EXHIBIT 10(b)(xxxiii)
MANAGEMENT DISABILITY PLAN
PLAN SUMMARY
INTRODUCTION As a member of Anadarko's key management team, you are
eligible to participate in the Management Disability Plan
(the "Plan"). The Plan is designed to replace up to 70% of
your base salary in the event you are unable to work due to
a serious injury or illness. Your coverage in this Plan
replaces your coverage in the Anadarko Petroleum Corporation
Disability Plan (the "Group LTD Plan") which provided a
benefit of up to 60% of your base salary. There is no cost
to you for coverage under the Plan and there are no
enrollment forms to complete.
DEFINITION The Plan defines disability as a condition which prevents
OF DISABILITY you from performing all of the material duties of your
occupation. The insurance carrier will make the final
determination as to whether you qualify for disability
benefits.
After receiving benefits for 24 months, your disability will
be reviewed. You will continue to receive benefits if you
are still unable to perform all of the material duties of
your occupation on a full-time basis and are earning at
least 20% less than before you became disabled.
DISABILITY Your maximum monthly benefit under the Plan is 70% of your
BENEFIT base monthly earnings in effect immediately prior to the
date your disability began. The maximum monthly benefit
payable under the Plan cannot exceed $35,000.
If you are partially disabled but able to work in your
regular occupation or another occupation, your benefit
calculation will consider other earnings you may be
receiving. During the first twelve months, your benefit will
be calculated by subtracting other earnings from your
pre-disability salary. After twelve months, other earnings
may result in a further reduction of your benefits.
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Your benefit is also subject to reduction by any disability
payments from Social Security, Workers' Compensation and
government disability or retirement plans.
WAITING Benefits will begin after you have been disabled for 180
PERIOD days. When you submit your claim for disability benefits,
you must provide proof that you are disabled and that you
are under the care of a physician.
PRE-EXISTING A pre-existing condition is a sickness or injury for which
CONDITION you have received medical treatment, consultation or
EXCLUSION prescription medication in the six months prior to the
effective date of your coverage under the Plan.
If you have a qualifying pre-existing condition, your
benefits under the Plan may be reduced up to 10%.
Once you are able to go treatment free for 12 months, you
will be eligible for full benefits under the Plan. After you
have been covered under the Plan for 24 months, your
pre-existing condition will no longer be considered and you
will be eligible for full benefits under the Plan.
TAXATION Benefit payments are fully taxable as ordinary income.
OF BENEFITS
MAXIMUM If you become disabled prior to age 60, benefits will
BENEFIT continue until age 65 as long as you continue to meet the
PERIOD definition of disability. If you become disabled after
age 60, the maximum benefit period is shown on the following
page.
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AGE AT DISABILITY MAXIMUM BENEFIT PERIOD
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60 60 Months
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61 48 Months
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62 42 Months
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63 36 Months
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64 30 Months
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65 24 Months
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66 21 Months
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67 18 Months
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68 15 Months
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69 and over 12 Months
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Benefits for disability due to mental illness will not
exceed a 24 month period regardless of age.
CESSATION Your benefit payments will stop at the earliest of the
OF BENEFITS following events:
- You are no longer disabled,
- The maximum benefit period has expired,
- Your death,
- Your current earnings exceed 80% of your pre-disability
earnings.
COVERAGE Your coverage under the Plan will end upon your retirement
END DATE or termination of employment with the Company, or if you are
no longer determined to be an eligible participant or the
Plan is discontinued.
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CONVERSION You may convert your coverage under the Plan to an
individual policy if your employment is terminated or you
become ineligible to participate in the Plan.
OTHER This information is a brief overview of the Plan. Additional
INFORMATION information regarding the Plan is provided in the plan
document. If there is a conflict between the information
provided in the summary and the plan document, the plan
document will prevail.
The Company retains the right to terminate or amend the Plan
at any time.
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