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EXHIBIT 10.2 (21)
AMENDMENT NO. 25
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. 24; and
WHEREAS, it is desired to amend the Plan further to make various
changes to the benefit formula and the distribution options under the Plan
effective, generally, January 1, 2001.
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. Section 1.1(a) is hereby amended effective as of January 1, 2001 to
read as follows:
(a) "Company" means all of the following corporations
collectively:
(1) United Parcel Service of America, Inc.; and
(2) any corporation or trade or business that is
considered to be a single employer with United Parcel Service of
America, Inc., under Code Section 414(b), (c), (m) or (o).
2. Section 1.1(b) is hereby amended effective as of January 1, 2001 to
read as follows:
(b) "Employer Company" means any Company described in
Section 1.1(a) which (1) is listed as an Employer Company in Appendix G
or (2) by action of its board of directors has elected to participate
in this Plan with the consent of United Parcel Service of America, Inc.
An entity shall cease to be an Employer Company when it
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withdraws from the Plan in accordance with Section 7.2 or when it
ceases to be a Company.
3. Section 1.1(n) is hereby amended effective as of January 1, 2001 to
read as follows:
(n) "Hour of Service" means each hour for which an
employee is paid or entitled to be paid for the performance of duties
for an Employer Company or a Related Employer; each hour for which an
employee is paid or entitled to be paid by an Employer Company or a
Related Employer for periods during which no duties are performed due
to vacation, holiday, illness, short-term disability or incapacity
pursuant to which payments are received in the form of salary
continuation or from a short-term disability plan or worker's
compensation plan sponsored by the Employer Company or a Related
Employer or to which the Employer Company or a Related Employer
contributes, layoff, jury duty, military duty which gives rise to
reemployment rights under Federal law, or paid leave of absence
(including a period where an employee remains on salary continuation
during a period of illness or incapacity); each hour for which back pay
is awarded or agreed to by an Employer Company or a Related Employer if
not already credited under this sentence; and each hour for periods
during which an employee is on an unpaid leave of absence.
Notwithstanding any of the foregoing, no more than
1040 Hours of Service will be credited to a Participant for any single
continuous period during which the employee performs no duties; and no
credit shall be given for a payment which is made or due under a plan
maintained solely for the purpose of complying with unemployment
compensation or disability insurance laws or which solely reimburses an
employee for medical or medically related expenses incurred by the
employee; provided, however, Hours of Service shall be credited as
required under the Uniformed Services Employment and Reemployment
Rights Act of 1994 effective December 12, 1994.
A payment shall be deemed to be made by or due from
the Employer Company whether made by or due from the Employer Company
directly or indirectly through a trust fund, insurer or other entity to
which the Employer Company contributes or pays premiums, regardless of
whether such contributions are for the benefit of particular employees
or are on behalf of a group of employees in the aggregate. Stated
generally, Hours of Service credited to a Participant during a period
of absence as described above shall be credited at the same rate at
which the Participant would have normally been credited with Hours of
Service but for the absence; provided however, that the crediting of
Hours of Service shall in all events be consistent with the terms of
Department of Labor Regulations, Section 2530.200b-2 and 3.
Notwithstanding the foregoing provisions of this
Section 1.1(n) and, except as provided below, only for the purpose of
determining whether a Break in Service has occurred under Section 2.1
or Section 6.2 of the Plan, there shall be treated as Hours of Service,
with respect to a Participant who is an Employee on or after January 1,
1985, and who is absent from work (i) by reason of the pregnancy of the
Participant, (ii) by reason of the birth of a child of the Participant,
(iii) by reason of the placement of a child with the
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Participant in connection with the adoption of a child by the
Participant, or (iv) for purposes of caring for a child of the
Participant immediately following its birth or placement, either:
(1) the Hours of Service which otherwise,
normally would have been credited to such Participant but for the
absence, or
(2) if the Plan is unable to determine the
number of Hours of Service described in (1), eight hours per day of
absence.
No credit will be given with respect to any pregnancy or placement of a
child unless the Participant complies with any reasonable request which
the Committee may make for information needed to establish (i) the
reason for the Participant's absence or (ii) the number of days of
absence attributable to a reason for which Hours of Service will be
credited under this paragraph. No more than 501 Hours of Service shall
be credited to a Participant by reason of any one pregnancy or
placement and no Hours of Service shall be credited under this
paragraph if such Hours of Service also are credited under the first
paragraph of this Section 1.1(n).
In determining the Hours of Service for an Employee
classified on the payroll as a part-time employee for which specific
records of hours are not kept, an Employee shall be credited with 190
Hours of Service for each regularly-scheduled calendar work month on or
after January 1, 2000 in which such Participant would, under the rules
described above, have earned at least one Hour of Service. Prior to
January 1, 2000, such Participant shall be credited with 108 Hours of
Service for each such month.
In determining the Hours of Service for an Employee
classified on the payroll as a full-time employee for which specific
records of hours are not kept, an Employee shall be credited with 216
Hours of Service, for each regularly-scheduled calendar month in which
such Employee would, under the rules described above, have earned at
least one Hour of Service.
An individual who is treated as an employee of an
Employer Company or a Related Employer solely as a result of the
operation of the rules under Code Section 414(n) shall be credited with
Hours of Service with an Employer Company or a Related Company as
required under Code Section 414(n).
4. Section 1.1(v) s hereby amended effective as of January 1, 2000 to read
as follows:
(v) "Actuarial Equivalent" means:
(1) For purposes of determining the benefit payable
in an optional form of benefit (other than the Present Value of a
benefit as described in Section 1.1(hh)), a benefit having in the
aggregate equality in value to the amounts expected to be received
under the Normal Form of benefit payment based upon an interest rate of
6% and
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the 1983 GAM Mortality Table for Males for Participants and the 1983
GAM Mortality Table for Females for beneficiaries and Alternate Payees.
(2) Notwithstanding the foregoing, for any
Grandfathered Participant or any other Participant who has accrued a
benefit under the Plan as of December 31, 2000 who is not in pay status
as of December 31, 2000, the Actuarial Equivalent value of his or her
benefit payable in the form of a Qualified Joint and Survivor (Husband
and Wife) Benefit, a 50% Joint and Survivor Benefit or a Single Life
with 120 Month Guarantee shall be the greater of (i) the amount
determined under Section 1.1(v)(1) above or (ii) the amount determined
in accordance with paragraph (A) or (B) below:
(A) If the benefit is payable in the
form of a Qualified Joint and Survivor (Husband and Wife) Benefit or a
50% Joint and Survivor Benefit:
(I) 94 percent of the
Participant's monthly benefit determined under Section 5.2(b), Section
5.2(c) or Section 5.2(d) increased (or decreased) by 0.5 percent for
each year the spouse's or beneficiary's age is greater (or less) than
the Participant's age, to a minimum of 82 percent if the beneficiary is
the Participant's spouse (but no minimum shall apply if the beneficiary
is not the Participant's spouse), and a maximum of 99 percent (without
regard to whether the beneficiary is the Participant's spouse), if the
Normal Form of the Participant's benefit is a single life annuity with
a guarantee of 120 monthly payments; and
(II) 90 percent of the
Participant's monthly benefit determined under Section 5.2(b), Section
5.2(c) or Section 5.2(d) increased (or decreased) by 0.5 percent for
each year the spouse's or beneficiary's age is greater (or less) than
the Participant's age, with no minimum but to a maximum of 99 percent,
if the Normal Form of the Participant's benefit is a single life
annuity.
(B) If the benefit is payable to a
Participant with at least one Hour of Service as an Employee on or
after January 1, 1992 in the form of a Single Life with 120 Month
Guarantee, 95 percent of his or her monthly benefit payable in the
Normal Form.
(3) For any purpose other than determining the
benefit payable in an optional form of benefit or the Present Value of
a benefit as described in Section 1.1.(hh) (for example, for the
purpose of determining the amount of any offset under Section 5.6 or
benefits provided under Article XIII) Actuarial Equivalence shall be
determined based upon an interest rate of 6% and the 1971 Towers,
Perrin, Forster and Crosby Forecast Mortality Table with ages set back
one year.
