Summary of Terms and Conditions of Special Executive Retirement Plan Amendment Effective December 30, 2005
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- Retirement Agreements
EX-10.KK 4 exhibit10-kk.htm EXECUTIVE RETIREMENT PLAN AMENDMENT Executive Retirement Plan Amendment
Exhibit 10-kk
Summary of Terms and Conditions of
Special Executive Retirement Plan Amendment
Effective December 30, 2005
| Plan Feature | Plan Provision |
| Eligibility | Executive Team Members as defined in plan document |
| Transition Strategy | Convert accrued benefit to opening account balances based on present value calculated at 6% discount rate Selected participants permitted to terminate participation and receive benefits in 2005 |
| Basic Employer Contributions | Flat rate contributions of 15% of base pay; 20% for CEO |
| Supplemental Employer Contributions | Additional employer contributions allowed based on individual or company financial performance |
| Discretionary Employer Contributions | Special account subject to separate vesting for sign-on bonuses, etc. |
| Employee Contributions | Permitted up to 50% of base salary and 100% of incentive bonus (if any) |
| Vesting | 100% vested for employee and employer contributions |
| Distribution Date | Employee contributions: Selected date (if designated) or date of separation from employment, whichever is later Employer contributions: Selected date (if designated) or date of separation from employment, whichever is later Key employees: Six-month delay if distribution due to separation from service |
| Distribution Form | Lump sum or 120 months as elected by participant if account balance is at least $120,000 |
| Subsequent Deferral Election | Permitted, subject to 1-year, 5-year rule 1-year, 5-year rule: Participants can change the distribution date they initially select if they make the change at least one year before the distribution date. Distributions then cannot occur until five years after the originally selected distribution date. |
| Change in Control | Rabbi trust funded on change in control; payment made if plan is terminated within 12 months |
| Investments | Employee Contributions: As selected by participants for their own contributions; to be administered by Mercer HR Services. Until arrangements with Mercer are formalized, employee contributions will earn the crediting rate for employer contributions (see below). Employer Contributions: Crediting rate equivalent to the 15-year treasury rate plus 1-3% |
| Disability | Lump sum payment following three months’ receipt of long-term disability benefits |
| Hardship Distributions | Not permitted |
| Cancellation of Deferral Elections | Required following hardship distribution from 401(k) |
