This Employee Benefits Plan Agreement involves
Title: Ninth Amendment to Aon Pension Plan
Industry: Insurance (Miscellaneous) Sector: Financial
WHEREAS, the Aon Pension Plan (the "Plan") is currently set out in the 2002 Restatement of the Aon Pension Plan, which was generally effective as of January 1, 2002 (the "Restatement").
WHEREAS, the Board of Directors of Aon Corporation desires to amend the Plan pursuant to the authority to do so under Section 9.01 of the Plan.
NOW, THEREFORE, the Plan, as set out in the Restatement and as amended from time to time, is further amended as follows:
1. Section 2.01. By substituting for Section 2.01 a new Section 2.01, effective as of January 1, 2007, to read as follows:
"Accrued Retirement Income" shall mean the monthly amount determined in accordance with Section 4.01 of the Plan, but based on Years of Service, Final Average Earnings and Annual Earnings, if applicable, as of any date before the Participant's Normal Retirement Date; provided , however , that the Accrued Retirement Income of a Participant shall not be less than the Minimum Accrued Benefit determined in accordance with Section 4.03.
2. Section 2.02. By substituting for the last sentence of Section 2.02 a new sentence, effective as of December 31, 2006, to read as follows:
With respect to such Participant who has at least one Hour of Service on or after January 1, 2002, for purposes of determining Final Average Earnings under Section 4.01(A) (but not for purposes of determining Final Average Earnings at December 31, 1997), the maximum amount permitted pursuant to IRC Section 401(a)(17) shall be considered to be $200,000 for calendar years beginning prior to January 1, 2002.
3. Section 2.14. By substituting for the first paragraph of Section 2.14 a new paragraph, effective as of December 31, 2006, to read as follows:
"Final Average Earnings" shall mean the average of the Participant's Annual Earnings paid to him by the Employers for service during the highest five consecutive calendar years of the last ten calendar years of Employment immediately preceding the earlier of (i) his retirement date or his Termination Date, or (ii) January 1, 2007; provided, however, that if he was not an Employee during any five consecutive calendar years during such period, his Final Average Earnings shall be the average of his Annual Earnings during the five calendar years (or lesser period if he was not an Employee for such five calendar years) immediately preceding the earlier of (i) the calendar year he was last an Employee or (ii) January 1, 2007.
4. Section 2.16. A new sentence shall be added at the end of Section 2.16, effective as of January 1, 2006, to read as follows:
In order to clarify the usage of the 45 Hours of Service equivalency described above and consistent with past administrative practice and procedure under the Plan, payroll and other Company records reflect the actual number of hours worked by an Employee, and accordingly the 45 Hours of Service equivalency shall not apply, where such records reflect the actual number of hours for which the Employee is directly or indirectly paid or entitled to payment.
5. Section 2.19. By substituting for Section 2.19 a new Section 2.19, effective as of January 1, 2006, to read as follows:
"Covered Compensation" shall mean the average of the Taxable Wage Bases (as defined pursuant to Section 3121(a)(1) of the IRC) for the 35 calendar years ending with the last day of the year in which a Participant attains Social Security Retirement Age (as defined at Section 13.05(n)), and assuming for any particular Plan Year that the Taxable Wage Base on January 1 will remain the same for all future years.
6. Section 2.31. A new subsection (i) of Section 2.31 shall be added, effective as of January 1, 2006, to read as follows:
7. Section 4.01. By substituting for Section 4.01 a new Section 4.01, effective as of December 31, 2006, to read as follows:
4.01 Normal Retirement Benefit
Subject to Section 4.01(C), each Participant who is employed in the service of the Employer on his Normal Retirement Date and who retires on or after his Normal Retirement Date shall be entitled to receive a monthly Normal Retirement Benefit beginning on the first day of the month following his actual retirement and continuing for his life, equal to one-twelfth of the sum of the amounts determined under Sections 4.01(A) and 4.01(B) below.
No Participant shall accrue any benefit under this Section 4.01(A) with respect to Years of Service completed after December 31, 2006 or with respect to Annual Earnings earned during the Participant's Employment after December 31, 2006. A Participant's accrued benefit under this Section 4.01(A) shall be the sum of (a) through (e) below: