|
Time period |
Participation |
Plan benefit formula |
Retirement benefits |
| Until April 1993 |
All employees |
One-third of benefits
accrue using a traditional defined-benefit plan formula, and two-thirds
of benefits accrue using a variable-benefit formula in which retirement
benefits can vary and participants bear investment risk. |
Full retirement benefits at
age 62. |
| April 1993-January 2005 |
Employees hired before
April 1993 remain in the original plan.
New hires are enrolled in a defined-contribution plan. |
Original plan is unchanged.
Eight percent of pay is contributed to a defined-contribution plan on
employees’ behalf. |
Full retirement benefits at
age 62 for employees in the original plan.
Retirement benefits available as governed by federal regulations and tax
law. |
| Current plan |
Employees hired after April
1993 have a choice between participating solely in the
defined-contribution plan or participating in a new plan that provides a
mix of defined-contribution and defined-benefit plan participation. |
Original plan remains
unchanged for employees hired before April 1993.
New plan allows employees a choice between:
--Continuing to receive a company contribution to the
defined-contribution plan equal to 8 percent of salary
or
--Receiving a company contribution to the defined-contribution plan
equal to 4 percent of salary and a benefit accrual in the
defined-benefit pension plan designed to equal 4 percent of employees’
pay*. The same ratio of fixed and variable benefits used in the original
pension plan applies to the defined-benefit pension plan.
|
Full retirement benefits at
age 62 for employees in the original plan.
Employees participating solely in the defined-contribution plan can take
retirement benefits at any time subject to federal regulations and tax
law.
Employees hired after April 1993 and participating in the
defined-benefit pension plan can get full retirement benefits from that
plan at age 65. |
= Member Only
