1
Exhibit 10.4
RETIREMENT PLAN
FOR SALARIED EMPLOYEES
OF RAYONIER INC.
Effective as of March 1, 1994
And Further Amended Through January 1, 1998
2
RETIREMENT PLAN FOR SALARIED EMPLOYEES
OF RAYONIER INC.
TABLE OF CONTENTS
Page
----
Foreword
--------
ARTICLE 1 DEFINITIONS......................................................1
ARTICLE 2 SERVICE
2.01 Eligibility Service.......................................15
2.02 Benefit Service...........................................22
2.03 Questions relating to Service under the Plan..............27
ARTICLE 3 MEMBERSHIP
3.01 Persons employed on the Effective Date....................28
3.02 Persons first employed as Employees on or
after the Effective Date ...............................28
3.03 Reemployment After March 1, 1994 of
ITT Incorporated Salaried Employees.....................29
3.04 Persons employed as a Leased Employee with the
Company or an Associated Company........................29
3.05 Persons employed as other than Employees
by the Company..........................................29
3.06 Reemployment of former Employees, former
Members and retired Members.............................30
3.07 Termination of membership.................................30
3.08 Questions relating to membership in the Plan..............31
ARTICLE 4 BENEFITS
4.01 Normal Retirement Allowance...............................32
4.02 Postponed Retirement Allowance............................34
4.03 Standard Early Retirement Allowance.......................36
4.04 Special Early Retirement Allowance........................37
4.05 Vested Benefit............................................39
4.06 Forms of Benefit Payment after Retirement.................41
(a) Automatic Forms of Payment...........................41
(b) Optional Forms of Payment............................43
(c) Required Notice......................................45
(d) Election of Options..................................45
4.07 Survivor's Benefit Applicable Before Retirement...........47
4.08 Maximum benefits..........................................64
4.09 No duplication............................................68
4.10 Payment of benefits.......................................69
4.11 Reemployment of former Member or retired Member...........72
4.12 Top-heavy provisions......................................76
4.13 Payment of Medical Benefits for Benefits for Certain
Members who retire under the Plan.......................80
4.14 Transfers from Hourly Plans maintained by the
Company or an Associated Company........................82
4.15 Direct Rollover of Certain Distributions..................82
3
RETIREMENT PLAN FOR SALARIED EMPLOYEES
OF RAYONIER INC.
TABLE OF CONTENTS
(Cont'd)
Page
----
ARTICLE 5 ADMINISTRATION OF PLAN..........................................84
ARTICLE 6 CONTRIBUTIONS...................................................88
ARTICLE 7 MANAGEMENT OF FUNDS.............................................90
ARTICLE 8 CERTAIN RIGHTS AND LIMITATIONS..................................92
ARTICLE 9 NONALIENATION OF BENEFITS......................................101
ARTICLE 10 AMENDMENTS.....................................................103
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
APPENDIX E
4
FOREWORD
The Plan as set forth in this document is known as the Retirement Plan for
Salaried Employees of Rayonier Inc. (hereinafter called the Plan).
Unless otherwise expressly provided in this Plan and consistent with applicable
law, (i) the rights and benefits of any Member who retires or whose employment
is terminated, whichever first occurs, are determined in accordance with the
provisions of the Plan in effect at the time of such retirement or termination,
and (ii) no revision to the Plan shall deprive any Member who retires or whose
employment is terminated prior to such revisions, of any rights and benefits
which theretofore had accrued under the Plan.
This Plan is intended to qualify under the Internal Revenue Code of 1986.
Subject to the preceding sentence, the Plan shall be construed, regulated and
administered under the laws of the State of Connecticut, to the extent such laws
are not superseded by applicable federal law.
5
RETIREMENT PLAN FOR SALARIED EMPLOYEES
OF RAYONIER INC.
ARTICLE 1 - DEFINITIONS
1.01 Accrued Benefit shall mean, as of any date of determination, the
retirement allowance computed under Section 4.01(b) on the basis of the
Member's Benefit Service and applicable components of the Plan formula as
of the determination date and with respect to the amount determined under
Section 4.01(b)(i)(4), the applicable components of the Prior Salaried
Plan as of the determination date.
1.02 Annual Dollar Limit shall mean the amount in effect under Section
401(a)(17) of the Code which is for Plan Years beginning in 1994,
$150,000, except that if for any calendar year after 1994 the
cost-of-living adjustment, as hereafter defined, is equal to or greater
than $10,000, then the Annual Dollar Limit (as previously adjusted under
this Section) for any Plan Year beginning in any subsequent calendar year
shall be increased by the amount of such cost-of-living adjustment,
rounded to the next lowest multiple of $10,000. The cost-of-living
adjustment shall equal the excess of (i) $150,000 increased by the
adjustment made under Section 415(d) of the Code for the calendar year
except that the base period for purposes of Section 415(d)(1)(A) of the
Code shall be the calendar quarter beginning October 1, 1993 over (ii) the
Annual Dollar Limit in effect for the Plan Year beginning in the calendar
year.
1.03 Annuity Starting Date shall mean the first day of the first period for
which an amount is due on behalf of a Member or former Member as an
annuity or any other form of payment under the Plan.
6
Page 2
1.04 Appendix shall mean the tables of factors which are used in determining
the amount of the various forms of benefits payable under the Plan.
1.05 Associated Company shall mean any subsidiary or affiliated company of
Rayonier Inc. not participating in the Plan which is (i) a component
member of a controlled group of corporations (as defined in Section 414(b)
of the Code), which controlled group of corporations includes as a
component member Rayonier Inc., (ii) any trade or business under common
control (as defined in Section 414(c) of the Code) with Rayonier Inc.,
(iii) 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 Rayonier Inc. or (iv) any other entity required to be
aggregated with Rayonier Inc. pursuant to regulations under Section 414(o)
of the Code, during the period such entity is described in clause (i),
(ii), (iii), or (iv). Notwithstanding the foregoing, for purposes of the
preceding sentence and Section 4.08 of the Plan, the definitions of
Section 414(b) and (c) of the Code shall be modified as provided in
Section 415(h) of the Code.
1.06 Beneficiary shall mean any person or entity named by a Member by written
designation to receive certain benefits payable in the event of his or her
death as provided under Section 4.07.
1.07 Benefit Service shall mean employment recognized as such for the purposes
of computing a benefit under the Plan as provided under Article 2.
1.08 Board of Directors shall mean the Board of Directors of Rayonier Inc. or
of any successor to Rayonier Inc. by merger, purchase or otherwise.
7
Page 3
1.09 Change in Control shall mean the occurrence of any one or more of the
following events: (i) subject to the conditions contained in the final
paragraph of this definition, the filing of a report on Schedule 13D with
the Securities and Exchange Commission pursuant to Section 13(d) of the
Securities Exchange Act of 1934 (the "Act") disclosing that any person,
other than the Corporation or any employee benefit plan sponsored by the
Corporation, is the beneficial owner (as the term is defined in Rule 13d-3
under the Act) directly or indirectly, of securities representing 20
percent or more of the total voting power represented by the Corporation's
then outstanding Voting Securities (calculated as provided in paragraph
(d) of Rule 13d-3 under the Act in the case of rights to acquire Voting
Securities); or (ii) the purchase by any person, other than the
Corporation or any employee benefit plan sponsored by the Corporation, of
shares pursuant to a tender offer or exchange offer to acquire any Voting
Securities of the Corporation (or securities convertible into such Voting
Securities) for cash, securities, or any other consideration, provided
that after consummation of the offer, the person in question is the
beneficial owner, directly or indirectly, of securities representing 20
percent or more of the total voting power represented by the Corporation's
then outstanding Voting Securities (all as calculated under clause (i));
or (iii) the approval by the shareholders of the Corporation of (A) any
consolidation or merger of the Corporation in which the Corporation is not
the continuing or surviving corporation (other than a merger of the
Corporation in which holders of Common Shares of the Corporation
immediately prior to the merger have the same proportionate ownership of
Common Shares of the surviving corporation immediately after the merger as
immediately before), or pursuant to which Common Shares of the Corporation
would be converted into cash, securities, or other property, or (B) any
sale, lease, exchange, or other transfer (in one transaction or a series
of related transactions) of all
8
Page 4
or substantially all the assets of the Corporation; or (iv) a change in
the composition of the Board of Directors of the Corporation at any time
during any consecutive 24-month period such that "continuing directors"
cease for any reason to constitute at least a 70 percent majority of the
Board. For purposes of this definition of "Change in Control," the term
"Voting Securities" means any securities of the Corporation which vote
generally in the election of members of the Board of Directors and the
term "continuing directors" means those members of the Board who either
were directors at the beginning of a consecutive 24-month period or were
elected during such period by or on the nomination or recommendation of at
least a 70 percent majority of the then-existing Board.
So long as there has not been a Change in Control within the meaning of
clause (iv) above, the Board of Directors may adopt by a 70 percent
majority vote of the "continuing directors" a resolution to the effect
that the occurrence of an event described in clause (i) (a "Clause (i)
Event") does not constitute a "Change in Control" (an "Excluding
Resolution") or a resolution to the effect that the occurrence of a Clause
(i) Event does constitute a "Change in Control" (an "Including
Resolution"). The adoption of an Excluding Resolution with respect to any
Clause (i) Event shall not deprive the Board of Directors of the right to
adopt an Including Resolution with respect to such Clause (i) Event at a
later date. A Clause (i) Event shall not in and of itself constitute a
"Change in Control" until the earlier of (x) the effective date of an
Including Resolution with respect thereto or (y) the passage of a period
of 30 calendar days after the occurrence thereof without an Excluding
Resolution having been adopted with respect thereto; notwithstanding the
adoption of an Excluding Resolution within the 30-day period referred to
in (y), an Including Resolution may subsequently be adopted with respect
to the relevant Clause (i) Event while it
9
Page 5
continues to exist, in which event a "Change in Control" shall be deemed
to have occurred for purposes of this definition upon the effective date
of such Including Resolution. The provisions of this second paragraph of
the definition of "Change in Control" relate only to situations where a
Clause (i) Event has occurred and no Change in Control within the meaning
of clause (ii), (iii), or (iv) of the preceding paragraph has occurred,
and nothing in this paragraph shall derogate from the principle that the
occurrence of an event described in clause (ii), (iii), or (iv) of the
preceding paragraph shall be deemed an immediate Change in Control
regardless of whether or not a Clause (i) Event has occurred and an
Excluding Resolution or Including Resolution become effective.
1.10 Code shall mean the Internal Revenue Code of 1986, as amended from time to
time.
1.11 Company shall mean Rayonier Inc. (formerly known as ITT Rayonier
Corporation) with respect to its Employees; and any Participating Unit
with respect to its Employees. When used herein, the term Company shall
collectively include Rayonier Inc. and any Participating Unit.
1.12 Compensation shall mean the total remuneration paid to a Member (whether
before or after membership in the Plan) for services rendered on and after
the Effective Date, including annual base salary, overtime, leadman's pay,
shift differential, and bonuses paid under the Rayonier Inc. local bonus
and gain share plans as in effect on March 1, 1994 (determined prior to
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), and for Members
who receive no other source of remuneration from the Company, commissions,
but excluding, except to the extent specifically
10
Page 6
included above, foreign service pay, automobile allowance, separation pay,
incentive pay or other special pay or allowances of similar nature,
commissions for any Member who receives any other form of remuneration
from the Company, bonuses, and the cost of any public or private employee
benefit plan, including the Plan; provided however, Compensation taken
into account for any purpose under the Plan shall not exceed the Annual
Dollar Limit.
1.13 Early Retirement Date shall mean the date as determined in the manner set
forth in Section 4.03.
1.14 Effective Date of the Plan shall mean March 1, 1994.
1.15 Eligibility Service shall mean any employment recognized as such for the
purposes of meeting the eligibility requirements for membership in the
Plan and for eligibility for benefits under the Plan as provided under
Article 2.
1.16 Employee shall mean any person regularly employed by the Company who is
paid from a payroll maintained in the continental United States, Hawaii,
Puerto Rico or the U.S. Virgin Islands and who receives regular and stated
compensation other than a pension or retainer; provided, however, that
except as the Board of Directors or the Retirement Committee, pursuant to
the authority delegated to it by the Board of Directors, may otherwise
provide on a basis uniformly applicable to all persons similarly situated,
no person shall be an Employee for purposes of the Plan who is (i) engaged
as a consultant, (ii) a non-resident alien, (iii) paid on an hourly basis
and who, under the Company's employment classification practices, is
considered as an hourly-rated employee for purposes of the Company's
employee benefit plans, (iv) accruing benefits in respect of current
11
Page 7
service under any other pension, retirement, qualified profit-sharing or
other similar plan of the Company (other than the Rayonier Inc. Investment
and Savings Plan for Salaried Employees,) or of any Associated Company (v)
a Leased Employee; and provided further, that no person shall be an
Employee for purposes of the Plan whose terms and conditions of employment
are determined by a collective bargaining agreement with the Company which
does not make this Plan applicable to such person. In addition, effective
January 1, 1998, any person considered to be an independent contractor by
the Company shall not be considered an Employee even if he is reclassified
as an employee by any taxing authority such as the Internal Revenue
Service or any other authority or agency.
1.17 Equivalent Actuarial Value shall mean equivalent value of a benefit under
the Plan determined on the basis of the applicable factors set forth in
Appendix A, except as otherwise specified in the Plan. In any other event,
Equivalent Actuarial Value shall be determined on the same actuarial basis
utilized to compute the factors set forth in Appendix A.
1.18 ERISA shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time.
1.19 Final Average Compensation shall mean the sum of
(a) The average of a Member's annual base salary recognized as
Compensation received in any five calendar years of Eligibility
Service in which such annual base salary was highest, plus
12
Page 8
(b) The average of a Member's annual Compensation in excess of annual
base salary received in any five calendar years of Eligibility
Service in which such Compensation was highest; provided, however,
that the calendar years on which such averages are based shall be
any five calendar years during the last 120 calendar months of a
Member's Eligibility Service or, if the Member has less than five
calendar years of Eligibility Service, all of his or her calendar
years of Eligibility Service; provided, further, however, that (i)
the annual base salary earned in any calendar year and taken into
account for purposes of "Final Average Compensation", and (ii) the
amount in excess of base annual salary earned in any calendar year
and taken into account for purposes of "Final Average Compensation",
and (iii) the sum of (i) and (ii) taken into account for any
calendar year, each shall not exceed the Annual Dollar Limit. If the
Member terminates employment before the last day of the calendar
year or otherwise experiences an interruption in Eligibility
Service, the Retirement Committee shall, in accordance with rules
uniformly applicable to all persons similarly situated, determine
the amount of the Member's Final Average Compensation. The term
Eligibility Service as used in this Section shall include all
service recognized as Eligibility Service for purposes of
eligibility requirements under Article 2.
1.20 Hour of Service shall mean hours of employment as defined pursuant to the
provisions of Section 2.01(b).
1.21 IRS Interest Rate shall mean 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.
13
Page 9
1.22 IRS Mortality Table shall mean the mortality table prescribed by the
Secretary of the Treasury under Code Section 417(e)(3)(A)(ii)(I) as in
effect on the first day of the applicable Stability Period.
1.23 Leased Employee shall mean any person as so defined in Section 414(n) of
the Code by virtue of his or her performance of services for the Company
or an Associated Company.
1.24 Member shall mean any person included in the membership of the Plan as
provided in Article 3.
1.25 Non-Benefits Worker shall mean any individual designated by the Company as
ineligible to participate in any Company-sponsored employee benefit
program and any individual who the Company considers to be an independent
contractor.
1.26 Normal Retirement Date shall mean the first day of the calendar month
coincident with or next following the date the Employee attains age 65,
which is his or her Normal Retirement Age.
1.27 Parental Leave shall mean a period in which a person is absent from work
because of the person's pregnancy, the birth of a person's child, the
adoption by a person of a child, or, for purposes of caring for that
child, for a period beginning immediately following such birth or
adoption.
1.28 Participating Unit shall mean, in addition to Rayonier Inc., any
subsidiary or affiliated company of Rayonier Inc., any designated
location(s) only of such subsidiary or affiliated company or any
designated unit(s) only of such subsidiary, or affiliated company which
has by appropriate action
14
Page 10
of the Board of Directors been designated as a Participating Unit and the
board of directors of any such subsidiary or affiliated company shall have
taken appropriate action to adopt the Plan. The Board of Directors shall
take action (i) to designate such entity as a Participating Unit, (ii) to
determine that such persons are Employees, and (iii) to establish, by
written amendment of the Plan, the terms and conditions under which such
Employees are to be included in the Plan.
If a group of persons is transferred to or assigned to a Participating
Unit or is hired by a Participating Unit as the result of the opening or
purchase of a plant or the merger of one unit into another, such persons
shall not be deemed to be Employees for purposes of the Plan until further
action by the Board of Directors, by written amendment of the Plan,
including the determination that such persons are Employees for purposes
of the Plan, and the establishment of the terms and conditions under which
such Employees are to be included in the Plan.
To the extent that the Board of Directors shall have authorized and
established the basis for recognition under the Plan of service with a
predecessor corporation(s), if any, reference in this Plan to service with
a Participating Unit shall include service with the predecessor
corporation(s) of such Participating Unit, provided that all or part of
the business and assets of any such corporation shall have been acquired
by Rayonier Inc. or by a Participating Unit.
1.29 Pension Fund Trust and Investment Committee shall mean the committee
established by Rayonier Inc. for the purposes of managing the assets of
the Plan as provided in Article 5.
15
Page 11
1.30 Plan shall mean the Retirement Plan for Salaried Employees of Rayonier
Inc. as set forth herein or as hereafter amended.
1.31 Plan Year shall mean the calendar year.
1.32 Postponed Retirement Date shall mean, with respect to an Employee who does
not retire at Normal Retirement Date but who works after such date, the
first day of the calendar month coincident with or next following the date
on which such Employee retires from active service. No retirement
allowance shall be paid to the Employee until his or her Postponed
Retirement Date, except as otherwise provided in Article 4.
1.33 Prior Salaried Plan shall mean the Retirement Plan for Salaried Employees
of ITT Corporation (now known as the "ITT Industries Salaried Retirement
Plan"), as in effect on February 28, 1994 and as thereafter amended from
time to time.
1.34 Qualified Joint and Survivor Annuity shall mean an annuity described in
Section 4.06(a)(i).
1.35 Retirement Committee shall mean the committee established for the purposes
of administering the Plan as provided in Article 5.
1.36 Severance Date shall mean the date an Employee is considered to have
severed his or her employment as defined pursuant to the provisions of
Section 2.01(a).
16
Page 12
1.37 Social Security Benefit shall mean the amount of annual old age or
disability insurance benefit under Title II of the Federal Social Security
Act as determined by the Retirement Committee under reasonable rules
uniformly applied, on the basis of such Act as in effect at the time of
retirement or termination to which a Member or former Member is or would
upon application be entitled, even though the Member does not receive such
benefit because of his or her failure to apply therefor or he or she is
ineligible therefor by reason of earnings he or she may be receiving in
excess of any limit on earnings for full entitlement to such benefit. In
computing the Member's Social Security Benefit, no wage index adjustment
or cost of living adjustment shall be assumed with respect to any period
after the end of the calendar year in which the Member retires or
terminates service. For all years prior to retirement or other termination
of employment with the Company where actual earnings are not available,
the Member's Social Security Benefit shall be determined on the basis of
the Member's actual earnings in conjunction with a salary increase
assumption based on the actual yearly change in national average wages as
determined by the Social Security Administration. If, within a reasonable
time after the later of (i) the date of retirement or other termination of
employment or (ii) the date on which a Member is notified of the
retirement allowance or vested benefit to which he or she is entitled, the
Member provides documentation from the Social Security Administration as
to his or her actual earnings history with respect to those prior years,
his or her Social Security Benefit shall be redetermined using the actual
earnings history. If this recalculation results in a different Social
Security Benefit, his or her retirement allowance or vested benefit shall
be adjusted to reflect this change. Any adjustment to his or her
retirement allowance or vested benefit shall be made retroactive to the
date his or her payments commenced. The Retirement Committee shall resolve
any questions arising under this Section on a basis uniformly applicable
to all Employees similarly situated.
17
Page 13
1.38 Social Security Retirement Age shall mean age 65 with respect to a Member
who was born before January 1, 1938; age 66 with respect to a Member who
was born after December 31, 1937 and before January 1, 1955; and age 67
with respect to a Member who was born after December 31, 1954.
1.39 Special Early Retirement Date shall mean the date as determined in the
manner set forth in Section 4.04.
1.40 Spousal Consent shall mean written consent given by a Member's or former
Member's spouse to an election made by the Member or former Member which
specifies the form of retirement allowance, vested benefit, Beneficiary,
or contingent annuitant designated by the Member or former Member. The
specified form or specified Beneficiary or contingent annuitant shall not
be changed unless further Spousal Consent is given. Spousal Consent shall
be duly witnessed by a notary public or, in accordance with uniform rules
of the Retirement Committee, by a Plan representative and shall
acknowledge the effect on the spouse of the Member's or former Member's
election. The requirement for Spousal Consent may be waived by the
Retirement Committee in accordance with applicable law. Spousal Consent
shall be applicable only to the particular spouse who provides such
consent.
1.41 Stability Period shall mean the Plan Year in which occurs the Annuity
Starting Date for the distribution.
18
Page 14
1.42 Transferred Employee shall mean an employee of the Company on the
Effective Date who is paid on an hourly basis, classified as an
hourly-rated employee for purposes of the Company's employee benefit
plans, and who is entitled to a benefit under the Prior Salaried Plan.
1.43 Trustee shall mean the trustee or trustees by which the funds of the Plan
are held as provided in Article 7.
19
Page 15
ARTICLE 2 - SERVICE
2.01 Eligibility Service
(a) Eligibility Service on and after the Effective Date. Except as otherwise
provided in this Article 2, all uninterrupted employment with the Company
or with an Associated Company rendered on and after (i) the Effective Date
or (ii) date of employment, if later, and prior to such Member's Severance
Date shall be recognized as Eligibility Service for all Plan purposes.
"Severance Date" shall mean the earlier of (i) the date a Member resigns,
is discharged, retires or dies or (ii) one year from the date the Member
is continuously absent from service for any other reason as provided in
this Article 2. Eligibility Service for any period of employment rendered
prior to the Effective Date shall be determined as set forth in Section
2.01(g).
(b) Eligibility Service for Plan membership by Employees hired on other than a
full-time basis -With respect to any Employee whose employment with the
Company or with an Associated Company is on a temporary or less than
full-time basis, "one year of Eligibility Service" for purposes of meeting
the requirements for membership in the Plan as provided in Article 3 shall
mean a period of twelve consecutive months of employment and measured from
the date on which he or she first completes an Hour of Service or from any
subsequent anniversary thereof and during which he or she has completed at
least 1,000 Hours of Service with the Company or with an Associated
Company. After such an Employee has met the requirements for membership in
the Plan as provided in Article 3, Eligibility Service for purposes of
meeting the eligibility requirements for benefits and for vesting shall be
determined in accordance with Sections 2.01(a) and 2.01(g).
20
Page 16
"Hours of Service" shall include hours worked and hours for which a person
is compensated by the Company or by an Associated Company for the
performance of duties for the Company or an Associated Company, although
he or she has not worked (such as: paid holidays, paid vacation, paid sick
leave, paid time off and back pay for the period for which it was
awarded), and each such hour shall be computed as only one hour, even
though he or she is compensated at more than the straight time rate. This
definition of "Hours of Service" shall be applied in a consistent and
non-discriminatory manner in compliance with 29 Code of Federal
Regulations, Section 2530.200b-2(b) and (c) as promulgated by the United
States Department of Labor and as may hereafter be amended.
Solely for purposes of this paragraph (b), if a temporary or less than
full-time Employee does not complete more than 500 Hours of Service in the
twelve month period beginning on the date on which he or she first
completes an Hour of Service or beginning on any subsequent anniversary
thereof (which for purposes of this paragraph (b) shall be known as the
"computation period"), he or she shall incur a one-year break in service.
Solely for purposes of determining whether such an Employee has incurred a
break in service, hours shall include each Hour of Service for which such
Employee would otherwise have been credited under this paragraph (b) were
it not for the Employee's absence due to Parental Leave. Hours of Service
credited under the preceding sentence shall not exceed the number of hours
needed to avoid a break in service in the computation period in which the
Parental Leave first began, and in any event shall not exceed 501 hours;
if no hours are needed to avoid a break in service in such computation
period, then the provisions of the preceding sentence shall apply as
though the Parental Leave began in the immediately following computation
period. If such an Employee has had a break in service before becoming
eligible for
21
Page 17
membership, Eligibility Service shall begin from the date of his or her
return to the employ of the Company or an Associated Company. Except as
otherwise provided in this Article 2, his or her Eligibility Service
before the break in service shall be restored only upon completion of one
year of Eligibility Service within the twelve-month period following his
or her break in service. If, however, the periods of consecutive one-year
breaks in service equals or exceeds the greater of (i) five years or (ii)
the total number of years of Eligibility Service before the break in
service, his or her Eligibility Service prior to the break shall never be
restored.
(c) Employment with the Company or an Associated Company but not as an
Employee Eligibility Service with respect to prior employment rendered by
any person who, on or after the Effective Date and prior to the date on
which he or she becomes an Employee, is or was in the employ of the
Company or an Associated Company but not as an Employee shall, subject to
the provisions of Section 2.01(e) and Section 2.01(f), be equal to:
(i) the number of years credited to him, if any, on the basis of the
"1,000 hour rule" under a pension plan maintained by the Company or
an Associated Company applicable to him or her for the period of
such prior employment ending on the last day of the calendar year
preceding the date on which he or she becomes an Employee or the
date on which such prior employment terminated, plus
(ii) the greater of (1) the service credited to him, if any, on the basis
of the "1,000 hour rule" for the portion of the calendar year ending
on the date immediately preceding the date he or she becomes an
Employee or the date on which such prior employment terminated, or
(2) the Eligibility Service he or she would be credited with under
this Plan for the entire calendar year in which the transfer or
termination of employment took place.
22
Page 18
Notwithstanding the foregoing provisions of this paragraph (c), in the
event a person's prior employment was not covered by or credited under a
pension plan which recognized employment on the basis of the "1,000 hour
rule", any such prior employment with the Company or an Associated Company
whether rendered before or after the Effective Date shall be recognized in
accordance with the terms of this Article 2.
(d) Certain absences to be recognized as Eligibility Service - Except as
otherwise indicated in this Article 2, the following periods of approved
absence rendered on and after the Effective Date shall be recognized as
Eligibility Service under the Plan and shall not be considered as breaks
in Eligibility Service:
(i) The period of any leave of absence granted in respect of service
with the armed forces of the United States on or after the
Effective Date provided the Employee shall have returned to the
service of the Company or an Associated Company in accordance with
reemployment rights under applicable law and shall have complied
with all of the requirements of such law as to reemployment.
(ii) Except as provided by law, the period on or after the Effective
Date of any leave of absence granted in respect of service, not
exceeding two years, with any other agency or department of the
United States Government.
(iii) The period on and after the Effective Date of any total and
permanent disability during which an Employee becomes entitled to
a disability benefit under Title II of the Federal Social Security
Act as amended from time to time or the period on and after the
Effective Date of total and permanent disability as determined by
the Retirement Committee on the basis of such medical information
as it shall require.
23
Page 19
(iv) The period of any leave of absence on and after the Effective Date
during which Company sickness or accident benefits are payable.
(v) The period on and after the Effective Date of any leave of absence
approved by the Company during which an Employee is paid
Compensation at a rate which is at least one-half of the
Employee's basic rate of Compensation in effect immediately prior
to such leave.
(vi) In any event, Eligibility Service shall include the period, with
or without Compensation, immediately preceding the Employee's
Severance Date but not in excess of 12 consecutive months
inclusive of those periods of approved absences already included
in sub-paragraphs (i) through (v) above, during which an Employee
is continuously absent from service.
(vii) The period between an Employee's Severance Date and his or her
reemployment if he or she returns to the employ of the Company or
an Associated Company before the first anniversary date of his or
her Severance Date; provided, however, that the combined periods
recognized under sub-paragraph (vi) above and under this
sub-paragraph (vii) shall not exceed 12 consecutive months.
(viii) The period of any periodic salary continuation payments an Employee
receives under any severance pay plan of the Company.
Except to the extent provided under sub-paragraph (vi) and, if applicable,
under sub-paragraph (vii) above, if an Employee fails to return to active
employment upon expiration of the approved absences specified in
sub-paragraphs (i), (ii), (iv) and (v) above, such periods of approved
absence shall not be considered as Eligibility Service under the Plan.
24
Page 20
(e) Breaks in Service - All absences from the Company or from an Associated
Company, other than the absences specified in paragraph (d) above, shall
be considered as breaks in Eligibility Service; provided, however, that in
no event shall there be a break in Eligibility Service if an Employee (i)
is continuously absent from service with the Company or with an Associated
Company and returns to the employ of the Company or an Associated Company
before the first anniversary of his or her Severance Date or (ii) is
absent from work because of a Parental Leave and returns to the employ of
the Company or an Associated Company within two years of his or her
Severance Date. If the provisions of clause (ii) above are applicable, the
first year of such absence for Parental Leave, measured from an Employee's
Severance Date, shall not be considered in determining the Employee's
period of break in service for purposes of Section 2.01(f) below.
(f) Bridging breaks in service
(i) If an Employee has a break in service and such Employee was eligible
for a vested benefit under Section 4.05 at the time of his or her
break in service, except as otherwise provided in Section 4.11,
employment both before and after the Employee's absence shall be
immediately recognized as Eligibility Service, subject to this
provisions of this Section 2.01, upon his or her return to the
employ of the Company or an Associated Company.
(ii) If an Employee has a break in service and such Employee was not
eligible for a vested benefit under Section 4.05 at the time of his
or her break in service, Eligibility Service shall begin from the
date of his or her return to the employ of the Company or an
Associated Company. If such Employee returns to the employ of the
Company or an Associated Company and the period of the Employee's
break is less than the greater of (1) five years or (2) the service
rendered prior to such
25
Page 21
break, the service prior to such break shall be included as
Eligibility Service, subject to the provisions of this Section 2.01,
only upon completion of at least twelve months of Eligibility
Service following his or her break in service. However, if the
period of the Employee's break in service equals or exceeds the
greater of (1) five years or (2) the service rendered prior to such
break, the service rendered prior to such break shall be included as
Eligibility Service, subject to the provisions of this Section 2.01,
only upon completion of a period of Eligibility Service equal to the
lesser of the period of his or her break in service or ten years.
(g) Eligibility Service prior to the Effective Date
Notwithstanding any foregoing provisions to the contrary, Eligibility
Service shall include (i) with respect to any person who becomes a Member
of the Plan on the Effective Date pursuant to the provisions of Section
3.01(a) or (b) or Section 3.05, any employment rendered by such Member
prior to the Effective Date to the extent such employment is recognized as
Eligibility Service under the provisions of the Prior Salaried Plan, (ii)
with respect to any person who was employed by ITT Rayonier Corporation on
a salaried basis as of February 28, 1994 but was not a member of the Prior
Salaried Plan as of such date and who becomes a Member of the Plan on or
after the Effective Date pursuant to the provisions of Section 3.01(c),
any uninterrupted employment with the Company or with an Associated
Company rendered by such Member prior to the Effective Date and prior to
his or her Severance Date, and (iii) with respect to any person who was
employed by ITT Rayonier Corporation on a salaried basis on December 1,
1993 but was not employed by the Company on the Effective Date, any
employment rendered by the Member prior to the Effective Date to the
extent such employment is recognized as Eligibility Service under the
provisions of the Prior Salaried Plan. With respect to a person not
described in clause (i), (ii), or (iii) of the
26
Page 22
preceding sentence who becomes a Member after the Effective Date,
Eligibility Service for the purpose of determining eligibility for
benefits but not for the purpose of determining eligibility for Plan
membership or Final Average Compensation shall include, subject to the
provisions of Section 2.01(f)(ii) with respect to bridging breaks in
service, any employment with ITT Rayonier Corporation rendered by such
Member prior to the Effective Date to the extent such employment is
recognized or would have been recognized as Eligibility Service under the
provisions of the Prior Salaried Plan.
2.02 Benefit Service
(a) Benefit Service on and after the Effective Date . Except as hereinafter
otherwise provided, all uninterrupted employment with the Company rendered
by a Member as an Employee on and after the Effective Date and prior to
his or her Severance Date shall be recognized as Benefit Service under the
Plan. Benefit Service for any period of employment rendered prior to the
Effective Date shall be determined as set forth in Section 2.02(f).
(b) Employment with an Associated Company - Except as otherwise provided in an
Appendix to the Plan, no employment with an Associated Company rendered by
a Member shall be recognized as Benefit Service under the Plan; except,
however, if a Member completes 36 months of Eligibility Service as an
Employee, any employment rendered on and after the Member's date of hire
with an Associated Company before classification as an Employee shall be
recognized as Benefit Service subject to any limitations for the
Associated Company at which the Member was employed set forth in writing
by the Retirement Committee. If a Member ceases to be an Employee and is
again employed at an Associated Company, such further employment will not
be recognized as Benefit
27
Page 23
Service unless and until the Member again (i) becomes an Employee and (ii)
completes 36 months of Eligibility Service as an Employee.
(c) Employment with the Company but not as an Employee
Except as otherwise provided in Section 3.04, with respect to (i) any
person who on or after the Effective Date and immediately prior to the
date on which he or she becomes an Employee, is in the employ of the
Company but not as an Employee and (ii) any Member who completes an Hour
of Service on and after the Effective Date, and who thereafter ceases to
be an Employee but remains in the employ of the Company and, on or after
the Effective Date again becomes an Employee, uninterrupted employment
with the Company otherwise than as an Employee rendered on and after the
Effective Date shall be recognized as Benefit Service in accordance with
the terms of this Section 2.02, provided such person is a Member of the
Plan, upon completion of thirty-six months of Eligibility Service as an
Employee, subject to the limitations set forth in writing by the Board of
Directors or the Retirement Committee for the Participating Unit at which
such person was first employed.
(d) Certain absences to be recognized as Benefit Service - Except as otherwise
indicated below, the following periods of approved absence rendered on and
after the Effective Date shall be recognized as Benefit Service and shall
not be considered as breaks in Benefit Service:
(i) The period of any leave of absence granted in respect of service
with the armed forces of the United States on and after the
Effective Date provided the Employee shall have returned to the
service of the Company or an Associated Company in accordance with
28
Page 24
reemployment rights under applicable law and shall have complied
with all of the requirements of such law as to reemployment.
(ii) Except as provided by law, the period on and after the Effective
Date of any leave of absence granted in respect of service, not
exceeding two years, with any other agency or department of the
United States Government.
(iii) The period on and after the Effective Date of any total and
permanent disability during which an Employee becomes entitled to a
disability benefit under Title II of the Federal Social Security Act
as amended from time to time; provided, however, that, if such
disability benefit ceases to be paid solely due to the Employee's
age, Benefit Service shall include the period of total and permanent
disability during which the Employee is entitled or would have been
entitled if he or she had participated in the Company's applicable
long term disability plan to receive disability benefit under such
long term disability plan.
(iv) The period on and after the Effective Date of any leave of absence
during which Company sickness or accident benefits are payable.
(v) The period on and after the Effective Date of any leave of absence
approved by the Company during which an Employee is paid
Compensation at a rate which is at least one-half of the Employee's
basic rate of Compensation in effect immediately prior to such
leave.
(vi) In any event, Benefit Service shall include the period, with or
without Compensation, immediately preceding the Employee's Severance
Date not in excess of 12 consecutive months inclusive of those
periods of approved absences already included in sub-paragraphs (i)
through (v) above, during which an Employee is continuously absent
from service.
