PREAMBLE
This Agreement is entered into this 1st day of February, 1996 by and between
Heim Bearing division, Roller Bearing Company, hereinafter called the COMPANY,
AND THE INTERNATIONAL UNION, UNITED AUTOMOBILE, AEROSPACE AND AGRICULTURAL
IMPLEMENT WORKERS OF AMERICA, U.A.W., AND AMALGAMATED LOCAL 376, UAW, the
certified bargaining representative of all employees in the appropriate unit, a
signatory party hereto, hereinafter referred to as the UNION.
ASSIGNABILITY
This Agreement shall be binding upon the Successors and Assignees of the parties
hereto, and no provisions, terms, or obligations herein contained shall be
affected, modified, altered or changed in any respect whatsoever by any change
in the regular status, ownership or management of either party herein, provided
the plant and facilities of the Company remain within the State of Connecticut.
In the event the present owners sell or assign the plant, or sell their interest
in the business, the present owners agree to make this Agreement a condition of
such sale or assignment, provided such sale or assignment contemplates that the
plant and facilities of the Company will remain within the State of Connecticut,
and the present owners shall be relieved of any personal liability whatsoever
under the Agreement thereafter.
ARTICLE A
EMPLOYEES COVERED BY THIS
AGREEMENT
Section 1. The Company recognizes the Union as the sole and exclusive bargaining
agency of the following employees: all production and maintenance employees,
including stockroom employees and tool clerks, also shipping and receiving
clerks, excluding, however, engineering and clerical employees and supervisory
employees as defined in the Labor-Management Relations Act of 1947, and any
amendments thereto.
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ARTICLE B
RECOGNITION
Section 1. The Union represents that it has been authorized by a majority of the
Company's employees in a unit appropriate for such purposes, as the
representative designated or selected for the purpose of collective bargaining
in respect to rates of pay, wages, hours of employment, or other conditions of
employment.
ARTICLE C
UNION SECURITY
Section 1. All present employees within the Bargaining Unit on the effective
date of this Agreement shall, within thirty days thereafter, as a condition of
employment, become and/or remain members of the Union in good standing to the
extent of paying membership dues and initiation fees.
Section 2. Employees in the Bargaining Unit who have not on the effective date
of this Agreement completed thirty days of employment with the Company shall, as
a condition of employment, within thirty days after the effective date of this
Agreement or at the expiration of thirty days of employment, whichever period is
longer, become and remain members of the Union in good standing to the extent of
paying membership dues and initiation fees.
Section 3. All new employees hired during the life of this Agreement shall, as a
condition of employment, within thirty days after date of hire or thirty days
after the signing of this Agreement, whichever period is longer, become and
remain members of the Union in good standing to the extent of paying membership
dues and initiation fees.
Section 4. The Company will give to each present employee a printed copy of this
Agreement.
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Section 5. The Company will give a printed copy of this Agreement, together with
an authorization form for check-off of dues to all new hires.
ARTICLE D
CHECK-OFF
Section 1. The Company shall deduct, for employees covered by this Agreement who
are members of the Union, their Union membership dues and initiation fees levied
against all Union members in accordance with the Constitution and Bylaws of the
Union and promptly remit the same, together with a list of employees for whom
deductions were made, to the Financial Secretary of the Union who is authorized
to receive said payments, provided that the Company has received from such
employees individual and voluntary signed authorizations. Authorization cards
shall be in the following form:
AUTHORIZATION FOR CHECK-OFF OF DUES
To Heim Bearing Division, Imo Industries Inc.
Date _______________
I hereby assign to Local Union No. 376, International Union, United
Automobile Aerospace and Agricultural Implement Workers of America (UAW), from
any wages earned or to be earned by me as your employee (in my present or in any
future employment by you), such sums as the Financial Officer of said Local
Union No. 376 may certify as due and owing from me as membership dues, including
an initiation or reinstatement fee and monthly dues in such sum as may be
established from time to time as union dues in accordance with the Constitution
of the International Union, UAW. I authorize and direct you to deduct such
amounts from my pay and to remit same to the Union at such times and in such
manner as may be agreed upon between you and the Union at any time while this
authorization is in effect.
This assignment, authorization and direction shall be irrevocable for the
period
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of one (1) year from the date of delivery hereof to you, or until the
termination of the collective agreement between the Company and the Union which
is in force at the time of delivery of this authorization, whichever occurs
sooner; and I agree and direct that this assignment, authorization and direction
shall be automatically renewed and shall be irrevocable for successive periods
of one (1) year each or for the period of each succeeding applicable collective
agreement between the Company and the Union, whichever shall be shorter, unless
written notice is given by me to the Company and the Union, not more than twenty
(20) days and not less than ten (10) days prior to the expiration of each period
of one (1) year, or of each applicable collective agreement between the Company
and the Union whichever occurs sooner.
This authorization is made pursuant to the provisions of Section 392(c) of
the Labor Management Relations Act of 1947 and otherwise.
- --------------------------------------------------------------------------------
(Signature of Employee here)
- --------------------------------------------------------------------------------
(Type or print name of Employee here)
- --------------------------------------------------------------------------------
(Date of Sign.) (Emp. Clock No.)
- --------------------------------------------------------------------------------
(Address of Employee)
- --------------------------------------------------------------------------------
(City) (State) (Zip)
- --------------------------------------------------------------------------------
(Soc. Sec. No.) (Date of Del. to
Employer)
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Section 2. All deductions covered by this Agreement shall be made in a manner
agreed upon with the Union, except that dues and initiation fees will be on a
monthly basis. However, local practices, relative to number of hours per month
to be worked before dues deductions shall be made, shall be in accord with the
Constitution of the International Union. If in any month full dues are not
deducted, the Company and the Union may agree upon an orderly manner of
collection in the succeeding month or months.
Section 3. All sums deducted under the Agreement shall be remitted to the
Financial Secretary of the local Union, prior to the first of the month
following the deduction and the Company will furnish the Financial Secretary of
the local Union, monthly, a record of those for whom deductions have been made,
together with the amount of such deductions and also a record of all
terminations and employees absent during the week of the check-off.
ARTICLE 1
HOURS AND OVERTIME
Section 1. The normal work week shall be:
(a) Forty (40) hours, based on eight (8) hours per day, five (5) days per
week, Monday through Friday inclusive.
(b) The normal work week shall begin on Sunday night at 11:00p.m. with the
start of the third (3rd) shift and end 168 hours later.
(c) The first and second shifts shall start on a Monday as per schedule (d)
below and end 168 hours later.
(d) The work day shall be the 24 hour period beginning with the employees
regular scheduled shift starting time.
(1) First shift hours 7:00a.m. to 3:30 p.m.
(2) Second shift hours 3:30p.m. to midnight.
(3) Third shift hours 11:00p.m to 7:00 a.m.
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(a) Third shift employees will be entitled to a paid 20 minute lunch.
(b) Friday will be the third shift's "Saturday" for overtime pay
calculation purposes.
(c) Saturday will be the third shift's "Sunday" for overtime pay
calculation purposes.
(d) Third shift employees will not be required to work overtime prior to
the start of the shift on Sunday night.
(4) First and second shift employees presently working twelve (12) hour
shifts will revert to schedules (d)1 and (d)2 respectively in the
event that the twelve (12) hour shifts are discontinued for any
reason.
Section 2. Time and one-half shall be paid for all work performed.
(a) In excess of eight (8) hours in any one day.
(b) In excess of forty (40) hours in any one week.
(c) On Saturdays as such.
(d) Any employee called in to work outside of the regularly scheduled shift
hours shall be paid not less than four (4) hours at his/her base rate as
follows:
(1) Time actually worked at prevailing rate, plus
(2) The remaining of the four (4) hours not worked at straight time pay
unless it is a premium day and the premium rate shall prevail.
(e) Double time will be paid for all work performed on Sundays.
Section 3. Notification of Overtime
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(a) Employees shall not be required to work overtime when insufficient notice
is given. Notification at any time prior to the close of the prior day's
shift will be considered sufficient notice for daily overtime.
(b) Employees will be charged for all overtime hours where proper notification
has been given, whether the employee works or not.
(c) Employees shall not be required to work Saturday or Sunday overtime when
insufficient notice is given or when there is a reasonable excuse for not
working. Notice of Saturday or Sunday overtime must be given to the
employee no later than the end of the shift on the preceding Thursday.
Section 4.
(a) Overtime will be equally distributed among those employees within the
departments by classification provided they have the ability to perform
the available overtime work.
(b) Overtime records shall be openly displayed on the Foreperson's desk in
each department for the employees to inspect at any time. All records will
be updated accordingly.
(c) Employees with the lowest overtime hours will be asked to work first
within their department by job classification.
(d) Employees working overtime outside their departments shall be charged for
actual hours worked back to their department for overtime equalization.
(e) The Company shall keep a record of overtime worked and overtime refused by
employees and shall furnish the Union with a copy of such record at the
end of each month. If the difference in overtime hours worked between the
employee with the greatest number of overtime hours and the other
employees in the same work classification shall exceed ten (10) hours at
the end of every three (3) month period, such difference shall be paid at
time and one-half the other
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employee's regular hourly rate, except when such difference results from
the other employee's refusal to work in accordance with this article.
Section 5. Overtime hours available will be recorded according to the following:
(a) Overtime hours offered and refused will be considered hours worked for the
purpose of equalizing overtime.
(b) Employees absent for any reason will be charged for all overtime hours
they would have been offered had they been at work.
Section 6. There shall be no duplication of compensation for overtime for the
same hours worked by an employee by reason of daily, weekly or other
overtime provisions of any kind.
ARTICLE 2
HOLIDAYS
Section 1.
(a) Except as hereinafter provided, all work done on the holidays set forth
below shall be paid for at the rate of double time plus holiday pay. The
specified holidays shall also be considered as days worked for the purpose
of computing overtime pay only.
M.L. King Day Labor Day
Good Friday Thanksgiving Day
Memorial Day Friday after Thanksgiving
Independence Day
*Friday after Independence Day in 1996 only
The Company proposes to continue to provide the following Christmas and New
Year's Holidays with pay per the following schedule:
1996 Dec. 24 25 26 30 31 Jan. 1, 1997
1997 Dec. 24 25 26 30 31 Jan. 1, 1998
1998 Dec. 24 25 29 30 31 Jan. 1, 1999
*Employee Birthday is included in the Christmas shut down period in each
year.
(b) It is understood between the parties that an employee who is off work
receiving sick
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and accident benefits during a week in which a holiday falls will be paid
such holiday pay in addition to S&A benefits. Similarly, employees
receiving Workers' Compensation will receive holiday pay for a period not
to exceed the agreed upon time limits for S&A coverage.
Section 2. When a holiday falls on a Saturday, it shall be celebrated on the
preceding Friday. When a holiday falls on a Sunday, such holiday shall be
celebrated on the following Monday, excluding Christmas and New Year's week.
Section 3. The holidays mentioned above shall be with pay. Consequently, all
employees shall receive an amount equal to eight (8) hours pay at their hourly
rate for the specified holiday even though no work is performed. In order to be
eligible for holiday pay, the employees must:
(a) Have been in attendance on the work days preceding and following the
holiday unless the absence is for:
(1) Death in the immediate family as defined in Article 9.
(2) Jury Duty.
(3) Important Union business on the part of Stewards, Shop
Committeepersons, Officers or Appointees made known to and approved
by the Company prior to such holidays.
(4) An employee who is laid off and again recalled within thirty (30)
days, during which period a paid holiday falls, shall receive
holiday pay for that holiday.
(5) For other reasonable cause.
(b) Employees on twelve (12) hour shifts will revert to their normal eight (8)
hour shifts and will not be required to work overtime on the day prior to
Good Friday, Thanksgiving and Independence Day.
Section 4. When a holiday falls within a scheduled vacation period, another day
off be-
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between Monday and Friday will be granted for that vacation day not taken or
paid for during the vacation period.
Section 5. Employees on leave of absence shall not be entitled to any holiday
pay during such leave.
ARTICLE 3
WAGES AND RATES OF PAY
Section 1.
(a) Effective February 1, 1996, a general wage increase of 4.0%
Effective February 1, 1997, a general wage increase of 3 0%
Effective February 1, 1998, a general wage increase of 3.0%
The hourly rates of pay shown in Appendix A, and Appendix B attached
hereto and made a part hereof, shall remain in effect for the life of this
Agreement.
(b) It is agreed that during the period of this Agreement, each employee
covered by this Agreement, each employee covered by this Agreement, shall
receive a guaranteed cost of living allowance which will be added to the
employee's straight time hourly earnings as set forth in Appendix A of the
Agreement. The guaranteed cost of living increases will be as follows:
August 5, 1996 10 cents
August 4, 1997 5 cents
August 3, 1998 5 cents
(c) Should the effective date of the increases mentioned above fall on a
Monday, Tuesday or Wednesday, the increase specified shall revert to
Monday. Should the increases specified above fall on a Thursday or Friday,
the increases shall become effective on the following Monday.
Section 2. Any employees required to work on a shift other than the day shift
will be paid a
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shift premium equal to 10% of their hourly rate in addition to their regular
earnings for such hours worked.
Section 3.
(a) The Company and the Union have negotiated job descriptions and evaluations
by Labor Grade. Such descriptions and evaluations are a part of this
Agreement.
(b) Newly hired employees will start at the hire rate unless their training,
knowledge or experience justify hiring at a higher rate. They will
progress to the maximum rate by receiving a twenty (20) cent per hour
increase after each sixty (60) days worked, payable starting on the
nearest Monday. It is recognized that the last raise may be less than
twenty (20) cents per hour.
Employees, still in progression, who are successful bidders on another job
in a higher labor grade will receive a twenty (20) cent per hour increase
when they start the new job and then will progress in twenty (20) cent
increments after each sixty (60) days worked until they reach the maximum.
Rate changes will be made on the nearest Monday. The last raise may be
less than twenty (20) cents.
(c) Employees who are promoted from the maximum rate of one job to a higher
paying job will receive the maximum rate of the higher job on the date of
promotion.
(d) Employees who are at maximum and have been transferred to a higher rated
job and are later transferred back to a lower rated job will receive the
maximum of the lower rated job.
(e) Employees who have not progressed to the maximum and who move from a
higher rated job to a lower rated job will go down to a rate in the lower
grade that is equivalent to the progression point that they were in the
higher rated job.
(f) All employees currently in Labor Grade 1
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will be promoted to Labor Grade 2.
ARTICLE 4
VACATIONS
Section 1. Effective February 1, 1996, the continuous service requirements and
earned vacation with pay at straight time as detailed in the following vacation
schedule table shall apply. The service requirement will be based upon seniority
as of August 1st of the vacation year.
Service Requirement Earned Vacation
1 yr but less than 2 yrs 1wk (40 hrs)
2 yrs but less than 5 yrs 2wks (80 hrs)
5 yrs but less than 10 yrs 2-1/2 wks (100 hrs)
10yrs but less than 15 yrs 3wks (120 hrs)
15yrs but less than 20 yrs 3-1/2wks (140 hrs)
20 yrs but less than 25 yrs 4wks (160 hrs)
25 years and over 5wks (200 hrs)
Section 2. The vacation shutdown period shall be designated by the Company but
notice thereof shall be given to the Union not later than six (6) months prior
to the start of the vacation shutdown period.
The vacation shutdown period shall be any two consecutive weeks falling within
the following time periods. The Company may choose not to have a vacation
shutdown.
1996 July 15 thru August 9
1997 July 21 thru August 15
1998 July 20 thru August 18
Section 3. Employees entitled to at least two (2) weeks of vacation must take
the same during the plant shutdown. Employees entitled to more than two (2)
weeks of vacation may take same at a time of their choice but seniority and
Company production schedules shall be taken into consideration.
