determined under this Article 6. 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)(I) 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
retirement 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.
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
Participant's retirement benefit determined as of the
beginning of such Leave of Absence. If the Participant returns
to Service immediately 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.
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34
(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 nonforfeitable interest, determined in
accordance with Section 5.01, in that portion of his Normal
Retirement Benefit determined in accordance with Section 6.01
to a date specified by the Participant.
(b) If payment of the Participant's vested Normal Retirement
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
determined in accordance with Schedule A 2.
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:
(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, in accordance with the provisions of
Article 7, 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:
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35
(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) Subject to the following provisions of this Section and to the
limitations set forth in Section 415 of the Code, any regulations
or rulings thereunder and notwithstanding any provision of the
Plan to the contrary, the maximum annual Pension payable to a
Participant under the Plan in the form of a single life annuity,
when added to any pension attributable to contributions of the
Employer or an Affiliated Employer provided to the Participant
under any other qualified defined benefit plan, shall be equal to
the lesser of (1) the dollar limitation described in Section
415(b)(1)(A) of the Code or (2) the Participant's average annual
remuneration during the three consecutive calendar years of his
service with the Employer or Affiliated Employer affording the
highest such average or during all of the years of such service
if less than three years.
(b) For purposes of this Section, the term "remuneration" with
respect to any Participant shall mean the wages, salaries, and
other amounts paid in respect of such Participant by the Employer
or an Affiliated Employer for personal services actually rendered
and shall include, but not by way of limitation, bonuses,
overtime payments, and commissions and shall exclude deferred
compensation, stock options, and other distributions which
receive special tax benefits under the Code. For Limitation Years
beginning after December 31, 1997, remuneration shall also
include any pre-tax contributions under a "qualified cash or
deferred arrangement" (as defined under Section 401(k) of the
Code and its applicable regulations) or under a "cafeteria plan"
(as defined under Section 125 of the Code and its applicable
regulations) or under a "qualified transportation fringe" (as
defined under Section 132(f) of the Code and its applicable
regulations).
(c) Notwithstanding the provisions of subsection (a), the maximum
annual pension payable to a Participant who has a "freeze date"
shall not be less than his "old law benefit." A Participant's
"old law benefit" at any date is the maximum benefit he would be
entitled to receive at such date, determined without regard to
any changes in the terms and conditions of the Plan after
December 8, 1994, without regard to any benefits that accrue
under the Plan after his freeze date, and without regard to any
cost of living changes that become effective after his freeze
date. The "freeze date" of a Participant whose pension commences
on or after January 1, 1995, and before January 1, 2000 shall be
December 31, 1999.
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36
(d) In the case of a Participant of the Plan whose benefits have not
yet commenced as of January 1, 2001, the benefit payable to a
Participant's spouse under a qualified joint and survivor annuity
or under a qualified preretirement survivor annuity shall be
subject to the dollar limitation which would apply if the
benefits were payable to the Participant in the form of a life
annuity. The amount of the benefit payable to the spouse, and
which is subject to the preceding sentence, shall be computed
from the Participant's accrued benefit, determined in accordance
with Article 4 and Article 6, and before application of this
Section.
(e) For Limitation Years commencing prior to January 1, 2000, if a
Participant is a participant in any qualified defined
contribution plan required to be taken into account for purposes
of applying the combined plan limitations contained in Section
415(e) of the Code, then for any year the sum of the defined
benefit plan fraction and the defined contribution plan fraction,
as such terms are defined in said Section 415(e), shall not
exceed 1.0. If for any year the foregoing combined plan
limitation would be exceeded, the benefit provided under this
Plan shall be reduced to the extent necessary to meet that
limitation. With respect to a Participant whose benefits
commenced prior to the first Limitation Year commencing on or
after January 1, 2000, his benefit shall continue to be subject
to the Section 415(e) limits and the provisions of the Plan in
effect at his benefit commencement date except as hereinafter
provided.
(f) Notwithstanding anything hereinabove to the contrary, the
limitations, adjustments and other requirements prescribed in
this Section 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.
6.13 Prior Plan Benefit
(a) Applicability of Prior Plan Benefit
The provisions of this Section shall be applicable to:
(i) any Participant who terminated from employment with the
Employer prior to September 1, 1994 and who was fully vested
in his benefits under the Prior Plan; and
(ii) any Participant who attained age fifty-five (55) and had
completed sixty (60) continuous months of contributory
active service as of August 31, 1994, and who remained in
employment with the Employer subsequent to that date.
(b) Normal Retirement Benefit.
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(i) 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 in monthly installments, equal to the sum of the
following:
(A) a Past Service Benefit, if he (i) became an active
Participant as of May 1, 1953, (ii) remained a
continuous Participant, whether active or suspended,
during the period of his employment on and after May 1,
1953, and made contributions while an active
Participant during such period; plus
(B) a Future Service Benefit, if he made contributions
while an active Participant; plus
(C) a Supplemental Benefit, if made contributions while an
active Participant; plus
(D) a Pension Equivalent Benefit; and minus
(E) the value of contributions that the Participant would
have made, from September 1, 1994 to the Participant's
retirement date, assuming, for this purpose that the
provisions of the Prior Plan remained in effect for
such period and the Participant had elected to make
contributions in accordance with such provisions.
(ii) The amounts taken into account for purposes of
paragraph (i) shall be determined as follows:
(A) The Past Service Benefit of a Participant eligible
therefor shall be equal to three-quarters of one
percent (3/4%) of his "annual earnings" as of 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 made contributions under the Prior Plan.
(C) The "Supplemental Benefit" of a Participant eligible
therefor shall be the benefit calculated under either
clause (I) or (II) below, whichever shall be
applicable:
(I) 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 made contributions
at all times while an active Participant under
the Prior
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38
Plan 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 of Credited Service (not in
excess of fifteen (15) years). For purposes of
the preceding sentence, "final average annual
earnings in excess of $3,600" means:
(1) 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) consecutive 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
(2) 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.
(II) 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 did not
make contributions at all times while an active
Participant under the Prior Plan during such
period, an amount calculated under clause (I)
above, as if the Participant had, in fact, been
a continuous Participant for such period and
made contributions at all times under the Prior
Plan, 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.
