Annual Report — [x] Reg. S-K Item 405 — Form 10-K
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 10-K405 Annual Report -- [x] Reg. S-K Item 405 93 540K
2: EX-10.(A) Material Contract 123 261K
3: EX-10.(B) Material Contract 162 358K
4: EX-11 Statement re: Computation of Earnings Per Share 3 24K
5: EX-12 Statement re: Computation of Ratios 1 8K
6: EX-18 Letter re: Change in Accounting Principles 1 8K
7: EX-21 Subsidiaries of the Registrant 9 55K
8: EX-23 Consent of Experts or Counsel 2± 12K
9: EX-27 Financial Data Schedule (Pre-XBRL) 1 10K
10: EX-99.(A) Miscellaneous Exhibit 26 153K
11: EX-99.(B) Miscellaneous Exhibit 32 182K
EXHIBIT 10(b)
GENERAL MOTORS CORPORATION
GENERAL MOTORS RETIREMENT PROGRAM
FOR SALARIED EMPLOYES
(AS AMENDED EFFECTIVE OCTOBER 1, 1990
WITH MODIFICATIONS THROUGH APRIL 1, 1991)
TABLE OF CONTENTS
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PAGE NO.
Index to Program (ii)
Eligibility for Retirement 2
Part A -- Non-Contributory Benefits 5
Article I - Benefit Amounts 5
Article II - Credited Service (Applicable to Benefits Under
Part A and Supplementary Benefits Under Part B) 41
Article III - Retention of Deferred Retirement
Benefit if Separated 56
Part B -- Contributory Benefits 59
Article I - Provisions Relating to Primary Benefits
and Supplementary Benefits 59
Article II - Provisions Relating Specifically to
Primary Benefits 77
Article III - Provisions Relating Specifically to
Supplementary Benefits 83
General Provisions 85
Appendix A - Designated Foundry Jobs 147
Appendix B - Designated Asbestos Jobs 151
Appendix C - Benefit Rates and Formula for
GM Salaried Employes in Puerto Rico 152
(i)
INDEX TO
GENERAL MOTORS RETIREMENT PROGRAM FOR SALARIED EMPLOYES
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PAGE NO.
Eligibility for Retirement 2-4
PART A -- NON-CONTRIBUTORY BENEFITS
Basic Benefit, Applicable to:
Benefits Commencing Prior to October 1, 1990 33-40
Deferred Retirement 56-58
Early Retirement 7-10
Normal Retirement 5, 6
Total and Permanent Disability Retirement 10
Basic Benefit Amounts 5
Benefit Class Codes 6
Credited Service:
Asbestos Service 55, 151
Compensable Disability Leave 51
Duplication 51
ERISA Service 52-55
Flexible Service 46, 86
Foreign Service 50, 51
Foundry Service 52, 147-150
General 41, 42
Hourly Service 50
Layoff 44, 45
Length of Service 46
Loss of 47, 48
Military Leave 43
Noncompensable Disability Leave 44
Prior to October 1, 1950 42
Reinstatement 48, 49
Subsequent to October 1, 1950 43-46
Temporary Employment 51, 86
Deferred Retirement:
Benefits, Determination of 56-57
Effective Date 58
Eligibility 56
Minimum Vesting Standards -- ERISA 52-55
Pre-Retirement Survivor Coverage -- REA:
Benefits, Determination of 20-22
Duration 20
Effective Date 21
Eligibility 20, 22
Spousal Consent 21
(ii)
INDEX - CONT'D.
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Qualified Domestic Relations Order 6, 12, 14, 19,
21, 24, 58, 100
Reemployment 48, 65, 94, 95
Retirement, Automatic for Bona Fide Executive:
Benefits, Determination of 5, 10
Benefits, Payment of 93-98
Eligibility 2
Retirement, Early:
Benefits, Determination of 7-10
Benefits, Payment of 93-98
Benefits, Redetermination of Basic 8
Discharge For Cause 10, 26
Eligibility 3
Reductions for Age 7-9
Retirement, Normal:
Benefits, Determination of 5
Benefits, Payment of 93-98
Eligibility 3
Retirement, Total and Permanent Disability:
Benefits, Determination of 10, 11
Benefits, Payment of 93-98
Disability, Determination of 11
Eligibility 4
Recovery From 12, 48
Special Benefit 31, 32
Supplement, Age-Service 40
Supplement, Early Retirement:
Benefits, Determination of 26-30
Earnings Limitation 29, 30
Eligibility 26
Limitation of 70% of Final Pay 30
Payment of 93-98
Penalty Against 29
Recovery if Overpaid 30
Redetermined if Commenced Prior to October 1, 1990 37
(iii)
INDEX - CONT'D.
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Supplement, Interim:
Benefits, Determination of 28-33
Earnings Limitation 29, 30
Eligibility 27, 28
Employes Retired Prior to October 1, 1990 38
Limitation of 70% of Final Pay 30
Payment of 93-98
Penalty Against 29
Recovery if Overpaid 30
Supplement, Lifetime 40
Surviving Spouse Benefits (Post-Retirement):
After Employe's Retirement 12-19
Automatic Election 12, 13
Cancellation Because of Death or Divorce 12, 13
Effective Date 13
Election to Receive Full Amount of Future Increases 39
Joint and Survivor for Disability -- ERISA 16-19
Joint and Survivor Option 23-26
Reduction of Basic Benefit 14
Special Survivor Option 38, 39
Spousal Consent 17
Upon Marriage or Remarriage 39, 40
Surviving Spouse Benefits (Pre-Retirement):
Before Employe's Retirement 15, 20-22
Cancellation Because of Divorce 21
Effective Date 14, 21
Reduction of Basic Benefit 14, 22
Spousal Consent 21
Temporary Benefits Applicable to:
Benefits Commencing Prior to October 1, 1990 35, 36
Benefits Commencing On or After October 1, 1990 10, 11
Treatment of Certain Employes Under Limited Early Retirement
and Prior Program Provisions 112-114
Vesting (See "Deferred Retirement")
Widow's Benefits (See "Surviving Spouse Benefits")
(iv)
INDEX - CONT'D.
PART B -- CONTRIBUTORY BENEFITS
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Contributions:
Amount of Employe Contributions 66
Annuities 103, 105
Corporation Contributions 101, 102
During Temporary Absence 79, 80
Employes in Puerto Rico 109
Interest Credits 81
Limitation on Years of Employe Contributions 66
Retirement Under Hourly-Rate Pension Plan 82
Separation From Service Prior to Age 60 77, 78
While on Layoff 79, 80
Withdrawal of Contributions 66, 67
Credited Service 59, 60
Death Benefits:
Death of Employe At or After Retirement 73, 74
Death of Employe Prior to Retirement 73
Deferred Retirement:
Eligibility 56, 83
If Reemployed 49
Minimum Vesting Standards -- ERISA 52-55
Retention of Primary Benefits if Separated 77
Retention of Supplementary Benefits if Separated 83
Optional Forms of Retirement Benefits:
Joint and Survivor Option 68
Surviving Spouse Coverage 68-72
Primary Benefits:
Benefits Commencing Prior to October 1, 1990 74-76
Benefits, Determination of 61
Benefits, Payment of 93-98
Continuous Service 90, 91
Contributions 66, 67
Eligibility 59
Retirement Under Electronic Data Systems (EDS)
Pension Plan 83, 126-129
Retirement Under Hourly-Rate Pension Plan 82
Separation From Service Prior to Age 60 77, 78
Qualified Domestic Relations Order 71, 73 74, 100
(v)
INDEX - CONT'D.
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Retirement, Automatic for Bona Fide Executive:
Benefits, Determination of 61
Benefits, Payment of 93-98
Eligibility 2
Retirement, Early:
Benefits, Determination of 62-64
Benefits, Payment of 93-98
Eligibility 3
Reductions for Age 62-64
Retirement, Normal:
Benefits, Determination of 61
Benefits, Payment of 93-98
Eligibility 3
Retirement, Total and Permanent Disability:
Benefits, Determination of 64
Benefits, Payment of 93-98
Disability, Determination of 11
Eligibility 4
Supplementary Benefits:
Benefits Commencing Prior to October 1, 1990 74-76
Benefits, Determination of 62
Benefits, Payment of 93-98
Eligibility 59-61
Retirement Under Electronic Data Systems (EDS)
Pension Plan 84, 126-129
Retirement Under Hourly-Rate Pension Plan 84
Surviving Spouse Benefits:
Before Employe's Retirement 69-72
Benefits, Determination of 69
Cancellation Because of Death or Divorce 70, 71
Duration of Option 71, 72
Effective Date 71
General Provisions 70
Optional Forms of Benefits 67, 68
Treatment of Certain Employes Under Limited Early Retirement
and Prior Program Provisions 112-114
Vesting (See "Deferred Retirement")
Widow's Benefits (See "Surviving Spouse Benefits")
(vi)
INDEX - CONT'D.
GENERAL PROVISIONS
(APPLICABLE TO PART A AND PART B)
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AC Rochester Products Division, Treatment of Certain Employes of 123, 124
Actuarial Value, Definition of 92
Amendment, Provision for 104
Annual Earnings Base 111
Annual Limitation (Internal Revenue Code 415) 134-139
Appeal Procedure for Denied Claims 133
Assignments and Loans 99, 100
Average Monthly Base Salary, Definition of 88, 89
Base Salary, Definition of 88
Commission Employes 85, 110, 111
Continuous Service, Definition of 90, 91
Corporation Contributions 101, 102
Definitions, Program 85-92
Delco Electronics Division, Treatment of Certain Employes of 117
Detroit Diesel Allison Division, Treatment of Certain Employes of 122, 123
Electronic Data Systems (EDS), Treatment of Certain Employes of 126-130
Employes, Definition of 85-87
Federal Income Tax Withholding 100
Federal Social Security Benefit, Definition of 91, 92
Foreign Service, U.S. Employes In 85
Funding Requirements -- ERISA 102
Gender, Definition of 92
General Motors Institute, Treatment of Certain Employes of 116, 117
GM Balance Engineering Operation, Treatment of Certain Employes of 118, 119
GM Building Division/New York, Treatment of Certain Employes of 115, 116
(vii)
INDEX - CONT'D.
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GM Fanuc Robotics Corporation, Treatment of Certain Employes of 118
GM Industrial Cleaning Technology Center,
Treatment of Certain Employes of 120
Government Employment, Treatment of Employes Returning From 131, 132
Health Care Coverages 100
Hughes Aircraft, Treatment of Certain Employes of 130
Hydra-Matic Division (Muncie Plant), Treatment of Certain Employes of 125
Income Protection Plan 96
Life Insurance 100
Marketing Educational Services Activity, Treatment of
Certain Employes of 121
Named Fiduciary -- ERISA 133
Normal Retirement Age, Definition of 92
Overpayments, Repayment of 100
Plan Administrator 133
President's Executive Interchange Program 131
Program, Termination of 104-107
Retirement Payments:
Conversion of Deferred Vested Benefits to Lump Sum 97, 98
Employment Beyond Age 70-1/2 96, 97
Reemployment by Corporation 94, 95
To Persons Other Than Retirees 96, 99
Saginaw Division's Actuator Products Group,
Treatment of Certain Employes of 119
Salaried Employes Transferred to Hourly Rolls 132
Separate Plans for Employes Who Are Employed Outside U.S 75
State Income Tax Withholding 100
Terex Division, Treatment of Certain Employes of 115
Top-Heavy Plan (Internal Revenue Code 416) 139-145
Truck & Bus Group, Treatment of Certain Employes of 120, 121
Workers Compensation, Deductions for Receipt of 99
(viii)
GENERAL MOTORS RETIREMENT PROGRAM
FOR SALARIED EMPLOYES
The General Motors Retirement Program for Salaried Employes provides
non-contributory benefits, as described in Part A, which are applicable to all
salaried employes. The Program also provides benefits, as described in Part B,
which are available to employes who contribute under the Program while
eligible. Provisions applicable to both Part A and Part B, including certain
defined terms used throughout the Program, are included in the General
Provisions which immediately follow Part B.
Except as expressly provided in Sections 7, 8 and 9 of Article I of Part A,
Section 7 of Article I of Part B, and Sections 2 and 7 of General Provisions,
the provisions set forth in this Program are applicable only to employes who
retire with benefits payable commencing on or after September 18, 1990, or who
have credited service on or after October 1, 1990. Employes retired with
benefits payable commencing prior to September 18, 1990 or who lost credited
service prior to October 1, 1990, or eligible surviving spouses, contingent
annuitants and beneficiaries of such employes, shall be entitled to the
benefits, if any, under the Program as it existed immediately prior to the
amendments which became effective as of September 18, 1990.
Notwithstanding the paragraph immediately above, the surviving spouse of any
employe who died after September 17, 1990 and prior to October 1, 1990, who is
otherwise eligible for monthly benefits under this Program, shall be considered
entitled to monthly benefits pursuant to Section 5 of Article I of Part A and,
if applicable, Section 5 of Article I of Part B; and any such employe shall be
considered eligible for credited service under Article II of Part A.
1
Sect. 1
ELIGIBILITY FOR RETIREMENT
Any separation from service, other than by death, will be considered, for
purposes of this Program, as a retirement if the separation occurs:
(a) (1) at or after age 55 and prior to age 60 and the
employe has 10 or more years of credited service, or
(2) prior to age 55 and the employe has 30 or more years
of credited service, and the employe's date of hire
is prior to January 1, 1988,
except that an employe to whom this subsection (a) applies who
is separated in a layoff classification will not be considered
a retirement until he loses credited service,
(b) at age 60 or over, or
(c) prior to age 65 because of total and permanent disability and
the employe is eligible to receive total and permanent
disability benefits under Part A.
SECTION 1. AUTOMATIC RETIREMENT FOR BONA FIDE EXECUTIVE AT AGE 65
An employe shall be retired automatically on the first day of the month
coinciding with or next following the employe's attaining age 65 if that
employe is, for the 2-year period immediately before retirement, employed in a
bona fide executive or high policy-making position and whose annual retirement
benefits attributable to Corporation contributions under this Program shall
equal or exceed $44,000.
Such employe may continue in service beyond automatic retirement age only upon
invitation of the Corporation. This invitation requires action by the
Committee of the Board of Directors having jurisdiction over the activity by
which the employe is employed, or by the Board of Directors if the employe is a
member of the Board of Directors. Such invitation to continue work shall not
be for a period of more than one year at a time.
2
Sect. 2
SECTION 2. NORMAL RETIREMENT AT OR AFTER AGE 65
An employe may retire at or after age 65 with one or more years of
credited service.
SECTION 3. RETIREMENT BETWEEN AGES 60 AND 65
An employe may retire voluntarily at or after age 60 and prior to age
65.
SECTION 4. RETIREMENT PRIOR TO AGE 60
(a) An employe who has 10 or more years of credited service and
who is separated from service at or after age 55 and
prior to age 60 for any reason other than death or total and
permanent disability, shall be entitled to retirement benefits
determined under the provisions of this Program which are
applicable to an employe who retires voluntarily.
(b) An employe who (i) is hired prior to January 1, 1988,
(ii) has 30 or more years of credited service, and (iii) is
separated from service prior to age 55 for a neason
other than death or total and permanent disability, shall be
entitled to retirement benefits determined under the provisions
of this Program which are applicable to an employee who retires
voluntarily.
3
Sect. 5
SECTION 5. RETIREMENT PRIOR TO AGE 65 DUE TO TOTAL
AND PERMANENT DISABILITY
An employe who has 10 or more years of credited service may be retired
prior to age 65 for total and permanent disability. An employe shall
be deemed to be totally and permanently disabled only if (i) he is not
engaged in regular employment or occupation for remuneration or
profit, and (ii) on the basis of medical evidence satisfactory
to the Corporation the employe is found to be wholly and permanently
prevented from engaging in regular employment or occupation with the
Corporation at the location where he last worked for remuneration or
profit as a result of bodily injury or disease, either occupational or
non-occupational in cause, but excluding disabilities resulting from
service in the armed forces of any country unless the employe becomes
totally and permanently disabled after he has accumulated at least 5
years of credited service following his separation from service in the
armed forces.
SECTION 6. RETIREMENT UNDER SECTION 11 OF THE GENERAL PROVISIONS
An employe who has 10 or more years of credited service may be retired
prior to age 62 under provisions set forth in Section 11 of the
General Provisions of this Program.
SECTION 7. EMPLOYES NOT IN ACTIVE SERVICE
The absence of an employe (or former employe) from active service at
the time such employe would be (or would have been) eligible to retire
under the Program shall not preclude such employe's retirement without
return to active service, provided that there has been no loss of
credited service.
4
A, Art. I
PART A -- NON-CONTRIBUTORY BENEFITS
ARTICLE I
BENEFIT AMOUNTS
SECTION 1. RETIREMENT AT OR AFTER AGE 65
(a) Any employe who shall have attained the age of 65, shall have
completed one or more years of credited service as provided
in Article II of this Part A, and shall cease active
service shall be entitled to receive a retirement benefit
under this Part A.
(b) The monthly benefit payable to an employe retired pursuant
to the provisions of Section 1(a) of this Article I with
benefits payable commencing on or after October 1, 1990
shall be a basic benefit for each year of credited service
that the employe had at the first of the month coinciding
with or next following the employe's retirement, determined
by his Benefit Class Code in accordance with (c) below and
based on the month for which payment is being made as set
forth in the table immediately following:
[Download Table]
Basic Benefit Rate
Per Year of Credited Service
For Months Commencing
Retirement
With Benefits Benefit 10-1-90 10-1-91 10-1-92
Payable Class through through and
Commencing Code 9-1-91 9-1-92 After
October 1, 1990 A 28.35 29.50 30.70
and B 28.60 29.75 30.95
After C 28.85 30.00 31.20
D 29.10 30.25 31.45
5
A, Art. I, 1(c)
(c) As set forth below, a Benefit Class Code is established for the
purpose of this Article I for each salaried position on the basis of
the following salaried position levels:
[Download Table]
Benefit
Class
Salaried Position Level Code
1 and 2 A
3 B
4 C
5 and Above D
The Benefit Class Code applicable to an employe is the Benefit Class
Code for the salaried position level held by the employe for the
greatest number of calendar days during the 24 consecutive months
immediately preceding his last day worked.
In the event an employe is transferred to a lower salaried position
level, which results in a lower Benefit Class Code, such employe's
vested retirement benefit, if any, shall not be less than the amount
of his accrued retirement benefit on the date of such transfer to
such lower salaried position level.
(d) The amount of any monthly retirement benefit otherwise payable to the
employe at retirement, or earlier commencement, will be reduced by the
value of any past and future benefits paid or payable to any alternate
payee(s) under a Qualified Domestic Relations Order within the meaning
of I.R.C. Section 414(p).
The actuarial value will be used to determine any amount to be
paid to any such payee(s), if applicable, and the remaining benefit
entitlement of the employe.
6
A, Art. I, 2
SECTION 2. EARLY RETIREMENT
(a) (1) An employe who retires voluntarily after he has attained age 55
but not age 65 and who has 10 or more years of credited service
shall be entitled to receive a retirement benefit under this
Part A.
(2) An employe who (i) was hired prior to January 1, 1988, (ii)
retires voluntarily before he has attained age 55, and (iii)
has 30 or more years of credited service shall be entitled to
receive a retirement benefit under this Part A.
(b) (1) The monthly basic benefit payable to an employe who retires
voluntarily with benefits payable commencing on or after October
1, 1990 shall be the basic benefit set forth in Section 1(b) of
this Article I but adjusted as set forth in (2) below.
(2) (i) For an employe retired (1) pursuant to Section
2(a)(1) above after he has attained age 60, or (2) after he
has attained age 55 but not age 60 and whose combined years
of age and years of credited service (to the nearest
1/12th in each case) at retirement total 85 or more,
or (3) pursuant to Section 2(a)(2) above and, in the case
of either (2) or (3) of this subparagraph, the employe
was hired prior to January 1, 1988, such benefit shall
commence on the first day of the month coinciding with or
next following his attaining age 62 (or, if later, the
first day of the month coinciding with or next following
his first day of absence because of retirement) or, in lieu
thereof, he may elect to receive the benefit commencing on
the first day of any month coinciding with or following his
first day of absence because of retirement and prior to age
62 in an amount
7
A, Art. I, 2(b)(2)(i)
equal to the benefit payable upon attainment of age 62,
multiplied by a percentage as set forth in the following
table:
[Download Table]
Age When Benefit
Commences Percentage*
42 21.0%
43 22.6
44 24.3
45 26.1
46 28.2
47 30.4
48 32.8
49 35.4
50 38.3
51 41.5
52 45.0
53 48.9
54 53.2
55 57.9
56 63.5
57 69.4
58 75.2
59 80.8
60 86.7
61 93.3
62 or Over 100.0
* Prorated for intermediate ages computed on the basis of the
number of complete calendar months by which the employe
is under the age he will attain at his next birthday.
If an employe hired prior to January 1, 1988 (i) with 30 or
more years of credited service retires voluntarily, or (ii)
whose combined years of age and years of credited service
(to the nearest 1/12th in each case) at retirement total 85
or more retires voluntarily with benefits payable commencing
on or after October 1, 1990, the monthly basic benefits
otherwise payable to him after age 62 and one month shall be
redetermined without reduction for commencement prior to age
62.
8
A, Art. I, 2(b)(2)(ii)
(ii) For an employe retired pursuant to Section 2(a)(1) above
after he has attained age 55 but not age 60, and whose
combined years of age and years of credited service at
retirement total less than 85, such benefit shall commence
on the first day of the month coinciding with or next
following his attaining age 65, or, in lieu thereof, he may
elect to receive the benefit commencing on the first day of
any month coinciding with or following his first day of
absence because of retirement, in which case the benefit, if
elected to commence prior to age 65, shall be reduced, as
follows:
[Download Table]
Age When Benefit
Commences Percentage*
55 46.0%
56 49.6
57 53.2
58 56.8
59 60.4
60 64.0
61 71.2
62 78.4
63 85.6
64 92.8
65 100.0
*Prorated for intermediate ages computed on the basis
of the number of complete calendar months by which the
employe is under the age he will attain at his next
birthday.
(iii) The basic benefit payable in any month will not be reduced
below an amount which results in the early retirement
supplement paid to a participant in such month, under
Section 7(a)(1) of this Article I, exceeding the old age
insurance benefits, unreduced on account of age, payable
under Title II of the Social Security Act, as amended.
9
A, Art. I, 2(c)
(c) An employe discharged for cause after such employe is
eligible to retire voluntarily pursuant to Section 2(a) of this
Article I shall be entitled to the benefits provided under
Sections 2(b)(1) and 2(b)(2) of this Article I.
SECTION 3. AUTOMATIC RETIREMENT FOR BONA FIDE EXECUTIVE AT AGE 65
A bona fide executive employe retired on or after his automatic
retirement date and who has one or more years of credited service
shall be entitled to the benefits provided under Section 1 of this
Article I.
SECTION 4. TOTAL AND PERMANENT DISABILITY RETIREMENT
(a) An employe who is totally and permanently disabled
prior to attaining age 65, and has 10 or more years of
credited service, and who retires on or after October 1, 1990,
shall be eligible for a monthly disability retirement benefit as
hereinafter provided:
(i) A monthly basic benefit for each year of credited service
as set forth in Section 1(b) of this Article I and
determined by his Benefit Class Code as set forth in Section
1 (c) of this Article I, and
(ii) A temporary benefit for each year of credited
service, up to 30, as set forth in the table immediately
following:
10
A, Art. I, 4(a)(ii)
[Download Table]
Monthly Temporary
Benefit Amount
Retirement With Per Year of
Benefits Payable Credited
Commencing Service Maximum
$ $
October 1, 1990
through
September 1, 1991 25.00 750.00
October 1, 1991
through
September 1, 1992 27.20 816.00
October 1, 1992
and After 29.30 879.00
The monthly temporary benefit shall be payable until the
earlier of (1) age 62 and one month, or (2) the age at which
the employe becomes, or could have become, eligible
for a Federal Social Security benefit for disability or an
unreduced Federal Social Security benefit for age. At such
age the temporary benefit shall cease to be payable.
(iii) Such benefits shall be payable in accordance with Section 2
of the General Provisions to the disability retiree during
the continuance of total and permanent disability.
11
A, Art. I, 4(b)
(b) Any disability retiree may be required to submit to medical
examination at any time during retirement prior to age 65, but not
more often than semi-annually, to determine whether the retiree is
eligible for continuance of the disability retirement benefit. If
on the basis of such examination it is found that the retiree is no
longer disabled or if the retiree engages in gainful employment,
except for purposes of rehabilitation as determined by the
Corporation, the retiree will be deemed recovered and his
disability retirement benefit will cease. In the event the
disability retiree refuses to submit to medical examination, the
retirement benefit will be discontinued until the retiree is
examined.
(c) Notwithstanding the provisions of Section 13(a) of the General
Provisions, the provisions of this Section 4 shall not be
applicable to employes of any wholly-owned or substantially
wholly-owned subsidiary of the Corporation acquired or formed by
the Corporation on or after March 1, 1984 unless specifically
approved by the General Motors Corporation Board of Directors.
SECTION 5. SURVIVING SPOUSE COVERAGE
(a) In lieu of the monthly basic benefit otherwise payable, an employe
who retires or is retired, or who loses credited service and is
eligible for a deferred retirement benefit pursuant to the
provisions of Article III of this Part A, shall be deemed to have
elected automatically a reduced amount of monthly basic benefit to
provide that, if his designated spouse shall be living at his death
after such election shall have become effective, a survivor benefit
shall be payable to such spouse during the spouse's further
lifetime. In the event that such spouse predeceases such employe,
and a Qualified Domestic Relations Order within the meaning of
I.R.C. Section 414(p) does not provide to the contrary, such
employe may cancel the survivor benefit election only with respect
to his monthly basic retirement benefit and have such benefit
restored to the amount payable without such election, effective the
first day of the third month following the month in which the
Corporation receives evidence satisfactory to the Corporation of
the spouse's death.
