EXHIBIT 10.52
PNM RESOURCES, INC.
EXECUTIVE SPENDING ACCOUNT PLAN
Effective January 1, 2004
TABLE OF CONTENTS
Page
INTRODUCTION............................................................... 1
DEFINED TERMS.............................................................. 2
GENERAL INFORMATION ABOUT THE PLAN......................................... 5
ELIGIBILITY AND PARTICIPATION REQUIREMENTS................................. 6
SUMMARY OF PLAN BENEFITS................................................... 9
HOW THE PLAN IS ADMINISTERED............................................... 10
CLAIMS PROCEDURES.......................................................... 11
AMENDMENT OR TERMINATION OF THE PLAN....................................... 14
NO CONTRACT OF EMPLOYMENT.................................................. 14
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ARTICLE 1
INTRODUCTION
Public Service Company of New Mexico ("PNM") adopted the "Amended and Restated
Medical Reimbursement Plan of Public Service Company of New Mexico" (the "MERP")
effective January 1, 1980. The MERP was amended and restated in its entirety
effective September 1, 1991 at which time it was renamed the "Second Restated
and Amended Public Service Company of New Mexico Executive Medical Plan."
Effective November 30, 2002, PNM transferred sponsorship of the MERP to PNM
Resources, Inc. ("PNM Resources"). Effective January 1, 2002, PNM Resources
initiated an Executive Spending Account (the "ESA").
From March 1, 2001 through April 30, 2002, the MERP was fully insured and the
benefits were provided by Connecticut General Life Insurance Company ("CIGNA").
Effective May 1, 2002, a decision was made that benefits under the MERP should
again be provided on a self-funded basis. The benefits provided under the ESA
are, and always have been, self-funded.
Effective December 1, 2002, PNM Resources merged the MERP with and into the ESA
and amended and restated both plans in the form of a combined program known as
the "PNM Resources, Inc. Executive Spending Account Plan" (the "Plan").
Effective February 15, 2003, PNM Resources amended and restated the Plan in its
entirety in order to: (1) eliminate the Tier A and Tier B Benefit Limits, and
instead provide for one overall Benefit Limit; (2) eliminate the gross-up
feature that applied to Tier A Covered Expenses; (3) increase the overall
Benefit Limit in order to replace the gross-up feature that applied to Tier A;
and (4) allow long-term care insurance premiums for the Participant and certain
members of the Participant's family to be reimbursed under the Plan.
Effective January 1, 2004, PNM Resources, by this document, intends to amend and
restate the Plan in its entirety in order to make certain provisions of the Plan
more consistent with the other benefits plans and programs sponsored by the
Company.
PNM Resources maintains the Plan to provide a select group of Company executives
with additional remuneration in the form of reimbursements for: (i) medical
benefits beyond the medical benefits available to the executives under any
medical insurance under which they are covered; and (2) other expenses such as
income tax preparation costs, costs for estate planning and financial counseling
services, and insurance premiums for health, accident, disability, life,
dependent life, long-term care, home, auto and personal umbrella insurance. The
benefits provided under the Plan are paid from the general assets of PNM
Resources and those of its affiliates that have adopted the Plan with each
Company bearing the costs and expenses of providing benefits accrued by its
Employee-Participants during periods while they are employed by that Company.
Such costs and expenses are allocated among the Companies in accordance with (i)
agreements entered into between PNM Resources and any participating affiliate,
or (ii) in the absence of such an agreement, procedures adopted by PNM
Resources. Because benefits are paid from the general assets of the Company,
pursuant to Department of Labor regulation Section 2520.104-24 the Plan is
exempt from most of the reporting and disclosure requirements of Part 1 of Title
I of ERISA, including the requirement to provide a summary plan description and
the requirement to file a Form 5500 - Annual Report.
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ARTICLE 2
DEFINED TERMS
Capitalized terms used in the Plan have the following meanings:
Benefit Limit: The maximum amount for which you and your
Dependents, together, may seek reimbursement each
Paycheck Year for Covered Expenses. Shortly before
each Paycheck Year, you will be notified of your
Benefit Limit for the Paycheck Year. Any portion of
the Benefit Limit that remains unused at the end of a
Paycheck Year may not be carried over to the
following Paycheck Year.