29
Page 25
(vii) The period of any periodic salary continuation payments an Employee
receives under any severance pay plan of the Company.
Except to the extent provided under sub-paragraph (vi) above, if an
Employee fails to return to active employment upon expiration of the
approved absences specified in sub-paragraphs (i), (ii), (iv) and (v)
above, such periods of approved absence shall not be considered as Benefit
Service under the Plan.
The Compensation of a Member during the periods of absence covered by
clause (i), (ii), (iv) or (vi) above shall be the Compensation the Member
actually receives during such period. The Compensation of a Member during
the period of absence covered by clause (iii) above shall be deemed to be
the Member's Final Average Compensation based on his or her Eligibility
Service up to such absence. Unless the Retirement Committee determines
otherwise on a basis uniformly applicable to all persons similarly
situated, the Social Security Benefit of a Member covered by clause (iii)
above shall be based on the benefit awarded by the Social Security
Administration at the date of his or her total and permanent disability.
(e) All Other Absences for Employees
(i) No period of absence approved by the Company other than those
specified in Section 2.02(d) above shall be recognized as Benefit
Service.
(ii) No other absence, other than the absence covered by the exception in
clause (i) above, shall be recognized as Benefit Service and any
such absence shall be considered as a break in Benefit Service;
provided, however, that in no event shall there be a break in
Benefit Service if an Employee is continuously absent from service
with the Company or with an
30
Page 26
Associated Company for a period not in excess of 12 months and
returns as an Employee to the employ of the Company before the first
anniversary date of his or her Severance Date. However, any period
between a Severance Date and a reemployment date which is counted as
Eligibility Service under Section 2.01(d)(vii) shall not be counted
as Benefit Service.
If the Employee was eligible for a vested benefit under Section 4.05
at the time of a break in service, Benefit Service both before and
after the Employee's absence shall be immediately recognized as
Benefit Service under the Plan upon his or her return to service.
If the Employee was not eligible for a vested benefit under Section
4.05 at the time of a break in service, Benefit Service shall begin
from the date of the Employee's return to the employ of the Company.
However, any Benefit Service rendered prior to such break in service
shall be included, subject to the provisions of this Section 2.02,
as Benefit Service only at the time that he or she bridges his or
her Eligibility Service in accordance with the provisions of Section
2.01(f).
(f) Benefit Service prior to the Effective Date
Notwithstanding any foregoing provisions to the contrary, Benefit Service
shall include (i) with respect to any person who becomes a Member of the
Plan on the Effective Date pursuant to the provisions of Section 3.01(a)
or (b) or Section 3.05, any employment rendered by such Member prior to
the Effective Date to the extent such employment is recognized as Benefit
Service under the provisions of the Prior Salaried Plan, (ii) with respect
to any person who was employed by ITT
31
Page 27
Rayonier Corporation on a salaried basis as of February 28, 1994 but who
was not a Member of the Prior Salaried Plan as of such date and who
becomes a Member of the Plan on or after the Effective Date pursuant to
the provisions of Section 3.01(c), any uninterrupted employment with the
Company rendered by such Member as an Employee prior to the Effective Date
and prior to his or her Severance Date, and (iii) with respect to any
person who was employed by ITT Rayonier Corporation on a salaried basis on
or after December 1, 1993 but was not employed by the Company on the
Effective Date, any employment rendered by the Member prior to the
Effective Date to the extent such employment is recognized as Benefit
Service under the provisions of the Prior Salaried Plan.
2.03 Questions relating to Service under the Plan - If any question shall arise
hereunder as to an Employee's Eligibility Service or Benefit Service, such
question shall be resolved in writing by the Retirement Committee on a
basis uniformly applicable to all Employee(s) similarly situated. The
Retirement Committee may, with respect to any person or any group of
persons which it considers to be not substantial in number, determine
whether the employment of such person(s), the Company or any Associated
Company shall be recognized under the Plan as Eligibility Service or
Benefit Service. If, in the judgment of the Retirement Committee, a group
of persons is considered to be substantial in number, the employment of
such persons with the Company or any Associated Company shall not be
recognized under the Plan as Eligibility Service or Benefit Service until
further action by the Board of Directors. Such further documentation is
hereby incorporated into the Plan by reference.
32
Page 28
ARTICLE 3 - MEMBERSHIP
3.01 Persons employed on the Effective Date
(a) Any person who is an Employee as defined in Section 1.16 on the
Effective Date and who was a member of the Prior Salaried Plan on
February 28, 1994 shall become a Member of the Plan on the Effective
Date.
(b) Any person who would be classified as an Employee as defined in
Section 1.16 on the Effective Date but is absent from work at the
Company by reason of layoff, leave of absence, short term disability
or long term disability and who is a Member of the Prior Salaried
Plan on February 28, 1994 shall become a Member of the Plan on the
Effective Date.
(c) Any person who is an Employee as defined in Section 1.16 on the
Effective Date and who as of February 28, 1994 was not a member of
the Prior Salaried Plan but was in the process of satisfying the age
and service eligibility requirements for membership in the Prior
Salaried Plan, shall become a Member of the Plan as of the first day
of the calendar month coincident with or next following the date he
or she completes the age and service requirements set forth in
Section 3.02(a) and (b).
3.02 Persons first employed as Employees on or after the Effective Date - Every
person who is first employed as an Employee on or after the Effective Date
shall become a Member of the Plan as of the first day of the calendar
month coincident with or next following the later of:
(a) the date on which he or she attains the 21st anniversary of his or
her birth, or
(b) the date on which he or she completes one year of Eligibility
Service.
33
Page 29
3.03 Reemployment After March 1, 1994 of ITT Rayonier Incorporated Salaried
Employees Any person who was employed by ITT Rayonier Incorporated on a
salaried basis on December 1, 1993 and who was a member of the Prior
Salaried Plan but who terminated employment prior to the Effective Date
shall become a Member of the Plan on the first day he is employed as an
Employee.
3.04 Persons employed as a Leased Employee with the Company or an Associated
Company Any person who is a Leased Employee shall not be eligible to
participate in the Plan. However notwithstanding any other Plan provision
to the contrary, if a Leased Employee subsequently becomes an Employee as
defined in Section 1.16 or an Employee as defined in Section 1.16
subsequently becomes employed as a Leased Employee, uninterrupted
employment with the Company or an Associated Company as a Leased Employee,
shall be counted for the sole purpose of determining Eligibility Service
but not for the purpose of determining Benefit Service; provided, however,
that Eligibility Service shall not be counted for any Leased Employee for
any period of his or her employment during which the requirements of
Section 414(n)(5) of the Code are met.
3.05 Persons employed as other than Employees by the Company - Every person
employed as other than an Employee by a Participating Unit shall become a
Member of the Plan as of the first day of the calendar month coincident
with or next following the date on which he or she first becomes an
Employee, but not unless and until he or she satisfies the same terms and
conditions which would have been applicable had he or she always been an
Employee at such Participating Unit. Notwithstanding the foregoing, a
Transferred Employee shall become a Member on the Effective Date.
34
Page 30
3.06 Reemployment of former Employees, former Members and retired Members
Except as provided in Section 3.03, any person reemployed by the Company
as an Employee shall be considered a new Employee for membership purposes
under the Plan if such Employee was not previously a Member of the Plan.
The membership of any person reemployed by the Company as an Employee
shall be immediately resumed if such Employee was previously a Member of
the Plan.
If a retired Member or a former Member is reemployed by the Company or by
an Associated Company in a capacity other than as a Non-Benefits Worker,
his or her membership in the Plan shall be immediately resumed and any
payment of a retirement allowance with respect to his or her original
retirement or any payment of a vested benefit with respect to his or her
original employment shall cease in accordance with the provisions of
Section 4.11.
3.07 Termination of membership - Unless otherwise determined by the Retirement
Committee in writing under rules uniformly applicable to all person(s) or
Employee(s) similarly situated, an Employee's membership in the Plan shall
terminate if he or she ceases to be an Employee and he or she is not
entitled to either a retirement allowance or vested benefit under Sections
4.01, 4.02, 4.03, 4.04 or 4.05, except that an Employee's membership shall
continue (a) during any period while on leave of absence approved by the
Company, (b) while absent by reason of temporary disability, (c) during
the period of any total and permanent disability which continues to be
recognized as Eligibility Service and Benefit Service as provided in
Article 2, (d) while he or she is not an Employee as
35
Page 31
herein defined but is in the employ of the Company or an Associated
Company, or (e) during the period of any periodic salary continuation
payments an Employee receives under any severance pay plan of the Company.
Employees covered by the Plan may not waive such coverage.
3.08 Questions relating to membership in the Plan - If any question shall arise
hereunder as to the commencement, duration or termination of the
membership of any person(s) or Employee(s) employed by the Company or by
an Associated Company, such question shall be resolved by the Retirement
Committee in writing under rules uniformly applicable to all person(s) or
Employee(s) similarly situated. Such further documentation is hereby
incorporated into the Plan by reference.
36
Page 32
ARTICLE 4 - BENEFITS
4.01 Normal Retirement Allowance
(a) The right of a Member to his or her normal retirement allowance shall be
nonforfeitable as of his or her Normal Retirement Age. A Member may retire
from active service on a normal retirement allowance upon reaching his or
her Normal Retirement Date. If a Member postpones his or her retirement
and continues in active service after his or her Normal Retirement Date or
returns to service after his or her Normal Retirement Date, the provisions
of Section 4.02 shall be applicable.
(b) Benefit - Prior to adjustment in accordance with Sections 4.06(a) and
4.07(c), the annual normal retirement allowance payable on a lifetime
basis upon retirement at a Member's Normal Retirement Date shall be equal
to the sum of (i) and (ii) where:
(i) equals
(1) 2 percent of the Member's Final Average Compensation multiplied by
the portion of the first 25 years of his or her Benefit Service
rendered prior to the Effective Date;
(2) plus 1-1/2 percent of the Member's Final Average Compensation
multiplied by the next 15 years of his or her Benefit Service
rendered prior to the Effective Date, to a combined maximum of 40
years of Benefit Service;
(3) reduced by 1-1/4 percent of the Social Security Benefit multiplied
by the portion of his or her years of Benefit Service rendered prior
to the Effective Date, and not in excess of 40 years;
(4) reduced, but not below zero, by the annual normal retirement
allowance determined under the provisions of Section 4.01(b) of the
Prior Salaried Plan prior to the imposition of any
37
Page 33
limitations under Section 415 of the Code and the application of any
offset provisions of the Prior Salaried Plan, with respect to the
Member's period of employment rendered prior to the Effective Date
which has been credited as Benefit Service hereunder pursuant to the
provisions of Section 2.02(f); and
(ii) equals:
(1) 2 percent of the Member's Final Average Compensation multiplied by
the portion of the first 25 years of his or her Benefit Service
rendered on and after the Effective Date;
(2) plus 1-1/2 percent of the Member's Final Average Compensation
multiplied by the portion of the next 15 years of his or her Benefit
Service rendered on or after the Effective Date, to a combined
maximum of 40 years of Benefit Service minus the total number of
years of Benefit Service rendered prior to the Effective Date;
(3) reduced by 1-1/4 percent of the Social Security Benefit multiplied
by the portion of the number of years of his or her Benefit Service
rendered on or after the Effective Date not in excess of 40 years
minus the total number of years of Benefit Service rendered prior to
the Effective Date.
The combined maximum years of Benefit Service used to compute the amounts
under clauses (i) and (ii) above shall not exceed 40 years.
The annual normal retirement allowance determined prior to reduction to be
made on account of the Social Security Benefit shall be an amount not less
than the greatest annual early retirement allowance which would have been
payable to a Member had he or she retired under Section 4.03 or Section
4.04 at any time before his or her Normal Retirement Date and as such
early retirement allowance would have been reduced to commence at such
earlier date but without reduction on
38
Page 34
account of the Social Security Benefit. The reduction to be made on
account of the Social Security Benefit shall in any event be based on the
Federal Social Security Act in effect at the time of the Member's actual
retirement.
4.02 Postponed Retirement Allowance
(a) A Member who continues in active service after his or her Normal
Retirement Date or returns to active service on or after his or her Normal
Retirement Date shall be retired from active service on a postponed
retirement allowance on the first day of the month following his or her
termination of employment, which date shall be the Member's Postponed
Retirement Date.
(b) Benefit - Except as hereinafter provided and prior to adjustment in
accordance with Sections 4.06(a) and 4.07(c), the annual postponed
retirement allowance payable on a lifetime basis upon retirement at a
Member's Postponed Retirement Date shall be equal to the greater of:
(i) an amount determined in accordance with Section 4.01(b) but based on
the Member's Benefit Service, Social Security Benefit and Final
Average Compensation and, with respect to the amount determined
under Section 4.01(b)(i)(4), any applicable components under the
Prior Salaried Plan as of his or her Postponed Retirement Date or
(ii) the annual normal retirement allowance to which the Member would
have been entitled under Section 4.01(b) had he or she retired on
his or her Normal Retirement Date, increased by an amount which is
the Equivalent Actuarial Value of the monthly payments which would
have been payable with respect to each month in which he or she
worked fewer than eight days. Any monthly payment determined under
this sub-paragraph (ii) with respect to any such month in which he
or she worked fewer than eight days shall be
39
Page 35
computed as if the Member had retired on his or her Normal
Retirement Date and shall reflect additional benefit accruals, if
any, recomputed as of the first day of each subsequent Plan Year
during which payment would have been made on the basis of his or her
Final Average Compensation and Benefit Service accrued to such
recomputation date.
(c) Benefit for Member in Active Service after he or she attains Age 70-1/2 -
In the event a Member's retirement allowance is required to begin under
Section 4.10 while the Member is in active service, the January 1
immediately following the calendar year in which the Member attained age
70-1/2 shall be the Member's Annuity Starting Date for purposes of this
Article 4 and the Member shall receive a postponed retirement allowance
commencing on that January 1 in an amount determined as if he or she had
retired on such date. As of each succeeding January 1 prior to the
Member's actual Postponed Retirement Date and as of his or her actual
Postponed Retirement Date, the Member's retirement allowance shall be:
(i) recomputed to reflect any additional retirement allowance
attributable to his or her Compensation and Benefit Service earned
during the immediately preceding calendar year and based on his or
her age at each succeeding January 1 or actual Postponed Retirement
Date, and
(ii) reduced by the Equivalent Actuarial Value of the total payments of
his or her postponed retirement allowance made with respect to each
month of continued employment in which he or she was credited with
at least eight days of service and which were paid prior to each
such recomputation;
40
Page 36
provided that no such reduction shall reduce the Member's postponed
retirement allowance below the amount of postponed retirement allowance
payable to the Member immediately prior to the recomputation of such
retirement allowance.
4.03 Standard Early Retirement Allowance
(a) Eligibility - A Member, who has not reached his or her Normal Retirement
Date but has, prior to his or her termination of employment reached the
55th anniversary of his or her birth and completed ten years of
Eligibility Service, is eligible to retire on a standard early retirement
allowance on the first day of the calendar month coincident with or next
following termination of employment, which date shall be the Member's
Early Retirement Date.
(b) Benefit - Except as hereinafter provided and prior to adjustment in
accordance with Sections 4.06(a) and 4.07(c) the standard early retirement
allowance shall be an allowance deferred to commence on the Member's
Normal Retirement Date and shall be equal to the Member's Accrued Benefit
earned up to his or her Early Retirement Date, computed on the basis of
his or her Benefit Service, Final Average Compensation, Social Security
Benefit and any applicable components of the Prior Salaried Plan as of his
or her Early Retirement Date, with the Social Security Benefit determined
on the assumption that the Member had no earnings after his or her Early
Retirement Date.
The Member may, however, elect to receive an early retirement allowance
commencing on his or her Early Retirement Date or the first day of any
calendar month before his or her Normal Retirement Date specified in his
or her later request therefor in a reduced amount which, prior to
41
Page 37
adjustment in accordance with Sections 4.06(a) and 4.07(c) shall be equal
to his or her Accrued Benefit earned up to his or her Early Retirement
Date prior to the reduction for the Social Security Benefit, reduced by
1/4 of 1 percent per month for each month by which the commencement date
of his or her retirement allowance precedes his or her Normal Retirement
Date.
The reduction to be made on account of the Social Security Benefit, with
respect to the retirement allowance payable to a Member retiring prior to
his or her 62nd birthday, shall not be made until such time as the Member
is or would upon proper application first be entitled to receive said
Social Security Benefit. With respect to a Member who retires on and after
said date and prior to attaining age 62, the reduction to be made to the
retirement allowance payable to such Member or any benefit payable after
his or her death to his or her spouse or to a contingent annuitant
pursuant to the provisions of Section 4.06 on account of the Social
Security Benefit shall not be made until such time as the Member is or
would have, had he or she survived, upon proper application first been
entitled to receive said Social Security Benefit.
4.04 Special Early Retirement Allowance
(a) Eligibility - A Member who has not reached his or her Normal Retirement
Date but who prior to his or her termination of employment (i) has reached
the 55th anniversary of his or her birth and completed fifteen years of
Eligibility Service or (ii) has reached the 50th anniversary of his or her
birth but not the 55th anniversary of his or her birth and whose age plus
years of Eligibility Service equals eighty or more, is eligible, in either
case, to retire on a special early retirement allowance on the first day
of the calendar month coincident with or next following termination of
employment, which date shall be the Member's Special Early Retirement
Date.
42
Page 38
(b) Benefit - Except as hereinafter otherwise provided and prior to adjustment
in accordance with Sections 4.06(a) and 4.07(c) the special early
retirement allowance shall be an allowance deferred to commence on the
Member's Normal Retirement Date and shall be equal to his or her Accrued
Benefit earned up to the Member's Special Early Retirement Date, computed
on the basis of his or her Benefit Service, Final Average Compensation,
Social Security Benefit and any applicable components of the Prior
Salaried Plan as of his or her Special Early Retirement Date, with the
Social Security Benefit determined on the assumption that the Member had
no earnings after his or her Special Early Retirement Date.
At or after his or her Special Early Retirement Date, however, the Member
may elect to receive early payment of his or her Accrued Benefit
commencing on the later of his or her Special Early Retirement Date or the
first day of any later calendar month prior to his or her Normal
Retirement Date as specified in his or her request therefor.
In the event of early payment commencing on the first day of the month
coincident with or following the 60th anniversary of a Member's birth, the
special early retirement allowance, prior to any adjustment in accordance
with Sections 4.06(a) and 4.07(c), payable prior to age 62 shall be equal
to his or her Accrued Benefit earned up to the Member's Special Early
Retirement Date prior to the reduction for the Social Security Benefit;
such retirement allowance shall not be increased to reflect a commencement
date later than the 60th anniversary of the Member's birth.
43
Page 39
In the event of early payment commencing prior to the 60th anniversary of
a Member's birth, the special early retirement allowance, prior to any
adjustment in accordance with Sections 4.06(a) and 4.07(c), payable prior
to age 62 shall be equal to his or her Accrued Benefit earned up to the
Member's Special Early Retirement Date prior to the reduction for the
Social Security Benefit but reduced by 5/12 of 1 percent per month for
each month up to 60 months by which the commencement date of his or her
special early retirement allowance precedes the first day of the calendar
month coinciding with or next following the 60th anniversary of his or her
birth.
The reduction to be made on account of the Social Security Benefit, with
respect to the retirement allowance payable to a Member retiring prior to
his or her 62nd birthday, shall be made at such time as the Member is or
would upon proper application first be entitled to receive said Social
Security Benefit. With respect to a Member who retires prior to attaining
age 62, the reduction to be made to the retirement allowance payable to
such Member or any benefit payable after his or her death to his or her
spouse or to a contingent annuitant pursuant to the provisions of Section
4.06 on account of the Social Security Benefit shall not be made until
such time as the Member is or would have, if he or she had survived, upon
proper application first been entitled to receive said Social Security
Benefit.
4.05 Vested Benefit
(a) Eligibility - A Member shall be vested in, and have a nonforfeitable right
to, his or her Accrued Benefit upon completion of five years of
Eligibility Service. If such Member's services are subsequently terminated
for reasons other than death or early retirement prior to his or her
Normal
44
Page 40
Retirement Date, he or she shall be entitled to a vested benefit under the
provisions of this Section 4.05.
(b) Benefit - Prior to adjustment in accordance with Sections 4.06(a) and
4.07(a), the vested benefit payable to a Member shall be a benefit
deferred to commence on the former Member's Normal Retirement Date and
shall be equal to his or her Accrued Benefit earned up to the date the
Member's employment is terminated, computed on the basis of his or her
Benefit Service, Final Average Compensation, Social Security Benefit and
any applicable component of the Prior Salaried Plan as of his or her date
of termination, with the Social Security Benefit determined on the
assumption that the Member continued in service to his or her Normal
Retirement Date at his or her rate of Compensation in effect as of his or
her date of termination. On or after the date on which the former Member
shall have reached the 55th anniversary of his or her birth he or she may
elect to receive a benefit commencing on the first day of any calendar
month coincident with or next following the 55th anniversary of his or her
birth and prior to his or her Normal Retirement Date as specified in his
or her request therefor, after receipt by the Retirement Committee of
written application therefor made by the former Member and filed with the
Retirement Committee. Upon such earlier payment, the vested benefit
otherwise payable at the former Member's Normal Retirement Date will be
reduced by 1/180th for each month up to 60 months by which the
commencement date of such payments precedes his or her Normal Retirement
Date and further reduced by 1/360th for each such month in excess of 60
months.
45
Page 41
4.06 Forms of Benefit Payment after Retirement
(a) Automatic Forms of Payment
(i) Automatic Joint and Survivor Annuity - If a Member or former Member
who is married on his or her Annuity Starting Date has not made an
election of an optional form of payment as provided in Section
4.06(b), the retirement allowance or vested benefit payable to such
Member or former Member shall automatically be adjusted as follows
in order to provide that, after his or her death, a lifetime benefit
as described below shall be payable to the spouse to whom he or she
is married on his or her Annuity Starting Date:
(1) 90/50 Spouse's Annuity - If such Member retires from active
service under Section 4.01, Section 4.02, Section 4.03 or
Section 4.04, the automatic joint and survivor annuity payable
to the Member shall provide (A) a reduced retirement allowance
payable to the Member during his or her life equal to 90% of
the retirement allowance otherwise payable without optional
modification to the Member under Section 4.01, 4.02, 4.03 or
4.04, as the case may be, further adjusted, if necessary, as
provided in the following sentence and (B) a benefit payable
after his or her death to his or her surviving spouse equal to
50% of the retirement allowance otherwise payable without
optional modification to the Member under Section 4.01, 4.02,
4.03 or 4.04, as the case may be, and without further
adjustment as provided in the following sentence. If such
spouse is more than 5 years older than the Member, the reduced
retirement allowance payable to the Member shall be increased
for each such additional full year in excess of 5 years, but
for not more than 20 years, by one-half of 1% of the
retirement allowance payable to the Member prior to optional
modification. If such spouse is more than 5 years younger than
the Member, the reduced retirement
46
Page 42
allowance payable to the Member shall be further reduced for
each such additional full year in excess of 5 years by
one-half of 1% of the retirement allowance payable to the
Member prior to optional modification.
Notwithstanding the foregoing, the retirement allowance
payable to the Member shall not be less than the retirement
allowance otherwise payable without optional modification to
the Member at retirement under Section 4.01, 4.02, 4.03 or
4.04, as the case may be, multiplied by the appropriate factor
contained in Table 3 of Appendix A.
(2) Vested Spouse's Annuity - If such Member terminates service
and is entitled to a vested benefit under Section 4.05, the
joint and survivor annuity payable to the former Member shall
provide (A) a reduced vested benefit payable to the former
Member during his or her life equal to his or her vested
benefit computed in accordance with Section 4.05 multiplied by
the appropriate factor contained in Table 1 of Appendix A and
(B) a benefit payable after his or her death to his or her
surviving spouse equal to 50% of the reduced vested benefit
payable to the former Member.
(ii) Automatic Life Annuity - If a Member or former Member is not married
on his or her Annuity Starting Date, the retirement allowance or
vested benefit computed in accordance with Section 4.01, 4.02, 4.03,
4.04 or 4.05, as the case may be, shall be paid to the Member or
former Member in the form of a lifetime benefit payable during his
or her own lifetime with no further benefit payable to anyone after
his or her death, unless the Member or former Member is eligible for
and makes an election of an optional form of payment under Section
4.06(b).
47
Page 43
(b) Optional Forms of Payment
(i) Life Annuity Option - Any Member or former Member who retires or
terminates employment with the right to a retirement allowance or
vested benefit may elect, in accordance with the provisions of
Section 4.06(d), to provide that the retirement allowance payable to
him or her under Section 4.01, 4.02, 4.03 or 4.04 or the vested
benefit payable to him or her under Section 4.05 shall be in the
form of a lifetime benefit payable during his or her own lifetime
with no further benefit payable to anyone after his or her death.
(ii) 80/80 Spouse's Annuity Option - Any Member who retires from active
service under Section 4.01, 4.02, 4.03 or 4.04, who is married on
his or her Annuity Starting Date, may elect, in accordance with the
provisions of Section 4.06(d), to convert the retirement allowance
otherwise payable to him or her without optional modification under
Section 4.01, 4.02, 4.03 or 4.04, as the case may be, into the
following alternative benefit in order to provide that, after his or
her death, a lifetime benefit shall be payable to the spouse to whom
the Member is married on his or her Annuity Starting Date.
The Member shall receive a reduced retirement allowance payable
during his or her life equal to 80% of the retirement allowance
otherwise payable without optional modification to the Member at
retirement under Section 4.01, 4.02, 4.03 or 4.04, as the case may
be, further adjusted, if necessary, as provided below. The Member's
surviving spouse shall receive a benefit payable after the Member's
death equal to the Member's retirement allowance as reduced in this
Section 4.06(b)(ii).
48
Page 44
If such spouse is more than 5 years older than the Member, the
reduced retirement allowance payable to the Member shall be
increased for each such additional full year in excess of 5 years,
but for not more than 20 years, by 1% of the retirement allowance
payable to the Member prior to optional modification. If such spouse
is more than 5 years younger than the Member, the reduced retirement
allowance payable to the Member shall be further reduced for each
such additional full year in excess of 5 years by 1% of the
retirement allowance payable to the Member prior to optional
modification.
Notwithstanding the foregoing, the retirement allowance payable to
the Member and his or her surviving spouse shall not be less than
the retirement allowance that would have been payable if the Member
had elected Option 1 under Section 4.06(b)(iii).
(iii) Contingent Annuity Option - Any Member who retires from active
service under Section 4.01, 4.02, 4.03 or 4.04 may elect, in
accordance with the provisions of Section 4.06(d), to convert the
retirement allowance otherwise payable to him or her without
optional modification under Section 4.01, 4.02, 4.03 or 4.04, as the
case may be, into one of the following alternative options in order
to provide that after his or her death, a lifetime benefit shall be
payable to the person who, when the option became effective, was
designated by him or her to be his or her contingent annuitant. The
optional benefit elected shall be the Equivalent Actuarial Value of
the retirement allowance otherwise payable without optional
modification under Section 4.01, 4.02, 4.03 or 4.04.
Option 1 - A reduced retirement allowance payable during the
Member's life with the provisions that after his or her death a
benefit equal to 100% of his or her reduced
49
Page 45
retirement allowance shall be paid during the life of, and to, his
or her surviving contingent annuitant.
Option 2 - A reduced retirement allowance payable during the
Member's life with the provision that after his or her death a
benefit equal to 50% of his or her reduced retirement allowance
shall be paid during the life of, and to, his or her surviving
contingent annuitant.
(c) Required Notice - No less than 30 days and no more than 90 days before his
or her Annuity Starting Date, the Retirement Committee shall furnish to
each Member or former Member a written explanation in non-technical
language of the terms and conditions of the Automatic Joint and Survivor
Annuity and the Automatic Life Annuity as described in Section 4.06(a) and
the optional forms of benefits described in Section 4.06(b). Such
explanation shall include (i) a general description of the eligibility
conditions for, the material features of and the relative values of the
optional forms of payment under the Plan, (ii) any rights the Member or
former Member may have to defer commencement of his or her retirement
allowance or vested benefit, (iii) the requirement for Spousal Consent as
provided in Section 4.06(d) and (iv) the right of the Member or former
Member, prior to his or her Annuity Starting Date to make and to revoke
elections under Section 4.06.
(d) Election of Options - A Member may, subject to the provisions of this
Section 4.06(d), elect to receive his or her retirement allowance or
vested benefit in the optional form of payment described in Section
4.06(b)(i) or, in the case of a Member who retires under the provisions of
Section 4.01, 4.02, 4.03 or 4.04, one of the optional forms of payment
described in Section 4.06(b)(ii) or
50
Page 46
4.06(b)(iii), in lieu of the automatic forms of payment described in
Section 4.06(a). A married Member's or a married former Member's election
of a Life Annuity form of payment under Section 4.06(b)(i) or any optional
form of payment under Section 4.06(b)(ii) and Section 4.06(b)(iii), which
does not provide for monthly payments to his or her spouse for life after
the Member's or former Member's death, in an amount equal to at least 50%
but not more than 100% of the monthly amount payable under that form of
payment to the Member or former Member and which is not of Equivalent
Actuarial Value to the Automatic Joint and Survivor Annuity described in
Section 4.06(a)(i), shall be effective only with Spousal Consent; provided
such Spousal Consent to the election has been received by the Retirement
Committee.
Any election made under Section 4.06(a) or Section 4.06(b) shall be made
on a form approved by the Retirement Committee and may be made during the
90-day period ending on the Member's Annuity Starting Date, but not prior
to the date the Member or former Member receives the written explanation
described in Section 4.06(c). Any such election shall become effective on
the Member's or former Member's Annuity Starting Date, provided the
appropriate form is filed with and received by the Retirement Committee
and may not be modified or revoked after his or her Annuity Starting Date.
Any election made under Section 4.06(a) or Section 4.06(b) after having
been filed, may be revoked or changed by the Member or former Member only
by written notice received by the Retirement Committee before his or her
election becomes effective on his or her Annuity Starting Date. Any
subsequent elections and revocations may be made at any time and from time
to time during the 90-day period ending on the Member's or former Member's
Annuity Starting Date. A revocation shall be effective when the completed
notice is received by the Retirement Committee. A re-election shall be
effective on the Member's or former Member's
51
Page 47
Annuity Starting Date. If, however, the Member or the spouse or the
contingent annuitant designated in the election dies before the election
has become effective, the election shall thereby be revoked.
With respect to a Member who retires under the provisions of Section 4.03
or Section 4.04, the reduction on account of the Social Security Benefit
to made to the benefit, if any, payable in accordance with Section 4.06(a)
or Section 4.06(b) to his or her designated spouse or to his or her
contingent annuitant shall not be made until such time as the Member would
have, had he or she survived, upon proper application first been entitled
to receive said Social Security Benefit.
If a Member dies after his or her Annuity Starting Date, any payment
continuing on to his or her spouse or contingent annuitant shall be
distributed at least as rapidly as under the method of distribution being
used as of the Member's date of death.
4.07 Survivor's Benefit Applicable Before Retirement
The term "Beneficiary" for purposes of this Section 4.07 shall mean any
person or any trust established by the Member or the Member's estate,
named by the Member by written designation to receive benefits payable
under the automatic Pre-Retirement Survivor's Benefit and under the
optional Supplemental Pre-Retirement Survivor's Benefit; provided,
however, that, for any married Member the term "Beneficiary" shall
automatically mean the Member's spouse and any prior designation to the
contrary will be canceled, unless the Member, with Spousal Consent,
designates otherwise. An election of a non-spouse Beneficiary by a married
Member shall be effective only if accompanied by Spousal Consent and such
Spousal Consent has been received by the Retirement
52
Page 48
Committee. If the Member dies without an effective designation of
Beneficiary, the Member's Beneficiary for purposes of this Section 4.07
shall automatically be the Member's spouse, if any, or his or her estate.
If the Member elects the additional optional protection of the
Supplemental Pre-Retirement Survivor's Benefit, the Member's Beneficiary
thereunder shall be the same as the Beneficiary under the Automatic
Pre-Retirement Survivor's Benefit. The Retirement Committee shall resolve
any questions arising hereunder as to the meaning of "Beneficiary" on a
basis uniformly applicable to all Members similarly situated.
(a) Automatic Vested Spouse's Benefit
(i) Automatic Vested Spouse's Benefit applicable before termination of
employment - The surviving spouse of a Member who has completed 5
years of Eligibility Service but who has not yet completed 10 years
of Eligibility Service and attained age 55 shall automatically
receive a benefit payable under the Automatic Vested Spouse's
Benefit of this Section 4.07(a)(i) in the event said Member should
die after the effective date of coverage hereunder and before
termination of employment. The benefit payable to the Member's
spouse shall be equal to 50% of the benefit the Member would have
received if he or she had terminated his or her employment on his or
her date of death, survived to Normal Retirement Date, and on the
day before he or she would have reached Normal Retirement Date had
elected to begin receiving his or her vested benefit in the form of
the Automatic Joint and Survivor Annuity under Section
4.06(a)(i)(2), or with respect to a Member who had met the
eligibility requirements set forth in Section 4.04(a)(ii) and who
died in active employment prior to the 55th anniversary of his or
her birth, his or her early retirement allowance accrued to his or
her date of death in the form of the Automatic Joint
53
Page 49
and Survivor Annuity under Section 4.06(a)(i)(1). Such benefit shall
be payable for the life of the spouse commencing on what would have
been the Member's Normal Retirement Date. However, the Member's
spouse may elect, by written application filed with the Retirement
Committee, to have payments begin as of the first day of any
calendar month on or after the date the former Member would have
reached the 55th anniversary of his or her birth provided, however,
if the Member dies after having met the requirements set forth in
Section 4.04(a)(ii) for a special early retirement allowance, the
Member's spouse may elect to have payments begin under this
Automatic Vested Spouse's Benefit as of the first day of any month
following the Member's death.
If the Member's spouse elects to commence payment of the Automatic
Vested Spouse's Benefit prior to what would have been the Member's
Normal Retirement Date, the amount of such benefit payable to the
spouse shall be based on (i) the reduced vested benefit to which the
Member would have been entitled, had the Member elected to have
payments commence to himself on such earlier date in accordance with
the provisions of Section 4.05(b) or (ii) in the case of a Member
who dies after having met the requirements for a special early
retirement allowance as set forth Section 4.04(a)(ii), the reduced
early retirement allowance to which the Member would have been
entitled had he or she elected to have payments commence to himself
on such earlier date in accordance with the provisions of Section
4.04(b).
Coverage hereunder shall be applicable to a married Member in active
service who has satisfied the eligibility requirements for a vested
benefit under Section 4.05 and shall
54
Page 50
become effective on the date the Member marries and shall cease on
the earlier of (i) the date such active Member reaches the 55th
anniversary of his or her birth and completes 10 years of
Eligibility Service, (ii) the date such active Member reaches the
65th anniversary of his or her birth, (iii) the date such active
Member's marriage is legally dissolved by a divorce decree, or (iv)
the date such active Member's spouse dies. Coverage under Section
4.07(b)(i) shall commence on the date a Member in active service
reaches the earlier of (i) the 55th anniversary of his or her birth
or, if later, the date he or she completes 10 years of Eligibility
Service or (ii) the 65th anniversary of his or her birth.
(ii) Automatic Vested Spouse's Benefit applicable upon termination of
employment - In the case of a former Member who is married and
entitled to a vested benefit under Section 4.05, the provisions of
this Section 4.07(a)(ii) shall apply to the period between the date
his or her services are terminated or the date, if later, the former
Member is married and his or her Annuity Starting Date, or other
cessation of coverage as later specified in this Section
4.07(a)(ii).
