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UNISYS PENSION LAN

UNISYS PENSION plan SUMMARY plan DESCRIPTION BOOKLET AS OF JANUARY 1997 About This Booklet This booklet serves as the summary plan description (SPD) for the UNISYS PENSION plan (the plan ) as it applies to non-bargaining employees. A summary plan description is a printed reference that conveys the provisions of the plan in terms you can understand, tells you how to request benefits available under the plan , explains when your benefits end, and advises you of your rights under ERISA. This booklet includes important information about retirement benefits available under the UNISYS PENSION plan . It is only a summary and does not contain every detail addressed in the plan document. If there is any inconsistency between the plan document and this SPD, the plan document (and not this SPD) controls. Keep this booklet as an ongoing reference. Note: If you participate in one of the following, you are a member of the UNISYS PENSION plan , but your PENSION benefits are different and are described in a separate SPD booklet: _ UNISYS Hourly Rate Employees PENSION plan (Local 1313) _ UNISYS Hourly Rate Employees PENSION plan (Local 1440) _ Non-Contributory Bargaining Unit PENSION plan (Twin Cities and Blue Bell bargaining units) This booklet reflects the terms and conditions of the UNISYS PENSION plan as amended and restated through January 1, 1997.

About This Booklet This booklet serves as the summary plan description (SPD) for the Unisys Pension Plan (the Plan) as it applies to non -bargaining employees.

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1 UNISYS PENSION plan SUMMARY plan DESCRIPTION BOOKLET AS OF JANUARY 1997 About This Booklet This booklet serves as the summary plan description (SPD) for the UNISYS PENSION plan (the plan ) as it applies to non-bargaining employees. A summary plan description is a printed reference that conveys the provisions of the plan in terms you can understand, tells you how to request benefits available under the plan , explains when your benefits end, and advises you of your rights under ERISA. This booklet includes important information about retirement benefits available under the UNISYS PENSION plan . It is only a summary and does not contain every detail addressed in the plan document. If there is any inconsistency between the plan document and this SPD, the plan document (and not this SPD) controls. Keep this booklet as an ongoing reference. Note: If you participate in one of the following, you are a member of the UNISYS PENSION plan , but your PENSION benefits are different and are described in a separate SPD booklet: _ UNISYS Hourly Rate Employees PENSION plan (Local 1313) _ UNISYS Hourly Rate Employees PENSION plan (Local 1440) _ Non-Contributory Bargaining Unit PENSION plan (Twin Cities and Blue Bell bargaining units) This booklet reflects the terms and conditions of the UNISYS PENSION plan as amended and restated through January 1, 1997.

2 Revised 1/97 i Contents Prior PENSION Minimum benefit plan Plans merged effective February 28, Plans merged effective June 28, Final Average Pay to Career Average Pay How This Booklet Is Organized ..6 Accrued Actuarial Company, Deferred Vested Earliest date benefits become Latest date benefits become Applying for payments to Defined Benefit Who is not eligible to Leased plan , Predecessor Present Value of Accrued Qualified Retirement Retiree Status and Retirement What it means to be a retiree ..14 Types of retirement and retirement Eligibility Vesting Credited Breaks in service & Transfer from a non-eligible Transfer to a non-eligible Approved leaves of Workforce reduction or Newborn When eligibility, vesting and credited services are Social Security Social Security Wage Termination ii Revised 1/97 Career Average Pay The Average Social Security Wage Normal Retirement: An Early Retirement Benefits Payments Your Normal Retirement Date 36 If you retire with 20 or more years of vesting If you retire with less than 20 years of vesting If you are a deferred vested Late If You Become How long benefits continue to How pay is determined for benefit accrual if you are Benefits Accrued Prior to January 1, Minimum Final Average Pay The What final average pay Final Average Social Security Wage Accrued Benefit through 12/31/90: An Minimum Benefit.

