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EXHIBIT 10-B-3
(AS AMENDED THROUGH DECEMBER 20, 1993)
__________________________________________
CHRYSLER
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
CONSOLIDATED
AS OF JANUARY 1, 1994
__________________________________________
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CHRYSLER
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
DATED AS OF JANUARY 1, 1994
Chrysler Corporation (or between June 1, 1986 and December 31, 1989
its subsidiary Chrysler Motors Corporation), a corporation organized and
existing under the laws of the State of Delaware (hereinafter called the
"Corporation"), has had in effect since January 1, 1985 a plan called the
Chrysler Supplemental Executive Retirement Plan (prior to June 1, 1986 called
the Chrysler Corporation Supplemental Executive Retirement Plan and hereinafter
called the "Plan"). The Corporation amended the Plan in certain respects as of
June 12, 1986, July 11, 1986, August 26, 1986, August 14, 1987, January 5,
1988, July 29, 1988, December 14, 1988, January 19, 1989, May 30, 1989, August
15, 1989, October 17, 1989, December 29, 1989, January 17, 1990, March 30,
1990, June 7, 1990, April 5, 1991, December 6, 1991, February 20, 1992, March
5, 1992, March 31, 1992, May 19, 1992, June 11, 1992, January 15, 1993,
February 17, 1993, April 30, 1993, November 19, 1993, December 2, 1993, and
December 20, 1993. Chrysler Corporation superseded Chrysler Motors Corporation
as Plan sponsor and Plan Administrator effective January 1, 1990.
The Corporation now desires to consolidate the Plan and all subsequent
amendments.
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CHRYSLER
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
AS OF JANUARY 1, 1994
PAGE
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ARTICLE I Purpose of Plan 4
ARTICLE II Definitions 9
ARTICLE III Participation 16
ARTICLE IV Retirement and Deferred Retirement Benefits 17
4.01 Normal Retirement 17
4.02 Special Early Retirement 18
4.03 Early Retirement at Employee Option 21
4.04 PTD Retirement 23
4.05 Retirement Under Employment Contract 24
4.06 Deferred Vested Benefits 26
4.07 - 4.14 Other Provisions 28
ARTICLE V Death Benefits 35
ARTICLE VI Payment of Benefits 40
ARTICLE VII Contributions 52
ARTICLE VIII Plan Administration 53
ARTICLE IX Amendment, Termination 58
ARTICLE X General 60
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ARTICLE XI Special Provisions Applicable to 63
Designated Participants
APPENDIX A Actuarial Assumptions Under the Plan 65
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CHRYSLER
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
ARTICLE I. PURPOSE OF PLAN
1.01 The Plan is maintained for the purpose of providing the
following supplemental retirement benefits to Employees:
A. Incentive Compensation Retirement Benefit
This benefit is based on the aggregate awards earned out and paid to
Employees under the Incentive Compensation Plan, the Long Term
Incentive Plan and the Long Term Performance Plan.
B. ERISA Excess Retirement Benefit
This benefit is based on the excess of retirement benefits calculated
under the Salaried Employees' Retirement Plan without regard to the
limitations under Section 415 or Section 401(a)(17) of the Internal
Revenue Code, as amended, over the benefits payable under the Salaried
Employees' Retirement Plan because of such limitations.
This benefit includes a contributory benefit based on any
Employee contributions made pursuant to Section VII of this Plan that
otherwise could have been contributed under the Salaried Employees'
Retirement Plan were it not for contribution limitations imposed under
Section 401(a)(17) of the Internal Revenue Code, as amended. Although
this benefit shall be calculated and paid based solely on
contributions made within this Plan, it shall be computed in the same
manner as the contributory benefit is calculated under the Salaried
Employees' Retirement Plan.
The Benefit as calculated above, shall be further increased
(prior to the time the Salaried Employees'
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Retirement Plan is amended to comply with applicable provisions of the
Tax Reform Act of 1986) to include the amount, if any, of additional
non-contributory benefits excluded from payment under the Salaried
Employees' Retirement Plan by provisions of the Internal Revenue
Service Model Amendment #2, included in IRS Notice 88-31, as
referenced in Subsection 4.01C of the Salaried Employees' Retirement
Plan. In respect to Employees who are participants in the Chrysler
First Retirement Account, all above references in this paragraph to
the Salaried Employees' Retirement Plan shall be deemed to mean the
Chrysler First Retirement Account. In respect to Employees who are
participants in the Gulfstream Aerospace Corporation Pension Plan, all
such references in this paragraph to the Salaried Employees'
Retirement Plan shall be deemed to mean the Gulfstream Aerospace
Corporation Pension Plan. The forms of benefits payable under this
Plan to Employees who are participants in the Chrysler First
Retirement Account or the Gulfstream Aerospace Corporation Pension
Plan are the forms of benefits payable under such plans.
C. Post Retirement Supplemental Benefit
This benefit is payable to Employees who retired as elected officers
of Chrysler Corporation and is based on the excess, if any, of the
Basic Pension Rate in effect on January 1, 1986 under the Chrysler
Pension Plan over the Basic Pension Rate in effect under the Pension
Plan on the date the officers retired, multiplied by the Employees'
years of Credited Service.
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D. American Motors Supplemental Pension Plan Benefit
This benefit is payable to Employees eligible for benefits under the
American Motors Corporation Supplemental Pension Plan, a plan
terminated by merger into this Plan effective December 31, 1989.
Benefits under the American Motors Supplemental Pension Plan shall be
frozen as of date of merger. If any Employee is eligible to receive a
benefit under the non-contributory part of the Chrysler Salaried
Employees' Retirement Plan and under an American Motors Corporation
Pension Plan (including for this purpose any frozen American Motors
Corporation Pension Plan that has been merged into this or any other
Chrysler Pension Plan) and if his total benefit amount under Chrysler
and American Motors Corporation Pension Plans exceeds the amount he
would have received under Chrysler plans had he participated under
Chrysler plans for the entire period he was employed by American
Motors Corporation and Chrysler, his benefit under the
non-contributory part of the Chrysler Salaried Employees' Retirement
Plan will be reduced (but not below zero) by the amount of such
excess. This reduction shall supersede the minimum benefit guarantee
that would otherwise be applicable under the American Motors
Supplemental Pension Plan benefit payable under this Plan.
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E. Modified Special Early Retirement Program Special Leave of
Absence Benefit
This benefit is payable, prior to retirement under the Salaried
Employees' Retirement Plan, to all very highly compensated employees
(within the meaning of the Internal Revenue Code) and highly
compensated employees (as defined by such Code) designated by the
Corporation who choose to cease active employment with the Corporation
between July 31, 1989 and October 31, 1989 or between January 31, 1990
and May 31, 1990 under terms of the 1989 or 1990 Chrysler Modified
Special Early Retirement Programs. The benefit payable pursuant to
this paragraph shall equal the benefit which would have been payable
under the Salaried Employees' Retirement Plan, the Pension Plan and
the ERISA Excess Retirement Benefits portion of this Plan had the
Employees retired at Corporation option under the Salaried Employees'
Retirement Plan at the date he ceased active employment.
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SUPPLEMENTARY MINIMUM BENEFIT
This benefit is payable to Salaried Employees (as defined in the
Salaried Employees' Retirement Plan) who cease active employment with
the Corporation under the 1989 or 1990 Chrysler Modified Special Early
Retirement Programs (either through retirement or through a Special
Leave of Absence as described in the first paragraph of this Section
1.01E). Such benefit is equal to the amount by which a Salaried
Employee's combined monthly benefit for retirement at Corporation
option under whichever is applicable of the Salaried Employees'
Retirement Plan, the Pension Plan, the ERISA Excess Retirement
Benefits portion of this Plan and the Special Leave of Absence Benefit
provisions of this Section 1.01E are less than 115% of what his total
retirement benefits would have been under the Salaried Employees'
Retirement Plan, the Pension Plan and, if applicable, the ERISA Excess
Retirement Benefits portion of this Plan had he retired at his own
option.
Notwithstanding the foregoing provisions of this Section 1.01E, no
benefits of any kind shall be payable pursuant to this Section 1.01E
for periods commencing on or after January 1, 1992.
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ARTICLE II. DEFINITIONS
Unless the text clearly indicates otherwise:
2.01 "Actuarial Equivalent" means an amount of equal value
actuarially, determined pursuant to actuarial tables or factors adopted by the
Committee as set forth in Appendix A to this Plan.
2.02 "Actuary" means the actuary for the Plan appointed by Chrysler
Corporation.
2.03 "Basic Pension Rate" means the monthly basic pension rate for
each year of service as established from time to time under the Pension Plan.
2.04 "Beneficiary" means any one or more individuals, partnerships,
corporations, fiduciaries or other entities designated under the Salaried
Employees' Retirement Plan as the beneficiary or contingent beneficiary to
receive any death benefits payable under this Plan, unless a separate
designation under the Plan is received by the Committee. If no beneficiary
designation has been filed under the Salaried Employees' Retirement Plan or
under the Plan, the beneficiary shall be the executor of the former Employee's
will or the probate administrator, on behalf of the former Employee's estate.
2.05 "Committee" means the Employee Benefits Committee established
by the Board of Directors of Chrysler Corporation by Resolution dated December
10, 1975, as constituted from time to time.
2.06 "Commuted Value" means an amount equal to the lump sum value
at the date of determination of periodic payments payable thereafter discounted
from the respective payment dates of such periodic payments to the date of
determination at the rate of
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interest adopted by the Committee and set forth in Appendix A to this Plan.