5. Section 1.1(y) is hereby amended effective as of April 1, 1999 to read
as follows:
(y) "Compensation" means, generally, remuneration
currently earned and actually paid by an Employer Company or a domestic
Related Employer to an employee
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who is a Participant in the Plan, and reported on such employee's Form
W-2 for the applicable calendar year, including basic salary or wages
(without reducing wages to account for the Participant's elective
deferral of a portion of his or her salary or wages, if any, pursuant
to a cash or deferred arrangement described in Code Section 401(k), a
Code Section 125 plan or the UPS Deferred Compensation Plan), overtime
pay, incentive and bonus pay, and including the value of awards made
pursuant to the UPS Managers' Incentive Plan or management incentive
awards under the United Parcel Service, Inc. Incentive Compensation
Plan. Compensation shall not include any other payments received by the
Participant, including, but not limited to, the following,
notwithstanding that such payments may be included in the Participant's
Form W-2 for the applicable year:
(1) Payments in the nature of compensation from
an insurance carrier, from a state unemployment or worker's
compensation fund, or from any health and welfare or other benefit
program or plan maintained by an Employer Company or a Related Employer
other than the United Parcel Service, Inc. Incentive Compensation Plan
for management incentive awards thereunder.
(2) Disability payments from an insurance
carrier, a state disability insurance fund, this Plan or any other
disability plan maintained by an Employer Company or a Related
Employer.
(3) `Foreign service differentials' or other
supplemental payments made by an Employer Company or a Related Employer
to a Participant working outside his or her country of citizenship on
account of such foreign service.
(4) Payment or reimbursement by an Employer
Company or a Related Employer of relocation expenses incurred by a
Participant or his or her family.
(5) The value of employee fringe benefits
provided by an Employer Company or a Related Employer, including but
not limited to the payment of life insurance premiums, whether or not
the value of such fringe benefits is includable in an employee's
taxable income.
(6) Payments made under deferred compensation
plans or programs.
(7) Employer contributions to any pension,
profit-sharing or stock bonus plan to which the Employer Company or a
Related Employer contributes.
(8) Employer contributions to any welfare
benefit plan to which an Employer Company or a Related Employer
contributes.
(9) Income attributable to awards under the UPS
Stock Option Plan or the United Parcel Service, Inc. Incentive
Compensation Plan other than management incentive awards.
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For the purpose of calculating a Participant's
accrued benefit for any Plan Year commencing on or after January 1,
1989, in no event shall the Compensation of any participant taken into
account under the Plan exceed the following dollar amounts:
Plan Year Compensation Limit
--------- ------------------
1989 $200,000
1990 $209,200
1991 $222,220
1992 $228,860
1993 $235,840
1994 $150,000
1995 $150,000
1996 $150,000
1997 $160,000
1998 $160,000
1999 $160,000
2000 $170,000
2001 $170,000
increased by the applicable cost-of-living adjustment, if any, for the
calendar year sanctioned by Code Section 401(a)(17).
For Plan Years commencing before January 1, 1997, in
determining the Compensation of a Participant, the rules of Code
Section 414(q)(6) (as in effect immediately prior to January 1, 1997)
shall apply, except that in applying such rules, the term "family"
shall include only the Participant's spouse and any lineal descendants
of the Participants who have not attained age 19 before the close of
the Plan Year. If, as a result of the application of such rules the
applicable Compensation limitation is exceeded, then such limitation
shall be prorated among the affected individuals in proportion to each
such individual's Compensation as determined under this subsection
1.1(y) prior to the application of this limitation.
In determining a Participant's Final Average
Compensation, the $150,000 Compensation limitation shall apply
retroactively with respect to Compensation earned prior to 1994 by a
Participant with at least one Hour of Service on or after January 1,
1994. Similarly, the $200,000 Compensation limitation shall be applied
retroactively with respect to Compensation earned prior to 1989 by a
Participant with at least one Hour of Service on or after January 1,
1989 (but without any Hours of Service on or after January 1, 1994).
However, a Participant's Benefit shall not be less than that which he
or she had accrued or earned as of December 31, 1993 (December 31, 1988
in the case of a Participant without at least one Hour of Service on or
after January 1, 1994), based on his or her Benefit Service and Final
Average Compensation determined as of such date.
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Solely for the purpose of avoiding a double
proration, within the meaning of Department of Labor Regulations,
Section 2530.204-2(d), in calculating a Participant's benefit under
Section 5.2A; to the extent that a Participant is credited with less
than a full year's Benefit Service for a calendar year, then the
Participant's Compensation taken into account for such year shall be
annualized by dividing such Compensation by the number of months of
Benefit Service earned by the Participant for such calendar year and
multiplying the result by 12.
6. Section 1.1(z) is hereby amended effective as of January 1, 2001 to
read as follows:
(z) "Final Average Compensation" means, with respect to
each Participant, his or her average annual Compensation for the
highest consecutive five full calendar years of employment (or actual
number of consecutive full years of employment if less than five) out
of the last consecutive ten calendar years of employment (or actual
number of consecutive years of employment if less than ten) preceding
the earlier of the calendar year in which:
(1) the Participant terminated his or
her period of employment with the Employer Company and all Related
Employers, whether by reason of retirement or other separation from
service, or
(2) the Plan terminated, whether in
whole or in part.
Notwithstanding the foregoing, if the Participant received
Compensation for the entire calendar year in which his or her
termination of employment occurred, his or her Compensation for such
calendar year shall be included in the calculation of his or her Final
Average Compensation if it is to his or her advantage to do so.
Further, for a Grandfathered Participant and each other
Participant who has an accrued benefit under the Plan as of December
31, 2000, his or her accrued benefit in no event shall be less than his
or her accrued benefit determined as of December 31, 2000 using his or
her average annual Compensation for the highest consecutive five full
calendar years of employment (or actual number of consecutive full
years of employment if less than five) out of the last consecutive ten
calendar years of employment (or actual number of consecutive years of
employment if less than ten) preceding the calendar year in which
occurs the earlier of (i) the Participant terminated his or her most
recent period of employment included in the calculation of Benefit
Service prior to December 31, 2000, whether by reason of retirement or
other separation from service with an Employer Company, or by transfer
to a position in which he or she is no longer an Employee within the
meaning of Section 1.1(j) or (ii) December 31, 2000.
7. Article I is hereby amended effective as of January 1, 2001 to add the
following new definition in Section 1.1(ii):
(ii) "Grandfathered Participant" means any Participant
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(1) who performed an Hour of Service as an
Employee on or before December 31, 2000 or was classified as an
employee on the payroll of an Employer Company on or before December
31, 2000, but was not an Employee because the terms or conditions of
his or her employment were governed by a collective bargaining
agreement which did not expressly provide for coverage under the Plan;
(2) who performs an Hour of Service as an
Employee on or after January 1, 2001; and
(3) whose Hours of Service as an Employee prior
to January 1, 2001 are not disregarded (without regard to whether such
Participant received a month of Benefit Service with respect to such
Hours of Service).
An individual who is treated as an employee solely as a result of the
application of Code Section 414(n) shall under no circumstances be
treated as a Grandfathered Participant.
8. Section 5.1(a) is hereby amended effective as of January 1, 2001 to
read as follows:
(a) Benefits Subject to Limits of Plan Provisions in
Effect. The benefit to which a Participant under this Plan is entitled
shall be determined by the provisions of the Plan which were in effect
on the date of the Participant's retirement, death, or otherwise ceases
to accrue Benefit Service, whichever is the earliest. No amendment made
to the Plan after such date shall affect the entitlement of a
Participant to any benefit hereunder, unless the amendment specifically
provides to the contrary.
9. Section 5.2 is hereby amended effective as of January 1, 2001 to read
as follows:
Section 5.2 Benefit Amounts.
(a) Accrued Benefit. The amount of the monthly pension
payable to a Participant in the Normal Form described in Section 5.3(c)
commencing as of his or her Normal Retirement Date or, if later, the
date he or she actually retires shall be equal to
(1) For a Participant with an Hour of
Service as an Employee on or after January 1, 2001 who is not a
Grandfathered Participant, the greater of (i) the benefit calculated
under the Alternative Account Formula or (ii) the benefit calculated
under the Integrated Account Formula, each as described in Section
5.2A(a).
