EXHIBIT B-6
SERVICE RECIPROCITY AGREEMENT
This instrument evidences an agreement made and entered into
as of this 20TH day of JUNE, 1986, by and among Kansas City Power
& Light Company (hereinafter called "KCPL"), Kansas Gas and
Electric Company (hereinafter called KG&E"), and Wolf Creek
Nuclear Operating Corporation (hereinafter called "WCNOC"), each
of which shall also be referred to individually as "Corporation"
and collectively, as "Corporations".
WITNESSETH:
WHEREAS, WCNOC is jointly owned by KCPL, KG&E and Kansas
Electric Power Cooperative, Inc., and
WHEREAS, each Corporation has established one or more
pension plans; and
WHEREAS, from time to time the Employees (as hereinafter
defined) of one Corporation may transfer to another Corporation,
with a potential loss or diminution of pension benefits by reason
of the break in service provisions or other limitations set forth
in the documents governing the pension plans established by such
Corporations; and
WHEREAS, the Corporations desire to enter into an agreement
to provide for the recognition of pension service credits earned
by such Employees under Related Plans (as hereinafter defined),
so that pension service may be preserved for such Employees, as
hereinafter provided;
NOW, THEREFORE, in consideration of the mutual undertakings
herein provided, and for other good and valuable consideration,
receipt and sufficiency of which is acknowledged, the
Corporations agreed as follows:
1. DECLARATIONS. Each of the undersigned officers of the
Corporations represents and warrants that he is duly authorized
to enter into this Agreement.
2. PURPOSE. The purpose of this Agreement is (i) to
preserve pension service used in the determination of pension
benefits of Employees who would otherwise receive a reduced
pension or be ineligible for a pension because their years of
service have been divided between or among two or more
Corporations, and (ii) to identify the respective
responsibilities of each Plan for providing pension benefits to
Employees.
3. DEFINITIONS. The following definitions shall apply to
this Agreement unless another meaning is clearly required by the
context; the singular shall include the plural and the masculine,
the feminine as the context may require. In no event will the
Plans be required to incorporate, directly or indirectly the
specific terms or definitions used in this Agreement.
(a) ADMINISTRATOR. The administrator (or its authorized
agent or representative) of each Plan.
(b) AGREEMENT. This Service Reciprocity Agreement.
(c) COMBINED ELIGIBILITY CREDITS. The aggregate total of
an Employee's Primary Eligibility Credits, plus the total of his
Related Eligibility Credits.
(d) COMBINED PENSION CREDITS. The aggregate total of an
Employee's Primary Pension Credits, plus the total of his Related
Pension Credits.
(e) EMPLOYEE. An individual who has service with one or
more of the Corporations.
(f) FUNDING AGREEMENT. The agreement or other document
evidencing the trust or other funding medium of the Plan.
(g) PLAN. A pension plan established and maintained by a
Corporation; provided, however, that pension plans maintained
pursuant to collective bargaining agreements shall not be
included in this definition unless the collective bargaining
agreement expressly so provides.
(h) PRIMARY ELIGIBILITY CREDITS. The total of an
Employee's years of service, or portions thereof, under a Primary
Plan which are counted for purposes of determining his vesting
and eligibility for a pension under the Primary Plan.
(i) PRIMARY PENSION CREDITS. The total of an Employee's
years of service, or portions thereof, under a Primary Plan which
are counted for purposes of determining pension benefit accruals
under the Primary Plan.
(j) PRIMARY PLAN. A Plan with respect to which the
applicable Administrator is determining the application of the
provisions of this Agreement.
(k) QUALIFIED TRANSFER. Transfer of employment by an
Employee from one Corporation to WCNOC or from WCNOC to another
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Corporation, but only if the Employee accepted employment with
the transferee Corporation prior to leaving employment with the
transferor Corporation.
(l) RELATED ELIGIBILITY CREDITS. Years of service, or
portions thereof, credited to an Employee that are counted for
purposes of determining vesting and eligibility for a pension
under a Related Plan. An Employee will be entitled to Related
Eligibility Credits only if such Employee has engaged in a
Qualified Transfer.
(m) RELATED PENSION CREDITS. Years of service, or portions
thereof, credited to an Employee that are counted for purposes of
determining pension benefit accruals under a Related Plan. An
Employee will be entitled to Related Pension Credits only if such
Employee has engaged in a Qualified Transfer.
(n) RELATED PLAN. With respect to one Plan, any other
Plan.
4. OPERATIVE PROVISIONS.
(a) Each Corporation does hereby recognize the Plans
maintained by the other Corporations as Related Plans. The
Corporations agree that they shall participate in a reciprocal
pension service program in accordance with the provisions of this
Agreement.
