Exhibit 10.10
Amendment Number Three to NBT Bancorp Inc. Defined Benefit Pension Plan
effective January 1, 2002.
Amendment #3 to
NBT BANCORP INC.
DEFINED BENEFIT PENSION PLAN
AMENDMENT OF THE PLAN FOR EGTRRA,
REVENUE RULING 2001-62 AND REVENUE PROCEDURE 2002-29
Pursuant to Article 14.1 of the NBT Bancorp Inc. Defined Benefit Pension Plan
(the "Plan") as amended and restated effective January 1, 2000, which provides
for the amendment thereof when necessary, the Plan is hereby for EGTRRA, Revenue
Ruling 2001-62 and Revenue Procedure 2002-29 as follows:
ARTICLE I
PREAMBLE
1.1 Adoption and effective date of amendment. This amendment of the Plan is
adopted to reflect certain provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA), the model amendment of Revenue Ruling
2001-62 and the model amendment of Revenue Procedure 2002-29. This amendment is
intended as good faith compliance with the requirements of EGTRRA, the model
amendment of Revenue Ruling 2001-62 and the model amendment of Revenue Procedure
2002-29 and is to be construed in accordance with EGTRRA, the model amendment of
Revenue Ruling 2001-62 and the model amendment of Revenue Procedure 2002-29 and
guidance issued thereunder. Except as otherwise provided, this amendment shall
be effective as of the first day of the first Plan Year beginning after December
31, 2001.
1.2 Supersession of inconsistent provisions. This amendment shall supersede
the provisions of the Plan to the extent those provisions are inconsistent with
the provisions of this amendment.
1.3 Application to Appendix A Plan. This amendment shall also apply to the
provisions of the Plan known as the Appendix A Plan, which portion of the Plan
governs the benefits of certain Participants who elected to remain covered under
such provisions prior to the Plan's conversion to an Account Balance Plan.
ARTICLE II
LIMITATIONS ON BENEFITS
2.1 Effective date. This Article shall be effective for "limitation years"
ending after December 31, 2001.
2.2 Effect on Participants. Benefit increases resulting from the increase
in the limitations of Code Section 415(b) will be provided to all Employees
participating in the Plan who have one Hour of Service on or after the first day
of the first "limitation year" ending after December 31, 2001.
2.3 Definitions.
(a) Defined benefit dollar limitation. The defined benefit dollar
limitation is $160,000, as adjusted, effective January 1 of each year,
under Code Section 415(d) in such manner as the Secretary shall prescribe,
and payable in the form of a straight life annuity. A limitation as
adjusted under Code Section 415(d) will apply to "limitation years" ending
with or within the calendar year for which the adjustment applies.
(b) Maximum permissible benefit. The maximum permissible benefit is
the lesser of the defined benefit dollar limitation or the defined benefit
compensation limitation (both adjusted where required, as provided in (1)
and, if applicable, in (2) or (3) below).
(1) If the Participant has fewer than 10 years of participation in
the Plan, the defined benefit dollar limitation shall be multiplied by
a fraction, (i) the numerator of which is the number of years (or part
thereof) of participation in the Plan and (ii) the denominator of
which is 10. In the case of a Participant who has fewer than 10 years
of service with the employer, the defined benefit compensation
limitation shall be multiplied by a fraction, (i) the numerator of
which is the number of years (or part thereof) of service with the
employer and (ii) the denominator of which is 10.
(2) If the benefit of a Participant begins prior to age 62, the
defined benefit dollar limitation applicable to the Participant at
such earlier age is an annual benefit payable in the form of a
straight life annuity beginning at the earlier age that is the
actuarial equivalent of the defined benefit dollar limitation
applicable to the Participant at age 62 (adjusted under (1) above, if
required). The defined benefit dollar limitation applicable at an age
prior to age 62 is determined as the lesser of (i) the actuarial
equivalent (at such age) of the defined benefit dollar limitation
computed using the interest rate and mortality table (or other tabular
factor) specified in Exhibit I of the Plan or Section 2.03 of the
Appendix A Plan, as
applicable, and (ii) the actuarial equivalent (at such age) of the
defined benefit dollar limitation computed using a 5 percent interest
rate and the applicable mortality table as defined in Exhibit I of the
Plan or Section 2.03 of the Appendix A Plan, as applicable. Any
decrease in the defined benefit dollar limitation determined in
accordance with this paragraph (2) shall not reflect a mortality
decrement if benefits are not forfeited upon the death of the
Participant. If any benefits are forfeited upon death, the full
mortality decrement is taken into account.
