Exhibit 10(d)
Third Amendment to
the 1994 Restatement of
Aon Pension Plan
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Whereas, the Aon Pension Plan (the "Plan") is currently set out in the
1994 Restatement of Aon Pension Plan, which was generally effective as of
January 1, 1994 (the "Restatement").
Whereas, the Board of Directors of Aon Corporation desires to amend
the Plan pursuant to the Board's authority to do so under Section 9.20 of the
Plan.
Now, therefore, the Plan, as set out in the Restatement, is amended as
follows, effective as of May 1, 1996:
Section 21. A new section 21 shall be added to the Plan to read
as follows:
SECTION 21 - 1996 VOLUNTARY RETIREMENT PROGRAM
21.01 VOLUNTARY RETIREMENT PROGRAM. The terms of this Section 21 are
effective to provide retirement benefits to supplement those
otherwise provided under this Plan to certain Participants
described herein who terminate employment with an Employer.
Participants employed by The Life Insurance Company of
Virginia; Union Fidelity Life Insurance Company; Forth
Financial Resources, Ltd.; and Newco Properties, Inc., shall
not be eligible to receive benefits under this Section 21.
21.02 DEFINITIONS. In addition to those of Section 2, the following
definitions shall apply for purposes of this Section 21:
(a) "Additional Temporary Supplement" shall mean an amount
equal to $150, to be paid monthly until the first to occur
of:
(i) attainment of age 65;
(ii) death of the Participant; or
(iii) completion of 24 payments.
(b) "Lifetime Pension Supplement" shall mean an amount equal
to 0.5 percent of one twelfth of the Participant's Final
Average Earnings multiplied by Years of Employment up to
but not in excess of 20 Years of Employment. The Lifetime
Pension Supplement shall be paid monthly at the same time
and in the same optional form as benefits paid to the
Participant under Section 4 or 5 and shall terminate
coincident with the termination of such benefits.
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(c) "Temporary Pension Supplement" shall mean an amount equal to 0.5
percent of one twelfth of the Participant's Final Average
Earnings multiplied by Years of Employment up to but not in
excess of 20 Years of Employment. The Temporary Pension
Supplement shall be paid monthly until the first to occur of:
(i) attainment of age 65;
(ii) death of the Participant; or
(iii) completion of 120 payments.
(d) "Voluntary Retirement Participant" shall mean a Participant,
other than a Participant employed by The Life Insurance Company
of Virginia; Union Fidelity Life Insurance Company; Forth
Financial Resources, Ltd.; and Newco Properties, Inc., who:
(i) is actively employed on May 1, 1996;
(ii) has attained 55 years of age on or before June 30,
1996; and
(iii) meets the requirements of (A) or (B):
(A) has Annual Earnings in 1995 of less than
$66,000 and whose combined total Years of
Employment and age as of June 30, 1996, is at
least 60; or
(B) has Annual Earnings in 1995 of $66,000 or
more and whose combined total Years of
Employment and age as of June 30, 1996, is at
least 72.
Employees defined in Section 2.13 of this Plan ("Field Sales
Agent") are not eligible for benefits under this Section 21.
(e) "Years of Employment" shall mean total number of years of
Employment with an Employer, beginning on the date an Employee
first performs an Hour of Service and ending on the date the
Voluntary Retirement Participant retires under the terms of this
Section 21. Periods of service as a Field Sales Agent shall not
be included in the determination of Years of Employment. Years of
Employment shall include years of employment by a Voluntary
Retirement Participant for an employer the stock or assets of
which were acquired by an Employer at the time such employee was
employed by the acquired entity. In determining Years of
Employment (including with respect to preacquisition service),
partial years of employment and periods commencing with an
Employee's discharge or termination and ending with such
Employee's rehire shall be excluded. In no event shall Years of
Employment be less than Years of Service as defined in Section
2.31.
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The determination of a Participant's Years of Employment shall be
used solely for purposes of eligibility under Section
21.02(d)(iii)(A) and (B) and computation of the Lifetime Pension
Supplement and the Temporary Pension Supplement under this
Section 21, and not for any other purpose under this Plan.
21.03 VOLUNTARY RETIREMENT PROGRAM BENEFITS. A Voluntary Retirement
Participant shall be entitled to receive the Temporary Pension
Supplement, the Additional Temporary Pension Supplement and the
Lifetime Pension Supplement upon satisfaction of (a) and (b):
(a) receipt by an Employer of a Voluntary Retirement Participant's
election pursuant to the requirements of Sections 7.06 and 7.14;
and
(b) termination of employment with an Employer on or after May 1,
1996, but no later than June 30, 1996.
A Voluntary Retirement Participant who is entitled to receive a
Temporary Pension Supplement, an Additional Temporary Pension
Supplement or a Lifetime Pension Supplement upon satisfaction of (a)
and (b) shall be 100% vested in the Temporary Pension Supplement, the
Additional Temporary Pension Supplement and the Lifetime Pension
Supplement upon termination of Employment. With regard to all other
benefits due the Voluntary Retirement Participant under the terms of
this Plan, the Voluntary Retirement Participant's nonforfeitable
percentage of such benefit shall be as determined under Section 5 of
this Plan.
21.04 COMMENCEMENT OF BENEFITS. Payment of the Temporary Pension Supplement
and the Additional Temporary Pension Supplement shall commence as soon
as practicable upon satisfaction of the requirements of Section 21.03
by the Voluntary Retirement Participant. Payment of the Lifetime
Pension Supplement shall commence coincident with commencement of
benefits paid to the Voluntary Retirement Participant in accordance
with any election made by such Participant under Section 4 or 5. The
amount of the Lifetime Pension Supplement, if payment is deferred,
shall be the actuarial equivalent of the Lifetime Pension Supplement
as if payment had commenced upon the later of attainment of age 55 or
termination of employment.
21.05 CREDIT FOR YEARS OF SERVICE FOR 1996. A Voluntary Retirement
Participant who satisfies the requirements of Section 21.03, and who
has continuously worked for an Employer from January 1, 1996, through
Employment termination, shall be deemed to have earned a Year of
Service under Section 2.31 regardless of the Hours of Service that
would otherwise be credited to such Participant. Nothing in this
Section 21.05 shall permit a Voluntary Retirement Participant to
accrue more than one Year of Service for 1996.
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IN WITNESS WHEREOF, Aon Corporation hereby adopts this Third Amendment to the
1994 Restatement of Aon Pension Plan, effective as set forth above, as of this
1st day of August, 1996.
AON CORPORATION
By:
/s/ Daniel T. Cox
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Daniel T. Cox
Executive Vice President
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