2.07 "Corporation" means Chrysler Corporation and (i) any
corporation organized under the laws of the United States or any state thereof,
all or substantially all of the stock of which is owned by Chrysler Corporation
directly or through one or more subsidiaries which the Committee has designated
by resolution as a corporation to which, and to the salaried employees of
which, this Plan shall apply, and (ii) any corporation organized under the laws
of a foreign government or subdivision thereof, all or substantially all of the
stock of which is owned by Chrysler Corporation directly or through one or more
subsidiaries, which is a subsidiary corporation with respect to which there is
in effect an agreement entered into by Chrysler Corporation under Section 3121
(1) of the Internal Revenue Code or under any amendment thereof in effect at
the relevant time, and which at the time the Committee shall have designated by
resolution as a corporation to which, and to the salaried employees of which,
this Plan shall apply, but such corporation shall be included in the term
"Corporation" only with respect to those of its Employees who have been
transferred to such employment with such subsidiary from employment in the
United States with Chrysler Corporation or one of its subsidiary corporations,
and (iii) for purposes of the Incentive Compensation Retirement Benefits only,
any corporation organized under the laws of a foreign government or subdivision
thereof, all or substantially all of the stock of which is owned by Chrysler
Corporation directly or through one or more subsidiaries, which the Committee
has designated by resolution as a corporation
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to which, and to the salaried employees of which, this Plan shall apply.
2.08 "Credited Service" means the credited service an Employee has
under a Pension Plan or, in the case of an Employee who is an elected officer
or director of the Corporation, the credited service he would have if elected
officers and directors were eligible under a pension plan. Notwithstanding the
above, however, in the case of an individual who has become an Employee of the
Corporation or of Chrysler Corporation or one of its subsidiaries (excluding
American Motors Corporation and its subsidiaries as of August 5, 1987) upon
transfer after August 5, 1987 from employment with American Motors Corporation
or one of its subsidiaries, employment by American Motors Corporation or any of
its subsidiaries up to and including the last day he was so employed shall be
deemed to be included in Credited Service under this Plan for all purposes
other than for computation of benefit amounts.
2.09 "Employee" means a person (i) who, at the time, is employed by
the Corporation or a Non-Participating Subsidiary, or (ii) who, for the
purposes of the Incentive Compensation Retirement Benefits only, is employed by
Chrysler Canada Ltd., or Chrysler Credit Canada Ltd., and (iii) who is, or who
has been but no longer is, a Salaried Employee. Notwithstanding the foregoing,
the term "Employee" shall in no event include (i) persons employed on a
temporary, fixed term, project or daily basis, (ii) persons who are retained
under a consultant or independent contractor agreement, or on a Service
Agreement basis or who are assigned by an employment agency, supplier,
subcontractor or other provider of personnel. Where used in this Plan the
terms "former Employee," "retired
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Employee" or "terminated Employee" shall mean a person who at one time was an
Employee but who, by reason of retirement or other termination of employment is
no longer employed by the Corporation, a Non-Participating Subsidiary, Chrysler
Canada Ltd., or Chrysler Credit Canada Ltd., as applicable.
2.10 "ERISA" means the Employee Retirement Income Security Act of
1974, as amended.
2.11 "ERISA Excess Death Benefits" means the death benefit
calculated by reference to the ERISA Excess Retirement Benefit of an Employee
or former Employee as determined in whichever is applicable of Sections 5.01,
5.02, or 5.03.
2.12 "ERISA Excess Retirement Benefit" means a monthly retirement
benefit equal to the excess of the retirement benefit calculated under the
Salaried Employees' Retirement Plan without regard to the benefit and
compensation limitations set forth in that plan or imposed under Section 415 or
Sub-paragraph 401(a)(17) of the Internal Revenue Code over the benefit payable
under the Salaried Employees' Retirement Plan, determined as provided in
Section 4.01, because of such limitation.
2.13 "Incentive Compensation Plan" means the Chrysler Corporation
Incentive Compensation Plan, as in effect from time to time, established under
a stockholders' resolution adopted in 1929, as amended.
2.14 "Incentive Compensation Death Benefit" means the death benefit
calculated by reference to Incentive Compensation Retirement Benefits of an
Employee or retired Employee as determined in whichever is applicable of
Sections 5.01, 5.02, 5.03, or 5.04.
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2.15 "Incentive Compensation Retirement Benefit" means a monthly
retirement benefit calculated by reference to the aggregate awards made to an
Employee under (a) the Incentive Compensation Plan, (b) the Chrysler
Corporation Long-Term Incentive Plan under the Incentive Compensation Plan
(herein called the "Long-Term Incentive Plan") and (c) the Chrysler Corporation
Long-Term Performance Plan under the Chrysler Corporation 1991 Stock
Compensation Plan (herein called the "Long-Term Performance Plan"), determined
as provided in Section 4.01.
2.16 "Non-Participating Subsidiary" means any branch of Chrysler
Corporation, or any of its wholly-owned subsidiaries, located outside the
United States and its possessions and any subsidiary of Chrysler Corporation
whether organized under the laws of the United States or of any state thereof
or of a foreign government or subdivision thereof, a majority of the voting
stock of which Chrysler Corporation owns at the time directly or through one or
more wholly-owned subsidiaries, and which branch or subsidiary the Committee
shall at the time have designated by resolution as a branch or corporation to
which and to the Employees of which the provisions of the Plan relating to a
Non- Participating Subsidiary shall apply. A branch of Chrysler Corporation,
or any of its wholly-owned subsidiaries, located outside the United States and
its possessions or a subsidiary described in clause (ii) of Section 2.07 may be
a Non-Participating Subsidiary with respect to those of its Employees who were
not transferred to such branch or subsidiary from employment in the United
States with Chrysler Corporation or one of its subsidiary corporations.
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2.17 "Normal Retirement Date" means the last day of the month in
which an Employee attains his 65th birthday.
2.18 "Pension Plan" means the Chrysler Pension Plan or the Chrysler
Financial Corporation Pension Plan, as applicable.
2.19 "Permanent Total Disability" means that the person is
receiving permanent total disability benefits under a Pension Plan or a group
insurance program of the Corporation.
2.20 "Plan" means this Supplemental Executive Retirement Plan.
2.21 "Plan Year" means the period of 12 calendar months ending with
the last day of the month of December in each year.
2.22 "Post Retirement Supplemental Benefit" means a monthly
retirement benefit payable to an Employee who retired or retires as an elected
officer of Chrysler Corporation, determined as provided in Section 4.08.
2.23 "Salaried Employee" means a person (i) who at the relevant time
is employed by the Corporation or a Non-Participating Subsidiary, or (ii) who,
for purposes of the Incentive Compensation Retirement Benefits only, is employed
by Chrysler Canada Ltd., or Chrysler Credit Canada Ltd., and who receives
regular compensation in the form of a base Salary, except that a person who is
employed either by a subsidiary of Chrysler Corporation described in clause (ii)
of Section 2.07 or a branch of Chrysler Corporation located outside the United
States and its possessions shall, in either such case, be deemed to be a
Salaried Employee only if he has been transferred to such employment, either
with such subsidiary or such branch, from employment in the United States.
2.24 "Salaried Employees' Retirement Plan (SERP)" means the
Chrysler Salaried Employees' Retirement Plan or the Chrysler
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Financial Corporation Salaried Employees' Retirement Plan, as applicable, as in
effect from time to time.
2.25 "Salary" means the base salary payable monthly (after any
deductions or any salary deferral pursuant to an agreement entered into under
the Chrysler Salaried Employees' Savings Plan, as amended, or the Chrysler
Salaried Employees' Supplemental Savings Plan, as amended) not including any
contingent, incentive or deferred compensation, bonuses, or other forms of
extra compensation. The term "Salary" shall include base salary amounts
deferred pursuant to the Chrysler Stock Unit Investment Program. The term
"Salary" shall further include amounts deducted from base salary under
provisions of the Chrysler Best By Choice Program but shall not include amounts
added to base compensation payments pursuant to the Best By Choice Program.
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ARTICLE III. PARTICIPATION
3.01 An Employee who has received or receives an award of incentive
compensation under the Incentive Compensation Plan for the year 1983 or any
subsequent year shall participate in the Plan with respect to the Incentive
Compensation Retirement Benefit and the Incentive Compensation Death Benefit.
3.02 An Employee who retires under the SERP and whose retirement or
termination benefits as calculated under SERP are in excess of the benefit and
compensation limitations set forth in that plan or imposed under Section 415 or
Sub-paragraph 401(a)(17) of the Internal Revenue Code shall participate in the
Plan with respect to the ERISA Excess Retirement Benefit and ERISA Excess Death
Benefit.
3.03 An Employee who retired as an elected officer of Chrysler
Corporation prior to January 1, 1986 shall participate in the Plan with respect
to the Post Retirement Supplemental Benefit.
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ARTICLE IV. RETIREMENT AND DEFERRED RETIREMENT BENEFITS
4.01 An Employee who retires under the SERP, or for purposes of the
Incentive Compensation Retirement Benefits also under the Chrysler Canada Ltd.
Salaried Employees' Retirement Plan on or after his Normal Retirement Date
shall be entitled to receive under this Plan, commencing on the first day of
the month next following his retirement date, retirement benefits equal to the
sum of (i) any Incentive Compensation Retirement Benefit for which he may be
eligible as provided in Subsection A, and (ii) any ERISA Excess Retirement
Benefit for which he may be eligible as provided in Subsection B.
