{"id":38544,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/benefit-equalization-plan-ford-motor-co.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"benefit-equalization-plan-ford-motor-co","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/benefit-equalization-plan-ford-motor-co.html","title":{"rendered":"Benefit Equalization Plan &#8211; Ford Motor Co."},"content":{"rendered":"<pre>\nFORD MOTOR COMPANY\nBENEFIT EQUALIZATION PLAN\n\n                      (as amended as of December 18, 2000)\n\nSection 1. Purpose.\n\nThe purpose of this Plan is to preserve  certain benefits of employees \nunder the Company's tax qualified General Retirement Plan and Savings \nand Stock Investment Plan for Salaried Employees by providing \nappropriate Equalization Benefits under this Plan in place of benefits \nwhich cannot be provided under such tax qualified plans because of  \nlimitations  imposed by Section 415 and Section  401(a)(17) of\nthe Internal Revenue Code.\n\nSection 2. Definitions.\n\nAs used in this Plan,  the following  terms shall have the  following  \nmeanings, respectively:\n\n2.01 \"BEP Salary Reductions\" shall mean that portion of salary at the \nbasic salary  rate which  would have been  credited to an  employee's  \naccount  before January 1, 1985 pursuant to a salary reduction  \nagreement under paragraph V-2 of the  SSIP but  which by  reason  of  \nSection  4l5 of the  Code,  exceeds  salary reduction  contributions \nthat can be made by the Company on an employee's behalf under the \nTax-Efficient Savings Program of the SSIP.\n\n2.02 \"Company\" shall mean Ford Motor Company.\n\n2.03  \"Committee\"  shall mean the committee  authorized  to administer  and\ninterpret the Plan as provided in Section 6.\n\n2.04 The term \"Contributory Service\" shall have the meaning given that \nterm in the GRP.  \"Distribution\",  \"account\"  and \"current  market  \nvalue\" as used in Section 3.02 of this Plan shall have the  meanings  \ngiven those terms as used in the SSIP.\n\n2.05 \"ERISA \" shall mean the  Employee  Retirement  Income  Security \nAct of 1974, as amended from time to time.\n\n2.06 \"General  Retirement  Plan\" or \"GRP\" shall mean the Ford Motor \nCompany General  Retirement  Plan for Salaried and Certain Other  \nEmployees,  as amended from time to time.\n\n2.07 \"Internal Revenue Code\" or \"Code\" shall mean the Internal Revenue \nCode of 1986, as amended from time to time.\n\n2.08   \"Limitations\"   shall  mean  the   limitations  on  benefits  \nand\/or contributions  imposed on qualified plans by Section 415 and \nSection  401(a)(17) of the Code.\n\n2.09 \"PBGC\" shall mean the Pension Benefit Guaranty Corporation.\n\n\n\n                                       2\n\n     2.10  \"Savings  and Stock  Investment  Plan\" or \"SSIP\"  shall mean the Ford\nMotor  Company  Savings and Stock  Investment  Plan for Salaried  Employees,  as\namended from time to time.\n\nSection 3. Equalization of Benefits.\n\n     3.01 GRP Equalization Benefits.\n\n     (a)  A  Periodic  GRP  Equalization  Benefit  shall  be  provided  for  and\n          associated  with each  payment of a GRP benefit that is subject to the\n          Limitations.\n\n     (b)  The Periodic GRP Equalization  Benefit shall be equal in amount to the\n          difference between the GRP benefit and the corresponding  benefit that\n          would be payable under the GRP without regard to the  Limitations.  In\n          determining the amount of the Periodic GRP Equalization  Benefit,  the\n          member's  salary shall be the member's salary (as that term is defined\n          in the GRP) plus BEP Salary  Reductions  for periods before January 1,\n          1985  which  are  credited   under  this  Plan   pursuant  to  Section\n          3.02(a)(ii)(C)  below,  but the  member  shall not make  contributions\n          hereunder based on such BEP Salary Reductions.\n\n          The Periodic GRP Equalization  Benefit shall be paid by the Company to\n          the person receiving  payment of the corresponding GRP benefit and, as\n          nearly as practicable, at the same time.\n\n     (c)  As an  alternative  to the  GRP  Periodic  Equalization  Benefit,  the\n          Company and an employee  eligible for the  Periodic  GRP  Equalization\n          Benefit  under this Section 3.0l may agree on payment of the actuarial\n          equivalent  in a lump sum of such Periodic GRP  Equalization  Benefit,\n          subject to the following  conditions and such other  conditions as may\n          be determined by the Group Vice President and Chief Financial Officer,\n          the  Vice  President-General  Counsel  and  the  Vice  President-Human\n          Resources:\n\n          (i)  The actuarial  equivalent shall be determined on the basis of the\n               interest rates and mortality  tables,  which would be used by the\n               PBGC  for   determining   the  present  value  of  liability  for\n               pensioners' benefits in the case of a terminated  retirement plan\n               under  Title IV of ERISA  and  which  are in  effect in the month\n               prior to the month when the employee's GRP benefit begins.