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DIS » Topics » 6.4 Excess Accumulated Contribution Benefit

This excerpt taken from the DIS 10-K filed Nov 20, 2008.

6.4 Excess Accumulated Contribution Benefit

 

(a) Limited Applicability. The provisions of this section apply only if a Participant had Accumulated Contributions under the Plan as in effect on April 30, 1984, and the Accumulated Contributions have not been distributed as of December 31, 2008.

 

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(b) Excess Accumulated Contribution Benefit Payable to a Participant

 

  (1) Amount of Benefit. An Excess Accumulated Contribution Benefit shall be payable to the Participant only if and to the extent that, as of the Benefit Calculation Date, the Participant’s Accumulated Contributions exceeds the Actuarial Equivalent present value of the Participant’s Past Service Frozen Benefit.

 

  (2) Time and Form of Payment. Any Excess Accumulated Contribution Benefit payable to the Participant under this subsection shall be paid in a single sum as of the Payment Date, which is the first day of the second calendar month following the Benefit Calculation Date; provided, however, that in the case of a Specified Employee, the Payment Date shall in no event be earlier than the first day of the month coinciding with or next following the date that is six months after the Specified Employee’s Separation from Service. In the case of a Specified Employee, the missed payments shall be adjusted at the Interest Rate for the period between the Payment Date that would have applied had the Participant not been a Specified Employee and the Specified Employee’s Payment Date. The Participant may not elect any different form of payment of the Excess Accumulated Contribution Benefit.

 

(c) Excess Accumulated Contribution Benefit Payable to a Beneficiary

 

  (1) Amount of Benefit

 

  (A) Participant’s Death before Separation from Service. Prior to the Participant’s Separation from Service, an Excess Accumulated Contribution Benefit shall be payable to the Participant’s Beneficiary only if and to the extent that, as of the Benefit Calculation Date (i.e., the first day of the calendar month following the Participant’s death), the Accumulated Contributions exceeds the Actuarial Equivalent present value of the Participant’s Past Service Frozen Benefit.

 

  (B) Participant’s Death after Retirement Plan Benefits Commence. If, as of the date that all benefit payments with respect to the Participant from the Retirement Plan cease (which shall be the Benefit Calculation Date for this purpose), clause (i) exceeds clause (ii), then such excess shall be distributed to the Participant’s Beneficiary. For purposes of this subparagraph, clause (i) and clause (ii) shall be defined as follows:

 

  (i) The Participant’s Accumulated Contributions that have not been previously distributed as of the Benefit Calculation Date.

 

  (ii)

The Actuarial Equivalent present value of all benefits paid from the Retirement Plan, excluding the Flat Benefit (as defined in the

 

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Retirement Plan), to all persons and entities with respect to the Participant, including after the Participant’s death, through the Benefit Calculation Date.

 

  (2) Time and Form of Payment. Any Excess Accumulated Contribution Benefit payable to one or more Beneficiaries under this subsection shall be paid in a single sum as of the Payment Date, which is the first day of the fourth calendar month following the Benefit Calculation Date. The Beneficiary may not elect any different form of payment of the Excess Accumulated Contribution Benefit.

 

  (3) Beneficiary Determination. For purposes of determining the Beneficiary entitled to receive any Excess Accumulated Contribution Benefit, the Beneficiary of the Participant shall be:

 

  (A) The person, persons or entity named by the Participant by written designation under the Retirement Plan; or

 

  (B) If the Participant has not made such a designation or the person, persons or entity so designated predecease the Participant, the Beneficiary shall be determined under Plan section 7.3, disregarding the last sentence thereof; or

 

  (C) If the Participant has no survivors in any of the categories specified under Plan section 7.3, the Participant’s estate or, if the Participant’s estate has been settled, the estate of the last Beneficiary to die.

 

(d) Aggregation of Benefits for Cash-Out Purposes. Except as provided in this subsection, the payment of any Excess Accumulated Contribution Benefit shall not affect in any way the determination of the amount, time or form of payment of any Retirement Income or Pre-Commencement Death Benefit payable under any other provision of this Plan. Notwithstanding the foregoing:

 

  (1) Any Excess Accumulated Contribution Benefit shall be aggregated with any Retirement Income benefits payable to the Participant for determining whether such benefits may be cashed-out under Plan section 5.4 only if both such benefits have the same Payment Date; and

 

  (2) Any Excess Accumulated Contribution Benefit shall be aggregated with any Pre-Commencement Death Benefit payable to the Beneficiary for determining whether such benefits may be cashed-out under Plan section 7.4 only if the Payment Date of any Excess Accumulated Contribution Benefit is the same or later than the Payment Date of the Pre-Commencement Death Benefit.

 

(e) Definitions Applicable to this Plan Section. In addition to the terms defined in Plan section 2.1 or elsewhere in this Plan, whenever used in this Plan section, the following terms shall have the respective meanings set forth below.

 

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  (1) “Accumulated Contributions” means the Participant’s deferred compensation under the Plan through April 30, 1984, plus interest at such rate as the Committee, in its sole discretion, may determine from time to time. Unless otherwise specified by the Committee, the interest rate shall be based on the weighted average prime rate of Bank of America, as determined by the Committee in its sole discretion. Such interest shall be determined at the end of each calendar year. Interest shall be credited on the Participant’s average balance during the calendar year just ended. No interest shall be credited for any period following the Participant’s Separation from Service or, if earlier, the Participant’s death.

 

  (2) “Past Service Frozen Benefit” means the Participant’s Pre-May 1984 Service Benefit, as determined under the Retirement Plan.
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