--------------------------------------------------------------------------------
EXHIBIT 10.2
================================================================================
Xxxxxx Federal Savings Bank
Retirement Income Plan
As Amended And Restated Effective As Of January 1, 1997
And As Further Amended Through January 1, 2001
================================================================================
Table of Contents
--------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
----
TABLE OF CONTENTS..............................................................i
XXXXXX FEDERAL SAVINGS BANK RETIREMENT INCOME PLAN FOREWORD....................1
SECTION I Definitions.........................................................2
1.1 Definitions......................................................2
SECTION II PARTICIPATION......................................................13
2.1 Date of Participation...........................................13
2.2 Ineligible Employees............................................13
2.3 Reemployment After a Termination of Employment
Accompanied by a Break-in-Service...............................13
2.3 Repayment of Prior Distribution Upon Reemployment...............14
SECTION III NORMAL RETIREMENT INCOME..........................................15
3.1 Accrued Benefit.................................................15
3.2 Eligibility and Commencement - Normal Retirement Income.........16
3.3 Amount of Normal Retirement Income..............................16
SECTION IV - LATE AND EARLY RETIREMENT INCOME.................................17
4.1 Eligibility and Commencement - Late Retirement Date.............17
4.2 Amount of Late Retirement Income................................17
4.3 Eligibility and Commencement - Early Retirement Date............19
4.4 Amount of Early Retirement Income...............................19
SECTION V TERMINATION OF EMPLOYMENT AND VESTED RETIREMENT INCOME..............20
5.1 Eligibility and Commencement - Vested Retirement Date...........20
5.2 Amount of Vested Retirement Income..............................20
SECTION VI MAXIMUM RETIREMENT INCOME..........................................21
6.1 Maximum Retirement Income.......................................21
6.2 Top-Heavy Provisions............................................28
SECTION VII NORMAL FORM OF PAYMENT............................................35
7.1 Normal Form of Payment - Joint and Survivor.....................35
7.2 Normal Form of Payment - Life-No Death Benefit..................35
7.3 Optional Forms of Payment.......................................35
7.4 Notice to Participants..........................................35
7.5 Election of Option..............................................36
7.6 Qualified Election..............................................36
7.7 Payment of Retirement Income to Participant.....................37
================================================================================
187 i XXXXXX FEDERAL SAVINGS BANK
Table of Contents
--------------------------------------------------------------------------------
7.8 Limits of Payment Options.......................................38
7.9 Minimum Amounts to be Paid......................................39
SECTION VIII OPTIONAL FORMS OF PAYMENT........................................40
8.1 Contingent Pensioner Option.....................................40
8.2 Years Certain and Life Option...................................40
8.3 Social Security Option..........................................41
8.4 Direct Rollover of Eligible Rollover Distributions..............42
SECTION IX PRERETIREMENT SPOUSE BENEFIT.......................................43
9.1 Eligibility for Preretirement Spouse Benefit....................43
9.2 Amount of Preretirement Spouse Benefit..........................43
9.3 Payments of Preretirement Spouse Benefit........................45
SECTION X DEATH BENEFITS......................................................47
10.1 Death Before Retirement Date....................................47
10.2 Death on or After Retirement Date...............................47
SECTION XI FUNDING OF BENEFITS................................................48
11.1 Contributions to the Fund.......................................48
11.2 Fund for Exclusive Benefit of Participants......................48
11.3 Disposition of Credits and Forfeitures..........................48
SECTION XII FIDUCIARY RESPONSIBILITY PROVISIONS...............................49
12.1 Fiduciary Responsibility Provisions.............................49
SECTION XIII PLAN ADMINISTRATOR...............................................50
13.1 Appointment and Acceptance......................................50
13.2 Duties and Authority............................................50
13.3 Expenses of the Plan and Assistance to Plan Administrator.......50
13.4 Participants and Other Payees - Data............................51
13.5 Resignation and Removal of Plan Administrator...................51
13.6 Appointment of Successor Plan Administrator.....................51
13.7 Plan Administration - Miscellaneous.............................51
SECTION XIV AMENDMENT AND TERMINATION OF PLAN.................................55
14.1 Amendment - General.............................................55
14.2 Amendment - Merger or Consolidation of Plan.....................55
14.3 Partial Termination of Plan.....................................55
14.4 Termination of Plan.............................................56
SECTION XV RESTRICTION OF BENEFITS UPON EARLY TERMINATION OF THE PLAN.........58
15.1 Restriction of Benefits Upon Early Termination of the Plan......58
================================================================================
187 ii XXXXXX FEDERAL SAVINGS BANK
Foreword
--------------------------------------------------------------------------------
XXXXXX FEDERAL SAVINGS BANK
RETIREMENT INCOME PLAN
FOREWORD
Effective November 1, 1953, the Employer (or its predecessor) established the
Prior Plan ("Prior Plan") for the benefit of its eligible employees. Effective
January 1, 1976, the Prior Plan was amended and restated in its entirety and
became known as Xxxxxx Federal Savings Bank Retirement Income Plan.
The Prior Plan was amended from time to time to comply with legislative
requirements and to reflect changing Plan provisions.
Effective January 1, 1989, the Prior Plan was further amended and restated in
its entirety to incorporate the changes required by the Tax Reform Act of 1986
and subsequent legislation and regulations, and also incorporated certain
amendments to the Prior Plan as in effect on December 31, 1988.
Effective as of January 1, 1997, the Employer amended and restated the Prior
Plan. The Plan, as restated (hereinafter referred to as the "Plan"), complies
with all applicable legislation and regulations thereunder issued to date
addressing tax-qualified plans, including pension provisions under the Uniformed
Services Employment and Reemployment Rights Act of 1994, the Retirement
Protection Act of 1994, the Small Business Job Protection Act of 1996, the
Taxpayer Relief Act of 1997, the Restructuring and Reform Act of 1998 and the
Community Renewal Tax Relief Act of 2000. Subject to any amendments that may
subsequently be adopted by the Employer pursuant to Section 14.1, the provisions
set forth in this Plan shall apply to any Employee who is in the employment of
the Employer on or after January 1, 1997. Except to the extent specifically
required to the contrary under the terms of this Plan, for terminations of
employment prior to January 1, 1997, the rights and benefits of a former
participant shall be determined in accordance with the provisions of the Prior
Plan as in effect on the date of the former participant's termination of
employment. The Prior Plan is amended and restated in its entirety. The Plan
shall contain the terms and conditions set forth herein.
Pursuant to resolutions adopted by the Employer, the Plan shall be frozen
effective December 31, 2000 (the "Plan Freeze Date"). Effective as of the Plan
Freeze Date, (A) no Employee may commence or recommence participation in the
Plan, (B) Final Earnings shall not include any Earnings received by a
Participant on or after the Plan Freeze Date (December 31, 2000), and (C)
Credited Service and the accrual of all Participants' benefits shall cease.
The Employer has herein restated the Plan with the intention that (A) the Plan
shall at all times be qualified under Section 401(a) of the Code, (B) the
corresponding trust agreement shall be tax-exempt under Section 50l(a) of the
Code, and (C) Employer contributions under the Plan shall be tax deductible
under Section 404 of the Code. The terms of the Plan shall be construed in
accordance with such intention.
================================================================================
187 1 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
SECTION I
Definitions
1.1 Definitions
(A) Accrued Benefit - A Participant's benefit attributable to Employer
contributions determined as of a date specified by the Employer by
applying the benefit formula set forth in Section 3.1 and expressed
in the form of an annual benefit commencing at Normal Retirement
Date.
(B) Adjustment Factor - The appropriate adjustment factor(s), as shown
in Table A attached to this Plan, which may be applicable to a
Participant's retirement income in accordance with the further terms
of the Plan. In no event will a Participant's Accrued Benefit as of
the date of change of factors contained in said table be reduced by
such change.
(C) Affiliated Employer - A member of an affiliated service group (as
defined under Section 4l4(m) of the Code), a controlled group of
corporations (as defined under Section 4l4(b) of the Code), a group
of trades or businesses under common control (as defined under
Section 4l4(c) of the Code) of which the Employer is a member, any
leasing organization (as defined under Section 414(n) of the Code)
providing the services of Leased Employees to the Employer, or any
other group provided for under any and all Income Tax Regulations
promulgated by the Secretary of the Treasury under Section 414(o) of
the Code.
(D) Affiliated Service - Employment with an employer during the period
that such employer is an Affiliated Employer.
(E) Beneficiary - Any person who is receiving or eligible to receive a
benefit under the Plan upon the death of a Participant. In the case
of a married Participant, the Spouse (as defined under Section
1.1(KK) or 9.1(A)) shall be the designated Beneficiary unless the
Participant elects otherwise pursuant to Section 7.5.
(F) Code - The Internal Revenue Code of 1986, as it may be amended from
time to time, and any regulations, rulings or notices issued
pursuant thereto.
(G) Contingent Pensioner - A Beneficiary other than the Participant's
Spouse, who is receiving or eligible to receive a benefit under the
Plan in accordance with the terms of Section 8.1.
(H) Credited Service - That portion of a Participant's Service which is
included for purposes of determining the amount of his Accrued
Benefit. With respect to any employment period, a Participant's
Credited Service shall (1) include all years and full
================================================================================
187 2 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
months of employment with the Employer corresponding with Service
allowed but without regard to the number of Hours of Service and (2)
exclude (a) a fractional month of Service, (b) periods of employment
with an Affiliated Employer, and (c) periods of employment prior to
January 1, 1988 for an Employee who (i) was in the employment of the
Employer on January 1, 1988, (ii) was not enrolled as a Participant
under the provisions of the Plan as in effect on December 31, 1987
solely because he had attained age sixty (60) at the time of his
employment with the Employer, and (iii) became a Participant in the
Plan on January 1, 1988.
Notwithstanding any provision of the plan to the contrary, effective
December 12, 1994, calculation of service with respect to qualified
military service will be provided in accordance with Section 414(u)
of the Code.
A Participant's Credited Service shall not include Credited Service
which is not restored under Section 2.3.
In addition, notwithstanding any provision to the contrary contained
in this Plan, a Participant shall not accrue Credited Service for
any year or fraction thereof completed after the Plan Freeze Date.
(I) Early Retirement Date - The date described in Section 4.3.
(J) Earnings - The remuneration received from the Employer by or on
behalf of the Participant, including all compensation shown on any
and all federal source reporting forms completed by the Employer for
the Plan Year for federal income tax purposes (including W-2 Forms)
and including any contributions through a salary reduction
arrangement to a cash or deferred plan under Section 401(k) of the
Code and contributions which are not includable in the gross income
of an Employee under a "cafeteria plan" described in Section 125 of
the Code, or, effective January 1, 1998, elective amounts that are
not includable in the gross income of an Employee by reason of
Section 132(f)(4) of the Code, but excluding any other deferred
compensation arrangements. Earnings shall include statutory
disability payments to a Participant and supplemental disability
income provided by the Employer if the inclusion of such income
shall result in a greater benefit to the Participant. A
determination whether to include such income as Earnings shall be
applied on a uniform, nondiscriminatory basis.
The amount of Earnings taken into account for a Plan Year consisting
of twelve (12) months for Plan Years commencing on and after January
1, 1997, shall not exceed one hundred sixty thousand dollars
($160,000) for the 1997, 1998 and 1999 Plan Years and one hundred
and seventy thousand dollars ($170,000) for the 2000 and 2001 Plan
Years, adjusted in multiples of ten thousand dollars ($10,000) for
increases in the cost-of-living as prescribed by the Secretary of
the Treasury under Section 401(a)(17)(B) of the Code. Any
cost-of-living increases described in this paragraph shall be
applicable solely with respect to the amount of Earnings taken into
account under the Plan during
================================================================================
187 3 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
the twelve (12) month period or periods to which such increase
applies. For purposes of this Section 1.1(J), if the Plan Year in
which an Employee's Earnings are paid is less than twelve (12)
calendar months, the amount of Earnings taken into account for such
Plan Year shall be the applicable limit hereunder for such Plan Year
multiplied by a fraction, the numerator of which is the number of
months taken into account for such Plan Year and the denominator of
which is twelve (12).
In determining the dollar limitation hereunder, earnings received
from any Affiliated Employer shall be recognized as Earnings.
In no event shall an Employee who was a Participant under the Plan
as in effect on December 31, 1993 and whose Accrued Benefit on or
after January 1, 1994 is based on Earnings in excess of one hundred
fifty thousand dollars ($150,000) during a Plan Year prior to
January 1, 1994, receive an Accrued Benefit under the Plan which is
less than the greater of: (i) the Participant's Accrued Benefit as
determined pursuant to the provisions of the Plan for Plan Years on
or after January 1, 1994, based on all of the Participant's Credited
Service, or (ii) the sum of: (A) the Accrued Benefit that would have
been payable assuming the Plan provisions immediately preceding
January 1, 1994 had remained in effect until the Participant's
Termination of Employment with the Participant having terminated
service on December 31, 1993, and (B) the Participant's Accrued
Benefit as determined pursuant to the provisions of the Plan for
Plan Years on or after January 1, 1994, based on the Participant's
Credited Service commencing on January 1, 1994.
(K) Effective Date - November 1, 1953.
(L) Employee - Any individual who is compensated for an Hour of Service
with the Employer.
(M) Employer - Xxxxxx Federal Savings Bank.
(N) Entry Date - January 1 and July 1 of each Plan Year.
(O) ERISA - The Employee Retirement Income Security Act of 1974, as it
may be amended from time to time, and any regulations, rulings or
notices issued pursuant thereto.
(P) Final Earnings - The average of a Participant's Earnings received in
any three (3) consecutive calendar years during the last ten (10)
consecutive full calendar years before the earliest to occur of the
Participant's Termination of Employment, retirement or death, which
produces the highest such average. If a Participant has less than
three (3) years of Service, Earnings are averaged over the
Participant's total period of Service.
================================================================================
187 4 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
Final Earnings shall not include any Compensation received by a
Participant after the Plan Freeze Date.
(Q) Fund - The fund or funds established by separate written agreement
between the Employer and an insurance company and/or trustee or
trustees for the purpose of accumulating contributions made in
accordance with Section XI, Funding of Benefits, and paying the
benefits described in certain other sections of this Plan.
(R) Highly Compensated Employee - An individual described in Section
414(q) of the Code.
(S) Hours of Service -
(1) Each hour for which the Employee is either directly or
indirectly paid by the Employer, or entitled to payment,
(a) for duties performed for the Employer during the Plan
Year (the "computation period"); and
(b) for reasons other than the performance of duties
(irrespective of whether the employment relationship has
terminated) including paid sick leave, paid vacation
time, disability, layoff, jury duty, military duty or
leave of absence, etc. No more than 501 Hours of Service
will be credited under this paragraph to an Employee for
any single continuous period (whether or not such period
occurs in a single computation period). Hours under this
paragraph will be calculated and credited pursuant to
Department of Labor Regulations Section 2530.200b-2
which is incorporated herein by reference; and
(2) Any additional hours as normally would have been credited to
the Employee had he worked on a non overtime basis during the
following periods:
(a) temporary layoff,
(b) leave of absence of up to two (2) years, as authorized
by the Employer pursuant to the Employer's established
leave policy, and
(c) military leave while the Employee's reemployment rights
are protected by law, provided that any such periods
qualify as Service in accordance with the terms of the
Service definition; and
Notwithstanding any provision of the plan to the contrary,
effective December 12, 1994, contributions, benefits and
calculation of service with respect to
================================================================================
187 5 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
qualified military service will be provided in accordance with
Section 414(u) of the Code.
(3) Each other hour for which back pay is either awarded or agreed
to by the Employer, irrespective of mitigation of damages. The
same Hours of Service will not be credited both under
paragraph (1) or paragraph (2), as the case may be, and under
this paragraph (3). These Hours of Service will be credited to
the Employee for the computation period or periods to which
the award or agreement pertains rather than the computation
period in which the award, agreement or payment is made.