(b) In any case in which an Employee has Related
Eligibility Credits and applies for a pension, the Administrator
of the Primary Plan shall calculate the Combined Eligibility
Credits of such Employee and, for the purpose of determining his
vesting and eligibility for pension benefits under the Primary
Plan, shall treat his Combined Eligibility Credits as if their
underlying years of service constituted years of service under
the Primary Plan.
(c) The Administrator of the Primary Plan shall rely upon
the provisions of the Primary Plan and related Funding Agreement
(i) in evaluating Related Eligibility Credits to determined
whether the Employee has had a break in service, or (ii) in
evaluating Combined Eligibility Credits to determine whether the
Employee has sufficient service to be eligible for a benefit, or
(iii) in determining whether the Employee's application for
benefits is timely and otherwise adequate, and (iv) in
determining all other questions relating to vesting and
eligibility.
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(d) If (i) the Employee was never a participant in a
Related Plan or (ii) the Employee's most recent period of Plan
participation was in a Related Plan, the amount of pension
benefits, if any, payable to such Employee or his beneficiary by
the Primary Plan shall be limited to the benefit accrued by the
Employee while a Participant in the Primary Plan. The amount of
such pension benefit, if any, payable by the Primary Plan, shall
be determined solely by reference to the Primary Plan and related
Funding Agreement. The Primary Plan shall have no liability or
responsibility to pay any Employee for pension benefits accrued
by such an Employee while he was a participant under a Related
Plan, which amount, if any, shall be paid to him solely by the
Related Plan.
(e) IF the Employee's most recent period of Plan
participation was in the Primary Plan, the amount of pension
benefits, if any, payable to such Employee or his beneficiary by
the Primary Plan, shall be calculated based on his total Combined
Pension Credits. In the event such Employee or his beneficiary
shall be eligible to receive retirement benefits under one or
more Related Plans, the amount of the Employee's or beneficiary's
retirement benefits that would be payable at age 65 as a single
life annuity, as determined under the Primary Plan, shall be
reduced by an amount equal to the retirement benefits payable
under the Related Plans, at age 65 as a single life annuity.
(f) All conditions which ordinarily will apply to the
payment of pension benefits by the Primary Plan shall apply in
like manner to any payment of pension benefits by it pursuant to
this Agreement. Nothing in this Agreement shall require the
Administrator to determine an Employee's vesting, eligibility for
pension benefits or accrued pension benefits other than in
accordance with the express terms and provision of the Primary
Plan, which will effect the provisions of this Agreement and may,
but need not, incorporate this Agreement by reference.
(g) In determining Combined Pension Credits, a Primary Plan
shall not recognize more than one year of service in any one of
its Plan years.
5. AMENDMENT.
(a) All rights of Employees now or hereafter claiming
benefits under this Agreement are subject to and conditioned upon
the right of the Corporations, acting jointly, to amend or revoke
this Agreement.
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(b) Notwithstanding the provisions of the preceding
paragraph, Employees shall not forfeit any service credits earned
by virtue of this Agreement and Employees' accrued benefits shall
not be decreased upon amendment or termination of this Agreement;
nor shall such amendment or termination adversely affect or
prejudice the pensions of those Employees who begin to receive
benefits prior to such amendment or termination.
6. RECORDS AND INFORMATION. Each Corporation agrees to
preserve records of pension service that are counted for purposes
of determining an Employee's eligibility for a pension under the
Plan and other relevant data relating to all its participants,
including those who cease to be covered Employees, as long as may
be necessary to give effect to this Agreement. Each Corporation
agrees to furnish to any other Corporation such data and
information as may be reasonably required by such other
Corporation in order to implement the provisions of this
Agreement. The furnishing of data or information shall be
without charge if it relates to an individual case; but if data
of a general nature is requested, and furnished by and with the
consent of the Related Plan's sponsor (e.g., data for use in
actuarial evaluations or surveys), the cost thereof may be billed
to the Corporation requesting the information.
8. EFFECTIVE DATE. This Agreement shall be effective as
of the effective date of the Retirement Plan For Employees of
Wolf Creek Nuclear Operating Corporation.
IN WITNESS WHEREOF, the Corporations have hereunto set their
hands and seals the day and year first above written.
KANSAS CITY POWER & LIGHT COMPANY
By /s/ Xxxxxx X. Xxxxx
ATTEST:
/s/ X. X. Xxxxxx
Secretary
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WOLF CREEK NUCLEAR OPERATING CORPORATION
By /s/ Xxxxxxx X. Xxxxxx
ATTEST:
/s/ A. Xxxx Xxxxxxxx
Secretary
KANSAS GAS AND ELECTRIC COMPANY
By /s/ Xxxxxx X. Xxxxxx
ATTEST:
/s/ Xxxxxxx X. Xxxxxxx
Secretary
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