TNB » Topics » Defined Benefit Pension Plan

This excerpt taken from the TNB DEF 14A filed Mar 13, 2009.
Defined Benefit Pension Plan
 
The Thomas & Betts Pension Plan provides all eligible employees with a pension benefit that is funded entirely by the Company. The benefit of each participant is accrued based on a funding formula computed by our independent actuaries, Hewitt Associates LLC. The basic formula, as provided in the plan, is 1.5% of a participant’s average monthly compensation multiplied by the participant’s years of credited service, then reduced by 50% of a participant’s primary social security benefit multiplied by the years of credited service divided by 35.
 
Employees of companies acquired on or after July 25, 2007 who were not active participants in a pension plan acquired by the Company are not eligible to participate in the Pension Plan. Effective January 1, 2008, the Pension Plan was amended to preclude participation to certain employees. The amendment, referred to as a “soft freeze”, precludes participation for: any employee hired after December 31, 2007; any employee hired prior to December 31, 2007 who does not complete 1,000 hours of service prior to December 31, 2008; and any employee who incurs a severance of employment and who is re-hired on or after January 1, 2008. We initiated the soft freeze because changes in the pension laws, and the volatility in financial markets have caused the Company’s costs in funding and maintaining the Pension Plan to become very unpredictable. Eligible Employees who are affected by the soft freeze, or who are otherwise precluded from participating in the Pension Plan, instead receive enhanced 401(k) benefits which are easier to manage and administer and represent more predictable costs.
 
Pursuant to the Thomas & Betts Pension Plan, a participant acquires a non-forfeitable benefit upon completing five years of vesting service. For participants hired prior to 60 years of age, the normal retirement age is 65. The amount of the pension benefit is based upon the participant’s years of credited service as defined by the plan, the participant’s average monthly compensation as defined by the plan and the participant’s primary social security benefit. Each participant’s pension benefit is calculated using two different formulae. The participant receives the larger benefit as calculated under the two formulae. The available forms of payment include: lump sum for benefits valued below a certain amount; single life annuity; qualified joint and survivor annuity with 120 months certain; 662/3% joint and survivor annuity with 120 months certain; life annuity with 120, 180 or 240 months certain or 120 monthly installments. The form of payment elected by the participant affects the amount of the benefit.
 
This excerpt taken from the TNB DEF 14A filed Mar 14, 2008.
Defined Benefit Pension Plan
 
The Thomas & Betts Pension Plan provides all eligible employees with a pension benefit that is funded entirely by the Company. The benefit of each participant is accrued based on a funding formula computed by our independent actuaries, Hewitt Associates LLC. The basic formula is 1.5% of a participant’s average monthly compensation multiplied by the participant’s years of credited service, then reduced by 50% of a participant’s primary social security benefit multiplied by the years of credited service divided by 35.
 
Effective January 1, 2008, the Pension Plan was amended to preclude participation to certain employees. The amendment, referred to as a “soft freeze”, precludes participation for: any employee hired after December 31, 2007; any employee hired prior to December 31, 2007 who does not complete 1,000 hours of service prior to December 31, 2008; and any employee who incurs a severance of employment and who is re-hired on or after January 1, 2008. We initiated the soft freeze because changes in the pension laws, and the volatility in financial markets have caused the Company’s costs in funding and maintaining the Pension Plan to become very unpredictable. Employees who are affected by the soft freeze instead receive enhanced 401(k) benefits which are easier to manage and administer and represent more predictable costs.
 
Pursuant to the Thomas & Betts Pension Plan, a participant acquires a non-forfeitable benefit upon completing five years of vesting service. For participants hired prior to 60 years of age, the normal retirement age is 65. The amount of the pension benefit is based upon the participant’s years of credited service as defined by the plan, the participant’s average monthly compensation as defined by the plan and the participant’s primary social security benefit. Each participant’s pension benefit is calculated using two different formulae. The participant receives the larger benefit as calculated under the two formulae. The available forms of payment include: lump sum for benefits valued below a certain amount, single life annuity, qualified joint and survivor annuity with 120 months certain, 662/3% joint and survivor annuity with 120 months certain, life


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annuity with 120, 180 or 240 months certain or 120 monthly installments. The form of payment elected by the participant affects the amount of the annual benefit.
 
This excerpt taken from the TNB DEF 14A filed Mar 13, 2007.
Defined Benefit Pension Plan
 
The Thomas & Betts’ Pension Plan provides all eligible employees with a pension benefit that is funded entirely by the company. The benefit of each participant is accrued based on a funding formula computed by our independent actuaries, Hewitt and Associates. The basic formula is 1.5% of a participant’s average monthly compensation multiplied by the participant’s years of credited service, then reduced by 50% of a participant’s primary social security benefit multiplied by the years of credited service divided by 35.
 
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