Section 4. Employees must have worked a minimum of 1000 hours in order to
qualify for full vacation pay as provided in Section 1 above. Employees working
less than 1000 hours shall be paid on a pro-rated basis. The period for
determining hours worked shall be from August 1 of the prior year through July
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31 of the current year. Employees terminated for any reason shall receive a
pro-rated vacation pay. Absence due to sickness or injury shall be counted as
hours worked.
Section 5. The Company agrees to provide a vacation bonus of $100 to all
employees with 20 years of service. The Company agrees to provide a vacation
bonus of $200 to all employees with 25 years service or more.
Section 6. Those employees who are entitled to and wish to schedule additional
time off during the vacation year should notify their supervisors in writing by
March 15. Permission will be granted based upon Company seniority and Company
production schedules and specific written responses will be made by April 1.
Section 7. All vacation pay shall be distributed the last period prior to the
shutdown period.
ARTICLE 5
SENIORITY
Section 1. A seniority list including date of birth, hiring date, job
classification, department, labor grade, total points and social security number
shall be maintained and a copy shall be furnished to the Union quarterly.
(a) The Company shall furnish the Union with a monthly report showing the
names and dates of new hires, layoffs, recalls, quits, discharges, leaves
of absence (granted and expired) and adjustments in the seniority listings
with respect to dates. Any errors in the seniortiy lists, layoffs and
recalls that are discovered due to this submission shall be corrected
immediately.
(b) The Shop Chairperson shall be notified promptly of any additions or
deletions.
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Section 2. Employees will lose their seniority status if they:
(a) Quit.
(b) Are discharged for justifiable cause.
(c) Do not report for work within five (5) working days following a
notification by certified letter of restoration after a layoff, except
where a reasonable excuse is provided.
(d) Are absent without a leave of absence or excused absence for three (3)
consecutive working days without notifying the Company, except where
reasonable cause is provided.
(e) Are on layoff in excess of thirty -six (36) months. Probationary employees
who are laid-off will not be listed on the layoff list.
(f) Are absent from work because of a non-occupational disability for a
continuous period in excess of eighteen (18) months.
Section 3. New employees shall be regarded as temporary or probationary
employees for the first thirty (30) working days of their
employment.
Section 4. Employees advanced from hourly status to salary status shall lose
seniority and privileges under this contract thirty (30) calendar
days after such appointment unless returned to the Bargaining Unit
within said period.
Section 5. Employees who are absent from work because of illness or injury will
be returned to their "original" job upon presenting the Company with
a copy of their unconditional medical release to return to work.
If their "orginal" job is no longer available, they will exercise
their contract rights in accordance with Article 8 of this contract.
Jobs that become vacant, because the employee in that job
classification has been absent from work because of injury or
illness for a period
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of more than thirty (30) days and,
In the judgement of the Company, that job needs to be filled it shall be handled
as follows:
1. The Company shall offer recall rights to all eligible employees in
an equal or higher labor grade in accordance with Article 8, Section
1(b) of the contract.
2. If no employee(s) have recall rights as describe in item 1. above,
the Company, at its descretion may post the job as "Temporary" job.
Bids on the "Temporary" job shall be handled in accordance with
Article 6 of the contract.
3. If there are no successful bids on the "Temporary" job, the Company
shall offer recall rights to all eligible employees in a lower labor
grade.
4. If there is a reduction in force in a department where a "Temporary"
job exists, the employee in the "Temporary" job must be returned to
the same status he/she had prior to accepting the "Temporary" job
befor the layoff commences.
5. If the "Temporary" job is not filled after the above three actions
have been taken and, in the judgement of the Company, the job needs
to e filled, the Company may hire "from the street" to fill the job
with the understanding that it is a "Temporary" job. the person
hired from the street to fill the "Temporary" job shall exercise
his/her rights, if any, under Article 8 of the contract when such
"Temporary" job ceases to exist.
6. When it is determined the disabled employee will not or cannot
return to work the opening will be posted in accordance to Article
6.
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ARTICLE 6
JOB POSTING
Section 1. Job openings will be filled based on plantwide seniority and basic
qualifications regardless of shift.
(a) New jobs and vacancies in existing jobs to which no employee has recall
rights will be posted on the plant bulletin board for a period of three
(3) working days. A general description of each job responsibility will be
shown on the posting.
(b) If the same job opening occurs within a period of thirty (30) days from
the first date of an original job posting, no new posting will be
required. The new job opening will be filled from the original bidding
list. If there are no remaining qualified bidders on the original list,
the new job opening shall be posted immediately. However, a new posting
will be required at the end of the original thirty (30) day job posting.
(c) During the posting period, eligible employees may bid on the posted jobs
by completing a Bid Slip and submitting it to their Supervisor. The
Company will notify the Union in writing and state the reason for
withdrawing the posting for any job.
(d) Employees will be eligible to bid on a higher, equal or lower paying job
provided:
(1) They have completed the probationary period.
(2) Those who have bid and been accepted on lower paying jobs under this
procedure must remain in the new department for a period of at least
six (6) months before being eligible to again bid on another job
outside their department. However, these employees may bid upward or
lateral through all labor grades within their department at any
time.
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(e) Following the closing of the posting, bidders will be considered and
interviewed by the Personnel Department for each job opening in order of
seniority; a Shop Committeeperson shall be present. The most senior
employee who has the basic qualifications to perform the required work
will be promoted to the job within a period of thirty (30) calendar days.
Unsuccessful bidders will be notified by the Company in writing. A copy of
the notice of disaward which will include the grounds for disaward will be
given to the Shop Chairperson. Bidders may withdraw their bids at any time
before starting the new job by signing a refusal slip provided by the
Company, a copy of which will be given to the Shop Chairperson.
(f) Job openings in a "Training Program" will also be filled under this
procedure.
(g) Should an employee with basic qualifications grieve the Company's
selection in filling the vacancy, the employee must be shown the basic
requirements of the job and have the assistance of the Leadperson and/or
Supervisor for a five (5) day period in order to prove his/her ability to
meet the basic qualifications.
(h) The Shop Chairperson or an appointee will be notified prior to all
permanent transfers and promotions within the Bargaining Unit.
ARTICLE 7
TEMPORARY TRANSFERS
Section 1. The Union will be notified at the time when temporary transfers
become necessary.
Temporary work assignments:
(a) Employees may be temporarily transferred from one department to another
for a period not to exceed six (6) days per month, and provided that
during the transfer, the job he/she left shall not be filled and he/she
shall be returned to his/her permanent job upon completion of temporary
assignment or for longer periods of time if agreed by the Union and the
Company.
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(b) Employees shall be transferred by seniority, lowest senior person first
within the department to a lower rated job.
(c) Employees shall be transferred by seniority, highest senior person first
within the department to a higher rated job.
(d) No employee will be required to perform work in a higher labor grade on
any basis (temporary or permanent) unless they are paid according to the
prevailing rate of pay on said higher labor grade. No employee will be
forced or coerced into taking a promotion.
(e) No employee will be required to perform work in a lower labor grade on a
temporary basis at the rate of pay in said lower labor grade. That is,
employees will be guaranteed their former (higher) rate of pay while
working on a temporary transfer in a lower labor grade.
(f) The Shop Committeeperson in the area involved in a transfer will receive a
copy of a transfer notice. This transfer notice will state the department,
job title and labor grade to which the employee is being transferred. The
Shop Committeeperson will be notified immediately by a written transfer
notice in any of the following conditions:
A. Any transfer lasting more than one day.
B. Any change in labor grade at any time.
(g) Employees shall have the privilege of exchanging shifts temporarily by
individual arrangement provided they notify their supervisor in advance
and have the necessary qualifications to perform the work. The change must
be effected without additional cost or penalty to the Company. If the
period of such exchange of shifts is in excess of one (1) week, the
Company and the Union must mutually agree to such arrangements.
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Section 2. An Employee with one (1) year of seniority or more shall be
permitted to use this sebniority to exercise shift preference in writing
one week in advance to displace another employee with less seniority in
the ssame job classification and department on another shift. The shift
change option is limited to only one (1) time per year.
ARTICLE 8
LAYOFF RECALLS
Section 1.
(a) All layoffs, recalls, transfers and promotions within the Bargaining Unit
shall be made on the basis of plantwide seniority provided the employee
has the basic qualifications to perform the required work
(b) When it becomes necessary to reduce the work force it shall be done as
followsf by laying off all probationary and part-time employees first.
(c) The Company shall, in the event of layoff, provide notification to
affected employees early enough to furnish at least three (3) working days
notice to the Shop Committee and employees affected by any layoff for any
period of time, or pay such employees hourly base rates in liew of said
notice. this requirement shall not apply to interruption resulting from
any condition beyond the company's control. all layoffs must commence on
the last working day of the week (Friday).
(d) Employees in classifications affected by layoff will have an option to
accept a lay-off slip stating lack-of-work or bump a junior service
employee provided they have the basic qualifications to perform the work.
the initial noticiation mentioned in paragraph (c) will begin the
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bumping process and employees must make their bumping decision
immediately. Upon request by the employee, the bumping decision can be
delayed, but not beyond two (2) hours and then is bound by that choice.
(e) Employees will have five (5) days in which to demonstrate their ability to
perform a job in cases of layoff and recall. Employee must be shown basic
requirements of job and have assistance of Leadperson and/or Foreperson
for five (5) day period.
(f) There shall be no upward bumping.
(g) In the event of a layoff, the Shop Chairperson, the members of the Shop
Committee and Company employees who are Executive Officers of the Local
Union shall be accorded top seniority, but they must have the basic
qualifications to perform the available work.
(h) Recalls shall be in reverse order of layoff. The most senior employee with
basic qualifications on the layoff list will be recalled for available
work. Employees recalled to fill a temporary job vacancy may refuse this
assignment without prejudicing their recall rights.
(i) Employees affected by bumping procedure must return to their original job
when such opening occurs.
ARTICLE 9
LEAVE OF ABSENCE-EMERGENCY TIME OFF
Section 1. When the requirements of the Company will permit, employees upon
written request on account of illness or death in their immediate family or
other reasonable cause approved by the Company, will be granted a leave or
absence without pay for a period of not more than ninety (90) days, which shall
be renewable if production requirements permit. Any such employees on leave who
engaged in other employment, or who fail to report for work on the expiration of
their leave, will be considered as having quit. All such leaves of ab-
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sences shall be granted in writing by the Company.
Section 2. Employees granted a leave of absence must prepay all insurance
premiums prior to their departure for said leave. This prepayment must also be
made in the event the leave is extended by mutual agreement.
Section 3. Any employee who enters the Armed Forces shall be entitled to a leave
of absence, accumulations of seniority and re-employment rights, in accordance
with Federal and State Laws. In addition, an employee who is a member of the
Military Reserve or National Guard shall be granted leave for annual training or
special tour not to exceed three (3) weeks per calendar year. Such employee
during this period shall receive the difference in pay, if any, between their
normal rate of pay and wages paid by the service branch.
Section 4. Seniority will be accumulated during leaves of absences as described
above.
Section 5. Employees may be granted emergency time off of not more than fourteen
(14) calendar days by contacting the Company by telephone or telegram within
three (3) working days giving the reasons for such request. Such time off will
be granted for legitimate emergency reasons. Extensions of emergency time off
may be requested under the provisions of Section 1 of this Article 9.
Section 6. Employees will be granted pregnancy leave of absence and such leaves
will be treated as any other type of medical leave of absence.
ARTICLE 10
CALL-TIME
Section 1.
(a) Employees reporting for work on their regular shift without notice from
the Company that no work will be available for them, shall be offered
other work for at least four (4) hours or shall be paid
22
the base rate of their regular job for four (4) hours if there is no other
work for them. If they refuse the work offered, they shall forfeit the
right to receive reporting pay.
(b) Notice to the employees by the Company will be given not later than the
end of their regular shift.
(c) This Article shall not apply where the lack of work is due to conditions
beyond the control of the Company, or in the case of an employee who has
been absent and has not given the Company adequate notice of return to
work.
ARTICLE 11
COMMITTEEPERSONS, GRIEVANCE AND
ARBITRATION PROCEDURE
Section 1. In addition to the Shop Chairperson, the Union shall have a
Committeeperson for each sixty (60) employees, except that there shall be a
minimum of three (3) Committeepersons on the first shift, two (2) on the second
shift and one (1) on the third shift. The Union will provide the Company with a
current list of the Committeepersons and their departmental responsibilities.
Section 2. Time necessarily spent during the normal working hours (and during
scheduled overtime) by the Shop Chairperson, committeepersons, grievant and
Union employees of the Company on negotiations, grievances or arbitration
hearings will be paid for by the Company. If in the opinion of the Company such
time spent becomes unreasonable, the Company will notify and confer with the
Union.
(a) The Company shall pay the Shop Chairperson for all time spent during the
normal working hours (and during scheduled overtime) on Union business
including the handling and investigation of grievances as set out in this
Agreement, for time spent on arbitration hearings and for negotiations.
Section 3. A grievance is a difference of opinion between the Company and the
Union or an employee involving the interpretation or ap-
23
plication of the terms of this Agreement.
Section 4. Grievances shall be processed as follows:
(a) The grievance must be submitted within fifteen (15) working days after the
employee and the Union are aware of it.
(b) The Shop Chairperson or Committeeperson and employee shall discuss the
grievance with the immediate Supervisor of the department in which the
grievance has occurred. If the immediate Supervisor's oral answer is not
satisfactory, the grievance shall be submitted to Step 1.
(c) Step 1: The grievance shall be reduced to writing and presented to the
employee's immediate Supervisor by the Union within three (3) working days
from the date of the oral answer. The Supervisor shall write the answer on
the grievance form and return three (3) copies to the Union
Committeeperson before the end of the third (3rd) working day after
receipt of the grievance. Failing a satisfactory settlement, the Union
will have three (3) working days in which to appeal to the Supervisor for
referral to Step 2.
(d) Step 2: The Union Shop Chairperson shall meet with the Company
representative designated to handle the second step within three (3) days
from the date of the appeal. The Company will give its written answer
within three (3) working days after the meeting. Failing a satisfactory
settlement, the Union will have three (3) working days in which to appeal
to the Personnel Manager for referral to Step 3.
(e) Step 3: The President of the Local Union and/or the Business Agent and/or
the International Representative, together with the Union Shop Committee
shall take up the grievance with the Committee of Management which shall
include an executive of the Company. This meeting will be scheduled within
seven (7) working days after the
24
date of the appeal. The Company will have five (5) working days following
the date of the meeting in which to make a written disposition of the
grievance. Failing a satisfactory settlement, the Union will have fourteen
(14) days in which to notify the Company in writing of its intent to
arbitrate the issue.
(f) Upon receipt of the Union's notice of their intention to arbitrate, a
prearbitration hearing shall be scheduled within thirty (30) working days.
After the prearbitration hearing, the Company General Manager will have
ten (10) working days to answer. If the answer is not satisfactory, the
Union will have thirty (30) days following that answer in which to appeal
for arbitration. If the Union does not appeal within said time limit, the
grievance shall be considered as being satisfactorily settled.
(g) All of the above stated time limits may be extended by mutual agreement.
(h) The Grievant may be present upon request of either party at any of the
steps outlined above.
(i) If grievances are appealed to arbitration, the parties will alternate
between the American Arbitration Association and the State Board of
Mediation and Arbitration.
(j) If submitted to the Connecticut State Board of Mediation and Arbitration,
the parties shall operate under the procedures set forth by said Board,
whose decision shall be final and binding upon the parties.
(k) If submitted to the American Arbitration Association, the parties shall
operate under the procedure set forth by the American Arbitration
Association, whose decision shall be final and binding upon the parties.
(l) The Arbitrator may interpret this agreement and apply it to the particular
case under consideration but shall, however, have no authority to add to,
subtract from or
25
modify the terms of this agreement in any way.
(m) The cost of Arbitration shall be shared equally by the Company and the
Union.
(n) Arbitration cases involving time study, job evaluation and job standards,
shall be submitted only to the American Arbitration Association.
