Exhibit 10.1.29
GREAT PLAINS ENERGY
INCORPORATED
SUPPLEMENTAL EXECUTIVE RETIREMENT
PLAN
(As Amended and Restated for
I.R.C. § 409A)
Amended February 10,
2009
GREAT PLAINS ENERGY
INCORPORATED
SUPPLEMENTAL EXECUTIVE
RETIREMENT PLAN
(As Amended and Restated for
I.R.C. § 409A)
BACKGROUND AND
PURPOSE
Kansas City Power & Light Company
("KCPL") adopted the Kansas City Power & Light Supplemental
Executive Retirement and Deferred Compensation Plan effective
November 2, 1993 (the "Original Plan"), to provide
opportunities for selected employees and members of KCPL's Board of
Directors to defer the receipt of their
compensation. The Original Plan was divided into two
separate plans effective as of April 1, 2000, the "Great Plains
Energy Incorporated Nonqualified Deferred Compensation Plan" (the
"Frozen NQDC Plan") and the Great Plains Energy Incorporated
Supplemental Executive Retirement Plan (as amended and restated
effective as of November 1, 2000, October 1, 2001 and October 1,
2003 (the "Frozen SERP").
As a result of the enactment of the American
Jobs Creation Act of 2004, which, in part, created a new Section of
the Internal Revenue Code ("Code Section 409A") governing and
requiring changes to non-qualified deferred compensation plans,
Great Plains Energy Incorporated has taken two actions which affect
the Frozen SERP.
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First, the
Frozen SERP has been frozen as of December 31, 2004 such that
no new participants will enter such Plan and no new amounts will
accrue under the Frozen SERP after December 31,
2004. Except to the extent to reflect that the Frozen
SERP has been frozen, no material modifications have been made to
the Frozen SERP. The Frozen SERP will continue to
operate as a "frozen" plan in accordance with its terms and with
respect to all accrued amounts as of December 31,
2004. A copy of the Frozen SERP is attached as Appendix
C to this Plan.
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Second, this
plan, the "Great Plains Energy Incorporated Supplemental Executive
Retirement Plan (as Amended and Restated for I.R.C.
§ 409A)" (the "Plan") is adopted effective generally as
of January 1, 2005. This Plan governs the payment
of benefits accrued after December 31, 2004 and, except as
specifically provided otherwise, is effective generally
January 1, 2005. Certain operations of the Plan
between December 31, 2004 and December 31, 2007,
including those operations in 2005 memorialized in Appendix B, were
completed in accordance with IRS Notice 2005-1 and in "good faith"
compliance with the proposed Treasury Regulations issued under Code
Section 409A. In addition, this Plan provides for
different benefit formulas for employees (1) hired by Great Plains
Energy Incorporated (or one of its affiliates) before
September 1, 2007, to reflect the choice employees were
allowed to make between maintaining their existing benefit
structure or receiving a slightly lower pension benefit but
eligible to receive a larger employer contribution under the Great
Plains Energy 401(k) Plan and (2) employees hired by Great Plains
Energy Incorporated (or one of its affiliates) on or after
September 1, 2007 .
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There is to be
no duplication of benefits under the Frozen SERP and this
Plan.
TABLE OF
CONTENTS
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ARTICLE
I
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DEFINITIONS
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1
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ARTICLE
II
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ELIGIBILITY FOR
BENEFITS
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5
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ARTICLE
III
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AMOUNT AND FORM
OF RETIREMENT BENEFITS
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5
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ARTICLE
IV
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PAYMENT OF
RETIREMENT BENEFITS
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16
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ARTICLE
V
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DEATH
BENEFITS
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18
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ARTICLE
VI
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MISCELLANEOUS
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19
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ADDENDUM TO
SECTION 3.6(c)
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DISTRIBUTIONS
FOR PARTICIPANTS TERMINATED DURING 2005
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GREAT PLAINS
ENERGY INCORPORATED FROZEN SUPPLEMENTAL EXECUTIVE RETIREMENT
PLAN
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ARTICLE I
DEFINITIONS
1.1
Definitions . For purposes of this Plan, the
following terms have the following meanings:
"Active Participant" means, with respect to a Plan Year, any employee
of the Company (i) who is an officer of the Company, or (ii) who is
an assistant officer of the Company and designated by the Board to
be an Active Participant.
