Summary
This document outlines the Supplemental Retirement Plan for Executives of Carpenter Technology Corporation, effective December 13, 1979, and as amended on January 1, 2001. The plan's primary purpose is to attract, retain, and motivate key employees by offering supplemental pension and death benefits to enhance their economic security. Benefits are tied to a participant's average earnings and years of service, with provisions for normal retirement, early retirement, and mutual consent retirement. Payments are made from the general assets of the Corporation.
Key Highlights
- 1The plan is designed to provide supplemental retirement and death benefits to attract, retain, and motivate designated executives.
- 2Benefits are calculated based on average annual earnings and a percentage tied to years of service, with specific formulas varying based on when the participant joined.
- 3The plan allows for Normal Retirement (age 62+ with 5 years of service, or 30 years of service), Early Retirement (vested under the General Retirement Plan, actuarially reduced), and Mutual Consent Retirement (10+ years of service, mutually agreed upon).
- 4Benefits are paid from the general assets of Carpenter Technology Corporation.
- 5Each participant must enter into a Supplemental Retirement Agreement, which includes a non-competition provision.
- 6The plan allows for the continuation of benefit payments to a surviving spouse or designated beneficiary in the event of the participant's death.
- 7The Board of Directors, or its Human Resources Committee, reserves the right to modify or amend the plan provisions.
Frequently Asked Questions
The main objective is to attract, retain, and motivate key employees by providing them with enhanced economic security through supplemental pension and death benefits during their careers and in retirement.
Benefits are calculated based on the participant's average annual earnings (derived from the 'average monthly earnings' under the General Retirement Plan) multiplied by a service-based percentage. The specific percentage calculation varies depending on when the participant became a member of the plan.
Yes, participants must sign a Supplemental Retirement Agreement which includes a non-competition clause. Benefits may cease if a participant competes with the Corporation. Also, benefits are subject to reduction based on other defined benefit pension plans and primary Social Security benefits.
The plan is administered by a Pension Board appointed by the Board of Directors. Interpretations are made by the Human Resources Committee of the Board. The Board, or the Human Resources Committee, reserves the right to modify or amend the plan.