(o) The Company shall not be required to pay back pay for any period in excess
of thirty (30) working days prior to the time a written grievance is
properly filed with the Company.
Section 5. The Local Union President and/or two (2) appointees, and/or a
representative of the International UAW Engineering Department, shall be
permitted to enter the plant for the purpose of investigating, advising or
negotiating on grievances. However, they shall first make known their intent to
the Company and shall receive permission for said visit. This shall be
restricted to entrance during working hours only.
ARTICLE 12
HEALTH AND SAFETY
Section 1.
(a) The Company agrees it will provide proper safety devices and sanitary
conditions in the plant. Failure to do so may be a matter of grievance.
Furthermore, the Company agrees that it will pay the full cost of Company
mandated safety equipment.
(b) Once each month starting in February, 1989 at a time to be scheduled by
management, a safety tour between two (2) members of management and two
(2) employee representatives of the Union will make a plant safety tour.
At the end of the tour, unsafe practices and conditions found in the plant
will be listed. Appropriate actions will be taken by management to correct
unsafe conditions found. This committee will jointly plan to prevent
accidents,
26
investigate accidents, review accident reports, and OSHA compliance.
Regular meetings will be scheduled to facilitate the promotion of health
and safety in the plant.
(c) The Company will issue and fill out accident forms on all injuries and
give the Shop Committeeperson a copy immediately.
Section 2. The Company shall provide first aid facilities and a qualified
attendant to perform first aid duties.
Section 3. Employees who are injured on the job can be sent home and receive pay
for the balance of their day only if authorized by written instruction from the
Medical Department or the Company doctor. The Company will issue a form to be
used in such cases, a copy of which will be given to the employee's Foreperson
and to the Union.
Section 4. Where possible, employees sustaining injuries at work, or affected by
occupational diseases during the course of their employment, and who are
physically handicapped as a result thereof, shall be given other suitable
employment as may be then available.
ARTICLE 13
LEADPERSON'S SCOPE
Section 1. To relay general instructions from Foreperson to operators with
reference to product, operations, tools, equipment and duties.
Section 2. All matters involving personnel problems are to be handled by the
Forepersons who have full supervisory authority over all employees in their
departments, including Leadpersons.
Section 3. Leadpersons shall not have the right to hire, fire, or recommend
disciplinary action or recommend promotions or demotions.
27
ARTICLE 14
BEREAVEMENT PAY
Section 1. Employees (including probationary) shall be entitled to three (3)
working days off with pay in the event of a death within the "immediate family"
Section 2. Immediate family shall be limited to spouse, child, mother, father,
sister, brother, grandparent, mother or father-in-law, brother or sister-in-law,
daughter or son-in-law, legal guardian or stepchild.
ARTICLE 15
JURY DUTY
Section 1. Employees who have completed their probationary period, and who are
called and report for Jury Duty on days they would have otherwise worked for the
Company, shall be paid regular wages for thirty (30) days, the employee shall be
paid the difference between the payment they receive for such service and the
amount calculated by multiplying (8) times their regular hourly rate of pay for
each day involved limited, however, to Monday through Friday.
Section 2. In order to receive Jury Duty make-up payment, the employees must
give Management prior notice of said Duty and furnish evidence that they
actually performed such service, showing the amount of payment received
accordingly. These provisions are not applicable to employees who, without being
called, volunteer for Jury Duty.
ARTICLE 16
NOTICE OF DISCHARGE
Section 1. The Company agrees to give immediate written notice to the Shop
Committeeperson and the employee involved of all discharges and suspensions made
within the unit, except in emergencies.
Section 2. The Chairperson and/or Committeeperson shall be present at time of
employee discharge and suspension except in emergencies.
28
Section 3. If an employee is discharged or suspended, he/she shall have the
right to a hearing within twenty four (24) hours after suspension or discharge.
He/she shall be represented by the Shop Chairperson and Committeeperson and/or
Business Agent and/or International Representative.
Section 4. When employees are discharged or suspended and file a complaint
claiming that they were unjustly discharged or suspended, the Shop
Committeeperson may invoke the grievance procedure at the third step within five
(5) days after the discharge or suspension.
Section 5. If, upon appeal, any discharge or suspension shall be found to be
unfair or discriminatory, the employee will be reinstated with seniority rights
unimpaired and will be given retroactive pay for all time lost due to the
discharge or suspension, less the earnings he/she may have received from gainful
employment or unemployment insurance obtained in the interim.
ARTICLE 17
UNION COOPERATION
The Union agrees that in exchange for a fair day's pay for a fair day's work, it
must maintain a high level of productivity. The Union and its members will
cooperate in attaining such a level of productivity as is consistent with the
health and welfare of its members. The Union and its members will seek to assist
in effectuating economies and the utilization of improved methods and machinery.
ARTICLE 18
MANAGEMENT
It is understood and agreed that with the exception of the specific provisions
of this contract, nothing in this Agreement shall be considered to limit or
restrict the Company in the exercise of the customary functions of Management.
ARTICLE 19
NO STRIKES OR LOCKOUTS
Section 1. The Union agrees that there shall
29
be no strikes during the term of this Agreement on any issues which may be the
subject of arbitration or on which the contract is silent.
Section 2. The Company agrees that there shall be no lockouts during the term of
this Agreement on any issues which may be the subject of arbitration or on which
the contract is silent.
ARTICLE 20
PAID SICK AND/OR
PERSONAL LEAVE ALLOWANCE
Section 1. Each employee, upon vacation eligibility date, shall be credited with
six (6) days (48 hours) paid sick and/or personal leave allowance in accordance
with the following provisions.
(a) Employee must have worked at least 1000 hours in the prior twelve (12)
month period. The period for determining hours worked shall be from August
1st of the prior year through July 31st of the current year.
(b) In the event an employee worked less than 1000 hours in said period, paid
sick and/or personal leave allowance will be credited in the same
proportion as the hours worked are to 1000. New employees must have worked
at least 1000 hours in order to be eligible for paid sick and/or personal
leave allowance. Employees terminated for any reason shall receive a
pro-rated sick or personal pay.
Section 2. An employee with credited sick and/or personal leave allowance as
provided in Section 1 above, may use such allowance during the following twelve
(12) month period for illness (when not receiving accident and health insurance
benefits), or personal reasons, but provided that absence from work has been
excused, is for not less than four (4) continuous hours and has at least four
(4) hours paid sick and/or personal leave allowance credit remaining. Employees
shall notify Company when electing to take personal days off.
30
Section 3. Paid sick and/or personal leave allowance shall be computed on the
basis of the employee's regular rate of pay as of the day of absence and shall
be paid on the pay check for said period so long as application for same has
been submitted on a timely basis. Application for payment shall be made through
the employee's supervisor on forms so provided.
Section 4. Unused paid sick and/or personal leave allowance, at the time of the
employee's next eligibility date, will be paid to the employee in a lump sum
calculated on the basis of the employee's regular rate of pay at such time.
ARTICLE 21
NONCOVERED EMPLOYEES
Section 1. Persons excluded from the Bargaining Unit shall not perform work of
the type customarily performed by employees of the Bargaining Unit, except in
the following situations.
(a) In emergencies when employees are not available.
(b) In the bona fide instruction or training of employees.
(c) Duties of an experimental nature or in the case of vendors or warrantees,
tryouts.
Section 2. When it is determined that Bargaining Unit work has been performed by
non-bargaining unit employees in violation of Section 1, the employee in the
appropriate job description with the least amount of accumulated overtime hours
will receive pay at the applicable rate for the hours of work performed.
Section 3. The Company shall notify the Union Chairperson and/or the
Committeeperson in the section affected prior to the assignment of any persons
excluded from the Bargaining Unit to any of the situations listed in Section 1.
Section 4. Any grievance involving interpretation of this Article may be
submitted in writing directly to Step 3.
31
ARTICLE 22
GENERAL PROVISIONS
Section 1. The Company shall notify the Union of its supervisory
representatives; the Union shall notify the Company of its Committee members
operating under the Contract.
Section 2. Employees will be paid equal pay for equal work.
Section 3. The Company and the Union agree that they will not discriminate
against any employee or applicant for employment because of age, race, color,
religious creed, sex, national origin, ancestry or physical disability, disabled
veterans, and veterans of the Vietnam era.
Section 4. Part time employees shall have seniority only among other part-time
employees, and shall share in monetary benefits under the contract on a prorated
basis only, with the exception of general wage rates which they shall share
fully.
Section 5. Officers, Stewards and Committeepersons of the Union shall be
permitted to leave work in connection with official Union business whenever
authorized by the President or the Business Agent of the Amalgamated Local
Union, and members elected or appointed to official Union conventions or
conferences, or authorized by the Local Union to attend any official Union
functions shall be permitted to leave work for such purposes provided permission
shall be obtained in advance from the Company, which permission will not
unreasonably be withheld and provided further that the Company shall not be
liable for any pay during the period of absence.
Section 6. Except as provided herein, it is understood between the parties that
there shall be no duplication of compensation for the same hours for any reason.
Section 7. The Company and the Union agree to institute a mutually agreeable
training or apprenticeship program.
32
Section 8. The Company shall print and distribute copies of this contract to all
Bargaining Unit employees within one hundred twenty (120) days of the effective
date of this Agreement.
Section 9. The Company will offer educational assistance to any employee with
three or more years of service under the following conditions:
(a) Courses must be job related and approved by Management prior to starting
the program of instruction for which payment will be made.
(b) Courses must be successfully passed prior to payment.
(c) There will be a semester limitation of assistance not to exceed $200 per
individual, effective February 1, 1992.
Section 10. Bargaining unit work within the plant shall not be sub-contracted
when the work is normally and usually performed by bargaining unit employees
with appropriate equipment and qualified employees are availale, except where
circumstances demand or economics warrant it. If such decision is based on cost,
the Company will notify and discuss with the Union as soon as possible the
reasons why it believes such action to be necessary, so the parties may explore
alternatives to such transfer of work.
ARTICLE 23
INSURANCE PROGRAM
Section 1. Health Maintenance Organization
Each employee covered by this Agreement shall have their hospital, medical,
surgical, and related insurance coverage with a Health Maintenance organization,
(HMO). the effective date for this coverage March 1, 1996 through February 28,
1996 will be PHS/Guardian Alliance. If the premium rate for this plan increases
by more than 6% for the March 1, 1997 renewal date, the Company and the Union
agree to meet and discuss options. If the medical insurance premium for the
March 1, 1998 renewal date increases by more than 6% over the agreed upon 1997
premiums, the Company and the Union agree to meet and discuss options.
33
Section 5. The Company shall pay $25 per month per employee for dental insurance
per the Local 376, UAW Dental Plan effective February 1, 1996.
Section 6. Employees who retire early may continue their life and/or medical
insurance at group rates until age sixty-five (65). In order to receive retiree
life and/or medical insurance paid for by the Company at age sixty-five (65),
the employee must elect to carry the retiree life and/or medical insurance until
age sixty-five (65).
Employees who retire early on or after 2/1/96 may continue their life and/or
medical insurance at group rates until age sixty-five (65). In order to receive
retiree life paid for by the Company and $50/mo towards retiree medical and/or
Medicare Part B Reimbursement paid for by the Company at age sixty-five (65),
the employee must elect to carry the retiree life and/or medical insurance until
age sixty-five (65).
Section 7. Employees who retire on or after February 1,1983, will be entitled to
have Medicare Part B premium paid for by the Company when they reach age
sixty-five (65). Employees entitled to receive Medicare Part B premiums should
submit a statement to the Personnel Department every six (6) months to receive
reimbursement.
Employees who retire on or after 2/1/96 are entitled to $50 per month paid for
by the company toward both medical and/or Medicare Part B reimbursement when
they reach age sixty-five (65).
ARTICLE 24
PLANT CLOSURE AGREEMENT
An employee whose employment is terminated as a direct result of the plant being
closed shall receive;
(a) Separation pay in an amount equal to $200 for each year of continuous
service,
(b) Any vacation benefits accrued but not yet paid, and
(c) The continuation of the hospital, medical, surgical, dental and life
insurance in effect at the time of their termination for four (4) months.
ARTICLE 25
TERMINATION DATE
This Agreement shall commence February 1, 1992 and terminate midnight, January
31, 1995.
This Agreement shall be in full force and effect for a period of three (3) years
from the date hereof and for additional periods of one (1) year thereafter
except that should either party hereto intend to terminate this Agreement or
35
modify any portion or any of the terms hereof, it shall give written notice by
certified mail to the other party not less than sixty (60) nor more than
seventy-five (75) days prior to its expiration date.
Should notice of termination be given by either party as herein provided, this
Contract shall terminate as of its expiration date.
Should either party hereto give the other party such written notice requesting
amendment or modification of this Agreement, such notice shall be specific as to
the amendments or modifications proposed. Negotiations on such proposed
amendments or modifications shall begin not later than twenty (20) days after
the date of mailing of such notice. During such negotiations, this Agreement
shall remain in full force and effect except that should negotiations extend
beyond the termination date then either party, upon ten (10) days notice to the
other in writing and by certified mail may terminate the Contract in which event
this Agreement shall terminate on the tenth day after mailing of such notice.
Notice shall be in writing and shall be sent by certified mail addressed, if to
the Union, to the International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America, UAW, and Amalgamated Local 376, 30
Elmwood Court, Newington, Connecticut and if to the Company, to the Heim
Bearings Division of Imo Industries Inc., 60 Round Hill Road, Fairfield,
Connecticut, 06430.
36
IN WITNESS WHEREOF, the parties hereto have caused their names to be subscribed
by their duly authorized officers and representatives this
FOR INTERNATIONAL UNION,
UNITED AUTOMOBILE, AEROSPACE
AND AGRICULTURAL IMPLEMENT
WORKERS OF AMERICA, UAW
AND AMALGAMATED LOCAL 376
John F. Shail, Chairperson
Willie Polite, Committeeperson
Brian Hogan, Committeeperson
Russell See, President, UAW 376
Len Dube, International Rep. UAW
FOR THE HElM BEARINGS DIVISION OF
IMO INDUSTRIES INC.
Lawrence A. Raffone, General Manager
Joseph N. Colantonio, Human Resources Manager
Mario E. DiDomenico, Company Committee
FOR IMO INDUSTRIES INC.
Donald F. Vosburgh, V.P. Human Resoures
37
APPENDIX A
Wage Schedule 1992
Feb. 1, 1992 Aug. 1, 1992
--------------------------------------
Base Rate 10c COLA Added
Labor Grade Hire* Maximum to Hire* Maximum
------------------------------------------------------------
12 12.55 14.29 12.65 14.39
11 12.03 13.76 12.13 13.86
10 11.51 13.24 11.61 13.34
9 11.08 12.82 11.18 12.92
8 10.46 12.19 10.56 12.29
7 9.89 11.62 9.99 11.72
6 9.67 11.40 9.77 11.50
5 9.17 10.92 9.27 11.02
4 8.85 10.58 8.95 10.68
3 8.58 10.30 8.68 10.40
2 8.40 10.14 8.50 10.24
1 8.19 9.93 8.29 10.03
* Progression from minimum to maximum will be provided in Article 3, Section
(3).
38
APPENDIX A
Wage Schedule 1993
Feb. 1, 1992 Aug. 1, 1992
--------------------------------------
Base Rate 5c COLA Added
Labor Grade Hire* Maximum to Hire* Maximum
------------------------------------------------------------
12 13.09 14.89 13.14 14.94
11 12.55 14.35 12.60 14.40
10 12.02 13.81 12.07 13.86
9 11.57 13.37 11.62 13.42
8 10.93 12.72 10.98 12.77
7 10.34 12.13 10.39 12.18
6 10.11 11.90 10.16 11.95
5 9.59 11.41 9.64 11.46
4 9.26 11.05 9.31 11.10
3 8.98 10.76 9.03 10.81
2 8.80 10.60 8.85 10.65
1 8.58 10.38 8.63 10.43
(1) Increased by 3.5% of 1992 Rates with COLAs added.