(2) For a Grandfathered Participant,
the greater of (i) the greater of (A) the benefit calculated under the
Alternative Account Formula or (B) the benefit calculated under the
Integrated Account Formula, each as described in Section 5.2A(a) or
(ii) the greater of (A) the benefit calculated under the Alternative
Formula or (B) the benefit calculated under the Integrated Formula,
each as described in Section 5.2A(b).
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(3) For a Participant without an Hour
of Service as an Employee on or after January 1, 2001, the greater of
(i) the benefit calculated under the Alternative Formula or (ii) the
benefit calculated under the Integrated Formula, each as described in
Section 5.2A(b).
(b) Normal Retirement Benefit. A Participant who
terminates employment with all Employer Companies and Related Employers
on the Participant's Normal Retirement Date shall be entitled to a
normal retirement benefit, which is the monthly annuity described in
Section 5.2(a). A Participant's normal retirement benefit shall not be
less than his or her "early retirement benefit" determined in
accordance with Section 411(a)(9) of the Code and the regulations
thereunder.
(c) Early Retirement Benefit.
(1) Normal Commencement. A Participant
who terminates employment with all Employer Companies and Related
Employers on or after the Participant's Early Retirement Date but
before his or her Normal Retirement Date shall be entitled to an early
retirement benefit, which is a monthly annuity determined under Section
5.2(a) as of his or her most recent termination of employment with all
Employer Companies and Related Employers. Such annuity shall be payable
at his or her Normal Retirement Date.
(2) Early Commencement. A Participant
who is eligible for an early retirement benefit under Section 5.2(c)(1)
may commence such benefit at any time on or after he or she terminates
employment with all Employer Companies and Related Employers and before
his or her Normal Retirement Date provided that the amount of such
benefit shall be reduced for early commencement in accordance with the
following:
(i) For a Participant with an Hour of
Service as an Employee on or after January 1, 2001 who is not a
Grandfathered Participant
(A) With less than 20 Years
of Benefit Service as of his or her Annuity Starting Date, the early
retirement benefit amount shall be equal to the greater of the benefit
determined under the Alternative Account Formula or the benefit
determined under the Integrated Account Formula, each as described in
Section 5.2A(a), reduced by one-half of one percent (0.5%) for each
month by which the Participant's Annuity Starting Date precedes his or
her Normal Retirement Date.
(B) With 20 or more Years of
Benefit Service as of his or her Annuity Starting Date, the early
retirement benefit amount shall be equal to the greater of the benefit
determined under the Alternative Account Formula or the benefit
determined under the Integrated Account Formula, each as described in
Section 5.2A(a), reduced by one-quarter of one percent (0.25%) for each
month by which the Participant's Annuity Starting Date precedes his or
her Normal Retirement Date.
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(C) With 25 or more Years of
Benefit Service as of his or her Annuity Starting Date, the early
retirement benefit amount shall be equal to the greater of I or II
below:
(I) the benefit
calculated under the Alternative Account Formula under Section
5.2A(a)(1) without any reduction applied; or
(II) the benefit
calculated under the Integrated Account Formula under Section
5.2A(a)(2) reduced by one-quarter of one percent (0.25%) for each month
by which the Participant's Annuity Starting Date precedes the first day
of the month that coincides with or immediately follows his or her 60th
birthday.
(ii) For a Grandfathered Participant,
his or her reduced early retirement benefit shall be the amount
determined under (A), (B) or (C) below:
(A) With less than 20 years
of Benefit Service, the early retirement benefit amount shall be equal
to the greater of (I) or (II) below.
(I) the greater of
the benefit calculated under the Alternative Account Formula or the
Integrated Account Formula, each as described in Section 5.2(A)(a),
reduced by one-half of one percent (0.5%) for each month by which the
Participant's Annuity Starting Date precedes his or her Normal
Retirement Date.
(II) the greater of
the benefit calculated under the Alternative Formula or the Integrated
Formula, each as described in Section 5.2(A)(b), reduced by one-quarter
of one percent (0.25%) for each month by which the Participant's
Annuity Starting Date precedes his or her Normal Retirement Date.
(B) With 20 or more years of
Benefit Service, the early retirement benefit shall be equal to the
greater of (I) or (II) below, reduced by one-quarter of one percent
(0.25%) for each month by which the Participant's Annuity Starting Date
precedes his or her Normal Retirement Date where
(I) equals the greater
of the benefit calculated under the Alternative Account Formula and the
Integrated Account Formula, each as described in Section 5.2A(a).
(II) equals the greater
of the benefit calculated under the Alternative Formula or the
Integrated Formula, each as described in Section 5.2A(b).
(C) With 25 or more Years of
Benefit Service as of his or her Annuity Starting Date, the early
retirement benefit amount shall be equal to the greater of (I) or (II)
below:
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(I) equals the greater
of (a) the benefit calculated under the Alternative Account Formula
under Section 5.2A(a)(1) without any reduction applied or (b) the
benefit calculated under the Integrated Account Formula under Section
5.2A(a)(2) reduced by one-quarter of one percent (0.25%) for each month
by which the Participant's Annuity Starting Date precedes the first day
of the month that coincides with or immediately follows his or her 60th
birthday.
(II) equals the greater
of (a) the benefit calculated under the Alternative Formula under
Section 5.2A(b)(2) without any reduction applied or (b) the benefit
calculated under the Integrated Formula under Section 5.2A(b)(1)
reduced by one-quarter of one percent (0.25%) for each month by which
the Participant's Annuity Starting Date precedes the first day of the
month that coincides with or immediately follows his or her 60th
birthday.
(iii) For a Participant without an Hour
of Service as an Employee on or after January 1, 2001, his or her early
retirement benefit shall be the amount determined under (A) through (E)
below:
(A) For a Participant who
retires on or after September 1, 1979 but who earns no Hours of Service
on or after January 1, 1985, the greater of the benefit calculated
under the Alternative Formula or the Integrated Formula, each as
described in Section 5.2A(b), reduced by one-half of one percent (0.5%)
for each month by which the Participant's Annuity Starting Date
precedes his or her Normal Retirement Date.
(B) Except as provided in
Section 5.2(c)(2)(iii) (C) below, for a Participant who retires on or
after January 1, 1985 but who earns no Hours of Service as an Employee
on or after January 1, 1992, the greater of the benefit calculated
under the Alternative Formula or the Integrated Formula, as described
in Section 5.2A(b), reduced by one-quarter of one percent (0.25%) for
each month by which the Participant's Annuity Starting Date precedes
his or her Normal Retirement Date.
(C) For a Participant who
(I) retires on or after January 1, 1985, (II) who earns no Hours of
Service as an Employee on or after January 1, 1992, (III) whose Annuity
Starting Date precedes his or her Normal Retirement Date by 91 months
or more, and (IV) who has at least 29 years and six months of Benefit
Service (without regard to the rounding rules described in Section
5.2(f)), his or her benefit shall be reduced in accordance with (B)
above and for purposes of calculating such Participant's benefit amount
under the Integrated Formula described in Section 5.2A(b)(1), the term
"50 percent of his or her Social Security Amount" shall be deemed to
mean the applicable percentage of his or her Social Security Amount set
forth in the following table:
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Age at Retirement Date
Years Months Applicable Percentage
------------------------- ---------------------
55 0 49.19%
55 1 49.21%
55 2 49.22%
55 3 49.24%
55 4 49.27%
55 5 49.29%
55 6 49.30%
55 7 49.32%
55 8 49.35%
55 9 49.36%
55 10 49.38%
55 11 49.40%
56 0 49.42%
56 1 49.45%
56 2 49.48%
56 3 49.51%
56 4 49.54%
56 5 49.56%
56 6 49.60%
56 7 49.63%
56 8 49.65%
56 9 49.69%
56 10 49.71%
56 11 49.74%
57 0 49.78%
57 1 49.81%
57 2 49.84%
57 3 49.89%
57 4 49.92%
57 5 49.97%
(D) For a Participant with at
least one Hour of Service as an Employee on or after January 1, 1992
without at least 25 years of Benefit Service, the early retirement
benefit amount shall be equal to the greater of the benefit determined
under the Alternative Formula or the Integrated Formula, each as
described in Section 5.2A(b) reduced by one-quarter of one percent
(0.25%) for each month by which the Participant's Annuity Starting Date
precedes his or her Normal Retirement Date.
