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 10.5, 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 l9 of this Agreement.
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:
NOTE
–
The language below including the Alternate benefit formula through 10.6 remains
unchanged from previous contract. Below was an attempt to include the language
of the plan documents into the contract, which obviously the company rejected.
Therefore it is lined out but is still a part of the Summary Plan Documents.
Here is a link to the Summary Plan
Documents http://active.boeing.com/companyoffices/empinfo/benefits/retirement/retire.cfm?goto=union&page=emp2
10.5(a) Hours of
Service Basic Benefit. The Basic Benefit will be
increased to $58.00 per month for all years of credited service for employees
on the active payroll of the Company on or after January 1, 2003 (including
those who retire from the employ of the Company on January 1, 2003).
10.5(b) Expense
Payments Basic Benefit. Fees and expenses associated with the investment of
fund assets, plan administration, and trustee fees shall be payable out of the
trust. The Basic Benefit will be
increased to $59.00 per month for all years of credited service for employees on the active
payroll of the Company on or after January 1, 2004 (including all those who
retire from the employ of the Company on January 1, 2004).
10.5(c) Crediting
Eligibility Service Basic Benefit. Employees on the active payroll of the Company on or after
January 1, 2000, who complete their year of eligibility service
(usually the first year of employment) and become Participants of the Plan will
receive Credited Service for the year of eligibility service immediately after
becoming a Plan Participant. The Basic Benefit will be increased to $60.00
per month for all years of credited service for employees on the active payroll
of the Company on or after January 1, 2005 (including all those who retire from
the employ of the Company on January 1, 2005).
10.5(d) The
Retirement Income Leveling Option Effective Date of
Amendments.
The
amount payable under the retirement income leveling option will be $700/month
for all employees who elect the option. The amendment set forth in
Section 10.5(a) will take effect January 1, 2003, and will
apply to Plan Participants on the active payroll, layoff, or leave of absence
from the Company on or after January 1, 2003, including employees who retire
effective January 1, 2003. The amendment set forth in Section 10.5(b) will take
effect January 1, 2004, and will apply to Plan
Participants on the active payroll, layoff, or leave of absence from the
Company on or after January 1, 2004, including employees who retire effective
January 1, 2004. The
amendment set for in Section 10.5(c) will take effect on January 1, 2005, and will
apply to Plan Participants on the active payroll, layoff, or leave of absence
from the Company on or after January 1, 2005, including employees who retire
effective January 1, 2005.
10.5(e)
Six-Year Bridge for Laid Off Employees. Laid off employees will no longer have to
maintain active layoff status in order to remain eligible for the Plan’s layoff
provisions.
10.5(f)
Early Retirement Reduction for Vested Former Employees. Early retirement reduction factors used for
former employees with vested benefits will be based on age in completed months
instead of age in completed quarters.
10.5(g)
Deferral of Retirement Benefits. Employees who terminate employment while
eligible for early retirement may elect to defer commencement of their benefit
until age 65.
10.5(h)
Pre-Retirement Survivor Benefit. The charge for providing a surviving spouse
benefit to former employees who have a vested benefit and who have not yet
retired will be eliminated. This
amendment will apply to all Plan Participants who have not yet commenced
benefits as of January 1, 2000.
10.5(i)) Ten-Year Certain
and Life Option. Employees may elect a ten (10)-year certain and life option where
benefits are paid for the employee’s lifetime, and are guaranteed to continue
for ten (10) years after the employee’s retirement date, even if the retiree
dies within ten (10) years of retirement.
The benefit will be reduced to reflect the cost of the option.
10.5(j) Basic Benefit.
10.5(n) Alternate Benefit Formula. The
alternate benefit formula consists of the core benefit and the excess
benefit. These benefits include your
(1)Final
average earnings
(2)(1)Years of
credited service
(3)(1)Social
Security covered compensation.
Final
average earnings are based on your basic annual compensation, which is your
annual rate of pay on the first day of each calendar month that you are on the
active payroll. Final average earnings
do not include overtime, shift differential, cost of living, or other payments
that are in addition to your hourly rate or base salary.
Your final
average earnings will be the highest average rate over any period of sixty (60)
consecutive months during your last one hundred twenty (120) months of
service. If you have fewer than sixty
(60) months of service, your final average earnings will be based on your
actual months of service.
Final average earnings also include awards under the Lump Sum Payment Plan (previously known as
the Productivity Payment Plan) during the five (5) years before
retirement. However, other lump sum
payments such as bonuses, incentive awards, lump-sum merit pay, and other
special award
payments are not included.
10.5(o) Core
Benefit. Your core
benefit is determined by multiplying the core percentage (1.025 percent) by
your final average earnings. This
amount is then multiplied by your years of credited service.
10.5(q) Disability Retirement. You qualify
for disability retirement benefits if you become permanently and totally
disabled while an active employee of the Company or while on an approved leave
of absence. The Plan will pay
disability retirement benefits if you meet all of the following conditions
after you are age 50 but before
you reach age 65:
(1)You have completed six (6) consecutive months of
absence for medical reasons. (A return to active employment for fewer than
thirty (30) calendar days will not interrupt this period.)
(2)(1)You have
received a Social Security Award Certificate for a disability benefit under the
Social Security Act.
(3)(1)You were at
least age 50 when the disability occurred.
(4)(1)You have ten
(10) or more years of vesting service in the Plan.
(5)(1)You formally
apply for disability retirement by submitting the Commencement Election form to
the Boeing Pension Service Center.