Prior to February 15, 2003, the Plan had Tier A and
Tier B Benefit Limits. Effective February 15, 2003,
the Tier A and Tier B Benefit Limits are eliminated
and replaced with one overall Benefit Limit. Due to
the elimination of the Tier A Benefit Limit and the
gross-up feature that applied to that limit, the
Benefit Limit for each Participant who is a
vice-president will be increased by $2,000 and the
Benefit Limit for all other Participants will be
increased by $3,000. The Benefit Limit increase
described in the preceding sentence is effective
February 15, 2003. On or shortly thereafter, each
Participant will be notified of his or her new
overall Benefit Limit, which will include the $2,000
or $3,000 increase, as applicable.
Benefits Department: The organizational unit of the Company responsible
for administering benefit programs.
Code: The Internal Revenue Code of 1986, as amended.
Company: PNM Resources, Inc. ("PNM Resources") and any
affiliate that has adopted the Plan with the approval
of PNM Resources. Any affiliate that adopted the Plan
prior to the assumption of the sponsorship of the
Plan by PNM Resources, including Public Service
Company of New Mexico, shall continue to participate
in the Plan.
Covered Expense: Expenses incurred by the Participant or a
Dependent during the current or preceding Paycheck
Year, while covered by the Plan, for any of the
following: (1) medical care as defined in Section
213(d) of the Code to the extent that no benefits are
payable for such medical care under the Participant's
Medical Insurance (by way of example, and not
limitation, medical care, dental care, vision care,
premiums for medical care and qualified long-term
care (whether paid on a pre-tax or after-tax basis),
transportation primarily for and essential to medical
care, and amounts paid for lodging (not lavish or
extraordinary under the circumstances) while away
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from home primarily for and essential to medical care
would all be treated as Covered Expenses under this
item (1)); (2) income tax preparation; (3) estate
planning (including preparation of wills and trusts);
(4) financial counseling, but excluding brokerage
fees or commissions; (5) financial management
services (this would include, for example, the
services provided by a management firm that manages
your real estate investments); (6) premiums covering
the Participant and his or her Dependents for
accident, disability, life, dependent life, and/or
supplemental insurance (similar to AFLAC), whether
paid for by the Participant as a private party or
deducted from the Participant's salary under a PNM
Resources benefit program; (7) premiums for home,
auto or personal liability umbrella insurance; or (8)
premiums covering the Participant or Family Members
for long-term care insurance, whether paid for by the
Participant as a private party or deducted from the
Participant's salary under a PNM Resources benefit
program. An expense that qualifies as a Covered
Expense pursuant to item (1) above, is "incurred"
when the underlying medical care is provided,
regardless of when you are billed or pay for such
medical care, unless the medical care for which you
are seeking reimbursement is for insurance premiums
covering medical care or qualified long-term care, in
which case such expense is "incurred" on the date on
which you are billed for the premium. An expense that
qualifies as a Covered Expense pursuant to items (2),
(3), (4), (5), (6), (7) or (8) above, is "incurred"
as of the date on which you are billed for the
expense or premium.
Dependent: A Participant's "Dependents" as defined by the
Medical Plan who are eligible to be enrolled in the
Medical Plan regardless of whether they are actually
enrolled in that plan.
Effective Date: January 1, 2004.
Employee: A full-time employee of the Company scheduled to
work at least 32 hours per week, or a regular
part-time or job share employee scheduled to work at
least 20 hours per week. Employee does not include:
leased employees or workers; independent contractors,
consultants or similar self-employed workers;
temporary employees or workers; interns; co-op
employees or workers; seasonal employees or workers,
other contingent workers, or any employee of any
affiliate or related entity unless specifically
approved by the Company.
ERISA: The Employee Retirement Income Security Act of 1974,
as amended.
Family Members: Any of the following individuals between the ages of
18 and 80:
o the legally married spouse of a Participant;
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o the natural, adoptive or
step-parents/grandparents of a Participant
and their spouse;
o the natural, adoptive or step-siblings of a
Participant and their spouse;
o the natural, adoptive or stepchildren of a
Participant and their spouse.
HIPAA: The Health Insurance Portability and Accountability
Act of 1996, as amended.