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(E) For a Participant with at
least one Hour of Service as an Employee on or after January 1, 1992,
and with 25 or more Years of Benefit Service as of his or her Annuity
Starting Date, the early retirement benefit amount shall be equal to
the greater of
(I) the benefit
calculated under the Integrated Formula under Section 5.2A(b)(1)
reduced by one-quarter of one percent (0.25%) for each month by which
the Participant's Annuity Starting Date precedes the first day of the
month that coincides with or immediately follows his or her 60th
birthday; or
(II) the benefit
calculated under the Alternative Formula under Section 5.2A(b)(2)
without any reduction applied.
(d) Deferred Vested Benefit.
(1) Normal Commencement. A Participant who
terminates employment with all Employer Companies and Related Employers
after he or she is vested as described in Section 4.4 shall be entitled
to a deferred vested benefit, which is a monthly annuity determined
under Section 5.2(a) as of his or her most recent termination of
employment with all Employer Companies and Related Employers. Such
annuity shall be payable at his or her Normal Retirement Date or at any
time after he or she is age 55 or older provided the Participant has at
least 10 Years of Service and the benefit is reduced in accordance with
Section 5.2(d)(2) below.
(2) Early Commencement. A Participant who is
eligible for a deferred vested benefit and who has at least 10 Years of
Service may commence such benefit as of the first day of any calendar
month on or after he or she terminates employment with all Employer
Companies and Related Employers and reaches age 55 but before his or
her Normal Retirement Date, subject to the following reductions:
(i) For a Participant with an Hour of
Service as an Employee on or after January 1, 2001 who is not a
Grandfathered Participant, the amount determined under Section
5.2(d)(1) shall be the greater of the benefit calculated under the
Alternative Account Formula or under the Integrated Account Formula,
each as described in Section 5.2A(a), reduced for early commencement by
one-half of one percent (0.5%) for each month by which the
Participant's Annuity Starting Date precedes his or her Normal
Retirement Date.
(ii) For a Grandfathered Participant,
his or her early retirement benefit shall be the greater of the amount
determined under (A) or (B) below, reduced for early commencement by
one-half of one percent (0.5%) for each month by which the
Participant's Annuity Starting Date precedes his or her Normal
Retirement Date:
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(A) the greater of the benefit
calculated under the Alternative Account Formula or the Integrated
Account Formula, each as described in Section 5.2A(a).
(B) the greater of the benefit
calculated under the Alternative Formula or the Integrated Formula,
each as described in Section 5.2A(b).
Notwithstanding the foregoing, the
amount shall not be less than the Deferred Vested Benefit, if any, the
Participant would have earned under the provisions of this Plan
immediately prior to January 1, 1992, taking into account for this
purpose Compensation, if any, earned by the Participant through
December 31, 1991 and Benefit Service earned by him or her through
December 31, 1992, if any, reduced by one-quarter of one percent
(0.25%) instead of one-half of one percent (0.50%).
(iii) For a Participant without an Hour
of Service as an Employee on or after January 1, 2001, his or her early
retirement benefit shall be the greater of the benefit calculated under
the Alternative Formula or the Integrated Formula, each as described in
Section 5.2A(b),and reduced in accordance with the formulas described
below:
(I) For a Participant with at
least one Hour of Service on or after September 1, 1979 but without at
least one Hour of Service as an Employee on or after January 1, 1992,
the amount shall be reduced by the following percentage thereof for
each month by which the Participant's Annuity Starting Date precedes
his or her Normal Retirement Date:
(a) for terminations
before January 1, 1985, one-half of one percent (0.5%); and
(b) for terminations
after December 31, 1984, one-quarter of one percent (0.25%).
(II) For a Participant with at
least one Hour of Service as an Employee on or after January 1, 1992,
the amount shall be reduced by one-half of one percent (0.5%) for each
month by which the Participant's Annuity Starting Date precedes his or
her Normal Retirement Date.
Notwithstanding the foregoing, the amount
shall not be less than the Deferred Vested Benefit, if any, the
Participant would have earned under the provisions of this Plan
immediately prior to January 1, 1992, taking into account for this
purpose Compensation earned by the Participant through December 31,
1991 and Benefit Service earned by him or her through December 31, 1992
reduced by one-quarter of one percent (0.25%) instead of one-half of
one percent (0.50%).
(e) Postponed Retirement Benefit. A Participant who
terminates employment with all Employer Companies and Related Employers
after the Participant's Normal
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Retirement Date shall be entitled to a postponed retirement benefit,
which is a monthly annuity equal to the greater of (1) his or her
normal retirement benefit described in Section 5.2(b) above or (2) the
amount determined under Section 5.2(a) as of his or her termination of
employment with all Employer Companies and Related Employers. Such
annuity shall be payable as of the first day of the month following
such termination of employment.
(f) Rounding Rules. Notwithstanding the foregoing, for
purposes of determining the amount of the benefit under the Alternative
Formula or the Integrated Formula, each as described in Section
5.2A(b), and the early commencement reductions applicable to benefits
determined under such formulas in accordance with Sections 5.2(c) or
(d) for a Grandfathered Participant and a Participant without an Hour
of Service as an Employee on or after January 1, 2001, such
Participant's aggregate years and months of Benefit Service shall be
rounded up to the next full year if he or she has 6 or more months of
Benefit Service in excess of full years of Benefit Service and shall be
rounded down to the next full year if he or she has 5 or fewer months
of Benefit Service in excess of full years of Benefit Service.
10. Article V is hereby amended effective as of January 1, 2001 to add a
new Section 5.2A following Section 5.2 which reads as follows:
Section 5.2A Formulas.
(a) Alternative Account Formula and Integrated Account
Formula. The formulas described in this Section 5.2A(a) shall apply
only to a Participant with an Hour of Service as an Employee on or
after January 1, 2001.
(1) Alternative Account Formula. The Alternative
Account Formula is (A + B) / 120, where
A = the Participant's Alternative Points
times 1% of his or her Final Average
Compensation up to $48,000; and
B = the Participant's Alternative-PLUS
Points times 1% of his or her Final Average
Compensation in excess of $48,000.
(2) Integrated Account Formula. The Integrated
Account Formula is (C + D) / 120, where
C = the Participant's Integrated Points
times 1% of his or her Final Average
Compensation and
D = the Participant's Integrated-PLUS Points
times 1% of his or her Final Average
Compensation in excess of the Social
Security Wage Base.
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(3) A Participant who has at least one Hour of
Service as an Employee on or after January 1, 2001 shall accumulate
Alternative Points, Alternative-PLUS Points, Integrated Points and
Integrated-PLUS Points (collectively, "RPA Points") for each year and
partial year of Benefit Service without regard to whether such Benefit
Service was completed before January 1, 2001. The points accumulated
for any year of Benefit Service will be equal to the RPA Points
described in Appendix F to this Plan (the "RPA Schedule") for the
Employer Company or Employer Companies for which the Participant
performed the Benefit Service determined in accordance with this
Section 5.2A(a)(3). Credit for each year of Benefit Service completed
before January 1, 2001 will be determined under Appendix F-1 as in
effect on January 1, 2001 without regard to what Employer Company
employed the Participant at the time the Benefit Service was completed.
No Participant shall earn credit for more than 12 months of Benefit
Service in any Plan Year.
