EXHIBIT 10.88
YOUR EMPLOYEE
BENEFIT PLAN
PNM RESOURCES, INC.
LONG TERM DISABILITY
ALL EXECUTIVES
GROUP NUMBER: 34505
EFFECTIVE DATE: JANUARY 1, 2003
Policy excerpt:
Group Policy No.: 34505-G
MetLife(R)
Metropolitan Life Insurance Company
One Madison Avenue, New York, New York 10010-3690
CERTIFICATE OF INSURANCE
for the Employees of
PNM Resources, Inc.
(called the Employer)
This is your Certificate of insurance for long Term Disability Insurance as long
as you are insured under This Plan. The Group Policy and this Certificate may be
changed or canceled according to the terms, conditions and provisions of the
Group Policy. This Certificate describes the benefits under the Plan in effect
as of January 1, 2003. Any prior Certificate relating to the coverage set forth
herein is void.
MetLife in its discretion has authority to interpret the terms, conditions, and
provisions of the entire contract. This includes the Group Policy, Certificate
and any Amendments.
The Group policy is delivered in and administered according to the laws of the
governing jurisdiction.
Whenever a reference to "you" or "your" is made in this Certificate of
Insurance, it means the covered Employee. Reference to "we", "us" or "our" means
MetLife. Reference to "This Plan" means that part of the Employer's plan of
employee benefits that is insured by Met Life.
/s/ Robert H. Benmosche
--------------------------------------------------
Robert H. Benmosche
Chairman, President and Chief Executive Officer
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PLAN HIGHLIGHTS
This Plan Highlights section is a summary of your Long Term Disability Benefits
and provisions. See the rest of your Certificate for more information.
It is important to read the rest of your Certificate. It describes your benefits
as well as any exclusions and limitations that apply to these benefits. Please
read it carefully. You should talk with your Employer if you have any questions.
You will notice that some of the terms used in your Certificate begin with
capital letters. These terms have special meanings. They are explained in this
Certificate.
EMPLOYEE ELIGIBILITY
Eligible Employee: All officers working at least 32 hours each week. However, if
you do not have regular work hours you will be an Eligible Employee if you have
worked at least an average of 32 hours a week during the preceding 12 calendar
months (or during your period of employment if less than 12 months).
Eligibility Waiting Period:
Active Employees on and after January 1, 2003: 6 months of continuous
service as an Employee
Eligibility Date: January 1, 2003 or the date you complete the Eligibility
Waiting Period, whichever is later.
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LONG TERM DISABILITY BENEFITS
Monthly Benefit: 66.67% of the first $25,000 of your Predisability Earnings,
reduced by Other Income Benefits. Other Income Benefits are described in
Section B. of Long Term Disability Benefits.
Maximum Monthly Benefit: $15,000
Minimum Monthly Benefit: $100. The Minimum Monthly Benefit will not
apply if you are in an Overpayment situation or are receiving income from
employment.
Elimination Period: 90 days of continuous Disability
Maximum Benefit Duration: The duration shown below:
Age on Date Maximum Benefit
Disability Starts Duration
----------------- --------
Less than 60 To age 65
60 60 months
61 48 months
62 42 months
63 36 months
64 30 months
65 24 months
66 21 months
67 18 months
68 15 months
69 and over 12 months
Work Incentive:
Work while Disabled: No offset for employment earnings during the first
24 months after you have satisfied your Elimination period. However,
your Monthly Benefit may be reduced if that total income you are
receiving (including Rehabilitation Incentive and Family Care Expenses)
exceeds 100% of your Predisability Earnings or Indexed Predisability
Earnings.
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Rehabilitation Incentive: Your Monthly Benefit, before reduction
for Other Income Benefits, is increased by 10% while participating
in an approved Rehabilitation Program.
Family Care Expenses: While participating in an approved Rehabilitation
Program, up to $250 per month incurred for Eligible Family Care
Expenses for each Eligible Family Member during the first 24 months
after you have satisfied the Elimination Period.
Survivors Benefit: A lump sum equal to 3 times the Monthly Benefit before
reductions for Other Income Benefits.
LIMITATIONS
Limitation for Pre-existing Conditions: begins 12 months after
your Effective Date of coverage.
Limitation For Disabilities Due to Particular Conditions
Limitation for Disability due to (i) Mental or Nervous Disorders or
Diseases; or (ii) Neuromusculoskeletal and Soft Tissue Disorder; or
(iii) Chronic Fatigue Syndrome:
24 Monthly Benefits in your lifetime, or the Maximum Benefit Duration,
whichever is less. Benefits may be paid beyond 24 months as described
in the provision, subject to certain requirements.
Limitation for Drug, Alcohol or Substance Abuse or Dependence:
One period of Disability in your lifetime for up to: 24 Monthly
Benefits; your successful completion of an approved rehabilitative
program; your ceasing or refusing the participate in a rehabilitative
program; or the Maximum Benefit Duration; whichever is less.
CONTRIBUTIONS
Your Long Term Disability Benefits are paid for by your Employer.
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