**Exhibit 10.oo**

 

**CINER****GY CORP. NON-UNIONEMPLOYEES’ PENSION PLAN**

 

(As Amended and Restated

Effective January 1, 2003)

 

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NOTE:  THIS TABLE OF CONTENTS ISNOT PART OF THECINERGY CORP. NON-UNION EMPLOYEES’ PENSIONPLAN; INSTEAD, THIS TABLE OF CONTENTS IS MERELYFOR CONVENIENCE OF REFERENCE

 

**TABLE OF CONTENTS**

 
| ARTICLE  1  DEFINITIONS                    |
|------------------------------------------------------|
|                                                 |
| ARTICLE  2  EFFECTIVE DATE OF PLAN         |
|                                                 |
| ARTICLE  3  ELIGIBILITY AND PARTICIPATION  |
| 3.1                                                  | Date of  Participation |
| 3.2                                                  | Cash  Balance Participation |
| 3.3                                                  | Intermittent Employees and Temporary  Employees |
| 3.4                                                  | Leased  Employees |
| 3.5                                                  | Transfers of Employment |
| 3.6                                                  | Transfers of Participants and Plan Assets  To and From the Cinergy Corp. Union Employees’ Retirement Income Plan and  Cinergy Corp. Union Employees’ Pension Plan. |
| 3.7                                                  | Reclassification |
|                                                 |   |
| ARTICLE  4  AMOUNT OF LIFE-ONLY PENSION    |
| 4.1                                                  | Normal  Retirement Pension Formula |
| 4.2                                                  | Normal Retirement Benefits for Participants in the PSI Plan |
| 4.3                                                  | Normal Retirement Benefits for Participants  in the MRP or RIP |
| 4.4                                                  | General Method of Computing Annual Pension  for Retirement at Early Retirement Date |
| 4.5                                                  | General Method of Computing Annual Pension for a Terminated Vested  Participant |
| 4.6                                                  | Maximum  Pension |
| 4.7                                                  | Benefits  if Plan Becomes a Top-Heavy Plan |
| 4.8                                                  | 2000  Limited Early Retirement Program |
| 4.9                                                  | 2002 Voluntary Early Retirement Program |
| 4.10                                                 | Nonapplicability  of Article |
|                                                 |   |
| ARTICLE  4A  CASH BALANCE ACCOUNTS         |
| 4.1A                                                 | Opening  Account |
| 4.2A                                                 | Pay  Credits |
| 4.3A                                                 | Interest  Credits |
| 4.4A                                                 | Cash Balance Annual Pension |
|                                                 |   |
| ARTICLE  5  SEVERANCE FROM SERVICE-VESTING |
| 5.1                                                  | Vesting Requirement |

 

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| 5.2                                                   | Severance from Service Before Vesting                                                                     |
|-------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
| 5.3                                                   | Severance from Service After Vesting                                                                      |
|                                                  |                                                                                                      |
| ARTICLE  6  DEATH BENEFIT                   |
| 6.1                                                   | Determination of Spouse’s Benefit for  Participant Who Had Not Become a Cash Balance Participant     |
| 6.2                                                   | Method of Payment of Spouse’s Benefit for Participant Who Had Not  Become a Cash Balance Participant |
| 6.3                                                   | Preretirement Death Benefit for Cash Balance Participant                                                  |
|                                                  |                                                                                                      |
| ARTICLE  7  FORMS OF PENSION                |
| 7.1                                                   | Normal Forms of Pension                                                                                   |
| 7.2                                                   | Optional Forms of Retirement Income                                                                       |
|                                                  |                                                                                                      |
| ARTICLE  8  PAYMENT OF PENSION              |
| 8.1                                                   | Timing  of Payment                                                                                        |
| 8.2                                                   | Method  of Payment                                                                                        |
| 8.3                                                   | Small  Benefits                                                                                           |
| 8.4                                                   | Facility of Payment                                                                                       |
| 8.5                                                   | Benefits for Late Retirees, Reemployed Retirees and Reemployed  Terminated Vested Participants            |
| 8.6                                                   | Required  Payment of Benefits                                                                             |
| 8.7                                                   | Direct  Rollovers of Eligible Distributions                                                               |
|                                                  |                                                                                                      |
| ARTICLE  9  RETIREE MEDICAL/DENTAL BENEFITS |
| 9.1                                                   | Purpose                                                                                                   |
| 9.2                                                   | Eligibility                                                                                               |
| 9.3                                                   | Separate  Account                                                                                         |
| 9.4                                                   | Impossibility of Diversion Prior To Satisfaction of All Liabilities                                       |
| 9.5                                                   | Reversion Upon Satisfaction of All Liabilities                                                            |
| 9.6                                                   | Forfeitures                                                                                               |
| 9.7                                                   | Employer Contributions To The Medical/Dental Benefits Account                                             |
| 9.8                                                   | Medical/Dental Benefits                                                                                   |
|                                                  |                                                                                                      |
| ARTICLE  10  NONALIENATION OF BENEFITS      |
|                                                  |
| ARTICLE  11  ADMINISTRATION                 |
| 11.1                                                  | Administrator                                                                                             |
| 11.2                                                  | Removal and Replacement of Committee  Members                                                             |
| 11.3                                                  | Disqualification and Resignation                                                                          |
| 11.4                                                  | Chairperson,  Services, and Counsel                                                                       |
| 11.5                                                  | Meetings                                                                                                  |
| 11.6                                                  | Quorum                                                                                                    |
| 11.7                                                  | Action Without Meeting                                                                                    |
| 11.8                                                  | Notice to Trustee of Changes in Membership                                                                |
| 11.9                                                  | Correction of Defects                                                                                     |
| 11.10                                                 | Reliance Upon Legal Counsel                                                                               |

 

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| 11.11                                                       | Expenses                                                                                         |
|-------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
| 11.12                                                       | Indemnification                                                                                  |
| 11.13                                                       | Powers  and Duties of Committee                                                                  |
| 11.14                                                       | Matters Specifically Excluded from  Jurisdiction                                                 |
|                                                        |                                                                                             |
| ARTICLE  12  BENEFIT CLAIMS PROCEDURES            |
|                                                        |
| ARTICLE  13  FUNDING POLICY AND METHOD            |
|                                                        |
| ARTICLE  14  MISCELLANEOUS                        |
| 14.1                                                        | No  Enlargement of Employee Benefits                                                             |
| 14.2                                                        | Reemployment                                                                                     |
| 14.3                                                        | Qualified Military Service                                                                       |
| 14.4                                                        | Notice  of Address                                                                               |
| 14.5                                                        | Data                                                                                             |
| 14.6                                                        | No  Individual Liability                                                                         |
| 14.7                                                        | Participant’s Statement of Agreement                                                        |
| 14.8                                                        | No Diversion of Assets                                                                           |
| 14.9                                                        | Governing  Laws                                                                                  |
| 14.10                                                       | Severability                                                                                     |
| 14.11                                                       | Interpretation and Regulation of Plan                                                            |
| 14.12                                                       | Communications  by Participants                                                                  |
| 14.13                                                       | Headings                                                                                         |
| 14.14                                                       | Accrued Benefit Not to be Decreased by  Amendment                                                |
|                                                        |                                                                                             |
| ARTICLE  15  TRUSTS AND INSURANCE CONTRACTS       |
| 15.1                                                        | Trusts and Insurance Contracts                                                                   |
| 15.2                                                        | Irrevocability                                                                                   |
| 15.3                                                        | Sufficiency  of Pension Fund                                                                     |
|                                                        |                                                                                             |
| ARTICLE  16  CONTRIBUTIONS                        |
|                                                        |
| ARTICLE  17  APPROVAL UNDER INTERNAL REVENUE CODE |
|                                                        |
| ARTICLE  18  TEMPORARY RESTRICTIONS ON BENEFITS   |
| 18.1                                                        | Temporary Restrictions                                                                           |
|                                                        |                                                                                             |
| ARTICLE  19  AMENDMENT AND TERMINATION            |
| 19.1                                                        | Right  to Amend or Terminate                                                                     |
| 19.2                                                        | Effect of Termination                                                                            |
| 19.3                                                        | Merger and Consolidation of Plan                                                                 |
| 19.4                                                        | Post-Change in Control Merger,  Consolidation, or Transfer of Pension Plan Assets or Liabilities |
| 19.5                                                        | General Protection of Benefits in the Event  of a Change in Control                              |
| 19.6                                                        | Post-Change  in Control Surplus Reversion                                                        |

 

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| ARTICLE  20  AUTHORIZED TRANSACTION                |
|--------------------------------------------------------------|
|                                                         |
| ARTICLE  21  PARTICIPATION BY OTHER EMPLOYERS      |
| 21.1                                                         | Adoption  of Plan |
| 21.2                                                         | Withdrawal  from Participation |
| 21.3                                                         | Cinergy  as Agent for Employers |
|                                                         |   |
| ARTICLE  22  CONTINUANCE BY A SUCCESSOR            |
|                                                         |
| ARTICLE  23  PROVISIONS RELATING TO TOP-HEAVY PLAN |
| 23.1                                                         | Construction of this Section |
| 23.2                                                         | Top-Heavy Determination |
| 23.3                                                         | Effects of a Top-Heavy Determinations |
|                                                         |   |
| ARTICLE  24  MERGER WITH THE MRP                   |
| 24.1                                                         | Acceptance of Assets and Liabilities of MRP  Trust |
| 24.2                                                         | Participation of MRP Participants |
|                                                         |   |
| ARTICLE  25  SPIN OFF OF PSI PLAN                  |
| 25.1                                                         | Acceptance  of Assets and Liabilities of PSI Plan Trust |
| 25.2                                                         | Participation of PSI Plan Participants |
|                                                         |   |
| ARTICLE  26  MRP, RIP, PSI PLAN RETIREE INCREASE   |
| 26.1                                                         | Eligible Recipient: Benefit Increase |
| 26.2                                                         | Applicable Percentage |
| 26.3                                                         | Definitions |
| 26.4                                                         | Code  Section 415 Limits |
| 26.5                                                         | Miscellaneous |

 

ADDENDUM – EGTRRA and 401(a)(9)Model Provisions

 

ADDENDUM A – (PSI Plan –Minimum Formulas)

 

ADDENDUM B – (MRP/RIP – MinimumFormulas)

 

ADDENDUM C – MRP/RIP 100%Spousal and Contingent Annuitant Benefit

 

ADDENDUM D – MRP/RIP 50%Contingent Annuitant Factors

 

ADDENDUM E – Level IncomeOption – Factors Using UP84 Mortality and 7.5% Interest

 

ADDENDUM F – MRP/RIP LevelIncome Option Factors

 

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**Adopted pursuant to resolutions of theCinergyCorp. Benefits Committee dated December 18, 2002**

 

CINERGY CORP. NON-UNION

 

EMPLOYEES’ PENSION PLAN

 

(As Amended and Restated Effective January 1, 2003)

 

INTRODUCTION

 

EffectiveJanuary 1, 1990, the Cincinnati Gas & Electric Company adopted TheCincinnati Gas & Electric Company Management Retirement Plan(“MRP”).  Effective January 1,1998, the MRP was renamed the Cinergy Corp. Non-Union Employees’ Pension Plan.  Also, effective as of December 31,1997, the assets and liabilities of the PSI Plan attributable to EligibleEmployees were merged into this Plan. The Plan was amended and restated as of January 1, 1999.  The provisions of this amendment andrestatement of the Plan are effective as of January 1, 2003 except wherean interim effective date is otherwise provided.

 

This Plan ismaintained for the exclusive benefit of Eligible Employees.  The purpose of the Plan is to provideretirement income for Eligible Employees. The Plan is designed to satisfy the requirements of Codesubsection 401(a) and the applicable requirements of ERISA.

 

ARTICLE 1

 

DEFINITIONS

 

As used in this document, thefollowing words and phrases, when capitalized, will have the meanings set forthbelow, unless a different meaning is plainly required by the context.

 

1.1                                 “Absencefrom Service” means, with respect to each Employee, his absence from service(with or without pay) with his Employer for any reason other than a quit,resignation, discharge, retirement, or death, including, but without limitationbecause of enumeration, vacation, holiday, sickness, disability, leave ofabsence (unless otherwise required by applicable law), or other layoff.  The expiration of an Employee’s Absence fromService shall be the earliest of his Actual Separation Date, the date theEmployee returns to employment with his Employer or the expiration of12 months from the first date of Absence from Service, except that for anEmployee who had not become a Cash Balance Participant and who is totallydisabled and qualifies for benefits under Cinergy’s Long-Term Disability Plan,the expiration of his Absence from Service will not occur until the earlier of(i) the date the Employee becomes a Cash Balance Participant (ifapplicable) or

 

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(ii) the later of (a) the date heno longer qualifies for benefits under Cinergy’s Long-Term Disability Plan, or(b) his Normal Retirement Date, Early Retirement Date, or ActualSeparation Date, whichever is applicable.

 

1.2                                 “AccruedVacation Pay” means, with respect to an Exempt Employee or a Non-ExemptEmployee, the compensation received at his Severance from Service for unusedaccrued vacation pursuant to the Employer’s applicable policy.

 

1.3                                 “ActiveParticipant” means a Participant for whom benefits are being accrued under thePlan on the applicable date.

 

1.4                                 “ActualSeparation Date” means:

 

(a)                                  withrespect to a Participant who either (1) retires on or after his NormalRetirement Date, or (2) who retires on an Early Retirement Date, the firstday of the calendar month coincident with or following the date of theParticipant’s Severance from Service; or

 

(b)                                 withrespect to a Participant who incurs a Severance from Service before he reachesage 50 and who is entitled to benefits determined under the provisions ofSection 5.3 (Severance from Service After Vesting), the date of theParticipant’s Severance from Service.

 

1.5                                 “ActuarialEquivalent” means a benefit having the same actuarially determined value as thebenefit that the Actuarial Equivalent replaces.  The determination of an Actuarial Equivalent will be based on theactuarial assumptions in Subsections (a) and (b) below, except as provided inSubsection (c), (d), (e) or (f) below:

 

(a)                                  Mortality:

 

Participantsin accordance with the UP–1984 Table, with no rating of ages; Spouses andContingent Annuitants in accordance with the UP-1984 Table, with ages rateddown three years;

 

(b)                                 Interest:

 

7-1/2% perannum, compounded annually.

 

(c)                                  LumpSums:

 

With respectto any lump sum payment under Subsection 7.2(f) (Cash Balance AccountSingle Sum) or Section 8.3 (Small Benefits) that may be payable under the Planduring a Plan Year, the Actuarial Equivalent will be calculated using theapplicable mortality table as prescribed from time to time by the Secretary of theTreasury (for distributions with Annuity Starting Dates after December 30,2002, the mortality table prescribed in Revenue Ruling 2001–62) andan interest rate equal to the “applicable interest rate” under Codesubsection 417(e) as specified by the

 

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Commissionerof Internal Revenue in revenue rulings, notices or other guidance published inthe Internal Revenue Bulletin (currently based on the annual rate of intereston 30-year Treasury securities) for the fifth full calendar month preceding thefirst day of the Plan Year in which the Annuity Starting Date occurs.

 

(d)           Small Lump Sums in 2003:

 

NotwithstandingSubsection (c), with respect to any determination of a lump sum amountpursuant to Section 8.3 (Small Benefits) for the Plan Year endingDecember 31, 2003 for a Participant, Spouse or Beneficiary who would havehad a lump sum amount pursuant to Section 8.3 (Small Benefits) with anAnnuity Starting Date after December 31, 2002 and before January 1, 2004 in anamount not in excess of $5,000 using the “applicable interest rate” asspecified by the Commissioner of Internal Revenue in revenue rulings, noticesor other guidance published in the Internal Revenue Bulletin (currently basedon the annual rate of interest on 30-year Treasury securities) for the secondfull calendar month preceding the first day of the Plan Year, the amount of thelump sum for determining whether a lump sum is payable under Section 8.3(Small Benefits) and if applicable the amount of the lump sum payment shall bedetermined, and shall not be less than the amount determined, using the“applicable interest rate” as specified by the Commissioner of Internal Revenuein revenue rulings, notices or other guidance published in the Internal RevenueBulletin (currently based on the annual rate of interest on 30-year Treasurysecurities) for the second full calendar month preceding the first day of thePlan Year in which the Annuity Starting Date occurs or the fifth full calendarmonth preceding the first day of the Plan Year in which the Annuity StartingDate occurs, whichever produces a larger lump sum payment.

 

(e)                                  Conversionof Cash Balance Account to Annuity and Related Calculations

 

With respectto any conversion of a Cash Balance Account (or “Projected Cash BalanceAccount” as defined in Subsection 4.4A(a) (General Rule)) to an Annual Pensionunder Subsection 4.4A(a) (General Rule), the calculations under Section 6.3(Preretirement Death Benefit for Cash Balance Participant), the calculationsunder Paragraph 7.1(a)(2) (Cash Balance Participant Without Prior ConversionPension) and the calculations under Paragraph 7.1(a)(3) (Cash BalanceParticipant With Prior Conversion Pension), except as otherwise providedtherein, the Actuarial Equivalent will be calculated using the applicablemortality table under Code subsection 417(e) as prescribed from time to time bythe Secretary of the Treasury (currently the mortality table prescribed inRevenue Ruling 2001-62) and an interest rate equal to the “applicable interestrate” under Code subsection 417(e) as specified by the Commissioner ofInternal Revenue in revenue rulings, notices or other

 

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guidancepublished in the Internal Revenue Bulletin (currently based on the annual rateof interest on 30-year Treasury securities) for the fifth full calendar monthpreceding the first day of the Plan Year in which the Annuity Starting Dateoccurs.

 

(f)                                    MRP/RIP/PSIMinimum.

 

In the case ofa Participant who had an accrued benefit under the MRP, RIP, or the PSI Plan asof December 31, 1997, and who has a Severance from Service Date afterDecember 31, 1997, no benefit determination other than lump sum paymentsunder Subsections (c) and (d) (which shall be determined underSubsections (c) and (d), if and as applicable) will produce an amount thatis less than that which would have been produced utilizing both the actuarialassumptions specified in the MRP, RIP, or the PSI Plan, whichever isapplicable, as in effect on December 31, 1997, and the annual pensionaccrued as of December 31, 1997, determined under the provisions of theMRP, the RIP, or the PSI Plan, whichever is applicable, as then in effect.

 

1.6                                 “AdditionalSeparation Date” means, with respect to a Participant who has an InitialSeparation Date and who is later reemployed by an Employer, the first day ofthe calendar month coincident with or following the Participant’s nextSeverance from Service Date.  However,if the Participant has multiple Severance from Service Dates after his InitialSeparation Date, then he will have an Additional Separation Date for eachSeverance from Service, which will be the first day of the calendar monthcoincident with or following the Participant’s applicable Severance fromService Date.

 

1.7                                 “Affiliate”means any employer that together with the Employer is under common control or amember of an affiliated service group as determined under Codesubsections 414(b), (c), (m), and (o). In determining whether an employer is a member of a controlled group forpurposes of Section 4.6 (Maximum Pension), the rules osf Codesubsections 414(b) and (c) will be applied as modified by Codesubsection 415(h).

 

1.8                                 “AggregateAccount” means, with respect to a Participant who is also participating in aQualified Defined Contribution Plan that is included in an Aggregation Group,the sum of:  (a) the Participant’saccount balance under the plan as of the Valuation Date; (b) an adjustmentfor any contributions due under the plan as of the Determination Date (theadjustment will be the amount of any contributions actually made after theValuation Date but before the Determination Date, except for the first PlanYear when the adjustment will also reflect the amount of any contributions madeafter the Determination Date that are allocated as of a date in the first PlanYear); and (c) any Plan distributions made within the Plan Year thatincludes the Determination Date or within the four preceding Plan Years.  However, in the case of distributions madeafter the Valuation Date and prior to the Determination Date, distributions arenot included as distributions for

 

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Top-Heavy purposes to the extent that thedistributions are already included in the Participant’s Aggregate Accountbalance as of the Valuation Date.

 

1.9                                 “AggregationGroup” means either a Required Aggregation Group or a Permissive AggregationGroup.

 

1.10                           “AnnualAddition” means, with respect to a Participant for a Plan Year, the followingamounts credited to a Participant’s account in any Qualified DefinedContribution Plan maintained by the Employer or an Affiliate for the PlanYear:  employer contributions, employeecontributions (other than rollover contributions); forfeitures; amountsallocated, after March 31, 1984, to an individual medical account, asdefined in Code paragraph 415(l)(2), that is part of a pension or annuityplan maintained by the Employer or an Affiliate; and amounts derived fromcontributions paid or accrued after March 31, 1984, that are attributableto post-retirement medical benefits, allocated to the separate account of a KeyEmployee, under a welfare benefit fund, as defined in Codesubsection 419(e), maintained by the Employer or an Affiliate.

 

1.11                           (a)           “Annual Pension” for a Participantwho has not become a Cash Balance Participant means, with respect to theParticipant, the amount of the Participant’s pension, expressed as an annualbenefit for the Participant’s lifetime commencing on his Normal Retirement Date(or, if the Participant has attained his Normal Retirement Date, the AnnuityStarting Date as of which the Annual Pension is being determined) determined inaccordance with Article 4 (Amount of Life-Only Pension).

 

(b)                                   “AnnualPension” for a Participant who has become a Cash Balance Participant means,with respect to the Participant, the amount of the Participant’s pension,expressed as an annual benefit for the Participant’s lifetime commencing on hisNormal Retirement Date (or, if the Participant has attained his NormalRetirement Date, the Annuity Starting Date as of which the Annual Pension isbeing determined) determined in accordance with Article 4A (Cash BalanceAccounts).

 

(c)                                    “PriorConversion Pension” for (and only for) a Participant who has become a CashBalance Participant and has had an amount credited to his Cash Balance Accountin accordance with Section 4.1A (Opening Account) means the Participant’saccrued benefit amount used to determine the opening balance credited to hisCash Balance Account under Section 4.1A (Opening Account) expressed as anannual benefit for the Participant’s lifetime commencing on his NormalRetirement Date (or, if the Participant had attained his Normal Retirement Dateas of the date the amount is credited to his Cash Balance Account, the date theamount is credited to his Cash Balance Account).  The Prior Conversion Pension for a Participant who has become aCash Balance Participant and has had an amount credited to his Cash BalanceAccount in accordance with Section 4.1A (Opening Account) shall be determinedas if the Employee had

 

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terminated employment with the Employer andall Affiliates as of the date immediately prior to the date the amount iscredited to his Cash Balance Account or, if earlier, for an Employee whobecomes a Cash Balance Participant upon reemployment the date of the Employee’sprior termination of employment.

 

1.12                           “AnnualPerformance Cash Award” means, with respect to an Employee, the cash awardreceived by the Employee under the provisions of an Employer’s annual bonus orincentive pay plan or program, including, but without limitation because ofenumeration, the Cinergy Annual Incentive Plan, the Cinergy Non-UnionEmployees’ Incentive Plan, or any successor Plan.

 

1.13                           “AnnuityStarting Date” means, with respect to a Participant, the first day of the firstperiod for which a Plan benefit is paid as an annuity or, in the case of abenefit not payable in the form of an annuity, the first day on which allevents have occurred that entitle the Participant to the benefit.

 

1.14                           “BaseSalary” means, with respect to an Exempt Employee, the monthly base salaryreceived as remuneration for services performed for the relevant period,exclusive of any allowances, premiums, bonuses, overtime, or other forms ortypes of compensation.

 

1.15                           “BaseWage” means, with respect to a Non-Exempt Employee, the hourly base rate of payreceived as remuneration for services performed for the relevant period,exclusive of any allowances, premiums, bonuses, overtime, or other forms ortypes of compensation, multiplied by his hours worked during the applicableperiod.

 

1.16                           “Beneficiary”means, with respect to each Participant, the person or persons who are toreceive benefits under the Plan after the Participant’s death.

 

1.17                           “Boardof Directors” means the duly constituted board of directors of Cinergy on theapplicable date.

 

1.18                           “Breakin Service” means, with respect to each Regular Employee, a Period of Severanceof at least 12 consecutive months.  Withrespect to an Intermittent Employee or a Temporary Employee, a “Break inService” means a Plan Year during which he completes 500 or fewer Hours ofService.

 

1.19                           “CashBalance Account” means the notional account established and maintained for aParticipant under the Plan pursuant to Article 4A (Cash BalanceAccounts).  A Participant shall cease tohave a Cash Balance Account upon commencement of distribution (subject toreinstatement as provided in the Plan).

 

1.20                           “CashBalance Participant” means any Eligible Employee so designated in accordancewith Section 3.2 (Cash Balance Participation).

 

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1.21                           “CG&E”means The Cincinnati Gas & Electric Company, and any related companythat adopted the MRP or the RIP.

 

1.22                           “Changein Control” means any of the following events in (a), (b), (c), or (d) belowhas occurred:

 

(a)                                  AnyPerson is or becomes the beneficial owner (as defined in Rule 13d-3 underthe Securities Exchange Act), directly or indirectly, of securities of Cinergy(not including in the securities beneficially owned by such Person anysecurities acquired directly from Cinergy or its affiliates) representing morethan twenty percent (20%) of the combined voting power of Cinergy’s thenoutstanding securities, excluding any Person who becomes such a beneficialowner in connection with a transaction described in paragraph (1) ofSubsection (b) below; or

 

(b)                                 Thereis consummated a merger or consolidation of Cinergy or any direct or indirectsubsidiary of Cinergy with any other corporation, partnership or other entity,other than (1) a merger or consolidation that would result in the votingsecurities of Cinergy outstanding immediately prior to that merger orconsolidation continuing to represent (either by remaining outstanding or bybeing converted into voting securities of the surviving entity or its parent)at least sixty percent (60%) of the combined voting power of thesecurities of Cinergy or the surviving entity or its parent outstandingimmediately after the merger or consolidation, or (2) a merger orconsolidation effected to implement a recapitalization of Cinergy (or similartransaction) in which no Person is or becomes the beneficial owner, directly orindirectly, of securities of Cinergy (not including in the securitiesbeneficially owned by such a Person any securities acquired directly fromCinergy or its affiliates other than in connection with the acquisition byCinergy or its affiliates of a business) representing twenty percent (20%)or more of the combined voting power of Cinergy’s then outstanding securities;or

 

(c)                                  Duringany period of two (2) consecutive years, individuals who at the beginningof that period constitute the Board of Directors and any new director (otherthan a director whose initial assumption of office is in connection with anactual or threatened election contest, including but not limited to a consentsolicitation, relating to the election of directors of Cinergy) whoseappointment or election by Cinergy’s stockholders was approved or recommendedby a vote of at least two-thirds (2/3) of the directors then still inoffice who either were directors at the beginning of that period or whoseappointment, election, or nomination for election was previously so approved orrecommended cease for any reason to constitute a majority of the Board ofDirectors; or

 

(d)                                 Thestockholders of Cinergy approve a plan of complete liquidation or dissolutionof Cinergy or there is consummated a sale or disposition by

 

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Cinergy of allor substantially all of Cinergy’s assets, other than a sale or disposition byCinergy of all or substantially all of Cinergy’s assets to an entity, at leastsixty percent (60%) of the combined voting power of the voting securitiesof which are owned by stockholders of Cinergy in substantially the sameproportions as their ownership of Cinergy immediately prior to the sale.

 

(e)                                  Forpurposes of this Section, “Person” has the meaning set forth inparagraph 3(a)(9) of the Securities Exchange Act, as modified and used insubsections 13(d) and 14(d) of the Securities Exchange Act; however, aPerson will not include the following: (1) Cinergy or any of itssubsidiaries or affiliates; (2) a trustee or other fiduciary holdingsecurities under an employee benefit plan of Cinergy or any of its subsidiariesor affiliates; (3) an underwriter temporarily holding securities pursuantto an offering of those securities; or (4) a corporation owned, directlyor indirectly, by the stockholders of Cinergy in substantially the sameproportions as their ownership of stock of Cinergy.

 

1.23                           “Cinergy”means Cinergy Corp., a Delaware corporation, and any corporation that succeedsto its business and adopts the Plan.

 

1.24                           “Claimant”means a person submitting a claim for benefits under the Plan.

 

1.25                           “Code”means the Internal Revenue Code of 1986, as amended from time to time, andinterpretive rulings and regulations.

 

1.26                           “Committee”means the benefits committee established pursuant to Article 11(Administration) to serve as Plan administrator.

 

1.27                           “ContingentAnnuitant” means, with respect to any Participant electing a contingent pensionoption under Section 7.2 (Optional Forms of Retirement Income), the persondesignated by the Participant to receive a contingent pension after theParticipant’s death.

 

1.28                           “CoveredCompensation” means, with respect to a Participant, the average (withoutindexing) of the annual Social Security taxable wage bases under the SocialSecurity Act for each year during the 35 calendar years ending with thelast day of the calendar year in which the Participant reaches his SocialSecurity Retirement Age.  In determining a Participant’s CoveredCompensation, the Social Security taxable wage base for all calendar yearsbeginning after the year of the Participant’s Severance from Service Date isassumed to be the same as the taxable wage base in effect as of the beginningof the year in which the Participant’s Severance from Service Date occurs.  The determination of a Participant’s CoveredCompensation shall be made in accordance with Code subsection 401(l).

 

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1.29                           “DefinedBenefit Plan Fraction” means, with respect to an individual participating inone or more Qualified Defined Benefit Plans for any calendar year, thefraction, the numerator of which is the individual’s Projected Annual Benefitunder the Qualified Defined Benefit Plans (determined as of the end of thecalendar year), and the denominator of which is the lesser of:  (a) the product of 1.25 (1.0 if thePlan is a Top-Heavy Plan for the particular calendar year) multiplied by thedollar limitation in effect under Code subparagraph 415(b)(1)(A) for thatcalendar year, or (b) the product of 1.4 multiplied by the amount that maybe taken into account under Code subparagraph 415(b)(1)(B) with respect tothe individual under the Qualified Defined Benefit Plans for the calendar year.

 

1.30                           “DefinedContribution Plan Fraction” means, with respect to an individual participatingin one or more Qualified Defined Contribution Plans for any calendar year, thefraction, the numerator of which is the sum of the Annual Additions withrespect to the Participant (determined as of the close of the calendar year),and the denominator of which is the lesser of the following amounts (determinedfor that calendar year and for each prior calendar year of service with theEmployer):  (a) the product of 1.25(1.0 if the Plan is a Top-Heavy Plan for the particular calendar year)multiplied by the dollar limitation in effect under Codesubparagraph 415(c)(1)(A) for the calendar year (determined without regardto Code paragraph 415(c)(6)), or (b) the product of 1.4 multiplied bythe amount that may be taken into account under Codesubparagraph 415(c)(1)(B) with respect to that individual under allQualified Defined Contribution Plans for the calendar year.

 

1.31                           “Dependent”means any individual who is eligible for coverage under the Medical/Dental Planas the “spouse” or “dependent” of an Eligible Retiree.

 

1.32                           “DeterminationDate” means, for purposes of determining whether the Plan is a Top-Heavy Planfor any Plan Year, the last day of the preceding Plan Year, or, for the firstPlan Year, the last day of the Plan Year.

 

1.33                           “DirectRollover” means a payment by the Plan to the Eligible Retirement Plan specifiedby the Distributee.

 

1.34                           “DisabilityDate” means, with respect to a Participant, the date the Participant is firstdetermined to be totally disabled under Cinergy’s Long Term Disability Plan, asamended from time to time.

 

1.35                           “Distributee”means an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving Spouse, andthe Employee’s or former Employee’s Spouse who is the alternate payee under aQualified Domestic Relations Order are Distributees with regard to the interestof the Spouse or former Spouse.

 

1.36                           “EarlyRetirement Date” means, with respect to each Participant who has satisfied theVesting Requirement, and whose Severance from Service occurs on or after

 

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his 50th birthday but prior to hisNormal Retirement Date, the first day of the calendar month coincident with orfollowing his Severance from Service.  The Early Retirement Date definition,however, shall not apply to a Participant for periods on and after theParticipant becomes a Cash Balance Participant except as otherwise provided inArticle 4A (Cash Balance Accounts).

 

1.37                           “Earnings”means, with respect to any Employee for any period of reference, the sum of theEmployee’s:  (a) Base Salary orBase Wage, (b) Overtime Pay, (c) Shift Premiums, (d) WorkSchedule Recognition Pay, (e) Holiday Premiums, (f) Accrued VacationPay, (g) Performance Lump Sum Pay, and (h) Annual Performance CashAwards.  “Earnings” does not include(a) reimbursements or other expense allowances, (b) fringe benefits(cash and noncash) other than those named in the preceding sentence,(c) moving and relocation expenses, (d) deferred compensation,(e) welfare benefits, (f) Long-Term Performance Awards,(g) Executive Individual Incentive Awards, (h) other forms ofcompensation or remuneration that are not specifically named in the precedingsentence, or (i) any payments received by an Employee from any Affiliatethat is not an Employer.

 

Notwithstandingthe foregoing provisions of this Section, an Employee’s Earnings taken intoaccount for any Plan Year will not exceed $150,000, as adjusted pursuant toCode paragraph 401(a)(17).

 

1.38                           “EligibleEmployee” means an Employee other than a Leased Employee or an Employee whoseterms and conditions of employment are governed by a collective bargainingagreement that does not provide for participation in this Plan.  Notwithstanding the foregoing provisions ofthis Section 1.38, Eligible Employee shall not include any Employee of Vestar,Inc. whose Employment Commencement Date is after December 31, 2002.

 

1.39                           “EligibleIndividual” means an Eligible Retiree or a Dependent.

 

1.40                           “EligibleRetiree” means an individual who:

 

(a)                                  isa Retired Participant who is also eligible to participate in the Medical/DentalPlan, and

 

(b)                                 isnot a Key Employee at any time during the current Plan Year and has not been aKey Employee at any time during any previous Plan Year for which contributionswere made for that individual’s benefit to the Medical/Dental Benefits Account.

 

1.41                           “EligibleRetirement Plan” means an individual retirement account described in Codesubsection 408(a), an individual retirement annuity described in Codesubsection 408(b), an annuity plan described in Codesubsection 403(a), or a qualified trust described in Codesubsection 401(a), that accepts the Distributee’s Eligible RolloverDistribution.  However, in the case ofan Eligible Rollover

 

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Distribution to a surviving Spouse, anEligible Retirement Plan is an individual retirement account or individualretirement annuity.

 

1.42                           “EligibleRollover Distribution” means any distribution of all or a portion of thebalance to the credit of the Distributee, except that an Eligible RolloverDistribution does not include:  anydistribution that is one of a series of substantially equal periodic payments(not less frequently than annually) made for the life (or life expectancy) ofthe Distributee or the joint lives (or joint life expectancies) of theDistributee and the Distributee’s Beneficiary, or for a specified period of tenyears or more; any distribution to the extent that the distribution is requiredunder Code paragraph 401(a)(9); and the portion of any distribution thatis not includable in gross income (determined without regard to the exclusionfor net unrealized appreciation with respect to employer securities).

 

1.43                           “Employee”means any person who is employed by an Employer, other than as an employeeclassified by his Employer as a summer laborer or summer employee, and whoreceives compensation that the Employer initially reports on a federal wage andtax statement (Form W–2). For purposes of crediting Service or Years of Eligibility Service forpurposes of eligibility to participate and vesting and, except as otherwiseprovided, for purposes of the rules set out in Section 4.6 (MaximumPension) and Article 23 (Provisions Relating to Top-Heavy Plan), the term“Employee” includes a Leased Employee.

 

1.44                           “Employer”means Cinergy and any Affiliate that, with the consent of the Board ofDirectors, elects to participate in the Plan pursuant to Section 21.1(Adoption of Plan) and any successor corporation or other organization orentity that adopts the Plan pursuant to Article 22 (Continuance by aSuccessor).  If any Affiliate withdrawsfrom participation in the Plan pursuant to Section 21.2 (Withdrawal fromParticipation), that Affiliate will cease to be an Employer.

 

1.45                           “EmploymentCommencement Date” means, with respect to each Employee, the date as of whichthe Employee is first entitled to be credited with an Hour of Service.

 

1.46                           “ERISA”means the Employee Retirement Income Security Act of 1974, as amended from timeto time, and interpretive rulings and regulations.

 

1.47                           “ExecutiveIndividual Incentive Awards” means, with respect to an Employee, any cash orstock-based award (other than Annual Performance Cash Awards) received by aHighly Compensated Participant pursuant to the terms of any individualizedbonus or incentive pay plan or program, including, but without any limitationbecause of enumeration, any retention or signing bonus.

 

1.48                           “ExemptEmployee” means an Eligible Employee whose pay is customarily computed on asalaried basis, and whose employment is not subject to FLSA overtime and recordkeeping provisions.

 

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1.49                           “FinalAverage Earnings” means the average of the Participant’s Section 415Compensation over the five consecutive years of employment with his Employerthat provide the highest average, excluding compensation in years beforeJanuary 1, 1984, and compensation in years after the close of the lastPlan Year in which the Plan is determined to be a Top-Heavy Plan.

 

1.50                           “FLSA”means the Fair Labor Standards Act of 1938, as amended from time to time, andinterpretive rulings and regulations.

 

1.51                           “GroupAnnuity Contract” means Group Annuity Contract No. 9599GAC issued by JohnHancock Mutual Life Insurance Company, as amended or replaced from time totime.

 

1.52                           “HighestAverage Earnings” means a Participant’s highest average annual Earnings for anythree consecutive calendar years out of his last ten years of Participation.  However, if the Participant completes fewerthan three years of Participation, his Highest Average Earnings will mean hisaverage annual Earnings for his total years of Participation.  If a Participant is totally disabled andqualifies for benefits under Cinergy’s Long-Term Disability Plan until hisNormal Retirement Date, Early Retirement Date, or Actual Separation Date,whichever is applicable, his Severance from Service Date will be deemed forpurposes of this section to be his Disability Date.  For purposes of this Section, if a Participant’s Severance fromService Date is other than December 31, the following periods will betreated as a period of three consecutive calendar years:

 

(a)                                  Hismonths of Participation in the calendar year that includes his Severance fromService Date; plus

 

(b)                                 Thetwo (or fewer) full calendar years of Participation prior to his Severance fromService Date; plus

 

(c)                                  Fromthe calendar year immediately preceding the period described inSubsection (b), the lesser of (1) the Participant’s months ofParticipation in that year, or (2) the number of months equal to 12 minusthe number of months included pursuant to Subsection (a).  A Participant’s Earnings will be deemed tohave been earned ratably throughout the period described in thisSubsection (c).

 

1.53                           “HighlyCompensated Participant” means a highly compensated active Employee and ahighly compensated former Employee.  Ahighly compensated active Employee includes any Employee who performs servicefor the Employer during the Plan Year and who (a) is a 5% owner for thatPlan Year or was a 5% owner for the prior Plan Year; or (b) for thepreceding Plan Year received compensation from the Employer in excess of$80,000 (as adjusted pursuant to Code subsection 415(d)).  The Employer does not elect to require thata highly compensated active Employee must be a member of the Employer’stop-paid group for the preceding Plan Year.

 

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A highlycompensated former Employee includes any Employee who terminated employment (orwas deemed to have terminated employment) prior to the Plan Year, performs noservice for the Employer during the Plan Year, and was a highly compensatedactive Employee for either the Plan Year during which he terminated employmentor any Plan Year ending on or after the Employee’s 55th birthday.