* Progression from minimum to maximum will be provided in Article 3, Section
(3).
39
RBC HEIM
HOURLY PAYROLL RETIREMENT PLAN
AMENDED AND RESTATED
EFFECTIVE FEBRUARY 1, 1989
(As amended through September 1, 1996)
TABLE OF CONTENTS
Page
----
ARTICLE I
DEFINITIONS
"Accrued Benefit" .......................................................... 2
"Active Participant" ....................................................... 2
"Actuarial Equivalent" or "Actuarially Equivalent" ......................... 2
"Actuary" .................................................................. 2
"Affiliated Company" ....................................................... 3
"Age" ...................................................................... 3
"Benefit Commencement Date" ................................................ 3
"Board of Directors" ....................................................... 4
"Break in Service" ......................................................... 4
"Code" ..................................................................... 4
"Company" .................................................................. 5
"Compensation" ............................................................. 5
"Covered Employee" ......................................................... 5
"Disability Retirement Date" ............................................... 5
"Disabled Participant" ..................................................... 6
"Early Retirement Date" .................................................... 6
"Effective Date" ........................................................... 6
"Employee" ................................................................. 6
"Employment Commencement Date" ............................................. 6
"ERISA" .................................................................... 7
"Fund" ..................................................................... 7
"Hour of Service" .......................................................... 7
"Joint Board of Administration or Board of Administration" ................. 10
"Late Retirement Date" ..................................................... 10
"Limitation Year" .......................................................... 10
"Normal Retirement Date" ................................................... 10
"Participant" .............................................................. 10
"Participating Company" .................................................... 11
"Plan" ..................................................................... 11
"Plan Year" ................................................................ 11
"Predecessor Company" ...................................................... 11
"Required Beginning Date" .................................................. 11
"Separation from Service" .................................................. 12
"Social Security Retirement Age" ........................................... 12
"Spouse" ................................................................... 13
"Surviving Spouse" ......................................................... 13
"Total Disability" ......................................................... 13
"Trust Agreement" .......................................................... 14
"Trustee" .................................................................. 14
"Union" .................................................................... 14
"Year of Credited Service" ................................................. 14
"Year of Vesting Service" .................................................. 14
-i-
Page
----
ARTICLE II
TRANSITION AND ELIGIBILITY TO PARTICIPATE
2.1 Rights Affected and Preservation of Accrued Benefit ................. 15
2.2 Eligibility to Participate .......................................... 15
ARTICLE III
VESTING SERVICE AND CREDITED SERVICE
3.1 Years of Vesting Service ............................................ 17
3.2 Credited Service for Benefit Accrual ................................ 17
3.3 Additional Rules .................................................... 18
3.4 Loss of Vesting Service ............................................. 19
3.5 Loss of Credited Service ............................................ 19
3.6 Restoration of Service .............................................. 20
ARTICLE V
ELIGIBILITY FOR BENEFITS
4.1 Normal Retirement ................................................... 21
4.2 Late Retirement ..................................................... 21
4.3 Early Retirement .................................................... 21
4.4 Disability Retirement ............................................... 21
4.5 Furnishing Data ..................................................... 23
ARTICLE V
CALCULATION OF BENEFITS
5.1 Accrued Benefit ..................................................... 24
5.2 Normal Retirement ................................................... 25
5.3 Late Retirement ..................................................... 25
5.4 Early Retirement .................................................... 25
5.5 Disability Retirement ............................................... 26
5.6 Transfers of Employment ............................................. 26
5.7 Death Before Commencement of Benefits ............................... 27
5.8 Survivor's Benefit for Surviving Spouse ............................. 27
5.9 Death Benefit After Retirement ...................................... 28
5.10 Maximum Benefit ..................................................... 28
ARTICLE VI
VESTING
6.1 Nonforfeitable Amounts .............................................. 36
6.2 Treatment of Terminated Vested Participant .......................... 36
6.3 Form and Payment of Benefit ......................................... 37
6.4 Termination of Benefit .............................................. 37
6.5 Special Rules for Certain Terminated Participants ................... 37
- ii -
Page
----
ARTICLE VII
PAYMENT OF BENEFITS
7.1 Minimum Distribution Requirements ................................... 39
7.2 Normal Form of Benefit .............................................. 40
7.3 Optional Form of Benefit ............................................ 41
7.4 Rules for Election of Optional Form of Benefit ...................... 43
7.5 Explanations to Participants ........................................ 46
7.6 Termination of Benefits ............................................. 46
7.7 Beneficiary Designation ............................................. 47
7.8 Failure to Apply for Pension ........................................ 48
7.9 Mailing Address ..................................................... 49
ARTICLE VIII
THE FUND AND FUNDING
8.1 Designation of Trustee .............................................. 50
8.2 Contributions to the Fund ........................................... 50
8.3 Use of Contributions to the Fund .................................... 51
8.4 Forfeitures ......................................................... 52
8.5 Expenses of Administration .......................................... 52
8.6 Sole Source of Benefits ............................................. 52
ARTICLE IX
ADMINISTRATION
9.1 Joint Board of Administration ....................................... 53
9.2 Meetings ............................................................ 53
9.3 Quorum .............................................................. 54
9.4 Power of Board ...................................................... 54
9.5 Disposition of Cases Outside Board's Jurisdiction ................... 54
9.6 Board Rulings Prospective ........................................... 54
9.7 Claims Procedure .................................................... 55
9.8 Organizational Matters .............................................. 56
9.9 Company Responsibility .............................................. 57
9.10 Liability of Board Members .......................................... 57
9.11 Grievance Procedure Not Applicable .................................. 58
9.12 Determination of Facts .............................................. 58
ARTICLE X
AMENDMENT AND TERMINATION
10.1 Power of Amendment and Termination .................................. 60
10.2 Disposition on Termination .......................................... 61
10.3 Merger, Consolidation, or Transfer .................................. 63
- iii -
Page
----
ARTICLE XI
GENERAL PROVISIONS
11.1 No Employment Rights ................................................ 64
11.2 Governing Law ....................................................... 64
11.3 Severability of Provisions .......................................... 64
11.4 No Interest in Fund ................................................. 64
11.5 Spendthrift Clause .................................................. 65
11.6 Incapacity .......................................................... 65
11.7 Withholding ......................................................... 66
11.8 Missing Participants ................................................ 66
SCHEDULE A - ACTUARIAL EQUIVALENTS
SCHEDULE B - MINIMUM DISTRIBUTION INCIDENTAL BENEFIT TABLES
- iv-
WHEREAS, the Heim Division of Incom International Inc., adopted the
Hourly Payroll Retirement Plan of Incom International Inc., Heim Division,
effective February 1, 1984, for certain of its employees; and
WHEREAS, the Heim Division of Incom International Inc. was purchased
by Imo Industries Inc. and Imo Industries Inc. adopted the Hourly Payroll
Retirement Plan of Incom International Inc., Heim Division and renamed such plan
the Heim Bearings Division, Imo Industries Inc. Hourly Payroll Retirement Plan,
effective February 1, 1989; and
WHEREAS, Roller Bearing Company of America purchased the Heim
Bearings Division of Imo Industries Inc. and adopted the Heim Bearings Division,
Imo Industries Inc. Hourly Payroll Retirement Plan and renamed such plan the RBC
Heim Hourly Payroll Retirement Plan, effective May 10, 1993; and
WHEREAS, Roller Bearing Company of America desires at this time to
amend the RBC Heim Hourly Payroll Retirement Plan to reflect the most recent
collective bargaining agreement pursuant to which the Plan is maintained;
NOW, THEREFORE, effective through September 1, 1996, the RBC Heim
Hourly Payroll Retirement Plan is continued and amended as hereinafter set
forth:
1
ARTICLE I
DEFINITIONS
Except where otherwise clearly indicated by context, the masculine
shall include the feminine and the singular shall include the plural, and
vice-versa. Any term used herein without an initial capital letter that is used
in a provision of the Code with which this Plan must comply to meet the
requirements of section 401(a) of the Code shall be interpreted as having the
meaning used in such provision of the Code, if necessary for the Plan to comply
with such provision.
"Accrued Benefit" means, for any Participant as of any date, subject
to Section 5.10, the amount of monthly benefit earned to such date, payable
monthly as a single life annuity beginning at the Participant's Normal
Retirement Date (or immediately, if the Participant has passed his Normal
Retirement Date and is still an Employee) calculated in accordance with Section
5.1.
"Active Participant" means a Participant who is a Covered Employee.
"Actuarial Equivalent" or "Actuarially Equivalent" means of equal
actuarial value on the basis of the assumptions and factors described in
Schedule A.
"Actuary" means the actuarial firm or individual selected by the
Company from time to time.
2
"Affiliated Company" means, with respect to any Participating
Company, (a) any corporation that is a member of the same controlled group of
corporations (within the meaning of section 414(b) of the Code) as such
Participating Company; (b) any member of an affiliated service group, as
determined under section 414(m) of the Code, of which such Participating Company
is a member; (c) any trade or business that is under common control with such
Participating Company, as determined under section 414(c) of the Code and (d)
any other entity which is required to be aggregated with a Participating Company
under section 414(o) of the Code. "50% Affiliated Company" means an Affiliated
Company, but determined with "more than 50%" substituted for the phrase "at
least 80%" in section 1563(a) of the Code, when applying sections 414(b) and
414(c) of the Code.
"Age" means, for any individual, his age on last birthday, except
that an individual attains Age 70-1/2 on the corresponding date in the sixth
calendar month following the month in which his 70th birthday falls (or the last
day of such sixth month if there is no such corresponding date therein).
"Benefit Commencement Date" means, for any Participant, the date as
of which his first benefit payment is due disregarding any disability benefits
payable pursuant to Section 5.5. For purposes of Section 5.8, and for purposes
of Paragraph (3) of Subsection 5.10(a), in calculating the maximum benefit
payable to the Surviving Spouse of a Participant under Section 5.8 "Benefit
Commencement Date" also means, with respect to the
3
Surviving Spouse, the date on which the survivor's benefit under Section 5.8
commences to the Surviving Spouse.
"Board of Directors" means the board of directors of the Company.
"Break in Service" means, for any Employee or former Employee, any
Plan Year in which he is not credited with more than 500 Hours of Service.
(a) Notwithstanding the foregoing, if an Employee is absent
for any absence for which the Joint Board of Administration adopted a rule
pursuant to which service shall be credited for purposes of avoiding a Break in
Service, then, to the extent he is not otherwise credited with Hours of Service
with respect to such absence, he shall be credited with an Hour of Service,
solely for purposes of this definition, for each Hour of Service with which he
would have been credited if he had continued to be actively employed during the
period of absence.
(b) Notwithstanding the foregoing, if an Employee is absent
from work by reason of pregnancy, childbirth, or placement in connection with
adoption, or for purposes of the care of such Employee's child immediately after
birth or placement in connection with adoption, such Employee shall not have a
Break in Service during the first Plan Year in which the Employee would
otherwise have a Break in Service pursuant to the rules set forth in Subsection
(a) of this Section.
"Code" means the Internal Revenue Code of 1986, as amended.
4
"Company" means, effective on and after May 10, 1993, Roller Bearing
Company of America, and its successors. Prior to May 10, 1993 the "Company"
means the Heim Bearings Division of Imo Industries Inc.
"Compensation" means, for any Active Participant, for the purposes
of Section 5.10, except as otherwise provided therein, his "compensation as such
word is defined in Treas. Reg. ss.1.415-2(d)(10).
"Covered Employee" means each Employee who (a) is employed by a
Participating Company on an hourly-rated basis, and (b) is covered under the
basic collective bargaining agreement between the Participating Company and the
Union, as amended from time to time, and (c) is not covered by another defined
benefit pension plan of a Participating Company or to which a Participating
Company makes contributions. An Employee who is such solely by reason of being a
leased employee within the meaning of section 414(n) or 414(o) of the Code shall
not be a Covered Employee.
"Disability Retirement Date" means, for any Participant, the date on
which he (a) is determined by the Company to have suffered a Total Disability,
and (b) has a Separation from Service due to such Total Disability; provided,
however, that a Participant shall not have a Disability Retirement Date unless,
at the time his Total Disability occurs, he is an Employee, and has to his
credit 10 or more Years of Vesting Service.
5
"Disabled Participant" means a Participant who has a Disability
Retirement Date that occurs prior to his Normal Retirement Date and who has not
ceased to be a Disabled Participant pursuant to Section 4.4(c).
"Early Retirement Date" means, for any Participant, the first day of
the calendar month coincident with or next following the date on which he has a
Separation from Service after he has attained Age 55 and has to his credit 10 or
more Years of Vesting Service.
"Effective Date" means (except as otherwise set forth herein)
February 1, 1989, the effective date of this amended and restated Plan. The Plan
was originally effective on August 15, 1956.
"Employee" means an individual who is employed by a Participating
Company or an Affiliated Company. An individual who is not otherwise employed by
a Participating Company or Affiliated Company shall be deemed to be employed by
such Company if he is a leased employee with respect to whose services such
Participating Company or Affiliated Company is the recipient within the meaning
of Code section 414(n) or 414(o), but to whom Code section 414(n)(5) does not
apply.
"Employment Commencement Date" means, for any Employee, the date on
which he is first entitled to be credited with an "Hour of Service" described in
Paragraph (a)(1) of the definition of Hour of Service in this Article.
6
"ERISA" means the Employee Retirement Income Security Act of 1974,
as amended.
"Fund" means the fund established for this Plan, administered under
the Trust Agreement, out of which benefits payable under this Plan shall be
paid.
"Hour of Service" means, for any Employee, a credit awarded with
respect to:
(a) except as provided in (b) or (c),
(1) each hour for which he is directly or indirectly
paid or entitled to payment by a Participating Company or an Affiliated Company
for the performance of employment duties; or
(2) each hour for which he is entitled, either by award
or agreement, to back pay from a Participating Company or an Affiliated Company,
irrespective of mitigation of damages; or
(3) each hour for which he is directly or indirectly
paid or entitled to payment by a Participating Company or an Affiliated Company
on account of a period of time during which no duties are performed due to
vacation, holiday, illness, incapacity (including disability), jury duty,
layoff, leave of absence, or military duty; or
(4) each hour for which he is absent for military
service under leave granted by the Participating Company or Affiliated Company
or required by law, provided the Employee returns to service with the
Participating Company or Affiliated
7
Company within 90 days of his release from active military duty or any longer
period during which his right to reemployment is protected by law; or
(5) each hour for which he is absent during a period of
absence described in Section 3.3 for which Years of Vesting Service or Years of
Credited Service are credited on his behalf.
(b) For any period that includes any hours for which an Hour
of Service would otherwise be credited to an Employee under (a), above, the
Company may, in accordance with rules applied in a uniform and
non-discriminatory manner, elect instead to credit Hours of Service using one or
more of the following equivalencies:
Basis Upon Which Records Credit Granted to Individual
Are Maintained For Period
- ------------------------ ----------------------------
shift actual hours for full shift
day 10 Hours of Service
week 45 Hours of Service
month 190 Hours of Service
Notwithstanding the foregoing and any other provision of the Plan to
the contrary, for any period that includes any hours for which an Hour of
Service would be credited to an Employee during a period of absence from work
described in Section 3.3(a) for the purpose of calculating Years of Vesting
Service, the Company shall credit Hours of Service using one or more of the
following equivalencies:
8
Basis Upon Which Records Credit Granted to Individual
Are Maintained For Period
- ------------------------ ----------------------------
day 8 Hours of Service
week 40 Hours of Service
month 174 Hours of Service
(c) Anything to the contrary in Subsection (a) or (b)
notwithstanding:
(1) Except as provided in Section 3.3, no Hours of
Service shall be credited to an Employee for any period during which payments
are made or due him under a plan maintained solely for the purpose of complying
with applicable workers' compensation, unemployment compensation, or disability
insurance laws.