12
A, Art. I, 5(a)
The automatic election provided in this subsection (a) shall become
effective on the latest of (i) the commencement date of the
employe's monthly basic benefit, (ii) the first day of the month
coinciding with or next following the employe's attainment of age
55 (except that this item (ii) shall not apply to an employe with
30 or more years of credited service who was hired prior to January
1, 1988), or (iii) the first day of the month coinciding with or
next following the date on which the employe has been married one
year if he is married when the election would otherwise become
effective except for the fact that such marriage has been in effect
less than one year at that date; except that, in the case of a bona
fide executive employe who has reached automatic retirement date
but whose basic benefit has not commenced, the effective date of
any such coverage shall be the later of such automatic retirement
date or the date determined in (iii) of this paragraph and the
basic benefit payable to such employe after the effective date
shall be reduced in accordance with the coverage.
An employe may prevent the automatic election provided in this
subsection (a) during the month prior to the effective date by
executing a specific written rejection of such election, which
includes the written consent of his spouse witnessed by the program
representative or a notary public, on a form approved by the
Corporation and filing it with the Corporation. An employe may
revoke a written rejection of this automatic election, without the
consent of the spouse, at any time prior to commencement of
benefits.
Information regarding this coverage is included in the summary plan
description, which will be provided to each employe. Within a
reasonable period prior to the annuity starting date, each
participant shall be provided a written explanation of: (i) the
terms and conditions of the surviving spouse coverage; (ii) the
participant's right to make and the effect of an election to waive
the surviving spouse coverage; (iii) the rights of the
participant's spouse; and (iv) the right to make and the effect of
revocation of a previous selection to waive the surviving spouse
coverage.
13
A, Art. I, 5(b)
(b) The beneficiary of a survivor benefit election under subsection (a)
of this Section 5 shall be only the person who is the employe's
spouse at such time and who has been his spouse for at least one
year immediately prior to the effective date of such election.
(c) Except as provided in subsections (g) and (h) below, a survivor
benefit election shall be revoked automatically upon the death of
the employe or his designated spouse, or both, prior to the
effective date of the election.
(d) Once the election has become effective it cannot be rescinded,
except as otherwise provided under subsection (a) of this Section
5, without the written consent of the Corporation, but subject to
such consent, the employe's right to rescind the election is
contingent on the written consent of the designated spouse. In the
event the employe becomes divorced from such designated spouse, the
employe may cancel such coverage without consent of the spouse
unless a Qualified Domestic Relations Order within the meaning of
I.R.C. Section 414(p) provides to the contrary.
(e) For an employe who does not prevent the automatic election provided
in this Section 5, the reduced amount of his monthly basic benefit
shall be equal to an amount determined by multiplying the monthly
basic benefit payable to the employe by 95%; except that, in the
case of an employe whose monthly basic benefit is subject to
redetermination at age 62 and one month, the amount of reduction in
his monthly basic benefit for the survivor benefit election before
he attains the age at which his monthly benefit is redetermined
shall be based on the monthly benefit payable to such employe after
his monthly benefit is redetermined. Such percentage shall be (i)
increased by one-half of one percent (1/2%) (up to a maximum of
100%) for each 12 months in excess of five (5) years that the
spouse's age exceeds the employe's age, and (ii) decreased by
one-half of one percent (1/2%) for each 12 months in excess of five
(5) years that the spouse's age is less than the employe's age.
14
A, Art. I, 5(f)
(f) The survivor benefit payable to the surviving spouse of a retired
employe who has the automatic election provided in this Section 5,
and who dies after such election becomes effective, shall be a
monthly benefit for the further lifetime of such surviving spouse
equal to 60% of the reduced amount of such employe's monthly basic
benefit; except that the survivor benefit payable to the surviving
spouse of an employe whose monthly basic benefit is subject to
redetermination at age 62 and one month shall be based on the
monthly basic benefit payable to such employe after his monthly
basic benefit is redetermined.
(g) The death of an otherwise eligible employe who has retired under
Section 4 of this Article 1, occurring on or after his attaining
age 55, but before the first day of the month following the date on
which he dies, shall not disqualify an otherwise eligible surviving
spouse from receiving a benefit hereunder.
(h) The surviving spouse of an employe
(1) who dies (i) on or after attaining age 55 with 10 or more
years of credited service, or (ii) at any age with 30 or
more years of credited service and his date of hire is
prior to January 1, 1988, but before the first day of the
month coinciding with or next following the first day of
absence because of retirement (or, if later, the
commencement date of his monthly basic benefit in the case
of an employe who defers the receipt of his monthly benefit
under Section 2(b)(2) of this Article I), who had not
reached his normal retirement date, and
(2) who, if he had retired at the date of his death, would have
been eligible for the election under subsection (a) of this
Section 5,
15
A, Art. I, 5(h)
shall be entitled to a monthly benefit during such spouse's
further lifetime, terminating with the last monthly payment
before such spouse's death. The monthly benefit payable to
the surviving spouse shall be the amount such spouse would
have been entitled to receive under subsection (f) of this
Section 5, if the employe had retired on the date of his
death with benefits payable under Section 1(a) or 2(a),
whichever is applicable, of this Article I commencing the
first of the following month and had effectively made the
election under subsection (a) of this Section 5; provided,
however, that for the sole purpose of this subsection (h),
the benefits which would have been payable to the employe
by reason of such retirement shall be determined on the
basis of the table set forth in Section 2(b)(2)(i) of this
Article I. The surviving spouse of an employe who had been
separated from service in a layoff classification but who
had not lost credited service at the date of his death
shall be entitled to the benefit payable under this
subsection (h), if otherwise eligible.
(i) Joint and survivor coverage for disability retirements
(1) In lieu of the monthly basic benefit otherwise payable, an
employe who retires pursuant to the provisions of Section 4
of this Article I who is under age 55 and (i) has less than
30 years of credited service, or (ii) has 30 or more years
of credited service and was hired on or after January 1,
1988 shall be deemed to have elected automatically a
reduced amount of monthly basic benefit, up to and
including the month in which he dies or attains age 55,
whichever occurs first, and a monthly survivor's benefit,
beginning on the first day of the month after the retired
employe would have reached age 55 if he dies before the
first day of the month after he would have reached age 55,
shall be payable to his designated spouse during the
further lifetime of the spouse.
16
A, Art. I, 5(i)(2)
(2) This automatic election shall be deemed to have been made
at the time the employe shall apply or shall have applied
for a disability retirement benefit (with the election
being effective the first day of the month for which his
first benefit under the Program is payable).
(3) The automatic election provided in this subsection (i)
shall be applicable only with respect to a spouse to whom
the employe is married on the date of such election and
only if the retired employe and his spouse shall have been
married throughout the one-year period ending on the date
of the retired employe's death.
(4) An employe may prevent the automatic election provided in
this subsection (i) at the time such election would
otherwise be deemed to have been made, as set forth in
paragraph (2) of this subsection (i), by specific written
rejection which includes the written consent of his spouse
witnessed by the program representative, or a notary
public, on a form approved by the Corporation. An employe
may revoke a written rejection of this automatic election,
without the consent of the spouse, at any time prior to
commencement of benefits.
(5) In any event, the election shall automatically be cancelled:
(i) if the employe's disability retirement status
terminates other than by death prior to the first
day of the month after the retired employe attains
age 55, or
(ii) if the retired employe survives on a disability
retirement status until the first day of the month
after he attains age 55, at which time the
coverage described in Section 5(a) through (h) of
this Article I becomes applicable.
17
A, Art. I, 5(i)(6)
(6) The amount of the monthly basic benefit payable to an
employe deemed to have made the election provided hereunder
shall be determined by reducing actuarially the amount of
such benefit for the cost of the survivor benefit payable
in the event of the retired employe's death before the
first of the month following the attainment of age 55. The
actuarial reduction shall be based on the age of the
retired employe and his spouse (the age of each being
determined as the age at his or her birthday nearer the
date on which the benefits commence) and shall reflect the
higher mortality associated with being disabled. Reduction
factors at selected ages for disability survivor coverage
before age 55 are set forth in the following table:
[Download Table]
Age Difference Between
Age of Disabled Employe and Spouse
Employe Spouse Is:
When 10 5 5 10
Benefits Years Years Same Years Years
Commence Younger Younger Age Older Older
-------- ------- ------- --- ----- -----
30 8.6% 8.1% 7.5% 6.7% 5.9%
35 10.4 9.9 9.2 8.3 7.2
40 12.5 11.8 11.0 10.0 8.8
45 14.3 13.5 12.7 11.6 10.3
50 13.9 13.2 12.4 11.4 10.2
51 13.1 12.5 11.7 10.8 9.7
52 10.4 9.9 9.3 8.6 7.7
53 3.4 3.2 3.0 2.8 2.5
54 3.4 3.3 3.1 2.8 2.5
NOTE: Actuarial reduction factors for ages not shown
will be calculated on the same basis as the factors
shown.
18
A, Art. I, 5(i)(7)
(7) The amount of the monthly benefit payable to the surviving
spouse of a retired employe deemed to have made the
election specified hereunder shall be 50% of the amount of
the monthly basic benefit payable to the retired employe
after the reduction provided in paragraph (6) of this
subsection (i).
(8) Anything in the Program to the contrary notwithstanding, if
the designated spouse of a retired employe deemed to have
made the election provided hereunder shall predecease such
retired employe, or they are divorced by a court decree and
a Qualified Domestic Relations Order within the meaning of
I.R.C. Section 414(p) does not provide to the contrary,
such retired employe shall have his monthly basic benefit
restored to the amount payable without such election,
effective the first day of the third month following the
month in which the Corporation receives evidence
satisfactory to the Corporation of the spouse's death or
divorce.
(9) No benefit shall be payable under this subsection (i) for
any month for which benefits are payable under Section
5(a), (h), or (j) of this Article I.
(10) Information regarding this coverage is included in the
summary plan description, which will be provided to each
employe. Within a reasonable period prior to the annuity
starting date, each participant shall be provided a written
explanation of: (i) the terms and conditions of the
surviving spouse coverage; (ii) the participant's right to
make and the effect of an election to waive the surviving
spouse coverage; (iii) the rights of the participant's
spouse; and (iv) the right to make and the effect of a
revocation of a previous selection to waive the surviving
spouse coverage.
19
A, Art. I, 5(j)
(j) Pre-retirement survivor coverage provided under Part A of the
Program to comply with the Retirement Equity Act of 1984
(1) An employe who:
(i) has either 5 or more years of credited service, or 5
years of "service" as provided under Article II,
Section 11, and who is credited with one or more
hours of credited service or "services" accrued on or
after January 1, 1989, or
(ii) loses credited service on or after October 1, 1990
and who is eligible for a deferred retirement benefit
under Article III,
and in either case is not eligible for the regular
surviving spouse coverage provided under subsection (h) of
this Section 5, shall have the pre-retirement survivor
coverage described herein.
Such coverage shall remain in full force and effect until
the date on which the employe or former employe becomes
eligible for the regular surviving spouse coverage provided
under subsection (h) of this Section 5, at which time the
pre-retirement survivor coverage described herein shall
cease to be effective.
In the event the employe or former employe predeceases the
designated spouse while the pre-retirement survivor
coverage provided hereunder is in effect, the designated
spouse shall be eligible, during the further lifetime of
such spouse, for a monthly benefit commencing on the first
of the month following the month in which the employe or
former employe would have become eligible, except for the
fact that he died, to retire at the option of the employe.
20
A, Art. I, 5(j)(1)
The amount of any such monthly survivor benefit shall be
determined by the basic benefit rate in effect for the
employe on the date of death of such employe, or the date
credited service was broken for a former employe.
(2) The survivor coverage provided hereunder for an employe or
former employe shall be effective on the date the employe
or former employe attains 5 years of credited service or
"service" as provided under Article II, Section 11, and
provided that such employe is credited with one hour or
more of credited service or "service" accrued on or after
January 1, 1989.
(3) The survivor coverage provided hereunder shall be effective
with respect to a spouse to whom the employe or former
employe is married, but only if the couple shall have been
married throughout the one-year period ending on the date
of the employe's or former employe's death.
(4) Subsections (j)(2) and (j)(3) notwithstanding, if an employe
or former employe marries or remarries, such coverage shall
be in effect in favor of his spouse upon such marriage or
remarriage, unless, in the case of remarriage, a Qualified
Domestic Relations Order within the meaning of I.R.C.
Section 414(p) requires such coverage to remain in effect
for the former spouse. The effective date of any such
coverage shall be in accordance with item (3) of this
subsection (j).
(5) In the event of divorce, the employe or former employe can
revoke the coverage provided hereunder without spousal
consent, unless a Qualified Domestic Relations Order within
the meaning of I.R.C. Section 414(p) provides to the
contrary.
21
A, Art. I, 5(j)(6)
(6) The coverage provided hereunder shall be canceled
automatically on the date when any employe or former
employe becomes eligible for the regular surviving spouse
coverage provided under the provisions of Article I,
Section 5(h) of the Program.
(7) The monthly benefit amount payable hereunder to any
eligible surviving spouse shall be 50% of the monthly
amount of the basic benefit as determined in Article III
otherwise payable at the (i) date of death to the employe,
or (ii) date credited service broke for a former employe,
after any reduction provided in Article III.
(8) No benefit shall be payable under this subsection (j) for
any month for which benefits are payable under Article I,
Section 5 or Section 6 of Part A of this Program.
(9) Information regarding the coverage provided hereunder is
included in the summary plan description, which will be
provided to each employe covered by the Salaried Retirement
Program, in accordance with The Employee Retirement Income
Security Act (ERISA).
(10) The pre-retirement survivor coverage provided hereunder
will apply to eligible employes and former employes
separated from service:
(a) whose last day worked for the Corporation was on or
after October 1, 1976, and
(b) who have entitlement to but have not commenced
receipt of deferred retirement benefits, and
(c) who are alive as of August 23, 1984.
22
A, Art. I, 6
SECTION 6. JOINT AND SURVIVOR OPTION
(a) In lieu of the monthly basic benefit otherwise payable, an employe
who retires or is retired or who loses credited service and is
eligible for a deferred retirement benefit pursuant to the
provisions of Article III of this Part A, may elect to receive
during his lifetime a reduced amount of monthly basic benefit to
provide that, if the contingent annuitant (who may be any person
designated by the employe) shall be living at his death after such
election shall have become effective, a survivor benefit shall be
payable to such contingent annuitant during the further lifetime of
such contingent annuitant; provided that the employe completes the
election on a form approved by the Corporation and files it with
the Corporation prior to the earlier of:
(1) the time he makes application for a benefit to commence at
or after age 55, or at any age if the employe's date of
hire is prior to January 1, 1988 and he retires with 30 or
more years of credited service, in which case the election
shall become effective on the commencement date of the
employe's monthly basic benefit; or
(2) the month prior to that in which the employe attains age 55
if he attains age 55 while eligible for and receiving a
retirement benefit, in which case the election shall become
effective upon the employe's attainment of age 55.
If married, and the designated contingent annuitant is not the
spouse, the written consent of the spouse on whose behalf the
option otherwise would be in effect, witnessed by the program
representative, or a notary public, on a form approved for this
purpose by the Corporation and filed with the Corporation, will be
required. The written consent of the spouse is limited to a
benefit for the designated alternate beneficiary only.
23
A, Art. I, 6(b)
(b) The death of an otherwise eligible employe who has retired under
Section 4 of this Article I, occurring on or after his attaining
age 55, but before the first day of the month following the date on
which he dies, shall not disqualify an otherwise eligible surviving
spouse from receiving a benefit hereunder.
(c) Except as provided in (b) above, the option shall be revoked
automatically upon the death of the employe or his designated
contingent annuitant, or both, prior to the effective date of the
election.
(d) Once the option has become effective it cannot be rescinded or
changed without the consent of the Corporation, but subject to such
consent, the employe's right is reserved to rescind the election,
except that the written consent of the designated contingent
annuitant is required only if such annuitant is the employe's
spouse. In the event the employe becomes divorced from such
designated spouse, the employe may cancel such option without
consent of the spouse, unless a Qualified Domestic Relations Order
within the meaning of I.R.C. Section 414(p) provides to the
contrary.
(e) The amount of monthly benefit payable to such contingent annuitant
if such contingent annuitant is living at the death of the employe
shall equal any designated percentage, up to a maximum of 100%, of
the employe's reduced monthly basic benefit, except that, in the
case of an employe whose monthly benefit is subject to
redetermination at age 62 and one month, the amount of reduction in
his monthly benefit for the survivor benefit election before he
attains the age at which his monthly benefit is redetermined shall
be based on the monthly benefit payable to such employe after his
monthly benefit is redetermined and the benefit payable to the
contingent annuitant shall be based on the monthly benefit payable
to such employe after his monthly benefit is redetermined.
24
A, Art. I, 6(e)
The amount of monthly benefit shall be determined so that the actuarial value
of the reduced amount of monthly benefit payable to the employe and the
actuarial value of the amount of monthly benefit to be continued to the
designated contingent annuitant is as follows:
[Download Table]
Joint and Survivor Option Rate Table
Full Years
Contingent Annuitant Factors to Convert Normal Form of Retirement to
is Older (+) or Younger(-) Joint and Survivor Option for Indicated Percentage
Than Employe Payable to Contingent Annuitant*
-------------------------- --------------------------------------------------
100% 75% 50%
---- --- ---
+20 95.50 96.00 100.00
+19 95.00 95.50 99.50
+18 94.50 95.00 99.00
+17 94.00 94.50 98.50
+16 93.50 94.00 98.00
+15 93.00 93.50 97.50
+14 92.50 93.00 97.00
+13 92.00 92.50 96.50
+12 91.50 92.00 96.00
+11 91.00 91.50 95.50
+10 90.50 91.00 95.00
+ 9 89.75 90.50 94.50
+ 8 89.00 90.00 94.00
+ 7 88.25 89.50 93.50
+ 6 87.50 89.00 93.00
+ 5 86.75 88.50 92.50
+ 4 86.00 88.00 92.00
+ 3 85.25 87.50 91.50
+ 2 84.50 87.00 91.00
+ 1 83.75 86.50 90.50
0 83.00 86.00 90.00
- 1 82.25 85.50 89.50
- 2 81.50 85.00 89.00
- 3 80.75 84.50 88.50
- 4 80.00 84.00 88.00
- 5 79.25 83.50 87.50
- 6 78.50 83.00 87.00
- 7 77.75 82.50 86.50
- 8 77.00 82.00 86.00
- 9 76.25 81.50 85.50
-10 75.50 81.00 85.00
-11 75.00 80.50 84.50
-12 74.50 80.00 84.00
-13 74.00 79.50 83.50
-14 73.50 79.00 83.00
-15 73.00 78.50 82.50
-16 72.50 78.00 82.00
-17 72.00 77.50 81.50
-18 71.50 77.00 81.00
-19 71.00 76.50 80.50
-20 70.50 76.00 80.00
*Other whole percentage levels may be elected.
25
A, Art. I, 6(e)
Notwithstanding any of the above, where the contingent
annuitant is other than the employe's spouse, the actuarial
value of the benefit payable to the employe as of his actual
retirement date must be more than 50% of the actuarial value
of the benefit payable to the employe and his contingent
annuitant.
SECTION 7. SUPPLEMENTS
(a) An employe who retires with benefits payable under Section 2 of
this Article I (other than an employe (i) discharged for cause,
(ii) hired on or after January 1, 1988, or (iii) referred to in
Section 2(b)(2)(ii) of this Article I who retires voluntarily after
he has attained age 55 but not age 60 and whose combined years of
age and years of credited service at retirement total less than 85)
or who retires with benefits payable under Section 4 of this
Article I, and who files his application for retirement within five
years of the last day he worked for the Corporation and who agrees
to restrict his participation in the work force as provided in (e)
below will receive, in addition to his retirement benefits, certain
supplements as set forth below:
(1) If the employe retires under Section 2 or 4 of this Article
I with 30 or more years of credited service at the date of
his retirement and his date of hire was prior to January 1,
1988, he shall be entitled to a monthly early retirement
supplement until age 62 and one month in an amount which
when added to his monthly retirement benefit under this
Part A and any supplementary benefits under Part B, prior
to reduction for survivor coverage, will equal the amount
of total monthly benefit applicable to him as provided in
the table set forth below, subject to subsequent provisions
of this Section 7:
26
A, Art. I, 7(a)(1)
[Download Table]
Total Monthly Benefit Rate For Determining
Monthly Early Retirement Supplement
For Retirements With
30 or More Years of Credited Service
Retirement
With Benefits 10-1-90 10-1-91 10-1-92
Payable through through and
Commencing 9-1-91 9-1-92 After
-------------- ------- ------- -------
$ $ $
October 1, 1990
and
After 1,600 1,700 1,800
(2) If the employe retires voluntarily after attaining age 55 with less
than 30 years of credited service, he shall be entitled to a
monthly interim supplement until he attains age 62 and one month
equal to the amount applicable to him as provided immediately below
for each year of credited service that he had at the date of his
retirement, subject to subsections (b), (e), and (g) of this
Section 7:
[Download Table]
Monthly Amount* and Effective Date of Interim Supplement
Payable Prior to Age 62 and One Month
for Each Year of Credited Service
Retired With Benefits Payable Commencing
On or After October 1, 1990
Age at
Retirement 10-1-90 10-1-91 10-1-92
---------- ------- ------- -------
$ $ $
55 11.00 12.00 12.90
56 12.95 14.10 15.20
57 15.70 17.05 18.40
58 18.40 20.00 21.55
59 20.55 22.40 24.10
60 23.75 25.85 27.85
61 23.75 25.85 27.85
* Prorated for intermediate ages computed on the basis of the number
of complete calendar months by which the employe is under the age
he will attain at his next birthday.
27
A, Art. I, 7(a)(2)
This provision shall not apply to an employe who has
attained age 55 but not age 60 and whose combined years of
age and years of credited service (to the nearest 1/12th in
each case) at retirement total less than 85.
(3) Any interim supplement described above shall be reduced by
any supplementary benefits payable under Part B of this
Program prior to reduction for survivor coverage.
(b) The early retirement supplement under subsection (a)(1) of this
Section 7 for an employe who retires voluntarily shall be
calculated assuming that his basic benefit commences immediately
after retirement, and such early retirement supplement and the
interim supplement under subsection (a)(2) of this Section 7 shall
be reduced for any month prior to age 62 and one month for which he
becomes or could have become eligible for a Federal Social Security
benefit, by an amount equal to the amount of the temporary benefit
to which he would have been entitled if he had retired under
Section 4 of this Article I.
(c) The early retirement supplement under subsection (a)(1) of this
Section 7 for an employe who retires under Section 4 of this
Article I shall be calculated on the assumption that he will
receive a temporary benefit until age 62 and one month even if such
temporary benefit is not received by the employe until such age
because of his earlier entitlement to Social Security benefits.
(d) The early retirement supplement under subsection (a)(1) of this
Section 7 for an employe who does not prevent the automatic
election of the surviving spouse coverage provided under Section
5(a) of this Article I shall be calculated on the basis of the
monthly retirement benefit he would have received if he had
prevented such automatic election.
28
A, Art. I, 7(e)
(e) Any of the supplements to which an employe is entitled shall
commence on the first day of the month coinciding with or next
following the employe's first day of absence because of retirement
and shall be payable monthly thereafter until and including the
first day of the month in which he dies, or his retirement benefit
ceases for any other reason, or he is reemployed by the
Corporation, or he attains age 62 and one month, whichever occurs
first, provided however, that if an employe entitled to receive a
supplement has earnings after retirement in excess of the following
annual earnings limitation in any calendar year before he attains
age 62 and one month, such earnings being defined for this purpose
as the type counted for the earnings test under the Federal Social
Security Act or the corresponding type in any future Federal
legislation amending, superseding, supplementing or incorporating
the Federal Social Security Act, a penalty equal to double the
amount by which such earnings exceed the amount permitted shall be
charged against each succeeding monthly supplement which he would
otherwise be entitled to receive until the full amount of such
penalty is satisfied, it being understood that penalties and
charges herein shall be cumulative if appropriate:
[Download Table]
Calendar Annual Earnings Limitation
Year Amount
-------- --------------------------
$
1990 10,000
1991 15,000
1992 15,000
1993 15,000
29
A, Art. I, 7(e)
An employe receiving a monthly early retirement supplement or
interim supplement may be required to certify whether his earnings
have been in excess of the permitted amount and to furnish
verification of the amount of his earnings. Unless repaid by the
employe in a lump sum, any overpayments of a supplement made after
an employe incurred a penalty because of excess earnings in
accordance with the preceding paragraph shall be deducted from
future monthly benefits payable to him under this Part A and under
the supplementary benefit provisions of Part B.
The annual earnings limitation provisions of this subsection (e)
shall not be applicable to any retirement, defined in Section 11 of
the General Provisions, with benefits payable commencing on or
after October 1, 1990 and prior to September 14, 1993.
(f) If a retired employe (i) has been receiving disability retirement
benefits under this Part A and has been receiving a supplement and
on the basis of medical evidence satisfactory to the Corporation it
is found that he is no longer totally and permanently disabled and
his credited service is reinstated, or (ii) is reemployed by the
Corporation, he shall not thereby forfeit any right he may
thereafter have to receive a supplement if he thereafter retires
under this Program.