If a Participant has Benefit Service under more than
one RPA Schedule in any Plan Year, the RPA Points such Participant
accumulates that Plan Year will be determined as follows:
(i) First, determine the Participant's
total Benefit Service for the Plan Year in accordance with Section
1.1(1);
(ii) Second determine the Benefit
Service accrued under each RPA Schedule in accordance with Section
1.1(1) based on the Hours of Service with the Employer Company or
Companies covered by such RPA Schedule;
(iii) Third, allocate the Participant's
Benefit Service determined under (i) above (but not in excess of 12
months) to the RPA Schedules starting with the actual service completed
(determined under (ii) above) under the RPA Schedule that provides the
highest point value and continuing with the actual Benefit Service
under the RPA Schedule with the next highest point values until the sum
of the Benefit Service completed under each RPA Schedule equals the
total Benefit Service in (i) or 12 months, whichever is less;
For example, assume a Participant
has 2000 total Hours of Service for Employer Companies during the Plan
Year, 874 hours are under the RPA Schedule with the lowest point value
(Schedule 3), 874 hours are under the RPA Schedule with the highest RPA
Point value (Schedule 1), and 252 hours are under an RPA Schedule that
is between the highest and lowest point values (Schedule 2). The
Participant's total Benefit Service is 12 months. The Participant has 6
months of Benefit Service under Schedule 1 and Schedule 3, and 2 months
of Benefit Service under Schedule 2. The Participant will be credited
with 6 months under Schedule 1, 2 months under Schedule 2 and 4 months
under Schedule 3;
(iv) Fourth, determine the actual RPA
Points for each RPA Schedule by multiplying the RPA Points in such RPA
Schedule by a fraction, the numerator of which is the number of months
of Benefit Service allocated to that schedule under (iii) above and the
denominator of which is 12. For example, multiply the RPA Points under
Schedule 1 by 1/2
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(6/12), multiply the RPA Points under Schedule 2 by 1/6 (2/12) and
multiply the RPA Points under Schedule 3 by 1/3 (4/12); and
(v) Fifth, add the RPA Points
determined under (iv) above to determine the RPA Points for the Plan
Year.
(b) Integrated Formula and Alternative Formula. The
formulas in this Section 5.2A(b) shall apply only to a Grandfathered
Participant or Participant without an Hour of Service as an Employee on
or after January 1, 2001.
(1) Integrated Formula. A Participant's benefit
under this Section 5.2A(b)(1) shall be equal to the benefit determined
under (i) or (ii) as applicable plus the Additional Monthly Retirement
Benefit, if any, applicable to such Participant as contained in Exhibit
D of the Plan.
(i) For a Participant who does not have
at least one Hour of Service as an Employee on or after January 1,
1997, the Integrated Formula is 1/12th of 50 percent of such
Participant's Final Average Compensation less 1/12th of 50 percent of
his or her Social Security Amount where such Participant has 30 or more
years of Benefit Service. If such Participant has less than 30 years of
Benefit Service at his or her Annuity Starting Date, the amount
calculated above shall be multiplied by a fraction, the numerator of
which is the number of years of Benefit Service to his or her Annuity
Starting Date, and the denominator of which is 30.
In the case of a Participant with at least one Hour
of Service as an Employee on or after January 1, 1992 for whom the
Normal Form of benefit is a single life annuity, the benefit calculated
in accordance with this Section 5.2A(b)(1)(i) shall not be less than
such Participant's benefit under the Integrated Formula, if any,
calculated in accordance with this Section 5.2A(b)(1)(i) and payable in
the form of a single life annuity with a guarantee of 120 monthly
payments, but taking into account for this purpose only that
Compensation earned by the Participant through December 31, 1991 and
Benefit Service earned by him or her through December 31, 1992.
(ii) For a Participant who has at least
one Hour of Service as an Employee on or after January 1, 1997, the
Integrated Formula is 1/12th of 58.33 percent of such Participant's
Final Average Compensation (as defined under the terms of this Plan as
of the date of the Participant's retirement or other termination of
employment) less 1/12th of 58.33 percent of his or her Social Security
Amount where such Participant has 35 or more years of Benefit Service.
If such Participant has less than 35 years of Benefit Service at his or
her Annuity Starting Date, the amount calculated above shall be
multiplied by a fraction, the numerator of which is the number of years
of Benefit Service to his or her Annuity Starting Date, and the
denominator of which is 35.
(2) Alternative Formula. A Participant's benefit
under this Section 5.2A(b)(2) shall be equal to the benefit determined
under (i) or (ii) as applicable plus the
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Additional Monthly Retirement Benefit, if any, applicable to such
Participant as contained in Exhibit D of the Plan.
(i) (A) For a Participant with at
least one Hour of Service on or after September 1, 1979 but without at
least one Hour of Service on or after January 1, 1985, the Alternative
Formula is $24 per month for each year of Benefit Service completed by
such Participant prior to his or her Normal Retirement Date to a
maximum of $600 per month; provided such Participant has 10 or more
Years of Service prior to his or her Normal Retirement Date.
(B) For a Participant with at
least one Hour of Service on or after January 1, 1985 but without at
least one Hour of Service as an Employee on or after January 1, 1992,
the Alternative Formula is $32 per month for each year of Benefit
Service completed by such Participant prior to his or her Normal
Retirement Date or (with respect to a Participant with at least one
Hour of Service on or after January 1, 1987) Postponed Retirement Date
to a maximum of $960 per month; provided such Participant has 10 or
more Years of Service prior to his or her Normal Retirement Date or
Postponed Retirement Date.
If a Participant without at least one Hour of Service
on or after January 1, 1989 has less than 10 Years of Service prior to
his or her Normal Retirement Date or Postponed Retirement Date, the
amount shall be determined as set forth in Section (b)(2)(i)(A) or (B)
above, as applicable, using the number of years of Benefit Service
multiplied by a fraction, the numerator of which is his or her number
of Years of Service to Normal Retirement Date (or, for a Participant
with at least one Hour of Service on or after January 1, 1987, his or
her actual retirement date) not in excess of 10, and the denominator of
which is 10. If a Participant with at least one Hour of Service on or
after January 1, 1989, and who first became a Participant in the Plan
prior to January 1, 1989, has less than 5 Years of Service prior to his
or her Normal Retirement Date, the amount shall be determined under
subparagraph (b)(2)(i)(B) using the number of years of Benefit Service
multiplied by a fraction, the numerator of which is his or her number
of Years of Service to his or her actual retirement date, not in excess
of 5, and the denominator of which is 5. The foregoing sentence shall
not apply to any individual who first became a Participant on or after
January 1, 1989.
(ii) (A) For a Participant with at
least one Hour of Service as an Employee on or after January 1, 1992
but without at least one Hour of Service as an Employee on or after
January 1, 1997, the Alternative Formula is the sum of
(I) 1/12th of two
percent (2%) of such Participant's Final Average Compensation up to
$48,000, multiplied by his or her years of Benefit Service to a maximum
of 30; plus
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(II) 1/12th of one-
half of one percent (0.5%) of such Participant's Final Average
Compensation in excess of $48,000, multiplied by his or her years of
Benefit Service to a maximum of 30.
(B) For a Participant with at least
one Hour of Service as an Employee on or after January 1, 1997, the
Alternative Formula is the sum of
(I) 1/12th of two
percent (2%) of such Participant's Final Average Compensation up to the
Threshold Amount, multiplied by his or her years of Benefit Service to
a maximum of 35; plus
(II) 1/12th of one-
half of one percent (0.5%) of such Participant's Final Average
Compensation in excess of the Threshold Amount, multiplied by his or
her years of Benefit Service to a maximum of 35.
For purposes of this subparagraph (b)(2)(ii)(B), the
term "the Threshold Amount" means $48,000 for a Participant who was
born in 1957 or later, $54,000 for a Participant who was born in or
after 1951 but before 1957, and $60,000 for a Participant born in 1950
or earlier.
Notwithstanding the foregoing, the benefit amount calculated
in accordance with this Section 5.2A(b)(2)(ii) shall not be less than
the Participant's accrued benefit, if any, calculated in accordance
with Section 5.2A(b)(2)(i) and payable in the form of a single life
annuity with a guarantee of 120 monthly payments, taking into account
all Benefit Service earned by the Participant through December 31,
1992.
11. Section 5.3 is hereby amended effective as of January 1, 2001 to read
as follows:
Section 5.3 Benefit Payment.
(a) Annuities. Except as provided in Section 5.3(g) and
unless the Participant elects otherwise pursuant to Section 5.3(d), a
benefit described in Section 5.2 will be paid:
(1) If a Participant is married on his or her
Annuity Starting Date, in the form of a Qualified Joint and Survivor
(Husband and Wife) Benefit described in Section 5.3(b) and
(2) If the Participant is not married on the
Annuity Starting Date, in the Normal Form described in Section 5.3(c).