(2) No more than 501 Hours of Service shall be credited
to an Employee under Paragraph (a)(3) of this definition on account of any
single continuous period during which no duties are performed by him, except to
the extent otherwise provided in Section 3.3 or elsewhere in this Plan.
(3) No Hours of Service shall be credited to an Employee
with respect to payments solely to reimburse for medical or medically related
expenses.
(4) No Hours of Service shall be credited twice.
(5) Hours of Service shall be credited at least as
liberally as required by the rules set forth in U.S. Department of Labor Reg.
ss.2530.200b-2(b) and (c).
9
(6) In the case of an Employee who is such solely by
reason of service as a leased employee within the meaning of section 414(n) or
414(o) of the Code, Hours of Service shall be credited as if such Employee were
employed and paid with respect to such service (or with respect to any related
absences or entitlements) by the Participating Company or Affiliated Company
that is the recipient thereof.
"Joint Board of Administration or Board of Administration" means the
board of administrators appointed by the Company and the Union in accordance
with Section 9.1.
"Late Retirement Date" means, for any Participant, the first day of
the calendar month coincident with or next following the date on which he has a
Separation from Service, if such Separation from Service occurs after the
Participant's Normal Retirement Date.
"Limitation Year" means the Plan Year.
"Normal Retirement Date" means, for any Participant, the first day
of the calendar month coincident with or next following the date on which he
attains Age 65.
"Participant" means an individual who is an Active Participant, a
former Active Participant receiving benefits under the Plan, a former Active
Participant who has a present or future right to receive benefits under the
Plan, or an Employee who was once an Active Participant and has been transferred
so that he is no longer a Covered Employee.
10
"Participating Company" means the Company and each other
organization which is authorized by the Board of Directors to adopt this Plan by
action of its board of directors or other governing body.
"Plan" means the RBC Heim Hourly Payroll Retirement Plan, as set
forth herein (including any Schedules).
"Plan Year" means each 12-consecutive month period that begins on
January 1st or any anniversary thereof and ends on the next following December
31st.
"Predecessor Company" means, with respect to any Participating
Company or Affiliated Company, any corporation to which such participating
Company or Affiliated Company is a successor in interest by merger,
consolidation, asset acquisition, stock acquisition, or reincorporation, and any
other corporation designated as such for purposes of this Plan by the Board of
Directors.
"Required Beginning Date" means, for any Participant:
(a) if he attained Age 70-1/2 before January 1, 1988, and is
not a 5-percent owner (within the meaning of section 416 of the Code) of a
Participating Company at any time during the five-Plan-Year period ending in the
calendar year in which he attained Age 70-1/2, or thereafter, April 1 of the
calendar year following the later of the calendar year in which he has a
Separation from Service or the calendar year in which he attained Age 70-1/2;
11
(b) if he attained Age 70-1/2 before January 1, 1988, and is a
5-percent owner (within the meaning of section 416 of the Code) of a
Participating Company at any time during the five-Plan-Year period ending in the
calendar year in which he attained Age 70-1/2, or thereafter, the later of (1)
December 31, 1987, (2) April 1 of the calendar year following the calendar year
in which he attained Age 70-1/2, or (3) April 1 of the calendar year following
the calendar year in which he becomes a 5-percent owner;
(c) except as provided in Subsection (d) below, if he attains
Age 70-1/2 on or after January 1, 1988, April 1 of the calendar year next
following the calendar year in which he attains Age 70-1/2;
(d) if he attained Age 70-1/2 before January 1, 1989 and after
December 31, 1987, is not a 5-percent owner (within the meaning of section 416
of the Code) of a Participating Company, and has not had a Separation from
Service before January 1, 1989, April 1, 1990.
"Separation from Service" means, for any Employee, his death,
retirement, resignation, discharge or any absence that causes him to cease to be
an Employee.
"Social Security Retirement Age" means (a) for any individual born
before January 1, 1938, Age 65, (b) for any individual born after December 31,
1937, but before January 1, 1955, Age 66, or (c) for any individual born after
December 31, 1954, Age 67.
12
"Spouse" means, with respect to any Participant, the individual to
whom such Participant is married as of the date of reference.
"Surviving Spouse" means, with respect to any Participant:
(a) for purposes of the survivor's benefit described in
Section 5.8, the individual, if any, who is such Participant's Spouse; and
(b) for purposes of the joint and survivor annuity described
in Section 7.2, the individual, if any, who is such Participant's Spouse on the
Participant's Benefit Commencement Date.
"Total Disability" means, with respect to any Participant, a
disability due to accident, injury, or disease that renders him unable to engage
in any regular employment for a Participating Company and the Social Security
Administration has issued a determination letter which states that he is
entitled to receive disability benefits under the Federal Social Security Act by
reason of his disability, but, except as prohibited by applicable law, excluding
such a disability that results from:
(a) chronic alcoholism;
(b) addiction to narcotics;
(c) commission of any act which results in the conviction of
any felony, except involuntary manslaughter resulting from an act of the
Participant which does not in and of itself constitute a felony; or
13
(d) intentionally self-inflicted or self-incurred injury.
"Trust Agreement" means the agreement and declaration of trust
executed for purposes of the Plan.
"Trustee" means the corporate trustee or one or more individuals
collectively appointed and acting under the Trust Agreement.
"Union" means International Union, United Automobile Aerospace and
Agricultural Implement Workers of America, U.A.W., and Amalgamated Local 376,
U.A.W.
"Year of Credited Service" means, for any Participant, a credit used
to determine his Accrued Benefit under the Plan, as further described in Article
III.
"Year of Vesting Service" means, for any Employee, a credit used to
determine his vested status under the Plan, as further described in Article III.
14
ARTICLE II
TRANSITION AND ELIGIBILITY TO PARTICIPATE
2.1 Rights Affected and Preservation of Accrued Benefit. Except as
provided to the contrary herein, the provisions of this amended and restated
Plan shall apply only to Employees who complete an Hour of Service on or after
the Effective Date. The rights of any other individual shall be governed by the
Plan as in effect upon his Separation from Service, except to the extent
expressly provided in any amendment adopted subsequently thereto.
2.2 Eligibility to Participate.
(a) Effective January 1, 1988, any Employee credited with an
Hour of Service on or after such date whose Employment Commencement Date
occurred on or after his 60th birthday shall become an Active Participant on the
later of January 1, 1988 or the date he otherwise satisfies the requirements of
Subsections (b) or (c) of this Section, if he is then a Covered Employee.
(b) Each Employee who was an Active Participant immediately
prior to the Effective Date and is a Covered Employee on the Effective Date
shall continue to be an Active Participant as of the Effective Date. Each
Employee who was not an Active Participant immediately prior to the Effective
Date shall become an Active Participant as of the Effective Date if he is then a
15
Covered Employee. Each other Employee shall become an Active Participant on the
date he becomes a Covered Employee.
(c) A Participant (or a former Participant) who has a
Separation from Service and who is later reemployed as a Covered Employee shall
become an Active Participant as of the date on which he first again completes an
Hour of Service as a Covered Employee.
16
ARTICLE III
VESTING SERVICE AND CREDITED SERVICE
3.1 Years of Vesting Service. Each Employee shall be credited with a
Year of Vesting Service for each Plan Year for which he is credited with 1,000
or more Hours of Service. An Employee who has been credited with fewer than
1,000 Hours of Service for a Plan Year shall be credited with one-twelfth (1/12)
of a Year of Vesting Service for each eighty (80) of such Hours of Service,
computed to the nearest one-twelfth (1/12); provided that any Participant who
completes at least forty (40) such Hours of Service during any Plan Year will
accrue at least one-twelfth (1/12) of a Year of Vesting Service.
3.2 Credited Service for Benefit Accrual.
(a) Except as provided in this Article, a Participant shall be
credited with a Year of Credited Service for each Plan Year for which he is
credited with 1,700 or more Hours of Service. For the purpose of calculating a
Participant's Years of Credited Service, all Hours of Service at premium rate
will be computed as straight-time hours and only Hours of Service credited for a
period during which he is (or, in the case of back pay, would have been) a
Covered Employee shall be credited.
(b) A Participant who has been credited with fewer than 1,700
Hours of Service for a Plan Year shall be credited with a fraction of a Year of
Credited Service, not to exceed 1.0, calculated to the nearest one-tenth (1/10)
of a year,
17
the numerator of which is the number of Hours of Service with which the
Participant is credited, and the denominator of which is 1,700.
3.3 Additional Rules.
(a) For the purpose of calculating a Participant's Years of
Vesting Service, service shall be credited for the following periods of absence
from work during which the Participant would normally have been scheduled to
work:
(1) absence from work, to a maximum of two years,
because of injury or disease incurred in the course of employment with a
Participating Company and with respect to which he receives Worker's
Compensation benefits;
(2) a period of involuntary layoff, to a maximum of 12
months, during which he has recall rights; provided, however, that if the
Participant fails to return to work upon recall in accordance with the
applicable collective bargaining agreement, no service shall be credited during
such period of layoff and his employment will be deemed to have terminated as of
the beginning of such period of layoff;
(3) absence from work due to any temporary illness which
does not constitute a Total Disability, for which the Participant receives
compensation under a disability program sponsored by a Participating Company,
provided the Participant has completed at least 170 Hours of Service in the year
in which such illness arose;
18
(4) absence for paid vacation or paid holidays not
worked; and
(5) any period or absence for which vesting service
shall be credited according to applicable rules adopted by the Joint Board of
Administration.
(b) For the purposes of calculating a Participant's Years of
Credited Service, service shall be credited for the following periods of absence
from work during which the Participant would normally have been scheduled to
work:
(1) absence because of vacation;
(2) absence from work, to a maximum of two years,
because of injury or disease incurred in the course of employment with a
Participating Company and with respect to which he receives Worker's
Compensation benefits;
(3) absence pursuant to an excused absence granted under
the collective bargaining agreement with the Union.
3.4 Loss of Vesting Service. An Employee's Years of Vesting Service
shall be cancelled if he incurs a Break in Service before his Normal Retirement
Date and at a time when his vested percentage under Section 6.1 is zero or his
Accrued Benefit is zero.
3.5 Loss of Credited Service. An Employee's Years of Credited
Service shall be cancelled if he is deemed to receive a single-sum payment upon
Separation from Service. An Employee shall be deemed to receive a single-sum
distribution of his entire Accrued Benefit as of the date of his Separation from
19
Service if the Actuarially Equivalent single-sum value of his vested Accrued
Benefit is zero.
3.6 Restoration of Service.
The Years of Vesting Service and Years of Credited Service of
an Employee whose Years of Vesting Service and Years of Credited Service have
been cancelled pursuant to Section 3.4 and/or Section 3.5 shall be restored to
his credit if he thereafter completes a Year of Vesting Service at a time when
the number of his consecutive Breaks in Service is less than the greater of (a)
the number of Years of Vesting Service to his credit when the first such Break
in Service occurred, or (b) five.
20
ARTICLE IV
ELIGIBILITY FOR BENEFITS
4.1 Normal Retirement. A Participant who has a Separation from
Service on his Normal Retirement Date shall be entitled to a pension. Such
Participant's Benefit Commencement Date shall be his Normal Retirement Date.
4.2 Late Retirement. A Participant who has a Separation from Service
after his Normal Retirement Date shall be entitled to a pension. Such
Participant's Benefit Commencement Date shall be the earlier of his Late
Retirement Date or his Required Beginning Date.
4.3 Early Retirement. A Participant who has an Early Retirement Date
shall be entitled to a pension. Such Participant's Benefit Commencement Date
shall be his Normal Retirement Date; provided, that he may elect as his Benefit
Commencement Date his Early Retirement Date the first day of any month after his
Early Retirement Date and not after his Normal Retirement Date. Such election
must be made no earlier than 90 days prior to the Benefit Commencement Date
elected by the Participant.
4.4 Disability Retirement.
(a) A Participant who has a Disability Retirement Date prior
to his Normal Retirement Date shall be entitled to an immediate disability
benefit commencing on the first day of the month coincident with or next
following his Disability Retirement
21
Date and ending on the date he ceases to be a Disabled Participant as described
in Subsection (c) of this Section.
(b) Total Disability shall be determined by the Company, which
may consult with a medical examiner who shall have the right to make such
physical examinations and other investigations as may be reasonably required to
determine Total Disability. The Company may direct that any former Employee who
is receiving a disability benefit shall be reexamined without expense to him
from time to time prior to the date specified in Subsection (c) of this
Section, but not more than twice in any Plan Year, to determine whether his
Total Disability continues to exist.
(c) A Disabled Participant shall cease to be such if and when:
(1) he reaches his Normal Retirement Date;
(2) he ceases to suffer from a Total Disability;
(3) he refuses to submit to reexamination in accordance
with Subsection (b) of this Section; or
(4) he dies.
If a Disabled Participant has met the requirements to receive a pension under
Section 4.3 or 6.2, such Participant may elect as his Benefit Commencement Date
any date as may be provided under the applicable Section. When a Disabled
Participant ceases to be such his current disability benefit shall end, and he
shall be entitled, if he has not previously elected a Benefit Commencement
22
Date in accordance with the preceding sentence, to a pension under the other
provisions of the Plan, applied on the basis of his Separation from Service due
to his Total Disability.
4.5 Furnishing Data. Each Employee and beneficiary shall furnish
such information as the Company may consider necessary for the determination of
the Employee's rights and benefits under the Plan and shall otherwise cooperate
fully with the Company in the administration of the Plan. Payment of benefits
shall be deferred until all of such information is supplied.
23
ARTICLE V
CALCULATION OF BENEFITS
5.1 Accrued Benefit.
A Participant's monthly pension shall be equal to $14.50
multiplied by each Year of Credited Service for a retirement occurring on or
after February 1, 1989 and before February 1, 1990; $15.00 multiplied by each
Year of Credited Service for a retirement occurring on or after February 1, 1990
and before February 1, 1991; $l5.75 multiplied by each Year of Credited Service
for a retirement occurring on or after February 1, 1991 and before February 1,
1992; $16.25 multiplied by each Year of Credited Service for a retirement
occurring on or after February 1, 1992 and before February 1, 1993; $16.75
multiplied by each Year of Credited Service for a retirement occurring on or
after February 1, 1993 and before February 1, 1994; $17.25 multiplied by each
Year of Credited Service for a retirement occurring on or after February 1, 1994
and before February 1, 1996; $18.25 multiplied by each Year of Credited Service
for a retirement occurring on or after February 1, 1996 and before February 1,
1997; $19.25 multiplied by each Year of Credited Service for a retirement
occurring on or after February 1, 1997 and before February 1, 1998; and $20.25
multiplied by each Year of Credited Service for a retirement occurring on or
after February 1, 1998.
24
5.2 Normal Retirement. A Participant who is entitled to a pension
under Section 4.1 shall receive a monthly pension. Subject to Section 5.10, such
pension shall be the Actuarial Equivalent, in the form set forth in Article VII,
of the Participant's Accrued Benefit as of his Normal Retirement Date.
5.3 Late Retirement.
(a) A Participant who is eligible for a pension under Section
4.2 shall receive a monthly pension. Subject to Section 5.10, such pension shall
be the Actuarial Equivalent, in the form set forth in Article VII, of the
Participant's Accrued Benefit as of the earlier of his Late Retirement Date or
his Required Beginning Date.
(b) If a Participant's Required Beginning Date, and therefore
his Benefit Commencement Date, precedes his Late Retirement Date, the amount of
the pension payable to the Participant shall be determined as of his Benefit
Commencement Date and shall be adjusted annually as of January 1 in each
calendar year following his Benefit Commencement Date, up to and including the
January 1 next following his Late Retirement Date. Such annual adjustment shall
include any increase (but not any decrease) in the Participant's Accrued
Benefit, determined in accordance with Section 5.1, as a result of additional
Years of Credited Service since the Participant's Benefit Commencement Date or
the last such annual adjustment, whichever applies.
