NST » Topics » Benefits

These excerpts taken from the NST 10-K filed Feb 9, 2009.

SECTION 3. BENEFITS

(a) Full Benefit. Each Participant who attains his or her Full Benefit Age (as hereinafter defined) while an employee of the Company or its affiliates and who thereafter has a Separation from Service will receive a benefit calculated as of the first day of the month following such Separation from Service, expressed as an annual single life annuity benefit, equal to the excess (if any) of (A) over (B), minus (C), where:

(A) is the excess of (i) 60% of his or her Highest Average Total Compensation ( as hereinafter defined), over (ii) 50% of the Participant’s Primary Social Security Benefit (as hereinafter defined), which excess is then multiplied by a fraction the numerator of which is his or her Full Years of Continuous Service (as hereinafter defined) at the time of his or her Separation from Service (which in no event shall exceed 20) and the denominator of which is 20;

(B) is the sum of the annual single life annuity benefits which the Participant would be entitled to receive as of the first day of the month following such Separation from Service from the NSTAR Pension Plan (as from time to time amended) and the NSTAR Excess Benefit Plan (as from time to time amended) (the “Excess Plan”), irrespective of the actual time and form of payment of the benefits from such Plans; and

(C) is the annual single life annuity benefit, if any, which the Participant would be entitled to receive as of the first day of the month following such Separation from Service from the Grandfathered Plan, irrespective of the actual time and form of payment of the Grandfathered Benefit Amount.

 

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(b) Reduced Benefit. Each Participant who attains age 55 while an employee of the Company or its affiliates, who completes five Full Years of Continuous Service and who thereafter has a Separation from Service prior to his Full Benefit Age will receive a reduced benefit expressed as an annual single life annuity benefit calculated as of the first day of the month following such Separation from Service, in the same manner as described in Section 3(a) above for a full benefit, except that for purposes of Section 3(a), the amount in (A) above shall be reduced by a percentage equal to .41666% multiplied by the aggregate number of months between the Participant’s Separation from Service and his or her Full Benefit Age. A Participant who has not attained age 55 or who has not completed five Full Years of Continuous Service, but who has entered into a change in control agreement with the Company and whose age plus the number of any additional years of service credited to him under said change in control agreement for purposes of the 409A Plan is 50 or more, will be considered to have an accrued benefit under the 409A Plan for purposes of said change in control agreement, based upon his or her number of Full Years of Continuous Service and calculated and reduced as of his or her Separation from Service in the same manner as described in the preceding provisions of this Section 3(b).

Benefits

2.1 Amount of Benefit. Each Participant in the 409A Plan, or the surviving beneficiary of a deceased Participant, shall be entitled to a benefit, payable in accordance with Article III below, which is expressed as a single sum equal to the excess (if any) of: (a) minus (b), over (c), where

 

  (a) is the Participant’s or surviving beneficiary’s single sum benefit under the Pension Plan, computed under the provisions of the Pension Plan without regard to the Limitations,

 

  (b) is the Participant’s or surviving beneficiary’s single sum benefit under the Pension Plan, computed taking into account the Limitations, and

 

  (c) is the single sum amount of the Participant’s benefit under the Grandfathered Plan (if any).

2.2 Adjustment Through the Payment Date. The single sum benefit described in Section 2.1 above shall be increased with interest, as provided under the Crediting of Interest section of the Pension Plan, from the first day of the month following the month in which the applicable payment event described in Section 3.2 occurs, until the date payments commence in accordance with Section 3.2 below. If the form of payment elected by the Participant in accordance with Section 3.1(a) below is other than a single sum, the benefit payable in the elected form shall be calculated based on the single sum as of the date on which payments commence, in accordance with the provisions of the Pension Plan.


SECTION 3. BENEFITS

FACE="Times New Roman" SIZE="2">(a) Full Benefit. Each Participant who attains his or her Full Benefit Age (as hereinafter defined) while an employee of the Company or its affiliates and who thereafter has a Separation from Service will
receive a benefit calculated as of the first day of the month following such Separation from Service, expressed as an annual single life annuity benefit, equal to the excess (if any) of (A) over (B), minus (C), where:

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">(A) is the excess of (i) 60% of his or her Highest Average Total Compensation ( as hereinafter defined), over (ii) 50% of the
Participant’s Primary Social Security Benefit (as hereinafter defined), which excess is then multiplied by a fraction the numerator of which is his or her Full Years of Continuous Service (as hereinafter defined) at the time of his or her
Separation from Service (which in no event shall exceed 20) and the denominator of which is 20;

(B) is the sum of the annual single life
annuity benefits which the Participant would be entitled to receive as of the first day of the month following such Separation from Service from the NSTAR Pension Plan (as from time to time amended) and the NSTAR Excess Benefit Plan (as from time to
time amended) (the “Excess Plan”), irrespective of the actual time and form of payment of the benefits from such Plans; and

(C)
is the annual single life annuity benefit, if any, which the Participant would be entitled to receive as of the first day of the month following such Separation from Service from the Grandfathered Plan, irrespective of the actual time and form of
payment of the Grandfathered Benefit Amount.