\n\n          (ii) The agreement must be entered into (A) prior to the year in which\n               the  employee's  retirement  occurs  and (B) not  later  than six\n               months before the actual retirement date; provided, however, that\n               the  requirement  contained in Subsection (B)  immediately  above\n               shall not apply to such an agreement  entered into in l984 by the\n               Company and an eligible employee who retires before July l, l985.\n\n          (iii) The agreement once entered is irrevocable.\n\n\n\n                                       3\n\n          (iv) Evidence  of good  health  at the time of the  agreement  will be\n               required.\n\n          Payment under such lump sum agreement  shall be made by the Company as\n          soon as practicable after payment of the GRP benefit begins.\n\n     3.02 Savings and Stock Investment Plan Equalization Benefits.\n\n     (a) Pre-1985 Subaccount.\n\n          The provisions of this  Subsection  3.02(a) shall apply in determining\n          that  part  of  an  eligible  employee's  SSIP  Equalization   Benefit\n          subaccount based on periods of service until December 31, 1984.\n\n          (i)  For  an  employee  who  made  the  election   regarding   payroll\n               deductions  provided in this  Subsection,  or who elected to have\n               credited   under  this  Plan  BEP  Salary   Reductions,   a  SSIP\n               Equalization  Benefit shall be provided with respect to any class\n               or classes  of the SSIP  before  January 1, 1985 with  respect to\n               which  Company  or  employee  contributions  were  subject to the\n               Limitations. (ii) If at any time during a plan year ending before\n               January 1, 1985 it appeared that contributions by or on behalf of\n               an   employee    (including   any   related   Company    matching\n               contributions)  to the SSIP would be subject to the  Limitations,\n               such an employee may have  elected to have the Company  retain in\n               its general  funds and have  credited for purposes of computing a\n               member's  subaccount of the SSIP Equalization  Benefit under this\n               Section 3.02(a):\n\n               (A)  by  payroll  deduction  authorization  under  this Plan that\n                    portion of the amount the employee had elected to contribute\n                    as employee  regular savings  contributions  to the SSIP for\n                    such pay period  (by a payroll  deduction  authorization  in\n                    effect for such pay period  under  paragraph IV of the SSIP)\n                    which,  when added to all other actual and projected  Annual\n                    Additions as defined under paragraph XXXI of the SSIP during\n                    such plan year, exceeded the Limitations.\n\n               (B)  that portion of regular  savings and related  earnings which\n                    have  been   returned  to  the  employee   pursuant  to  the\n                    provisions of paragraph XXXI of the SSIP, and\n\n               (C)  the employee's BEP Salary Reductions.\n\n          (iii)There  has  been   established  for  each  eligible   employee  a\n               subaccount  for  periods  of  participation  under  this  Section\n               3.02(a)  under  the  SSIP  Equalization  Benefit  Account.   This\n               subaccount  shall be equal to the amounts retained by the Company\n               pursuant  to Section  3.02(a)(ii)  of this Plan  adjusted  on the\n               basis of investment  performance and the member's  election as to\n               investment of funds under paragraph VIII and\n\n\n\n                                       4\n\n               transfer of the value of employee and Company contributions under\n               paragraph IX of the SSIP as though  contributions  and credits to\n               the  member's  account  hereunder  had been so invested  less any\n               withdrawals   pursuant  to  Section  3.02(a)(iv)  of  this  Plan;\n               provided,  however,  that an  election  by a Company  officer  of\n               investment  in Company  common  stock  shall not apply under this\n               Plan  with   respect  to   contributions   pursuant   to  Section\n               3.02(a)(ii)  of this Plan (other than  related  Company  matching\n               contributions)  which were made or  credited  hereunder  by or on\n               behalf of such Company officer;  and the officer will be required\n               to make any other investment  election  permitted under paragraph\n               VIII of the SSIP with respect to such amounts.\n\n          (iv) An  employee  may not  withdraw  any  amounts  in  excess  of the\n               member's  regular savings  contributions  under this Plan and may\n               not  borrow   against  the   subaccount   of  the  member's  SSIP\n               Equalization Benefit.