In the event of a married former Member's death during any period in
which these provisions have not been waived or revoked by the former
Member and his or her spouse, the benefit payable to the former
Member's spouse shall be equal to 50% of the vested benefit the
former Member would have received on his or her Normal Retirement
Date if he or she had elected to receive such benefit in the form of
the Automatic Joint and Survivor Annuity under Section 4.06(a)(i).
55
Page 51
The spouse's benefit shall be payable for the life of the spouse
commencing on what would have been the former Member's Normal
Retirement Date. However, the former Member's spouse may elect, by
written application filed with the Retirement Committee, to have
payments begin as of the first day of any calendar month on or after
the date the former Member would have reached the 55th anniversary
of his or her birth. If the former Member's spouse elects to
commence payment of this Automatic Vested Spouse's Benefit prior to
what would have been the former Member's Normal Retirement Date, the
amount of such benefit payable to the spouse shall be based on the
reduced vested benefit to which the former Member would have been
entitled, had the former Member elected to have payments commence to
himself on such earlier date in accordance with the provisions of
Section 4.05(b).
The vested benefit payable to a former Member whose spouse is
covered under this Section 4.07(a)(ii) or, if applicable, the
benefit payable to his or her spouse upon his or her death shall be
reduced by the applicable percentages shown below. Such reduction
shall commence on and after the first of the month coincident with
or following the effective date of coverage hereunder and cease when
coverage ceases; provided, however, no reduction shall be made with
respect to any period before the later of (1) the date the
Retirement Committee furnishes the Member the notice of his or her
right to waive the Automatic Vested Spouse's Benefit or (2) the
commencement of the election period specified below.
56
Page 52
ANNUAL REDUCTION FOR SPOUSE'S COVERAGE
AFTER TERMINATION OF EMPLOYMENT
Age Reduction
--- ---------
Less than 40 1/10 of 1% per year
40 but prior to 50 2/10 of 1% per year
50 but prior to 55 3/10 of 1% per year
55 but prior to 60 5/10 of 1% per year
60 but less than 65 1% per year
The Retirement Committee shall furnish to each former Member a
written explanation which describes (1) the terms and conditions of
the Automatic Vested Spouse's Benefit, (2) the former Member's right
to make, and the effect of, an election to waive the Automatic
Vested Spouse's Benefit, (3) the rights of the former Member's
spouse, and (4) the right to make, and the effect of, a revocation
of such a waiver. Such written explanation shall be furnished to
each former Member before the first anniversary of the date he or
she terminated service and shall be furnished to such former Member
even though he or she is not married.
The period during which the former Member may make an election to
waive the Automatic Vested Spouse's Benefit provided under this
Section 4.07(a)(ii) shall begin not later than the date his or her
employment terminates and end on his or her Annuity Starting Date
or, if earlier, his or her date of death. Any waiver, revocation or
re-election of the Automatic Vested Spouse's Benefit shall be made
on a form provided by the Retirement Committee and any waiver or
revocation shall require Spousal Consent. If, upon termination of
employment, the former Member waives coverage hereunder in
accordance with administrative procedures established by the
Retirement Committee for all Members
57
Page 53
similarly situated, such waiver shall be effective as of the
Member's Severance Date. Any later re-election or revocation shall
be effective on the first day of the month coincident with or next
following the date the completed form is received by the Retirement
Committee. If a former Member dies during the period after a waiver
or revocation is in effect there shall be no benefits payable under
the provisions of this Section 4.07.
Except as described above in the event of a waiver or revocation,
coverage under this Section 4.07(a)(ii) shall cease to be effective
upon a former Member's Annuity Starting Date, or upon the date a
former Member's marriage is legally dissolved by a divorce decree,
or upon the death of the spouse, whichever event shall first occur.
(b) Automatic Pre-Retirement Survivor's Benefit
(i) Automatic Pre-Retirement Survivor's Benefit applicable before a
Member retires under the provisions of Section 4.01, Section 4.02,
Section 4.03 or Section 4.04 - The Beneficiary of a Member who has
reached the 65th anniversary of his or her birth or who has reached
the 55th anniversary of his or her birth and completed 10 years of
Eligibility Service, shall automatically receive a Pre-Retirement
Survivor's Benefit payable under the provisions of this Section
4.07(b)(i) in the event said Member should die before he or she
retires under the provisions of Section 4.01, 4.02, 4.03 or 4.04 or
reaches his or her Annuity Starting Date pursuant to the provisions
of Section 4.02(d), if earlier. The benefit payable during the life
of, and to, the Beneficiary shall be equal to one-half of the
Member's Accrued Benefit, without optional modification in
accordance with the provisions of Section 4.06, accrued to the date
of his or her death, adjusted to take into account the Member's
Social
58
Page 54
Security Benefit. The Social Security Benefit shall be determined on
the assumption that the Member had no earnings after his or her date
of death and, if his or her death occurs prior to the time the
Member is or would upon proper application first be entitled to
receive such Social Security Benefit, such adjustment shall
nevertheless be made at the Member's date of death. If the
Beneficiary is more than 5 years younger than the Member, the
benefit payable to the Beneficiary shall be reduced by one-half of
1% for each full year the Beneficiary is more than 5 years younger.
Coverage hereunder shall be effective on the first day of the
calendar month coincident with or next following the date the Member
reaches his or her 55th birthday and completes 10 years of
Eligibility Service or, if earlier, his or her Normal Retirement
Date. In the case of a married Member coverage under Section
4.07(a)(i) shall cease on the date coverage under this Section
4.07(b)(i) is effective as set forth in the preceding sentence.
(ii) Automatic Pre-Retirement Survivor's Benefit applicable between Early
Retirement Date or Special Early Retirement Date and the Member's
Annuity Starting Date - In the case of a Member retired early under
Section 4.03 or Section 4.04 of the Plan with the payment of the
early retirement allowance deferred to commence at a date later than
his or her Early Retirement Date or Special Early Retirement Date,
whichever is applicable, the provisions of this Section 4.07(b)(ii)
shall apply to the period between his or her Early Retirement Date
or Special Early Retirement Date and his or her Annuity Starting
Date. The Member shall, at his or her Early Retirement Date or
Special Early Retirement Date, complete such forms as are required
under this Section 4.07(b)(ii) and coverage hereunder shall be
effective as of his or her Early Retirement Date or Special Early
Retirement Date.
59
Page 55
In the event of the Member's death during the period in which these
provisions are in effect, the benefit payable during the life of,
and to, the Beneficiary shall be equal to one-half of the Member's
Accrued Benefit, without optional modification in accordance with
the provisions of Section 4.06, accrued to the date of his or her
Early Retirement Date or Special Early Retirement Date, whichever is
applicable, adjusted to take into account the Member's Social
Security Benefit. If the Member's death occurs prior to the time the
Member is or would upon proper application first be entitled to
receive such Social Security Benefit, such adjustment shall
nevertheless be made at the Member's date of death. If the
Beneficiary is more than 5 years younger than the Member, the
benefit payable to the Beneficiary shall be reduced by one-half of
1% for each full year the Beneficiary is more than 5 years younger.
The Automatic Pre-Retirement Survivor's Benefit shall be payable for the
life of the Beneficiary commencing on what would have been the Member's
Normal Retirement Date or date of death, if later. However, if a Member
dies prior to his or her Normal Retirement Date, the Beneficiary of the
Member may elect, by written application filed with the Retirement
Committee, to have such payments begin as of the first day of any calendar
month following the Member's date of death and prior to what would have
been the Member's Normal Retirement Date. If the Beneficiary elects to
commence payment of the Automatic Pre-Retirement Survivor's Benefit prior
to what would have been the Member's Normal Retirement Date the amount of
such benefit shall be determined in accordance with Sections 4.07(b)(i)
and (ii) above, as applicable, and without reduction for such early
commencement.
60
Page 56
Notwithstanding the foregoing, in the event the Member's Beneficiary is
someone other than his or her spouse, payment of the automatic
Pre-Retirement Survivor's Benefit shall commence within one year of the
Member's date of death and in the event such commencement date is prior to
the 55th anniversary of the Member's birth, the benefit payable to the
Beneficiary shall be of Equivalent Actuarial Value to the benefit
otherwise payable hereunder to the Beneficiary on the date the Member
would have attained age 55.
(c) Optional Supplemental Pre-Retirement Survivor's Benefit
(i) Optional Supplemental Pre-Retirement Survivor's Benefit applicable
before a Member retires under the provisions of Section 4.01,
Section 4.02, Section 4.03 or Section 4.04 - A Member, who has
reached the 65th anniversary of his or her birth or who has reached
the 55th anniversary of his or her birth and completed 10 years of
Eligibility Service, may elect to receive a reduced retirement
allowance upon his or her retirement in order to provide that, if he
or she should die after his or her election becomes effective but
before he or she retires under the provisions of Section 4.01,
Section 4.02, 4.03 or 4.04 or reaches his or her Annuity Starting
Date pursuant to the provisions of Section 4.02(d), a benefit shall
be paid to the Beneficiary designated by him or her in accordance
with the following terms and conditions.
The Member may elect to reduce the retirement allowance to which he
or she would otherwise be entitled at retirement under Section 4.01,
4.02, 4.03 or 4.04 by one-half of 1% per year for each year between
the date on which the election becomes effective and
61
Page 57
the earliest of the Member's Early Retirement Date, Special Early
Retirement Date, Annuity Starting Date, or the date the election is
revoked as provided in Section 4.07(i).
If the Member makes such an election and dies before he or she
retires under the provisions of Section 4.01, 4.02, 4.03 or 4.04,
the benefit payable during the life of, and to, the Beneficiary
shall be equal to 25% of the Member's Accrued Benefit without
optional modification in accordance with the provisions of Section
4.06, accrued to the date of his or her death adjusted (1) to take
into account the Member's Social Security Benefit and (2) as
provided below. The Social Security Benefit shall be determined on
the assumption that the Member had no earnings after his or her date
of death and, if his or her death occurs prior to the time the
Member is or would upon proper application first be entitled to
receive such Social Security Benefit, such adjustment shall
nevertheless be made at the Member's date of death. The benefit
payable to the Beneficiary shall be reduced by one-half of 1% per
year for each year between the date on which the election became
effective and the date of the Member's death. If the Beneficiary is
more than 5 years younger than the Member, the benefit payable to
the Beneficiary shall be further reduced by one-half of 1% for each
full year the Beneficiary is more than 5 years younger.
If the Member makes an election under this Section 4.07(c)(i) at or
prior to the time he or she is first eligible to do so, it shall
become effective on the first day of the calendar month coincident
with or next following the date the Member reaches his or her 55th
birthday and completes 10 years of Eligibility Service or, if
earlier, his or her Normal Retirement Date. A Member will be deemed
to have waived coverage under this Section 4.07(c)(i) if he or
62
Page 58
she does not file the appropriate forms with the Retirement
Committee when first eligible to do so. If the Member does not make
such election until after he or she is first eligible to do so, it
shall become effective one year after the first day of the calendar
month coincident with or next following (1) the date the notice is
received by the Retirement Committee or (2) the date specified in
such notice, if later.
(ii) Optional Supplemental Pre-Retirement Survivor's Benefit applicable
between Early Retirement Date or Special Early Retirement Date and
the Member's Annuity Starting Date - In the case of a Member retired
early under the provisions of Section 4.03 or Section 4.04 of the
Plan with the payment of the early retirement allowance deferred to
commence at a date later than his or her Early Retirement Date or
Special Early Retirement Date, the provisions of this Section
4.07(c)(ii) shall apply to the period between his or her Early
Retirement Date or Special Early Retirement Date and his or her
Annuity Starting Date.
The Member may elect to reduce the early retirement allowance to
which he or she would otherwise be entitled under Section 4.03 or
Section 4.04 by one-half of 1% per year for each year between his or
her Early Retirement Date or Special Early Retirement Date and the
earlier of the date the election is revoked pursuant to Section
4.07(i) or his or her Annuity Starting Date.
If the Member makes such an election and dies during the period the
election is in effect, the benefit payable during the life of, and
to, his or her Beneficiary shall be equal to 25% of the Member's
Accrued Benefit, without optional modification in accordance with
the
63
Page 59
provisions of Section 4.06, accrued to his or her Early Retirement
Date or Special Early Retirement Date, adjusted (1) to take into
account the Member's Social Security Benefit and (2) as provided
below. If the Member's death occurs prior to the time the Member is
or would upon proper application first be entitled to receive such
Social Security Benefit, such adjustment shall nevertheless be made
at the Member's date of death. The benefit payable to the
Beneficiary shall be reduced by one-half of 1% per year for each
year between the date on which the election became effective and the
date of the Member's death. If the Beneficiary is more than 5 years
younger than the Member, the benefit payable to the Beneficiary
shall be further reduced by one-half of 1% for each full year the
Beneficiary is more than 5 years younger.
The Member shall, at his or her Early Retirement Date or Special
Early Retirement Date, complete such forms as are required under
this Section 4.07(c)(ii) and, if he or she so elects, coverage
hereunder shall be effective as of his or her Early Retirement Date
or Special Early Retirement Date. A Member will be deemed to have
waived coverage under this Section 4.07(c)(ii) if he or she does not
file the appropriate forms with the Retirement Committee at his or
her Early Retirement Date or Special Early Retirement Date. If the
Member subsequently makes an election hereunder, it shall become
effective one year after the first day of the calendar month
coincident with or next following (1) the date the notice is
received by the Retirement Committee or (2) the date specified in
such notice, if later.
The optional Supplemental Pre-Retirement Survivor's Benefit shall be
payable for the life of the Beneficiary commencing on what would have been
the Member's Normal Retirement Date or date
64
Page 60
of death, if later. However, if a Member dies prior to his or her Normal
Retirement Date, the Beneficiary may elect, by written application filed
with the Retirement Committee, to have such payments begin as of the first
day of any calendar month coincident with or next following the Member's
date of death and prior to what would have been the Member's Normal
Retirement Date. If the Beneficiary elects to commence payment of the
optional Supplemental Pre-Retirement Survivor's Benefit prior to what
would have been the Member's Normal Retirement Date and after what would
have been the 55th anniversary of the Member's birth, the amount of such
benefit shall be determined in accordance with Section 4.07(c)(i) and (ii)
above, as applicable and without reduction for such early commencement. If
the Beneficiary elects to commence payment of the optional Supplemental
Pre-Retirement Survivor's Benefit prior to what would have been the 55th
anniversary of the Member's birth, the benefit payable to the Beneficiary
shall be of Equivalent Actuarial Value to the benefit otherwise payable to
Beneficiary on the date the Member would have attained age 55.
Notwithstanding any foregoing provision to the contrary, payment of the
optional Supplemental Pre-Retirement Survivor Benefit must commence as of
the same date payment of the Automatic Pre-Retirement Survivor Benefit
commences.
Notwithstanding the foregoing, in the event the Member's Beneficiary is
someone other than his or her spouse, payment of the optional Supplemental
Pre-Retirement Survivor's Benefit shall commence within one year of the
Member's date of death and in the event such commencement date is prior to
the 55th anniversary of the Member's birth, the benefit payment to the
Beneficiary shall be of Equivalent Actuarial Value to the benefit
otherwise payable hereunder to the Beneficiary on the date the Member
would have attained age 55.
65
Page 61
(d) Notwithstanding any provision of Section 4.07(b) or Section 4.07(c) to the
contrary, in no event shall the sum of the Automatic Pre-Retirement
Survivor's Benefit payable under the provisions of Section 4.07(b) and the
optional Supplemental Pre-Retirement Survivor's Benefit payable under the
provisions of Section 4.07(c) to a Beneficiary be less than the amount of
benefit the spouse would have received if the retirement allowance to
which the Member was entitled at his or her date of death (i) had
commenced on the date the spouse elects to have such Pre-Retirement
Survivor's Benefit payments commence, (ii) in the form of an Automatic
Joint and Survivor Annuity under Section 4.06(a)(i), and (iii) the Member
had died immediately thereafter. However, in lieu of the Automatic Joint
and Survivor Annuity referred to in the preceding sentence, the 80/80
Spouse's Annuity Option described in Section 4.06(b)(ii) shall be used to
compute the amount payable to the spouse if, within the 90 day period
prior to his or her Annuity Starting Date, the Member had elected such
optional form of payment.
(e) Benefits payable to an estate or trust - If a Member's Beneficiary under
this Section 4.07 is his or her estate or a trust, the benefits otherwise
payable under Section 4.07(b), and, if elected, under Section 4.07(c)
shall be commuted into a single lump sum amount, which amount shall be
determined by multiplying the benefits otherwise payable by the
appropriate factor in Tables 4 or 5 of Appendix A and calculated by
assuming the Beneficiary had been a person of the same age as the Member
at the Member's date of death. In no event shall the amount of the lump
sum be less than the amount required by applicable law. The payment of
such single lump sum amount shall represent the full and total payment of
all benefits due under the Plan. The Retirement Committee shall resolve
any questions arising hereunder on a basis uniformly applicable to all
Members similarly situated.
66
Page 62
(f) If the Member's Beneficiary dies during the period coverage is effective
under Sections 4.07(b) and Section 4.07(c), the Beneficiary designation
shall thereby be canceled. However, coverage under Section 4.07(b) and, if
elected, under Section 4.07(c) shall nevertheless continue in full effect.
The Member's Beneficiary thereafter shall be in accordance with his or her
subsequent designation of a new Beneficiary or in accordance with the term
"Beneficiary" as defined herein.
If the Member's Beneficiary is his or her spouse and if the Member's
marriage to said spouse is legally dissolved by a divorce decree, the
Beneficiary designation under Sections 4.07(b) and 4.07(c) shall remain in
effect until a subsequent Beneficiary designation is submitted by the
Member to the Retirement Committee or until the Member remarries. Coverage
under Section 4.07(b) and, if elected, under Section 4.07(c) shall
continue in full effect.
A Member may change his or her Beneficiary designation at any time after
receiving the written explanation described in Section 4.07(g), subject to
Spousal Consent. Any such change shall become effective on the first day
of the calendar month coincident with or next following the (i) date the
notice of change is received by the Retirement Committee or (ii) the date
specified in such notice, if later, and the original designation shall
remain in effect until such date.
(g) The Retirement Committee shall furnish to each Member a written
explanation in non-technical language which describes (i) the terms and
conditions of the Automatic Pre-Retirement Survivor's Benefit and the
Optional Supplemental Pre-Retirement Survivor's Benefit, (ii) the Member's
right to make an election to designate a Beneficiary other than his or her
spouse and the effect of such
67
Page 63
election, (iii) the right to revoke, prior to the Annuity Starting Date,
such designation and the effect of such revocation, and (iv) the rights of
the Member's spouse, if any. The Retirement Committee shall furnish this
written explanation to each Member during the period beginning one year
prior to the earlier of (i) the date the Member retires pursuant to the
provision of Section 4.04(a)(ii), (ii) the date the Member reaches the
55th anniversary of his or her birth and completes 10 years of Eligibility
Service, or (iii) in the Member's Normal Retirement Date, and ending
within one year after such date.
(h) A Member may revoke an election made under Section 4.07(c) at any time
prior to his or her Annuity Starting Date. There shall be no further
reduction to the Member's retirement allowance for any period during which
an election under Section 4.07(c) is not in effect. The Member may make a
new election at any time thereafter and any subsequent election shall
become effective one year after the first day of the calendar month
coincident with or next following the (i) date the notice is received by
the Retirement Committee or (ii) the date specified in such notice, if
later.
If the Member dies prior to the time an election under Section 4.07(c)
becomes effective, the election shall thereby be canceled.
Any designation of a Beneficiary and any election made under Section 4.07
(including any waiver or revocation of either of them) shall be made on a
form approved by and filed with the Retirement Committee and in accordance
with the term "Beneficiary" as defined in this Section 4.07.
68
Page 64
4.08 Maximum benefits
(a) The maximum annual postponed, normal, standard early or special early
retirement allowance, death in service benefit, or vested benefit payable
under the Plan in the form of a life annuity when added to any pension
attributable to contributions of the Company or an Associated Company
provided to the Member under any other qualified defined benefit Plan
payable in the form of a life annuity (collectively referred to in this
Section as "retirement allowance"), shall be equal to the lesser of:
(i) $90,000 adjusted in accordance with regulations issued under Section
415 of the Internal Revenue Code by the Secretary of the Treasury or
his or her delegate; provided, however, that each year in which such
an adjustment is made, it shall not become effective prior to
January 1 of such year, or
(ii) the Member's average annual remuneration during the three
consecutive years of service with Company or Associated Company
affording the highest such average or during all of the years of
such service if less than three years;
provided that, if a Member's total years of membership in the Plan and the
Prior Salaried Plan are less than 10 years, the maximum annual retirement
allowance in subparagraph (i) above shall be multiplied by the ratio which
the Member's total years of membership bears to 10. If the Member has less
than 10 years of service with the Company or any Associated Company, the
maximum annual retirement allowance provided in subparagraph (ii) shall be
multiplied by the ratio which the Member's total years of service with the
Company or any Associated Company bears to 10.
If the Member's retirement allowance is payable in the form of joint and
survivor annuity which constitutes a qualified joint and survivor annuity
as defined in Section 417 of the Code, the
69
Page 65
modification of the retirement allowance for that form of payment shall be
made before the application of the maximum limitation, and, as so
modified, shall be subject to such limitation. Effective as of September
1, 1995, if the Member's retirement allowance is payable in a form that is
neither a life annuity for the life of the Member nor in the form of a
qualified joint and survivor annuity as defined in Section 417 of the
Code, the maximum retirement allowance payable in clause (i) or clause
(ii) above shall be of Equivalent Actuarial Value to the maximum benefit
payable as a life annuity, such Equivalent Actuarial Value to be
calculated using the Plan's factors for computing optional benefits, or if
less, using factors calculated from the IRS Mortality Table, if
applicable, and either the IRS Interest Rate if the benefit is subject to
the provisions of Section 417(e)(3) of the Code or 5 percent otherwise.
(b) If the retirement allowance begins before the Member's Social Security
Retirement Age but on or after his or her 62nd birthday, the maximum
retirement allowance in subparagraph (i) of paragraph (a) shall be reduced
by 5/9 of one percent for each of the first 36 months plus 5/12 of one
percent for each additional month by which the Member is younger than the
Social Security Retirement Age at the date his or her retirement allowance
begins. If the retirement allowance begins before the Member's 62nd
birthday, the maximum retirement allowance in subparagraph (i) of
paragraph (a) shall be of Equivalent Actuarial Value to the maximum
benefit payable to age 62 as determined in accordance with the preceding
sentence.
If the retirement allowance begins after the Member's Social Security
Retirement Age, the maximum retirement allowance in subparagraph (i) of
paragraph (a) shall be of Equivalent Actuarial Value to that maximum
benefit payable at the Social Security Retirement Age. Effective
70
Page 66
September 1, 1995, for purposes of this paragraph (b), Equivalent
Actuarial Value shall be determined on the basis of the factors in Table 7
as in effect on that date.
As of January 1 of each calendar year commencing on or after January 1,
1988, the dollar limitation as determined by the Commissioner of Internal
Revenue for that calendar year shall become effective as the maximum
permissible dollar amount of retirement allowance payable under the Plan
during the calendar year, including any retirement allowance payable to
Members who retired prior to that calendar year, in lieu of the dollar
amount in sub-paragraph (i) of paragraph (a).
(c) In the case of a Member who is participating in the Rayonier Inc.
Investment and Savings Plan for Salaried Employees or any other defined
contribution plan or plans of the Company or Associated Company, the
maximum benefit limitation shall not exceed the adjusted limitation
computed as follows:
(i) Determine the "defined contribution fraction" as set forth in
sub-paragraph (i) of the following paragraph (d).
(ii) Subtract the result of (i) from one (1.0) with the result not to be
less than zero.
(iii) Multiply the dollar amount in Section 4.08(a)(i) by 1.25.
(iv) Multiply the amount described in Section 4.08(a)(ii) by 1.4.
(v) Multiply the lesser of the result of (iii) or the result of (iv) by
the result of (ii) to determine the adjusted maximum benefit
limitation applicable to the Member.
71
Page 67
(d) For purposes of this Section 4.08(d)
(i) The "defined contribution fraction" for a Member who is
participating in the Rayonier Inc. Investment and Savings Plan for
Salaried Employees or any other defined contribution plan or plans
of the Company or an Associated Company shall be a fraction, the
numerator of which is the sum of the following:
(1) the Company's and Associated Company's contributions credited
to the Member's accounts under all defined contribution plans
(whether or not terminated) ever maintained by the Company or
an Associated Company, including the amount of any
contribution made on a Member's behalf on a salary reduction
basis under any such plan qualified under Section 401(k) of
the Internal Revenue Code,
(2) any forfeitures allocated to his or her accounts under such
plan or plans, but reduced by any amount permitted by
regulations promulgated by the Commissioner of Internal
Revenue; and the denominator of which is the lesser of the
following amounts determined for each year of the Member's
Eligibility Service:
(3) 1.25 multiplied by the maximum dollar amount allowed by law
for that year; or
(4) 1.4 multiplied by 25% of the Member's remuneration for that
year.
(ii) a "defined contribution plan" means a qualified pension plan which
provides for an individual account for each participant and for
benefits based solely upon the amount contributed to the
participant's account, and any income, expenses, gains and losses,
and any forfeitures of accounts of other participants which may be
allocated to that participant's accounts, subject to (iii) below;
72
Page 68
(iii) a "defined benefit plan" means any qualified pension plan which is
not a defined contribution plan; however in the case of a defined
benefit plan which provides a benefit which is based partly on the
balance of the separate account of a participant, that plan shall be
treated as a defined contribution plan to the extent benefits are
based on the separate account of a participant and as a defined
benefit plan with respect to the remaining portion of the benefits
under the plan; and
(iv) the term "remuneration" for purposes of this Section 4.08 with
respect to any Member shall mean the wages, salaries and other
amounts paid to such Member by the Company for personal services
actually rendered, determined after any pre-tax contributions under
a "qualified cash" or deferred arrangement (as defined under Section
401(k) of the Code and applicable regulations) or under a "cafeteria
plan (as defined under Section 125 of the Code and its applicable
regulations), and shall include, without being limited to, bonuses,
overtime payments and commissions; and shall exclude deferred
compensation, stock options and other distributions which receive
special tax benefits under the Code.
4.09 No duplication
Except as hereinafter provided, there shall be deducted from any
retirement allowance or vested benefit payable under this Plan the part of
any pension or comparable benefit, including any lump sum payment,
provided by employer contributions which Rayonier Inc., any Participating
Unit, (including any former Participating Unit divested by Rayonier Inc.),
any Associated Company or any affiliate of the Company is obligated to pay
or has paid to or under any defined benefit plan or other agreement which
provides for benefits comparable to those benefits paid under a defined
benefit plan (except for any pension plan or other agreement which
provides for the payment of
73
Page 69
that portion of any benefits accrued under the Plan but not payable from
the Plan on account of Section 1.02 or Section 4.08) with respect to any
service rendered on or after March 1, 1994 which is Benefit Service for
purposes of computation of benefits under this Plan.
4.10 Payment of benefits
(a) Unless otherwise provided under an optional benefit elected pursuant to
Section 4.06, the survivor's benefits available under Section 4.07, or the
provisions of Section 4.10(e)(ii), all retirement allowances, vested
benefits or other benefits payable under the Plan will be paid in monthly
installments as of the end of each month beginning with (i) the month in
which a Member has reached his or her Normal Retirement Date and has
retired from active service, (ii) the month in which a Member has reached
his or her Postponed Retirement Date and has retired from active service,
(iii) the month in which a Member, upon proper application, has requested
commencement of his or her vested benefit or early retirement allowance,
or (iv) the month in which benefits under an optional benefit under
Section 4.06 or the survivor's benefits under Section 4.07 become payable,
whichever is applicable. Such monthly installments shall cease with the
payment for the month in which the recipient dies. In no event shall a
retirement allowance or vested benefit be payable to a Member who
continues in or resumes active service with the Company or an Associated
Company for any period between his or her Normal Retirement Date and
Postponed Retirement Date, except as provided in Sections 4.02(d), and
4.10(e).
(b) In any case, a lump sum payment equal to the vested benefit payable under
Section 4.05 or the vested spouse's benefit payable under Section 4.07(a)
multiplied by the appropriate factor contained in Table 4, 5 or 6 of
Appendix A shall be made in lieu of any vested benefit payable to a
74
Page 70
former Member or any vested spouse's benefit payable to a spouse of a
Member or a former Member, if the lump sum present value of such benefit
amounts to $3,500 ($5,000 effective January 1, 1998) or less. In no event,
however, with respect to any Member who terminates employment prior to
September 1, 1995, shall that adjustment factor produce a lump sum that is
less than the amount determined by using the interest rate assumption used
by the Pension Benefit Guaranty Corporation for valuing benefits for
determining lump sum payments under single employer plans that terminate
on January 1 of the Plan Year in which the Annuity Starting Date occurs.
With respect to any Member who terminates employment on or after September
1, 1995, the lump sum present value shall be based on the IRS Mortality
Table and the IRS Interest Rate. The lump sum payment may be made at any
time on or after the date the Member has terminated employment or died,
but in any event prior to the date his or her benefit payment would have
otherwise commenced.
In the event a Member is not entitled to any retirement allowance or
vested benefit upon his or her termination of employment, he or she shall
be deemed "cashed-out" under the provisions of this paragraph (b) as of
the date he or she terminated service.
(c) In the event that the Retirement Committee shall find that a person to
whom benefits are payable is unable to care for his or her affairs because
of illness or accident or is a minor or has died, then, unless claim shall
have been made therefor by a legal representative, duly appointed by a
court of competent jurisdiction, the Retirement Committee may direct that
any benefit payment due him or her be paid to his or her spouse, a child,
a parent or other blood relative, or to a person with whom
75
Page 71
he or she resides, and any such payment made shall be a complete discharge
of the liabilities of the Plan therefor.
(d) Before any benefit shall be payable to a Member, a former Member, or other
person who is or may become entitled to a benefit hereunder, such Member,
former Member, or other person shall file with the Retirement Committee
such information as it shall require to establish his or her rights and
benefits under the Plan.
(e) (i) Except as otherwise provided in this Article 4, payment of a
Member's retirement allowance or a former Member's vested benefit
shall begin as soon as administratively practicable following the
latest of (1) the Member's Normal Retirement Age or (2) the date he
or she terminates service with the Company and all Associated
Companies (but not more than 60 days after the close of the Plan
Year in which the latest of (1) or (2) occurs).
(ii) Notwithstanding anything contained in the Plan to the contrary, in
the case of a Member who owns either (1) more than five percent of
the outstanding stock of the Company or (2) stock possessing more
than five percent of the total combined voting power of all stock of
the Company, the Member's retirement allowance shall begin not later
than the April 1 following the calendar year in which he or she
attains age 70-1/2.
Payment of any other Member's retirement allowance or vested benefit
shall begin not later than April 1 of the calendar year following
the calendar year in which the Member attains age 70-1/2, provided
that such commencement of benefit payments while in active service
76
Page 72
shall not be required with respect to a Member who attains age
70-1/2 prior to January 1, 1988 and who is not a five percent owner
as described above.
(f) Notwithstanding any other provision of this Article 4, all distributions
from this Plan shall conform to the regulations issued under Section
401(a)(9) of the Code, including the incidental death benefit provisions
of Section 401(a)(9)(G) of the Code. Further, such regulations shall
override any plan provision that is inconsistent with Section 401(a)(9) of
the Code.
4.11 Reemployment of former Member or retired Member
(a) Cessation of benefit payments. If a former Member or a retired Member
entitled to or in receipt of a vested benefit or retirement allowance is
reemployed by the Company or by an Associated Company as an Employee or as
other than an Employee, but not as a Non-Benefits Worker, any benefit
payments he or she is receiving shall cease, except as otherwise provided
in Section 4.02(c) and Section 4.10(e). If a former Member or a retired
Member returns to the Company or an Associated Company as a Non-Benefits
Worker, benefit payments shall continue and paragraphs (b) and (c) shall
not apply.
(b) Optional forms of pension benefits
(i) If the Member is reemployed in a capacity other than as a
Non-Benefits Worker any previous election of an optional benefit
under Section 4.06 or a survivor's benefit under Section 4.07 shall
be revoked and the terms and conditions of subparagraph (ii) of this
paragraph (b) shall apply.
77
Page 73
(ii) Any Member who is at least age 55 with 10 or more years of
Eligibility Service when he or she is reemployed in a capacity other
than as a Non-Benefits Worker shall, with respect to the vested
benefit or retirement allowance earned prior to his or her
reemployment and with respect to any additional benefits earned
during reemployment, be covered by the provisions of Section 4.07(b)
-- Pre-Retirement Survivor's Benefit and be eligible to elect
coverage under Section 4.07(c) Supplemental Pre-Retirement
Survivor's Benefit. Coverage under Section 4.07(b) shall be
effective on the first day of the calendar month coincident with or
next following the date of his or her reemployment and any previous
election shall remain in effect until such date. If, within 30 days
after reemployment, the Member elects coverage under Section
4.07(c), such coverage shall be effective as of the first day of the
calendar month coincident with or next following the date of his or
her reemployment. If the Member does not make an election under
Section 4.07(c) within 30 days after his or her reemployment or he
or she waives such coverage, any later election shall become
effective one year after the first day of the calendar month
coincident with or next following the date notice is received by the
Retirement Committee or on the date specified in such notice, if
later.
Any Member or former Member with 5 or more years of Eligibility
Service who is less than age 55 when he or she is reemployed shall
be covered by the provisions of Sections 4.07(a)(i) -- Automatic
Vested Spouse's Benefit until he or she attains age 55 and such
coverage shall be effective on the first day of the calendar month
coincident with or next following the date of his or her
reemployment and any previous election shall remain in effect until
such date. Such former Member and any other Member or former Member
78
Page 74
shall be covered by the provisions of Section 4.07(b) --
Pre-Retirement Survivor's Benefit and shall be eligible to elect
coverage under Section 4.07(c) Supplemental Pre-Retirement
Survivor's Benefit upon the later of the date he or she attains age
55, the date he or she completes 10 years of Eligibility Service, or
his or her Normal Retirement Date, and such coverage shall be in
accordance with the provisions of such Sections and shall apply with
respect to his or her retirement allowance or vested benefit earned
prior to his or her reemployment, as well as any additional benefits
earned during reemployment.
(c) Benefit payments at subsequent termination or retirement
(i) In accordance with the procedure established by the Retirement
Committee on a basis uniformly applicable to all Members similarly
situated, upon the subsequent retirement of a Member in service
after his or her Normal Retirement Date, payment of such Member's
retirement allowance shall resume no later than the third month
after the final month during the reemployment period in which he or
she is credited with at least eight days of service.
(ii) Upon the subsequent retirement or termination of employment of a
retired or former Member, the Retirement Committee shall, in
accordance with rules uniformly applicable to all Members similarly
situated, determine the amount of vested benefit or retirement
allowance which shall be payable to such Member at such subsequent
retirement or termination. Such vested benefit or retirement
allowance shall not be less than the sum of (1) the original amount
of vested benefit or retirement allowance previously earned by such
Member in accordance with the terms of the Plan in effect during
such previous employment adjusted to reflect the election of any
survivor's benefits pursuant to
79
Page 75
Section 4.07(a)(ii) or 4.07(c) and reduced by an amount of
Equivalent Actuarial Value to the benefits, if any, he or she
received before the earlier of the date of his or her restoration to
service or his or her Normal Retirement Date and (2) any additional
vested benefit or retirement allowance earned during his or her
period of reemployment, such amounts to be adjusted to reflect the
election during reemployment of any survivor's benefits pursuant to
Section 4.07(a)(ii) or 4.07(c). Notwithstanding anything to the
contrary contained in this Plan, with respect to an Employee who has
incurred a break in service, the vested benefit or retirement
allowance for Benefit Service credited prior to the date of
reemployment shall not be re-calculated or increased unless the
period of the Member's break in service is less than the greater of
(1) five years or (2) the service rendered prior to such break and
until the Member, regardless of his or her vested status, has
completed at least twelve months of Eligibility Service following
his or her reemployment and, in such event, the re-calculated vested
benefit or retirement allowance, prior to any optional modification
in accordance with the provisions of Section 4.06, shall be reduced
by an amount determined by dividing the sum of any payments
previously received by the former Member or retired Member before
the earlier of his or her restoration to service or his or her
Normal Retirement Date by the appropriate factor contained in Table
5 of Appendix A; provided that no such reduction shall reduce such
retirement allowance or vested benefit below the amount determined
pursuant to clause (1) of the preceding sentence.