In no event will Hours of Service be allowed and computed in a
manner less liberal than the manner described in the
Department of Labor Regulations Section 2530.200b-2.
(T) Joint and Survivor - The form of payment described in Section 7.1.
(U) Late Retirement Date - The date described in Section 4.1.
(V) Leased Employee - Any individual (other than an Employee of the
Employer or an Employee of an Affiliated Employer) who, pursuant to
an agreement between the Employer or any Affiliated Employer and any
other person ("leasing organization"), has performed services for
the Employer or any Affiliated Employer on a substantially full-time
basis for a period of at least one (1) year, and such services are
performed under the primary direction of or control by the Employer
or any Affiliated Employers. A determination as to whether a Leased
Employee shall be treated as an Employee of the Employer or an
Affiliated Employer shall be made as follows: a Leased Employee
shall not be considered an Employee of the Employer if: (a) such
employee is a participant in a money purchase pension plan providing
(i) a nonintegrated Employer contribution rate of at least ten
percent (10%) of compensation, as defined in Section 415(c)(3) of
the Code, however, including amounts contributed pursuant to a
compensation reduction agreement which are excludable from the
employee's gross income under Section 125, Section 402(e)(3),
Section 402(h)(1)(B) or Section 403(b) of the Code, and effective
January 1, 1998, including elective amounts that are excludable from
the gross income of an Employee by reason of Section 132(f)(4) of
the Code; (ii) immediate plan participation; and (iii) full and
immediate vesting; and (b) Leased Employees do not constitute more
than twenty percent (20%) of the Employer's Non-Highly Compensated
Employees.
(W) Normal Retirement Date -
(1) For purposes of determining a Participant's eligibility for
retirement income and vesting status, the day on which the
Participant attains age sixty-five (65); provided, however,
that with respect to an Employee whose Participation in the
================================================================================
187 6 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
Plan commences on or after January 1, 1992, Normal Retirement
Date is the later of the day on which the Participant attains
age sixty-five (65) and the fifth (5th) anniversary of his
initial participation in the Plan.
(2) For all other purposes, a Participant's Normal Retirement Date
is the first day of the month coincident with or next
following the applicable day set forth in paragraph (1).
(X) Participant - Any Employee or former Employee covered under this
Plan who has neither received nor has commenced receiving his
retirement income under this Plan.
(Y) PBGC - Pension Benefit Guaranty Corporation.
(Z) Plan - Xxxxxx Federal Savings Bank Retirement Income Plan, as
amended from time to time.
(AA) Plan Administrator - The individual or individuals selected by the
Employer in accordance with Section 13.1.
(BB) Plan Year - The period of twelve (12) consecutive months commencing
on January 1, 1976 and on each January 1 thereafter.
(CC) Prior Plan - The program established by the Employer for providing
retirement income and other benefits for certain of its employees
and their beneficiaries as in effect prior to the Restatement Date.
(DD) Prior Plan Accrued Benefit - With respect to each Prior Plan
Participant, the annual amount of retirement income accrued by the
Prior Plan Participant as of December 31, 1970 as determined in
accordance with the terms of the Prior Plan as constituted on such
date.
(EE) Prior Plan Participant - A Participant covered under the Plan on
January 1, 1981 who, as of December 31, 1970 was a Participant under
the Prior Plan.
(FF) Restatement Date - January 1, 1997.
(GG) Retirement Date - The date on which the payment of a Participant's
retirement income is to commence, as determined in accordance with
the further terms of the Plan.
(HH) Service - Employment with the Employer commencing on the Employee's
earliest employment date and ending on the earliest of his
Termination of Employment date accompanied by a break-in-service (as
defined below), Retirement Date or date of death. Service is subject
to the following rules for the purposes of determining an Employee's
participation and vesting status:
================================================================================
187 7 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
(1) With respect to any employment period prior to January 1,
1976, an Employee's Service will be determined in accordance
with the terms of the Prior Plan as of December 31, 1975,
provided that any such accrual involving a fractional year of
Service will be rounded up to the next full year.
(2) With respect to any employment periods on and after January 1,
1976, an Employee will be credited with one (1) year of
Service for each Plan Year during which he has at least 1,000
Hours of Service.
Solely for the purpose of determining an Employee's vesting
status, with respect to an Employee whose employment date
commences after January 1, 1976 and who does not have at least
1,000 Hours of Service during the Plan Year which includes his
employment date, such Employee will be credited with one (1)
year of Service if such Employee has at least 1,000 Hours of
Service during the twelve (12) month period commencing with
his employment date.
Solely for the purpose of determining an Employee's
participation status, with respect to an Employee whose
employment date commences after January 1, 1976, such Employee
will be credited with one (1) year of Service if such Employee
has at least 1,000 Hours of Service during the twelve (12)
month period commencing with his employment date.
If in any Plan Year an Employee has less than 1,000 Hours of
Service but more than 500 Hours of Service, no Service will be
credited for such Plan Year, but a "break-in-service" will not
be deemed to have occurred.
If in any Plan Year an Employee does not complete more than
500 Hours of Service, no Service will be credited for such
Plan Year and a "break-in-service" will be deemed to have
occurred, as of the beginning of such Plan Year.
Solely for the purpose of determining whether a one year
break-in-service has occurred in a Plan Year, an Employee who
is absent from work for maternity or paternity reasons shall
receive credit for up to 501 Hours of Service which would
otherwise have been credited to such Employee but for such
absence, or in any case in which such hours cannot be
determined eight (8) Hours of Service per day of such absence.
For purposes of this paragraph, an absence from work for
maternity or paternity reasons means an absence (a) by reason
of the pregnancy of the Employee, (b) by reason of the birth
of a child of the Employee, (c) by reason of the placement of
a child with the Employee in connection with the adoption of
such child by such Employee, or (d) for purposes of caring for
such child for a period beginning immediately following such
birth or placement. The Hours of Service credited under this
paragraph shall be credited (i) in the Plan Year in which the
absence begins if the crediting
================================================================================
187 8 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
is necessary to prevent a break-in-service in that period, or
(ii) in all other cases, in the following Plan Year.
(3) Service prior to a break-in-service which occurs before
January 1, 1985 will be determined in accordance with the
terms of the Plan as of the date the break-in-service
occurred.
(4) If an Employee who has a break-in-service which occurs after
January 1, 1985 is later reemployed by the Employer, the
following special rule shall apply:
Service prior to his most recent break-in-service shall be
counted along with any Service earned on or after the
Employee's reemployment date if:
(a) he was entitled to any vested retirement income
attributable Termination of Employment and Vested
Retirement
(b) he was not entitled to any vested retirement income
break-in-service did not equal or exceed the greater of:
(i) the Employee's aggregate number of years of pre
break service; or
(ii) five (5) years.
If a reemployed Employee fails to meet any of the tests
described in (a) or (b) above, any Service earned prior to his
most recent break-in-service will be disregarded.
(5) Absence from employment shall be counted as Service if the
following circumstances apply:
(a) temporary layoff,
(b) leave of absence of up to two (2) years, as authorized
by the Employer pursuant to the Employer's established
leave policy,
(c) military leave while the Employee's reemployment rights
are protected by law, provided that the Employee returns
to active employment with the Employer when recalled (if
temporary layoff), within two (2) years (if leave of
absence), or within ninety (90) days after he becomes
eligible for release from active duty (if military
leave). If the Employee does not return to active
employment with the Employer, his Service will be deemed
to have ceased on the date his absence commenced.
================================================================================
187 9 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
Notwithstanding any provision of the plan to the
contrary, effective December 12, 1994, contributions,
benefits and calculation of service with respect to
qualified military service will be provided in
accordance with Section 414(u) of the Code.
The Employer's leave policy shall be applied in a uniform and
nondiscriminatory manner to all Employees under similar
circumstances.
(6) Employment with a predecessor company shall be counted as
Service to the extent required by ERISA.
(7) With respect to an Employee who, as of July 30, 1982, was in
the employ of Allied Federal Savings and Loan Association,
such Employee will be credited with Service for any employment
period prior to July 31, 1982 with Allied Federal Savings and
Loan Association. Such Service will be deemed as Service with
the Employer and the provisions of this Section 1.1(HH) will
apply to such Service as though such Employee's employment
with Allied Federal Savings and Loan Association had been
employment with the Employer.
(8) Service shall be credited to an Employee for periods of
employment with an Affiliated Employer. Employment with an
Affiliated Employer shall be credited pursuant to this
paragraph (8) while such employer is an Affiliated Employer.
No Service performed on or after the Plan Freeze Date shall be
counted for purposes of eligibility for Plan participation or for
determining a Participant's Credited Service under the Plan.
(II) Social Security Amount - The estimated initial annual amount of the
primary benefit that may become payable to a Participant, commencing
at age sixty-five (65), under the provisions of Title II of the
Federal Social Security Act as in effect on the date of any
determination of a Participant's Accrued Benefit hereunder. Such
amount shall be estimated by assuming the Earnings for any
Participant who terminates employment prior to age sixty-five (65)
will continue until age sixty-five (65) at the same rate as in
effect on the date he terminated employment. Wages prior to a
Participant's date of employment will be estimated by projecting the
actual change in the average wage from year to year as determined by
the Social Security Administration backwards to his date of
employment. In lieu of this estimated salary history, the actual
salary history, or the actual Social Security award, if available,
will be utilized, provided the Participant provides such history or
award within six (6) months of his Termination of Employment or
retirement. Once determined, the Primary Social Security Benefit
will not be changed after the earliest of the Participant's Normal
Retirement Date, or his date of death, retirement, or Termination of
Employment. Effective December 31, 2000, in the case of any
Participant employed by the Employer on December 31, 2000, this
Section
================================================================================
187 10 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
shall be applied as if the Plan Freeze Date (December 31, 2000) is
such Participant's Termination of Employment date.
(JJ) Social Security Retirement Age - The age used as the retirement age
for the Participant under Section 216(1) of the Social Security Act,
except that such section shall be applied (1) without regard to the
age increase factor and (2) as if the early retirement age under
Section 216(1)(2) of such Act were sixty-two (62).
(KK) Spouse - The lawful wife of a male Participant or the lawful husband
of a female Participant, on the earlier of the Participant's
Retirement Date or his date of death; provided that a former spouse
will be treated as the Spouse or surviving Spouse, and a current
spouse will not be treated as the Spouse or surviving Spouse to the
extent provided under a qualified domestic relations order as
described in Section 414(p) of the Code.
(LL) Termination of Employment - A Participant's cessation of employment
for reasons other than retirement or death.
(MM) Trustee - The trustee as set forth in a trust agreement agreed on by
both the Employer and such trustee.
(NN) Vesting Percentage - The percentage applied to a Participant's
Accrued Benefit in accordance with the further terms of the Plan, as
determined below:
Service for Vesting Purposes Percentage
---------------------------- ----------
If he has 5 years: 100%
If he has less than 5 years: 0%
Notwithstanding the foregoing, if a Participant's Service ceases on
or after his Normal Retirement Date, his Vesting Percentage will be
100%, and further provided that the Vesting Percentage of a Prior
Plan Participant whose Service ceases on or after he attains age
sixty (60) will be 100%.
(OO) Year of Eligibility Service - The earliest to occur of the following
twelve (12) consecutive month periods during which an Employee has
at least 1,000 Hours of Service:
(a) the twelve (12) consecutive month period beginning on the
Employee's employment date,
(b) the Plan Year which includes the last day of the twelve (12)
consecutive month period commencing with the Employee's
employment date,
================================================================================
187 11 XXXXXX FEDERAL SAVINGS BANK
Section I
Definitions
--------------------------------------------------------------------------------
(c) any Plan Year beginning after the last day of the twelve (12)
consecutive month period commencing with the Employee's
employment date.
For purposes of determining Years of Eligibility Service,
employment with an Affiliated Employer shall be deemed to be
employment with the Employer.
(PP) Plan Freeze Date - December 31, 2000.
================================================================================
187 12 XXXXXX FEDERAL SAVINGS BANK
Section II
Participation
--------------------------------------------------------------------------------
SECTION II
PARTICIPATION
2.1 Date of Participation
Each Employee who was covered under the Plan on December 31, 1996 and who
is in the employment of the Employer on the Restatement Date, will
continue to be a Participant under this Plan on the Restatement Date.
Each other Employee who has attained age eighteen (18) will become a
Participant under this Plan on the Entry Date coincident with or next
following the date on which the Employee has completed at least one (1)
Year of Eligibility Service.
Notwithstanding the above, no Employee shall be eligible to become a
Participant in the Plan or, in the case of a reemployed Employee, to
recommence participation in the Plan on or after the Plan Freeze Date.
2.2 Ineligible Employees
The following classes of Employees is ineligible to participate in the
Plan:
All Leased Employees.
Any Employee who is not a Plan Participant as of December 31, 2000.
2.3 Reemployment After a Termination of Employment Accompanied by a
Break-in-Service
Prior to the Plan Freeze Date, an Employee who satisfied the requirements
of Section 2.1 and subsequently (A) incurs a Termination of Employment,
(B) incurs a break-in-service (as defined in Section 1.1(HH)) and (C) is
reemployed after such break-in-service, will become a Participant under
this Plan on the first day on which he has an Hour of Service. Prior to
the Plan Freeze Date, any reemployed Employee who was not a Participant in
the Plan but who had completed one (1) Year of Eligibility Service prior
to his break-in-service will become a Participant in the Plan on the later
of the first day of the month coincident with or next following (A) the
date on which he attains age eighteen (18) and (B) the date on which he
completes an Hour of Service after his reemployment. Prior to the Plan
Freeze Date, any other reemployed Employee will become a Participant on
the first day of the month coincident with or next following the date on
which he meets all the requirements of Section 2.1.
Prior to the Plan Freeze Date, for the purposes of determining a covered
Employee's postbreak Service, Service shall be counted from such first day
of reemployment.
================================================================================
187 13 XXXXXX FEDERAL SAVINGS BANK
Section II
Participation
--------------------------------------------------------------------------------
2.3 Repayment of Prior Distribution Upon Reemployment
If a former Participant received his vested accrued retirement income at
the time of his latest break-in-service in the form of a lump sum payment
in accordance with the terms of Section 13.7(G) and is subsequently
reemployed by the Employer, his previous Credited Service shall be
disregarded when determining his retirement income upon his subsequent
retirement or break-in-service.
However, he may restore the Credited Service he lost when he received the
lump sum payment by repaying the amount he received plus interest. The
interest on such amount will be computed for the number of full calendar
months from the date of payment to the date of repayment at the rate of
120% of the Federal mid-term rate (as in effect under Section 1274 of the
Code for the first month of the Plan Year). Such repayment must be made no
later than the earlier of (A) the fifth anniversary of his reemployment
date with the Employer, or (B) the last day of a period of five (5)
consecutive one year breaks-in-service determined from the date the lump
sum payment was paid such participant. Upon a Participant's subsequent
retirement or break-in-service, that portion of his vested accrued
retirement income attributable to Credited Service before his latest
retirement or break-in-service shall not be less than his previous vested
accrued retirement income modified, if applicable, to reflect any change
in the form of payment of his retirement income.
================================================================================
187 14 XXXXXX FEDERAL SAVINGS BANK
Section III
Normal Retirement Income
--------------------------------------------------------------------------------
SECTION III
NORMAL RETIREMENT INCOME
3.1 Accrued Benefit
A Participant's Accrued Benefit shall be the greatest of (A), (B), (C), or
D below:
(A) (1) 50% of Final Earnings reduced by 50% of the Social Security
Amount (provided, however, that the maximum offset hereunder
will, in no event, exceed the maximum allowable offset under
Internal Revenue Regulations Section 1.401(l)-(3)(b)(3));
(2) the amount described in (A)(1) shall be multiplied by (a) or
(b), below, whichever applies:
(a) if the Participant's employment did not cease prior to
his Normal Retirement Date:, the ratio that the number
of his years of Credited Service up to a maximum of
fifteen (15), on his Retirement Date bears to fifteen
(15), or
(b) if the Participant's employment ceased prior to his
Normal Retirement Date:
the ratio that the number of his years of Credited
Service bears to the greater of (i) fifteen (15), and
(ii) the number of years of Credited Service he would
have had on his Normal Retirement Date had his Service
not ceased; or
(B) $25 multiplied by each month for which the Participant is granted
Credited Service; or
(C) the Participant's Prior Plan Accrued Benefit; or
(D) the Participant's Accrued Benefit determined as of December 31,
1997.