(3) If the benefit of a Participant begins after the Participant
attains age 65, the defined benefit dollar limitation applicable to
the Participant at the later age is the annual benefit payable in the
form of a straight life annuity beginning at the later age that is
actuarially equivalent to the defined benefit dollar limitation
applicable to the Participant at age 65 (adjusted under (1) above, if
required). The actuarial equivalent of the defined benefit dollar
limitation applicable at an age after age 65 is determined as (i) the
lesser of the actuarial equivalent (at such age) of the defined
benefit dollar limitation computed using the interest rate and
mortality table (or other tabular factor) specified in Exhibit I of
the Plan or Section 2.03 of the Appendix A Plan, as applicable, and
(ii) the actuarial equivalent (at such age) of the defined benefit
dollar limitation computed using a 5 percent interest rate assumption
and the applicable mortality table as defined in Exhibit I of the Plan
or Section 2.03 of the Appendix A Plan, as applicable. For these
purposes, mortality between age 65 and the age at which benefits
commence shall be ignored.
ARTICLE III
MODIFICATION OF TOP-HEAVY RULES
3.1 Effective date. This Article shall apply for purposes of determining
whether the Plan is a Top Heavy plan under Code Section 416(g) for Plan Years
beginning after December 31, 2001, and whether the Plan satisfies the minimum
benefits requirements of Code Section 416(c) for such years. This Article amends
Article XV of the Plan and Article XV of the Appendix A Plan.
3.2 Determination of top-heavy status.
(a) Key Employee. Key Employee means any Employee or former Employee
(including any deceased Employee) who at any time during the Plan Year that
includes the determination date was an officer of the Employer having
annual Compensation greater than $130,000 (as adjusted under Code Section
416(i)(1) for Plan Years beginning after December 31, 2002), a 5-percent
owner of the Employer, or a 1-percent owner of the Employer having annual
Compensation of more than $150,000. For this purpose, annual Compensation
means compensation within the meaning of Code Section 415(c)(3). The
determination of who is a Key Employee will be made in accordance with Code
Section 416(i)(1) and the applicable regulations and other guidance of
general applicability issued thereunder.
(b) Determination of present values and amounts. This section (b)
shall apply for purposes of determining the present values of accrued
benefits and the amounts of account balances of Employees as of the
determination date.
(1) Distributions during year ending on the determination date. The
present values of accrued benefits and the amounts of account balances
of an Employee as of the determination date shall be increased by the
distributions made with respect to the Employee under the Plan and any
plan aggregated with the Plan under Code Section 416(g)(2) during the
1-year period ending on the determination date. The preceding sentence
shall also apply to distributions under a terminated plan which, had
it not been terminated, would have been aggregated with the Plan under
Code Section 416(g)(2)(A)(i). In the case of a distribution made for a
reason other than separation from service, death, or disability, this
provision shall be applied by substituting "5-year period" for "1-year
period."
(2) Employees not performing services during year ending on the
determination date. The accrued benefits and accounts of any
individual who has not performed services for the Employer during the
1-year period ending on the determination date shall not be taken into
account.
3.3 Minimum benefits. For purposes of satisfying the minimum benefit
requirements of Code Section 416(c)(1) and the Plan, in determining years of
service with the Employer, any service with the Employer shall be disregarded to
the extent that such service occurs during a Plan Year when the Plan benefits
(within the meaning of Code Section 410(b)) no Key Employee or former Key
Employee.