(d) Questions relating to reemployment of former Members or retired Members.
If, at subsequent termination of employment or retirement, any question
shall arise under this Section 4.11 as to the calculation or
re-calculation of a reemployed former Member's or retired Member's vested
benefit
80
Page 76
or retirement allowance or election of an optional form of benefit under
the Plan, such question shall be resolved by the Retirement Committee on a
basis uniformly applicable to all Members similarly situated.
4.12 Top-heavy provisions
(a) The following definitions apply to the terms used in this Section:
(i) "applicable determination date" means the last day of the preceding
Plan Year;
(ii) "top-heavy ratio" means the ratio of (A) the present value of the
cumulative Accrued Benefits under the Plan for key employees to (B)
the present value of the cumulative Accrued Benefits under the Plan
for all key employees and non-key employees; provided, however, that
if a key employee has not performed services for the Company at any
time during the 5-year period ending on the applicable determination
date, any Accrued Benefit for such individual (and any account
balances of such individual) shall not be taken into account;
(iii) "applicable valuation date" means the date within the preceding Plan
Year as of which annual Plan costs are or would be computed for
minimum funding purposes;
(iv) "key employee" means an Employee determined to be a "key employee"
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 (defined as set forth in
Section 4.08(d)(iv) of the Plan except that any pre-tax
contributions under a "qualified cash or deferred arrangement as
defined in Section 401(k) of the Code and its applicable
regulations, or under a "cafeteria plan" as defined in Section 125
of the Code
81
Page 77
and its applicable regulations shall be included) from the Company
or an Associated Company;
(v) "non-key employee" means any employee who is not a key employee;
(vi) "average remuneration" means the average annual remuneration of a
Member for the five consecutive years of his or her Eligibility
Service during which he or she received the greatest aggregate
remuneration from the Company or Associated Company, excluding any
remuneration for service after the last Plan Year with respect to
which the Plan is top-heavy;
(vii) "required aggregation group" means each other qualified plan of the
Company or an Associated Company (including plans that terminated
within the five-year period ending on the determination date) in
which there are members who are key employees or which enables the
Plan to meet the requirements of Section 401(a)(4) or 410 of the
Code; and
(viii)"permissive aggregation group" means each plan in the required
aggregation group and any other qualified plan(s) of the Company or
an Associated Company in which all members are non-key employees, if
the resulting aggregation group continues to meet the requirements
of Sections 401(a)(4) and 410 of the Code.
(b) For purposes of this Section 4.12, the Plan shall be "top-heavy" with
respect to any Plan Year if, as of the applicable determination date, the
top-heavy ratio exceeds 60 percent. The top-heavy ratio shall be
determined as of the applicable valuation date in accordance with Section
416(g)(3) and (4)(B) of the Code on the basis of the same mortality and
interest rate assumptions used to value the Plan. For purposes of
determining whether the Plan is top-heavy, the present value of Accrued
Benefits under the Plan will be combined with the present value of accrued
benefits or
82
Page 78
account balances under each other plan in the required aggregation group,
and, in the Company's discretion, may be combined with the present value
of accrued benefits or account balances under any other qualified plan(s)
in the permissive aggregation group. The Accrued Benefit of a non-key
employee under the Plan or any other defined benefit plan in the
aggregation group shall be (i) determined under the method, if any, that
uniformly applies for accrual purposes under all plans maintained by the
Company or an Associated Company or (ii) if there is no such method, as if
such benefit accrued not more rapidly than the slowest accrual rate
permitted under the fractional rule described in Section 411(b)(i)(C) of
the Code.
(c) The following provisions shall be applicable to Members for any Plan Year
with respect to which the Plan is top-heavy:
(i) In lieu of the vesting requirements specified in Section 4.05, the
following vesting schedule shall apply:
Years of Eligibility Service Percentage Vested
---------------------------- -----------------
Less than 2 years 0%
2 years 20
3 years 40
4 years 60
5 or more years 100
(ii) The Accrued Benefit of a Member who is a non-key employee shall not
be less than two percent of his or her "average remuneration"
multiplied by the number of years of his or her Eligibility Service,
not in excess of 10, during the Plan Years for which the Plan is
top-heavy. Such minimum benefit shall be payable at a Member's
Normal Retirement Date. If
83
Page 79
payments commence at a time other than the Member's Normal
Retirement Date, the minimum Accrued Benefit shall be of Equivalent
Actuarial Value to such minimum benefit, as determined on the basis
of the actuarial assumptions stated in Section 4.14(b) above.
(iii) The multiplier "1.25" in subsections (c)(iii) and (d)(i)(3) of
Section 4.08 shall be reduced to "1.0".
(d) If the Plan is top-heavy with respect to a Plan Year and ceases to be
top-heavy for a subsequent Plan Year, the following provisions shall be
applicable:
(i) The Accrued Benefit in any such subsequent Plan Year shall not be
less than the minimum Accrued Benefit provided in Section 4.12(c)
(ii) above, computed as of the end of the most recent Plan Year for
which the Plan was top-heavy.
(ii) If a Member has completed three years of Eligibility Service on or
before the last day of the most recent Plan Year for which the Plan
was top-heavy, the vesting schedule set forth in Section 4.12(c)(i)
above shall continue to be applicable.
(iii) If a Member has completed at least two, but less than three years of
Eligibility Service on or before the last day of the most recent
Plan Year for which the Plan is top-heavy, the vesting provisions of
Section 4.05 shall again be applicable; provided, however, that in
no event shall the vested percentage of a Member's accrued benefit
be less than the percentage determined under Section 4.12(c)(i)
above as of the last day of the most recent Plan Year for which the
Plan was top-heavy.
84
Page 80
4.13 Payment of Medical Benefits for Benefits for Certain Members who retire
under the Plan This Section 4.13 defines the basis of providing medical
benefits to eligible Members or their eligible dependents as defined below
for those expenses incurred by such Members or their eligible dependents
on or after the date specified by the Board of Directors.
(a) In order to be eligible for the benefits provided hereunder, a person must
be a Plan Member who retired under the Plan provisions during the period
designated by the Retirement Committee and be currently eligible for
post-retirement medical benefits under a plan maintained by the Company
and hereinafter referred to as the "Medical Plan" or be an eligible
dependent of such a Member. To the extent they are not otherwise
reimbursed from Company assets, covered medical expenses incurred during
the applicable period shown below by such a Member or his or her eligible
dependents shall be reimbursed hereunder.
(b) The level of medical benefits covered under the provisions of this Section
4.13 shall be the medical coverage in effect under the terms of the
Medical Plan. Except as provided in Article 10, such medical coverage or
benefit plan may be withdrawn or amended from time to time as the Company
shall determine.
(c) Except as provided in Section 4.13(e), all contributions made to the trust
to provide medical benefits under this Section 4.13 shall be maintained in
a separate account and such assets may not be used for or diverted to any
purpose other than to provide said medical benefits; provided, however,
none of the assets so set aside may be used to provide medical benefits
for a Member, former Member or their dependents if the Member or former
Member is a "key employee" as
85
Page 81
determined in accordance with the provisions of Section 416(i)(1) and (5)
of the Internal Revenue Code. Similarly, none of the assets accumulated to
provide the retirement allowances or vested benefits set forth in the
foregoing provisions of this Article 4 may, prior to the termination of
the Plan and satisfaction of all the liabilities for such retirement
allowances or vested benefits, be used or diverted to provide medical
benefits under this Section 4.13. The assets, if any, accumulated to
provide medical benefits under this Section 4.13 may be invested pursuant
to the provisions of Article 7.
(d) It is the intention of the Company to continue providing medical benefits
under this Section 4.13 and to make contributions to the Trustee to fund
such medical benefits in such amounts as the Company shall deem necessary
or appropriate. The aggregate contributions made to fund the medical
benefits provided under this Section, when added to the actual
contributions for any life insurance protection provided under the Plan,
shall not exceed 25 percent of the total actual contributions made to the
Plan (other than contributions to fund past service credits) after the
later of the adoption or effective date of this Section. Any forfeitures
of a Member's interest in the medical benefit accounts as provided
hereunder prior to any discontinuance of medical benefits by the Board of
Directors shall be applied to reduce any subsequent Company contributions
made pursuant to this Section 4.13.
(e) Except as provided in Article 10, the Board of Directors may discontinue
providing medical benefits under this Section 4.13 for any reason at any
time, in which event the assets allocated to provide medical benefits
hereunder, if any remain, shall, to the extent they are not otherwise
reimbursed from Company assets, be used to continue medical benefits to
Members who are
86
Page 82
eligible for them prior to the discontinuance date as long as any assets
remain. However, if, after the satisfaction of all medical benefits
provided hereunder, there remain any assets, the program shall be deemed
to be terminated and such remainder shall be returned to the Company, in
accordance with Section 401(h)(5) of the Code.
4.14 Transfers from Hourly Plans maintained by the Company or an Associated
Company At the discretion and direction of the Retirement Committee, the
Plan may accept from a hourly pension plan maintained by the Company or an
Associated Company which is qualified under Section 401(a) of the Code a
transfer of (i) liabilities with respect to the accrued benefit under such
hourly plan of a Member who has employment with the Company rendered
otherwise than as an Employee recognized as Benefit Service pursuant to
the provisions of Section 2.02(c) of the Plan and (ii) with respect to
such liabilities, any assets determined by the Company to be applicable.
All such transfers shall be made in accordance with the provisions of the
Code and ERISA.
4.15 Direct Rollover of Certain Distributions
Notwithstanding any other provision of this Plan, with respect to any
distribution from this Plan which is (a) payable to a "distributee" and
(b) determined by the Retirement Committee to be an "eligible rollover
distribution", such distributee may elect, at the time and in the manner
prescribed by the Retirement Committee, to have the Plan make a "direct
rollover" of all or part of such distribution to an "eligible retirement
plan" which accepts such rollover. The following definitions apply to the
terms used in this Section:
(a) a "distributee" means a Member or former Member. In addition, the
Member's or former Member's surviving spouse and the Member's or
former Member's spouse or former
87
Page 83
spouse who is the alternate payee under a qualified domestic
relations order as defined in Section 414(p) of the Code, are
distributees with regard to the interest of the spouse or former
spouse;
(b) an "eligible rollover distribution" is any distribution of all or
any portion of the retirement allowance or vested benefit owing to
the credit of a distributee, except that the following distributions
shall not be eligible rollover distributions: (i) any distribution
that is one of a series of substantially equal periodic payments
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, (ii) any distribution required under Section
401(a)(9) of the Code and (iii) the portion of a distribution not
includible in gross income;
(c) 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 eligible
rollover distribution; however, in the case of an eligible rollover
distribution to the Member's surviving spouse, an eligible
retirement plan is an individual retirement account or individual
retirement annuity only; and
(d) "direct rollover" means a payment by the Plan directly to the
eligible retirement plan specified by the distributee.
In the event that the provisions of this Section 4.15 or any part thereof
cease to be required by law as a result of subsequent legislation or
otherwise, this Section 4.15 or applicable part thereof shall be
ineffective without necessity of further amendment of the Plan.
88
Page 84
ARTICLE 5 - ADMINISTRATION OF PLAN
5.01 The responsibility for carrying out all phases of the administration of
the Plan except those phases connected with the management of assets,
shall be placed in a Retirement Committee of not less than three persons
appointed from time to time by the Board of Directors to serve at the
pleasure of the Board of Directors. The Board of Directors may also
designate alternate members to act in the absence of the regular members.
The Board of Directors shall designate a Chairman of the Retirement
Committee from among the regular members and a Secretary who may be, but
need not be, one of its members. Any member of the Retirement Committee
may resign by delivering his or her written resignation to the Board of
Directors and the Secretary of the Retirement Committee.
5.02 The responsibility for the management of the assets of the Plan shall be
placed in a Pension Fund Trust and Investment Committee of not less than
three persons appointed from time to time by the Board of Directors to
serve at the pleasure of the Board of Directors. The Board of Directors
may also designate alternate members to act in the absence of the regular
members. The Board of Directors shall designate a Chairman of the Pension
Fund Trust and Investment Committee from among the regular members and a
Secretary who may be, but need not be, one of the members of the Pension
Fund Trust and Investment Committee. Any member of the Pension Fund Trust
and Investment Committee may resign by delivering his or her written
resignation to the Board of Directors and the Secretary of the Pension
Fund Trust and Investment Committee.
89
Page 85
5.03 The Retirement Committee and the Pension Fund Trust and Investment
Committee (hereinafter collectively referred to as the ("Committees") are
designated as named fiduciaries within the meaning of Section 402(a) of
the Employee Retirement Income Security Act of 1974.
5.04 The Committees shall hold meetings upon such notice, at such place or
places, and at such time or times as each may respectively determine. The
action of at least a majority of the members, or alternate members, of a
Committee expressed from time to time by a vote at a meeting or in writing
without a meeting shall constitute the action of that Committee and shall
have the same effect for all purposes as if assented to by all members of
such Committee at the time in office. No member of either Committee shall
receive any compensation for his or her service as such.
5.05 Each Committee may authorize one or more of its number or any agent to
execute or deliver any instrument or make any payment on its behalf; may
retain counsel, employ agents and such clerical, accounting and actuarial
services as it may require in carrying out the provisions of the Plan for
which it has responsibility; may allocate among its members or to other
persons all or such portion of its duties hereunder as it, in its sole
discretion, shall decide.
5.06 The Pension Fund Trust and Investment Committee shall be responsible for
managing the assets under the Plan. If it deems such action to be
advisable, the Committee, subject to the provisions of the trust
instrument(s) adopted for use in implementing the Plan pursuant to Section
7.01 hereof, may:
90
Page 86
(a) provide direction to the trustee(s) thereunder, including, but not
by way of limitation, the direction of investment of all or part of
the Plan assets and the establishment of investment criteria, and
(b) appoint and provide for use of investment advisors and investment
managers.
In discharging its responsibility, the Committee shall evaluate and
monitor the investment performance of the trustee(s) and investment
manager, if any.
5.07 Subject to the limitations of the Plan, the Retirement Committee from time
to time shall establish rules or regulations for the administration of the
Plan and the transaction of its business. The Retirement Committee shall
have full discretionary authority, except as to matters which the Board of
Directors from time to time may reserve to itself, to interpret the Plan
and to make factual determinations regarding any and all matters arising
hereunder, including but not limited to, the right to determine
eligibility for benefits and to construe the terms of the Plan including
the right to remedy possible ambiguities, inequities, inconsistencies or
omissions. The Retirement Committee shall also have the right to exercise
powers otherwise exercisable by the Board of Directors hereunder to the
extent that the exercise of such powers does not involve the management of
Plan assets. In addition, the Retirement Committee shall have the further
right to exercise such powers as may be delegated to the Retirement
Committee by the Board of Directors.
Subject to applicable Federal and State Law, all interpretations,
determinations and decisions of the Retirement Committee or the Board of
Directors in respect of any matter hereunder shall be final, conclusive
and binding on all parties affected thereby.
91
Page 87
5.08 The members of the Committees shall use that degree of care, skill,
prudence and diligence in carrying out their duties that a prudent man,
acting in a like capacity and familiar with such matters, would use in the
conduct of an enterprise of a like character and with like aims. A member
of either Committee shall not be liable for the breach of fiduciary
responsibility of another fiduciary unless:
(a) the person participates knowingly in, or knowingly undertakes to
conceal, an act or omission of such other fiduciary, knowing such
act or omission is a breach; or
(b) by the person's failure to discharge such person's duties solely in
the interest of the Members and other persons entitled to benefits
under the Plan, for the exclusive purpose of providing benefits and
defraying reasonable expenses of administering the Plan not met by
the Company, the person has enabled such other fiduciary to commit a
breach; or
(c) the person has knowledge of a breach by such other fiduciary and
does not make reasonable efforts to remedy the breach; or
(d) if the Committee of which the person is a member improperly
allocates responsibilities among its members or to others and the
person fails to review prudently such allocation.
5.09 The Retirement Committee, the Pension Fund Trust and Investment Committee,
and the Company shall be "named fiduciaries" within the meaning of Section
402(a) of ERISA.
92
Page 88
ARTICLE 6 - CONTRIBUTIONS
6.01 It is the intention of the Company to continue the Plan and make regular
contributions to the Trustee each year in such amounts as are necessary to
maintain the Plan on a sound actuarial basis and to meet minimum funding
standards as prescribed by any applicable law. However, subject to the
provisions of Article 8, the Company may reduce or suspend its
contributions for any reason at any time. Any forfeitures shall be used to
reduce the Company contributions otherwise payable, and will not be
applied to increase the benefits any Member or other person would
otherwise receive under the Plan.
6.02
(a) If a contribution is conditioned on initial qualification of the Plan
under Section 401(a) of the Code, and if the Commissioner of Internal
Revenue, on timely application made after the establishment of the Plan,
determines that the Plan is not initially so qualified, or refuses, in
writing, to issue a determination as to whether the Plan is so qualified,
said contribution shall be returned to the Company without interest. The
return shall be made within one year after the date of the final
determination of the denial of qualification. The provisions of this
paragraph (a) shall apply only if the application for the determination is
made by the time prescribed by law for filing the Company's return for the
taxable year in which the Plan was adopted, or such later date as the
Secretary of the Treasury may prescribe.
93
Page 89
(b) The Company's contributions to the Plan are conditioned upon their
deductibility under Section 404 of the Code. In the event that all or part
of the Company's deductions under Section 404 of the Code for
contributions to the Plan are disallowed by the Internal Revenue Service,
the portion of the contributions to which such disallowance applies shall
be returned to the Company without interest but reduced by any investment
loss attributable to those contributions. Such return shall be made within
one year after the disallowance of deduction.
94
Page 90
ARTICLE 7 - MANAGEMENT OF FUNDS
7.01 All the funds of the Plan shall be held by a Trustee or Trustees including
any member(s) of the Rayonier Inc. Pension Fund Trust and Investment
Committee, appointed from time to time by said Committee or Rayonier, in
one or more trusts under a trust instrument or instruments approved or
authorized by said Committee or Rayonier Inc. for use in providing the
benefits of the Plan and paying any expenses of the Plan not paid directly
by the Company; provided, however, that the Pension Fund Trust and
Investment Committee may, in its discretion, also enter into any type of
contract with any insurance company or companies selected by it for
providing benefits under the Plan.
7.02 Prior to the satisfaction of all liabilities with respect to persons
entitled to benefits, except for the payment of expenses, no part of the
corpus or income of the funds shall be used for, or diverted to, purposes
other than for the exclusive benefit of Members and other persons who are
or may become entitled to benefits hereunder, under the Prior Salaried
Plan, or under any trust instrument or under any insurance contract made
pursuant to this Plan.
7.03 Subject to applicable Federal and State law, no person shall have any
interest in or right to any part of the corpus or income of the funds,
except as and to the extent expressly provided in the Plan and in any
trust instrument or under any insurance contract made pursuant to this
Plan.
95
Page 91
7.04 Subject to applicable Federal and State law, the Company shall have no
liability for the payment of benefits under the Plan nor for the
administration of the funds paid over to the Trustee(s) or insurer(s)
except as expressly provided under this Plan.
7.05 Except as permitted by applicable Federal law, no part of the corpus or
income of the trust shall be invested in securities of the Company or of
any Associated Company or in real property and related personal property
which is leased to the Company or any Associated Company or in the
securities of the Trust or Trustees or their subsidiary companies, if any.
7.06 Notwithstanding any other provision of this Plan to the contrary, the
Company may recover without interest the amount of its contributions to
the Plan made on account of a mistake in fact, provided that such recovery
is made within one year after the date of such contribution.
7.07 The Pension Fund Trust and Investment Committee may, in its discretion,
appoint one or more investment managers (within the meaning of Section
3(38) of ERISA) to manage (including the power to acquire and dispose of)
all or part of the assets of the Plan, as the Investment Committee shall
designate. In that event, authority over and responsibility for the
management of the assets so designated shall be the sole responsibility of
that investment manager.
96
Page 92
ARTICLE 8 - CERTAIN RIGHTS AND LIMITATIONS
The following provisions shall apply in all cases whenever a Member or any other
person is affected thereby.
8.01 Termination of the Plan
(a) The Board of Directors may terminate the Plan for any reason at any time.
In case of termination of the Plan, the rights of Members to the benefits
accrued under the Plan to the date of the termination, to the extent then
funded or protected by law, if greater, shall be nonforfeitable. The funds
of the Plan shall be used for the exclusive benefit of persons entitled to
benefits under the Plan as of the date of termination, except as provided
in Section 6.02. However, any funds not required to satisfy all
liabilities of the Plan for benefits because of erroneous actuarial
computation shall be returned to the Company except as otherwise provided
in Section 8.06. The Retirement Committee shall determine on the basis of
an actuarial valuation the share of the funds of the Plan allocable to
each person entitled to benefits under the Plan in accordance with Section
4044 of ERISA or corresponding provision of any applicable law in effect
at the time. In the event of a partial termination of the Plan, the
provisions of this Section shall be applicable only to the Members
affected by that partial termination.
(b) Plan Merger or Consolidation
The Plan may not be merged or consolidated with, nor may its assets or
liabilities be transferred to, any other plan unless each Member or other
person entitled to a benefit under the Plan would, if the resulting plan
were then terminated, receive a benefit immediately after the merger,
consolidation,
97
Page 93
or transfer which is equal to or greater than the benefit he or she would
have been entitled to receive immediately before the merger,
consolidation, or transfer, if the Plan had then terminated; provided
that, subject to the provisions of Article 10 on or after the date of the
first occurrence of a Change in Control (i) no transfer of assets or
liabilities, except as specifically permitted under Section 8.01(a),
between the Plan and any Employee Benefit Plan, as hereinafter defined,
(ii) no spin-off of Plan assets or Plan liabilities to any Employee
Benefit Plan, (iii) no withdrawal of Plan assets, in the event such
withdrawal is permitted under applicable law or (iv) no merger or
consolidation of the Plan with any Employee Benefit Plan shall be
permitted.
For purposes of this Section 8.01(b), Employee Benefit Plan has the same
meaning as the term "employee benefit plan" has under Section 3(3) of
ERISA.
8.02 Limitation Concerning Highly Compensated Employees
or Highly Compensated Former Employees
(a) The provisions of this Section shall apply (i) in the event the Plan is
terminated, to any Member who is a highly compensated employee or highly
compensated former employee (as those terms are defined in Section 414(q)
of the Code) of the Company or an Associated Company and (ii) in any other
event, to any Member or former Member who is one of the 25 highly
compensated employees or highly compensated former employees of the
Company or Associated Company with the greatest compensation in any Plan
Year. The amount of the annual payments to any one of the Members or
former Member to whom this Section applies shall not be greater than an
amount equal to the payments that would be made on behalf of the Member or
former Member under a single life annuity that is of Equivalent Actuarial
Value to the sum of the Member's or former Member's Accrued Benefit and
any other benefits payable to the Member and former Member under the Plan.
98
Page 94
(b) If, (i) after payment of an Accrued Benefit or other benefits to any one
of the Members or to whom this Section applies, the value of Plan assets
equals or exceeds 110 per cent of the value of current liabilities (as
that term is defined in Section 412(1)(7) of the Code) of the Plan or (ii)
the value of the Accrued Benefit and other benefits of any one of the
Members or former Members to whom this Section applies is less than one
percent of the value of current liabilities of the Plan or (iii) the value
of the Accrued Benefit and other benefits of any one of the Members or
former Members to whom this Section applies does not exceed $3,500 ($5,000
effective January 1, 1998), the provisions of paragraph (a) above will not
be applicable to the payment of benefits to the Member or former Member.
(c) Notwithstanding paragraph (a) of this Section , in the event the Plan is
terminated, the restriction of this Section shall not be applicable if the
benefits payable to any highly compensated employee and any highly
compensated former employee is limited to a benefit that is
nondiscriminatory under Section 401(a)(4) of the Code.
(d) If it should subsequently be determined by statute, court decision
acquiesced in by the Commissioner of Internal Revenue, or ruling by the
Commissioner of Internal Revenue, that the provisions of this Section are
no longer necessary to qualify the Plan under the Code, this Section shall
be ineffective without the necessity of further amendment to the Plan.
8.03 Conditions of Employment Not Affected by Plan
The establishment of the Plan shall not be construed as conferring any
legal rights upon any Employee or other person for a continuation of
employment, nor shall it interfere with the rights of
99
Page 95
the Company to discharge any Employee or other person and to treat him or
her without regard to the effect which such treatment might have upon him
or her under the Plan.
8.04 Offsets - Unless the Board of Directors otherwise provides under written
rules uniformly applicable to all Employees similarly situated, the
Retirement Committee shall deduct from the amount of any retirement
allowance or vested benefit under the Plan, any amount paid or payable to
or on account of any Member under the provisions of any present or future
law, pension or benefit scheme of any sovereign government, or any
political subdivision thereof or any fund or organization or government
agency or department on account of which contributions have been made or
premiums or taxes paid by the Company, any Participating Unit, or any
Associated Company with respect to any service which is Benefit Service
for purposes of computation of benefits under the Plan; provided, however,
that pensions payable for government service or benefits under Title II of
the Social Security Act are not to be used to reduce the benefits
otherwise provided under this Plan except as specifically provided herein.
8.05 Denial of Benefits - The Retirement Committee may prescribe rules on a
basis uniformly applicable to all Employees similarly situated under which
an Employee whose employment is terminated because of dishonesty,
conviction of a felony or other conduct prejudicial to the Company may be
denied any benefit or benefits for which he or she would otherwise be
eligible under the Plan, except his or her retirement allowance pursuant
to Section 4.01 or his or her vested benefit pursuant to Section 4.05;
provided, however, that such denial is not contrary to applicable law.
100
Page 96
8.06 Change in Control - In the event of a Change in Control the following
restrictions shall apply:
(a) Notwithstanding any other provision of the plan, in the event of a
Change in Control, neither the Board of Directors, its designee, the
Retirement Committee nor the Trustee may merge or consolidate the
Plan with any other plan, transfer any Plan assets to any other
retirement or welfare benefit plan, transfer any other welfare or
retirement benefit plan's liabilities to the Plan, spin-off or
split-off any part of the Plan or group of Members in the Plan, or
reduce future Plan benefits, or cause or permit the Plan to acquire
any security or real or personal property of the Company or any
Associated Company, during the five-year period commencing on the
date on which the Change in Control occurs.
(b) Notwithstanding any other provision of the Plan, in the event of a
Change in Control, neither the Board of Directors nor its designee
may, during the five-year period commencing on the date on which the
Change in Control occurs, designate any new Participating Units or
designate any new groups of Employees as eligible to participate in
the Plan.
(c) Notwithstanding any other provision of the Plan, if at any time
during the five-year period commencing on the date on which a Change
in Control occurs, the Plan is terminated, any Member who was an
Employee on the date of the Change in Control shall, if not
previously vested, become fully vested in all Plan benefits. If the
Plan has surplus assets, all of the surplus assets shall be
allocated to Plan Members who were Members as of the date on which a
Change in Control occurs (including Members who terminated
employment with entitlement to a retirement allowance and Members
who are, on the date
101
Page 97
on which a Change in Control occurs, receiving a retirement
allowance) on pro rata basis, in relation to the benefits accrued
prior to the date of Change in Control and none of this surplus may
be recovered by the Company, any successor or any Associated
Company. For purposes of this Section 8.06(c) the amount of surplus
assets will be determined as part of the process of purchasing
non-participating group annuity contracts in connection with the
termination of the Plan. In purchasing such annuities, the Plan
shall seek competitive bids from at least three unrelated insurance
companies. In no event shall the increase in the Retirement
Allowance payable pursuant to this paragraph cause the retirement
allowance to exceed the limitations in Section 4.08 of the Plan.
(d) Notwithstanding any other provision of the Plan, if at any time
during the five-year period commencing on the date on which a Change
in Control occurs (i) a Substantial Reduction in Force (as
hereinafter defined) occurs or (ii) any action prohibited by
paragraph (a) or (b) of this Section 8.06 is taken, then any Member
who was an Employee on the date of the Change in Control shall, if
not previously vested, become fully vested in all Plan benefits.
Furthermore, if, as of the date either of the events described in
(i) or (ii) above occurs, the fair market value of the Plan's assets
exceeds the Plan's current liability pursuant to Section 412(l)(7)
of the Code (based on the Plan's actuarial assumptions on the date
the Change in Control occurs except that the interest rate shall be
the maximum rate permitted under Section 412 of the Code) the amount
of such excess assets shall be applied to increase, as described
below, the Accrued Benefit of all Plan Members who were Members as
of the date on which a Change in Control occurs. For purposes of
determining the increase in Accrued Benefit under this Section
8.06(d), Plan Member
102
Page 98
includes both Members who are Employees as well as former Employees,
or Beneficiaries of former Employees either entitled to future
benefits or currently in receipt of Plan benefits. The Equivalent
Actuarial Value of each Plan Member's Accrued Benefit shall be
increased by the amount determined by multiplying (a) the Plan's
excess assets as defined in this Section 8.06(d) by (b) the ratio
that the Current Liability of each Plan Member bears to the sum of
the Current Liability of all Plan Members. Such increased present
value will be converted into an enhanced Accrued Benefit for each
Plan Member. In no event, however, shall such increase cause a Plan
Member's Accrued Benefit to exceed the limitation of Section 4.08 of
the Plan.
For purposes of this Section 8.06,
(i) a "Substantial Reduction in Force" shall mean the Involuntary
Separation from employment, following a Change in Control, of
the percentage of Members set forth below who were Employees
when the Change in Control occurred:
(1) 10% or more within any consecutive 12-month period.
(2) 15% or more within any consecutive 24-month period.
(3) 20% or more within any consecutive 36-month period.
(4) 25% or more within any consecutive 48-month period.
(5) 30% or more within a 60-month period; and
(ii) "Involuntary Separation" shall mean the termination of a
Member's employment with the Company as a result of Company
action such as a discharge, a resignation after a reduction in
pay, position or responsibilities, a retirement after the
Company has requested such Member to resign or retire, a
layoff, or any
103
Page 99
relocation of the work location of a Member to a place more
than 35 miles from such Member's principal residence;
provided, however, that an Involuntary Separation shall not be
deemed to have occurred if a Member resigns or retires other
than in response to a Company request, or is terminated for
serious misconduct in connection with such Member's work.
(e) In the event the Internal Revenue Service makes a final
determination that the utilization of surplus assets of the Plan (or
any portion thereof) in accordance with paragraph (c) or (d) of this
Section 8.06 cannot be accomplished in any manner without
disqualifying the Plan, the Company shall utilize such assets which
cannot be so utilized to provide benefits to those Members who were
Employees on the date of the Change in Control in any manner that
the Company deems to be in the best interests of such Members and
which would not disqualify the Plan. Such utilization may include
the transfer of such assets to another employee benefit plan of the
Company, including a voluntary employees' beneficiary association as
described in Section 501(c)(9) of the Code; provided, however, that
in no event shall any such assets be transferred to any entity other
than a trust devoted exclusively to providing benefits to employees
and retirees who were Plan Members as of the date of the Change in
Control.
8.07 Prevention of Escheat - If the Retirement Committee cannot ascertain the
whereabouts of any person to whom a payment is due under the Plan, the
Retirement Committee may, no later than two years from the date such
payment is due, mail a notice of such due and owing payment to the last
known address of such person as shown on the records of the Retirement
Committee or the
104
Page 100
Company. If such person has not made written claim therefor within three
months of the date of the mailing, the Retirement Committee may, if it so
elects and upon receiving advice from counsel to the Plan, direct that
such payment and all remaining payments otherwise due such person be
canceled on the records of the Plan and the amount thereof applied to
reduce the contributions of the Company. Upon such cancellation, the Plan
shall have no further liability therefor except that, in the event such
person or his or her beneficiary later notifies the Retirement Committee
of his or her whereabouts and requests the payment or payments due to him
or her under the Plan, the amount so applied shall be paid to him or her
in accordance with the provisions of the Plan.
105
Page 101
ARTICLE 9 - NONALIENATION OF BENEFITS
9.01
(a) Subject to any applicable Federal and State law, no benefit under the Plan
shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance or charge except any election to
make a contribution necessary to provide post-retirement medical benefits
under any Plan maintained by the Company and, any attempt so to do shall
be void, except as specifically provided in the Plan, nor shall any such
benefit be in any manner liable for or subject to garnishment, attachment,
execution or levy or liable for or subject to the debts, contracts,
liabilities, engagements or torts of the person entitled to such benefit.
(b) Subject to applicable Federal and State law, in the event that the
Retirement Committee shall find that any Member or other person who is or
may become entitled to benefits hereunder has become bankrupt or that any
attempt has been made to anticipate, alienate, sell, transfer, assign,
pledge, encumber or charge any of his or her benefits under the Plan,
except as specifically provided in the Plan, or if any garnishment,
attachment, execution, levy or court order for payment of money has been
issued against any of his or her benefits under the Plan, then such
benefit shall cease and terminate. In such event the Retirement Committee
shall hold or apply the payments to or for the benefit of such Member or
other person who is or may become entitled to benefits hereunder, his or
her spouse, children, parents or other blood relatives, or any of them.
(c) Notwithstanding the foregoing provisions of the Plan, payment shall be
made in accordance with the provisions of any judgment, decree, or,
domestic relations order which:
106
Page 102
(i) creates for, or assigns to, a spouse, former spouse, child or other
dependent of a Member the right to receive all or a portion of the
Member's benefits under the Plan for the purpose of providing child
support, alimony payments or marital property rights to that spouse,
child or dependent,
(ii) is made pursuant to the domestic relations law of any State (as such
term is defined in Section 3(10) of ERISA,
(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 to be a
"qualified domestic relations order" as determined by the Retirement
Committee.
If the lump sum present value of any series of payments made under the
criteria set forth in paragraphs (i) through (iv) above amounts to $3,500
($5,000 effective January 1, 1998) or less, then a lump sum payment of
Equivalent Actuarial Value (determined in the manner described in Section
4.10) shall be made in lieu of the series of payments.
(d) The Retirement Committee shall resolve any questions arising under this
Article 9 on a basis uniformly applicable to all persons similarly
situated.
107
Page 103
ARTICLE 10 - AMENDMENTS
10.01 Subject to Section 10.02, the Board of Directors or its delegate reserves
the right at any time and from time to time, and retroactively if deemed
necessary or appropriate to conform with governmental regulations or other
policies, to modify or amend in whole or in part any or all of the
provisions of the Plan; provided that no such modification or amendment
shall make it possible for any part of the funds of the Plan to be used
for, or diverted to, purposes other than for the exclusive benefit of
Members, spouses, or contingent annuitants or other persons who are or may
become entitled to benefits hereunder prior to the satisfaction of all
liabilities with respect to them; and that no modification or amendment
shall be made which has the effect of decreasing the Accrued Benefit of
any Member or of reducing the nonforfeitable percentage of the Accrued
Benefit of a Member attributable to Company contributions below that
nonforfeitable percentage thereof computed under the Plan as in effect on
the later of the date on which the amendment is adopted or becomes
effective. Any action to amend the Plan by the Board of Directors shall be
taken in such manner as may be permitted under the by-laws of the Company
and any action to amend the Plan by a delegate of the Board of Director
shall be in writing.