(g) If the total of the employe's monthly benefits under this Part A
and under the supplementary benefit provisions of Part B and his
monthly early retirement supplement or interim supplement as
computed above would exceed 70% of his final base salary, his
monthly supplement shall be reduced to the extent required so that
such monthly benefits plus his supplement will equal 70% of his
final base salary. For this purpose, an employe's "final base
salary" shall mean his highest monthly base salary rate during the
last three months preceding his last day of work prior to
retirement.
30
A, Art. I, 8
SECTION 8. SPECIAL BENEFIT
(a) A retired employe or a surviving spouse (i) age 65 or older, or
(ii) under age 65 and enrolled in the voluntary "Medicare" coverage
that is available under the Federal Social Security Act by making
contributions (in either case excluding the spouse of a former
employe who received a deferred non-contributory retirement benefit
under the Program), who is receiving a monthly benefit under
Article I of this Part A which commenced prior to October 1, 1979,
subject to (d) below, shall receive a monthly special benefit equal
to:
(1) the lesser of $28.00 or the generally applicable "Medicare"
Part B premium for months commencing on or after January 1,
1990,
(2) the lesser of $31.00 or the generally applicable "Medicare"
Part B premium for months commencing on or after January 1,
1991,
(3) the lesser of $34.00 or the generally applicable "Medicare"
Part B premium for months commencing on or after January 1,
1992, and
(4) the lesser of $38.50 or the generally applicable "Medicare"
Part B premium for months commencing on or after January 1,
1993.
(b) In no event shall such payment commence prior to the first day of
the month coinciding with or next following the earlier of (i) the
month during which age 65 is attained, or (ii) receipt by the
Corporation of application on a form provided for this purpose from
an otherwise eligible individual under age 65; except that, with
respect to an otherwise eligible individual under age 65, payment
shall commence with the first month of such enrollment, but in no
event prior to October 1, 1979.
31
A, Art. I, 8(c)
(c) Not more than one such payment shall be made to any individual for
any one month. No such payment shall be made to any individual
under age 65 for any month such individual is not enrolled for such
voluntary "Medicare" coverage. No such payment shall be made under
this Program to any individual who retires with benefits payable
commencing on or after October 1, 1979.
(d) Effective January 1, 1991, the special benefit payable to an
individual who is not enrolled in "Medicare" Part B as of October
1, 1990, but who (i) was receiving a special benefit, and (ii)
first became entitled to such benefit prior to March 1, 1988, will
be limited to $28.00 per month. Such an individual will become
entitled to the schedule of payments in subsection (a) above, upon
proof of enrollment in "Medicare" Part B. Thereafter, continued
receipt of a special benefit will be contingent on maintenance of
"Medicare" Part B enrollment.
(e) For an individual enrolled in "Medicare" Part B as of March 1,
1988, or who first becomes eligible for "Medicare" Part B on or
after March 1, 1988, receipt of a special benefit on and after
January 1, 1991 is contingent upon continued enrollment in
"Medicare" Part B.
32
A, Art. I, 9
SECTION 9. BENEFITS FOR EMPLOYES WHO RETIRED WITH BENEFITS
PAYABLE COMMENCING PRIOR TO OCTOBER 1, 1990
An employe who retired with benefits payable commencing prior to October 1,
1990, or the eligible surviving spouse or contingent annuitant of such an
employee, shall be entitled to the benefits, if any, under the Program as it
existed immediately prior to such date, except that:
(a) (1) Basic benefits payable under this Part A to such retired employes,
or the benefits payable to surviving spouses or contingent
annuitants in lieu of or related to such basic benefits, shall be
increased to the extent necessary to provide monthly benefits equal
to the benefits which would have been payable had the basic
benefits payable to the employe at and after age 65 been based on
the following table:
[Download Table]
Basic Benefit Rate
Per Year of Credited Service
For Months Commencing
Retirement ----------------------------
With Benefits Benefit 10-1-90
Payable Class and
Commencing Code After
----------------------------------------------------------------------------
$
Prior to
October 1, 1979 N/A 20.00*
October 1, 1979 A 21.25
through B 21.50
September 1, 1980 C 21.75
D 22.00
October 1, 1980 A 21.35
through B 21.60
September 1, 1981 C 21.85
D 22.10
October 1, 1981 A 21.45
through B 21.70
September 1, 1984 C 21.95
D 22.20
* Including, if applicable, $1.00 waived for election of special survivor
coverage.
(CONTINUED ON NEXT PAGE)
33
A, Art. I, 9(a)(1)
(CONTINUED FROM PRECEDING PAGE)
[Download Table]
Basic Benefit Rate
Per Year of Credited Service
For Months Commencing
Retirement ----------------------------
With Benefits Benefit 10-1-90
Payable Class and
Commencing Code After
-----------------------------------------------------------
$
October 1, 1984 A 24.10
through B 24.35
September 1, 1985 C 24.60
D 24.85
October 1, 1985 A 24.20
through B 24.45
September 1, 1986 C 24.70
D 24.95
October 1, 1986 A 24.30
through B 24.55
September 1, 1987 C 24.80
D 25.05
October 1, 1987 A 27.30
through B 27.55
September 1, 1988 C 27.80
D 28.05
October 1, 1988 A 27.40
through B 27.65
September 1, 1989 C 27.90
D 28.15
October 1, 1989 A 27.50
and prior to B 27.75
October 1, 1990 C 28.00
D 28.25
(2) If an employee whose monthly basic benefit under this Part A
otherwise would have been redetermined at age 62 attains
age 62 on or after March 1, 1982, such redetermination shall
be effective at age 62 and one month.
34
A, Art. I, 9(b)
(b) Any temporary benefits payable to such retired employes until age 65
if retired with benefits payable commencing before June 1, 1974, or age
62 if retired with benefits payable commencing on or after June 1,
1974, or age 62 and one month for a retired employe who attains age 62
on or after March 1, 1982, or, in any case, if earlier, until the age
at which the employe becomes or could have become eligible for a
Federal Social Security benefit for disability or an unreduced Federal
Social Security benefit for age shall be increased to the extent
necessary to provide monthly temporary benefits equal to the temporary
benefits which would have been payable had the temporary benefits
payable to the employe prior to such age 65 (or age 62 or age 62 and
one month) or earlier age been based on the following:
[Download Table]
Monthly Temporary Benefit Amount*
Retires With ------------------------------------
Benefits Payable Per Year of
Commencing Credited Service Maximum
-----------------------------------------------------------------
$ $
Prior to
September 1, 1964 11.50 300.00
September 1, 1964
and prior to
October 1, 1967 12.00 300.00
October 1, 1967
and prior to
October 1, 1970 12.25 306.25
October 1, 1970
and prior to
June 1, 1974 12.75 318.75
June 1, 1974
and prior to
October 1, 1976 13.75 343.75
October 1, 1976
and prior to
October 1, 1978 14.25 356.25
* Benefit payable for months commencing October 1, 1990.
(CONTINUED ON NEXT PAGE)
35
A, Art. I, 9(b)
(CONTINUED FROM PRECEDING PAGE)
[Download Table]
Monthly Temporary Benefit Amount*
Retires With ----------------------------------
Benefits Payable Per Year of
Commencing Credited Service Maximum
------------------------------------------------------------------
$ $
October 1, 1978
and prior to
October 1, 1979 15.25 381.25
October 1, 1979
and prior to
October 1, 1980 16.25 406.25
October 1, 1980
and prior to
October 1, 1981 17.25 431.25
October 1, 1981
and prior to
January 1, 1983 18.25 456.25
January 1, 1983
and prior to
October 1, 19a5 18.25 547.50
October 1, 1985
and prior to
October 1, 1986 19.25 577.50
October 1, 1986
and prior to
October 1, 1987 20.25 607.50
October 1, 1987
and prior to
October 1, 1988 20.45 613.50
October 1, 1988
and prior to
October 1, 1989 21.55 646.50
October 1, 1989
and prior to
October 1, 1990 22.65 679.50
* Benefit payable for months commencing October 1, 1990.
36
A, Art. I, 9(c)(1)
(c) (1) An employe who retired under Article I of this Program with 30 or
more years of credited service who is eligible to receive a monthly
supplement which commenced prior to October 1, 1990 shall receive
an increase to such monthly supplement as follows:
[Download Table]
Amount of Increase*
--------------------------------
Payable to Payable Between
Effective Date Age 62 Ages 62 and
of Increase and One Month One Month - 64
---------------------------------------------------
$ $
October 1, 1990 75.00 37.50
* This increase will not result in a total monthly
benefit of less than $1,100 for months prior to age
62 and one month, or $550 for months between ages 62
and one month and 64.
The amount of any monthly supplement payable to an employe who
retired under the Program with benefits commencing prior to October
1, 1990 shall be redetermined to the amount of supplement which
would have been payable had the applicable benefit rates set forth
in this Section 9 and referred to in Section 7 of Article I of Part
B been in effect when such employe's benefits commenced. If such
retired employe is entitled as of October 1, 1990 to receive Social
Security benefits, and if he became so entitled before October 1,
1990, the increase in the rate of temporary benefit provided in
subsection (b) of this Section 9 shall not be considered in
redetermining his supplement until he ceases to be so entitled.
37
A, Art. I, 9(c)(2)
(2) An employe who retired voluntarily under Article I of this Program
after attaining age 55 with less than 30 years of credited service
who is eligible to receive a monthly interim supplement which
commenced prior to October 1, 1990 shall receive, for months
commencing on and after October 1, 1990, an increase to such
interim supplement, as follows:
[Download Table]
Age at Monthly Increase*
Retirement Per Year of Credited Service
------------------------------------------------
55 0.55
56 0.65
57 0.80
58 0.95
59 1.05
60 1.20
61 1.20
* Prorated for intermediate ages computed on the basis of
the number of complete calendar months by which the
employe is under the age he will attain at his next birthday.
(d) The survivor benefit payable to the surviving spouse of a
retired employe who has completed an election of a special
survivor option and who dies after such election becomes effective,
shall be a monthly benefit for the lifetime of such surviving
spouse equal to:
(1) $7.00 for each year of credited service that such retired
employe had at the date of his retirement with respect to
benefits payable for any month commencing October 1, 1990
through September 1, 1991,
38
A, Art. I, 9(d)(2)
(2) $8.00 for each year of credited service that such retired
employe had at the date of his retirement with respect to
benefits payable for any month commencing October 1, 1991
through September 1, 1992, and
(3) $9.00 for each year of credited service that such retired
employe had at the date of his retirement with respect to
benefits payable for any month commencing on or after October
1, 1992.
(e) An employe who retired under the Program or who is eligible for a
deferred retirement benefit pursuant to the provisions of Part A of
the Program, and who has surviving spouse coverage in effect but
whose designated spouse predeceases him, may have his monthly basic
benefit restored to the amount payable without such coverage,
effective the first day of the third month following the month in
which the Corporation receives evidence satisfactory to the
Corporation of the spouse's death.
(f) An employe who retired under the Program and who has a joint and
survivor option, as provided under this Article I, Section 6, in
effect with respect to his Part A benefit but whose designated
contingent annuitant is deceased shall receive the increase in
benefits which otherwise would have been payable to him under this
Section 9 as if he had not elected such option.
(g) An employe who retired or retires under Article I of the Program
with benefits payable commencing on or after January 1, 1962, who
marries, or remarries, subsequent to the earliest date survivor
benefit coverage was in effect, or was not in effect on such date
solely because the retired employe was not then married, may elect,
or re-elect, survivor benefit coverage under Part A. Any such
coverage, and the benefits thereunder, shall be provided under the
terms and conditions of the Program in effect at the time of the
employe's
39
A, Art. I, 9(g)
retirement. Such coverage shall become effective on the first day
of the third month following the month in which the Corporation
receives a completed election form, but in no event before the
first day of the month following the month in which the retired
employe has been married one year.
No election provided hereunder shall become effective under any
circumstance for any retired employe whose completed election form
is received by the Corporation after the first day of the month in
which the retired employe has been married one year.
This subsection (g) also shall be applicable to an employe retired
with benefits payable commencing on or after October 1, 1990.
(h) Monthly benefits payable under this Section 9 on and after October
1, 1990 shall not be limited by the 70% benefit limitation in
Section 7(g) of this Article I.
(i) The monthly amount of any lifetime supplement payable to an
employe retired with benefits payable commencing on or after March
1, 1974 with 30 or more years of credited service shall not exceed
$35.00 when added to the Part B Supplementary benefit payable at
retirement without reduction for survivor coverage.
(j) The monthly amount of any age-service supplement payable to an
employe retired with benefits payable commencing on or after March
1, 1974 with less than 30 years of credited service, but after
attaining age 62 and one month, shall be $1.00 per month per year
of credited service, reduced by 1/36th for each complete calendar
month that the employe was under age 65 at date of retirement and
further reduced by any Part B Supplementary benefit payable at
retirement without reduction for survivor coverage.
40
A, Art. II
ARTICLE II
CREDITED SERVICE
(APPLICABLE TO BENEFITS UNDER PART A
AND SUPPLEMENTARY BENEFITS UNDER PART B)
SECTION 1. GENERAL
(a) For purposes of determining "credited service" as used in this
Program, the word "employment" shall include
(1) all employment prior to an employe's retirement, or termination
of employment, whichever is earlier, whether on salary or
hourly-rate, with the Corporation or its directly or indirectly
wholly-owned or substantially wholly-owned domestic or foreign
subsidiaries in accordance with I.R.C. Section 414(b), (c),
(m), (n), and (o), as well as service with any company
(including service with any directly or indirectly wholly-owned
or substantially wholly-owned subsidiary of such company) of
which substantially all the assets have been acquired by the
Corporation or its subsidiaries, excluding any directly or
indirectly wholly-owned or substantially wholly-owned
subsidiary of the Corporation acquired or formed by the
Corporation on or after March 1, 1984, provided that no
employment prior to date of acquisition with any such directly
or indirectly wholly-owned or substantially wholly-owned
domestic or foreign subsidiary acquired after October 1, 1950
or with any company (including employment with any directly or
indirectly wholly-owned or substantially wholly-owned
subsidiary of such company) of which substantially all the
assets are acquired by the Corporation or its subsidiaries after
October 1, 1950 shall be taken into account for purposes of
determining credited service; and
41
A, Art. II, 1(a)(2)
(2) any period of employment with a company in which General
Motors Corporation held, directly or indirectly, at least 25%
of the common stock, if such employment was immediately
followed by employment commencing prior to October 1, 1950 with
General Motors Corporation or its directly or indirectly
wholly-owned or substantially wholly-owned domestic or foreign
subsidiaries provided the inclusion of such period of
employment is authorized under such rules as may be established
in conformity with the objectives of the Program by the Named
Fiduciary or its delegate.
(b) For the purposes of this Program, credited service is generally
considered automatically broken by a quit or discharge; provided
that if, after a quit or discharge, an employe has been or is
rehired, his credited service shall be reinstated as provided in
Section 4(a) of this Article II. However, the period during which
such employe is absent from service because of such quit or
discharge shall not be included in the calculation of the amount of
credited service, unless the employe was or is absent from service
at the request of, or with the approval of, the Corporation for
the purpose of employment with a company affiliated with the
Corporation and, upon termination of such employment with such
affiliate, returned or returns to the service of the Corporation as
his first employment following his employment with the affiliate.
(c) Credited service (and years of credited service) as used in this
Program shall be computed to the nearest full month and shall be
the sum of the number of years (and months thereof) of (i) credited
service prior to October 1, 1950, and (ii) credited service on or
after October 1, 1950. Provisions regarding credited service prior
to October 1, 1950, are set forth in the General Motors Retirement
Program for Salaried Employes as amended through October 1, 1984.
42
A, Art. II, 2
SECTION 2. CREDITED SERVICE SUBSEQUENT TO OCTOBER 1, 1950
(a) Credited service shall consist of the number of years (to the
nearest 1/12 thereof) represented by:
(1) All periods of regular employment subsequent to October 1,
1950, for which an employe receives compensation. No
credited service shall accrue hereunder for an employe
classified as a Flexible Service employe except as otherwise
provided in subsection (e) of this Section 2.
(2) All periods of absence prior to (i) an employe's retirement, or
(ii) termination of employment, whichever is earlier, under
a compensable Disability Leave of Absence, as defined in
Section 8 of this Article II.
(3) All periods of absence prior to (i) an employe's retirement, or
(ii) termination of employment, whichever is earlier,
under an approved Military Leave of Absence provided the
employe is reemployed in accordance with the terms of such
leave of absence. However, such credited service shall not
exceed four years, or such longer period during which he has
reemployment rights pursuant to any Federal law, and provided,
further, that the employe is reemployed in accordance with the
terms of such leave of absence or, if reemployed by the
Corporation at a location other than the location from which
the leave was granted, within 90 days from the date of his
discharge from the armed forces.
43
A, Art. II, 2(a)(4)
(4) All periods of absence during any calendar year after December
31, 1967 and prior to an employe's retirement under a layoff
or an approved noncompensable Disability Leave of Absence
provided the employe receives compensation for periods totaling
at least one month during such calendar year, and provided
further, that if such layoff or Disability Leave of Absence
commences in a calendar year after December 31, 1969 and
continues after that year, credited service shall be granted
for each calendar month of such absence, not to exceed eleven
months of credit for all such absence related to receipt of
such compensation from the Corporation in the first year. For
the purposes of this subparagraph (a)(4) only, an employe who
is laid off and whose first day of absence due to such layoff
is the first regularly scheduled work day in January shall be
deemed to have been laid off on December 31 of the year in
which he last worked. An employe who returns to work on or
after October 1, 1979 and receives pay for a period of less
than one month and who thereafter returns to such layoff or
Disability Leave of Absence, shall not be disqualified, solely
because of the receipt of such pay, from receiving any such
credit for which he otherwise would be eligible hereunder.
(b) An employe who is at work on or after March 1, 1982, and
(1) is laid off on or after March 1, 1982, and
(2) has 10 or more years of credited service at the time such layoff
commences, and
(3) while on such layoff receives the maximum eleven months of
credited service for absence due to layoff or Disability Leave
of Absence in accordance with subparagraph (a)(4) above, and
44
A, Art. II, 2(b)(4)
(4) thereafter continues to be absent due to such layoff,
shall be granted credited service for each additional month of such
absence, not to exceed a maximum of twelve months of credit.
(c) For an employe who has at least five years of credited service (1)
as of December 31, 1967 and who was absent under a layoff during
any calendar year after December 31, 1955 and prior to January 1,
1963, or (2) as of December 31, 1973 and who was absent under a
layoff during any calendar year after December 31, 1950 and prior to
January 1, 1956, or (3) as of October 1, 1979 and who was absent
under a layoff during any calendar year after December 31, 1962 and
prior to January 1, 1968, or (4) as of October 1, 1984 and who was
absent under a layoff during any calendar month after December 31,
1978 and prior to January 1, 1984, credited service shall be
granted for each calendar month of such absence, not previously
credited under this Section 2 during which such employe remained on
layoff status and retained credited service, the amount of credited
service to be granted per year being the months of such absence in
such year multiplied by a percentage as set forth in the following
table:
[Download Table]
Employe's Credited Service on
December 31, 1967 in the Case of (1) Above
or December 31, 1973 in the Case of (2) Above
or October 1, 1979 in the Case of (3) Above
or October 1, 1984 in the Case of (4) Above %
--------------------------------------------------------
20 years or more 100
15 years but less than 20 years 75
10 years but less than 15 years 50
5 years but less than 10 years 25
provided that the employe makes proper application.
45
A, Art. II, 2(d)
(d) All periods on an approved leave of absence as provided for in
certain collective bargaining agreements pursuant to policy and
rules as may be established by the Corporation.
(e) All hours worked and compensated while classified as a Flexible
Service employe on and after August 7, 1984, except that no
credited service will accrue prior to the later of:
(1) one year of employment, or
(2) attainment of age 21 (age 25 prior to October 1, 1985).
Credited service during Flexible Service employment will be
based on compensated hours worked and will accumulate only if
the employe works 750 or more hours during the calendar year,
as follows:
[Download Table]
Equivalent Months
Compensated Hours of Credited Service
---------------------------------------------------
Less than 750 None
750 but less than 895 6
895 but less than 1040 7
1040 but less than 1185 8
1185 but less than 1330 9
1330 but less than 1475 10
1475 but less than 1615 11
1615 or more 12
(f) Notwithstanding any other section of this Article II, in the case
of an employe who shall retire on or after October 1, 1990, the
employe's credited service for the period before January 1, 1966
shall not be less than the employe's length of service as of
December 31, 1965.
46
A, Art. II, 3
SECTION 3. LOSS OF CREDITED SERVICE
Unless otherwise provided by the Named Fiduciary or its delegate,
credited service will be broken, and all prior credited service will
be lost, notwithstanding the provisions of Sections 1 and 2 above, if
the employe:
(a) Quits,
(b) Is discharged for cause,
(c) Is paid a separation allowance because of his refusal to accept a
salaried position or an hourly-rate job in accordance with
Corporation policy,
(d) Is laid off or is given an approved leave of absence (excluding
Military and compensable Disability Leave of Absence) if the period
of continuous absence is one year or more and is equal to or in
excess of the employe's credited service prior to such layoff or
approved leave of absence,
(e) Fails to report for work in accordance with the terms of a Military
or compensable Disability Leave of Absence,
(f) Is given a final release or a mutually satisfactory release, or
(g) Is separated under any classification other than those specifically
covered above.
47
A, Art. II, 3
For the purposes of this Section 3, credited service will not be
broken and prior credited service will not be lost as a result of any
separation if the period following immediately thereafter is a period
during which compensation by the Corporation or its directly or
indirectly wholly-owned or substantially wholly-owned domestic or
foreign subsidiaries was on a commission basis and such period is
followed immediately thereafter by salaried or hourly-rate employment.
However, except as provided in Section 10 of General Provisions, any
such period during which compensation was on a commission basis shall
not be included in the calculation of the amount of credited service.
SECTION 4. REINSTATEMENT OF CREDITED SERVICE
(a) Any employe who loses credited service under the provisions of
Section 3 immediately above and is later reemployed by the
Corporation shall have such credited service reinstated upon making
proper application.
(b) Any employe retired under the total and permanent disability
provisions of this Program who subsequently is deemed recovered and
whose disability benefit then ceases will then have reinstated the
credited service the employe had at the time of disability
retirement, provided the employe is reemployed, or is granted a
leave of absence or otherwise given the status of an inactive
employe, by the Corporation.
(c) Any employe retired under the provisions of this Program, except
total and permanent disability retirement, who subsequently is
reemployed by the Corporation or one of its directly or indirectly
wholly-owned or substantially wholly-owned subsidiaries will then
have reinstated the credited service the employe had at the time of
retirement.
48
A, Art. II, 4(d)
(d) If a former employe who is entitled to a deferred retirement benefit
under Part A and, if applicable, a deferred supplementary
retirement benefit under Part B (or a deferred pension under the
"General Motors Hourly-Rate Employes Pension Plan") is reemployed
by the Corporation prior to the commencement of such deferred
retirement benefits, such employe shall, upon making proper
application, have reinstated, in lieu of such deferred retirement
benefits, the credited service lost at the time the employe became
entitled to such deferred retirement benefits; provided that if an
employe with 10 or more years of credited service
(1) is reemployed by, and works for, the Corporation within 36
months of the date he lost credited service under Section
3 of this Article II, and
(2) becomes disabled while employed by the Corporation for less
than 5 months, and such disability is continuous for a period
of 5 months during which he makes proper application and
submits medical evidence satisfactory to the Corporation that
he is totally and permanently disabled,
he will be deemed eligible for a disability retirement benefit
under Section 4 of Article I of this Part A and such benefit
will be payable pursuant to Section 2 of the General
Provisions of this Program, as though he had been an employe
throughout such disability period.
49
A, Art. II, 5
SECTION 5. CREDITED SERVICE OF EMPLOYES FORMERLY ON THE HOURLY ROLL
Any employe transferred from the hourly roll to the salary roll, or
hired as a salaried employe following the loss of credited service as
an hourly-rate employe, shall, upon making proper application, receive
credit to the nearest 1/10th of a year for his credited service as
recognized under the "General Motors Hourly-Rate Employes Pension
Plan". Employment while covered under The GM Special Pension Plan
shall not be credited hereunder, except for an employe with seniority
on March 1, 1988, who has not received a cash payment representing his
accrued benefit under The Special Pension Plan.
SECTION 6. SERVICE WITH A FOREIGN SUBSIDIARY
An employe whose employment as an hourly or salaried employe with a
directly or indirectly wholly-owned or substantially wholly-owned
foreign subsidiary of General Motors Corporation has been terminated
other than by retirement, shall be granted credited service under this
Program for any periods of active service with such foreign subsidiary
or, if greater, the amount of service credited to such employe under
any pension or retirement plan of the foreign subsidiary at the time
of his termination, excluding any directly or indirectly wholly-owned
or substantially wholly-owned subsidiary of the Corporation acquired
or formed by the Corporation on or after March 1, 1984, provided such
service was prior to his most recent period of active service credited
under this Program.
Any monthly Part A benefits or supplementary benefits under Part B
payable under this Program to a retired employe who has received
credited service under this Section 6 will be reduced by an amount
equivalent to the total of any monthly benefits (or lump-sum payment)
that could be payable to such employe under any
50
A, Art. II, 6
other retirement plan to which the foreign subsidiary has contributed,
excluding, however, any retirement benefits or portion thereof
purchased by employe contributions. Any survivor benefits payable
under this Program to a survivor of such an employe shall be subject
to similar reduction by monthly survivor benefits payable under any
other plan to which the foreign subsidiary has contributed.