ARTICLE IV
DIRECT ROLLOVERS OF PLAN DISTRIBUTIONS
4.1 Effective date. This Article shall apply to distributions made after
December 31, 2001.
4.2 Modification of definition of eligible retirement plan. For purposes of
the direct rollover provisions in Section 7.9(b) of the Plan and Section
9.08(b)(ii) of the Appendix A Plan, an eligible retirement plan shall also mean
an annuity contract described in Code Section 403(b) and an eligible plan under
Code Section 457(b) which is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or political subdivision of a
state and which agrees to separately account for amounts transferred into such
plan from this Plan. The definition of eligible retirement plan shall also apply
in the case of a distribution to a surviving spouse, or to a spouse or former
spouse who is the alternate payee under a qualified domestic relation order, as
defined in Code Section 414(p).
ARTICLE V
MODEL AMENDMENT UNDER REVENUE RULING 2001-62
APPLICABLE MORTALITY TABLE
5.1 Effective date. This Article shall apply to distributions with Annuity
Starting Dates on or after January 1, 2003.
5.2 Notwithstanding any other Plan provisions to the contrary, the
Applicable Mortality Table used for purposes of adjusting any benefit or
limitation under Code Section 415(b)(2)(B), (C), or (D) as set forth in Section
9.1 of the Plan or Section 12.02 of the Appendix A Plan, as applicable, and the
Applicable Mortality Table used for purposes of satisfying the requirements of
Code Section 417(e) as set forth in Exhibit I of the Plan or Section 2.03 of the
Appendix A Plan, as applicable, is the table prescribed in Rev. Rul. 2001-62.
5.3 For any distribution with an Annuity Starting Date on or after the
effective date of this Article and before the adoption date of this Article, if
application of the amendment as of the Annuity Starting Date would have caused a
reduction in the amount of any distribution, such reduction is not reflected in
any payments made before the adoption date of this Article. However, the amount
of any such reduction that is required under Code Section 415(b)(2)(B) must be
reflected actuarially over any remaining payments to the Participant.
ARTICLE VI
MODEL AMENDMENT UNDER REVENUE PROCEDURE 2002-29
MINIMUM DISTRIBUTION REQUIREMENTS
6.1 General Rules.
(a) Effective Date. The provisions of this Article will apply for
purposes of determining required minimum distributions for calendar years
beginning with the 2003 calendar year.
(b) Coordination with Minimum Distribution Requirements Previously in
Effect. If the total amount of 2002 required minimum distributions under
the Plan made to the distributee prior to the effective date of this
Article equals or exceeds the required minimum distributions determined
under this Article, then no additional distributions will be required to be
made for 2002 on or after such date to the distributee. If the total amount
of 2002 required minimum distributions under the Plan made to the
distributee prior to the effective date of this Article is less than the
amount determined under this Article, then required minimum distributions
for 2002 on and after such date will be determined so that the total amount
of required minimum distributions for 2002 made to the distributee will be
the amount determined under this Article.
(c) Precedence. The requirements of this Article will take precedence over
any inconsistent provisions of the Plan.
(d) Requirements of Treasury Regulations Incorporated. All distributions
required under this Article will be determined and made in accordance with
the Treasury regulations under Code Section 401(a)(9).6.1(d) p.13
(e) TEFRA Section 242(b)(2) Elections. Notwithstanding the other
provisions of this Article, other than Section 6.1(d), distributions may be
made under a designation made before January 1, 1984, in accordance with
section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA)
and the provisions of the Plan that relate to section 242(b)(2) of TEFRA.
6.2 Time and Manner of Distribution.
(a) Required Beginning Date. The Participant's entire interest will be
distributed, or begin to be distributed, to the Participant no later than
the Participant's required beginning date.