5.4 Early Retirement. A Participant who is entitled to a pension
under Section 4.3 shall receive a monthly pension.
25
Subject to Section 5.10, such pension shall be the Actuarial Equivalent, in the
form set forth in Article VII, of the Participant's Accrued Benefit as of his
Early Retirement Date, reduced by one-half percent (1/2%) for each full calendar
month by which his Benefit Commencement Date precedes his Normal Retirement
Date.
5.5 Disability Retirement.
(a) The immediate disability benefit payable to a Disabled
Participant pursuant to Section 4.4 shall be, subject to Section 5.10, a monthly
benefit equal to the Participant's Accrued Benefit, determined as of his
Disability Retirement Date, without reduction for early commencement.
(b) Subject to Section 5.10, a Disabled Participant or a
former Disabled Participant who is entitled to a pension under Section 5.4 or
Article VI may elect to receive such pension as of any date provided under the
applicable Section which shall be his Benefit Commencement Date; provided,
however, that the monthly disability benefit payable to a Disabled Participant
shall be reduced (but not below zero) by the Actuarial Equivalent, in the form
of a single life annuity, of the monthly amount of any pension paid to the
Participant as the result of his election of a Benefit Commencement Date under
Section 5.4 or Article VI.
5.6 Transfers of Employment.
If a Participant ceases to be a Covered Employee under this
Plan but remains employed by a Participating Company,
26
or if an Employee of a Participating Company becomes a Covered Employee under
this Plan, he will receive credit under this Plan for Years of Vesting Service
for all periods of employment as an Employee of the Participating Company and
credit under the Plan for Years of Credited Service for all periods of
employment as a Covered Employee of the Participating Company.
5.7 Death Before Commencement of Benefits. The Accrued Benefit of a
Participant who dies before his Benefit Commencement Date shall be forfeited
except as provided in Section 5.8.
5.8 Survivor's Benefit for Surviving Spouse. If a Participant who
has any vested interest in his Accrued Benefit under the Plan, dies before his
Benefit Commencement Date leaving a Surviving Spouse, such Surviving Spouse
shall receive a survivor's benefit. Such benefit shall be a monthly pension for
life commencing, as elected in writing by the Spouse no earlier than 90 days
prior to the Benefit Commencement Date elected by the Spouse, on the first day
of any month following the earliest date on which the Participant could have
elected to receive immediate retirement benefits, but not later than the date
that would have been the Participant's Normal Retirement Date. If the
Participant dies after his Normal Retirement Date, benefits shall commence on
the first day of the month following the month of the Participant's death.
Subject to Section 5.10 the survivor's benefit shall be the benefit such
Surviving Spouse would have received if the Participant (1) had had a Separation
from Service
27
on the date of his death (if he is then an Employee), (2) had survived to the
Benefit Commencement Date elected by the Surviving Spouse, (3) had then begun to
receive an immediate retirement benefit.
5.9 Death Benefit After Retirement. If a Participant dies after his
Benefit Commencement Date, his beneficiary shall be entitled to receive any
amount payable under the form of benefit that is in effect for such Participant.
5.10 Maximum Benefit. The provisions of this Section shall be
effective for Limitation Years beginning in 1987 and thereafter and shall be
construed to comply with section 415 of the Code.
(a) (1) Notwithstanding anything in this Article to the
contrary, in no event shall the combined annual benefit payable with respect to
a Participant on a single life basis, under this and any other defined benefit
plan to which a Participating Company or a 50% Affiliated Company contributes,
exceed the lesser of (A) $90,000 (or such other dollar limitation as in effect
for the Limitation Year under section 415(b)(1)(A) of the Code) or (B) one
hundred percent (l00%) of the Participant's average Compensation during the
three consecutive calendar years as an Active Participant in which such
Compensation is the highest.
(2) (A) If the benefit is payable with respect to a
Participant who has been an Active Participant for fewer than 10 full years at
the time that retirement benefits
28
begin, the dollar limitation described in Subparagraph (a)(1)(A) of this Section
shall be multiplied by a fraction, the numerator of which is the number of the
Participant's years as an Active Participant and the denominator of which is 10.
(B) If the benefit is payable with respect to a
Participant who has fewer than 10 Years of Vesting Service, the limitations
described in Subparagraph (a)(1)(B), Paragraph (a)(4) and Subparagraphs
(c)(1)(A) and (c)(1)(B) of this Section shall be multiplied by a fraction, the
numerator of which is the number of the Participant's Years of Vesting Service
and the denominator of which is 10.
(3) If a Participant's (or beneficiary's) Benefit Commencement
Date is not the date on which the Participant attains (or would have attained,
if living) his Social Security Retirement Age, the dollar limitation in
Subparagraphs (a)(1)(A) and (c)(1)(A) shall be adjusted as follows:
(A) If the Participant's (or beneficiary's) Benefit
Commencement Date occurs before the Participant attains (or would have attained,
if living) his Social Security Retirement Age, but on or after the date he
attains (or would have attained, if living) Age 62, the dollar limitation shall
be reduced by five-ninths percent (5/9 of 1%) for each of the first 36 months
and five-twelfths percent (5/12 of 1%) for each additional month by which the
Participant's (or beneficiary's) Benefit Commencement Date precedes the date he
29
attains (or would have attained, if living) his Social Security Retirement Age.
(B) If the Participant's (or beneficiary's) Benefit
Commencement Date occurs before the Participant attains (or would have attained,
if living) his Social Security Retirement Age and before he attains (or would
have attained, if living) Age 62, the dollar limitation shall be reduced in
accordance with Subsection (a)(3)(A) as if retirement benefits were commencing
to the Participant at Age 62, and this reduced dollar limitation shall be
further reduced to its Actuarial Equivalent beginning at the Participant's (or
beneficiary's) Benefit Commencement Date, using an interest rate equal to the
greater of five percent (5%) or the rate set forth in the "Maximum Benefit
Assumptions" section of Schedule A (if any);
(C) If the Participant's (or beneficiary's) Benefit
Commencement Date occurs after the date the Participant attains (or would have
attained, if living) his Social Security Retirement Age, the dollar limitation
shall be adjusted to its Actuarial Equivalent beginning at the Participant's (or
beneficiary's) Benefit Commencement Date, using an interest rate equal to the
lesser of five percent (5%) or the rate set forth in the "Maximum Benefit
Assumptions" section of Schedule A (if any).
(4) The annual benefit payable with respect to a Participant
may exceed 100% of his average Compensation for
30
the highest three consecutive calendar years as an Active Participant (but not
in excess of the amount applicable under Subparagraph (a)(1)(A) of this Section,
adjusted as set forth in Paragraph (a)(3)), if (A) the annual benefit does not
exceed $10,000 for the current Plan Year or for any prior Plan Year, and (B) the
Participant has at no time participated in a defined contribution plan
maintained by a Participating Company or a 50% Affiliated Company.
(b) If a Participant's benefits are otherwise limited by this
Section, the benefit payable to the Participant and/or the Participant's
Surviving Spouse under Section 5.8 or Section 7.2 shall be based upon the
Participant's benefit determined without regard to this Section, and the
limitations of this Section shall apply to the resulting benefit payable to the
Participant and/or his Surviving Spouse.
(c) If in any Limitation Year a Participant is a participant
in one or more defined contribution plans sponsored by a Participating Company
or a 50% Affiliated Company, the annual benefit referred to in Subsection (a)
shall be reduced, if necessary, so that the sum of the fractions described in
Paragraphs (1) and (2) of this Subsection does not exceed 1.0 for such
Limitation Year.
(1) Defined Benefit Fraction - A fraction, the numerator
of which is the Participant's projected annual benefit under all defined benefit
plans to which a Participating Company or 50% Affiliated Company contributes,
determined as of
31
the close of the limitation years of such plans, and the denominator of which is
the lesser of: (A) 1.25 x $90,000 (or such other dollar limitation in effect for
the Limitation Year under section 415(b)(1)(A) of the Code) or (B) one hundred
forty percent (140%) of the Participant's highest average Compensation over any
three consecutive calendar years.
(2) Defined Contribution Fraction - A fraction, the
numerator of which is the sum of the annual additions to the Participant's
accounts under such defined contribution plans for all limitation years, and the
denominator of which is the sum of the lesser of the following amounts,
determined for each of such limitation years with a Participating Company or a
50% Affiliated Company: (A) 1.25 x $30,000 (or such dollar limitation as in
effect for such Limitation Year under section 415(c)(1)(A) for the Limitation
Year) or (B) thirty-five percent (35%) of the Participant's Compensation for
such limitation year.
(3) Adjustment to Defined Contribution Fraction.
Notwithstanding the above, if the Plan satisfied section 415 of the Code as in
effect for the last limitation year beginning prior to January 1, 1987, an
amount shall be subtracted from the numerator of the defined contribution
fraction (not exceeding such numerator) as prescribed by the Secretary of the
Treasury so that the sum of the defined benefit fraction and defined
contribution fraction computed under section 415(e)(1) of
32
the Code as amended effective January 1, 1987, does not exceed 1.0 for such
limitation year.
(4) Definitions - For the purpose of this Subsection,
"projected annual benefit" shall mean the annual benefit to which a Participant
would be entitled under the terms of a defined benefit plan if he had continued
employment until his normal retirement date under such plan and if his
compensation for the purpose of such plan had continued at the same rate.
"Annual additions" to a Participant's accounts under any defined contribution
plan for any limitation year shall mean the sum of (A) employer contributions;
(B) forfeitures; (C) (i) for Limitation Years beginning on or after January 1,
1987, the Participant's own contributions, if any, and (ii) for Limitation Years
beginning before January 1, 1987, the lesser of (I) one-half of the
Participant's own contributions, if any, or (II) the Participant's own
contributions in excess of six percent (6%) of his compensation for such
limitation year; (D) all amounts allocated to any Participant after March 31,
1984 to an individual medical account (within the meaning of Code section
415(1)(2)) which is part of a pension or annuity plan maintained by a
Participating Company or any Affiliated Company; and (E) all amounts derived
from contributions paid or accrued after December 31, 1985, in taxable years
ending after such date which are attributable to post-retirement medical
benefits allocated to a separate account of a Participant who is a key employee,
as defined in section 419A(d)(3) of the Code, under a welfare
33
benefit fund maintained by a Participating Company or any 50% Affiliated
Company.
(d) The limitations described in Subsections (a) and (b) shall
not reduce any benefit which was accrued by a Participant under the Plan prior
to the first day of its Limitation Year beginning in 1987, using the applicable
maximum dollar limitations then in effect; provided, however, that this sentence
shall not apply to any Participant who was not a Participant as of the first day
of the first Limitation Year that began in 1987. For the purpose of this
Subsection (d), no change in the Plan after May 5, 1986 and no cost of living
adjustment after May 5, 1986 shall be taken into account.
(e) (1) The Company may elect to apply Subsection (c)(2) with
respect to any Limitation Year ending after December 31, 1982 by calculating the
denominator under Subsection (c)(2) using an alternate amount for all Plan Years
ending before January 1, 1983. The alternate amount shall be equal to the amount
determined for the denominator under Subsection (c)(2) as in effect for the
Limitation Year ending in 1982 multiplied by the "transition fraction."
(2) The "transition fraction" shall be a fraction
determined as follows:
(A) The numerator shall consist of the lesser of:
(i) $51,875 or (ii) thirty-five percent (35%) of the Participant's compensation
for the Plan Year ending in 1981.
34
(B) The denominator shall consist of the lesser
of: (i) $41,500 or (ii) twenty-five percent (25%) of the Participant's
compensation for the Plan Year ending in 1981.
35
ARTICLE VI
VESTING
6.1 Nonforfeitable Amounts.
(a) A Participant who is credited with one or more Hours of
Service as an Employee on or after January 1, 1989 shall have a 100%
nonforfeitable interest in his Accrued Benefit when he has to his credit five
Years of Vesting Service. A Participant who has fewer than five Years of Vesting
Service to his credit shall have no nonforfeitable interest in his Accrued
Benefit.
(b) Notwithstanding the foregoing, a Participant who is an
Employee shall have a 100% nonforfeitable interest in his Accrued Benefit upon
the date on which he attains Age 65.
6.2 Treatment of Terminated Vested Participant.
(a) A Participant who has a Separation from Service at a time
when he has a nonforfeitable interest in his Accrued Benefit pursuant to Section
6.1, other than by death or as provided in Article IV, shall be eligible for a
deferred pension. His Benefit Commencement Date shall be his Normal Retirement
Date, if he is then living. Subject to Section 5.10, the pension payable under
this Section shall be equal to the Participant's Accrued Benefit as of the date
of his Separation from Service. If the Participant has no nonforfeitable
interest in his Accrued Benefit, he shall forfeit his Accrued Benefit.
36
(b) If a Participant who is eligible for a deferred pension
under Subsection (a) of this Section has 10 or more Years of Vesting Service to
his credit as of the date of his Separation from Service, he may elect as his
Benefit Commencement Date (1) the first day of the calendar month coincident
with or next following his 55th birthday, or (2) the first day of any month
after such birthday and before his Normal Retirement Date. Such election must be
made no earlier than 90 days prior to the Benefit Commencement Date elected by
the Participant.
(c) A Participant who elects a Benefit Commencement Date under
Subsection (b) of this Section shall receive the benefit described in Subsection
(a) of this Section in an amount reduced by one-half percent (1/2%) for each
full calendar month by which his Benefit Commencement Date precedes his Normal
Retirement Date.
6.3 Form and Payment of Benefit. Deferred vested benefits shall be
paid in a form provided for in Article VII.
6.4 Termination of Benefit. The last deferred vested benefit payment
hereunder shall be made in accordance with the provisions of Article VII.
6.5 Special Rules for Certain Terminated Participants.
(a) Notwithstanding Section 2.1, if a Participant:
(1) is eligible for a deferred vested benefit under the
Plan,
37
(2) has been credited with at least one Hour of Service
on or after September 2, 1974,
(3) had a Separation from Service prior to the first day
of the first Plan Year beginning after December 31, 1975,
(4) has not thereafter been an Employee, and
(5) is alive on August 23, 1984 and has not begun to
receive benefit payments as of that date, such Participant's retirement benefits
shall be paid in accordance with Article VII.
(b) Notwithstanding Section 2.1, if a Participant:
(1) has at least one Hour of Service after the first day
of the Plan Year beginning on or immediately after January 1, 1976,
(2) has not been credited with any Hours of Service
after August 22, 1984,
(3) has at least 10 Years of Vesting Service and a
vested right to all or a portion of his Accrued Benefit, and
(4) is alive on August 23, 1984 and has not begun to
receive benefit payments as of that date, he may elect to be covered by the
survivor's benefit described in Section 5.8.
38
ARTICLE VII
PAYMENT OF BENEFITS
7.1 Minimum Distribution Requirements.
(a) Except as required by Subsection (c) of this Section, a
Participant's Benefit Commencement Date shall be no earlier than the date of his
Separation from Service.
(b) Except as required by Subsection (c) of this Section, his
Benefit Commencement Date shall be no later than the 60th day after the close of
the Plan Year in which the Participant attains Age 65 or has a Separation from
Service, whichever occurs last.
(c) A Participant's Benefit Commencement Date shall be no
later than his Required Beginning Date.
(d) Notwithstanding anything in the Plan to the contrary, if a
Participant dies before his Benefit Commencement Date, his entire interest under
the Plan, to the extent not forfeited, shall be distributed either:
(1) not later than December 31 of the calendar year
containing the fifth anniversary of the date of the Participant's death, or
(2) over the life or life expectancy of the
Participant's beneficiary, commencing no later than (A) December 31 of the
calendar year following the year of the Participant's death, or (B) if the
beneficiary is the Participant's Spouse, December 31 of the later of (i) the
39
calendar year following the year of the Participant's death or (ii) the calendar
year in which the Participant would have attained Age 70-1/2.
