Exhibit(10)(iii)(A)(17.12)
AMENDMENT TO
CINCINNATI BELL MANAGEMENT
PENSION PLAN
The Cincinnati Bell Management
Pension Plan (the “Plan”) is hereby amended, effective
as of January 1, 2002 and in order (i) to reflect the
requirements of the Internal Revenue Service’s final
regulations issued under Internal Revenue Code section 415 and
(ii) to include in one Plan amendment all changes that have
been made since the end of the Plan’s plan year that ended on
December 31, 2001 in the Plan’s definition of a
participant’s compensation that is used in applying the
Plan’s benefit limits and the Plan’s benefit limits
that are intended to comply with Internal Revenue Code section 415,
in the following respects.
1. Section 10.1 of the Plan is
amended in its entirety to read as follows.
10.1 Maximum Plan Benefit
.
10.1.1 General Rules .
Subject to the other provisions of this Section 10.1 but
notwithstanding any other provision of this Plan to the contrary,
in no event, during any limitation year, shall the annual amount of
a Participant’s retirement benefit accrued or payable at any
time under this Plan, when expressed in the form of a Single Life
Annuity and in accordance with the adjustments described in the
following provisions of this Section 10.1, exceed the maximum
permissible benefit. For purposes of this Section 10.1 and
subject to the adjustments described in the following provisions of
this Section 10.1, the “maximum permissible
benefit” is the lesser of the defined benefit dollar
limitation, as defined in paragraph (a) of this Subsection
10.1.1, or the defined benefit compensation limitation, as defined
in paragraph (b) of this Subsection 10.1.1.
(a) The defined benefit dollar
limitation . For purposes of this Section 10.1, the
“defined benefit dollar limitation” is $160,000, as
adjusted, effective January 1 of each calendar year, under
section 415(d) of the Code in such manner as the Secretary of the
Treasury or his delegate shall prescribe. A limitation as adjusted
under Code section 415(d) as of the January 1 of any calendar
year shall apply to the limitation year ending with or within such
calendar year.
(b) The defined benefit
compensation limitation . For purposes of this
Section 10.1 and subject to subparagraphs (i) and
(ii) of this paragraph (b), the “defined benefit
compensation limitation” is 100% of the Participant’s
average annual compensation received during the three consecutive
calendar years which produce the highest dollar result (or, for any
limitation year prior to the limitation year that commences as of
January 1, 2006, 100% of the Participant’s average
annual compensation received during the three consecutive calendar
years both during which he is a Participant in the Plan and which
produce the highest dollar result).
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(i) Notwithstanding the foregoing
provisions of this paragraph (b), if the Participant is an Employee
for less than three consecutive calendar years (or, for any
limitation year prior to the limitation year that commences as of
January 1, 2006, if the Participant is both an Employee and a
Participant for less than three consecutive calendar years), the
Participant’s “defined benefit compensation
limitation” shall for purposes of this Section 10.1 be
deemed to be the quotient obtained by dividing (1) the
Participant’s compensation received during the
Participant’s longest consecutive period of service as an
Employee (or, for any limitation year prior to the limitation year
that commences as of January 1, 2006, the Participant’s
compensation received during the Participant’s longest
consecutive period of service as both an Employee and a
Participant) by (2) the number of years in that period
(including fractions of years, but not less than one
year).
(ii) For purposes of the foregoing
provisions of this paragraph (b), if the Participant ceases to be
an Employee and is subsequently rehired as an Employee, all years
for which the Participant performs no services as an Employee and
receives no compensation for his services as an Employee (for
purposes of this subparagraph (ii), the “break period”)
shall be ignored in determining the Participant’s defined
benefit compensation limitation and the year of service immediately
prior to and the year of service immediately after the break period
shall be treated as if they were consecutive.
10.1.2 Necessary Terms . For
purposes of the restrictions and rules set forth in this
Section 10.1, the following terms shall apply.
(a) A Participant’s
“compensation” shall refer to his Compensation as
defined in Section 10.4 below.
(b) The “limitation
year” for purposes of the restrictions under this
Section 10.1 shall be the Plan Year.
10.1.3 Procedures for Applying
Limitation . This Subsection 10.1.3 describes the adjustments
that are made in a Participant’s retirement benefit accrued
or payable under the Plan, in the defined benefit dollar
limitation, and in the defined benefit compensation limitation when
determining whether such retirement benefit meets the requirements
of Subsection 10.1.1 above. For any limitation year, the
Participant’s retirement benefit accrued or payable at any
time under the Plan shall be limited to the extent necessary so
that, if such limit would be deemed to have applied under the
provisions of the Plan that do not include the provisions of this
Section 10.1, the annual amount of the actual equivalent
benefit-form Single Life Annuity determined in Step 1 below cannot
and shall not exceed the lesser of the annual amount of the maximum
equivalent age-adjusted Single Life Annuity determined in Step 2
below or the annual amount of the maximum equivalent
compensation-adjusted Single Life Annuity determined in Step 3
below. ðÕÍ,ºn
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(a) Step 1 : This Step 1
determines the annual amount of a hypothetical Single Life Annuity
that, if it were paid to the Participant and commenced as of the
commencement date of the Participant’s actual retirement
benefit under the Plan (for purposes of this Subsection 10.1.3, the
“actual commencement date”), would have an annual
amount calculated in accordance with subparagraphs (i) and
(ii) of this paragraph (a). Such hypothetical Single Life
Annuity is referred to in this Section 10.1 as the
Participant’s “actual equivalent benefit-form Single
Life Annuity.”