(b) Qualified Joint and Survivor (Husband and Wife)
Benefit. Under the Qualified Joint and Survivor (Husband and Wife)
Benefit, a reduced monthly benefit shall be paid to the Participant for
his or her lifetime, and his or her spouse as of the Annuity Starting
Date, if such spouse survives the Participant, shall be entitled to
receive thereafter a lifetime survivorship benefit in a monthly amount
equal to 50% of the monthly amount
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which had been payable to the Participant. The last payment of the
Qualified Joint and Survivor (Husband and Wife) Benefit shall be made
as of the first day of the month in which the death of the last to die
of the Participant and his or her spouse has occurred. The benefit
under the Qualified Joint and Survivor (Husband and Wife) Benefit shall
be the Actuarial Equivalent of the Normal Form of the Participant's
benefit.
(c) Normal Form of Benefit.
(1) For a Participant without at least one Hour
of Service as an Employee on or after January 1, 1992, the Normal Form
of his of her benefit under this Plan shall be a single life annuity
with a guarantee of 120 monthly payments, so that if the Participant
dies after the Annuity Starting Date but before receiving 120 monthly
payments, the monthly payment shall be paid to the Participant's
beneficiary, designated in accordance with Section 5.9, until the
Participant and his or her beneficiary have received a total of 120
monthly payments.
(2) For a Participant with at least one Hour of
Service as an Employee on or after January 1, 1992, the Normal Form of
his or her benefit under this Plan shall be a single life annuity, the
last payment of which shall be made as of the first day of the month in
which the death of the Participant occurs.
(d) Election out of Normal Form of Benefit or Qualified
Joint and Survivor (Husband and Wife) Benefit. In lieu of the Normal
Form or the Qualified Joint and Survivor (Husband and Wife) Benefit, a
Participant who is eligible for an annuity form of benefit under
Section 5.3(a), may elect, at any time within the 90-day period ending
on the Annuity Starting Date, to waive such benefit in favor of one of
the Actuarial Equivalent optional benefit forms described in Section
5.3(f).
(1) Form of Election. An election by a
Participant under this Section 5.3(d) must be in writing in a form
approved by the Committee, and, if the Participant is married, such
election shall not be effective unless:
(i) the spouse of the Participant
consents to the election, and such consent (A) is in writing, (B)
acknowledges the Participant's selection of an alternate form of
benefit and/or survivor beneficiary, which may not thereafter be
changed without spousal consent unless the spouse's prior consent
expressly permits the Participant to change the survivor beneficiary
without further consent by the spouse, (C) acknowledges the effect of
such election, and (D) is witnessed by a notary public; or
(ii) it is established to the
satisfaction of a representative of the Plan that the spouse's consent
cannot be obtained because (A) the Participant has no spouse, (B) the
Participant's spouse cannot be located, or (C) one of the conditions
prescribed in Treasury regulations is satisfied.
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(2) Spouse Affected by Election. An election
meeting the requirements of Section 5.3(d)(1) shall be effective only:
(i) if a spouse consented to such
election and such consent met the requirements of Section 5.3(d)(1)(i),
with respect to such spouse; or
(ii) if the Participant was married at
the time of the election, but the Participant's spouse at such time did
not consent to the election because the requirements of Section
5.3(d)(1)(ii) were satisfied, with respect to such spouse.
(3) Revocation of Election. A Participant may
revoke an election made under this Section 5.3(d) at any time prior to
the Annuity Starting Date. A spouse's consent to the waiver of the
Qualified Joint and Survivor (Husband and Wife) Benefit and to the
specific Beneficiary and optional form designations made by the
Participant is irrevocable unless the Participant revokes his or her
waiver election.
(e) Notice Requirements. Within 90 days prior to the
Participant's Annuity Starting Date, the Committee shall provide the
Participant with a written explanation of:
(1) the terms and conditions of the Normal Form
and the Qualified Joint and Survivor (Husband and Wife) Benefit;
(2) the Participant's right to make, and the
effect of, an election to waive the Normal Form or the Qualified Joint
and Survivor (Husband and Wife) Benefit;
(3) the requirement that the Participant's
spouse consent in writing to the election in accordance with the
spousal consent provisions set forth in Section 5.3(d)(1) to the waiver
of the Qualified Joint and Survivor (Husband and Wife) Benefit; and
(4) the right to make, and the effect of, a
revocation of an election not to receive the Normal Form or a Qualified
Joint and Survivor (Husband and Wife) Benefit.
(f) Optional Forms of Benefit.
(1) Actuarial Equivalent. Each benefit payment
form described in this Section 5.3(f) will be the Actuarial Equivalent
of the Participant's benefit payable in the Normal Form.
(2) Joint and Survivor Annuity. Under the Joint
and Survivor Annuity, a reduced monthly benefit shall be paid to the
Participant for his or her lifetime, and his or her beneficiary, if
such beneficiary survives at the Participant's death, shall be entitled
to receive thereafter a lifetime survivorship benefit in a monthly
amount equal to 50% or 100%, as selected by the Participant, of the
monthly amount which had been payable to the Participant. The last
payment of the Joint and Survivor Annuity shall be made as of the first
day of the month in which the death of the last to die of the
Participant and his or her
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beneficiary has occurred. This optional form shall be available to any
Participant whose Annuity Starting Date is on or after January 1, 2001
without regard to whether such Participant has an Hour of Service on or
after such date.
Notwithstanding the foregoing, a
Participant may not select a Joint and Survivor Benefit with a
beneficiary who would not be eligible to receive the percentage
survivor benefit selected under the requirements of proposed Treasury
Regulation Section 1.401(a)(9)-2.
(3) Single Life Annuity with 120 Month
Guarantee. Under the Single Life Annuity with 120 Month Guarantee, a
reduced monthly benefit shall be paid to the Participant for his or her
lifetime, with a guarantee of 120 monthly payments. If the Participant
dies after the Annuity Starting Date but before receiving 120 monthly
payments, the monthly payments shall be paid to the Participant's
beneficiary, designated in accordance with Section 5.9, until the
Participant and his or her beneficiary have received a total of 120
monthly payments.
(4) Single Life Annuity. Under the Single Life
Annuity, a monthly benefit shall be paid to the Participant for his or
her lifetime. The last payment of the Single Life Annuity shall be made
as of the first day of the month in which the death of the Participant
occurs.
(g) 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, Deferred Vested Benefit or Postponed
Retirement Benefit does not exceed $3,500, for Participants who
terminate employment with all Employer Companies and Related Employers
before January 1, 2000, or $5,000, for Participants who terminate
employment with all Employer Companies and Related Employers 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 such nonvested Participant is reemployed, his
or her Benefit Service shall be restored in accordance with the rules
set forth at paragraph 1.1(l)(2).
(h) Repayment of Cash-Out. After a distribution described
in subsection 5.3(g), the Participant's service with respect to which
the distribution was made shall be disregarded for purposes of the Plan
unless, following reemployment, the Participant repays the amount of
the distribution to the Trustee together with interest at the rate of
120 percent of the Federal mid-term rate, as in effect under Code
Section 1274 for the first month of the Plan Year in which the
restoration occurs or otherwise in accordance with Code Section
411(a)(7). Such repayment must be made within five years of the
Participant's resumption of employment.
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(i) Special Transitional Rules for Certain Participants
in Pay Status. In the case of a Participant with at least one Hour of
Service as an Employee on or after January 1, 1992 and whose Annuity
Starting Date is in 1992, the monthly amount of the Participant's
Normal or Early Retirement Benefit, or Deferred Vested Benefit shall,
if calculated in accordance with the terms of this Plan prior to the
adoption of Amendment No. 15, be adjusted, retroactive to the
Participant's Annuity Stating Date, to reflect his or her greater
benefit, if any, determined in accordance with the terms of this Plan
as amended by Amendment No. 15. Such increase shall be calculated based
on the same payment form as selected by the Participant.