"Basic Plan" means the Great Plains Energy Incorporated
Management Pension Plan, as amended. Except as otherwise
provided in this Plan, the following terms will have the same
meaning as in the Basic Plan:
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Years of
Credited Service
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"Board" means the Board of Directors of Great Plains
Energy Incorporated.
"Code" means the Internal Revenue Code of 1986, as
amended.
"Committee" means the Compensation and Development Committee
(or successor to such Committee) of the Board.
"Company" means Great Plains Energy Incorporated or its
successor and any wholly-owned subsidiary that has adopted, and
whose employees participate in, the Basic Plan; provided, however,
that for purposes of Section 6.4, "Company" shall mean Great Plains
Energy Incorporated or its successor.
"Converted
Participant" means a
Participant who was hired by the Company before September 1,
2007 and elected in 2007 to receive a reduced future rate of
benefit accrual under the Basic Plan.
“Frozen SERP”
means the Great Plains Energy
Incorporated Frozen Supplemental Executive Retirement Plan attached
hereto as Appendix C.
"Original Plan " means the Kansas City Power & Light
Supplemental Executive Retirement and Deferred Compensation Plan
effective November 2, 1993.
"Participant" means an individual who is or has been an Active
Participant and who has not received his entire benefit under this
Plan. A Participant can be a Converted Participant, a
Post-2007 Participant or a Stationary
Participant. Individuals who were continuing to accrue a
benefit under the Frozen SERP as of December 31, 2004 are also
Participants in this Plan.
"Plan" means this Great Plains Energy Incorporated
Supplemental Executive Retirement Plan (as Amended and Restated for
I.R.C. § 409A).
"Post-2007
Participant" means a
Participant that is hired by the Company on or after September 1,
2007.
"Separation from Service" or "Separates from
Service" means a
Participant's death, retirement or other termination of employment
with the Company. A Separation from Service will not
occur if a Participant is on military leave, sick leave or other
bona fide leave of
2
absence (such
as temporary employment by the government) if the period of such
leave does not exceed six months, or if longer, as long as the
Participant has a right (either by contract or by statute) to
reemployment with the Company. "Separation from Service"
will be interpreted in a manner consistent with Code Section
409A(a)(2)(A)(i).
" Specified Employee" means a Participant
that would be a "specified employee" as defined in Code Section
409A(a)(2)(B)(i) and Department of Treasury regulations and other
interpretive guidance issued thereunder. Effective
January 1, 2008, for purposes of this definition, the
"specified employee effective date" and the "specified employee
identification date" for purposes of identifying each Specified
Employee are established and memorialized in the Company's "I.R.C.
§ 409A Specified Employee Policy" as the same may be modified
from time to time in accordance with the rules and regulations of
Code Section 409A.
"Stationary Participant" means a Participant who was hired by the Company
before September 1, 2007 and elected in 2007 to maintain his
current level of benefits under the Basic Plan.
"Surviving Spouse" means a Participant's surviving spouse who is
eligible to receive a surviving spouse's benefit under the Basic
Plan.
"Years of Benefit Service"
means, except as otherwise provided
in Sections 3.3 and 3.6, the sum of:
(i) the
Years of Credited Service (including fractions thereof) an Active
Participant is credited with under the Basic Plan except that any
Years of Credited Service incurred after a Participant ceases to be
an Active Participant due to the Participant having ceased to
remain an Officer or Assistant Officer of the
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Company will
not be counted under this Plan unless such Participant again
becomes an Active Participant; and
(ii) where
a Participant receives benefits under the Company's Long-Term
Disability Plan for a period of time but returns as an Active
Participant before his Normal Retirement Date, the Years of
Credited Service the Participant would have incurred under the
Basic Plan had he been an Active Participant and been working on a
full-time basis during such period of disability.