SECTION 7. NO DUPLICATION OF CREDITED SERVICE
There shall be no duplication of credited service and no more than a
year's credit will be given for any calendar year except as otherwise
provided in Sections 10 and 12 of this Article II with respect to
foundry and asbestos service.
SECTION 8. COMPENSABLE DISABILITY LEAVE OF ABSENCE
The term "Compensable Disability Leave of Absence" as used herein means
an absence from work because of occupational injury or disease incurred
in the course of employment, and on account of which absence the
employe receives Workers Compensation while on an approved leave of
absence.
SECTION 9. TEMPORARY EMPLOYMENT
A regular employe, with periods of temporary employment prior to the
date he last worked as a regular employe, will be granted credited
service for actual time paid while working on any temporary employment
immediately preceding regular employment.
51
A, Art. II, 10
SECTION 10. FOUNDRY SERVICE
An employe who has credited service on or after October 1, 1990 and who
at retirement has over 10 years of credited service which he accrued
while employed in certain salaried positions in specified foundries as
set forth in Appendix A shall receive additional credited service
related thereto for purposes of this Part A. Total credited service for
any such employe shall be the sum of (i) credited service otherwise
credited to him, and (ii) any such additional credited service which
shall be credited to him in accordance with the following table:
[Download Table]
Years of Credited Service Additional
Credited on Foundry Jobs Credited Service
--------------------------------------------------
For years 1 through 10 0
For 10 years, 1 month through 25 33-1/3%
For years over 25 20%
SECTION 11. HOURS, YEARS AND BREAKS IN SERVICE TO COMPLY WITH
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974
(a) An employe who breaks credited service on or after October 1, 1990
who would be eligible for a deferred benefit under Article III of
this Part A, except solely for the fact that he does not have at
least 5 years of credited service under the foregoing Sections of
this Article II, shall be eligible for a deferred benefit under
the provisions of Article III of this Part A, if at the time the
employe breaks credited service, he has 5 years of service solely
as determined under this Section 11, and provided that such
employe is credited with one hour or more of credited service or
service accrued on or after January 1, 1989.
52
A, Art. II, 11(b)
(b) The monthly amount of any such deferred benefit shall be based
solely on the credited service that the employe had under the
foregoing Sections of this Article II when he broke credited
service.
(c) No employe shall be eligible to be covered under this Section 11
until he (i) attains age 21, or (ii) completes 1 year of service
under this Section 11, whichever is later. Rehired employes shall
participate immediately.
(d) An employe shall complete 1 year of service when he completes 750
hours of service in the 12 consecutive month period beginning with
his employment commencement date. If an employe fails to complete
750 hours of service in such period, he shall complete 1 year of
service in the first 12 consecutive month period thereafter in
which he completes 750 hours of service, measured from each
succeeding anniversary of his employment commencement date.
Thereafter, an employe shall complete 1 year of service during each
12 consecutive month period in which he completes 750 hours of
service, measured from the anniversary of his employment
commencement date. A year of service under this Section 11 shall
include service (i) with affiliated group members accrued
subsequent to acquisition, (ii) rendered to the Corporation as a
former leased employe (but only upon employe application with
substantiation of such service satisfactory to the Corporation),
and (iii) rendered to the Corporation as an hourly-rate employe in
accordance with I.R.C. Section 414(b), (c), (m), (n), and (o).
(e) An employe who satisfies the eligibility requirements of this
Section 11, and who is otherwise entitled to participate in the
Program, shall commence participation under this Section 11 if he
satisfies such requirements (i) between April 1 and September 30;
on the first day of the plan year beginning after the date on
which such requirements are satisfied, or (ii) between
October 1 and March 31; on the first day of the plan year that
includes the date such requirements are satisfied, but in no event
shall any employe participate hereunder if he breaks length of
service prior to such commencement date.
53
A,Art.II,11(f)
(f) An employe shall complete an hour of service under this
Section 11 for each hour for which he is paid by the
Corporation for working or for which he is paid by the
Corporation for having been entitled to work. Any hours for
which an employe receives pay for having been entitled to
work, irrespective of mitigation of damages, shall be credited
to the period or periods he was so entitled, rather than to
the period in which he receives such pay. There shall be no
duplication of any hours of service under this Section 11.
(g) Solely for purposes of determining years of service for
vesting under this Section 11, all of the employe's years of
service shall be taken into account except the following: (i)
years of service before age 18 (age 22 prior to October 1,
1985); (ii) years of service before January 1, 1971, unless
the employe has at least 3 years of service after December 31,
1970; (iii) years of service prior to any 1-year break in
service as defined herein, until the employe completes a year
of service after such break; (iv) for non-vested participants
under this Section 11, years of service prior to any 1-year
break in service if the number of such consecutive breaks
equals or exceeds the aggregate number of years of service
prior to such break, for a non-vested participant at work on
or after October 1, 1985, years of service prior to any 1-year
break in service if the number of such consecutive breaks
equals or exceeds the greater of 5, or the aggregate number of
years prior to such break (such aggregate number of years of
service before such break shall not include any years of
service not required to be taken into account under this
Section 11 by reason of any prior break in service); (v) years
of service before October 1, 1976, if such service would have
been disregarded under rules of the Program as in effect on
October 1, 1976, regarding breaks of service; and (vi) any
year in which the employe completes less than 750 hours of
service.
54
A,Art.II,11(h)
(h) An employe shall incur a 1-year break in service under this
Section 11 in any 12 consecutive month period during which he
does not complete more than 375 hours of service, measured
from the anniversary of his employment commencement date.
Solely for purposes of determining whether an employe has
incurred such 1-year break in service, in addition to hours
worked which are paid by the Corporation, any hours which an
employe does not work but for which he is paid by the
Corporation for vacation, sickness or disability, or is
entitled to be so paid, directly or indirectly, shall be taken
into consideration. For any absence from work commencing on
and after October 1, 1985 by reason of pregnancy of the
individual, childbirth, placement of a child related to an
adoption, or for child care purposes immediately following
such birth or placement, the employe shall be credited with
the hours of work for which he otherwise would have been
scheduled, or, if unable to determine such scheduled hours, 8
hours for each work day of such absence, not to exceed a total
of 501 hours for any such absence. Such hours shall be
credited in the year in which the absence commences if
necessary to prevent incurring a 1-year break in service,
otherwise such hours shall be credited in the immediately
following year.
SECTION 12. ASBESTOS SERVICE
An employe with credited service on or after October 1, 1990 who at
retirement has over 10 years of credited service which was accrued
while employed in certain salaried positions in specified asbestos
operations as set forth in Appendix B shall receive additional
credited service related thereto for purposes of this Part A, in the
same manner as set forth in Section 10 of this Article II.
55
A, Art. III
ARTICLE III
RETENTION OF DEFERRED RETIREMENT BENEFIT IF SEPARATED
(a) Any employe who, on or after October 1, 1990, loses
accumulated credited service under the provisions of Article
II of this Part A shall be eligible for a deferred retirement
benefit under this Part A if such employe is not retired and
eligible for benefits pursuant to Article I of this Part A,
and provided the credited service of such employe at
separation is at least 5 years, or such employe satisfies the
service requirements of Section 11 of Article II of this Part
A, and provided that such employe is credited with one hour or
more of credited service or "service" accrued on or after
January 1, 1989, or such employe has attained the Normal
Retirement Age as defined in Section 1(g) of the General
Provisions.
(b) The monthly amount of any deferred retirement benefit shall be
a basic benefit for each year of credited service, determined
by his Benefit Class Code as set forth in Section 1 (c) of
Article I of this Part A when he lost credited service, as set
forth in the table immediately following:
[Download Table]
Date of Loss Benefit Basic
of Class Benefit
Credited Service Code Rate
--------------------------------------------------
$
October 1, 1990 A 28.35
through B 28.60
September 30, 1991 C 28.85
D 29.10
October 1, 1991 A 29.50
through B 29.75
September 30, 1992 C 30.00
D 30.25
October 1, 1992 A 30.70
and After B 30.95
C 31.20
D 31.45
56
A, Art. III, (c)
(c) A former employe who is eligible for a deferred retirement
benefit may at the election of such former employe receive
either
(1) a monthly benefit commencing at or after age 65
determined in accordance with subsection (b) above, or
(2) a monthly benefit commencing after age 55 and prior to
age 65 determined in accordance with subsection (b)
above, reduced as follows:
[Download Table]
Age When
Benefit Commences Percentage(*)
---------------------------------------
55 42.8%
56 46.8
57 51.2
58 55.5
59 59.6
60 64.0
61 71.2
62 78.4
63 85.6
64 92.8
65 100.0
(*) Prorated for intermediate ages computed on the basis of the number of
complete calendar months by which the employe is under the age he will
attain at his next birthday.
57
A, Art. III, (d)
(d) The deferred retirement benefit shall be payable commencing
the first day of the month coinciding with or next following
the employe's attainment of the applicable age set forth in
subsection (c) of this Article III or, if later, the first day
of the month following the month in which the Corporation
receives a written request from such former employe; provided
that such written request shall be valid and effective only if
it is filed with the Corporation not earlier than 60 days
prior to the date such former employe first became eligible
for such benefit, and, for such employe who broke credited
service prior to October 1, 1976, not later than his 70th
birthday, otherwise no deferred retirement benefit shall be
payable at any time.
(e) The amount of any monthly retirement benefit otherwise payable
to a former employe eligible for a deferred retirement benefit
will be reduced by the value of any past and future benefits
paid or payable to any alternate payee(s) under a Qualified
Domestic Relations Order within the meaning of I.R.C. Section
414(p).
The actuarial value will be used to determine any amount to be
paid to any such payee(s), if applicable, and the remaining
benefit entitlement of the employe.
58
B, Art. I
PART B - CONTRIBUTORY BENEFITS
ARTICLE I
PROVISIONS RELATING TO PRIMARY BENEFITS
AND SUPPLEMENTARY BENEFITS
SECTION 1. ELIGIBILITY REQUIREMENTS
(a) FOR PRIMARY BENEFITS
Each salaried employe will be eligible to commence
contributing under Part B on the first day of any month
provided that at the time he commences to contribute all of
the following conditions are met:
(1) Such employe has reached age 21;
(2) Such employe has at least six months of continuous
service; and
(3) Such employe's base salary rate is greater than
$2000 per month.
(b) FOR SUPPLEMENTARY BENEFITS
(1) An employe who has 5 or more years of credited
service as determined under Article II of Part A, or
an employe who satisfies the "service" requirements
of Section 11 of Article II of Part A, or an employe
retired as a normal retirement on or after October 1,
1990, and in any case is eligible to receive benefits
under Part A, shall be entitled to receive
supplementary benefits under this Part B, if
otherwise eligible based upon his average monthly
base salary, for the following periods:
59
B, ART. I,1(b)(1)(i)
(i) any period of credited service prior to
October 1, 1950, provided that on and after
October 1, 1950 the employe contributes at
all times while eligible and does not
withdraw his contributions prior to
termination of employment,
(ii) the continuous period of credited service
during which the employe contributes under
Part B at all times while eligible to do so
and during which he does not withdraw his
contributions prior to termination of
employment, and
(iii) any period, not credited under (i) or (ii)
immediately above, prior to the earliest date
on which the employe was eligible to
contribute or age 30, if later, provided that
such period shall not exceed the number of
years and fractions thereof credited under
(ii) above.
(2) For the purpose of making the computation described
in paragraph (1) immediately above, if the employe:
(i) failed to contribute (aa) while temporarily
absent and receiving salary at a reduced
rate, or (bb) for a period of absence during
which contributions are permitted under
Section 4 of Article II of this Part B, or
(cc) while under age 30, he shall not be
considered to have broken the continuous
period during which he contributed while
eligible,
(ii) withdrew his contributions while on layoff
which did not result in loss of credited
service prior to such layoff, he shall not be
considered to have withdrawn his
contributions prior to termination of
employment, and
60
B, ART. I, 1(b)(2)(iii)
(iii) withdrew his contributions under this Program
while employed by any wholly-owned or
substantially wholly-owned subsidiary whose
employes are excluded from participation
under this Program, the employe will forfeit
any monthly Part B benefits for which he
otherwise would have been eligible at
retirement except as provided under Article
II, Section 1(a)(2) of this Part B.
SECTION 2. RETIREMENT BENEFITS
(a) RETIREMENT AT OR AFTER AGE 65
Retirement benefits, if any, under Part B for an employe who
retires at or after age 65 will commence on the first day of
the month coinciding with or next following the employe's
first day of absence because of retirement.
(1) PRIMARY BENEFITS
The annual rate of primary retirement benefits payable after
retirement under Part B at age 65 or after will be equal to
the sum of
(i) 60% of the total of the employe's own contributions
made prior to July 1, 1977,
(ii) 75% of the total of such contributions made on and
after July 1, 1977 and prior to October 1, 1979, and
(iii) 100% of the total of such contributions made on and
after October 1, 1979.
61
B, ART. I, 2(a)(2)
(2) SUPPLEMENTARY BENEFITS
The monthly supplementary retirement benefits shall be 1% of
the employe's average monthly base salary in excess of the
amount indicated below times the number of years and months of
the employe's credited service, as determined under Article II
of Part A, or as may be adjusted under Section 1 (b) above:
[Download Table]
Retirement With Part B Supplementary Benefit
Benefits Payable Based on Average Monthly Base Salary
Commencing In Excess of:
--------------------------------------------------------------
October 1, 1990 $
through
September 1, 1991 2,910.00
October 1, 1991
through
September 1, 1992 3,025.00
October 1, 1992
and after 3,145.00
(b) RETIREMENT BETWEEN AGES 60 AND 65
(1) If an employe retires voluntarily at or after age 60
prior to age 62, there shall be payable any
primary and supplementary benefits to which he may
enitled on account of service rendered up to the
of his retirement commencing on the first day of
the month coinciding with or next following his
attaining age 62 or he may elect to receive either
his primary benefit or supplementary benefit, or
both, on a reduced basis commencing on the first day
of any month coinciding with or following his first
day of absence because of retirement and prior to age
62. with such reduction being as set forth in the
table in Part A, Article I, Section 2(b)(2)(i).
62
B, ART. I, 2(b)(2)
(2) An employe discharged for cause at or after age 60
and prior to age 65 shall be entitled to the benefits
described in Section 2(b)(1) above.
(c) RETIREMENT PRIOR TO AGE 60 OTHER THAN FOR TOTAL AND PERMANENT
DISABILITY
(1) If an employe who has 10 or more years of credited
service retires voluntarily (i) at or after age 55
and prior to age 60 and whose combined years of age
and years of credited service (to the nearest 1/12th
in each case) at retirement total 85 or more, or (ii)
prior to age 55 with 30 or more years of credited
service, and in either case was hired prior to
January 1, 1988, he shall be entitled to primary and
supplementary retirement benefits on account of
service rendered up to the date of his retirement
commencing on the first day of the month coinciding
with or next following his attainment of age 62, or
he may elect to receive either his primary benefit or
supplementary benefit, or both, commencing on the
first day of any month coinciding with or following
his first day of absence because of retirement and
prior to age 62 in which case any benefits shall be
reduced from the amount that would otherwise be
payable commencing at age 62 multiplied by a
percentage as set forth in the table in Part A,
Article I, Section 2(b)(2)(i).
(2) If an employe who has 10 or more years of credited
service retires voluntarily at or after age 55 and
prior to age 60 and (i) whose combined years of age
and years of credited service (to the nearest 1/12th
in each case) at retirement total less than 85, or
(ii) who was hired on or after January 1, 1988, he
shall be entitled to primary and supplementary
retirement benefits on account of service rendered up
to the date of his retirement commencing on the first
day of the month coinciding with or next following
his attainment of age 65, or he may
63
B, ART. I, 2(C)(2)
elect to receive either his primary benefit or
supplementary benefit, or both, commencing on the
first day of any month coinciding with or following
his first day of absence because of retirement and
prior to age 65 in which case any benefits shall be
reduced from the amount that otherwise would be
payable commencing at age 65 multiplied by a
percentage as set forth in the table in Part A,
Article I, Section 2(b)(2)(ii).
(3) An employe (i) who has 10 or more years of credited
service and who is discharged for cause at or after
age 55 and prior to age 60, or (ii) who has 30 or
more years of credited service, was hired prior to
January 1, 1988, and who is discharged for cause
prior to age 55, shall be entitled to the benefits
described in Sections 2(c)(1) or 2(c)(2) above,
whichever is applicable.
(d) RETIREMENT PRIOR TO AGE 65 FOR TOTAL AND PERMANENT DISABILITY
If an employe is retired prior to age 65 for total and
permanent disability and commences to receive total and
permanent disability benefits under Part A, any supplementary
benefits to which he may be entitled on account of service
rendered up to the date of his retirement which are payable at
age 65 shall be payable commencing at the same time as
benefits payable under Part A without reduction in amount
because of such earlier commencement. Any primary benefits to
which the employe may be similarly entitled and which are
payable at age 65 shall be payable commencing on the first day
of the month with respect to which the initial benefit payment
is made under Part A without reduction in amount because of
such earlier commencement.
64
B, ART. I, 2(e)
(e) REEMPLOYMENT
If a retired employe who is receiving retirement benefits is
reemployed by the Corporation or one of its directly or
indirectly wholly-owned or substantially wholly-owned domestic
or foreign subsidiaries, payment of his Part B benefits shall
cease and he shall be treated thereafter for the purposes of
this Program as if he had not previously retired, except that:
(1) For the purpose of (aa) the death benefit provisions
of Section 5(c)(4) and 6(a)(1) of this Article I, and
(bb) the provisions of Section 1(a)(2) of Article II
of this Part B relating to the return of an employe's
contributions, and solely with respect to the
employe's contributions made prior to the date his
primary benefits commenced because of retirement, no
interest will be credited on the employe's
contributions for the period during which he received
such primary benefits and upon his reemployment his
contributions will be deemed to have been reduced by
the amount of such primary benefits (but with such
reduction not to exceed the amount of his
contributions plus interest); and
(2) the amount of any death benefit otherwise
subsequently payable under Section 6(a)(2) of this
Article I shall be reduced by an amount equal to the
amount of reduction specified in the preceding item
(1).
65
B, ART. I, 3
SECTION 3. EMPLOYE CONTRIBUTIONS
(a) Each employe participating in Part B for primary benefits will
contribute 1.25% of the amount of his monthly base salary in
excess of $2,000.
(b) An employe may accrue Part B primary benefits for no more than
35 years. In that regard, however, an otherwise eligible
employe who remains at work for GM after contributing for 35
years, may continue to contribute, while otherwise eligible to
do so, except that his contributions made in his earliest
months of Program participation, commencing with the first
month of participation and continuing sequentially thereafter,
shall be used to reduce, on a dollar-for-dollar basis, the
gross amount of each current monthly contribution that
otherwise might be made, as determined by the employe's most
recent monthly base salary. The full amount of all such prior
contributions used in any such reduction will be used to
determine the employe's monthly amount of Part B primary
benefits, but at the updated Part B benefit accrual rate. The
overall effect of the treatment described herein is to limit
to 35 years the period in which any employe may accrue Part B
primary benefits, but to maximize the monthly Part B primary
benefit generated by such contributions.
(c) An employe may continue to contribute from the date he first
becomes eligible until he (1) ceases to be eligible, or (2)
retires, any provisions of the preceding paragraph to the
contrary notwithstanding.
(d) If an employe at any time or for any reason withdraws his
contributions, he shall not be entitled to any primary
retirement benefits under Part B with respect to any period of
service prior to the date of such withdrawal of contributions,
except as otherwise provided in Sections 1(a)(1) abd (2) and
2(c)(2) of Article 11 of this Part B, or in subsections (e)
and (g) of this Section 3.
66
B, ART. I, 3(e)
(e) If an employe with 5 or more years of credited service, as
determined under Article II of Part A, at any time or for any
reason withdraws his contributions, he shall not forfeit any
deferred benefits which are attributable to the Corporation's
contributions made up to the time of such withdrawal of
contributions.
(f) If an employe at any time or for any reason withdraws his
contributions, he shall not be entitled to make any additional
withdrawal of his contributions for a period of two years from
the date of such withdrawal of contributions.
(g) In the event an employe withdraws his contributions under this
Program, he thereafter shall not have any right to repay in a
lump-sum the amount withdrawn. Such employe, if vested, will
be entitled to a Corporation provided benefit which will not
be less than an amount determined under (i) Article III of
Part A, and (ii) this Part B, less an amount attributable to
the employe contributions withdrawn, as may be determined in
accordance with applicable IRS regulations.
SECTION 4. OPTIONAL FORMS OF RETIREMENT BENEFITS
(a) SURVIVING SPOUSE COVERAGE
In lieu of any primary or supplementary benefits otherwise
payable hereunder, an employe who retires or is retired or who
loses credited service and is eligible for a deferred
retirement benefit pursuant to the provisions of Articles II
or III of this Part B, shall be deemed to have elected
automatically a reduced amount of primary and/or supplementary
benefits to provide surviving spouse coverage in accordance
with the provisions of Part A, Article II, Section 5(a)
through (g) of this program. An employe may prevent
67
B, ART. I, 4(a)
This automatic election during the month prior to the
effective date by executing a specific written rejection of
such election, which includes the written consent of his
spouse witnessed by the program representative, or a notary
public, on a form approved by the Corporation and filing it
with the Corporation. An employe may revoke a written
rejection of this automatic election, without the consent of
the spouse, at any time prior to commencement of benefits.
(b) JOINT AND SURVIVOR OPTION
Under this option, any person may be designated by the employe
as the contingent annuitant. The amount of monthly benefits
payable to such contingent annuitant if such contingent
annuitant is living at the death of the employe shall equal
any designated percentage, up to a maximum of 100%, of that
portion of the employe's reduced monthly benefits (which are
in lieu of benefits otherwise payable as primary benefits,
supplementary benefits, or both, as the case may be) as to
which the coverage is elected. Benefits hereunder shall be
provided in accordance with the provisions of Part A, Article
I, Section 6 of this Program.
(c) THE SURVIVING SPOUSE OF AN EMPLOYE WHO
(1) dies on or after attaining age 55 with 10 or more
years of credited service, or at any age with 30 or
more years of credited service and his date of hire
was prior to January 1, 1988, but before the first
day of the month coinciding with or next following
the first day of absence because of retirement (or,
if later, the commencement date of his monthly basic
benefit in the case of an employe who defers the
receipt of his monthly benefit under Part A, Article
I, Section 2(b)(2)), and
68
B, ART. I, 4(c)(2)
(2) if he had retired at the date of his death, would
have been eligible for the coverage under Part A,
Article I, Section 5(a) of this Program, and
(3) is not covered by the provisions of Section 5 of this
Article I
shall be entitled to any primary or supplementary benefits
otherwise payable in accordance with the provisions of Part
A, Article I, Section 5(h) of this Program.
SECTION 5. BENEFITS FOR SURVIVING SPOUSE IN EVENT OF AN EMPLOYE'S DEATH PRIOR
TO RETIREMENT
(a) ELECTION OF COVERAGE
An employe who is participating for primary benefits under
this Part B shall be deemed to have elected automatically,
subject to all the conditions thereof, to provide, in the
event of an employe's death prior to retirement, a monthly
benefit for the further lifetime of the employe's designated
surviving spouse.
(b) BENEFITS PAYABLE
The monthly benefit payable to such spouse following the
employe's death while this coverage is, or is assumed to be,
in effect shall be an amount equal to 60% of the employe's
accrued primary and supplementary benefits under Part B of
this Program applicable on account of service rendered up to
his date of death which would otherwise have been payable
under this Part B upon retirement of the employe at age 65.
The 60% will be increased by one-quarter of one percent (1/4%)
for each 12 months in excess of five (5) years that the
spouse's age exceeds the employe's age or decreased by
one-quarter of one percent (1/4%) for each 12 months in excess
of five (5) years that the spouse's age is less than the
employe's age.
69
B, ART. I, 5(c)
(c) GENERAL PROVISIONS
(1) Payment of the monthly benefit to the surviving
spouse following an employe's death shall be in lieu
of any death benefits otherwise payable to such
spouse under Part B of this Program.
(2) The benefit payable to an eligible surviving spouse
under subsection (b) of this Section 5 shall include
a benefit related to the employe's accrued
supplementary benefit even though the employe's
credited service is less than 5 years on his date of
death.
(3) Payment of the monthly benefit to the surviving
spouse following the employe's death while this
coverage is in effect shall commence on the first day
of the month following the month in which the death
of the employe occurs and shall continue during the
further lifetime of such surviving spouse.
(4) Upon the death of the designated surviving spouse
following the employe's death while this coverage was
in effect, there shall be paid to the beneficiary
designated by the employe (or, if the employe has
designated no beneficiary, to the estate of such
spouse) an amount equal to the excess, if any, of (i)
all of the employe's contributions under this Program
as to which this coverage is applicable plus interest
to the date of the employe's death over (ii) the
total of any amounts paid to such spouse under this
coverage.
(5) No additional contributions under the Program will be
required of an employe by reason of this coverage.
70
B, ART. I, 5(d)
(d) EFFECTIVE DATE OF COVERAGE
The effective date of this coverage shall be the first day of
the month coinciding with the employe's commencement of
participation in Part B of this program, except that in the
case of an employe who marries or remarries subsequent to age
21, the effective date of the coverage with respect to the
spouse by such marriage or remarriage shall be the first day
of the month coinciding with or next following the first
anniversary of such marriage or remarriage.