12. Section 5.5(c) is hereby amended effective as of January 1, 2001 to
read as follows:
(c) Notwithstanding the foregoing, if a Participant (with
at least one Hour of Service as an Employee on or after January 1,
1992) dies before attaining his or her Early Retirement Date while
actively employed by an Employer Company after having earned at least
25 Years of Service, the Qualified Joint and Survivor (Husband and
Wife) Benefit used as the basis for calculating the amount of the
Preretirement Survivor Benefit shall be determined by using the early
commencement reduction factors that would have been applicable to such
Participant with respect to Early Retirement Benefits had he or she
survived to his or her Early Retirement Date.
13. Section 5.7(b)(1)(A) is hereby amended effective as of January 1, 2001
to read as follows:
(A) If the benefit is payable in any form other
than a straight life annuity, Qualified Joint and Survivor (Husband and
Wife) Benefit, or a joint and survivor annuity with the spouse as the
beneficiary, then the limitations of this Section 5.7(b)(1) shall be
applied to the straight life annuity which is the equivalent of such
benefit.
14. Section 5.7 is hereby amended to add a new Section 5.7(d) effective as
of January 1, 2000 to read as follows:
(d) Repeal of Code Section 415(e). Notwithstanding the
foregoing, Section 5.7(b)(2), (3), (4) and (10)(B) shall not apply to
any Participant whose Annuity Starting Date is on or after January 1,
2000 to the extent that such sections address the combined plan limits
of Code Section 415(e) prior to its repeal.
15. Section 12.10 is hereby amended effective as of January 1, 2001 to read
as follows:
Section 12.10 Participant Contributions.
(a) The Committee may, from time to time, require Retired
Participants and Covered Dependents to pay a portion of the cost of
Medical Benefits as an annual contribution (a "Participant
Contribution"), and shall in such event establish objective procedures
for determining the amount and payment of Participant Contributions.
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(b) Effective for individuals who first become Retired
Participants on or after January 1, 1993, and their Covered Dependents,
an annual Participant Contribution shall be required in an amount equal
to:
(1) the projected per-capita cost of providing
Medical Benefits for Retired Participants and/or Covered Dependents, or
specified classes thereof, for the Plan Year, as determined by the
Committee in accordance with such reasonable nondiscriminatory
procedures as it shall adopt from time to time; over
(2) the Retired Participant's Defined Dollar
Benefit ("DDB") balance, as described in subsection (c) or (d) below.
(c) (1) Subject to the rules of this Section
12.10(c), a Retired Participant will earn a DDB amount for each Year of
Service with an Employer Company which will be applied to purchase
Medical Benefits before the Retired Participant or his or her Covered
Dependents become eligible for Medicare ("Pre-Medicare Eligible
Coverage") and after the Retired Participant or his or her Covered
Dependents become eligible for Medicare ("Medicare Eligible Coverage").
The DDB amount earned for each Year of Service with an Employer Company
will be accumulated over the period that the Retired Participant is
employed with an Employer Company as a DDB balance (the "Pre-Medicare
Eligible Coverage DDB Balance" and "Medicare Eligible Coverage DDB
Balance," collectively, the "DDB Balance").
(2) A Retired Participant's DDB amount for any
Year of Service after December 31, 2000 with an Employer Company will
be equal to the DDB amount for the Employer Company for which the
Retired Participant performed service during that Plan Year as set
forth in Appendix F. If a Retired Participant performs service under
more than one schedule in any Plan Year, the Retired Participant shall
receive credit for his or her Year of Service, if any, completed in
that Plan Year under the schedule with the highest DDB amount under
which he or she has at least one Hour of Service. The DDB amount for
each Year of Service with an Employer Company completed prior
January 1, 2001 shall be equal to $250 for Pre-Medicare Eligible
Coverage and $42 for Medicare Eligible Coverage. However, no DDB amount
shall be earned for Years of Service with an Employer Company that
first becomes an Employer Company on or after January 1, 2001 before
that Employer Company first began to offer Medical Benefits under this
Plan. Except as provided Section 12.10(d)(2), in no event shall the
Pre-Medicare Eligible Coverage DDB Balance exceed $7500 or the Medicare
Eligible Coverage DDB Balance exceed $1260.
(3) The Retired Participant and his or her
spouse each may apply the DDB Balance to purchase Medical Benefits. If
the Retired Participant has Covered Dependents who are children, they
will be treated as a unit with the younger of the Retired Participant
and his or her spouse. If the Retired Participant does not have a
spouse, the Covered Dependents who are children will be treated as a
separate unit and the Retired Participant and his or her Covered
Dependent unit each may apply the DDB Balance to
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purchase Pre-Medicare Eligible Coverage or Medicare Eligible Coverage.
Any unused DDB Balance may not be carried forward from one Plan Year to
a future Plan Year.
(4) The Pre-Medicare Eligible Coverage DDB Balance is
applied to the Participant Contribution for each Plan Year (or portion
thereof) prior to the calendar month in which the Retired Participant
or his or her spouse, as applicable, becomes eligible for Medicare. The
Medicare Eligible Coverage DDB Balance is applied to the Participant
Contribution for each Plan Year (or portion thereof) from the first day
of the calendar month in which the Retired Participant or his or her
spouse, as applicable, becomes eligible for Medicare. The DDB Balance
of a Covered Dependent who is not a spouse will be adjusted to the
Medicare Eligible Coverage DDB Balance as of the first day of the
calendar month in which the younger parent first becomes eligible for
Medicare or if there is no spouse, as of the first day of the calendar
month in which the Retired Participant first becomes eligible for
Medicare.
(d) The DDB Balance credited to a Retired Participant is
determined as follows:
(1) For a Retired Participant who did not
complete at least one Year of Service with an Employer Company prior to
1993, the DDB Balance is the sum of the DDB amounts for each of the
Retired Participant's Years of Service with an Employer Company as
determined under Section 12.10(c)(2).
(2) For each Retired Participant who completed
at least one Year of Service with an Employer Company prior to 1993,
the DDB Balance is calculated as follows:
(i) The sum of the DDB amounts for each
of his or her Years of Service with an Employer Company as determined
under Section 12.10(c) subject to the maximum DDB balance thereunder
plus
(ii) Two times the DDB amount for each
of his or her Years of Service with an Employer Company completed prior
to January 1, 1993 (up to a maximum of $15,000 for Pre-Medicare
Eligible Coverage and $2520 for Medicare Eligible Coverage).
(3) As a minimum, each Retired Participant
described in Section 12.10(d)(2) shall be credited with a minimum DDB
Balance in accordance with the following table:
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Age at Retirement from Minimum DDB Amount
Employment with the ------------------
Employer Company Pre-Medicare Eligible Medicare Eligible
Coverage Coverage
65 or older $7500 $1260
64 $7250 $1218
63 $7000 $1176
62 $6750 $1134
61 $6500 $1092
60 $6250 $1050
59 $6000 $1008
58 $5750 $ 966
57 $5500 $ 924
56 $5250 $ 882
55 $5000 $ 840
16. Section 4.3 is hereby amended effective as of January 1, 2001 to
substitute "5.2(c)" where "5.2(b)" appears in the text.
17. Section 5.4 is hereby amended effective as of January 1, 2001 to
substitute "Article V" where "Section 5.2," "Section 5.3" and "Section
5.5" appear in the text.
18. Section 5.8(b)(1)(A) is hereby amended effective as of January 1, 1997
to substitute "35 years" where "30 years" appears in the text.
19. Section 6.1 is hereby amended effective as of January 1, 2001 to
substitute "5.2(b)" where "5.2(a)" appears in the text.
20. Article XIII is hereby amended effective as of January 1, 2001 to
substitute "5.2(c)(2)(iii)(D) and (E)" where "5.2(b)(3)" appears in the
text; to substitute "Article V" in every other place where "5.2" and
"5.3" appear in the text; and to substitute "1.1(v)(3)" where "1.1(v)"
appears in the text.
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IN WITNESS WHEREOF, the undersigned certify that United Parcel Service
of America, Inc., based upon action by its Board of Directors on December ___,
2000, has caused this Amendment No. 25 to be adopted.
ATTEST: UNITED PARCEL SERVICE
OF AMERICA, INC.