\n\n          (v)  The SSIP Equalization Benefit under this Section 3.02(a) shall be\n               equal to the amount at the time of  distribution  credited to the\n               employee's subaccount of the SSIP Benefit Equalization Account as\n               determined under Section 3.02(a)(iii) above.\n\n     (b) Post-1984 Subaccount.\n\n          The provisions of this  Subsection  3.02(b) shall apply in determining\n          an eligible  employee's SSIP Equalization  Benefit subaccount based on\n          periods of  service  beginning  January  l,  l985.  \n\n          (i)  If at any time during a plan year  beginning on or after  January\n               1, 1985  contributions by or on behalf of an employee and related\n               Company  matching  contributions  to the SSIP are  subject to the\n               Limitations there shall be credited for purposes of computing the\n               eligible employee's SSIP Equalization  Benefit under this Section\n               3.02(b) an amount  equal to the  Company  matching  contributions\n               which  would  have  been  made  under  the  SSIP  based  upon the\n               employee's  SSIP  elections  except  that such  Company  matching\n               contributions  cannot be made  because  of the  Limitations.  For\n               periods  on or  after  October  1,  1995,  the  Company  Matching\n               Contributions  shall  be made in the  form of  units  in the Ford\n               Stock Fund rather than shares of Ford common stock.\n\n          (ii) There  shall  be  established   for  each  eligible   employee  a\n               subaccount  for  periods  of  participation  under  this  Section\n               3.02(b) under the SSIP Equalization  Benefit Account. For periods\n               prior  to May 1,  1996,  this  subaccount  shall  be equal to the\n               amounts credited by the Company pursuant to Section 3.02(b)(i) of\n               this Plan adjusted on the basis of investment performance and any\n               election by the member to transfer  the value of matured  Company\n               matching contributions under paragraph 4.2 of the SSIP, as though\n               credits to the member's account hereunder  had been so  invested.\n               For periods May 1, 1996 and after, this subaccount shall be equal\n               to the amounts credited by the Company  \n\n\n\n                                       5\n\n               pursuant to Section  3.02(b)(i)  of this Plan and adjusted on the\n               basis of  investment  performance  attributable  to any  separate\n               investment  election made by an eligible  employee  (other than a\n               Company officer) on or after May 1, 1996. The investment  options\n               for managing the subaccount  shall be identical to the investment\n               options specified in Article VIII of the SSIP, although they will\n               have separate fund codes.  Any BEP credits earned prior to May 1,\n               1996  will  continue  to be  based on the  same  SSIP  investment\n               elections used prior to May 1, 1996 unless the eligible  employee\n               elects to  reallocate  or transfer all or part of the  subaccount\n               balance among other  investment  options  available under Article\n               XIII of the SSIP on or after May 1, 1996. Fidelity  Institutional\n               Retirement  Services  Company  will  maintain  the  accounts  and\n               process the  elections  and  otherwise be the  recordkeeper  with\n               respect to this subaccount. Company officers with this subaccount\n               are not  eligible to  reallocate  or transfer  credits  under the\n               subaccount from the Ford Stock Fund to other investment  options,\n               or from other investment options to the Ford Stock Fund.\n\n          (iii)An employee  may not  withdraw  any amounts  credited  under this\n               Section 3.02(b) and may not borrow against this subaccount of the\n               member's SSIP  Equalization  Benefit.  This  subaccount  will not\n               accept rollovers from other plans.\n\n          (iv) The SSIP Equalization Benefit under this Section 3.02(b) shall be\n               equal to the amount at the time of  distribution  credited to the\n               employee's subaccount of the SSIP Benefit Equalization Account as\n               determined under Section 3.02(b)(ii) above.\n\n          (v)  In the  event  of  death  of an  eligible  employee  with an SSIP\n               Benefit  Equalization  subaccount,  the balance of the subaccount\n               shall be payable to the same beneficiary as the eligible employee\n               has designated  under Article XIV of the SSIP unless the eligible\n               employee makes a separate designation under this Plan pursuant to\n               the rules established by the Compensation and Option Committee.\n \n     (c)  Payment of SSIP Equalization Benefit.\n\n          The SSIP Equalization  Benefit shall be paid in cash by the Company to\n          the  employee,  or if the  employee  is  deceased,  to the  employee's\n          beneficiary  under the SSIP,  and shall be made as soon as practicable\n          after death, retirement or other termination of employment.