3 An Early Retirement Comparison of the Career Average Pay and Final Average Pay Comparing the way pay is used in the Comparing the definition of average Social Security Wage Comparing the treatment of Payment Normal Form of If you are not If you are Optional Forms of Single life Contingent annuity Period certain and life Social Security adjustment SDC lump-sum Payments under contributory features of prior Small Benefit Payments: Lump-Sum Revised 1/97 iii Other Survivor Pre-Retirement Survivor When pre-retirement annuity benefits become How the benefit is When pre-retirement survivor annuity coverage Death Standard Beneficiary Prior plan Survivor SDC Sperry Retirement Program Part A non-spouse death Applying for Your Retirement Income Requesting Commencement of PENSION If you are eligible to receive payments If you are deferring benefit payments or you are under Important Notes Regarding Payment of Your Notification of the Death of a Retiree or Withholding from Withholding from regular monthly Lump-sum distributions.

4 Special tax Electronic Overpayments or Address Additional plan How Benefits and Service Are How you may forfeit How you may forfeit Maximum Non-Assignment of In the Event of Official plan Name and plan plan Employer Identification plan Type of plan and plan plan Questions and Appeal to the UNISYS Employee Benefits Contributions & Investment Agent for Legal Governing Your Rights under iv Revised 1/97 plan PENSION Benefit Guaranty Appendix A: International Who is What retirement plans are What retirement plans are not Worldwide How your benefit is Appendix B: Prior plan Eligibility for calculations under prior plan What benefits are Appendix C: BERIP Contributory If you were actively employed on June 30, If you were not actively employed on June 30, Appendix D: BERIP Non-Contributory Important BERIP early retirement Appendix E: Memorex Employees PENSION Important Early retirement Appendix F: Sperry Retirement Program Part A Remington Rand and Vickers Contributory FeaturesAnnuity Withdraw Appendix G: Sperry Retirement Program Part A Non-Contributory Update Important Part A early retirement Appendix H: System Development Corporation (SDC)Basic Non-Contributory PENSION plan 104 Minimum Important SDC early retirement SDC lump-sum distribution Appendix I: Career Average Pay Formula CONTENTS Revised 1/97 v CONTENTS vi Revised 1/97 CONTENTS Revised 1/97 vii Revised 1/97 1 INTRODUCTION/BACKGROUND INTRODUCTION/BACKGROUND 2 Revised 1/97 INTRODUCTION The UNISYS PENSION plan is provided by the Company to help you achieve financial security when you retire from UNISYS .

5 It is designed to supplement your UNISYS Savings plan benefits, your Social Security benefits and your personal savings. The UNISYS PENSION plan has been developed from predecessor plans and has been amended a number of times. Before you read about the benefits available under the plan , it may be helpful to have some background information on the evolution of the plan . PRIOR PENSION PLANS The UNISYS PENSION plan is an amendment and restatement of the Sperry Retirement Program Part A. Effective April 1, 1988, the following plans were amended, merged into and became part of the UNISYS PENSION plan : _ Burroughs Employees' Retirement Income plan (BERIP) _ the Memorex Employees' PENSION plan (the Memorex plan ) _ the System Development Corporation Basic Non-Contributory PENSION plan (the SDC plan ) In this booklet, the plans which were amended to form the UNISYS PENSION plan are referred to as prior PENSION plans. Burroughs, Memorex, SDC and Sperry are referred to as predecessor companies.

6 INTRODUCTION/BACKGROUND Revised 1/97 3 Minimum benefit provisions If you were a participant in one of the prior PENSION plans, the least you receive from the UNISYS PENSION plan is the benefit you earned under your prior PENSION plan as of March 31, 1988. The forms of payment, early retirement reduction factors and adjustments for the various forms of payment under the prior PENSION plan s provisions are included in this provision. If you were vested in a benefit under one of the prior PENSION plans, the survivor benefits attributable to the prior PENSION plans also are included in this provision. In addition, if you were an active employee, age 50 or older and had ten or more years of vesting service as of March 31, 1988, a further minimum is provided. The objective of this provision is to: _ calculate your PENSION as if there were no change in your prior plan provisions through the earlier of December 31, 1991 or your date of termination _ compare your prior plan benefit through the earlier of December 31, 1991 or your date of termination to the benefit calculated under the UNISYS PENSION plan formula You automatically receive whichever benefit is greater.