- ----------------------------------- ----------------------------------
Joseph R. Moderow James P. Kelly
Secretary Chairman
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APPENDIX F-1
RPA POINTS AND DDB AMOUNTS
This Appendix F-1 shall apply to each Participant and each Retired
Participant (as defined in Article XII) who is employed by one or more of the
Employer Companies listed below as provided in the Plan.
EMPLOYER COMPANIES
The Employer Companies subject to this Appendix F-1 are as follows:
UNITED PARCEL SERVICE
NAME OF EMPLOYER COMPANY
Trailer Conditioners, Inc.
United Parcel Service Co.
United Parcel Service General Services Co.
UPS Aviation Services, Inc.
UPS International General Services Co.
UPS Procurement Services Corporation
UPS Worldwide Forwarding, Inc.
United Parcel Service, Inc. (Ohio)
BT Realty Holdings, Inc.
United Parcel Service, Inc. (NY)
BT Realty Holdings II, Inc.
UPS Latin America, Inc.
RPA POINTS
ALTERNATIVE POINTS: 20 per year of Benefit Service
ALTERNATIVE-PLUS POINTS: 5 per year of Benefit Service
INTEGRATED POINTS: 12 per year of Benefit Service
INTEGRATED-PLUS POINTS: 4 per year of Benefit Service
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ANNUAL DDB AMOUNT PER
YEAR OF SERVICE*
PRE-MEDICARE $250 per Year
ELIGIBLE COVERAGE
MEDICARE ELIGIBLE $42 per Year
COVERAGE
- ---------------
* Year of Service means a Year of Service with an Appendix F-1 Employer
Company while it was an Appendix F-1 Employer Company.
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APPENDIX F-2
RPA POINTS AND DDB AMOUNTS
This Appendix F-2 shall apply to each Participant and each Retired
Participant (as defined in Article XII) who is employed by one or more of the
Employer Companies listed below as provided in the Plan.
EMPLOYER COMPANIES
The Employer Companies subject to this Appendix F-2 are as follows:
UPS CAPITAL CORPORATION EFFECTIVE DATE
OF
NAME OF EMPLOYER COMPANY RPA SCHEDULE
UPS Capital Corporation January 1, 2001
Glenlake Insurance Agency, Inc. January 1, 2001
Glenlake Insurance Agency, Inc. of California January 1, 2001
RPA POINTS
ALTERNATIVE POINTS: 5 per year of Benefit Service
ALTERNATIVE-PLUS POINTS: 4 per year of Benefit Service
INTEGRATED POINTS: 4 per year of Benefit Service
INTEGRATED-PLUS POINTS: 4 per year of Benefit Service
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ANNUAL DDB AMOUNT PER
YEAR OF SERVICE*
PRE-MEDICARE
ELIGIBLE COVERAGE $0
MEDICARE
ELIGIBLE COVERAGE $0
- ---------------
* Year of Service means a Year of Service with an Appendix F-2 Employer
Company while it was an Appendix F-2 Employer Company.
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APPENDIX F-3
RPA POINTS AND DDB AMOUNTS
This Appendix F-3 shall apply to each Participant and each Retired
Participant (as defined in Article XII) who is employed by one or more of the
Employer Companies listed below as provided in the Plan.
EMPLOYER COMPANIES
The Employer Companies subject to this Appendix F-3 are as follows:
UPS LOGISTICS GROUP EFFECTIVE DATE
OF
NAME OF EMPLOYER COMPANY RPA SCHEDULE
Pax Logistics International, Ltd. January 1, 2001
UPS Logistics Technologies, Inc. (f/k/a Roadnet) January 1, 2001
UPS Supply Chain Management, Inc. (f/k/a UPS World Wide January 1, 2001
Logistics)
Diversified Trimodal, Inc. (d/b/a Martrac) January 1, 2001
Worldwide Dedicated Services, Inc. January 1, 2001
RPA POINTS
ALTERNATIVE POINTS: 5 per year of Benefit Service
ALTERNATIVE-PLUS POINTS: 4 per year of Benefit Service
INTEGRATED POINTS: 4 per year of Benefit Service
INTEGRATED-PLUS POINTS: 4 per year of Benefit Service
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ANNUAL DDB AMOUNT PER
YEAR OF SERVICE*
PRE-MEDICARE
ELIGIBLE COVERAGE $0
MEDICARE
ELIGIBLE COVERAGE $0
- --------------
* Year of Service means a Year of Service with an Appendix F-3 Employer
Company while it was an Appendix F-3 Employer Company.
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APPENDIX F-4
RPA POINTS AND DDB AMOUNTS
This Appendix F-4 shall apply to each Participant and each Retired
Participant (as defined in Article XII) who is employed by one or more of the
Employer Companies listed below as provided in the Plan.
EMPLOYER COMPANIES
The Employer Companies subject to this Appendix F-4 are as follows:
NAME OF EMPLOYER COMPANY EFFECTIVE DATE
OF
RPA SCHEDULE
UPS Aviation Technologies, Inc. (f/k/a II Morrow) January 1, 2001
RPA POINTS
ALTERNATIVE POINTS: 5 per year of Benefit Service
ALTERNATIVE-PLUS POINTS: 4 per year of Benefit Service
INTEGRATED POINTS: 4 per year of Benefit Service
INTEGRATED-PLUS POINTS: 4 per year of Benefit Service
ANNUAL DDB AMOUNT PER
YEAR OF SERVICE*
PRE-MEDICARE
ELIGIBLE COVERAGE $0
MEDICARE
ELIGIBLE COVERAGE $0
- ---------------
* Year of Service means a Year of Service with an Appendix F-4 Employer
Company while it was an Appendix F-4 Employer Company.
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APPENDIX F-5
RPA POINTS AND DDB AMOUNTS
This Appendix F-5 shall apply to each Participant and each Retired
Participant (as defined in Article XII) who is employed by one or more of the
Employer Companies listed below as provided in the Plan.
EMPLOYER COMPANIES
The Employer Companies subject to this Appendix F-5 are as follows:
NAME OF EMPLOYER COMPANY EFFECTIVE DATE
OF
RPA SCHEDULE
UPS Customshouse Brokerage January 1, 2001
RPA POINTS
ALTERNATIVE POINTS: 5 per year of Benefit Service
ALTERNATIVE-PLUS POINTS: 4 per year of Benefit Service
INTEGRATED POINTS: 4 per year of Benefit Service
INTEGRATED-PLUS POINTS: 4 per year of Benefit Service
ANNUAL DDB AMOUNT PER
YEAR OF SERVICE*
PRE-MEDICARE
ELIGIBLE COVERAGE $0
MEDICARE
ELIGIBLE COVERAGE $0
- ---------------
* Year of Service means a Year of Service with an Appendix F-5 Employer
Company while it was an Appendix F-5 Employer Company.
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APPENDIX G
EMPLOYER COMPANIES
COMPANY NAME EFFECTIVE DATE OF PARTICIPATION
Trailer Conditioners, Inc. March 22, 1982
United Parcel Service Co. September 1, 1961
United Parcel Service General Services Co. September 1, 1961
UPS Aviation Services, Inc. February 7, 1989
UPS International General Services Co. August 12, 1998
UPS Procurement Services Corporation September 9, 1997
UPS Worldwide Forwarding, Inc. August 12, 1988
United Parcel Service, Inc. (Ohio) September 1, 1961
BT Realty Holdings, Inc. May 12, 1999
United Parcel Service, Inc. (NY) September 1, 1961
BT Realty Holdings II, Inc. May 18, 1999
UPS Latin America, Inc. November 12, 1993
UPS Capital Corporation May 28, 1998
Glenlake Insurance Agency, Inc. July 29, 1998
Glenlake Insurance Agency, Inc. of California August 10, 1999
Pax Logistics International, Ltd. May 18, 1998
UPS Logistics Technologies, Inc. (f/k/a Roadnet) May 12, 1986
UPS Supply Chain Management, Inc. (f/k/a UPS World
Wide Logistics) December 18, 1992
Diversified Trimodal, Inc. (b/d/a Martrac) January 1, 1980
Worldwide Dedicated Services, Inc. June 9, 1995
UPS Customshouse Brokerage April 1, 1985