{"id":39937,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/executive-split-dollar-life-insurance-plan-alliant-techsystems.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"executive-split-dollar-life-insurance-plan-alliant-techsystems","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/executive-split-dollar-life-insurance-plan-alliant-techsystems.html","title":{"rendered":"Executive Split Dollar Life Insurance Plan &#8211; Alliant Techsystems Inc."},"content":{"rendered":"<pre>\n                            ALLIANT TECHSYSTEMS INC.\n                             EXECUTIVE SPLIT DOLLAR\n                               LIFE INSURANCE PLAN\n\nThe information in this summary is not intended to be advice for specific\ninvestment, tax, accounting, or legal matters. This summary brochure is offered\nfor your convenience only, and if it differs from the policy or contracts, the\npolicy or contracts prevail. Please consult your personal tax and\/or legal\nadvisor before applying any of this information to your particular\ncircumstances.\n\n                                  INTRODUCTION\n\nAlliant Techsystems Inc. ('the Company') has implemented an Executive Split\nDollar Life Insurance Plan for certain key executives. You have been selected as\none of the employees eligible to participant in this plan. This plan replaces\nany other executive life insurance arrangements previously in effect.\n\nThe Company will still provide you with a basic level of coverage through the\nCompany's group life insurance plan. This coverage will be the greater of the\nfollowing two amounts: 1) $50,000, or 2) the amount which when added to the\ncoverage provided under this Executive Life Insurance Plan would equal one and\none-half times your benefits base.\n\nFurthermore, your participation in this plan will not affect any supplemental\nlife insurance coverage that you may have elected through the Company's group\nlife insurance plan. You may continue that coverage under the same terms and\nconditions that currently apply to all salaried employees.\n\nThe Company is pleased to include this benefit in your Executive Compensation\nportfolio. The official policy is available in the Executive Compensation\ndepartment for your review. This summary is offered for your convenience only,\nand if it differs from the policy or contracts, the policy or contracts prevail.\n\nWhile the Company has agreed to offer you this benefit, doing so does not imply\nor create a contract of employment. Your benefit may be continued, changed or\neliminated in the future at the Company's sole discretion. Although the Company\nintends this plan to continue into the future, the Company reserves the right to\namend, terminate, or change the plan at any time.\n\n                                  PLAN OVERVIEW\n\nUnder this plan, a life insurance policy is purchased for you by the Company\nwhich provides a substantial death benefit to your beneficiary(s) should you die\nduring employment with the Company. In addition, the ownership and cash\nsurrender value of the policy may be transferred to you at retirement, subject\nto your continued employment until retirement and the terms described herein.\n\n \nThis is a split dollar life insurance plan, which simply means that the costs\nand benefits are shared between you and the Company. While actively employed,\nthe Company, as owner of the policy, pays the premiums required for your\ncoverage. You designate a beneficiary(s) for the death benefit; with such\nbeneficiary(s) eligible to receive the stated death benefit should you die while\nemployed before reaching retirement. You may change your beneficiary(s) at any\ntime. Because of the complexities of estate planning, you should seek\nprofessional tax and legal advice before naming or changing your beneficiary(s).\n\nYour share of the cost during your employment is the tax on the imputed income\nresulting from the Company's payment of the annual premiums. This imputed income\nis known as the PS58 cost, and is discussed in a following section of this\nsummary. The Company will provide you with an annual statement showing the\namount of imputed income and tax withholding.\n\nAt retirement, assuming you have at least 5 years of service and retire under\nterms mutually agreeable to you and the Company, the life insurance policy and\nthe policy's cash surrender value will be transferred to you. The Company may\nalso provide you with an additional payment to cover the income tax resulting\nfrom this gift. After retirement, you will own the policy and have the option to\ncontinue the coverage, withdraw the policy's cash value to supplement income, or\nsome combination of the above.\n\nIf you leave employment with less than five years of service or prior to\nretirement, or under circumstances not mutually agreeable to you and the\nCompany, the Company may, at its sole discretion, transfer ownership of the\npolicy to you. However, the Company will retain all cash value and will not make\nany additional premium payments.\n\n                                EMPLOYEE BENEFIT\n\nBENEFIT AMOUNT\nFor specific information regarding the life insurance purchased on your life,\nplease refer to your personalized benefit insert accompanying this summary.\n\nThe Company's payments cover your insurance costs, while also providing an\naccumulating cash value for paid up life insurance after you retire. According\nto the plan, the Company will make premium payments while you are employed until\nyou reach age 60.1 This plan is designed so that the coverage amount remains in\neffect until age 70, then drops to 2\/3 of the covered amount from age 70 to\napproximately age 95, at which time coverage ends. However, the actual coverage\namount and age at which coverage ends may be altered by you following\nretirement. Any cost for increased coverage after retirement is your obligation.