10.02 Notwithstanding the above, on or after the date a Change in Control first
occurs, Section 8.01, Section 8.06 and this Article 10, as they pertain to
events occurring on or after the date such Change in Control occurs, may
not be further amended by the Board of Directors without written consent
of not less than three- quarters (3/4) of the Members and other persons
then receiving to benefits under the Plan.
108
APPENDIX A
TABLE 4
Factors to Determine Lump Sum Payments
----------------------------------------------
: : :
AGE : FACTOR : AGE : FACTOR
: : :
----------------------------------------------
25 : 0.989 : 41 : 3.439
26 : 1.069 : 42 : 3.720
27 : 1.155 : 43 : 4.024
28 : 1.249 : 44 : 4.353
29 : 1.350 : 45 : 4.710
30 : 1.459 : 46 : 5.097
31 : 1.577 : 47 : 5.516
32 : 1.705 : 48 : 5.972
33 : 1.843 : 49 : 6.466
34 : 1.992 : 50 : 7.002
35 : 2.153 : 51 : 7.585
36 : 2.327 : 52 : 8.218
37 : 2.516 : 53 : 8.907
38 : 2.720 : 54 : 9.657
39 : 2.941 : 55 : 10.474
40 : 3.180 : :
----------------------------------------------
Note: Above factors represent present value of
annuity of $1.00 per annum with payments
deferred to commence at age 55.
109
APPENDIX A
TABLE 5
Factors to Determine Lump Sum Payments
----------------------
:
AGE : FACTOR
:
----------------------
55 : 10.474
56 : 10.323
57 : 10.165
58 : 10.001
59 : 9.829
60 : 9.651
61 : 9.467
62 : 9.278
63 : 9.084
64 : 8.885
65 : 8.682
66 : 8.476
67 : 8.268
68 : 8.057
69 : 7.845
70 : 7.631
71 : 7.417
72 : 7.201
73 : 6.985
74 : 6.768
75 : 6.552
----------------------
Note: Above factors represent
present value of annuity
of $1.00 per annum.
110
APPENDIX A
TABLE 6
Factors to Determine Lump Sum Payments
-----------------------------------------
: FACTOR TO BE APPLIED TO
: --------------------------------
: Benefit : Benefit
AGE : Payable : Payable
: To Age 62 : After Age 62
-----------------------------------------
55 : 5.314 : 5.160
56 : 4.724 : 5.599
57 : 4.086 : 6.079
58 : 3.397 : 6.604
59 : 2.649 : 7.180
60 : 1.839 : 7.812
61 : 0.958 : 8.509
62 : : 9.278
63 : : 9.084
64 : : 8.885
65 : : 8.682
66 : : 8.476
67 : : 8.268
68 : : 8.057
69 : : 7.845
70 : : 7.631
71 : : 7.417
72 : : 7.201
73 : : 6.985
74 : : 6.768
75 : : 6.552
-----------------------------------------
Note: Above factors represent present
value of annuity of $1.00 per
annum.
111
APPENDIX A
TABLE 7
Factors to Determine Maximum Benefits Prior to September 1, 1995
- --------------------------------------------------------------------------------
FACTOR
---------------------------------------------------------
AGE AT Born After
COMMENCEMENT Born Before December 31, 1937 Born After
OF BENEFIT January 1,1938 and Before December 31, 1954
January 1, 1955
- --------------------------------------------------------------------------------
50 0.326 0.306 0.286
51 0.349 0.327 0.305
52 0.374 0.350 0.327
53 0.401 0.376 0.351
54 0.430 0.403 0.376
55 0.462 0.433 0.404
56 0.497 0.466 0.435
57 0.536 0.503 0.469
58 0.578 0.542 0.506
59 0.626 0.587 0.547
60 0.678 0.635 0.593
61 0.735 0.689 0.643
62 0.800 0.750 0.700
63 0.867 0.800 0.750
64 0.933 0.867 0.800
65 1.000 0.933 0.867
66 1.099 1.000 0.933
67 1.210 1.102 1.000
68 1.337 1.217 1.105
69 1.483 1.350 1.225
70 1.649 1.501 1.363
71 1.841 1.676 1.521
72 2.063 1.878 1.705
73 2.321 2.113 1.918
74 2.622 2.388 2.168
75 2.977 2.710 2.461
- --------------------------------------------------------------------------------
112
APPENDIX A
TABLE 7
Factors to Determine Maximum Benefits Effective September 1, 1995
- --------------------------------------------------------------------------------
FACTOR
---------------------------------------------------------
AGE AT Born After
COMMENCEMENT Born Before December 31, 1937 Born After
OF BENEFIT January 1,1938 and Before December 31, 1954
January 1, 1955
- --------------------------------------------------------------------------------
50 0.338 0.317 0.296
51 0.362 0.339 0.316
52 0.386 0.362 0.338
53 0.413 0.387 0.361
54 0.442 0.415 0.387
55 0.474 0.444 0.414
56 0.509 0.477 0.445
57 0.546 0.512 0.478
58 0.588 0.551 0.515
59 0.634 0.594 0.554
60 0.683 0.641 0.598
61 0.738 0.692 0.646
62 0.800 0.750 0.700
63 0.867 0.800 0.750
64 0.933 0.867 0.800
65 1.000 0.933 0.867
66 1.092 1.000 0.933
67 1.196 1.095 1.000
68 1.313 1.202 1.098
69 1.447 1.324 1.209
70 1.598 1.463 1.336
71 1.772 1.622 1.481
72 1.971 1.805 1.648
73 2.202 2.016 1.841
74 2.470 2.261 2.065
75 2.783 2.548 2.327
- --------------------------------------------------------------------------------
113
APPENDIX B
114
RETIREMENT PLAN FOR SALARIED EMPLOYEES OF RAYONIER INC.
APPENDIX B
This Appendix B, effective as of September 1, 1995, is applicable with respect
to former employees of Rayonier Inc. (or its predecessor Rayonier Incorporated)
who are in receipt of a retirement allowance under the Salaried Employees
Retirement Income Plan of Rayonier Incorporated as of August 31, 1995 and their
spouses and beneficiaries. This Appendix B constitutes an integral part of the
Plan and sets forth the particulars concerning the eligibility requirements for
membership as referred to in Article 3 of the Plan.
115
Page 2
ARTICLE 3 - MEMBERSHIP
Any former employee of Rayonier Inc. (or its predecessor ITT Rayonier
Incorporated) who is in receipt of a retirement allowance under the Salaried
Employees Retirement Income Plan of Rayonier Incorporated as of August 31, 1995
shall become a Member of the Plan on September 1, 1995, but he or she shall not
accrue any Benefit Service under the Plan after such date. Such Member, or his
or her spouse or beneficiary, shall be eligible for and shall receive from this
Plan benefits in the same amount and payable in accordance with the same terms
as the retirement allowance to which he or she was entitled under the Salaried
Employees Retirement Income Plan of Rayonier Incorporated as of August 31, 1995.
116
APPENDIX B
SCHEDULE I
(FORMER MEMBERS OF THE SALARIED EMPLOYEES
RETIREMENT INCOME PLAN OF RAYONIER INCORPORATED)
Effective as of October 1, 1988, the retirement allowances payable to the
following retired Members or, if applicable, beneficiaries shall be supplemented
in the amounts listed below (and shall be payable after the death of a retired
Member in accordance with the provisions of the Plan, as applicable).
SOCIAL FIRST SECOND TOTAL
SECURITY MONTHLY MONTHLY MONTHLY
NAME NUMBER SUPPLEMENT SUPPLEMENT SUPPLEMENT
---- -------- ---------- ---------- ----------
Vialas A. Aggergaard ###-##-#### $ 83.73 $ 50.27 $ 134.00
Louis H. Bock ###-##-#### 175.66 99.19 274.85
G. M. Atkinson ###-##-#### 93.06 32.84 125.90
Leonard E. Attwood ###-##-#### 175.99 80.92 256.91
Morton J. Barger ###-##-#### 35.00 10.00 45.00
Fred C. Barnhart ###-##-#### 191.15 73.74 264.89
George Bartlett ###-##-#### 58.55 30.20 88.75
John W. Bennett ###-##-#### 110.44 75.56 186.00
Paul W. Blatter ###-##-#### 178.31 74.21 252.52
William E. Breitenbach ###-##-#### 629.15 334.89 964.04
Oral S. Burnett ###-##-#### 48.28 16.49 64.77
Frances M. Cannon ###-##-#### 60.25 22.19 82.44
Evert A. Carlson ###-##-#### 89.88 37.40 127.28
Henry V. Charnell ###-##-#### 240.30 164.40 404.70
Miriam C. Christian ###-##-#### 57.41 26.40 83.81
M. A. Corbin ###-##-#### 81.33 33.85 115.18
Fred B. Doherty ###-##-#### 223.19 152.70 375.89
Frank W. Dolby ###-##-#### 53.50 27.60 81.10
Elgin W. Edmisten ###-##-#### 146.38 56.47 202.85
Harold C. Ellingson ###-##-#### 95.21 32.53 127.74
Claribel S. Forrest ###-##-#### 293.85 176.41 470.26
G. A. Franklin ###-##-#### 58.78 35.29 94.07
Betty M. Graham ###-##-#### 30.00 10.00 40.00
Rolla W. Halbert ###-##-#### 133.78 80.31 214.09
H. J. Hamilton ###-##-#### 85.42 58.44 143.86
Betty M. Hansen ###-##-#### 21.86 19.49 41.35
Kenneth E. Harris ###-##-#### 120.28 72.21 192.49
Katherine E. Hirt ###-##-#### 68.38 38.61 106.99
Milton L. Holt ###-##-#### 35.00 10.00 45.00
117
Page 2
SOCIAL FIRST SECOND TOTAL
SECURITY MONTHLY MONTHLY MONTHLY
NAME NUMBER SUPPLEMENT SUPPLEMENT SUPPLEMENT
---- -------- ---------- ---------- ----------
Harry L. Hooker ###-##-#### $ 131.60 $ 54.77 $ 186.37
Jack H. Jensen ###-##-#### 75.40 45.27 120.67
Martha B. Kitchen ###-##-#### 111.08 35.61 146.69
Fletcher T. Lake ###-##-#### 98.02 58.85 156.87
Carrie P. Larsen ###-##-#### 124.47 40.71 165.18
Arthur L. Leathers ###-##-#### 150.31 69.11 219.42
Lecil Leslie ###-##-#### 78.40 47.07 125.47
Parker Lindhart ###-##-#### 120.76 72.50 193.26
Olaf O. Lodeen ###-##-#### 110.03 66.06 176.09
C. V. McKinstry ###-##-#### 122.62 63.25 185.87
Anna Marie Smith ###-##-#### 42.82 14.63 57.45
Lenhard E. Miller ###-##-#### 80.37 28.36 108.73
Don F. Murchison ###-##-#### 98.87 45.46 144.33
Harvey O. Nelson ###-##-#### 116.09 69.69 185.78
Riley Nelson ###-##-#### 101.35 46.60 147.95
Anna K. Spilseth ###-##-#### 41.33 15.22 56.55
Robert N. Pollock ###-##-#### 87.80 27.79 115.59
Leslie E. Pooler ###-##-#### 105.63 63.42 169.05
Bryan L. Rauschert ###-##-#### 219.27 123.82 343.09
D. D. Rhebeck ###-##-#### 148.07 83.61 231.68
Steve Rupert ###-##-#### 460.30 133.70 594.00
Jeanne Sanders ###-##-#### 20.00 10.00 30.00
Wanda E. Schirmer ###-##-#### 20.00 10.00 30.00
Winston Scott ###-##-#### 248.43 84.87 333.30
James T. Sheehy ###-##-#### 673.32 418.87 1,092.19
Oren B. Sorensen ###-##-#### 97.63 66.80 164.43
Elmer Sytsma ###-##-#### 53.18 18.17 71.35
J. B. Talbird ###-##-#### 422.08 175.65 597.73
Alonzo R. Teeters ###-##-#### 95.64 39.81 135.45
Maxine F. Tinkham ###-##-#### 30.00 16.50 46.50
Adolph Tratnick ###-##-#### 93.83 64.19 158.02
E. H. Wagner ###-##-#### 264.11 59.40 323.51
G. Weighton ###-##-#### 106.80 36.49 143.29
Clarke M. Williams ###-##-#### 96.22 44.24 140.46
Bernard T. Winiecki ###-##-#### 118.50 40.48 158.98
Lewis Woods ###-##-#### 30.00 13.64 43.64
Elliott H. Woodruff ###-##-#### 370.94 144.91 515.85
Rena Young ###-##-#### 108.82 34.44 143.26
118
Page 3
SCHEDULE I
(FORMER MEMBERS OF THE SALARIED EMPLOYEES
RETIREMENT INCOME PLAN OF RAYONIER INCORPORATED)
Effective as of January 1, 1996, the Retirement Allowance payable to the
following retired Members, contingent annuitants or surviving spouses shall be
supplemented in the amounts listed below, and shall be payable after the death
of a Member in accordance with the provisions of Section 4.06 of the Plan.
SOCIAL
SECURITY MONTHLY
NAME NUMBER SUPPLEMENT
---- -------- ----------
Leonard E. Attwood ###-##-#### $ 84.97
Paul W. Blatter ###-##-#### 80.56
Louis H. Bock ###-##-#### 98.34
William Breitenbach ###-##-#### 337.07
Henry V. Charnell ###-##-#### 155.53
M. A. Corbin ###-##-#### 36.60
Fred Doherty ###-##-#### 144.42
Frank W. Dolby ###-##-#### 28.08
Claribel Forrest ###-##-#### 171.99
Betty M. Graham ###-##-#### 10.00
Betty M. Hansen ###-##-#### 17.49
Katherine Hirt ###-##-#### 38.22
Margaret Holt ###-##-#### 10.29
Martha B. Kitchen ###-##-#### 42.34
Arthur L. Leathers ###-##-#### 72.47
Riley Nelson ###-##-#### 48.95
Robert N. Pollock ###-##-#### 33.22
Marjorie Rauchert ###-##-#### 61.30
Vivian Rhebeck ###-##-#### 41.45
Steve Rupert ###-##-#### 165.38
Jeanne Sanders ###-##-#### 10.00
Wanda E. Schirmer ###-##-#### 10.00
Winston Scott ###-##-#### 98.49
Anna K. Spilseth ###-##-#### 17.20
Elmer Sytsma ###-##-#### 21.02
J. B. Talbird ###-##-#### 190.37
Adolph Tratnick ###-##-#### 60.71
Clarke M. Williams ###-##-#### 46.45
Bernhard Winiecki ###-##-#### 47.04
Isobel Woodruff ###-##-#### 80.26
119
APPENDIX C
120
RETIREMENT PLAN FOR SALARIED EMPLOYEES OF RAYONIER INC.
APPENDIX C
This Appendix C, effective as of September 1, 1995, is applicable with respect
to employees or former employees of Rayonier Inc. (or its predecessor ITT
Rayonier Incorporated) who are entitled to a pension benefit under The Vanillin
Operation of the Northwest Chemical Products Division of Rayonier Inc. Pension
Plan for Hourly Employees as of August 31, 1995 and their spouses and
beneficiaries. This Appendix C constitutes an integral part of the Plan and sets
forth the particulars concerning:
(i) The definition of "Accrued Benefit", "Annuity Starting Date",
"Equivalent Actuarial Value", "Final Average Compensation",
"Normal Retirement Date", "Public Disability Benefit", "Total
and Permanent Disability" and "Vanillin Plan."
(ii) The determination of Eligibility Service as referred to in
Section 2.01 of the Plan.
(iii) The determination of Benefit Service as referred to in Section
2.02 of the Plan.
(iv) The eligibility requirements for membership as referred to in
Article 3 of the Plan.
(v) The determination of the amount of normal retirement allowance
as referred to in Section 4.01(b) of the Plan.
(vi) The determination of the amount of postponed retirement
allowance as referred to in Section 4.02(b) and (c) of the Plan.
(vii) The eligibility requirements for the standard early retirement
allowance referred to in Section 4.03(a) of the Plan.
(viii) The determination of the amount of the standard early retirement
allowance referred to in Section 4.03(b) of the Plan.
(ix) The eligibility requirements for a disability retirement
allowance.
(x) The determination of the amount of a disability retirement
allowance.
121
Page 2
(xi) The eligibility requirements for a vested benefit as referred to
in Section 4.05(a) of the Plan.
(xii) The determination of the amount of vested benefit as referred to
in Section 4.05(b) of the Plan.
(xiii) The forms of benefit payment after retirement as referred to in
Section 4.06 of the Plan.
(xiv) The survivor's benefit applicable before retirement as referred
to in Section 4.07 of the Plan.
(xv) The provisions for payment of benefits as referred to in Section
4.10(a) of the Plan.
(xvi) The determination of the amount of an automatic lump sum payment
as referred to in Section 4.10(b) of the Plan.
(xvii) The effect of reemployment on the election of an optional form
of benefit as referred to in Section 4.11(b) of the Plan.
(xviii) The determination of the amount of benefit payable to a
reemployed Member upon his or her subsequent retirement as
referred to in Section 4.11(c) of the Plan.
(xix) The minimum adjusted benefit payable under the Plan.
122
Page 3
ARTICLE 1 - DEFINITIONS
1.01 Accrued Benefit shall mean, as of any date of determination, the
retirement allowance computed under Section 4.01(b) on the basis of the
Member's Benefit Service and applicable components of the Plan formula as
of the determination date.
1.03 Annuity Starting Date shall mean the first day of the first period for
which an amount is due on behalf of a Member or former Member as an
annuity or any other form of payment under the Plan; provided, however,
that in the case of a Member who retires under Section 4.04, Annuity
Starting Date shall mean his or her Normal Retirement Date.
1.17 Equivalent Actuarial Value shall mean equivalent value of a benefit under
the Plan determined on the basis of the applicable factors set forth in
Schedule I, except as otherwise specified in the Plan. In any other event,
Equivalent Actuarial Value shall be determined on the same actuarial basis
utilized to compute the factors set forth in Schedule I.
1.19 Final Average Compensation shall mean the Member's "Pensionable
Compensation" under the Vanillin Plan as of August 31, 1995.
1.26 Normal Retirement Date shall mean the last day of the calendar month in
which the former employee attains age 65, which is his Normal Retirement
Age.
123
Page 4
1.44 Public Disability Benefit shall mean disability payments or lump sum
payments under any workers' compensation or occupational diseases law,
except fixed statutory payments for the loss of any bodily member and
except lump-sum payments for disfigurement. The amount of the deduction to
be made from monthly disability retirement allowances in respect to any
lump-sum payments under any workers' compensation or occupational diseases
law shall be determined by dividing the lump-sum payment by the maximum
number of months or fractions thereof in the period provided by statute or
regulation, provided the amount of such deduction shall be limited to the
amount of monthly disability retirement allowance and shall be applicable
for the number of months and fractions thereof in such maximum period.
1.45 Total and Permanent Disability shall mean the total and permanent
disablement of a Member if (a) through some unintentional cause, he or she
has been totally disabled by bodily injury or disease or by mental
derangement so as to be prevented thereby from engaging in any regular
occupation or employment for remuneration or profit, and (b) such total
disability is expected to be permanent and continuous during the remainder
of his or her life, provided such disability is not incurred in service in
the armed forces of any country, each as determined by the Company on the
basis of qualified medical evidence.
1.46 Vanillin Plan shall mean The Vanillin Operation of the Northwest Chemical
Products Division of Rayonier Inc. Pension Plan for Hourly Employees as in
effect on the date specified in the Plan.
124
Page 5
ARTICLE 2 - SERVICE
2.01 Eligibility Service
(a) Eligibility Service on and after September 1, 1995: Except as otherwise
provided in this Article 2, all uninterrupted employment with the Company
or with an Associated Company rendered on and after September 1, 1995 and
prior to the date such Member's employment terminates shall be recognized
as Eligibility Service for all Plan purposes. Notwithstanding the
foregoing, with respect to any calendar year in which the employee
completes at least 1,000 Hours of Service there shall be included in his
or her Eligibility Service a full year of Eligibility Service.
(b) Hours of Service - "Hours of Service" shall include hours worked and hours
for which a person is compensated by the Company or by an Associated
Company for the performance of duties for the Company or an Associated
Company, although he or she has not worked (such as: paid holidays, paid
vacation, paid sick leave, paid time off and back pay for the period for
which it was awarded), and each hour shall be computed as only one hour,
even though he or she is compensated at more than the straight time rate.
This definition of "Hours of Service" shall be applied in a consistent and
non-discriminatory manner in compliance with 29 Code of Federal
Regulations, Section 2530.200b-2(b) and (c) as promulgated by the United
States Department of Labor and as may hereafter be amended.
(c) Certain absences to be recognized as Eligibility Service - Except as
otherwise indicated in this Article 2, the period of any leave of absence
granted in respect of service with the armed forces of the United States
shall be recognized as Eligibility Service under the Plan and shall not be
125
Page 6
considered as a break in service, provided the employee shall have
returned to the service of the Company or an Associated Company in
accordance with reemployment rights under applicable law and shall have
complied with all of the requirements of such law as to reemployment. If
an employee fails to return to active employment upon expiration of the
approved absence set forth in the prior sentence, such period of approved
absence shall not be considered as Eligibility Service under the Plan.
(d) Breaks in Service - If an employee does not complete more than 500 Hours
of Service in any calendar year, other than the calendar year in which the
employee was hired, he or she shall incur a one-year break in service;
provided that no break in service shall occur unless the employee's
employment with the Company or an Associated Company is terminated. For
purposes of this Section 2.01, the length of an employee's break in
service shall be determined on the following basis:
(i) If the employee completes at least 500 Hours of Service in the
calendar year in which his or her employment terminates, the date
his or her break in service begins shall be the January 1st of the
next following calendar year; otherwise, the date his or her break
in service begins shall be the date on which his or her employment
terminates.
(ii) If the employee completes at least 500 Hours of Service in the
calendar year in which he or she is reemployed, the date his or her
break in service ceases is the January 1st of the calendar year in
which he or she is reemployed; otherwise, the date his or her break
in service ceases is the date on which he or she is reemployed.
126
Page 7
Solely for purposes of determining whether such an employee has incurred a
break in service, hours shall include each Hour of Service for which such
employee would otherwise have been credited under paragraph (a) above were
it not for the employee's absence due to Parental Leave. Hours of Service
credited under the preceding sentence shall not exceed the number of hours
needed to avoid a break in service in the computation period in which the
Parental Leave began, and in any event shall not exceed 501 hours; if no
hours are needed to avoid a break in service in such computation period,
then the provisions of the preceding sentence shall apply as though the
Parental Leave began in the immediately following computation period.
(e) Bridging breaks in service
If an employee has a break in service, except as otherwise provided in
Section 4.11, employment both before and after the employee's absence
shall be immediately recognized as Eligibility Service, subject to the
provisions of this Section 2.01, upon his or her return to the employ of
the Company or an Associated Company.
(f) Eligibility Service prior to September 1, 1995
Notwithstanding any foregoing provisions to the contrary, a Member's
Eligibility Service shall include the "Continuous Service" credited to
such Member under the Vanillin Plan as of August 31, 1995.
127
Page 8
2.02 Benefit Service
For purposes of determining the amount of a Member's retirement allowance
or vested benefit under this Appendix C, there shall be recognized as
Benefit Service the "Credited Service" credited to such Member under the
Vanillin Plan as of August 31, 1995.
128
Page 9
ARTICLE 3 - MEMBERSHIP
Any former employee of Rayonier Inc. (or its predecessor ITT Rayonier
Incorporated) who is entitled to a pension benefit under the Vanillin Plan as of
August 31, 1995 shall become a Member of the Plan on September 1, 1995, but he
or she shall not accrue any Benefit Service for purposes of this Appendix C
after such date and, unless he or she is reemployed by the Company or an
Associated Company, he or she shall not accrue any Eligibility Service under the
Plan after such date. Such Member, or his or her spouse or beneficiary, shall be
eligible for and shall receive from this Plan benefits in the same amount and
payable in accordance with the same terms as the pension benefit to which he or
she was entitled under the Vanillin Plan as of August 31, 1995.
129
Page 10
ARTICLE 4 - BENEFITS
4.01 Normal Retirement Allowance
(b) Benefit - Prior to adjustment in accordance with Sections 4.06(a) and
4.07(b), the annual normal retirement allowance payable on a lifetime
basis upon retirement at a Member's Normal Retirement Date shall be equal
to 70% of the Member's Average Final Compensation, minus 50% of his or her
Social Security Benefit; provided, however, that if the Member has
completed less than 40 years of Benefit Service, the resulting monthly
retirement allowance shall be reduced in proportion that the number of
years of his or her Benefit Service bears to 40. The annual normal
retirement allowance shall not be less than the greatest annual early
retirement allowance which would have been payable to a Member had he or
she retired under Section 4.03 at any time before his or her Normal
Retirement Date, but based on the Federal Social Security Act in effect at
the time of the Member's actual retirement, or Normal Retirement Date, if
earlier.
4.02 Postponed Retirement Allowance
(b) Benefit - Except as hereinafter provided and prior to adjustment in
accordance with Section 4.06(a) and 4.07(b), the annual postponed
retirement allowance payable on a lifetime basis upon retirement at a
Member's Postponed Retirement Date shall be equal to the greater of:
(i) an amount determined in accordance with Section 4.01(b) but based on
the Member's Benefit Service, Social Security Benefit and Average
Final Compensation as of his or her Postponed Retirement Date; or
130
Page 11
(ii) the annual normal retirement allowance to which the Member would
have been entitled under Section 4.01(b) had he or she retired on
his or her Normal Retirement Date, increased by an amount which is
the Equivalent Actuarial Value of the monthly payments which would
have been payable with respect to each month in which he or she
completed less than 40 Hours of Service. Any monthly payment
determined under this paragraph (b)(ii) with respect to any such
month in which the Member completed less than 40 Hours of Service
shall be computed as if the Member had retired on his or her Normal
Retirement Date.
(c) Benefit for Member in Active Service after he or she attains Age 70-1/2 -
In the event a Member's retirement allowance is required to begin under
Section 4.10 while the Member is in active service, the January 1
immediately following the calendar year in which the Member attained age
70-1/2 shall be the Member's Annuity Starting Date for purposes of this
Article 4 and the Member shall receive a postponed retirement allowance
commencing on that January 1 in an amount determined as if he or she had
retired on such date. As of each succeeding January 1 prior to the
Member's actual Postponed Retirement Date and as of his or her actual
Postponed Retirement Date, the Member's retirement allowance shall be
reduced by the Equivalent Actuarial Value of the total payments of his or
her postponed retirement allowance made with respect to each month of
continued employment in which he or she completed at least 40 Hours of
Service which were paid prior to each such recomputation, provided that no
such reduction shall reduce the Member's postponed retirement allowance
below the amount of postponed retirement allowance payable to the Member
immediately prior to the recomputation of such retirement allowance.
131
Page 12
4.03 Standard Early Retirement Allowance
(a) Eligibility - A Member who has not reached his or her Normal Retirement
Date but has, prior to his or her termination of employment reached the
55th anniversary of his or her birth and completed 10 years of Eligibility
Service, is eligible to retire on a standard early retirement allowance on
the last day of the calendar month in which the Member terminates
employment, which date shall be the Member's Early Retirement Date.
(b) Benefit - Except as hereinafter provided and prior to adjustment in
accordance with Sections 4.06(a) and 4.07(b) the standard early retirement
allowance shall be an allowance deferred to commence on the first day of
the calendar month next following the Member's Normal Retirement Date and
shall be equal to the Member's Accrued Benefit earned up to his or her
Early Retirement Date, computed on the basis of his or her Benefit
Service, Final Average Compensation and Social Security Benefit as of his
or her Early Retirement Date, with the Social Security Benefit determined
on the assumption that the Member had no earnings after his or her Early
Retirement Date. The Member may, however, elect to receive an early
retirement allowance commencing on the first day of the calendar month
next following his or her Early Retirement Date or on the first day of any
calendar month before his or her Normal Retirement Date specified in his
or her later request therefor in a reduced amount which, prior to
adjustment in accordance with Sections 4.06(a) and 4.07(b), shall be equal
to his or her Accrued Benefit, reduced by 1/3 of 1 percent per month for
each month by which the commencement date of his or her retirement
allowance precedes his or her Normal Retirement Date.
132
Page 13
4.04 Disability Retirement Allowance
(a) Eligibility - A Member who has reached the 50th anniversary of his or her
birth and completed fifteen years of Eligibility Service, who incurs a
Total and Permanent Disability, is eligible to retire on a disability
retirement allowance on the last day of the calendar month as of which the
Member is determined to be so disabled by the Company based on a qualified
medical evidence.
(b) Benefit - The disability retirement allowance shall commence on the first
day of the calendar month next following the date the Member meets the
eligibility requirements in paragraph (a) above and, prior to the Member's
Normal Retirement Date, shall be equal to his or her Accrued Benefit
earned up to his or her date of disability, computed on the basis of his
or her Benefit Service, Final Average Compensation and Social Security
Benefit as of his or her date of disability, with the Social Security
Benefit determined on the basis of the Federal Social Security Act as in
effect on the Member's date of disability. Notwithstanding the preceding
sentence, if a Member is awarded a Public Disability Benefit, the
disability retirement allowance payable prior to his or her Normal
Retirement Date shall be reduced by the amount of the Company-provided
Public Disability Benefit. On and after the first day of the calendar
month next following the Member's Normal Retirement Date, the disability
retirement allowance shall be adjusted, if applicable, in accordance with
Sections 4.06(a) and 4.06(b).
4.05 Vested Benefit
(a) Eligibility - A Member shall be vested in, and have a nonforfeitable right
to, his or her Accrued Benefit upon completion of five years of
Eligibility Service or, if the Member terminated employment on or after
January 1, 1993, on his or her date of termination, if earlier.
133
Page 14
If such Member's services are subsequently terminated for reasons other
than death or early retirement prior to his or her Normal Retirement Date,
he or she shall be entitled to a vested benefit under the provisions of
this Section 4.05.
(b) Benefit - Prior to adjustment in accordance with Sections 4.06(a) and
4.07(a), the vested benefit payable to a Member shall be a benefit
deferred to commence on the first day of the calendar month next following
the former Member's Normal Retirement Date and shall be equal to 1.75% of
his or her Final Average Compensation multiplied by his or her years of
Benefit Service, not in excess of 40 years, minus the lesser of:
(i) 1.25% of the Member's Social Security Benefit multiplied by his or
her years of Benefit Service, not in excess of 40 years; or
(ii) 50% of the Member's Social Security Benefit multiplied by a
fraction, the numerator of which is the number of years of Benefit
Service to date of termination and the denominator of which is the
number of years of Benefit Service the Member would have had, had he
or she continued in service to his or her Normal Retirement Date.
The Social Security Benefit shall be determined on the assumption that the
Member continued in service to his or her Normal Retirement Date at the
Member's rate of compensation in effect as of his or her date of
termination.
On or after the date on which the former Member shall have reached the
55th anniversary of his or her birth, he or she may elect to receive a
benefit commencing on the first day of any calendar
134
Page 15
month next following the 55th anniversary of his or her birth and prior to
his or her Normal Retirement Date as specified in his or her request
therefor, after receipt by the Retirement Committee of written application
therefor made by the former Member and filed with the Retirement
Committee. Upon such earlier payment, the vested benefit otherwise payable
shall be reduced by 1/180th for each month up to 60 months by which the
commencement date of such payments precedes his or her Normal Retirement
Date and further reduced by 1/360th for each such month in excess of 60
months.
4.06 Forms of Benefit Payment after Retirement
(a) Automatic Forms of Payment
(i) Automatic Joint and Survivor Annuity - If a Member or former Member
who is married on his or her Annuity Starting Date has not made an
election of an optional form of payment as provided in Section
4.06(b), the retirement allowance or vested benefit payable to such
Member or former Member commencing on his or her Annuity Starting
Date shall automatically be adjusted to provide (A) a reduced
benefit payable to the Member or former Member during his or her
life equal to his or her benefit otherwise payable without optional
modification computed in accordance with Section 4.01, 4.02, 4.03,
4.04 or 4.05, as the case may be, multiplied by the appropriate
factor contained in Table 1 of Schedule I and (B) a benefit payable
after his or her death to his or her surviving spouse equal to 50%
of the reduced benefit payable to the former Member.
(ii) Automatic Life Annuity - If a Member or former Member is not married
on his or her Annuity Starting Date, the retirement allowance or
vested benefit computed in accordance
135
Page 16
with Section 4.01, 4.02, 4.03, 4.04 or 4.05, as the case may be,
shall be paid to the Member or former Member in the form of a
lifetime benefit payable during his or her own lifetime with no
further benefit payable to anyone after his or her death, unless the
Member or former Member is eligible for and makes an election of an
optional form of payment under Section 4.06(b).
(b) Optional Forms of Payment
(i) Life Annuity Option - Any Member or former Member who retires or
terminates employment with the right to a retirement allowance or
vested benefit, may elect, in accordance with the provisions of
Section 4.06(d), to provide that the retirement allowance payable to
him or her under Section 4.01, 4.02, 4.03, or 4.04 or the vested
benefit payable to him or her under Section 4.05 shall be in the
form of a lifetime benefit payable during his or her own lifetime
with no further benefit payable to anyone after his or her death.
(ii) Contingent Annuity Option - Any Member or former Member who retires
or terminates employment with the right to a retirement allowance in
accordance with the provisions of Section 4.01, 4.02 or 4.03 may
elect, in accordance with provisions of Section 4.06(d), to convert
the benefit otherwise payable to him or her without optional
modification under Section 4.01, 4.02 or 4.03, as the case may be,
into one of the following alternative options in order to provide
that after his or her death, a lifetime benefit shall be payable to
the person who, when the option became effective, was designated by
him or her to be his or her contingent annuitant. The optional
benefit elected shall be the Equivalent Actuarial
136
Page 17
Value of the retirement allowance otherwise payable without optional
modification under Section 4.01, 4.02 or 4.03.
Option 1 - A reduced retirement allowance payable during the
Member's or former Member's life with the provision that after his
or death a benefit equal to 100% of his or her reduced retirement
allowance shall be paid during the life of, and to, his or her
surviving contingent annuitant.
Option 2 - A reduced retirement allowance payable during the
Member's or former Member's life with the provision that after his
or her death a benefit equal to 50% of his or her reduced retirement
allowance shall be paid during the life of, and to, his or her
surviving contingent annuitant.
(d) Election of Options - A Member or former Member may, subject to the
provisions of this Section 4.06(d), elect to receive his or her retirement
allowance or vested benefit in the optional form of payment described in
Section 4.06(b)(i) or, in the case of a Member who retires under the
provisions of Section 4.01, 4.02 or 4.03, in one of the optional forms of
payment described in Section 4.06(b)(ii), in lieu of the automatic forms
of payment described in Section 4.06(a). Notwithstanding the preceding
sentence, a Member who retired on a disability retirement allowance may
only elect an optional form of payment to take effect on the first day of
the calendar month next following his or her Normal Retirement Date. A
married Member's or a married former Member's election of a Life Annuity
form of payment under Section 4.06(b)(i) or any optional form of payment
under Section 4.06(b)(ii), which does not provide for monthly payments to
his or
137
Page 18
her spouse for life after the Member's or former Member's death, in an
amount equal to at least 50% but not more than 100% of the monthly amount
payable under that form of payment to the Member or former Member and
which is not of Equivalent Actuarial Value to the Automatic Joint and
Survivor Annuity described in Section 4.06(a)(i), shall be effective only
with Spousal Consent; provided that such Spousal Consent to the election
has been received by the Retirement Committee.
