This excerpt taken from the ED 10-K filed Feb 22, 2010.
2.02 Amount of Benefits
Subject to this Article II, and prior to adjustment in accordance with Section 2.04, the amount of a Participants Benefit as of his or her Benefit Commencement Date, shall, subject to Section 2.08, be a monthly payment for the life of the Participant and shall equal the excess, if
any, of (a) minus (b), as calculated as of his or her Separation from Service and as determined below. In both Sections 2.02(a) and (b), the Participants Benefit shall be determined prior to any offsets under the Retirement Plan for duplicate plan coverage.
(a) The monthly Accrued Basic Retirement Allowance which would have been payable under the Retirement Plan, in the form of an annuity for the life of the Participant beginning on the Participants Benefit Commencement Date, and determined:
(A) if any portion of the Mandatory Deferral Portion of any Incentive Award credited on the Participants behalf under the Executive Incentive Plan or 2005 EIP has been forfeited pursuant to the provisions of the Executive Incentive Plan or 2005 EIP (as applicable), such forfeited amount shall not be included;
(B) where Incentive Awards shall be included in determining average compensation, the number of Incentive Awards recognized shall not exceed the averaging period (expressed in whole years); and
(C) with respect to a Participant who is entitled to a deferred pension benefit under the Retirement Plan due to termination of active employment because of Disability, the Participants compensation for any period after such termination, but prior to his or her Separation from Service, shall be determined as if his or her Annual Basic Straight Time Compensation on the date of his or her termination of active employment was his or her Annual Compensation for such period; over
(b) the monthly Accrued Basic Retirement Allowance which would have been payable beginning on the Participants Benefit Commencement Date in the form of an annuity for the life of the Participant under the Retirement Plan, without regard to any accruals under the Retirement Plan because of a Disability if such accruals relate to any period after which a Participant incurs a Separation from Service.
The determination under Sections 2.02(a) and (b) shall be made as of the Participants Benefit Commencement Date, with any adjustment for commencement before or after the Participants Normal Retirement Date made using the applicable actuarial adjustment factors under the Retirement Plan and, for a Traditional Formula Participant who has a Domestic Partner, shall take into account any actuarial reductions that are required under the terms of the Retirement Plan for any survivor benefit coverage.
(c) If, after a Participants Benefit Commencement Date, amendments to the Code or ERISA permit the Retirement Plan to provide for payment of the Participants pension benefit in an amount greater than that permissible on his or her Benefit Commencement Date, the Participants monthly Benefit, if any, under this Plan shall be reduced by the portion of the Participants monthly pension benefit thereafter paid from the Retirement Plan.
(d) All Benefits under this Plan that are payable to a Traditional Formula Participant or to the Surviving Spouse or Domestic Partner of a Traditional Formula Participant in an Annuity Payment Form for the month of April in a calendar year, or that would have been payable but for the delay in payment pursuant to Section 2.10, and with respect to which the Benefit Commencement Date was prior to December 31 of the prior calendar year, shall be eligible for a cost-of-living adjustment. In the case of a Benefit payable to a Surviving Spouse or Domestic Partner of a Traditional Formula Participant in an Annuity Payment Form, the Surviving Spouse or Domestic Partner Benefit shall be deemed to have commenced payment on the earlier of the (i) date that the Surviving Spouses or Domestic Partners Benefit commenced to be paid or (ii) Participants Benefit Commencement Date. Such adjustment shall be payable for the month of April in such calendar year and for each month thereafter, until further changed or terminated in accordance with provisions of this Plan. Each annual adjustment shall equal 75% of the percentage increase, rounded to the nearest 1/10 of one percent (0.001), in the Consumer Price Index, All Urban Consumers US City Average (CPI-U), as published by the United States Department of Labor for the preceding December over such Index for the next-preceding December and shall be applied to the amount that otherwise would have been payable to the Participant, Surviving Spouse, or Domestic Partner, as applicable, for April of the calendar year in which the adjustment is made; provided, however, that such adjustment shall not exceed 3% or be less than 0% of the eligible monthly Benefit. If at any time such Index is revised or discontinued, the Plan Administrator may substitute such other index, device, or other form of measurement as he or she, in his or her discretion, determines to be appropriate.