\n\nTRANSFER OF POLICY UPON TERMINATION OF EMPLOYMENT\nShould you retire after age 55 with at least 5 years of service, and under\nmutually agreeable circumstances, the life insurance policy will be delivered to\nyou with the full cash surrender value accrued at that time. Depending on your\nage and years of service at the time of retirement, further premium payments may\nbe required from you if you wish to keep the policy inforce as \n\n\n--------\n1        For those employees over age 55 at the time of initial participation,\n         this age may be past 60. Please refer to your customized benefit insert\n         for more information regarding your specific benefit. \n\n \ndesigned after your retirement. In particular, should you retire before age 601,\nfurther premium payments will be necessary to sustain the policy as originally\ndesigned.\n\nIf your employment should be terminated by you or the Company for any reason,\neven after reaching age 55 with 5 or more years of credited service, there is no\nrequirement for the Company to deliver the policy or the cash surrender value to\nyou. However the Company may, at its sole discretion, direct the policy and\/or\nthe accumulated cash surrender value to you.\n\nIn addition, should you leave employment with less than five years of service,\nor at any time under circumstances not mutually agreeable to you and the\nCompany, the Company may, at its sole discretion, transfer ownership of the\npolicy to you. However, the Company will retain all cash value and make no\nfurther payments.\n\n                               RETIREMENT OPTIONS\n\nRETIREMENT OPTIONS\nUpon your retirement, after completing 5 years of service and assuming mutually\nagreeable terms, ownership of the life insurance policy and its cash surrender\nvalue will be transferred to you. If you retire after age 60, based on current\ninterest rate assumptions, it is expected, but not guaranteed, that sufficient\nfunds will then have accumulated in the policy to provide continued insurance,\nwith no further annual premiums required.\n\nHowever, a retirement prior to the completion of all planned premium payments\nwill result in a reduced cash surrender value and subsequent benefit duration.\nIn addition, the amount and duration of the post-retirement coverage will depend\non your age, the actual amount of cash value in the policy, and other economic\nand interest rate factors that may change over time. Please refer to your\npersonalized benefit insert to determine the number of planned payments to be\nmade for your policy, and the age at which your premium payments are projected\nto be complete.\n\nYour options at retirement include the following:\n\n         1)       Maintain insurance coverage as originally designed. This\n                  includes keeping the full face value to age 70 and then\n                  dropping it to 2\/3 of original value at age 70. Based on\n                  interest rate assumptions at policy issue, your policy is\n                  projected, but not guaranteed, to remain inforce until age 95;\n\n         2)       Access the policy's cash surrender value through withdrawals\n                  and\/or loans to supplement retirement income. Please note that\n                  this option may reduce the face amount of the policy and\/or\n                  shorten the coverage period;\n\n         3)       Keep the coverage at full value past age 70 by paying\n                  additional premiums;\n\n         4)       Increase coverage beyond the original face value by providing\n                  proof of insurability and paying additional premiums;\n\n--------\n1        For those employees over age 55 at the time of initial participation,\n         this age may be past 60. Please refer to your customized benefit insert\n         for more information regarding your specific benefit. \n\n \n         5)       A combination of the above.\n\n                              IMPORTANT INFORMATION\n\nMEDICAL EXAM\nIn order for the Company to purchase an insurance policy on your life, you must\nfirst fulfill any and all underwriting requirements as needed by the insurance\ncarrier. These requirements may include (but are not limited to) a medical\nexamination, a health screening, and a review of medical records. All results of\nany such exams or medical reviews will be kept strictly confidential.\n\nPS58 TAX ISSUES\nAlthough the Company is paying the premiums for the insurance on your behalf,\nyou will be taxed on the policy's 'economic benefit'. This benefit is the value\nof the insurance coverage provided by the Company, also known as the PS58 cost.\nThe tax on this PS58 cost is your responsibility. When your policy is issued,\nyour projected annual PS58 costs will be communicated to you. For active\nemployees, the Company will update your W-2 records and ratably withhold the\nappropriate amount from your salary paychecks to pay the taxes due on the PS58\ncost. For employees who are no longer active, but still have imputable income, a\nform 1099-R may be issued. This form will require filing with your annual tax\nreturn.\n\nGROSS-UP PAYMENT TO COVER TAXES OWED AT RETIREMENT\nAt retirement after at least five years of service, assuming terms mutually\nagreeable to you and the Company, your policy and accumulated cash surrender\nvalue will be transferred to you. This cash value gift is taxable. To assist you\nwith this tax burden, the Company may provide you with a one time gross-up\npayment to cover the taxes resulting from this gift.\n\nADMINISTRATION\nQuestions on this plan may be addressed to the Alliant Techsystems Executive\nCompensation department at (612) 931-5753, or may be directed to:\n\n                            Nevin Executive Benefits\n                        100 Washington Square, Suite 1200\n                              Minneapolis, MN 55401\n                                 (612) 343-2526\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[6632],"corporate_contracts_industries":[9474],"corporate_contracts_types":[9540,9539],"class_list":["post-39937","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-alliant-techsystems-inc","corporate_contracts_industries-aerospace__ordnance","corporate_contracts_types-compensation__benefits","corporate_contracts_types-compensation"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/39937","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=39937"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39937"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39937"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}