In no event will a reduction in Final Earnings cause the retirement income
determined for a Participant on his Normal Retirement Date to be less than
the highest amount of retirement income the Participant would have
received in the same form of payment had his Service ceased at any time
prior to his Normal Retirement Date when he was eligible to receive an
immediate retirement income.
Moreover, in no event will the total annual amount of retirement income to
be provided for a reemployed Participant on account of all periods of
employment be greater than the annual
================================================================================
187 15 XXXXXX FEDERAL SAVINGS BANK
Section III
Normal Retirement Income
--------------------------------------------------------------------------------
amount of retirement income which would have been provided for him if his
prior cessation of Service had not occurred.
3.2 Eligibility and Commencement - Normal Retirement Income
Each Participant who retires from the employ of the Employer on his Normal
Retirement Date will receive a normal retirement income commencing on such
date.
3.3 Amount of Normal Retirement Income
The annual amount of normal retirement income payable to such Participant
will be equal to the amount described in paragraphs (A), (B), or (C)
below, whichever applies:
(A) If the Participant has a Spouse as of his Retirement Date and does
not elect pursuant to Section 7.5 to receive his normal retirement
income on the basis of any other form of payment provided under this
Plan:
The Participant's annual normal retirement income shall be paid on
the basis of the Joint and Survivor form and shall be determined by
multiplying (1) and (2) below, where:
(1) equals the amount determined in Section 3.1, and
(2) equals the Adjustment Factor appropriate for the Joint and
Survivor form.
(B) If the Participant does not have a Spouse as of his Retirement Date
or if the Participant has a Spouse and elects pursuant to Section
7.5 to receive his normal retirement income under the Life-No Death
Benefit form of payment as described in Section VII, Normal Form of
Payments:
The Participant's annual normal retirement income shall be the
amount determined in Section 3.1.
(C) If, in lieu of the alternatives specified in paragraph (A) or (B)
above, the Participant elects pursuant to Section 7.5 to receive his
normal retirement income on the basis of one of the optional forms
of payment described in Section VIII, Optional Forms of Payment:
The Participant's annual normal retirement income shall be
determined by adjusting the amount determined in Section 3.1 in the
manner described in Section VIII, Optional Forms of Payment, for the
optional form of payment elected by the Participant.
================================================================================
187 16 XXXXXX FEDERAL SAVINGS BANK
Section IV
Late and Early Retirement Income
--------------------------------------------------------------------------------
SECTION IV -
LATE AND EARLY RETIREMENT INCOME
4.1 Eligibility and Commencement - Late Retirement Date
Subject to the provisions of Section 7.7, each Participant whose
employment with the Employer continues after his Normal Retirement Date
will receive a late retirement income commencing on the first day of the
month coincident with or next following the date he retires.
4.2 Amount of Late Retirement Income
Subject to the provisions of Section 7.9, the annual amount of late
retirement income payable to such Participant will be determined based
upon the number of years and months that his actual Late Retirement Date
exceeds his Normal Retirement Date as set forth below:
(A) If the Participant's Late Retirement Date occurs in the same Plan
Year as his or her Normal Retirement Date, the annual amount of late
retirement income payable to such Participant will be equal to the
greater of the amounts described in paragraphs (1) or (2) below:
(1) the annual amount described in the applicable paragraph of
Section 3.3, based on the terms of the Plan as constituted on
the date the Participant retired and Final Earnings and
Credited Service to the Participant's Normal Retirement Date,
but not later than December 31, 2000, adjusted by multiplying
such amount by the late retirement Adjustment Factor ("LRF"),
or
(2) the annual amount described in the applicable paragraph of
Section 3.3, based on the terms of the Plan as constituted on
the date the Participant retired and Final Earnings and
Credited Service to the date the Participant retired, but not
later than December 31, 2000.
(B) If the Participant's Late Retirement Date occurs in the Plan Year
following his or her Normal Retirement Date, the annual amount of
late retirement income payable to such Participant will be equal to
the greatest of the amounts described in paragraphs (1), (2) or (3)
below:
(1) the annual amount described in the applicable paragraph of
Section 3.3, based on the terms of the Plan as constituted on
the date the Participant retired and Final Earnings and
Credited Service to the Participant's Normal Retirement Date,
but not later than December 31, 2000, adjusted by multiplying
such amount by the LRF, or
================================================================================
187 17 XXXXXX FEDERAL SAVINGS BANK
Section IV
Late and Early Retirement Income
--------------------------------------------------------------------------------
(2) the annual amount described in the applicable paragraph of
Section 3.3, based on the terms of the Plan as constituted on
the date the Participant retired and Final Earnings and
Credited Service to the date the Participant retired, but not
later than December 31, 2000, or
(3) the annual amount described under (1) or (2) above, whichever
produces the greater amount, determined as of the last day of
the Plan Year coincident with or preceding the Late Retirement
Date (but not later than December 31, 2000) multiplied by the
ratio that the LRF bears to the late retirement Adjustment
Factor as of the last day of the Plan Year coincident with or
preceding the Late Retirement Date ("Prior LRF").
(C) If the Participant's Late Retirement Date occurs in the second Plan
Year subsequent to his or her Normal Retirement Date, or at any time
thereafter, the annual amount of late retirement income payable to
such Participant will be equal to the greatest of the amounts
described in paragraphs (1), (2) or (3) below:
(1) the annual amount described in the applicable paragraph of
Section 3.3, based on the terms of the Plan as constituted on
the date the Participant retired and Final Earnings and
Credited Service to the Participant's Normal Retirement Date,
but not later than December 31, 2000, adjusted by multiplying
such amount by the LRF, or
(2) the annual amount described in the applicable paragraph of
Section 3.3, based on the terms of the Plan as constituted on
the date the Participant retired and Final Earnings and
Credited Service to the date the Participant retired, but not
later than December 31, 2000, or
(3) the annual amount, determined as of the last day of the Plan
Year coincident with or preceding the Late Retirement Date
(but not later than December 31, 2000) multiplied by the ratio
that the LRF bears to the Prior LRF where the annual amount
for the purpose of this paragraph equals the greatest of:
(a) (1) above, or
(b) (2) above, or
(c) the result of the prior year's last day of the Plan Year
(but not later than December 31, 2000) calculations
determining the greatest of all annual amounts.
(D) Notwithstanding the foregoing, the annual amount of late retirement
income for a Participant whose Late Retirement Date occurs after the
date he attains the age of seventy and one-half (70-1/2) shall not
be less than the actuarial equivalent of the annual
================================================================================
187 18 XXXXXX FEDERAL SAVINGS BANK
Section IV
Late and Early Retirement Income
--------------------------------------------------------------------------------
late Retirement Benefit that would have been payable if benefit
payments had begun on the date the Participant attained the age of
seventy and one half (70-1/2).
4.3 Eligibility and Commencement - Early Retirement Date
Each Participant who retires from the employ of the Employer after
attaining age fifty-five (55) will be eligible to receive an early
retirement income provided his Vesting Percentage is other than zero
percent (0%). The early retirement income will be a deferred benefit
commencing upon the Participant's Normal Retirement Date.
However, a Participant who is eligible to receive an early retirement
income may elect to have such benefit commence prior to his Normal
Retirement Date. Payment of this retirement income will commence on the
first day of any month between the date the election is made and the
Participant's Normal Retirement Date, as specified by the Participant in
his election.
4.4 Amount of Early Retirement Income
(A) The annual amount of early retirement income payable to such a
Participant at his Normal Retirement Date will be equal to the
amount described in the applicable paragraph of Section 3.3, based
on (1) the terms of the Plan as constituted on the date the
Participant retired and (2) Credited Service to the date the
Participant retired, but not later than December 31, 2000.
(B) If payments commence prior to a Participant's Normal Retirement
Date, the annual amount of early retirement income payable to such
Participant will be equal to the amount described in paragraph (A)
above, multiplied by the appropriate Adjustment Factor.
================================================================================
187 19 XXXXXX FEDERAL SAVINGS BANK
Section V
Termination of Employment and Vested Retirement Income
--------------------------------------------------------------------------------
SECTION V
TERMINATION OF EMPLOYMENT AND VESTED RETIREMENT INCOME
5.1 Eligibility and Commencement - Vested Retirement Date
Each Participant who incurs a Termination of Employment, and who will not
receive early, normal or late retirement income in accordance with the
preceding Sections, will be eligible to receive a vested retirement income
commencing upon his Normal Retirement Date, provided his Vesting
Percentage is other than zero percent (0%).
Subject to the provisions of Section 4.3, a Participant may instead elect
in writing to receive retirement income commencing on the first day of any
month following the date the election is made and after he has attained
age fifty-five (55), as specified by the Participant in his election.
5.2 Amount of Vested Retirement Income
(A) The annual amount of vested retirement income payable to such
Participant at his Normal Retirement Date will be equal to the
amount described in the applicable paragraph of Section 3.3, based
on (1) the terms of the Plan as constituted on the date the
Participant terminated employment and (2) Credited Service to the
date the Participant terminated employment (but not later than
December 31, 2000) multiplied by the Participant's Vesting
Percentage.
(B) If payments commence prior to a Participant's Normal Retirement
Date, the annual amount of vested retirement income payable to such
Participant will be equal to the amount described in paragraph (A)
above multiplied by the appropriate Early Commencement Adjustment
Factor.
(C) Notwithstanding any other provisions of this Plan to the contrary,
if the Participant's Termination of Employment occurred prior to
January 1, 1976, he will receive his retirement income in the Normal
Form of Payment described in Section 7.2 unless he has elected to
receive his retirement income in (1) an optional form of payment
described in Section VIII, Optional Forms of Payment, or (2) the
Joint and Survivor form of payment.
================================================================================
187 20 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
SECTION VI
MAXIMUM RETIREMENT INCOME
6.1 Maximum Retirement Income
(A) For purposes of this Section 6.1, the words and phrases below will
have the following meanings:
(1) Annual Additions - The sum of the following amounts credited
to a Participant's account or accounts for the Limitation
Year:
(a) Employer contributions,
(b) Employee contributions,
(c) forfeitures, and
(d) (1) amounts allocated after March 31, 1984 to an
individual medical account, as defined in Section
415(l)(2) of the Code, that is part of a pension or
annuity plan maintained by the Employer and (2) amounts
derived from contributions, paid or accrued after
December 31, 1985, that are attributable to
post-retirement medical benefits allocated to the
separate account of a key employee, as defined in
Section 419A(d)(3) of the Code, under a welfare benefit
fund are treated as Annual Additions to a defined
contribution plan.
The Annual Additions for a Limitation Year commencing prior to
the Restatement Date shall be determined in accordance with
the provisions of the Prior Plan.
(2) Current Accrued Benefit - A Participant's annual Accrued
Benefit under the Plan, determined in accordance with Section
415(b)(2) of the Code, as if the Participant had separated
from service as of the close of the last Limitation Year
beginning before January 1, 1987. In determining the amount of
a Participant's Current Accrued Benefit, the following shall
be disregarded:
(a) any change in the terms and conditions of the Plan after
May 5, 1986; and
(b) any cost-of-living adjustment occurring after May 5,
1986.
(3) Defined benefit plan and defined contribution plan - The
meanings set forth in Section 4l5(k) of the Code.
================================================================================
187 21 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
(4) Defined Benefit Plan Fraction - For a Limitation Year, a
fraction, (a) the numerator of which is the aggregate
Projected Annual Benefit (determined as of the last day of the
Limitation Year) of the Participant under all defined benefit
plans (whether or not terminated) maintained by the Employer,
and (b) the denominator of which is the lesser of (i) the
product of l.25 (or such adjustment as required under Section
6.2(D)) and the dollar limitation in effect under Section
4l5(b)(l)(A) of the Code for such Limitation Year adjusted as
prescribed by the Secretary of the Treasury under Section
415(d) of the Code, or (ii) the product of l.4 and the amount
which may be taken into account with respect to such
Participant under Section 4l5(b)(l)(B) of the Code for such
Limitation Year. Notwithstanding the above, if the Participant
was a participant in one or more defined benefit plans of the
Employer in existence on May 6, l986, the dollar limitation
used to determine the denominator of this fraction will not be
less than one hundred twenty-five percent (125%) of the
Participant's Current Accrued Benefit.
(5) Defined Contribution Plan Fraction - For a Limitation Year, a
fraction, (a) the numerator of which is the sum of the
Participant's Annual Additions under all defined contribution
plans (whether or not terminated) maintained by the Employer
for the current year and all prior Limitation Years (including
annual additions attributable to the Participant's
nondeductible employee contributions to all defined benefit
plans (whether or not terminated) maintained by the Employer
and the Annual Additions attributable to the Participant's
welfare benefit funds as defined under Section 419(e) of the
Code or individual medical accounts as defined under Section
415(l)(2) of the Code, maintained by the Employer), and (b)
the denominator of which is the sum of the maximum aggregate
amounts for the current year and all prior Limitation Years
with the Employer (regardless of whether a defined
contribution plan was maintained by the Employer). "Maximum
aggregate amounts" shall mean the lesser of (i) the product of
1.25 (or such adjustment as required under Section 6.2(D)) and
the dollar limitation in effect under Section 415(c)(1)(A) of
the Code, adjusted as prescribed by the Secretary of the
Treasury under Section 415(d) of the Code or (ii) the product
of 1.4 and the amount that may be taken into account under
Section 415(c)(l)(B) of the Code; provided, however, the Plan
Administrator may elect, on a uniform and nondiscriminatory
basis, to apply the special transition rule of Section
415(e)(7) of the Code applicable to Limitation Years ending
before January l, l983 in determining the denominator of the
Defined Contribution Plan Fraction.
If the Employee was a Participant as of the first day of the
first Limitation Year beginning after December 31, 1986, in
one or more defined contribution plans maintained by the
Employer which were in existence on May 6, 1986, the numerator
of this fraction will be adjusted if the sum of this fraction
and the
================================================================================
187 22 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
defined benefit fraction would otherwise exceed 1.0 under the
terms of this Plan. Under the adjustment, an amount equal to
the product of (1) the excess of the sum of the fractions over
1.0 times (2) the denominator of this fraction, will be
permanently subtracted from the numerator of this fraction.
The adjustment is calculated using the fractions as they would
be computed as of the end of the last Limitation Year
beginning before January 1, 1987, and disregarding any changes
in the terms and conditions of the plans made after May 5,
1986, but using the Section 415 limitation applicable to the
first Limitation Year beginning on or after January 1, 1987.
(6) Highest Average Compensation - The average Section 415
Compensation of a Participant for the three (3) consecutive
calendar years during which he was a Participant in the Plan
that produces the highest such average. If an Employee was a
Participant for less than three (3) consecutive years, the
number of his consecutively completed calendar years during
which he was a Participant shall be used to compute such
average.
(7) Limitation Year - The Plan Year.
(8) Maximum Permissible Dollar Amount - $90,000. Such amount shall
be adjusted in accordance with the provisions of Section
6.1(C).
(9) Projected Annual Benefit - Under a defined benefit plan, the
annual retirement income to which a Participant would be
entitled under such plan if (a) he were to continue in
employment until his normal retirement age under such plan (or
until his current age, if later), (b) his Section 4l5
Compensation for the Limitation Year under consideration
remains the same until the date he attains such age, and (c)
all other relevant factors used to determine benefits under
the plan were to remain the same as in the current Limitation
Year for all future Limitation Years.
