CCK » Topics » Retirement Benefits.

This excerpt taken from the CCK DEF 14A filed Mar 20, 2009.
Retirement Benefits.  As an incentive for long-term employment, the Company maintains several retirement plans.  In the United States, the Company maintains a Pension Plan (“U.S. Pension Plan”) for certain eligible employees in which four NEOs (Messrs. Conway, Rutherford, McGowan and Donahue) participate.  The U.S. Pension Plan is designed and administered to qualify under Code Section 401(a).  The U.S. Pension Plan provides normal retirement benefits at age 65 based on the average of the five highest consecutive years of earnings in the last ten years prior to employment termination.  For purposes of the U.S. Pension Plan, earnings consist of salary excluding any bonus.  These average earnings are multiplied by 1.25% and by years of service, which yields the annual Company-funded pension benefit.  Under U.S. federal law for 2008, benefits from the U.S. Pension Plan are limited to $185,000 per year and may be based only on the first $230,000 of an employee’s annual earnings.
 
The Company also maintains a defined benefit pension plan for the benefit of certain of its employees in the United Kingdom (“U.K. Pension Plan”) in which one of the NEOs (Mr. Homfray) participates.  The U.K. Pension Plan provides normal retirement benefits for Mr. Homfray at age 60 based on the average of his three highest consecutive years of earnings in the last 10 years prior to employment termination.  For purposes of the U.K. Pension Plan, earnings are limited to base salary.  Average earnings are multiplied by 1.67% for each year of service credited under the U.K. Pension Plan to produce a participant’s annual pension benefit.  Benefit payments under the U.K. Pension Plan are subject to an annual cost of living increase, limited to a maximum 5% increase for benefits earned prior to April 1, 2008 and 2.5% for benefits earned on or after such date.
 
Because of the benefit limits, described above, under the U.S. Pension Plan and the U.K. Pension Plan, the Company provides additional retirement benefits to certain senior Officers under the Senior Executive Retirement Plan (“SERP”) in which all of the NEOs participate.  The annual benefit for executives eligible to participate in the SERP is based upon a formula equal to (i) 2.25% in the cases of Messrs. Conway and  Rutherford and 2.0% in the cases of Messrs. Homfray, McGowan and Donahue of the average of the five highest consecutive years of earnings (consisting of salary and bonus and determined without regard to the limits imposed on tax qualified plans) times years of service up to twenty years plus (ii) 1.67% in the cases of Messrs. Conway and Rutherford and 1.45% in the cases of Messrs. Homfray, McGowan and Donahue of such earnings for the next fifteen years plus (iii) at the discretion of the Committee, 1% of such earnings for years of service beyond thirty-five years less (iv) Social Security old-age benefits attributable to employment with the Company and the Company-funded portion of the executive’s pension plan benefits and savings plan benefits described below.
 
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The NEOs who earned a vested benefit under the SERP on or before December 31, 2004 may, with respect to that part of the benefit earned on or before December 31, 2004, elect to take all or part of such annual retirement benefit in a lump sum at retirement, the amount of which is determined by calculating the present value of the actuarially determined future annual payments.  Mr. Rutherford expects to retire on March 31, 2009 and has elected to receive a lump sum payment of his pre-2005 SERP benefit.  All benefits earned under the SERP after December 31, 2004 are required to be paid in a lump sum.  If a NEO with a vested retirement benefit under the SERP dies prior to the receipt of such benefit, the NEO’s surviving spouse will be entitled to a 50% survivor benefit.  The SERP also provides a lump sum death benefit of five times the annual retirement benefit.
 
SERP participants vest in their benefits at the earliest of five years of participation, specified retirement dates, total disability or upon a “change in control” of the Company.
 
The Company also maintains a tax-qualified 401(k) Retirement Savings Plan to which all U.S. salaried employees, including four NEOs (Messrs. Conway, Rutherford, McGowan and Donahue), are able to contribute a portion of their salaries on a pre-tax basis.  Subject to Code limits, the Company will match 50% of the first 3% of pay that is contributed to the savings plan.
 
This excerpt taken from the CCK DEF 14A filed Mar 21, 2008.
Retirement Benefits.  As an incentive for long-term employment, the Company maintains several retirement plans.  In the United States, the Company maintains a Pension Plan (“U.S. Pension Plan”) for certain eligible employees in which four NEOs (Messrs. Conway, Rutherford, Mechura and Donahue) participate.  The U.S. Pension Plan is designed and administered to qualify under Code Section 401(a).  The U.S. Pension Plan provides normal retirement benefits at age 65 based on the average of the five highest consecutive years of earnings in the last ten years prior to employment termination.  For purposes of the U.S. Pension Plan, earnings consist of salary excluding any bonus.  These average earnings are multiplied by 1.25% and by years of service, which yields the annual Company-funded pension benefit.  Under U.S. federal law for 2007, benefits from the U.S. Pension Plan are limited to $180,000 per year and may be based only on the first $225,000 of an employee’s annual earnings.

The Company also maintains a defined benefit pension plan for the benefit of certain of its employees in the United Kingdom (“U.K. Pension Plan”) in which one of the NEO’s (Mr. Homfray) participates.  The U.K. Pension Plan provides normal retirement benefits for Mr. Homfray at age 60 based on the average of his three highest consecutive years of earnings in the last 10 years prior to employment termination.  For purposes of the U.K. Pension Plan, earnings are limited to base salary.  Average earnings are multiplied by 1.67% for each year of service credited under the U.K. Pension Plan to produce a participant’s annual pension benefit.  Benefits under the U.K. Pension Plan are subject to an annual cost of living increase that may not exceed five percent.
 
Because benefits under the pension plans for NEOs are limited and to provide additional retirement benefits to certain senior Officers, the Company also maintains the Senior Executive Retirement Plan (“SERP”) in which all of the NEOs participate.  In general, the annual benefit for executives eligible to participate in the SERP is based upon a formula equal to (i) 2.25% (2.0% in the cases of Messrs. Homfray and Donahue) of the average of the five highest consecutive years of earnings (consisting of salary and bonus and determined without regard to the limits imposed on tax qualified plans) times years of service up to twenty years plus (ii) 1.67% (1.45% in the cases of Messrs. Homfray and Donahue) of such earnings for the next fifteen years plus (iii) at the discretion of the Committee, 1% of such earnings for years of service beyond thirty-five less (iv) Social Security old-age benefits attributable to employment with the Company and the Company-funded portion of the executive’s pension plan benefits and savings plan benefits described below.
 
The NEOs who earned a vested benefit under the SERP on or before December 31, 2004 may, with respect to that part of the benefit earned on or before December 31, 2004, elect to take all or part of such annual retirement benefit in a lump sum at retirement, the amount of which is determined by calculating the present value of the actuarially determined future annual payments.  All benefits earned under the SERP after December 31, 2004 are required to be paid in a lump sum.  If a NEO with a vested retirement benefit under the SERP dies prior to the receipt of such benefit, the NEO’s surviving spouse will be entitled to a 50% survivor benefit.  The SERP also provides a lump sum death benefit of up to five times the annual retirement benefit.
 
SERP participants vest in their benefits at the earliest of five years of participation, specified retirement dates, total disability or upon a “change in control” of the Company.
 
The Company also maintains a tax-qualified 401(k) Retirement Savings Plan to which all U.S. salaried employees, including four NEOs (Messrs. Conway, Rutherford, Mechura and Donahue) are able to contribute a portion of their salaries on a pre-tax basis.  Subject to Code limits, the Company will match 50% of the first 3% of pay that is contributed to the savings plan.
 

 
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