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Exhibit 10.2
ELEVENTH AMENDMENT TO THE CONNECTICUT WATER COMPANY
EMPLOYEES’ RETIREMENT PLAN (as amended and restated as of
January 1, 1997, except as otherwise provided therein)
1. The following new Section 3.4 is added to the Plan:
“3.4 Elimination
of Further Participation. Notwithstanding the foregoing,
any person who commences employment with the Employer on or after
January 1, 2009 shall not be eligible to participate in or
accrue benefits under the Plan. Furthermore, anyone who
terminated employment with the Employer and who is rehired by the
Employer on or after January 1, 2009 shall not be eligible to
participate or accrue additional benefits under the
Plan.”
2. The following new Article XVI is added to the Plan:
“ARTICLE XVI LIMITATION ON BENEFITS
16.1 The
limitations of this Article XVI shall apply in Limitation Years
beginning on or after July 1, 2007, except as otherwise provided
herein. This Article supersedes the provisions of
Sections 4.4 and 4.5.
16.2 The
Annual Benefit otherwise payable to a Participant under the Plan at
any time shall not exceed the Maximum Permissible
Benefit. If the benefit the Participant would otherwise
accrue in a Limitation Year would produce an Annual Benefit in
excess of the Maximum Permissible Benefit, the benefit shall be
limited (or the rate of accrual reduced) to a benefit that does not
exceed the Maximum Permissible Benefit.
16.3 If
the Participant is, or has ever been, a Participant in another
qualified defined benefit plan (without regard to whether the plan
has been terminated) maintained by the Employer or a predecessor
employer, the sum of the Participant's Annual Benefits from all
such plans may not exceed the Maximum Permissible
Benefit. Where the Participant's employer-provided
benefits under all such defined benefit plans (determined as of the
same age) would exceed the Maximum Permissible Benefit applicable
at that age, then the Participant’s Annual Benefits under
this Plan shall be limited so that the Maximum Permissible Benefit
is not exceeded.
16.4 The
application of the provisions of this Article shall not cause the
Maximum Permissible Benefit for any Participant to be less than the
Participant's accrued benefit under all the defined benefit plans
of the Employer or a predecessor employer as of the end of the last
Limitation Year beginning before July 1, 2007 under provisions of
the plans that were both adopted and in effect before April 5,
2007. The preceding sentence applies only if the
provisions of such defined benefit plans that were both adopted and
in effect before April 5, 2007 and satisfied the applicable
requirements of statutory provisions, regulations, and other
published guidance relating to Section 415 of the Code in effect as
of the end of the last Limitation Year beginning before July 1,
2007, as described in Section 1.415(a)-1(g)(4) of the Income Tax
Regulations.
16.5 The
limitations of this Article shall be determined and applied taking
into account the rules in Section 16.7.
16.6 Definitions.
(a) Annual
Benefit:
(1) A
benefit that is payable annually in the form of a straight life
annuity. Except as provided below, where a benefit is
payable in a form other than a straight life annuity, the benefit
shall be adjusted to an actuarially equivalent straight life
annuity that begins at the same time as such other form of benefit
and is payable on the first day of each month, before applying the
limitations of this Article. For a Participant who has
or will have distributions commencing at more than one Annuity
Starting Date, the Annual Benefit shall be determined as of each
such Annuity Starting Date (and shall satisfy the limitations of
this Article as of each such date), actuarially adjusting for past
and future distributions of benefits commencing at the other
Annuity Starting Dates. For this purpose. the
determination of whether a new starting date has occurred shall be
made without regard to Section 1.401(a)-20, Q&A 10(d), and with
regard to Section 1.415(b)-1(b)(1)(iii)(B) and (C) of the Income
Tax Regulations.
(2) No
actuarial adjustment to the benefit shall be made for (A) survivor
benefits payable to a surviving spouse under a qualified joint and
survivor annuity to the extent such benefits would not be payable
if the Participant's benefit were paid in another form; (B)
benefits that are not directly related to retirement benefits (such
as a qualified disability benefit, preretirement incidental death
benefits, and post-retirement medical benefits); or (C) the
inclusion in the form of benefit of an automatic benefit increase
feature, provided the form of benefit is not subject to Section
417(e)(3) of the Code and would otherwise satisfy the limitations
of this Article, and the Plan provides that the amount payable
under the form of benefit in any Limitation Year shall not exceed
the limits of this Article applicable at the Annuity Starting Date,
as increased in subsequent years pursuant to Section 415(d) of the
Code. For this purpose, an automatic benefit increase
feature is included in a form of benefit if the form of benefit
provides for automatic, periodic increases to the benefits paid in
that form.
(3) The
determination of the Annual Benefit shall take into account social
security supplements described in Section 411(a)(9) of the Code and
benefits transferred from another defined benefit plan, other than
transfers of distributable benefits pursuant Section 1.411(d)-4,
Q&A 3(c), of the Income Tax Regulations, but shall disregard
benefits attributable to employee contributions or rollover
contributions.
(4) Effective
for distributions in Plan Years beginning after December 31,
2003, the determination of actuarial equivalence of forms of
benefit other than a straight life annuity shall be made in
accordance with subparagraphs (A) or (B) below.