(10) Section 415 Compensation - A Participant's remuneration as
defined under Income Tax Regulations Sections 1.415-2(d)(2),
(3) and (6). For the purpose of determining Section 415
Compensation for any Limitation Year, amounts shall be
includable in the Limitation Year in which they are actually
paid or made available to the Participant. For purposes of
this Section, effective for Limitation Years commencing after
December 31, 1997, Section 415 Compensation shall include (A)
any elective deferral (as defined in Section 402(g)(3) of the
Code), and (B) any amount which is contributed or deferred by
the Employer at the election of the Employee and which is not
includable in the gross income of the Employee by reason of
Section 125 or 457 of the Code.
For purposes of this Section 6.1(A)(10), effective for
Limitation Years commencing on or after January 1, 1998, for
purposes of applying the
================================================================================
187 23 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
limitations described in this Section 6.1, amounts paid or
made available during such Limitation Years shall include
elective amounts that are not includable in the gross income
of an Employee by reason of Section 132(f)(4) of the Code.
(B) For purposes of applying the Section 415 limitations, the
Employer and all members of a controlled group of
corporations, as defined under Section 414(b) of the Code as
modified by Section 415(h) of the Code, all commonly
controlled trades or businesses, as defined under Section
414(c) of the Code, as modified by Section 415(h) of the Code,
all affiliated service groups, as defined under Section 414(m)
of the Code, of which the Employer is a member or was a member
for any period, provided a Participant was employed by such
member during the period of affiliation, as well as any
leasing organization, as defined under Section 414(n) of the
Code that employs any person who is considered an Employee
under Section 414(n) of the Code, and any other entity
required to be aggregated with the Employer in accordance with
regulations prescribed by the Secretary of the Treasury under
Section 4l4(o) of the Code, shall be treated as the Employer.
(C) The maximum amount of annual retirement income payable under
this Plan during any Limitation Year shall be subject to all
of the following limitations:
(1) The annual retirement income payable as a Life-No Death
Benefit, or as a Joint and Survivor form of payment
shall be the lesser of (a) the Maximum Permissible
Dollar Amount or (b) one hundred percent (100%) of the
Participant's Highest Average Compensation.
(2) A Participant's retirement income which does not exceed
a maximum of $10,000 for any Plan Year shall be deemed
not to exceed the foregoing limitations if the
Participant did not at any time participate in a defined
contribution plan, a welfare benefit plan as defined
under Section 419A(d)(2) of the Code or an individual
medical account as defined under Section 415(l)(2) of
the Code maintained by the Employer. The aforementioned
$10,000 maximum shall be subject to the provisions of
Section 6.1(C)(4).
(3) A Participant's retirement income payable in any form of
payment other than a Life-No Death Benefit form of
payment or a Joint and Survivor form of payment will be
adjusted to the actuarial equivalent of the Life-No
Death Benefit form of payment before applying the
limitations of this Section 6.1(C). The actuarial
equivalent of a Life-No Death Benefit form of payment is
equal to the greater of the annuity benefit computed
using the interest rate and mortality table (or other
tabular factor) specified in the Plan for adjusting
benefits in the same form, and the annuity benefit
computed using a five percent (5%) interest rate
assumption, and effective for Limitation Years beginning
after December 31, 1994, the GATT Applicable Mortality
Table as set forth in Table A. In
================================================================================
187 24 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
determining the actuarial equivalent of a Life-No Death
Benefit form of payment for any lump sum distribution or
retirement income form other than a nondecreasing
annuity payable for a period of not less than the life
of the Participant (or in the case of the Preretirement
Spouse Benefit, the life of the surviving Spouse) or
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 fifty percent (50%)
of the annual retirement income payable before the death
of the survivor annuitant), or (B) the cessation or
reduction of Social Security supplements of qualified
disability payments as defined in Section 401(a)(11) of
the Code, the "GATT Applicable Interest Rate," as
defined in the Table A of the Plan, will be substituted
for a "five percent (5%) interest rate assumption" in
the preceding sentence.
(4) (a) If a Participant has completed less than ten (10) years
of participation in the defined benefit plan of the
Employer, the Maximum Permissible Dollar Amount set
forth in Section 6.l(C)(1)(a) above will be reduced by
multiplying such limitation by a fraction, the numerator
of which is the number of years and fraction thereof of
such Participant's participation and the denominator of
which is ten (10).
(b) If a Participant has completed less than ten (10) years
of employment with the Employer, the limitation set
forth in Section 6.1(C)(1)(b) and the $10,000 maximum
set forth in Section 6.1(C)(2) above will be reduced by
multiplying such amount by a fraction, the numerator of
which is the number of years and fraction thereof of
such Participant's employment and the denominator of
which is ten (10).
(c) In no event will the reduction set forth in Section
6.1(C)(4)(a) or (b) reduce the limitations set forth in
Section 6.1(C)(1) or the maximum set forth in Section
6.1(C)(2) to an amount less than one-tenth (1/10th) of
such limitation or maximum, whichever is applicable,
determined without regard to this Section 6.1(C)(4).
(d) To the extent provided in regulations prescribed by the
Secretary of the Treasury or his delegate, this Section
6.1(C)(4) will be applied separately with respect to
each change in the benefit structure of the Plan.
(5) (a) The Maximum Permissible Dollar Amount, and in the case
of a Participant who has incurred a Termination of
Employment, the Participant's Highest Average
Compensation, will be adjusted for increases in the
cost-of-living in accordance with regulations prescribed
by the Secretary of the Treasury or his delegate in
accordance with
================================================================================
187 25 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
Section 415(d) of the Code. Each annual adjustment shall
be limited to the scheduled annual increase, as
determined by the Secretary of the Treasury, and shall
be effective for the Limitation Year within which such
increase has become effective.
(b) In the event that the annual retirement income otherwise
payable to a Participant who has retired or terminated
employment has been limited by the Maximum Permissible
Dollar Amount, such limited annual retirement income
shall be increased in accordance with any automatic
cost-of-living adjustments in such dollar amount made
pursuant to Section 6.1(C)(5)(a).
(6) A Participant's retirement income which commences after his
Social Security Retirement Age may exceed the Maximum
Permissible Dollar Amount provided the actuarial equivalent of
such annual retirement income commencing at his Social
Security Retirement Age satisfies such Maximum Permissible
Dollar Amount actuarially adjusted to the date of retirement.
The actuarial equivalent of the Maximum Permissible Dollar
Amount commencing after his Social Security Retirement Age,
shall be determined as the lesser of the equivalent annual
retirement income computed using the interest rate and
mortality table (or other tabular factor) specified in the
Plan for purposes of determining the actuarial equivalent for
a Late Retirement Income benefit and the equivalent annual
retirement income computed using a five percent (5%) interest
rate assumption, and effective for Limitation Years beginning
after December 31, 1994, the GATT Applicable Mortality Table
as set forth in Table A of the Plan.
(7) If a Participant's retirement income commences prior to his
Social Security Retirement Age, the Maximum Permissible Dollar
Amount will be determined as follows:
(a) If a Participant's Social Security Retirement Age is
sixty-five (65), the Maximum Permissible Dollar Amount
of retirement income commencing on or after age
sixty-two (62) is determined by reducing the Maximum
Permissible Dollar Amount by five-ninths of one percent
(5/9ths of 1%) for each month by which such benefit
commences before the month in which the Participant
attains age sixty-five (65).
(b) If a Participant's Social Security Retirement Age is
greater than sixty-five (65), the Maximum Permissible
Dollar Amount of retirement income commencing on or
after age sixty-two (62) is determined by reducing the
Maximum Permissible Dollar Amount by five-ninths of one
percent (5/9ths of 1%) for each of the first thirty-six
(36) months and five-twelfths of one percent (5/12ths of
1%) for each of the additional
================================================================================
187 26 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
months (up to twenty-four (24) months) by which such
retirement income commences before the month in which
the Participant attains his Social Security Retirement
Age.
(c) If a Participant's retirement income commences prior to
age sixty-two (62), the Maximum Permissible Dollar
Amount shall be equal to retirement income commencing at
age sixty-two (62) reduced in accordance with paragraph
(a) or (b) above, whichever is applicable, and further
reduced to the actuarial equivalent of such retirement
income determined as of the benefit commencement date.
In determining the actuarial equivalent of retirement
income commencing prior to age sixty-two (62), such
retirement income shall be determined as the lesser of
the equivalent annual retirement income computed using
the Plan rates for an Early Retirement Benefit as set
forth in Section 4.4 and Table A, and the equivalent
annual retirement income computed using a five percent
(5%) interest rate, and effective for Limitation Years
beginning after December 31, 1994, the GATT Applicable
Mortality Table as set forth in the Table A of the Plan.
(8) If any retirement benefits shall be payable to or on account
of any Participant in this Plan under any other defined
benefit plan(s) (whether or not terminated) maintained by the
Employer, the limitation applicable to such Participant for
the purposes of this Section 6.l shall be determined by
combining the retirement income payable under this Plan and
the retirement benefits of all other such defined benefit
plan(s). To the extent necessary, the retirement income under
this Plan shall be reduced to insure that such combined
benefits shall not exceed the limitation applicable to such
Participant. Notwithstanding the foregoing, in the case of a
Participant who was a participant in one or more defined
benefit plans of the Employer in existence on May 6, 1986, the
limitations of this Section 6.l shall not be less than the
participant's Current Accrued Benefits under all such defined
benefit plans as of the end of the last Limitation Year
beginning before January 1, 1987. The preceding sentence
applies only if the defined benefit plans individually and in
the aggregate satisfied the requirements of Section 415 of the
Code, as in effect at the end of the 1986 Limitation Year.
In the case of a Participant who was a participant in one or
more defined benefit plans of the Employer as of the first day
of the first Limitation Year beginning after December 31,
1994, the limit applicable to such Participant for purposes of
this Section 6.1 shall not cause the Maximum Permissible
Dollar Amount for such Participant under all such defined
benefit plans to be less than the Participant's Old Law
Benefit. The preceding sentence applies only if such defined
benefit plans met the requirements Code Section 415 on
December 7, 1994.
================================================================================
187 27 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
(9) Notwithstanding the limitations of Section 6.1(C), if a
Participant is also a participant in any defined contribution
plan of the Employer, the retirement income payable under this
Plan shall be reduced to the extent necessary as determined by
the Plan Administrator, so as not to exceed the overall
limitations on benefits and contributions of Section 415(e) of
the Code. For this purpose, the Plan Administrator will
compute the Participant's Defined Benefit Plan Fraction and
Defined Contribution Plan Fraction and will make any necessary
adjustments so that the sum of the fractions, for any
Limitation Year, will not exceed 1.0. If the Plan satisfied
the applicable requirements of Section 415 of the Code as in
effect for all Limitation Years beginning before January 1,
1987, an amount shall be subtracted from the numerator of the
Defined Contribution Plan Fraction (not exceeding such
numerator) as prescribed by the Secretary of the Treasury or
his delegate so that the sum of the Defined Benefit Plan
Fraction and Defined Contribution Plan Fraction computed under
Section 415(e)(1) of the Code does not exceed 1.0 for such
Limitation Year. This subsection (9) shall not apply with
respect to Plan Years beginning on or after January 1, 2000.
6.2 Top-Heavy Provisions
The following provisions will become effective in any Plan Year in which
the Plan is determined to be a Top-Heavy Plan and shall supersede any
other conflicting provisions of the Plan.
(A) For purposes of this Section 6.2, the words and phrases below will
have the following meanings:
(1) Determination Date - With respect to a Plan Year, the last day
of the preceding Plan Year. With respect to the first Plan
Year, the last day of the first Plan Year.
(2) Employer - For purposes of this Section 6.2, the Employer who
adopts this Plan and any Affiliated Employer. An entity other
than the Employer will be treated as an Employer only while it
is an Affiliated Employer.
(3) Five-Percent Owner - If the Employer is a corporation, any
Employee who owns (or is considered as owning within the
meaning of Section 3l8 of the Code) more than five percent
(5%) of the value of the outstanding stock, or stock
possessing more than five percent (5%) of the total combined
voting power of all the stock, of the Employer. If the
Employer is not a corporation, a Five-Percent Owner means any
Employee who owns more than five percent (5%) of the capital
or profits interest in the Employer.
(4) Key Employee - Any Employee or former Employee (or, where
applicable, such person's Beneficiary) in the Plan who, at any
time during the Plan Year
================================================================================
187 28 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
containing the Determination Date or any of the preceding four
(4) Plan Years, is: (a) an Officer having Top-Heavy Earnings
from the Employer of greater than fifty percent (50%) of the
dollar limitation in effect under Section 415(b)(1)(A) of the
Code; (b) one of the ten (10) Employees having Top-Heavy
Earnings from the Employer of more than the dollar limitation
in effect under Section 415(c)(1)(A) of the Code and owning
(or considered as owning within the meaning of Section 318 of
the Code modified by Section 416(i)(1)(B)(iii) of the Code)
both more than a one-half of one percent (1/2 of 1%) interest
in value and the largest interests in the value of the
Employer; (c) a Five-Percent Owner of the Employer; or (d) a
One-Percent Owner of the Employer having Top-Heavy Earnings
from the Employer greater than $150,000. For purposes of
computing the Top-Heavy Earnings in Sections 6.2(A)(4)(a), (b)
and (d) above, the aggregation rules of Sections 414(b), (c),
(m), (n) and (o) of the Code shall apply.
(5) Non-Key Employee - Any Employee or former Employee (or, where
applicable, such person's Beneficiary) who is not a Key
Employee.
(6) Officer - An Employee who is an administrative executive in
the regular and continued service of his Employer; any
Employee who has the title but not the authority of an officer
shall not be considered an Officer for purposes of this
paragraph. Similarly, an Employee who does not have the title
of an officer but has the authority of an officer shall be
considered an Officer. For purposes of this paragraph, the
maximum number of Officers that must be taken into
consideration shall be determined as follows: (a) three (3),
if the number of Employees is less than thirty (30); (b) ten
percent (10%) of the number of Employees, if the number of
Employees is between thirty (30) and five hundred (500); or
(c) fifty (50), if the number of Employees is greater than
five hundred (500). In determining such limit, the term
"Employer" shall be determined in accordance with Sections
414(b), (c), (m), (n) and (o) of the Code and "Employee" shall
include Leased Employees and exclude employees described in
Section 414(q)(5) of the Code.
(7) One-Percent Owner - If the Employer is a corporation, any
Employee who owns (or is considered as owning within the
meaning of Section 318 of the Code modified by Section
416(i)(1)(B)(iii) of the Code) more than one percent (1%) of
the value of the outstanding stock, or stock possessing more
than one percent (1%) of the total combined voting power of
all the stock, of the Employer. If the Employer is not a
corporation, a One-Percent Owner means any Employee who owns
more than one percent (1%) of the capital or profits interest
in the Employer.
================================================================================
187 29 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
(8) Permissive Aggregation Group - All the plans of the Employer
which are included in the Required Aggregation Group plus any
plans of the Employer which are not part of a Required
Aggregation Group, but which satisfy the requirements of
Sections 401(a)(4) and 410 of the Code when considered
together with the Required Aggregation Group. If two (2) or
more defined benefit plans are included in the aggregation
group, the same actuarial assumptions must be used with
respect to all such plans in determining the Present Value of
Accrued Benefits.
(9) Present Value of Accrued Benefits - The Present Value of
Accrued Benefits will be determined as of the Valuation Date
and will be based upon (a) the 1983 Group Annuity Mortality
Table (separate for males and females), and (b) a five percent
(5%) interest rate and the assumed benefit commencement date
shall be determined taking into account any nonproportional
subsidy. Solely for the purpose of determining if this Plan,
or any other plan included in a Required Aggregation Group of
which this Plan is a part, is a Top-Heavy Plan, the Present
Value of Accrued Benefits of a Non-Key Employee will be
determined under (a) the method, if any, that uniformly
applies for accrual purposes under all plans maintained by the
Affiliated Employers, or (b) if there is no single uniform
method used by all plans, as if such benefit accrued not more
rapidly than the slowest accrual rate permitted under the
fractional rule of Section 411(b)(1)(C) of the Code.
