8-KMaterial AgreementsExhibits & Filings

EIDP, Inc. 8-K Report, Material Agreement (Jul 20, 2006)

Filed July 20, 2006For Securities:CTA-PBCTA-PA

Summary

E. I. du Pont de Nemours and Company (DuPont) filed an 8-K on July 20, 2006, to report material changes related to its employee benefit plans. The company's Board of Benefits and Pension amended and adopted new Rules for Lump Sum Payments and restated the DuPont Pension Restoration Plan. These updates are primarily driven by the need to comply with Section 409A of the Internal Revenue Code. The Pension Restoration Plan is a nonqualified plan designed to supplement benefits lost from the primary qualified pension plan due to IRS limits on compensation and benefits. The changes to the Rules for Lump Sum Payments, effective January 1, 2007, will affect the form and timing of distributions. Additionally, the mortality tables and interest rates used for calculating lump sum payments have been updated. Investors should note that these changes are administrative and aimed at regulatory compliance rather than indicating any immediate financial distress or fundamental shift in the company's operational performance. The full details of the restated plan and the updated rules are available as exhibits to the filing.

Key Highlights

  • 1DuPont is amending its employee pension plans to comply with Section 409A of the Internal Revenue Code.
  • 2The DuPont Pension Restoration Plan has been restated.
  • 3New Rules for Lump Sum Payments have been adopted.
  • 4These changes are effective January 1, 2007.
  • 5Updates include modifications to the form and timing of benefit distributions.
  • 6Mortality tables and interest rates for lump sum calculations have been updated.

Frequently Asked Questions

The primary reason is to ensure compliance with Section 409A of the Internal Revenue Code, which governs nonqualified deferred compensation plans.

It is a nonqualified pension plan that provides retirement income to participants by restoring benefits that cannot be paid under the main DuPont Pension and Retirement Plan due to IRS limits on compensation and benefits.

The amended Rules for Lump Sum Payments are effective January 1, 2007.

The changes primarily relate to the administration, form, and timing of distributions to ensure regulatory compliance. While the calculation basis for lump sums (mortality tables, interest rates) is updated, the fundamental purpose of the Restoration Plan remains to provide the intended total benefit, aiming to restore what would have been received without IRS limits.