7 To accomplish this, the prior PENSION plan formulas were incorporated into the UNISYS PENSION plan . The section of this booklet beginning on page 93 is devoted to explaining this special provision. INTRODUCTION/BACKGROUND 4 Revised 1/97 plan MERGERS The PENSION plans listed below have been merged into the UNISYS PENSION plan . The benefits available under these merged plans are different from the benefits described in this booklet. Separate summary plan description booklets explain the rights, entitlements and provisions for these plans. Plans merged effective February 28, 1991 _ UNISYS Hourly Rate Employees PENSION plan (UAW Local 1313) _ UNISYS Hourly Rate Employees PENSION plan (UAW Local 1440) _ Ford Instrument PENSION plan _ Vickers Bargaining Unit PENSION plan _ Retirement PENSION plan for Bargaining Units in Danville, Illinois _ Flight Systems PENSION plan Van Nuys Plans merged effective June 28, 1996 _ Great Neck Bargaining Unit PENSION plan _ Non-Contributory Bargaining Unit PENSION plan INTRODUCTION/BACKGROUND Revised 1/97 5 FINAL AVERAGE PAY TO CAREER AVERAGE PAY AMENDMENTS Effective January 1, 1991, the plan was amended, resulting in a change in the way benefits are calculated under the plan : _ From a final average pay approach the plan formula uses the average of a recent period of earnings as if this average represents your pay over your entire career with the Company.

8 _ To a career average pay approach a piece of your benefit is determined each year based on the plan formula and your pay during that year. The sum of your benefit increments for each year you participate in the plan determines your final PENSION benefit. The net effect is that your total PENSION benefit reflects the plan formula applied over your average pay throughout your UNISYS career. If you were actively employed by UNISYS at the time the change in approach was made, and if you are credited with one hour of service under the UNISYS PENSION plan as of December 31, 1990, a minimum benefit applies. That benefit is described beginning on page 40. INTRODUCTION/BACKGROUND 6 Revised 1/97 HOW THIS BOOKLET IS ORGANIZED This booklet first describes the career average pay formula and how it works. An explanation of the final average pay formula follows. The payment options and pre-survivor benefits are described following the formula discussions. The next two sections describe how to apply for benefits and provide general additional plan information.

9 A number of additional descriptions are provided in the Appendix. These cover international transfers and prior plan provisions. If your original date of employment is on or after January 1, 1991, disregard the sections of this booklet which explain the final average pay formula and Appendix B to H. The provisions noted in these sections do not apply to you. Before going further, a number of important terms and conditions are explained to help you understand the UNISYS PENSION plan and the benefits available to you under the plan . Revised 1/97 7 DEFINITIONS DEFINITIONS 8 Revised 1/97 INTRODUCTION This section provides definitions for terms as they apply in the career average pay and final average pay provisions of the UNISYS PENSION plan . The definitions may be different when compared to how the terms may apply in common usage, other benefit programs or prior plans. These definitions help explain the benefits available under the UNISYS PENSION plan , as well as how the benefits are determined.

10 ACCRUED BENEFIT This is the amount of the monthly benefit you have earned, as of a given date, payable as of your normal retirement date (as defined on page 14). The amount is based on: _ your pay (as defined beginning on page 11) _ your service (as defined beginning on page 16) _ the provisions of the plan at the time you leave eligible employment status ACTUARIAL EQUIVALENT Two benefits are actuarially equivalent if they are of equal value, taking into account a specified interest rate and the expected period during which payments will be made. For example, assume a benefit of $100 per month payable beginning at age 65 has a present value of $11,120. Further, assume a benefit of $85 per month, payable as long as both you and your spouse are alive, has a present value of $11,120. These two benefits are actuarially equivalent because the present value is $11,120 for both. (Refer to page 13 for a definition of present value.) ANNUITY An annuity is a fixed sum paid out at regular intervals, either over a lifetime or for a designated period.


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