(10) Required Aggregation Group - All the plans of the employer
(whether or not terminated) in which a Key Employee
participates or participated at any time during the Plan Year
containing the Determination Date or any of the four (4)
preceding Plan Years and each other plan of the Employer
(whether or not terminated) which enables any plan in which a
Key Employee participates or participated to meet the
requirements of Section 401(a)(4) or 410 of the Code. If two
(2) or more defined benefit plans are included in the
aggregation group, the same actuarial assumptions must be used
with respect to all such plans in determining the Present
Value of Accrued Benefits.
(11) Super Top-Heavy Plan - This Plan will be a Super Top-Heavy
Plan for a given Plan Year in which:
(a) the Top-Heavy Ratio for the Plan exceeds ninety percent
(90%) and the Plan is not part of any Required
Aggregation Group or Permissive Aggregation Group; or
(b) the Plan is part of a Required Aggregation Group (but is
not part of a Permissive Aggregation Group) and the
Top-Heavy Ratio for the group of plans exceeds ninety
percent (90%); or
================================================================================
187 30 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
(c) the Plan is part of a Required Aggregation Group and
part of a Permissive Aggregation Group and the Top-Heavy
Ratio for the Permissive Aggregation Group exceeds
ninety percent (90%).
(12) Top-Heavy Earnings - For any year, an individual' s annual
compensation as defined under Section 414(q)(7) of the Code,
and commencing January 1, 1998, Section 414(q)(4) of the Code,
up to a maximum of one hundred sixty thousand dollars
($160,000) for the 1997, 1998 and 1999 and one hundred seventy
thousand dollars ($170,000) for the 2000 and 2001 Plan Years,
adjusted in multiples of ten thousand dollars ($10,000) for
increases in the cost-of-living, as prescribed by the
Secretary of the Treasury under Section 401(a)(17)(B) of the
Code.
(13) Top-Heavy Plan - This Plan will be a Top-Heavy Plan for a
given Plan Year if:
(a) the Top-Heavy Ratio for the Plan exceeds sixty percent
(60%) and the Plan is not part of any Required
Aggregation Group or Permissive Aggregation Group; or
(b) the Plan is part of a Required Aggregation Group (but is
not part of a Permissive Aggregation Group) and the
Top-Heavy Ratio for the group of plans exceeds sixty
percent (60%); or
(c) the Plan is part of a Required Aggregation Group and
part of a Permissive Aggregation Group and the Top-Heavy
Ratio for the Permissive Aggregation Group exceeds sixty
percent (60%).
(14) Top-Heavy Ratio -
(a) If the Employer maintains one (1) or more qualified
defined benefit plans and the Employer has not
maintained any qualified defined contribution plans
which during the five (5) year period ending on the
Determination Date have or have had account balances,
the Top-Heavy Ratio for the Plan alone or for the
Required Aggregation Group or Permissive Aggregation
Group, as appropriate, is a fraction, the numerator of
which is the sum of the Present Value of Accrued
Benefits under the aggregated qualified defined benefit
plan or plans for all Key Employees as of the
Determination Date (including any part of any accrued
benefit distributed in the five (5) year period ending
on the Determination Date) and the denominator of which
is the sum of the Present Value of Accrued Benefits
under the aggregated qualified defined benefit plan or
plans for all participants as of the Determination Date
(including any part of any accrued benefit distributed
in the five (5) year period ending on the Determination
Date), determined in
================================================================================
187 31 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
accordance with Section 416 of the Code and the
regulations thereunder.
(b) If the Employer maintains one (1) or more qualified
defined benefit plans and the Employer maintains or has
maintained one (1) or more qualified defined
contribution plans which during the five (5) year period
ending on the Determination Date have or have had any
account balances, the Top-Heavy Ratio for any Required
Aggregation Group or Permissive Aggregation Group, as
appropriate, is a fraction, the numerator of which is
the sum of the Present Value of Accrued Benefits under
the aggregated qualified defined benefit plan or plans
for all Key Employees, determined in accordance with
paragraph (a) above, and the sum of the account balances
under the aggregated qualified defined contribution plan
or plans for all Key Employees as of the Determination
Date, and the denominator of which is the sum of the
Present Value of Accrued Benefits under the aggregated
qualified defined benefit plan or plans for all
participants, determined in accordance with paragraph
(a) above, for all Participants and the sum of the
account balances under the aggregated qualified defined
contribution plan or plans for all Participants as of
the Determination Date, all determined in accordance
with Section 416 of the Code and the regulations
thereunder. The account balances under a qualified
defined contribution plan in both the numerator and
denominator of the Top-Heavy Ratio are adjusted for any
distribution of an account balance made in the five (5)
year period ending on the Determination Date.
(c) For purposes of paragraphs (a) and (b) above, the value
of account balances and the Present Value of Accrued
Benefits will be determined as of the most recent
Valuation Date that falls within the twelve (12) month
period ending on the Determination Date, except as
provided in Section 416 of the Code and the regulations
thereunder for the first and second Plan Years of a
qualified defined benefit plan. The account balances and
Present Value of Accrued Benefits of a Participant (i)
who is a Non-Key Employee but who was a Key Employee in
a prior year, or (ii) who has not been credited with at
least an Hour of Service with any employer maintaining
the Plan at any time during the five (5) year period
ending on the Determination Date, will be disregarded.
The calculation of the Top-Heavy Ratio and the extent to
which distributions are taken into account will be made
in accordance with Section 416 of the Code and the
regulations thereunder. When aggregating plans, the
value of account balances and the Present Value of
Accrued Benefits
================================================================================
187 32 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
will be calculated with reference to the Determination
Date that falls within the same calendar year.
(15) Valuation Date - For the purpose of computing the Top-Heavy
Ratio and Super Top-Heavy Ratio, the last date of the Plan
Year.
For purposes of Sections 6.2(A)(8) and (10), the rules of Sections
414(b), (c), (m), (n) and (o) of the Code shall be applied in
determining the meaning of the term "Employer".
(B) Minimum Retirement Income - If the Plan becomes a Top-Heavy Plan,
then, notwithstanding other Sections of the Plan, each Non-Key
Employee Participant will be entitled to a Minimum Retirement
Income, expressed in the form of a Life-No Death Benefit form of
payment commencing at his Normal Retirement Date, which will accrue
at the rate of (1) two percent (2%) of such Participant's Section
415 Compensation (modified by Section 401(a)(17) of the Code) during
the five (5) consecutive Plan Years in which he received the highest
such Section 415 Compensation, multiplied by (2) that portion of his
Service used to determine his Vesting Percentage (up to a maximum of
ten (10) years) that is completed during Plan Years in which the
Plan is a Top-Heavy Plan. For purposes of (1) above, Plan Years
beginning after the close of the last Plan Year in which the Plan is
a Top-Heavy Plan will be excluded.
A Non-Key Employee may not fail to accrue a Minimum Retirement
Income merely because such Employee was not employed on a specified
date; neither may such Employee be excluded from participation (or a
failure to accrue a benefit) because (a) his Earnings are less than
a stated amount, nor because (b) he fails to make mandatory Employee
contributions, if any nor because (c) he completed less than 1,000
Hours of Service during the applicable accrual computation period.
If a Non-Key Employee is concurrently a Participant under this Plan
and a defined contribution plan maintained by the Employer, the
annual amount of retirement income for such Participant as
determined in the preceding paragraphs shall be reduced by the
annual amount of retirement income, commencing on his Normal
Retirement Date, that can be provided under such defined
contribution plan on a Life-No Death Benefit basis by contributions
made to such defined contribution plan on the Participant's behalf
during the year in which this Plan is Top-Heavy.
If a Non-Key Employee is a Participant under this Plan and a defined
contribution plan maintained by the Employer, the annual amount of
retirement income for such Participant as determined in the
preceding paragraphs shall not be provided hereunder if the
retirement income provided under such defined contribution plan
together with the retirement income provided under Section III,
Normal Retirement Income, or Section IV, Late and Early Retirement
Income, are at least equal in value to such annual retirement
income. If the Minimum Retirement Income is payable in a form other
than a Life-No Death Benefit or on a date other than Normal
Retirement Date, it will be
================================================================================
187 33 XXXXXX FEDERAL SAVINGS BANK
Section VI
Maximum Retirement Income
--------------------------------------------------------------------------------
adjusted to be the actuarial equivalent of the Life-No Death Benefit
form payable at Normal Retirement Date based on the appropriate
Adjustment Factor.
(C) Minimum Vesting Percentage - Notwithstanding any other Vesting
Percentage provision of this Plan to the contrary, the Vesting
Percentage that is applied to the accrued retirement income of a
Participant who has at least one (1) Hour of Service with the
Employer on and after the date this Plan becomes a Top-Heavy Plan,
in accordance with the further terms of this Plan, and to the extent
that with respect to a Participant this is a faster vesting
schedule, shall be as determined as follows:
Service For Vesting Purposes Percentage
---------------------------- ----------
If he has less than 2 years: 0%
If he has 2 years: 20%
If he has 3 years: 40%
If he has 4 years: 60%
If he has 5 years: 80%
If he has 6 years: 100%
For those Plan Years in which the Plan ceases to be a Top-Heavy
Plan, the vesting schedule shall be determined in accordance with
the provisions of Section 1.1 (NN), subject to the following
conditions:
(1) The Vesting Percentage of a Participant's retirement income
before the Plan ceased to be a Top-Heavy Plan shall not be
reduced; and
(2) After the Plan ceases to be a Top-Heavy Plan, each Participant
with at least three (3) years of Service with the Employer
shall have his Vesting Percentage computed under the greater
of the provisions of this Section 6.2(C) or the provisions of
Section 1.1 (NN).
(D) Modification to Section 6.1 when a Plan is a Top-Heavy Plan - For
any Limitation Year prior to January 1, 2000 in which the Plan is
determined to be a Super Top-Heavy Plan, the definitions of the
"Defined Benefit Fraction", and "Defined Contribution Fraction" will
be changed by substituting in the denominator of each Fraction "1.0"
for "1.25" wherever it appears therein.
For any Plan Year in which the Plan is a Top-Heavy Plan but not a
Super Top-Heavy Plan, the Plan will be treated as a Super Top-Heavy
Plan hereunder unless paragraph (B)(1) is applied by substituting
"three percent (3%)" for "two percent (2%)".
================================================================================
187 34 XXXXXX FEDERAL SAVINGS BANK
Section VII
Normal Form of Payment
--------------------------------------------------------------------------------
SECTION VII
NORMAL FORM OF PAYMENT
7.1 Normal Form of Payment - Joint and Survivor
If the Participant has a Spouse on his Retirement Date, the normal form of
payment is the Joint and Survivor form. This form provides that, upon the
Participant's death on or after his Retirement Date, fifty percent (50%)
of the retirement income payable to the Participant will be paid to such
Spouse, if surviving the Participant, for the balance of the Spouse's
life.
As an alternative to the fifty percent (50%) continuation described above,
a Participant may elect that sixty-six and two-thirds percent (66-2/3%) or
one hundred percent (100%) of the benefit payable to him be continued to
his Spouse upon his death. Such election will not require spousal consent.
7.2 Normal Form of Payment - Life-No Death Benefit
If the Participant does not have a Spouse on his Retirement Date, the
normal form of payment is the Life-No Death Benefit form. This form
provides that payments will be made to the Participant in a level amount
during his lifetime and that, after his death, no further payment will be
made.
7.3 Optional Forms of Payment
Subject to the provisions of Section 7.5, in lieu of receiving his
retirement income in the normal form applicable to him, a Participant may
elect to receive a benefit of equal value in one of the optional forms of
payment described in Section VIII, Optional Forms of Payment. Moreover, if
the Participant's normal form of payment is that described in Section 7.1,
such Participant may also elect to receive, in lieu thereof, retirement
income in the form of a Life-No Death Benefit as described in the second
sentence of Section 7.2.
7.4 Notice to Participants
The Employer shall make every reasonable effort to furnish each
Participant, by personal delivery or first class mail, the following
information not less than thirty (30) days nor more than ninety (90) days
prior to his commencement of benefits:
(A) the terms and conditions of the Joint and Survivor form of payment,
(B) the Participant's right to make, and the effect of, an election to
waive the Joint and Survivor form of payment,
(C) the rights of the Participant's Spouse under the Plan,
================================================================================
187 35 XXXXXX FEDERAL SAVINGS BANK
Section VII
Normal Form of Payment
--------------------------------------------------------------------------------
(D) the right to make, and the effect of, a revocation of a previous
election to waive the Joint and Survivor form of payment, and
(E) the relative values of the various optional forms of payment under
the Plan.
The Employer may also permanently post in the Employer's office or offices
the information described in (A) through (E) above in a manner that is
reasonably calculated to reach the attention of each Participant.
7.5 Election of Option
The Participant may elect or revoke an option during the ninety (90) day
period before his Retirement Date by filing a written election with the
Employer. However, a Participant may not elect more than one (1) option to
be effective at the same time. No such election or revocation can be made
after the Participant's Retirement Date.
To elect an option, a married Participant must make a Qualified Election
in accordance with Section 7.6. If a Participant elects an optional form
of payment, the amount of retirement income payable to him must be more
than fifty percent (50%) of the present value of the retirement income
payable to the Participant had the option not been elected, unless the
alternate recipient is the Participant's Spouse; otherwise, such election
will be deemed null and void.
7.6 Qualified Election
Notwithstanding any other provisions in the Plan to the contrary, for
purposes of this Section 7.6, a Qualified Election to waive the Joint and
Survivor form of payment shall not be effective unless: (A) the
Participant's Spouse irrevocably consents in writing to the election; (B)
such election designates a Beneficiary or form of payment which may not be
changed without spousal consent (or the consent of the Spouse expressly
permits a change in such designations by the Participant without any
requirement of further consent by the Spouse), (C) the Spouse's consent
acknowledges understanding of the effect of such election, and (D) the
consent is witnessed by a Plan representative or a notary public.
Notwithstanding this spousal consent requirement, if the Participant
establishes to the satisfaction of a Plan representative that such written
consent cannot be obtained because:
(1) there is no Spouse;
(2) the Spouse cannot be located;
(3) there are other circumstances as the Secretary of the Treasury may
prescribe by regulations, then the Participant's election to waive
coverage will be considered valid.
================================================================================
187 36 XXXXXX FEDERAL SAVINGS BANK
Section VII
Normal Form of Payment
--------------------------------------------------------------------------------
Any consent necessary under this provision will be valid only with respect
to the Spouse who signs the consent. A Participant is allowed to revoke
his Qualified Election without the consent of his Spouse. The number of
his Qualified Elections and revocations is not limited.
7.7 Payment of Retirement Income to Participant
All payment of retirement income under the Plan shall be made in
accordance with Section 401(a)(9) of the Code. Subject to the Joint and
Survivor form of payment requirement of Section 7.1 and the Preretirement
Spouse Benefit requirement of Section IX, the distribution requirements of
Section 401(a)(9) of the Code as set forth in this Section 7.7 and in
Sections 7.8 and 7.9, shall take precedence over any inconsistent
provisions of this Plan.
Retirement income will be payable to the Participant monthly with each
payment equal to one twelfth (1/12) of the annual amount. The first of
such monthly payments will be made to the Participant as of his Retirement
Date, with subsequent monthly payments being made as of the first day of
each month thereafter until the Participant's death occurs.
Unless the Participant elects otherwise, the payment of retirement income
will commence no later than the sixtieth (60th) day after the end of the
Plan Year in which the latest of the following occurs.