A. The Incentive Compensation Retirement Benefit of an Employee
retiring as provided above in this Section 4.01 shall be a monthly
amount equal to the sum of the following:
1. An amount equal to .5 of 1 percent (.5%) of his
Incentive Compensation Plan awards for 1983 and 1984,
plus
2. An amount equal to such percentage of his combined (a)
Incentive Compensation Plan award for each of the
years 1985 through 1992 and (b) Long-Term Incentive
Plan award (whether such award is payable in cash or
Chrysler Stock) earned out and paid for performance
cycles ending in each of the years 1987 through 1992,
as the Incentive Compensation Committee of the Board
of Directors shall determine, but not more than .5 of
1 percent (.5%) of his combined award for any such
year, plus
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3. An amount equal to such percentage of his combined
(a) Incentive Compensation Plan award for 1993 and
each year thereafter and (b) Long-Term Performance
Plan award for performance cycles ending in 1993 and
each year thereafter as the Incentive Compensation
Committee of the Board of Directors shall determine,
but not more than .5 of 1 percent (.5%) of his
combined award for any such year.
B. The ERISA Excess Retirement Benefit of an Employee retiring as
provided above in this Section 4.01 shall be a monthly amount equal to
the excess of:
1. The retirement benefit calculated under the
provisions of Section 4.01 of the SERP (irrespective
of whether payments under the SERP are actually made
in the form described in Section 4.01 of the SERP)
without regard to the benefit and compensation
limitations set forth in that plan or imposed under
Section 415 or Sub-paragraph 401(a)(17) of the
Internal Revenue Code over
2. The retirement benefit calculated under Section 4.01
of the SERP because of such ERISA limitations.
Notwithstanding anything to the contrary in this Plan, the
retirement benefits of an Employee of the Corporation or a Non-Participating
Subsidiary, who continues active service until his 65th birthday, shall be
nonforfeitable.
4.02 An Employee who retires under the Special Early Retirement
provisions of the SERP or, for purposes of the Incentive Compensation
Retirement Benefit, retires at the option of the
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Corporation under the Chrysler Canada Ltd. Salaried Employees' Retirement Plan
on or after his 55th birthday but before his 62nd birthday and who at the date
of his early retirement has 10 years or more of Credited Service (or who shall
have attained such lesser age or years of Credited Service as may be required
under terms of a specific Early Retirement Program if he retires pursuant to
such program) shall be entitled to receive under this Plan, commencing on the
first day of the month next following the date of his retirement, retirement
benefits equal to the sum of (i) any Incentive Compensation Retirement Benefit
for which he may be eligible as provided in Subsection A., and (ii) any ERISA
Excess Retirement Benefit for which he may be eligible as provided in
Subsection B.
A. The Incentive Compensation Retirement Benefit of an Employee
retiring early as provided in this Section 4.02 shall be a
monthly amount calculated as described in Section 4.01A.
B. The ERISA Excess Retirement Benefit of an Employee retiring
early as provided in this Section 4.02 shall be a monthly
amount calculated as described in Section 4.01B.
C. The reduced age, Credited Service, and date specifications
applicable to specific Special Early Retirement Programs are
as follows:
1. 1991 Program
a. Minimum age: 53
b. Minimum Credited Service: 10 years
c. Eligibility date: August 31, 1991
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d. Retirement date: April 30, 1991 or, if
later, the end of the month prior to
September, 1991 when age and Credited Service
requirements are first met (Retirements may
occur at a later date as approved by the
Corporation and agreed to by the Employee but
not beyond December 31, 1991)
2. 1992 Program
a. Minimum age: 55
b. Minimum Credited Service: 7 years
c. Eligibility date: December 31, 1992 (Must be
actively at work during the March 1, 1992 to
May 31, 1992 period)
d. Retirement date: August 31, 1992 or as early
as May 31, 1992 if age and Credited Service
requirements are met or, in the case of an
Employee who first meets the age and Credited
Service requirements of the Program between
September 1, 1992 and December 31, 1992, the
end of the month the Employee first meets
such requirements (Retirement may occur at a
later date as approved by the Corporation and
agreed to by the Employee but not beyond
December 31, 1992)
3. 1993 Program
a. Minimum age: 54
b. Minimum Credited Service: 10 years
c. Eligibility date: December 31, 1993
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d. Retirement date: April 30, 1993 or, if
later, the end of the month prior to January
1, 1994 when age and Credited Service
requirements are first met (Retirements may
occur at a later date as approved by the
Corporation and agreed to by the Employee but
not beyond December 31, 1993)
Provided, however, that in the case of an Employee retiring under this
Section 4.02 who is employed or becomes employed by any competing
firm, as determined by the Committee, payment of his monthly
retirement benefits provided under Section 4.02A shall not be made for
any month during which he is so employed by any such competing firm
prior to the first day of the month next following his 65th birthday.
4.03 An Employee who retires under the SERP, or for purposes of the
Incentive Compensation Retirement Benefit also under the Chrysler Canada
Ltd. Salaried Employees' Retirement Plan at his option on or after his 55th
birthday but before his 65th birthday and (a) who has not attained age 60 and
whose combined years of age and years of Credited Service (to the nearest 1/12
in each case) shall total 85 or more, or (b) who has attained age 60 but not 65
and has 10 or more years of Credited Service, shall in any such case be entitled
to receive under this Plan, commencing on the first day of the month next
following the date of his retirement, retirement benefits equal to the sum of
(i) any Incentive Compensation Retirement Benefit for which he may be eligible
as provided in Subsection A, and (ii) any ERISA Excess Retirement
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Benefit for which he may be eligible as provided in Subsection B, subject to
the provisions of Subsection C, below.
A. The Incentive Compensation Retirement Benefit of an Employee
retiring early as provided in this Section 4.03 shall be a monthly
amount calculated as described in Section 4.01A.
B. The ERISA Excess Retirement Benefit of an Employee retiring
early as provided in this Section 4.03 shall be a monthly
amount calculated as described in Section 4.01B.
C. The retirement benefits described above in Sections 4.03A and
4.03B shall be reduced by multiplying such benefits by a
percentage as set forth in the following table:
Age When
Benefit Commences Percentage*
55 57.9%
56 63.5
57 69.4
58 75.2
59 80.8
60 86.7
61 93.3
62 100.0
63 100.0
64 100.0
* Prorated for intermediate ages computed to the nearest whole month
Provided, however, that in the case of an Employee retiring under this
Section 4.03 who is employed or becomes employed by any
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company other than the Corporation, payment of his monthly retirement benefit
provided under Section 4.03A shall not be made for any month during which he is
so employed by any company other than the Corporation prior to the first day of
the month next following his 65th birthday, unless the Committee approves such
payment annually.
4.04 An Employee who retires under the SERP, or for purposes of the
Incentive Compensation Retirement Benefit also under the Chrysler Canada Ltd.
Salaried Retirement Plan because of Permanent Total Disability with 10 years or
more of Credited Service (i) on or after his 55th birthday but before his
Normal Retirement Date or (ii) before his 55th birthday and who has been a
participant for at least 10 years since he attained age 35, or (iii) before his
55th birthday and who has been a participant for five years but less than 10
years since he attained age 35, shall be entitled to receive under this Plan,
retirement benefits equal to the sum of (i) any Incentive Compensation
Retirement Benefit for which he may be eligible as provided in Subsection A and
(ii) any ERISA Excess Retirement Benefit for which he may be eligible as
provided in Subsection B below.
A. The Incentive Compensation Retirement Benefits of an Employee
retiring as provided in this Section 4.04 shall be a monthly amount
calculated as described in Section 4.01A and
B. The ERISA Excess Retirement Benefits of an Employee retiring as
provided in this Section 4.04 shall be a monthly amount as calculated
in Section 4.01B and such monthly retirement benefits shall commence
on the first day of the month next following the date of his
retirement, except that
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with respect to an Employee retiring as described in (iii) above in
this Section 4.04, such monthly retirement benefits shall commence on
the first day of the month immediately following the month in which he
attains age 55. Provided, however, that in the case of an Employee
retiring under this Section 4.04 who is employed or becomes employed
by any competing firm, as determined by the Committee, payment of his
monthly retirement benefits provided under Section 4.04A shall not be
made for any month during which he is so employed by such competing
firm prior to the first day of the month next following his 65th
birthday.
4.05
A. An Employee who retires under an employment contract at the
option of the Corporation or because of Permanent Total Disability on
or after his 55th birthday but before his 65th birthday shall be
entitled to receive under this Plan, commencing on the first day of
the month next following his retirement date, an Incentive
Compensation Retirement Benefit in a monthly amount calculated as
described in Section 4.01A.
Provided, however, that in the case of an Employee retiring
under this Section 4.05A who is employed or becomes employed by any
competing firm, as determined by the Committee, payment of his monthly
retirement benefits provided under Section 4.05A shall not be made for
any month during which he is so employed by any such competing firm
prior to the first day of the month next following his 65th birthday.
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B. An Employee who retires under an employment contract at his
option on or after his 55th birthday but before his 65th birthday
shall be entitled to receive under this Plan, commencing on the first
day of the month next following his retirement date, an Incentive
Compensation Retirement Benefit in a monthly amount calculated as
described in Section 4.01A, reduced by multiplying such benefits by a
percentage as set forth in the following table:
Age When
Benefit Commences Percentage*
55 57.9
56 63.5
57 69.4
58 75.2
59 80.8
60 86.7
61 93.3
62 100.0
63 100.0
64 100.0
*Prorated for intermediate ages computed to the nearest whole month
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Provided, however, that in the case of an Employee retiring under this
Section 4.05B who is employed or becomes employed by any company other than the
Corporation, payment of his monthly retirement benefit provided under Section
4.05B shall not be made for any month during which he is so employed by any
company other than the Corporation prior to the first day of the month next
following his 65th birthday, unless the Committee approves such payment
annually.
C. An Employee who retires under an employment contract, and who
on his retirement date has not attained age 55, shall be entitled to
receive under this Plan, commencing on the first day of the month next
following his Normal Retirement Date, an Incentive Compensation
Retirement Benefit in a monthly amount calculated as described in
Section 4.01 A.