4.07 Survivor's Benefit Applicable Before the Annuity Starting Date
(a) Automatic Pre-Retirement Spouse's Benefit
(i) Automatic Pre-Retirement Spouse's Benefit applicable before
termination of employment - The surviving spouse of a Member who has
completed 5 years of Eligibility Service or who is receiving a
disability retirement allowance under Section 4.04 shall
automatically receive a benefit payable under the automatic
Pre-Retirement Spouse's Benefit of this Section 4.07(a)(i) in the
event said Member should die after the effective date of coverage
hereunder and before termination of employment (or Normal Retirement
Date, in the case of a Member receiving a disability retirement
allowance). The benefit payable to the Member's spouse shall be
equal to the benefit the Member's spouse would have received if the
retirement allowance or vested benefit the Member was entitled to at
his or her date of death had commenced as of the month next
following the month in which his or her Normal Retirement Date would
have occurred (or the month next following the month in which the
Member's date of death occurred, if later) in the form of the
Automatic Joint and Survivor Annuity under Section 4.06(a)(i). Such
benefit shall be payable for the life of the spouse commencing on
the first day of the calendar month next following what would have
been the Member's Normal Retirement Date (or next following the
month in
138
Page 19
which the Member's date of death occurred, if later). However, the
Member's spouse may elect, by written application filed with the
Retirement Committee, to have payments begin as of the first day of
any calendar month after the date the former Member would have
reached the 55th anniversary of his or her birth; provided, however,
if the Member dies while receiving a disability retirement allowance
under Section 4.04, payments begin under this automatic
Pre-Retirement Spouse's Benefit as of the first day of the month
following the Member's death.
If payment of the automatic Pre-Retirement Spouse's Benefit
commences prior to what would have been the Member's Normal
Retirement Date, the amount of such benefit payable to the spouse
shall be based on (i) the standard early retirement allowance or
vested benefit to which the Member would have been entitled, had the
Member elected to have payments commence to himself or herself on
such earlier date in accordance with the provisions of Section
4.03(b) or Section 4.05(b), or in the case of a Member who dies
while receiving a disability retirement allowance under Section
4.04, the disability retirement allowance the Member was receiving
on his date of death.
Coverage hereunder shall be applicable to a married Member in active
service who has satisfied the eligibility requirements for a
retirement allowance under Section 4.01(a), 4.02(a), 4.03(a) or
4.04(a) or a vested benefit under Section 4.05(a) and shall become
effective on the date the Member marries and shall cease on the
earlier of (i) the date such active Member's marriage is legally
dissolved by a divorce decree or (ii) the date such active Member's
spouse dies.
139
Page 20
(ii) Automatic Pre-Retirement Spouse's Benefit applicable upon
termination of employment - In the case of a Member or former Member
who is married and entitled to a standard early retirement allowance
under Section 4.03 or a vested benefit under Section 4.05, the
provisions of this Section 4.07(a)(ii) shall apply to the period
between the date his or her services are terminated or the date, if
later, the Member or former Member is married and his or her Annuity
Starting Date, or other cessation of coverage as later specified in
this Section 4.07(a)(ii).
In the event of a married Member's or former Member's death during
any period in which these provisions have not been waived or revoked
by the Member or former Member and his or her spouse, the benefit
payable to the Member's or former Member's spouse shall be equal to
50% of the standard early retirement allowance or vested benefit the
Member or former Member would have received as of the month next
following the month in which his or her Normal Retirement Date would
have occurred if he or she had elected to receive such benefit in
the form of the Automatic Joint and Survivor Annuity under Section
4.06(a).
The spouse's benefit shall be payable for the life of the spouse
commencing on the first day of the calendar month next following
what would have been the Member's or former Member's Normal
Retirement Date. However, the Member's or former Member's spouse may
elect, by written application filed with the Retirement Committee,
to have payments begin as of the first day of any calendar month
after the date the Member or former
140
Page 21
Member would have reached the 55th anniversary of his or her birth
(or his or her date of death, if later). If the Member's or former
Member's spouse elects to commence payment of this automatic
Pre-Retirement Spouse's Benefit prior to what would have been the
Member's or former Member's Normal Retirement Date, the amount of
such benefit payable to the spouse shall be based on the standard
early retirement allowance or vested benefit to which the Member or
former Member would have been entitled, had the Member or former
Member elected to have payments commence to himself or herself on
such earlier date in accordance with the provisions of Section
4.03(b) or Section 4.05(b).
However, if a Member or former Member had elected Option 1 under
Section 4.06(b)(ii) within the 90-day period preceding his or her
Annuity Starting Date, with his or her spouse as contingent
annuitant, the amount of benefit payable to the spouse shall be
based on the provisions of Option 1, in lieu of the provisions of
this Section 4.07(a)(ii).
The vested benefit payable to a former Member whose spouse is
covered under this Section 4.07(a)(ii) or, if applicable, the
benefit payable to his or her spouse upon his or her death shall be
reduced by the applicable percentages shown below. Such reduction
shall apply to each month during which coverage is in effect for at
least one day; provided, however, no reduction shall be made with
respect to any period before the later of (1) the date the
Retirement Committee furnishes the former Member the notice of his
or her right to waive the automatic Pre-Retirement Spouse's Benefit
or (2) the commencement of the election period specified in Section
4.07(b) below.
141
Page 22
ANNUAL REDUCTION FOR SPOUSE'S COVERAGE
AFTER TERMINATION OF EMPLOYMENT
OTHER THAN RETIREMENT
Age Reduction
--- ---------
Less than 40 1/10 of 1% per year
40 but prior to 50 2/10 of 1% per year
50 but prior to 55 3/10 of 1% per year
55 but prior to 60 5/10 of 1% per year
60 but less than 65 1% per year
(b) The Retirement Committee shall furnish to each former Member a written
explanation which describes (i) the terms and conditions of the automatic
Pre-Retirement Spouse's Benefit, (ii) the former Member's right to make,
and the effect of, an election to waive the automatic Pre-Retirement
Spouse's Benefit, (iii) the rights of the or former Member's spouse, and
(iv) the right to make, and the effect of, a revocation of such a waiver.
Such written explanation shall be furnished to each former Member before
the first anniversary of the date he or she terminated service, and shall
be furnished to such Member even though he or she is not married.
(c) The period during which the former Member may make an election to waive
the automatic Pre-Retirement Spouse's Benefit provided under Section
4.07(a)(ii) shall begin not later than the date his or her employment
terminates and end on his or her Annuity Starting Date or, if earlier, his
or her date of death. Any waiver, revocation or re-election of the
automatic Pre-Retirement Spouse's Benefit shall be made on a form provided
by the Retirement Committee and any waiver or revocation shall require
Spousal Consent. If, upon termination of employment, the former Member
waives coverage hereunder in accordance with administrative procedures
established by the
142
Page 23
Retirement Committee for all Members similarly situated, such waiver shall
be effective as of the former Member's Severance Date. Any later
re-election or revocation shall be effective when the completed form is
received by the Retirement Committee. If a former Member dies during the
period when a waiver is in effect, there shall be no benefits payable to
his or her spouse under the provisions of this Section 4.07.
Except as described above in the event of a waiver or revocation, coverage
under Section 4.07(a)(ii) shall cease to be effective upon a Member's or
former Member's Annuity Starting Date, or upon the date a Member's or
former Member's marriage is legally dissolved by a divorce decree, or upon
the death of the spouse, whichever event shall first occur.
(d) Any election made under Section 4.07 (including any waiver or revocation
thereof) shall be made on a form approved by and filed with the Retirement
Committee.
4.10 Payment of Benefits
(a) Unless otherwise provided under an optional benefit elected pursuant to
Section 4.06, the survivor's benefits available under Section 4.07 or the
provisions of Section 4.10(e)(ii), all retirement allowances, vested
benefits or other benefits payable will be paid in monthly installments
for each month beginning with (i) the month next following the month in
which the Member has reached his or her Normal Retirement Date and has
retired from active service, (ii) the month next following the month in
which a Member has reached his or her Postponed Retirement Date and
retired from active service, (iii) the month next following the month in
which a Member or former Member files a proper application requesting
commencement of his or her vested benefit, standard early
143
Page 24
retirement allowance or disability retirement allowance, or (iv) the month
in which benefits under an optional benefit under Section 4.06 or the
survivor's benefits under Section 4.07 become payable, whichever is
applicable. Such monthly installments shall cease with the payment for the
month in which the recipient dies. In no event shall a retirement
allowance or vested benefit be payable to a Member who continues in or
resumes active service with the Company or an Associated Company for any
period between his or her Normal Retirement Date and Postponed Retirement
Date, except as provided in Sections 4.02(d) and 4.10(e).
(b) In any case, a lump sum payment equal to the retirement allowance or
vested benefit payable under Section 4.01, 4.02, 4.03, 4.04 or 4.05 or the
pre-retirement spouse's benefit payable under Section 4.07(a) multiplied
by the appropriate factor contained in Table 3 of Schedule I shall be made
in lieu of any retirement allowance or vested benefit payable to a Member
or former Member or any pre-retirement spouse's benefit payable to a
spouse of a Member or a former Member, if the lump sum present value of
such benefit amounts to $3,500 ($5,000 effective January 1, 1998) or less.
For distributions prior to September 1, 1995, however, in no event shall
that adjustment factor produce a lump sum that is less than the amount
determined by using the interest rate assumption used by the Pension
Benefit Guaranty Corporation for valuing benefits for determining lump sum
payments under single employer plans that terminate on January 1 of the
Plan Year in which the Annuity Starting Date occurs. For distributions on
and after September 1, 1995, in no event shall that adjustment factor
produce a lump sum that is less than the amount determined by using the
"Applicable Mortality Table" (as defined in Code Section
417(e)(A)(ii)(II)) and the interest rate on 30-year Treasury Securities
for December of the year preceding the Plan Year in which the Annuity
Starting Date occurs. The lump sum payment shall be made as soon as
administratively
144
Page 25
practicable following the date the Member has terminated employment or
died, but in any event prior to the date his or her benefit payment would
have otherwise commenced.
4.11 Reemployment of former Member or retired Member
(b) Optional forms of pension benefits
If the Member is reemployed, any previous election of an optional benefit
under Section 4.06 or a survivor's benefit under Section 4.07 shall be
revoked.
(c) Benefit payments at subsequent termination or retirement
(i) In accordance with the procedure established by the Retirement
Committee on a basis uniformly applicable to all Members similarly
situated, upon the subsequent retirement of a Member in service
after his or her Normal Retirement Date, payment of such Member's
retirement allowance shall resume no later than the third month
after the final month during the reemployment period in which he or
she is credited with at least 40 Hours of Service.
(ii) Upon the subsequent retirement or termination of employment of a
retired or former Member, the Retirement Committee shall, in
accordance with rules uniformly applicable to all Members similarly
situated, determine the amount of vested benefit or retirement
allowance which shall be payable to such Member at such subsequent
retirement or termination. Such vested benefit or retirement
allowance shall be reduced by an amount of Equivalent Actuarial
Value to the benefits, if any, other than disability retirement
allowance payments, he or she received before the earlier of the
date of his or her
145
Page 26
restoration to service or his or her Normal Retirement Date,
provided that no such reduction shall reduce such retirement
allowance or vested benefit below the original amount of retirement
allowance or vested benefit earned but not received or retirement
allowance or vested benefit previously received by such Member in
accordance with the terms of the Plan in effect during such previous
employment, adjusted to reflect the election of any survivor's
benefits pursuant to Section 4.07(a)(ii).
4.16 Minimum Adjusted Benefit
(a) The adjustment factor applied to a retirement allowance or vested benefit
payable to any Member or former Member who terminates employment on or
after October 1, 1985, or to the Beneficiary of such Member or former
Member, shall not result in a retirement allowance or vested benefit which
is less than the adjusted retirement allowance or vested benefit which
would have been payable to such Member, former Member or Beneficiary under
the provisions of the Vanillin Plan as in effect on September 30, 1985
based on Benefit Service rendered up to and including September 30, 1985.
(b) The adjustment factor applied to a retirement allowance or vested benefit
payable to any Member or former Member who terminates employment on or
after January 1, 1989, or to the Beneficiary of such Member or former
Member, shall not result in a retirement allowance or vested benefit which
is less than the adjusted retirement allowance or vested benefit which
would have been payable to such Member, former Member or Beneficiary under
the provisions of the Vanillin Plan as in effect on December 31, 1988
based on Benefit Service rendered up to and including December 31, 1988.
146
APPENDIX D
147
RETIREMENT PLAN FOR SALARIED EMPLOYEES OF RAYONIER INC.
APPENDIX D
This Appendix D, effective as of September 1, 1995, is applicable with respect
to employees or former employees of Southern Wood Piedmont Company who are
entitled to a pension benefit under the Southern Wood Piedmont Company Pension
Plan for Non-Union Hourly Employees as of August 31, 1995 and their spouses and
beneficiaries. This Appendix D constitutes an integral part of the Plan and sets
forth the particulars concerning:
(i) The definition of "Accrued Benefit", "Annuity Starting Date",
"Equivalent Actuarial Value", "Normal Retirement Date", "Public
Disability Benefit", "Southern Wood Plan", and "Total and
Permanent Disability."
(ii) The determination of Eligibility Service as referred to in
Section 2.01 of the Plan.
(iii) The determination of Benefit Service as referred to in Section
2.02 of the Plan.
(iv) The eligibility requirements for membership as referred to in
Article 3 of the Plan.
(v) The determination of the amount of normal retirement allowance
as referred to in Section 4.01(b) of the Plan.
(vi) The determination of the amount of postponed retirement
allowance as referred to in Section 4.02(b) and (c) of the Plan.
(vii) The eligibility requirements for the standard early retirement
allowance referred to in Section 4.03(a) of the Plan.
(viii) The determination of the amount of the standard early retirement
allowance referred to in Section 4.03(b) of the Plan.
(ix) The eligibility requirements for a disability retirement
allowance.
(x) The determination of the amount of a disability retirement
allowance.
148
Page 2
(xi) The eligibility requirements for a vested benefit as referred to
in Section 4.05(a) of the Plan.
(xii) The determination of the amount of vested benefit as referred to
in Section 4.05(b) of the Plan.
(xiii) The forms of benefit payment after retirement as referred to in
Section 4.06 of the Plan.
(xiv) The survivor's benefit applicable before retirement as referred
to in Section 4.07 of the Plan.
(xv) The provisions for payment of benefits as referred to in Section
4.10(a) of the Plan.
(xvi) The determination of the amount of an automatic lump sum payment
as referred to in Section 4.10(b) of the Plan.
(xvii) The effect of reemployment on the election of an optional form
of benefit as referred to in Section 4.11(b) of the Plan.
(xviii) The determination of the amount of benefit payable to a
reemployed Member upon his or her subsequent retirement as
referred to in Section 4.11(c) of the Plan.
(xix) The minimum adjusted benefit payable under the Plan.
149
Page 3
ARTICLE 1 - DEFINITIONS
1.01 Accrued Benefit shall mean the accrued benefit under the Southern Wood
Plan as of August 31, 1995.
1.03 Annuity Starting Date shall mean the first day of the first period for
which an amount is due on behalf of a Member or former Member as an
annuity or any other form of payment under the Plan; provided, however,
that in the case of a Member who retires under Section 4.04, Annuity
Starting Date shall mean his or her Normal Retirement Date.
1.17 Equivalent Actuarial Value shall mean equivalent value of a benefit under
the Plan determined on the basis of the applicable factors set forth in
Schedule I, except as otherwise specified in the Plan. In any other event,
Equivalent Actuarial Value shall be determined on the same actuarial basis
utilized to compute the factors set forth in Schedule I.
1.26 Normal Retirement Date shall mean the last day of the calendar month in
which the employee or former employee attains age 65, which is his Normal
Retirement Age.
1.44 Public Disability Benefit shall mean disability payments or lump sum
payments under any workers' compensation or occupational diseases law,
except fixed statutory payments for the loss of any bodily member and
except lump-sum payments for disfigurement. The amount of the deduction to
be made from monthly disability retirement allowances in respect to any
lump-sum payments under any workers' compensation or occupational diseases
law shall be determined by
150
Page 4
dividing the lump-sum payment by the maximum number of months or fractions
thereof in the period provided by statute or regulation, provided the
amount of such deduction shall be limited to the amount of monthly
disability retirement allowance and shall be applicable for the number of
months and fractions thereof in such maximum period.
1.45 Southern Wood Plan shall mean the Southern Wood Piedmont Company Pension
Plan for Non-Union Hourly Employees as in effect on the date specified in
the Plan.
1.46 Total and Permanent Disability shall mean the total and permanent
disablement of a Member if (a) through some unintentional cause, he or she
has been totally disabled by bodily injury or disease or by mental
derangement so as to be prevented thereby from engaging in any regular
occupation or employment for remuneration or profit, and (b) such total
disability is expected to be permanent and continuous during the remainder
of his or her life, provided such disability is not incurred in service in
the armed forces of any country, each as determined by the Company on the
basis of qualified medical evidence.
151
Page 5
ARTICLE 2 - SERVICE
2.01 Eligibility Service
(a) Eligibility Service on and after September 1, 1995: Except as otherwise
provided in this Article 2, all uninterrupted employment with the Company
or with an Associated Company rendered on and after September 1, 1995 and
prior to the date such Member's employment terminates, or his Normal
Retirement Date, if earlier, shall be recognized as Eligibility Service
for all Plan purposes. Notwithstanding the foregoing, with respect to any
calendar year in which the employee completes at least 1,000 Hours of
Service there shall be included in his or her Eligibility Service a full
year of Eligibility Service.
(b) Hours of Service - "Hours of Service" shall include hours worked and hours
for which a person is compensated by the Company or by an Associated
Company for the performance of duties for the Company or an Associated
Company, although he or she has not worked (such as: paid holidays, paid
vacation, paid sick leave, paid time off and back pay for the period for
which it was awarded), and each hour shall be computed as only one hour,
even though he or she is compensated at more than the straight time rate.
This definition of "Hours of Service" shall be applied in a consistent and
non-discriminatory manner in compliance with 29 Code of Federal
Regulations, Section 2530.200b-2(b) and (c) as promulgated by the United
States Department of Labor and as may hereafter be amended.
(c) Certain absences to be recognized as Eligibility Service - Except as
otherwise indicated in this Article 2, the period of any leave of absence
granted in respect of service with the armed forces of
152
Page 6
the United States shall be recognized as Eligibility Service under the
Plan and shall not be considered as a break in service, provided the
employee shall have returned to the service of the Company or an
Associated Company in accordance with reemployment rights under applicable
law and shall have complied with all of the requirements of such law as to
reemployment. If an employee fails to return to active employment upon
expiration of the approved absence set forth in the prior sentence, such
period of approved absence shall not be considered as Eligibility Service
under the Plan.
(d) Breaks in Service - If an employee does not complete more than 500 Hours
of Service in any calendar year, other than the calendar year in which the
employee was hired, he or she shall incur a one-year break in service;
provided that no break in service shall occur unless the employee's
employment with the Company or an Associated Company is terminated. For
purposes of this Section 2.01, the length of an employee's break in
service shall be determined on the following basis:
(i) If the employee completes at least 500 Hours of Service in the
calendar year in which his or her employment terminates, the date
his or her break in service begins shall be the January 1st of the
next following calendar year; otherwise, the date his or her break
in service begins shall be the date on which his or her employment
terminates.
(ii) If the employee completes at least 500 Hours of Service in the
calendar year in which he or she is reemployed, the date his or her
break in service ceases is the January 1st of the calendar year in
which he or she is reemployed; otherwise, the date his or her break
in service ceases is the date on which he or she is reemployed.
153
Page 7
Solely for purposes of determining whether such an employee has incurred a
break in service, hours shall include each Hour of Service for which such
employee would otherwise have been credited under paragraph (a) above were
it not for the employee's absence due to Parental Leave. Hours of Service
credited under the preceding sentence shall not exceed the number of hours
needed to avoid a break in service in the computation period in which the
Parental Leave began, and in any event shall not exceed 501 hours; if no
hours are needed to avoid a break in service in such computation period,
then the provisions of the preceding sentence shall apply as though the
Parental Leave began in the immediately following computation period.
(e) Bridging breaks in service
If an employee has a break in service, except as otherwise provided in
Section 4.11, employment both before and after the employee's absence
shall be immediately recognized as Eligibility Service, subject to the
provisions of this Section 2.01, upon his or her return to the employ of
the Company or an Associated Company.
(f) Eligibility Service prior to September 1, 1995
Notwithstanding any foregoing provisions to the contrary, a Member's
Eligibility Service shall include the "Continuous Service" credited to
such Member under the Southern Wood Plan as of August 31, 1995.
154
Page 8
2.02 Benefit Service
For purposes of determining the amount of a Member's retirement allowance
or vested benefit under this Appendix D, there shall be recognized as
Benefit Service the "Credited Service" credited to such Member under the
Southern Wood Plan as of August 31, 1995.
155
Page 9
ARTICLE 3 - MEMBERSHIP
Any former employee of Southern Wood Piedmont Company who is entitled to a
pension benefit under the Southern Wood Plan as of August 31, 1995 shall become
a Member of the Plan on September 1, 1995, but he or she shall not accrue any
Benefit Service for purposes of this Appendix D after such date, and unless he
or she is employed or reemployed by the Company or an Associated Company, he or
she shall not accrue any Eligibility Service under the Plan after such date.
Such Member, or his or her spouse or beneficiary, shall be eligible for and
shall receive from this Plan benefits in the same amount and payable in
accordance with the same terms as the pension benefit to which he or she was
entitled under the Southern Wood Plan as of August 31, 1995.
156
Page 10
ARTICLE 4 - BENEFITS
4.01 Normal Retirement Allowance
(b) Benefit - Prior to adjustment in accordance with Sections 4.06(a) and
4.07(b), the annual normal retirement allowance payable on a lifetime
basis upon retirement at a Member's Normal Retirement Date shall be equal
to his Accrued Benefit.
4.02 Postponed Retirement Allowance
(b) Benefit - Except as hereinafter provided and prior to adjustment in
accordance with Section 4.06(a) and 4.07(b), the annual postponed
retirement allowance payable on a lifetime basis upon retirement at a
Member's Postponed Retirement Date shall be equal to the annual normal
retirement allowance to which the Member would have been entitled under
Section 4.01(b) had he or she retired on his or her Normal Retirement
Date, increased by an amount which is the Equivalent Actuarial Value of
the monthly payments which would have been payable with respect to each
month in which he or she completed less than 40 Hours of Service. Any
monthly payment determined under this paragraph (b) with respect to any
such month in which he or she completed less than 40 Hours of Service
shall be computed as if the Member had retired on his or her Normal
Retirement Date.
(c) Benefit for Member in Active Service after he or she attains Age 70-1/2 -
In the event a Member's retirement allowance is required to begin under
Section 4.10 while the Member is in active service, the January 1
immediately following the calendar year in which the Member attained age
70-1/2 shall be the Member's Annuity Starting Date for purposes of this
Article 4 and the
157
Page 11
Member shall receive a postponed retirement allowance commencing on that
January 1 in an amount determined as if he or she had retired on such
date. As of each succeeding January 1 prior to the Member's actual
Postponed Retirement Date and as of his or her actual Postponed Retirement
Date, the Member's retirement allowance shall be reduced by the Equivalent
Actuarial Value of the total payments of his or her postponed retirement
allowance made with respect to each month of continued employment in which
he or she completed at least 40 Hours of Service which were paid prior to
each such recomputation, provided that no such reduction shall reduce the
Member's postponed retirement allowance below the amount of postponed
retirement allowance payable to the Member immediately prior to the
recomputation of such retirement allowance.
4.03 Standard Early Retirement Allowance
(a) Eligibility - A Member who has not reached his or her Normal Retirement
Date but has, prior to his or her termination of employment reached the
62nd anniversary of his or her birth and completed 20 years of Eligibility
Service, is eligible to retire on a standard early retirement allowance on
the last day of the calendar month in which the Member terminates
employment, which date shall be the Member's Early Retirement Date.
(b) Benefit - Except as hereinafter provided and prior to adjustment in
accordance with Sections 4.06(a) and 4.07(b) the standard early retirement
allowance shall be an allowance deferred to commence on the first day of
the calendar month next following the Member's Normal Retirement Date and
shall be equal to the Member's Accrued Benefit. The Member may, however,
elect to receive an early retirement allowance commencing on the first day
of the calendar month next following his or her Early Retirement Date or
on the first day of any calendar month before his or
158
Page 12
her Normal Retirement Date specified in his or her later request therefor
in a reduced amount which, prior to adjustment in accordance with Sections
4.06(a) and 4.07(b), shall be equal to his or her Accrued Benefit, reduced
by 1/180th for each month by which the commencement date of his or her
retirement allowance precedes his or her Normal Retirement Date.
4.04 Disability Retirement Allowance
(a) Eligibility - A Member who has reached the 50th anniversary of his or her
birth and completed fifteen years of Eligibility Service, who incurs a
Total and Permanent Disability, is eligible to retire on a disability
retirement allowance on the last day of the calendar month as of which the
Member is determined to be so disabled by the Company based on a qualified
medical evidence; provided, however, that any Member who on December 31,
1970 was a member of (i) the Pension Agreement entered into as of April 7,
1965 between Southern Wood Piedmont Company and the Oil, Chemical and
Atomic Workers International Union, AFL-CIO, Local 3-116 or (ii) the
Southern Wood Piedmont Company Pension Plan and Trust for Hourly-Paid
Employees at Wilburn, Florida; Jacksonburg, Alabama and Homerville,
Georgia may retire in accordance with the eligibility requirements for a
disability benefit under such plan.
(b) Benefit - The disability retirement allowance shall commence on the first
day of the calendar month next following the date the Member meets the
eligibility requirements in paragraph (a) above and, prior to the Member's
Normal Retirement Date, shall be equal to his or her Accrued Benefit,
without any adjustment. Notwithstanding the preceding sentence, if a
Member is awarded a Public Disability Benefit, the disability retirement
allowance payable prior to his or her Normal Retirement Date shall be
reduced by the amount of the Company-provided Public Disability
159
Page 13
Benefit. On and after the first day of the calendar month next following
the Member's Normal Retirement Date, the disability retirement allowance
shall be adjusted, if applicable, in accordance with Sections 4.06(a) and
4.06(b).
4.05 Vested Benefit
(a) Eligibility - A Member shall be vested in, and have a nonforfeitable right
to, his or her Accrued Benefit upon completion of five years of
Eligibility Service or, if the Member terminated employment on or after
January 1, 1988 but prior to January 1, 1990 for any reason other than
death or retirement, on his or her date of termination, if earlier.
(b) Benefit - Prior to adjustment in accordance with Sections 4.06(a) and
4.07(a), the vested benefit payable to a Member shall be a benefit
deferred to commence on the first day of the calendar month next following
the former Member's Normal Retirement Date and shall be equal to his or
her Accrued Benefit. On or after the date on which the former Member shall
have reached the 62nd anniversary of his or her birth, he or she may elect
to receive a benefit commencing on the first day of any calendar month
following the 62nd anniversary of his or her birth and prior to his or her
Normal Retirement Date as specified in his or her request therefor, after
receipt by the Retirement Committee of written application therefor made
by the former Member and filed with the Retirement Committee. Upon such
earlier payment, the vested benefit otherwise payable shall be reduced by
1/180th for each month by which the commencement date of such payments
precedes his or her Normal Retirement Date.
160
Page 14
4.06 Forms of Benefit Payment after Retirement
(a) Automatic Forms of Payment
(i) Automatic Joint and Survivor Annuity - If a Member or former Member
who is married on his or her Annuity Starting Date has not made an
election of an optional form of payment as provided in Section
4.06(b), the retirement allowance or vested benefit payable to such
Member or former Member commencing on his or her Annuity Starting
Date shall automatically be adjusted to provide (A) a reduced
benefit payable to the Member or former Member during his or her
life equal to his or her benefit otherwise payable without optional
modification computed in accordance with Section 4.01, 4.02, 4.03,
4.04 or 4.05, as the case may be, multiplied by the appropriate
factor contained in Table 1 of Schedule I and (B) a benefit payable
after his or her death to his or her surviving spouse equal to 50%
of the reduced benefit payable to the Member or former Member.
(ii) Automatic Life Annuity - If a Member or former Member is not married
on his or her Annuity Starting Date, the retirement allowance or
vested benefit computed in accordance with Section 4.01, 4.02, 4.03,
4.04 or 4.05, as the case may be, shall be paid to the Member or
former Member in the form of a lifetime benefit payable during his
or her own lifetime with no further benefit payable to anyone after
his or her death, unless the Member or former Member is eligible for
and makes an election of an optional form of payment under Section
4.06(b).
(iii) A married former Member entitled to, but not in receipt of, a
retirement allowance or vested benefit as of August 23, 1984 who
terminated service on or after September 2,
161
Page 15
1974 but before January 1, 1976 may elect, during the period
beginning on August 23, 1984 and ending on his or her Annuity
Starting Date, to have his or her retirement allowance or vested
benefit payable in accordance with the provisions of this Section
4.06(a).
(b) Optional Forms of Payment
(i) Life Annuity Option - Any Member or former Member who retires or
terminates employment with the right to a retirement allowance or
vested benefit may elect, in accordance with the provisions of
Section 4.06(d), to provide that the retirement allowance payable to
him or her under Section 4.01, 4.02, 4.03, or 4.04 or the vested
benefit payable to him or her under Section 4.05 shall be in the
form of a lifetime benefit payable during his or her own lifetime
with no further benefit payable to anyone after his or her death.
(ii) Contingent Annuity Option - Any Member or former Member who retires
or terminates employment with the right to a retirement allowance in
accordance with the provisions of Section 4.01, 4.02 or 4.03 may
elect, in accordance with provisions of Section 4.06(d), to convert
the benefit otherwise payable to him or her without optional
modification under Section 4.01, 4.02 or 4.03, as the case may be,
into one of the following alternative options in order to provide
that after his or her death, a lifetime benefit shall be payable to
the person who, when the option became effective, was designated by
him or her to be his or her contingent annuitant. The optional
benefit elected shall be the Equivalent Actuarial Value of the
retirement allowance otherwise payable without optional modification
under Section 4.01, 4.02 or 4.03.
162
Page 16
Option 1 - A reduced retirement allowance payable during the
Member's or former Member's life with the provision that after his
or death a benefit equal to 100% of his or her reduced retirement
allowance shall be paid during the life of, and to, his or her
surviving contingent annuitant.
Option 2 - A reduced retirement allowance payable during the
Member's or former Member's life with the provision that after his
or her death a benefit equal to 50% of his or her reduced retirement
allowance shall be paid during the life of, and to, his or her
surviving contingent annuitant.
(d) Election of Options - A Member or former Member may, subject to the
provisions of this Section 4.06(d), elect to receive his or her retirement
allowance or vested benefit in the optional form of payment described in
Section 4.06(b)(i) or, in the case of a Member who retires under the
provisions of Section 4.01, 4.02, 4.03 or 4.04, one of the optional forms
of payment described in Section 4.06(b)(ii), in lieu of the automatic
forms of payment described in Section 4.06(a). Notwithstanding the
preceding sentence, a Member who retired on a disability retirement
allowance may only elect an optional form of benefit to take effect on the
first day of the calendar month next following his or her Normal
Retirement Date. A married Member's or a married former Member's election
of a Life Annuity form of payment under Section 4.06(b)(i) or any optional
form of payment under Section 4.06(b)(ii), which does not provide for
monthly payments to his or her spouse for life after the Member's or
former Member's death, in an amount equal to at least 50% but not more
than 100% of the monthly amount payable under that form of payment to the
Member
163
Page 17
or former Member and which is not of Equivalent Actuarial Value to the
Automatic Joint and Survivor Annuity described in Section 4.06(a)(i),
shall be effective only with Spousal Consent; provided that such Spousal
Consent to the election has been received by the Retirement Committee.
4.07 Survivor's Benefit Applicable Before the Annuity Starting Date
(a) Automatic Pre-Retirement Spouse's Benefit
(i) Automatic Pre-Retirement Spouse's Benefit applicable before
termination of employment - The surviving spouse of a Member who has
completed 5 years of Eligibility Service or who is receiving a
disability retirement allowance under Section 4.04 shall
automatically receive a benefit payable under the automatic
Pre-Retirement Spouse's Benefit of this Section 4.07(a)(i) in the
event said Member should die after the effective date of coverage
hereunder and before termination of employment (or Normal Retirement
Date, in the case of a Member receiving a disability retirement
allowance). The benefit payable to the Member's spouse shall be
equal to the benefit the Member's spouse would have received if the
retirement allowance or vested benefit the Member was entitled to at
his or her date of death had commenced as of the month next
following the month in which his or her Normal Retirement Date would
have occurred (or the month next following the month in which the
Member's date of death occurred, if later) in the form of the
Automatic Joint and Survivor Annuity under Section 4.06(a)(i). Such
benefit shall be payable for the life of the spouse commencing on
the first day of the calendar month next following what would have
been the Member's Normal Retirement Date (or next following the
month in which the Member's date of death occurred, if later).
However, the Member's spouse may elect, by written application filed
with the Retirement Committee, to have payments begin
164
Page 18
as of the first day of any calendar month after the date the former
Member would have reached the 62nd anniversary of his or her birth;
provided, however, if the Member dies while receiving a disability
retirement allowance under Section 4.04, payments begin under this
automatic Pre-Retirement Spouse's Benefit as of the first day of the
month following the Member's death.
If payment of the automatic Pre-Retirement Spouse's Benefit
commences prior to what would have been the Member's Normal
Retirement Date, the amount of such benefit payable to the spouse
shall be based on (i) the standard early retirement allowance or
vested benefit to which the Member would have been entitled, had the
Member elected to have payments commence to himself or herself on
such earlier date in accordance with the provisions of Section
4.03(b) or Section 4.05(b), or in the case of a Member who dies
while receiving a disability retirement allowance under Section
4.04, the disability retirement allowance the Member was receiving
on his date of death.
Coverage hereunder shall be applicable to a married Member in active
service who has satisfied the eligibility requirements for a
retirement allowance under Section 4.01(a), 4.02(a), 4.03(a) or
4.04(a) or vested benefit under Section 4.05(a) and shall become
effective on the date the Member marries and shall cease on the
earlier of (i) the date such active Member's marriage is legally
dissolved by a divorce decree or (ii) the date such active Member's
spouse dies.
165
Page 19
(ii) Automatic Pre-Retirement Spouse's Benefit applicable upon
termination of employment - In the case of a Member or former Member
who is married and entitled to a standard early retirement allowance
under Section 4.03 or a vested benefit under Section 4.05, the
provisions of this Section 4.07(a)(ii) shall apply to the period
between the date his or her services are terminated or the date, if
later, the Member or former Member is married and his or her Annuity
Starting Date, or other cessation of coverage as later specified in
this Section 4.07(a)(ii).
In the event of a married Member's or former Member's death during
any period in which these provisions have not been waived or revoked
by the Member or former Member and his or her spouse, the benefit
payable to the Member's or former Member's spouse shall be equal to
50% of the standard early retirement allowance or vested benefit the
Member or former Member would have received as of the month next
following the month in which his or her Normal Retirement Date would
have occurred if he or she had elected to receive such benefit in
the form of the Automatic Joint and Survivor Annuity under Section
4.06(a).
The spouse's benefit shall be payable for the life of the spouse
commencing on the first day of the calendar month next following
what would have been the Member's or former Member's Normal
Retirement Date. However, the Member's or former Member's spouse may
elect, by written application filed with the Retirement Committee,
to have payments begin as of the first day of any calendar month
after the date the Member or former Member would have reached the
62nd anniversary of his or her birth (or his or her date of
166
Page 20
death, if later). If the Member's or former Member's spouse elects
to commence payment of this automatic Pre-Retirement Spouse's
Benefit prior to what would have been the Member's or former
Member's Normal Retirement Date, the amount of such benefit payable
to the spouse shall be based on the standard early retirement
allowance or vested benefit to which the Member or former Member
would have been entitled, had the Member or former Member elected to
have payments commence to himself or herself on such earlier date in
accordance with the provisions of Section 4.03(b) or Section
4.05(b).
