Subject to the approval of the Commissioner of
Internal Revenue and of other cognizant governmental authorities, as more
particularly hereinafter specified, and to the provisions of Section 10.6, a
retirement plan (hereinafter called the Plan) in the form now in effect as to
the employees within the units to which this Agreement relates shall continue
to be effective while this Agreement is in effect as to such employees in
accordance with and subject to the terms, conditions, and limitations of the
Plan.
Approval of the Plan by the Commissioner of
Internal Revenue as referred to in Section 10.1 means a continuing approval
sufficient to establish that the Plan and related trust or trusts are at all
times qualified and exempt from income tax under Section 401(a) and other
applicable provisions of the Internal Revenue Code of l986, and that
contributions made by the Company under the Plan are deductible for income tax
purposes in accordance with law. The cognizant governmental authorities referred to in Section
10.1 include, without limitation, the Department of Labor, the Pension Benefit
Guaranty Corporation and the Securities and Exchange Commission, and their
approval means their confirmation with respect to any matter within their
regulatory authority that the Plan does not conflict with applicable law.
The Company shall not be precluded from
continuing the Plan in effect as to employees within the units to which this
Agreement relates, after expiration or termination of this Agreement, subject
to the terms, conditions, and limitations of the Plan.
Only questions concerning the amount of Credited
Service under the Plan that an employee has accumulated by reason of employment
after the effective date of the Plan shall be subject to the grievance
procedure of Article 19 of this Agreement.
The Plan uses two formulas to determine a
retired employee’s pension benefit: the standard and alternate benefit formulas
as described in the Plan. The retired
employee will receive benefits under the formula that produces the larger monthly
benefit.
Subject to action by the Company's Board of
Directors and to the approvals specified in Section 10.2, all provisions of The
Boeing Company Employee Retirement Plan are to remain unchanged with the
exception of the following amendments. Changes agreed to in the Collective
Bargaining Agreement of September 29, 2002, are incorporated into the Plan.
10.6(a) Basic Benefit. The Basic Benefit will be increased to $70.00
per month for all years of credited service for employees on the active payroll
of the Company on or after January 1, 2006 (including those who retire from the
employ of the Company on January 1, 2006).
10.6(b) Effective Date
of Amendments. The amendment set forth in Section 10.6(a)
will take effect January 1, 2006, and will apply to Plan Participants on the
active payroll, layoff, or leave of absence from the Company on or after
January 1, 2006, including employees who retire effective January 1, 2006.
The Company shall have the right to unilaterally
make any changes in actuarial assumptions and funding methods, provided such
changes are determined by the Plan’s enrolled actuary to be reasonable in the
aggregate. The Company shall be entitled
to unilaterally adopt such amendments to the Plan as may be required in order
to obtain any approval referred to in Section 10.1 and described in Section
10.2 of the Agreement.
The Company will continue to pay twenty-five
cents (25¢) into Western Metal Industry Pension Fund for each compensable hour
worked by each employee in the Portland Unit.
In addition, effective January 1, 1981, such employees will also become
participants under The Boeing Company Employee Retirement Plan as follows:
10.8(a) Employees to
Whom the Boeing Plan Applies. Each
employee who was employed by the Company on June 29, 1974, and remains in the
employ of the Company on and after January 1, 1981, shall become a Plan
participant as of June 29, 1974. Each
other employee who was employed by the Company after June 29, 1974, and remains
in the employ of the Company on and after January 1, 1981, shall become a Plan
participant upon completion of one (1) year of eligibility service following
such date of employment with the Company.
All other employees who are employed by the Company on or after January
1, 1981, shall become participants in the Plan upon completion of one (1) year
of eligibility service, or upon becoming an eligible employee, if later.
10.8(b) Credited Service. Plan participants will accrue Credited
Service commencing on the date they became Plan participants in accordance with
Section 10.8(a).
10.8(c) Eligibility for
Retirement Income. Eligibility for retirement income will be based
on the provisions of the Plan.
10.8(d) Amount of
Retirement Income. The retirement amount of a participant at any
time shall be the benefit payable under the provisions of The Boeing Company
Employee Retirement Plan reduced by any accrued benefit payable from the
Western Metal Industry Pension Fund on account of service with The Boeing
Company.
10.8(e) Other Provisions
of the Plan. With the exception of the foregoing language
of Section 10.8, all other provisions of The Boeing Company Employee Retirement
Plan will apply.