4.06 An Employee whose employment terminates under the SERP, or
for purposes of the Incentive Compensation Retirement Benefits also under the
Chrysler Canada Ltd. Salaried Employees' Retirement Plan otherwise than by
death or retirement shall be entitled to receive under this Plan a deferred
retirement benefit equal to the sum of (i) any Incentive Compensation
Retirement Benefit for which he is eligible as provided in Subsection A below,
and (ii) any ERISA Excess Retirement Benefit for which he is eligible as
provided in Subsection B below, subject to the provisions of Subsections C and
D below.
A. If he has 5 years or more of Credited Service at the date his
employment terminates and (i) his employment terminated other
than because of resignation (an Employee
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who retires under the Pension Plan and is considered as
being terminated under SERP shall be counted as having
terminated but not as having resigned under this Plan) or
discharge or (ii) his employment terminated because of
resignation or discharge and the Employee Benefits Committee
approves vesting of the terminated Employee's accrued Incentive
Compensation Retirement Benefit, he shall be entitled to
receive Incentive Compensation Retirement Benefits in a monthly
amount calculated as described in Section 4.01A. Any non-
vested Incentive Compensation Retirement Benefits are
forfeited. Notwithstanding the preceding provisions of this
Subsection A.(a) all Incentive Compensation Retirement Benefits
accrued as of December 31, 1993 shall be fully vested as of
such date in respect to Band 96 and above employees who have
five or more years of Credited Service as of such date and (b)
all Incentive Compensation Retirement Benefits accrued as of
January 1, 1994 shall be fully vested as of such date in
respect to employees below Band 96 who have five or more years
of Credited Service as of such date.
B. The deferred age 65 ERISA Excess Retirement Benefit he shall
be entitled to receive shall be a monthly amount equal to the
excess of (i) the deferred retirement benefit calculated under
the provisions of Section 4.06 of the SERP without regard to
the benefit limitations contained in section 415(b)(1) and/or
Section 415(e) of the Internal Revenue Code, as amended, over
(ii) the
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deferred retirement benefit payable under SERP because of such
limitation.
C. Any deferred retirement benefits under this Section 4.06
except as otherwise provided below in Subsection D, shall be a
monthly pension commencing as of the first day of the first
month after the Employee attains age 65 in the full unreduced
amount for which he is eligible under this Section 4.06.
D. Deferred retirement benefits paid to a terminated Employee
may, if such Employee makes written application, begin prior
to age 65 (but in no event earlier than the month the
terminated Employee attains age 60) on a reduced Actuarial
Equivalent basis but shall not be paid for any month prior to
age 65 in which the terminated Employee is employed by any
company other than the Corporation, unless the Committee
approves such payment annually, or is employed by any
competing firm, as determined by the Committee.
4.07
A. If a retired Employee who has commenced receiving retirement benefits
under this Plan is reemployed on or after the effective date of the Plan he
shall continue to receive during such reemployment the retirement benefits to
which he is otherwise entitled, provided, however, that such reemployment shall
not result in the accrual of any additional benefits under the Plan.
B. If a former Employee eligible for a deferred retirement
benefit under this Plan, who has not yet commenced receiving such
benefit, is reemployed, then his eligibility therefore
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shall cease and the accrued retirement benefit, if any, he had at the
date his employment terminated shall be reinstated.
C. If a former employee whose employment had terminated as a
result of resignation or discharge is subsequently reemployed, the
Committee may, at its discretion, reinstate all or apart of any
Incentive Compensation Retirement Benefit that had been previously
forfeited pursuant to provisions of Section 4.06 of this Plan.
4.08 A retired Employee who on the date of his retirement was an
elected officer of Chrysler Corporation and who retired under Section 4.01,
4.02, 4.03, 4.04, or 4.05 of the SERP shall be entitled to receive under this
Plan, commencing on January 1, 1986, a Post Retirement Supplemental Benefit
which shall be a monthly amount equal to the excess of (i) the highest Basic
Pension Rate in effect on January 1, 1986 under the Chrysler Pension Plan for
employees who retired when the Employee retired over (ii) the highest Basic
Pension Rate in effect under the Chrysler Pension Plan on the date the Employee
retired, multiplied by the Employee's years of Credited Service.
4.09 No Employee shall be entitled to retirement benefits under
this Plan except as set forth in Sections 4.01, 4.02, 4.03, 4.04, 4.05, 4.08
and 4.12, of this Plan, and no Employee shall have any vested right under the
Plan except such rights, if any, as may accrue to him under Section 4.06 or
Section 4.12. At his Normal Retirement Date, he shall not be entitled to
receive any retirement benefits until his subsequent retirement. At that time
he shall be entitled to receive a monthly retirement benefit commencing on the
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first day of the month next following the date of his retirement in the amount
computed as provided in Section 4.01.
4.10 An Employee who performs any service after December 31, 1987
shall be entitled to have both his Salary and service taken into account for
purposes of calculating his retirement benefit under this Plan, irrespective of
whether such service occurs before or after the Employee's Normal Retirement
Date.
4.11 A Special Incentive Compensation Benefit is payable, prior to
retirement under the Salaried Employees' Retirement plan, to those entitled to
a Special Leave of Absence benefit pursuant to the first paragraph of Section
1.01E who would, if they were retired, be entitled to an Incentive Compensation
Retirement Benefit under this Article IV. The Special Incentive Compensation
Benefit shall be calculated and paid in the same manner as the Incentive
Compensation Retirement Benefit under this Article IV.
4.12 Notwithstanding any other provisions hereof, upon the occurrence
of a (Change in Control) (as defined in Section 4.13), each Employee who has
participated in the Plan with respect to the Incentive Compensation Retirement
Benefit shall be vested in his accrued Incentive Compensation Retirement
Benefit. If the employment of any such Employee by the Corporation is
terminated by the Corporation without (cause) (as defined below) within the
two-year period immediately following a Change in Control, the Corporation
shall pay such Employee, within ten (10) days of such termination, the Commuted
Value of his Incentive Compensation Retirement Benefit, calculated as described
in Section 4.01A and as if payment of such monthly retirement benefit were to
commence on the first day of the month next following his Normal Retirement
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Date. The Commuted Value shall be determined for this purpose by using the
lower of (i) the interest rate set forth in Appendix A to this Plan immediately
prior to such Change in Control, and (ii) the interest rate set forth in such
Appendix A immediately prior to such termination of employment. (Cause), for
purposes of this Section 4.12, shall mean the willful engaging by the Employee
in conduct which is demonstrably injurious to the Corporation, monetarily or
otherwise.
4.13 (Change in Control) shall mean a change in control of Chrysler
Corporation, which shall be deemed to have occurred if the conditions set forth
in any one of the following paragraphs shall have been satisfied:
A. Any Person (defined below) shall become the Beneficial Owner
(defined below) of securities of Chrysler Corporation representing 20%
or more of the combined voting power of Chrysler Corporation's then
outstanding securities (unless the event causing the 20% threshold to
be crossed is an acquisition of securities directly from Chrysler
Corporation);
B. During any period of two consecutive years beginning after
June 7, 1990, individuals who at the beginning of such period
constitute the Board of Directors of Chrysler Corporation and any new
director (other than a director designated by a Person who has entered
into an agreement with Chrysler Corporation to effect a transaction
described in paragraph A, C or D of this Change in Control definition)
whose election or nomination for election was approved by a vote of
at least two-thirds of the directors then in office who either were
directors at the beginning of such two year
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period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority of the Board
of Directors;
C. The stockholders of Chrysler Corporation approve a merger or
consolidation of Chrysler Corporation (other than a merger
or consolidation which would result in the voting securities of
Chrysler Corporation outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining outstanding
or by being converted into voting securities of the entity surviving
such merger or consolidation), in combination with voting securities
of Chrysler Corporation or such surviving entity held by a trustee or
other fiduciary pursuant to any employee benefit plan of Chrysler
Corporation or such surviving entity of any subsidiary of Chrysler
Corporation or such surviving entity, at least 80% of the combined
voting power of the securities of Chrysler Corporation or such
surviving entity outstanding immediately after such merger or
consolidation); or
D. The stockholders of Chrysler Corporation approve a plan of
complete liquidation or dissolution of Chrysler Corporation or an
agreement for the sale or disposition by Chrysler Corporation of all
or substantially all of Chrysler Corporation's assets.
"The following terms, as used in this Change in Control
definition, shall have the meanings stated below:
"Beneficial Owner", with respect to any securities, means any
Person who, directly or indirectly, has the right to vote or dispose
of such securities or otherwise has "Beneficial
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Ownership" of such securities (within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended (the (Exchange Act)),
pursuant to any agreement, arrangement or understanding (whether or
not in writing); provided however, that (i) a Person shall not be
deemed the Beneficial Owner of any security as a result of an
agreement, arrangement or understanding to vote such security (x)
arising solely from a revocable proxy or consent given in response to
a public proxy or consent solicitation made pursuant to, and in
accordance with, the Exchange Act and the applicable rules and
regulations thereunder or (y) made in connection with, or to otherwise
participate in, a proxy or consent solicitation made, or to be made,
pursuant to, and in accordance with, the applicable provisions of the
Exchange Act and the applicable rules and regulations thereunder, in
either case described in clause (x) or clause (y) above, whether or
not such agreement, arrangement or understanding is also then
reportable by such Person on Schedule 13D under the Exchange Act (or
any comparable or successor report), and (ii) a Person engaged in
business as an underwriter of securities shall not be deemed to be the
Beneficial Owner of any securities acquired through such Person's
participation in good faith in a firm commitment underwriting until
the expiration of forty days after the date of such acquisition.