 

Thedetermination of who is a Highly Compensated Participant, including thedetermination of the compensation that is considered, will be made inaccordance with Code subsection 414(q).

 

1.54                           “HolidayPremiums” means, with respect to a Non-Exempt Employee, the compensationreceived as a premium for services performed for the relevant period forworking on a holiday recognized by the Employer pursuant to its applicablepolicy.

 

1.55                           “Hourof Service” means, with respect to any Employee, any of the following:

 

(a)                                  eachhour for which he is paid, or entitled to payment, by an Employer for theperformance of duties for that Employer;

 

(b)                                 eachother hour for which back pay, irrespective of mitigation of damages, has beeneither awarded to him or agreed to be paid to him by an Employer;

 

(c)                                  eachother hour for which he is absent from his normal period of employment with hisEmployer due to an approved military leave, maternity leave, paternity leave,adoption leave, worker’s compensation leave, personal leave of six consecutivemonths or less, sick leave of six consecutive months or less, or totaldisability qualifying him for benefits under Cinergy’s Long-Term DisabilityPlan for a period of no more than twelve months for all purposes except that aParticipant can receive more than twelve months for purposes of determining hisParticipation under Section 1.73; and

 

(d)                                 eachother hour for which he is paid, or entitled to payment, by an Employer for aperiod of time during which he does not perform any duties for that Employer(irrespective of whether or not his employment relationship with that Employerhas terminated) due to vacation, holiday, illness, incapacity (includingdisability), layoff, jury duty, witness duty, military duty, or leave ofabsence.

 

In computingan Hour of Service, the Plan may use the equivalencies set forth inparagraph (e) of 29 C.F.R. §2530.200b–3.  However, if different equivalencies are usedfor different classifications of Employees, then those classifications must bereasonable and consistently applied. Each Hour of Service will be credited to the Employee for theappropriate computation period in accordance with the

 

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provisions ofparagraphs (b) and (c) of 29 C.F.R. §2530.200b–2, and each Hourof Service, when aggregated for a particular computation period, willconstitute the Hours of Service credited to the Employee for that computationperiod.  However, no Employee will becredited under Subsection (d) either with more than 501 Hours ofService on account of any single continuous period during which the Employeeperforms no duties for an Employer irrespective of whether or not that period occursin a single computation period, or with an hour for which the Employee is paid,or entitled to payment, by an Employer if that payment is made solely for thepurposes of either reimbursing the Employee for medical or medically relatedexpenses incurred by the Employee or complying with applicable worker’scompensation, unemployment compensation, or disability insurance laws.  However, the crediting of Hours of Servicefor back pay awarded or agreed to with respect to periods described inSubsection (d) of this Section will be subject to the same limitations setforth in the immediately preceding sentence with respect toSubsection (d).

 

1.56                           “InitialSeparation Date” means, with respect to a Participant who is entitled tobenefits under the provisions of Section 5.1 (Vesting Requirement),Section 5.2 (Severance from Service Before Vesting), or Section 5.3(Severance from Service After Vesting), the first day of the calendar monthcoincident with or following the Participant’s initial Severance from ServiceDate.

 

1.57                           “InsuranceCompany” means any insurance company holding any part of the Pension Fund.

 

1.58                           “InterestCredits” means the credits to the Cash Balance Account described inSection 4.3A (Interest Credits).

 

1.59                           “IntermittentEmployee” means an Eligible Employee who performs services intermittently fromtime to time as needed by the Employer and as mutually agreed by the Employerand the Employee.  An Employee who is an Intermittent Employeeand becomes a Cash Balance Participant shall be deemed to have become and to bea Regular Employee (and not an Intermittent Employee) for periods on and afterthe first day on which he becomes a Cash Balance Participant.

 

1.60                           “KeyEmployee” means an Employee or former Employee of an Employer who, at any timeduring the determination period, is:

 

(a)                                  anofficer of an Employer having annual Section 415 Compensation from hisEmployer greater than 50 percent of the amount in effect under Codesubparagraph 415(b)(1)(A) for any Plan Year;

 

(b)                                 oneof the ten Employees having annual Section 415 Compensation from hisEmployer of more than the limitation in effect under Codesubparagraph 415(c)(1)(A) and owning (or considered as owning within themeaning of Code section 318) the largest interests in the Employer.

 

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(c)                                  theowner (or considered as the owner within the meaning of Code section 318)either of more than five percent of the outstanding stock of Cinergy, or stockpossessing more than five percent of the total combined voting power of allstock of Cinergy; or

 

(d)                                 therecipient of at least $150,000 in annual Section 415 Compensation from theEmployer and who owns (or is considered as owning within the meaning of Codesection 318) either more than one percent of the outstanding stock ofCinergy or stock possessing more than one percent of the total combined votingpower of all stock of Cinergy.

 

However, nomore than 50 Employees of an Employer will be deemed to be officers forany particular Plan Year.  Also, theterm Key Employee includes the beneficiaries of a Key Employee.  For purposes of Subsection (b) above,if two Employees have the same interest in the Employer, the Employee havinggreater annual Earnings from his Employer will be treated as having a largerinterest.  The determination of who is aKey Employee will be made in accordance with Code paragraph 416(i)(1).

 

1.61                           “LeasedEmployee” means any person who performs services for another person, the“recipient,” but who is not an employee of the recipient, if (a) theservices are provided pursuant to an agreement between the recipient and anyother person, (b) the person has performed the services for the recipient(or for the recipient and related persons) on a substantially full-time basisfor a period of at least one year, and (c) the services are performedunder the primary direction and control of the recipient.  A Leased Employee will not be considered anemployee of the recipient if:

 

(a)                                  thatemployee is covered by a money purchase pension plan providing:

 

(1)                                  anon-integrated employer contribution rate of at least 10 percent ofcompensation, as defined in Code paragraph 415(c)(3), but includingamounts contributed pursuant to a salary reduction agreement that areexcludable from the Employee’s gross income under Code section 125, Codeparagraph 402(a)(8), or Code subsections 402(h) or 403(b);

 

(2)                                  immediateparticipation;

 

(3)                                  fulland immediate vesting; and

 

(b)                                 leasedemployees do not constitute more than 20 percent of the recipient’snon-highly compensated work force.

 

1.62                           “Long-TermPerformance Awards” means, with respect to an Employee, the cash or stock-basedaward received by the Employee pursuant to the provisions of an Employer’slong-term bonus or incentive pay plan or program, including, but

 

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without limitation because of enumeration,the Cinergy Performance Shares Plan or the Cinergy 1996 Long-Term IncentiveCompensation Plan.

 

1.63                           “Medical/DentalBenefits” means the benefits specified and payable under Section 9.8(Medical/Dental Benefits) from the Medical/Dental Benefits Account.

 

1.64                           “Medical/DentalBenefits Account” means the separate account established pursuant toArticle 9 (Retiree Medical/Dental Benefits) for contributions to fundbenefits payable under Article 9 (Retiree Medical/Dental Benefits).

 

1.65                           “Medical/DentalPlan” means any plan or program that is established by the Employer to providemedical or dental insurance coverage or medical or dental expensereimbursements to Eligible Individuals.

 

1.66                           “MRP”means The Cincinnati Gas & Electric Company Management RetirementPlan, as in effect immediately prior to January 1, 1998.

 

1.67                           “Non-ExemptEmployee” means an Eligible Employee whose pay is customarily computed on anhourly, weekly, or bi-weekly basis, and whose employment is subject to FLSAovertime and record keeping provisions.

 

1.68                           “Nonforfeitable”means, with respect to a Participant’s claim for benefits under the Plan, thatthe claim is unconditional, legally enforceable, and not subject to divestmentexcept in accordance with the Plan’s specific provisions, including, butwithout limitation because of enumeration, the provisions of Section 15.3(Sufficiency of Pension Fund).

 

1.69                           “NormalRetirement Date” means, with respect to each Participant, the first day of thecalendar month coincident with or following his 65th birthday.

 

1.70                           “OptionEffective Date” means a Participant’s Actual Separation Date, unless furtherextended with respect to a Participant making a timely election during theapplicable election period, in which case the Option Effective Date will be thefirst day of the calendar month coincident with or following the last day ofthe applicable election period, provided he has timely elected the option on orbefore that date.

 

1.71                           “OvertimePay” means, with respect to an Employee, the compensation received asremuneration consistent with the requirements of the FLSA, or for servicesperformed for the relevant period for hours worked beyond the Employee’sregularly scheduled work hours pursuant to the Employer’s applicable policy.

 

1.72                           “Participant”means any Eligible Employee who has met the eligibility requirements set forthin Article 3 (Eligibility and Participation) and for whom benefits are tobe provided under the Plan.

 

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1.73                           “Participation”means, with respect to an Eligible Employee, the period of time during which heis treated as a Participant in the Plan, the length of which will be determinedas follows:

 

(a)                                  ARegular Employee will be credited with Participation for the period of timebeginning with the later of (1) January 1, 1998, or (2) hisEmployment Commencement Date and ending on his Severance from Service Date.

 

(b)                                 ARegular Employee will be credited with Participation for any Period of CreditedSeverance during which he is a Participant or former Participant.

 

(c)                                  AnIntermittent Employee or Temporary Employee who has become a Participantpursuant to Section 3.2 (Intermittent Employees and Temporary Employees)will be credited, retroactively if necessary, with Participation beginning onthe later of (1) January 1, 1998, or (2) his EmploymentCommencement Date.  An IntermittentEmployee or Temporary Employee will be credited with one year of Participationfor each Plan Year in which he completes at least 1,000 Hours ofService.  An Intermittent Employee orTemporary Employee will not be credited with any Participation for any PlanYear in which he completes less than 1,000 Hours of Service.

 

(d)                                 Ifan Intermittent or Temporary Employee becomes a Regular Employee on a dateother than the first day of a Plan Year, all of his Hours of Service completedduring the Plan Year in which the change in employment status occurred will becounted.  If the Employee completes atleast 1,000 Hours of Service during that Plan Year, he will be creditedwith one year of Participation for the Plan Year in which the changeoccurred.  If the Employee does notcomplete at least 1,000 Hours of Service during the Plan Year in which thechange occurred, he will be credited with one month of Participation for eachcalendar month during that Plan Year in which he is credited with at least oneHour of Service as a Regular Employee.

 

(e)                                  Notwithstandingany other provision of this Plan to the contrary, an Eligible Employee whoaccrued “years of accredited service” (as defined in the MRP and the RIP) underthe MRP or the RIP or “years of participation” (as defined in the PSI Plan)under the PSI Plan will be credited with years of Participation under this Planfor the years of accredited service credited to him under the MRP or the RIPand the years of participation credited to him under the PSI Plan beforeJanuary 1, 1998.

 

(f)                                    Indetermining an Eligible Employee’s total Participation for purposes of thePlan, all periods of service that are credited to the Employee underSubsections (a) through (e) above will be aggregated.  In no event will an Employee be creditedmore than once for the same period of Participation.

 

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(g)                                 NotwithstandingSubsection (f), if an Eligible Employee is a Reemployed Retiree or aReemployed Terminated Vested Participant, and his “years of participation” (asdefined in the PSI Plan) under the PSI Plan or his “years of accreditedservice” (as defined in the MRP or RIP) under the MRP or RIP were subject to amaximum under the pension formula applicable to the Eligible Employee at thetime he incurred a Severance from Service, that Eligible Employee’s totalParticipation when he again incurs a Severance from Service under the Plan willnot exceed the sum of his maximum pre-1998 years and the Eligible Employee’syears of Participation during his period of reemployment.

 

1.74                           “PayCredits” means the credits to the Cash Balance Account described inSection 4.2A (Pay Credits).

 

1.75                           “PensionFund” or “Fund” means the fund established in consequence of and for thepurposes of the Plan to provide the benefits under the Plan, including allfunds held in all trusts and group annuity contracts that are being used asfunding media for the Plan.

 

1.76                           “PerformanceLump Sum Pay” means, with respect to an Exempt Employee or a Non-ExemptEmployee, the compensation received as remuneration based upon the Employee’sperformance when the Employer’s applicable merit pay policy would otherwisepreclude a performance based increase.

 

1.77                           “Periodof Credited Severance” means, with respect to each Regular Employee who hasincurred a Severance from Service, and who, within 12 Months of hisSeverance from Service Date, performs an Hour of Service, the Period ofSeverance commencing on the Regular Employee’s Severance from Service Date andending on the date thereafter upon which he first performs an Hour of Service.  In the case of a Regular Employee who hasincurred a Severance from Service that occurs during an Absence from Service byreason of a maternity or paternity absence as defined inSubsection 1.99(b), the period between the first and second anniversariesof the first day of absence will not be a Period of Credited Severance.

 

1.78                           “Periodof Severance” means, with respect to each Regular Employee, the period of timecommencing on his Severance from Service Date and ending on the date thereafterupon which he first performs an Hour of Service.

 

1.79                           “PermissiveAggregation Group” means an Aggregation Group that may include any other plannot required to be included in the Required Aggregation Group, provided theresulting group, taken as a whole, would continue to satisfy the provisions ofCode paragraph 401(a)(4) and Code section 410.

 

1.80                           “Plan”means the pension plan known as the “Cinergy Corp. Non-Union Employees’ PensionPlan,” as amended, from time to time. As effective January 1, 2003, this document sets forth the Plan.

 

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1.81                           “PlanYear” means the calendar year.

 

1.82                           “PresentValue of Accrued Benefits” means, with respect to Top-Heavy Plan status, thesum of:

 

(a)                                  thepresent value of the Plan’s accrued benefits using the 1994 Group AnnuityReserving Table with a 50/50 mix of males and females and 7–1/2%interest, and

 

(b)                                 anyPlan distributions made within the Plan Year that includes the DeterminationDate or within the four preceding Plan Years. However, in the case of distributions made after the Valuation Date andprior to the Determination Date, the distributions are not included asdistributions for Top-Heavy Plan purposes to the extent that the distributionsare already included in the Participant’s present value of accrued benefits asof the Valuation Date.

 

1.83                           “ProjectedAnnual Benefit” means, with respect to any Participant participating in aQualified Defined Benefit Plan maintained by an Employer or an Affiliate, theannual straight life annuity benefit to which the Participant would be entitledunder that Qualified Defined Benefit Plan based upon the following assumptions:

 

(a)                                  theParticipant will continue as an employee of an Employer until reaching theParticipant’s normal retirement age under the plan (or the Participant’scurrent age if that is later);

 

(b)                                 theParticipant’s compensation used to determine benefits under the plan for thecalendar year under consideration will remain the same until the date theParticipant attains the age described in Paragraph (a); and

 

(c)                                  allother relevant factors used to determine benefits under the plan for thecalendar year under consideration will remain constant for all future calendaryears.

 

1.84                           “PSIPlan” means the PSI Energy, Inc. Pension Plan, as in effect immediately priorto January 1, 1998.

 

1.85                           “QualifiedDefined Benefit Plan” means any qualified defined benefit plan as defined inCode subsections 414(j) and 415(k).

 

1.86                           “QualifiedDefined Contribution Plan” means any qualified defined contribution plan asdefined in Code subsections 414(i) and 415(k).

 

1.87                           “QualifiedDomestic Relations Order” means a qualified domestic relations order as definedin Code subsection 414(p).

 

1.88                           “ReducedPrimary Social Security Benefit” means the reduced amount of primary federalold age insurance benefit estimated by the Committee that is, or would be,

 

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payable or estimated to become payable to aParticipant at his earliest eligibility date. The estimate is based on the Social Security Act as in effect at theParticipant’s Option Effective Date.  Ifa Participant supplies documentation from the Social Security Administration ofhis or her actual Reduced Primary Social Security Benefit at least 60 daysbefore his or her Option Effective Date, that amount will be used in lieu ofthe estimate referred to above.  AReduced Primary Social Security Benefit calculated using actual documentationwill not be recalculated.

 

1.89                           “ReemployedRetiree” means a Participant, other than a Terminated Vested Participant, whois reemployed by an Employer after his Initial Separation Date or an AdditionalSeparation Date.

 

1.90                           “ReemployedTerminated Vested Participant” means a Terminated Vested Participant who isreemployed by an Employer after his Initial Separation Date or an AdditionalSeparation Date.

 

1.91                           “ReemploymentCommencement Date” means, with respect to an Eligible Employee who incurs aSeverance from Service and is later reemployed by an Employer, the date uponwhich the Eligible Employee first performs an Hour of Service after hisreemployment.

 

1.92                           “RegularEmployee” means an Eligible Employee who is not an Intermittent Employee or aTemporary Employee.  An Employee who is an Intermittent orTemporary Employee and becomes a Cash Balance Participant shall be deemed tohave become and to be a Regular Employee (and not an Intermittent Employee orTemporary Employee) for periods on and after the first day on which he becomesa Cash Balance Participant.

 

1.93                           “RequiredAggregation Group” means an Aggregation Group consisting of each plan of anEmployer, including any terminated plan, in which a Key Employee has been aParticipant in the Plan Year containing the Determination Date or any of thefour preceding Plan Years, and each other plan of the Employer that enables anyplan in which a Key Employee participates to meet the requirements of Codesubsection 401(a) or Code section 410.

 

1.94                           “RetiredParticipant” means a former Participant, other than a Terminated VestedParticipant, while alive on and after his Actual Separation Date.

 

1.95                           “RIP”means The Cincinnati Gas & Electric Company Retirement Income Plan, asin effect immediately prior to January 1, 1998.

 

1.96                           “Section 415Compensation” means an Eligible Employee’s earned income, wages, salaries, andfees for professional services, and other amounts received for personalservices actually rendered in the course of employment with the Employer(including, but not limited to, commissions paid salesmen, compensation forservices on the basis of a percentage of profits, commissions on

 

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insurance premiums, tips and bonuses) and,except as provided in the following sentence, excluding the following:  (a) Employer contributions to a plan ofdeferred compensation that are not included in the Employee’s gross income forthe taxable year in which contributed or any distributions from a plan ofdeferred compensation; (b) amounts realized from the exercise of anonqualified stock option, or when restricted stock (or property) held by theEmployee either becomes freely transferable or is no longer subject to asubstantial risk of forfeiture; and (c) amounts realized from the sale,exchange, or other disposition of stock acquired under a qualified stockoption.  Notwithstanding the foregoing,Section 415 Compensation will include any elective deferral as defined inCode paragraph 402(g)(3) and amounts contributed by an Employer pursuantto a salary reduction agreement that are excludable from the Employee’s grossincome under Code section 125 or 457.  For limitation years beginning on and afterJanuary 1, 2001, for purposes of applying the limitations described inSection 4.6 (Maximum Pension) of the Plan, Section 415 Compensationpaid or made available during such limitation year shall include electiveamounts that are not includable in the gross income of the Employee by reasonof Code paragraph 132(f)(4).

 

1.97                           “SecuritiesExchange Act” means the Securities Exchange Act of 1934, as amended from timeto time, and interpretive rulings and regulations.

 

1.98                           “Service”means, with respect to an Eligible Employee, the period of time during whichthe employment relationship exists between the Eligible Employee and theEmployer, the length of which is determined as follows:

 

(a)                                  ARegular Employee will be credited with Service for the period of time beginningwith his Employment Commencement Date and ending on his Severance from ServiceDate.

 

(b)                                 ARegular Employee will be credited with Service for each Period of CreditedSeverance.

 

(c)                                  AnIntermittent Employee or Temporary Employee who has completed one Year ofEligibility Service will be credited, retroactively if necessary, with Servicebeginning on his Employment Commencement Date. An Intermittent Employee or Temporary Employee will be credited with oneyear of Service for each Plan Year in which he completes at least1,000 Hours of Service.  AnIntermittent Employee or Temporary Employee will not be credited with anyService for any Plan Year in which he completes less than 1,000 Hours ofService.

 

(d)                                 Ifan Intermittent or Temporary Employee becomes a Regular Employee on a dateother than the first day of a Plan Year, all of his Hours of Service completedduring the Plan Year in which the change in employment status occurred will becounted.  If the Employee completes atleast 1,000 Hours of Service during that Plan Year, he will be creditedwith one year of Service for the Plan Year in which the change occurred.  If the Employee

 

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does notcomplete at least 1,000 Hours of Service during the Plan Year in which thechange occurred, he will be credited with one month of Service for eachcalendar month during that Plan Year in which he is credited with at least oneHour of Service as a Regular Employee.

 

(e)                                  AnEligible Employee will be credited with Service for any period of Service withan Affiliate (including an Employer) after he has reached age 18, whichfor an Affiliate will be determined as if he had been employed by the Employerduring that period.

 

(f)                                    Notwithstandingany other provision of the Plan to the contrary, any Eligible Employee whoaccrued “years of service” (as defined in the PSI Plan) under the PSI Plan or“years of vesting service” (as defined in the MRP or RIP) under the MRP or theRIP will be credited with Service for the years of service credited to himunder the PSI Plan and the years of vesting service credited to him under theMRP or RIP before January 1, 1998.

 

(g)                                 Indetermining an Eligible Employee’s total Service for purposes of the Plan, allperiods of Service that are credited to the Employee under Subsections (a)through (f) above will be aggregated, subject to the provisions in Section 14.2(Reemployment).  In no event will anEmployee receive credit more than once for the same period of Service.

 

1.99         “Severance from Service” means, withrespect to an Employee:

 

(a)                                  thedate of termination of his employment relationship with his Employer by reasonof a quit, resignation, discharge, retirement, death, or layoff of the Employeefor an indefinite period of time made without any expectation on the part ofthe Employer at the time of layoff to recall the Employee, for employment withthe Employer as an Employee within 12 months from the date of thecommencement of the layoff; or

 

(b)                                 thefirst anniversary of the first date of the Employee’s Absence from Service or,if later, and solely for purposes of determining a Participant’s Participationunder Section 1.73 (Participation), the expiration of an Absence fromService.  Notwithstanding the precedingsentence, if an Employee has an Absence from Service of more than one year byreason of a maternity or paternity absence, the Employee’s Severance fromService occurs on the second anniversary of that absence; provided that theperiod between the first and second anniversaries of the first day of suchAbsence from Service is neither a period of service nor a period ofseverance.  For purposes of thisSubsection, an Absence from Service for maternity or paternity reasons means anabsence (1) by reason of the pregnancy of the individual, (2) byreason of the birth of a child of that individual, (3) by reason of theplacement of a child with the individual in connection with the adoption of thechild by that individual, or (4) for

 

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purposes ofcaring for the child for a period beginning immediately following its birth orplacement.

 

For purposesof this Subsection, the term “Employer” includes all Affiliates, and anEmployee or former Employee will not be treated as having incurred a Severancefrom Service until the employment relationship between the Employee and allEmployers and Affiliates is terminated.

 

1.100       “Severance from Service Date” means, withrespect to each Employee, the date of his Severance from Service.

 

1.101                     “ShiftPremiums” means, with respect to a Non-Exempt Employee, the compensationreceived as a premium for services performed for the relevant period for workinga shift other than the Employer’s regular day shift pursuant to the Employer’sapplicable policy.

 

1.102                     “SocialSecurity Act” means the federal Social Security Act, 42 U.S.C. §301, et seq.,as amended from time to time, and interpretive rulings and regulations.

 

1.103                     “SocialSecurity Retirement Age” means respectively (a) age 65 for aParticipant born before January 1, 1938; (b) age 66 for aParticipant born after December 31, 1937, but before January 1, 1955;and (c) age 67 for a Participant born after December 31, 1954.

 

1.104                     “Spouse”means, with respect to any Participant, the Participant’s lawfully marriedspouse, if any, on the applicable date. The Plan will not recognize common law marriages or similar arrangementsunless required to do so by federal law. A former Spouse will also be considered a Spouse to the extent providedunder a Qualified Domestic Relations Order.

 

1.105                     “SuperTop-Heavy Plan” means a Qualified Defined Benefit Plan or a Qualified DefinedContribution Plan described in Section 23.2 (Top-Heavy Determination).

 

1.106                     “TemporaryEmployee” means an Eligible Employee who is regularly scheduled to work lessthan 20 hours per week or to work on a non-fixed schedule.  An Employee who is a Temporary Employee andbecomes a Cash Balance Participant shall be deemed to have become and to be aRegular Employee (and not a Temporary Employee) for periods on and after thefirst day on which he becomes a Cash Balance Participant.

 

1.107                     “TerminatedVested Participant” means a Participant who is entitled to benefits under theprovisions of Section 5.3 (Severance from Service After Vesting).

 

1.108                     “Top-HeavyGroup” means an Aggregation Group described in Section 23.2 (Top-HeavyDetermination).

 

1.109                     “Top-HeavyPlan” means a Qualified Defined Benefit Plan or a Qualified DefinedContribution Plan described in Section 23.2 (Top-Heavy Determination).

 

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1.110                     “Top-HeavyPlan Year” means a particular Plan Year for which the Plan is a Top-Heavy Plan.

 

1.111                     “TrustFund” means the trust established by the Employer to fund the Plan.

 

1.112                     “Trustee”means the person or entity designated by Cinergy to act as trustee of any trustforming a part of the Pension Fund.

 

1.113                     “ValuationDate” means, in connection with Article 23 (Provisions Relating toTop-Heavy Plans), the most recent valuation date for minimum funding purposesunder the Plan that falls within or ends with the 12 month period endingon the Determination Date.

 

1.114                     “VestingRequirement” means, with respect to each Participant, the requirements for thevesting of his accrued benefits under the Plan.

 

1.115                     “WorkSchedule Recognition Pay” means, with respect to an Exempt Employee, thecompensation received as remuneration for services performed for the relevantperiod for working a shift other than the Employer’s regular day shift pursuantto the Employer’s applicable policy.

 

1.116                     “Yearof Eligibility Service” means, with respect to an Intermittent Employee or aTemporary Employee, a measuring year during which he completes at least1,000 Hours of Service.  The firstmeasuring year begins on the Employee’s Employment Commencement Date (or, withrespect to any periods after a Severance from Service, his ReemploymentCommencement Date) and subsequent measuring years will be the Plan Year,beginning with the first Plan Year that begins after the Employee’s EmploymentCommencement date (or, if applicable, Reemployment Commencement Date).  If an Intermittent Employee or a TemporaryEmployee has a Severance from Service during a measuring year and has asubsequent Reemployment Commencement Date during that measuring year,then:  (a) for purposes ofdetermining whether the Employee accumulated a Year of Eligibility Serviceduring the measuring year, the total Hours of Service accumulated by theEmployee during that measuring year both before and after the Severance fromService will be aggregated, and (b) for purposes of determining whetherthe Employee accumulated a Year of Eligibility Service during the measuringyear commencing on his Reemployment Commencement Date, the total Hours ofService accumulated by the Employee during that subsequent measuring year willbe aggregated.

 

The uses ofsingular and masculine words are for practical purposes only and will be deemedto include the plural and feminine, respectively, unless the context plainlyindicates a distinction.  Certain otherdefinitions, as required, appear in the following Articles of the Plan.

 

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ARTICLE 2

 

EFFECTIVE DATEOF PLAN

 

The originaleffective date of the MRP was January 1, 1990.  The effective date of this Plan restatement is January 1,2003 (except where an interim effective date is otherwise provided), as toCinergy, and will be effective with respect to any other Employer as of thedate that Employer elects to participate in the Plan pursuant toSection 21.1 (Adoption of Plan).

 

This Planrestatement applies only to Eligible Employees who are credited with at leastone Hour of Service on or after January 1, 2003.  This Plan restatement will not affect the rights of formerEligible Employees (and their Beneficiaries) who retired, died, or otherwiseterminated their employment with an Employer prior to January 1, 2003,except that such persons shall be subject to (i) the general administrativeprovisions of the Plan, (ii) any provisions of the Plan required by the Code,ERISA or other legislative or regulatory pronouncements to be effective priorto the effective date of this January 1, 2003 restatement (and only to theextent so required) and (iii) any provisions of the Plan as otherwise providedherein.  The rights, if any, of thoseformer Eligible Employees (and their Beneficiaries), and the amounts of theirbenefits, if any, will be governed by the provisions of the PSI Plan, the RIPor the MRP, or the provisions of the Plan as in effect prior to January 1,2003, whichever is applicable, except that such persons shall be subject to (i)the general administrative provisions of the Plan, (ii) any provisions of thePlan required by the Code, ERISA or other legislative or regulatorypronouncements to be effective prior to the effective date of this January 1,2003 restatement (and only to the extent so required) and (iii) any provisionsof the Plan as otherwise provided herein.

 

ARTICLE 3

 

ELIGIBILITYAND PARTICIPATION

 

3.1           Date of Participation

 

Each Employeewho is an Eligible Employee on January 1, 2003, and who was participatingin the Plan as of December 31, 2002, will become a Participant as ofJanuary 1, 2003.  Except asprovided in Section 3.3 (Intermittent Employees and Temporary Employees),each other Eligible Employee will automatically become a Participant on thelatest of January 1, 2003, his Employment Commencement Date, or the datehe reaches age 18.  An Eligible Employeewho becomes a Participant, subsequently incurs a Severance from Service, and islater reemployed by an Employer will again become a Participant on hisReemployment Commencement Date.

 

3.2           CashBalance Participation

 

Each Employee who becomes a Cash BalanceParticipant in accordance with this Section 3.2 (Cash Balance Participation)shall accrue a benefit while a Cash

 

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Balance Participant only under the terms ofthe Plan that are applicable to Cash Balance Participants.  The accrued benefit under the Plan (if any)of the Employee prior to becoming a Cash Balance Participant shall bedetermined as if the Employee had terminated employment with the Employer andall Affiliates as of the date immediately prior to becoming a Cash BalanceParticipant or, if earlier, for an Employee who becomes a Cash BalanceParticipant upon reemployment the date of the Employee’s prior termination ofemployment.

 

(a)                                  ParticipantsWho Choose in 2002 to Become a Cash Balance Participant.  Each Employee who attains age 18 on orbefore December 31, 2002 and who is an Eligible Employee on December 31,2002 may elect in the form and manner and during an election period prior toDecember 31, 2002 as prescribed by the Committee to become a Cash BalanceParticipant, and if he has so elected and is an Eligible Employee on December31, 2002, he shall become a Cash Balance Participant effective as ofJanuary 1, 2003.  An election tobecome a Cash Balance Participant shall designate whether the formula describedin Subsection 4.2A(a) (Balanced Formula) or Subsection 4.2A(b)(Investor Formula) shall cover the Cash Balance Participant.  An Eligible Employee who elects to become aCash Balance Participant during the applicable election period, dies after theapplicable election period and prior to December 31, 2002, shall be deemed tobe a Cash Balance Participant effective immediately prior to the EligibleEmployee’s death.

 

(b)                                 NewEmployees Who First Become Eligible to Participate in the Plan After 2002.  Each Eligible Employee who is not aparticipant in another defined benefit plan maintained by the Employer andfirst becomes a Participant on or after January 1, 2003 shall become aCash Balance Participant as of the date he becomes a Participant, but shallaccrue no benefit under the Plan until the Participant makes or is deemed tohave made an election as provided in the immediately following sentence.  An Eligible Employee who becomes a CashBalance Participant in accordance with this Subsection (b) shall becovered as of the date he becomes a Cash Balance Participant by the formuladescribed in Subsection 4.2A(a) (Balanced Formula) or Subsection 4.2A(b)(Investor Formula) as elected by the Eligible Employee in the form and mannerand during the election period prescribed by the Committee and shall be coveredby the formula described in Subsection 4.2(a) (Balanced Formula) if noeffective election is made.

 

(c)                                  TransferEmployees

 

(1)                                  NewParticipant who Transfers from Choice Plan.  Each Eligible Employee who first becomes a Participant on orafter January 1, 2003 and who immediately prior to becoming an EligibleEmployee is a participant in one or more defined benefit plans maintained bythe Employer that covered the participant (pursuant

 

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to the participant’s election) under a cashbalance formula shall become a Cash Balance Participant as of the date hebecomes a Participant.  An EligibleEmployee who becomes a Cash Balance Participant in accordance with thisParagraph (1) shall be covered as of the date he becomes a Cash BalanceParticipant by the formula described in Subsection 4.2A(a) (BalancedFormula) or Subsection 4.2A(b) (Investor Formula) that corresponds to hiselection (of the balanced formula or investor formula) under the other definedbenefit plan(s) maintained by the Employer.

 

(2)                                  NewParticipant who Transfers from Non-Choice Plan.  Each Eligible Employee who first becomes a Participant on orafter January 1, 2003 and who immediately prior to becoming an EligibleEmployee is a participant in one or more other defined benefit plans maintainedby the Employer but was never in a class of employees who were given a choiceto participate in a cash balance formula may elect in the form and manner andduring the election period prescribed by the Committee to become a Cash BalanceParticipant, and if he has so elected shall become a Cash Balance Participantas of the date he becomes a Participant. Notwithstanding anything to the contrary in the Plan, an EligibleEmployee described in the immediately preceding sentence shall accrue nobenefit under the Plan until the earlier of when the Participant makes anelection or the election period has expired. An Eligible Employee who becomes a Cash Balance Participant inaccordance with this Paragraph (2) shall be covered as of the date hebecomes a Cash Balance Participant by the formula described in Subsection 4.2A(a)(Balanced Formula) or Subsection 4.2A(b) (Investor Formula) as elected bythe Eligible Employee in the form and manner and during the election periodprescribed by the Committee (and shall not be a Cash Balance Participant if noeffective election is made).

 

(3)                                  TransferredCash Balance Participants.  EachEligible Employee who becomes a Cash Balance Participant, subsequentlytransfers to employment in which he is not an Eligible Employee, and is latertransferred to employment as an Eligible Employee, will again become a CashBalance Participant effective as of the first day of the month during which hischange in Employee status becomes effective and will be covered by the formuladescribed in Subsection 4.2A(a) (Balanced Formula) orSubsection 4.2A(b) (Investor Formula) under which the Eligible Employeewas previously covered.

 

(d)                                 ReemployedCash Balance Participant.  EachEligible Employee who becomes a Cash Balance Participant, subsequently incurs aSeverance

 

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from Service, and is later reemployed by anEmployer (as an Eligible Employee) will again become a Cash Balance Participanteffective on his Reemployment Commencement Date.  An Eligible Employee who again becomes a Cash Balance Participantin accordance with this Subsection (d) shall be covered by the formuladescribed in Subsection 4.2A(a) (Balanced Formula) orSubsection 4.2A(b) (Investor Formula) under which the Eligible Employeewas previously covered.

 

(e)                                  ReemployedEmployees Who Never Had Retirement Choice. Each Eligible Employee who was a Participant, but was never given theopportunity to elect to become a Cash Balance Participant, and is laterreemployed by an Employer (as an Eligible Employee) will become a Cash BalanceParticipant effective on his Reemployment Commencement Date, but shall accrueno benefit under the Plan based on his becoming a Cash Balance Participantuntil the Participant makes or is deemed to have made an election as providedin the immediately following sentence. An Eligible Employee who first becomes a Cash Balance Participant inaccordance with this Subsection (e) shall be covered as of the date hebecomes a Cash Balance Participant by the formula described inSubsection 4.2A(a) (Balanced Formula) or Subsection 4.2A(b) (InvestorFormula) as elected by the Eligible Employee in the form and manner and duringthe election period prescribed by the Committee and shall be covered by theformula described in Subsection 4.2A(a) (Balanced Formula) if no effectiveelection is made.

 

(f)                                    EmployeesWho Are Not Cash Balance Participants. An Eligible Employee who is not described in one or more of theforegoing Subsections 3.2(a)-(e), including but not limited to an EligibleEmployee who immediately prior to becoming an Eligible Employee is aparticipant under one or more defined benefit plans maintained by an Employerthat covered the participant (pursuant to the participant’s election) under atraditional formula, shall not become a Cash Balance Participant.  Notwithstanding the foregoing, no EligibleEmployee who is entitled to benefits under Section 4.9 shall become a CashBalance Participant.

 

3.3           Intermittent Employeesand Temporary Employees

 

Notwithstandingthe provisions in Section 3.1 (Date of Participation) andSubsection 3.2(b), an Intermittent Employee or a Temporary Employee whowas not participating in the Plan as of December 31, 2002, who waseligible to make the election described in Subsection 3.2(a), and who didnot elect to become a Cash Balance Participant in accordance with Subsection 3.2(a),will not become a Participant until he has completed one Year of EligibilityService and reached age 18.  Uponcompletion of one Year of Eligibility Service and reaching age 18, anIntermittent or Temporary Employee described in this Section will become a Participant,but not a Cash Balance Participant, retroactive to the later of

 

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January 1,2003, his Employment Commencement Date, or the date he reached age 18.

 

3.4           LeasedEmployees

 

A LeasedEmployee will be excluded from participation in the Plan.  However, if a Leased Employee issubsequently employed by an Employer as an Eligible Employee, his time as aLeased Employee of an Employer and any period described in Codesubparagraph 414(n)(4)(B) will be considered for purposes of determiningeligibility under this Article and vesting under Article 5 (Severance fromService -- Vesting).

 

3.5           Transfersof Employment

 

If aParticipant is transferred from one Employer to another or from an Employer toan Affiliate, he will continue to participate in the Plan until an event occursthat would have terminated his participation had he continued in the service ofan Employer, except that payments received by a Participant from any Affiliatethat is not an Employer will not be treated as Earnings for purposes ofdetermining the amount of retirement benefits to which the Participant will beentitled.  Any period of employment withan Affiliate that is not an Employer will be taken into account for purposes ofdetermining when an Employee is eligible to participate in the Plan pursuant toSection 3.3 (Intermittent Employees and Temporary Employees) and forpurposes of determining when a Participant has satisfied the VestingRequirement.

 

If aParticipant is transferred from an Employer to an Affiliate that has notelected to participate in the Plan pursuant to Section 21.1 (Adoption ofPlan), the Participant’s accrued benefit under the Plan as of the date of thetransfer will be preserved.  TheParticipant’s service after the transfer will not be considered in determiningthe Participant’s years of Participation, but will be considered in determiningthe Participant’s years of Service.  Fora Participant who has a Cash Balance Account, the Participant’s Cash BalanceAccount will be credited with Pay Credits in accordance with Section 4.2A(Pay Credits) only with respect to the Participant’s Earnings (with anEmployer) for a respective Plan Year and shall be credited with InterestCredits in accordance with Section 4.3A (Interest Credits).

 

3.6                                 Transfers of Participants and PlanAssets To and From the Cinergy Corp. Union Employees’ Retirement Income Planand Cinergy Corp. Union Employees’ Pension Plan.

 

(a)                                  Ifa Participant in the Plan remains an Employee but becomes ineligible toparticipate in the Plan, he will become a participant in the Cinergy Corp.Union Employees’ Retirement Income Plan or the Cinergy Corp. Union Employees’Pension Plan, if he is an “eligible employee” as defined in either of thoseplans, as of the first day of the month during which his change in Employeestatus becomes effective.

 

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(b)                                 Ifa participant in the Cinergy Corp. Union Employees’ Retirement Income Plan orthe Cinergy Corp. Union Employees’ Pension Plan remains an Employee but becomesineligible to participate in his current plan, he will become a Participant inthe Plan, if he is an Eligible Employee, as of the first day of the monthduring which his change in Employee status becomes effective.  The Participant will become a Cash BalanceParticipant if provided by (and in accordance with) Section 3.2 (CashBalance Participation).

