DAN » Topics » Dana Corporation Retirement Plan.

This excerpt taken from the DAN DEF 14A filed Mar 18, 2005.
Dana Corporation Retirement Plan. This plan, which we also refer to as the CashPlus Plan, is a cash balance plan (a type of non-contributory defined benefit pension plan in which participants’ benefits are expressed as individual accounts). Management employees (and most other non-union employees) first employed by Dana prior to January 1, 2003, participate in this plan, and, accordingly, Mr. Burns is not eligible to participate. Messrs. Richter, Cole, Laisure, Heine and Franklin currently participate in the Retirement Plan and Messrs. Carroll and McCormack formerly participated. Benefits under this plan are computed as follows. During each year of participation in the plan, a participating employee earns a service credit equal to a specified percentage of his or her “earnings” (as defined in the plan) up to one-quarter of the Social Security taxable wage base, plus a specified percentage of his or her earnings above one-quarter of the taxable wage base. The percentages increase with the length of Dana service. A participant with 30 or more years of service receives the maximum credit (6.4% of earnings up to one-quarter of the taxable wage base, plus 12.8% of earnings over one-quarter of the taxable wage base).

      A participant employed by Dana on July 1, 1988 (when this plan was converted to a cash balance plan) also earns a transition benefit designed to provide that his or her retirement benefit under the current plan will be comparable to the benefit he or she would have received under the predecessor plan. A participant earns this transition benefit ratably over the period from July 1, 1988, to his or her 62nd birthday, except that in the event of a change in control of Dana, the participant will be entitled to the entire transition benefit. The accumulated service credits and the transition benefit are credited with interest annually, in an amount (generally, not less than 5%) established by the Board. A participant employed by Dana on July 1, 1988, who was eligible to retire on July 1, 1993, but who elects to retire after that date, will receive the greater of the benefit provided by the current plan or a benefit comparable to the benefit provided under the predecessor plan (determined as of July 1, 1993) with interest credits. The normal retirement age under the plan is 65.

     

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