This Employee Benefits Plan Agreement involves
Title: pension benefits
Industry: Electronic Instr. and Controls Sector: Technology
January 21, 1999
Mr. W. Hunt
Hexcel Composites Ltd
Your pension benefits
The pension provision made for you by Ciba was set out in a letter dated 19 August 1992 from Mr. J.S. Fraser. The purpose of this letter is to confirm that Hexcel Composites Limited (the “Company”) is pleased to maintain your existing pension promise as set out in Mr. Fraser’s letter. This letter also clarifies your pension promise and your life assurance and ill-health retirement benefits.
Retirement at Normal Retirement Date
Your Normal Retirement Date is your 65 th birthday. On retirement at this date you will receive an annual pension of two-thirds of your Pensionable Salary over the year prior to retirement. Pensionable Salary is your basic salary plus any further earnings which are pensionable under the terms of the Hexcel Composites Limited Pension Scheme (the “HCL Scheme”). For the avoidance of doubt your Pensionable Salary will not be restricted by the earnings cap imposed by the Finance Act 1989.
Early Retirement from age 60
At your option, you may retire from the Company’s service on or after your 60 th birthday. In such circumstances you will receive an annual pension of two-thirds of your Pensionable Salary over the year prior to retirement.
Leaving service benefits
On leaving service you will be entitled to an annual pension deferred to your Normal Retirement Date. The annual deferred pension will be 1/720 th of your Pensionable Salary over the year prior to leaving service multiplied by the number of months from the date
you first joined a Ciba-Geigy pension scheme to the date of leaving service (up to a maximum of 480 months).
This deferred pension is to be increased over the period between the date of leaving and your Normal Retirement Date by the lesser of the increase in the Retail Prices Index and 5% per year compound over this period.
If you choose to receive your deferred pension before your Normal Retirement Date then a reduction will be applied for early payment on the same basis as applies to deferred pensions in the HCL Scheme at the time of your retirement.
Death after retirement (or after leaving service but before Normal Retirement Date)
On death after retirement (or after leaving service but before Normal Retirement Date) your widow will receive an annual pension of 60% of your own pension.
Death in service
A lump sum of three times your Pensionable Salary will be paid.
An annual pension will be paid to your widow of 40% of the Pensionable Salary earned over the year prior to your death.
Retirement on ill-health grounds
If, having obtained medical evidence, the Company decides that you are unable to carry out your normal duties as a result of ill-health or disability then you will be granted an annual pension of two-thirds of your Pensionable Salary earned over the year prior to retirement. On death after ill-health retirement an annual pension of 60% of your own annual pension will be payable to your widow.
Lump sum option
On retirement you may take part of your benefits in lump sum form by giving up part of your pension entitlement. Under current legislation, part of your benefits from the HCL Scheme and your Standard Life personal pension may be taken as a lump sum free of tax. If you decide to take part of your benefits as a lump sum then your pension promise will be reduced on the same basis as applies as at the date of your retirement to members of the HCL Scheme exchanging pension for a lump sum.
Any reduction in your pension promise as a result of t