 

(c)                                  Atransfer of assets between the Plan and the Cinergy Corp. Union Employees’Retirement Income Plan or the Cinergy Corp. Union Employees’ Pension Plan willfollow the requirements of Code subsection 414(1).  The actual transfer of assets will occur assoon as administratively practicable after the change in the Participant’sEmployee status.  Notwithstanding the foregoingprovisions of this Subsection (c), a transfer of assets (and liabilities) fromthis Plan to another plan shall not occur if the Participant has a Cash BalanceAccount and transfers to a plan under which the Participant is not eligible toearn benefits under a cash balance formula.

 

(d)                                 AParticipant who has years and/or partial years of “participation” under theCinergy Corp. Union Employees’ Retirement Income Plan or the Cinergy Corp.Union Employees’ Pension Plan, and who then becomes a Participant, but not aCash Balance Participant (at the time of transfer), in this Plan, will becredited under this Plan with his total years of “participation” under theCinergy Corp. Union Employees’ Retirement Income Plan or the Cinergy Corp.Union Employees’ Pension Plan as if the years were under this Plan.  A Participant will not be credited with moreyears of Participation than he would have had if the total of all his years ofParticipation under the Plan and all his years of “participation” under theCinergy Corp. Union Employees’ Retirement Income Plan and the Cinergy Corp.Union Employees’ Pension Plan had been solely as a Participant of thisPlan.  The benefit paid to a Participantunder this Plan (with respect to whom assets and liabilities are transferred tothis Plan from the Cinergy Corp. Union Employees’ Retirement Income Plan and/orCinergy Corp. Union Employees’ Pension Plan) will never be less than thebenefit the Participant accrued in the Cinergy Corp. Union Employees’Retirement Income Plan and/or the Cinergy Corp. Union Employees’ Pension Planprior to his change in Employee status.

 

3.7           Reclassification

 

In the eventthat any governmental agency or court requires the Employer or an Affiliate toreclassify the common law employee or employment status of any independentcontractor or otherwise excluded employee under the Plan, the reclassifiedindividual nevertheless shall not be considered an Eligible Employee followingsuch reclassification and, therefore, shall not be entitled to participate in

 

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the Plan as aresult of the reclassification. Similarly, in the event that any governmental agency or court otherwiserequires the Employer or an Affiliate to reclassify the employment status ofany individual eligible for participation under the Plan (such as a summerlaborer or a summer employee), the reclassified individual nevertheless shallretain his original status for purposes of the Plan following suchreclassification and, therefore, shall not be entitled to participate in thePlan in a different manner as a result of the reclassification.

 

ARTICLE 4

 

AMOUNT OFLIFE-ONLY PENSION

 

4.1           NormalRetirement Pension Formula

 

Except asotherwise expressly provided in this Article, a Participant who retires on orafter his Normal Retirement Date will be entitled to a Nonforfeitable AnnualPension under this Plan equal to the sum of (a) plus (b), where (a) is equalto:

 

(1)           1.1 percent of the Participant’sHighest Average Earnings plus

 

(2)                                  0.5 percentof the amount by which his Highest Average Earnings exceed his applicableCovered Compensation, multiplied by the number of his years of Participationnot in excess of 35;

 

and (b) isequal to 1.4 percent of the Participant’s Highest Average Earnings, multipliedby the number of his years of Participation in excess of 35.

 

4.2           NormalRetirement Benefits for Participants in the PSI Plan

 

The normalretirement Nonforfeitable Annual Pension of a Participant who was a participantin the PSI Plan as of December 31, 1997, will be the greater of (a) or(b), where (a) is the Participant’s Annual Pension calculated underSection 4.1 (Normal Retirement Pension Formula) and (b) is theParticipant’s annual accrued benefit calculated under the PSI Plan as of December 31,1997.  The formulas used to calculate aParticipant’s annual accrued benefit under the PSI Plan as in effect onDecember 31, 1997, are set forth in Addendum A to this Plan.

 

4.3           NormalRetirement Benefits for Participants in the MRP or RIP

 

The normal retirementNonforfeitable Annual Pension of a Participant who was a participant in the MRPor RIP as of December 31, 1997, will be the greater of (a) or (b), where(a) is the Participant’s Annual Pension calculated under Section 4.1(Normal Retirement Pension Formula) and (b) is the Participant’s annual accruedbenefit calculated under the MRP or RIP as of December 31, 1997.  The formulas used to calculate aParticipant’s annual accrued benefit under the MRP or RIP as in effect onDecember 31, 1997, are set forth in Addendum B to this Plan.

 

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4.4           GeneralMethod of Computing Annual Pension for Retirement at EarlyRetirement Date

 

(a)                                  Subjectto the following provisions of this Section, a Participant who retires on anEarly Retirement Date will be entitled to a Nonforfeitable Annual Pensioncomputed under Section 4.1 (Normal Retirement Pension Formula).  The benefits will begin on the Employee’sNormal Retirement Date, or, if the Employee so elects, at an earlier date on orafter his Early Retirement Date.  If theEmployee elects to have the benefit begin before his 62nd birthday, theamount of the Employee’s Nonforfeitable Annual Pension will be multiplied bythe appropriate early payment factor as obtained from the following table:

 
| **EARLY  PAYMENT  PERIOD** |   | **EARLY  PAYMENT  FACTOR** |   | **EARLY  PAYMENT  PERIOD** |   | **EARLY  PAYMENT  FACTOR** |   | **EARLY  PAYMENT  PERIOD** |   | **EARLY  PAYMENT  FACTOR** |   |
|----------------------------|--------|----------------------------|--------|----------------------------|--------|----------------------------|--------|----------------------------|--------|----------------------------|--------|
| **YR.**                    |   | **MO.**                    |   |                       |   | **YR.**                    |   | **MO.**                    |   |                       |   | **YR.** |   | **MO.** |   |   |   |
| 0                          |   | 0                          |   | 1.0000                     |   | 4                          |   | 0                          |   | 0.7333                     |   | 8 |   | 0 |   | 0.5667 |   |
| 0                          |   | 1                          |   | 0.9944                     |   | 4                          |   | 1                          |   | 0.7278                     |   | 8 |   | 1 |   | 0.5639 |   |
| 0                          |   | 2                          |   | 0.9889                     |   | 4                          |   | 2                          |   | 0.7222                     |   | 8 |   | 2 |   | 0.5611 |   |
| 0                          |   | 3                          |   | 0.9833                     |   | 4                          |   | 3                          |   | 0.7167                     |   | 8 |   | 3 |   | 0.5584 |   |
| 0                          |   | 4                          |   | 0.9778                     |   | 4                          |   | 4                          |   | 0.7111                     |   | 8 |   | 4 |   | 0.5556 |   |
| 0                          |   | 5                          |   | 0.9722                     |   | 4                          |   | 5                          |   | 0.7056                     |   | 8 |   | 5 |   | 0.5528 |   |
| 0                          |   | 6                          |   | 0.9667                     |   | 4                          |   | 6                          |   | 0.7000                     |   | 8 |   | 6 |   | 0.5500 |   |
| 0                          |   | 7                          |   | 0.9611                     |   | 4                          |   | 7                          |   | 0.6944                     |   | 8 |   | 7 |   | 0.5473 |   |
| 0                          |   | 8                          |   | 0.9556                     |   | 4                          |   | 8                          |   | 0.6889                     |   | 8 |   | 8 |   | 0.5445 |   |
| 0                          |   | 9                          |   | 0.9500                     |   | 4                          |   | 9                          |   | 0.6833                     |   | 8 |   | 9 |   | 0.5417 |   |
| 0                          |   | 10                         |   | 0.9444                     |   | 4                          |   | 10                         |   | 0.6778                     |   | 8 |   | 10 |   | 0.5389 |   |
| 0                          |   | 11                         |   | 0.9389                     |   | 4                          |   | 11                         |   | 0.6722                     |   | 8 |   | 11 |   | 0.5361 |   |
| 1                          |   | 0                          |   | 0.9333                     |   | 5                          |   | 0                          |   | 0.6667                     |   | 9 |   | 0 |   | 0.5334 |   |
| 1                          |   | 1                          |   | 0.9278                     |   | 5                          |   | 1                          |   | 0.6639                     |   | 9 |   | 1 |   | 0.5300 |   |
| 1                          |   | 2                          |   | 0.9222                     |   | 5                          |   | 2                          |   | 0.6611                     |   | 9 |   | 2 |   | 0.5265 |   |
| 1                          |   | 3                          |   | 0.9167                     |   | 5                          |   | 3                          |   | 0.6584                     |   | 9 |   | 3 |   | 0.5231 |   |
| 1                          |   | 4                          |   | 0.9111                     |   | 5                          |   | 4                          |   | 0.6556                     |   | 9 |   | 4 |   | 0.5196 |   |
| 1                          |   | 5                          |   | 0.9056                     |   | 5                          |   | 5                          |   | 0.6528                     |   | 9 |   | 5 |   | 0.5162 |   |
| 1                          |   | 6                          |   | 0.9000                     |   | 5                          |   | 6                          |   | 0.6500                     |   | 9 |   | 6 |   | 0.5127 |   |
| 1                          |   | 7                          |   | 0.8944                     |   | 5                          |   | 7                          |   | 0.6473                     |   | 9 |   | 7 |   | 0.5093 |   |
| 1                          |   | 8                          |   | 0.8889                     |   | 5                          |   | 8                          |   | 0.6445                     |   | 9 |   | 8 |   | 0.5059 |   |
| 1                          |   | 9                          |   | 0.8833                     |   | 5                          |   | 9                          |   | 0.6417                     |   | 9 |   | 9 |   | 0.5024 |   |
| 1                          |   | 10                         |   | 0.8778                     |   | 5                          |   | 10                         |   | 0.6389                     |   | 9 |   | 10 |   | 0.4990 |   |
| 1                          |   | 11                         |   | 0.8722                     |   | 5                          |   | 11                         |   | 0.6361                     |   | 9 |   | 11 |   | 0.4955 |   |
| 2                          |   | 0                          |   | 0.8667                     |   | 6                          |   | 0                          |   | 0.6334                     |   | 10 |   | 0 |   | 0.4921 |   |
| 2                          |   | 1                          |   | 0.8611                     |   | 6                          |   | 1                          |   | 0.6306                     |   | 10 |   | 1 |   | 0.4889 |   |
| 2                          |   | 2                          |   | 0.8556                     |   | 6                          |   | 2                          |   | 0.6278                     |   | 10 |   | 2 |   | 0.4858 |   |
| 2                          |   | 3                          |   | 0.8500                     |   | 6                          |   | 3                          |   | 0.6250                     |   | 10 |   | 3 |   | 0.4826 |   |
| 2                          |   | 4                          |   | 0.8444                     |   | 6                          |   | 4                          |   | 0.6223                     |   | 10 |   | 4 |   | 0.4795 |   |
| 2                          |   | 5                          |   | 0.8389                     |   | 6                          |   | 5                          |   | 0.6195                     |   | 10 |   | 5 |   | 0.4763 |   |
| 2                          |   | 6                          |   | 0.8333                     |   | 6                          |   | 6                          |   | 0.6167                     |   | 10 |   | 6 |   | 0.4732 |   |
| 2                          |   | 7                          |   | 0.8278                     |   | 6                          |   | 7                          |   | 0.6139                     |   | 10 |   | 7 |   | 0.4700 |   |
| 2                          |   | 8                          |   | 0.8222                     |   | 6                          |   | 8                          |   | 0.6111                     |   | 10 |   | 8 |   | 0.4668 |   |
| 2                          |   | 9                          |   | 0.8167                     |   | 6                          |   | 9                          |   | 0.6084                     |   | 10 |   | 9 |   | 0.4637 |   |
| 2                          |   | 10                         |   | 0.8111                     |   | 6                          |   | 10                         |   | 0.6056                     |   | 10 |   | 10 |   | 0.4605 |   |
| 2                          |   | 11                         |   | 0.8056                     |   | 6                          |   | 11                         |   | 0.6028                     |   | 10 |   | 11 |   | 0.4574 |   |
| 3                          |   | 0                          |   | 0.8000                     |   | 7                          |   | 0                          |   | 0.6000                     |   | 11 |   | 0 |   | 0.4542 |   |
| 3                          |   | 1                          |   | 0.7944                     |   | 7                          |   | 1                          |   | 0.5973                     |   | 11 |   | 1 |   | 0.4513 |   |
| 3                          |   | 2                          |   | 0.7889                     |   | 7                          |   | 2                          |   | 0.5945                     |   | 11 |   | 2 |   | 0.4485 |   |
| 3                          |   | 3                          |   | 0.7833                     |   | 7                          |   | 3                          |   | 0.5917                     |   | 11 |   | 3 |   | 0.4456 |   |
| 3                          |   | 4                          |   | 0.7778                     |   | 7                          |   | 4                          |   | 0.5889                     |   | 11 |   | 4 |   | 0.4427 |   |
| 3                          |   | 5                          |   | 0.7722                     |   | 7                          |   | 5                          |   | 0.5861                     |   | 11 |   | 5 |   | 0.4398 |   |
| 3                          |   | 6                          |   | 0.7667                     |   | 7                          |   | 6                          |   | 0.5834                     |   | 11 |   | 6 |   | 0.4370 |   |
| 3                          |   | 7                          |   | 0.7611                     |   | 7                          |   | 7                          |   | 0.5806                     |   | 11 |   | 7 |   | 0.4341 |   |
| 3                          |   | 8                          |   | 0.7556                     |   | 7                          |   | 8                          |   | 0.5778                     |   | 11 |   | 8 |   | 0.4312 |   |
| 3                          |   | 9                          |   | 0.7500                     |   | 7                          |   | 9                          |   | 0.5750                     |   | 11 |   | 9 |   | 0.4283 |   |
| 3                          |   | 10                         |   | 0.7444                     |   | 7                          |   | 10                         |   | 0.5723                     |   | 11 |   | 10 |   | 0.4255 |   |
| 3                          |   | 11                         |   | 0.7389                     |   | 7                          |   | 11                         |   | 0.5695                     |   | 11 |   | 11 |   | 0.4226 |   |
|                       |   |                       |   |                       |   |                       |   |                       |   |                       |   | 12 |   | 0 |   | 0.4197 |   |

 

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In using theabove table, the order of required steps is as follows:

 

(1)                                  determinethe Participant’s “early payment period,” which is the number of whole calendarmonths by which the actual commencement of his pension payments precedes thefirst day of the calendar month coincident with or following his62nd birthday;

 

(2)                                  usethe early payment period as determined in Step (1) to identify theapplicable early payment factor; and

 

(3)                                  multiplythe applicable early payment factor times the amount of the Participant’sAnnual Pension determined under Section 4.1 (Normal Retirement PensionFormula).

 

(b)                                 Notwithstandingany other provision of this Section except Subsection (e) or (f), theearly retirement Nonforfeitable Annual Pension payable to a Participant who(1) was a participant in the PSI Plan as of December 31, 1997, and(2) became a participant in the PSI Plan prior to May 1, 1970, willbe computed under Section 4.2 (Normal Retirement Benefits for Participantsin the PSI Plan) and will be reduced by multiplying the amount of theParticipant’s Nonforfeitable Annual Pension by the early payment factordescribed in Subsection (a); provided, however, that his early retirementNonforfeitable Annual Pension will not be less than the product of:

 

(A)                              theamount computed under PSI Pension Formula 3 (as described inAddendum A) as of the following date:

 

(i)                                     December 31,1989, with respect to an Employee who is not a Highly Compensated Participant;or

 

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(ii)                                  December 31,1988, with respect to a Highly Compensated Participant; and

 

(B)                                theearly payment factor determined as described in Subsection (a), exceptthat the early payment period will be the number of whole calendar months bywhich the commencement of the Participant’s pension payments precedes the firstday of the calendar month coincident with or following his 60th birthday.

 

(c)                                  Notwithstandingany other provision of this Section except Subsection (e) or (f), theearly retirement Nonforfeitable Annual Pension payable to a Participant who(1) was a participant in the PSI Plan as of December 31, 1997, and(2) became a participant in the PSI Plan on or after May 1, 1970,will be computed under Section 4.2 (Normal Retirement Benefits forParticipants in the PSI Plan) and will be reduced by multiplying the amount ofthe Participant’s Nonforfeitable Annual Pension by the early payment factordescribed in Subsection (a); provided, however, that his early retirementNonforfeitable Annual Pension will not be less than the product of:

 

(A)                              theamount computed under PSI Pension Formula 2 (as described inAddendum A) as of the following date:

 

(i)                                     December 31,1989, with respect to an Employee who is not a Highly Compensated Participant;or

 

(ii)                                  December 31,1988, with respect to a Highly Compensated Participant; and

 

(B)                                theearly payment factor determined as described in Subsection (a).

 

(d)                                 Notwithstandingany other provision of this Section except Subsection (e) or (f), theearly retirement Nonforfeitable Annual Pension payable to a Participant who wasa participant in the MRP or the RIP as of December 31, 1997, will be thegreater of the amounts calculated under (a) and (b) of Section 4.3 (NormalRetirement Benefits for Participants in the MRP or RIP), after those amountsare reduced as follows:

 

(1)                                  TheParticipant’s Nonforfeitable Annual Pension calculated underSection 4.1(Normal Retirement Pension Formula) will be reduced bymultiplying the amount of the Participant’s Annual Pension by the early paymentfactor described in Subsection (a).

 

(2)                                  TheParticipant’s annual accrued benefit calculated under the MRP or the RIP as ofDecember 31, 1997, will be reduced by multiplying the Participant’s annualaccrued benefit as of December 31, 1997, by the product of (A) 5/12of one percent and

 

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(B) thenumber of whole calendar months by which the actual commencement of theParticipant’s pension payments precedes the first day of the calendar monthcoincident with or following the Participant’s 60th birthday.

 

(e)                                  If,as of his applicable Severance from Service Date, a Participant has reachedage 55, and the sum of his age (in whole years) attained as of that dateand the number of his years of Service (in whole years) accumulated as of thatdate equals or exceeds 85, he will receive a Nonforfeitable Annual Pensioncomputed under the appropriate early retirement Annual Pension formuladescribed in this Section, but the amount of the Participant’s pension will notbe multiplied by the early payment factor that otherwise would be applicable.

 

(f)                                    AParticipant who is eligible to terminate employment voluntarily under theRedeployment Status Opportunity provisions of the Severance Opportunity Planfor Non-Union Employees of Cinergy Corp., as amended from time to time, iseligible to receive a Nonforfeitable Annual Pension computed under theappropriate early retirement Annual Pension formula described in this Section,but the amount of the Participant’s pension will not be multiplied by the earlypayment factor that otherwise would be applicable, provided that:  (1) as of his applicable Severance fromService Date, the Participant has reached age 50, (2) he elects underArticle 8 (Payment of Pension) to defer receipt of his pension to at leastage 55, and (3) the sum of his age (in whole years) attained as ofthe date that the receipt of the pension under the Plan begins pursuant toParagraph (2) and his years of Service (in whole years) accumulated as ofhis Severance from Service Date equals or exceeds 85.

 

4.5           GeneralMethod of Computing Annual Pension for a Terminated VestedParticipant

 

(a)                                  Subjectto the following provisions of this Section, the amount of NonforfeitableAnnual Pension payable to a former Participant who is described inSection 5.3 (Severance from Service After Vesting), and whose ActualSeparation Date occurred on or before his Normal Retirement Date, will becomputed under Section 4.1 (Normal Retirement Pension Formula).  The benefits will begin on the Employee’sNormal Retirement Date or, if the Employee so elects, at an earlier date on orafter his Early Retirement Date.  If theEmployee elects to have the benefits begin before his Normal Retirement Date,the amount of the Employee’s Nonforfeitable Annual Pension will be reduced byfive percent for each calendar year (or .4166 percent for each calendarmonth) by which the commencement of his pension payments precedes his NormalRetirement Date.

 

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(b)                                 Notwithstandingany other provision of this Section, the terminated vested NonforfeitableAnnual Pension payable to a Participant who was a participant in the PSI Planas of December 31, 1997, will be the greater of the amounts calculatedunder (a) and (b) of Section 4.2 (Normal Retirement Benefits forParticipants in the PSI Plan), after those amounts are reduced for earlypayment as follows:

 

(1)                                  TheParticipant’s Annual Pension calculated under Section 4.1 (NormalRetirement Pension Formula) is reduced as described in Subsection (a).

 

(2)                                  If  the Participant elects to have his benefitbegin before his Normal Retirement Date, the Participant’s annual accruedbenefit under the PSI Plan as of December 31, 1997, is reduced bymultiplying that annual accrued benefit by the appropriate early payment factoras obtained from the table in Subsection 4.4(a) (General Method ofComputing Annual Pension for Retirement at Early Retirement Date).

 

(c)                                  Notwithstandingany other provisions of this Section, the terminated vested NonforfeitableAnnual Pension payable to a Participant who (1) was a participant in thePSI Plan as of December 31, 1997, and (2) became a participant in thePSI Plan prior to May 1, 1970, will not be less than the product of:

 

(A)                              Theamount computed under PSI Pension Formula 5 (as set forth in Addendum A)as of the following date:

 

(i)                                     December 31,1989, with respect to an Employee who is not a Highly Compensated Participant;or

 

(ii)                                  December 31,1988, with respect to a Highly Compensated Participant; and

 

(B)                                Ifthe Participant elects to have his benefit begin before his Normal RetirementDate, the early payment factor as obtained from the table inSubsection 4.4(a) (General Method of Computing Annual Pension forRetirement at Early Retirement Date), except that the early payment period willbe the number of whole calendar months by which the commencement of theParticipant’s pension payments precedes the first day of the calendar monthcoincident or following his 60th birthday.

 

(d)                                 Notwithstandingany other provisions of this Section, the terminated vested NonforfeitableAnnual Pension payable to a Participant who (1) was a participant in thePSI Plan as of December 31, 1997, and

 

36

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(2) becamea participant in the PSI Plan on or after May 1, 1970, will not be lessthan the product of:

 

(A)                              Theamount computed under PSI Pension Formula 6 (as set forth inAddendum A) as of the following date:

 

(i)                                     December 31,1989, with respect to an Employee who is not a Highly Compensated Participant;or

 

(ii)                                  December 31,1988, with respect to a Highly Compensated Participant; and

 

(B)                                Ifthe Participant elects to have his benefit begin before his Normal RetirementDate, the early payment factor determined as obtained from the table inSubsection 4.4(a) (General Method of Computing Annual Pension forRetirement at Early Retirement Date).

 

(e)                                  Notwithstandingany other provision of this Section, the terminated vested NonforfeitableAnnual Pension payable to a Participant who was a participant in the MRP or theRIP as of December 31, 1997, will be the greater of the amounts calculatedunder (a) or (b) of Section 4.3 (Normal Retirement Benefits forParticipants in the MRP or RIP), after each of those amounts is reduced by fivepercent for each calendar year (or .4166 percent for each calendar month)by which the commencement of the Participant’s pension payments precedes hisNormal Retirement Date.

 

4.6           MaximumPension

 

(a)                                  EachParticipant whose Annual Pension as otherwise determined pursuant to theprovisions of this Article and as modified by the applicable provisions ofSection 7.1 (Normal Forms of Pension) exceeds $1,000 multiplied by theEmployee’s years of Service with the Employer (not exceeding ten), or who hasever participated in a Qualified Defined Contribution Plan, will in no event beentitled to an Annual Pension that exceeds the lesser of:

 

(1)                                  $90,000(as adjusted for increases in the limitation pursuant to Codesubsection 415(d)); or

 

(2)                                  100 percentof his highest average annual Section 415 Compensation from his Employerfor any three consecutive years of Service; provided, that if he has fewer thanthree years of Service, then 100 percent of his highest average annualSection 415 Compensation from his Employer for his total years of Servicewill be construed as the limiting amount.

 

37

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However, if a Participant has fewer than tenyears of Participation at his Normal Retirement Date or Early Retirement Date,whichever is applicable, then the dollar limitation of Paragraph (1) willbe multiplied by a fraction, the numerator of which is the number of theParticipant’s years of Participation (including fractional years ofParticipation) and the denominator of which is ten.  However, the maximum benefit will never be reduced to less than1/10th of the applicable limitation.

 

(b)                                 Ifany benefit under the Plan begins before the Participant’s Social SecurityRetirement Age, but on or after the Participant reaches age 62, thedetermination as to whether the $90,000 limit set forth in Subsection (a)has been satisfied will be made, in accordance with regulations prescribed bythe Secretary, by reducing the limitation of Subsection (a).  The reduction under the preceding sentencewill be made in the manner as the Secretary may prescribe that is consistentwith the reduction for old-age insurance benefits commencing before the SocialSecurity Retirement Age under the Social Security Act.  If any benefit under the Plan begins beforethe Participant reaches age 62, the determination as to whether the$90,000 limit set forth in Subsection (a) has been satisfied will be made,in accordance with regulations prescribed by the Secretary, by reducing thelimitation of Subsection (a) so that the limitation (as reduced) equals anAnnual Pension (beginning when the retirement income benefit begins) that isactuarially equivalent to the reduced $90,000 Annual Pension beginning atage 62 as determined under this Subsection.  If a Participant’s benefit commences prior to his Social SecurityRetirement Age, but on or after age 62, the dollar limitation in Paragraph4.6(a)(1) shall be reduced to the date of commencement in accordance with Codesubparagraph 415(b)(2)(C) as follows:

 

(1)                                  Ifthe Participant’s Social Security Retirement Age is age 65, the dollarlimitation in Paragraph 4.6(a)(1) shall be reduced by 5/9 of one percent foreach month by which the Participant’s benefit commences before the month inwhich the Participant attains age 65; or

 

(2)                                  Ifthe Participant’s Social Security Retirement Age is greater than age 65, thedollar limitation in Paragraph 4.6(a)(1) shall be reduced by 5/9 of one percentfor each of the first 36 months and 5/12 of one percent for each of theadditional months (up to 24 months) by which the Participant’s benefitcommences before the month of the Participant’s Social Security Retirement Age.

 

(c)                                  Ifany benefit under the Plan begins after the Participant’s Social SecurityRetirement Age, the determination as to whether the $90,000 limitation setforth in Subsection (a) has been satisfied will be made, in accordancewith regulations prescribed by the Secretary, by increasing, if necessary, thelimitation of Subsection (a) so that the limitation (as increased) equalsan 

 

38

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Annual Pension (beginning when the retirementincome benefit begins) that is actuarially equivalent to a $90,000 AnnualPension beginning at the Social Security Retirement Age.

 

(d)                                 Ingeneral, the maximum annual benefit means a benefit payable annually in theform of a single life annuity (without ancillary benefits).  If a Participant’s pension under the Plan ispayable in any form other than a single life annuity, the determination as to whetherthe limitations of this Section have been satisfied will be made by adjustingthe benefit so that it is the actuarial equivalent of a single lifeannuity.  For purposes of this Section,any ancillary benefit not directly related to retirement income benefits, andthat portion of any joint and survivor annuity that constitutes a QualifiedJoint and Survivor Annuity under Subsection 7.1(b) (Normal Forms ofPension), will not be taken into account.

 

(e)                                  Forbenefits commencing in Plan Years beginning on or after January 1, 1995,and except as provided in this Plan, the adjustments to the limitations underSubsections (b), (c), and (d) will be calculated as described in thisSubsection.  For purposes of adjustingthe limit for an Annual Pension commencing prior to age 62 underSubsection (b), the $90,000 limitation will be equal to the lesser of theequivalent $90,000 limitation that is computed using the interest rate andmortality table (or other tabular factor) specified in the Plan for equivalencefor early retirement benefits, and the equivalent $90,000 limitation that iscomputed using a 5 percent interest rate assumption and the mortalitytable prescribed from time to time by the Secretary for this purpose.  For purposes of adjusting any form ofoptional benefit to a straight life annuity under Subsection (d), theactuarially equivalent life annuity will be equal to the greater of the annuitybenefit that is computed using the interest rate and mortality table (or othertabular factor) specified in the Plan for adjusting benefits in the same form,and the annuity benefit that is computed using a 5 percent interest rateassumption and the mortality table prescribed from time to time by theSecretary for this purpose.  Forpurposes of adjusting for any form of benefit subject to Code paragraph 417(e)(3),an interest rate assumption equal to the applicable interest rate as defined inSection 1.5 (Actuarial Equivalent) will be substituted for the5 percent interest rate assumption set forth in the preceding sentences.  For purposes of adjusting the limit underSubsection (c), the $90,000 limitation for an Annual Pension beginningafter Social Security Retirement Age will be the lesser of the equivalent$90,000 limitation that is computed using the interest rate and mortality table(or other tabular factor) specified in the Plan for equivalence of delayedretirement benefits, and the equivalent $90,000 limitation that is computedusing a 5 percent interest rate assumption and the mortality tableprescribed from time to time by the Secretary for this purpose.  Notwithstanding the preceding provisions ofthis Subsection, this 

 

39

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Subsection will not apply to the accruedbenefit of any Participant under the Plan as of December 31, 1997, afterapplying Code section 415 as in effect on December 7, 1994, for eachpossible Annuity Starting Date and each optional form of benefit under thePlan.

 

(f)                                    Notwithstandingthe foregoing, the maximum annual benefit payable under this Section will notbe less than the actuarial equivalent of the Participant’s single life annuity,accrued under the Plan, as of December 31, 1997, determined by using thePlan’s actuarial assumptions as in effect on December 31, 1997.

 

(g)                                 Iffor any particular Plan Year, a Participant is also participating in one ormore Qualified Defined Contribution Plans maintained by his Employer, then thesum of the Participant’s aggregate Defined Benefit Plan Fraction and theParticipant’s aggregate Defined Contribution Plan Fraction will not exceed 1.0.  If the sum exceeds 1.0, then the Employerwill reduce the Participant’s benefits in this Plan so that the sum equals1.0.  The Participant’s maximum AnnualPension will be determined under the provisions of this Article without regardto the $10,000 minimum amount referred to in the first paragraph of thisSection.  This Subsection will berepealed, effective January 1, 2000, for any Participant who is creditedwith at least one Hour of Service on or after January 1, 2000.

 

4.7                                 Benefits if Plan Becomes a Top-Heavy Plan

 

If the Plan becomes a Top-Heavy Plan, theminimum accrued benefit of any Participant who was at no time a Key Employeewill be equal to two percent of the Participant’s Final Average Earningsmultiplied by the number of Top-Heavy Plan Years in which he completed at least1,000 Hours of Service, but not more than ten years.

 

If a non-Key Employee participates in thePlan and a Qualified Defined Contribution Plan included in a RequiredAggregation Group that is Top-Heavy, the minimum benefits will be providedunder this Plan.

 

No increase in addition to the minimumaccrued benefit described above will be made in the event the Plan becomes aSuper Top-Heavy Plan.

 

4.8                                 2000Limited Early Retirement Program

 

(a)                                  Eligibility

 

The provisions of this Section, which governCinergy’s 2000 Limited Early Retirement Program (“2000 LERP”), apply to aParticipant who:

 

(1)                                  isan Exempt Employee or a Non-Exempt Employee;

 

(2)                                  attainsage 54 on or before May 31, 2000;

 

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(3)                                  attainsat least five years of Service with an Employer on or before May 31, 2000;

 

(4)                                  electsbetween March 31, 2000, and May 15, 2000, to incur a Severance fromService on June 1, 2000, and agrees that his Employer may select theSeverance from Service Date;

 

(5)                                  isemployed in one of the following departments or locations as of  January 1, 2000:

 

(i)                                     Anycorporate center area, including:

 
| Cinergy Executive        |   | Human Resources                         |
|--------------------------|--------|-----------------------------------------|
| Cinergy Foundation       |   | Information Technology                  |
| Corporate Communications |   | Legal                                   |
| Corporate Services       |   | PSI Energy, Inc. and CG&E Executive |
| Finance                  |   | Site Services;                          |

 

(ii)                                  BusinessUnits Finance (Accounting and Capital Projects) Business Units Information Technology, including the Customer Management Solutions (CMS) Project Team;

 

(iii)                               EnergyDelivery Business Unit (EDBU) Retail Sales EDBU Community Affairs/Community Development EDBU Economic Development EDBU District and Area Managers in Field Customer Services; or

 

(iv)                              EDBULabor Relations and Safety; and

 

(6)                                  signsa waiver of claims in the form specified by his Employer.

 

The following Exempt Employees and Non-ExemptEmployees are not eligible to participate in the 2000 LERP:

 

(1)                                  Officersof Cinergy;

 

(2)                                  Co-opemployees, retirees working part-time (rehired retirees), and intermittentemployees;

 

(3)                                  Employeeswho are disabled from any occupation and who are receiving long-term disabilitybenefits under Cinergy’s Long Term Disability Plan, as of March 31, 2000;or

 

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(4)                                  Exceptas provided in Subsection 4.8 (d), any Employee who has receivedretirement benefits or severance pay under any plan previously or currentlyoffered by an Employer or an Affiliate.

 

(b)                                 2000LERP Benefits

 

(1)                                  Waiverof Early Payment Factor

 

For each Participant who elects to incur aSeverance from Service under the provisions of this Section and whoseNonforfeitable Annual Pension is otherwise computed pursuant to the terms ofSection 4.4 (General Method of Computing Annual Pension for Retirement atEarly Retirement Date) the Nonforfeitable Annual Pension will be calculated bywaiving the application of the Early Payment Factor.

 

(2)                                  SpecialSupplemental Benefit

 

Each eligible Participant who elects to incura Severance from Service under the provisions of this Section will receive aspecial supplemental benefit the form of which will be elected by theParticipant from the following options:

 

(A)                              Anamount equal to the product of two times his weekly Base Salary or weekly BaseWage as of his Severance from Service Date multiplied by his whole years ofService with his Employer, payable as a life annuity; or

 

(B)                                Anamount equal to the product of one times his weekly Base Salary or weekly BaseWage as of his Severance from Service Date multiplied by his whole years ofService payable as a life annuity, plus $600.00 per month as a Social SecurityAct bridge payment until the Participant attains age 62.

 

(3)                                  LumpSum Payment Available in Lieu of Annuity

 

(A)                              Inlieu of the normal form of payment that would otherwise apply to the specialsupplemental benefit payable to the Participant under Article 7 (Forms ofPension), his Spouse or any other Beneficiary or Contingent Annuitant under thePlan, a lump sum distribution of the special supplemental benefit is availableat the eligible Participant’s election with spousal consent in accordance withSection 7.2 (Optional Forms of Retirement Income).  However, the Social Security Act bridgepayments described in 

 

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Subparagraph 4.8 (b)(2)(B) will be paidto the Participant or his Beneficiary or Contingent Annuitant monthly.

 

(B)                                Thelump sum distribution of the special supplemental benefit described inSubparagraph 4.8 (b)(2)(A) will be equal to the product of 52 times theParticipant’s weekly Base Salary or weekly Base Wage as of his Severance fromService Date multiplied by 3.85% multiplied by his whole years of Service.

 

The lump sum distribution of the specialsupplemental benefit described in Subparagraph 4.8 (b)(2)(B) will be equalto the product of 52 times the Participant’s weekly Base Salary or weekly BaseWage as of his Severance from Service Date multiplied by 1.925% multiplied byhis whole years of Service.

 

(C)                                Timeof Payment

 

The lump sum form of the special supplementalbenefit will be payable as of the Participant’s Annuity Starting Date or assoon as administratively feasible thereafter.

 

(D)                               ElectionPeriod

 

A lump sum distribution of the specialsupplemental benefit must  be electedwithin the 90 day period ending on the Participant’s Annuity StartingDate.  If the Participant chooses anannuity option and selects a Beneficiary other than a Spouse for the specialsupplemental benefit, the Participant must do so in writing and confirm orwithdraw that election within 90 days preceding the Annuity Starting Date.

 

(E)                                 Beneficiary

 

A Participant’s Beneficiary of the lump sumdistribution of the special supplemental benefit will be his Spouse unless theParticipant’s Spouse has consented to another Beneficiary pursuant toSection 7.2 (Optional Forms of Retirement Income).

 

A Beneficiary who elects a lump sumdistribution of the special supplemental benefit may designate one Beneficiaryfor the special supplemental benefit in the event the Participant dies beforethe lump sum is distributed.  A marriedParticipant’s designation of a Beneficiary other than 

 

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the Participant’s Spouse will not beeffective unless the Participant’s Spouse consents to the election anddesignation in accordance with Section 7.2 (Optional Forms of RetirementIncome).

 

(F)                                 Deathof a Participant

 

In the event of the death of a Participantwho elected a lump sum distribution of the special supplemental benefit priorto the distribution date, the lump sum will be distributed as soon asadministratively feasible following the Participant’s death.  If the Participant’s Spouse is hisBeneficiary, the Spouse may elect payment in the form of a lump sum or in theform that applies to other benefits payable to the Spouse under the Plan afterthe Participant’s death.

 

(c)                                  Constructionof the 2000 LERP Provisions

 

The benefits provided under the 2000 LERPwill be paid in accordance with and consistent with Plan provisions that applyto the payment of normal or early retirement benefits, except where specificexceptions or provisions are included in this Section.

 

(d)                                 SpecialEligibility Rule

 

Any Retired Participant who incurred aSeverance from Service between January 1, 2000 and May 1, 2000, iseligible to receive the 2000 LERP benefits described in Subsection 4.8 (b)if he meets all of the eligibility and participation requirements described inSubsection 4.8 (a) and he returns to his Employer any termination relatedbenefits, if any, previously received.

 

(e)                                  ElectionInformation

 

Prior to electing to participate in the 2000LERP, an eligible Participant will be provided with a written explanation ofthe terms and conditions of the survivor annuity which will be paid to theParticipant’s Spouse if the Participant dies without electing a lump sumdistribution of the special supplemental benefit, the Participant’s right toelect a lump sum distribution in lieu of a survivor annuity of this benefit andthe effect of such an election, the rights of the Participant’s Spousedescribed in Section 7.2 (Optional Forms of Retirement Income), and theright of a Participant to revoke and the effect of revoking such an election.

 

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4.9                                 2002Voluntary Early Retirement Program

 

(a)                                  Eligibility

 

The provisions of this Section, which governthe 2002 Voluntary Early Retirement Program (“2002 VERP”), apply to anindividual who:

 

(1)                                  isa Participant in the Plan who is classified by the Employer as a “full-time”employee and who is not an officer of an Employer;

 

(2)                                  attainsage 54 on or before June 1, 2002;

 

(3)                                  attainsat least five years of Service with an Employer on or before June 1, 2002 (orwould have attained at least five years of Service with an Employer on orbefore June 1, 2002 if he had remained employed with an Employer until suchdate);

 

(4)                                  ona form provided by Cinergy, elects between March 15, 2002 and April 30, 2002 toincur a Severance from Service on May 31, 2002 (or such other date selected byhis Employer), agrees that his Employer may select the Severance from ServiceDate and remains employed until such date;

 

(5)                                  isemployed in one or more of the following departments or locations as of March15, 2002:

 

(i)                                     TheCorporate Center;

 

(ii)                                  TheEnergy Merchant Business Unit; or

 

(iii)                               TheRegulated Business Unit, but only if the Participant has been selected by hisEmployer for participation in the 2002 VERP based upon such Participant’s jobclassification; and

 

(6)                                  signsand does not revoke a waiver of claims in the form specified by his Employer.