You should
contact the Boeing Pension Service Center to ask about disability retirement
benefits under the Plan at the same time you apply to the Social Security
Administration for disability benefits.
If Social
Security disability payments are discontinued before your 65th birthday,
your Plan disability payments will stop.
You are required to notify the Boeing Pension Service Center of this
development.
Disability
retirement payments consist of benefits earned up to the time of
disability. Benefits are not reduced
because of your age. Normal reductions
will be made, however, for benefits paid under the surviving spouse option.
If you
satisfy the requirements for early retirement and have filed for Social
Security disability benefits, you may begin receiving early retirement benefits
under the Plan. If a Social Security
disability award subsequently is granted, your early retirement benefits may be
converted to disability retirement benefits under the Plan. That is, the early retirement age reduction
may be removed, retroactive to the date you first met the conditions of
entitlement for disability benefits.
10.5(r) If you Leave Before Retirement. If you stop
working for the Company before you become eligible to retire, but after you
become vested, you may claim the vested benefits you have earned once you reach
normal retirement age. You may select
from the same payment options that would be available to you if you were
retiring from active employment. The
Boeing Pension Service Center must receive your completed Commencement Election
form before your intended benefit commencement date.
You may
claim vested benefits before normal retirement (age 65), but the benefits will
be reduced by six percent for each year before
age 65 to account for the longer time over which they may be paid. This reduction for early retirement is
substantially greater than the reduction applied to benefits of active
employees retiring from the Company. To
have vested benefits begin before age 62, you must satisfy at least one of the
conditions required for early retirement.
The surviving spouse payment reductions also are greater for a vested
former employee. For more information
regarding these reductions, contact the Boeing Pension Service Center. Because important information about the Plan
and your vested benefits may be mailed to you from time to time, you are encouraged
to notify the Company whenever your address changes even though you may not yet
be receiving benefits.
10.5(s) If You Die While an Active Vested
Employee. If you are
an active vested employee and die before age 55, your spouse’s benefits will be
calculated as if you had terminated your employment and elected to receive a 50 percent
surviving spouse option. This means
that your spouse’s benefits will be reduced by early retirement reduction
factors and the 50 percent
surviving spouse option that apply to vested former employees. Benefits will become payable to your spouse
on the first day of the month that coincides with or immediately follows the
date you would have reached age 55.
Your spouse may elect to begin receiving benefit payments earlier or to
deter payments until the date you would have reached age 65. If payments begin before you would have
reached age 55, the payment amount will be reduced to reflect the longer
payment period.
If you are
an active vested employee and die at or after age 55, your spouse’s benefits
will be calculated as if you had terminated your employment and elected to
receive a one hundred (100) percent surviving spouse option. This means your spouse’s benefits will be
reduced by the factors that apply to active employees and the one hundred (100)
percent surviving spouse option conversion factor. Payments begin as of the first day of the month following your
death, or your spouse may elect to defer payments until the date you would have
reached age 65.
10.5(t)
Postretirement Death Benefit. If you retire from the
Plan, your beneficiary is eligible to receive a $2,000 death benefit under the
Plan. The benefit will be paid as a
single lump sum following your death to the person you designate as your
beneficiary on the Commencement Election form provided by the Boeing
Pension Service Center. If you do not
designate a beneficiary, the benefit will be paid to your spouse, if surviving,
or to your estate, in that order.
The
postretirement death benefit is in addition to benefits continued under
applicable surviving
spouse payment method, if any. Vested
former employees and employees who were not represented by a union that
accepted the Plan when they retired are not eligible for the postretirement
death benefit.
10.5(k)(u) Effective Date of Amendments. The amendments set forth in this
Section 10.5 will take
effect January 1, 2000, and will apply to Plan Participants on the active
payroll, layoff, or leave of absence from the Company on or after January 1,
2000, including employees who retire effective January 1, 2000.
Section 10.6
Joint Retirement Plan Advisory Committee.
A joint Retirement Plan Advisory Committee shall be established and shall consist of two representatives appointed in writing by the
Union and two representatives appointed in writing by the Company The
chairmanship of this Committee shall be rotated annually between the Union and
the Company representatives. The
secretary shall be chosen from the opposite group to the chairman and shall
keep minutes of all meetings. The duties of the Retirement Plan Advisory Committee shall be to
review those questions of fact which are referred to it and which are
involved in the administration of the Plan as it applies to employees
represented by the Union The Committee shall submit its findings and
recommendations on each such question to the Retirement Committee referred to
in Article XIII of the Plan.
A joint Retirement Plan Advisory Committee shall be
established and shall consist of two (2) representatives appointed in writing
by the Union and two (2) representatives appointed in writing by the
Company. The chairmanship of this
Committee shall be rotated annually between the Union and the Company representatives. The secretary shall be chosen from the
opposite group by the chairman and shall keep minutes of all meetings. The duties of the Retirement Plan Advisory
Committee shall be to review those questions of fact which are referred to it
and which are involved in the administration of the Plan as it applies to
employees represented by the Union. The
Committee shall submit its findings and recommendations on each such question
to the Retirement Committee referred to in Article XIII of the Plan.
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:
10.7(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.
10.7(b) Credited Service. Plan participants will accrue Credited
Service commencing on the date they became Plan participants in accordance with
Section 10.7(a).
10.7(c) Eligibility for Retirement Income. Eligibility for retirement income will be
based on the provisions of the Plan.
10.7(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.
10.7(e) Other Provisions of the Plan. With the exception of the foregoing language
of Section 10.7, all other provisions of The Boeing Company Employee Retirement
Plan will apply.