(e) DURATION OF COVERAGE
Once the coverage has become effective it will remain in
effect (and benefits will become payable thereunder to the
designated surviving spouse in the event of the employe's
death) up to but excluding the earliest of the following dates:
(1) the date of the final dissolution of the employe's
marriage other than by the employe's death, unless a
Qualified Domestic Relations order within the meaning
of I.R.C. Section 414(p) provides to the contrary;
(2) the first day of the month coinciding with or next
following the employe's first day of absence because
of retirement, except that in the case of an employe
who retires for total and permanent disability on or
after January 1, 1974 with less than 30 years of
credited service, the coverage may remain in effect
until the first day of the month coinciding with or
next following the employe's attainment of age 55; or
71
B, ART. I, 5(e)(3)
(3) the first day of the month coinciding with or next
following 12 successive months from the effective
date of layoff, special leave of absence without pay
or transfer to the hourly rolls, except that in the
case of an employe who has 10 or more years of
credited service, the coverage may remain in effect
until the first day of the month coinciding with or
next following 24 successive months from such
effective date.
(f) ALTERNATIVE COVERAGE
In the event the coverage described in this Section 5 ceases
to be effective, and the employe has 5 or more years of
credited service, or satisfies the "service" requirements of
Section 11 of Article II of Part A, and in either case is
credited with one or more hours of credited service or
"service" accrued on or after January 1, 1989, survivor
coverage as described in, and in accordance with, the
provisions of Part A, Article I, Section 5(j) of this Program,
is provided with respect to any accrued Part B benefits.
SECTION 6. DEATH BENEFITS
(a) Upon the death of the employe or, if later, the death of any
contingent annuitant designated by the employe if either of
the coverages provided under Section 4 of this Article I has
become effective with respect to primary benefits otherwise
payable under this Part B, there shall be paid to the
beneficiary designated by the employe or, if the employe has
designated no beneficiary, to the estate of such employe, an
amount, if any, determined in accordance with the following
items (1) or (2), whichever is applicable:
72
B, ART. I, 6(a)(1)
(1) DEATH OF THE EMPLOYE PRIOR TO RETIREMENT -- an amount
equal to the excess of (i) all of the employe's
contributions under this Program plus interest to the
date of the employe's death over (ii) the sum of all
payments, if any, made to the employe, to any such
designated contingent annuitant of benefits under
either of such coverages which are in lieu of primary
benefits otherwise payable under this Part B, and to
any alternate payee subject to a Qualified Domestic
Relations Order within the meaning of I.R.C. Section
414(p).
(2) DEATH OF THE EMPLOYE AT OR AFTER RETIREMENT -- an
amount equal to the greater of:
(i) the total of
(aa) 125% of the employe's contributions
made prior to July 1, 1971 under
Section 3 of Article I of this Part
B (or, if greater, 30 times the
amount of monthly primary retirement
benefits accrued prior to July 1,
1971 that would have been payable
under this Part B if neither of such
coverages with respect to primary
benefits otherwise payable under
this Part B had become effective),
and
(bb) 125% of the employe's contributions
made on and after July 1, 1971 under
Section 3 of Article I of this Part
B (or, if greater, the total of such
contributions plus interest to the
date of the employe's retirement),
or
(ii) all of the employe's contributions under
Section 3 of Article I of this Part B plus
interest to the date of the employe's
retirement,
73
B, ART. I, 6(a)(2)
less the sum of all payments, if any, made to
the employe and to any such designated
contingent annuitant of primary benefits
provided under this Part B, or of benefits
under either of such coverages which are in
lieu of primary benefits otherwise payable
under this Part B, and to any alternate payee
subject to a Qualified Domestic Relations
Order within the meaning of Section 414(p).
In the case of an employe whose death occurs
while the coverage set forth in Section 5
above is in effect, the foregoing terms and
provisions of this Section 6 are subject to
and limited by the conditions of such
coverage.
(b) Except as provided in Sections 4 and 5 of this
Article I, which describe optional benefits that may
be related to, or in lieu of, supplementary benefits
under this Part B, no benefit related to an employe's
accrued supplementary benefit is payable following
the death of an employe or retired employe.
SECTION 7. BENEFITS FOR EMPLOYES WHO RETIRED WITH BENEFITS PAYABLE
COMMENCING PRIOR TO OCTOBER 1, 1990
(a) Except as otherwise provided in this Section 7, an employe who
retired with benefits payable commencing prior to October 1,
1990, or the eligible surviving spouse or contingent annuitant
of such an employe, or the eligible surviving spouse of an
employe who died in active service prior to September 18,
1990, with the coverage to provide benefits for his surviving
spouse in effect, shall be entitled to the benefits, if any,
under the Program as it existed immediately prior to the
amendments which became effective as of October 1, 1990.
74
B, Art. I, 7(b)
(b) Effective October 1, 1990, the benefits payable under this
Part B to such retired employes or the benefits payable to
retired employes, surviving spouses, and contingent annuitants
in lieu of, or related to, such benefits shall be increased to
the extent necessary to provide monthly Part B benefits equal
to the benefits which would have been payable had the Part B
benefits payable to the employe at or after age 65 been
increased by 0.195% for each complete calendar month of
retirement between October 1, 1987 and October 1, 1990.
(c) In applying the formula described in subsection (b)
immediately above, the following rules shall be used:
(1) the total annual increase in benefits payable to the
employe at or after age 65 as set forth in subsection
(b) shall not exceed 7%;
(2) in the case of an eligible surviving spouse of an
employe who died in active service, the formula shall
be based on the number of complete calendar months
from the date of the employe's death or October 1,
1987, if later, to October 1, 1990.
(d) An employe who retired under the Program with benefits payable
commencing prior to September 18, 1990 and who has survivor
coverage in effect with respect to all, or any part, of his
Part B benefits but whose designated spouse or contingent
annuitant is deceased prior to September 18, 1990, shall
receive the increase in benefits which otherwise would have
been payable to him under this Section 7 on or after September
18, 1990 as if such coverage was not in effect.
75
B, Art. I, 7(e)
(e) Notwithstanding any of the foregoing provisions of this
Section 7, an employe who retired voluntarily between ages 55
and 59 with benefits payable commencing prior to September 18,
1990, and whose combined years of age and years of credited
service totaled less than 85, or an employe whose separation
from service prior to age 60 was classified by the Corporation
as a discharge for cause, shall not be eligible for the
increase in benefits provided in this Section 7.
(f) Any early retirement supplement or interim supplement payable
pursuant to Section 7 of Article I of Part A shall be
redetermined taking into account any increase in the
supplementary benefit payable under this Section 7.
76
B, Art. II
ARTICLE II
PROVISIONS RELATING SPECIFICALLY TO PRIMARY BENEFITS
SECTION 1. SEPARATION FROM SERVICE PRIOR TO AGE 60
(a) Except as otherwise provided under subsections (b) and (c) of
this Section 1, an employe upon separating from service prior
to age 60 for any reason except death or retirement must
either:
(1) leave his contributions in Part B and receive,
commencing on the first day of the month coinciding
with or next following the employe's attainment of
age 65 (or, on a reduced basis pursuant to paragraph
(c)(2) of Article III of Part A, on the first day of
any month coinciding with or following the employe's
attainment of age 55 and prior to age 65), the
deferred primary retirement benefit which will have
accrued under Part B by his own contributions and, if
he has contributed for at least five years or has 5
or more years of credited service as determined under
Article II of Part A, the Corporation's
contributions; or
(2) elect to have returned to him all of his own
contributions under Section 3 of Article I of this
Part B plus interest to the date of such election
and, if he has 5 or more years of credited service as
determined under Article II of Part A, he will
receive a deferred benefit related to the Corporation
contributions made up to the time of such withdrawal
of contributions, commencing on the first day of the
month coinciding with or next following the employe's
attainment of age 65 (or, on a reduced basis pursuant
to paragraph (c)(2) of Article III of Part A, on the
first day of any month coinciding with or following
the employe's
77
B, Art. II, 1(a)(2)
attainment of age 55 and prior to age 65). Any
return of contributions must include the written
consent of his spouse witnessed by a program
representative, or a notary public, on a form
approved by the Corporation and filing it with the
Corporation. Upon any subsequent reemployment, the
employe will be considered as a new employe for
purposes of the provisions of this Part B relating to
primary benefits except as otherwise provided in
Section 2 of this Article II.
(b) An employe who is separated from service in a layoff
classification (1) at or after age 55 with 10 or more years
of credited service, (2) prior to age 55 with 30 or more years
of credited service and whose date of hire was prior to
January 1, 1988, or (3) prior to age 55 with 10 but less than
30 years of credited service at the time of such separation,
provided that his credited service at such time is sufficient
so that he will retain credited service until age 55, will not
be required to make either election described in (a)
immediately above.
(c) An employe who is separated from service and who, as a
consequence of such separation, elected to receive a deferred
primary retirement benefit under Part B as described in
subsection (a)(1) of this Section 1, may reinstate the primary
retirement benefit accrued at the time he made such election
to receive a deferred primary benefit provided that he (1)
contributes under Part B from the date of such reemployment,
and (2) returns to the Corporation any annuity notice or other
certificate of entitlement related to such deferred primary
retirement benefit.
(d) For purposes of Section 6 of Article I of this Part B, an
employe to whom this Section 1 applies (other than such an
employe who elects to have contributions returned with
interest) shall be considered to have retired on the date the
payment of primary benefits commences under this Part B.
78
B, Art. II, 2
SECTION 2. TEMPORARY ABSENCE
(a) TEMPORARY ABSENCE BUT RECEIVING FULL SALARY
If an employe is temporarily absent from active duty but is
receiving full salary, his monthly contributions under Part B
will be deducted in the usual way and his retirement benefits
will be accrued just as if he were at work.
(b) TEMPORARY ABSENCE BUT RECEIVING SALARY
AT REDUCED RATE OR NO SALARY
No contributions will be required from an employe who is
temporarily absent and receiving salary at a reduced rate or
no salary, and no primary retirement benefits will be accrued
under this Part B for the period during which no contributions
are made. This will in no way affect retirement benefits
previously accrued. Contributions, if made, shall be upon the
basis you the reduced salary except that contributions, if
made, by an employe on Disability Leave of Absence shall be
upon the basis of the employe's full monthly base salary rate.
(c) LAYOFFS
(1) No contributions will be permitted from an employe
who has been laid off, and no primary retirement
benefits will be accrued under this Part B during the
period of layoff.
79
B, Art. II, 2(c)(2)
(2) An employe who is laid off may, at his option, leave
his contributions in the Program, in which event his
primary retirement benefits previously accrued under
this Part B will remain to his credit subject to the
provisions of subsection (4) of this Section 2(c).
If such an employe is thereafter reemployed within a
period of twelve months from the date he is laid off
(24 months in the case of an employe who is laid off
with 10 or more years of credited service), he will
resume contributions under Part B.
(3) If an employe who is laid off and withdraws his
contributions is reemployed within twelve months
after the date he is laid off (24 months in the case
of an employe who is laid off with 10 or more years
of credited service) and elects to contribute under
Part B from the date of such reemployment, he may
then, at his election, return the amount which he had
withdrawn and thereupon become eligible to receive
the primary retirement benefits, covered by
contributions made prior to the date of his layoff,
for which he would have been eligible if he had not
withdrawn his contributions.
(4) If an employe is not rehired within twelve months of
the date he is laid off (24 months in the case of an
employe who is laid off with 10 or more years of
credited service), he will be treated as a retirement
under the Program, or as a separation, with the
rights provided in the "Eligibility for Retirement"
section of this Program or under Section 1 of this
Article II, whichever is applicable.
80
B, Art. II, 3
SECTION 3. INTEREST CREDITS
Prior to October 1, 1976, in any case in which interest is payable
under the terms of this Program, such interest will be determined on
the basis of the rates allowed by the Insurance Companies referred to
in Section 6 of General Provisions and will be computed on each
contribution from the July 1st following the date such contribution
was made to the first of the month in which such interest is payable
(but in no event beyond the earlier of the death or retirement of the
employe), and will be compounded annually.
On and after October 1, 1976, contributions shall accrue interest at a
rate of 5%. On and after October 1, 1988, contributions shall accrue
interest at a rate of 120% of the annual Federal mid-term rate in
effect under Section 1274 of the Internal Revenue Code for the first
month of the plan year.
SECTION 4. TREATMENT OF EMPLOYES RETURNING FROM LEAVE OF ABSENCE
OR LAYOFF IN CONNECTION WITH A NATIONAL EMERGENCY
(a) An employe who is granted a Military Leave of Absence, or
other leave of absence in connection with a national
emergency, or who is laid off as a result of declining volume
of business related to such emergency, may be permitted to
contribute and to accrue primary retirement benefits under
Part B in such amounts and for the period for which he would
have been eligible if he had remained actively in the employ
of the Corporation, or one of its subsidiaries, under such
rules as the Named Fiduciary or its delegate may establish,
provided:
(1) the employe returns to work following the termination
of his leave of absence or reenters the employ of the
Corporation, or one of its subsidiaries, within such
period and in accordance with the rules established
by the Named Fiduciary or its delegate; and
81
B, Art. II, 4(a)(2)
(2) the employe participates for primary benefits under
Part B, if eligible, upon his return to work
following the termination of his leave of absence or
upon his reemployment by the Corporation or one of
its subsidiaries.
(b) The salary to be used in determining an employe's eligibility
for contributions, and the amount of contribution, under this
Section 4 shall be the base salary of such employe at the time
of his leave of absence or layoff from the Corporation, or one
of its subsidiaries.
(c) The Named Fiduciary or its delegate shall, from time to time,
adopt rules to carry out the provisions of this Section in
conformity with the objectives of this Program.
(d) Notwithstanding the provisions of Section 1(b) of Article I of
this Part B, an employe who may have become eligible to make
contributions in accordance with this Section 4 and who does
not so elect shall be eligible nevertheless for supplementary
retirement benefits under Part B.
SECTION 5. TREATMENT OF FORMER SALARIED EMPLOYES WHO RETIRE UNDER
THE GENERAL MOTORS HOURLY-RATE EMPLOYES PENSION PLAN
An hourly-rate employe who has contributions in Part B of this
Program, and who retires under the provisions of the "General Motors
Hourly-Rate Employes Pension Plan", shall be eligible to receive
primary benefits under this Part B based upon the amount of
contributions to his credit. Solely for the purpose of determining
the basis upon which such primary benefits are payable, such employe
shall be treated as a retirement under this Program on the basis which
most closely corresponds to his retirement under the "General Motors
Hourly-Rate Employes Pension Plan".
82
B, Art. II, 6
SECTION 6. TREATMENT OF FORMER SALARIED EMPLOYES WHO RETIRE UNDER
THE ELECTRONIC DATA SYSTEMS (EDS) PENSION PLAN
A salaried employe who has contributions in Part B of this Program,
and who retires under the provisions of the "EDS Pension Plan", shall
be eligible to receive primary benefits under this Part B based upon
the contributions to his credit. Solely for the purpose of
determining the basis upon which any such primary benefits may be
payable, retirements from EDS (i) prior to age 60 will be deemed to be
voluntary, and (ii) at or after age 60 will be deemed to be as
provided under Section 11(b) of the General Provisions.
ARTICLE III
PROVISIONS RELATING SPECIFICALLY
TO SUPPLEMENTARY BENEFITS
SECTION 1. RETENTION OF DEFERRED SUPPLEMENTARY RETIREMENT BENEFITS IF
SEPARATED
An employe who, on or after October 1, 1990, loses accumulated
credited service under the provisions of Article II of Part A, who is
not retired and who is eligible for a deferred retirement benefit
under Article III of Part A shall, subject to the provisions of
Section 1(b) of Article I of this Part B, be entitled to receive
deferred supplementary benefits, with the payment of such benefits to
commence at the same time and under the same provisions as applicable
to his deferred retirement benefit under Part A.
83
B, Art. III, 2
SECTION 2. TREATMENT OF FORMER SALARIED EMPLOYES WHO RETIRE UNDER
THE GENERAL MOTORS HOURLY-RATE EMPLOYES PENSION PLAN
An hourly-rate employe with 5 or more years of credited service who
has accrued supplementary benefits under Part B of this Program, and
who retires under the provisions of the "General Motors Hourly-Rate
Employes Pension Plan", shall be eligible to receive supplementary
benefits, if any, as determined in Article I, Section 2(a)(2) of this
Part B, based upon the employe's credited service and average monthly
base salary in effect immediately prior to his transfer to the hourly
payroll. Solely for the purpose of determining the basis upon which
any supplementary benefits may be payable, such employe shall be
treated as a retirement under this Program on the basis which most
closely corresponds to his retirement under the "General Motors
Hourly-Rate Employes Pension Plan".
SECTION 3. TREATMENT OF FORMER SALARIED EMPLOYES WHO RETIRE UNDER
THE EDS PENSION PLAN
A salaried employe with 10 or more years of credited service who has
contributed while eligible, does not withdraw his contributions while
employed by EDS and who retires under the provisions of the "EDS
Pension Plan", shall be eligible to receive any supplementary benefits
for which he may be eligible under this Part B, using his base salary
at EDS and General Motors to determine his "average monthly base
salary." Solely for the purpose of determining the basis upon which
any such supplementary benefits may be payable, retirements from EDS
(i) prior to age 60 will be deemed to be voluntary, and (ii) at or
after age 60 will be deemed to be as provided under Section 11(b) of
the General Provisions.
A salaried employe with less than 10 years of credited service at the
date of his transition to EDS shall not be eligible to receive any
supplementary benefits hereunder, since all of the assets and
liabilities related to any and all supplementary benefits to which any
such employe may have been entitled have been transferred from the
Program Trust to EDS in connection with the transition of certain
General Motors employes to EDS.
84
Gen. Pro., 1
GENERAL PROVISIONS
SECTION 1. DEFINITION OF CERTAIN TERMS USED IN THIS PROGRAM
(a) EMPLOYES
(1) Unless the context indicates otherwise, the term
"employes" as used in this Program shall mean salaried
employes of the Corporation and its directly or indirectly
wholly-owned or substantially wholly-owned domestic or foreign
subsidiaries in accordance with I.R.C. Section 414(b), (c),
(m), (n), and (o) (other than such employes while assigned to
operations in Canada after 1970, and employes of any directly
or indirectly wholly-owned or substantially wholly-owned
subsidiary of the Corporation acquired or formed by the
Corporation on or after March 1, 1984, excluding employes of
the Saturn Corporation through December 31, 1991, and employes
of the General Motors Investment Management Corporation) (i)
who are working in the United States, or (ii) who are citizens
of or domiciled in the United States and who have been or may
hereafter be hired in the United States by the Corporation or
its said subsidiaries and who are sent out of the United
States by the Corporation or its said subsidiaries to work in
foreign operations, and whose services, if discontinued, would
be discontinued by recalling said employes to the United
States and terminating their services in the United States
(herein sometimes referred to as United States Employes in
Foreign Service). Employes compensated wholly or in part on a
commission basis shall be regarded as "employes" and may
participate in the Program to the extent and subject to the
conditions set forth in Section 10 of these General Provisions
and other applicable sections of the Program. Employes
classified by the
85
Gen. Pro., 1(a)(1)
Corporation as (i) "part-time employes" -- more than
"half-time" (employes who work one-half or more of the
employing unit's work week), or (ii) "Flexible Service"
employes (employes hired on an indefinite basis who are
regularly scheduled to work between 50% and 80% of the
employing unit's base work week) shall be regarded as
"employes", provided, however, that the provisions of Part A,
Article II, Section 2(e) of this Program shall apply to
"Flexible Service" employes.
Effective October 1, 1990, the term "employes" also shall
include salaried employes of General Motors who are working at
GM operations in Puerto Rico. Certain benefit rates and a
benefit formula applicable solely to such employes, which are,
with respect to such employes, in lieu of the benefit rates
and benefit formula otherwise applicable hereunder, are set
forth in Exhibit C of this Program.
(2) The term "employes" shall not include employes who are
classified as (i) "temporary employes", including per diem
employes, or (ii) "part-time employes" -- less than half-time
(employes who work less than one-half of the employing unit's
work week) -- provided, however, that the provisions of Part
A, Article II, Section 11 of this Program shall apply to each
of these classifications, as may be applicable.
(3) The term "employes" shall not include employes represented by
a labor organization who are covered by a collective
bargaining agreement which incorporates or makes as a part
thereof:
(i) this Program as amended by the collective bargaining
agreement, or
86
Gen. Pro., 1(a)(3)(ii)
(ii) a program or plan similar in purpose to this Program,
or
(iii) some other plan or program acknowledged by the
Corporation and the employes' bargaining agent to be
a substitute for, or in lieu of, benefits provided by
this Program, or
(iv) an understanding that this Program shall cease
prospectively to be available, applicable, or
operative with respect to each salaried employe
covered by such agreement.
Such employes shall cease to be eligible for participation in
this Program as of the effective date of, or at such other
time as may be specified in, such collective bargaining
agreement. If such collective bargaining agreement expires or
is terminated, and the employe remains a represented employe,
such employe shall continue to be ineligible for participation
in this Program during the period required to conclude a new
collective bargaining agreement.
(4) The term "employes" shall not include members of the Board of
Directors of General Motors Corporation or its directly or
indirectly wholly-owned or substantially wholly-owned
subsidiaries, or of Committees appointed by any such Board of
Directors, who are not officers or regular employes of the
Corporation or said subsidiaries.
(5) The term "employes" shall not include leased employes as
defined under Section 414(n) of the Internal Revenue Code.
87
Gen. Pro., 1(b)
(b) BASE SALARY
The term "base salary" as used in this Program shall mean the
salary paid for a work week of not more than 40 hours,
exclusive of any other compensation. An employe's annual base
salary is limited to $200,000, as may be adjusted under
applicable Federal regulations.
An employe's base salary for purposes of determining benefits
and contributions paid under this Program shall include salary
election deferrals pursuant to (i) a cash or deferred
arrangement under Section 401(k) of the Internal Revenue Code
as provided under the Corporation's Savings-Stock Purchase
Program for Salaried Employes in the United States, and (ii)
an arrangement under Section 125 of the Internal Revenue Code.
(c) AVERAGE MONTHLY BASE SALARY
(1) The term "average monthly base salary" as used in
this Program shall mean the monthly average of the
employe's base salary for the highest 60 of the 120
months immediately preceding his termination of
employment (including EDS and Hughes Aircraft
employment, where applicable) or his transfer to the
hourly rolls.
(2) For purposes of determining "average monthly base
salary" the following provisions shall apply:
88
Gen. Pro., 1(c)(2)(i)
(i) Base salary as indicated in the table below
shall be used for any month, referred to in
subsection (c)(1) above, preceding
termination of employment, or transfer to the
hourly rolls, for which the employe's full
monthly base salary rate was less than the
amounts as shown below:
[Download Table]
Retirement With
Benefits Payable
Commencing Base Salary
---------- -----------
$
October 1, 1990
through
September 1, 1991 2,910.00
October 1, 1991
through
September 1, 1992 3,025.00
October 1, 1992
and
After 3,145.00
(ii) For any month referred to in subsection
(c)(1) above, preceding termination of
employment, or transfer to the hourly rolls,
for which the employe received base salary at
less than his full monthly base salary rate,
his full monthly base salary rate last
received preceding such month shall be used
for such month.
(iii) For any month referred to in subsection
(c)(1) above, preceding an employe's
termination of employment, or transfer to the
hourly rolls, during which the employe was on
the hourly payroll and subsequent to which
the employe commenced service as a salaried
employe, his monthly base salary rate
immediately following the commencement of
such service as a salaried employe shall be
used for such month.
89
Gen. Pro., 1(d)
(d) CONTINUOUS SERVICE
(APPLICABLE TO PRIMARY BENEFITS UNDER PART B)
(1) The term "continuous service" as used in this Program
shall include all employment, whether on salary or
hourly-rate, with the Corporation and its directly or
indirectly wholly-owned or substantially wholly-owned
domestic or foreign subsidiaries, now owned or
hereafter acquired, as well as service with any
company (including service with any directly or
indirectly wholly-owned or substantially wholly-owned
subsidiary of such company) of which substantially
all the assets have been or are hereafter acquired by
the Corporation or its said subsidiaries.
(2) Any period during which an employe has been or is
absent from service under an approved leave of
absence with pay, as well as any period not in excess
of one month during which an employe has been or is
absent from service under such leave of absence
without pay, will be included in the calculation of
the amount of continuous service. In the case of any
employe absent from service in excess of one month
under an approved leave of absence without pay, the
period during which said employe has been or is
absent from service under such leave shall be
excluded in the calculation of the amount of
continuous service, but his continuous service shall
not be broken. An employe who leaves or has left the
service of the Corporation without a Military leave
of absence to enter the Armed Forces of the United
States or of Canada or to accept employment with the
Government of the United States or with the
Government of Canada and who is rehired after he has
terminated such military or governmental service
within such period and under such rules as the Named
Fiduciary or its delegate has heretofore and may
hereafter establish, shall be treated in the same
manner as an employe who has received an approved
leave of absence without pay.
90
Gen. Pro., 1(d)(3)
(3) For the purposes of this Program if, after a quit or
discharge, an employe has been or is rehired, his
continuous service shall commence from the date of
rehiring.
(4) In cases of employes who have been or are released
and who have not been or are not returned to work
within twelve months from the date of such release,
such employes shall have the same status as if they
had quit.
(5) In cases of employes who have been or are laid off
and who have not been or are not returned to work
within five years (or, if less, a period equal to the
employe's continuous service prior to such layoff)
from the date of such layoff, such employes shall
have the same status as if they had quit.
(e) FEDERAL SOCIAL SECURITY BENEFIT
(1) A Federal Social Security benefit for disability or
an unreduced Federal Social Security benefit for age
means a benefit determined and payable under Title II
of the Federal Social Security Act, as now in effect
or as hereafter amended, without any reduction being
made therein based on the age of the recipient.