 

(b)                                 2002VERP Benefits

 

(1)                                  Waiverof Early Payment Factor

 

For each Participant who elects to incur aSeverance from Service under the provisions of this Section and whoseNonforfeitable Annual Pension is otherwise computed pursuant to the terms ofSection 4.4 (General Method of Computing Annual Pension for Retirement at EarlyRetirement Date), the Nonforfeitable Annual Pension will be calculated withoutapplying an early payment factor.

 

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(2)                                  SpecialSupplemental Benefit

 

Each Participant who elects to incur aSeverance from Service under the provisions of this Section will receive aspecial supplemental benefit equal to the Actuarial Equivalent of the productof two times his weekly Base Salary or weekly Base Wage as of his Severancefrom Service Date multiplied by his whole years of Service as of his Severancefrom Service Date, payable in accordance with Section 7.1 (Normal Forms ofPension). The Participant may elect to receive his special supplemental benefitin any optional form of payment provided in Section 7.2 (Optional Forms ofRetirement Income) other than those described in Subsections 7.2(d) and (e).

 

(3)                                  LumpSum Payment Available in Lieu of Annuity

 

(A)                              Inlieu of the normal form of payment that would otherwise apply to the specialsupplemental benefit payable to the Participant under Article 7 (Forms ofPension), his Spouse or any other Beneficiary or Contingent Annuitant under thePlan, a lump sum distribution of the special supplemental benefit is availableat the eligible Participant’s election with spousal consent in accordance withSection 7.2 (Optional Forms of Retirement Income).

 

(B)                                Thelump sum distribution of the special supplemental benefit will be in an amountequal to the Actuarial Equivalent of the special supplemental benefit.

 

(C)                                Timeof Payment

 

The lump sum distribution of the specialsupplemental benefit will be payable as of the Participant’s Annuity StartingDate or as soon as administratively feasible thereafter.

 

(D)                               ElectionPeriod

 

A lump sum distribution of the specialsupplemental benefit must be elected within the 90 day period ending on theParticipant’s Annuity Starting Date.  Ifthe Participant chooses an annuity option and selects a Beneficiary other thana Spouse for the special supplemental benefit, the Participant must do so inwriting and confirm or withdraw that election within 90 days preceding theAnnuity Starting Date.

 

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(E)                                 Beneficiary

 

A Participant’s Beneficiary of the lump sumdistribution of the special supplemental benefit will be his Spouse unless theParticipant’s Spouse has consented to another Beneficiary pursuant to Section7.2 (Optional Forms of Retirement Income). A Beneficiary who elects a lump sum distribution of the specialsupplemental benefit may designate one Beneficiary for the special supplementalbenefit in the event the Participant dies before the lump sum isdistributed.  A married Participant’sdesignation of a Beneficiary other than the Participant’s Spouse will not beeffective unless the Participant’s Spouse consents to the election anddesignation in accordance with Section 7.2 (Optional Forms of RetirementIncome).

 

(F)                                 Deathof a Participant

 

In the event of the death of a Participantwho elected a lump sum distribution of the special supplemental benefit priorto the distribution date, the lump sum will be distributed as soon asadministratively feasible following the Participant’s death.  If the Participant’s Spouse is hisBeneficiary, the Spouse may elect payment in the form of a lump sum or in theform that applies to other benefits payable to the Spouse under the Plan afterthe Participant’s death.

 

(4)                                  ActuarialEquivalent.  For purposes ofcalculating the Actuarial Equivalent amount of the benefit described inSections 4.9(b)(2) and (3), “Actuarial Equivalent” means a benefit having thesame actuarially determined value as the benefit that the Actuarial Equivalentreplaces, calculated using the “applicable mortality table” described inSection 417(e)(3)(A)(ii)(I) of the Code and the “applicable interest rate”described in Section 417(e)(3)(A)(ii)(II) of the Code for the calendar monthspecified by the Plan for purposes of calculating the Actuarial Equivalentamount of any lump sum payment.

 

(c)                                  Constructionof the 2002 VERP Provisions

 

The benefits provided under the 2002 VERPwill be paid in accordance with and consistent with Plan provisions that applyto the payment of normal or early retirement benefits, except where specificexceptions or provisions are included in this Section.

 

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(d)                                 SpecialEligibility Rule

 

Any Retired Participant who incurred aSeverance from Service between January 1, 2002 and March 1, 2002, is eligibleto receive the 2002 VERP benefits described in Subsection 4.9(b) if he meetsthe applicable eligibility and participation requirements described inSubsection 4.9(a) and he returns to his Employer any termination relatedbenefits previously received.

 

(e)                                  ElectionInformation

 

Prior to electing to participate in the 2002VERP, an eligible Participant will be provided with a written explanation ofthe terms and conditions of the survivor annuity which will be paid to theParticipant’s Spouse if the Participant dies without electing a lump sumdistribution of the special supplemental benefit, the Participant’s right toelect a lump sum distribution in lieu of a survivor annuity of this benefit andthe effect of such an election, the rights of the Participant’s Spousedescribed in Section 7.2 (Optional Forms of Retirement Income), and the rightof a Participant to revoke and the effect of revoking such an election.”

 

4.10                           Nonapplicability of Article

 

This Article shall not apply to a Participantfor periods on and after the Participant becomes a Cash Balance Participantexcept as otherwise provided in Article 4A (Cash Balance Accounts).

 

ARTICLE 4A

 

CASH BALANCE ACCOUNTS

 

4.1A                       Opening Account

 

Each Participant who becomes a Cash BalanceParticipant shall have a notional account (the “Cash Balance Account”)established for him on the date he becomes a Cash Balance Participant.  Each Cash Balance Participant shall have anopening balance in his Cash Balance Account of zero, except as provided in (a),(b) or (c) of this Section.

 

(a)                                  ParticipantsWho Choose in 2002 to Become a Cash Balance Participant.  A Participant who becomes a Cash BalanceParticipant in accordance with Subsection 3.2(a) shall have an openingbalance in his Cash Balance Account (as of the date he becomes a Cash BalanceParticipant) equal to the “Conversion Present Value” (as defined below in thisSubsection (a)) of the Participant’s Annual Pension under Subsection1.11(a) payable beginning at the Participant’s Normal Retirement Date (or, iflater, December 31, 2002) determined as if the Participant had terminatedemployment with the Employer and all Affiliates as of December 31,2002.  “Conversion Present Value” forpurposes of this Subsection (a) 

 

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shall be the actuarial present valuedetermined as of December 31, 2002 using the 1994 Group Annuity ReservingTable with a 50/50 mix of males and females (i.e., the table prescribed in Rev.Rul. 2001-62) and an interest rate equal to 5.08% (i.e., the “applicableinterest rate” under Code subsection 417(e) for August 2002).

 

(b)                                 TransferEmployees.  A Participant who(i) first becomes a Cash Balance Participant in accordance withSubsection 3.2(c) and (ii) with respect to whom assets andliabilities are transferred to the Plan from the Cinergy Corp. Union Employees’Retirement Income Plan or the Cinergy Corp. Union Employees’ Pension Plan inaccordance with Section 3.6 (Transfers of Participants and Plan Assets Toand From the Cinergy Corp. Union Employees’ Retirement Income Plan and CinergyCorp. Union Employees’ Pension Plan) shall have an opening balance or anaddition to his opening balance in his Cash Balance Account (as of the date hebecomes or again becomes a Cash Balance Participant, as applicable) equal tothe “Conversion Present Value” (as defined below in this Subsection (b))of the accrued benefit (payable in the form of an annuity for the life of theParticipant beginning at the later of the Participant’s normal retirement dateunder the transferor plan or the first day immediately prior to the date theParticipant becomes or again becomes a Cash Balance Participant) with respectto which assets (and liabilities) were transferred from the Cinergy Corp. UnionEmployees’ Retirement Income Plan or Cinergy Corp. Union Employees’ PensionPlan).  “Conversion Present Value” forpurposes of this Subsection (b) shall be the actuarial present valuedetermined as of the first day immediately prior to the date the Participantbecomes or again becomes a Cash Balance Participant, as applicable, using the1994 Group Annuity Reserving Table with a 50/50 mix of males and females and aninterest rate equal to the “applicable interest rate” under Code subsection 417(e)as specified by the Commissioner of Internal Revenue in revenue rulings,notices or other guidance published in the Internal Revenue Bulletin (currentlybased on the annual rate of interest on 30–year Treasury securities) forthe fifth full calendar month preceding the first day of the Plan Year in whichthe determination occurs.

 

(c)                                  ReemployedEmployees Who Never Had Retirement Choice. A Participant who first becomes a Cash Balance Participant in accordancewith Subsection 3.2(e) shall have an opening balance in his Cash BalanceAccount (as of the date he becomes a Cash Balance Participant) equal to the“Conversion Present Value” (as defined below in this Subsection (c)) ofthe Participant’s Annual Pension payable beginning at the Participant’s NormalRetirement Date (or, if later, the first day immediately prior to the date theParticipant becomes a Cash Balance Participant) and based on the benefitaccrued through the Participant’s most recent Severance from Service (prior toreemployment as described in Section 3.2(e)).  “Conversion Present Value” for purposes of thisSubsection (c) shall be 

 

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the actuarial present value determined as ofthe first day immediately prior to the date the Participant becomes a CashBalance Participant using the 1994 Group Annuity Reserving Table with a 50/50mix of males and females and an interest rate equal to the “applicable interestrate” under Code subsection 417(e) as specified by the Commissioner of InternalRevenue in revenue rulings, notices or other guidance published in the InternalRevenue Bulletin (currently based on the annual rate of interest on 30–yearTreasury securities) for the fifth full calendar month preceding the first dayof the Plan Year in which the determination occurs.

 

4.2A                       Pay Credits

 

(a)                                  BalancedFormula

 

As of the last day of each Plan Year, theCash Balance Account of each Participant who was a Cash Balance Participantduring the Plan Year and was covered by the formula in this Subsection (a)shall be credited with a Pay Credit equal to the applicable percentagespecified in the table below (based on the Participant’s years of Service as ofDecember 31 of such Plan Year) of the Participant’s Earnings for such PlanYear.  Notwithstanding the foregoingprovisions of this Subsection (a), if a Participant who was a Cash BalanceParticipant during the Plan Year and was covered by the formula in thisSubsection (a) has an Annuity Starting Date during the Plan Year, the CashBalance Account of such Participant shall be credited with a Pay Credit as ofthe day before the Participant’s Annuity Starting Date equal to the applicablepercentage specified below (based on the Participant’s years of Service as ofhis Severance from Service Date) of the Participant’s Earnings for such PlanYear through his Severance from Service Date (and if such Participant isreemployed during such Plan Year after his Severance from Service Date, theCash Balance Account of such Participant shall be credited with a Pay Creditfor the Participant’s Earnings for such Plan Year after his ReemploymentCommencement Date in accordance with the immediately preceding sentence).

 
| **Years of  Service**                         |   | **Percentage** |   |
|-----------------------------------------------|--------|----------------|--------|
| Less than 6  years                            |   | 3              | %      |
|                                          |   |           |   |
| 6 or more  years, but less than 11 years |   | 4              | %      |
|                                          |   |           |   |
| 11 years or  more                             |   | 5              | %      |

 

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(b)                                 InvestorFormula

 

As of the last day of each Plan Year, theCash Balance Account of each Participant who was a Cash Balance Participantduring the Plan Year and was covered by the formula in this Subsection (b)shall be credited with a Pay Credit equal to 2% of the Participant’s Earningsfor such Plan Year.  Notwithstanding theforegoing provisions of this Subsection (b), if a Participant who was aCash Balance Participant during the Plan Year and was covered by the formula inthis Subsection (b) has an Annuity Starting Date during the Plan Year, theCash Balance Account of such Participant shall be credited with a Pay Credit asof the day before the Participant’s Annuity Starting Date equal to 2% of theParticipant’s Earnings for such Plan Year through his Severance from ServiceDate (and if such Participant is reemployed during such Plan Year after hisSeverance from Service Date, the Cash Balance Account of such Participant shallbe credited with a Pay Credit for the Participant’s Earnings for such Plan Yearafter his Reemployment Commencement Date in accordance with the immediatelypreceding sentence).

 

4.3A                       Interest Credits

 

As of the last day of each Plan Year, eachCash Balance Account shall be credited with an Interest Credit in an amountequal to the Cash Balance Account as of the first day of the Plan Yearmultiplied by the “interest credit percentage” (as defined below) for the PlanYear.  The “interest credit percentage”for a Plan Year shall be equal to the “applicable interest rate” under Codesubsection 417(e) as specified by the Commissioner of Internal Revenue inrevenue rulings, notices or other guidance published in the Internal Revenuebulletin (currently based on the annual rate of interest on 30–yearTreasury securities) for the fifth full calendar month preceding the first dayof the Plan Year for which the credit occurs. Notwithstanding the foregoing provisions of this Section, if a Participantwith a Cash Balance Account has an Annuity Starting Date during the Plan Year,the Cash Balance Account of such Participant shall be credited with an InterestCredit on the last day of the month immediately preceding the month duringwhich the Participant’s Annuity Starting Date occurs in an amount equal to theCash Balance Account as of the first day of the Plan Year multiplied by the“applicable fraction” (as defined below) of the “interest credit percentage”(as defined in the immediately preceding sentence) for the Plan Year.  The “applicable fraction” is a fraction, thenumerator of which is the number of months during the Plan Year in which theParticipant’s Annuity Starting Date occurs that precede the month during whichthe Participant’s Annuity Starting Date occurs and the denominator of which is12.  The foregoing provisions of thisSection do not and shall not be construed to credit a Participant (or theParticipant’s Cash Balance Account) with Interest Credits for the periodcommencing on the Participant’s (or Beneficiary’s) Annuity Starting Date.

 

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4.4A                       Cash Balance Annual Pension

 

(a)                                  GeneralRule

 

As of his Annuity Starting Date, the AnnualPension of a Participant with a Cash Balance Account (other than a Participantdescribed in Subsection 4.4A(b) (Special Rule for Certain Participants)) shallbe equal to the Actuarial Equivalent of either (i) the Participant’s CashBalance Account if the Participant has attained his Normal Retirement Date or(ii) the Participant’s “Projected Cash Balance Account” (as defined inthis Section) if the Participant has not attained his Normal RetirementDate.  As of his Annuity Starting Date,the Participant’s “Projected Cash Balance Account” shall be equal to theParticipant’s Cash Balance Account projected to his Normal Retirement Date withInterest Credits based on the interest credit percentage as defined inSection 4.3A (Interests Credits) in effect for the Plan Year whichincludes the Annuity Starting Date and with Interest Credits being credited atthe intervals and in the manner provided in Section 4.3A (Interest Credits).

 

(b)                                 SpecialRule for Certain Participants

 

If a Participant with a Cash Balance Accounthas had an amount credited to his Cash Balance Account in accordance withSection 4.1A (Opening Account), the Annual Pension of the Participantshall be the greater of the Annual Pension determined under Subsection4.4(A)(a) (General Rule) or the sum of the Participant’s Prior Conversion Pensionand the Annual Pension that the Participant would have had under Subsection4.4A(a)(General Rule) if the Participant had no accrued benefit other than hisCash Balance Account and had no amount credited to his Cash Balance Account inaccordance with Section 4.1A (Opening Account).

 

(c)                                  OverridingProvision

 

Notwithstanding the foregoing provisions ofthis Section 4.4A (Cash Balance Annual Pension), the Annual Pension shall besubject to and determined in accordance with Section 4.6 (MaximumPension), Section 4.7 (Benefits if Plan Becomes a Top-Heavy Plan) andSection 8.5 (Benefits for Late Retirees, Reemployed Retirees and ReemployedTerminated Vested Participants).

 

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ARTICLE 5

 

SEVERANCE FROMSERVICE-VESTING

 

5.1                                 Vesting Requirement

 

(a)                                  AParticipant will satisfy the Vesting Requirement under the Plan upon hiscompletion of five years of Service and then will have a Nonforfeitable rightto his accrued benefit under the Plan. A Participant who is an Employee on his Normal Retirement Date will bedeemed to satisfy the Vesting Requirement as of that date if he has not alreadysatisfied the Vesting Requirement under the Plan.  Notwithstanding the preceding provisions of this Subsection, theNonforfeitable percentage of each Participant’s right to his accrued benefitderived from Employer contributions, because of a change to the vestingschedule, will be not less than the Participant’s vested percentage, computedunder the Plan as of the date immediately prior to the change, without regardto the change.  Moreover, eachParticipant whose Nonforfeitable percentage of his accrued benefit derived fromEmployer contributions is determined under an amended vesting schedule, and whohas completed at least three years of Service as of the date of the amendmentmay elect, within a reasonable period after the adoption of the amended vestingschedule, to have the Nonforfeitable percentage of his accrued benefit derivedfrom Employer contributions determined without regard to the amendment if hisNonforfeitable percentage under the Plan as amended is, at any time, less thanthe percentage determined without regard to the amendment.

 

(b)                                 Ifthe Plan becomes a Top-Heavy Plan, the above Vesting Requirement will notapply.  Instead, each Participant’sAccrued Benefit under the Plan will be partially or fully vested in accordancewith the following schedule:

 
| **Years of Service** |   | **Percent  Vested** |   |
|----------------------|--------|---------------------|--------|
| 2                    |   | 20                  | %      |
| 3                    |   | 40                  | %      |
| 4                    |   | 60                  | %      |
| 5 or more            |   | 100                 | %      |

 

In any Plan Year (other than a Top-Heavy PlanYear) that succeeds one or more Top-Heavy Plan Years the following will apply:

 

(1)                                  aParticipant with five or more years of Service as of the beginning of the PlanYear will become 100 percent vested in all his accrued benefits;

 

(2)                                  aParticipant with at least two but less than five years of Service as of thebeginning of the Plan Year will remain vested in his accrued 

 

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benefit as of that date in accordance withthe Top-Heavy Vesting schedule, but will vest in any forfeitable portion and inany further accruals in accordance with Subsection (a); and

 

(3)                                  anyother Participant will, as of that date, again be subject to the provisions ofSubsection (a) with respect to all of his accrued benefit.

 

5.2                                 Severance from Service Before Vesting

 

If a Participant incurs a Severance fromService before he has satisfied the Vesting Requirement and is not reemployedby an Employer, he will have no further interest in, or right to, any benefitsunder the Plan, except as otherwise provided in Section 14.2(Reemployment).  If upon a Severancefrom Service, a Participant is zero percent vested in his benefits under thePlan, the vested portion of his Plan benefits will be deemed distributed to himas of his Severance from Service Date.

 

5.3                                 Severance from Service AfterVesting

 

If a Participant who had not become a CashBalance Participant incurs a Severance from Service before his 50th birthday,but after satisfying the Vesting Requirement, he will be entitled to receive apension commencing on his 50th birthday, if he is then living,or the Participant may elect to begin receiving his benefit at any time on orafter his Early Retirement Date (subject to the provisions of Article 8(Payment of Pension)).  If a Participantwho had become a Cash Balance Participant incurs a Severance from Service aftersatisfying the Vesting Requirement, he will be entitled to receive a pensioncommencing after his Severance from Service (subject to the provisions ofArticle 8 (Payment of Pension)). Subject to the provisions of Section 4.6 (Maximum Pension) andArticle 7 (Forms of Pension), the amount of Nonforfeitable Annual Pensionpayable will be determined pursuant to the provisions of Section 4.5(General Method of Computing Annual Pension for a Terminated VestedParticipant) or Section 4.4A (Cash Balance Annual Pension), as applicable.

 

ARTICLE 6

 

DEATH BENEFIT

 

6.1                                 Determination of Spouse’s Benefitfor Participant Who Had Not Become a Cash Balance Participant

 

Notwithstanding anything to the contrary,this Section 6.1 (Determination of Spouse’s Benefit for Participant WhoHad Not Become a Cash Balance Participant) shall not apply to a Participant forperiods on and after the Participant becomes a Cash Balance Participant.  Upon the death of either (a) an Active 

 

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Participant who has satisfied the VestingRequirement (an “Eligible Active Participant”), or (b) a formerParticipant who has satisfied the Vesting Requirement, whose employment withhis Employer terminated before the Participant reached age 50, and whosepension under the Plan had not yet begun on the date of his death (an “EligibleFormer Participant”), the Participant’s Spouse on the date of his death, ifliving on the date of the first installment payable, as set forth below, willbe entitled to receive a pension under the Plan as a Spouse’s Benefit.  The annual amount of the Spouse’s Benefitwill be determined as follows:

 

(a)                                  If,at the date of his death, the Participant was either an Eligible ActiveParticipant or an Eligible Former Participant who had reached age 50, theSpouse’s benefit will equal 100 percent of the Annual Pension that theParticipant would have received, commencing on the first day of the calendar monthcoincident with or following the date of his death, if (1) he had retiredas of the first day of the calendar month coincident with or following hisdeath, thus establishing an Early Retirement Date, (2) the amount ofAnnual Pension commencing on the Early Retirement Date had been determinedpursuant to the applicable provisions of Section 4.4 (General Method ofComputing Annual Pension for Retirement at Early Retirement Date), and(3) his pension had been payable under the single-life option applicableto him pursuant to Subsection 7.1(a) (Normal Forms of Pension).  However, subject to Subsection (b), ifthe Participant’s Spouse is more than eight years younger than the Participant,the Spouse will receive the greater of (i) the benefit that would have beenpayable to the Spouse if the Participant had elected to begin receiving pensionpayments immediately prior to his death under the 100 percent option applicableto him pursuant to Subsection 7.1(b) (Normal Forms of Pension) or (ii) theactuarial equivalent of the benefit payable to a Spouse exactly eight yearsyounger than the Participant, calculated by multiplying the Annual Pension thatthe Participant would have received times the appropriate early payment factorunder Subsection 4.4(a) (General Method of Computing Annual Pension forRetirement at Early Retirement Date) and then multiplying the resulting productby the appropriate Spouse’s benefit factor as obtained from the followingtable:

 

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| **Participant’s Age   Less Spouse’s Age (in years)** |           | **Participant’s  Age at Death** |             |
|----------------------------------------------------------------|----------------|--------------------------------------|------------------|
|                                                           | **50-59**      |                                 | **60 or  older** |   |
| 8                                                              |  or  less |                                 | 1.00             |   | 1.00 |   |
| 9                                                              |           |                                 | .91              |   | .90 |   |
| 10                                                             |           |                                 | .82              |   | .81 |   |
| 11                                                             |           |                                 | .75              |   | .72 |   |
| 12                                                             |           |                                 | .68              |   | .65 |   |
| 13                                                             |           |                                 | .62              |   | .59 |   |
| 14                                                             |           |                                 | .56              |   | .54 |   |
| 15                                                             |           |                                 | .51              |   | .49 |   |
| 16                                                             |           |                                 | .47              |   | .44 |   |
| 17                                                             |           |                                 | .43              |   | .40 |   |
| 18                                                             |           |                                 | .39              |   | .36 |   |
| 19                                                             |           |                                 | .36              |   | .33 |   |
| 20                                                             |           |                                 | .33              |   | .30 |   |
| 21                                                             |           |                                 | .30              |   | .28 |   |
| 22                                                             |           |                                 | .28              |   | .26 |   |
| 23                                                             |           |                                 | .26              |   | .24 |   |
| 24                                                             |           |                                 | .24              |   | .22 |   |
| 25                                                             |           |                                 | .22              |   | .20 |   |

 

(b)                                 NotwithstandingSubsection (a), if a Participant who had reached age 50 at the dateof his death was a participant in the MRP or the RIP as of December 31,1997, the Spouse’s benefit attributable to the Participant’s accrued benefitunder the MRP or the RIP as of December 31, 1997, will be calculated bymultiplying the Participant’s annual accrued benefit under the MRP or the RIPas of December 31, 1997, by the early payment factor described underParagraph 4.4(d)(2) (General Method of Computing Annual Pension forRetirement at Early Retirement Date), and then multiplying the resultingproduct by the MRP/RIP Spousal and Contingent Annuitant benefit factor asobtained from the table in Addendum C of the Plan.

 

(c)                                  If,at the date of his death, the Participant was either an Eligible ActiveParticipant or an Eligible Former Participant who, in either case, had notreached age 50, the Spouse’s benefit will equal 100 percent of theAnnual Pension that the Participant would have received commencing on the firstday of the calendar month coincident with or following his 50th birthday,if (1) his Severance from Service Date, in the case of an Eligible ActiveParticipant, had been the date of his death, (2) the amount of AnnualPension (including the appropriate early payment reduction factor) had beendetermined pursuant to the applicable provisions of Section 4.5 (GeneralMethod of Computing Annual Pension for Terminated Vested Participant),(3) he had survived and elected to begin receiving pension payments on thefirst day of the calendar month coincident with or following his50th birthday, and (4) his pension had been payable under 

 

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the 100 percent option applicable to himpursuant to Subsection 7.1(b) (Normal Forms of Pension).

 

(d)                                 NotwithstandingSubsection (c), if a Participant who had not attained age 50 at thedate of his death was a participant in the MRP or the RIP as ofDecember 31, 1997, the Spouse’s benefit attributable to the Participant’saccrued benefit under the MRP or the RIP as of December 31, 1997, will becalculated by multiplying the Participant’s annual accrued benefit under theMRP or the RIP as of December 31, 1997, by the early payment factordescribed under Subsection 4.5(e) (General Method of Computing AnnualPension for Terminated Vested Participant) and then multiplying the resultingproduct by the MRP/RIP Spousal and Contingent Annuitant benefit factor asobtained from the table in Addendum C of the Plan.

 

6.2                                 Method of Payment of Spouse’sBenefit for Participant Who Had Not Become a Cash Balance Participant

 

Notwithstanding anything to the contrary,this Section 6.2 (Method of Payment of Spouse’s Benefit for ParticipantWho Had Not Become a Cash Balance Participant) shall not apply to a Participantfor periods on and after the Participant becomes a Cash Balance Participant.  A Spouse’s benefit will be payable in equalmonthly installments, each equal to 1/12th of the Annual Pension asdetermined pursuant to this Article.  Ifat the date of his death the Eligible Active Participant or Eligible FormerParticipant had reached age 50, the first monthly installment of theSpouse’s benefit will be payable to the Participant’s Spouse on the first dayof the calendar month coincident with or following the date of theParticipant’s death, if his Spouse is then living, unless the Spouse elects todefer payment until the date the Participant would have reachedage 62.  If at the date of hisdeath the Participant had not reached age 50, the first monthlyinstallment will be payable to the Participant’s Spouse on the first day of thecalendar month coincident with or following the date the Participant would havereached age 50, had he survived until that date, if his Spouse is thenliving, unless the Spouse elects to defer payment until the date theParticipant would have reached age 65. In either event, subsequent monthly installments will be payable on thefirst day of each month and will cease upon the payment of the installment dueon the first day of the calendar month in which the Spouse dies.

 

6.3                                 Preretirement Death Benefit forCash Balance Participant

 

Upon the death of a Participant with a CashBalance Account who is either an Employee or has satisfied the VestingRequirement, and whose pension under the Plan had not yet begun on the date ofhis death, a death benefit shall be payable as follows:

 

(a)                                  Ifthe Participant’s Beneficiary at the date of death is his Spouse, such Spouseshall be entitled to receive a single life annuity payable during the Spouse’slife commencing on the date the Participant under this Plan 

 

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would have attained his Normal RetirementDate or if elected (in the form and manner prescribed by the Committee) by theSpouse, on the first day of any month on or after the date the Participant diedand before the date the Participant would have attained his Normal RetirementDate.  The Spouse’s single life annuityshall be the greater of the Actuarial Equivalent of the Participant’s CashBalance Account as of the last day of the month prior to the month ofdistribution or the pension payable to the Spouse if the Participant hadterminated employment on the last day of the month prior to the month ofdistribution, commenced payment in the form of a Qualified Joint and SurvivorAnnuity as provided in Section 7.1 (Normal Forms of Pension) and died onthe next day.  The Spouse may elect (inthe form and manner prescribed by the Committee), in lieu of the foregoingsingle life annuity, to receive a lump sum payment equal to the greater of theActuarial Equivalent of such single life annuity or 100% of the balance of theParticipant’s Cash Balance Account as of the last day of the month prior to themonth of distribution (which distribution shall be as of or before the firstday of the month coincident with or immediately following the later of the Participant’sdeath or the Participant’s Normal Retirement Date).

 

(b)                                 Ifthe Participant’s Beneficiary at the date of his death is any person other thanhis Spouse, there shall be paid to the Participant’s Beneficiary as soon aspracticable after the Participant’s death occurs a lump sum payment equal to100% of the balance of Participant’s Cash Balance Account as of the last day ofthe month prior to the month of distribution.

 

(c)                                  AParticipant’s Beneficiary shall be his Spouse unless (i) the Participant electsto waive the death benefit payable to his Spouse in accordance with Subsection(a) and to designate a Beneficiary to receive the death benefit payable inaccordance with Subsection (b), (ii) his Spouse consents to the electionand such consent is in writing, acknowledges the effect of such election, andis witnessed by a Plan representative or notary public, and (iii) the electionand consent are made in the form and manner prescribed by the Committee.  A Spouse’s consent shall not be required(for a Participant’s election of a Beneficiary death benefit) if it isestablished to the satisfaction of the Committee that the Participant is notmarried or that the consent cannot be obtained because the Spouse cannot belocated or because of such other circumstances as may be prescribed inregulations issued by the Internal Revenue Service.  Any election made pursuant to this Subsection (c) may be revokedprior to the Participant’s Annuity Starting Date (and a new election made asdescribed above in this Subsection (c)) in the form and manner prescribed bythe Committee.  A Spouse’s consent shallnot be effective with respect to any other subsequent spouse.  A Participant’s election prior to the firstday of the Plan Year in which the Participant attains age 35 shall beinvalid upon the first day of the Plan Year in which the Participant attainsage 35 (a 

 

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Participant who again desires to elect aBeneficiary death benefit must make a new election as described above in thisSubsection (c)); provided, however, that an election by a Participant after theParticipant has terminated employment shall not become invalid under theforegoing provisions of this sentence.

 

(d)                                 Withina reasonable period after an Employee becomes a Cash Balance Participant andeither prior to the first day of the Plan Year in which such Participantattains age 35, or if earlier, within a reasonable period after aSeparation from Service (prior to age 35) by such Participant, the Committeeshall provide the Participant with a written explanation of (1) the termsand conditions of the death benefit payable to his Spouse underSubsection (a), (2) the Participant’s right to waive the deathbenefit payable to his Spouse under Subsection (a) (and to designate aBeneficiary for the death benefit payable under Subsection (b)) and the effectof such waiver, (3) the rights of his Spouse and (4) his right torevoke any prior waiver and designation and the effect of such revocation.

 

ARTICLE 7

 

FORMS OFPENSION

 

7.1                                 Normal Forms of Pension

 

(a)                                  UnmarriedParticipants

 

The normal form of pension payable under thePlan to a Participant who is not married on his Annuity Starting Date and whodoes not otherwise elect an optional form of pension under Section 7.2(Optional Forms of Retirement Income), will be a single-life income payable inequal monthly installments throughout the Participant’s lifetime, ceasing withthe installment due on the first day of the calendar month in which his deathoccurs.

 

(1)                                  Non-CashBalance Participant.  For aParticipant who had not become a Cash Balance Participant, each monthlyinstallment will equal 1/12th of the Annual Pension (payable as of his AnnuityStarting Date) as determined pursuant to Article 4 (Amount of Life-OnlyPension) (including application of any early payment factors).

 

(2)                                  CashBalance Participant Without Prior Conversion Pension.  For a Participant who had become a CashBalance Participant and is not described in Subsection 4.4A(b) (Special Rulefor Certain Participants)), each monthly installment will equal 1/12th of theannual life annuity payable as of his Annuity Starting Date that is 

 

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the greater of (i) the Participant’s AnnualPension as determined pursuant to Subsection 4.4A(a) (General Rule), reducedfor an Annuity Starting Date before his Normal Retirement Date to an ActuarialEquivalent annual annuity payable for the Participant’s life commencing as ofhis Annuity Starting Date or (ii) the Participant’s Cash Balance Accountconverted into an Actuarial Equivalent annual annuity payable for theParticipant’s life commencing as of his Annuity Starting Date.

 

(3)                                  CashBalance Participant With Prior Conversion Pension.  For a Participant who had become a CashBalance Participant and is described in Subsection 4.4A(b) (Special Rule forCertain Participants)), each monthly installment will equal 1/12th of theannual life annuity payable as of his Annuity Starting Date that is thegreatest of (i), (ii) or (iii):

 

(i)                                     AnnualPension Equivalent

 

The Participant’s Annual Pension asdetermined pursuant to Subsection 4.4A(b) (Special Rule for CertainParticipants), reduced for an Annuity Starting Date before his NormalRetirement Date to an Actuarial Equivalent annual annuity payable for theParticipant’s life commencing as of his Annuity Starting Date.

 

(ii)                                  CashBalance Account Equivalent

 

The Participant’s Cash Balance Accountconverted into an Actuarial Equivalent annual annuity payable for theParticipant’s life commencing as of his Annuity Starting Date.

 

(iii)                               SpecialRule

 

The sum of (A) the Prior Conversion Pension,reduced for an Annuity Starting Date before his Normal Retirement Date to anannual annuity payable for the Participant’s life commencing as of his AnnuityStarting Date using the applicable early payment factors that would otherwisehave been applicable to the Prior Conversion Pension (for any reduction down tothe Participant’s age 50) and if the Participant has not attained age 50 as ofhis Annuity Starting Date, reduced for payment prior to Participant’s age 50using the Actuarial Equivalent factors (of Subsection 1.5(a) and (b)) and (B)the greater of (x) the Annual Pension that the Participant would have had underSection 4.4A(a)(General Rule) if the Participant had no accrued benefit otherthan his Cash Balance Account and had no amount credited to his Cash BalanceAccount in accordance with Section 4.1A (Opening Account), reduced for anAnnuity Starting Date before his Normal Retirement Date to an ActuarialEquivalent annual annuity payable for the Participant’s life commencing as ofhis Annuity Starting Date or (y) the Cash Balance Account that the Participantwould have had under Section 4.4A(a)(General Rule) if the Participant had noaccrued 

 

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benefit other than his Cash Balance Accountand had no amount credited to his Cash Balance Account in accordance withSection 4.1A (Opening Account), converted into an Actuarial Equivalent annualannuity payable for the Participant’s life commencing as of his AnnuityStarting Date.

 

(b)                                 MarriedParticipants

 

The normal form of pension payable under thePlan to a Participant who is married on his Annuity Starting Date and who doesnot otherwise elect an optional form of pension under Section 7.2(Optional Forms of Retirement Income) is a “Qualified Joint and SurvivorAnnuity,” which will be paid as follows:

 

(1)                                  Tothe Participant:

 

A reduced pension based on the100 percent option in equal monthly installments payable on his AnnuityStarting Date and on the first day of each calendar month thereafter.  Payments will cease with the installment dueon the first day of the calendar month in which the Participant dies.  The reduced amount payable to theParticipant will be the Actuarial Equivalent of the amount that would otherwisebe paid to the Participant if he were unmarried.

 

If a Participant has an annual accruedbenefit under the MRP or the RIP as of December 31, 1997, the reducedpension payable to him will not be less than the Participant’s annual accruedbenefit under the MRP or the RIP as of December 31, 1997, multiplied bythe applicable MRP/RIP Spousal and Contingent Annuitant benefit factor from thetable in Addendum C to the Plan.

 

(2)                                  Tohis Spouse:

 

A pension payable in equal monthlyinstallments, each monthly installment being equal to 100 percent of themonthly installment paid to the Participant. The first installment will be payable on the first day of the calendarmonth following the Participant’s death, if 

 

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the Spouse is then living; subsequentinstallments are payable on the first day of each calendar month, ceasing withthe installment due on the first day of the calendar month in which the Spousedies.  If the Participant’s AnnuityStarting Date is on or after the date of the Participant’s 50thbirthday and the Participant’s Spouse predeceases the Participant after reducedpension payments under this Subsection have begun, payments will be made to theParticipant after the Spouse’s death in the form of an unreduced single lifeannuity pursuant to Subsection (a) as of the first day of the month afterthe Participant notifies the Committee of the Spouse’s death.

 

If a Participant who has not become a CashBalance Participant and who is entitled to benefits under the provisions ofSection 4.4 (General Method of Computing Annual Pension for Retirement atEarly Retirement Date) dies after his Actual Separation Date, but prior to thecommencement of pension payments, and if the Participant’s Actual SeparationDate is on or after his 50th birthday, under the normal form of pensionapplicable to him, his Spouse will be entitled to receive, commencing on thefirst day of the calendar month following the Participant’s death, if theSpouse is then living, a monthly pension, with each monthly installment equalto the amount that would have been payable to the Spouse following theParticipant’s death pursuant to his election, or if no election is made, thenpursuant to the provisions of this Paragraph (b)(2), if the Participanthad begun receiving pension benefits on the first day of the calendar month inwhich the Participant died.

 

7.2                                 Optional Forms of RetirementIncome

 

Subject to the following conditions, aParticipant, by making a request to the Committee or its designee within theelection period specified in this Section, may elect to receive, in lieu of thenormal form of pension applicable to him under Section 7.1 (Normal Formsof Pension), one of the optional forms of pension specified under this Section(the “Contingent Pension Option”).  Eachelection must be made by the Participant in a manner prescribed by theCommittee or its designee.  The electionof the Contingent Pension Option will take effect at a specified date, referredto as the “Option Effective Date.”  Theamount of pension payable under any optional form will be the ActuarialEquivalent of the pension that would have been payable to the Participant underSubsection 7.1(a) (Unmarried Participants).

 

At least 30 days but no more than90 days before a Participant’s Annuity Starting Date, the Committee or itsdesignee will provide the Participant whose normal form of pension applicableto him is described in Subsection 7.1(a) (Normal Forms of Pension) with awritten explanation of (a) the terms and conditions of 

 

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the normal form of pension benefitsapplicable to him under Subsection 7.1(a) (Normal Forms of Pension);(b) the Participant’s ability to elect to receive, in lieu of the normalform of pension applicable to him under Subsection 7.1(a) (Normal Forms ofPension), an optional form of pension under this Section; (c) the relativefinancial effect of the election on his pension benefits; (d) theavailability of additional information describing the particular financialeffect of the election upon his pension benefit; and (e) the proceduresthe Participants must follow to obtain the additional information.

 

The Committee or its designee will provideeach Participant whose normal form of pension is a Qualified Joint and SurvivorAnnuity, at least 30 days but no more than 90 days before theParticipant’s Annuity Starting Date, a written explanation of (a) theterms and conditions of the Qualified Joint and Survivor Annuity, (b) theParticipant’s right to make and the effect of an election to waive a QualifiedJoint and Survivor Annuity, (c) the rights of a Participant’s Spouse withrespect to the selection of benefit forms, and (d) the right to make andthe effect of a revocation of a previous election to waive the Qualified Jointand Survivor Annuity.  A Participant mayelect to waive any requirement that the Applicable Election Period extend atleast 30 days after the Committee provides the Participant with thewritten explanations described in this Section, if the distribution begins morethan seven days after the applicable written explanation is provided.  If the Participant is married, theParticipant’s Spouse must consent to the waiver in writing before a notarypublic or a Plan representative.