However, if a Member or former Member has elected Option 1 under
Section 4.06(b)(ii) within the 90-day period preceding his or her
Annuity Starting Date, with his or her spouse as contingent
annuitant, the amount of benefit payable to the spouse shall be
based on the provisions of Option 1, in lieu of the provisions of
this Section 4.07(a)(ii).
The vested benefit payable to a former Member whose spouse is
covered under this Section 4.07(a)(ii) or, if applicable, the
benefit payable to his or her spouse upon his or her death shall be
reduced by the applicable percentages shown below. Such reduction
shall apply to each month during which coverage is in effect for at
least one day; provided, however, no reduction shall be made with
respect to any period before the later of (1) the date the
Retirement Committee furnishes the former Member the notice of his
or her right to waive the automatic Pre-Retirement Spouse's Benefit
or (2) the commencement of the election period specified in Section
4.07(b) below.
167
Page 21
ANNUAL REDUCTION FOR SPOUSE'S COVERAGE
AFTER TERMINATION OF EMPLOYMENT
OTHER THAN RETIREMENT
Age Reduction
--- ---------
Less than 40 1/10 of 1% per year
40 but prior to 50 2/10 of 1% per year
50 but prior to 55 3/10 of 1% per year
55 but prior to 60 5/10 of 1% per year
60 but less than 65 1% per year
(b) The Retirement Committee shall furnish to each former Member a written
explanation which describes (i) the terms and conditions of the automatic
Pre-Retirement Spouse's Benefit, (ii) the former Member's right to make,
and the effect of, an election to waive the automatic Pre-Retirement
Spouse's Benefit, (iii) the rights of the former Member's spouse, and (iv)
the right to make, and the effect of, a revocation of such a waiver. Such
written explanation shall be furnished to each former Member before the
first anniversary of the date he or she terminated service, and shall be
furnished to such former Member even though he or she is not married.
The period during which the former Member may make an election to waive
the automatic Pre-Retirement Spouse's Benefit provided under Section
4.07(a)(ii) shall begin not later than the date his or her employment
terminates and end on his or her Annuity Starting Date or, if earlier, his
or her date of death. Any waiver, revocation or re-election of the
automatic Pre-Retirement Spouse's Benefit shall be made on a form provided
by the Retirement Committee and any waiver or revocation shall require
Spousal Consent. If, upon termination of employment, the former Member
waives coverage hereunder in accordance with administrative procedures
established by the Retirement Committee for all Members similarly
situated, such waiver shall be effective as of the
168
Page 22
former Member's Severance Date. Any later re-election or revocation shall
be effective on the first day of the month coincident with or next
following the date the completed form is received by the Retirement
Committee. If a former Member dies during the period after a waiver is in
effect, there shall be no benefits payable to his or her spouse under the
provisions of this Section 4.07 unless an effective election under Section
4.07(b) is in effect.
Except as described above in the event of a waiver or revocation, coverage
under Section 4.07(a)(ii) shall cease to be effective upon a Member's or
former Member's Annuity Starting Date, or upon the date a Member's or
former Member's marriage is legally dissolved by a divorce decree, or upon
the death of the spouse, whichever event shall first occur.
(c) Any election made under Section 4.07 (including any waiver or revocation
thereof) shall be made on a form approved by and filed with the Retirement
Committee.
(d) Notwithstanding the provisions of Section 4.07(a), a Member or former
Member whose employment terminated on of after January 1, 1976 and prior
to August 23, 1984 and who is entitled to a retirement allowance or vested
benefit pursuant to the provisions of Section 4.03 or 4.05, but who is not
yet in receipt thereof, may elect, on or after August 23, 1984 and prior
to the commencement of such retirement allowance or vested benefit, to
have the provisions or Section 4.07(a)(ii) apply to him or her.
169
Page 23
4.10 Payment of Benefits
(a) Unless otherwise provided under an optional benefit elected pursuant to
Section 4.06, the survivor's benefits available under Section 4.07 or the
provisions of Section 4.10(e)(ii), all retirement allowances, vested
benefits or other benefits payable will be paid in monthly installments
for each month beginning with (i) the month next following the month in
which the Member has reached his or her Normal Retirement Date and has
retired from active service, (ii) the month next following the month in
which a Member has reached his or her Postponed Retirement Date and has
retired from service, (iii) the month next following the month in which a
Member or former Member, files a proper application requesting
commencement of his or her vested benefit, standard early retirement
allowance or disability retirement allowance, or (iv) the month in which
benefits under an optional benefit under Section 4.06 or the survivor's
benefits under Section 4.07 become payable, whichever is applicable. Such
monthly installments shall cease with the payment for the month in which
the recipient dies. In no event shall a retirement allowance or vested
benefit be payable to a Member who continues in or resumes active service
with the Company or an Associated Company for any period between his or
her Normal Retirement Date and Postponed Retirement Date, except as
provided in Sections 4.02(d) and 4.10(e).
(b) In any case, a lump sum payment equal to the retirement allowance or
vested benefit payable under Section 4.01, 4.02, 4.03, 4.04 or 4.05 or the
pre-retirement spouse's benefit payable under Section 4.07(a) multiplied
by the appropriate factor contained in Table 3 of Schedule I shall be made
in lieu of any retirement allowance or vested benefit payable to a Member
or former Member or any pre-retirement spouse's benefit payable to a
spouse of a Member or a former Member, if the lump sum present value of
such benefit amounts to $3,500 ($5,000 effective January 1, 1998) or less.
170
Page 24
For distributions prior to September 1, 1995, however, in no event shall
that adjustment factor produce a lump sum that is less than the amount
determined by using the interest rate assumption used by the Pension
Benefit Guaranty Corporation for valuing benefits for determining lump sum
payments under single employer plans that terminate on January 1 of the
Plan Year in which the Annuity Starting Date occurs. For distributions on
and after September 1, 1995, in no event shall that adjustment factor
produce a lump sum that is less than the amount determined by using the
"Applicable Mortality Table" (as defined in Code Section
417(e)(A)(ii)(II)) and the interest rate on 30-year Treasury Securities
for December of the year preceding the Plan Year in which the Annuity
Starting Date occurs. The lump sum payment shall be made as soon as
administratively practicable following the date the Member has terminated
employment or died, but in any event prior to the date his or her benefit
payment would have otherwise commenced.
4.11 Reemployment of former Member or retired Member
(b) Optional forms of pension benefits
If the Member is reemployed, any previous election of an optional benefit
under Section 4.06 or a survivor's benefit under Section 4.07 shall be
revoked.
(c) Benefit payments at subsequent termination or retirement
(i) In accordance with the procedure established by the Retirement
Committee on a basis uniformly applicable to all Members similarly
situated, upon the subsequent retirement of a Member in service
after his or her Normal Retirement Date, payment of such Member's
retirement allowance shall resume no later than the third month
after the final month
171
Page 25
during the reemployment period in which he or she is credited with
at least 40 Hours of Service.
(ii) Upon the subsequent retirement or termination of employment of a
retired or former Member, the Retirement Committee shall, in
accordance with rules uniformly applicable to all Members similarly
situated, determine the amount of vested benefit or retirement
allowance which shall be payable to such Member at such subsequent
retirement or termination. Such vested benefit or retirement
allowance shall be reduced by an amount of Equivalent Actuarial
Value to the benefits, if any, other than disability retirement
allowance payments, he or she received before the earlier of the
date of his or her restoration to service or his or her Normal
Retirement Date, provided that no such reduction shall reduce such
retirement allowance or vested benefit below the original amount of
retirement allowance or vested benefit earned but not received or
retirement allowance or vested benefit previously received by such
Member in accordance with the terms of the Plan in effect during
such previous employment, adjusted to reflect the election of any
survivor's benefits pursuant to Section 4.07(a)(ii).
4.16 Minimum Adjusted Benefit
(a) The adjustment factor applied to a retirement allowance or vested benefit
payable to any Member or former Member who terminates employment on or
after October 1, 1985, or to the Beneficiary of such Member or former
Member, shall not result in a retirement allowance or vested benefit which
is less than the adjusted retirement allowance or vested benefit which
would have been payable to such Member, former Member or Beneficiary under
the provisions of the Southern
172
Page 26
Wood Plan as in effect on September 30, 1985 based on Benefit Service
rendered up to and including September 30, 1985.
(b) The adjustment factor applied to a retirement allowance or vested benefit
payable to any Member or former Member who terminates employment on or
after January 1, 1989, or to the Beneficiary of such Member or former
Member, shall not result in a retirement allowance or vested benefit which
is less than the adjusted retirement allowance or vested benefit which
would have been payable to such Member, former Member or Beneficiary under
the provisions of the Southern Wood Plan as in effect on December 31, 1988
based on Benefit Service rendered up to and including December 31, 1988.
173
Page 27
SCHEDULE I
[TABLE OMITTED]
174
APPENDIX D
SCHEDULE II
(SOUTHERN WOOD PIEDMONT NON-UNION LOCATIONS)
Effective as of September 1, 1986, the Retirement Allowances payable to the
following retired Members, contingent annuitants or surviving spouses shall be
supplemented in the amounts listed below, and shall be payable after the death
of a Member in accordance with the provisions of Section 4.06 of the Plan, if
applicable.
SOCIAL MONTHLY
NAME SECURITY NO. SUPPLEMENT
---- ------------ ----------
Lillie V. Barnhill ###-##-#### $ 10.00
Charles J. Calloway ###-##-#### 10.00
Julius Davis ###-##-#### 10.00
David Russell Fowler ###-##-#### 10.00
Willie Gilchrist ###-##-#### 10.00
Foster Gore ###-##-#### 10.00
Manson Griffin ###-##-#### 10.00
Robert J. Hardy ###-##-#### 10.00
Calvin B. Hyde ###-##-#### 10.00
Savannah A. Jeter ###-##-#### 10.00
Codozar Jeter ###-##-#### 10.00
Charles E. Lambert ###-##-#### 10.00
Franklin C. Lyile ###-##-#### 10.00
175
APPENDIX D
SCHEDULE II
(SOUTHERN WOOD PIEDMONT NON-UNION LOCATIONS)
Effective as of October 1, 1988, the Retirement Allowances payable to the
following retired Members, contingent annuitants or surviving spouses shall be
supplemented in the amounts listed below, and shall be payable after the death
of a Member in accordance with the provisions of Section 4.06 of the Plan, if
applicable.
SOCIAL MONTHLY
NAME SECURITY NO. SUPPLEMENT
---- ------------ ----------
John W. Anderson ###-##-#### $ 10.00
Otis J. Atkinson ###-##-#### 10.00
James Baker, Jr. ###-##-#### 10.00
Lillie V. Barnhill ###-##-#### 10.00
Asberry Bell ###-##-#### 10.00
Daniel Bell ###-##-#### 10.00
Lawson Bethune ###-##-#### 10.00
Homer A. Blanton ###-##-#### 10.00
Charles J. Calloway ###-##-#### 10.00
Marvin Chandler ###-##-#### 10.00
James Davenport ###-##-#### 10.00
Terry Davenport ###-##-#### 10.00
Julius Davis ###-##-#### 10.00
David Russell Fowler ###-##-#### 10.00
Andrew Foster ###-##-#### 10.00
Clyde Fullenwider ###-##-#### 10.00
Willie Gilchrist ###-##-#### 10.00
Joseph Goodman ###-##-#### 10.00
Foster Gore ###-##-#### 13.85
Manson Griffin ###-##-#### 12.60
Robert L. Hardy ###-##-#### 10.00
Charles Holmes, Sr. ###-##-#### 10.00
Calvin B. Hyde ###-##-#### 10.00
Savanah A. Jeter ###-##-#### 10.00
Codozar Jeter ###-##-#### 10.00
Laddie Joe Johnson ###-##-#### 10.00
James Jones ###-##-#### 10.00
Murry L. Jones ###-##-#### 10.00
Robert H. Knuckles ###-##-#### 10.00
176
Page 2
SOCIAL MONTHLY
NAME SECURITY NO. SUPPLEMENT
---- ------------ ----------
Charles E. Lambert ###-##-#### $ 10.00
Harold J. Lawter ###-##-#### 10.00
Gilbert F. Lemay ###-##-#### 10.00
Ruby Inez Lytle ###-##-#### 10.00
Herman J. Mason ###-##-#### 10.00
Walter K. Mayo ###-##-#### 10.00
Walter E. Paden ###-##-#### 10.08
John Lee Palmer ###-##-#### 10.00
Charles F. Parnell ###-##-#### 10.00
J. Landrum Prince ###-##-#### 12.42
Oliver L. Rhodes ###-##-#### 10.00
John Rogers ###-##-#### 10.00
William Rollins ###-##-#### 10.00
Clarence Ruffin ###-##-#### 10.00
Charles O. Scott ###-##-#### 13.85
Beezie Sheppard ###-##-#### 10.00
John C. Stripling ###-##-#### 10.00
James E. Tennant ###-##-#### 10.00
John H. Terley ###-##-#### 10.00
Leroy Thompson ###-##-#### 10.00
Thomas Thompson ###-##-#### 10.00
Oscar Travis ###-##-#### 10.00
Woodrow Wilson Tyson ###-##-#### 10.00
Isaac Valentine ###-##-#### 10.00
Walter Webster ###-##-#### 10.00
John H. West ###-##-#### 10.00
Louise H. Williamson ###-##-#### 10.00
177
Page 3
SCHEDULE II
(SOUTHERN WOOD PIEDMONT NON-UNION LOCATIONS)
Effective as of January 1, 1996, the Retirement Allowance payable to the
following retired Members, contingent annuitants or surviving spouses shall be
supplemented in the amounts listed below, and shall be payable after the death
of a Member in accordance with the provisions of Section 4.06 of the Plan.
SOCIAL MONTHLY
NAME SECURITY NO. SUPPLEMENT
---- ------------ ----------
John Anderson ###-##-#### $ 10.38
Otis J. Atkinson ###-##-#### 10.00
H. Baker ###-##-#### 10.00
Asberry Bell ###-##-#### 10.00
Lawson Bethune ###-##-#### 10.00
Roman Bing ###-##-#### 10.00
Homer A. Blanton ###-##-#### 10.00
Calvin Boykin ###-##-#### 10.00
Arthur L. Brown ###-##-#### 12.73
Elizabeth Clark ###-##-#### 10.00
James Davenport ###-##-#### 11.98
Terry Davenport ###-##-#### 10.00
Julius Davis ###-##-#### 10.00
Mary Dunn ###-##-#### 10.00
James P. Edgins ###-##-#### 11.78
G. F. Ellis ###-##-#### 10.00
Steve Finch ###-##-#### 12.87
Andrew Foster ###-##-#### 10.00
David Russell Fowler ###-##-#### 10.00
Delois Fullenwider ###-##-#### 10.00
Joseph Goodman ###-##-#### 10.05
Foster Gore ###-##-#### 10.12
Corrine Griffin ###-##-#### 10.00
Robert L. Hardy ###-##-#### 10.00
Charles Holmes, Sr. ###-##-#### 10.00
Sam Horton ###-##-#### 10.07
Fannie M. Hughes ###-##-#### 10.00
Woodrow Hunter ###-##-#### 15.35
Savanah Jeter ###-##-#### 10.00
Laddie Joe Johnson ###-##-#### 11.90
James Jones ###-##-#### 10.00
Annie Knuckles ###-##-#### 10.00
178
Page 4
SOCIAL MONTHLY
NAME SECURITY NO. SUPPLEMENT
---- ------------ ----------
Charles E. Lambert ###-##-#### 10.00
Louise Lawter ###-##-#### 10.88
Gilbert F. Lemay ###-##-#### 10.00
Ruby Inez Lytle ###-##-#### 10.00
Herman J. Mason ###-##-#### 10.00
Estella Mayo ###-##-#### 10.00
M. Curtis Mcintyre ###-##-#### 11.41
Willie Mcintyre ###-##-#### 11.16
Clarence E. Neal ###-##-#### 10.00
Will Norton ###-##-#### 12.77
Walter E. Paden ###-##-#### 10.00
John Lee Palmer ###-##-#### 10.00
Walter G. Palmer ###-##-#### 10.00
Charles F. Parnell ###-##-#### 10.00
Edgar Lee Pope ###-##-#### 10.00
J. Landrum Prince ###-##-#### 10.00
Oliver L. Rhodes ###-##-#### 10.00
William Rollins ###-##-#### 10.00
Frank Ross ###-##-#### 10.00
Joe Ross, Jr. ###-##-#### 10.00
Clarence Ruffin ###-##-#### 10.00
Charles O. Scott ###-##-#### 10.00
Earl Sexton ###-##-#### 11.09
George Smith, Sr. ###-##-#### 11.07
George Stallings ###-##-#### 13.37
Ruth Stripling ###-##-#### 10.00
Wallace Tate ###-##-#### 10.00
James E. Tennant ###-##-#### 13.13
W. Thomason ###-##-#### 12.89
Leroy Thompson ###-##-#### 10.00
Oscar Travis ###-##-#### 10.00
Woodrow Wilson Tyson ###-##-#### 10.00
Isaac Valentine ###-##-#### 12.13
Walter Webster ###-##-#### 10.00
John H. West ###-##-#### 10.00
Willie A. Willis ###-##-#### 10.00
W. G. Worrell ###-##-#### 10.51
Nina Wright ###-##-#### 10.00
179
APPENDIX E
180
RETIREMENT PLAN FOR SALARIED EMPLOYEES OF RAYONIER INC.
APPENDIX E
This Appendix E, effective as of January 1, 1996, is applicable with respect to
(a) employees of Rayonier Inc. at the Southeast Forest Resources who were
participants in the Employees Retirement Income Plan for Rayonier Incorporated
Hourly Employees at the Southeast Forest Resources as of December 31, 1995 and
(b) former employees of Rayonier Inc. at the Southeast Forest Resources who are
entitled to a pension benefit under the Employees Retirement Income Plan for
Rayonier Incorporated Hourly Employees at the Southeast Forest Resources as of
December 31, 1995 and their spouses and beneficiaries. This Appendix E
constitutes an integral part of the Plan and sets forth the particulars
concerning:
(i) The definition of "Annuity Starting Date", "Benefit Service",
"Eligibility Service", "Equivalent Actuarial Value", "Normal
Retirement Date", "Postponed Retirement Date", "Public Disability
Benefit", "Southeast Forest Accrued Benefit", "Southeast Forest
Plan", and "Total and Permanent Disability."
(ii) The determination of Eligibility Service as referred to in Section
2.01 of the Plan.
(iii) The determination of Benefit Service as referred to in Section 2.02
of the Plan.
(iv) The eligibility requirements for membership as referred to in
Article 3 of the Plan.
(v) The determination of the amount of normal retirement allowance as
referred to in Section 4.01(b) of the Plan.
(vi) The determination of the amount of postponed retirement allowance
as referred to in Sections 4.02(b) and (c) of the Plan
(vii) The eligibility requirements for a standard early retirement
allowance as referred to in Section 4.03(a) of the Plan.
(viii) The determination of the amount of a standard early retirement
allowance as referred to in Section 4.03(b) of the Plan.
181
Page 2
(ix) The eligibility requirements for a disability retirement allowance.
(x) The determination of the amount of a disability retirement
allowance.
(xi) The determination of the amount of vested benefit as referred to in
Section 4.05(b) of the Plan.
(xii) The forms of benefit payment after retirement as referred to in
Section 4.06 of the Plan.
(xiii) The survivor's benefit applicable before retirement as referred to
in Section 4.07 of the Plan.
(xiv) The determination of the amount of an automatic lump sum payment as
referred to in Section 4.10(b) of the Plan.
(xv) The effect of re-employment on the election of an optional form of
benefit as referred to in Section 4.11(b) of the Plan.
(xvi) The determination of the amount of benefit payable to a re-employed
Member upon his or her subsequent retirement as referred to in
Section 4.11(c) of the Plan.
(xvii) The minimum adjusted benefit payable under the Plan.
Notwithstanding the foregoing, the provisions set forth in this Appendix E,
other than the provisions of Sections 2.01(a)(i), 2.02(a) and Article 3 of this
Appendix E, shall only be applicable with respect to retirement allowances,
vested benefits, or other benefits attributable to a Member's Benefit Service
prior to January 1, 1996; provided, however, that a Member's Benefit Service on
and after January 1, 1996 shall be taken into account for purposes of the
determination under Section 4.03 of this Appendix E of whether a reduction for
the commencement of benefits prior to Normal Retirement Date applies and for
purposes of calculating the percentage of disability retirement allowance
payable pursuant to Section 4.04 of this Appendix E.
182
Page 3
ARTICLE 1 - DEFINITIONS
1.03 Annuity Starting Date shall mean the first day of the first period for
which an amount is due on behalf of a Member or former Member as an
annuity or any other form of payment under the Plan; provided, however,
that in the case of a Member who retires under Section 4.04, Annuity
Starting Date shall mean his or her Normal Retirement Date.
1.07 Benefit Service shall mean employment recognized as such for the purposes
of determining eligibility for certain benefits and computing a benefit
under the Plan as provided under Article 2.
1.15 Eligibility Service shall mean any employment recognized as such for the
purposes of meeting the eligibility requirements for membership in the
Plan and for eligibility for certain benefits under the Plan as provided
under Article 2.
1.17 Equivalent Actuarial Value shall mean equivalent value of a benefit under
the Plan determined on the basis of the applicable factors set forth in
Schedule I, except as otherwise specified in the Plan. In any other event,
Equivalent Actuarial Value shall be determined on the same actuarial basis
utilized to compute the factors set forth in Schedule I.
1.26 Normal Retirement Date shall mean the first day of the calendar month next
following the date the employee or former employee attains age 65, which
is his or her Normal Retirement Age.
1.32 Postponed Retirement Date shall mean, with respect to an Employee who does
not retire at Normal Retirement Date but who works after such date, the
first day of the calendar month next
183
Page 4
following the date on which such Employee retires from active service. No
retirement allowance shall be paid to the Employee until his or her
Postponed Retirement Date, except as otherwise provided in Article 4.
1.44 Public Disability Benefit shall mean disability payments or lump sum
payments under any workers' compensation or occupational diseases law,
except fixed statutory payments for the loss of any bodily member and
except lump-sum payments for disfigurement. The amount of the deduction to
be made from monthly disability retirement allowances in respect to any
lump-sum payments under any workers' compensation or occupational diseases
law shall be determined by dividing the lump-sum payment by the maximum
number of months or fractions thereof in the period provided by statute or
regulation, provided the amount of such deduction shall be limited to the
amount of monthly disability retirement allowance and shall be applicable
for the number of months and fractions thereof in such maximum period.
1.45 Southeast Forest Accrued Benefit shall mean the accrued benefit under the
Southeast Forest Plan as of December 31, 1995.
1.46 Southeast Forest Plan shall mean the Employees Retirement Income Plan for
Rayonier Incorporated Hourly Employees at the Southeast Forest Resources
as in effect on the date specified in the Plan.
1.47 Total and Permanent Disability shall mean the total and permanent
disablement of a Member if (a) through some unintentional cause, he or she
has been totally disabled by bodily injury or disease or by mental
derangement so as to be prevented thereby from engaging in any regular
184
Page 5
occupation or employment for remuneration or profit, and (b) such total
disability is expected to be permanent and continuous during the remainder
of his or her life, provided such disability is not incurred in service in
the armed forces of any country, each as determined by the Company on the
basis of qualified medical evidence.
185
Page 6
ARTICLE 2 - SERVICE
2.01 Eligibility Service
(a) (i) Eligibility Service Prior to January 1, 1996 - Subject to the
bridging breaks in service provisions of Section 2.01(e), a Member's
Eligibility Service shall include the "Vesting Service" credited to
such Member under the Southeast Forest Plan as of December 31, 1995.
(ii) Eligibility Service on and after January 1, 1996 - Except as
otherwise provided in this Article 2, all uninterrupted employment
with the Company or with an Associated Company rendered on and after
January 1, 1996 and prior to the date such Member's employment
terminates, shall be recognized as Eligibility Service for all Plan
purposes. Notwithstanding the foregoing, with respect to any
calendar year in which the employee completes at least 1,000 Hours
of Service there shall be included in his or her Eligibility Service
a full year of Eligibility Service. For any calendar year in which
the employee completes less than 1,000 Hours of Service there shall
be included in his or her Eligibility Service one month of
Eligibility Service for each calendar month in which he or she works
at least one day.
(b) Hours of Service - "Hours of Service" shall include hours worked and hours
for which a person is compensated by the Company or by an Associated
Company for the performance of duties for the Company or an Associated
Company, although he or she has not worked (such as: paid holidays, paid
vacation, paid sick leave, paid time off and back pay for the period for
which it was awarded), and each such hour shall be computed as only one
hour, even though he or she is compensated at
186
Page 7
more than the straight time rate. This definition of "Hours of Service"
shall be applied in a consistent and non-discriminatory manner in
compliance with 29 Code of Federal Regulations, Section 2530.200b-2(b) and
(c) as promulgated by the United States Department of Labor and as may
hereafter be amended.
(c) Certain absences to be recognized as Eligibility Service - Except as
otherwise indicated in this Article 2, the following periods of approved
absence shall be recognized as Eligibility Service under the Plan and
shall not be considered as breaks in Eligibility Service:
(i) The period of any leave of absence granted in respect of service
with the armed forces of the United States on or after January 1,
1996, provided the Employee shall have returned to the service of
the Company or an Associated Company in accordance with
re-employment rights under applicable law and shall have complied
with all of the requirements of such law as to re-employment.
(ii) The period on or after January 1, 1996 of any leave of absence
approved by the Company, provided the employee shall have returned
to the service of the Company or an Associated Company upon the
expiration of such approved leave.
If an Employee fails to return to active employment upon expiration of the
approved absences specified in sub-paragraphs (i) and (ii) above, such
periods of approved absence shall not be considered as Eligibility Service
under the Plan.
(d) Breaks in Service - All calendar years other than the calendar year in
which the employee is hired or calendar years in which an absence
specified in paragraph (c) above occurs and such absence is considered as
Eligibility Service, in which an employee does not work at least one day
shall be considered as breaks in Eligibility Service; provided, however,
that in no event shall there be a
187
Page 8
break in Eligibility Service unless the employee's employment with the
Company or an Associated Company is terminated.
(e) Bridging breaks in service
(i) If an Employee has a break in service and such Employee was eligible
for a vested benefit under Section 4.05 at the time of his or her
break in service, except as otherwise provided in Section 4.11,
employment both before and after the Employee's absence shall be
immediately recognized as Eligibility Service, subject to the
provisions of this Section 2.01, upon his or her return to the
employ of the Company or an Associated Company.
(ii) If an Employee has a break in service and such Employee was not
eligible for a vested benefit under Section 4.05 at the time of his
or her break in service, Eligibility Service shall begin from the
date of his or her return to the employ of the Company or an
Associated Company. If such Employee returns to the employ of the
Company or an Associated Company and the period of the Employee's
break is less than the greater of (1) five years or (2) the
Eligibility Service rendered prior to such break, the service prior
to such break shall be included as Eligibility Service, subject to
the provisions of this Section 2.01, only upon completion of at
least twelve months of Eligibility Service following his or her
break in service. However, if the period of the Employee's break in
service equals or exceeds the greater of (1) five years or (2) the
Eligibility Service rendered prior to such break, the service
rendered prior to such break shall not be included as Eligibility
Service.
188
Page 9
2.02 Benefit Service
(a) Benefit Service prior to January 1, 1996 - Subject to the restoration of
Benefit Service provisions of Section 2.02(e)(ii), Benefit Service shall
include the "Benefit Service" credited to such Member under the Southeast
Forest Plan as of December 31, 1995.
(b) Employment on or after January 1, 1996 with the Company or an Associated
Company - All uninterrupted employment with the Company or with an
Associated Company rendered or after January 1 1996 and prior to the date
such Member's employment terminates shall be recognized as Benefit Service
for the purpose of meeting the eligibility requirements of the Plan for a
standard early retirement allowance under Section 4.03 or a disability
retirement allowance under Section 4.04, but not for the purpose of
computing the amount of any retirement allowance or vested benefit under
the Plan. However, such uninterrupted employment shall be included for the
purposes of calculating the Benefit Service with respect to which the
determination is made pursuant to Section 4.03(b) of whether a reduction
for the commencement of benefits prior to Normal Retirement Date applies
and for purposes of calculating the percentage of disability retirement
allowance payable pursuant to Section 4.04(b).
(c) Certain absences to be recognized as Benefit Service - Except as otherwise
indicated below, the following periods of approved absence shall be
recognized as Benefit Service and shall not be considered as breaks in
Benefit Service:
(i) The period of any leave of absence granted in respect of service
with the armed forces of the United States on and after January 1,
1996, provided the Employee shall have returned to the service of
the Company or an Associated Company in
189
Page 10
accordance with reemployment rights under applicable law and shall
have complied with all of the requirements of such law as to
reemployment, shall be recognized as Benefit Service for the purpose
of meeting the eligibility requirements of the Plan for a standard
early retirement allowance under Section 4.03 or a disability
retirement allowance under Section 4.04 and shall not be considered
as a break in Benefit Service nor be considered as Benefit Service
for the purpose of computing the amount of any retirement allowance
or vested benefit under the Plan. However, such leave of absence
shall be included for the purposes of calculating the Benefit
Service with respect to which the determination is made pursuant to
Section 4.03(b) of whether a reduction for the commencement of
benefit prior to Normal Retirement Date applies and for purposes of
calculating the percentage of disability retirement allowance
payable pursuant to Section 4.04 (b).
(ii) With respect to an Employee who was in receipt of Worker's
Compensation benefits on December 31, 1995 as a result of such
Employee's employment with the Company, the continuous period on and
after January 1, 1996 for which such benefits are paid to the
Employee shall be recognized as Benefit Service for all purposes of
the Plan and shall not be considered as a break in Benefit Service.
190
Page 11
(d) All Other Absences for Employees
(i) No period of absence approved by the Company other than that
specified in Section 2.02(c) above shall be recognized as Benefit
Service for purposes of this Section 2.02.
(ii) No other absence, other than the absence covered by the exception in
clause (i) above, shall be recognized as Benefit Service for
purposes of this Section 2.02 and any such absence shall be
considered as a break in Benefit Service for purposes of this
Section 2.02.
If the Employee was eligible for a vested benefit under Section 4.05
at the time of a break in service, Benefit Service under Section
2.02(a) above before the Employee's absence shall be immediately
recognized as Benefit Service for purposes of Section 2.02(a) above
upon his or her return to service and Benefit Service under Sections
2.02(b) and (c) above both before and after the Employee's absence
shall be immediately recognized as Benefit Service for purposes of
Sections 2.02(b) and (c) above upon his or her return to service.
If the Employee was not eligible for a vested benefit under Section
4.05 at the time of a break in service, Benefit Service under
Section 2.02(b) above shall begin from the date of the Employee's
return to the employ of the Company. However, any Benefit Service
prior to January 1, 1996 rendered prior to such break in service
shall be included as Benefit Service for purposes of Section 2.02(a)
above and any Benefit Service on or after January 1, 1996 shall be
included as Benefit Service for purposes of Sections 2.02 (b) and
(c) above only at the time that the Member bridges his or her
Eligibility Service in accordance with the provisions of Section
2.01(e).
191
Page 12
ARTICLE 3 - MEMBERSHIP
3.01 Any employee or former employee of Rayonier Inc. at the Southeast Forest
Resources (or its predecessor ITT Rayonier Incorporated at its Southeast
Forest Operations) who is a participant in the Southeast Forest Plan as of
December 31, 1995 shall become a Member of the Plan on January 1, 1996,
but he or she shall not accrue any Eligibility Service or Benefit Service
for purposes of this Appendix E of the Plan unless he or she is employed
by the Company or an Associated Company. Any former employee of Rayonier
Inc. at the Southeast Forest Resources (or its predecessor ITT Rayonier
Incorporated at its Southeast Forest Operations) who is entitled to
receive a pension benefit or disability benefit under the Southeast Forest
Plan as of December 31, 1995, or his or her spouse or beneficiary, shall
be eligible for and shall receive from this Plan benefits in the same
amount and payable in accordance with the same terms as the pension
benefit or disability benefit to which he or she was entitled under the
Southeast Forest Plan as of December 31, 1995.
192
Page 13
ARTICLE 4 - BENEFITS
4.01 Normal Retirement Allowance
(b) Benefit
Prior to adjustment in accordance with Sections 4.06(a) and 4.07(b), the
annual normal retirement allowance with respect to Benefit Service
credited prior to January 1, 1996 and Benefit Service credited under
Section 2.02(c)(ii) on and after January 1, 1996 payable on a lifetime
basis upon retirement at such Member's Normal Retirement Date, shall be
equal to the sum of (i) and (ii) where:
(i) equals his or her Southeast Forest Accrued Benefit; and
(ii) equals $180.00 multiplied by his or her Benefit Service credited
pursuant to Section 2.02(c)(ii).
4.02 Postponed Retirement Allowance
(b) Benefit - Except as hereinafter provided and prior to adjustment in
accordance with Sections 4.06(a) and 4.07(b), the annual postponed
retirement allowance with respect to Benefit Service credited prior to
January 1, 1996 and Benefit Service credited under Section 2.02(c)(ii) on
and after January 1, 1996 payable on a lifetime basis upon retirement at a
Member's Postponed Retirement Date shall be equal to the annual normal
retirement allowance to which the Member would have been entitled under
Section 4.01(b) based on such Benefit Service had he or she retired on his
or her Normal Retirement Date, increased by an amount which is the
Actuarial Equivalent Value of the monthly payments which would have been
payable with respect to such Benefit Service with respect to each month in
which he or she completed less than 40 Hours of Service. Any monthly
payment determined under this paragraph (b) with respect to any such month
in
193
Page 14
which he or she completed less than 40 Hours of Service shall be computed
as if the Member had retired on his or her Normal Retirement Date.
(c) Benefit for Member in Active Service after he or she attains Age 70-1/2 -
In the event a Member's retirement allowance is required to begin under
Section 4.10 while the Member is in active service, the January 1
immediately following the calendar year in which the Member attained age
70-1/2 shall be the Member's Annuity Starting Date for purposes of this
Article 4 and the Member shall receive a postponed retirement allowance
commencing on that January 1 in an amount determined as if he or she had
retired on such date. As of each succeeding January 1 prior to the
Member's actual Postponed Retirement Date and as of his or her actual
Postponed Retirement Date, the Member's retirement allowance shall be
reduced by the Equivalent Actuarial Value of the total payments of his or
her postponed retirement allowance made with respect to each month of
continued employment in which he or she completed at least 40 Hours of
Service and which were paid prior to each such recomputation, provided
that no such reduction shall reduce the Member's postponed retirement
allowance below the amount of postponed retirement allowance payable to
the Member immediately prior to the recomputation of such retirement
allowance.
4.03 Standard Early Retirement Allowance
(a) Eligibility - A Member who has not reached his or her Normal Retirement
Date but has, prior to his or her termination of employment reached the
55th anniversary of his or her birth and completed 15 years of Benefit
Service (as determined in accordance with Sections 2.02 (a), (b) and (c)),
is eligible to retire on a standard early retirement allowance on the
first day of the calendar month next following termination of employment,
which date shall be the Member's Early Retirement Date.
194
Page 15
(b) Benefit - Except as hereinafter provided and prior to adjustment in
accordance with Sections 4.06(a) and 4.07(b), the standard early
retirement allowance with respect to Benefit Service credited prior to
January 1, 1996 and Benefit Service credited under Section 2.02(c)(ii) on
and after January 1, 1996 shall be an allowance deferred to commence on
the Member's Normal Retirement Date and shall be equal to the sum of (i)
and (ii) where:
(i) equals his or her Southeast Forest Accrued Benefit; and
(ii) equals $180.00 multiplied by his or her Benefit Service credited
pursuant to Section 2.02(c)(ii).