For example and for illustration purposes only,
assume (1) an individual has been employed by the Company for
fifteen years and, in the sixteenth year of the individual's
employment, the individual becomes an officer of the Company, (2)
the individual works for an additional five years as an officer of
the Company, and (3) the individual ceases to be an officer (or an
assistant officer) of the Company and works for an additional five
years. For purposes of this Plan, the individual will
have 20 Years of Benefit Service.
1.2
General Interpretive Principles . (a) Words in
the singular include the plural and vice versa, and words of one
gender include the other gender, in each case, as the context
requires; (b) references to Sections are references to the Sections
of this Plan unless otherwise specified; (c) the word "including"
and words of similar import when used in this Plan mean "including,
without limitation," unless otherwise specified; and (d) any
reference to any U.S. federal, state, or local statute or law will
be deemed to also refer to all amendments or successor provisions
thereto, as well as all rules and regulations promulgated under
such statute or law, unless the context otherwise
requires.
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ARTICLE II
ELIGIBILITY FOR
BENEFITS
2.1 Except
as provided in Section 2.2, each Participant will receive a
supplemental retirement benefit in accordance with the terms of
this Plan.
2.2 Notwithstanding
any provision of this Plan to the contrary,
(a) this
Plan will not affect the rights and benefits of any person who was
not an employee of the Company on or after April 1, 2000, as
such person's rights and benefits, if any, or the rights and
benefits of such person's spouse or beneficiaries will
be governed by the Original Plan; and
(b) this
Plan will not affect the rights and benefits of any person who was
an employee on or after April 1, 2000 but not an employee after
December 31, 2004, as such person's rights and benefits, if
any, or the rights and benefits of such person's spouse or
beneficiaries will be governed by the Frozen SERP.
ARTICLE III
AMOUNT AND FORM OF RETIREMENT
BENEFITS
3.1
Normal Retirement . A Participant's monthly
supplemental retirement benefit payable under the Plan as a Single
Life Pension at the Participant's Normal Retirement Date will
depend on whether the Participant is a "Stationary Participant," a
"Converted Participant" or a "Post-2007 Participant."
3.1.1 Normal
Retirement – Stationary Participant . A
Stationary Participant's monthly supplemental retirement benefit
payable under the Plan as a Single Life Pension at the Stationary
Participant's Normal Retirement Date will be equal to (1) the sum
of two
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portions, the
first of which is described in Paragraph (a) and the second of
which is described in Paragraph (b) of this Section 3.1.1 reduced
by (2) the amount determined in Paragraph (c) of this Section
3.1.1.
(a) The
first of those portions will make up for the difference between an
accrual rate of 2% and an accrual rate of 1 2/3% under the
Basic Plan for each of the Stationary Participant's Years of
Benefit Service.
(b) The
second portion will make up for the benefit otherwise lost to the
Stationary Participant under the Basic Plan due to:
(i) compensation
deferred under the Great Plains Energy Incorporated Nonqualified
Deferred Compensation Plan (as Amended and Restated for I.R.C.
§ 409A), the Frozen NQDC Plan, or under Section VI
of the Original Plan,
(ii) any
amounts disregarded under the Basic Plan pursuant to the provisions
of Code Sections 401(a)(17), 415, or similar provisions restricting
the amount of compensation or benefits that may be considered under
plans qualified pursuant to Code Section 401(a), and
(iii) any
forfeiture of benefits under the Basic Plan due to lack of vesting,
but only in the event that the forfeiture of benefit under the
Basic Plan due to the lack of vesting is not otherwise paid to the
Stationary Participant under Subparagraph (a)(iii) of Section 3 of
the Change in Control Severance Agreement (or any equivalent
provision in a successor document) entered into by the Company and
the Stationary Participant.