(2) Old age benefit payments or disability benefit
payments, other than those payable on a basis of
"need" or because of military service, under any
future Federal legislation amending, superseding,
supplementing, or incorporating the Federal Social
Security Act, as amended, or benefits provided
therein, shall be considered as benefits for age or
disability under the Federal Social Security Act for
purposes of this Program.
91
Gen. Pro., 1(e)(3)
(3) If an employe is eligible for a Federal Social
Security benefit for disability or an unreduced
Federal Social Security benefit for age at the time
of retirement or thereafter, such employe shall
advise the Corporation of the effective date of
entitlement to such benefit.
(f) GENDER
Wherever in this Program a masculine pronoun is used, it shall
be deemed in all instances, where appropriate, to include the
feminine also.
(g) NORMAL RETIREMENT AGE
The normal retirement age for any employe shall be the later
of age 65 or the fifth anniversary of the date the employe
commenced participation in this Program. An employe who shall
cease active service after attaining the normal retirement age
shall be entitled to receive a nonforfeitable retirement
benefit under Article III of Part A, and Section 1 of Articles
II and III of Part B, if applicable.
(h) ACTUARIAL VALUE
The actuarial value as of any determination date shall be
calculated on the basis of the UP-84 mortality table and the
applicable interest rate used by the Pension Benefit Guaranty
Corporation (PBGC) as of the first day of the plan year
preceding the determination date.
92
Gen. Pro., 2
SECTION 2. PAYMENT OF RETIREMENT BENEFITS AND SUPPLEMENTS
(a) (1) Except as otherwise provided in subsection (g) of
this Section 2, retirement benefits and supplements
shall be paid monthly.
(2) Monthly payments of an employe's retirement benefits
other than for total and permanent disability shall
become payable with the employe's consent commencing
on the first day of the month coinciding with or next
following the employe's first day of absence because
of retirement and the benefits shall be payable
monthly thereafter. No such consent shall be
required where the present value of such benefits is
$3,500 or less, as determined in accordance with
I.R.C. Section 411(a)(11).
(3) Total and permanent disability retirement benefits
shall be payable monthly during the continuance of
total and permanent disability and while the retiree
otherwise remains eligible for such benefits. Such
payments shall begin the latest of:
(i) the first day of the month which includes the
date the required proof of disability is
received by the Corporation, or
(ii) the first day of the month which includes the
date the employe has been continuously and
totally disabled for a period of five months,
or
(iii) the first day of the third month following
the date the required proof of disability is
received by the Corporation.
This subsection (iii) shall not be applicable
(a) if the employe dies prior to such date,
or (b) where Extended Disability Benefits are
less than the benefits payable under this
Program.
93
Gen. Pro., 2(a)(3)
Successive periods of absence due to the same
disability as that upon which claim for total and
permanent disability retirement benefits is based and
aggregating at least five months will be considered
the same as one continuous absence provided that the
aggregate will not include any such absence which
precedes the last day at work by more than one year.
(4) Any supplement shall be payable in the manner
provided in Section 7 of Article I of Part A.
(5) Part A benefits and supplementary benefits under Part
B shall not be payable with respect to any period for
which any layoff payments, salary payments, or any
sickness and accident benefits are payable to the
employe by the Corporation or under any plan to which
the Corporation has contributed. For the month in
which the last such layoff payment, salary payment,
or sickness and accident benefit payment is made, the
Part A benefits (excluding any special benefit
payable thereunder) and supplementary benefits under
Part B shall be payable only with respect to that
portion of the month for which no such layoff
payments, salary payments, or sickness and accident
benefits were payable. Any primary benefits payable
under Section 2 of Article I of Part B, and any
special benefit payable under Part A, shall be
payable commencing the first day of the month with
respect to which the initial benefit payment is
payable under Part A.
(b) If a retired employe who is receiving retirement benefits is
reemployed by the Corporation or one of its directly or
indirectly wholly-owned or substantially wholly-owned domestic
subsidiaries, such employe shall cease to receive such
benefits during such reemployment. Such an employe shall
accrue
94
Gen. Pro., 2(b)
additional credited service under this Program or the Program
of the subsidiary where he has been reemployed as a result of
such employment and, if otherwise eligible, shall be permitted
to make contributions. Upon subsequent cessation of active
service, the employe's monthly retirement benefits shall be
adjusted with regard to such employment.
(c) If a retired employe receives a retroactive Social Security
Disability Insurance Benefit (DIB) award resulting from a
Reconsideration or Hearing before an administrative law judge,
the amount of retirement benefits to be repaid will be reduced
by an amount equal to any attorney fees, paid by the retired
employe, associated with the award, provided the retiree makes
such repayment within 30 days of the date, on or after October
1, 1987, he is notified by GM of the amount to be repaid.
This reduction applies only to attorney fees associated with a
successful appeal of a denial of DIB, and includes only that
portion of such fees associated with the period of time the
retired employe was entitled to receive retirement benefits.
Any such reimbursement for any such fees may not exceed 25
percent of the amount of any overpayment as of the first of
the month immediately following the month in which the retiree
is notified by Social Security of his DIB award. Attorney
fees incurred for services received prior to denial of the
initial application for DIB will not reduce the amount of
repayment due.
The above provision is to be coordinated with a similar
provision in the Life and Disability Benefits Program to
ensure the retired employe does not receive credit for more
than the actual amount of eligible attorney fees incurred in
securing the award, and any reduction, as specified above,
first will be taken as a reduction to any overpayment due from
the employe under the Life and Disability Benefits Program.
95
Gen. Pro., 2(d)
(d) In order to retire under this Program, an employe must have
unbroken credited service at the time of his retirement,
except that a person who is eligible for benefits under the
Income Protection Plan and is not receiving deferred
retirement benefits under this Program or the Hourly-Rate
Employes Pension Plan shall not be precluded from retiring
without return to employment, even though he shall have
incurred a break in credited service while on continuous
layoff from the Corporation.
(e) In the event that it shall be found that any retiree,
surviving spouse or contingent annuitant to whom a benefit is
payable is unable to care for his or her affairs because of
illness or accident, any monthly benefit payment and
supplement or survivor benefit due (unless prior claim
therefor shall have been made by a duly qualified guardian or
other legal representative) may be paid to the spouse, parent,
brother, sister, or other person or party (including private
or public institutions) deemed by the Corporation to have
incurred expense for such retiree or survivor otherwise
entitled to payment. Any such payment shall be a payment for
the account of the retiree or survivor and shall be a complete
discharge of any liability of the Program therefor.
(f) Notwithstanding any other provision of this Section 2, an
employe attaining age 70-1/2 on and after January 1, 1988,
will commence monthly receipt of his accrued benefits under
this Program, beginning April 1 of the calendar year
immediately following the year the employe attains or attained
age 70-1/2. No employe shall be eligible to receive any such
payment for any month prior to April, 1990, however, and the
first such monthly payment shall be April 1, 1990. No employe
attaining age 70-1/2 prior to January 1, 1988, shall be
eligible hereunder. An employe attaining age 70-1/2 after
December 31, 1989, shall have his monthly payment based on his
retirement benefit accrual as of December 31 of the year in
which he attains
96
Gen. Pro., 2(f)
age 70-1/2. The actuarial value of the sum of all cash
distributions received by any otherwise eligible employe prior
to his actual retirement under this Program will be used as an
offset from any additional benefit accrual that might
otherwise have been payable to such employe as a result of his
working for the Corporation.
(g) Notwithstanding any other provision of this Section 2, where
the sum of the present value of a former employe's monthly
deferred retirement benefit commencing at age 65 under Part A,
when combined with the present value of any employer provided
monthly deferred retirement benefit commencing at age 65 under
Part B, is $3,500, or less, the total amount of any employer
provided monthly benefit otherwise payable to such former
employe, or to the surviving spouse of such deceased former
employe, will be paid in a single sum. In the case of a
former employe who is not vested in the retirement benefits
described in the preceding sentence, such former employe will
be deemed, upon termination of Program participation, to have
constructively received the total amount of such nonvested
benefit. Where the present value of such benefit is more than
$3,500, an otherwise eligible former employe, or surviving
spouse, will have an option to receive a single-sum payment,
but only with spousal consent, where applicable. Any such
single-sum payment shall be in full and final satisfaction of
any and all benefit entitlement under this Program, and is
irrevocable when paid. Solely for purposes of this subsection
(g), the interest rate to be used in the determination of the
present value of any single sum determined hereunder will be
the Pension Benefit Guaranty Corporation's applicable interest
rates in effect at the beginning of the plan year in which the
single sum is paid. The applicable interest rates shall be
used where the present value of the benefit is not in excess
of $25,000. Where the present value of the benefit based on
applicable interest rates exceeds $25,000, 120% of the
applicable interest rates shall be used, provided the
remaining lump-sum value not be less than $25,000.
97
Gen. Pro., 2(g)
In the event any such former employe who receives a single-sum
payment is subsequently reemployed by the Corporation, he will
be treated as a newly-hired employe, with no entitlement to
the reinstatement of any previous credited service, in
recognition of his earlier receipt of a single-sum payment
representing the present value of the lifetime monthly benefit
otherwise related to all such prior years of service.
Effective October 1, 1989, in lieu of a single-sum payment
which has a present value of more than $3,500, as determined
hereunder, a former employe or surviving spouse may elect to
receive lifetime monthly benefits that are the actuarial
equivalent of such former employe's or surviving spouse's
monthly deferred retirement benefits under Part A and Part B,
if any.
In the event a single-sum payment of $3,500, or less, cannot
be made because the identity or location of the former employe
or surviving spouse cannot be determined after reasonable
efforts to do so have been made, and the payment remains
undeliverable for a period of one year from the date of
mailing of such notification to the last known address of the
former employe, all liability for payment thereof shall
terminate immediately, and the amount of the payment shall be
applied to reduce Corporation contributions to the Program;
provided, however, in the event the identity or location of
the former employe or surviving spouse is subsequently
determined, such payment shall be made in a single sum.
98
Gen. Pro., 3
SECTION 3. DEDUCTIONS FOR WORKERS COMPENSATION
In determining the monthly benefits payable under Part A and any
supplementary benefits payable under Part B of this Program, a
deduction shall be made, unless prohibited by law, equivalent to all
or any part of Workers Compensation (including compromise or
redemption settlements) payable to such employe by reason of any law
of the United States, or any political subdivision thereof, which has
been or shall be enacted, provided that such deductions shall be to
the extent that such Workers Compensation has been provided by
premiums, taxes, or other payments paid by or at the expense of the
Corporation, except that no deduction shall be made for the following:
(a) Workers Compensation payments specifically allocated for
hospitalization or medical expense, fixed statutory payments
for the loss of any bodily member, or 100% loss of use of any
bodily member, or payments for loss of industrial vision.
(b) Compromise or redemption settlements payable prior to the date
monthly retirement benefits first become payable.
SECTION 4. ASSIGNMENTS AND LOANS
(a) No right or interest of any participant or of any beneficiary
of any participant under the Program shall be assignable or
transferable, in whole or in part, either directly or by
operation of law or otherwise, including, but not by way of
limitation, execution, levy, garnishment, attachment, pledge,
bankruptcy or in any other manner, but excluding devolution by
death or mental incompetency, and no right or interest of any
such participant or beneficiary shall be liable for, or
subject to, any obligation or liability of such participant
99
Gen. Pro., 4(a)
or beneficiary except in accord with provisions of a Qualified
Domestic Relations Order within the meaning of I.R.C. Section
414(p); provided, however, that any retired employe or
eligible survivor:
(1) who elects health care coverages or life insurance
made available by General Motors may, insofar as it
is consistent with the regulations governing the
plans providing such coverages, participate in such
coverages and have deducted, pursuant to the retired
employe's or survivor's written authorization and
direction acceptable to the Corporation, the required
contribution for such coverages as it may be
established from time to time,
(2) will have Federal and state income tax withheld
pursuant to Federal and state statutes or regulations
unless, only with respect to Federal income tax,
elected otherwise by submitting to the Corporation
written authorization and direction acceptable to the
Corporation, or
(3) who submits to the Corporation written authorization
and direction acceptable to the Corporation may have
amounts of not less than $40.00 per month, but in no
event more than 10% of the retired employe's monthly
benefit, withheld to repay any outstanding
overpayment owing to any benefit plan of the
Corporation.
(b) An employe may not borrow against his contributions under this
Program at any time.
100
Gen. Pro., 5
SECTION 5. CORPORATION CONTRIBUTIONS
(a) The Corporation intends to pay to the Insurance Companies each
year such contributions as are determined to be required for
the purpose of meeting the cost of primary benefits accrued
prior to January 1, 1985 under Part B, any additional cost of
providing for payment of unreduced primary benefits accrued
prior to January 1, 1985 under Part B prior to age 65, and the
cost of the optional benefits described in Sections 4 and 5 of
Article I of Part B to the extent such optional benefits are
in lieu of, or related to, primary benefits accrued prior to
January 1, 1985 under Part B, to the extent not covered by the
contributions made by the employes prior to January 1, 1985.
(b) While the Corporation does not guarantee to do so, it hopes
and expects to provide, over such period as it may determine,
the cost of the benefits described in Part A, the primary
benefits accrued after December 31, 1984 described in Part B,
to the extent not covered by employe contributions made after
December 31, 1984, and the supplementary benefits described in
Part B (including the optional benefits described in Sections
5, 6, and 9 of Article I of Part A and in Sections 4 and 5 of
Article I of Part B to the extent such optional benefits are
in lieu of, or related to, such benefits), either through
placing funds in a retirement trust or through a contract with
one or more insurance companies, or both. Such funds will
include employe contributions made after January 1, 1985. The
Named Fiduciary may appoint an investment manager or managers,
as defined under the Employee Retirement Income Security Act
of 1974 or regulations thereunder, to manage any assets of the
Program.
101
Gen. Pro., 5(c)
(c) Benefits under Part A, primary benefits accrued after December
31, 1984 under Part B and supplementary benefits under Part B
(including the aforementioned optional benefits) shall be paid
only to the extent that they are provided for by the assets of
such retirement trust or under such contract with one or more
insurance companies, and there shall be no liability or
obligation on the part of the Corporation to make any
contributions to the retirement trust or to the insurance
company or companies. The amounts by which benefits otherwise
payable hereunder are in excess of those provided under the
Program as constituted prior to September 15, 1973 shall not
be paid hereunder if amounts equal to such excess have been
paid directly by the Corporation. No liability for the
payment of benefits under Part A, primary benefits accrued
after December 31, 1984 under Part B or supplementary benefits
under Part B (including the aforementioned optional benefits)
shall be imposed upon the Corporation, the officers,
directors, or stockholders of the Corporation.
(d) The Corporation shall comply with all funding requirements of
the Employee Retirement Income Security Act of 1974 as they
apply to this Program.
(e) The Corporation may charge to the fund expenses necessary for
the proper administration of the Retirement Program and
investment of the funds, including the direct cost of benefit
administration performed by, or on behalf of, the Corporation
for the Retirement Program, the cost of consultant and
actuarial services, and Pension Benefit Guaranty Corporation
premiums for participants.
102
Gen. Pro., 6
SECTION 6. PAYMENT OF CONTRIBUTIONS TO PROVIDE ANNUITIES
(a) Prior to January 1, 1977, contributions of the employes and of
the Corporation for primary benefits (including optional benefits
described in Sections 4 and 5 of Article I of Part B which are in
lieu of, or related to, such primary benefits) were paid over to
the Metropolitan Life Insurance Company, the Aetna Life Insurance
Company, and The Prudential Insurance Company of America as the
considerations for the Corporation's purchase of benefits under
the Group Annuity Contract made with them and effective as of July
1, 1940, and as subsequently amended. Commencing January 1,
1977, the Corporation has made and intends to make contributions
from time to time for addition to and accumulation in an account
to be held by each of the Insurance Companies under the Group
Annuity Contract for providing annuities as described in Section
6(b) below. Such contributions have included contributions made
by employes on and after January 1, 1977 and prior to January 1,
1985.
(b) The annuities which were purchased under the Group Annuity
Contract prior to January 1, 1977 will continue in force on and
after that date, subject to the terms and conditions of the
Group Annuity Contract. When each employe becomes entitled to
receive a primary benefit accrued prior to January 1, 1985 under
Part B, it is the intention of the Corporation to provide an
additional annuity equal to such primary benefit, less any
annuity then in force on the employe's account under the Group
Annuity Contract. Payment of such annuities will be assured by
establishing the appropriate reserves in the account held by each
Insurance Company under the Group Annuity Contract.
103
Gen. Pro., 6(c)
(c) The primary benefits referred to in Part B are those purchased
prior to January 1, 1977 from the Insurance Companies or for
which the appropriate reserves have been established by the
Insurance Companies and which are payable by the Insurance
Companies under the Group Annuity Contract. The Corporation
intends to pay to the Insurance Companies the contributions which
will be accumulated for the purpose of establishing reserves to
provide primary benefits accrued prior to January 1, 1985 when
such benefits are to commence. It is the responsibility of the
Insurance Companies to pay to the employes and the designated
contingent annuitants, surviving spouses, and beneficiaries of
such employes all primary benefits accrued prior to January 1,
1985 resulting from the contributions made by both the employes
and the Corporation for such benefits (including the optional
benefits described in Sections 4 and 5 of Article I of Part B
to the extent such optional benefits are in lieu of, or related
to, primary benefits accrued prior to January 1, 1985 under Part
B) and paid as the considerations for the purchase of such benefits
or allocated by the Insurance Companies as reserves to assure
payment of such benefits.
SECTION 7. AMENDMENT, MODIFICATION, SUSPENSION, OR TERMINATION,
MERGER, CONSOLIDATION, OR TRANSFER OF ASSETS OF PROGRAM
BY CORPORATION
(a) The Corporation reserves the right, by and through its Board of
Directors, to amend, modify, suspend, or terminate the Program in
the future. Absent a written delegation of authority from the
Board of Directors, no one has any authority whatsoever to commit
to the provision of any retirement benefit, or benefit provision,
not otherwise provided expressly under the written terms of this
Program, or to change any eligibility criteria, or any other
provision or criteria of this Program as constituted herein.
104
Gen. Pro., 7(b)(1)
(b) (1) If the Corporation, in accordance with this Section 7, or
the Pension Benefit Guaranty Corporation, partially or
totally terminates the Program, the amount of the assets,
which are available to provide benefits, and which are held
by the trustees and insurance companies as of the
termination date, shall be allocated, after deducting
expenses for administration or liquidation, in the following
manner and order to the extent of the sufficiency of such
assets, and in accordance with any regulations for such
determinations as may be issued by the Pension Benefit
Guaranty Corporation:
(aa) First, to that portion of each individual's accrued benefit
which is derived from the participant's mandatory
contributions.
(bb) Second, in the case of benefits payable as an annuity --
(i) In the case of the benefit of a participant or
beneficiary which was in pay status as of the
beginning of the 3-year period ending on the
termination date of the Program, to each such benefit,
based on the provisions of the Program (as in effect
during the 5-year period ending on such date) under
which such benefit would be the least.
(ii) In the case of a participant's or beneficiary's
benefit (other than a benefit described in subparagraph
(bb)(i) above) which would have been in pay status as
of the beginning of such 3-year period if the
participant had retired prior to the beginning of the
3-year period and if his benefits had commenced (in
the normal form of annuity under the Program) as of
the beginning of such period, to each such benefit
based on the provisions of the Program (as in effect
during the 5-year period ending on such date) under
which such benefit would be the least.
105
Gen. Pro., 7(b)(1)(bb)
For purposes of subparagraph (bb)(i) above, the lowest
benefit in pay status during a 3-year period shall be
considered the benefit in pay status for such period.
(cc) Third, to all other benefits (if any) of individuals
under the Program which are guaranteed under the plan
termination insurance provisions of the Employee Retirement
Income Security Act of 1974 determined without regard to
Section 4022(B)(a) of said Act.
(dd) Fourth, to all other nonforfeitable benefits under the
Program.
(ee) Fifth, to all other benefits under the Program.
(2) (aa) The amount allocated under any of the preceding paragraphs
with respect to any benefit shall be properly adjusted for
any allocation of assets with respect to the benefit under a
prior paragraph of this Section 7.
(bb) If the assets available for allocation under any of
the preceding paragraphs (other than paragraphs
(b)(1)(dd) and (b)(1)(ee)) are insufficient to satisfy in
full the benefits of all individuals which are described in
such paragraphs, the assets shall be allocated pro rata
among such individuals on the basis of the present value
(as of the termination date) of their respective benefits
described in such paragraphs.
106
Gen. Pro., 7(b)(2)(cc)
(cc) If the assets available for allocation under paragraph
(b)(1)(dd) are insufficient to satisfy in full the
benefits of individuals described in that paragraph:
(i) Except as provided in subparagraph (b)(2)(cc)(ii)
below, the assets shall be allocated to the
benefits of individuals described in paragraph
(b)(1)(dd) on the basis of the benefits of
individuals which would have been described in such
paragraph (b)(1)(dd) under the Program as in effect at
the beginning of the 5-year period ending on the date
of the Program's termination.
(ii) If the assets available for allocation under
subparagraph (b)(2)(cc)(i) above are sufficient
to satisfy in full the benefits described in such
subparagraph (without regard to this subparagraph),
then for purposes of subparagraph (b)(2)(cc)(i),
benefits of individuals described in such subparagraph
shall be determined on the basis of the Program as
amended by the most recent Program amendment effective
during such 5-year period under which the assets
available for allocation are sufficient to satisfy in
full the benefits of individuals described in
subparagraph (b)(2)(cc)(i) and any assets remaining
to be allocated under such subparagraph shall be
allocated under subparagraph (b)(2)(cc)(i) on the
basis of the Program as amended by the next succeeding
Program amendment effective during such period.
107
Gen. Pro., 7(b)(3)
(3) In the event of any termination or partial termination of the
Program, the right of all affected employes to benefits accrued
to the date of such termination or partial termination, to the
extent funded as of such date, is nonforfeitable.
(4) If any assets of the Program attributable to employe contributions
remain after all liabilities of the Program to participants and
their beneficiaries have been satisfied, such assets shall be
equitably distributed to the employes who made such contributions
(or their beneficiaries) in accordance with their rate of
contributions. Any residual assets of the Program may be
distributed to the Corporation if all liabilities of the Program to
participants and their beneficiaries have been satisfied.
(5) For purposes of this Section 7(b), the term "mandatory
contributions" shall mean amounts contributed to the Program
by a participant which are required as a condition of
participation in the Program, or as a condition of obtaining
benefits under the Program attributable to employer
contributions. For this purpose, the total amount of mandatory
contributions of a participant is the amount of such contributions
reduced (but not below zero) by the sum of the amounts paid or
distributed to him under the Program before its termination.
(6) If the Secretary of the Treasury determines that the
allocation made pursuant to this Section 7 results in
discrimination prohibited by Section 401(a)(4) of the Internal
Revenue Code of 1986, or as it may be subsequently amended, then,
if required to prevent the disqualification of the Program (or
any trust under the Program) under Section 401(a) or 403(a) of
such Code, the assets allocated shall be reallocated to the extent
necessary to avoid such discrimination.
108
Gen. Pro., 7(c)
(c) In the event of any merger or consolidation with, or
transfer of assets or liabilities to, any other plan or
program, each participant in the Program would, if the
Program then terminated, receive a benefit immediately
after the merger, consolidation, or transfer which is at
least equal to the benefit such participant would have
been entitled to receive immediately before the merger,
consolidation, or transfer, if the Program had then
terminated.
SECTION 8. GENERAL MOTORS SALARIED EMPLOYES IN PUERTO RICO
Prior to September 30, 1990, General Motors salaried employes in
Puerto Rico were able to contribute and accrue benefits under the
General Motors Retirement Program for Salaried Employes in Puerto
Rico, subject to the terms and conditions therein prescribed.
Effective October 1, 1990, such Program, as well as all funds related
to it, was merged with this Program. Any benefits accrued under such
Program prior to October 1, 1990, will be paid from this Program.
Effective October 1, 1990, salaried employes in Puerto Rico are covered
by the terms and conditions of this Program, except as otherwise may be
provided with respect to those provisions set forth in Appendix C.
SECTION 9. NON-DUPLICATION OF BENEFITS
Except as provided in Section 6 of Article II of Part A, no employe of
General Motors Corporation or of its said subsidiaries eligible to accrue
benefits under this Program will be eligible to accrue benefits under
any separate plan, nor will any employe, while accruing benefits under
any one plan, be eligible to accrue benefits under any other retirement
or pension plan.
109
Gen. Pro., 10
SECTION 10. PARTICIPATION IN PROGRAM BY EMPLOYES COMPENSATED
WHOLLY OR IN PART ON A COMMISSION BASIS
The provisions set forth in this Section 10 shall be applicable,
notwithstanding any other provision of this Program, to employes who are
compensated wholly on a commission basis and to employes compensated on
a salaried basis but who have periods of employment either prior to or
subsequent to such employment on a salaried basis when compensated
wholly or in part on a commission basis, subject to the reservation
and limitation, however, set forth in the immediately following
sentence. Such provisions shall not be applicable to employes
compensated wholly or in part on a commission basis who are represented
by a labor organization unless such provisions are made applicable to
such employes through understandings between the Corporation and their
collective bargaining representatives.
(a) PART A BENEFITS AND SUPPLEMENTARY BENEFITS UNDER PART B
For purposes of Part A benefits and supplementary benefits under
Part B, credited service of any employe to whom this Section 10
applies shall include periods of employment (and related periods
of absence), when compensated wholly or in part on a commission
basis, provided such periods would otherwise be included in the
determination of credited service under Article II of Part A. For
any employe to whom this Section 10 applies, average monthly base
salary for purposes of Part A benefits and supplementary benefits
under Part B (or base salary for purposes of the computation under
Section 7(g) of Article I of Part A) shall be determined on the
basis of such employe's Annual Earnings Base, as defined below, in
lieu of base salary, for any period included in the computation
during which such employe was compensated wholly or in part on a
commission basis.