(i) When the form of the
Participant’s actual retirement benefit under the Plan is a
Single Life Annuity or a Qualified Joint and Survivor Annuity that
commences as of the actual commencement date, then the annual
amount of the actual equivalent benefit-form Single Life Annuity
shall be equal to the annual amount that would apply to the
Participant’s actual retirement benefit under the Plan (that
is paid in the form of a Single Life Annuity or a Qualified Joint
and Survivor Annuity that commences as of the actual commencement
date) if the provisions of this Section 10.1 were
disregarded.
(ii) When the form of the
Participant’s actual retirement benefit under the Plan is a
single sum payment (which is the only form of benefit other than a
Single Life Annuity or a Qualified Joint and Survivor Annuity
available under the Plan) that is made as of the actual
commencement date, then the annual amount of the actual equivalent
benefit-form Single Life Annuity shall be equal to the greatest
of:
(A) the annual amount that would
make the actual equivalent benefit-form Single Life Annuity
actuarially equivalent to the Participant’s actual retirement
benefit under the Plan (that is paid in the form of a single sum
payment that is made as of the actual commencement date) if the
provisions of this Section 10.1 did not apply and if the
actuarial assumptions used to determine such actuarial equivalence
were the combination of the interest rate assumption and the
mortality assumption that is specified and would be used under the
other provisions of the Plan for determining the actuarial
equivalence of two benefits whose only difference is one is paid in
the form of an Annuity and the other is paid in the form of a
single sum payment;
(B) the annual amount that would
make the actual equivalent benefit-form Single Life Annuity
actuarially equivalent to the Participant’s actual retirement
benefit under the Plan (that is paid in the form of a single sum
payment that is made as of the actual commencement date) if the
provisions of this Section 10.1 did not apply and if the
actuarial assumptions used to determine such actuarial equivalence
were the applicable interest rate and the applicable mortality
assumption (as such terms are defined in Subsection 10.1.4 below).
Notwithstanding the foregoing, the reference to “the
applicable interest rate” in the immediately preceding
sentence shall be deemed to be a reference to “an interest
rate of 5.5% per annum” if the Participant’s
actual retirement benefit under the Plan is paid in the form of a
single sum payment as of any date that occurs during a Plan Year
that begins on or after January 1, 2004; or
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(C) if and only if the
Participant’s actual retirement benefit under the Plan is
paid in the form of a single sum payment as of any date that occurs
during a Plan Year that begins on or after January 1, 2006,
the quotient produced by dividing (1) the annual amount that
would make the actual equivalent benefit-form Single Life Annuity
actuarially equivalent to the Participant’s actual retirement
benefit under the Plan (that is paid in the form of a single sum
payment that is made as of the actual commencement date) if the
provisions of this Section 10.1 did not apply and if the
actuarial assumptions used to determine such actuarial equivalence
were the applicable interest rate and the applicable mortality
assumption (as such terms are defined in Subsection 10.1.4 below)
by (2) 1.05.
(b) Step 2 : This Step 2
determines the annual amount of a hypothetical Single Life Annuity
that, if it were paid to the Participant and commenced as of the
actual commencement date, would have an annual amount calculated in
accordance with subparagraphs (i), (ii), and (iii) of this
paragraph (b). Such hypothetical Single Life Annuity is referred to
in this Section 10.1 as the Participant’s “maximum
equivalent age-adjusted Single Life Annuity.”
(i) If the actual commencement date
occurs before the date the Participant first attains age 65 and on
or after the date on which the Participant first attains age 62,
then the annual amount of the maximum equivalent age-adjusted
Single Life Annuity shall be equal to the defined benefit dollar
limitation set forth in Subsection 10.1.1(a) above (as adjusted for
the limitation year that includes the actual commencement
date).
(ii) If the actual commencement date
occurs before the date on which the Participant first attains age
62, then the annual amount of the maximum equivalent age-adjusted
Single Life Annuity shall be equal to the lesser of:
(A) the product obtained by
multiplying (1) the defined benefit dollar limitation set
forth in Subsection 10.1.1(a) above (as adjusted for the limitation
year that includes the actual commencement date) by (2) a
fraction that has a numerator equal to the annual amount of the
Participant’s actual retirement benefit under the Plan that
would apply if it was paid in the form of a Single Life Annuity
that commences as of the actual commencement date and if the
provisions of this Section 10.1 were disregarded and a
denominator equal to the annual amount of the Participant’s
actual retirement benefit under the Plan that would apply if it was
paid in the form of a Single Life Annuity that commences as of the
date on which the Participant first attains age 62 and if the
provisions of this Section 10.1 were disregarded;
or
(B) the annual amount that would
make the maximum equivalent age-adjusted Single Life Annuity
actuarially equivalent to a hypothetical retirement benefit that
would apply to the Participant under the Plan if it was paid in the
form of a Single Life Annuity that commences as of the date on
which the Participant first attains age 62, if its annual amount
were the
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defined benefit dollar limitation
set forth in Subsection 10.1.1(a) above (as adjusted for the
limitation year that includes the actual commencement date), and if
the actuarial assumptions used to determine such actuarial
equivalence were an interest rate of 5% per annum and the
applicable mortality assumption (as such term is defined in
Subsection 10.1.4 below and applied by expressing the
Participant’s age based on completed months as of the actual
commencement date). Notwithstanding the foregoing
provision