(c) The
sum of the amount determined in (a) and (b) will be reduced by the
amount of the Stationary Participant's monthly supplemental
retirement benefit he or she
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is entitled to
receive under the Frozen SERP, payable under the Frozen SERP as a
Single Life Pension at the Participant's Normal Retirement
Date. If a Stationary Participant was a former employee
of the Company (and an Active Participant in the Plan) and then
rehired by the Company, the sum of the amount determined in (a) and
(b) will be further reduced by any amounts the Stationary
Participant received under this Plan in connection with such
Participant's earlier Separation from Service.
3.1.2 Normal
Retirement – Converted Participant . A
Converted Participant's monthly supplemental retirement benefit
payable under the Plan as a Single Life Pension at the Converted
Participant's Normal Retirement Date will be equal to (1) the sum
of two portions, the first of which is described in Paragraph (a)
and which further consists of a "Pre-2008 Benefit" and a "Post-2008
Benefit" and the second of which is described in Paragraph (b) of
this Section 3.1.2, reduced by (2) the amount determined in
Paragraph (c) of this Section 3.1.2.
(a) The
first of those portions will make up for the difference between the
accrual rates under this Plan (both before and after the Converted
Participant elected to change future benefit accruals under the
Basic Plan) and the accrual rate under the Basic Plan for each of
the Converted Participant's Years of Benefit Service, and for the
difference between computations of monthly salary using computation
periods of more than 36 consecutive moths rather than 36
consecutive months. For all of a Converted Participant's
Years of Benefit Service accrued as of December 31, 2007, this
Section 3.1.2(a) will make up for the difference between an accrual
rate of 2% and an accrual rate of 1-2/3% under the Basic Plan (the
"Pre-2008 Benefit"). For all of a Converted
Participant's Years of Benefit Service after December 31,
2007, this Section 3.1.2(a) will
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make up for the
difference between an accrual rate of 1.58% and an accrual rate of
1.25% under the Basic Plan (the "Post-2008 Benefit").
(b) The
second portion will make up for the benefit otherwise lost to the
Converted Participant under the Basic Plan due to:
(i) compensation
deferred under the Great Plains Energy Incorporated Nonqualified
Deferred Compensation Plan (as Amended and Restated for I.R.C.
§ 409A), the Frozen NQDC Plan, or under Section VI
of the Original Plan,
(ii) any
amounts disregarded under the Basic Plan pursuant to the provisions
of Code Sections 401(a)(17), 415, or similar provisions restricting
the amount of compensation or benefits that may be considered under
plans qualified pursuant to Code Section 401(a), and
(iii) any
forfeiture of benefits under the Basic Plan due to lack of vesting,
but only in the event that the forfeiture of benefit under the
Basic Plan due to the lack of vesting is not otherwise paid to the
Converted Participant under Subparagraph (a)(iii) of Section 3 of
the Change in Control Severance Agreement (or any equivalent
provision in a successor document) entered into by the Company and
the Converted Participant.
(c) The
sum of the amount determined in (a) and (b) will be reduced by the
amount of the Converted Participant's monthly supplemental
retirement benefit he or she is entitled to receive under the
Frozen SERP, as if it were paid under the Frozen SERP as a Single
Life Pension at the Converted Participant's Normal Retirement
Date. If a Converted Participant was a former employee
of the Company (and an Active Participant in the Plan) and then
rehired by the Company, the sum of the amount determined in
(a)
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and (b) will be
further reduced by any amounts the Converted Participant received
under this Plan in connection with such Participant's earlier
Separation from Service.
3.1.3 Normal
Retirement – Post-2007 Participant . A
Post-2007 Participant's monthly supplemental retirement benefit
payable under the Plan as a Single Life Pension at the Post-2007
Participant's Normal Retirement Date will be equal to (1) the sum
of two portions, the first of which is described in Paragraph (a)
of this Section 3.1.3 and the second of which is described in
Paragraph (b) of this Section 3.1.3, reduced by (2) any amount
described in Paragraph (c) of this Section 3.1.3.