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39
(D) The "Pension Equivalent Benefit" of a Participant
eligible therefor shall be the monthly pension benefit
in accordance with Schedule B; 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
shall be reduced by the amount of such Past and/or
Future Service Benefits.
(c) Death Benefit.
In the event an inactive Participant to whom this Section is
applicable 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.
(d) Severance of Employment Benefit.
(i) After Vesting Date.
If the employment of a Participant 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, determined in accordance with
subsection (b) 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 paragraph (d)(i), the
denominator of the fraction referred to in
subparagraph (b)(ii)(C)(II) 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 subparagraph
(d)(i), based upon the early retirement reduction
factors set forth Schedule C. The first payment of a
benefit under this subparagraph (d)(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 eligibility for a vested
benefit in accordance with this subsection will be
credited
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40
for any Participant who works at least one
thousand (1,000) hours in any calendar year.
In lieu of the foregoing annuity benefits, the
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,
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 hereto paid for solely through Company
Contributions. In the event that the Participant
makes the election described in the foregoing
sentence and further elects to commence receipt of
such benefit prior to his Normal Retirement Date,
such benefit will be reduced in accordance with the
factors set forth in Schedule D.
(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 paragraph (i) of
this subsection, he shall be entitled, without
request therefor, to a Severance of Employment
Benefit equal to the aggregate of his contributions
plus interest.
(e) 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 0.01%
35 - 45 0.02%
45 - 54 and 11 months 0.04%
(f) Optional Annuity Benefits for Deferred Vested Participant.
A Deferred Vested 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
his deferred vested benefit in either of the following
optional annuity forms:
(i) A benefit with a survivor benefit adjustment, under
which his surviving spouse will receive fifty-five
percent (55%) of such
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41
annuity benefit after the death of the Participant
For a Participant 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 Participant by ninety percent
(90%) if the Participant'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 Participant'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
Participant's age.
(ii) 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 in the Supplemental Benefit otherwise payable
to the Participant on account of the option does not
exceed forty percent (40%). Such annuity shall be the
actuarial equivalent of the aforesaid Supplemental
Benefit amount, determined in accordance with Schedule
E. 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; otherwise, the Committee may
require evidence satisfactory to it of the
Participant's good health.
(g) For purposes of determining a Participant's minimum
benefit in accordance with this Section, the following
definitions shall apply:
(i) Credited Service. The term "credited service" shall
have the following meanings:
(A) 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
paragraph (i) 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:
(I) the period of employment of an
Employee with the Company or an
Affiliated Employer, following his
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42
most recent date of hire preceding
May 31, 1953 and prior to his
sixty-eighth (68th) birthday;
(II) the period of employment of an
Employee with the Company or an
Affiliated Employer 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;
(III) any periods of approved Leave of
Absence or military leave during the
period(s) defined in clauses (I)
and/or (II) above.
(B) 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:
(I) the periods of employment of an
Employee with the Company or an
Affiliated Employer while eligible
to participate under the Plan
following his most recent date of
hire and prior to the earlier of his
retirement or termination of
employment;
(II) the period of employment of an
Employee with the Company or an
Affiliated Employer preceding his
most recent date of hire; provided,
however, that the period of his
employment preceding a break in
employment, except a break in
employment of any duration of two
(2) or more years shall not be taken
into account;
(III) any periods of leave of absence
approved by the Company in writing,
or military leave during the period
defined in clauses (I) and (II)
above.
(C) 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
subparagraphs (i) and (ii) above.
(ii) Years of Participation. The term "years of
participation" shall be Years of Credited Service
while a continuous Participant; "years of active
participation" shall mean Years of Credited
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43
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.
(iii) "Annual Earnings" for periods prior to September 1,
1994 shall mean:
(A) 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
(B) 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;
(iv) "Interest" for deferred vested Participants who
terminated employment 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 percent (2%)
compounded annually; interest from May 1, 1966 to
January 1, 1971 shall be calculated at the rate of
three and one-half percent (3 1/2%) compounded
annually; and interest from January 1, 1971 to
December 31, 1975 shall be calculated at the rate of
four and one-half percent (4 1/2%) compounded
annually. Interest from January 1, 1976 to December
31, 1987 shall be calculated at the rate of five
percent (5%) compounded annually; and interest from
January 1, 1988 at one hundred twenty percent (120%)
of the Federal mid-term rate as at the beginning of
the Plan Year compounded annually.
6.14 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 shall be as
specified herein for the individuals listed in Schedule H. Such
payment
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44
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 rates - 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.
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
Participant'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, a
Participant may elect in the manner prescribed by the
Committee and during the election period described in
subsection (c) of, a form of benefit payment provided under
subsection (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 Section 7.01(b), 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 beneficiaries, 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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45
(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 subsection shall be
effective only with respect to such Spouse. At any time during
the election period described in Section 7.02(c), a
Participant may, without the consent of the Participant's
Spouse, revoke an election pursuant to this subsection 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 subsection (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 Beneficiary;
(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 portion of his 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.
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46
7.03 Minimum Distributions and 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 subsection (b)
of the Plan, or
(ii) shall commence not later than the Required Beginning
Date, as defined in subsection (b) 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
(D) a period certain not extending beyond the
joint and survivor life expectancies of the
Participant and the Participant'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) (i) A Participant's Required Beginning Date is the
April 1 following the close of the calendar year in
which the Participant attains age seventy and
one-half (70 1/2). However, if the Participant
attained age seventy and one-half (70 1/2) by January
1, 1988 or subsequent to January 1, 1999, and, for
the five (5) Plan Year period ending in the calendar
year in which he attained age seventy and one-half
(70 1/2) and for all subsequent years, the
Participant was not a more than five percent (5%)
owner (as defined in Section 416(i) of the Code), the
Required Beginning Date is the April 1 following the
close of the calendar year in which the Participant
separates from Service with the Employer or, if
earlier, the April 1 following the close of the
calendar year in which the Participant becomes a more
than five percent (5%) owner. A mandatory
distribution at the Participant's Required Beginning
Date shall be in the normal annuity form of
distribution required under Section 7.01 unless the
Participant, pursuant to the provisions of this
Article 7, makes a valid election to receive an
alternative form of payment.