 

To be effective, an election to waive theQualified Joint and Survivor Annuity must be made in writing during the90 day period ending on the Annuity Starting Date and, if the Participantis married, it must be consented to by the Participant’s Spouse.  The election must designate a Beneficiary(or a form of benefits) that may not be changed (except back to a QualifiedJoint and Survivor Annuity) without the Spouse’s consent, unless the Spouse’soriginal consent expressly permits designations by the Participant without anyrequirements of further consent by the Spouse. The Spouse’s consent must be given in writing during the 90 day periodending on the Annuity Starting Date, must acknowledge the effect of theelection and the consent, and must be witnessed by a Plan representative ornotary public.  If the Participantestablishes to the satisfaction of a Plan representative that the Spouse’swritten consent cannot be obtained because there is no Spouse or the Spousecannot be located, the Spouse’s consent will be deemed to have been given.  If a Participant is legally separated fromhis Spouse or has been abandoned by his Spouse (within the meaning of locallaw) and the Participant has a court order to such effect, the Spouse’s consentwill not be required unless a Qualified Domestic Relations Order providesotherwise.  Any Spousal consent will bevalid only with respect to the Spouse who signs the consent, or in the event ofa deemed consent, the designated Spouse. If a Participant’s Spouse is legally incompetent to give consent, theSpouse’s legal guardian (even if the guardian is the Participant) may giveconsent.  A Participant may revoke aprior effective election at any time prior to the receipt of benefits.

 

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(a)                                  Single-LifeOption

 

A married Participant whose normal form ofpension is a Qualified Joint and Survivor Annuity may elect, in lieu of allpayments otherwise payable, a single-life pension that provides payments to theParticipant in equal monthly installments throughout his lifetime, ceasing withthe installment due on the first day of the calendar month in which theParticipant dies.  Each monthlyinstallment will equal the monthly installment that would have been payable tothe Participant under Subsection 7.1(a) (Unmarried Participants).

 

(b)                                 ContingentPension Option

 

A Participant may elect, in lieu of allpayments otherwise payable on and after the Option Effective Date, theContingent Pension Option providing payments as follows:

 

(1)                                  Tothe Participant:

 

A reduced pension beginning on the OptionEffective Date, with subsequent monthly payments payable on the first day ofeach subsequent calendar month throughout his remaining lifetime, terminatingwith the payment due on the first day of the calendar month in which hedies.  The reduced amount payable to theParticipant will be determined in accordance with the Participant’s choice ofthe 100 percent, 662/3 percent, or 50 percentoption and will be the Actuarial Equivalent of the amount that would otherwisebe paid to the Participant under the single-life annuity option applicable tohim pursuant to Subsection 7.2(a) (Optional Forms of Retirement Income).  An option cannot be elected, modified, orrescinded after the Option Effective Date.

 

If a Participant has an annual accruedbenefit under the MRP or the RIP as of December 31, 1997, the reducedpension payable to him will not be less than the Participant’s annual accruedbenefit under the MRP or the RIP as of December 31, 1997, multiplied by(A) for the 100 percent option, the applicable MRP/RIP Spousal andContingent Annuitant Benefit factor from the table in Addendum C to thePlan, or (B) for the 50 percent option, the applicable50 percent Contingent Annuitant Benefit factor from the table inAddendum D to the Plan.

 

(2)                                  Tothe Contingent Annuitant designated by the Participant at the time he electsthis option:

 

A contingent pension beginning on the firstday of the calendar month following the calendar month in which theParticipant’s 

 

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death occurs if the Participant dies on orafter the Option Effective Date, and if the Contingent Annuitant is thenliving, with subsequent monthly payments payable on the first day of eachsubsequent calendar month throughout the Contingent Annuitant’s remaininglifetime, terminating with the monthly payment due on the first day of thecalendar month in which the Contingent Annuitant dies.  However, if the Participant had elected todefer his pension payments, the Contingent Annuitant may elect, at any timeprior to the date contingent pension payments actually begin, to have thepayments begin after the Participant’s death on the first day of any calendarmonth coincident with or prior to the date the Participant had elected to startreceiving his pension payments.

 

The monthly amount payable to the ContingentAnnuitant will be a specified percentage of the reduced pension payable underthis option to the Participant, as specified by the Participant.  This percentage will be either100 percent, 662/3 percent, or50 percent.  Notwithstanding theforegoing, if the Contingent Annuitant is other than the Participant’s Spouse,the Contingent Pension Option may be elected only if the requirements of26 C.F.R. §1.401(a)(9)-2 are satisfied.

 

An option will not become effective, andpayments will be made as otherwise provided in the Plan as if this option hadnever been elected, if:  (a) theParticipant is not living on the Option Effective Date, (b) theParticipant does not, within 90 days after his election, and not laterthan the Option Effective Date, furnish evidence, satisfactory to theCommittee, of the age of his Contingent Annuitant, or (c) the Participantelects, prior to the Option Effective Date, to cancel the option.  If the Participant’s Annuity Starting Dateis on or after the date of the Participant’s 50th birthday and theParticipant’s Contingent Annuitant predeceases the Participant after thecontingent pension payments have begun, the option will be canceled and nolonger effective, and payments will be made to the Participant in the form ofan unreduced single-life annuity applicable to him pursuant to Subsection 7.2(a)(Optional Forms of Retirement Income) as of the first day of the month afterthe Participant notifies the Committee of the Contingent Annuitant’s death.

 

Notwithstanding anything to the contrary inthis Subsection (b), the Contingent Pension Option in the form of a 66-2/3percent or 50 percent option shall only be available if the Participanthas or will have attained age 50 by his Annuity Starting Date.

 

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(c)                                  Lifewith Ten Year Certain Option

 

A Participant who has or will have attainedage 50 by the Annuity Starting Date may, in lieu of all payments otherwisepayable on and after the Option Effective Date, elect the Life with Ten YearCertain Option providing payments as follows:

 

(1)                                  Tothe Participant:

 

A reduced pension beginning on the OptionEffective Date with subsequent monthly payments payable on the first day ofeach calendar month thereafter for ten years or throughout his remaininglifetime, whichever is longer, terminating with the payment due on the firstday of the calendar month after the end of ten years or in which theParticipant dies, whichever is applicable.

 

If the Participant elects the Life with TenYear Certain Option, the amount of the Participant’s Nonforfeitable annualpension will be determined by multiplying his Annual Pension by the appropriateLife with Ten Year Certain Factor as obtained from the following table:

 
| **LIFE WITH  TEN YEAR CERTAIN FACTORS** |   |
|-----------------------------------------|--------|
| **Age**                                 |   | **Factor** |   | **Age** |   | **Factor** |   |
| 50                                      |   | .9869 |   | 70 |   | .9065 |   |
| 51                                      |   | .9855 |   | 71 |   | .8977 |   |
| 52                                      |   | .9839 |   | 72 |   | .8883 |   |
| 53                                      |   | .9823 |   | 73 |   | .8780 |   |
| 54                                      |   | .9803 |   | 74 |   | .8670 |   |
| 55                                      |   | .9783 |   | 75 |   | .8553 |   |
| 56                                      |   | .9760 |   | 76 |   | .8429 |   |
| 57                                      |   | .9734 |   | 77 |   | .8299 |   |
| 58                                      |   | .9706 |   | 78 |   | .8163 |   |
| 59                                      |   | .9674 |   | 79 |   | .8021 |   |
| 60                                      |   | .9639 |   | 80 |   | .7875 |   |
| 61                                      |   | .9601 |   | 81 |   | .7723 |   |
| 62                                      |   | .9558 |   | 82 |   | .7569 |   |
| 63                                      |   | .9511 |   | 83 |   | .7413 |   |
| 64                                      |   | .9461 |   | 84 |   | .7253 |   |
| 65                                      |   | .9407 |   | 85 |   | .7090 |   |
| 66                                      |   | .9347 |   | 86 |   | .6925 |   |
| 67                                      |   | .9285 |   | 87 |   | .6758 |   |
| 68                                      |   | .9217 |   | 88 |   | .6591 |   |
| 69                                      |   | .9145 |   | 89 |   | .6424 |   |
|                                    |   |   |   | 90 |   | .6259 |   |

 

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(2)                                  Tothe Beneficiary designated by the Participant at the time he elects thisoption:

 

If the Participant dies prior to the end often years from the date of his initial pension payment, a contingent pensionpayable on the first day of the calendar month following the calendar month inwhich the Participant dies if the Participant’s death is on or after the OptionEffective Date and if the Beneficiary is then living, with subsequent monthlypayments being payable on the first day of each calendar month for the balanceof ten years from the date of the Participant’s Option Effective Date; providedthat if the Beneficiary is not then living, or if the Beneficiary dies beforethe first day of the last calendar month of such ten year period from the dateof the Participant’s Option Effective Date, any remaining monthly payments forsuch ten year period shall be paid to the Beneficiary’s estate.

 

(d)                                 LifeAnnuity Level Income Option

 

A Participant who has or will have attainedage 50 by the Annuity Starting Date and who retires prior to reachingage 62 may elect, in lieu of all payments otherwise payable on and afterthe Option Effective Date, the Life Annuity Level Income Option, which providespayments to the Participant that are adjusted for the months before and afterthe Participant is eligible to receive benefits under the Social Security Actat age 62.

 

The Participant will receive a reducedpension on the Option Effective Date, with subsequent monthly payments payableon the first day of each calendar month thereafter for his remaining lifetime,terminating with the payment due on the first day of the calendar month inwhich his death occurs.  The reducedpension the Participant receives will be calculated as follows:

 

(1)                                  Subjectto Paragraph (5), Participant’s Annual Pension will be determined pursuantto Article 4 (Amount of Life-Only Pension) or Article 4A (CashBalance Accounts), whichever is applicable.

 

(2)                                  Subjectto Paragraph (5), the Participant’s Reduced Primary Social SecurityBenefit will be multiplied by the appropriate Level Income Option factor fromthe table in Addendum E to the Plan.

 

(3)                                  Thesum of the amounts determined under Paragraphs (1) and (2) will equal theLevel Income Option benefit payable to the Participant prior to age 62,which is the first date he is eligible to begin receiving Social Security Actbenefits.

 

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(4)                                  TheLevel Income Option benefit payable to the Participant after he reachesage 62 will equal the amount determined in Paragraph (3), minus theParticipant’s Reduced Primary Social Security Benefit.

 

(5)                                  Ifa Participant has an annual accrued benefit under the MRP or the RIP as ofDecember 31, 1997, the Level Income Option benefit payable to thatParticipant will not be less than the sum of (A) and (B), where (A) equals theParticipant’s annual accrued benefit under the MRP or the RIP as ofDecember 31, 1997, and (B) equals the Participant’s Reduced Primary SocialSecurity Benefit multiplied by the appropriate MRP/RIP Level Income Optionfactor from the table in Addendum F to the Plan.

 

(e)                                  100 PercentContingent Annuitant Level Income Option

 

A Participant who has or will have attainedage 50 by the Annuity Starting Date and who retires prior to reachingage 62 may, in lieu of all payments otherwise payable on or after theOption Effective Date, elect the 100 Percent Contingent Annuitant LevelIncome Option, which provides payments as follows:

 

(1)                                  Tothe Participant:

 

A reduced pension that is adjusted for themonths before and after the Participant is eligible to receive benefits underthe Social Security Act at age 62. The Participant will receive a reduced pension on the Option EffectiveDate, with subsequent monthly payments payable on the first day of the calendarmonth thereafter for his remaining lifetime, terminating with the payment dueon the first day of the calendar month in which the Participant dies.

 

The reduced pension the Participant receivesunder this option will be calculated as follows:

 

(A)                              Theamount that would otherwise be payable with respect to the Participant underthe 100 percent Contingent Pension Option under Subsection 7.2(b)(Optional Forms of Retirement Income) is determined.

 

(B)                                Subjectto Subparagraph (E), the Participant’s Reduced Primary Social SecurityBenefit will be multiplied by the appropriate Level Income Option factor fromthe table in Addendum E to the Plan.

 

(C)                                Thesum of the amounts determined under Subparagraphs (A) and (B) will equalthe Level Income Option benefit payable to the Participant prior to age 62,

 

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which is the first date he is eligible tobegin receiving Social Security Act benefits.

 

(D)                               TheLevel Income Option benefit payable to the Participant after he attainsage 62 will equal the amount determined in Subparagraph (C), minusthe Participant’s Reduced Primary Social Security Benefit.

 

(E)                                 Ifa Participant has an annual accrued benefit under the MRP or the RIP as ofDecember 31, 1997, the Level Income Option benefit payable to that Participantwill not be less than the sum of (i) and (ii), where (i) equals theParticipant’s annual accrued benefit under the MRP or RIP as ofDecember 31, 1997, converted to a reduced pension based on the100 percent Contingent Annuitant Pension Option under Subsection 7.2(b)(Optional Forms of Retirement Income), and (ii) equals the Participant’sReduced Primary Social Security Benefit multiplied by the appropriate MRP/RIPLevel Income Option factor from the table in Addendum F to the Plan.

 

(2)                                  Tothe Contingent Annuitant:

 

A contingent pension beginning on the firstday of the calendar month following the calendar month in which the Participantdies if the Participant dies on or after the Option Effective Date, and if theContingent Annuitant is then living; with subsequent monthly payments payableon the first day of each subsequent calendar month throughout the ContingentAnnuitant’s remaining lifetime, terminating with the monthly payment due on thefirst day of the calendar month in which the Contingent Annuitant dies.  However, if the Participant had elected todefer his pension payments, the Contingent Annuitant may elect at any timeprior to the date contingent pension payments actually begin, to have thepayments begin after the Participant’s death on the first day of any calendarmonth coincident with or prior to the date the Participant had elected to startreceiving payments.

 

The monthly amount payable to the ContingentAnnuitant will equal 100 percent of the reduced pension that would havebeen payable under this option to the Participant.

 

An option will not become effective, andpayments will be made as otherwise provided in the Plan as if this option hadnever been elected, if:  (a) theParticipant is not living on the Option Effective Date, (b) theParticipant does not, within 90 days after his election, but not laterthan the Option Effective Date, furnish evidence, 

 

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satisfactory to the Committee, of the age ofhis Contingent Annuitant, or (c) the Participant elects, prior to theOption Effective Date, to cancel the option. If the Participant’s Annuity Starting Date is on or after the date ofthe Participant’s 50th birthday and the Participant’s ContingentAnnuitant predeceases the Participant after the contingent pension paymentshave begun, the option will be canceled and no longer effective, and paymentswill be made to the Participant in the form of a reduced single-life annuitylevel income option applicable to him pursuant to Subsection 7.2(d)(Optional Forms of Retirement Income) as of the first day of the month afterthe Participant notifies the Committee of the Contingent Annuitant’sdeath.  An option cannot be elected,modified, or rescinded after the Option Effective Date.

 

(f)                                    CashBalance Account Single Sum

 

A Participant with a Cash Balance Account mayelect, in lieu of all payments otherwise payable on and after the OptionEffective Date, the Cash Balance Account single sum which shall be a lump sumpayment equal to the greatest of (i) the balance of the Participant’s CashBalance Account as of the day prior to his Annuity Starting Date, (ii) theActuarial Equivalent lump sum amount of the Participant’s Annual Pension, or(iii) the sum of the Cash Balance Account that the Participant would have hadunder Article 4A(Cash Balance Accounts) if the Participant had no accruedbenefit other than his Cash Balance Account and had no amount credited to hisCash Balance Account in accordance with Section 4.1A (Opening Account) andthe Actuarial Equivalent lump sum amount of his Prior Conversion Pension.

 

ARTICLE 8

 

PAYMENT OFPENSION

 

8.1                                 Timing of Payment

 

This Section is subject to the provisions ofSection 8.3 (Small Benefits) and Section 8.6 (Required Payment ofBenefits).

 

A Participant who ceases to be an Employee asof his Normal Retirement Date will begin receiving any pension payable to himunder the Plan as of his Normal Retirement Date.  A Participant who continues as an Employee after his NormalRetirement Date will begin receiving the pension payable to him under the Planas of the first day of the calendar month coincident with or following hisSeverance from Service.

 

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A Participant who had not become a CashBalance Participant and who ceases to be an Employee as of an Early RetirementDate will begin receiving his pension at his Normal Retirement Date unless heelects to begin receiving his pension on either his Early Retirement Date orthe first day of a calendar month between his Early Retirement Date and hisNormal Retirement Date (the “Deferred Pension Payment Date”); provided he hasmade the required election, in a manner prescribed by the Committee, prior tothe date he wants his pension to begin. A Participant who had become a Cash Balance Participant will beginreceiving his pension at his Normal Retirement Date unless he elects to beginreceiving his pension on the first day of a calendar month following hisSeverance from Service.

 

8.2                                 Method of Payment

 

Unless specified elsewhere in the Plan, allpension payments under the Plan will normally be payable in equal monthlyinstallments, with each monthly installment equal to 1/12th of the annualamount payable.  Pension payments willbe (a) made by check to the order of the Participant, his Spouse, hisBeneficiary or his Contingent Annuitant, as applicable, and mailed to thatperson’s address as it appears on the Employer’s records, or (b) depositeddirectly into an account of the Participant, his Spouse, his Beneficiary or hisContingent Annuitant, as applicable, maintained by the recipient at a bank,savings and loan, or other financial institution, as directed by the recipient.

 

8.3                                 Small Benefits

 

Notwithstanding the provisions ofSections 6.2 (Method of Payment of Spouse’s Benefit for Participant WhoHad Not Become a Cash Balance Participant) and 7.2 (Optional Forms ofRetirement Income), for a Participant who had not become a Cash BalanceParticipant or for a Spouse with a benefit under Section 6.1 (Determination ofSpouse’s Benefit for Participant Who Had Not Become a Cash BalanceParticipant), where the Actuarial Equivalent present value of theNonforfeitable Annual Pension of the Participant or the Spouse’s benefit underSection 6.1 (Determination of Spouse’s Benefit for Participant Who Had NotBecome a Cash Balance Participant) does not exceed $5,000 as of his Severancefrom Service Date (and as of the date as of which payment is made), theCommittee or its designee will pay the Nonforfeitable Annual Pension orSpouse’s benefit (if applicable) in a single-sum cash payment equal to theActuarial Equivalent of the pension or Spouse’s benefit otherwise payable inlieu of all other benefits under the Plan. Notwithstanding the provisions of Sections 6.3 (Preretirement DeathBenefit for Cash Balance Participant), 7.1 (Normal Forms of Pension) and 7.2(Optional Forms of Retirement Income), for a Participant who had become a CashBalance Participant or for a Spouse or Beneficiary (if applicable) with respectto a Participant who had become a Cash Balance Participant, where the singlesum value of Participant’s accrued benefit as determined under Subsection7.2(f) (Cash Balance Account Single Sum) or Spouse’s or Beneficiary’s deathbenefit (if applicable) does not exceed $5,000 as 

 

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of the Participant’s Severance from ServiceDate (and as of the date as of which payment is made), the Committee or itsdesignee will pay such single sum value or Spouse’s or Beneficiary’s deathbenefit (if applicable) in a single-sum cash payment to the Participant, Spouseor Beneficiary (as applicable) in lieu of all other benefits under the Plan.

 

8.4                                 Facility of Payment

 

If any benefit under the Plan is payable to aperson whom the Committee knows is a minor or otherwise under legal incapacity,the Committee or its designee may have the payment made to the legal guardianof that person or to the person or organization as a court of competentjurisdiction may direct.  To the extentpermitted by law, any payment under this Section will be a complete dischargeof any liability under the Plan to that person.

 

8.5                                 Benefits for Late Retirees,Reemployed Retirees and Reemployed Terminated Vested Participants

 

(a)                                  LateRetirees

 

A Participant may postpone his retirement andcontinue his employment with an Employer after his Normal Retirement Date.  If a Participant who had not become a CashBalance Participant continues employment after his Normal Retirement Date, hewill continue to accrue years of Service and years of Participation during thistime period up to the date of his actual retirement.  If a Participant who had become a Cash Balance Participantcontinues employment after his Normal Retirement Date, he will continue toaccrue Pay Credits during this time period up to the date of his actualretirement and Interest Credits up to the Participant’s Annuity StartingDate.  The Participant’s benefit will becalculated under Article 4 (Amount of Life-Only Pension) or Article 4A(Cash Balance Annual Pension), or Article 6 (Spouse’s Benefit), whicheveris applicable, as of his Severance from Service Date.

 

(b)                                 Suspensionof Retirement Benefit Notice for Participant Who Continues Employment After HisNormal Retirement Date

 

When a Participant continues in employmentwith an Employer beyond his Normal Retirement Date, benefits will not beginduring that continued period of employment unless required underSection 8.6 (Required Payment of Benefits).  The Participant will be sent a notification described in§ 2530.203-3(b)(4) of the Department of Labor regulations, provided thatthe suspension of benefits notice is limited to periods of service within thecontext of § 2530.203-3(c) of the Department of Labor regulations.

 

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(c)                                  ReemployedRetirees and Reemployed Terminated Vested Participants

 

(1)                                  ReemployedRetiree or Reemployed Terminated Vested Participant Who Had Not Become a CashBalance Participant.

 

A Reemployed Retiree or Reemployed TerminatedVested Participant who had not become a Cash Balance Participant and whoresumes employment will continue to receive any pension benefit payments underthe Plan to which he is entitled, and will begin to receive any pension benefitpayments under the Plan, as if he were not reemployed.  When such Reemployed Retiree or ReemployedTerminated Vested Participant again incurs a Severance from Service, his AnnualPension will, subject to all of the provisions of the Plan, be recalculated byaggregating his years of Participation and by considering his Earnings duringhis period of reemployment; provided, however, that the Participant’s benefitsas recalculated will not be less than the Actuarial Equivalent of his AnnualPension prior to his reemployment.  TheParticipant’s recalculated Annual Pension will be reduced by the ActuarialEquivalent of the pension benefits already paid to the Participant.  Any pension benefit payable to a Spouse orContingent Annuitant will also be based on the Participant’s pension benefit,as so recalculated and reduced.

 

(2)                                  ReemployedRetiree or Reemployed Terminated Vested Participant Who Had Become a CashBalance Participant.

 

(I)                                    AReemployed Retiree or Reemployed Terminated Vested Participant who had become aCash Balance Participant and who does not have his years of Service prior tohis Severance from Service reinstated will have his Cash Balance Accountreinstated with a zero balance.

 

(II)                                AReemployed Retiree or Reemployed Terminated Vested Participant who had become aCash Balance Participant, who has his years of Service prior to his Severancefrom Service reinstated, and who has had a distribution of his entire benefitunder the Plan will have his Cash Balance Account reinstated with a zerobalance.

 

(III)                            AReemployed Retiree or Reemployed Terminated Vested Participant who had become aCash Balance Participant, who has his years of Service prior to his Severancefrom Service reinstated, and who has not had a distribution of his entirebenefit under the Plan will continue to receive any pension benefit paymentsunder the Plan to which he is 

 

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entitled as if he were not reemployed andwill have his Cash Balance Account reinstated with a zero balance.

 

(d)                                 QuestionsConcerning Effect on Reemployment

 

The Plan’s benefit claims procedures may beused by an individual who has questions concerning the effect of reemploymentby his Employer upon his pension benefit payments.

 

(e)                                  AdditionalRules and Procedures

 

The Committee is authorized to develop morefully the provisions of this Section by establishing, from time to time,various rules and procedures consistent with ERISA, the Code, and the Plan.

 

8.6                                 Required Payment of Benefits

 

This Section has been included in the Plan tocomply with the limitations imposed by Code paragraphs 401(a)(9) and401(a)(14), and it will not be construed as providing for a form of benefit nototherwise provided under the Plan. Notwithstanding any provision of this Plan to the contrary, anydistribution under the Plan will be made in accordance with regulations underCode paragraph 401(a)(9), including proposed federal income taxregulation 1.401(a)(9)–2, and will comply with the following rules:

 

(a)                                  Unlessa Participant elects otherwise, the payment of his benefits under the Plan mustbegin not later than the 60th day after the end of the Plan Year in whichoccurs the latest of:  (1) theParticipant’s 65th birthday; (2) the 10th anniversary of thePlan Year in which the Participant began participation in the Plan; or(3) termination of the Participant’s employment with the Employer.

 

(b)                                 Forpurposes of this Article, “required beginning date” means (1) with respectto a Participant who is not a 5 percent owner as described in Codesection 416 and who did not reach age 701⁄2 before January 1, 1997,April 1 of the calendar year following the later of (A) the calendaryear in which the Participant reaches age 701⁄2, or (B) the calendar year inwhich the Participant retires; or (2) with respect to a Participant who isa 5 percent owner as described in Code section 416, or anyParticipant who reached age 701⁄2 before January 1, 1997, April 1 ofthe calendar year following the calendar year in which the Participant reachesage 701⁄2.  The Plan will provide anactuarial increase in accordance with the actuarial assumptions specified inSection 1.5 to a Participant’s interest in the Plan for the periodbeginning on the April 1 of the calendar year following the calendar yearin which the Participant reaches age 701⁄2 and ending on the date on whichbenefits begin after the Participant’s retirement in an amount sufficient tosatisfy Code paragraph 401(a)(9). The benefits payable to the 

 

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Participant at the end of the perioddescribed in the preceding sentence will be no less than the ActuarialEquivalent of the benefit that would have been payable to the Participant as ofthe April 1 of the calendar year following the calendar year in which theParticipant reached 701⁄2.

 

(c)                                  Notwithstandingany other provision of this Plan, the entire interest of each Participant willbe distributed either:  (1) in alump sum payment not later than the required beginning date, or (2) in aseries of payments beginning not later than the required beginning date overthe life of the Participant or over the lives of the Participant and thedesignated Beneficiary (or over a period not extending beyond the lifeexpectancy of the Participant or the life expectancy of the Participant and adesignated Beneficiary).  If theParticipant’s interest is to be paid in the form of annuity distributions underthe Plan, payments under the annuity will satisfy the following requirements:

 

(1)                                  Theannuity distributions must be paid in periodic payments made at intervals notlonger than one year.

 

(2)                                  Forpurposes of computing the distribution period, life expectancies or joint andlast survivor expectancies will not be recalculated.

 

(3)                                  Oncepayments have begun, the distribution period may not be lengthened even if thatperiod would be shorter than the permitted maximum period.

 

(4)                                  Paymentsmust either be non-increasing or increase only as follows:

 

(A)                              withany percentage increase in a specified and generally recognized cost-of-livingindex;

 

(B)                                tothe extent of the reduction to the amount of the Participant’s payments toprovide for a survivor benefit upon death, but only if the Beneficiary orContingent Annuitant whose life was being used to determine the distributionperiod dies and the payments continue otherwise over the life of theParticipant;

 

(C)                                toprovide cash refunds of employee contributions upon the Participant’s death; or

 

(D)                               becauseof an increase in benefits under the Plan.

 

(5)                                  Ifthe annuity is a life annuity (or a life annuity with a period certain notexceeding 20 years), the amount that must be 

 

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distributed on or before the Participant’srequired beginning date (or, in the case of distributions after the death ofthe Participant, the date distributions are required to begin after theParticipant’s death) will be the payment that is required for one paymentinterval.  The second payment need notbe made until the end of the next payment interval even if that paymentinterval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g.,bi-monthly, monthly, semi-annually or annually.  If the annuity is a period certain annuity without a lifecontingency (or is a life annuity with a period exceeding 20 years), periodicpayments for each distribution calendar year will be combined and treated as anannual amount.  The amount that must bedistributed by the Participant’s required beginning date (or, in the case ofdistributions after the death of the Participant, the date distributions arerequired to begin after the Participant’s death) is the annual amount for thefirst distribution calendar year.  Theannual amount for other distribution calendar years, including the annual amountfor the calendar year in which the Participant’s required beginning date (orthe date distributions are required to begin after the Participant’s death)occurs, must be distributed on or before December 31 of the calendar yearfor which the distribution is required.

 

(d)                                 If(1) the distribution of a Participant’s interest has begun in accordancewith Subsection (c), and (2) the Participant dies before his entireinterest has been distributed to him, the remaining portion of his interestwill be distributed at least as rapidly as under the method of distributionbeing used under Subsection (c) as of the date of his death.

 

(e)                                  Exceptas provided in Subsection (f), if a Participant dies before thedistribution of his interest has begun in accordance with Subsection (c),the Participant’s entire interest will be distributed within five years afterhis death.

 

(f)                                    Forpurposes of Subsection (c), any portion of a distribution that is payableto (or for the benefit of) a designated Beneficiary will be treated ascompletely distributed on the date on which distribution began if:

 

(1)                                  thatportion is to be distributed (in accordance with regulations prescribed by theSecretary) over the life of the designated Beneficiary (or over a period notextending beyond the life expectancy of the Beneficiary), and

 

(2)                                  distributionsbegin by the latest of (A) one year after the date of the Participant’sdeath, (B) any later date that the Secretary may establish by regulations,or (C) if the Beneficiary is the 

 

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Participant’ssurviving Spouse, the date on which the Participant would have attainedage 70–1/2.

 

(g)                                 Ifthe designated Beneficiary is the Participant’s surviving Spouse, and if thesurviving Spouse dies before the distributions to the Spouse begin, Subsections (c),(e), and (f) will be applied as if the surviving Spouse were the Participant.

 

(h)                                 Forpurposes of Subsection (f), payment will be calculated by use of theexpected return multiples specified in Tables V and VI of 26 C.F.R.§1.72-9.  The life expectancy of adesignated Beneficiary will be calculated at the time payment first commenceswithout further recalculation.

 

(i)                                     Forpurposes of Subsections (c), (d), (e), and (f), if any amounts payable toa child of the Participant becomes payable to the Participant’s survivingSpouse and the child reaches the age of majority, that amount will be treatedas if it had been paid to the surviving Spouse.

 

(j)                                     Ifa Participant reaches age 701⁄2 on or after January 1, 1997, but beforeJanuary 1, 1999, the Plan will deem the Participant’s “required beginningdate” to be April 1 of the calendar year following the calendar year inwhich the Participant reaches age 701⁄2 unless the Participant elects, withhis Spouse’s consent, to defer commencement of his Plan benefits until a dateno later than April 1 of the calendar year following the calendar year inwhich the Participant retires.

 

8.7                                 Direct Rollovers of Eligible Distributions

 

Notwithstanding any provision of the Plan tothe contrary that would otherwise limit a Distributee’s election under thisSection, a Distributee may elect, at the time and in the manner prescribed bythe Committee, to have any portion of an Eligible Rollover Distribution paiddirectly to an Eligible Retirement Plan specified by the Distributee in aDirect Rollover.

 

ARTICLE 9

 

RETIREEMEDICAL/DENTAL BENEFITS

 

9.1                                 Purpose

 

This Article provides for the payment ofcertain Medical/Dental Benefits to Eligible Retirees and to their Dependentsunder the Plan.  The Medical/DentalBenefits described in this Article are intended to meet the requirements ofCode subsection 401(h) and its interpretive regulations.

 

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9.2           Eligibility

 

Only EligibleIndividuals will be eligible to receive Medical/Dental Benefits (or to haveMedical/Dental Benefits paid on their behalf) under this Article.

 

9.3           SeparateAccount

 

AMedical/Dental Benefits Account will be established and maintained with respectto contributions made to fund the benefits payable under this Article, whichwill be kept separate (for recordkeeping purposes only) from the amountscontributed to the Plan to fund all other benefits.  The funds in the Medical/Dental Benefits Account may be investedwith funds contributed to the Plan to fund other benefits withoutidentification of which assets of the Plan are allocable to the Medical/DentalBenefits Account and which are allocable to fund other benefits.  Where the assets are not so allocated,however, the earnings on the assets will be allocated in a reasonable mannerbetween the Medical/Dental Benefits Account and the amounts funding otherbenefits under the Plan.

 

9.4           Impossibilityof Diversion Prior To Satisfaction of All Liabilities

 

Prior to thesatisfaction of all liabilities under this Article to provide for the paymentof Medical/Dental Benefits, no part of the corpus or income of theMedical/Dental Benefits Account may be (within the taxable year or thereafter)used for, or diverted to, any purpose other than providing Medical/DentalBenefits or paying any reasonable expenses attributable to the administrationof the Medical/Dental Benefits Account.

 

9.5           ReversionUpon Satisfaction of All Liabilities

 

Notwithstandingthe provisions of Section 14.8 (No Diversion of Assets), any amounts thatare contributed to fund Medical/Dental Benefits and that remain in theMedical/Dental Benefits Account upon the satisfaction of all liabilitiesarising out of the operation of this Article are to be returned to EligibleRetirees, in proportion to their respective total contributions to theMedical/Dental Benefits Account.

 

9.6           Forfeitures

 

In the eventan Eligible Individual’s interest in the Medical/Dental Benefits Account isforfeited prior to termination of the Plan, an amount equal to the amount ofthe forfeiture will be applied as soon as possible to reduce Employercontributions to the Plan to fund the Medical/Dental Benefits under thisArticle.

 

9.7           EmployerContributions To The Medical/Dental Benefits Account

 

For each PlanYear, the Employer will contribute to the Medical/Dental Benefits Account theamount necessary to fund Medical/Dental Benefits, as determined by the Plan’sactuaries, provided that the contributions mandated by this sentence will

 

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be reasonable,and will be reduced (but not below zero) as required so that the aggregateactual contributions made to the Medical/Dental Benefits Account will notexceed 25% of the total aggregate actual contributions (other than anycontributions to fund past service credits) made to the Plan.  All contributions to the Medical/DentalBenefits Account will be paid to the Trustee, who will hold them in Trust forthe payment of Medical/Dental Benefits under this Article.  At the time an Employer makes a contributionto the Plan, it will designate the portion allocable to the Medical/DentalBenefits Account.

 

9.8           Medical/DentalBenefits

 

TheMedical/Dental Benefits under the Plan will be those benefits payable to or onbehalf of Eligible Individuals in accordance with the terms of a Medical/DentalPlan.

 

ARTICLE 10

 

NONALIENATIONOF BENEFITS

 

The PensionFund will not in any manner be liable for, or subject to, the debts orliabilities of any Participant, Beneficiary, Contingent Annuitant, or Spouse,or any other person entitled to any benefit. No payee may assign any payment due him under the Plan.  No pension or other benefits at any timepayable from the Pension Fund will be subject in any manner to anticipation,alienation, sale, transfer, assignment, pledge, attachment, garnishment, levy,execution, or other legal or equitable process or encumbrance of any kind.  Any attempt to alienate, sell, transfer,assign, or otherwise encumber any such benefit, whether presently or thereafterpayable, will be void.  However, thepayment of benefits under the Plan will be made in accordance with theapplicable requirements of any Qualified Domestic Relations Order entered by acourt of competent jurisdiction or a state administrative agency.  The Committee will establish procedures todetermine whether the domestic relations orders are Qualified DomesticRelations Orders and to administer distributions under Qualified DomesticRelations Orders.  Effective as ofAugust 5, 1997, notwithstanding any provision of the Plan to the contrary,the Plan shall honor a judgment, order, decree or settlement providing for theoffset of all or a part of a Participant’s benefit under the Plan, to theextent permitted under Code subparagraph 401(a)(13)(C); provided that therequirements of Code subparagraph 401(a)(13)(C)(iii) relating to the protectionof the Participant’s Spouse (if any) are satisfied.

 

ARTICLE 11

 

ADMINISTRATION

 

11.1         Administrator

 

The Committeewill be the administrator of the Plan. The Committee will consist of the number of members, not fewer thanthree, that is specified from time to

 

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time by theBoard of Directors.  All members of theCommittee will be Employees or officers of an Employer.  All members of the Committee will servewithout compensation.

 

11.2         Removaland Replacement of Committee Members

 

The members ofthe Committee will serve at the pleasure of the Board of Directors and may beremoved by the Board of Directors with or without cause.  Any vacancy among the members will be filledby the Board of Directors.

 

11.3         Disqualificationand Resignation

 

On the datewhen a Committee member is neither an Employee nor an officer of an Employer,he will be disqualified from membership on the Committee.  A member of the Committee may resign bydelivering his written resignation to any other member of the Committee.  A resignation will become effective on thedate specified in the instrument of resignation.

 

11.4         Chairperson, Services, and Counsel

 

The members ofthe Committee will elect one of their members as Chairperson and will elect aSecretary, who may be, but need not be, one of the members of theCommittee.  Cinergy will provide theCommittee, at Cinergy’s expense, with such clerical, accounting, actuarial, andother services as may be reasonably required by the Committee in carrying outits responsibilities.  The Committee mayemploy counsel, who may be, but need not be, counsel to Cinergy.

 

11.5         Meetings

 

The Committeewill hold meetings upon such notice, at the places, and at the times as theCommittee may from time to time determine, but no less often than quarterly.

 

11.6                           Quorum

 

A majority ofthe members of the Committee at the time holding office will constitute aquorum for the transaction of business. All resolutions and other action taken by the Committee at any meetingwill be by the vote of the majority of the members of the Committee present atthe meeting.

 

11.7         ActionWithout Meeting

 

Any decision,order, direction, or other action, including orders and directions to theTrustee or Insurance Company, made in writing signed by a majority of themembers of the Committee at the time holding office will constitute valid andeffective action of the Committee, whether or not the matter to which that decision,order, direction, or other action pertains had already been acted upon at aduly called and held meeting of the Committee.

 

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11.8         Noticeto Trustee of Changes in Membership

 

The Trusteewill not be charged with notice of any change in the membership of theCommittee unless and until it has received a certified copy of the resolutionor vote of the Board of Directors effecting the change.

 

11.9         Correctionof Defects

 

The Committeemay correct any defect or supply any omission or reconcile any error orinconsistency in its previous proceedings, decisions, orders, directions, orother actions in a manner and to such extent as it will deem advisable to carryout the purposes of the Plan.

 

11.10       RelianceUpon Legal Counsel

 

The members ofthe Committee, and Cinergy, and Cinergy’s officers and directors, will beentitled to rely upon all opinions given by legal counsel selected by theCommittee.

 

11.11       Expenses

 

In theperformance of its duties, the Committee is authorized to incur reasonableexpenses, including counsel fees.  Alloperating expenses of the Plan, including insurance premiums payable to thePension Benefit Guaranty Corporation, fees for professional services, andtechnical or clerical assistance, will be paid from the Pension Fund, to theextent not paid by the Employer. Investment expenses and any federal, state, or local taxes that may belevied against the Pension Fund will also be paid from the Pension Fund.

 

11.12       Indemnification

 

Cinergy agreesto indemnify and hold harmless each member of the Committee against any cost,expense, or liability (including any sum paid in settlement of any claim withthe approval of the Board of Directors) arising out of any act or omission toact as a member of the Committee, except only acts and omissions representingwillful misconduct, fraud, or lack of good faith.

 

11.13       Powers and Duties of Committee

 

Subject to thespecific limitations stated in this document, the Committee will have thefollowing powers, duties, and responsibilities:

 

(a)           to carry out the Plan’s generaladministration;

 

(b)           to cause to be prepared all formsnecessary or appropriate for the Plan’s administration;

 

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(c)           to keep appropriate books andrecords, including minutes of the Committee’s meetings;

 

(d)                                 todetermine, consistent with the provisions of this document, the manner in whichthe Pension Fund will be allocated and disbursed;

 

(e)                                  togive directions to the Trustee or Insurance Company as to the amounts to bedisbursed to Participants and others under the Plan’s provisions;

 

(f)                                    todetermine, with discretionary authority and consistent with the provisions ofthis document, all questions of the eligibility, rights, and status ofParticipants and others under the Plan;

 

(g)                                 toexercise all other powers and duties specifically conferred upon the Committeeelsewhere in this document and the Trust Agreement or Group Annuity Contract;

 

(h)                                 toexercise all duties and responsibilities imposed by ERISA upon the Committee asthe Plan’s administrator;

 

(i)                                     tointerpret, with discretionary authority, the provisions of the Plan and toresolve, with discretionary authority, all disputed questions of Planinterpretation and benefit eligibility;

 

(j)                                     toemploy agents to assist it in performing its administrative duties; and

 

(k)                                  toallocate and delegate its fiduciary responsibilities in accordance with ERISAsection 405.

