Amendment to Retirement Benefit Provisions for Plan Participants
This amendment updates the retirement benefit calculations for participants in a retirement plan. It distinguishes between Group A participants (those who joined before January 1, 2009) and Group B participants (those who joined after December 31, 2008), specifying different formulas and maximum benefit caps for each group. The amendment also provides an exception to the benefit cap for a specific individual, John Mendez. The changes clarify how monthly retirement benefits are determined based on years of service and final average compensation.
Exhibit 10.1
4.2 Amount of Normal Retirement Benefit …is amended by deleting Section 4.2(a) in its entirety and substituting a new Section 4.2(a) in lieu thereof as follows:
| (a) | Determination of Normal Retirement Benefit - Each Participant shall be entitled to receive a monthly retirement benefit commencing on his Normal Retirement Date provided he has incurred a Separation from Service, or Deferred Retirement Date, (unless he elects otherwise in accordance with Section 9.3), in an amount equal to one-twelfth (1/12) of (1) or (2) below: |
| (1) | Group A Participants- Means those Participants who entered this Plan prior to January 1, 2009. - All such Participants shall receive a Normal Retirement Benefit equal to the greater of (i) or (ii) below: |
| (i) | Thirty-five percent (35%) of such Participant’s Final Average Compensation, but subject to a maximum benefit of $80,000 per calendar year. However, the maximum annual benefit cap of $80,000 per calendar year shall not apply to John Mendez. Or, |
| (ii) | Any Participant with Final Average Compensation in excess of $175,000 at Normal Retirement Age, who has also completed 30 or more Years of Service, shall be entitled to receive the maximum annual benefit of $80,000 per calendar year, in monthly installments of $6,666.67 provided such Participant has incurred a separation from Service. |
| (2) | Group B Participants- Means any Participant who entered this Plan after December 31, 2008. All such Group B Participants shall receive a Normal Retirement Benefit equal to: |
One and one-half percent (1.5%) of such Participant’s Final Average Compensation multiplied by his number of Years of Benefit Service, subject to a maximum Normal Retirement Benefit of thirty-five percent (35%) of a Participant’s Final Average Compensation, and further subject to a maximum benefit of $80,000 per calendar year.