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47
(ii) 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
incidental 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.
7.05 Mandatory Cashout of Small Benefits.
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. Effective January 1, 2000, in
determining the amount of a lump sum payment payable under this paragraph,
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48
(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, or, if larger, the benefit which would
otherwise have been provided commencing at the earliest date he could have
commenced payment and (ii) the Actuarial Equivalent value shall be determined
by using the IRS Mortality Table and the IRS Interest Rate. The determination
as to whether a lump sum payment is due shall be made as soon as practicable
following the Participant's termination of service or death. To the extent
permitted by law, in the event the present value of a Pension exceeds $5,000
upon an initial determination as to its present value, the present value of
the Pension shall be redetermined annually as of the first day of each
subsequent Plan Year. Any lump sum benefit payable shall be made as soon as
practicable following the determination that the amount qualifies for
distribution under the provisions of this Section. In no event shall a lump
sum payment be made following the date Pension payments have commenced as
an annuity.
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, 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.
The following definitions shall apply for purposes of this Section:
(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).
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(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:
(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. For a Participant who was an Employee in active
employment at the time of his death, 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); for a Participant
who was not an Employee in active employment at the time of his
death, 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 fifty percent
(50%) 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 1 to reflect its commencement 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 commencement shall be the Actuarial
Equivalent from age 65.
(b) The death benefit payable in accordance with this Section shall
be in addition to any death benefit payable in accordance with
Section 4.06
8.02 Post-Retirement Death Benefit.
Upon the death after retirement 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) if (A) the Participant retired prior to September 1, 1994,
and contributed to the Plan while a Participant in the Prior
Plan for the three (3) consecutive years prior to
retirement, or (B) the Participant retired
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51
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
Beneficiary 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 distribution 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 paragraphs (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 Beneficiary, 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
(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
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52
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 Return of Contributions.
(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 contributions
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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53
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 and which
provides for coverage under the Plan, 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 a
Participant and shall be entitled to receive a pension
determined under this Article 9.
(b) Effective January 1, 1976, an Employee to whom subsection (a)
applies and 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 subsection
(a) applies who, on or after September 15, 1952, shall have
completed five (5) or more Years of Credited Service shall be
a Participant, and after ceasing 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
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54
any pension payments due for months
commencing on and after October 1, 1976.
(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.
(ii) Buffalo Facility.
With respect to any such pensioner whose Credited
Service was with the Buffalo Facility:
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55
(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.
(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.
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56
(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.
(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.
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57
(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.
(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
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58
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,
subsequently known as Curtiss-Wright Flow Control
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
commencing 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 commencing 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.
(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
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59
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 commencing 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) $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) $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;
(I) $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;
(J) $23.00 multiplied by his years of Credited
Service with Curtiss-Wright Flow Control
Corporation on or after January 1, 2001, for
any pension payments due for months
commencing on or after January 1, 2001;
(K) $25.00 multiplied by his years of Credited
Service with Curtiss-Wright Flow Control
Corporation on or after January 1, 2002, for
any pension payments due for months
commencing on or after January 1, 2002;
(L) $28.00 multiplied by his years of Credited
Service with Curtiss-Wright Flow Control
Corporation on or after January 1, 2003, for
any pension payments due for months
commencing on or after January 1, 2003.
(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:
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60
(A) With benefits commencing on or after January
1, 1996, $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;
(B) With benefits commencing on or after January
1, 2001, $20.00 multiplied by his Years of
Credited Service on or after January 1,
2001, for any pension payments due for
months commencing after January 1, 2001.
(C) With benefits commencing on or after January
1, 2003, $24 multiplied by his Years of
Credited Service on or after January 1,
2003, or any pension payments due for months
commencing after January 1, 2003.
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:
(A) With benefits commencing on or after October
1, 1996, $6.50 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.
(B) With benefits commencing on or after January
1, 2000, $7.50 multiplied by his Years of
Credited Service on or after January 1,
2000, for any pension payments due for
months commencing on or after January 1,
2000.
(C) With benefits commencing on or after January
1, 2001, $8.50 multiplied by his Years of
Credited Service on or after January 1,
2001, for any pension payments due for
months commencing on or after January 1,
2001.
(D) With benefits commencing on or after January
1, 2002, $9.50 multiplied by his Years of
Credited Service on or after January 1,
2002, for any pension payments due for
months commencing on or after January 1,
2002.
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:
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61
With benefits commencing on or after November 1,
1996, $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.
Service for vesting purposes shall commence November
1, 1996.
(ix) Metal Improvement Company, Inc. - Long Island
Division.
With respect to any such pensioner whose credited
service was with the Metal Improvement Company - Long
Island Division:
With benefits commencing on or after April 1, 1998,
$3.00 multiplied by his years of credited service on
or after April 1, 1998, for any pension payments due
for months commencing on or after April 1, 1998.
Service for vesting purposes shall commence April 1,
1998.
(x) Metal Improvement Company, Inc. - Wakefield Division.
With respect to any such pensioner whose credited
service was with the Metal Improvement Company -
Wakefield Division:
With benefits commencing on or after June 1, 1999,
$8.00 multiplied by his years of credited service on
or after June 1, 1999, for any pension payments due
for months commencing on or after June 1, 1999.
With benefits commencing on or after June 1, 2001,
$10.00 multiplied by his years of credited service on
or after June 1, 2001, for any pension payments due
for months commencing on or after June 1, 2001.
Service for vesting purposes shall commence June 1,
1999.
(xi) Metal Improvement Company - Lynwood Division:
With respect to any such pensioner whose credited
service was with the Metal Improvement Company -
Lynwood Division:
With benefits commencing on or after May 1, 2001,
$6.50 multiplied by his years of credited service on
or after May 1, 2001, for any pension payments due
for months commencing on or after May 1, 2001.
Service for vesting purposes shall commence May 1,
2001.
(b) Early Retirement.
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62
On or after January 1, 1989 any Participant described in
Section 9.01 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
Participant who retires with benefits which first could
commence on or after October 1, 1965, the monthly pension
payable to him shall be either:
(i) a pension commencing at age sixty-five (65)
determined 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 retirement, multiplied by the applicable
percentage set forth in Schedule F.