"Person" shall have the meaning ascribed to such term in
Section 3(a)(9) of the Exchange Act, as supplemented by Section
13(d)(3) of the Exchange Act, provided, however, that Person shall not
include (i) Chrysler Corporation, any
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subsidiary of Chrysler Corporation or any other Person controlled by
Chrysler Corporation, (ii) any trustee or other fiduciary holding
securities under any employee benefit plan of Chrysler Corporation or
any subsidiary of Chrysler Corporation, or (iii) a corporation owned,
directly or indirectly, by the stockholders of Chrysler Corporation in
substantially the same proportions as their ownership of securities of
Chrysler Corporation.
4.14 Notwithstanding any other provision of this Article IV or of
this Plan, a Salaried Employee who retires prior to age 55 pursuant
to provisions of the Chrysler Canada, Ltd. Salaried Employees'
Retirement Plan, shall be considered an employment termination rather
than a retirement for purposes of determining the nature, amount, and
timing of any benefits to which he may be entitled under this Plan.
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ARTICLE V. DEATH BENEFITS
5.01 If a former Employee dies (a) on or after the date of his
retirement under the SERP, or for purposes of the Incentive Compensation
Retirement Benefits also under the Chrysler Canada Ltd. Salaried Employees'
Retirement Plan in the case of a former Employee who retired under any of such
plans, or (b) on or after the date his employment terminated, in the case of a
former Employee whose employment terminated otherwise than by retirement under
the SERP, or for purposes of the Incentive Compensation Retirement Benefit also
under the Chrysler Canada Ltd. Salaried Employees' Retirement Plan, and who was
eligible for a deferred retirement benefit under Section 4.06 at the time of
such termination, and if in either such case no election under Section 6.04 was
in effect for such former Employee at the time of his death, then in any such
case the Beneficiary of any such former Employee shall be entitled to receive
under this Plan (i) any Incentive Compensation Death Benefit for which he was
eligible as a former Employee as provided in Subsection A below, (ii) any ERISA
Excess Death Benefits for which he was eligible as provided in Subsection B
below, and (iii) any Modified Special Early Retirement Program Death Benefit,
for which he was eligible as provided in Subsection C below.
A. The Incentive Compensation Death Benefit of such a former
Employee shall be:
1. If at the time of his death the former Employee was
receiving an Incentive Compensation Retirement
Benefit (whether due to retirement or termination of
employment) or if commencement of receipt of an
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Incentive Compensation Retirement Benefit was
deferred as provided in Section 6.03, an amount equal
to the Commuted Value of any unpaid guaranteed
payments of the Incentive Compensation Retirement
Benefit.
B. The ERISA Excess Death Benefit of such a former Employee shall
be:
1. If at the time of his death he was receiving an ERISA
Excess Retirement Benefit (whether due to retirement
or termination of employment) or if commencement of
receipt of an ERISA Excess Retirement Benefit was
deferred as provided in Section 6.03, an amount equal
to the Commuted Value of any unpaid guaranteed
payments of the ERISA Excess Retirement Benefit.
2. If he was entitled to an ERISA Excess Retirement
Benefit under Section 4.06B and if he dies prior to
the date payment of such ERISA Excess Retirement
Benefit commences, and
a. If such ERISA Excess Retirement Benefit
includes a monthly amount of contributory
retirement benefit as provided for under the
provisions of either or both of Section(s) 4.06A
of the SERP, or 101.B of this Plan, his ERISA
Excess Death Benefit based on such contributory
retirement benefit shall be in an
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amount equal to 100 times the amount of
such monthly benefit, and
b. If such ERISA Excess Retirement Benefit
includes a monthly amount of the SERP
non-contributory retirement benefit
calculated under the provisions of Section
4.06B of the SERP, his ERISA Excess Death
Benefit based on such non-contributory
retirement benefit shall be in an amount
equal to the Commuted Value of the 120
monthly payments of such benefit that he
would have received under the Plan had he
elected to receive immediate payment of
benefits commencing on the date immediately
preceding the date of his death.
C. The Modified Special Early Retirement Program Death Benefit of
such a former Employee shall be:
1. An amount equal to the Commuted Value of the
remainder of 120 guaranteed monthly payments for the
contributory and non-contributory Supplementary
Minimum Benefit to which the Employee is
entitled pursuant to Section 1.01E of this Plan and/or
2. An amount equal to the Commuted Value of the
remainder of 120 guaranteed monthly payments for the
contributory and non-contributory Special Leave of
Absence Benefit (excluding, however, monthly payments
under the Pension Plan which shall not be guaranteed)
to which the Employee is entitled pursuant to Section
1.01E of this Plan.
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5.02 If an Employee dies while participating in the SERP, or for
purposes of the Incentive Compensation Retirement Benefits also under the
Chrysler Canada Ltd. Salaried Employees' Retirement Plan and after his Normal
Retirement Date and if he is not deemed to have made the election provided in
Section 6.05, his Beneficiary shall be entitled to receive the sum of (i) any
Incentive Compensation Death Benefit for which the Employee was eligible as
provided in Subsection A and (ii) any ERISA Excess Death Benefit for which the
Employee was eligible as provided in Subsection B below.
A. The Incentive Compensation Death Benefit of such an Employee
shall be an amount equal to the Commuted Value of 120 monthly payments
of the monthly Incentive Compensation Retirement Benefit which would
have been payable to the Employee if he had retired under the Plan on
the date of his death.
B. The ERISA Excess Death Benefit of such an Employee shall
be an amount equal to the Commuted Value of 120 monthly payments
of the monthly ERISA Excess Retirement Benefit that he would
have received under the Plan had he retired on the date of
his death.
5.03 If an Employee dies while participating in the SERP, or
for purposes of the Incentive Compensation Retirement Benefit
also under the Chrysler Canada Ltd. Salaried Employees' Retirement
Plan and on or prior to his Normal Retirement Date, his Beneficiary
shall be entitled to receive the sum of (i) any Incentive Compensation
Death Benefit for which the Employee was eligible at the time of
his death as provided in Subsection A and (ii) any
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ERISA Excess Death Benefit for which the Employee was eligible as provided in
Subsection B below.
A. The Incentive Compensation Death Benefit of such an Employee
shall be an amount equal to the Actuarial Equivalent of his accrued
age 65 monthly Incentive Compensation Retirement Benefit.
B. The ERISA Excess Death Benefit of such an Employee shall be an
amount equal to the excess of (i) the death benefit calculated under
the SERP without regard to the benefit and compensation limitations
set forth in that plan or imposed under Section 415 or Sub-paragraph
401(a)(17) of the Internal Revenue Code over (ii) the death benefit
payable under the SERP because of such ERISA limitations. Any death
benefit payable under this Plan shall be computed based on any
contributions under Section VII of this Plan.
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ARTICLE VI. PAYMENT OF BENEFITS
6.01 An Employee desiring to retire and receive a retirement
benefit under the Plan or a terminated Employee desiring to apply for a
deferred retirement benefit under the Plan shall, in either such case, obtain a
form of application for that purpose and shall file his written application
with the Committee, furnishing the information the Committee shall request
together with documentary evidence in support of the same, satisfactory to the
Committee, and any authority in writing that the Committee may request
authorizing it to obtain pertinent information or records, certificates or
transcripts from any public office.
6.02 A Retirement benefit, except as provided under Section 6.10 of
the Plan, shall be paid in monthly installments. The first installment shall
be payable on the first day of the month following the actual retirement of an
Employee retiring from the employ of the Corporation or of a Non-Participating
Subsidiary or, in the case of an Employee whose employment terminates otherwise
than by retirement, on the first day of the first month after the Employee
attains age 65. Subsequent installments of the retirement benefit shall be
payable on the first day of each month thereafter during the lifetime of the
retired or former Employee, and the standard form of payment of the retirement
benefit shall be for the lifetime of the retired or former Employee with a
guarantee of 120 monthly payments, except for the Post Retirement Supplemental
Benefit described in Section 4.05., for which the standard form of payment
shall be monthly payments during the lifetime of the former Employee without
any guaranteed number of payments.
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6.03 Anything to the contrary in this Plan notwithstanding, monthly
retirement benefit payments under the Plan shall not commence until the first
day of the month following the ceasing of any sickness or accident benefits
(including payments under the Disability Absence Plan of the Corporation,
disability benefits under the Salary Continuation Plan of the Corporation, and
payments or benefits of like purpose or kind under any similar plan of the
Corporation or of a Non-Participating Subsidiary in effect at the time) toward
which the Corporation or a Non-Participating Subsidiary contributes by payment
of premiums, taxes or otherwise; provided, however, that commencement of a
monthly retirement benefit shall not be deferred by reason of receipt of (a) a
Permanent Total Disability Benefit under any pension plan or group life
insurance policy of the Corporation or of a Non-Participating Subsidiary, or
(b) a disability benefit under the Federal Social Security Act, or (c) a
benefit under the Long Term Disability Plan or the Extended Disability Plan of
the Corporation or a benefit or payment of like purpose or kind under any
similar plan of the Corporation or of a Non-Participating Subsidiary at the
time in effect.
6.04 In lieu of payment of a retirement benefit in the standard
form as described in Section 6.02 and lieu of payment of a death benefit as
described in Article V, payment of all such benefits shall be made in the form
of a surviving spouse option, as provided in Subsection A below, to an Employee
who retires and who is entitled to a retirement benefit. The Employee or
former Employee shall automatically be deemed to have elected the form of
surviving spouse option provided in Subsection A below (sometimes
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called "Qualifying Option" in this Article VI) except where otherwise provided
in such Subsection A. The surviving spouse option in the form provided below
shall be applicable only with respect to an Employee or former Employee who is
married on the date such election is deemed to have been made.