(A) the Participant attains the earlier of (1) age sixty-five (65), or
(2) his Normal Retirement Date as defined in Section 1.1(W)(1), or
(B) the tenth (10th) anniversary of the year in which the Participant
commenced participation in the Plan, or
(C) the Participant's Termination of Employment with the Employer.
(1) Distributions to Five Percent Owners shall be subject to the
following rules: The vested interest in the Accrued Benefit of a
5-percent owner (as described in Section 416(i) of the Code and
determined with respect to the Plan Year ending in the calendar year
in which such individual attains age 70-1/2 must be distributed or
commence to be distributed no later than the first day of April
following the calendar year in which such individual attains age
70-1/2. The vested interest in the Accrued Benefit of a person who
is not a 5-percent owner (as described in Section 416(i) of the
Code) for the Plan Year ending in the calendar year in which such
person attains age 70-1/2 but who becomes a 5-percent owner (as
described in Section 416(i) of the Code) for a later Plan Year must
be distributed or commence to be distributed no later than the first
day of April following the last day of the calendar year that
includes the last day of the first Plan Year for which such
individual is a 5-percent owner (as described in Section 416(i) of
the Code).
================================================================================
187 37 XXXXXX FEDERAL SAVINGS BANK
Section VII
Normal Form of Payment
--------------------------------------------------------------------------------
(2) Distributions to other than 5-percent owners shall be subject to the
following rules: The vested interest in the Accrued Benefit of an
Employee who is not a five-percent owner and who attained age 70-1/2
prior to January 1, 1988, must be distributed or commence to be
distributed no later than the first day of April following the
calendar year in which occurs the later of: (i) his termination of
employment or (ii) his attainment of age 70-1/2.
Except as otherwise provided in the following paragraph, the vested
interest in the Accrued Benefit of any Employee who attains age
70-1/2 after December 31, 1987, must be distributed or commence to
be distributed no later than the first day of April following the
later of: (A) the 1989 calendar year or (B) the calendar year in
which such individual attains age 70-1/2.
Effective January 1, 1997, an Employee otherwise required to receive
a distribution under the preceding paragraph, may elect to defer
distribution of the Accrued Benefit to the date of his termination
of employment without spousal consent. In addition, no spousal
consent is required when payments recommence to the Employee, if
payments recommence to the Employee with the same Beneficiary and in
a form of benefit that is the same, but for the cessation of
distributions hereunder.
Notwithstanding the foregoing, the vested interest in the Accrued
Benefit of (I) any Employee who becomes a Participant on or after
January 1, 1997 or (II) any Employee who attains age 70-1/2 in a
calendar year beginning on or after January 1, 2002, must be
distributed or commence to be distributed no later than the first
day of April following the calendar year in which occurs the later
of: (1) his termination of employment or (2) his attainment of age
70-1/2.
Notwithstanding any provisions of the Plan to the contrary, any and
all distributions from the Plan shall be made in accordance with
Section 401(a)(9) of the Code and the requirements of Income Tax
Regulations issued under Code Section 401(a)(9).
7.8 Limits of Payment Options
Payments, if not made in a lump sum, may only be made over one of the
following periods (or a combination thereof):
(A) the life of the Participant,
(B) the life of the Participant and a designated Beneficiary,
(C) a period certain not extending beyond the life expectancy of the
Participant, or
(D) a period certain not extending beyond the joint and last survivor
expectancy of the Participant and his designated Beneficiary.
================================================================================
187 38 XXXXXX FEDERAL SAVINGS BANK
Section VII
Normal Form of Payment
--------------------------------------------------------------------------------
7.9 Minimum Amounts to be Paid
The amount to be paid each year must be at least an amount equal to the
quotient obtained by dividing the Participant's entire retirement income
by the life expectancy of the Participant or joint and last survivor
expectancy of the Participant and designated Beneficiary. Life expectancy
and joint and last survivor expectancy are computed by the use of the
return multiples contained in Income Tax Regulations Section 1.72-9. For
purposes of this computation, a Participant's life expectancy may be
recalculated no more frequently than annually, however, the life
expectancy of a non spouse Beneficiary may not be recalculated. If the
Participant's Spouse is not the designated Beneficiary, the method of
payment selected must assure that at least fifty percent (50%) of the
present value of the amount available for payment would be payable within
the life expectancy of the Participant.
If the Participant dies after payment of his retirement income has
commenced, the remaining portion of such retirement income will be paid at
least as rapidly as under the method of payment being used prior to the
Participant's death.
If the Participant dies before payment of his retirement income commences,
the Participant's entire retirement income must be paid no later than
December 31 of the calendar year containing the fifth anniversary of the
Participant's death except to the extent that an election is made to
receive payment in accordance with (A) or (B) below:
(A) If any portion of the Participant's retirement income is payable to
a designated Beneficiary other than the Participant's Spouse, such
payments will be made in substantially equal installments over the
life or life expectancy of the designated Beneficiary commencing on
or before December 31 of the calendar year immediately following the
calendar year in which the Participant died;
(B) If, however, the designated Beneficiary is the Participant's
surviving Spouse, the date on which payments are required to begin
in accordance with (A) above is not required to be earlier than the
later of (1) December 31 of the calendar year immediately following
the calendar year in which the Participant died, and (2) December 31
of the calendar year in which the Participant would have attained
age seventy and one-half (70-1/2).
With respect to distributions under the Plan made in calendar years
beginning on or after January 1, 2001, the Plan will apply the minimum
distribution requirements of Section 401(a)(9) of the Code in accordance
with the regulations under Section 401(a)(9) that were proposed in January
2001, notwithstanding any provision of the Plan to the contrary. This
amendment shall continue in effect until the end of the last calendar year
beginning before the effective date of final regulations under Section
401(a)(9) or such other date specified in guidance published by the
Internal Revenue Service.
================================================================================
187 39 XXXXXX FEDERAL SAVINGS BANK
Section VIII
Optional Forms of Payment
--------------------------------------------------------------------------------
SECTION VIII
OPTIONAL FORMS OF PAYMENT
8.1 Contingent Pensioner Option
A Participant who elects this option will receive a reduced amount of
retirement income during his lifetime, so that after his death retirement
income in the same amount, or sixty-six and two-thirds percent (66-2/3%)
or fifty percent (50%) thereof (as specified in the election) will be paid
for the life of the Contingent Pensioner designated by the Participant, if
surviving the Participant. If the option is in effect on the Participant's
Retirement Date, the amount of retirement income payable to the
Participant will be determined by multiplying the amount which would
otherwise be payable to him, assuming the normal form described in Section
7.2 is effective, by the appropriate Adjustment Factor.
If a Participant who has elected this option dies on or after his Normal
Retirement Date but before his Retirement Date, his Contingent Pensioner
will receive retirement income payments beginning on the first day of the
month next following the Participant's death and continuing for the
balance of his life.
These retirement income payments will be equal to the amount which would
have been payable to the Participant had he retired hereunder on such
first day of the month with the option in effect, as adjusted by the
continuation percentage (100%, 66-2/3% or 50%) elected by the Participant.
This option will be deemed null and void if (A) the Contingent Pensioner
dies before the Participant's Retirement Date or (B) the Participant dies
before the earlier of his Retirement Date and his Normal Retirement Date.
8.2 Years Certain and Life Option
Subject to the provisions of Section 7.8, a Participant who elects this
option will receive a reduced amount of retirement income during his
lifetime, so that if his death occurs within the year certain period
commencing upon his Retirement Date as specified in the election (5, 10,
15 or 20 years), retirement income in the same amount will be paid to the
Beneficiary designated by the Participant for the balance of the years
certain period specified by the Participant.
If the option is in effect on the Participant's Retirement Date, the
amount of retirement income payable to the Participant will be determined
by multiplying the amount which would otherwise be payable to him,
assuming the normal form described in Section 7.2 is effective, by the
appropriate Adjustment Factor.
If a Participant who has elected this option dies on or after his Normal
Retirement Date, but before his Retirement Date, his designated
Beneficiary will receive retirement income payments beginning on the first
day of the month next following the Participant's death and continuing
until
================================================================================
187 40 XXXXXX FEDERAL SAVINGS BANK
Section VIII
Optional Forms of Payment
--------------------------------------------------------------------------------
the end of the years certain period specified by the Participant. These
retirement income payments will be in the same amount as would have been
payable had the Participant retired hereunder on such first day of the
month with the option in effect.
If this option is in effect on the Participant's Retirement Date and
neither the Participant nor his designated Beneficiary survives to the end
of the years certain period, a final lump sum payment equal to the
commuted value of any unpaid payments shall be made as follows: to the
Participant's Spouse, if living; otherwise, in equal shares to surviving
children of the Participant; and in the event none of the above-named
individuals survives the Participant, to the executor or administrator of
the estate of the last to die of (A) the Participant or (B) the last to
survive of his designated Beneficiaries.
This option will be deemed null and void if the Participant dies before
the earlier of his Retirement Date and Normal Retirement Date.
8.3 Social Security Option
(A) For the purposes of this Section 8.3, the words and phrases below
will have the following meanings:
(1) Social Security Amount means the annual Primary Insurance
Amount, or portion thereof, which the Participant is expected
to receive under the Social Security Act.
(2) Social Security Commencement Date means the first day of the
month coincident with or next following the date the
Participant's Social Security Amount is expected to commence.
(B) A Participant may elect this option if his Retirement Date precedes
his Social Security Commencement Date. Upon such election, the
Employer will determine the Participant's Social Security Amount and
Social Security Commencement Date on the basis of the Social
Security Act then constituted.
(C) The Participant who elects this option will receive increased
retirement income before his Social Security.
Commencement Date and reduced retirement income thereafter, so that
the Participant's total benefit under this Plan and the Social
Security Act will be paid in a generally level amount throughout his
retirement.
(D) The amount of increased retirement income will be equal to the
amount of retirement income which would have been payable to the
Participant if this option had not been elected, assuming the normal
form described in Section 7.2 is effective, plus his Social Security
Amount multiplied by the appropriate Adjustment Factor. The amount
of reduced retirement income will be equal to the increased amount
of retirement income
================================================================================
187 41 XXXXXX FEDERAL SAVINGS BANK
Section VIII
Optional Forms of Payment
--------------------------------------------------------------------------------
payable to the Participant before his Social Security Commencement
Date minus his Social Security Amount.
8.4 Direct Rollover of Eligible Rollover Distributions
For purposes of this Section 8.4, the following definitions shall apply:
(A) "Direct Rollover" means a payment by the Plan to the Eligible
Retirement Plan specified by the Distributee.
(B) "Distributee" means an Employee or former Employee. In addition, the
Employee's or former Employee's surviving Spouse and the Employee's
or former Employee's Spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in
Section 414(p) of the Code, are Distributees with regard to the
interest of the Spouse or former spouse.
(C) "Eligible Retirement Plan" means an individual retirement account
described in Section 408(a) of the Code, an individual retirement
annuity described in Section 408(b) of the Code, an annuity plan
described in Section 403(a) of the Code, or a qualified trust
described in Section 401(a) of the Code, that accepts the
Distributee's Eligible Rollover Distribution. However, in the case
of an Eligible Rollover Distribution to the surviving Spouse, an
Eligible Retirement Plan is an individual retirement account or
individual retirement annuity.
(D) "Eligible Rollover Distribution" means any distribution of all or
any portion of the balance to the credit of the Distributee, except
that an Eligible Rollover Distribution does not include: any
distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or
life expectancy) of the Distributee or the joint lives (or joint
life expectancies) of the Distributee and the Distributee's
designated Beneficiary, or for a specified period of ten (10) years
or more; any distribution to the extent such distribution is
required under Section 401(a)(9) of the Code; the portion of any
distribution that is not includable in gross income (determined
without regard to the exclusion for net unrealized appreciation with
respect to employer securities); and effective January 1, 2000, any
hardship distribution described in Section 401(k)(2)(B)(i)(IV) of
the Code.
Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a Distributee's election under this Section, a Distributee
may elect, at the time and in the manner prescribed by the Plan
Administrator, to have any portion of an Eligible Rollover Distribution
paid directly to an Eligible Retirement Plan specified by the Distributee
in a Direct Rollover.
================================================================================
187 42 XXXXXX FEDERAL SAVINGS BANK
Section IX
Preretirement Spouse Benefit
--------------------------------------------------------------------------------
SECTION IX
PRERETIREMENT SPOUSE BENEFIT
9.1 Eligibility for Preretirement Spouse Benefit
Upon the death of a Participant before his Retirement Date, his Spouse
will receive a Preretirement Spouse Benefit as described in this Section
IX if all the following requirements were met when the Participant died:
(A) the Participant had a Spouse as defined in Section 1.1(KK) to whom
the Participant had been married at least one (1) full year prior to
his death;
(B) the Participant was credited with at least one (1) Hour of Service
on or after August 23, 1984;
(C) the Participant had a vested right to Employer funded benefits.
9.2 Amount of Preretirement Spouse Benefit
(A) For purposes of this Section 9.2, earliest retirement age means the
earliest date on which a Participant could elect to receive his
retirement income under the Plan.
(B) The Preretirement Spouse Benefit will be payable in the form of
retirement income. The annual amount of such benefit will be as
follows:
(1) With respect to a Participant who, on his date of death, has
attained age fifty (50) and completed ten (10) years of
Service, and who dies while actively employed with the
Employer, the Preretirement Spouse Benefit will be payable as
retirement income, deferred to the Participant's Normal
Retirement Date. The annual amount of such benefit will be
equal to fifty percent (50%) of the retirement income which
the Participant would have received in accordance with Section
3.1 assuming that his Credited Service remained uninterrupted
and that his Earnings remained unchanged until his Normal
Retirement Date. However, if the surviving Spouse of such a
Participant is more than ten (10) years younger than the
Participant, the annual retirement income will be reduced in
accordance with the following schedule:
================================================================================
187 43 XXXXXX FEDERAL SAVINGS BANK
Section IX
Preretirement Spouse Benefit
--------------------------------------------------------------------------------
Number of Full Years By Which the
Participant's Spouse is Younger than
the Participant Percentage
------------------------------------ ----------
11 98%
12 96%
13 94%
etc., decreasing in steps etc., decreasing
of one year in steps of 2%
If the Participant's Spouse elects to receive the first initial
monthly payment prior to the date the Participant would have reached
his Normal Retirement Date, the annual amount of such retirement
income will be the same amount which the surviving Spouse would
receive in accordance with the previous paragraph of this Section
9.2, as adjusted in accordance with the appropriate terms of Section
IV, Late and Early Retirement Income.
(2) With respect to a Participant who is not described in paragraph (1)
above, the Preretirement Spouse Benefit will be payable in the form
of retirement income. The annual amount of such retirement income
will be as follows:
(a) (i) If a Participant dies after his earliest retirement age
and on or after his Normal Retirement Date, fifty
percent (50%) of the retirement income which the
Participant would have received had he retired on the
day before his death, with his retirement income payable
as an immediate 50% Joint and Survivor form of payment,
adjusted in accordance with the appropriate terms of
Section IV, Late and Early Retirement Income.
(ii) If the Participant dies on or after his earliest
retirement age but prior to his Normal Retirement Date,
fifty percent (50%) of the retirement income which the
Participant would have received had he retired on the
day before his death, with his retirement income payable
as a 50% Joint and Survivor form of payment deferred to
the Participant 's Normal Retirement Date. If the
Participant's Spouse elects to receive the first initial
monthly payment prior to the date the Participant would
have reached his Normal Retirement Date, the annual
amount of such retirement income will be fifty percent
(50%) of the reduced retirement income which the
Participant would have received had he retired on the
day before his death, with his retirement income payable
as a 50% Joint and Survivor form of payment and as
adjusted in accordance with the appropriate terms of
Section IV, Late and Early Retirement Income.