(c) Total and Permanent Disability Retirement.
(i) An Participant described in Section 9.01 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 Participant shall be deemed to be totally and
permanently disabled, for purposes of this subsection
when on the basis of medical evidence satisfactory 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 pensioner
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
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63
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 or for disability, a
monthly amount equal to:
(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 determine 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.
(d) Retention of Deferred Pension.
(i) An Participant described in Section 9.01 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
Participant 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
Participant either:
(1) then had at least ten (10) Years of
Credited Service and had attained
his fortieth (40th) birthday; or
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64
(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.
(ii) The monthly amount of such deferred pension
commencing 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 G 1 for the
Wood-Ridge Facility, Schedule G 2 for the Buffalo
Facility, Schedule G 3 for the Curtiss-Wright Flight
Systems Facility, and Schedule G 4 for the Target
Rock Facility. The deferred pension rates for
Marquette Metal Products Company facility are the
same rates as shown in Section 9.02(a)(iv) for the
Marquette Metal Products Company facility.
(iii) For Employees who became eligible for a deferred
pension before January 1, 1976:
Upon written request to the Company by a Participant
eligible for a deferred pension in accordance with
this subsection, such deferred pension shall be
payable on the first day of the month following the
later of (A) the month in which such Participant
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 commencing after age sixty
(60) and prior to age sixty-five (65) and shall be
the amount in accordance with Section 9.02(a) of the
Plan, reduced in accordance with the early retirement
factors set forth in Schedule D for each complete
calendar month by which such Participant 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 Participants 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 Participant 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
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65
with Section 9.02(a) of the Plan, reduced in
accordance with the early retirement factors set
forth in Schedule D for each complete calendar month
by which such Participant 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.
(e) Optional Survivor Benefit Election.
(i) A Participant who has attained age fifty-five (55),
retiring with benefits payable commencing on or after
January 1, 1989, in accordance with the normal, early
or total and permanent disability retirement
provisions of this Section, or a Participant who
loses Seniority on or after January 1, 1989 and is
eligible for a deferred pension benefit in accordance
with subsection (d), 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 Participant 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) A Participant 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
Participant 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 Participant's monthly benefit and
payable on and after the first day of the
month following the pensioner's death.
(ii) For an Participant receiving a pension benefit with a
survivor benefit adjustment in accordance with
paragraph (i), the reduced amount of his monthly
pension benefit referred to in paragraph (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
Participant'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
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66
percent (1/2%), up to a maximum of one hundred
percent (100%), for each year that the designated
Spouse's age exceeds the Participant'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 Participant's age.
(iii) The survivor benefit payable in accordance with
paragraph (i) to the surviving Spouse of a retired
Participant 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
Participant's monthly pension benefit as determined
in accordance with Section 9.02(a) of the Plan for
any such Participant with benefits payable commencing
on or after October 1, 1965.
(iv) Effective August 23, 1984, a survivor benefit, if not
waived, in the form of a Qualified Preretirement
Survivor Annuity shall be paid to a surviving Spouse
of a vested active Participant not eligible for early
retirement, or of a vested deferred Participant who
was credited with at last one (1) Hour of Service
subsequent to August 22, 1984 and is not eligible for
early retirement, commencing at the date the
Participant would have been eligible for early
retirement, and the amount of the pension otherwise
payable to the Participant shall be reduced in
accordance with the tables below.
For Coverage While The
Participant's Age Is Monthly Percentages
---------------------- -------------------
Under 35 0.01%
35 - 45 0.02%
45 - 54 and 11 months 0.04%
(v) Effective August 23, 1984, a survivor benefit, may
not be waived by the participant without the consent
of the Participant's Spouse. Such consent for a
waiver must be in writing and either notarized or
witnessed by a member of the Board of Administration.
Notwithstanding this consent requirement, if the
Participant establishes to the satisfaction of the
Board of Administration that such written consent
cannot be obtained because:
(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.
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67
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 Qualified
Pre-Retirement Survivor Annuity. The Qualified
Pre-Retirement 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;
(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 items (2), (3) and (4) of this paragraph 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
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68
Participant thereafter returns to employment with the
Company, the applicable period for such Participant
shall be redetermined.
(f) Participants Not Actively at Work.
The absence of a Participant 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.
(g) Pension Payments.
(i) Pensions shall be paid monthly. The first monthly
payment of an Participant's pension other than for
total and permanent disability shall be on the first
day of the month following the month in which the
Participant actually retires or, in the case of early
retirement, the later date selected by the Employee
in accordance with subsection (b)(i) or (ii), 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.
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69
(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.
(h) Death Benefits.
(i) On or after January 1, 1989, upon the death before
retirement of an Participant 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 Participant
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 subsection (e);
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
Participant, 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 lump sum 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.
(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.
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70
(iv) There shall be no lump sum death benefit under the
Plan at any time by reason of the death of a
Participant 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 Participants 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
Participant'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 Participant'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) shall be applicable for the period
of time prior to January 1, 1976. Subparagraphs (B)
and (C) 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
Participant 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
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71
nearest one-tenth (1/10) of a year. For the
calendar year 1952, no more than a year's
credit will be given including credit for
Service prior to September 15, 1952.
(B) For the purpose of vesting only, Credited
Service commencing with January 1, 1976
shall be computed for each calendar year
for each Participant on the basis of total
hours compensated by the Company during
such calendar year. Any calendar year in
which the Participant 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 (1,000)
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 (A) 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), a
Participant who, after September 15, 1952, shall be
absent from work because of occupational 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
Participant shall be credited with Service under this
paragraph after retirement.
(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, for purposes of vesting; provided, that
there shall be no duplication of Credited Service,
nor, Credited Service of more than one (1) year in
respect to any calendar year.
(v) An Participant 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, or any
other law protecting his right to
reemployment 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
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72
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 Participant otherwise had at least one
hundred seventy (170) compensated hours
during the calendar year in which such
medical leave of absence commenced, except
this subparagraph shall not apply to any
absence to which paragraph (iii) would
apply.