110
Gen. Pro., 10(b)
(b) PRIMARY BENEFITS UNDER PART B
For purposes of primary benefits under Part B, any employe to whom
this Section 10 applies shall be eligible to contribute for such
benefits on the basis of such employe's Annual Earnings Base, as
defined below, in lieu of base salary, provided such employe would
otherwise be eligible to so contribute in accordance with the
conditions specified in Section 1(a) of Article I of Part B;
however, for purposes of meeting the service requirement of such
Section 1(a), a period of employment (and related periods of
absence) while compensated wholly or in part on a commission basis
may be taken into account.
(c) ANNUAL EARNINGS BASE
The Annual Earnings Base referred to in this Section 10 shall be
the annual amount, or a pro rata portion thereof with respect to
any period of less than one year, as established for any year
for an employe to whom this Section 10 applies under rules to be
determined from time to time by the Named Fiduciary or its
delegate.
(d) BENEFIT CLASS CODE
For purposes of determining the basic benefit rate under Part
A, the Benefit Class Code applicable to a position held by the
employe to whom this Section 10 applies shall be the Benefit Class
Code "D".
(e) OTHER PROVISIONS
The Named Fiduciary or its delegate shall adopt, from time to
time, other rules to carry out the provisions of this Section 10
in conformity with the objectives of this Program.
111
Gen. Pro., 11
SECTION 11. TREATMENT OF CERTAIN EMPLOYES UNDER LIMITED EARLY
RETIREMENT PROVISIONS AND PRIOR PROGRAM PROVISIONS
Effective September 30, 1987, solely to comply with applicable Federal
law, the following consent-type retirements were eliminated: (i)
Corporation option, (ii) special, (iii) mutually satisfactory, and (iv)
early mutual.
(a) LIMITED EARLY RETIREMENT PROVISIONS
Effective October 1, 1987, pursuant to authority granted by the
Corporation's Board of Directors to the Corporation's Management
Committee, such Committee may, from time-to-time and in its sole
discretion, adopt limited early retirement provisions to provide
retirements (i) during a specified period of time, (ii) at a
specified level of benefits, and (iii) for identified salaried
employes. Any such early retirement provisions that may be
adopted by the Corporation in compliance with the authority
granted earlier by its Board of Directors, are made a part of this
Program as though set out fully herein.
(b) PROVISIONS OF PAST PROGRAMS TO HONOR PRIOR COMMITMENTS
To implement various commitments made, prior to October 1, 1987,
by the Corporation to certain otherwise eligible employes with
respect to the availability to each of them of unreduced
retirement benefits commencing as early as their attainment of
age 55, Program provisions in effect at the time such commitments
were made shall continue to apply to such employes.
The provision immediately above is limited in applicability solely
to otherwise eligible employes from the following units, and any
special conditions relevant to the Corporation commitment to each
such group of employes are shown:
112
Gen. Pro., 11(b)(1)
(1) Employes who were working at facilities which had been announced,
as of August 31, 1987, to be closed or phased-out, as follows:
[Download Table]
Division/Unit Facilities
------------- ----------
Buick-Oldsmobile-Cadillac Cadillac
Chicago
Fleetwood
Flint Body Assembly
Wentzville*
Central Foundry Massena
Pontiac
Saginaw Nodular
Chevrolet-Pontiac-Canada Detroit (Plant #37)
Hamilton
Norwood
Pontiac (G Car)
Detroit Diesel Allison Redford
Romulus
Fisher Guide Elyria
Fort Street
Harrison Buffalo
Inland Livonia
Tecumseh
New Departure-Hyatt Bristol
*Related to St. Louis Truck & Bus closing.
(CONTINUED ON NEXT PAGE)
113
Gen. Pro., 11(b)(1)
(CONTINUED FROM PRECEDING PAGE)
[Download Table]
Division/Unit Facilities
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Service Parts Operations Baltimore
Bethpage
Buffalo
Burton
Cleveland
Columbus
Dallas
Dallas AC/Delco
Dallas T & C
Houston
LaMirada
Memphis T & C
Newark T & C
New York
North Brunswick AC
Pittsburgh
Pittsburgh T & C
Romulus
Truck & Bus Flint Assembly (Line One)
Pontiac Central Plants
(Heavy & Medium Duty
Trucks & Coach)
St. Louis
(2) Otherwise eligible employes who are absent at date of retirement
from any unit due to layoff which commenced prior to October 1,
1987, whose age plus credited service totaled 55 or more on the
date of layoff .
(3) Otherwise eligible employes for whom credited service has been
continued as a result of such things as (i) the sale of
operations, (ii) a joint venture, or (iii) other similar-type
transactions, such as acquisitions and mergers, as specifically
set forth in Section 12 of General Provisions.
114
Gen. Pro., 12
SECTION 12. TREATMENT OF CERTAIN EMPLOYES OF
(a) TEREX DIVISION
Notwithstanding any other provision of this Program, in
connection with the sale of Terex Division of the Corporation
to IBH, termination of employment with General Motors Corporation,
other than by death or retirement, shall not be considered a
termination of employment for purposes of this Program with
respect to an employe (i) who on December 31, 1980 was age 40 or
over and had 10 or more years of credited service and whose years
of age plus credited service totaled 55 or more, and (ii) whose
termination of employment with General Motors Corporation occurs
after such employe has been employed by IBH through:
(1) December 31, 1985, or
(2) December 31, 1982, and is terminated by IBH other than as a
discharge (for cause).
(b) GM BUILDING DIVISION/NEW YORK
Notwithstanding any other provision of this Program, in connection
with the transfer of operation of the New York General Motors
Building to Corporate Property Investors, Inc. (CPI),
termination of employment with General Motors Corporation, other
than by death or retirement, shall not be considered a
termination of employment for purposes of this Program with
respect to an employe (i) who on February 28, 1982 had 10 or more
years of credited service and whose years of age plus credited
service totaled 55 or
115
Gen. Pro., 12(b)
more, and (ii) whose termination of employment with General Motors
Corporation occurs after such employe has been employed by CPI
through:
(1) February 28, 1987, or
(2) February 28, 1984, and is terminated by CPI other than as a
discharge (for cause).
For any month in which such employe is employed by CPI, or any
other employer, an employe to whom this Section 12(b) applies who
retires under this Program, shall not be entitled to receive the
temporary benefit that otherwise may be payable under Part A of
this Program.
(c) GENERAL MOTORS INSTITUTE
Notwithstanding any other provision of this Program, in
connection with the reorganization of General Motors Institute
from a subsidiary of General Motors Corporation to an independent
educational facility operated by a successor organization,
termination of employment with General Motors Institute, other than
by death or retirement, shall not be considered a termination of
employment for purposes of this Program until credited service
otherwise breaks under Article II, Section 3(d) of Part A with
respect to an employe (i) who on June 30, 1982 had 10 or more
years of credited service, and (ii) whose termination of
employment with General Motors Institute occurs after such employe
has been employed by the successor organization through:
(1) June 30, 1985, or
(2) a date prior to June 30, 1985, and is terminated by the
successor organization other than as a discharge (for cause).
116
Gen. Pro., 12(c)
The immediately preceding paragraph notwithstanding, termination
of employment with General Motors Institute, other than by death
or retirement, by any employe whose credited service otherwise
would have broken between ages 55 and 60, in accordance with
Article II, Section 3(d) of Part A, shall not be considered a
termination of employment for purposes of this Program until (i)
age 60, or (ii) if earlier, the commencement of monthly benefits
hereunder, at which time credited service shall be broken for
all such employes.
(d) DELCO ELECTRONICS DIVISION
Notwithstanding any other provision of this Program, an employe
who at the request of the Corporation terminated employment with
Delco Electronics Division to accept employment with Tau
Laboratories shall not be considered a termination of
employment for purposes of this Program provided such employe (i)
on his last day worked for Delco Electronics Division had 10 or
more years of credited service and his age plus credited service
totaled 55 or more, and (ii) he remained employed by Tau
Laboratories through:
(1) December 31, 1987, or
(2) December 31, 1984, and is terminated by Tau Laboratories
other than as a discharge (for cause).
For any month in which such employe is employed by Tau
Laboratories, or any other employer, an employe to whom this
Section 12(d) applies who was under age 54 on his last day worked
for Delco Electronics Division and who subsequently retires under
this Program shall not be entitled to receive the temporary benefit
that otherwise may be payable under Part A of this Program.
117
Gen. Pro., 12(e)
(e) GM FANUC ROBOTICS CORPORATION
Notwithstanding any other provision of this Program, in
connection with the formation of GM Fanuc Robotics Corporation
(GMF), a joint venture between General Motors Corporation and
Fujitsu Fanuc Ltd., termination of employment with General Motors
Corporation, other than by death or retirement, shall not be
considered a termination of employment for purposes of this Program
with respect to an employe (i) who on June 30, 1985, had 10 or
more years of credited service and whose years of age plus
credited service totaled 55 or more, and (ii) whose termination of
employment with General Motors Corporation occurs after such
employe has been employed by GMF through:
(1) June 30, 1985, or
(2) a date prior to June 30, 1985, and is terminated by GMF other
than as a discharge (for cause).
(f) GENERAL MOTORS BALANCE ENGINEERING OPERATION
Notwithstanding any other provision of this Program, in connection
with the sale of GM's Balance Engineering Operation to Balance
Engineering Company, termination of employment with General
Motors Corporation, other than by death or retirement, shall not
be considered a termination of employment for purposes of this
Program with respect to an employe (i) who on January 31, 1987 had
10 or more years of credited service and whose years of age plus
credited service totaled 55 or more, and (ii) whose termination
of employment with General Motors Corporation occurs after such
employe has been employed by the Balance Engineering Company
through:
118
Gen. Pro., 12(f)(1)
(1) January 31, 1990, or
(2) a date prior to January 31, 1990, and is terminated by the
Balance Engineering Company other than as a discharge (for
cause).
(g) SAGINAW DIVISION'S ACTUATOR PRODUCTS GROUP
Notwithstanding any other provision of this Program, in connection
with the sale of Saginaw Division's Actuator Products Group to
Thomson Industries, Inc., termination of employment with General
Motors Corporation, other than by death or retirement, shall not
be considered a termination of employment for purposes of this
Program with respect to an employe (i) who on April 30, 1987 had
10 or more years of credited service and whose years of age plus
credited service totaled 55 or more, and (ii) whose termination
of employment with General Motors Corporation occurs after such
employe has been employed by Thomson Industries, Inc., through:
(1) April 30, 1990, or
(2) a date prior to April 30, 1990, and is terminated by Thomson
Industries, Inc., other than as a discharge (for cause).
119
Gen. Pro., 12(h)
(h) GENERAL MOTORS INDUSTRIAL CLEANING TECHNOLOGY CENTER
Notwithstanding any other provision of this Program, in
connection with the joint venture between General Motors
Industrial Cleaning Technology Center (ICTC) and ARA Services,
Inc., (ARA), termination of employment with General Motors
Corporation, other than by death or retirement, shall not be
considered a termination of employment for purposes of this
Program with respect to an employe (i) who on December 31, 1986,
had 10 or more years of credited service and whose years of age
plus credited service totaled 55 or more, and (ii) whose
termination of employment with General Motors Corporation occurs
after such employe has been employed by the GM ICTC-ARA Joint
Venture through:
(1) December 31, 1989, or
(2) a date prior to December 31, 1989, and is terminated by the
GM ICTC-ARA Joint Venture other than as a discharge (for
cause).
(i) TRUCK & BUS GROUP
Notwithstanding any other provision of this Program, in
connection with the heavy duty truck joint venture between
the Corporation's Truck & Bus Group and Volvo-White, termination
of employment with General Motors Corporation, other than by death
or retirement, shall not be considered a termination of employment
for purposes of this Program with respect to an employe (i) who on
August 31, 1987, had 10 or more years of credited service and whose
years of age plus credited service totaled 55 or more, and (ii)
whose termination of employment with General Motors Corporation
occurs after such employe has been employed by the heavy duty
truck joint
120
Gen. Pro., 12(i)
venture between the Corporation's Truck & Bus Group and Volvo-White
through:
(1) August 31, 1990, or
(2) a date prior to August 31, 1990, and is terminated by the
GMC Truck & Bus Group - Volvo-White Heavy Duty Truck Joint
Venture other than as a discharge (for cause).
(j) MARKETING EDUCATIONAL SERVICES ACTIVITY OF THE CUSTOMER SALES AND
SERVICE STAFF
Notwithstanding any other provision of this Program, in
connection with the divestiture of GM's Marketing Educational
Services Activity of the Customer Sales and Service Staff to Sandy
Corporation, termination of employment with General Motors
Corporation, other than by death or retirement, shall not be
considered a termination of employment for purposes of this
Program with respect to an employe (i) who on August 31, 1987,
had 10 or more years of credited service and whose years of age
plus credited service totaled 55 or more, and (ii) whose
termination of employment with General Motors Corporation occurs
after such employe has been employed by the Sandy Corporation
through:
(1) August 31, 1990, or
(2) a date prior to August 31, 1990, and is terminated by the
Sandy Corporation other than as a discharge (for cause).
121
Gen. Pro., 12(k)
(k) DETROIT DIESEL ALLISON DIVISION
Notwithstanding any other provision of this Program, in
connection with the formation of Detroit Diesel Corporation (DDC),
a joint venture between the Detroit Diesel Allison Division and the
Penske Corporation, Inc., an employe who accepts employment with
DDC has been placed on a special leave of absence for up to three
years. During the three-year period which commenced January 1,
1988, any such employe will (i) participate in the DDC Pension Plan,
(ii) not be eligible to accrue credited service under Part A or
continuous service under Part B, and (iii) not be eligible to
contribute under Part B.
All of the Program assets attributable to any Part A and Part B
benefits accrued by any such employe who accepts employment at DDC
have been transferred to DDC. As a result of such transfer of
assets, all prior benefit entitlement, of whatever nature, ceased
hereunder on the date of such transfer, and the total
responsibility and liability therefore has been assumed by DDC,
which has assumed concurrently the sole responsibility to provide
entirely for any retirement benefit entitlement of any such
employe. In the event that any such employe (i) is terminated
by DDC other than for cause, (ii) retires from the Corporation,
or (iii) is reemployed by the Corporation, all within the three
year special leave of absence period, the Corporation will be
responsible for any Part A and Part B benefits which accrued
to any such terminating employe prior to his acceptance of
employment at DDC, concurrent with receipt by the Trustee of
this Program of the full amount of Program assets attributable
to any such rehired employe from DDC. The Sales Agreement
executed earlier between the parties provides that DDC will remain
liable under its pension plan for any benefits attributable to such
a rehired employe's service at DDC during any employment period at
DDC.
122
Gen. Pro., 12(k)
In view of the prior transfer of assets to DDC representing the
full and fair value of any accrued benefit entitlement under this
Program at date of such transfer, in the event that any such
employe who accepts employment at DDC is reemployed by the
Corporation after (i) expiration of the three year leave of
absence period, or (ii) he voluntarily terminates his employment
at DDC within the three year leave of absence period, he will be
treated under this Program as a newly-hired employe, with no
entitlement to any benefits or credited service related to all
such prior participation hereunder.
(l) AC ROCHESTER PRODUCTS DIVISION
Notwithstanding any other provision of this Program, in connection
with the sale of the fuel injection business of the AC Rochester
Products Division, Grand Rapids, to Penske Transportation, Inc.,
and Detroit Diesel Corporation, hereinafter referred to as Diesel
Technology Corporation (DTC), an employe who accepts employment
with DTC has been placed on a special leave of absence for up to
three years. During the three-year period which commenced
November 1, 1988, any such employe will (i) participate in the
DTC Pension Plan, (ii) not be eligible to accrue credited service
under Part A or continuous service under Part B, and (iii) not
be eligible to contribute under Part B.
All of the Program assets attributable to any Part A and Part B
benefits accrued by any such employe who accepts employment at DTC
have been transferred to DTC. As a result of such transfer of
assets, all prior benefit entitlement, of whatever nature, ceased
hereunder on the date of such transfer, and the total
responsibility and liability therefore has been assumed by DTC,
which has assumed concurrently the sole responsibility to provide
entirely for any retirement benefit entitlement of any such
employe. In the
123
Gen. Pro., 12(l)
event that any such employe (i) is terminated by DTC other
than for cause, (ii) retires from the Corporation, or (iii) is
reemployed by the Corporation, all within the three year special
leave of absence period, the Corporation will be responsible for
any Part A and Part B benefits which accrued to any such
terminating employe prior to his acceptance of employment at
DTC, concurrent with receipt by the Trustee of this Program of
the full amount of Program assets attributable to any such
rehired employe from DTC. The Sales Agreement executed earlier
between the parties provides that DTC will remain liable under its
pension plan for any benefits attributable to such a rehired
employe's service at DTC during any employment period at DTC.
In view of the prior transfer of assets to DTC representing the
full and fair value of any accrued benefit entitlement under this
Program at date of such transfer, in the event that any such
employe who accepts employment at DTC is reemployed by the
Corporation after (i) expiration of the three year leave of absence
period, or (ii) he voluntarily terminates his employment at DTC
within the three year leave of absence period, he will be treated
under this Program as a newly-hired employe, with no entitlement
to any benefits or credited service related to all such prior
participation hereunder.
124
Gen. Pro., 12(m)
(m) HYDRA-MATIC DIVISION (MUNCIE PLANT)
Notwithstanding any other provision of this Program, in connection
with the joint venture between the Hydra-Matic Division's Muncie
Plant and Acustar's New Process Gear operations, termination of
employment with General Motors Corporation, other than by death or
retirement, shall not be considered a termination of employment
for purposes of this Program with respect to an employe (i) who on
March 31, 1990, had 10 or more years of credited service and whose
years of age plus credited service totaled 55 or more, and (ii)
whose termination of employment with General Motors Corporation
occurs after such employe has been employed by the Hydra-Matic
Acustar Joint Venture through:
(1) March 31, 1993, or
(2) a date prior to March 31, 1993, and is terminated by the
Hydra-Matic Acustar Joint Venture other than as a discharge
(for cause).
Notwithstanding the above, the benefits payable under this Program
to an employe who transfers to such joint venture will be based on
the benefits which such employe had accrued under this Program
at April 1, 1990, or the date such employe transfers to such
joint venture, if later.
125
Gen. Pro., 13
SECTION 13. TREATMENT OF CERTAIN EMPLOYES OF
(A) ELECTRONIC DATA SYSTEMS (EDS)
(1) In connection with the transition of certain General Motors
employes to EDS, the provisions of Part A, Article II,
Section 3, which otherwise serve to break credited service
under such circumstances, will not apply to any such
transitioning employe who has 10 or more years of credited
service on his last day worked prior to such transition.
However, no additional credited service shall accrue under
this Program for any such transitioning employe.
(2) Each transitioned employe who on the date of transfer to
EDS had completed less than 30 years of credited service,
or whose years of age and years of credited service totaled
less than 85, and who thereafter retires (a) prior to
attaining age 62 and one month with 30 or more years of
combined service with GM and EDS, or (b) between ages 55
and 61 and the total of whose years of age and years of
combined service with GM and EDS equals or exceeds 85,
shall be entitled to receive the following described
benefits, while otherwise eligible:
(a) With respect to any monthly payment falling due prior
to attainment of age 62 and one month, at which time
any such benefit shall cease to be payable, a monthly
Subsidized Early Retirement Benefit, defined as an
amount equal to the Part A normal retirement benefit,
based upon credited service under this Program as of
the earlier of the date of transfer or March 1, 1989,
and the basic benefit rate in effect on March 1, 1989,
actuarially reduced from age 62, in accordance with
Part A, Article I,
126
Gen. Pro., 13(a)(2)(a)
Section 2(b)(2)(i). Such Subsidized Early Retirement
Benefit is reduced by the sum of the following monthly
amounts, each of which shall include any
post-retirement increases granted on benefits accrued
both prior to and subsequent to March 1, 1989:
(i) any Part A basic benefit determined without
regard to this section,
(ii) any Part B benefits accrued after March 1, 1989,
and
(iii) any benefit payable under the EDS Retirement plan
attributable to benefit accruals after
March 1, 1989.
(b) Upon attainment of age 62 and one month, a monthly
Minimum Guaranteed Benefit Amount, determined by
multiplying the credited service under this Program as
of the earlier of the date of transfer or March 1,
1989 by the Part A basic benefit rate in effect on
March 1, 1989, reduced by the sum of the following
monthly amounts, each of which shall include any
post-retirement increases granted on benefits accrued
both prior to and subsequent to March 1, 1989:
(i) any Part A basic benefit determined without
regard to this section,
(ii) any Part B benefits accrued after March 1, 1989,
(iii) any benefit payable under the EDS Retirement Plan
attributable to benefit accruals after
March 1, 1989, and
127
Gen. Pro., 13(a)(2)(b)(iv)
(iv) the total of retirement offsets described in
subsections 2(a)(i), (ii) and (iii) above for any
month prior to the attainment of age 62 and one
month, to the extent such offsets exceed the
amount of the Subsidized Early Retirement
Benefit. Any such excess shall be expressed as a
life annuity commencing at age 62 and one month.
(3) Each transitioned employe who on the date of transfer to EDS had
completed less than 30 years of credited service, and who
thereafter retires prior to age 62 and one month with 30 or more
years of combined service with GM and EDS, shall be entitled to
receive, if otherwise eligible, with respect to any monthly
payment falling due prior to attainment of age 62 and one month,
at which time any such benefit shall cease to be payable, a
monthly Incremental Benefit, as defined hereafter. The
Incremental Benefit shall be $1,400.00, multiplied by the
Service Factor, as defined hereafter, and reduced by the sum of
the following monthly amounts, subsections (b) and (c) of which
shall include any post-retirement increases:
(a) the Subsidized Early Retirement Benefit,
(b) the Part B supplementary benefit, and
(c) the maximum primary Federal Social Security Benefit payable
unreduced because of age.
The Service Factor is a fraction, the numerator of which is
years of credited service under this Program as of the earlier
of the date of transfer to EDS, or March 1, 1989, and the
denominator of which is 30.
128
Gen. Pro., 13(a)(4)
(4) In determining the amount of any benefit payable under the EDS
Retirement Plan attributable to benefit accruals after March 1,
1989, as may be necessary under subsections 2(a)(iii) and
(2)(b)(iii) above, in the event the EDS Retirement Plan fails to
provide such benefit entitlement, any such reduction in benefits
will be deemed to reduce benefits accrued after March 1, 1989,
before reducing the benefits accrued prior to such date.
(5) Payment under this section, if any, shall be made without regard
to whether an otherwise eligible transitioned employe retires
before, on, or after March 1, 1989.
(6) For purposes of determining any benefits payable under
subsections 2(a)(iii), 2(b)(iii), 2(b)(iv) and paragraph 3 of
subsection (a), the basis for actuarial equivalence shall be the
1984 Unisex Pension Mortality Table and eight percent interest.
(7) Notwithstanding the provisions of this Program defining
Eligibility For Retirement, any separation from EDS prior to
attainment of age 55, on or after February 1, 1990, by a
transitioning employe with thirty or more years of combined
service with GM and EDS, will be considered a retirement under
this Program, with benefits payable commencing the first of the
month following the date of such separation. Any benefits that
may be payable hereunder to such an employe will be based solely
upon GM credited service, and will be calculated in accordance
with all of the applicable provisions of this Program. For an
eligible transitioned employe separated (i) from EDS prior to
February 1, 1990, with thirty or more years of combined service
with GM and EDS, and (ii) prior to age 55, benefits will be
payable commencing the first of the
129
Gen. Pro., 13(a)(7)
month following the date of such separation. In any such case,
the monthly amount of Subsidized Early Retirement Benefit, the
Minimum Guaranteed Benefit Amount, and the Incremental Benefit
would be based upon benefit rates in effect at the earlier of
(i) the date of separation, or (ii) March 1, 1989.
(B) HUGHES AIRCRAFT
(1) In connection with the transfer of certain General Motors
employes to Hughes Aircraft, the provisions of Part A, Article
II, Section 3, which otherwise serve to break credited service
under such circumstances, will not apply to any such
transferring employe. However, no additional credited service
shall accrue under this Program for any such transferring
employe for any period while an employe of Hughes Aircraft.
(2) Notwithstanding any other provision of this Program, the
provisions set forth in subparagraphs (2) through (7) of Section
13(a) of the General Provisions immediately above shall likewise
apply to any General Motors employe who transfers to Hughes
Aircraft. In any such case, the term Hughes Aircraft will be
substituted for EDS wherever applicable.
130
Gen. Pro., 14
SECTION 14. TREATMENT OF CERTAIN EMPLOYES
(A) WHO PARTICIPATE IN THE PRESIDENT'S
EXECUTIVE INTERCHANGE PROGRAM
Notwithstanding any other provision of this Program, an employe who
is on an approved special leave of absence in order to participate in
the President's Executive Interchange Program (or a program
comparable in scope and effect as determined by the Corporation)
shall be eligible to participate in this Program during the period of
such leave of absence. Such employe shall be granted credited
service under Part A and continuous service under Part B of this
Program for the period of such leave and shall be eligible to
contribute under Part B of this Program on the basis of his base
salary rate in effect on his last day of work preceding such absence.
For purposes of determining "average monthly base salary", the
monthly base salary rate in effect immediately preceding such leave
of absence shall be used for any month of such leave during the 60
months immediately preceding termination of employment.