Medical Insurance: Medical insurance coverage under any of
the following: (1) The PNM Resources, Inc. Benefits
My Way Plan, Program 2, Medical Plan, effective
January 1, 2003, as amended from time to time, or any
successor plan; (2) any other employer maintained
medical plan covering the Participant and his or her
Dependants; and (3) any other medical insurance
covering the participant and/or his or her
Dependents.
NMHPA: The Newborns' and Mothers' Health Protection Act of
1996, as amended.
Participant: An Employee who is eligible to participate in this
Plan pursuant to Article 4.
Paycheck Year: The Paycheck Year commences on the third
Saturday before the final paycheck for a calendar
year is paid and ends on the third Friday before the
final paycheck for the next calendar year is paid.
For example, the final paycheck for the 2003 calendar
year will be issued on Wednesday, December 24, 2003.
This means that the 2004 Paycheck Year will commence
on December 6, 2003 and end on December 3, 2004.
Plan: The PNM Resources, Inc. Executive Spending Account
Plan, as set forth in this document.
Plan Administrator: PNM Resources, Inc. Benefits Governance
Committee or other such person or committee
designated by the Company as the Plan Administrator.
Plan Sponsor: PNM Resources.
PNM Resources: PNM Resources, Inc.
Qualifying Event: A Participant's termination of employment,
reduction in hours, divorce, legal separation, death
or becoming eligible for Medicare, and a child
ceasing to meet the Plan's definition of Dependent.
WHCRA: The Women's Health and Cancer Rights Act of 1998, as
amended.
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ARTICLE 3
GENERAL INFORMATION ABOUT THE PLAN
Plan Name: PNM Resources, Inc. Executive Spending Account Plan.
Plan Year: January 1 through December 31
Plan Number: 601
Original Effective Date: The MERP was originally effective January 1, 1980.
The ESA was first effective January 1, 2002.
Funding Medium: The Plan is self-funded. This means that the
Company pays benefits out of its general assets.
Participants are not required to pay a premium in
order to participate in the Plan.
Plan Sponsor: PNM Resources, Inc.
Alvarado Square, Mail Stop 3101
Albuquerque, NM 87158
(505) 241-2700
Plan Sponsor's Employer 85-0468296
Identification Number:
Plan Administrator & PNM Resources, Inc.
Named Fiduciary: Alvarado Square, Mail Stop 3101
Albuquerque, NM 87158
(505) 241-2700
Attention: Benefits Governance Committee
The Plan is administered by the Benefits Governance
Committee or other such person or committee
designated by the Company as the Plan Administrator.
Agent for Service of Patrick Ortiz, General Counsel
Legal Process: Public Service Company of New Mexico
Alvarado Square, Mail Stop 2822
Albuquerque, NM 87158
(505) 241-2700
Applicable Law: The validity, interpretation, construction and
performance of the Plan shall be governed by the laws
of the State of New Mexico, unless preempted by
ERISA.
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ARTICLE 4
ELIGIBILITY AND PARTICIPATION REQUIREMENTS
Eligibility: You are eligible to participate in the Plan if
you are an Employee of the Company and you are a
vice-president or higher-ranking officer of the
Company. Your spouse and "Dependents," as defined
in Article 2 are eligible to participate in the
Plan if you are.
Termination of Your participation in the Plan terminate as of
Participation: the earliest of: (1) the date you terminate
employment with the Company; (2) the date you cease
to be a vice-president or higher ranking officer of
the Company; (3) the date your coverage under all
other Medical Insurance ceases; or (4) the date the
Plan is terminated.
Coverage for your Dependents (including your
spouse) stops when your coverage stops. Their
coverage will also stop if they cease being your
Dependent.
COBRA: If coverage for you or your Dependents (including
your spouse) ceases because of certain "Qualifying
Events," specified in a federal law called COBRA,
then you or your Dependents may have the right to
purchase continuing coverage under the Plan for a
limited period of time. As permitted by law, the
Company may impose an administrative fee (usually
2%) for this coverage. This right to continue
coverage only applies to the portions of the Plan
that reimburse medical care expenses.