================================================================================
187 44 XXXXXX FEDERAL SAVINGS BANK
Section IX
Preretirement Spouse Benefit
--------------------------------------------------------------------------------
(b) If a Participant dies before his earliest retirement age, his
Spouse will receive the same reduced retirement income,
deferred to the Participant's Normal Retirement Date, that
would have been payable if the Participant had:
(i) terminated employment on the earlier of his actual
Termination of Employment and his date of death;
(ii) survived to his Normal Retirement Date;
(iii) elected to receive an immediate 50% Joint and Survivor
form of payment at his Normal Retirement Date; and
(iv) died on the day immediately after his Normal Retirement
Date.
Notwithstanding the preceding sentence, the Spouse of a Participant
may elect that the retirement income commence on the Participant's
earliest retirement age following the Participant's death. Such
benefit shall be equal to the same benefit that would have been
payable to the Spouse if the Participant (I) terminated employment
on the earlier of his actual Termination of Employment and his date
of death, (II) survived to his earliest retirement age, (III)
retired at his earliest retirement age with an immediate 50% Joint
and Survivor form of payment, and (IV) died on the day after his
earliest retirement age.
9.3 Payments of Preretirement Spouse Benefit
The retirement income will be payable monthly with each payment equivalent
to one twelfth (1/12) of the annual amount. The initial monthly payment
will be made as of the first day of the month coincident with or next
following the later of the date the Participant would have attained his
Normal Retirement Date if he had lived and his date of death.
Notwithstanding the foregoing sentence,
(A) a Participant's Spouse may, pursuant to Section 9.2, elect that the
initial monthly payment will be made as of the first day of the
month coincident with or next following the later of the
Participant's death or earliest retirement age (as defined in
Section 9.2), or
(B) a Participant's Spouse may elect to defer the commencement of
payments to the first day of any month up to and including the month
in which the Participant would have attained age seventy and
one-half (70-1/2) if he had lived. The amount of such deferred
payment will be adjusted in accordance with the appropriate terms of
Section IV, Late and Early Retirement Income, to reflect such later
commencement.
================================================================================
187 45 XXXXXX FEDERAL SAVINGS BANK
Section IX
Preretirement Spouse Benefit
--------------------------------------------------------------------------------
Subsequent monthly payments will be made as of the first day of each month
thereafter until the Spouse's death occurs.
================================================================================
187 46 XXXXXX FEDERAL SAVINGS BANK
Section X
Death Benefits
--------------------------------------------------------------------------------
SECTION X
DEATH BENEFITS
10.1 Death Before Retirement Date
If a Participant dies before the earlier of his Normal Retirement Date or
his Retirement Date, his Spouse will be eligible to receive retirement
income in accordance with Section IX, Preretirement Spouse Benefit if the
Preretirement Spouse Benefit is effective. Otherwise, no benefit will
become payable. If the Participant dies on or after his Normal Retirement
Date and before his Late Retirement Date and had a Spouse on the date of
his death, retirement income as described in Section 9.2. will be paid to
the Participant's Spouse, provided an optional form of payment was not
then in effect. If an optional form of payment was in effect on such
Participant's death, any retirement income payable will be paid in
accordance with such form. If on such Participant's death the Participant
did not have a Spouse and no optional form was in effect, no retirement
income will become payable.
10.2 Death on or After Retirement Date
If a Participant dies after his Retirement Date and had a Spouse on the
date of his death, retirement income as described in Section 7.1 will be
paid to the Participant's Spouse provided another form of payment is not
in effect.
If a Participant dies after his Retirement Date and has no Spouse, no
retirement income will be payable unless an optional form of payment
providing for such payment is then in effect.
================================================================================
187 47 XXXXXX FEDERAL SAVINGS BANK
Section XI
Funding of Benefits
--------------------------------------------------------------------------------
SECTION XI
FUNDING OF BENEFITS
11.1 Contributions to the Fund
From time to time and in such frequency as required by law, the Employer
will make such contributions to the Fund as required to maintain the Plan
on a sound actuarial basis. In determining the amounts and incidence of
such contributions, the Employer will take into account such actuarial
recommendations as may be provided by an enrolled actuary as defined by
ERISA. Additional amounts may be contributed only to the extent permitted
by law.
11.2 Fund for Exclusive Benefit of Participants
The Fund is for the exclusive benefit of Participants and other persons
who may become entitled to benefits hereunder, and may also be used to pay
any reasonable expenses arising from the operation of the Plan. Prior to
the satisfaction of all liabilities for benefits provided hereunder, no
contribution made to the Fund will be refunded to the Employer unless a
contribution was made:
(A) by reason of a mistake of fact,
(B) conditionally upon an initial favorable Internal Revenue Service
determination and such a determination is not received, or
(C) conditionally upon being allowed as a tax deduction and such
deduction is disallowed.
For purposes of this Section 11.2, all contributions to the Plan made by
the Employer shall be deemed to be conditioned on the deductibility by the
Employer of such contributions under Section 404 of the Code unless such
contributions are made for the purpose of satisfying the minimum funding
standards of Section 412 of the Code.
Such refund must be made within one year, under (A) from the date the
contribution was made and, under (B) and (C) from the date of disallowance
of tax qualification or tax deduction. All such refunds will be limited in
amount, circumstances and timing to the provisions of Section 403(c) of
ERISA and no such refund shall be made if, solely on account of such
refund, the Plan would cease to be qualified pursuant to Section 401(a) of
the Code.
11.3 Disposition of Credits and Forfeitures
No credit or forfeitures arising from the operation of the Plan may be
used to increase the benefit of any Participant or group of Participants,
but will instead be taken into account to reduce contributions to be made
by the Employer.
================================================================================
187 48 XXXXXX FEDERAL SAVINGS BANK
Section XII
Fiduciary Responsibility Provisions
--------------------------------------------------------------------------------
SECTION XII
FIDUCIARY RESPONSIBILITY PROVISIONS
12.1 Fiduciary Responsibility Provisions
As required by ERISA, the Employer, by action of its governing board,
shall appoint certain named fiduciaries of the Plan.
The named fiduciary or fiduciaries, as the case may be, shall have the
authority to control and manage the operation of the Plan, and shall be
responsible for establishing and carrying out a funding policy and method
consistent with the objectives of the Plan and the requirements of ERISA.
If more than one fiduciary has been named, this authority and
responsibility shall be jointly and severally shared.
Any person or group of persons may serve in more than one fiduciary
capacity with respect to the Plan. A named fiduciary (or a fiduciary
designated by a named fiduciary) may employ one or more persons to render
advice with regard to any responsibilities such fiduciary has under the
Plan. A person who is a named fiduciary with respect to control and
management of the assets of the Plan may appoint an investment manager or
managers to manage any assets of the Plan. Unless it shall agree to accept
additional fiduciary responsibility, the investment manager's liability as
a fiduciary is limited to that arising from its management of any assets
of the Plan held by the investment manager in one or more of its separate
accounts.
The Employer may allocate fiduciary responsibilities (other than trustee
responsibilities) among named fiduciaries if there are more than one.
Provision may be made for named fiduciaries to designate persons other
than named fiduciaries to carry out fiduciary responsibilities under the
Plan. If any fiduciary responsibility of a named fiduciary is allocated to
any persons or a person is designated to carry out such responsibility,
then such named fiduciary shall not be liable for any act or omission of
such person in carrying out such responsibility except as provided by
ERISA.
No fiduciary guarantees the Fund in any manner against investment loss or
depreciation of asset value.
================================================================================
187 49 XXXXXX FEDERAL SAVINGS BANK
Section XIII
Plan Administrator
--------------------------------------------------------------------------------
SECTION XIII
PLAN ADMINISTRATOR
13.1 Appointment and Acceptance
As required by ERISA, the Employer will appoint a Plan Administrator of
the Plan by designating either the Employer or an individual or group of
individuals to act in this capacity. The person designated as Plan
Administrator shall signify acceptance of this position in writing.
The Plan Administrator is a fiduciary within the meaning of ERISA.
13.2 Duties and Authority
The Plan Administrator will administer the Plan on behalf of the Employer
in a nondiscriminatory manner for the exclusive benefit of Participants
and their Beneficiaries.
The Plan Administrator will perform all such duties as are necessary to
operate, administer and manage the Plan in accordance with the terms
thereof, including but not limited to the following:
(A) to determine all questions relating to a Participant's coverage
under the Plan,
(B) to maintain all necessary records for the administration of the
Plan,
(C) to compute and authorize the payment of retirement income and other
benefit payments to eligible Participants and Beneficiaries,
(D) to interpret and construe the provisions of the Plan and to make
regulations which are not inconsistent with the terms thereof,
(E) to advise or assist Participants regarding any rights, benefits or
elections available under the Plan.
The Plan Administrator will take such actions as are necessary to
establish and maintain the Plan as a retirement program which is at all
times in full and timely compliance with any law or regulation having
pertinence to this Plan.
The Plan Administrator is granted by the Employer all reasonable powers
necessary or appropriate to accomplish his duties as Plan Administrator.
13.3 Expenses of the Plan and Assistance to Plan Administrator
All reasonable expenses necessary to operate and administer the Plan shall
be borne by the Employer except to the extent the Employer has elected to
pay such expenses from the Fund.
================================================================================
187 50 XXXXXX FEDERAL SAVINGS BANK
Section XIII
Plan Administrator
--------------------------------------------------------------------------------
The Employer shall furnish the Plan Administrator with such clerical and
other assistance as is required in the performance of his duties.
13.4 Participants and Other Payees - Data
Participants and other persons affected by the Plan will furnish the Plan
Administrator upon request such documents, evidence or information which
the Plan Administrator considers necessary or desirable for the purpose of
administering the Plan. The Plan Administrator may cause to be withheld
any payment otherwise due the Participant or other person, until the
required document, evidence or other information is so furnished.
13.5 Resignation and Removal of Plan Administrator
The Plan Administrator may resign at any time by delivering to the
Employer a written notice of resignation, to take effect at a date
specified therein. Such date should not be less than thirty (30) days
after the delivery of the resignation, unless waived by the Employer.
The Plan Administrator may be removed with or without cause by the
Employer through delivery to him of written notice of removal, to take
effect at a date specified therein.
13.6 Appointment of Successor Plan Administrator
In the event the office of Plan Administrator is vacant, the Employer will
promptly designate a successor Plan Administrator who must signify
acceptance of this position in writing. In the event no successor is
appointed, the board or other governing body of the Employer shall
function as the Plan Administrator until a new Plan Administrator has been
appointed and has accepted such appointment.
13.7 Plan Administration - Miscellaneous
(A) Filing a Claim for Benefits - A Participant or Beneficiary shall
notify the Plan Administrator of a claim for benefits under the
Plan. Such request may be in any form adequate to give reasonable
notice to the Plan Administrator and shall set forth the basis of
such claim and shall authorize the Plan Administrator to conduct
such examinations as may be necessary to determine the validity of
the claim and to take such steps as may be necessary to facilitate
the payment of any benefits to which the Participant or Beneficiary
may be entitled under the Plan.
(B) Denial of Claim - Whenever a claim for benefits by any Participant
or Beneficiary has been denied, written notice prepared in a manner
calculated to be understood by the Participant or Beneficiary will
be provided, setting forth the specific reasons for the denial and
explaining the procedure for an appeal and review of the decision by
the Plan Administrator.
================================================================================
187 51 XXXXXX FEDERAL SAVINGS BANK
Section XIII
Plan Administrator
--------------------------------------------------------------------------------
(C) Governing Law - The Plan shall be governed and construed and
enforced in accordance with the laws of the State of New York,
without regard to the choice of law or conflict of law rules
recognized by such state, except to the extent that such laws are
preempted by the federal laws of the United States of America.
(D) Masculine and Feminine, Singular and Plural - In construing the text
of the Plan, the masculine shall include the feminine and the
singular shall include the plural, and the plural the singular
wherever the context shall plainly so require.
(E) Reference to Laws and Sections - Any reference herein to any section
of the Code, ERISA or any other statute or law shall be deemed to
include any successor statute or law of similar import. Any
reference to a section number shall refer to a Section of this Plan,
unless otherwise indicated.
(F) Nonassignment - Except, effective August 5, 1997, to the extent of
any offset of a Participant's benefits as a result of any judgment,
order, decree or settlement agreement provided in Section
401(a)(13)(C) of the Code, all retirement income payments and other
payments are provided for the Participant, Beneficiary or other
person to whom a payment is due ("Payee") for the support and
benefit of such Payee, and such retirement income shall not be
assigned or anticipated and shall be free from the claims of all
creditors, to the fullest extent permitted by law.
(G) Small Benefits - Notwithstanding any other provision in the Plan to
the contrary, if the Value of a Participant's nonforfeitable
retirement income at his Termination of Employment, retirement or
death prior to the commencement of payments is $3,500 (and,
effective January 1, 1998, $5,000) or less, the Plan Administrator
shall authorize a lump sum payment of such Value in lieu of all
future payments. If the Value of a Participant's nonforfeitable
retirement income at his Termination of Employment, retirement or
death prior to commencement of payments is $0, the Participant or,
if applicable, his Beneficiary, shall be deemed to have received a
lump sum payment of the vested nonforfeitable retirement income.
For purposes of this paragraph (G), Value means the actuarially
equivalent value of the normal form of retirement income payable in
the form of a lump sum. Prior to January 1, 2000, the value shall be
based upon the PBGC immediate annuity interest rate in effect three
(3) months prior to the Participant's Termination of Employment,
retirement or death (or, if lesser, the interest rate which would be
used as of the date of the distribution by the PBGC for purposes of
determining the present value of a lump sum distribution on plan
termination) and the UP-1984 Mortality Table. Effective January 1,
2000, except as otherwise provided in Table A, the value shall be
calculated as of the date of distribution (I) using the GATT
Applicable Mortality Table and the GATT Applicable Interest Rate,
both as set forth in Table A.
================================================================================
187 52 XXXXXX FEDERAL SAVINGS BANK
Section XIII
Plan Administrator
--------------------------------------------------------------------------------
In the case of benefits payable in the form of (i) a Preretirement
Spouse Benefit under Section IX or a Joint and Survivor form under
Section 7.1 or a Contingent Pensioner Option as described Section
8.1, with the Participant's Spouse as beneficiary, if the present
value of the nonforfeitable Accrued Benefit at the time of any
distribution exceeds three thousand five hundred dollars ($3,500)
(and effective January 1, 1998, five thousand dollars ($5,000), the
present value of the Accrued Benefit at any subsequent time will be
deemed to exceed three thousand five hundred dollars ($3,500) (and
effective January 1, 1998, five thousand dollars ($5,000)). In
addition, if the Participant has begun to receive distributions
pursuant to a form of benefits under which at least one scheduled
periodic distribution is still payable, and the present value of the
Participant's nonforfeitable Accrued Benefit exceeded the three
thousand five hundred dollar ($3,500) (and effective January 1,
1998, five thousand dollar ($5,000)) cash out limit at the time of
the first distribution under that optional form, the present value
of the Accrued Benefit at any subsequent time will be deemed to
exceed three thousand five hundred dollars ($3,500) (and effective
January 1, 1998, five thousand dollars ($5,000)). In all other
cases, if the present value of a Participant's nonforfeitable
Accrued Benefit determined at the time of any distribution, is equal
to or less than three thousand five hundred dollars ($3,500) (and
effective January 1, 1998, five thousand dollars ($5,000)), such
Participant, or if applicable, a deceased Participant's beneficiary,
shall automatically receive a distribution of the full present value
of the nonforfeitable Accrued Benefit. Such determination shall be
made without regard to the present value of the Participant's
benefit at the time of any earlier distribution.
(H) Limitation - Participation in the Plan shall not grant any
Participant the right to be retained in the employ of the Employer
or any other rights than those to which he is entitled under law or
regulations.
(I) Divestment of Benefits for Cause Precluded - In no event may a
Participant be divested for cause of retirement income or other
benefits which he is eligible to receive under the Plan.