(b) Death of Participant Before Distributions Begin. If the
Participant dies before distributions begin, the Participant's
Pre-Retirement Survivor Annuity interest will be distributed, or begin to
be distributed, no later than as follows:6.2(b) p.13
(1) If the Participant's surviving spouse is the Participant's sole
designated Beneficiary, then distributions to the surviving spouse
will begin by December 31st of the calendar year immediately following
the calendar year in which the Participant died, or by December 31st
of the calendar year in which the Participant would have attained age
70 1/2, if later.6.2(b)(1) p.13
(2) If the Participant's surviving spouse is the Participant's sole
designated Beneficiary and the surviving spouse dies after the
Participant but before distributions to the surviving spouse begin,
this Section 6.2(b) will not apply.6.2(b)(2) p.13
For purposes of this Section 6.2(b) and Section 6.5,
distributions are considered to begin on the Participant's required
beginning date (or, if Section 6.2(b)(2) applies, the date distributions
are required to begin to the surviving spouse under Section 6.2(b)(1)). If
annuity payments irrevocably commence to the Participant before the
Participant's required beginning date (or to the Participant's surviving
spouse before the date distributions are required to begin to the surviving
spouse under Section 6.2(b)(1)), the date distributions are considered to
begin is the date distributions actually commence.
(c) Form of Distribution. Unless the Participant's interest is
distributed in the form of an annuity purchased from an insurance company
or in a single sum on or before the required beginning date, as of the
first distribution calendar year distributions will be made in accordance
with Sections 6.3, 6.4 and 6.5 of this Article. If the Participant's
interest is distributed in the form of an annuity purchased from an
insurance company, distributions thereunder will be made in accordance with
the requirements of Code Section 401(a)(9) and the Treasury regulations.
Any part of the Participant's interest which is in the form of an
individual account described in Code Section 414(k) will be distributed in
a manner satisfying the requirements of Code Section 401(a)(9) and the
Treasury regulations that apply to individual accounts.
6.3 Determination of Amount to be Distributed Each Year.6.3 p.14
(a) General Annuity Requirements. If the Participant's interest is paid in
the form of annuity distributions under the Plan, payments under the
annuity will satisfy the following requirements:
(1) the annuity distributions will be paid in periodic payments made
at intervals not longer than one year;
(2) the distribution period will be over a life (or lives) or over a
period certain not longer than the period described in Section 6.4 or
6.5;
(3) once payments have begun over a period certain, the period
certain will not be changed even if the period certain is shorter than
the maximum permitted;
(4) payments will either be nonincreasing or increase only as
follows:
(i) by an annual percentage increase that does not exceed the
annual percentage increase in a cost-of-living index that is
based on prices of all items and issued by the Bureau of Labor
Statistics;
(ii) to the extent of the reduction in the amount of the
Participant's payments to provide for a survivor benefit upon
death, but only if the Beneficiary whose life was being used to
determine the distribution period described in Section 6.4 dies
or is no longer the Participant's Beneficiary pursuant to a
qualified domestic relations order within the meaning of Code
Section 414(p);
(iii) to provide cash refunds of Employee contributions upon the
Participant's death; or
(iv) to pay increased benefits that result from a Plan amendment.
(b) Amount Required to be Distributed by Required Beginning Date. The
amount that must be distributed on or before the Participant's required
beginning date (or, if the Participant dies before distributions begin, the
date distributions are required to
begin under Section 6.2(b)(1)) is the payment that is required for one
payment interval. The second payment need not be made until the end of the
next payment interval even if that payment interval ends in the next
calendar year. Payment intervals are the periods for which payments are
received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the
Participant's benefit accruals as of the last day of the first distribution
calendar year will be included in the calculation of the amount of the
annuity payments for payment intervals ending on or after the Participant's
required beginning date.
(c) Additional Accruals After First Distribution Calendar Year. Any
additional benefits accruing to the Participant in a calendar year after
the first distribution calendar year will be distributed beginning with the
first payment interval ending in the calendar year immediately following
the calendar year in which such amount accrues.