A. The retirement benefit under the Qualifying Option for an
Employee or former Employee who automatically elects it, as
hereinabove provided, shall consist of reduced monthly payments after
the effective date of his election during his lifetime with a
guarantee of 120 monthly payments, with provision that if his death
occurs on or after the effective date of his election and if the
person who was his spouse at the date of his retirement (or in the
case of a former Employee entitled to a deferred retirement benefit
under Section 4.06, on the date he files his application) is living at
the last to occur of his death or the expiration of such 120-month
period, benefits in the amount specified below shall be payable
monthly to such surviving spouse during her remaining lifetime.
Notwithstanding anything to the contrary in this Subsection A, the
above provisions relating to a guarantee of 120 monthly payments do
not apply to the Post Retirement Supplemental Benefit. The Qualifying
Option shall automatically apply, in respect to the Post Retirement
Supplemental Benefit, in respect to employees or former employees who
have the Qualifying Option under the Chrysler Salaried Employees'
Retirement Plan pursuant to Section 6.05 of that plan. Those
participants in this Plan who do not have the Qualifying Option under
the Chrysler Salaried Employees'
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Retirement Plan may elect to receive Post Retirement Supplemental
Benefit payments payable until the death of both the Employee or
former Employee and his spouse but such election shall not be
automatic.
1. The reduced monthly payment of a retirement benefit
payable to the Employee or former Employee whose age
does not differ from that of his spouse by more than
5 years shall be an amount equal to the monthly
payment that would have been payable to him in the
standard form, reduced by an amount equal to 5% of
the amount of the retirement benefits that would be
payable to him in the standard form at his Normal
Retirement Date if he had elected the standard form
of payment. If the age of the spouse is less than
the age of such Employee or former Employee, the
percentage shall be 5% increased by 1/2 of 1% for
each year in excess of 5 years that the age of the
spouse is less than the age of the Employee or former
Employee. If the age of the spouse is greater than
the age of the Employee or former Employee, the
percentage shall be 5% decreased by 1/2 of 1% for
each year in excess of 5 years that the age of the
spouse exceeds the age of the Employee or former
Employee (but not less than 0%). For this purpose,
the ages of the Employee or former Employee and his
spouse shall each be the age at his or her last
birthday prior to the effective date of election as
provided in
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Subsection B below. The reductions provided in this paragraph shall
be made in all monthly payments paid to the Employee or former
Employee on or after the date on which his election becomes effective,
except as otherwise provided below in Subsections E and F of this
Section 6.04.
2. The benefits payable to the surviving spouse, if the death of the
Employee or former Employee occurs on or after the effective date
of his election (or in the case of a former Employee entitled to a
deferred retirement benefit under Section 4.06, on or after the date
he files his application) and the person who was his spouse is
living at the last to occur of his death or the expiration of the
120 guaranteed monthly payments, shall be monthly payments equal to
60% of the reduced monthly payments determined as provided in
paragraph 1 above.
Notwithstanding anything to the contrary in this Subsection 2, any
monthly amount payable to a surviving spouse which is calculated on
the basis of the Post Retirement Supplemental Benefit under the
provisions of Section 4.05 shall commence on the first day of the
month following the month in which the Employee died and terminate
with the last monthly payment before her death.
B. An election of the surviving spouse option that is deemed to
have been made as provided in Subsection A above, shall be
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46
deemed to have been made at the time the Employee or former Employee
files his application for a retirement benefit or a deferred
retirement benefit, and the effective date of the election shall be
the date payment of the retirement benefit commences, except that, in
the case of an Employee or former Employee who is married when his
election would otherwise become effective, but whose marriage at that
date has been continuously in effect for less than one year, the
effective date of his election shall be the first day of the month
following the month in which such marriage has been continuously in
effect for one year. However, in the case of an Employee or former
Employee who marries during the twelve month period immediately
preceding the date payment of a retirement benefit commences and has
been married to that spouse for at least one year ending on the date
of the Employee's or former Employee's death, he shall be deemed to
have been married for one year ending on the date payment of his
retirement benefit commenced.
C. If an Employee or former Employee is deemed to have made
the election provided above in Subsection A of this Section 6.04
and if his spouse dies or should otherwise cease to be his spouse
after he has made such election but before the effective date of
such election, the election shall be revoked automatically. The
election shall be irrevocable on or after the effective date of the
election if the Employee or former Employee and his designated
spouse are both living on such date except as otherwise provided
below in Subsections E and F of this Section 6.04. If such
designated spouse dies or
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should otherwise cease to be the spouse of the Employee or former
Employee after the effective date of the election and during his
lifetime, the reduced monthly payments payable to him shall not be
affected, except as otherwise provided below in Subsections E and F of
this Section 6.04.
D. Upon the request of the Committee an Employee or former
Employee deemed to have made the election provided in Subsection
A of this Section 6.04 must produce an official marriage
certificate or other evidence of his marriage to his spouse
satisfactory to the Committee.
E. An Employee or former Employee who is deemed to have made
the election provided above in Subsection A of this Section 6.04
and whose designated spouse predeceases him may have his monthly
payments restored to the amount payable without reduction for such
election, and shall become eligible for all death benefits as
provided in Article V, effective the first day of the third month
following the month in which the Committee receives evidence
satisfactory to it of the spouse's death.
F. If an Employee or former Employee is deemed to have
made the election provided above in Subsection A of this Section
6.04 and if the Employee or former Employee and his spouse
are divorced by court decree or judgment, such Employee or former
Employee is deemed to have canceled such election and will have his
monthly payments restored to the amount payable without reduction
for such election and shall become eligible for death benefits as
provided in Article V, effective the first day of the third month
following the month in which the
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Committee receives such Employee's or former Employee's written
revocation of the election because of divorce, on a form approved by
the Committee, and accompanied by evidence satisfactory to the
Committee of a final decree or judgment of divorce.
G. A retired Employee who (i) was deemed to have made the
election provided above in Subsection A of this Section 6.04 and
whose designated spouse dies or otherwise ceases to be his designated
spouse or (ii) was not married on the date provided for such election
in Subsection B of this Section 6.04, and who marries or remarries
shall automatically be deemed to have reelected the form of surviving
spouse option provided above in Subsection A of this Section 6.04.
Such election shall become effective on the first day of the month
following the month in which the retired Employee has been married one
year.
6.05 Every Employee may designate a Beneficiary to receive payments
in the event of his death by filing with the Committee a designation in
writing signed by him in such form as the Committee shall prescribe, and
may change or revoke the designation from time to time and at any time by
filing with the Committee a new designation; provided, however, that an
Employee shall be deemed to have designated as his Beneficiary the beneficiary
designated in the SERP, or for purposes of the Incentive Compensation
Retirement Benefit also under the Chrysler Canada Ltd. Salaried Employees'
Retirement Plan, unless the Participant specifically designates another
Beneficiary.
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6.06 Any death benefit provided in Article V with respect to an
Employee for whom there is in effect no election as provided in Section 6.04
shall be paid in a lump sum.
6.07 No benefit or right to payment under this Plan shall be
subject to any claim of any creditor of any Employee, Beneficiary or surviving
spouse of a deceased Employee or former Employee and shall not be subject to
attachment or garnishment or other legal process by any creditor, nor shall any
Employee, former Employee, Beneficiary or surviving spouse have any right to
alienate, anticipate, commute, pledge, encumber or assign any of the benefits
under this Plan.
6.08 In the event of the death of a person entitled to any benefit
under the Plan, or in the event that the Committee shall find that any such
person is unable to care for his affairs because of illness or accident, the
Committee may cause any benefit payments due, unless claim shall have been made
therefor by a duly appointed legal representative, to be paid to the spouse, a
child, a parent or other blood relative, or to any person deemed by the
Committee to have incurred expense for such person, and any such payments so
made shall be a complete discharge of the liabilities of the Plan therefor. In
the event that, at the time a benefit becomes payable to any persons under the
Plan, the Committee after reasonably diligent search is unable, within six
years from the time the benefit is payable, to find the person to whom the
benefit is payable, then the benefit shall be treated as a forfeiture and all
right, title, and interest of the person therein and thereto shall terminate.
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6.09 Notwithstanding anything to the contrary herein, the Committee
shall pay the Actuarial Equivalent of any amount(s) payable under this Plan to
a participant or Beneficiary before such amount(s) would otherwise be paid (and
in discharge of all obligations with respect thereto) if, based on any of the
following events, the Committee determines, in good faith based on consultation
with counsel, that such participant or Beneficiary has or will recognize income
for federal income tax purposes with respect to such amount(s) before such
amount(s) are otherwise to be paid:
A. a change in the Internal Revenue Code or Title 1 of ERISA, or
the Treasury or Department of Labor Regulations thereunder,
respectively, or a binding or predominant judicial construction
thereof,
B. a published ruling or similar announcement issued by
the Internal Revenue Service or the Department of Labor,
C. a decision by a court of competent jurisdiction involving a
participant in the Plan, a Beneficiary of the Plan, the
Corporation, or any entity involved in making payments under the Plan,
or
D. a final determination of tax liability following a contested
tax or ERISA dispute or audit (or a closing agreement made
under section 7121 of the Internal Revenue Code) that involves a
participant in the Plan, a Beneficiary of the Plan, the Corporation,
or any entity involved in making payments under the Plan. 6.10
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A. An employee eligible to receive an Incentive Compensation
Retirement Benefit under Article IV of the Plan may elect to receive
such benefit in a lump sum payment. Such lump sum payment shall be
equal to the lesser of (a) an amount equal to 80% of the cost of a
typical commercial insurance policy equivalent in value to the Plan's
10 years certain and life standard form of payment or (b) an amount
calculated based on the Plan's cost/funding assumptions, except that a
10% interest rate shall be used. An election to receive an immediate
lump sum payment may be made at retirement. If such election is not
made at retirement, a subsequent election may be made subject to a
waiting period of one year. Eligible recipients of Incentive
Compensation Retirement benefits who retired prior to January 1, 1994
shall be provided a one time 90 day window election period, as
determined by the Corporation, to make a lump sum payment election
without a one year waiting period. The value of the lump sum payment
will be determined based on the remaining value of the Plan's 10 years
certain and life normal provision.