(c) Loss of Credited Service.
(i) After September 15, 1952, a Participant 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 Participant quits,
(B) if the Participant is discharged or
released,
(C) if the Participant loses his
Seniority for any other reason.
The provisions of this paragraph shall not affect a
Participant'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 an Employer 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 aggregated;
(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.
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73
(i) Anything in the Plan to the contrary notwithstanding,
any Participant 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 a Participant who lost such
Credited Service prior to October 1, 1968
and who (i) has Seniority on September 30,
1968, such Participant applies to such
Company for restoration of such lost Service
prior to July 1, 1969 or (ii) does not have
Seniority on September 30, 1968 but
thereafter acquires Seniority, such
Participant applies for restoration of such
lost Credited Service within ninety (90)
days of re-employment by such Company.
(B) Effective January 1, 1976 any Participant
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.
(ii) Effective January 1, 1976, any Employee included in
subparagraphs (i)(B) and (ii)(B) of subsection (c) of
the Plan shall be entitled to the benefit specified
in this subsection.
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 providing for participation
in the Plan.
(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
applicable collective bargaining agreement.
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74
ARTICLE 10: MERGER OF METAL IMPROVEMENT COMPANY, INC. AND CURTISS-WRIGHT FLIGHT
SYSTEMS/SHELBY, INC. CONTRIBUTORY RETIREMENT PLANS
10.01 Merger Date.
As of September 1, 1994 (the "Merger Date"), the Metal Improvement Company, Inc.
Retirement Income Plan and Curtiss-Wright Flight Systems/Shelby, Inc,
Contributory Retirement Plan (individually, a "Merged Plan" or, collectively,
"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
Merger Date or non-union Employees hired after the Merger 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 Merger 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).
(b) With respect to a Participant who satisfies the eligibility
requirements of Section 10.02, 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 in accordance with
Articles 4, 6, 7 and 8.
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75
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.
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
subsection (a) 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.
(c) For purposes of Article 5 of the Plan, a Participant who is
described in subsection (a) 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 applicable law, the assets held under the
Merged Plans were transferred to the Trust Fund.
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76
ARTICLE 11: ADMINISTRATION
11.01 Plan Administrator.
The Chairman of the Board of Directors shall appoint a Committee. The Committee
shall consist of three (3) or more persons designated by the Chairman of the
Board of Directors. 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 Chairman of the
Board of Directors and the Chairman of the Board of Directors shall appoint
successors to fill any vacancies in the Committee.
11.02 Committee's Authority and Powers.
The Committee shall administer the Plan, except with respect to any part of the
Plan that is maintained pursuant to a collective bargaining agreement and in
such case that agreement 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.
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77
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:
(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 contributions;
(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
Participant 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 Section, 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
supplement, 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
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79
will not be less than the percentage computed under the Plan without regard to
such amendment.
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, which shall be delivered to the Trustee and, where required, to the
Board of Administration, 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 Participant or,
if deceased, his Beneficiary affected by the Plan's complete
or partial termination, or the discontinuance of Company
contributions.
(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
liabilities with respect to the Participants under the Plan.
12.05 Special Restrictions on Benefits.
The Plan limits the benefit payable to any Participant who is a Highly
Compensated Employee upon Plan termination to a benefit that is
nondiscriminatory under Section 401(a)(4) of the Code. Prior to Plan
termination, the Plan restricts the annual payments to any Participant who is a
"restricted employee", unless:
(a) After payment of the benefit, the value of Plan assets equals
or exceeds 110% of the value of current liabilities (as
defined in Section 412(1) of the Code); or
(b) the value of the benefit is less than 1% of the value of
current liabilities; or
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80
(c) the value of the benefit does not exceed $5,000.
The total payments in a Plan Year may not exceed an amount equal to: (1) the
payments the Participant would receive under a single life annuity which is the
Actuarial Equivalent of the Participant's Accrued Benefit and the Participant's
other benefits (other than a social security supplement); plus (2) the amount of
the payment the Participant would receive under a social security supplement.
"Other benefits" include loans in excess of the limitations under 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 by insurance on the
Participant's life.
For purposes of this subsection, the term "restricted employee" means an
employee of the Employer, including all employees who are not Employees under
the Plan, who is among the twenty-five (25) employees with the highest
Compensation, determined without taking account of the limitations of Section
401(a)(17) of the Code, for the Plan Year or any prior Plan Year.
The limitations of this Section shall not restrict the payment of any death
benefit to any Beneficiary.
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.
(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.
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81
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 Status.
(a) This Plan is top heavy if any of the following conditions
exists:
(i) 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.
(ii) 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.
(iii) 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.
(b) For purposes of this Article, the following terms shall have
be defined as follows:
(i) 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 determination 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 Employees 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.
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82
Both the numerator and denominator of the
top-heavy ratio are increased to reflect
any contribution not actually made as of
the determination date, but which is
required to be taken into account on that
date under Section 416 of the Code and
regulations thereunder.
(B) If the Company maintains one or more
defined contribution 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 Participants 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 subparagraphs (A) and (B)
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 determination 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 determination 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
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83
and retirement benefits will be calculated
with reference to the determination dates
that fall within the same calendar year.
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.
(ii) 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.
(iii) Required aggregation group:
(A) Each qualified plan of the Company in which
at least one Key Employee participates or
participated at any time during the
determination period (regardless of whether
the Plan has terminated), and
(B) any other qualified plan of the Company
which enables a plan described in
subparagraph (A) to meet the requirements of
Section 401(a)(4) or 410 of the Code.
(iv) 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.
(v) Key Employee:
Effective January 1, 1997, an employee who is in a
category of employees determined in accordance with
the provisions of Section 416(i)(1) and (5) of the
Code and any regulations thereunder and, where
applicable, on the basis of the Employee's
remuneration which, with respect to any Employee,
shall mean the wages, salaries, and other amounts
paid in respect of such Employee by the Employer or
an Affiliated Employer for personal services actually
rendered, determined before any pre-tax contributions
under a "qualified cash or deferred arrangement," as
defined under Section 401(k) of the Code and its
applicable regulations, or under a "cafeteria plan,"
as defined under Section 125 of the Code and its
applicable regulations, or under a "qualified
transportation fringe," as
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84
defined in Section 132(f) of the Code and its
applicable regulations, and shall
include, but not by way of limitation, bonuses,
overtime payments, and commissions; and shall exclude
deferred compensation, stock options, and other
distributions which receive special tax benefits
under the Code.