Effect of If a Participant or Dependent's participation in
Termination of the Plan terminates, any Covered Expenses incurred
Participation on by the Participant or Dependent before his or her
Reimbursements: participation terminated will be eligible for
reimbursement even though such reimbursement is not
requested or processed before such termination
date. Except as required by COBRA, Covered Expenses
incurred after such termination date will not be
eligible for reimbursement even though the
Participant may not have used all or some portion
of his or her Benefit Limit. The following examples
illustrate how these rules operate:
Example 1: Assume that a Participant terminates
employment on June 30, and as of such date has been
reimbursed $2,500 under the Plan. Before
terminating employment, while still covered by the
Plan, the Participant incurred an additional $750
of Covered Expenses. The Participant is entitled to
receive a reimbursement in the amount of $750.
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Example 2: Assume that a Participant ceases to be a
vice president or higher-ranking officer on
September 30, and as of such date has been
reimbursed $500 under the Plan. After changing
employment status, while no longer covered by the
Plan, the Participant incurs an additional $1,750
of Covered Expenses. The Participant is not
entitled to receive a reimbursement for the amounts
incurred after her participation is terminated.
Effect of If a Participant is promoted during a Paycheck Year
Promotion or and such promotion causes the Participant to be
Demotion on subject to a higher Benefit Limit, Covered Expenses
Reimbursements: incurred before the increased limit takes effect
will be eligible for reimbursement as long as they
were incurred while the Participant was covered by
the Plan. If a Participant is demoted during a
Paycheck Year and such demotion causes the
Participant to be subject to a lower Benefit Limit,
Covered Expenses incurred before the decreased
limit takes effect will be subject to reimbursement
as long as they were incurred while the Participant
was covered by the Plan. The following examples
illustrate how these rules operate:
Example 1: Assume that a Participant is promoted
from vice president to senior vice president on
October 1st. Assume further that as vice president,
the Participant's Benefit Limit was $13,000 and as
senior vice president, the Participant's Benefit
Limit is $18,000. Before being promoted, and while
covered by the Plan, the Participant incurred
$19,000 of Covered Expenses but has only been
reimbursed for $13,000. As of October 1st, the
Participant is entitled to be reimbursed an
additional $5,000 because of the $18,000 Benefit
Limit to which the Participant is now subject.
Example 2: Assume that a Participant is demoted
from senior vice president to vice president on
July 1st. Assume further that as senior vice
president, the Participant's Benefit Limit was
$18,000 and as vice president, the Participant's
Benefit Limit is $13,000. Before being demoted, and
while covered by the Plan, the Participant incurred
$15,000 of Covered Expenses but has only been
reimbursed for $13,000. As of October 1st, the
Participant is entitled to be reimbursed for the
$2,000 of Covered Expenses that were incurred
before October 1st, even though the Participant is
now subject to a $13,000 Benefit Limit.
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Example 3: Assume that a Participant is demoted
from senior vice president to vice president on
November 1st. Assume further that as senior vice
president, the Participant's Benefit Limit was
$18,000 and as vice president, the Participant's
Benefit Limit is $13,000. Before being demoted, and
while covered by the Plan, the Participant incurred
$10,000 of Covered Expenses and had been reimbursed
for the full $10,000. After being demoted, the
Participant incurs an additional $8,000 of Covered
Expenses. The Participant is entitled to receive a
reimbursement of $3,000 because as of November 1st,
the Participant is now subject to a $13,000 Benefit
Limit.
Effect of Benefit Effective February 15, 2003, the Benefit Limit
Limit Increase: for each Participant who is a vice-president
will be increased by $2,000 and the Benefit Limit
for all other Participants will be increased by
$3,000. If a Participant or Dependent's
participation in the Plan terminates before such
date, he or she will not be eligible to receive the
increase. The increased Benefit Limit may be used
to pay Covered Expenses incurred before February
15, 2003. The following examples illustrate how
these rules operate:
Example 1: Assume that a Participant terminated
employment on February 10, 2003. Assume further
that the Participant's Tier A plus Tier B Benefit
Limits equaled $10,000. Before terminating
employment, and while covered by the Plan, the
Participant incurred $14,000 of Covered Expenses,
and had been reimbursed for $10,000. Because the
Participant's participation in the Plan stopped on
February 10, 2003, he is not entitled to receive an
additional reimbursement.
