Summary
Amgen Inc. (AMGN) filed an 8-K on October 5, 2006, reporting on amendments to two key employee benefit plans. The Compensation and Management Development Committee approved the Fourth Amendment to the Amgen Retirement and Savings Plan, introducing Roth 401(k) accounts effective January 1, 2007. This allows employees to make after-tax contributions with the potential for tax-free distributions under specific conditions, though matching contributions will not be Roth-eligible. Additionally, the Seventh Amendment to the Amgen Inc. Change of Control Severance Plan was approved. This amendment revises the definitions for benefit tiers (Group II and Group III) in the event of a change of control and qualifying termination. The revisions align these definitions with Amgen's upcoming global career framework, reclassifying employees based on career track and function levels, specifically defining Group III for Level 7 staff and Group II for Level 8 and above, excluding those in Group I.
Key Highlights
- 1Introduction of Roth 401(k) accounts effective January 1, 2007, allowing for after-tax contributions and potential tax-free distributions.
- 2Company matching contributions for Roth 401(k) will not be eligible for tax-free distribution.
- 3Roth 401(k) contributions will be eligible for catch-up contributions.
- 4Loans and hardship distributions will not be permitted for Roth 401(k) contributions.
- 5Amendments to the Change of Control Severance Plan to align benefit tiers (Group II and III) with a new global career framework.
- 6Group III severance benefits will apply to staff in Level 7 of the new framework.
- 7Group II severance benefits will apply to staff in Level 8 and above (excluding Group I).