(B) WHO RETURN TO THE SERVICE OF THE CORPORATION
AFTER GOVERNMENT SERVICE
Notwithstanding the provisions of the definition of "Continuous
Service" in Section 1 of these General Provisions and the credited
service provisions of Article II of Part A, the continuous service or
the credited service of an employe who left or leaves the service of
the Corporation or one of its subsidiaries without an approved leave
of absence to accept employment with the Government of the United
States or with the Government of Canada, or with a governmental
agency of either of said governments, and who returned or returns to
the service of the Corporation or one of its subsidiaries
131
Gen. Pro., 14(b)
as his first employment following such government employment, shall
not be broken. In no event, however, shall the period during which
such employe is absent from service because of such government
employment be included in the calculation of the amount of continuous
service or credited service.
(C) WHO ARE EMPLOYED BY FOREIGN BUSINESS ENTITIES IN WHICH
THE CORPORATION HAS A SUBSTANTIAL OWNERSHIP INTEREST
Notwithstanding any other provision of this Program, an employe who
at the request of the Corporation accepts an assignment with a
foreign business entity in which the Corporation has a substantial
ownership interest shall be eligible to participate in this Program
during the period of such assignment. Such employe shall be granted
credited service under Part A and continuous service under Part B of
this Program for the period of such assignment and shall be eligible
to contribute under Part B of this Program for the period of such
assignment and shall be eligible to contribute under Part B of this
Program on the basis of his base salary rate that would otherwise be
in effect in the absence of such assignment. Such salary also shall
be used for purposes of determining "average monthly base salary" for
any month of such assignment during the 60 months immediately
preceding termination of employment.
SECTION 15. SALARIED EMPLOYES WHO ARE TRANSFERRED TO THE HOURLY ROLLS
A salaried employe who is transferred to the hourly rolls, and within 6
months of such transfer breaks credited service, shall be eligible to
receive benefits under this Program, but shall not be eligible to receive
retirement benefits under the provisions of the "General Motors
Hourly-Rate Employes Pension Plan".
132
Gen. Pro., 16
SECTION 16. NAMED FIDUCIARY
The Finance Committee of the Corporation's Board of Directors shall be the
Named Fiduciary with respect to this Program. The Finance Committee may
delegate to various officers, employes and committees of the Corporation
authority to carry out such of its responsibilities as it deems
appropriate in order to carry out the proper and effective administration
of this Program.
SECTION 17. PLAN ADMINISTRATOR AND APPEAL PROCEDURE
General Motors Corporation shall be the Plan Administrator. The
Administrator will provide adequate and timely notice in writing to any
participant or beneficiary whose claim for benefits under the Program is
denied, setting forth the specific reasons for such denial. Any denied
claim may be appealed to the Plan Administrator. The request must be made
in writing.
The participant or beneficiary will be given an opportunity for a full and
fair review by the Named Fiduciary or its delegate of the decision of the
Plan Administrator denying the claim. If a participant or beneficiary is
not satisfied with the decision of the Plan Administrator, an appeal may
be filed with the Employe Benefit Plans Committee (EBPC), which has been
delegated the authority necessary to construe, interpret, and administer
the Program. Such an appeal must be filed in writing within sixty (60)
days from the date of the notice from the Plan Administrator denying a
claim for benefits under the Program. The decision of the EBPC shall be
final and binding upon the Corporation and the participant or beneficiary.
133
Gen. Pro., 18
SECTION 18. CERTAIN PROVISIONS REQUIRED TO COMPLY
WITH SECTION 415 OF THE INTERNAL REVENUE CODE
(a) For purposes of this section, the term "Annual Addition" shall mean
the sum, for any Limitation Year, of Corporation contributions and
forfeitures allocated to an employe's account under all defined
contribution plans or programs plus any employe contributions to such
plans or programs and this Program.
(b) For purposes of this section, the term "Limitation Year" shall mean
the twelve month period beginning on December 31 and ending the
following December 30.
(c) For purposes of this section, all defined benefit plans or programs
of the Corporation will be treated as one defined benefit plan or
program and all defined contributions plans or programs will be
treated as one defined contribution plan or program.
(d) For purposes of this section, the term "Compensation" shall mean an
employe's compensation as defined under Section 415(c)(3) of the
Internal Revenue Code and regulations thereunder.
(e) DEFINED CONTRIBUTION PLAN LIMITATION
In no event shall the sum of an employe's Annual Additions exceed the
lesser of $30,000 (or such other amount prescribed by the Secretary
of the Treasury applicable to the Limitation Year) or 25% of such
employe's Compensation for any Limitation Year.
134
Gen. Pro., 18(f)
(F) DEFINED BENEFIT PLAN LIMITATIONS
(1) An employe's annual benefit under the Program (excluding any
benefits attributable to employe contributions) during any
Limitation Year shall not exceed the lesser of (i) 100% of the
employe's average Compensation during his three consecutive
highest paid years of service with the Corporation, or (ii) the
employe's accrued benefit (prior to the application of the
overall limitation of subsection (g)) (aa) for Limitation Years
beginning prior to December 31, 1983, or (bb) for Limitation
Years beginning prior to December 31, 1987, or (cc) $90,000 for
Limitation Years beginning on or after December 31, 1987, or
such other amount prescribed by the Secretary of the Treasury
applicable to the Limitation Year. As a result of an increased
amount prescribed by the Secretary, an annual benefit limited by
this provision in a prior year may be increased with respect to
future payments to the lesser of the increased amount or the
employe's annual benefit without regard to this provision.
(2) Annual benefits will be tested on the basis of an actuarially
equivalent straight life annuity on the employe's life ignoring
benefits not directly related to retirement income or death
benefits payable prior to retirement and also ignoring benefits
payable to the surviving spouse of a retired employe. In the
event that benefits commence before the employe's Social
Security retirement age, the dollar limitation under section
18(f)(1)(ii) shall be adjusted so that it is the actuarial
equivalent of an annual benefit of $90,000, or such other
adjusted amount prescribed by the Secretary of the Treasury,
beginning at such employe's Social Security retirement age. In
the event that benefits
135
Gen. Pro., 18(f)(2)
commence after the employe's Social Security retirement age, the
dollar limitation as described under section 18(f)(1)(ii) shall
be increased actuarially to be the equivalent of an annual
benefit of $90,000, or such other adjusted amount prescribed by
the Secretary of the Treasury, beginning at such employe's
Social Security retirement age.
In the event that benefits commence prior to age 55 for
Limitation Years beginning before December 31, 1983, the benefit
shall be adjusted to the actuarial equivalent of a benefit
commencing at age 55, for purposes of testing the limitation
amount applicable under Section 18(f)(1)(ii) above.
Actuarial adjustments provided for in this subsection (f)(2)
shall be made using an interest rate assumption equal to 5%.
(3) If an employe has less than 10 years of credited service with
the Corporation, the limitation under Section 18(f)(1)(i) with
respect to his benefit as otherwise determined will be
proportionately reduced. If an employe has less than 10 years
of participation in this Program, the limitation under Section
18(f)(1)(ii) with respect to his benefit shall be adjusted by
multiplying such amount by a fraction, the numerator of which is
the employe's years of participation in this Program, and the
denominator of which is ten (10).
136
Gen. Pro., 18(f)(4)
(4) In the case of an employe who had credited service prior to
October 3, 1973, the limitation described in paragraph (1)
preceding shall not be less than his benefit (excluding any
benefit attributable to employe contributions) based on the
terms of the Program as in effect on October 2, 1973 and based
on the continuation of his Compensation at the rate in effect on
October 2, 1973. The limitation applicable to an employe who
broke credited service before October 3, 1973 shall be the
deferred retirement benefit payable to such employe determined
as of the date his credited service was broken.
(5) In the case of an employe who was a participant in this Program
prior to January 1, 1983, the limitation described in Section
18(f)(1)(ii) shall not be less than his accrued benefit as of
December 30, 1983 under the terms and conditions of this Program
as in effect on July 1, 1982.
(g) OVERALL LIMITATION
For any employe who is participating under both this Program and any
defined contribution plans or programs of the Corporation, the
projected benefit for such employe under the defined benefit plans or
programs shall be reduced to the extent necessary to prevent the sum
of the following fractions computed as of the end of any Limitation
Year from exceeding 1.4 for any Limitation Year ending before
December 31, 1983, and 1.0 for any Limitation Year beginning on or
after December 31, 1983.
(1) DEFINED BENEFIT PLAN FRACTION:
The defined benefit plan fraction shall be equal to the ratio of
(i) divided by (ii) below, where:
137
Gen. Pro., 18(g)(1)(i)
(i) equals the projected annual benefit of the employe as of
the close of the Limitation Year under the Corporation's
defined benefit plans or programs less any portion of such
benefits attributable to employe contributions, and
(ii) equals the lesser of 100% of such employe's average
Compensation during his three consecutive highest paid
years of service with the Corporation, multiplied by 1.4 in
determining the fraction applicable in any limitation year
beginning on or after December 31, 1983 or the amount
prescribed by the Secretary of the Treasury applicable to
the Limitation Year as described under Section 18(f)(1)(ii)
of this Program, multiplied by 1.25 In determining the
fraction as applicable in any limitation year beginning on
or after December 31, 1983. This amount shall be adjusted,
if appropriate, to reflect the availability of greater
benefits under the Program as in effect on October 2, 1973
and Compensation as of that date.
(2) DEFINED CONTRIBUTION PLAN FRACTION:
The defined contribution plan fraction shall be equal to the
ratio of (i) divided by (ii) below, where:
(i) equals the sum of the Annual Additions to an employe's
account for each Limitation Year, and
(ii) equals the sum of the defined contribution denominator
increments for that year and all prior Limitation Years.
For each Limitation Year, the defined contribution
denominator increment is
138
Gen. Pro., 18(g)(2)(ii)
the lesser of (a) 1.25 times the dollar limitation for that
year, or (b) 1.4 times the Compensation limitation for that
year.
For any employe who was participating in this Program as of the
last day of the Limitation Year beginning December 31, 1986, as
prescribed in regulations, an amount shall be subtracted from
(2)(i) above so that the sum of this fraction and the defined
benefit plan fraction does not exceed 1.0 For such year.
The Annual Additions for any Limitation Year beginning before
January 1, 1987, shall not be recomputed to treat all employe
contributions as Annual Additions.
SECTION 19. CERTAIN PROVISIONS REQUIRED TO COMPLY
WITH SECTION 416 OF THE INTERNAL REVENUE CODE
In any Plan Year in which the Program is a "Top-Heavy Plan", as defined
in Section 416 of the Internal Revenue Code, the requirements of this
Section are applicable and must be satisfied.
(a) DEFINITIONS
(1) "Cumulative Account" means the sum of an employe's accounts
under a defined contribution plan (for an unaggregated plan), or
under all defined contribution plans included in an Aggregation
Group (for aggregated plans), determined as of the most recent
plan valuation date within a 12-month period ending on the
Determination Date, increased by any contributions due after
such valuation date and before the Determination Date.
139
Gen. Pro., 19(a)(2)
(2) "Cumulative Accrued Benefit" means the sum of benefits under a
defined benefit plan (for an unaggregated plan) or under all
defined benefit plans included in an Aggregation Group (for
aggregated plans), determined under the actuarial assumptions
set forth in such plan or plans, as of the most recent plan
valuation date within a 12-month period ending on the
Determination Date as if the employe voluntarily terminated
service as of such valuation date.
(3) "Determination Date" means the last day of the preceding Plan
Year.
(4) "Valuation Date" means the last day of a Plan Year as of which
date participants' accounts shall be valued at fair market value
and as of which date the present value of accrued benefits shall
be valued.
(5) "Key Employe" means any employe described in Internal Revenue
Code Section 416(i)(1) and regulations thereunder.
(6) "Top-Heavy Plan" means for any plan year beginning after 1983,
this Program is top-heavy if any of the following conditions
exists:
(a) If the top-heavy ratio for this Program exceeds 60 percent
and this Program is not part of any required aggregation
group or permissive aggregation group of plans.
(b) If this Program is a part of a required aggregation group
of plans (but which is not part of a permissive aggregation
group) and the top-heavy ratio for the group of plans
exceeds 60 percent, or
(c) If this Program is a part of a required aggregation group
of plans and part of a permissive aggregation group and the
top-heavy ratio for the permissive aggregation group
exceeds 60 percent.
140
Gen. Pro., 19(a)(7)
(7) TOP-HEAVY RATIO:
(a) If the Corporation maintains one or more defined benefit
plans and the Corporation maintains or has maintained one
or more defined contribution plans which during the 5-year
period ending on the determination date(s) has or has had
any account balances, the top-heavy ratio for any required
or permissive aggregation group, as appropriate, is a
fraction, the numerator of which is the sum of the present
value of accrued benefits determined in accordance with (b)
below, and the sum of account balances under the aggregated
defined contribution plan or plans for all key employes as
of the determination date(s), and the denominator of which
is the sum of the present values of accrued benefits under
the aggregated defined benefit plan or plans, determined in
accordance with (b) below, for all participants and the sum
of the account balances under the aggregated defined
contribution plan or plans for all participants as of the
determination date(s), all determined in accordance with
Section 416 of the Code and the regulations thereunder.
The account balances under a defined contribution plan in
both the numerator and denominator of the top-heavy ratio
are adjusted to include any distribution of an account
balance made in the 5-year period ending on the
determination date.
(b) For purposes of (a) 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 or ends with the 12-month period ending on the
determination date. The account
141
Gen. Pro., 19(a)(7)(b)
balances and accrued benefits of a participant (1) who is
not a key employe but who was a key employe in a prior
year, or (2) who has not received any compensation from any
employer maintaining the plan at any time during the 5-year
period ending on the determination date will be
disregarded. The calculations of the top-heavy ratio, and
the extent to which distributions, rollovers, and transfers
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
accrued benefits will be calculated with reference to the
determination dates that fall within the same calendar
year.
(8) "Permissive Aggregation Group" means the required aggregation
group of plans plus any other plan or plans of the Corporation
which, when considered as a group with the required aggregation
group, would continue to satisfy the requirements of Sections
401(a)(4) and 410 of the Internal Revenue Code.
(9) "Required Aggregation Group" means: (1) each qualified plan of
the Corporation in which at least one key employe participates,
and (2) any other qualified plan of the Corporation which
enables a plan described in (1) to meet the requirements of
Sections 401(a)(4) or 410 of the Internal Revenue Code.
(10) "Present Value" means the present value of accrued benefits
which shall be determined based on actuarial factors including
an interest rate assumption of 7% and the UP 1984 mortality
table.
142
Gen. Pro., 19(b)
(b) MINIMUM ACCRUED BENEFIT
(1) Notwithstanding any other provision in this Program except (3)
and (4) below, for any Plan Year in which this Program is
top-heavy, each participant who is not a key employe and has
completed 1,000 hours of service will accrue a benefit (to be
provided solely by employer contributions and expressed as a
life annuity commencing at normal retirement age) of not less
than two percent of the highest average compensation for the
five consecutive years for which the participant had the highest
compensation. The minimum accrual is determined without regard
to any Social Security contribution. The minimum accrual
applies even though under other Program provisions the
participant would not otherwise be entitled to receive an
accrual, or would have received a lesser accrual for the year
because (i) the non-key employe fails to make contributions
under Part B of the Program, (ii) the non-key employe's
compensation is less than a stated amount, (iii) the non-key
employe is not employed on the last day of the accrual
computation period, or (iv) the Program is integrated with
Social Security.
(2) For purposes of computing the minimum accrued benefit,
compensation will include all compensation, as that term is
defined for Section 415 purposes.
143
Gen. Pro., 19(b)(3)
(3) No additional benefit accruals shall be provided pursuant to (1)
above to the extent that the total accruals on behalf of the
participant attributable to employer contributions will provide
a benefit expressed as a life annuity commencing at normal
retirement age that equals or exceeds 20 percent of the
participant's highest average compensation for the five
consecutive years for which the participant had the highest
compensation.
(4) All accruals of an employer derived benefit, whether or not
attributable to years for which the plan is top-heavy, may be
used in computing whether the minimum accruals requirements of
paragraph (3) above are satisfied.
(c) MAXIMUM COMPENSATION
Annual compensation of any employe shall not be taken into account
under the Program in excess of $200,000, such amount to be adjusted
annually for increases in the cost of living in accordance with
Section 416(d) of the Internal Revenue Code.
(d) MINIMUM VESTING
(1) For any plan year in which this program is top-heavy, the
following minimum vesting schedule will automatically apply:
(a) 20% vesting after 2 years of service,
144
Gen. Pro., 19(d)(1)(b)
(b) 40% vesting after 3 years of service,
(c) 60% vesting after 4 years of service,
(d) 80% vesting after 5 years of service,
(e) 100% vesting after 6 years of service.
The minimum vesting schedule applies to all accrued benefits
within the meaning of Section 411(a)(7) of the Internal
Revenue Code except those attributable to employe contributions.
Further, no reduction in vested benefits may occur in the event
the Program's status as top-heavy changes for any plan year.
Any participant who has completed at least five years of service
when the plan ceases to be top-heavy, will remain under this
vesting schedule with respect to his accrued benefit determined
at any time following the date the plan ceases to be top-heavy.
However, this section does not apply to the accrued benefits of
any employe who does not have an hour of service after the plan
has initially become top-heavy and such employe's accrued
benefits attributable to employer contributions will be
determined without regard to this section.
(2) The minimum accrued benefit required (to the extent required to
be nonforfeitable under Section 416(b)) may not be suspended or
forfeited under Sections 411(a)(3)(B) or 411(a)(3)(D) of the
Internal Revenue Code.
145
Gen. Pro., 19(e)
(e) DISTRIBUTIONS FOR CERTAIN KEY EMPLOYES
Notwithstanding any other provision of this Program, if a key employe
is a five percent owner (as defined in Section 416) in the plan year
in which the employe attains age 70-1/2, benefit distributions shall
commence no later than April 1 of the following plan year (whether or
not the employe has retired).
(f) DETERMINATION OF SUPER TOP HEAVINESS
The Program shall be super top-heavy if it would be a top-heavy plan
under the provisions of (a)(6), but substituting "90%" for "60%" in
such provisions.
(g) ADJUSTMENTS IN SECTION 415 LIMITS
For any plan year in which the Program is top-heavy, for purposes of
the limitations on contributions and benefits under Section 415 of
the Internal Revenue Code, the dollar limitations in the defined
benefit plan fraction and the defined contribution plan fraction
shall be multiplied by 1.0 rather than 1.25.
(h) ACCOUNT BALANCES AND ACCRUED BENEFITS
Account balances and accrued benefits shall be calculated to include
all amounts attributable to both Corporation and employe
contributions.
146
Appendix A
APPENDIX A
For the sole purpose of Part A, Article II, Section 10 of this Program, the
following salaried positions are designated foundry jobs in each listed plant
location under the conditions specifically set forth herein. No other salaried
position is designated as a foundry job.
CENTRAL FOUNDRY PLANT, DANVILLE, ILLINOIS
[Download Table]
Position Code Position Title
------------- -------------------------------------------------------------
4M10 Laboratory Tester (Excludes Spectrometer Operator, Chief
Chemist (Wet), Metalographer, Radiographer (Cobalt), Raw
Materials Inspector, Spectro-Sample Preparation)
5M24 Metallurgist (Excludes Spectrometer Operator, Chief
Chemist (Wet), Metalographer, Radiographer (Cobalt), Raw
Materials Inspector, Spectro-Sample Preparation)
6M08 Foreman - Production
6M42 Foreman - Maintenance
6M47 Supervisor - Laboratory
6R41 Foreman - Inspection
7M03 Chief Electrician
7M14 General Foreman - Production
7M19 General Foreman - Maintenance
7P02 Supervisor - Safety
7R38 General Foreman - Inspection
7R58 Supervisor - Quality Control
147
Appendix A
APPENDIX A (Cont.)
CENTRAL FOUNDRY PLANT, DEFIANCE, OHIO
[Download Table]
Position Code Position Title
------------- -----------------------------------------------------------
4M10 Laboratory Tester (Excludes Molding Sand Tester, Carbon
Determinator & Spectrometer Operator, Spectrometer
Operator, Cobalt Operator, Furnace Control, Wet Chemist,
Receiving Inspection, Core Sand Tester, Cut-Up, Carbon
Analyzer, Carbon Train)
5M24 Metallurgist (Excludes Molding Sand Tester, Carbon
Determinator & Spectrometer Operator, Spectrometer Operator,
Cobalt Operator, Furnace Control, Wet Chemist, Receiving
Inspection, Core Sand Tester, Cut-up, Carbon Analyzer,
Carbon Train)
6M08 Foreman - Production
6M42 Foreman - Maintenance
6M47 Supervisor - Laboratory
6R41 Foreman - Inspection
7M03 Chief Electrician
7M14 General Foreman - Production
7M19 General Foreman - Maintenance
7M41 General Supervisor - Laboratory
7P02 Supervisor - Safety
7R38 General Foreman - Inspection
148
Appendix A
APPENDIX A (Cont.)
CENTRAL FOUNDRY MALLEABLE IRON PLANT, SAGINAW, MICHIGAN
[Download Table]
Position Code Position Title
------------- --------------------------------------------------------
4M10 Laboratory Tester (Excludes Quantovac Operator, Induction
Furnace Operator, Raw Materials Handler, Radiographer
(Cobalt), Sample Preparation, Special Chemist,
Metalographer, Sample Cut-Up)
5M24 Metallurgist (Excludes Quantovac Operator, Induction
Furnace Operator, Raw Materials Handler, Radiographer
(Cobalt), Sample Preparation, Special Chemist,
Metalographer, Sample Cut-Up)
6M08 Foreman - Production
6M42 Foreman - Maintenance
6M47 Supervisor - Laboratory
6R41 Foreman - Inspection
7M14 General Foreman - Production
7M19 General Foreman - Maintenance
7M41 General Supervisor - Laboratory
7M57 Supervisor - Pattern Shop
7R38 General Foreman - Inspection
149
Appendix A
APPENDIX A (Cont.)
CENTRAL FOUNDRY GREY IRON PLANT, SAGINAW, MICHIGAN
[Download Table]
Position Code Position Title
------------- ----------------------------------------------------------
5R24 Metallurgist (Excludes Metallurgist assigned to Chemistry
Laboratory duties outside plant production area)
6M08 Supervisor - Productive Department
6M42 Supervisor - Maintenance (Excludes supervisors assigned
to the Garage and Machine Shop)
6M47 Supervisor - Laboratory (Instrumentation)
6R41 Supervisor - Inspection
7M14 General Supervisor - Productive Departments
7M19 General Supervisor - Maintenance (Excludes General
Supervisors of Garage and Machine Shop)
7R38 General Supervisor - Inspection
150
Appendix B
APPENDIX B
For the sole purpose of Part A, Article II, Section 12 of this Program, the
following salaried positions are designated asbestos jobs in each listed plant
location under the conditions specifically set forth herein. No other salaried
position is designated as an asbestos job.
As of April 1, 1991, no GM unit or salaried position is involved in the
blending and processing of raw asbestos.
151
Appendix C
APPENDIX C
In accordance with Section 1(a)(1) and Section 8 of the General Provisions, the
following sets forth certain benefit rates and a benefit formula, which are
applicable to General Motors salaried employes in Puerto Rico who retire under
this Program with benefits payable commencing on or after October 1, 1990, in
lieu of the benefit rates set forth in Section 1(b), 4(a)(ii), 7(a)(1) and
7(a)(2) of Article 1 of Part A and the formula set forth in Section 2(a)(2) of
Article 1 of Part B. Salaried employes in Puerto Rico who retired with benefits
payable commencing prior to October 1, 1990, continue to be covered under the
terms and conditions of this Program, except that the provisions of Section 9
of Article 1 of Part A and Section 7 of Article 1 of Part B shall not be
applicable to any GM salaried employe in Puerto Rico.
BASIC BENEFIT RATE
[Download Table]
Basic Benefit Rate
Per Year of Credited Service
Retirement for Months Commencing
With Benefits Benefit 10-1-90
Payable Class and
Commencing Code After
--------------------------------------------------------------
$
October 1, 1990 A 18.20
and After B 18.45
C 18.70
D 18.95
TEMPORARY BENEFIT RATE
[Download Table]
Monthly Temporary
Retirement Benefit Amount
With Benefits Per Year of
Payable Credited
Commencing Service Maximum
---------------------------------------------------------
$ $
October 1, 1990
and After 15.00 450.00
152
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Appendix C
APPENDIX C (Cont.)
EARLY RETIREMENT SUPPLEMENT
[Download Table]
Total Monthly Benefit Rate For Determining
Monthly Early Retirement Supplement
Prior to Age 62 and One Month
For Retirements With 30 or More Years
Retirement of Credited Service
With Benefits 10-1-90
Payable and
Commencing After
------------------------------------------------------------------------
$
October 1, 1990
and After 935
INTERIM SUPPLEMENT
[Download Table]
Monthly Amount of Interim Supplement
Age at Payable Prior to Age 62 and One Month
Retirement for Each Year of Credited Service
-----------------------------------------------------------------
$
55 5.25
56 6.25
57 7.50
58 8.75
59 10.00
60 11.50
61 11.50
SUPPLEMENTARY BENEFITS
The monthly supplementary retirement benefit shall be 1% of the employe's
average monthly base salary in excess of $1,895, times the number of years and
months of the employe's credited service. For purposes of determining average
monthly base salary, $1,895 shall be used for any month prior to termination of
employment for which the employe's full monthly base salary rate was less than
$1,895.
153
Dates Referenced Herein and Documents Incorporated by Reference
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