(a) The
first of those portions will make up for the difference between an
accrual rate of 1.58% and an accrual rate of 1.25% under the Basic
Plan for each of the Participant's Years of Benefit Service, and
for the difference between computations of monthly salary using
computation periods of more than 36 consecutive months rather than
of 36 consecutive months.
(b) The
second portion will make up for the benefit otherwise lost to the
Post-2007 Participant under the Basic Plan due to:
(i) compensation
deferred under the Great Plains Energy Incorporated Nonqualified
Deferred Compensation Plan (as Amended and Restated for I.R.C.
§ 409A),
(ii) any
amounts disregarded under the Basic Plan pursuant to the provisions
of Code Sections 401(a)(17), 415, or similar provisions restricting
the amount of compensation or benefits that may be considered under
plans qualified pursuant to Code Section 401(a), and
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(iii) any
forfeiture of benefits under the Basic Plan due to lack of vesting,
but only in the event that the forfeiture of benefit under the
Basic Plan due to the lack of vesting is not otherwise paid to the
Post-2007 Participant under Subparagraph (a)(iii) of Section 3 of
the Change in Control Severance Agreement (or any equivalent
provision in a successor document) entered into by the Company and
the Post-2007 Participant.
(c) If
a Post-2007 Participant was a former employee of the Company (and
an Active Participant in the Plan) and then rehired by the Company,
the sum of the amount determined in (a) and (b) will be further
reduced by any amounts the Post-2007 Participant received under
this Plan in connection with such Participant's earlier Separation
from Service.
3.2
Benefits Payable Prior to Normal Retirement Date
.
3.2.1
Stationary Participant . In the event a
Stationary Participant terminates employment with the Company
before reaching his Normal Retirement Date, the monthly
supplemental retirement benefit payable under the Plan will be
determined by computing the monthly retirement benefit necessary to
make up for the difference in accrual rates described in Paragraph
3.1.1(a), for the benefit otherwise lost to the Stationary
Participant due to the factors described in Paragraph 3.1.1(b),
and, for the difference between computations of monthly salary
using computation periods of more than 36 consecutive months rather
than of 36 consecutive months, reduced to reflect the Frozen SERP
benefit described in Paragraph 3.1.1(c), and then, if the
Stationary Participant is receiving his supplemental retirement
benefit prior to age 62, further reduced to reflect the early
payment of the benefit and the Participant's younger age in the
same circumstances and to
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the same extent
as the Single Life Pension under the Basic Plan is reduced to
reflect these factors. The result of the above
calculation is that subparagraph (a) or (b), below, whichever is
applicable, will apply:
(a) There
will be no early retirement reduction factor applied to the
retirement benefit of a Stationary Participant who has satisfied
all of the requirements set forth in the Basic Plan for the Rule of
85 early retirement benefit.
(b) The
Basic Plan's early retirement reduction factor of .25% per month
will apply to the retirement benefit of a Stationary Participant
who does not satisfy all of the requirements set forth in the Basic
Plan for the Rule of 85 early retirement benefit, and whose
employment with the Company terminates before his 62
nd birthday.
3.2.2 Converted
Participant . In the event a Converted Participant
terminates employment with the Company before reaching his Normal
Retirement Date, the monthly supplemental retirement benefit
payable under the Plan will be determined by computing the monthly
retirement benefit necessary to make up for the difference in
accrual rates described in Paragraph 3.1.2(a), for the benefit
otherwise lost to the Participant due to the factors described in
Paragraph 3.1.2(b), and for the difference between computations of
monthly salary using computation periods of more than 36
consecutive months rather than of 36 consecutive months, reduced to
reflect the Frozen SERP benefit described in Paragraph 3.1.2(c),
and then, if the Converted Participant is receiving his
supplemental retirement benefit prior to age 62, further reduced to
reflect the early payment of the benefit and the Converted
Participant's younger age in the same circumstances and to the same
extent as the Single Life Pension under the Basic Plan is reduced
to reflect these factors. The result of the above
calculation is that subparagraph (a)(i) or (ii) below,
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whichever is
applicable, will apply to the Converted Participant's Pre-2008
Benefit and that subparagraph (b)(i) or (ii) below, whichever is
applicable, will apply to the Converted Participant's Post-2008
Benefit:
(a) The
Converted Participant's Pre-2008 Benefit will be subject to (i) or
(ii) below:
(i) There
will be no early retirement reduction factor applied to a Converted
Participant's Pre-2008 Benefit who has satisfied all of the
requirements set forth in the Basic Plan for the Rule of 85 early
retirement benefit.