 


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(b) Reduced Benefit. Each Participant who attains age 55 while an employee of the Company or its
affiliates, who completes five Full Years of Continuous Service and who thereafter has a Separation from Service prior to his Full Benefit Age will receive a reduced benefit expressed as an annual single life annuity benefit calculated as of the
first day of the month following such Separation from Service, in the same manner as described in Section 3(a) above for a full benefit, except that for purposes of Section 3(a), the amount in (A) above shall be reduced by a
percentage equal to .41666% multiplied by the aggregate number of months between the Participant’s Separation from Service and his or her Full Benefit Age. A Participant who has not attained age 55 or who has not completed five Full Years of
Continuous Service, but who has entered into a change in control agreement with the Company and whose age plus the number of any additional years of service credited to him under said change in control agreement for purposes of the 409A Plan is 50
or more, will be considered to have an accrued benefit under the 409A Plan for purposes of said change in control agreement, based upon his or her number of Full Years of Continuous Service and calculated and reduced as of his or her Separation from
Service in the same manner as described in the preceding provisions of this Section 3(b).

(c) Form of Benefits.

 






 (i)Participants in the Excess Plan. With respect to any individual who is a Participant in the Excess Plan, the annual benefit, expressed as a single life annuity,
payable to such Participant under Section 3(a) or 3(b) above will be paid in the same form of payment as is elected by the Participant pursuant to the Excess Plan and, with respect to a Participant who elects an optional form of annuity,
determined pursuant to the Excess Plan.

 


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 (ii)Participants Not in the Excess Plan. With respect to any individual who is not a Participant in the Excess Plan, the annual benefit, expressed as a single life
annuity, payable to such Participant under Section 3(a) or (b) above will be paid as a Single Sum.

SECTION 3. BENEFITS

FACE="Times New Roman" SIZE="2">(a) Full Benefit. Each Participant who attains his or her Full Benefit Age (as hereinafter defined) while an employee of the Company or its affiliates and who thereafter has a Separation from Service will
receive a benefit calculated as of the first day of the month following such Separation from Service, expressed as an annual single life annuity benefit, equal to the excess (if any) of (A) over (B), minus (C), where:

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">(A) is the excess of (i) 60% of his or her Highest Average Total Compensation ( as hereinafter defined), over (ii) 50% of the
Participant’s Primary Social Security Benefit (as hereinafter defined), which excess is then multiplied by a fraction the numerator of which is his or her Full Years of Continuous Service (as hereinafter defined) at the time of his or her
Separation from Service (which in no event shall exceed 20) and the denominator of which is 20;

(B) is the sum of the annual single life
annuity benefits which the Participant would be entitled to receive as of the first day of the month following such Separation from Service from the NSTAR Pension Plan (as from time to time amended) and the NSTAR Excess Benefit Plan (as from time to
time amended) (the “Excess Plan”), irrespective of the actual time and form of payment of the benefits from such Plans; and

(C)
is the annual single life annuity benefit, if any, which the Participant would be entitled to receive as of the first day of the month following such Separation from Service from the Grandfathered Plan, irrespective of the actual time and form of
payment of the Grandfathered Benefit Amount.

 


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(b) Reduced Benefit. Each Participant who attains age 55 while an employee of the Company or its
affiliates, who completes five Full Years of Continuous Service and who thereafter has a Separation from Service prior to his Full Benefit Age will receive a reduced benefit expressed as an annual single life annuity benefit calculated as of the
first day of the month following such Separation from Service, in the same manner as described in Section 3(a) above for a full benefit, except that for purposes of Section 3(a), the amount in (A) above shall be reduced by a
percentage equal to .41666% multiplied by the aggregate number of months between the Participant’s Separation from Service and his or her Full Benefit Age. A Participant who has not attained age 55 or who has not completed five Full Years of
Continuous Service, but who has entered into a change in control agreement with the Company and whose age plus the number of any additional years of service credited to him under said change in control agreement for purposes of the 409A Plan is 50
or more, will be considered to have an accrued benefit under the 409A Plan for purposes of said change in control agreement, based upon his or her number of Full Years of Continuous Service and calculated and reduced as of his or her Separation from
Service in the same manner as described in the preceding provisions of this Section 3(b).

(c) Form of Benefits.

 






 (i)Participants in the Excess Plan. With respect to any individual who is a Participant in the Excess Plan, the annual benefit, expressed as a single life annuity,
payable to such Participant under Section 3(a) or 3(b) above will be paid in the same form of payment as is elected by the Participant pursuant to the Excess Plan and, with respect to a Participant who elects an optional form of annuity,
determined pursuant to the Excess Plan.

 


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 (ii)Participants Not in the Excess Plan. With respect to any individual who is not a Participant in the Excess Plan, the annual benefit, expressed as a single life
annuity, payable to such Participant under Section 3(a) or (b) above will be paid as a Single Sum.

EXCERPTS ON THIS PAGE:

10-K (4 sections)
Feb 9, 2009
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