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.
(vi) Non-Key Employee
Any Employee or former Employee (and his
Beneficiaries) who is not a Key Employee.
14.03 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 14.03, a Participant who is Non-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 Compensation for the
five (5) consecutive years for which the Participant 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.
(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 pursuant to
subsection (a) 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) consecutive years for which the Participant had
the highest Compensation.
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85
(d) The provision in subsection (a) 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) are satisfied.
14.04 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
attributable 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%
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.
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15.02 Exclusive Benefit.
The Plan is established for the exclusive benefit of the Participants and their
Beneficiaries, and the Plan shall be administered in a manner consistent with
the provisions 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.
(a) Except as required by any applicable law or by paragraph (c),
no benefit under the Plan shall in any manner be anticipated,
assigned or alienated, and any attempt to do so shall be void.
However, payment shall be made in accordance with the
provisions of any judgment, decree, or order which:
(i) creates for, or assigns to, a spouse, former spouse,
child, or other dependent of a Participant the right
to receive all or a portion of the Participant's
benefits under the Plan for the purpose of providing
child support, alimony payments, or marital property
rights to that spouse, former spouse, child, or
dependent,
(ii) is made pursuant to a State domestic relations law,
(iii) does not require the Plan to provide any type of
benefit, or any option, not otherwise provided under
the Plan, and
(iv) otherwise meets the requirements of Section 206(d) of
ERISA, as amended, as a "qualified domestic relations
order," as determined by the Retirement Board.
(b) If the present value of any series of payments meeting the
criteria set forth in clauses (a)(i) through (a)(iv) above
amounts to $5,000 or less, a lump sum payment of the Actuarial
Equivalent of such benefit, determined in the manner described
in Section 7.05, shall be made in lieu of the series of
payments.
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(c) A Participant's benefits under the Plan shall be offset by the
amount the Participant is required to pay to the Plan under
the circumstances set forth in Section 401(a)(13)(C) of the
Code.
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:
(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 pursuant 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 Beneficiary, 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
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88
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.
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 whereabouts of such Participant or his Beneficiary, the amount so
distributable 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.
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IN WITNESS WHEREOF, the Company has caused this instrument to be executed by an
officer duly authorized on this _______ day of ___________, _______.
CURTISS-WRIGHT CORPORATION
By:
-------------------------
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SCHEDULE A 1: EARLY RETIREMENT FACTORS ON OR AFTER SEPTEMBER 1, 1994
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
For a Participant who retires on or after his attainment of age 55, if the sum
of the Participant's age and his years of Credited Service exceeds 80 as of his
Annuity Starting Date, the product of (i) 1% and (ii) the excess of (A) the sum
of his age and his years of Credited Service, over (B) 80, will be added to
early retirement factor otherwise applicable in accordance with the table set
forth in this Schedule, provided, however, that the resulting factor may not
exceed 100%.
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SCHEDULE A 2: DEFERRED RETIREMENT FACTORS ON OR AFTER SEPTEMBER 1, 1994
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
The factors set forth in the table shall be interpolated based on the
Participant's age at his Annuity Starting Date, expressed in years and completed
months.
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SCHEDULE B: RETIREMENT PLAN RATES IN FORCE FOR PURPOSES OF
SECTION 6.13(B)(II)(D)
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
* Does not apply to Local 212
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
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SCHEDULE C: EARLY RETIREMENT FACTORS FOR DEFERRED VESTED
EMPLOYEES WHO TERMINATED EMPLOYMENT PRIOR TO SEPTEMBER 1,
1994 AND PRIOR TO AGE 55 (CONTRIBUTORS)
Twelfths
of Year 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
<Page>
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SCHEDULE D: EARLY RETIREMENT FACTORS FOR EARLY COMMENCEMENT OF
DEFERRED VESTED PENSIONS
AGE of RETIRED EMPLOYEE at COMMENCEMENT of PENSION
Twelfths
of Year 55 56 57 58 59 60 61 62 63 64
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 also applicable for union
employees who terminate prior to age 55. Factors are effective as of September
1, 1965.
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95
SCHEDULE E: JOINT AND SURVIVOR 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
<Page>
96
SCHEDULE F: EARLY RETIREMENT FACTORS (UNION EMPLOYEES)
AGE of RETIRED EMPLOYEE
TWELFTHS
OF YEAR 55 56 57 58 59 60 61 62 63 64
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:
Effective date of factors: September 1, 1965.
With respect to Early Retirement Pensions determined in accordance with Section
9,02(b), the factors determined in accordance with the table set forth above are
subject to an increase of 2/10 of 1% (1/10 of 1% for benefits commencing prior
to October 1, 1968), for each 1/10 year of credited service in excess of 20.0
years up to a maximum increase of 30%, provided, however, than the total Early
Retirement Pension shall not be an amount greater than the normal pension.
<Page>
97
SCHEDULE G 1: 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, 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 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 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.
<Page>
98
SCHEDULE G 2: 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
September 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;
<Page>
99
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 1, 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 $10.00 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 from January 1,
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.
<Page>
100
SCHEDULE G 3: CURTISS-WRIGHT FLIGHT SYSTEMS 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 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
September 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 loss of credited service is on or after
September 30, 1971, $6.25 multiplied by his years of credited service.
<Page>
101
SCHEDULE G 4: 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 service from 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;
<Page>
102
$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 from May 1, 1986 to
July 31, 1994, but August 1, 1997, if he elected to participate in the
Curtiss-Wright Corporation Savings and Investment Plan;
$17.00 multiplied by his years of credited service from May 1, 1986 to
July 31, 1994, if he elected to participate in the Curtiss-Wright
Savings and Investment Plan;
$19.00 multiplied by his years of credited service from August 1, 1997
to August 1, 1998;
$21.00 multiplied by his years of credited service from August 1, 1998
to January 1, 2001;
$23.00 multiplied by his years of credited service from January 1,
2001 to January 1, 2002;
$25.00 multiplied by his years of credited service from January 1,
2002 to January 1, 2003;
$28.00 multiplied by his years of credited service on or after January
1, 2003.