Example 2: Assume that a Participant's Tier A plus
Tier B Benefit Limits equaled $10,000. On February
15, 2003, the Participant's overall Benefit Limit
is increased by $3,000 for an overall Benefit Limit
of $13,000. During January 2003, the Participant,
while covered by the Plan, incurred $14,000 of
Covered Expenses and was reimbursed in the amount
of $10,000. Of the $10,000 reimbursement, $3,000
was grossed-up for income taxes so the Participant
received a total reimbursement of $12,000. Even
though the Participant incurred the Covered
Expenses before February 15, 2003, she is entitled
to receive an additional reimbursement of $1,000
due to the increased Benefit Limit.
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ARTICLE 5
SUMMARY OF PLAN BENEFITS
Benefit If an expense qualifies as a Covered Expense, the Company
Structure: will reimburse you for 100% of the Covered Expense under
the Plan up to the Benefit Limit. Once you and your
Dependents, together, reach the Benefit Limit, no benefits
will be paid to you under the Plan for the remainder of
the Paycheck Year. Before you submit a claim for
reimbursement under the Plan, you must first submit it for
payment under your Medical Insurance if the underlying
expense is for medical care.
Tax Treatment The expenses reimbursed under the Plan must be included in
of Benefits: the Participant's taxable income for the calendar year in
which the Participant receives the reimbursement, rather
than the calendar year in which the underlying expense is
incurred. Reimbursements approved by the Benefits
Department will be added to your regular paycheck. The
additional income will be reflected on your W-2 for the
calendar year in which the additional income is paid to
you. Prior to May 1, 2002, the benefits provided under the
MERP were not includable in the Participant's taxable
income because the benefits provided under the MERP were
fully insured by CIGNA. Accordingly, any reimbursements
received from CIGNA are not includable in the
Participant's taxable income.
Compliance with The Plan will provide benefits in accordance with the
Federal Laws: applicable requirements of federal laws, such as COBRA,
HIPAA, NMHPA and the WHRCA. For example, the Plan, as
required by the WHCRA provides benefits for
mastectomy-related services including reconstruction and
surgery to achieve symmetry between breasts, prostheses,
and complications from mastectomy (including lymphedema).
Call the Benefits Department for more information.
Qualified The Plan will also provide benefits to an Employee's
Medical non-custodial Dependent child as required by any qualified
Child medical child support order, or "QMCSO" (as defined in
Support ERISA Section 609(a)). The Plan has detailed procedures
Orders: for determining whether an order qualifies as a QMCSO.
Participants and beneficiaries can obtain, without charge,
a copy of such procedures from the Benefits Department.
Benefits for The Plan will provide benefits to Dependent children
Adopted Children: placed with an Employee for adoption under the same terms
and conditions as apply in the case of Dependent children
who are natural children, in accordance with ERISA Section
609(c).
Special The Plan may not, under Federal law, restrict benefits for
Rights Upon any hospital length of stay in connection with childbirth
Childbirth: for the mother or newborn child to less than 48 hours
following a normal vaginal delivery, or less than 96 hours
following a cesarean section. However, Federal law
generally does not prohibit the mother's or newborn's
attending provider, after consulting with the mother, from
discharging the mother or her newborn earlier than the
above periods. In any case, the Plan may not, under
Federal law, require that a provider obtain authorization
from the Plan for prescribing a length of stay not in
excess of the above periods.
9
ARTICLE 6
HOW THE PLAN IS ADMINISTERED
Plan Administration: The Plan is administered by the Plan Administrator.
The Plan Administrator may delegate some (or all) of
its authority hereunder to the Benefits Department or
other person or committee designated by the Company.
The Plan Administrator also may engage agents and
obtain other assistance from the Company, including
Company counsel. The Plan Administrator shall not be
responsible for any action taken or not taken on the
advice of legal counsel. The Plan Administrator is
given specific authority to allocate and revoke
responsibilities among its members or designees. When
the Plan Administrator has allocated authority
pursuant to the foregoing, the Plan Administrator
shall not be liable for the acts or omissions of the
party to whom such responsibility has been allocated,
except to the extent provided by law.
The principal duty of the Plan Administrator is to see
that the Plan is carried out, in accordance with its
terms, for the exclusive benefit of persons entitled
to participate in the Plan without discrimination
among them. The administrative duties of the Plan
Administrator include, but are not limited to,
interpreting the Plan, and prescribing applicable
procedures. The Plan Administrator is also responsible
for determining eligibility for and the amount of any
benefits payable under the Plan and prescribing claims
procedures to be followed and the claims forms to be
used by employees for making claims under the Plan.