6.4 Requirements For Annuity Distributions That Commence During
Participant's Lifetime.6.4 p.15
(a) Joint Life Annuities Where the Beneficiary Is Not the
Participant's Spouse. If the Participant's interest is being distributed in
the form of a joint and survivor annuity for the joint lives of the
Participant and a nonspouse Beneficiary, annuity payments to be made on or
after the Participant's required beginning date to the designated
Beneficiary after the Participant's death must not at any time exceed the
applicable percentage of the annuity payment for such period that would
have been payable to the Participant using the table set forth in Q&A-2 of
section 1.401(a)(9)-6T of the Treasury regulations. If the form of
distribution combines a joint and survivor annuity for the joint lives of
the Participant and a nonspouse Beneficiary and a period certain annuity,
the requirement in the preceding sentence will apply to annuity payments to
be made to the designated Beneficiary after the expiration of the period
certain.
(b) Period Certain Annuities. Unless the Participant's spouse is the
sole designated Beneficiary and the form of distribution is a period
certain and no life annuity, the period certain for an annuity distribution
commencing during the Participant's lifetime may not exceed the applicable
distribution period for the Participant under the Uniform Lifetime Table
set forth in section 1.401(a)(9)-9 of the Treasury regulations for the
calendar year that contains the Annuity Starting Date. If the Annuity
Starting Date precedes the year in which the Participant reaches age 70,
the applicable distribution period for the Participant is the distribution
period for age 70 under the Uniform Lifetime Table set forth in section
1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the
age of the Participant as of the Participant's birthday in the year that
contains the annuity starting date. If the Participant's spouse is the
Participant's sole designated Beneficiary and the form of distribution is a
period certain and no life annuity, the period certain may not exceed the
longer of the Participant's applicable distribution period, as determined
under this Section 6.4(b), or the joint life and last survivor expectancy
of the Participant and the Participant's spouse as determined under the
Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the
Treasury regulations, using the Participant's and spouse's attained ages as
of the Participant's and spouse's birthdays in the calendar year that
contains the Annuity Starting Date.
6.5 Requirements For Minimum Distributions Where Participant Dies Before
Date Distributions Begin.
(a) Participant Survived by Designated Beneficiary. If the
Participant dies before the date distribution of his or her interest begins
and there is a designated Beneficiary, the Participant's Pre-Retirement
Survivor Annuity interest will be distributed, beginning no later than the
time described in Section 6.2(b), over the life of the designated
Beneficiary or over a period certain not exceeding:
(1) unless the Annuity Starting Date is before the first distribution
calendar year, the life expectancy of the designated Beneficiary
determined using the Beneficiary's age as of the Beneficiary's
birthday in the calendar year immediately following the calendar year
of the Participant's death; or
(2) if the Annuity Starting Date is before the first distribution
calendar year, the life expectancy of the designated Beneficiary
determined using the Beneficiary's age as of the Beneficiary's
birthday in the calendar year that contains the Annuity Starting Date.
(b) Death of Surviving Spouse Before Distributions to Surviving
Spouse Begin. If the Participant dies before the date distribution of his
or her interest begins, the Participant's surviving spouse is the
Participant's sole designated Beneficiary, and the surviving spouse dies
before distributions to the surviving spouse begin, this Section 6.5 will
not apply.
6.6 Definitions.
(a) Designated Beneficiary. The individual who is designated as the
Beneficiary under Section 1.8 of the Plan or Section 2.10 of the Appendix A
Plan and is the designated Beneficiary under Code Section 401(a)(9) and
section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.
(b) Distribution calendar year. A calendar year for which a minimum
distribution is required. For distributions beginning before the
Participant's death, the first distribution calendar year is the calendar
year immediately preceding the calendar year which contains the
Participant's required beginning date. For distributions beginning after
the Participant's death, the first distribution calendar year is the
calendar year in which distributions are required to begin pursuant to
Section 6.2(b).
(c) Life expectancy. Life expectancy as computed by use of the Single
Life Table in section 1.401(a)(9)-9 of the Treasury regulations.
(d) Required beginning date. The date specified in Section 7.8 of the
Plan and 9.03 of the Appendix A Plan.
The Employer consents to the foregoing amendment, and except as amended herein,
the Plan is hereby ratified and confirmed.
NBT Bancorp Inc.
By /S/ Thomas Delduchetto
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EMPLOYER
Date 10/28/02
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