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EXHIBIT 10.2 (20)
AMENDMENT NO. 24
TO THE
UPS RETIREMENT PLAN
WHEREAS, United Parcel Service of America, Inc. ("UPS") and its
affiliated corporations established the UPS Retirement Plan ("Plan") for the
benefit of their eligible employees, in order to provide benefits to those
employees upon their retirement, disability, or death, effective as of September
1, 1961;
WHEREAS, the Plan, as adopted and amended from time to time, was
amended and restated in its entirety, effective as of January 1, 1976, to comply
with the Employee Retirement Income Security Act of 1974;
WHEREAS, the Plan has been amended on a number of occasions since
January 1, 1976, the most recent being Amendment No. 23; and
WHEREAS, it is desired to amend the Plan further to increase the level
of the benefit that will be automatically paid out in lump sum from $3,500 to
$5,000 and to incorporate new assumptions for determining such lump sum benefit
effective for lump sums paid on or after January 1, 2000.
NOW THEREFORE, pursuant to the authority vested in the Board of
Directors by Section 7.1 of the Plan, the UPS Retirement Plan is hereby amended
as follows:
1. Article I is hereby amended effective as of January 1, 2000 to add the
following new definition in Section 1.1(ff):
(ff) "Applicable Interest Rate" means
(1) for lump sum benefits paid before January 1, 2000,
"Applicable Interest Rate" shall mean the lesser of (i) 6% or (ii) the
interest rate or rates which would be used, as of the date distribution
commences, by the Pension Benefit Guaranty Corporation for purposes of
determining the present value of a Participant's benefits under the
Plan if the Plan had terminated on the date distribution commences with
insufficient assets to provide benefits guaranteed by the Pension
Benefit Guaranty Corporation on that date; and
(2) for lump sum benefits paid on or after January 1,
2000, the
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"Applicable Interest Rate" shall be as described in Section 417(e)(3)
of the Code for the "lookback month" preceding the "stability period"
that includes the date the distribution is made. The term "lookback
month" means August, which is the fifth month preceding the first day
of the stability period containing the date of distribution. The term
"stability period" means the calendar year in which the distribution is
made. Notwithstanding the foregoing, for distributions made on or after
January 1, 2000 and before July 1, 2001, the Applicable Interest Rate
means the lesser of (i) the "applicable interest rate" as described in
Section 417(e)(3) of the Code for the second month preceding the month
that includes the date the distribution is made or (ii) the "applicable
interest rate" as described in Section 417(e)(3) of the Code for the
month of August preceding the calendar year that includes the date the
distribution is made.
2. Article I is hereby amended effective as of January 1, 2000 to add the
following new definition in Section 1.1(gg):
(gg) "Applicable Mortality Table" means
(1) for lump sums paid before January 1, 2000, the 1971
Towers, Perrin, Forster, and Crosby Forecast Mortality Table with ages
set back one year; and
(2) for lump sums paid on or after January 1, 2000, the
"applicable mortality table" prescribed by the Secretary of the
Treasury for purposes of Section 417(e)(3) of the Code.
3. Article I is hereby amended effective as of January 1, 2000 to add the
following new definition in Section 1.1(hh):
(hh) Present Value. The term "Present Value" means the
single sum amount of such benefit based on the Applicable Interest Rate
and the Applicable Mortality Table. Notwithstanding the foregoing, with
respect to distributions made on or after January 1, 2000 and before
July 1, 2000 and with respect to distributions made to Participants who
terminated prior to January 1, 2000, the single sum amount shall be the
greater of the amount determined without regard to Section 1.1(ff)(2)
and Section 1.1(gg)(2) or the amount determined taking into account
Section 1.1(ff)(2) and Section 1.1(gg)(2). Additionally, the single sum
amount of the Participant's benefit shall not be less than the single
sum benefit the Participant would have received based on his or her
benefit accrued as of the earlier of his or her date of termination or
June 30,2000 calculated using an interest rate of 6% and
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the Applicable Mortality Table under Section 1.1(gg)(1).
4. Section 5.3(d) is hereby amended effective as of January 1, 2000 to
read as follows:
(d) Cash-out of Benefits. Notwithstanding any other
provisions of this Plan, if following a Participant's termination of
employment the Present Value of his or her vested Normal Retirement
Benefit, Early Retirement Benefit or Deferred Vested Benefit does not
exceed $3,500, for Participants who terminate employment with all
Employer Companies before January 1, 2000, or $5,000, for Participants
who terminate employment with all Employer Companies on or after
January 1, 2000, the Committee shall, in lieu of such benefit, pay to
the Participant, without his or her consent, such Present Value in a
lump sum. In the case of a Participant who terminates employment prior
to earning a vested benefit hereunder, said benefit shall be deemed to
be distributed immediately following such termination of employment. In
the event the Participant is reemployed, his or her Benefit Service
with respect thereto shall be restored in accordance with the rules set
forth at paragraph 1.1(l)(2).
5. Section 5.5(e) is hereby amended effective as of January 1, 2000 to
read as follows:
(e) In lieu of the Preretirement Survivor Benefit
described in this Section 5.5, before the first payment with respect to
such benefit, the Committee shall pay to the surviving spouse, without
his or her consent, the Present Value of the benefit if such Present
Value does not exceed, for payments made before January 1, 1985,
$1,750, for payments made after December 31, 1984 but before January 1,
2000, $3,500, and for payments after December 31, 1999, $5,000.
6. Section 5.7 is hereby amended to delete subsection 5.7(c) and (d), and
to renumber paragraph 5.7(e) as 5.7(c).
IN WITNESS WHEREOF, the undersigned certify that United Parcel Service
of America, Inc., based upon action by its Board of Directors on
June ___, 2000, has caused this Amendment No. 24 to be adopted.
ATTEST: UNITED PARCEL SERVICE
OF AMERICA, INC.
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Joseph R. Moderow James P. Kelly
Secretary Chairman
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