(J) Clerical Error - If any fact pertaining to eligibility for or
amounts of benefits payable under the Plan to a Participant,
Beneficiary or other person to whom a payment is due has been
misstated, or in the event of clerical error, the benefits will be
adjusted on the basis of the correct facts in a manner precluding
individual selection.
(K) Qualified Domestic Relations Orders - Notwithstanding any other
provisions of the Plan to the contrary, all or part of the
Participant's Accrued Benefit may be distributed to an alternate
payee pursuant to a Qualified Domestic Relations Order within the
meaning of Section 414(p) of the Code. The Plan Administrator shall
establish procedures for determining if a Domestic Relations Order
is qualified within the meaning of Section 414(p) of the Code.
================================================================================
187 53 XXXXXX FEDERAL SAVINGS BANK
Section XIII
Plan Administrator
--------------------------------------------------------------------------------
(L) Missing Payee - Notwithstanding any other provision in the Plan to
the contrary, if payment is not able to be made to any Employee,
Participant, Beneficiary or other person to whom a payment is due
("Payee") under the Plan because the identity or whereabouts of such
Payee cannot be ascertained after reasonable efforts have been made
to identify or locate such person (including mailing a certified
notice of the payment due to the last known address of such Payee as
shown on the records of the Employer), such payment and all
subsequent payments otherwise due to such Payee shall be forfeited
twenty-four (24) months after the date such payment first became
due. However, such payment and any subsequent payments shall be
reinstated retroactively, without interest, no later than sixty (60)
days after the date on which the Payee is identified and located.
Notwithstanding the foregoing, as of the termination date of the
Plan, the Plan Administrator shall (i) transfer benefits of missing
Participants to the Pension Benefit Guaranty Corporation, or (ii)
purchase an irrevocable commitment in the amount necessary to
provide the benefits of any missing Participants from an insurer, to
the extent provided for under Code Section 401(a)(34) and Section
4050 of the Employee Retirement Income Security Act of 1974, as
amended, and the regulations thereunder.
(M) Headings - The headings of sections are included solely for
convenience of reference, and if there be any conflict between such
headings and the text of the Plan, the text shall control.
================================================================================
187 54 XXXXXX FEDERAL SAVINGS BANK
Section XIV
Amendment and Termination of Plan
--------------------------------------------------------------------------------
SECTION XIV
AMENDMENT AND TERMINATION OF PLAN
14.1 Amendment - General
The Employer reserves the right to amend or modify the Plan in whole or in
part from time to time. No such action shall adversely affect the Accrued
Benefits of Participants; provided, however, that the Employer may make
any amendment or modification (of retroactive effect, if necessary) to
establish and maintain the Plan's qualification under Section 401(a) of
the Code and to bring the Plan into full compliance with ERISA.
If any amendment changes the Vesting Percentage of this Plan, any
Participant with three (3) or more years of Service may, by filing a
written request with the Employer, elect to have his Vested Percentage
computed under the vesting schedule in effect prior to the amendment.
The period during which the Participant may elect to have his Vested
Percentage computed under the prior vesting schedule shall commence with
the date the amendment is adopted and shall end on the latest of:
(A) sixty (60) days after the amendment is adopted;
(B) sixty (60) days after the amendment becomes effective; or
(C) sixty (60) days after the Participant is issued written notice of
the amendment from the Employer.
14.2 Amendment - Merger or Consolidation of Plan
This Plan may be amended by the Employer to provide for the merger or
consolidation of the Plan with another retirement plan or for the transfer
of assets and liabilities hereunder to another retirement plan. Such an
event, however, may not occur unless such Participant would receive a
retirement benefit under such other retirement plan after the merger,
consolidation or transfer (assuming the surviving plan had then
terminated) which is at least as great as the benefit he would have
received under this Plan immediately prior to the merger, consolidation or
transfer (assuming the plan had then terminated).
14.3 Partial Termination of Plan
In the event a partial termination of the Plan occurs with respect to a
specified group of Participants, the Employer shall cause to be allocated
and segregated for the benefit of such Participants a proportionate
interest in the Fund. Such proportionate interest shall be determined by
an enrolled actuary as defined by ERISA and applied by the Employer to
provide retirement income to such Participants in accordance with the
following terms of this
================================================================================
187 55 XXXXXX FEDERAL SAVINGS BANK
Section XIV
Amendment and Termination of Plan
--------------------------------------------------------------------------------
Section XIV. Any retirement income so provided shall be nonforfeitable.
However, no Participant or other individual shall have recourse towards
the satisfaction of any benefit accrued under the Plan other than from the
Fund or the PBGC.
14.4 Termination of Plan
The Employer intends to continue the Plan indefinitely but reserves the
right to terminate it at any time. The date when the Plan is terminated,
completely or partially, shall be referred to in this Section 14.4 as the
Plan Termination Date.
As of the Plan Termination Date, retirement income accrued on account of a
Participant shall be nonforfeitable. However, no Participant or other
individual shall have recourse towards the satisfaction of any benefit
accrued under the Plan other than from the Fund or the PBGC.
After any final expenses have been withdrawn from the Fund, the Employer
shall cause the amount remaining in the Fund to be allocated according to
the following categories, in the order given:
(A) first, there shall be allocated an amount necessary to provide
retirement income for Participants and other individuals who, three
(3) years prior to the Plan Termination Date, were either receiving
retirement income or would have been eligible to receive retirement
income had they then retired.
(For this purpose "retirement income" means retirement income
determined for the Participant or other individual in accordance
with provisions of the Plan in effect five (5) years prior to the
Plan Termination Date.)
(B) second, there shall be allocated an amount necessary to provide all
other retirement income guaranteed under Title IV of ERISA, as
determined in accordance with Section 4044 thereof.
(C) third, there shall be allocated an amount necessary to provide all
other retirement income not guaranteed by ERISA which vests in each
Participant in accordance with Section V, Termination of Employment
and Vested Retirement Income, assuming that the Plan Termination
Date is his Termination of Employment date.
(D) fourth, there shall be allocated an amount necessary to provide all
other retirement income accrued by Participants as of the Plan
Termination Date but not then vested in accordance with Section V,
Termination of Employment and Vested Retirement Income.
The amount necessary to provide the retirement income specified in each of
the above categories shall be determined in accordance with annuity
purchase rate assumptions selected by the Employer in accordance with such
governmental regulations as may apply.
================================================================================
187 56 XXXXXX FEDERAL SAVINGS BANK
Section XIV
Amendment and Termination of Plan
--------------------------------------------------------------------------------
Amounts allocated on a Participant's behalf under any category above shall
be appropriately adjusted if:
(1) an amount has been allocated on such Participant's behalf
under a prior category, and/or
(2) all or a portion of a Participant's retirement income has been
guaranteed under an insurance company contract prior to the
Plan Termination Date.
If the amount available for allocation under any category is not
sufficient to fully provide retirement income specified for such category,
a pro rata allocation of the amount available will be made, and reduced
retirement income will be provided to the extent possible.
As provided by ERISA, the Internal Revenue Service may require that the
Fund be allocated in a manner different than that specified above in order
to meet nondiscrimination requirements.
After the assets of the Fund have been withdrawn and allocated in
accordance with the preceding terms of this Section 14.4, any amount
remaining in the Fund will be returned to the Employer.
Notwithstanding the foregoing provisions, the amount of any retirement
income otherwise to be provided in accordance with this Section 14.4 will
be restricted in accordance with Section XV, Restriction of Benefits Upon
Early Termination, to any extent required.
================================================================================
187 57 XXXXXX FEDERAL SAVINGS BANK
Section XV
Restriction of Benefits Upon Early Termination of the Plan
--------------------------------------------------------------------------------
SECTION XV
RESTRICTION OF BENEFITS UPON EARLY TERMINATION OF THE PLAN
15.1 Restriction of Benefits Upon Early Termination of the Plan
This Section XV is included in the Plan to conform to the requirements of
Income Tax Regulations Section 1.401(a)(4).
(A) The following provisions relating to restrictions on benefits
payable to certain highly compensated employees are applicable
(1) For purposes of this Section 15.1, "Restricted Employee" shall
mean any one of the twenty-five (25) highest paid Employees
from the group comprised of Highly Compensated Employees (as
defined under Section 414(q) of the Code) and Highly
Compensated Former Employees (as defined under Section
414(q)(6) of the Code).
(2) If the Plan is terminated, the benefit which becomes payable
to a Restricted Employee must satisfy the nondiscrimination
requirements of Section 401(a)(4) of the Code and the
regulations promulgated thereunder.
(3) If a benefit becomes payable to a Restricted Employee before
the Plan terminates, the maximum annual benefit payable to
such Restricted Employee shall be an amount equal to the
annual payments which would be payable to him assuming
payments in the form of a Life-No Death Benefit that is the
actuarial equivalent of his Accrued Benefit and other benefits
to which the Restricted Employee is entitled under the Plan
(other than any social security supplement within the meaning
of Income Tax Regulations Section 1.411(a)-7(c)(4)(ii)).
(4) Notwithstanding the foregoing, the restrictions set forth in
paragraph (3) above shall not apply if:
(a) after payment to a Restricted Employee of his benefit,
the value of Plan assets equals or exceeds one hundred
ten percent (110%) of the value of current liabilities
as defined under Section 412(l)(7) of the Code; or
(b) prior to any payment to the Restricted Employee, the
value of the benefit payable to the Restricted Employee
is less than one percent (1%) of the value of current
liabilities as defined under Section 412(l)(7) of the
Code; or
================================================================================
187 58 XXXXXX FEDERAL SAVINGS BANK
Section XV
Restriction of Benefits Upon Early Termination of the Plan
--------------------------------------------------------------------------------
(c) the value of the benefit payable to the Restricted
Employee is less than or equal to three thousand five
hundred dollars ($3,500) (and effective January 1, 1998,
five thousand dollars ($5,000).
For purposes of this paragraph (4), the value of Plan assets
and the value of current liabilities must be determined as of
the same date.
(B) The terms of this Section 15.1 shall prevail over any other terms of
the Plan that may be inconsistent herewith.
(C) Any limitations or procedures in this Section 15.1 shall
automatically become inoperative and of no effect upon a ruling,
regulation or other pronouncement by the Internal Revenue Service
that such limitations or procedures are not required, have been
superseded or no longer apply.
================================================================================
187 59 XXXXXX FEDERAL SAVINGS BANK
Table A
--------------------------------------------------------------------------------
TABLE A
Late Retirement Adjustment Factor
Years After Normal Years After Normal
Retirement Date Factor Retirement Date Factor
--------------- ------ --------------- ------
(not beyond (not beyond
December 31, 2000) December 31, 2000)
1 1.08 6 1.63
2 1.17 7 1.77
3 1.27 8 1.92
4 1.38 9 2.08
5 1.50 10 2.25
Early Commencement Adjustment Factor
Years Prior to Normal Years Prior to Normal
Retirement Date Factor Retirement Date Factor
--------------- ------ --------------- ------
1 .93 6 .62
2 .86 7 .59
3 .79 8 .56
4 .72 9 .53
5 .65 10 .50
Social Security Option Adjustment Factor
Years Prior to Normal Years Prior to Normal
Retirement Date Factor Retirement Date Factor
--------------- ------ --------------- ------
1 .93 6 .62
2 .86 7 .59
3 .79 8 .56
4 .72 9 .53
5 .65 10 .50
================================================================================
187 60 XXXXXX FEDERAL SAVINGS BANK
Table A
--------------------------------------------------------------------------------
TABLE A (Continued)
Years Certain and Life Option Adjustment Factor
Age of Benefit
Commencement Number of Years Certain
------------ -----------------------
5 10 15 20
--- -- -- --
Less Than 55 .99 .98 .95 .92
55 - 59 .98 .97 .93 .89
60 - 64 .97 .95 .90 .85
65 and Over .96 .93 .87 .79
Joint and Survivor Adjustment Factor and Contingent Pensioner Option Adjustment
Factor
Joint and Survivor and
Contingent Annuitant
Age of Participant Continuation Percentage *
------------------ -------------------------
50% 66-2/3% 100%
--- ------- ----
Less Than 55 .92 .89 .85
55 - 59 .91 .88 .84
60 - 64 .90 .87 .82
65 and Over .89 .86 .81
* Rates shall be reduced (increased) by .01 for each full year by which the
joint annuitant is younger (older) than the participant by more than three
years. Maximum factor is .98.
Factors for other than integral years shall be interpolated from the above table
and rounded to nearest .01.
Application of GATT Mortality Table and Interest Rate Assumptions
Notwithstanding the above provisions of this Table A of the Plan and
except as provided below with respect to Sections 6.1(C)(3), 6.1(C)(6) and
6.1(C)(7)(c) and except as otherwise provided in this Table A, effective
as of January 1, 2000 for purposes of Small Benefits under
================================================================================
187 61 XXXXXX FEDERAL SAVINGS BANK
Table A
--------------------------------------------------------------------------------
Section 13.7(G) of the Plan, the "actuarially equivalent value" shall be
determined by using (A) the 1983 Group Annuity Mortality Table based on a
fixed blend of 50% of the male mortality rates and 50% of the female
mortality rates as described in Section 807(d)(5)(A) of the Code (without
regard to any other subparagraph of Code Section 807(d)(5) or such other
mortality table as may be prescribed by the Secretary of the Treasury
("GATT Applicable Mortality Table"), and (B) the GATT Applicable Interest
Rate, as hereafter defined.
"GATT Applicable Interest Rate" shall mean the interest rate on 30-year
Treasury securities for the third full calendar month preceding the
Participant's Termination of Employment, retirement or death, whichever
applies.
For purposes of Sections 6.1(C)(3), 6.1(C)(6) and 6.1(C)(7)(c), the GATT
Applicable Mortality Table and the GATT Applicable Interest Rate shall be
effective only with respect to benefits accrued after the "Final
Implementation Date," as defined below. For benefits accrued prior to the
Final Implementation Date and up to the "Freeze Date," as defined below,
benefits will be based on the "Old Law Benefit," as defined below:
"Final Implementation Date" shall mean January 1, 2000.
"Freeze Date" shall mean December 31, 1999.
"Old Law Benefit" shall mean the Participant's Accrued Benefit under the
terms of the Plan as of the Freeze Date. The Old Law Benefit is determined
for each possible annuity starting date and optional form of benefit based
on the Participant's Accrued Benefit under the terms of the Plan as of the
Freeze Date, and applying Section 6.1(C)(3), 6.1(C)(6) and 6.1(C)(7)(c) as
in effect on December 7, 1994, including the participation requirements
under Code Section 415(b)(5). In determining the Old Law Benefit, the
following shall be disregarded:
(i) any Plan amendment increasing benefits adopted after the Freeze
Date; and
(ii) any cost of living adjustments that become effective after the
Freeze Date.
A Participant's Old Law Benefit will not be increased after the Freeze
Date, however if the limitations of Code Section 415, as set forth in
Section 6.1 of the Plan, as in effect on December 7, 1994, are less than
the limitations that were applied to determine the Participant's Old Law
Benefit on the Freeze Date, then the Participant's Old Law Benefit will be
reduced in accordance with such reduced limitation. If at any date after
the Freeze Date, the Participant's total Plan benefit before the
application of Code Section 415 is less than the Participant's Old Law
Benefit, the Old Law Benefit will be reduced to the Participant's total
Plan benefit.
With reference to Plan benefits determined in accordance with Section 13.7(G)
and the applicable assumptions specified above, after December 31, 1999 and
before the date of adoption of this amended and restated Plan, a Participant
shall be entitled to the greater of: (a) his Accrued Benefit determined under
the Plan in accordance with the applicable Adjustment Factors set forth in
Section
================================================================================
187 62 XXXXXX FEDERAL SAVINGS BANK
Table A
--------------------------------------------------------------------------------
13.7(G) of the Prior Plan as in effect immediately prior to January 1, 2000, or
(b) his Accrued Benefit determined under the Plan as set forth above in this
Table A.
================================================================================
187 63 XXXXXX FEDERAL SAVINGS BANK