(A) Benefit
Forms Not Subject to Section 417(e)(3) of the Code: The
straight life annuity that is actuarially equivalent to the
Participant's form of benefit shall be determined under this
subparagraph (A) if the form of the Participant's benefit is either
(I) a nondecreasing annuity (other than a straight life annuity)
payable for a period of not less than the life of the Participant
(or, in the case of a qualified pre-retirement survivor annuity,
the life of the surviving Spouse), or (II) an annuity that
decreases during the life of the Participant merely because of (a)
the death of the survivor annuitant (but only if the reduction is
not below 50% of the benefit payable before the death of the
survivor annuitant), or (b) the cessation or reduction of Social
Security supplements or qualified disability payments (as defined
in Section 401(a)(11) of the Code).
(i) Limitation
Years beginning before July 1, 2007. For Limitation
Years beginning before July 1, 2007, the actuarially equivalent
straight life annuity is equal to the annual amount of the straight
life annuity commencing at the same Annuity Starting Date that has
the same actuarial present value as the Participant's form of
benefit computed using whichever of the following produces the
greater annual amount: (I) the interest rate and
mortality table (or other tabular factor) specified in the Plan for
adjusting benefits in the same form: and (II) a 5 percent interest
rate assumption and the Applicable Mortality Table referenced in
Exhibit I of the Plan for that Annuity Starting Date.
(ii) Limitation
Years beginning on or after July 1, 2007. For Limitation
Years beginning on or after July 1, 2007, the actuarially
equivalent straight life annuity is equal to the greater of (I) the
annual amount of the straight life annuity (if any) payable to the
Participant under the Plan commencing at the same Annuity Starting
Date as the Participant's form of benefit; and (II) the annual
amount of the straight life annuity commencing at the same Annuity
Starting Date that has the same actuarial present value as the
Participant's form of benefit, computed using a 5 percent interest
rate assumption and the Applicable Mortality Table defined in
Exhibit I of the Plan for that Annuity Starting Date.
(B) Benefit
Forms Subject to Section 417(e)(3) of the Code: The
straight life annuity that is actuarially equivalent to the
Participant's form of benefit shall be determined under this
subparagraph (B) if the form of the Participant's benefit is other
than a benefit form described in subparagraph (A). In
this case, the actuarially equivalent straight life annuity shall
be determined as follows:
(i) Annuity
Starting Date in Plan Years Beginning After 2005. If the
Annuity Starting Date of the Participant's form of benefit is in a
Plan Year beginning after 2005, the actuarially equivalent straight
life annuity is equal to the greatest of (I) the annual amount of
the straight life annuity commencing at the same Annuity Starting
Date that has the same actuarial present value as the Participant's
form of benefit, computed using the interest rate and mortality
table (or other tabular factor) specified in the Plan for adjusting
benefits in the same form; (II) the annual amount of the straight
life annuity commencing at the same Annuity Starting Date that has
the same actuarial present value as the Participant's form of
benefit, computed using a 5.5 percent interest rate assumption and
the Applicable Mortality Table defined in Exhibit I of the Plan;
and (III) the annual amount of the straight life annuity commencing
at the same Annuity Starting Date that has the same actuarial
present value as the Participant's form of benefit, computed using
the applicable interest rate defined in Exhibit I of the Plan and
the Applicable Mortality Table defined in Exhibit I of the Plan,
divided by 1.05.
(ii) Annuity
Starting Date in Plan Years Beginning in 2004 or
2005. If the Annuity Starting Date of the Participant's
form of benefit is in a Plan Year beginning in 2004 or 2005, the
actuarially equivalent straight life annuity is equal to the annual
amount of the straight life annuity commencing at the same Annuity
Starting Date that has the same actuarial present value as the
Participant's form of benefit computed using whichever of the
following produces the greater annual amount: (I) the
interest rate and the mortality table (or other tabular factor)
specified in the Plan for adjusting benefits in the same form; and
(II) a 5.5 percent interest rate assumption and the Applicable
Mortality Table defined in Exhibit I of the Plan.
(b) Compensation:
(1) Information
required to be reported under Sections 6041, 6051, and 6052 of the
Code (wages, tips, and other compensation as reported on Form
W-2). Compensation is defined as wages, within the
meaning of Section 3401(a), and all other payments of compensation
to an employee by the Employer (in the course of the Employer's
trade or business) for which the Employer is required to furnish
the Employee a written statement under Sections 6041(d),
6051(a)(3), and 6052 of the Code. Compensation shall be
determined without regard to any rules under Section 3401(a) of the
Code that limit the remuneration included in wages based on the
nature or location of the employment or the services performed
(such as the exception for agricultural labor in Section 3401(a)(2)
of the Code).
(2) Except
as provided herein, for Limitation Years beginning after
December 31, 1991, Compensation for a Limitation Year is the
Compensation actually paid or made available during such Limitation
Year.
(3) For
Limitation Years beginning on or after July 1, 2007, Compensation
for a Limitation Year shall also include Compensation paid by the
later of 2½ months after an Employee's severance from
employment with the Employer maintaining the Plan or the end of the
Limitation Year that includes the date of the Employee's severance
from employment with the Employer maintaining the Plan, if:
(A) the
payment is regular Compensation for services during the Employee's
regular working hours, or Compensation for services outside the
Employee's regular working hours (such as overtime or shift
differential), commissions. bonuses, or other similar payments,
and, absent a severance from employment, the payments would have
been pa
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