<Page>
103
SCHEDULE H: CERTAIN BUFFALO EMPLOYEES
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
<Page>
104
SCHEDULE I 1: SPECIAL FACTORS FOR ADDITIONAL BENEFITS
REFERENCED IN SECTION 6.01(C)
(A)
- ---------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(c)(i)(A) (c)(i)(B) (c)(ii)(A) (c)(ii)(B) (c)(iii)(A) (c)(iii)(B) (c)(iii)(C) (c)(iii)(D)
- ---------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Factor for
Factor for Factor for 1.0/1.5% Factor for
8/31/94 Er 8/31/94 Er of Avg 1.0/1.5% Factor for Factor for Factor for Factor for
Indexed Indexed Comp for of Avg applied to 1998 1999 2000
Accd for Accd for Svc from Comp for 12/31/97 Cash Cash Cash
Permanent Svc up to Svc after 9/94 to Svc after Cash Balance Balance Balance
Number 1/1/98 1/1/98 1/98 1/98 Balance Accrual Accrual Accrual
- ----------------------------------------------------------------------------------------------------------------
47348 1.357712 0.223278 2.587989 4.318460 3.103844 3.409738 3.363556 3.252659
- ----------------------------------------------------------------------------------------------------------------
60016 0.626981 0.112032 1.641705 2.470229 1.926663 2.050663 2.090425 1.946812
- ----------------------------------------------------------------------------------------------------------------
29333 0.380750 0.065781 0.501072 0.930190 0.626109 0.691344 0.716675 0.640006
- ----------------------------------------------------------------------------------------------------------------
14745 0.350470 0.135912 0.423607 1.062577 0.524888 0.750000 0.772500 0.689835
- ----------------------------------------------------------------------------------------------------------------
308919 0.245972 0.069797 0.361295 0.686298 0.444945 0.521300 0.543344 0.471612
- ----------------------------------------------------------------------------------------------------------------
82763 0.315606 0.031211 0.332274 0.595356 0.442195 0.449700 0.473444 0.409565
- ----------------------------------------------------------------------------------------------------------------
192 0.178074 0.056171 0.284825 0.715141 0.340802 0.476231 0.497506 0.429841
- ----------------------------------------------------------------------------------------------------------------
9335 0.292616 0.056058 0.288145 0.682871 0.389166 0.447413 0.467606 0.400671
- ----------------------------------------------------------------------------------------------------------------
<Caption>
(B)
- ---------------------------------------
(c)(iv) (c)(iv)
- ---------------------------------------
Additional Additional
Permanent Annual Cash
Number Benefit Balance
- ---------------------------------------
29413 10,806.74 12,082.39
- ---------------------------------------
25873 2,771.29 1,076.75
- ---------------------------------------
<Page>
105
SCHEDULE I 2: SPECIAL FACTORS FOR BENEFITS REFERENCED IN SECTION 6.01(D)
(d)(i)(A) (d)(i)(B) (d)(ii)(A) (d)(ii)(B)
Factor for Factor for
08/31/94 E'er Factor for 08/31/94 Factor for 1.0%/1.5% 1.0%/1.5% of Avg.
Indexed Accd E'er Indexed Accd of Avg. Comp for Comp for Service
Social Security for Service up for Service from Service from from 01/01/01 to
Number to 12/31/00 01/01/01 to 12/31/03 09/01/94 to 12/31/00 12/31/03
- ------------------- ----------------- ---------------------- ---------------------- --------------------
###-##-#### 0.048891 0.049845 0.076206 1.752618
###-##-#### 0.000000 0.000000 0.000000 0.000000
###-##-#### 0.012630 0.021939 0.059431 0.257717
###-##-#### 0.170235 0.107242 0.122444 0.925566
###-##-#### 0.000000 0.000000 0.000000 0.000000
###-##-#### 0.062936 0.046692 0.101374 0.643049
###-##-#### 0.362002 0.186156 0.403422 3.393319
###-##-#### 0.000000 0.000000 0.000000 0.000000
###-##-#### 0.000000 0.000000 0.000000 0.000000
###-##-#### 0.146986 0.068106 0.122234 1.071600
###-##-#### 0.054142 0.092608 0.060373 0.451201
###-##-#### 0.111586 0.072341 0.104032 0.616748
###-##-#### 0.000000 0.000000 0.000000 0.000000
###-##-#### 0.000000 0.000000 0.000000 0.000000
###-##-#### 0.000000 0.000000 0.000000 0.000000
###-##-#### 0.007044 0.005076 0.006200 0.049163
###-##-#### 0.000000 0.000000 0.000000 0.000000
###-##-#### 0.000000 0.000000 0.000000 0.000000
(d)(iii)(A) (d)(iii)(B) (d)(iii)(C) (d)(iii)(D)
Social Security Factor Applied Factor for 2001
Number to 12/31/2000 Cash Balance Factor for 2002 Cash Factor for 2003 Cash
Cash Balance Accrual Balance Accrual Balance Accrual
- ----------------------------------------- ------------------ ----------------------- ----------------------
###-##-#### 0.055334 1.887089 1.887089 1.887089
###-##-#### 0.005584 0.000000 0.000000 0.000000
###-##-#### 0.000000 0.458479 0.458479 0.458479
###-##-#### 0.127453 0.416260 0.416260 0.416260
###-##-#### 0.011480 0.000000 0.000000 0.000000
###-##-#### 0.026110 0.729383 0.729383 0.729383
###-##-#### 0.261257 1.853613 1.853613 1.853613
###-##-#### 0.013852 0.000000 0.000000 0.000000
###-##-#### 0.036266 0.000000 0.000000 0.000000
###-##-#### 0.083023 0.945458 0.945458 0.945458
###-##-#### 0.070526 0.198974 0.198974 0.198974
###-##-#### 0.064930 0.604064 0.604064 0.604064
###-##-#### 0.034994 0.000000 0.000000 0.000000
###-##-#### 0.001974 0.000000 0.000000 0.000000
###-##-#### 0.009752 0.000000 0.000000 0.000000
###-##-#### 0.034705 0.021556 0.021556 0.021556
###-##-#### 0.036143 0.000000 0.000000 0.000000
###-##-#### 0.073154 0.000000 0.000000 0.000000
<Page>
106
SCHEDULE J: SPECIAL PROVISIONS APPLICABLE TO EMPLOYEES OF ACQUIRED ENTITIES
The provisions of this Schedule J shall apply to Employees who were formerly
employed by entities that were acquired by the Employer or an Affiliated
Employer.