The Plan Administrator also has the authority to
require Employees to furnish it with such information
as it determines necessary for the proper
administration of the Plan.
If you have any questions regarding the Plan, please
contact the Benefits Department or the Plan
Administrator.
Discretionary The Plan Administrator shall have the
Authority discretionary authority to perform its
to Act: administrative responsibilities described in this
Plan as necessary or appropriate to enable the Plan
Administrator to properly carry out such
responsibilities. The decisions of the Plan
Administrator upon all matters within the scope of the
Plan Administrator's respective authority shall be
binding and conclusive upon all persons.
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ARTICLE 7
Claims Procedures
Reimbursement The Benefits Department is responsible for evaluating
Requests: all reimbursement requests under the Plan. You must
submit all reimbursement requests to the Benefits
Department in accordance with its procedures;
provided, however, that each December (or more
frequently if you request), the Benefits Department
will calculate the insurance deductions that have been
taken from your pay during the Paycheck Year, and will
submit these for reimbursement on your behalf.
Reimbursement requests should be submitted as soon as
possible after the underlying expense is "incurred,"
although, for repetitive expenses, you may want to
submit your request when you have other expenses, or
at some fixed interval, such as every three or six
months. See the definition "Covered Expense" to
determine when an expense is incurred. Please keep in
mind that to be reimbursed, an expense must be
submitted for reimbursement no later than the end of
the Paycheck Year following the Paycheck Year in which
the expense was incurred.
In order to count against the Benefit Limit for a
given Paycheck Year, a properly documented
reimbursement request must be sent to the Benefits
Department on or before the last day of such Paycheck
Year. Any properly submitted reimbursement requests
submitted to the Benefits Department during a Paycheck
Year will be taxable income to the Participant for the
calendar year that commences during the Paycheck Year.
For example, the 2004 Paycheck Year will commence on
December 6, 2003 and end on December 3, 2004. Thus any
requests submitted from December 6, 2003 through
December 3, 2004 will be taxable income to the
Participant for the 2004 calendar year.
To facilitate recordkeeping and reimbursements,
expenses submitted at least 3 days before pay period
end will be processed and reimbursed during that same
payroll period. Expenses submitted after such deadline
will be processed and paid during the following
payroll period.
If a reimbursement request is for medical care, you
must first submit the claim for payment to your
Medical Insurance, and submit a copy of the resulting
explanation of benefits ("EOB") to the Benefits
Department as documentation of the expense. On all
reimbursement requests, be sure to include the name of
the provider, the nature of the service rendered, and
your name on the receipt or invoice. If the claim is
in the category of health (other than for prescription
drugs), the ICD-9 code assigned by the provider will
suffice in place of the nature of the service
rendered. Cancelled checks and credit card receipts
cannot be used as the sole documentation of an expense
submitted for reimbursement.
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Dissatisfaction with If a you are dissatisfied with the
Decision: determination of your benefits, eligibility,
participation or any other right or interest under
this Plan, you may file a written statement setting
forth the basis of the claim with the Benefits
Department in a manner prescribed by the Benefits
Department. In connection with the determination of a
claim, or in connection with the review of a denied
claim, you may examine this Plan and any other
pertinent documents generally available to
Participants relating to the claim and you may submit
written comments, documents, records and other
information relating to the claim for benefits.
Notice A written notice of the disposition of any such claim
of Decision: will be furnished to you within 90 days after the
claim is filed with the Benefits Department, provided
that the Benefits Department may have an additional
period of up to 90 days to decide the claim if it
determines that special circumstances require an
extension of time to decide the claim and it advises
you in writing of the need for an extension (including
an explanation of the special circumstances requiring
the extension) and the date on which it expects to
decide the claim.
Content of Notice: The notice of disposition of a claim shall set forth:
o the specific reasons for denial of the claim;
o reference to the specific Plan provisions
upon which the determination is based;
o a description of any additional material
or information necessary for you to perfect
the claim and an explanation of why such
material or information is necessary; and
o an explanation of the Plan's appeal procedure
and an explanation of the time limits
applicable to the Plan's appeal procedures,
including a statement of your right to bring
a civil action under Section 502(a) of ERISA,
following an adverse benefit determination on
review.