B. A terminated employee eligible to receive a deferred Incentive
Compensation Retirement Benefit under Section 4.06 of the Plan may
elect to receive such benefit in a lump sum payment subject to
Committee approval. Such lump sum payments, however, may not be
elected prior to age 65. In addition, if such lump sum payment
election is made later than age 65, it is subject to a waiting period
of one year. If benefits have commenced prior to the lump sum
payment, the value of the lump sum payment will be determined based on
the
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remaining value of the Plan's 10 years certain and life normal
provision, assuming the terminated employee had elected such normal
provision when his benefits commenced.
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ARTICLE VII. CONTRIBUTIONS
7.01 Employee contributions shall be permitted under this Plan
solely for the purpose of providing an ERISA Excess Retirement Contributory
Benefit pursuant to Section 1.01B of this Plan and an ERISA Excess Death
Benefit pursuant to Paragraph 5.01B.2.a of this Plan.
7.02 Employee contributions under this Plan shall be voluntary and
shall be permitted in the amount and to the extent they would have been
permitted under the Salaried Employees' Retirement Plan ("SERP") had they not
been curtailed by limitations imposed by Sub-paragraph 401(a)(17) of the
Internal Revenue Code, as amended, as embodied in Subsection 4.01C of SERP.
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ARTICLE VIII. PLAN ADMINISTRATION
8.01 The Committee shall have exclusive authority to control and
manage the operation and administration of this Plan except as specifically set
forth in Section 8.04 below.
8.02 The Committee may make rules and regulations for the
administration of the Plan which are not inconsistent with the terms and
provisions of the Plan. The Committee shall have discretionary authority to
construe and interpret the Plan and decide all questions of eligibility,
benefit settlement and payment. It may correct any defect or supply any
omission or reconcile any inconsistency in such manner and to such extent as it
shall deem expedient to carry the Plan into effect and it shall be the sole and
final judge of such expediency. In addition the Committee, or such person or
persons it shall designate for that purpose as provided in Section 8.03, shall
maintain the following claim review procedure:
A. Claim Review Procedure. (a) If any former Employee or any
Beneficiary has not received a benefit under the Plan to which he
thinks he is entitled, he or his authorized representative, within 180
days after the event that he thinks entitled him to the benefit, may
file with the Committee a written claim for the benefit, in any form
reasonably calculated to bring the nature of his claim to the
attention of the Committee. If the claim is wholly or partially
denied, the Committee within 180 days of its receipt of the claim,
shall give to the claimant written notice of the denial, setting forth
in a manner calculated to be understood by the claimant the specific
reason or reasons for the denial. A
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claimant whose claim to benefits under the Plan has been wholly or
partially denied, or his authorized representative, may request a
review of his claim by the Committee by making written application for
review to the Committee within 90 days after the claimant's receipt of
written notification of denial of his Claim. In connection with the
review, the claimant or his authorized representative may submit
issues and comments in writing. Not later than 90 days after the
receipt by the Committee of the claimant's request for review, the
Committee shall give its decision in writing, setting forth the
specific reasons for the decision, written in a manner calculated to
be understood by the claimant. Subject to any rights to remedies
accorded by applicable law, the final decision of the Committee shall
be conclusive and binding upon the Corporation, the claimant and all
other persons interested in the claim.
B. The Committee shall also make arrangements for authorizing the payment
of benefits to retired Employees, former Employees, surviving spouses
and Beneficiaries entitled thereto. The payment of such benefits
shall commence as of the first day of the first calendar month
beginning after the date which is 90 days following the Committee's
decision in 8.02 A.
8.03 The Committee may appoint a secretary and one or more assistant
secretaries and such other agents and representatives as it may deem advisable,
who may but need not be Employees otherwise covered by this Plan, to keep its
records or assist it in doing any other acts or things, and any such appointment
shall be deemed a designation.
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8.04
A. In the performance of its duties under this Plan the Committee
may act by a majority of its members then in office and any action
expressed from time to time by a vote at a meeting or in writing
without a meeting shall constitute action of such Committee and shall
have the same effect for all purposes as if assented to by all of the
members of such Committee then in office.
B. Any action which this Plan authorizes or requires the
Committee to do shall, if done in good faith by such committee, be
final and binding upon Employees, retired Employees, former Employees,
surviving spouses, Beneficiaries, and the Corporation. The fact that
any member of either such Committee is an Employee, officer, director
or stockholder of Chrysler Corporation or is covered by this Plan
shall not disqualify him from doing any act or thing which this Plan
authorizes or requires him to do as a member of such Committee or
render him accountable for any benefit received by him as an Employee
covered by this Plan. No Committee member shall participate in any
decision of the Committee that would directly and specifically affect
the timing or amount of his benefits under the Plan.
C. The members of the Committee shall discharge their duties
under the Plan solely in the interest of the Employees and their
Beneficiaries and (i) for the exclusive purpose of providing benefits
to such Employees and their Beneficiaries and defraying reasonable
expenses of administering the Plan (ii) with the care, skill,
prudence, and diligence under the
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circumstances then prevailing 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; and (iii) in
accordance with the provisions of the Plan, as the same may be from
time to time amended.
D. The Committee and the members of the Committee shall be
entitled to rely upon all information certified to it by the
Corporation, all certificates and reports furnished by the Actuary or
by any qualified public accountant and all opinions given by any duly
appointed legal counsel (who may be also counsel for Chrysler
Corporation); and neither the Committee nor any member of the
Committee shall be deemed imprudent in respect of any action taken or
permitted by them in good faith in reliance upon any such
certificates, reports or opinions. Except to the extent otherwise
provided by law neither the Committee nor any of the members of the
Committee shall be liable to the Corporation or to any Employee or to
any Beneficiary on account of any act done or omitted or determination
made by the Committee acting in good faith in the performance of its
duties under the Plan, nor for any act done or omitted by any agent or
representative of the Committee selected by such Committee with
reasonable care, nor shall any member of the Committee be liable to
any person for any act done or omitted by any other member of the
Committee in which he did not concur. The Corporation agrees, to the
extent permitted by law, to indemnify and hold the Committee and each
of the members of the Committee harmless from and against any
liability it or they may incur in connection with
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the Plan, unless arising from their own negligent or willful breach of
their fiduciary responsibility as set forth in subsection C of this
section.
E. Any act that the Plan authorizes or requires the Committee to
do, or any determination in good faith by the Committee of any matter
or question under the Plan shall, in any such case, be final and
binding upon any Employee, retired Employee, former Employee,
surviving spouse or Beneficiary.
F. All expenses of the Committee in the performance of its duties
under this Plan shall be payable by the Corporation.
8.05 The Corporation, as long as the Plan remains in effect, shall
pay or cause to be paid the benefits provided by the Plan and the incurred
costs and expenses of the Plan.
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ARTICLE IX. AMENDMENT, TERMINATION
9.01 The Board of Directors of Chrysler Corporation shall have the
right to amend the Plan at any time and from time to time, to any extent that
it may deem advisable, except that no such amendment shall adversely affect the
rights of any Employee with respect to retirement benefits theretofore accrued
under the Plan.
9.02 The Committee shall have the right to amend this Plan at any
time and from time to time, to any extent that it may deem advisable, except
that no such amendment shall
A. adversely affect the rights of any Employee with respect to
retirement benefits theretofore accrued under the Plan; or
B. increase the amount of retirement or death benefits provided
for generally under the Plan except the Post Retirement Supplemental
Benefit; or
C. decrease the age or length of service that Employees are
required to have under the Plan in order to be eligible
for benefits upon early retirement or termination of employment; or
D. permit the termination of this Plan other than by the authority
of the Board of Directors of Chrysler Corporation; or
E. alter the provisions of Article VIII or of this Article IX.
9.03 Any amendment to this Plan shall be set out in an instrument in
writing executed on behalf of Chrysler Corporation under its corporate seal by
the President or a Vice President or the Treasurer and by the Secretary or an
Assistant Secretary, and
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authorized by a resolution of the Committee or of the Board of Directors.
9.04 Chrysler Corporation by action of its Board may direct the
Committee to terminate the Plan in whole or in part at any time. In the case
of complete or partial termination of the Plan, no further benefits shall be
accrued under the affected portions of the Plan with respect to affected
Employees, and benefits theretofore accrued shall be paid in accordance with
the provisions of Articles IV through VI of the Plan. Except with the consent
of the Employee, no such termination of the Plan shall adversely affect the
rights of any Employee with respect to retirement benefits theretofore accrued
under the Plan.
9.05 Notwithstanding any other provisions hereof, during the
two-year period beginning on the date of a Change in Control, the Plan shall
not be terminated (whether in whole or in part) and the Plan shall not be
amended in any way which detrimentally affects the right of any Employee (i) to
participate in the Plan, (ii) to accrue, or to continue to accrue, supplemental
retirement benefits under the Plan, or (iii) to vest in any such supplemental
retirement benefits.