1. Aviall, Inc.
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on May 21, 1996 whose immediate prior service
was with the Aviall, Inc. and who was employed by such entity at such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from May 21, 1996.
2. Alpha Heat Treaters Division of Alpha-Beta Industries, Inc.
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on April 30, 1998 whose immediate prior service
was with the Alpha Heat Treaters Division of Alpha-Beta Industries, Inc. and who
was employed by such entity at such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from April 30, 1998.
3. Servus
<Page>
107
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on August 1, 1998 whose immediate prior service
was with Servus and who was employed by such entity at such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from August 1, 1998.
4. Entertech
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on August 1, 1998 whose immediate prior service
was with Enertech and who was employed by such entity at such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from August 1, 1998.
5. Metallurgical Processing, Inc.
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on July 1, 1999 whose immediate prior service
was with Metallurgical Processing, Inc. and who was employed by such entity at
such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
<Page>
108
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from July 1, 1999.
6. Teledyne Fluid Systems - Farris/Sprague
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on August 28, 1999 whose immediate prior
service was with Teledyne Fluid Systems and who was employed by such entity at
such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from August 28, 1999.
7. EF Quality Heat Treating
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on December 14, 2000 whose immediate prior
service was with EF Quality Heat Treating and who was employed by such entity at
such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from December 14, 2000.
8. Lau Defense Systems and Vista Controls
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on October 25, 2001 whose immediate prior
service was with Lau Defense Systems or Vista Controls and who was employed by
such entity at such date:
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(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from October 25, 2001.
9. Ironbound Heat Treating Company
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on November 6, 2001 whose immediate prior
service was with Ironbound Heat Treating Company and who was employed by such
entity at such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from November 6, 2001.
10. Peerless Instrument Company
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on November 8, 2001 whose immediate prior
service was with Peerless Instrument Company and who was employed by such entity
at such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
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(c) For purposes of determining Credited Service, he shall have Credited
Service computed from November 8, 2001.
11. Deltavalve USA, L.L.C.
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on December 13, 2001 whose immediate prior
service was with Deltavalve USA, L.L.C. and who was employed by such entity at
such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from December 13, 2001.
12. Bodycote Thermal Processing
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on December 21, 2001 whose immediate prior
service was with Bodycote Thermal Processing and who was employed by such entity
at such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she continues to satisfy the eligibility
requirements in Section 2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from December 21, 2001.
13. Penny & Giles Controls, Inc.
Notwithstanding any provision in this Plan to the contrary, the following rules
shall apply to an Employee hired on February 20, 2002 whose immediate prior
service was with Penny & Giles Controls, Inc. and who was employed by such
entity at such date:
(a) Such an Employee shall be eligible to participate in the Plan as of
the Entry Date coinciding with or next following the date he or she
completes his or her Year of Eligibility Service, which Year of
Eligibility Service shall include such prior service, and shall remain
eligible so long as he or she
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continues to satisfy the eligibility requirements in Section
2.01(b)(i) and (ii).
(b) For purposes determining Vesting Years of Service, his period of such
prior service shall be included.
(c) For purposes of determining Credited Service, he shall have Credited
Service computed from February 20, 2002.
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SCHEDULE K 1: SPECIAL PROVISIONS FOR SUPPLEMENTAL CREDITS
FOR PARTICIPANTS AFFECTED BY CERTAIN REDUCTIONS IN FORCE
1. Target Rock Operations - August 1, 2000 through August 15, 2000
For each Participant employed at the Employer's Target Rock operations and whose
employment with the Employer is terminated between August 1, 2000 and August 15,
2000, in connection with or as a result of a reduction in force at the Target
Rock operations, a supplemental credit shall be added to his Escalating Annuity
Benefit. The amount of such supplemental credits shall be determined as follows:
an amount equal to the product of (i) 4/75, (ii) his number of years of Service,
and (iii) his weekly base rate of pay, provided, however, that the number of
years of Service taken into account for this purpose shall not be less than 4
years and shall not be greater than 24 years.
2. Company-wide Operations - August 24, 2001 through October 12, 2001
For each Participant whose employment with the Employer is terminated between
August 24, 2001 and October 12, 2001, in connection with or as a result of the
Company's reduction in force program, a supplemental credit shall be added to
his Escalating Annuity Benefit. The amount of such supplemental credits, shall
be determined as follows: an amount equal to the product of (i) 8/75, (ii) his
number of years of Service, and (iii) his weekly base rate of pay, provided,
however, that the number of years of Service taken into account for this purpose
shall not be less than 4 years and shall not be greater than 24 years for a
Participant who is a salaried or exempt employee and shall not be greater than 8
years for a Participant who is a nonexempt employee.
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SCHEDULE K 2: SPECIAL VESTING PROVISIONS FOR PARTICIPANTS AFFECTED BY
CERTAIN REDUCTIONS IN FORCE
1. Target Rock Operations - August 1, 2000 through August 15, 2000
Notwithstanding any provision hereof to the contrary, a Participant whose
employment with the Employer is terminated between August 1, 2000 and August 15,
2000, in connection with or as a result of a reduction in force at the Target
Rock operations shall be 100% vested in his Normal Retirement Benefit and his
Escalating Annuity Benefit.
2. Company-wide Operations - August 24, 2001 through October 12, 2001
Notwithstanding any provision hereof to the contrary, a Participant whose
employment with the Employer is terminated between August 24, 2001 and October
12, 2001, in connection with or as a result of the Company's reduction in force
program shall be 100% vested in his Normal Retirement Benefit and his Escalating
Annuity Benefit.