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, or its delegates,
and to the approvals specified in Section 10.2, except as the
parties may otherwise agree pursuant to any Letter of Understanding, 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, 20025,
are incorporated into the Plan.
10.6(a) Basic
Benefit. The Basic Benefit will be increased to $7080.00
per month for all years of credited service for employees on the active payroll
of the Company, or
those on an authorized period of absence on or after January 1, 20069
(including those who retire from the employ of the Company on January 1, 20069).
10.6(b)
Compensation. The definition of compensation will include
payments from the Incentive
Plan described in this Agreement.
10.6(bc) Effective
Date of Amendments. The amendment set forth in Section 10.6(a) will
take effect January 1, 20069, and
will apply to Plan Participants on the active payroll, layoff,
or on an authorized period leave
of absence from the Company on or after January 1, 20069,
including employees who retire effective January 1, 20069.
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
10.8(a) Employees
to Whom the Boeing Plan Applies. Each employee who was employed by the Company
on
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.