 

The Committeewill at all times make similar decisions on similar questions involving similarcircumstances.  Subject to theprovisions of ERISA and to the provisions of Article 12 (Benefit ClaimsProcedures) relating to claims, all decisions of the Committee made in goodfaith on all matters within the scope of its authority under the provisions ofthis document will be final and binding upon all persons.

 

11.14       MattersSpecifically Excluded from Jurisdiction

 

Notwithstandingany other provision of this document, the Committee will have no power, duty,or authority with respect to determination of the amounts to be contributed bythe Employer to the Pension Fund or Trust Fund.

 

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ARTICLE 12

 

BENEFIT CLAIMSPROCEDURES

 

Claims forbenefits under the Plan will be made in writing to the Committee or itsdesignee.  If a claim for benefits iswholly or partially denied, the Committee or its designee will notify theClaimant of the claim’s denial within a reasonable period of time not to exceed90 days after the claim’s receipt, unless special circumstances require anextension of time for processing, in which case notification will be renderedas soon as possible, but not later than 180 days after the claim’sreceipt.  If an extension of time forprocessing is required, written notice of the extension will be furnished tothe Claimant prior to the termination of the initial 90 day period.  The extension notice will indicate thespecial circumstances requiring an extension of time and the date by which thePlan expects to render final notification. The notice of denial will be written in a manner calculated to beunderstood by the Claimant and will set forth (a) the specific reason orreasons for the denial, (b) a specific reference to the pertinent Planprovisions on which the denial is based, (c) a description of anyadditional material or information necessary for the Claimant to perfect theclaim and an explanation of why that material or information is necessary, and(d) appropriate information as to the steps to be taken if the Claimantwishes to submit the claim for review. The Committee or its designee is authorized to develop more fully thePlan’s benefit claims procedures by establishing from time to time, variousrules and procedures consistent with ERISA.

 

Within60 days after the Claimant’s receipt of written notice of the claim’sdenial, the Claimant, or his duly authorized representative, may file a writtenrequest with the Committee requesting a full and fair review of the denial ofthe Claimant’s claim for benefits.  Inconnection with the Claimant’s appeal of the denial of his claim for benefits,the Claimant may review pertinent documents in the Committee’s possession andmay submit issues and comments in writing. The Committee will make a decision on review promptly, but not laterthan the date of the Committee meeting that immediately follows the receipt ofthe Claimant’s request for review, unless the request for review is filedwithin 30 days before the date of that meeting.  In that case, a decision will be made as soon as possible, butnot later than the date of the second Committee meeting following receipt ofthe request for review.  If specialcircumstances require a further extension of time for processing, a decisionwill be rendered not later than the third Committee meeting following receiptof the Claimant’s request for review. If an extension of time for review is required because of specialcircumstances, written notice of the extension will be sent to the Claimant beforethe extension begins.  The extension noticewill indicate the special circumstances requiring an extension of time and thedate by which the Committee expects to render the final decision.  The decision on review will be in writingand written in a manner calculated to be understood by the Claimant, will setforth the specific reason or reasons for the decision, and will contain aspecific reference to the pertinent Plan provisions on which the decision isbased.  If the decision on review is notfurnished to the Claimant within 60 days of receipt of the request forreview, or within 120 days after its receipt if special circumstancesrequired an extension of time, the claim will be deemed denied on review.

 

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ARTICLE 13

 

FUNDING POLICYAND METHOD

 

Cinergy willestablish and carry out a funding policy and method for the Plan consistentwith (a) the Plan’s past experience, (b) the Plan’s anticipatedexperience, (c) the Plan’s objectives, (d) the requirements of ERISA,and (e) the requirements of the Code. Cinergy will (a) communicate the funding policy and method to theCommittee, (b) periodically review the funding policy and method, and(c) document all action taken with respect to the funding policy andmethod.

 

ARTICLE 14

 

MISCELLANEOUS

 

14.1         NoEnlargement of Employee Benefits

 

This Plan isstrictly a voluntary undertaking on the part of each Employer and will not bedeemed to constitute a contract between an Employer and any Employee or to beconsideration for, or an inducement to, or a condition of, the employment ofany Employee.  Nothing contained in thePlan will be deemed to give any Employee the right to be retained in theservice of an Employer or to interfere with the right of the Employer to dischargeany Employee at any time.  No Employee,prior to his retirement under conditions of eligibility for pension benefits orprior to his satisfying the Vesting Requirement will have any right to, orinterest in, any portion of any fund arising from his Employer’s contributionsunder this Plan or, in any event, other than as specifically provided in thePlan.  No person will have any right topension benefits except to the extent provided in the Plan.

 

14.2         Reemployment

 

If an EligibleEmployee who first became an Employee prior to January 1, 2003 incurs aSeverance from Service and is later reemployed by an Employer, his two (ormore) periods of employment will, subject to all of the provisions of the Plan,be aggregated for the purpose of determining his Year of Eligibility Service,his years of Participation, and his years of Service.

 

If an EligibleEmployee who first became an Employee after December 31, 2002 incurs aSeverance from Service and is later reemployed by an Employer (or Affiliate),his period of employment prior to his Severance from Service will, subject toall of the provisions of the Plan, be aggregated for the purpose of determininghis years of Service, his Years of Eligibility Service and his years ofParticipation only if the Employee either had satisfied the Vesting Requirementat his Severance from Service or if his Period of Severance is less than 60

 

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consecutivemonths.  If an Employee’s period ofemployment prior to his Severance from Service is not aggregated pursuant tothe immediately preceding sentence, the Service, Years of Eligibility Serviceand Participation shall be disregarded.

 

14.3         QualifiedMilitary Service

 

Notwithstandingany provision of this Plan to the contrary, effective December 12, 1994,contributions, benefits, and service credits with respect to qualified militaryservice will be provided in accordance with Code subsection 414(u).  For a Participant who had become a CashBalance Participant, to comply with (and not in addition to the benefits under)Code subsection 414(u), Pay Credits will be credited during theParticipant’s military leave that would qualify as qualified military serviceif the Participant would return to employment as provided in Chapter 43 ofTitle 38, United States Code.

 

14.4         Noticeof Address

 

EachParticipant, Retired Participant, Terminated Vested Participant, Beneficiary,Contingent Annuitant, and Spouse entitled to benefits under the Plan mustsubmit to the Committee or its designee his post office address and each changeof post office address.  Anycommunication, statement, or notice addressed to a person at his latest postoffice address filed with the Committee or its designee will, upon deposit inthe United States mail with postage prepaid, be binding upon that person forall purposes of the Plan, and neither the Insurance Company, the Committee, northe Trustee will be obliged to search for, or to ascertain the whereabouts of,any person.

 

14.5         Data

 

Participants,Retired Participants, Terminated Vested Participants, Beneficiaries, ContingentAnnuitants, and Spouses must furnish to the Committee, the Insurance Company,and the Trustee any documents, evidence, or information that the Committee, theInsurance Company, or the Trustee considers necessary or desirable for thepurpose of administering the Plan, or to protect the Committee, the InsuranceCompany, or Trustee; and it will be a condition of the Plan that each personmust furnish this information promptly and sign required documents before anybenefits become payable under the Plan.

 

14.6         NoIndividual Liability

 

It is theexpress purpose and intention of the Plan that, except as otherwise required bylaw, no individual liability whatever will attach to, or be incurred by, theshareholders, officers, or members of the board of directors of any Employer,or the Committee, or its members, or any fiduciary designated pursuant toSection 11.13 (Powers and Duties of Committee), or any representatives

 

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appointed byCinergy under the Plan, under or by reason of any of the terms or conditions ofthe Plan.

 

14.7         Participant’sStatement of Agreement

 

Cinergy willhave the right, at any time, to require any Participant to agree in writing tobe bound by the Plan’s provisions. However, the absence of an agreement will not relieve any Participantfrom being legally bound by the provisions of the Plan.

 

14.8         NoDiversion of Assets

 

None of theassets of the Pension Fund may be used for, or diverted to, purposes other thanthe exclusive benefit of the Participants and their Beneficiaries.  However, nothing in this Section willprohibit the return to the Employers, in accordance with the provisions ofERISA subsection 403(c), of a contribution (or a portion of acontribution) by the Employers to the Pension Fund if the contribution is(a) made by reason of mistake of fact, (b) conditioned on the initialqualification of the Plan under Code subsection 401(a), or(c) conditioned upon its deductibility under Code section 404 and thededuction is not fully allowed.

 

14.9         GoverningLaws

 

The Plan willbe construed and administered according to the internal laws of the State ofOhio to the extent that those laws are not preempted by federal law.

 

14.10       Severability

 

If any part ofthe Plan is adjudged by a court of competent jurisdiction to be contrary to thelaws governing the Plan, then the Plan will, in all other respects, be andremain legally effective and binding to the full extent permissible under thelaw.

 

14.11       Interpretationand Regulation of Plan

 

Cinergy, byaction of the Committee, reserves the right to interpret and regulate the Plan,by exercise of discretionary authority, and its interpretation and regulationwill be legally effective and binding on all parties concerned.

 

14.12       Communicationsby Participants

 

Allcommunications by Participants and other concerned parties concerning the Planwill be in writing and directed to the Committee or its designee.

 

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14.13       Headings

 

The headingsof Articles, Sections, Subsections, Paragraphs or other parts of the Plan arefor convenience of reference only and do not define, limit, construe, orotherwise affect the contents of this document.

 

14.14       AccruedBenefit Not to be Decreased by Amendment

 

Notwithstandingany other provisions of the Plan to the contrary, no accrued benefit of aParticipant under the Plan will be decreased by an amendment to the Plan, otherthan an amendment described in Code paragraph 412(c)(8) or ERISA section 4281.  For purposes of this Subsection, anamendment to the Plan that has the effect of:

 

(a)                                  eliminatingor reducing an early retirement benefit or a retirement-type subsidy (asdefined in the regulations under Code paragraph 411(d)(6)), or

 

(b)                                 eliminatingan optional form of benefit, with respect to benefits attributable to servicebefore the amendment, will be treated as reducing the accrued benefit of aParticipant.  In the case of anyretirement-type subsidy, the preceding sentence will apply only with respect toa Participant who satisfies (either before or after the amendment) thepreamendment conditions for the subsidy.

 

ARTICLE 15

 

TRUSTS ANDINSURANCE CONTRACTS

 

15.1         Trustsand Insurance Contracts

 

As part of thePlan, the Employers have established a Pension Fund.  The Pension Fund may consist of a trust, or a fund under a groupannuity contract issued by an Insurance Company, or a combination of each.  Benefits may, however, be provided throughother trusts or insurance contracts as Cinergy, in its sole discretion, mayestablish or cause to be established or entered into for the purposes ofcarrying out the Plan.  Cinergy willdetermine the form and terms of any trust and will also determine the terms andprovisions of any group annuity contract. Cinergy may also, in its sole discretion, cause any funds held by anyInsurance Company, or any Trust Fund held by any Trustee, for the purpose ofproviding benefits under the Plan, to be transferred to any other InsuranceCompany, or qualified Trustee, to be held for the same purpose.

 

15.2         Irrevocability

 

The Employerswill have no right, title, or interest in the Pension Fund or to thecontributions made under the Plan, and no part of the Pension Fund will revertto

 

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the Employers,except that upon termination of the Plan and after satisfaction or provisionfor the satisfaction of all fixed and contingent liabilities or obligations topersons entitled to benefits upon the termination, any balance remaining in thePension Fund will be distributed to the Employers.  However, nothing in this Section will prohibit the return, inaccordance with the provisions of ERISA subsection 403(c), to theEmployers of a contribution (or a portion of a contribution) by the Employersto the Pension Fund if the contribution is (a) made by reason of mistakeof fact, (b) conditioned on the initial qualification of the Plan underCode subsection 401(a), or (c) conditioned upon its deductibilityunder Code section 404 and the deduction is not fully allowed.

 

15.3         Sufficiency of Pension Fund

 

The Employerintends the Plan to be a permanent, as distinguished from a temporary,program.  Except as otherwise providedby the Code or ERISA, however, the Employer will not be under any liability tomake contributions to the Pension Fund. Benefits under the Plan are to be paid only from the Pension Fund andonly to the extent that the Pension Fund is sufficient for that purpose.  Neither Cinergy, nor any of the officers,employees, members of the Board of Directors, the Committee, or representativesof Cinergy guarantees in any manner nor, unless otherwise required by law, willbe liable for the payment of benefits under the Plan.  Except as otherwise provided by ERISA, any person having anyclaim under, or in connection with, the Plan must look solely to the PensionFund for satisfaction.

 

ARTICLE 16

 

CONTRIBUTIONS

 

Nocontributions to the Plan by Participants will be required or permitted underthe Plan.

 

During thecontinuance of the Plan and for the purpose of providing the benefitscontemplated under the Plan, the Employer intends to deposit, from time totime, with the Trustee or with the Insurance Company, sums of money, to be heldin the Pension Fund, which, together with the earnings of the Pension Fund,will be deemed sufficient to provide the benefits of the Plan and to satisfythe minimum funding standards set forth in ERISA.  All contributions by the Employer to the Pension Fund are expresslyconditioned upon deductibility under Code section 404.

 

ARTICLE 17

 

APPROVAL UNDERINTERNAL REVENUE CODE

 

The Plan asset forth in this document is intended to comply with the requirements of Codesubsection 401(a), so that the income of the Pension Fund may be exemptfrom federal

 

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income taxes and so thatcontributions of the Employers under the Plan may be deductible for federalincome tax purposes under Code section 404.  Any modification or amendment of the Plan may be made, retroactiveor otherwise, as necessary or appropriate to establish and maintain itsqualified status under the Code, or to otherwise comply with ERISA.

 

ARTICLE 18

 

TEMPORARYRESTRICTIONS ON BENEFITS

 

18.1         TemporaryRestrictions

 

(a)                                  Notwithstandingany other provisions of the Plan, the benefit of any Highly CompensatedParticipant upon the Plan’s termination will be limited to a benefit that isnondiscriminatory under Code paragraph 401(a)(4).

 

(b)                                 Uponthe Plan’s termination, annual payments of Plan benefits made on behalf of anyof the 25 highest paid Employees or former Employees of the Employer andthe Affiliates in a particular Plan Year will be restricted to an amount equalin each Plan Year to:

 

(1)                                  thepayments that would be made on behalf of the Employee under a single lifeannuity that is the Actuarial Equivalent of the accrued benefit and otherbenefits to which the Employee is entitled under the Plan (other than a socialsecurity supplement), plus

 

(2)                                  theamount of the payments that the Employee is entitled to receive under a socialsecurity supplement.

 

(c)                                  Therestrictions of Subsection (b) will not apply to payments made to anEmployee who is one of the 25 highest paid Employees or former Employeesif any one of the following requirements is satisfied:

 

(1)                                  Afterpayment to the Employee of all benefits payable to the Employee under the Plan,the value of the Plan’s assets equals or exceeds 110 percent of the valueof the Plan’s current liabilities as defined under Codeparagraph 412(l)(7).  The value ofPlan assets and the value of current liabilities for this purpose must bedetermined as of the same date;

 

(2)                                  Thevalue of the benefits payable to the Employee under the Plan is less than onepercent of the value of the Plan’s current liabilities before distribution, or

 

(3)                                  Thevalue of the benefits payable to the Employee does not exceed $5,000.

 

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ARTICLE 19

 

AMENDMENT ANDTERMINATION

 

19.1         Rightto Amend or Terminate

 

Cinergyreserves the right to modify, alter, amend, revoke or terminate the Plan and/orany Trust Fund or group annuity contract that may be established or enteredinto to effectuate and implement the Plan at any time.  The Board of Directors will generally havethe authority to adopt amendments; provided, however, that such authority maybe delegated from time to time to the Cinergy Corp. Benefits Committee orotherwise; provided further, however, that the Committee or the compensationcommittee of the Board of Directors may adopt any amendment to ensure thecontinued qualification of the Plan and Pension Fund under Codesubsections 401(a) and 501(a), to comply with the provisions of anyfederal statute or regulation impacting pension plans, to enhance the deliveryof benefits to Participants and Beneficiaries, to ease Plan administration, orto respond to the withdrawal of any Employer from the Plan.

 

The Board ofDirectors, or any person or persons duly authorized by the Board of Directors,will also have the right, authority, and power to terminate the Plan and todiscontinue or suspend the payment of contributions to provide benefits underthe Plan (except for the provision of any agreement which has been entered intobetween an Employer and a labor union representing Eligible Employees).  However, no action taken pursuant to thisSection will operate to enlarge the right of Cinergy under Section 15.2(Irrevocability).

 

19.2         Effectof Termination

 

If a partialor complete termination of the Plan occurs, all Participants with respect to whomthe Plan is being so terminated will have a Nonforfeitable right to theirbenefits accrued under the Plan up to the date of termination of the Plan tothe extent then funded.

 

Except asotherwise required by ERISA section 4044, Cinergy will direct the Trusteeand/or Insurance Company to segregate the Pension Fund, as determined byCinergy to be attributable to the group that is terminating its participationin the Plan, and to make separate allocations of the segregated assets amongthe respective persons having interests in them.  The separate allocations will be made as follows:

 

(a)           First, either:

 

(1)                                  inthe case of the pension of a Retired Participant, a Terminated VestedParticipant, a Spouse, or a Contingent Annuitant that began at least three yearsprior to the termination date of the Plan, that

 

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portion of thepension that is based on the provisions of the Plan as in effect at any timeduring the five-year period ending on the termination date, which would resultin the least amount, or

 

(2)                                  inthe case of the pension of an Active Participant, a Participant who hasincurred a Severance from Service, or either a Retired Participant or aTerminated Vested Participant not included in Paragraph (1) of thisSubsection (a) that three years prior to the termination date of the Planwould have began had the Participant then become a Retired Participant, aTerminated Vested Participant, or the Participant’s Spouse or ContingentAnnuitant, that portion of the pension that is based on the provisions of thePlan that were in effect at any time during the five-year period ending on thetermination date, which would result in the least amount;

 

(b)                                 Second,all other pensions under the Plan that are guaranteed by the Pension BenefitGuaranty Corporation;

 

(c)                                  Third,all other pensions with respect to both (1) Retired Participants,Terminated Vested Participants, Spouses, and Contingent Annuitants and(2) Active Participants and Participants who have incurred a Severancefrom Service who, as of the date of termination of the Plan, have completed theVesting Requirement of the Plan; and

 

(d)                                 Allother pensions under the Plan.

 

If the balanceof the Pension Fund allocable to the terminating group that is remaining afterallocations have been made with respect to all pensions in a preceding class orgroup is insufficient to allocate the full Actuarial Equivalent of pensions toall persons in the class or group for which it is then being applied, thebalance will be allocated to each person in the class or group in theproportion to which the Actuarial Equivalent of the pension allocable to himpursuant to the class or group bears to the total Actuarial Equivalent of thepensions so allocable to all persons in the class or group.  However, if the balance is sufficient toallocate a portion only of the full Actuarial Equivalent of the pensions setforth in Subsection (c), then the amounts of pension otherwise providedwill be redetermined based on the provisions of the Plan as in effect fiveyears prior to the termination date, or, if applicable, as of the later date aswill provide for the allocation of the full Actuarial Equivalent thereof.

 

The amounts soallocated will, subject to the rights of the Insurance Company under the GroupAnnuity Contract governing allocations of small annuities, be purchased underthe Group Annuity Contract or other group annuity contract.

 

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Any balanceremaining in the Pension Fund that is allocable to the terminating group, andafter all allocations have been made pursuant to the foregoing provisions ofthis Subsection, will be allocated to the Employers.

 

19.3         Mergerand Consolidation of Plan

 

In the case ofany merger or consolidation with, or transfer of assets and liabilities to, anyother plan, provisions will be made so that each Participant in the Plan on thedate thereof (if the Plan had then terminated) would receive a benefitimmediately after the merger, consolidation or transfer that is equal to, orgreater than, the benefit he would have been entitled to receive immediatelyprior to the merger, consolidation, or transfer if the Plan had thenterminated.

 

19.4         Post-Changein Control Merger, Consolidation, or Transfer ofPension Plan Assets or Liabilities

 

Notwithstandingthe preceding provisions of this Article or any other provision of this Plan,in the event of any merger or consolidation of this Plan with another employeebenefit plan or any transfer of assets or liabilities of this Plan to anotherplan that is effected within three years following a Change in Control,(a) the accrued benefit of each Participant who is actively employed by anEmployer as of the effective date of the merger, consolidation, or transfer ofassets or liabilities and with respect to whom liability for the payment ofbenefits under the Plan is being merged or consolidated with or transferred toanother plan will become fully vested; (b) the vested accrued benefit ofeach Participant, former Participant, and Beneficiary with respect to whom anyliability for the payment of benefits under the Plan is being merged orconsolidated with or transferred to another plan will be increased inaccordance with Section 19.6 (Post-Change in Control Surplus Reversion) asif the Plan had terminated immediately prior to any merger, consolidation, ortransfer (and for purposes of calculating the increase, the accrued benefits ofall other Participants, former Participants and their Beneficiaries will bedeemed to have increased in accordance with Section 19.6 (Post-Change inControl Surplus Reversion)); and (c) prior to consummation of any merger,consolidation, or transfer, the accrued benefit (as increased, if applicable)of each Participant, former Participant, and Beneficiary with respect to whomliability for the payment of benefits under the Plan is being merged orconsolidated with or transferred to another plan will be satisfied by thepurchase of a guaranteed annuity contract from a financially sound insurancecompany that represents an irrevocable commitment to satisfy the accruedbenefit (as increased, if applicable) of the person.  Notwithstanding the provisions of Section 19.1 (Right toAmend or Terminate), the provisions of this Section may not be amended by an amendmentto the Plan effective within three years following a Change in Control.

 

19.5         GeneralProtection of Benefits in the Event of a Change inControl

 

Notwithstandingany other provisions of this Plan, for a period of three years following aChange in Control, the provisions of this Plan may not be amended in

 

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any mannerthat would adversely affect in any way the computation or amount of or theentitlement to retirement benefits under the Plan, including, but not limitedto, any adverse change in or to (a) the rate at which benefits accrue orvest, (b) the compensation recognized under the Plan, or (c) theoptional forms of payment available to a Participant or Beneficiary under thePlan, including the time of commencement of benefits and any actuarial factorsutilized.  Notwithstanding theprovisions of Section 19.1 (Right to Amend or Terminate), the provisionsof this Section may not be amended by an amendment effective within three yearsfollowing a Change in Control.

 

19.6         Post-Changein Control Surplus Reversion

 

Notwithstandingthe preceding provisions of this Article or any other provision of the Plan, inthe event this Plan is terminated within three years following a Change inControl, the assets of the Plan will be applied in accordance with thepreceding provisions of this Article to satisfy all liabilities toParticipants, former Participants, and their Beneficiaries.  If, after satisfaction of the liabilities,there are assets remaining in the Plan, the balance will be applied on a prorata basis based upon final vested benefit to increase the benefits of theParticipants, former Participants, and their Beneficiaries, subject however, tothe applicable legal limitations on benefits payable from tax qualifiedplans.  Notwithstanding the provisionsof Section 19.1 (Right to Amend or Terminate), the provisions of thisSection may not be amended by an amendment to the Plan effected within threeyears following a Change in Control.

 

ARTICLE 20

 

AUTHORIZEDTRANSACTION

 

                Cinergywill have the right, authority, and power to transfer some or all of the assetsof the Plan, including contributions and earnings, to a pooled investment fundof an insurance company qualified to do business in one or more states of theUnited States, even though that insurance company might otherwise be a “partyin interest,” as that term is defined in ERISA; provided, the insurance companyreceives not more than reasonable compensation with respect to the transaction

 

ARTICLE 21

 

PARTICIPATIONBY OTHER EMPLOYERS

 

 

21.1         Adoption of Plan

 

With Cinergy’sconsent, any Affiliate may become a participating Employer under the Plan by(a) taking appropriate action to adopt the Plan, (b) filing withCinergy a duly certified copy of the Plan as adopted by the Affiliate,(c) becoming a party

 

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to the trustagreement establishing the Trust Fund, and (d) executing and deliveringdocuments and taking any other action as may be necessary or desirable to putthe Plan into effect with respect to it.

 

21.2         Withdrawalfrom Participation

 

Any Employermay, with Cinergy’s consent, withdraw from participation in the Plan at anytime by filing with Cinergy a duly certified copy of a resolution of its boardof directors to that effect and giving notice of its intended withdrawal toCinergy, the Trustee, and Insurance Company prior to the effective date ofwithdrawal.  If an Employer withdrawsfrom the Plan, Cinergy will determine the portion of the Pension Fund held bythe Trustee or Insurance Company that is applicable to the Participants andformer Participants of the withdrawing Employer and direct the Trustee andInsurance Company to segregate its portion in a separate trust.  The separate trust will be held andadministered as a part of the separate plan of the withdrawn Employer.  The portion of the Pension Fund applicableto the Participants and former Participants of a particular Employer will bethe sum of:

 

(a)                                  thetotal amount of the accrued benefits applicable to the Participants and formerParticipants of the withdrawing Employer, and

 

(b)                                 anamount that bears the same ratio to the excess, if any, of:

 

(1)                                  thetotal of the Pension Fund over

 

(2)                                  thetotal amount of the accrued benefits applicable to the Participants and formerParticipants of the withdrawing Employer bears to the total amount of theaccrued benefits applicable to all Participants and former Participants.

 

Notwithstandingthe preceding sentence, if the total amount of the present value of the accruedbenefits applicable to the Participants and former Participants of thewithdrawing Employer (when combined with the value of any other assetssegregated during that Plan Year) is less than three percent of the total ofthe Pension Fund as of at least one day in the Plan Year during which thewithdrawal occurs, the portion of the Pension Fund applicable to theParticipants and former Participants of the withdrawing Employer will be equalto the present value of those Participants’ accrued benefits.

 

21.3         Cinergyas Agent for Employers

 

Each Affiliatethat becomes a participating Employer pursuant to Section 21.1 (Adoptionof Plan) or Article 22 (Continuance by a Successor) by so doing will bedeemed to have appointed Cinergy its agent to exercise on its behalf all of thepowers and authorities conferred upon Cinergy by the terms of the Plan,

 

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including, butnot limited to the power to amend and terminate the Plan.  Cinergy’s authority to act as agent willcontinue unless and until the portion of the Pension Fund held for the benefitof Employees of the particular Employer and their Beneficiaries is set aside ina separate trust as provided in Section 21.2 (Withdrawal from Participation).  Each Employer will, from time to time, uponCinergy’s request, furnish to Cinergy any data and information as Cinergyrequires in the performance of its duties.

 

ARTICLE 22

 

CONTINUANCE BYA SUCCESSOR

 

If Cinergy orany other Employer is reorganized by way of merger, consolidation, transfer ofassets, or otherwise, so that a corporation, partnership, or person other thanan Employer succeeds to all or substantially all of the Employer’s business,the successor may be substituted for the Employer under the Plan by adoptingthe Plan and becoming a party to the trust agreement.  Contributions by the Employer will be automatically suspendedfrom the effective date of any reorganization until the date upon which thesubstitution of the successor corporation for the Employer under the Planbecomes effective.  If, within90 days following the effective date of any reorganization, the successordoes not elect to become a party to the Plan, or if the Employer adopts a planof complete liquidation other than in connection with a reorganization, thePlan will be automatically terminated with respect to employees of the Employeras of the close of business on the 90th day following the effective date ofreorganization or as of the close of business on the date of adoption of a planof complete liquidation, as the case may be, and Cinergy will direct theTrustee to distribute the portion of the Trust Fund applicable to that Employerin the manner provided in Section 21.2 (Withdrawal from Participation).

 

ARTICLE 23

 

PROVISIONSRELATING TO TOP-HEAVY PLAN

 

23.1         Constructionof this Section

 

This Articlewill be construed in accordance with Code section 416.

 

23.2         Top-HeavyDetermination

 

For each PlanYear, the Committee will determine whether the Plan is a Top-Heavy Plan or aSuper Top-Heavy Plan.

 

(a)                                  ThePlan constitutes a “Top-Heavy Plan” for any Plan Year in which, as of theDetermination Date, (1) the Present Value of Accrued Benefits of KeyEmployees or (2) the sum of the Present Value of Accrued Benefits of KeyEmployees under the Plan and the Aggregate Accounts of Key Employees under anyQualified Defined Contribution Plan of an Aggregation Group, exceeds60 percent of the Present Value of Accrued Benefits or the Present

 

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Value ofAccrued Benefits under the Plan and the Aggregate Accounts of all Participantsunder any Qualified Defined Contribution Plan of an Aggregation Group.

 

If anyParticipant is a non-Key Employee for any Plan Year, but the Participant was aKey Employee for any prior Plan Year, the Participant’s Present Value ofAccrued Benefits and/or Aggregate Account Balance will not be taken intoaccount for purposes of determining whether this Plan is a Top-Heavy Plan (orwhether any Aggregation Group that includes this Plan is a Top-Heavy Group)

 

(b)                                 ThePlan constitutes a “Super Top-Heavy Plan” for any Plan Year in which, as of theDetermination Date, (1) the Present Value of Accrued Benefits of KeyEmployees or (2) the sum of the Present Value of Accrued Benefits of KeyEmployees under the Plan and the Aggregate Accounts of Key Employees under anyQualified Defined Contribution Plan of an Aggregation Group, exceeds90 percent of the Present Value of Accrued Benefits or the Present Valueof Accrued Benefits under the Plan and the Aggregate Accounts of allParticipants under any Qualified Defined Contribution Plan of an AggregationGroup.

 

(c)                                  Top-HeavyGroup means an Aggregation Group in which, as of the Determination Date, thesum of:

 

(1)                                  thePresent Value of Accrued Benefits of Key Employees under all Qualified DefinedBenefit Plans included in the group, and

 

(2)                                  theAggregate Accounts of Key Employees under Qualified Defined Contribution Plansincluded in the group,

 

exceeds 60 percent of a similar sum determined for allParticipants.

 

(d)                                 Inthe case of a Permissive Aggregation Group, only a plan that is part of theRequired Aggregation Group will be considered a Top-Heavy Plan if thePermissive Aggregation Group is a Top-Heavy Group.  No plan in the Permissive Aggregation Group will be considered aTop-Heavy Plan if the Permissive Aggregation Group is not a Top-Heavy Group.

 

(e)                                  Inthe case of a Required Aggregation Group, each plan in the group will beconsidered a Top-Heavy Plan if the Required Aggregation Group is a Top-HeavyGroup.

 

23.3         Effectsof a Top-Heavy Determinations

 

If, for anyPlan Year, the Committee determines that the Plan is a Top-Heavy Plan or aSuper Top-Heavy Plan, the effect of that determination on the VestingRequirement and on the benefits payable under the Plan are described in

 

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Section 5.1(b)(Vesting Requirement) and Section 4.7 (Benefits if Plan Becomes aTop-Heavy Plan), respectively.

 

Terms thatrelate to this Article are defined in the Plan in the following sections:

 
| Defined Term  Section               |   | Section |
|-------------------------------------|--------|---------|
|                                |   |    |
| Aggregate  Account                  |   | 1.8     |
| Defined  Benefit Plan Fraction      |   | 1.29    |
| Defined  Contribution Plan Fraction |   | 1.30    |
| Determination  Date                 |   | 1.32    |
| Final  Average Earnings             |   | 1.49    |
| Present  Value of Accrued Benefits  |   | 1.82    |
| Super  Top-Heavy Plan               |   | 1.105   |
| Top-Heavy  Group                    |   | 1.108   |
| Top-Heavy  Plan                     |   | 1.109   |
| Top-Heavy  Plan Year                |   | 1.110   |
| Valuation  Date                     |   | 1.113   |

 

ARTICLE 24

 

MERGER WITHTHE MRP

 

24.1         Acceptanceof Assets and Liabilities of MRP Trust

 

As soon as practicableafter January 1, 1998 (but not before 30 days after the requirednotification has been filed with the Internal Revenue Service), the Trusteewill accept a transfer from the trustee or funding agent of the MRP of all ofthe assets and liabilities of the trust or insurance or annuity contractsthrough which the MRP is funded.

 

24.2         Participationof MRP Participants

 

Eachindividual who was a participant in the MRP as of December 31, 1997, willremain a Participant in the Plan on January 1, 1998.  Each participant or former participant inthe MRP who as of the date of the transfer referred to in Section 24.1(the “Transfer Date”) is receiving benefits under the MRP or has retired orincurred a severance from service with CG&E and has a right to receivefuture benefits under the MRP will be entitled to receive benefits under thePlan as of the Transfer Date.  Abeneficiary entitled to benefits under the MRP as of the Transfer Date willbecome entitled to benefits under the restated Plan as of that date.  The Annual Pension of a Participantdescribed in this Section will at no time be less than the Participant’saccrued benefit under the MRP as of the Transfer Date.

 

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ARTICLE 25

 

SPIN OFF OFPSI PLAN

 

25.1         Acceptanceof Assets and Liabilities of PSI Plan Trust

 

OnDecember 31, 1997, the assets and liabilities attributable to ExemptEmployees and Non-Exempt Employees who were participants in the PSI Plan as ofthat date were spun off from the PSI Plan. As soon as practicable after January 1, 1998 (but not before30 days after the required notification has been filed with the InternalRevenue Service), the Trustee will accept a transfer from the trustee orfunding agent of that spun-off portion of the PSI Plan of all of the assets andliabilities of the trust or insurance or annuity contracts through which thespun-off portion of the PSI Plan is funded.

 

25.2         Participationof PSI Plan Participants

 

Each ExemptEmployee or Non-Exempt Employee who was a participant in the PSI Plan as ofDecember 31, 1997 became a participant in this Plan on January 1,1998.  Each participant or formerparticipant in the PSI Plan who as of the date of the transfer referred to inSection 25.1 (the “PSI Transfer Date”) is receiving benefits under the PSIPlan or has retired or incurred a severance from service with PSI and has aright to receive future benefits under the PSI Plan will become a Participantas of the PSI Transfer Date.  A beneficiaryentitled to benefits under the PSI Plan as of the PSI Transfer Date willinstead become entitled to benefits under this Plan as of that date.  The Annual Pension of a Participantdescribed in this Section will at no time be less than the Participant’saccrued benefit under the PSI Plan as of the PSI Transfer Date.

 

ARTICLE 26

 

MRP, RIP, PSI PLAN RETIREE INCREASE

 

26.1         Eligible Recipient:Benefit Increase

 

(a)                                  NotwithstandingArticle 2 of the Plan, effective January 1, 2002, the Benefit Amountof each Eligible Recipient that is otherwise payable from the Plan on or afterJanuary 1, 2002 shall be increased by an amount equal to the product ofthe Eligible Recipient’s Applicable Percentage, as determined underSection 26.2, multiplied by his Benefit Amount.

 

(b)                                 NotwithstandingSection 26.1(a), the increase for each Eligible Recipient shall beat least $50 per month.

 

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26.2         Applicable Percentage

 

(a)                                  Pre-1981Eligible Recipients:

 
| **Eligible Recipient**                                                                     |   | **Applicable  Percentage** |   |
|--------------------------------------------------------------------------------------------|--------|----------------------------|--------|
| A Retiree whose Actual Separation Date  occurred before January 1, 1981.              |   | 20                         | %      |
| A Contingent Annuitant or Spouse (if any)  of the foregoing Retiree (if deceased).         |   | 20                         | %      |
| A Preretirement Spouse of any Retiree who  died on or before December 1, 1980.        |   | 20                         | %      |
| A Disabled Participant whose Actual  Separation Date occurred before January 1, 1981. |   | 20                         | %      |

 

(b)                                 1981-1988Eligible Recipients:

 
| **Eligible Recipient**                                                                                                           |   | **Applicable  Percentage** |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|
| A Retiree whose Actual Separation Date  occurred on or after January 1, 1981 and before January 1, 1989.               |   | 10                         | %      |
| A Contingent Annuitant or Spouse (if any)  of the foregoing Retiree (if deceased).                                               |   | 10                         | %      |
| A Preretirement Spouse of any Retiree who  died after December 1, 1980 and on or before December 1, 1988.              |   | 10                         | %      |
| A Disabled Participant whose Actual  Separation Date occurred on or after January 1, 1981 and before  January 1, 1989. |   | 10                         | %      |

 

(c)                                  1989-1993Eligible Recipients:

 
| **Eligible Recipient**                                                                                                           |   | **Applicable  Percentage** |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|
| A Retiree whose Actual Separation Date  occurred on or after January 1, 1989 and before January 1, 1994.               |   | 5                          | %      |
| A Contingent Annuitant or Spouse (if any)  of the foregoing Retiree (if deceased).                                               |   | 5                          | %      |
| A Preretirement Spouse of any Retiree who  died after December 1, 1988 and before December 1, 1993.                    |   | 5                          | %      |
| A Disabled Participant whose Actual  Separation Date occurred on or after January 1, 1989 and before  January 1, 1994. |   | 5                          | %      |

 

26.3         Definitions

 

Terms used inthis Article 26 with initial capital letters shall have the meaningsindicated in the Plan or below, whichever is applicable:

 

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(a)                                  “BenefitAmount” means, subject to paragraph (3) below, the applicable amount inparagraph (1) or (2) below:

 

(1)                                  Theamount of the monthly benefit actually being paid to the Eligible Recipientfrom the Plan as of January 1, 2002, in whatever annuity or other ongoingpayment form, as the same may have been increased by any amendment to the MRP,RIP or PSI Plan.

 

(2)                                  Inall other cases, the amount of the monthly benefit that is first payable to theEligible Recipient after January 1, 2002, as the same may have beenincreased by any amendment to the MRP, RIP or PSI Plan.

 

(3)                                  TheBenefit Amount of an Eligible Recipient shall in no event include any temporarysupplemental benefit, including but not limited to any supplemental benefitpayable pursuant to (i) Article 15 of the MRP (as amended andrestated effective as of January 1, 1990) or (ii) Article 15 ofthe RIP (as amended and restated effective as of January 1, 1987).

 

(b)                                 “DisabledParticipant” means a Retiree whose separation date occurred while he wasreceiving disability benefits under an LTD Plan.

 

(c)                                  “EligibleRecipient” means each individual listed in Section 26.2.

 

(d)                                 “LTDPlan” means a long-term disability benefits plan maintained by an Employer orits Affiliates.

 

(e)                                  “PreretirementSpouse” means a Spouse (1) of a Retiree who died prior to the commencementof his retirement benefit and (2) who qualified for the spousalpreretirement death benefit under the MRP, RIP or PSI Plan, as applicable.