\n\n\n\n                                       6\n\nSection 4.  Equalization Benefits Not Funded.\n\nThe Company's  obligations  under this Plan shall not be funded and Equalization\nBenefits  under this Plan shall be payable only out of the general  funds of the\nCompany.\n\nSection 5.  Amendment, Termination, Etc.\n\nThe Board of Directors of the Company shall have the right at any time to amend,\nmodify,  discontinue  or  terminate  this  Plan in whole  or in part;  provided,\nhowever, that no such action shall deprive any person of an Equalization Benefit\nunder this Plan in respect of any GRP  benefit or any SSIP  benefit to which the\nmember's  rights shall have become vested  (under the vesting  provisions of the\napplicable  Plans,  without  regard  to  any  provisions  limiting  benefits  or\ncontributions) prior to the date of such action by the Board of Directors.\n\nSection 6.  Administration and Interpretation of the Plan.\n\nFull  authority to  administer  and  interpret  this Plan shall be vested in the\nCompensation and Option Committee of the Board of Directors of the Company.  The\nCommittee  is  authorized  from  time  to  time  to  establish  such  rules  and\nregulations  as it may deem  appropriate  for the proper  administration  of the\nPlan, and to make such determinations under, and such interpretations of, and to\ntake  such  steps in  connection  with,  the Plan as it may  deem  necessary  or\nadvisable. Each determination,  interpretation, or other action by the Committee\nshall be in its sole  discretion and shall be final,  binding and conclusive for\nall purposes and upon all persons.\n\nReferences  to Articles,  Sections or paragraphs of the Code or of the GRP or of\nthe SSIP shall be  applicable to any  corresponding  provision of the Code or of\nthe applicable plans containing  essentially the same Limitations,  in the event\nthat the applicable Code or plan provisions shall be renumbered.\n\nSection 7.  Visteon Corporation.\n\nThe following  shall be applicable to employees of Ford who were  transferred to\nVisteon  Corporation on April 1, 2000 (\"U.S.  Visteon Employees\") and who ceased\nactive  participation in the Plan as of June 30, 2000 after Visteon  Corporation\nwas spun-off from Ford, June 28, 2000.\n\n          (a)  Group I and Group II Employees\n\n               For purposes of this paragraph, a \"Group I Employee\" shall mean a\n               U.S.  Visteon  Employee  who as of July 1, 2000 was  eligible for\n               immediate normal or regular early retirement under the provisions\n               of the GRP as in effect on July 1,  2000.  A \"Group II  Employee\"\n               shall  mean a U.S.  Visteon  Employee  who  (i) was not a Group I\n               Employee;  (ii) had as of July 1, 2000 a  combination  of age and\n               continuous  service  that  equals or exceeds  sixty  (60)  points\n               (partial months disregarded); and (iii) could become eligible for\n               normal or regular early  retirement  under the  provisions of the\n               GRP as in effect on July 1, \n\n\n\n                                       7\n\n               2000 within the period after July 1, 2000 equal to the employee's\n               Ford  service as of July 1, 2000.  A Group I or Group II Employee\n               shall retain  eligibility to receive a GRP  Equalization  Benefit\n               and\/or  a  SSIP  Equalization  Benefit  and  shall  receive  such\n               benefits as are applicable  under the terms of the Plan in effect\n               on the retirement date, based on meeting eligibility  criteria as\n               of July 1, 2000 with respect to GRP or SSIP  participation  prior\n               to July 1, 2000.\n \n          (b)  Group III Employees.\n\n               For purposes of this paragraph, a \"Group III Employee\" shall mean\n               a U.S. Visteon Employee who participated in the GRP prior to July\n               1,  2000  other  than a Group I or Group II  Employees.  The Plan\n               shall have no liability for a GRP  Equalization  Benefit and\/or a\n               SSIP Equalization Benefit payable to Group III Employees who were\n               otherwise   eligible  hereunder  with  respect  to  GRP  or  SSIP\n               participation prior to July 1, 2000 on or after July 1, 2000.\n\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7565],"corporate_contracts_industries":[9388],"corporate_contracts_types":[9539,9550],"class_list":["post-38544","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-ford-motor-co","corporate_contracts_industries-autos__autos","corporate_contracts_types-compensation","corporate_contracts_types-compensation__retirement"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/38544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=38544"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=38544"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=38544"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=38544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}