The Member may, however, elect to receive an early retirement allowance
commencing on the last day of the month in which his or her Early
Retirement Date occurs or on the last day of any calendar month before his
or her Normal Retirement Date specified in his or her later request
therefor; provided, however, that in the event the Member had not attained
age 62 and completed at least 20 years of Benefit Service (as determined
in accordance with Sections 2.02(a), (b) and (c)) as of the date he or she
terminated employment, such retirement allowance shall be a reduced amount
which, prior to adjustment in accordance with Sections 4.06(a) and 4.07(a)
shall be equal to his or her Southeast Forest Accrued Benefit reduced by
1/180th for each month up to 60 months by which the commencement date of
his or her retirement allowance precedes his or her Normal Retirement Date
and further reduced by 1/360th for each such month in excess of 60 months.
195
Page 16
4.04 Disability Retirement Allowance
(a) Eligibility - A Member who has completed ten years of Benefit Service
(determined in accordance with Sections 2.02(a), (b) and (c)) who incurs a
Total and Permanent Disability is eligible to retire on a disability
retirement allowance on the first day of the calendar month next following
the date the Member is determined to be so disabled by the Company based
on a qualified medical evidence, which date shall be the Member's
Disability Retirement Date.
(b) Benefit -Except as herein provided and prior to any adjustment in
accordance with Section 4.07(b)(ii), the disability retirement allowance
shall commence on the last day of the calendar month in which the Member's
Disability Retirement Date occurs and shall be equal to the sum of (i) and
(ii) where:
(i) equals his or her Southeast Forest Accrued Benefit; and
(ii) equals $180.00 multiplied by his or her Benefit Service credited
pursuant to Section 2.02(c)(ii);
multiplied by the percentage set forth below based on his or her years of
Benefit Service (as determined in accordance with Sections 2.02(a), (b)
and (c)):
Years of Benefit Service Percentage
------------------------ ----------
10 50%
11 60
12 70
13 80
14 90
15 or more 100
(The above percentages are to be
interpolated to reflect fractional
years of Benefit Service.)
196
Page 17
Notwithstanding the preceding sentence, if a Member is awarded a Public
Disability Benefit, the disability retirement allowance payable prior to
his or her Normal Retirement Date shall be reduced by the amount of the
Company-provided Public Disability Benefit. On and after the Member's
Normal Retirement Date, the disability retirement allowance, which shall
be calculated without regard to any adjustment prior to the Member's
Normal Retirement Date made pursuant to Section 4.07(b)(ii), will be
adjusted, if applicable, in accordance with Sections 4.06(a) and 4.06(b).
(c) Benefit Discontinuance - In the event such Member's disability retirement
allowance is discontinued as herein provided and he or she is not restored
to service as an Employee, he or she shall be entitled to retire on a
standard early retirement allowance as of the first day of the calendar
month next following such discontinuance or to receive a vested benefit
commencing on the last day of the month in which his or her Normal
Retirement Date occurs, provided that, in the case of early retirement, at
his or her Disability Retirement Date he or she had completed the
eligibility requirements for the standard early retirement allowance. In
either case, the standard early retirement allowance or vested benefit
shall be computed on the basis of the Member's Benefit Service as of the
earlier of his or her Disability Retirement Date or January 1, 1996.
(d) Medical Examination - Any Member who has not reached his or her Normal
Retirement Date and who is claiming to be totally and permanently disabled
may be required by the Company to submit to examination in a clinic or by
a physician or physicians selected by the Company, and any question as to
the existence of such disability shall be settled on the basis of such
examination. Should any Member in receipt of a disability retirement
allowance refuse to submit to such medical examination, his or her
disability retirement allowance shall be discontinued until his or her
withdrawal of such refusal, and should his or her refusal continue for a
year, all rights in and to the
197
Page 18
disability retirement allowance shall cease; provided, however, that he or
she shall be entitled to have his or her disability retirement allowance
restored, prior to his or her Normal Retirement Date, if, on the basis of
a medical examination by a physician or physicians designated by the
Company, the Company finds that he or she has again lost earning capacity
because of the same disability.
4.05 Vested Benefit
(b) Benefit - Prior to adjustment in accordance with Sections 4.06(a) and
4.07(a), the vested benefit payable to a Member shall be a benefit
deferred to commence on the last day of the month in which the former
Member's Normal Retirement Date occurs and shall be equal to the sum of
(i) and (ii) where:
(i) equals his or her Southeast Forest Accrued Benefit; and
(ii) equals $180.00 multiplied by his or her Benefit Service credited
pursuant to Section 2.02(c)(ii).
On or after the date on which the former Member shall have reached the
55th anniversary of his or her birth, he or she may elect to receive a
benefit commencing on the last day of any calendar month next following
the 55th anniversary of his or her birth and prior to his or her Normal
Retirement Date as specified in his or her request therefor, after receipt
by the Retirement Committee of written application therefor made by the
former Member and filed with the Retirement Committee. Upon such earlier
payment, the vested benefit otherwise payable at the former Member's
Normal Retirement Date will be reduced by 1/180th for each month up to 60
months by which the commencement date of such payments precedes his or her
Normal Retirement Date and further reduced by 1/360th for each such month
in excess of 60 months.
198
Page 19
4.06 Forms of Benefit Payment after Retirement
(a) Automatic Forms of Payment
(i) Automatic Joint and Survivor Annuity - If a Member or former Member
who is married on his or her Annuity Starting Date has not made an
election of an optional form of payment as provided in Section
4.06(b), the retirement allowance or vested benefit payable to such
Member or former Member commencing on his or her Annuity Starting
Date shall automatically be adjusted to provide (A) a reduced
benefit payable to the Member or former Member during his or her
life equal to his or her benefit otherwise payable without optional
modification computed in accordance with Section 4.01, 4.02, 4.03,
4.04 or 4.05, as the case may be, multiplied by the appropriate
factor contained in Table 1 of Schedule I and (B) a benefit payable
after his or her death to his or her surviving spouse equal to 50%
of the reduced benefit payable to the Member or former Member.
(ii) Automatic Life Annuity - If a Member or former Member is not married
on his or her Annuity Starting Date, the retirement allowance or
vested benefit computed in accordance with Section 4.01, 4.02, 4.03,
4.04 or 4.05, as the case may be, shall be paid to the Member or
former Member in the form of a lifetime benefit payable during his
or her own lifetime with no further benefit payable to anyone after
his or her death, unless the Member or former Member is eligible for
and makes an election of an optional form of payment under Section
4.06(b).
(iii) A married former Member entitled to, but not in receipt of, a
retirement allowance or vested benefit as of August 23, 1984 who
terminated service on or after September 2,
199
Page 20
1974 but before January 1, 1976 may elect, during the period
beginning on August 23, 1984 and ending on his or her Annuity
Starting Date, to have his or her retirement allowance or vested
benefit payable in accordance with the provisions of this Section
4.06(a).
(b) Optional Forms of Payment
(i) Life Annuity Option - Any Member or former Member who retires or
terminates employment with the right to a retirement allowance or
vested benefit may elect, in accordance with the provisions of
Section 4.06(d), to provide that the retirement allowance payable to
him or her under Section 4.01, 4.02, 4.03 or 4.04 or the vested
benefit payable to him or her under Section 4.05 shall be in the
form of a lifetime benefit payable during his or her own lifetime
with no further benefit payable to anyone after his or her death.
(ii) Contingent Annuity Option - Any Member who retires or terminates
employment with the right to a retirement allowance may elect, in
accordance with provisions of Section 4.06(d), to convert the
benefit otherwise payable to him or her without optional
modification under Section 4.01, 4.02, 4.03 or 4.04, as the case may
be, into one of the following alternative options in order to
provide that after his or her death, a lifetime benefit shall be
payable to the person who, when the option became effective, was
designated by him or her to be his or her contingent annuitant. The
optional benefit elected shall be the Equivalent Actuarial Value of
the benefit otherwise payable without optional modification under
Section 4.01, 4.02, 4.03 or 4.04.
200
Page 21
Option 1 - A reduced retirement allowance payable during the
Member's or former Member's life with the provision that after his
or her death a benefit equal to 100% of his or her reduced
retirement allowance shall be paid during the life of, and to, his
or her surviving contingent annuitant.
Option 2 - A reduced benefit payable during the Member's or former
Member's life with the provision that after his or her death a
benefit equal to 50% of his or her reduced retirement allowance
shall be paid during the life of, and to, his or her surviving
contingent annuitant.
(d) Election of Options - A Member or former Member may, subject to the
provisions of this Section 4.06(d), elect to receive his or her retirement
allowance or vested benefit in the optional form of payment described in
Section 4.06(b)(i) or, in the case of a Member who retires under the
provisions of Section 4.01, 4.02, 4.03 or 4.04, in one of the optional
forms of payment described in Section 4.06(b)(ii), in lieu of the
automatic forms of payment described in Section 4.06(a). Notwithstanding
the preceding sentence, a Member who retired on a disability retirement
allowance may only elect an optional form of payment under this Section
4.06 to take effect on his or her Normal Retirement Date. A married
Member's or a married former Member's election of a Life Annuity form of
payment under Section 4.06(b)(i) or any optional form of payment under
Section 4.06(b)(ii), which does not provide for monthly payments to his or
her spouse for life after the Member's or former Member's death, in an
amount equal to at least 50% but not more than 100% of the monthly amount
payable under that form of payment to the Member or former Member and
which is not of Equivalent Actuarial Value to the Automatic Joint and
Survivor Annuity described
201
Page 22
in Section 4.06(a)(i), shall be effective only with Spousal Consent;
provided that such Spousal Consent to the election has been received by
the Retirement Committee.
Any election made under Section 4.06(a) or Section 4.06(b) shall be made
on a form approved by the Retirement Committee and may be made during the
90-day period ending on the Member's Annuity Starting Date, but not prior
to the date the Member or former Member receives the written explanation
described in Section 4.06(c). Any such election shall become effective on
the Member's or former Member's Annuity Starting Date, provided the
appropriate form is filed with and received by the Retirement Committee
and may not be modified or revoked after his or her Annuity Starting Date.
Any election made under Section 4.06(a) or Section 4.06(b) after having
been filed, may be revoked or changed by the Member or former Member only
by written notice received by the Retirement Committee before his or her
election becomes effective on his or her Annuity Starting Date. Any
subsequent elections and revocations may be made at any time and from time
to time during the 90-day period ending on the Member's or former Member's
Annuity Starting Date. A revocation shall be effective when the completed
notice is received by the Retirement Committee. A re-election shall be
effective on the Member's or former Member's Annuity Starting Date. If,
however, the Member or the spouse or the contingent annuitant designated
in the election dies before the election has become effective, the
election shall thereby be revoked.
If a Member dies after his or her Annuity Starting Date, any payment
continuing on to his or her spouse or contingent annuitant shall be
distributed at least as rapidly as under the method of distribution being
used as of the Member's date of death.
202
Page 23
4.07 Survivor's Benefit Applicable Before the Annuity Starting Date
(a) Automatic Pre-Retirement Spouse's Benefit
(i) Automatic Pre-Retirement Spouse's Benefit applicable before
termination of employment - The surviving spouse of a Member who has
completed 5 years of Eligibility Service and who does not have an
effective election of the optional Pre-Retirement Survivor's Benefit
under Section 4.07(b)(i) shall automatically receive a benefit
payable under the automatic Pre-Retirement Spouse's Benefit of this
Section 4.07(a)(i) in the event said Member should die after the
effective date of coverage hereunder and before termination of
employment. The benefit payable to the Member's spouse shall be
equal to 50% of the benefit the Member would have received if the
retirement allowance or vested benefit the Member was entitled to at
his or her date of death had commenced as of the month in which his
or her Normal Retirement Date would have occurred (or as of the
month following the month in which his or her date of death
occurred, if later) in the form of the Automatic Joint and Survivor
Annuity under Section 4.06(a)(i). Such benefit shall be payable for
the life of the spouse commencing as of the month in which the
Member's Normal Retirement Date would have occurred (or the month
next following the month in which the Member's date of death
occurred, if later). However, the Member's spouse may elect, by
written application filed with the Retirement Committee, to have
payments begin as of the last day of any calendar month on or after
the date the former Member would have reached the 55th anniversary
of his or her birth.
If the Member's spouse elects to commence payment of the automatic
Pre-Retirement Spouse's Benefit prior to what would have been the
Member's Normal Retirement Date, the amount of such benefit payable
to the spouse shall be based on the standard early
203
Page 24
retirement allowance or vested benefit to which the Member would
have been entitled, had the Member elected to have payments commence
to himself or herself on such earlier date in accordance with the
provisions of Section 4.03(b) or Section 4.05(b).
However, if a Member had elected Option 1 under Section 4.06(b)(ii)
within the 90-day period proceeding his or her Annuity Starting
Date, with his or her spouse as contingent annuitant, the amount of
benefit payable to the spouse shall be based on the provisions of
Option 1, in lieu of the provisions of this Section 4.07(a)(i).
Coverage hereunder shall be applicable to a married Member in active
service who has satisfied the eligibility requirements for a
retirement allowance under Section 4.01(a), 4.02(a) or 4.03(a) or a
vested benefit under Section 4.05(a) and shall become effective on
the date the Member marries and shall cease on the earlier of (i)
the date such active Member's marriage is legally dissolved by a
divorce decree or (ii) the date such active Member's spouse dies.
(ii) Automatic Pre-Retirement Spouse's Benefit applicable during
disability retirement - The surviving spouse of a Member who is
receiving a disability retirement allowance under Section 4.04 and
who does not have an effective election of the optional
Pre-Retirement Survivor's Benefit under Section 4.07(b)(ii) shall
automatically receive a benefit payable under the automatic
Pre-Retirement Spouse's Benefit of this Section 4.07(a)(ii) in the
event said Member should die after the effective date of coverage
thereunder and before Normal Retirement Date. The benefit payable to
the Member's
204
Page 25
spouse shall be equal to 50% of the benefit the Member was receiving
prior to his date of death multiplied by the applicable factor in
Table 1 of Schedule I based on the ages of the Member and his or her
spouse on the Member's date of death. Such benefit shall be payable
for the life of the spouse commencing as of the last day of the
month of the Member's death.
However, if a Member had elected Option 1 under Section 4.06(b)(ii)
within the 90-day period proceeding his or her Annuity Starting
Date, with his or her spouse as contingent annuitant, the amount of
benefit payable to the spouse shall be based on the provisions of
Option 1, in lieu of the provisions of this Section 4.07(a)(ii).
Coverage hereunder shall be applicable to a married Member who has
satisfied the eligibility requirements for a disability retirement
allowance under Section 4.04(a) and shall become effective on the
date the Member marries and shall cease on the earliest of (i) the
date such Member's marriage is legally dissolved by a divorce decree
or (ii) the date such Member's spouse dies.
(iii) Automatic Pre-Retirement Spouse's Benefit applicable upon
termination of employment - In the case of a Member or former Member
who is married and entitled to a standard early retirement allowance
under Section 4.03 or a vested benefit under Section 4.05, the
provisions of this Section 4.07(a)(iii) shall apply to the period
between the date his or her services are terminated or the date, if
later, the Member or former Member is married and his or her Annuity
Starting Date, or other cessation of coverage as later specified in
this Section 4.07(a)(iii).
205
Page 26
In the event of a married Member's or former Member's death during
any period in which these provisions have not been waived or revoked
by the Member or former Member and his or her spouse, the benefit
payable to the Member's or former Member's spouse shall be equal to
50% of the standard early retirement allowance or vested benefit the
Member or former Member would have received as of the month in which
his or her Normal Retirement Date would have occurred if he or she
had elected to receive such benefit in the form of the Automatic
Joint and Survivor Annuity under Section 4.06(a).
The spouse's benefit shall be payable for the life of the spouse
commencing as of the month in which the Member's or former Member's
Normal Retirement Date would have occurred. However, the Member's or
former Member's spouse may elect, by written application filed with
the Retirement Committee, to have payments begin as of any month
following the month in which the Member or former Member would have
reached the 55th anniversary of his or her birth (or following the
month in which his or her date of death occurred, if later). If the
Member's or former Member's spouse elects to commence payment of
this automatic Pre-Retirement Spouse's Benefit prior to what would
have been the Member's or former Member's Normal Retirement Date,
the amount of such benefit payable to the spouse shall be based on
the standard early retirement allowance or vested benefit to which
the Member or former Member would have been entitled, had the Member
or former Member elected to have payments commence to himself or
herself on such earlier date in accordance with the provisions of
Section 4.03(b) or Section 4.05(b).
206
Page 27
However, if a Member or former Member had elected Option 1 under
Section 4.06(b)(ii) within the 90-day period preceding his or her
Annuity Starting Date, with his or her spouse as contingent
annuitant, the amount of benefit payable to the spouse shall be
based on the provisions of Option 1, in lieu of the provisions of
this Section 4.07(a)(iii).
The vested benefit payable to a former Member whose spouse is
covered under this Section 4.07(a)(iii) or, if applicable, the
benefit payable to his or her spouse upon his or her death shall be
reduced by the applicable percentages shown below. Such reduction
shall apply to each month during which coverage is in effect for at
least one day; provided, however, no reduction shall be made with
respect to any period before the later of (1) the date the
Retirement Committee furnishes the former Member the notice of his
or her right to waive the automatic Pre-Retirement Spouse's Benefit
or (2) the commencement of the election period specified in Section
4.07(c) below.
ANNUAL REDUCTION FOR SPOUSE'S COVERAGE
AFTER TERMINATION OF EMPLOYMENT
OTHER THAN RETIREMENT
Age Reduction
--- ---------
Less than 40 1/10 of 1% per year
40 but prior to 50 2/10 of 1% per year
50 but prior to 55 3/10 of 1% per year
55 but prior to 60 5/10 of 1% per year
60 but less than 65 1% per year
(b) Optional Pre-Retirement Survivor's Benefit
The term "Beneficiary" for purposes of this Section 4.07(b) shall mean any
person named by the Member by written designation to receive benefits
payable under the optional Pre-Retirement Survivor's Benefit; provided,
however, that for any married Member the term "Beneficiary" shall
207
Page 28
automatically mean the Member's spouse and any prior designation to the
contrary will be canceled, unless the Member, with Spousal Consent,
designates otherwise. An election of a non-spouse Beneficiary by a married
Member shall be effective only if accompanied by Spousal Consent and such
Spousal Consent has been received by the Retirement Committee. The
Retirement Committee shall resolve any questions arising hereunder as to
the meaning of "Beneficiary" on a basis uniformly applicable to all
Members similarly situated.
(i) Optional Pre-Retirement Survivor's Benefit in Active Service After
Normal Retirement Date - A Member in active service after his or her
Normal Retirement Date may elect a Pre-Retirement Survivor's Benefit
with a non-spouse Beneficiary pursuant to this Section 4.07(b)(i);
provided, however, that if such Member is married, he or she must
first make an effective waiver of the automatic Pre-Retirement
Spouse's Benefit under Section 4.07(a)(i) pursuant to Section
4.07(c).
In the event of a Member's death during any period in which the
Pre-Retirement Survivor's Benefit provided in this Section
4.07(b)(i) is in effect, the benefit payable to the Member's
Beneficiary shall be equal to 50% of the retirement allowance the
Member would have received on his or her date of death if he or she
had elected to receive such benefit in the form of Option 2 under
Section 4.06(b)(ii). The Pre-Retirement Survivor's Benefit shall be
payable for the life of the Beneficiary commencing on the last day
of the month following the Member's death.
(ii) Optional Pre-Retirement Survivor's Benefit During Disability - In
the case of a Member retired due to disability under the provisions
of
208
Page 29
Section 4.04, the provisions of this Section 4.07(b)(ii) shall apply
to the period between his or her Disability Retirement Date and his
or her Normal Retirement Date.
The Member may elect the optional Pre-Retirement Survivor's Benefit
under Option A or B below; provided, however, that a married Member
may not elect Option A below with his spouse as Beneficiary.
Option A - The disability retirement allowance payable to the Member
prior to his or her Normal Retirement Date shall be equal to the
retirement allowance the Member would have received on his or her
Disability Retirement Date if he or she had elected to receive such
retirement allowance in the form of Option 2 under Section
4.06(b)(ii). In the event of the Member's death during any period in
which this Option A is in effect, the benefit payable during the
life of, and to, his or her Beneficiary shall be equal to 50% of the
Member's disability retirement allowance calculated in accordance
with the prior sentence, and shall commence on the last day of the
month following the Member's death.
Option B - The disability retirement allowance payable to the Member
prior to his or her Normal Retirement Date shall be equal to the
retirement allowance the Member would have received on his or her
Disability Retirement Date if he or she had elected to receive such
retirement allowance in the form of Option 1 under Section
4.06(b)(ii). In the event of the Member's death during any period
when this Option B is in effect, the benefit payable during the life
of, and to, his or her Beneficiary shall be equal to 100% of the
Member's disability retirement allowance calculated in accordance
with the prior sentence, and shall commence on the last day of the
month following the Member's death.
209
Page 30
A Member who is eligible for a disability retirement allowance under
Section 4.04 may elect the optional Pre-Retirement Survivor's
Benefit pursuant to this Section 4.07(b)(ii); provided, however,
that if such Member is married and elects a Beneficiary other than
his or her spouse, he or she must first make an effective waiver of
the automatic Pre-Retirement Spouse's Benefit under Section
4.07(a)(ii) pursuant to Section 4.07(c). In order to elect the
optional Pre-Retirement Survivor's Benefit under this Section
4.07(b)(ii), the Member shall, at his or her Disability Retirement
Date, complete such forms as are required under this Section
4.07(b)(ii) and, if he or she elects this optional Pre-Retirement
Survivor's Benefit, coverage hereunder shall be effective as of his
or her Disability Retirement Date. A Member will be deemed to have
waived coverage under this Section 4.07(b)(ii) if he or she does not
file the appropriate forms with the Retirement Committee at his or
her Disability Retirement Date.
(c) The Retirement Committee shall furnish to each Member and former Member a
written explanation which describes (i) the terms and conditions of the
automatic Pre-Retirement Spouse's Benefit and the optional Pre-Retirement
Survivor Benefit, (ii) the Member's or former Member's right to make, and
the effect of, an election to waive the automatic Pre-Retirement Spouse's
Benefit and to elect the optional Pre-Retirement Survivor's Benefit, (iii)
the rights of the Member's or former Member's spouse, and (iv) the right
to make, and the effect of, a revocation of such a waiver. Such written
explanation shall be furnished (A) to each Member in active service within
the period beginning one year prior to his or her attainment of his or her
Normal Retirement Date and ending one year after his or her attainment
thereof, (B) to each Member or former Member who has terminated service
before the first anniversary of the date he or she terminated service, and
(C) to each
210
Page 31
Member eligible for a disability retirement allowance before his or her
Disability Retirement Date, and shall be furnished to such Member or
former Member even though he or she is not married.
The period during which the Member may make an election to waive the
automatic Pre-Retirement Spouse's Benefit provided under Section
4.07(a)(i) and to elect in lieu thereof the optional Pre-Retirement
Survivor's Benefit under Section 4.07(b)(i) shall begin not later than his
or her Normal Retirement Date and end on his or her Annuity Starting Date
or, if earlier, his or her date of death. The period during which the
Member may make an election to waive the automatic Pre-Retirement Spouse's
Benefit provided under Section 4.07(a)(ii) and to elect in lieu thereof
the optional Pre-Retirement Survivor's Benefit under Section 4.07(b)(ii)
shall begin not later than on the date he or she becomes disabled and end
on his or her Disability Retirement Date. The period during which the
former Member may make an election to waive the automatic Pre-Retirement
Spouse's Benefit provided under Section 4.07(a)(iii) shall begin not later
than the date his or her employment terminates and end on his or her
Annuity Starting Date or, if earlier, his or her date of death. Any
waiver, revocation or re-election of the automatic Pre-Retirement Spouse's
Benefit shall be made on a form provided by the Retirement Committee and
any waiver or revocation shall require Spousal Consent. If, upon
termination of employment, the former Member waives coverage hereunder in
accordance with administrative procedures established by the Retirement
Committee for all Members similarly situated, such waiver shall be
effective as of the Member's or former Member's Severance Date. Any later
re-election or revocation under Section 4.07(a)(iii) shall be effective
when the completed form is received by the Retirement Committee. If a
Member or former Member dies during the period when a waiver is in effect,
there shall be no benefits payable to his or her spouse under the
provisions of this Section 4.07, unless an effective election under
Section 4.07(b)(i) or (ii) is in effect and the spouse is the Beneficiary.
211
Page 32
Except as described above in the event of a waiver or revocation, coverage
under Section 4.07(a)(i), (ii) or (iii) shall cease to be effective upon a
Member's or former Member's Annuity Starting Date, or upon the date a
Member's or former Member's marriage is legally dissolved by a divorce
decree, or upon the death of the spouse, whichever event shall first
occur.
Coverage under Section 4.07(b)(i) shall cease to be effective upon a
Member's Annuity Starting Date, upon the death of the Beneficiary, or upon
the marriage of an unmarried Member, whichever event shall first occur.
Coverage under Section 4.07(b)(ii) shall cease to be effective upon a
Member's Annuity Starting Date, upon the death of the Beneficiary, upon
the marriage of an unmarried Member, or upon the cessation of a Member's
Total and Permanent Disability, whichever event shall first occur.
(d) Any election made under Section 4.07 (including any waiver or revocation
thereof) shall be made on a form approved by and filed with the Retirement
Committee and in accordance with the term "Beneficiary" as defined in this
Section 4.07.
(e) Notwithstanding the provisions of Section 4.07(a), a Member or former
Member whose employment terminated on or after January 1, 1976 and prior
to August 23, 1984 and who is entitled to a retirement allowance or vested
benefit pursuant to the provisions of Section 4.03 or 4.05, but who is not
yet in receipt thereof, may elect, on or after August 23, 1984 and prior
to the commencement of such retirement allowance or vested benefit, to
have the provisions of Section 4.07(a)(iii) apply to him or her.
212
Page 33
4.10 Payment of Benefits
(a) Unless otherwise provided under an optional benefit elected pursuant to
Section 4.06, the survivor's benefit available under Section 4.07 or the
provisions of Section 4.10(e)(ii), all retirement allowances, vested
benefits or other benefits payable will be paid in monthly installments
for each month beginning with (i) the month in which the Member has
reached his or her Normal Retirement Date and has retired from active
service, (ii) the month in which a Member has reached his or her Postponed
Retirement Date and retired from active service, (iii) the month next
following the month in which a Member or former Member files a proper
application requesting commencement of his or her vested benefit, standard
early retirement allowance or disability retirement allowance, or (iv) the
month in which benefits under an optional benefit under Section 4.06 or
the survivor's benefits under Section 4.07 become payable, whichever is
applicable. Such monthly installments shall cease with the payment for the
month preceding the month in which the recipient dies. In no event shall a
retirement allowance or vested benefit be payable to a Member who
continues in or resumes active service with the Company or an Associated
Company for any period between his or her Normal Retirement Date and
Postponed Retirement Date, except as provided in Sections 4.02(d) and
4.10(e).
(b) In any case, a lump sum payment equal to the retirement allowance or
vested benefit payable under Section 4.01, 4.02, 4.03, 4.04 or 4.05 or any
pre-retirement spouse's benefit payable under Section 4.07(a) multiplied
by the appropriate factor contained in Table 3 of Schedule I shall be made
in lieu of any retirement allowance or vested benefit payable to a Member
or former Member or any pre-retirement spouse's benefit payable to a
spouse of a Member or a former Member, if the lump sum present value of
such benefit amounts to $3,500 ($5,000 effective January 1, 1998) or less.
For distributions prior to September 1, 1995, however, in no event shall
that adjustment factor
213
Page 34
produce a lump sum that is less than the amount determined by using the
interest rate assumption used by the Pension Benefit Guaranty Corporation
for valuing benefits for determining lump sum payments under single
employer plans that terminate on January 1 of the Plan Year in which the
Annuity Starting Date occurs. For distributions on or after September 1,
1995, in no event shall that adjustment factor produce a lump sum that is
less than the amount determined by using the "Applicable Mortality Table"
(as such term is defined in Code Section 417(e)(3)(A)(ii)(II)) and the
interest rate on 30-year Treasury Securities for December of the year
preceding the Plan Year in which the Annuity Starting Date occurs. The
lump sum payment shall be made as soon as administratively practicable
following the date the Member has terminated employment or died, but in
any event prior to the date his or her benefit payment would have
otherwise commenced.
In the event a Member is not entitled to any retirement allowance or
vested benefit upon his or her termination of employment, he or she shall
be deemed "cashed-out" under the provisions of this paragraph (b) as of
the date he or she terminated service.
4.11 Re-employment of former Member or retired Member
(b) Optional forms of pension benefits
If the Member is reemployed, any previous election of an optional benefit
under Section 4.06 or a survivor's benefit under Section 4.07 shall be
revoked.
(c) Benefit payments at subsequent termination or retirement
(i) In accordance with the procedure established by the Retirement
Committee on a basis uniformly applicable to all Members similarly
situated, upon the subsequent retirement of a Member in service
after his or her Normal Retirement Date, payment of such Member's
214
Page 35
retirement allowance shall resume no later than the third month
after the final month during the reemployment period in which he or
she completes at least 40 Hours of Service.
(ii) Upon the subsequent retirement or termination of employment of a
retired or former Member, the Retirement Committee shall, in
accordance with rules uniformly applicable to all Members similarly
situated, determine the amount of vested benefit or retirement
allowance which shall be payable to such Member at such subsequent
retirement or termination. Such vested benefit or retirement
allowance shall be reduced by an amount of Equivalent Actuarial
Value to the benefits, if any, other than disability retirement
allowance payments, he or she received before the earlier of the
date of his or her restoration to service or his or her Normal
Retirement Date, provided that no such reduction shall reduce such
retirement allowance or vested benefit below the original amount of
retirement allowance or vested benefit earned but not received or
retirement allowance or vested benefit previously received by such
Member in accordance with the terms of the Plan in effect during
such previous employment, adjusted to reflect the election of any
survivor's benefits pursuant to Section 4.07(a)(iii).
4.16 Minimum Adjusted Benefit
(a) The adjustment factor applied to a retirement allowance or vested benefit
payable to any Member or former Member who terminates employment on or
after October 1, 1985, or to the Beneficiary of such Member or former
Member, shall not result in a retirement allowance or vested benefit which
is less than the adjusted retirement allowance or vested benefit which
would have been payable to such Member, former Member or Beneficiary under
the provisions of the Southeast
215
Page 36
Forest Plan as in effect on September 30, 1985 based on Benefit Service
rendered up to and including September 30, 1985.
(b) The adjustment factor applied to a retirement allowance or vested benefit
payable to any Member or former Member who terminates employment on or
after January 1, 1989, or to the Beneficiary of such Member or former
Member, shall not result in a retirement allowance or vested benefit which
is less than the adjusted retirement allowance or vested benefit which
would have been payable to such Member, former Member or Beneficiary under
the provisions of the Southeast Forest Plan as in effect on December 31,
1988 based on Benefit Service rendered up to and including December 31,
1988.
216
Page 1
SCHEDULE II
(SOUTHEAST FOREST RESOURCES)
Effective as of September 1, 1986, the Retirement Allowances payable to the
following retired Members, contingent annuitants or surviving spouses shall be
supplemented in the amounts listed below, and shall be payable after the death
of a Member in accordance with the provisions of Section 4.06 of the Plan, if
applicable.
SOCIAL MONTHLY
NAME SECURITY NO. SUPPLEMENT
---- ------------ ----------
Homer Betts ###-##-#### $ 21.50
Carl M. Harrell ###-##-#### 11.00
Bessie Mae Hill ###-##-#### 16.00
Ernest Johnson ###-##-#### 20.50
W. J. Kemp ###-##-#### 21.00
John L. Kirkland, Sr. ###-##-#### 15.00
R. L. Lauramore ###-##-#### 14.50
Robert D. McIntosh ###-##-#### 20.00
Henry Mikulka ###-##-#### 18.50
Carlton B. Persall ###-##-#### 17.50
Mark M. Roberts ###-##-#### 19.50
Elizabeth J. Robson ###-##-#### 19.50
Dean Rossin ###-##-#### 11.00
McKinley Taylor ###-##-#### 14.00
Harold D. Thomas ###-##-#### 14.00
Leonard Thrift ###-##-#### 16.50
Winnie B. William ###-##-#### 17.50
217
Page 2
SCHEDULE II
(SOUTHEAST FOREST RESOURCES)
Effective as of October 1, 1988, the Retirement Allowances payable to the
following retired Members, contingent annuitants or surviving spouses shall be
supplemented in the amounts listed below, and shall be payable after the death
of a Member in accordance with the provisions of Section 4.06 of the Plan, if
applicable.
SOCIAL MONTHLY
NAME SECURITY NO. SUPPLEMENT
---- ------------ ----------
Homer Betts ###-##-#### $ 32.45
David Burdette ###-##-#### 40.64
Joyce M. Fitzgerald ###-##-#### 10.00
Edward M. Hickox ###-##-#### 15.16
Bessie Mae Hill ###-##-#### 29.13
Ernest Johnson ###-##-#### 11.91
Winnie B. Jones ###-##-#### 10.61
W. J. Kemp ###-##-#### 22.31
John L. Kirkland, Sr. ###-##-#### 55.03
R. L. Lauramore ###-##-#### 62.86
Robert D. McIntosh ###-##-#### 68.89
Ruth C. Mikulka ###-##-#### 28.05
Carlton B. Persall ###-##-#### 13.68
Jessie Mae Reed ###-##-#### 10.00
Mark M. Roberts ###-##-#### 79.01
Elizabeth Robson ###-##-#### 31.80
Dean Rossin ###-##-#### 70.66
Allen Rossin, Jr. ###-##-#### 33.19
Joe G. Rozier ###-##-#### 16.70
Tot. W. Sowell ###-##-#### 29.57
Clyde L. Sullivan ###-##-#### 39.46
McKinley Taylor ###-##-#### 18.07
Lonnie A. Thomas ###-##-#### 10.00
Leonard Thrift ###-##-#### 31.87
Ollie Lee Trail ###-##-#### 22.03
Hugh L. Turner ###-##-#### 10.00
218
Page 3
SCHEDULE II
(SOUTHEAST FOREST RESOURCES)
Effective as of January 1, 1996, the Retirement Allowance payable to the
following retired Members, contingent annuitants or surviving spouses shall be
supplemented in the amounts listed below, and shall be payable after the death
of a Member in accordance with the provisions of Section 4.06 of the Plan.
SOCIAL MONTHLY
NAME SECURITY NO. SUPPLEMENT
---- ------------ ----------
David Burdette ###-##-#### $ 29.69
Joyce M. Fitzgerald ###-##-#### 13.38
James W. Godwin ###-##-#### 10.00
Edward M. Hickox ###-##-#### 63.65
Bessie Mae Hill ###-##-#### 21.32
Winnie B. Jones ###-##-#### 10.00
John L. Kirkland ###-##-#### 40.13
Robert D. Mcintosh ###-##-#### 50.27
Ruth C. Mikulka ###-##-#### 21.82
Jessie Mae Reed ###-##-#### 17.49
Allen Rossin, Jr. ###-##-#### 40.43
Dean Rossin ###-##-#### 51.60
Joe G. Rozier ###-##-#### 70.12
Dewey Sapp ###-##-#### 25.55
Myrtle Sowell ###-##-#### 10.00
Ruby Aleene Sullivan ###-##-#### 24.11
Mc Kinley Taylor ###-##-#### 13.23
Lonnie A. Thomas ###-##-#### 30.72
Jack Thrift ###-##-#### 11.03
Ollie Lee Trail ###-##-#### 60.71
Hugh L. Turner ###-##-#### 28.81