Appeal of Within 60 days after receiving the written notice of
Denied Claim: the Benefits Department's disposition of the claim,
you, or your duly authorized representative, may
request in writing that the Plan Administrator review
the denied claim. You may submit a written statement
of your claim (including any written comments,
documents, records and other information relating to
the claim) and the reasons for granting the claim. The
Plan Administrator shall have the right to request of
and receive from a claimant such additional
information, documents or other evidence as the Plan
Administrator may reasonably require. If you do not
request a review of the denied claim within 60 days
after receiving written notice of the Plan
Administrator's disposition of the claim, you will be
deemed to have accepted the Benefits Department's
written disposition, unless you have been physically
or mentally incapacitated so as to be unable to
request review within the 60-day period. The review
12
shall take into account all comments, documents,
records and other information submitted by you
relating to the claim, without regard to whether such
documents, records or other information were submitted
or considered in the initial benefit determination.
Decision A decision on appeal shall be rendered, in writing,
on Appeal: by the Plan Administrator ordinarily not later than
60 days after you request review of a denied claim,
and a written copy of such decision shall be delivered
to you. If special circumstances require an extension
of the ordinary period, the Plan Administrator will
notify you of the extension with such notice
containing an explanation of the special circumstances
requiring the extension and the date by which the Plan
Administrator expects to render a decision. Any such
extension will not extend beyond 60 days after the end
of the ordinary period.
The denial notice shall set forth:
o the specific reasons for denial of the claim;
o reference to the specific Plan provisions
upon which the denial is based;
o a statement that you are is entitled to
receive, upon request and free of charge,
reasonable access to, and copies of, all
documents, records, and other information
relevant to the your claim for benefits; and
o a statement of your right to bring a civil
action under Section 502(a) of ERISA.
Right to Examine In connection with the determination of a claim, or in
Plan Documents connection with review of a denied claim or appeal,
and to you may examine the Plan and any other pertinent
Submit documents generally available to Participants relating
Materials: to the claim and you may submit written comments,
documents, records and other information relating to
your claim for benefits. Upon request and free of
charge, you will be provided reasonable access to, and
copies of, all documents, records, and other
information relevant to your claim for benefits, with
such relevance to be determined as set forth below
under "Relevance of Documents."
Relevance For purpose of this Article 7, documents, records,
of Documents: or other information shall be considered "relevant"
to your claim for benefits if such documents, records
or other information:
o were relied upon in making the benefit
determination;
o were submitted, considered, or generated in
the course of making the benefit
determination, without regard to whether such
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documents, records or other information were
relied upon in making the benefit
determination; or
o demonstrate compliance with the
administrative processes and safeguards
required by this Article 7 regarding the
making of the benefit determination.
Decisions Final and To the extent permitted by law, a decision on review
Procedures Mandatory: by the Plan Administrator shall be binding and
conclusive upon all persons whomsoever. To the extent
permitted by law, completion of the claims procedures
described in this Article shall be a mandatory
precondition that must be complied with prior to
commencement of a legal or equitable action in
connection with the Plan by a person claiming rights
under the Plan or by another person claiming rights
through such a person. The Plan Administrator may, in
its sole discretion, waive these procedures as a
mandatory precondition to such an action.
Time for Filing Legal Any legal or equitable action filed in connection
or Equitable Action: with the Plan by you or by another person claiming
rights through you must be commenced not later than
the earlier of: (1) the shortest applicable statute of
limitations provided by law; or (2) two years from the
date the written copy of the Plan Administrator's
decision on appeal is delivered as described above.
ARTICLE 8
AMENDMENT OR TERMINATION OF THE PLAN
PNM Resources, as Plan Sponsor, has the right to amend or terminate the Plan at
any time. The Plan may be amended or terminated by a written instrument duly
adopted by PNM Resources or any of its delegates.
ARTICLE 9
NO CONTRACT OF EMPLOYMENT
The Plan is not intended to be, and may not be construed as constituting, a
contract or other arrangement between you and the Company to the effect that you
will be employed for any specific period of time.
IN WITNESS WHEREOF, PNM Resources, Inc. has caused this Plan to be
executed as of this __9th__ day of December, 2003.
PNM RESOURCES, INC.
By: /s/ Alice A. Cobb
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Its: Senior Vice President, People Services & Development
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