 

(f)                                    “Retiree”means a participant of the MRP, RIP or PSI Plan, as applicable, whose ActualSeparation Date occurred on or after his Early Retirement Date (as such term isdefined in the MRP, RIP or PSI Plan), provided, however, that the term“Retiree” shall not include any participant who received benefits under aspecial early retirement window program (including but not limited to theSpecial Retirement Option under the PSI Plan, the 1989 Voluntary Work ForceReduction Plan, the 1992 Voluntary Early Retirement Program or the 1992Involuntary Reduction in Force).  In theevent that a participant of the MRP, RIP or PSI Plan, as applicable, had morethan one Actual Separation Date, for purposes of this Article 26 theparticipant’s first Actual Separation Date that occurs on or after his EarlyRetirement Date (as such term is defined in the MRP, RIP or PSI Plan) shall bethe relevant Actual Separation Date.

 

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26.4         Code Section415 Limits

 

NotwithstandingSection 26.1, the amount thereunder shall be subject to the limitations ofSection 4.6 (Maximum Pension).

 

26.5         Miscellaneous

 

(a)                                  Nobenefit amount shall be increased more than one time pursuant to the provisionsof this Article 26.

 

(b)                                 Theincrease in Section 26.1 shall not be guaranteed by the Group AnnuityContract.

 

(c)                                  Noalternate payee under a Qualified Domestic Relations Order shall be entitled toan increase pursuant to the provisions of this Article 26 unless suchQualified Domestic Relations Order specifically requires such increase, inwhich case the alternate payee’s Applicable Percentage, if any, shall be thesame as his or her former spouse’s Applicable Percentage, which shall bedetermined under Section 26.2 of the Plan.

 

Cinergy Corp.has caused this document to be executed by its duly authorized officer.

 
|   | By:    |                 |   |
|--------|--------|----------------------|--------|
|   |   | Timothy J.  Verhagen |
|   |   | Vice  President      |
|   |   | Human  Resources     |
|   |   |                 |
|   |   | Date:12/20/02        |

 

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CINERGY CORP. NON-UNION EMPLOYEES’ PENSIONPLAN

(As Amended And Restated Effective January 1,2003)

 

ADDENDUM

EGTRRA and 401(a)(9) MODEL PROVISIONS

 

PREAMBLE

 

1.             Adoption and effective date of Addendum.  This Addendum of the Plan is adopted toreflect certain provisions of the Economic Growth and Tax Relief ReconciliationAct of 2001 (“EGTRRA”).  This Addendumis intended as good faith compliance with the requirements of EGTRRA and is tobe construed in accordance with EGTRRA and guidance issued thereunder.  Except as otherwise provided, this Addendumshall be effective as of the first day of the first Plan Year beginning afterDecember 31, 2001.

 

2.             Supersession of inconsistent provisions.  This Addendum shall supersede the provisionsof the Plan to the extent those provisions are inconsistent with the provisionsof this Addendum.

 

SECTION 1.  LIMITATIONS ON BENEFITS.

 

1.             Effective date. This section shall be effective for limitation years ending afterDecember 31, 2001.

 

2.             Effect on participants.  Benefit increases resulting from the increase in the limitationsof Code subsection 415(b) will be provided to all employees participatingin the Plan who have one hour of service on or after the first day of the firstlimitation year ending after December 31, 2001.

 

3.             Definitions.

 

3.1           Defined benefit dollar limitation.  The “defined benefit dollar limitation” is$160,000, as adjusted, effective January 1 of each year, under Codesubsection 415(d) in such manner as the Secretary shall prescribe, andpayable in the form of a straight life annuity.  A limitation as adjusted under Code subsection 415(d) willapply to limitation years ending with or within the calendar year for which theadjustment applies.

 

3.2           Maximum permissible benefit:  The “maximum permissible benefit” is thelesser of the defined benefit dollar limitation or the defined benefitcompensation limitation (both adjusted where required in (a) and, ifapplicable, in (b) or (c) below).

 

(a)           If the participant has fewer than10 years of participation in the Plan, the defined benefit dollarlimitation shall be multiplied by a fraction, (i) the numerator of whichis the number of years (or part thereof) of participation in the Plan and(ii) the denominator of which is 10. In the case of a participant who has fewer than 10 years of servicewith the employer, the defined benefit compensation limitation shall bemultiplied by a fraction, (i) the numerator of which is the number ofyears (or part thereof) of service with the employer and (ii) thedenominator of which is 10.

 

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(b)           If the benefit of a participantbegins prior to age 62, the defined benefit dollar limitation applicableto the participant at such earlier age is an annual benefit payable in the formof a straight life annuity beginning at the earlier age that is the actuarialequivalent of the defined benefit dollar limitation applicable to theparticipant at age 62 (adjusted under (a) above, if required).  The defined benefit dollar limitationapplicable at an age prior to age 62 is determined as the lesser of (i) theactuarial equivalent (at such age) of the defined benefit dollar limitationcomputed using the interest rate and mortality table (or other tabular factor)specified in the Plan for equivalence of early retirement benefits and(ii) the actuarial equivalent (at such age) of the defined benefit dollarlimitation computed using a 5 percent interest rate and the applicablemortality table under Code subsection 417(e) as prescribed from time to time bythe Secretary of the Treasury (for distributions with Annuity Starting Datesafter December 30, 2002 the mortality table prescribed in RevenueRuling 2001–62).  Anydecrease in the defined benefit dollar limitation determined in accordance withthis paragraph (b) shall not reflect a mortality decrement if benefits arenot forfeited upon the death of the participant.  If any benefits are forfeited upon death, the full mortalitydecrement is taken into account.

 

(c)           If the benefit of a participantbegins after the participant attains age 65, the defined benefit dollarlimitation applicable to the participant at the later age is the annual benefitpayable in the form of a straight life annuity beginning at the later age thatis actuarially equivalent to the defined benefit dollar limitation applicableto the participant at age 65 (adjusted under (a) above, if required).  The actuarial equivalent of the definedbenefit dollar limitation applicable at an age after age 65 is determinedas (i) the lesser of the actuarial equivalent (at such age) of the definedbenefit dollar limitation computed using the interest rate and mortality table(or other tabular factor) specified in the Plan for equivalence of delayedretirement benefits and (ii) the actuarial equivalent (at such age) of thedefined benefit dollar limitation computed using a 5 percent interest rateassumption and the applicable mortality table under Code subsection 417(e) asprescribed from time to time by the Secretary of the Treasury (fordistributions with Annuity Starting Dates after December 30, 2002 the mortalitytable prescribed in Revenue Ruling 2001–62).  For these purposes, mortality betweenage 65 and the age at which benefits commence shall be ignored.

 

SECTION 2.  INCREASE IN COMPENSATION LIMIT

 

1.             Increase in limit.  The annual compensation of each participant taken into account indetermining benefit accruals in any Plan Year beginning after December 31,2001, shall not exceed $200,000.  Annualcompensation means compensation during the Plan Year or such other consecutive12-month period over which compensation is otherwise determined under the Plan(the determination period).  Forpurposes of determining benefit accruals in a Plan Year beginning afterDecember 31, 2001, the annual compensation limit for determination periodsbeginning before January 1, 2002, shall be $200,000.

 

2.             Cost-of-living adjustment.  The $200,000 limit on annual compensation inparagraph 1 shall be adjusted for cost-of-living increases in accordancewith Code subparagraph 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies toannual compensation for the determination period that begins with or withinsuch calendar year.

 

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SECTION 3.  MODIFICATION OF TOP-HEAVY RULES

 

1.             Effective date. This section shall apply for purposes of determining whether the Plan isa top-heavy plan under Code subsection 416(g) for Plan Years beginningafter December 31, 2001, and whether the Plan satisfies the minimumbenefits requirements of Code subsection 416(c) for such years.  This section amends Article 23 of thePlan.

 

2.             Determination of top-heavy status.

 

2.1           Key employee. Key employee means any employee or former employee (including anydeceased employee) who at any time during the Plan Year that includes the determinationdate was an officer of the employer having annual compensation greater than$130,000 (as adjusted under Code paragraph 416(i)(1) for Plan Yearsbeginning after December 31, 2002), a 5–percent owner of theemployer, or a 1–percent owner of the employer having annual compensationof more than $150,000.  For thispurpose, annual compensation means compensation within the meaning of Codeparagraph 415(c)(3).  The determinationof who is a key employee will be made in accordance with Code paragraph 416(i)(1)and the applicable regulations and other guidance of general applicabilityissued thereunder.

 

2.2           Determination of present values and amounts.  This Section 2.2 shall apply forpurposes of determining the present values of accrued benefits and the amountsof account balances of employees as of the determination date.

 

2.2.1        Distributions during year ending on the determination date.  The present values of accrued benefits andthe amounts of account balances of an employee as of the determination dateshall be increased by the distributions made with respect to the employee underthe Plan and any plan aggregated with the Plan under Codeparagraph 416(g)(2) during the 1–year period ending on thedetermination date.  The precedingsentence shall also apply to distributions under a terminated plan which, hadit not been terminated, would have been aggregated with the Plan under Codeclause 416(g)(2)(A)(i).  In thecase of a distribution made for a reason other than separation from service,death, or disability, this provision shall be applied by substituting “5–yearperiod” for “1–year period.”

 

2.2.2        Employees not performing services during year ending onthe determination date.  The accruedbenefits and accounts of any individual who has not performed services for theemployer during the 1–year period ending on the determination date shallnot be taken into account.

 

3.             Minimum benefits.  For purposes of satisfying the minimum benefit requirements ofCode paragraph 416(c)(1) and the Plan, in determining years of servicewith the employer, any service with the employer shall be disregarded to theextent that such service occurs during a Plan Year when the Plan benefits(within the meaning of Code subsection 410(b)) no key employee or formerkey employee.

 

SECTION 4.  DIRECT ROLLOVERS OF PLAN DISTRIBUTIONS

 

1.             Effective date. This section shall apply to distributions made after December 31,2001.

 

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2.             Modification of definition of eligible retirementplan.  For purposes of the directrollover provisions in Section 8.7 of the Plan, an eligible retirementplan shall also mean an annuity contract described in Codesubsection 403(b) and an eligible plan under Code subsection 457(b)which is maintained by a state, political subdivision of a state, or any agencyor instrumentality of a state or political subdivision of a state and whichagrees to separately account for amounts transferred into such plan from thisPlan.  The definition of eligibleretirement plan shall also apply in the case of a distribution to a survivingspouse, or to a spouse or former spouse who is the alternate payee under aqualified domestic relation order, as defined in Code subsection 414(p).

 

3.             Modification of definition of eligible rolloverdistribution to include after-tax employee contributions.  For purposes of the direct rolloverprovisions in Section 8.7 of the Plan, a portion of a distribution shallnot fail to be an eligible rollover distribution merely because the portionconsists of after-tax employee contributions which are not includible in grossincome.  However, such portion may bepaid only to an individual retirement account or annuity described in Codesubsections 408(a) or (b), or to a qualified defined contribution plandescribed in Code subsections 401(a) or 403(a) that agrees to separatelyaccount for amounts so transferred, including separately accounting for theportion of such distribution which is includible in gross income and theportion of such distribution which is not so includible.

 

SECTION 5.           MINIMUM DISTRIBUTION REQUIREMENTS

 

1.             General Rules.

 

1.1           Effective Date. The provisions of this Section will apply for purposes of determiningrequired minimum distributions for calendar years beginning with the 2003 calendaryear.

 

1.2           Precedence. The requirements of this Section will take precedence over anyinconsistent provisions of the plan.

 

1.3           Requirements of Treasury Regulations Incorporated.  All distributions required under thisSection will be determined and made in accordance with the Treasury regulationsunder Code paragraph 401(a)(9).

 

1.4           TEFRA Section 242(b)(2) Elections.  Notwithstanding the other provisions of thisarticle, other than Subsection 1.3, distributions may be made under adesignation made before January 1, 1984, in accordance withsection 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA)and the provisions of the plan that relate to section 242(b)(2) of TEFRA.

 

2.             Time and Manner of Distribution.

 

2.1           Required Beginning Date.  The participant’s entire interest will be distributed, or beginto be distributed, to the participant no later than the participant’s requiredbeginning date.

 

2.2           Death of Participant Before Distributions Begin.  If the participant dies before distributionsbegin, the participant’s entire interest will be distributed, or begin to bedistributed, no later than as follows:

 

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(a)           If the participant’s surviving spouseis the participant’s sole designated beneficiary, then distributions to thesurviving spouse will begin by December 31 of the calendar yearimmediately following the calendar year in which the participant died, or byDecember 31 of the calendar year in which the participant would haveattained age 70 1/2, if later.

 

(b)           If the participant’s surviving spouseis not the participant’s sole designated beneficiary, then distributions to thedesignated beneficiary will begin by December 31 of the calendar yearimmediately following the calendar year in which the participant died.

 

(c)           If there is no designated beneficiaryas of September 30 of the year following the year of the participant’sdeath, the participant’s entire interest will be distributed byDecember 31 of the calendar year containing the fifth anniversary of theparticipant’s death.

 

(d)           If the participant’s surviving spouseis the participant’s sole designated beneficiary and the surviving spouse diesafter the participant but before distributions to the surviving spouse begin,this Subsection 2.2, other than Subsection 2.2(a), will apply as ifthe surviving spouse were the participant.

 

For purposes of thisSubsection 2.2 and Subsection 5, distributions are considered tobegin on the participant’s required beginning date (or, if Subsection 2.2(d)applies, the date distributions are required to begin to the surviving spouseunder Subsection 2.2(a)).  Ifannuity payments irrevocably commence to the participant before theparticipant’s required beginning date (or to the participant’s surviving spousebefore the date distributions are required to begin to the surviving spouseunder Subsection 2.2(a)), the date distributions are considered to beginis the date distributions actually commence.

 

2.3           Form of Distribution.  Unless the participant’s interest is distributed in the form ofan annuity purchased from an insurance company or in a single sum on or beforethe required beginning date, as of the first distribution calendar yeardistributions will be made in accordance with Subsections 3, 4 and 5.  If the participant’s interest is distributedin the form of an annuity purchased from an insurance company, distributionsthereunder will be made in accordance with the requirements of Codeparagraph 401(a)(9) and the Treasury regulations.  Any part of the participant’s interest whichis in the form of an individual account described in Codesubsection 414(k) will be distributed in a manner satisfying therequirements of Code paragraph 401(a)(9) of the Code and the Treasuryregulations that apply to individual accounts.

 

3.             Determination of Amount to be Distributed Each Year.

 

3.1           General Annuity Requirements.  If the participant’s interest is paid in theform of annuity distributions under the plan, payments under the annuity willsatisfy the following requirements:

 

(a)           the annuity distributions will bepaid in periodic payments made at intervals not longer than one year;

 

(b)           the distribution period will be overa life (or lives) or over a period certain not longer than the period describedin Subsection 4 or 5;

 

5

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(c)           once payments have begun over aperiod certain, the period certain will not be changed even if the periodcertain is shorter than the maximum permitted;

 

(d)           payments will either be nonincreasingor increase only as follows:

 

(1)           by an annualpercentage increase that does not exceed the annual percentage increase in acost-of-living index that is based on prices of all items and issued by theBureau of Labor Statistics;

 

(2)           to the extent of thereduction in the amount of the participant’s payments to provide for a survivorbenefit upon death, but only if the beneficiary whose life was being used todetermine the distribution period described in Subsection 4 dies or is nolonger the participant’s beneficiary pursuant to a qualified domestic relationsorder within the meaning of Code subsection 414(p);

 

(3)           to provide cashrefunds of employee contributions upon the participant’s death; or

 

(4)           to pay increasedbenefits that result from a plan amendment.

 

3.2           Amount Required to be Distributed by Required BeginningDate.  The amount that must bedistributed on or before the participant’s required beginning date (or, if theparticipant dies before distributions begin, the date distributions are requiredto begin under Subsection 2.2(a) or (b)) is the payment that is requiredfor one payment interval.  The secondpayment need not be made until the end of the next payment interval even ifthat payment interval ends in the next calendar year.  Payment intervals are the periods for which payments arereceived, e.g., bi–monthly, monthly, semi-annually, or annually.  All of the participant’s benefit accruals asof the last day of the first distribution calendar year will be included in thecalculation of the amount of the annuity payments for payment intervals endingon or after the participant’s required beginning date.

 

3.3           Additional Accruals After First Distribution CalendarYear.  Any additional benefitsaccruing to the participant in a calendar year after the first distributioncalendar year will be distributed beginning with the first payment intervalending in the calendar year immediately following the calendar year in whichsuch amount accrues.

 

4.             Requirements For Annuity Distributions That CommenceDuring Participant’s Lifetime.

 

4.1           Joint Life Annuities Where the Beneficiary Is Not theParticipant’s Spouse.  If theparticipant’s interest is being distributed in the form of a joint and survivorannuity for the joint lives of the participant and a nonspouse beneficiary,annuity payments to be made on or after the participant’s required beginningdate to the designated beneficiary after the participant’s death must not atany time exceed the applicable percentage of the annuity payment for such periodthat would have been payable to the participant using the table set forth inQ&A-2 of section 1.401(a)(9)-6T of the Treasury regulations.  If the form of distribution combines a jointand survivor annuity for the joint lives of the participant and a nonspousebeneficiary and a period certain annuity, the requirement in the precedingsentence will apply to annuity payments to be made to the designatedbeneficiary after the expiration of the period certain.

 

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4.2           Period Certain Annuities.  Unless the participant’s spouse is the sole designatedbeneficiary and the form of distribution is a period certain and no lifeannuity, the period certain for an annuity distribution commencing during theparticipant’s lifetime may not exceed the applicable distribution period forthe participant under the Uniform Lifetime Table set forth insection 1.401(a)(9)–9 of the Treasury regulations for the calendaryear that contains the annuity starting date. If the annuity starting date precedes the year in which the participantreaches age 70, the applicable distribution period for the participant isthe distribution period for age 70 under the Uniform Lifetime Table setforth in section 1.401(a)(9)–9 of the Treasury regulations plus theexcess of 70 over the age of the participant as of the participant’s birthdayin the year that contains the annuity starting date.  If the participant’s spouse is the participant’s sole designatedbeneficiary and the form of distribution is a period certain and no lifeannuity, the period certain may not exceed the longer of the participant’sapplicable distribution period, as determined under this section 4.2, orthe joint life and last survivor expectancy of the participant and the participant’sspouse as determined under the Joint and Last Survivor Table set forth insection 1.401(a)(9)–9 of the Treasury regulations, using theparticipant’s and spouse’s attained ages as of the participant’s and spouse’sbirthdays in the calendar year that contains the annuity starting date.

 

5.             Requirements For Minimum Distributions WhereParticipant Dies Before Date Distributions Begin.

 

5.1           Participant Survived by Designated Beneficiary.  If the participant dies before the datedistribution of his or her interest begins and there is a designatedbeneficiary, the participant’s entire interest will be distributed, beginningno later than the time described in Subsection 2.2(a) or (b), over thelife of the designated beneficiary or over a period certain not exceeding:

 

 

(a)           unless the annuity starting date isbefore the first distribution calendar year, the life expectancy of thedesignated beneficiary using the beneficiary’s age as of the beneficiary’sbirthday in the calendar year immediately following the calendar year of theparticipant’s death; or

 

(b)           if the annuity starting date isbefore the first distribution calendar year, the life expectancy of thedesignated beneficiary using the beneficiary’s age as of the beneficiary’sbirthday in the calendar year that contains the annuity starting date.

 

5.2           No Designated Beneficiary.  If the participant dies before the datedistributions begin and there is no designated beneficiary as ofSeptember 30 of the year following the year of the participant’s death,distribution of the participant’s entire interest will be completed byDecember 31 of the calendar year containing the fifth anniversary of theparticipant’s death.

 

5.3           Death of Surviving Spouse Before Distributions toSurviving Spouse Begin.  If theparticipant dies before the date distribution of his or her interest begins,the participant’s surviving spouse is the participant’s sole designatedbeneficiary, and the surviving spouse dies before distributions to thesurviving spouse begin, this section 5 will apply as if the survivingspouse were the participant, except that the time by which distributions mustbegin will be determined without regard to Subsection 2.2(a).

 

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6.             Definitions.

 

6.1           Designated beneficiary.  The individual who is designated as the beneficiary under Section1.16 of the Plan and is the designated beneficiary under Codeparagraph 401(a)(9) and section 1.401(a)(9)–1, Q&A–4,of the Treasury regulations.

 

6.2           Distribution calendar year.  A calendar year for which a minimumdistribution is required.  Fordistributions beginning before the participant’s death, the first distributioncalendar year is the calendar year immediately preceding the calendar yearwhich contains the participant’s required beginning date.  For distributions beginning after theparticipant’s death, the first distribution calendar year is the calendar yearin which distributions are required to begin pursuant to Subsection 2.2.

 

6.3           Life expectancy. Life expectancy as computed by use of the Single Life Table insection 1.401(a)(9)–9 of the Treasury regulations.

6.4           Required beginning date.  The date specified in Section 8.6 (Required Payment ofBenefits) of the Plan.

 

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**ADDENDUM A**

 

Cinergy Corp. Non-Union Employees’

Pension Plan

 

I.              PSI PENSION FORMULAS

 

The fiveremaining basic pension formulas used to determine benefits under the PSI Planare as follows:

 

A.            PSI Normal Retirement PensionFormula 1

 

The AnnualPension computed under PSI Pension Formula 1 equals(1) 1.1 percent of the Participant’s PSI Highest Average Earnings,plus (2) 0.5 percent of the amount by which his PSI Highest AverageEarnings exceed his applicable PSI Covered Compensation, multiplied by thenumber of his Years of Participation accrued as of December 31, 1997, upto a maximum of 35.

 

B.            PSI Normal Retirement PensionFormula 2

 

The AnnualPension computed under PSI Pension Formula 2 equals the excess of:

 

(1)                                  1-2/3 percentof the Participant’s PSI Highest Average Earnings, multiplied by the number ofhis Years of Participation not in excess of 30; over

 

(2)                                  1-2/3 percentof the Participant’s Annual Primary Social Security Amount that he is expectedto be entitled to receive either at his Normal Retirement Date or at hisDisability Date if his disability continues to his Normal Retirement Date, inany event multiplied by the number of his Years of Participation not in excessof 30.

 

C.            PSI Normal Retirement PensionFormula 3

 

The AnnualPension computed under PSI Pension Formula 3 equals the excess of:

 

(1)                                  2 percentof the Participant’s PSI Highest Average Earnings, multiplied by the number ofhis Years of Participation not in excess of 25, over

 

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(2)                                  2 percentof the Participant’s Annual Primary Social Security Amount that he is expectedto be entitled to receive either upon the attainment of age 62 on theassumption that he receives no “wages” or “remuneration,” as defined in theSocial Security Act, between December 31, 1989 (December 31, 1988,for a Highly Compensated Participant), and his attainment of age 62, or ifhe is still employed by his Employer on or after his attainment of age 62,as of the earlier of December 31, 1989 (December 31, 1988, for aHighly Compensated Participant), or his Normal Retirement Date, or at hisDisability Date if his disability continues up until the date otherwisedetermined under this Paragraph (2), in any event multiplied by the numberof his Years of Participation not in excess of 25.

 

D.            PSI Terminated Vested PensionFormula 5

 

The AnnualPension computed under PSI Pension Formula 5 equals the excess of:

 

(1)                                  2 percentof the Participant’s PSI Highest Average Earnings, multiplied by the number ofhis Years of Participation not in excess of 25, over

 

(2)                                  afraction, the numerator of which is his actual Years of Participation and thedenominator of which is the Years of Participation he would have accumulated athis Normal Retirement Date if during each year after December 31, 1989(December 31, 1988, for a Highly Compensated Participant), he hadcompleted at least 2,000 Hours of Service, of 50 percent of theParticipant’s Annual Primary Social Security Amount that he is entitled toreceive upon the attainment of age 60 on the assumption that his rate ofEarnings as of December 31, 1989 (December 31, 1988, for a HighlyCompensated Participant), had continued unchanged until age 60.

 

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E.             PSI Terminated Vested PensionFormula 6

 

The AnnualPension computed under PSI Pension Formula 6 equals the excess of:

 

(1)                                  1-2/3 percentof the Participant’s PSI Highest Average Earnings, multiplied by the number ofhis Years of Participation not in excess of 30; over

 

(2)                                  afraction, the numerator of which is his actual Years of Participation and thedenominator of which is the Years of Participation he would have accumulated athis Normal Retirement Date if during each year after December 31, 1989(December 31, 1988, for a Highly Compensated Participant), he hadcompleted at least 2,000 Hours of Service, of 50 percent of theParticipant’s Annual Primary Social Security Amount that he is entitled toreceive upon the attainment of age 60 on the assumption that his rate of Earningsas of December 31, 1989 (December 31, 1988, for a Highly CompensatedParticipant), had continued unchanged until age 60.

 

II.            General Method of Computing Accrued Benefit Under thePSI Plan for Normal Retirement

 

(a)                                  Subjectto the following provisions of this Section, the amount of the accrued benefitunder the PSI Plan as of December 31, 1997, of a Participant who was aparticipant in the PSI Plan as of December 31, 1997, will be computedunder PSI Pension Formula 1.

 

(b)                                 Notwithstandingany other provisions of this Section, the accrued benefit under the PSI Plan asof December 31, 1997, of a Participant who became a participant in the PSIPlan prior to May 1, 1970, will not be less than the amount computed underPSI Pension Formula 3 as of the following date:

 

(1)                                  December 31,1989, with respect to an Employee who is not a Highly Compensated Participant;or

 

(2)                                  December 31,1988, with respect to a Highly Compensated Participant.

 

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(c)                                  Notwithstandingany other provisions of this Section, the accrued benefit under the PSI Plan asof December 31, 1997, of a Participant who became a participant in the PSIPlan on or after May 1, 1970, will not be less than the amount computedunder PSI Pension Formula 2 as of the following date:

 

(1)                                  December 31,1989, with respect to an Employee who is not a Highly Compensated Participant;or

 

(2)                                  December 31,1988, with respect to a Highly Compensated Participant.

 

III.           PSI Definitions

 

Thecapitalized terms will have the meanings set forth in the Plan.  In addition, the following words and phraseshave the meanings set forth in this Addendum:

 

(a)                                  “AnnualPrimary Social Security Amount” means, with respect to a Participant, theannual amount available under the provisions of Title II of the SocialSecurity Act as in effect on December 31, 1989 (December 31, 1988,for a Highly Compensated Participant), determined without regard to anyincreases in benefit levels, wage base increases, or changes in the types ofbenefits that take effect after that date, but including any recomputation inbenefits due solely to the Participant’s “wages” and “remuneration,” as definedin the Social Security Act, in calendar year 1989 or 1988, whichever isapplicable.

 

(b)                                 “DisabilityDate” means, with respect to a Participant who participated in the PSI Plan,the date the Participant is determined to be totally disabled by reason of aparticular disability under PSI’s Long Term Disability Plan, as amended fromtime to time.

 

(c)                                  “NineMonths of Elapsed Time Service” means, with respect to a Participant whoparticipated in the PSI Plan, the nine consecutive month period commencing onhis Employment Commencement Date, provided that the Employee does not in thatperiod incur

 

4

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a Severancefrom Service that is part of a Break in Service; or, the nine consecutive monthperiod commencing on the Employee’s Reemployment Commencement Date (orsuccessive Reemployment Commencement Dates), provided that the Employee doesnot in that period incur a Severance from Service that is part of a Break inService.  If the Employee does not incura Severance from Service during the applicable nine consecutive month period,then the Employee shall be deemed to have completed Nine Months of Elapsed TimeService as of the last day of the nine consecutive month period.

 

(d)                                 “NormalRetirement Date” means, with respect to each Participant who participated inthe PSI Plan, the first day of the calendar month coincident with or following(a) his 65th birthday, or (b) the fifth anniversary date of hisemployment, whichever is later.

 

(e)                                  “ParticipationCommencement Date” means, with respect to an Employee who was a participant inthe PSI Plan prior to January 1, 1989, the date the Employee became aparticipant under the PSI Plan’s terms as they existed prior to January 1,1990, and with respect to an Employee who was not a participant in the PSI Planprior to January 1, 1989, the later of (a) January 1, 1989, or(b) the first day of the calendar month coincident with or following thedate the Employee first completes Nine Months of Elapsed Time Service and hasattained his 21st birthday; provided that on the later date he isclassified by his Employer as an Employee. If an Employee has completed Nine Months of Elapsed Time Service and hasattained his 21st birthday, but is not classified by his Employer as anEmployee on the later date, his “Participation Commencement Date” shall be thefirst day of the calendar month coincident with or following the first dayafter the later date on which he is classified by his Employer as an Employee.

 

(f)                                    “PSICovered Compensation” means, with respect to a Participant who participated inthe PSI Plan as of December 31, 1997, the average (without indexing) ofthe annual Social Security taxable wage bases under the Social Security Act foreach year during the 35 calendar years ending with the last day of the calendaryear in which the Participant attains his Social Security Retirement Age, butno later than December 31, 1997.

 

(g)                                 “PSIHighest Average Earnings” means, with respect to a Participant who participatedin the PSI Plan as of December 31, 1997, the Participant’s highest averageannual Earnings for any three consecutive calendar years out of the Participant’s10 or fewer years of participation under the PSI Plan ending on

 

5

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December 31,1997.  If Earnings for any Plan Yearbeginning before January 1, 1994 are taken into account in determining aParticipant’s PSI Highest Average Earnings, the Earnings for that Plan Yearwill be subject to the limitation of Code paragraph 401(a)(17) that was ineffect for that Plan Year and the Participant’s Nonforfeitable Annual Pensionwill not be less than the Participant’s accrued benefit under the PSI Plan asof December 31, 1993.

 

(h)                                 “Yearsof Participation” means, with respect to each Participant who participated inthe PSI Plan as of December 31, 1997, the sum of the following whole andfractional years:

 

(1)                                  withrespect to the period prior to January 1, 1976, the number of years (tothe last completed 1/12th year) of his “participating service” (as definedin the PSI Plan as in effect on December 31, 1975, except that the lastsentence of Section 1.6 of the PSI Plan will not apply) as ofJanuary 1, 1976; plus

 

(2)                                  withrespect to each Plan Year of his participation in the PSI Plan on or afterJanuary 1, 1976, and before January 1, 1998 (excluding the Plan Yearsin which his Participation Commencement Date and his Reemployment CommencementDate, if applicable, occur, to the extent one or both of those dates are on orafter January 1, 1976), one Year of Participation if he completes at least2,000 Hours of Service during that Plan Year; otherwise, a fraction of aYear of Participation, the numerator of which is the number of Hours of Servicewhich he completes during a Plan Year and the denominator of which is 2,000;provided, however, that if he completes less than 1,000 Hours of Serviceduring a Plan Year, no portion of a Year of Participation will be granted; plus

 

(3)                                  withrespect to the Plan Years during which his Participation Commencement Dateand/or his Reemployment Commencement Date, if applicable, occur, to the extentone or both of the dates occur on or after January 1, 1976, and beforeJanuary 1, 1998, either one Year of Participation, or, if the month andday of his

 

6

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ParticipationCommencement Date or Reemployment Commencement Date within the Plan Year is afterJanuary 1, a fraction thereof, the numerator of which is the number ofcomplete calendar months in that Plan Year during which he is a participant inthe PSI Plan and the denominator of which is 12.  However, if the number of Hours of Service that he completes as aparticipant in the PSI Plan during the respective Plan Year is less than theproduct of 166-2/3 multiplied by the number of complete calendar months duringwhich he is a participant in the PSI Plan in the Plan Year, then the Year ofParticipation, or fraction thereof, as otherwise determined pursuant to thisParagraph (c), will be multiplied by the ratio of the number of Hours ofService that he completes as a participant in the PSI Plan during the Plan Yearto 166-2/3 multiplied by the number of complete calendar months during which heis a participant in the PSI Plan in the Plan Year.  If the number of Hours of Service that he completes as a PSI Planparticipant during the Plan Year is less than the product of 83-1/3 multipliedby the number of complete calendar months during which he is a PSI Planparticipant in the Plan Year, no portion of a Year of Participation shall begranted.

 

With respectto any Plan Year wholly or partially included in a calendar year used tocalculate the Participant’s PSI Plan Highest Average Earnings, if the PSI Planparticipant fails to complete at least 2,000 Hours of Service during thatPlan Year, then, in lieu of any fraction of a Year of Participation asotherwise determined under either Paragraph (b) or Paragraph (c), thePSI Plan participant will be granted a fraction of a Year ofParticipation:  the numerator of whichis equal to the sum of the number of Hours of Service which the PSI Planparticipant completes as a PSI Plan participant during those calendar months ofthe Plan Year that are not included in that calendar year, and the greater of(A) the number of Hours of Service that the PSI Plan participant completesduring those calendar months of the Plan Year that are included in suchcalendar year or (B) the product of 166-2/3 multiplied by the number ofcalendar months of the Plan Year that are included in the calendar year; andthe denominator of which is 2,000.  APSI Plan participant’s Years of Participation will be adjusted, if necessary,pursuant to Section 4.5

 

7

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(SpecialAdjustments) or Section 4.8 (Benefits Adjustment for Participants Coveredby Certain Programs) of the PSI Plan.

 

8

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**ADDENDUM B**

 

Cinergy Corp. Non-Union Employees’ Pension Plan

 

I.              MRP Normal Retirement Formula

 

AParticipant’s annual accrued benefit computed under the MRP Normal RetirementFormula as of December 31, 1997, equals 1.3 percent of theParticipant’s MRP Final Average Compensation, plus .35 percent of MRPFinal Average Compensation in excess of MRP Covered Compensation multipliedtimes the Participant’s Years of Accredited Service to and including30 years; plus .1 percent of the Participant’s MRP Final AverageCompensation times the Participant’s Years of Accredited Service in excess of30 years.

 

II.            RIP Normal Retirement Formula

 

AParticipant’s annual accrued benefit computed under the RIP Normal RetirementFormula as of December 31, 1997, equals 57 percent of the Participant’sRIP Final Average Compensation reduced by one-half of his or her Primary SocialSecurity Benefit.  If the Participanthas less than 30 Years of Accredited Service as of December 31, 1997, theamount will be further reduced by 1/30 for each full year less than 30years.  If the Participant has more than30 Years of Accredited Service as of December 31, 1997, the amountwill be increased by $6.00 for each Year of Accredited Service over30 years.

 

III.           MRP and RIP Definitions

 

For purposesof the MRP and RIP formulas, the capitalized terms will have the meanings setforth in the Plan.  In addition, thefollowing words and phrases will have the meanings set forth in this Addendum:

 

(a)                                  “CG&EService” means, with respect to an Employee, the period of time during whichthe employment relationship exists between the Employee and CG&E on orbefore December 31, 1997, the length of which is determined as follows:

 

(1)                                  AnEmployee will be credited with CG&E Service for the period of timebeginning with his Employment Commencement Date and ending on December 31,1997.

 

1

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(2)                                  AnEmployee will be credited with CG&E Service for each Period of CreditedSeverance occurring on or before December 31, 1997.

 

(3)                                  AnEmployee will be credited with CG&E Service for any period of service witha related company (as determined under Code subsections 414(b), (c), and(m)), which will be determined as if he had been employed by CG&E duringthat period.

 

(4)                                  Indetermining an Employee’s total CG&E Service for purposes of the MRP orRIP, all periods of CG&E Service that are credited to the Employee underParagraphs (1) through (3) above will be aggregated.  In no event will an Employee receive creditmore than once for the same period of CG&E Service.  For purposes of determining an Employee’stotal CG&E Service, the Employee will be credited with one month ofCG&E Service for each month during which he is credited with at least oneHour of Service.  Those total months ofCG&E Service will then be rounded up to the next highest number of wholecalendar years.

 

(b)                                 “DCIP”means The Cincinnati Gas & Electric Company Deferred Compensation andInvestment Plan.

 

(c)                                  “MRPCovered Compensation” means, with respect to a Participant who was a participantin the MRP as of December 31, 1997, the average (without indexing) of theannual Social Security taxable wage bases under the Social Security Act foreach year during the 35 calendar years ending with the last day of the calendaryear in which the Participant attains his Social Security Retirement Age, butno later than December 31, 1997.

 

(d)                                 “MRPFinal Average Compensation” means, with respect to a Participant who was aparticipant in the MRP as of December 31, 1997, the average of the five consecutivecalendar years of compensation as defined in (1) below, that produce thehighest average within the 10 calendar years ending on December 31,1997.

 

(1)                                  Forpurposes of this definition, “compensation” means the annual rate of base paydetermined on July 1 of each year prior to 1998.  For these purposes, base pay is the wage or salary assigned toeach specific job title

 

2

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orposition.  Base pay does not includeovertime, bonuses, severance, or any other special pay.  Base pay, however, shall include deferredcompensation contributions (as that term is defined under the DCIP and SIP) andwill also include any other elective contribution made by CG&E to a plancovered by Code section 125, which contribution is not included in thegross income of the MRP participant.  Ifcompensation for any Plan Year beginning before January 1, 1994, is taken intoaccount in determining an MRP participant’s MRP Final Average Compensation, thecompensation for that Plan Year will be subject to the limitation of Codeparagraph 401(a)(17) that was in effect for that year and theParticipant’s Nonforfeitable Annual Pension will not be less than theParticipant’s accrued benefit under the MRP as of December 31, 1993.

 

(2)                                  Forpurposes of this definition, an MRP participant’s base pay will be converted toan annual rate of compensation using the formula appropriate to the MRPparticipant’s base pay, as follows:

 

(A)                              Semi-monthlyrate.  The annual compensation foran MRP participant paid on a semi-monthly basis is 24 times the participant’sJuly 1 semi-monthly base pay.

 

(B)                                Monthlyrate.  The annual compensation foran MRP participant paid on a monthly basis is 12 times the participant’sJuly 1 monthly base pay.

 

(C)                                Hourlyrate.  The annual compensation foran MRP participant paid on an hourly basis is 2,080 times the participant’sJuly 1 hourly base pay.

 

(D)                               Weeklyrate.  The annual compensation foran MRP participant paid on a weekly basis is 52 times the participant’s weeklybase pay.

 

(3)                                  Thecompensation of an MRP participant who has no salary or wage rate onJuly 1 of a calendar year because he is on an unpaid leave of absence ortemporary suspension will be calculated using his latest rate of pay prior to

 

3

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July 1 ofthat year, if the MRP participant returns to active employment before hisSeverance from Service Date.  If the MRPparticipant is on unpaid leave or suspension on July 1 of a year, and theparticipant does not return to active employment before his Severance fromService Date, his compensation for that calendar year will be zero.

 

(e)                                  “PrimarySocial Security Benefit” means the primary federal old age insurance benefitestimated by the Committee that is, or would be, payable to an RIP participantat age 65 based on the federal Social Security Act in effect onDecember 31, 1997.

 

The PrimarySocial Security Benefit of an RIP participant who had not attained age 65 byDecember 31, 1997, will be determined by assuming that he continued toreceive compensation after December 31, 1997, at the rate of compensationin effect immediately prior to that, to age 55, and zero compensation from age55 thereafter until age 65.

 

If an RIPparticipant was hired after 1950, he will be provided with written notice ofhis right to supply actual pre-employment earnings history, or the financialconsequences of failing to supply such history, and that the RIP participantcan obtain his actual earnings history on a year-by-year basis from the SocialSecurity administration.