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ARTICLE X. GENERAL
10.01 This Plan is purely voluntary on the part of the Corporation.
Neither the establishment of this Plan nor the payment of any benefit shall be
construed as giving any Employee or any other person any legal or equitable
right against the Corporation or the Committee, unless the same shall be
expressly provided for in this Plan or conferred by affirmative action of the
Committee or the Corporation in accordance with the terms and provisions of the
Plan, or as giving any Employee the right to be retained in the service of the
Corporation, and all Employees shall remain subject to discharge to the same
extent as if this Plan had never been established.
10.02 The validity and construction of this Plan shall be determined
according to the laws of the United States and of the State of Michigan.
10.03 Titles of articles are for general information only and this
Plan is not to be construed by reference thereto.
10.04 In all cases where they would so apply, words used in
the masculine or feminine shall be construed to include the opposite gender,
and words used in the singular shall be construed to include the plural.
10.05 In case any provisions of this Plan shall be held illegal or
invalid for any reason, such illegality or invalidity shall not affect the
remaining parts of this Plan, but this Plan shall be construed and enforced as
if such illegal or invalid provisions had never been inserted herein.
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10.06 Any payment or distribution to any Employee, retired
Employee, former Employee, Beneficiary, or surviving spouse in accordance with
the provisions of this Plan shall be in full satisfaction of all claims against
the Committee and the Corporation.
10.07 No liability shall attach to or be incurred by members of the
Committee, stockholders, officers or directors, as such, of the Corporation,
under or by reason of any of the provisions of this Plan or implied therefrom,
and all liability of every kind and nature and all rights and claims against
the Corporation and every member of the Committee, any stockholder, officer or
director, past, present or future, as such, whether arising in common law or in
equity or created by statute or constitution or otherwise are hereby expressly
waived and released as a condition of and part of the consideration for the
contributions of the Corporation under this Plan. Each Employee, retired
Employee, former Employee, surviving spouse, or Beneficiary, as a condition of
receiving any benefits under the Plan, shall be conclusively deemed for all
purposes to have assented to the Plan and shall be bound hereby with the same
force and effect as if he had executed a consent to all the terms and
provisions of the Plan.
10.08 The Corporation shall not be required to segregate any assets
which may at any time be represented as compensation reduction amounts, accrued
benefits or earnings credited to a participant. The Corporation shall not, by
any provisions of this Plan, be deemed to be a trustee of any property, and the
liabilities of the Corporation to any participant shall be those of a debtor
pursuant to such contract obligations as are created by
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the Plan, and no such obligation of the Corporation shall be deemed to be
secured by any pledge or other encumbrance on any property of the
Corporation.
10.09 The Committee is authorized to satisfy all requirements for
tax withholding on distributions under the Plan, through a deduction from the
participant's benefit payment, excluding any tax imposed on the employer.
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ARTICLE XI. SPECIAL PROVISIONS APPLICABLE TO DESIGNATED PARTICIPANTS
11.01 Additional years of Credited Service shall be granted, in
respect to any individual listed below, for purposes of determining his total
retirement benefits under Chrysler pension plans. The total amount of
additional Chrysler pension benefits attributable to such additional years of
Credited Service shall be paid under the ERISA Excess Retirement Benefit part
of this plan described in Section 1.01B. Individuals eligible for such
additional years of Credited Service and the amount of such additional Credited
Service to be recognized shall be as follows:
A. L. A. Iacocca (Social Security ####-##-####) 4 years,
10 months (After recognition of 3 additional years of
credited service under the 1992 Salaried Employees'
Special Early Retirement Program.)
B. R. J. Eaton (Social Security ####-##-####)-5 years
C. R. A. Lutz (Social Security ####-##-####)-5 years
(subject to forfeiture if Mr. Lutz's separation is
not under a Mutually Satisfactory Agreement)
11.02 Special conditions shall apply, in respect to any individual
listed below, for purposes of determining certain Chrysler retirement benefits
payable to him from this Plan. Individuals to whom such special conditions
apply and a description of such special conditions are as follows:
A. J.A. Pilulas. (Social Security ####-##-####)
Additional benefits that would have been paid Mr.
Pilulas under the Chrysler Pension Plan and the
Chrysler Salaried Employees Retirement Plan had he
retired on June 1, 1989 under the Special Early
Retirement provisions of such
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plans will be paid under the ERISA Excess Retirement Benefit part
of this Plan described in Section 1.01B. In addition, benefits
he had forfeited under the Incentive Compensation Retirement
Benefit part of this Plan described in Section 1.01A shall be
paid on an unreduced basis. Benefits provided under this
Section 11.02A shall be provided prospectively only commencing
November 1, 1992.
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APPENDIX A
ACTUARIAL ASSUMPTIONS UNDER THE PLAN
Section Purpose Actuarial Assumptions or
Basis for Determination
1. 2.06 To determine the single sum value or The basis for determining these
lump sum value of periodic payments commuted values will be amounts
payable in the future. determined using an interest rate as
set forth hereafter in this Appendix.
2. 5.01A1 To determine the Commuted Value of The number of payments remaining in
any unpaid guaranteed payments of the certain period at the time of
Incentive Compensation Retirement death will be discounted to the last
Benefits at the time of a former day of the month in which death
Employee's death. occurs at a rate of interest of 10%
compounded annually.
3. 5.01B1 To determine the Commuted Value of The number of payments remaining in
any unpaid guaranteed payments of the certain period at the time of
ERISA Excess Retirement Benefits at death will be discounted to the last
the time of a former Employee's day of the month in which death
death. occurs at a rate of 9% compounded
annually.
4. 5.01B2 To determine the Commuted Value of The Commuted Value will be based on
120 monthly payments of ERISA Excess the rate of interest of 9% compounded
Retirement Benefit of a former annually and the monthly payment the
Employee whose death occurs prior to former Employee would have received
the date monthly payments commence. had he elected to have benefits
commence on the date immediately
preceding the date of his death.
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SECTION PURPOSE ACTUARIAL ASSUMPTIONS
OR
BASIS FOR
DETERMINATION
5. 5.02A To determine the Commuted Value of The Commuted Value will be determined
120 monthly payments of the monthly based on a rate of 10% compounded
Incentive Compensation Retirement annually and the monthly Incentive
Benefits with respect to an Employee Compensation Retirement Benefit the
who dies while still employed after Employee would have received had he
his Normal Retirement Date. retired on the date of his death.
6. 5.02B To determine the Commuted Value of The Commuted Value will be determined
120 monthly payments of the monthly * based on a rate of interest of 9%
ERISA Excess Retirement Benefits with compounded annually and the monthly
respect to an Employee who dies while ERISA Excess Retirement Benefit the
still employed but after his Normal Employee would have received had he
Retirement Date. retired on the date of his death.
7. 5.03A To determine an Actuarial Equivalent. The actuarial assumptions that will
be used in determining an Actuarial
Equivalent will be the 1971 Group
Annuity Mortality Table (weighted 70%
for males and 30% for females), an
interest rate of 10% compounded
annually, and an expected retirement
date of the latter of a) the date
immediately preceding the date of the
Employee's death or b) the date the
Employee would have first become
eligible to retire at his option.
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SECTION PURPOSE ACTUARIAL ASSUMPTIONS
OR
BASIS FOR
DETERMINATION
8. 5.03B To determine the ERISA Excess Death The death benefit of such an Employee
Benefit of an Employee whose death shall be the Commuted Value, at 9%
occurs on or after his 60th birthday interest compounded annually, of 120
with ten years or more of Credited monthly payments equal to the monthly
Service. Non-Contributory Retirement Benefit
that he would have received had he
retired on the date of his death
reduced by 5/8 of 1% for each full
month by which the date of his death
precedes his Normal Retirement Date.
9. 6.02 To determine the equivalent lump sum, The actuarial assumptions used in
quarterly, half yearly, or yearly determining the equivalent benefits
benefits with respect to monthly will be the 1971 Group Annuity
benefits that are less than $10. Mortality Table (weighted 70% for
males and 30% for females), and 9%
(10% for an Incentive Compensation
Retirement Benefit) interest
compounded annually.
10. 6.10 To determine the value of a lump sum The lump sum value will be determined
Incentive Compensation Retirement based on a rate of interest of 10%
Benefit compounded annually and the
provisions specified in Section 6.10
of the Plan.
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Section Purpose Actuarial Assumptions or
Basis for Determination
11. Sections not To determine an Actuarial Equivalent. The actuarial assumptions that will
listed above be used in determining an Actuarial
Equivalent will be the 1971 Group
Annuity Mortality table (weighted 70%
for males and 30% for females), an
interest rate of 9% (10% for an
Incentive Compensation Retirement
Benefit) compounded annually, and an
expected Normal Retirement Date of
the 1st day of the month following
Age 65.
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IN WITNESS WHEREOF, the Corporation has caused this Instrument to be
executed by its duly authorized officers and its corporate seal to be hereunto
affixed as of the 1st day of January, 1994.
CHRYSLER CORPORATION
By __________________________
J. P. Holden
Vice President -
Corporate Personnel
Attest:
___________________________________
A. E. Micale
Assistant Secretary
(CORPORATE SEAL)
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STATE OF MICHIGAN )
) SS:
COUNTY OF WAYNE )
On the _______________ day of _______________, 1994 before me
personally came J. P. Holden, to me known, who, being by me duly sworn, did
depose and say that he resides at 1462 Inwoods Circle, Bloomfield Hills,
Michigan 48013, in the County of Oakland, State of Michigan; that he is Vice
President - Corporate Personnel of CHRYSLER CORPORATION, the corporation
described in and which executed the foregoing instrument; that he knows the
seal of said corporation; that the seal affixed to said instrument is such
corporate seal; that it was so affixed by order of the Board of Directors of
said corporation, and that he signed his name thereto by like order.
______________________________
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