This excerpt taken from the DAN 10-K filed Mar 20, 2007.
Dana Corporation Retirement Plan (the CashPlus Plan)
The Dana Corporation Retirement Plan is a cash balance plan (a type of non-contributory defined benefit pension plan in which the participants benefits are expressed as individual accounts). Management employees (and most other non-union employees) first employed by Dana before January 1, 2003, participate in this plan. Mr. DeBacker is currently the only named executive officer who participates in this plan.
The normal retirement age under this plan is 65. Benefits under the 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 a retirement benefit under this plan comparable to the benefit that would have been 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 (as defined in the plan), 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 our Board.
We are not currently contemplating any changes to this plan, as a result of our bankruptcy filing, that would effect the payment of benefits already accrued thereunder. However, we expect to freeze benefit accruals under this plan by July 1, 2007, so that no additional service credits will accrue thereafter.