(e) Notwithstanding anything in the Plan to the contrary, the
form and the timing of all distributions under the Plan shall be in accordance
with regulations issued by the Department of the Treasury under section
401(a)(9) of the Code, including the incidental death benefit requirements of
section 401(a)(9)(G) of the Code.
(f) This Section shall apply to all Participants, including
Participants who had a Separation from Service or ceased to be a Covered
Employee prior to January 1, 1989.
7.2 Normal Form of Benefit.
(a) Except in the case of a current disability benefit payable
pursuant to Section 4.4, benefits under the Plan shall be paid in the normal
form of benefit described in Subsection (b) or (c) , as the case may be, unless
the Participant elects an optional form of benefit under Section 7.3. No spousal
consent shall be required for payment of benefits in the normal form. A current
disability benefit payable pursuant to Section 4.4 shall only be paid in the
form of a single life annuity.
(b) The normal form of benefit for a Participant who has a
Spouse as of his Benefit Commencement Date shall be a joint and survivor
annuity, with monthly installments payable after the death of the retired
Participant to his Surviving Spouse, if he leaves one, for the life of such
Surviving Spouse
40
in an amount equal to fifty-five percent (55%) of the benefit paid to the
retired Participant.
(c) The normal form of benefit for a Participant who does not
have a Spouse as of his Benefit Commencement Date shall be a single life annuity
with equal monthly installments payable to the retired Participant for his
lifetime.
7.3 Optional Form of Benefit.
(a) In lieu of the normal form of benefit as determined under
Section 7.2, the Participant may elect, subject to the rules of Section 7.4, one
of the following optional forms of benefit; except, that, a Participant may not
elect to receive the current disability benefit payable pursuant to Section 4.4
in any optional form of benefit:
(1) a single life annuity with equal monthly
installments payable to the retired Participant for his lifetime; or
(2) a joint and survivor annuity with any individual
designated beneficiary, payable in monthly installments to the Participant for
his lifetime and with fifty-five percent (55%) of the amount of such monthly
installment payable after the death of the Participant to the designated
beneficiary of such Participant, if then living, for the life of such designated
beneficiary; provided, however, that a Participant may only elect this form of
benefit if he retires from service at or after his Normal Retirement Date.
Notwithstanding the foregoing, the percentage payable to the
41
Participant's beneficiary (unless the beneficiary is the Participant's Spouse)
after the Participant's death may not exceed the applicable percentage from
Table I in Schedule B.
(b) In addition to the normal form of benefit provided in
Section 7.2(b) or the optional form of benefit provided in Section 7.3(a)(2), a
Participant may elect, subject to the rules of Section 7.4, that (1) he and his
Spouse, if he has elected the form of benefit provided in Section 7.2(b); or (2)
he and his designated beneficiary, if he has elected the form of benefit
provided in Section 7.3(a)(2), may receive an aggregate of 120 total monthly
payments guaranteed. If the Participant and his Spouse or beneficiary, as
applicable, die before receiving a combined total of 120 monthly payments, in
whichever form of benefit has been elected, then beginning on the first day of
the month in which the Spouse's or beneficiary's death, as applicable, occurs
and continuing until the balance of the guaranteed payments have been made,
payments in the amount payable to the Spouse or beneficiary, as applicable,
shall be made to the individual elected by the Participant to receive the
remainder of the guaranteed payment (hereinafter called the "Second
Beneficiary"). If the Second Beneficiary dies before the full number of
guaranteed monthly payments have been made, the Actuarial Equivalent of any
balance of guaranteed payments shall be paid in a single sum to the estate of
the last to survive of (1) the Second Beneficiary or (2) the Participant's
Spouse or beneficiary, as applicable. Notwithstanding the foregoing, the
42
number of monthly payments guaranteed shall be calculated so that the number of
guaranteed monthly payments remaining as of the beginning of the calendar year
preceding the Participant's Required Beginning Date does not exceed the joint
life expectancy of the Participant and his beneficiary, or if less, and the
Participant's beneficiary is not the Participant's Spouse, the applicable number
from Table II in Schedule B multiplied by 12. Notwithstanding the foregoing, a
Participant may only elect this form of benefit if he retires from service at or
after his Normal Retirement Date.
7.4 Rules for Election of Optional Form of Benefit. A Participant
may elect an optional form of benefit under Section 7.3 by filing a written
notice with the Company in the form and manner prescribed by the Company and in
no other. The following rules shall be applied in a uniform and
nondiscriminatory manner with respect to the election of optional forms of
benefit.
(a) A Participant may elect an optional form of benefit at any
time during the period that begins 90 days prior to the first day of the
calendar month in which his Benefit Commencement Date falls and ends on his
Benefit Commencement Date. If a Participant's Benefit Commencement Date is less
than ninety days after the date on which the Participant notifies the Company of
his intent to begin receiving benefits, payments shall begin on the
Participant's Benefit Commencement Date, but the Participant may revoke his
election and make a new election at
43
any time during the period ending 90 days after the date such notice is given.
(b) A Participant who does not establish to the satisfaction
of the Company that he has no Spouse on his Benefit Commencement Date may elect
to receive an optional form of benefit under Section 7.3 only if:
(1) (A) his Spouse (or the Spouse's legal guardian if
the Spouse is legally incompetent) executes a written instrument whereby such
Spouse:
(i) consents not to receive the normal form of
benefit described in Subsection (b) of Section 7.2;
(ii) consents to the specific optional form
elected by the Participant, or (provided such instrument acknowledges the
Spouse's right to limit consent to a specific optional form) to the
Participant's right to choose any optional form without any further consent by
the Spouse; and
(iii) if applicable, consents in writing to either
the specific beneficiary or beneficiaries designated by the Participant pursuant
to his election or (provided such instrument acknowledges the Spouse's right to
limit consent to a specific beneficiary) to the Participant's right to designate
any beneficiary or beneficiaries without any further consent by the Spouse; and
(B) such instrument acknowledges the effect of the
election to which the Spouse's consent is being
44
given and is witnessed by a Plan representative or a notary public; or
(2) the Participant (A) establishes to the satisfaction
of the Company that his Spouse cannot be located or (B) furnishes a court order
to the Company establishing that the Participant is legally separated or has
been abandoned (within the meaning of local law), unless a qualified domestic
relations order pertaining to such Participant provides that the Spouse's
consent must be obtained.
The consent of a Spouse in accordance with this Subsection (b) shall not be
effective with respect to other Spouses of the Participant, and an election to
which Paragraph (3) of this Subsection applies shall become void if the
circumstances causing the consent of the Spouse not to be required cease to
exist prior to the Participant's Benefit Commencement Date.
(c) A Participant may revoke an election under Subsection (b)
of this Section. Such revocation may be made at any time during the election
period described in Subsection (a). Such revocation shall not void any
prospectively effective consent given by his Spouse in connection with the
revoked election.
(d) If a Participant's Spouse or other designated beneficiary
dies before the Participant's Benefit Commencement Date, but after an election
of a joint and survivor annuity has been made hereunder, the election shall be
automatically revoked.
45
(e) In the event of the divorce or a Participant prior to his
Benefit Commencement Date, but following the Participant's election of a joint
and survivor annuity form of benefit, the election shall be automatically
revoked.
7.5 Explanations to Participants. The Company shall provide to each
Participant no less than 30 days and no more than 90 days before his Benefit
Commencement Date a written explanation of:
(a) the terms and conditions of the normal form of benefit and
each optional form of benefit, including information explaining the relative
values of each form or benefit;
(b) the Participant's right to waive the normal form of
benefit and the effect of such waiver;
(c) the rights of the Participant's Spouse with respect to
such waiver;
(d) the right to revoke an election to receive an optional
form of benefit and the effect of such revocation; and
(e) if the Participant has not attained Age 65, the
Participant's right to defer commencement of his benefit until his Normal
Retirement Date.
7.6 Termination of Benefits. The last benefit payment hereunder with
respect to any Participant shall be:
(a) in the case of a single life annuity, the payment due on
the first day of the month in which occurs the death of the retired Participant;
46
(b) in the case of a surviving Spouse's benefit or a joint and
survivor benefit, the payment due on the first day of the month in which occurs
the later of the death of the Participant or the death of the Spouse (or, if
applicable, the death of the designated beneficiary of such Participant);
(c) in the case of the optional form of benefit elected under
Section 7.3(b), the later of (1) the payment due on the first day of the month
in which the death of the Participant's Spouse or beneficiary, as applicable,
occurs or (2) the 120th monthly payment; or
(d) in the case of a current disability benefit under Section
4.4, the payment due on the first day of the month in which the Participant
ceases to be a Disabled Participant pursuant to Section 4.4(c).
7.7 Beneficiary Designation.
(a) Except as provided in Subsection (a) of Section 7.4 in the
case of a Participant whose election period extends beyond his Benefit
Commencement Date, a Participant's designation of a beneficiary under a joint
and survivor annuity may not be changed on or after the Participant's Benefit
Commencement Date.
(b) A Participant's designation of a Second Beneficiary to
receive any remainder of a guaranteed number of payments may be made or changed
until the earlier of the Participant's death or the expiration of the guaranteed
period.
47
(c) Subject to the provisions of Subsections (a) and (b) and
to the provisions set forth above relating to the rights of Spouses to survivor
benefit payments, each Participant may designate or change the previous
designation of the beneficiary or beneficiaries who shall receive benefits, if
any, after his death. Such designation or change of designation shall be made by
executing and filing with the Company a form prescribed by the Company and in no
other manner. No designation, revocation, or change of beneficiaries shall be
valid and effective unless and until filed with the Company. If no designation
is made, or if all of the beneficiaries named in such designation predecease the
Participant or cannot be located by the Company, the interest, if any, of the
deceased Participant shall be paid to the Participant's Spouse, if living, or,
otherwise, to the Participant's estate.
7.8 Failure to Apply for Pension. Benefit payments shall commence
when properly written application for same is received by the Company. In the
event that a Participant fails to apply to the Company for pension benefits by
the earlier of (a) his Normal Retirement Date or the date on which he has a
Separation from Service, if later, or (b) the end of the calendar year in which
he attains Age 70-1/2, the Company shall make diligent efforts to locate such
Participant and obtain such application. In the event the Participant fails to
make application by his Required Beginning Date, the Company shall commence
distribution as of the Required Beginning Date without
48
such application. No payments shall be made for the period in which benefits
would have been payable if the Participant had made timely application therefor;
provided, however, that, if the Participant's Benefit Commencement Date (or, if
the Participant has died, his Spouse's Benefit Commencement Date under Section
5.8 has been delayed until after the Participant's Normal Retirement Date solely
by reason of failure to make application, the benefit payable (1) to the
Participant on and after his Benefit Commencement Date, or (2) to the
Participant's Spouse pursuant to Section 5.8 on and after the Spouse's Benefit
Commencement Date, shall be equal to the Actuarial Equivalent of the benefit the
Participant or Spouse would have received had benefits commenced on the
Participant's Normal Retirement Date, as determined to reflect the deferral of
benefit commencement.
7.9 Mailing Address. Benefit payments and notifications hereunder
shall be deemed made when mailed to the last address furnished to the Company by
the Participant or beneficiary to whom they are due.
49
ARTICLE VIII
THE FUND AND FUNDING
8.1 Designation of Trustee. The Company, by appropriate resolution
of its Board of Directors, shall name and designate a Trustee and shall enter
into a Trust Agreement with such Trustee. The Company shall have the power, by
appropriate resolution of its Board of Directors, to amend the Trust Agreement,
remove the Trustee, and designate a successor Trustee, all as provided in the
Trust Agreement. All of the assets of the Plan shall be held by the Trustee for
use in accordance with the Plan.
8.2 Contributions to the Fund. The benefits provided under the Plan
shall be financed exclusively by contributions made from time to time to the
Trustee by the Participating Companies, and by the Fund created thereby. Subject
to the provisions of applicable law, the liability of the Participating
Companies under the Plan shall be limited to the contributions determined by the
Participating Companies from time to time in accordance with the advice and
counsel of the Actuary. The funding policy applicable to the Fund shall be
established by the Company and shall be reviewed from time to time. All
contributions are conditioned on their deductibility for Federal income tax
purposes in the taxable year that includes the first day of the Plan Year for
which they are made.
50
8.3 Use of Contributions to the Fund. The contributions deposited
under the terms of this Plan shall constitute the Fund held for the benefit of
Participants and their eligible survivors under and in accordance with this
Plan. No part of the corpus or income of the Fund shall be used for or diverted
to purposes other than exclusively for the benefit of such Participants and
their eligible survivors, and for necessary administrative costs; provided,
however, that in the event of the termination of the Plan, and after all fixed
and contingent liabilities have been satisfied, and upon compliance with
Sections 4041 and 4044 of ERISA, any remaining funds attributable to
contributions by the Participating Companies shall revert to those companies;
and further provided that in the case of a contribution (a) made by a
Participating Company as a mistake of fact, or (b) which is conditioned upon the
initial qualification of the Plan under section 401(a) of the Code, or (c) for
which a tax deduction is disallowed, in whole or in part by the Internal Revenue
Service, the Participating Company shall be entitled to a refund of said
contribution within one year after payment of a contribution made as a mistake
of fact, or within one year of the date on which the initial qualification of
the Plan is denied by the Internal Revenue Service, or within one year after
disallowance of the tax deduction, to the extent of such disallowance, as the
case may be.
51
8.4 Forfeitures. Forfeitures shall not be applied to increase the
benefits of any Participant, but shall reduce the contributions of the
Participating Companies hereunder.
8.5 Expenses of Administration. All expenses of administration of
this Plan shall be paid from the Fund unless they are paid directly by the
Participating Companies.
8.6 Sole Source of Benefits. The Fund shall be the sole source for
the provision of benefits under the Plan. Neither the Participating Companies
nor any other person shall be liable therefor.
52
ARTICLE IX
ADMINISTRATION
9.1 Joint Board of Administration. There shall be established a
Joint Board of Administration composed of four members, two appointed by the
Company and two appointed by the Union. The members will serve without
compensation from the Fund. An impartial chairman will be selected by mutual
agreement of the Company and the Union members of the Joint Board of
Administration, and will attend and vote at meetings of the Board only in the
event of a deadlock. The fees and expenses of the impartial chairman will be
paid from the Fund. Either the Company or the Union, at any time, may remove a
member appointed by it and may appoint a member to fill any vacancy among
members appointed by it. No person shall act as a member of the Board of
Administration unless notice of his appointment has been given in writing by the
party making the appointment to the other party. The Board shall be the
administrator and named fiduciary of the Plan for purposes of the ERISA.
9.2 Meetings. The Board shall meet at such times and at such periods
for the transaction of necessary business as may be mutually agreed upon by its
members. The Board and those persons or entities to whom the Board has delegated
responsibilities shall keep accurate records and minutes of meetings,
interpretations, and decisions.
53
9.3 Quorum. To constitute a quorum for the transaction of business,
the presence of one Union member and one Company member shall be required. At
all meetings the members appointed by the Company shall have a total of two
votes to be cast on behalf of the Company and the members appointed by the Union
shall have a total of two votes to be cast on behalf of the Union. Decisions of
the Board will be made by a majority of the votes cast.
9.4 Power of Board. Unless otherwise provided in the collective
bargaining agreement between the Company and the Union, the Joint Board of
Administration shall have no power to add to or subtract from or modify any of
the terms of this Plan, nor to change or add to any benefit provided by the
Plan, nor to waive or fail to apply any benefit provided by the Plan, nor to
waive or fail to apply any requirement or eligibility for a benefit under the
Plan.
9.5 Disposition of Cases Outside Board's Jurisdiction. Any case
referred to the Joint Board of Administration on which it has no power to rule
shall be referred back to the parties without ruling.