(ii) The
Basic Plan's early retirement reduction factor of .25% per month
will apply to a Converted Participant's Pre-2008 Benefit who does
not satisfy all of the requirements set forth in the Basic Plan for
the Rule of 85 early retirement benefit, and whose employment with
the Company terminates before his 62 nd birthday.
(b) The
Converted Participant's Post-2008 Benefit will be subject to (i) or
(ii) below:
(i) For
a Converted Participant whose benefit commences before age 62, the
Post-2008 Benefit will be reduced by .41666% per month for each
month before the Participant's 62 nd birthday the benefit commences.
(ii) For
a Participant whose benefit commences on or after age 62, there
will be no early retirement reduction factor.
3.2.3 Post-2007
Participant . In the event a Post-2007 Participant
terminates employment with the Company before reaching his Normal
Retirement Date, the monthly supplemental retirement benefit
payable under the Plan will be determined by computing
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the monthly
retirement benefit necessary to make up for the difference in
accrual rates described in Paragraph 3.1.3(a), for the benefit
otherwise lost to the Post-2007 Participant due to the factors
described in Paragraph 3.1.3(b), and for the difference between
computations of monthly salary using computation periods of more
than 36 consecutive months rather than of 36 consecutive months,
and, if the Post-2007 Participant's benefit commences before the
Participant's 62 nd birthday, reduced by .41666% per month for each
month before the Participant's 62 nd birthday the benefit commences.
3.3
Disability Retirement . A Participant who
Separates from Service due to a total disability for which the
Participant is eligible to receive benefits under the Company's
Long-Term Disability Plan and who is not otherwise eligible for
benefits under this Plan on account of returning to status as an
Active Participant will be eligible for a supplemental retirement
benefit. The supplemental retirement benefit will
commence on the Participant's Normal Retirement Date and the amount
of benefit will be determined either in accordance with Section
3.1.1, 3.1.2 or 3.1.3 (as the case may be depending on whether the
Participant was a Stationary Participant, a Converted Participant
or Post-2007 Participant, respectively, at the time of the
Participant's Separation from Service on account of Disability)
except that his or her Years of Benefit Service will include the
period from the date of Disability to the Participant's Normal
Retirement Date. With respect to a Stationary
Participant, in no event will Years of Credited Service or Years of
Benefit Service in excess of 30 be considered.
3.4
Form of Payment . The Participant may elect the
form in which benefits under the Plan are to be paid from the forms
set forth in this Section, the value of each of which will be the
Actuarial Equivalent of the value of each of the
others. Except as provided in Section 4.1,
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payment will be
made, in the case of a lump sum payment, or will begin, in the case
of a pension, in accordance with the Participant's election made as
provided in Section 3.5.
(a)
Lump Sum Payment . This form provides
the Participant with a one-time, single sum payment of the
Participant's entire benefit under the Plan.
(b)
Installment Annuity Payments . This form provides
the Participant with a series of installment payments over the life
of the Participant or, if elected by a Participant, the joint lives
of the Participant and his spouse. To the full extent
that each of the below forms of annuity payments constitutes a
"life annuity" as defined in Treasury Regulations §
1.409A-2(b)(2)(ii), a participant's change in designated
beneficiary or a change in the form of payment from one type of
life annuity to another will not be considered a change in the time
and form of payment provided that any such change is made before
any annuity payment has commenced and provided further that the
annuities are actuarially equivalent applying reasonable actuarial
methods and assumptions. The forms of annuity payments
are as follows:
(i)
Single Life Pension . A Single Life Pension pays
the Participant a monthly