9.6 Board Rulings Prospective. No ruling or decision of the Joint
Board of Administration in one case shall create a basis for a retroactive
adjustment in any other case prior to the date of filing of each such specific
claim.
54
9.7 Claims Procedure.
(a) The Company will advise each Participant of any benefits
to which he is entitled under the Plan. If any person believes that the Company
has failed to advise him of any benefit to which he is entitled, he may file a
written claim with the Board. The Board shall review such claim and shall
provide to every claimant who is denied a claim for benefits written notice
setting forth in a manner calculated to be understood by the claimant:
(1) the specific reason or reasons for the denial;
(2) specific reference to pertinent plan provisions on
which the denial is based;
(3) a description of any additional material or
information necessary for the claimant to perfect the claim and an explanation
of why such material or information is necessary;
(4) an explanation of the claim review procedure set
forth in Subsection (b), below.
Such notice shall be forwarded to the claimant within 90 days of the
Board's receipt of the claim; provided, however that in special circumstances
the Board may extend the response period for up to an additional 90 days, in
which event it shall notify the claimant in writing of the extension, and shall
specify the reason or reasons for the extension.
55
(b) Within 60 days of receipt by a claimant of a notice
denying a claim under Subsection (a), the claimant or his duly authorized
representative may request in writing a full and fair review of the claim by the
Board. In connection with such review, the claimant or his duly authorized
representative may review pertinent documents and may submit issues and comments
in writing. The Board shall make a decision promptly, and not later than 60 days
after the Plan's receipt of a request for review, unless special circumstances
require an extension of time for processing (in which case the claimant shall be
notified in writing prior to the commencement of the extension), a decision
shall be rendered as soon as possible, but not later than 120 days after receipt
of a request for review.
9.8 Organizational Matters. As soon as possible after the effective
date of this Plan, the Union and Company members of the Board of Administration
shall work out matters such as, but not limited to:
(a) The procedures for reviewing applications for pensions and
the furnishing of evidence necessary to establish Employees' rights to such
benefits.
(b) The handling of complaints regarding the determination of
age, service credits, and computation of benefits.
(c) Procedures for making appeals to the Board.
(d) Means of verifying service credits to which Employees are
entitled under the Plan.
56
(e) Methods of furnishing information to the Employees
regarding past and future service credits.
(f) The review of pertinent information about the Plan for
dissemination to employees.
(g) How pension payments will be authorized by the Board.
All such matters shall be consistent with all other provisions of
the Plan. The working out of the procedures in this Section shall be the
responsibility of the Company and Union members of the Board, and the Impartial
Chairman shall have no power to decide any question with respect thereto.
9.9 Company Responsibility. Except as provided otherwise in this
Plan, the general administration of the provisions of the Plan shall be the
responsibility of the Company. The Company shall have all such powers as may be
necessary to carry out the provisions of the Plan except the powers and duties
given to the Joint Board of Administration by this Plan.
9.10 Liability of Board Members. The Board and any member of the
Board shall be entitled to rely upon the correctness of any information
furnished by the Union or the Company. Neither the Board, nor any of its
members, nor the Union nor any officer or other representative of the Union, nor
the Company nor any officer or other representative of the Company, shall be
liable because of any act, or failure to act, on the part of the Board or any of
its members, or any person,
57
except that nothing herein shall be deemed to relieve any such individual from
any liability for his own failure to exercise a fiduciary responsibility with
the care, skill, prudence, and diligence under the circumstances then prevailing
that a prudent man acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with like
aims.
9.11 Grievance Procedure Not Applicable. No matter respecting the
Plan or any difference arising thereunder shall be subject to the grievance
procedure established in the Collective Bargaining Agreement between the Company
and the Union.
9.12 Determination of Facts.
(a) The records of the Company shall be presumed to be
conclusive of the facts concerning the employment or nonemployment of any
employee unless shown beyond a reasonable doubt that they are incorrect.
(b) Age shall be provided by official birth certificate,
issued by proper public authority in the area in which the employee or former
employee claims to have been born. If any employee or former employee does not
produce a birth certificate, he must produce evidence of age satisfactory to the
Board of Administration in its reasonable discretion.
(c) If any question shall arise concerning an employee, former
employee or retired employee, about the age of the employee, former employee or
retired employee, the date of the beginning of his credited service, and the
amount of the
58
pension, if any, to which he claims to be entitled, the employee, or the
officers of the Local Union on his behalf, or the former employee shall prepare
a written statement which he shall sign in duplicate of all facts and
circumstances concerning the matters and the Board of Administration shall send
one counterpart to the personnel office of the Company who shall write a
complete statement of the case and send it in duplicate to the Board of
Administration.
(d) The Board shall accept as final:
(1) Determination under the applicable labor agreement
on seniority or employee; on loss of seniority and on any other matter for which
the terms of such agreement and not the terms of the Plan provide a means of
determining.
(2) Any determination made by the appropriate government
agency as to the extent of any government administered benefit which shall be
material in administering the Pension Plan.
59
ARTICLE X
AMENDMENT AND TERMINATION
10.1 Power of Amendment and Termination.
(a) It is the intention of each Participating Company that
this Plan will be permanent. However, subject to any applicable collective
bargaining agreement, each Participating Company reserves the right to terminate
its participation in this Plan at any time by or pursuant to action or its board
of directors or other governing body. Furthermore, the Plan may be modified,
amended or terminated by joint action of the Union and the Company under the
terms of any applicable collective bargaining agreement, including retroactive
modification or amendment, if necessary or appropriate, to qualify or maintain
the Plan as a plan and trust meeting the applicable requirements of the Code and
ERISA.
(b) Each amendment to the Plan shall be binding on each
Participating Company if such Participating Company, by or pursuant to action of
its board of directors, (1) consents to such amendment at any time, or (2) fails
to object thereto within thirty days after receiving notice thereof.
(c) Any amendment or termination of the Plan shall become
effective as of the date designated by the Board of Directors. Except as
expressly provided elsewhere in the Plan, prior to the satisfaction of all
liabilities with respect to the benefits provided under this Plan, no amendment
or termination
60
shall cause any part of the monies contributed hereunder to revert to the
Participating Companies or to be diverted to any purpose other than for the
exclusive benefit of Participants and their beneficiaries.
10.2 Disposition on Termination.
(a) Upon the termination or partial termination of the Plan,
each Active Participant with respect to whom the Plan is terminating (including
each former Active Participant who has not received a distribution under Section
7.8 and has fewer than five consecutive Breaks in Service) who would not have a
nonforfeitable right to one hundred percent (100%) of his Accrued Benefit if his
employment terminated on the date of the termination or partial termination of
the Plan shall become fully vested and shall have a nonforfeitable right to his
Accrued Benefit. However, in the event of such a termination, each Participant
and beneficiary shall have recourse toward satisfaction of his nonforfeitable
right to a pension only from Plan assets or from the Pension Benefit Guaranty
Corporation, to the extent that it guarantees benefits.
(b) The amount of the Fund shall be determined and, after
providing for expenses incident to termination and liquidation, the remaining
assets thereof shall be allocated for the purpose of paying benefits
proportionately among each of the priority groups described below in the
following order of precedence:
61
(1) to provide benefits to retired Participants and
beneficiaries who began receiving benefits at least three years before the
Plan's termination (including those benefits which would have been received for
at least three years if the Participant had retired that long ago), based on
Plan provisions in effect five years prior to termination during which period
such benefit would be the least, provided that the lowest benefit in pay status
during a three-year period shall be considered the benefit in pay status for
such period;
(2) to provide all other Accrued Benefits guaranteed by
Federal law (or which would be so guaranteed but for section 4022(b)(5) or 4022B
of ERISA);
(3) to provide all other vested Accrued Benefits
(determined before application of Subsection (a) of this Section);
(4) to provide all remaining non-vested Accrued
Benefits.
(c) If the assets available for allocation under any priority
group (other than as provided in priority groups (3) and (4) are insufficient to
satisfy in full the Accrued Benefits of all Participants and beneficiaries, the
assets shall be allocated pro rata among such Participants and beneficiaries on
the basis of the Actuarial Equivalent single-sum value of their respective
benefits (as of the termination date). The foregoing payments, and payments in
the event that assets are insufficient to pay the Accrued Benefits provided in
priority groups (3) and
62
(4), will be paid in accordance with regulations prescribed by the Pension
Benefit Guaranty Corporation. The allocation of assets upon termination of the
Plan will be carried out in such a manner as to preserve the qualification of
the Plan under section 401(a) of the Code.
In the event that all Accrued Benefits described above have been
fully funded, any remaining funds shall revert to the Participating Companies in
such proportion as the Participating Companies shall determine.
10.3 Merger, Consolidation, or Transfer. In case of any merger or
consolidation with, or transfer of assets or liabilities to, any other plan, as
provided in the Code, the benefit of any Participant or beneficiary immediately
after such merger, consolidation, or transfer (if the Plan had then terminated)
shall be at least equal to the benefit such Participant or beneficiary would
have received immediately before such merger, consolidation, or transfer (if the
Plan had then terminated).
63
ARTICLE XI
GENERAL PROVISIONS
11.1 No Employment Rights. Neither the action of the Company in
establishing the Plan, nor of any Participating Company in adopting the Plan,
nor any provisions of the Plan, nor any action taken by the Company, any
Participating Company or the Company shall be construed as giving to any
Employee the right to be retained in the employ of the Company or any
Participating Company, or any right to payment except to the extent of the
benefits provided in the Plan to be paid from the Fund.
11.2 Governing Law. Except to the extent superseded by ERISA, all
questions pertaining to the validity, construction, and operation of the Plan
shall be determined in accordance with the laws of the state in which the
principal place of business of the Company is located.
11.3 Severability of Provisions. If any provision of this Plan is
determined to be void by any court of competent jurisdiction, the Plan shall
continue to operate and, for the purposes of the jurisdiction of that court
only, shall be deemed not to include the provisions determined to be void.
11.4 No Interest in Fund. No person shall have any interest in, or
right to, any part of the principal or income of the Fund, except as and to the
extent expressly provided in this Plan and in the Trust Agreement.
64
11.5 Spendthrift Clause. No benefit payable at any time under this
Plan and no interest or expectancy herein shall be anticipated, assigned, or
alienated by any Participant or beneficiary, or subject to attachment,
garnishment, levy, execution, or other legal or equitable process, except for
(1) a Federal tax levy made pursuant to section 6331 of the Code and (2) any
benefit payable pursuant to a domestic relations order which is determined to be
a qualified domestic relations order as defined in the Code. Any attempt to
alienate or assign a benefit hereunder, whether currently or hereafter payable,
shall be void.
11.6 Incapacity. If the Company deems any Participant who is
entitled to receive payments hereunder incapable of receiving or disbursing the
same by reason of Age, illness, infirmity, or incapacity of any kind, the
Company may direct the Trustee to apply such payments directly for the comfort,
support, and maintenance of such Participant, or to pay the same to any
responsible person caring for the Participant who is determined by the Company
to be qualified to receive and disburse such payments for the Participant's
benefit; and the receipt of such person shall be a complete acquittance for the
payment of the benefit. Payments pursuant to this Section shall be complete
discharge to the extent thereof of any and all liability of the Participating
Companies, the Company, the Joint Board of Administration, the Trustee, and the
Fund.
65
11.7 Withholding. The Company and the Trustee shall have the right
to withhold any and all state, local, and Federal taxes which may be withheld in
accordance with applicable law.
11.8 Missing Participants. In the event that all, or any portion, of
the distribution payable to a Participant or his beneficiary hereunder shall, at
the expiration of five (5) years after it shall become payable, remain unpaid
solely by reason of the inability of the Company, after sending a registered
letter, return receipt requested, to the last known address, and after further
diligent effort, to ascertain the whereabouts of such Participant or his
beneficiary, the amount so distributable shall be forfeited and shall be used to
reduce the cost of the Plan. In the event a Participant or beneficiary is
located after his benefit has been forfeited, such benefit shall be restored.
Executed this _____ day of ____________, 1996.
[SEAL] ROLLER BEARING COMPANY OF
AMERICA
By:
--------------------------------
President
Attest:
---------------------------
Secretary [Witness]
66
SCHEDULE A
ACTUARIAL EQUIVALENTS
The following assumptions will be used for determining Actuarially
Equivalent benefits, except as specified to the contrary in the Plan: 5-1/2%
interest and the 1984 Group Annuity Mortality Table for males. Any factors not
included herein will be determined by the Company.
Notwithstanding the foregoing, for purposes of determining
Actuarially Equivalent single-sum amounts, the following interest rates shall be
used.
(a) If the Actuarial Equivalent single-sum value of a
Participant's vested Accrued Benefit using the "applicable
interest rate" (as defined below) does not exceed $25,000, the
applicable interest rate or
(b) If the Actuarial Equivalent single-sum value of a
Participant's vested Accrued Benefit using the applicable
interest rate exceeds $25,000, one hundred twenty percent
(120%) of the applicable interest rate.
For purposes of this Schedule A, "applicable interest rate" means the interest
rate which would be used as of the date of the distribution by the Pension
Benefit Guaranty Corporation for purposes of determining the present value of a
lump sum distribution on plan termination.
A-1
SCHEDULE B
MINIMUM DISTRIBUTION INCIDENTAL BENEFIT TABLES
TABLE I
Excess of Age of employee Applicable
over Age of beneficiary percentage
- ----------------------- ----------
10 years or less ............................... 100%
11 ............................................. 96%
12 ............................................. 93%
13 ............................................. 90%
14 ............................................. 87%
15 ............................................. 84%
16 ............................................. 82%
17 ............................................. 79%
18 ............................................. 77%
19 ............................................. 75%
20 ............................................. 73%
21 ............................................. 72%
22 ............................................. 70%
23 ............................................. 68%
24 ............................................. 67%
25 ............................................. 66%
26 ............................................. 64%
27 ............................................. 63%
28 ............................................. 62%
29 ............................................. 61%
30 ............................................. 60%
31 ............................................. 59%
32 ............................................. 59%
33 ............................................. 58%
34 ............................................. 57%
35 ............................................. 56%
36 ............................................. 56%
37 ............................................. 55%
38 ............................................. 55%
39 ............................................. 54%
40 ............................................. 54%
41 ............................................. 53%
42 ............................................. 53%
43 ............................................. 53%
44 and greater ................................. 52%
Sch. B-1
TABLE II
Age of Participant
in calendar year
preceding Required Maximum Guaranteed
Beginning Date Payments Remaining
- ------------------ ------------------
70 .................................................... 26.2
71 .................................................... 25.3
72 .................................................... 24.4
73 .................................................... 23.5
74 .................................................... 22.7
75 .................................................... 21.8
76 .................................................... 20.9
77 .................................................... 20.1
78 .................................................... 19.2
79 .................................................... 18.4
80 .................................................... 17.6
81 .................................................... 16.8
82 .................................................... 16.0
83 .................................................... 15.3
84 .................................................... 14.5
85 .................................................... 13.8
86 .................................................... 13.1
87 .................................................... 12.4
88 .................................................... 11.8
89 .................................................... 11.1
90 .................................................... 10.5
91 .................................................... 9.9
92 .................................................... 9.4
93 .................................................... 8.8
94 .................................................... 8.3
95 .................................................... 7.8
96 .................................................... 7.3
97 .................................................... 6.9
98 .................................................... 6.5
99 .................................................... 6.1
100 .................................................... 5.7
101 .................................................... 5.3
102 .................................................... 5.0
103 .................................................... 4.7
104 .................................................... 4.4
105 .................................................... 4.1
106 .................................................... 3.8
107 .................................................... 3.6
108 .................................................... 3.4
109 .................................................... 3.2
110 .................................................... 2.8
111 .................................................... 2.6
112 .................................................... 2.4
113 .................................................... 2.0
114 .................................................... 2.0
115 and older .......................................... 1.8
Sch. B-2