 

If an RIPparticipant whose pre-CG&E employment earnings history was estimatedsupplies documentation from the Social Security administration of his actualyear-by-year earnings history, the RIP participant’s Primary Social SecurityBenefit that previously was estimated will be recalculated using actualpre-CG&E employment earnings.  Suchdocumentation must be supplied no later than 6 months following the later of:

 

(1)                                  thedate of the RIP participant’s termination of employment (by retirement orotherwise), or

 

(2)                                  thedate that the RIP participant is notified of the benefit to which he isentitled.

 

4

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(f)                                    “RIPFinal Average Compensation” means, with respect to a Participant who was aparticipant in the RIP as of December 31, 1997, the average of the fourconsecutive calendar years of compensation, as defined in (1) below, thatproduce the highest average within the 10 calendar years ending onDecember 31, 1997.

 

(1)                                  Forpurposes of this definition, “compensation” means the annual rate of base paydetermined on July 1 of each year prior to 1998.  For these purposes, base pay is the wage or salary assigned toeach specific job title or position. Base pay does not include overtime, bonuses, severance, or any otherspecial pay.  Base pay, however, willinclude deferred compensation contributions (as that term is defined under theDCIP and SIP) and will also include any other elective contribution made byCG&E to a plan covered by Code section 125, which contribution is notincluded in the gross income of the RIP participant.  If compensation for any Plan Year beginning before January 1,1994, is taken into account in determining an RIP Participant’s RIP FinalAverage Compensation, the compensation for that Plan Year will be subject tothe limitation of Code paragraph 401(a)(17) that was in effect for that yearand the Participant’s Nonforfeitable Annual Pension will not be less than theParticipant’s accrued benefit under the RIP as of December 31, 1993.

 

(2)                                  Forpurposes of this definition, an RIP participant’s base pay will be converted toan annual rate of compensation using the formula appropriate to theparticipant’s base pay, as follows:

 

(A)                              Semi-monthlyrate.  The annual compensation foran RIP participant paid on a semi-monthly basis is 24 times the participant’sJuly 1 semi-monthly base pay.

 

(B)                                Monthlyrate.  The annual compensation foran RIP participant paid on a monthly basis is 12 times the participant’sJuly 1 monthly base pay.

 

5

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(C)                                Hourlyrate.  The annual compensation foran RIP participant paid on an hourly basis is 2,080 times the participant’sJuly 1 hourly base pay.

 

(D)                               Weeklyrate.  The annual compensation foran RIP participant paid on a weekly basis is 52 times the participant’s weeklybase pay.

 

(3)                                  Thecompensation of an RIP participant who has no salary or wage rate onJuly 1 of a calendar year because he is on an unpaid leave of absence ortemporary suspension will be calculated using his latest rate of pay prior toJuly 1 of that year, if the RIP participant returns to active employmentbefore his Severance from Service Date. If the RIP participant is on unpaid leave or suspension on July 1of a year, and the participant does not return to active employment before hisSeverance from Service Date, his compensation for that calendar year will bezero.

 

(g)                                 “SIP”means The Cincinnati Gas & Electric Company Savings Incentive Plan.

 

(h)                                 “Yearsof Accredited Service” means the number of years equal to the length of theEmployee’s CG&E Service on or before December 31, 1997, during whichthe Employee is treated as a participant in the MRP or RIP.  The calculation of an Employee’s Years ofAccredited Service will begin on the first day of the month during which theEmployee became eligible to participate in the MRP or the RIP.

 

6

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**ADDENDUM C**

 

MRP/RIP 100% Spousal and Contingent Annuitant Benefit

 
| **Number Of  Full Years  The Spouse Or  Contingent Annuitant  as Born  After The Participant** |   | **Factor** |   | **Number Of Full Years  The Spouse Or  Contingent Annuitant  Was Born  After The Participant** |   | **Factor** |   |
|------------------------------------------------------------------------------------------------|--------|------------|--------|------------------------------------------------------------------------------------------------|--------|------------|--------|
| 0                                                                                              |   | .911       |   | 20                                                                                             |   | .861       |   |
| 1                                                                                              |   | .908       |   | 21                                                                                             |   | .859       |   |
| 2                                                                                              |   | .905       |   | 22                                                                                             |   | .858       |   |
| 3                                                                                              |   | .902       |   | 23                                                                                             |   | .856       |   |
| 4                                                                                              |   | .899       |   | 24                                                                                             |   | .855       |   |
| 5                                                                                              |   | .896       |   | 25                                                                                             |   | .853       |   |
| 6                                                                                              |   | .893       |   | 26                                                                                             |   | .852       |   |
| 7                                                                                              |   | .890       |   | 27                                                                                             |   | .851       |   |
| 8                                                                                              |   | .887       |   | 28                                                                                             |   | .850       |   |
| 9                                                                                              |   | .885       |   | 29                                                                                             |   | .849       |   |
| 10                                                                                             |   | .882       |   | 30                                                                                             |   | .848       |   |
| 11                                                                                             |   | .880       |   | 31                                                                                             |   | .847       |   |
| 12                                                                                             |   | .877       |   | 32                                                                                             |   | .846       |   |
| 13                                                                                             |   | .875       |   | 33                                                                                             |   | .845       |   |
| 14                                                                                             |   | .872       |   | 34                                                                                             |   | .844       |   |
| 15                                                                                             |   | .870       |   | 35                                                                                             |   | .844       |   |
| 16                                                                                             |   | .868       |   | 36                                                                                             |   | .843       |   |
| 17                                                                                             |   | .866       |   | 37                                                                                             |   | .842       |   |
| 18                                                                                             |   | .864       |   | 28                                                                                             |   | .842       |   |
| 19                                                                                             |   | 863        |   | 39                                                                                             |   | .841       |   |
|                                                                                           |   |       |   | 40                                                                                             |   | .841       |   |

 

1

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| **Number Of  Full Years  The Spouse Or  Contingent Annuitant  Was Born Before  The Primary Annuitant** |   | **Factor** |   | **Number Of Full Years  The Spouse Or  Contingent Annuitant  Was Born Before  The Primary Annuitant** |   | **Factor** |   |
|--------------------------------------------------------------------------------------------------------|--------|------------|--------|-------------------------------------------------------------------------------------------------------|--------|------------|--------|
| 0                                                                                                      |   | .911       |   | 20                                                                                                    |   | .973       |   |
| 1                                                                                                      |   | .915       |   | 21                                                                                                    |   | .975       |   |
| 2                                                                                                      |   | .918       |   | 22                                                                                                    |   | .977       |   |
| 3                                                                                                      |   | .922       |   | 23                                                                                                    |   | .979       |   |
| 4                                                                                                      |   | .925       |   | 24                                                                                                    |   | .981       |   |
| 5                                                                                                      |   | .928       |   | 25                                                                                                    |   | .982       |   |
| 6                                                                                                      |   | .932       |   | 26                                                                                                    |   | .984       |   |
| 7                                                                                                      |   | .935       |   | 27                                                                                                    |   | .985       |   |
| 8                                                                                                      |   | .939       |   | 28                                                                                                    |   | .986       |   |
| 9                                                                                                      |   | .942       |   | 29                                                                                                    |   | .987       |   |
| 10                                                                                                     |   | .945       |   | 30                                                                                                    |   | .988       |   |
| 11                                                                                                     |   | .949       |   |                                                                                                  |   |       |   |
| 12                                                                                                     |   | .952       |   |                                                                                                  |   |       |   |
| 13                                                                                                     |   | .955       |   |                                                                                                  |   |       |   |
| 14                                                                                                     |   | .958       |   |                                                                                                  |   |       |   |
| 15                                                                                                     |   | .961       |   |                                                                                                  |   |       |   |
| 16                                                                                                     |   | .963       |   |                                                                                                  |   |       |   |
| 17                                                                                                     |   | .966       |   |                                                                                                  |   |       |   |
| 18                                                                                                     |   | .968       |   |                                                                                                  |   |       |   |
| 19                                                                                                     |   | .971       |   |                                                                                                  |   |       |   |

 
| Morality:  |   | 1971  TPF&C Forecast Mortality Table (Employee rate based on 85% male;  Contingent Annuitant rate based on 85% female) |
|------------|--------|----------------------------------------------------------------------------------------------------------------------------|
| Interest:  |   | 7.5%                                                                                                                       |
| Subsidy:   |   | Factors  include a 50% subsidy provided by the Company                                                                     |
| Effective: |   | January 1,  1984                                                                                                           |

 

2

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Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **25** |   | **26** |   | **27** |   | **28** |   | **29** |   | **30** |   | **31** |   | **32** |   | **33** |   | **34** |   | **35** |   | **36** |   | **37** |   | **38** |   | **39** |   | **40** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|--------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |   |
| 20                                                 |   | .985   |   | .984   |   | .982   |   | .981   |   | .979   |   | .978   |   | .976   |   | .974   |   | .972   |   | .970   |   | .967   |   | .965   |   | .962   |   | .959   |   | .956   |   | .952   |   | 20                                                  |   |
| 21                                                 |   | .985   |   | .984   |   | .983   |   | .981   |   | .980   |   | .978   |   | .976   |   | .974   |   | .972   |   | .970   |   | .968   |   | .965   |   | .962   |   | .959   |   | .956   |   | .952   |   | 21                                                  |   |
| 22                                                 |   | .985   |   | .984   |   | .983   |   | .982   |   | .980   |   | .979   |   | .977   |   | .975   |   | .973   |   | .971   |   | .968   |   | .966   |   | .963   |   | .960   |   | .957   |   | .953   |   | 22                                                  |   |
| 23                                                 |   | .986   |   | .985   |   | .983   |   | .982   |   | .981   |   | .979   |   | .977   |   | .975   |   | .973   |   | .971   |   | .969   |   | .966   |   | .964   |   | .961   |   | .958   |   | .954   |   | 23                                                  |   |
| 24                                                 |   | .986   |   | .985   |   | .984   |   | .982   |   | .981   |   | .979   |   | .978   |   | .976   |   | .974   |   | .972   |   | .969   |   | .967   |   | .964   |   | .961   |   | .958   |   | .954   |   | 24                                                  |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |   |
| 25                                                 |   | .987   |   | .985   |   | .984   |   | .983   |   | .981   |   | .980   |   | .978   |   | .976   |   | .974   |   | .972   |   | .970   |   | .968   |   | .965   |   | .962   |   | .959   |   | .955   |   | 25                                                  |   |
| 26                                                 |   | .987   |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .979   |   | .977   |   | .975   |   | .973   |   | .971   |   | .968   |   | .966   |   | .963   |   | .960   |   | .955   |   | 26                                                  |   |
| 27                                                 |   | .987   |   | .986   |   | .985   |   | .984   |   | .982   |   | .981   |   | .979   |   | .977   |   | .976   |   | .974   |   | .971   |   | .969   |   | .966   |   | .963   |   | .960   |   | .956   |   | 27                                                  |   |
| 28                                                 |   | .988   |   | .987   |   | .985   |   | .984   |   | .983   |   | .981   |   | .980   |   | .978   |   | .976   |   | .974   |   | .972   |   | .970   |   | .967   |   | .964   |   | .961   |   | .957   |   | 28                                                  |   |
| 29                                                 |   | .988   |   | .987   |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .979   |   | .977   |   | .975   |   | .973   |   | .970   |   | .968   |   | .965   |   | .962   |   | .957   |   | 29                                                  |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |   |
| 30                                                 |   | .988   |   | .987   |   | .986   |   | .985   |   | .984   |   | .982   |   | .981   |   | .979   |   | .977   |   | .975   |   | .973   |   | .971   |   | .968   |   | .966   |   | .963   |   | .958   |   | 30                                                  |   |
| 31                                                 |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | .980   |   | .978   |   | .976   |   | .974   |   | .972   |   | .969   |   | .967   |   | .964   |   | .959   |   | 31                                                  |   |
| 32                                                 |   | .989   |   | .988   |   | .987   |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .979   |   | .977   |   | .975   |   | .972   |   | .970   |   | .967   |   | .965   |   | .960   |   | 32                                                  |   |
| 33                                                 |   | .989   |   | .989   |   | .988   |   | .986   |   | .985   |   | .984   |   | .983   |   | .981   |   | .979   |   | .977   |   | .975   |   | .973   |   | .971   |   | .968   |   | .965   |   | .960   |   | 33                                                  |   |
| 34                                                 |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .982   |   | .980   |   | .978   |   | .976   |   | .974   |   | .972   |   | .969   |   | .966   |   | .961   |   | 34                                                  |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |   |
| 35                                                 |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .985   |   | .984   |   | .982   |   | .981   |   | .979   |   | .977   |   | .975   |   | .972   |   | .970   |   | .967   |   | .962   |   | 35                                                  |   |
| 36                                                 |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | .983   |   | .981   |   | .979   |   | .978   |   | .976   |   | .973   |   | .971   |   | .968   |   | .963   |   | 36                                                  |   |
| 37                                                 |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .978   |   | .976   |   | .974   |   | .972   |   | .969   |   | .964   |   | 37                                                  |   |
| 38                                                 |   | .991   |   | .990   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | .982   |   | .981   |   | .979   |   | .977   |   | .975   |   | .973   |   | .970   |   | .965   |   | 38                                                  |   |
| 39                                                 |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .978   |   | .976   |   | .974   |   | .971   |   | .966   |   | 39                                                  |   |

 

1

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **25** |   | **26** |   | **27** |   | **28** |   | **29** |   | **30** |   | **31** |   | **32** |   | **33** |   | **34** |   | **35** |   | **36** |   | **37** |   | **38** |   | **39** |   | **40** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|--------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |   |
| 40                                                 |   | .992   |   | .991   |   | .990   |   | .990   |   | .989   |   | .988   |   | .986   |   | .985   |   | .984   |   | .982   |   | .981   |   | .979   |   | .977   |   | .974   |   | .972   |   | .967   |   | 40                                                  |   |
| 41                                                 |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | .979   |   | .978   |   | .975   |   | .973   |   | .968   |   | 41                                                  |   |
| 42                                                 |   | .993   |   | .992   |   | .991   |   | .990   |   | .990   |   | .989   |   | .987   |   | .986   |   | .985   |   | .984   |   | .982   |   | .980   |   | .978   |   | .976   |   | .974   |   | .968   |   | 42                                                  |   |
| 43                                                 |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | .979   |   | .977   |   | .975   |   | .969   |   | 43                                                  |   |
| 44                                                 |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .990   |   | .989   |   | .987   |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .978   |   | .976   |   | .970   |   | 44                                                  |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |   |
| 45                                                 |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | .979   |   | .977   |   | .971   |   | 45                                                  |   |
| 46                                                 |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .990   |   | .989   |   | .987   |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .978   |   | .972   |   | 46                                                  |   |
| 47                                                 |   | .994   |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | .979   |   | .973   |   | 47                                                  |   |
| 48                                                 |   | .994   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .991   |   | .990   |   | .989   |   | .987   |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .974   |   | 48                                                  |   |
| 49                                                 |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | .975   |   | 49                                                  |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |   |
| 50                                                 |   | .995   |   | .994   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .991   |   | .990   |   | .989   |   | .988   |   | .986   |   | .985   |   | .983   |   | .982   |   | .976   |   | 50                                                  |   |
| 51                                                 |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .977   |   | 51                                                  |   |
| 52                                                 |   | .995   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .986   |   | .985   |   | .983   |   | .978   |   | 52                                                  |   |
| 53                                                 |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .979   |   | 53                                                  |   |
| 54                                                 |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .986   |   | .985   |   | .980   |   | 54                                                  |   |
|                                               |   | 25     |   | 26     |   | 27     |   | 28     |   | 29     |   | 30     |   | 31     |   | 32     |   | 33     |   | 34     |   | 35     |   | 36     |   | 37     |   | 38     |   | 39     |   | 40     |   |                                                |   |

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| Mortality:      |   | 1971 TPF&C  Forecast Mortality Table (Pensioner rate based on 85% male; Beneficiary rate  based on 85% female) |
|-----------------|--------|--------------------------------------------------------------------------------------------------------------------|
| Interest  Rate: |   | 7.5%                                                                                                               |
| Effective:      |   | January 1,  1984                                                                                              |
| Prepared by:    |   | Towers  Perrin                                                                                                     |

 

2

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **25** |   | **26** |   | **27** |   | **28** |   | **29** |   | **30** |   | **31** |   | **32** |   | **33** |   | **34** |   | **35** |   | **36** |   | **37** |   | **38** |   | **39** |   | **40** |   | **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                               |
| 55                                                 |   | .996   |   | .996   |   | .995   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .991   |   | .991   |   | .990   |   | .988   |   | .987   |   | .986   |   | .981   |   | 55                                                 |
| 56                                                 |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .982   |   | 56                                                 |
| 57                                                 |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .987   |   | .983   |   | 57                                                 |
| 58                                                 |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .984   |   | 58                                                 |
| 59                                                 |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .985   |   | 59                                                 |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                               |
| 60                                                 |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .985   |   | 60                                                 |
| 61                                                 |   | .997   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .991   |   | .990   |   | .986   |   | 61                                                 |
| 62                                                 |   | .997   |   | .997   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .995   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .987   |   | 62                                                 |
| 63                                                 |   | .998   |   | .997   |   | .997   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .992   |   | .988   |   | 63                                                 |
| 64                                                 |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | 989    |   | 64                                                 |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                               |
| 65                                                 |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .993   |   | .993   |   | .989   |   | 65                                                 |
| 66                                                 |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .993   |   | .990   |   | 66                                                 |
| 67                                                 |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .991   |   | 67                                                 |
| 68                                                 |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .991   |   | 68                                                 |
| 69                                                 |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .992   |   | 69                                                 |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                               |
| 70                                                 |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .992   |   | 70                                                 |
| 71                                                 |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .993   |   | 71                                                 |
| 72                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .994   |   | 72                                                 |
| 73                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .994   |   | 73                                                 |
| 74                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .997   |   | .995   |   | 74                                                 |

 

3

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **25** |   | **26** |   | **27** |   | **28** |   | **29** |   | **30** |   | **31** |   | **32** |   | **33** |   | **34** |   | **35** |   | **36** |   | **37** |   | **38** |   | **39** |   | **40** |   | **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                               |
| 75                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .995   |   | 75                                                 |
| 76                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .995   |   | 76                                                 |
| 77                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .996   |   | 77                                                 |
| 78                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .996   |   | 78                                                 |
| 79                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .996   |   | 79                                                 |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                               |
| 80                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .998   |   | .997   |   | 80                                                 |
| 81                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .998   |   | .997   |   | 81                                                 |
| 82                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | .997   |   | 82                                                 |
| 83                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | 83                                                 |
| 84                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | 84                                                 |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                               |
| 85                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | 85                                                 |
| 86                                                 |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | 86                                                 |
| 87                                                 |   | 1.000  |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | 87                                                 |
| 88                                                 |   | 1.000  |   | 1.000  |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .998   |   | 88                                                 |
| 89                                                 |   | 1.000  |   | 1.000  |   | 1.000  |   | 1.000  |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | .999   |   | 89                                                 |
|                                               |   | 25     |   | 26     |   | 27     |   | 28     |   | 29     |   | 30     |   | 31     |   | 32     |   | 33     |   | 34     |   | 35     |   | 36     |   | 37     |   | 38     |   | 39     |   | 40     |   |                                               |

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| Mortality:      |   | 1971  TPF&C Forecast Mortality Table (Pensioner rate based on 85% male; Beneficiary  rate based on 85% female) |
|-----------------|--------|--------------------------------------------------------------------------------------------------------------------|
| Interest  Rate: |   | 7.5%                                                                                                               |
| Effective:      |   | January 1,  1984                                                                                              |
| Prepared by:    |   | Towers  Perrin                                                                                                     |

 

4

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **40** |   | **41** |   | **42** |   | **43** |   | **44** |   | **45** |   | **46** |   | **47** |   | **48** |   | **49** |   | **50** |   | **51** |   | **52** |   | **53** |   | **54** |   | **55** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 20                                                 |   | .952   |   | .948   |   | .945   |   | .941   |   | .936   |   | .932   |   | .927   |   | .922   |   | .917   |   | .911   |   | .905   |   | .899   |   | .893   |   | .886   |   | .879   |   | .872   |   | 20                                                  |
| 21                                                 |   | .952   |   | .949   |   | .945   |   | .941   |   | .937   |   | .932   |   | .928   |   | .923   |   | .917   |   | .912   |   | .906   |   | .900   |   | .894   |   | .887   |   | .880   |   | .873   |   | 21                                                  |
| 22                                                 |   | .953   |   | .949   |   | .946   |   | .942   |   | .937   |   | .933   |   | .928   |   | .923   |   | .918   |   | .912   |   | .907   |   | .901   |   | .894   |   | .888   |   | .881   |   | .873   |   | 22                                                  |
| 23                                                 |   | .954   |   | .950   |   | .946   |   | .942   |   | .938   |   | .933   |   | .929   |   | .924   |   | .919   |   | .913   |   | .907   |   | .901   |   | .895   |   | .888   |   | .881   |   | .874   |   | 23                                                  |
| 24                                                 |   | .954   |   | .951   |   | .947   |   | .943   |   | .939   |   | .934   |   | .929   |   | .924   |   | .919   |   | .914   |   | .908   |   | .902   |   | .896   |   | .889   |   | .882   |   | .875   |   | 24                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 25                                                 |   | .955   |   | .951   |   | .947   |   | .943   |   | .939   |   | .935   |   | .930   |   | .925   |   | .920   |   | .914   |   | .909   |   | .903   |   | .896   |   | .890   |   | .883   |   | .876   |   | 25                                                  |
| 26                                                 |   | .955   |   | .952   |   | .948   |   | .944   |   | .940   |   | .936   |   | .931   |   | .926   |   | .921   |   | .915   |   | .910   |   | .904   |   | .897   |   | .891   |   | .884   |   | .877   |   | 26                                                  |
| 27                                                 |   | .956   |   | .953   |   | .949   |   | .945   |   | .941   |   | .936   |   | .932   |   | .927   |   | .922   |   | .916   |   | .910   |   | .904   |   | .898   |   | .892   |   | .885   |   | .878   |   | 27                                                  |
| 28                                                 |   | .957   |   | .953   |   | .950   |   | .946   |   | .941   |   | .937   |   | .932   |   | .928   |   | .922   |   | .917   |   | .911   |   | .905   |   | .899   |   | .893   |   | .886   |   | .878   |   | 28                                                  |
| 29                                                 |   | .957   |   | .954   |   | .950   |   | .946   |   | .942   |   | .938   |   | .933   |   | .928   |   | .923   |   | .918   |   | .912   |   | .906   |   | .900   |   | .894   |   | .887   |   | .879   |   | 29                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 30                                                 |   | .958   |   | .955   |   | .951   |   | .947   |   | .943   |   | .939   |   | .934   |   | .929   |   | .924   |   | .919   |   | .913   |   | .907   |   | .901   |   | .895   |   | .888   |   | .881   |   | 30                                                  |
| 31                                                 |   | .959   |   | .955   |   | .952   |   | .948   |   | .944   |   | .940   |   | .935   |   | .930   |   | .925   |   | .920   |   | .914   |   | .908   |   | .902   |   | .896   |   | .889   |   | .882   |   | 31                                                  |
| 32                                                 |   | .960   |   | .956   |   | .953   |   | .949   |   | .945   |   | .941   |   | .936   |   | .931   |   | .926   |   | .921   |   | .915   |   | .909   |   | .903   |   | .897   |   | .890   |   | .883   |   | 32                                                  |
| 33                                                 |   | .960   |   | .957   |   | .954   |   | .950   |   | .946   |   | .942   |   | .937   |   | .932   |   | .927   |   | .922   |   | .916   |   | .911   |   | .904   |   | .898   |   | .891   |   | .884   |   | 33                                                  |
| 34                                                 |   | .961   |   | .958   |   | .954   |   | .951   |   | .947   |   | .943   |   | .938   |   | .933   |   | .928   |   | .923   |   | .918   |   | .912   |   | .906   |   | .899   |   | .893   |   | .885   |   | 34                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 35                                                 |   | .962   |   | .959   |   | .955   |   | .952   |   | .948   |   | .944   |   | .939   |   | .934   |   | .929   |   | .924   |   | .919   |   | .913   |   | .907   |   | .901   |   | .894   |   | .887   |   | 35                                                  |
| 36                                                 |   | .963   |   | .960   |   | .956   |   | .953   |   | .949   |   | .945   |   | .940   |   | .936   |   | .931   |   | .926   |   | .920   |   | .914   |   | .908   |   | .902   |   | .895   |   | .888   |   | 36                                                  |
| 37                                                 |   | .964   |   | .961   |   | .957   |   | .954   |   | .950   |   | .946   |   | .941   |   | .937   |   | .932   |   | .927   |   | .921   |   | .916   |   | .910   |   | .903   |   | .897   |   | .890   |   | 37                                                  |
| 38                                                 |   | .965   |   | .962   |   | .958   |   | .955   |   | .951   |   | .947   |   | .943   |   | .938   |   | .933   |   | .928   |   | .923   |   | .917   |   | .911   |   | .905   |   | .898   |   | .891   |   | 38                                                  |
| 39                                                 |   | .966   |   | .963   |   | .959   |   | .956   |   | .952   |   | .948   |   | .944   |   | .939   |   | .935   |   | .929   |   | .924   |   | .919   |   | .913   |   | .906   |   | .900   |   | .893   |   | 39                                                  |

 

5

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **25** |   | **26** |   | **27** |   | **28** |   | **29** |   | **30** |   | **31** |   | **32** |   | **33** |   | **34** |   | **35** |   | **36** |   | **37** |   | **38** |   | **39** |   | **40** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 40                                                 |   | .967   |   | .964   |   | .960   |   | .957   |   | .953   |   | .949   |   | .945   |   | .941   |   | .936   |   | .931   |   | .926   |   | .920   |   | .914   |   | .908   |   | .902   |   | .895   |   | 40                                                  |
| 41                                                 |   | .968   |   | .965   |   | .961   |   | .958   |   | .954   |   | .950   |   | .946   |   | .942   |   | .937   |   | .932   |   | .927   |   | .922   |   | .916   |   | .910   |   | .903   |   | .897   |   | 41                                                  |
| 42                                                 |   | .968   |   | .966   |   | .963   |   | .959   |   | .956   |   | .952   |   | .948   |   | .943   |   | .939   |   | .934   |   | .929   |   | .923   |   | .918   |   | .912   |   | .905   |   | .898   |   | 42                                                  |
| 43                                                 |   | .969   |   | .967   |   | .964   |   | .960   |   | .957   |   | .953   |   | .949   |   | .945   |   | .940   |   | .935   |   | .930   |   | .925   |   | .919   |   | .913   |   | .907   |   | .900   |   | 43                                                  |
| 44                                                 |   | .970   |   | .968   |   | .965   |   | .961   |   | .958   |   | .954   |   | .950   |   | .946   |   | .942   |   | .937   |   | .932   |   | .927   |   | .921   |   | .915   |   | .909   |   | .902   |   | 44                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 45                                                 |   | .971   |   | .969   |   | .966   |   | .963   |   | .959   |   | .956   |   | .952   |   | .948   |   | .943   |   | .939   |   | .934   |   | .929   |   | .923   |   | .917   |   | .911   |   | .904   |   | 45                                                  |
| 46                                                 |   | .972   |   | .970   |   | .967   |   | .964   |   | .961   |   | .957   |   | .953   |   | .949   |   | .945   |   | .940   |   | .935   |   | .930   |   | .925   |   | .919   |   | .913   |   | .907   |   | 46                                                  |
| 47                                                 |   | .973   |   | .971   |   | .968   |   | .965   |   | .962   |   | .958   |   | .955   |   | .951   |   | .946   |   | .942   |   | .937   |   | .932   |   | .927   |   | .921   |   | .915   |   | .909   |   | 47                                                  |
| 48                                                 |   | .974   |   | .972   |   | .969   |   | .966   |   | .963   |   | .960   |   | .956   |   | .952   |   | .948   |   | .944   |   | .939   |   | .934   |   | .929   |   | .923   |   | .917   |   | .911   |   | 48                                                  |
| 49                                                 |   | .975   |   | .973   |   | .970   |   | .968   |   | .964   |   | .961   |   | .958   |   | .954   |   | .950   |   | .945   |   | .941   |   | .936   |   | .931   |   | .925   |   | .920   |   | .913   |   | 49                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 50                                                 |   | .976   |   | .974   |   | .972   |   | .969   |   | .966   |   | .963   |   | .959   |   | .955   |   | .951   |   | .947   |   | .943   |   | .938   |   | .933   |   | .928   |   | .922   |   | .916   |   | 50                                                  |
| 51                                                 |   | .977   |   | .975   |   | .973   |   | .970   |   | .967   |   | .964   |   | .961   |   | .957   |   | .953   |   | .949   |   | .945   |   | .940   |   | .935   |   | .930   |   | .924   |   | .918   |   | 51                                                  |
| 52                                                 |   | .978   |   | .976   |   | .974   |   | .971   |   | .968   |   | .965   |   | .962   |   | .959   |   | .955   |   | .951   |   | .947   |   | .942   |   | .937   |   | .932   |   | .926   |   | .921   |   | 52                                                  |
| 53                                                 |   | .979   |   | .977   |   | .975   |   | .972   |   | .970   |   | .967   |   | .964   |   | .960   |   | .957   |   | .953   |   | .948   |   | .944   |   | .939   |   | .934   |   | .929   |   | .923   |   | 53                                                  |
| 54                                                 |   | .980   |   | .978   |   | .976   |   | .974   |   | .971   |   | .968   |   | .965   |   | .962   |   | .958   |   | .954   |   | .950   |   | .946   |   | .941   |   | .937   |   | .931   |   | .926   |   | 54                                                  |
|                                               |   | 40     |   | 41     |   | 42     |   | 43     |   | 44     |   | 45     |   | 46     |   | 47     |   | 48     |   | 49     |   | 50     |   | 51     |   | 52     |   | 53     |   | 54     |   | 55     |   |                                                |

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| Mortality:      |   | 1971 TPF&C Forecast Mortality Table (Pensioner rate based on 85%  male; Beneficiary rate based on 85% female) |
|-----------------|--------|-------------------------------------------------------------------------------------------------------------------|
| Interest  Rate: |   | 7.5%                                                                                                              |
| Effective:      |   | January 1,  1984                                                                                             |
| Prepared by:    |   | Towers  Perrin                                                                                                    |

 

6

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **40** |   | **41** |   | **42** |   | **43** |   | **44** |   | **45** |   | **46** |   | **47** |   | **48** |   | **49** |   | **50** |   | **51** |   | **52** |   | **53** |   | **54** |   | **55** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 55                                                 |   | .981   |   | .979   |   | .977   |   | .975   |   | .972   |   | .969   |   | .966   |   | .963   |   | .960   |   | .956   |   | .952   |   | .948   |   | .944   |   | .939   |   | .934   |   | .928   |   | 55                                                  |
| 56                                                 |   | .982   |   | .980   |   | .978   |   | .976   |   | .973   |   | .971   |   | .968   |   | .965   |   | .962   |   | .958   |   | .954   |   | .950   |   | .946   |   | .941   |   | .936   |   | .931   |   | 56                                                  |
| 57                                                 |   | .983   |   | .981   |   | .979   |   | .977   |   | .975   |   | .972   |   | .969   |   | .966   |   | .963   |   | .960   |   | .956   |   | .952   |   | .948   |   | .943   |   | .939   |   | .933   |   | 57                                                  |
| 58                                                 |   | .984   |   | .982   |   | .980   |   | .978   |   | .976   |   | .973   |   | .971   |   | .968   |   | .965   |   | .962   |   | .958   |   | .954   |   | .950   |   | .946   |   | .941   |   | .936   |   | 58                                                  |
| 59                                                 |   | .985   |   | .983   |   | .981   |   | .979   |   | .977   |   | .975   |   | .972   |   | .969   |   | .966   |   | .963   |   | .960   |   | .956   |   | .952   |   | .948   |   | .943   |   | .939   |   | 59                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 60                                                 |   | .985   |   | .984   |   | .982   |   | .980   |   | .978   |   | .976   |   | .974   |   | .971   |   | .968   |   | .965   |   | .962   |   | .958   |   | .954   |   | .950   |   | .946   |   | .941   |   | 60                                                  |
| 61                                                 |   | .986   |   | .985   |   | .983   |   | .981   |   | .979   |   | .977   |   | .975   |   | .972   |   | .970   |   | .967   |   | .964   |   | .960   |   | .957   |   | .953   |   | .948   |   | .944   |   | 61                                                  |
| 62                                                 |   | .987   |   | .986   |   | .984   |   | .982   |   | .981   |   | .978   |   | .976   |   | .974   |   | .971   |   | .968   |   | .965   |   | .962   |   | .959   |   | .955   |   | .951   |   | .946   |   | 62                                                  |
| 63                                                 |   | .988   |   | .987   |   | .985   |   | .983   |   | .982   |   | .980   |   | .978   |   | .975   |   | .973   |   | .970   |   | .967   |   | .964   |   | .961   |   | .957   |   | .953   |   | .949   |   | 63                                                  |
| 64                                                 |   | .989   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | .979   |   | .977   |   | .974   |   | .972   |   | .969   |   | .966   |   | .963   |   | .959   |   | .956   |   | .952   |   | 64                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 65                                                 |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | .982   |   | .980   |   | .978   |   | .976   |   | .973   |   | .971   |   | .968   |   | .965   |   | .961   |   | .958   |   | .954   |   | 65                                                  |
| 66                                                 |   | .990   |   | .989   |   | .988   |   | .986   |   | .985   |   | .983   |   | .981   |   | .979   |   | .977   |   | .975   |   | .972   |   | .970   |   | .967   |   | .964   |   | .960   |   | .957   |   | 66                                                  |
| 67                                                 |   | .991   |   | .990   |   | .988   |   | .987   |   | .986   |   | .984   |   | .982   |   | .981   |   | .979   |   | .976   |   | .974   |   | .971   |   | .969   |   | .966   |   | .962   |   | .959   |   | 67                                                  |
| 68                                                 |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | .982   |   | .980   |   | .978   |   | .976   |   | .973   |   | .971   |   | .968   |   | .965   |   | .961   |   | 68                                                  |
| 69                                                 |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .986   |   | .985   |   | .983   |   | .981   |   | .979   |   | .977   |   | .975   |   | .972   |   | .970   |   | .967   |   | .964   |   | 69                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 70                                                 |   | .992   |   | .992   |   | .991   |   | .990   |   | .988   |   | .987   |   | .986   |   | .984   |   | .982   |   | .981   |   | .979   |   | .976   |   | .974   |   | .972   |   | .969   |   | .966   |   | 70                                                  |
| 71                                                 |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | .982   |   | .980   |   | .978   |   | .976   |   | .974   |   | .971   |   | .968   |   | 71                                                  |
| 72                                                 |   | .994   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .986   |   | .985   |   | .983   |   | .981   |   | .980   |   | .978   |   | .975   |   | .973   |   | .970   |   | 72                                                  |
| 73                                                 |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | .979   |   | .977   |   | .975   |   | .972   |   | 73                                                  |
| 74                                                 |   | .995   |   | .994   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | .982   |   | .981   |   | .979   |   | .977   |   | .974   |   | 74                                                  |

 

7

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **40** |   | **41** |   | **42** |   | **43** |   | **44** |   | **45** |   | **46** |   | **47** |   | **48** |   | **49** |   | **50** |   | **51** |   | **52** |   | **53** |   | **54** |   | **55** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 75                                                 |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | .982   |   | .980   |   | .978   |   | .976   |   | 75                                                  |
| 76                                                 |   | .995   |   | .995   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .978   |   | 76                                                  |
| 77                                                 |   | .996   |   | .995   |   | .995   |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .988   |   | .987   |   | .986   |   | .985   |   | .983   |   | .981   |   | .979   |   | 77                                                  |
| 78                                                 |   | .996   |   | .996   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | 78                                                  |
| 79                                                 |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | .982   |   | 79                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 80                                                 |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | 80                                                  |
| 81                                                 |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .986   |   | .985   |   | 81                                                  |
| 82                                                 |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .986   |   | 82                                                  |
| 83                                                 |   | .998   |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .992   |   | .991   |   | .990   |   | .989   |   | .987   |   | 83                                                  |
| 84                                                 |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .991   |   | .991   |   | .990   |   | .989   |   | 84                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 85                                                 |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .991   |   | .990   |   | .990   |   | 85                                                  |
| 86                                                 |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .994   |   | .993   |   | .992   |   | .991   |   | .990   |   | 86                                                  |
| 87                                                 |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .993   |   | .993   |   | .992   |   | .991   |   | 87                                                  |
| 88                                                 |   | .998   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .993   |   | .993   |   | .992   |   | 88                                                  |
| 89                                                 |   | .999   |   | .998   |   | .998   |   | .998   |   | .998   |   | .997   |   | .997   |   | .997   |   | .996   |   | .996   |   | .996   |   | .995   |   | .995   |   | .994   |   | .993   |   | .993   |   | 89                                                  |
|                                               |   | 40     |   | 41     |   | 42     |   | 43     |   | 44     |   | 45     |   | 46     |   | 47     |   | 48     |   | 49     |   | 50     |   | 51     |   | 52     |   | 53     |   | 54     |   | 55     |   |                                                |

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| Mortality:      |   | 1971  TPF&C Forecast Mortality Table (Pensioner rate based on 85% male;  Beneficiary rate based on 85% female) |
|-----------------|--------|--------------------------------------------------------------------------------------------------------------------|
| Interest  Rate: |   | 7.5%                                                                                                               |
| Effective:      |   | January 1,  1984                                                                                              |
| Prepared by:    |   | Towers  Perrin                                                                                                     |

 

8

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **55** |   | **56** |   | **57** |   | **58** |   | **59** |   | **60** |   | **61** |   | **52** |   | **63** |   | **64** |   | **65** |   | **66** |   | **67** |   | **68** |   | **69** |   | **70** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 20                                                 |   | .872   |   | .864   |   | .856   |   | .848   |   | .839   |   | .829   |   | .819   |   | .809   |   | .798   |   | .786   |   | .774   |   | .762   |   | .749   |   | .735   |   | .722   |   | .708   |   | 20                                                  |
| 21                                                 |   | .873   |   | .865   |   | .857   |   | .849   |   | .839   |   | .830   |   | .820   |   | .810   |   | .799   |   | .787   |   | .775   |   | .762   |   | .749   |   | .736   |   | .722   |   | .708   |   | 21                                                  |
| 22                                                 |   | .873   |   | .866   |   | .858   |   | .849   |   | .840   |   | .831   |   | .821   |   | .810   |   | .799   |   | .788   |   | .776   |   | .763   |   | .750   |   | .737   |   | .723   |   | .709   |   | 22                                                  |
| 23                                                 |   | .874   |   | .867   |   | .858   |   | .850   |   | .841   |   | .831   |   | .821   |   | .811   |   | .800   |   | .788   |   | .776   |   | .764   |   | .751   |   | .737   |   | .724   |   | .710   |   | 23                                                  |
| 24                                                 |   | .875   |   | .867   |   | .859   |   | .851   |   | .842   |   | .832   |   | .822   |   | .812   |   | .801   |   | .789   |   | .777   |   | .765   |   | .752   |   | .738   |   | .725   |   | .711   |   | 24                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 25                                                 |   | .876   |   | .868   |   | .860   |   | .852   |   | .843   |   | .833   |   | .823   |   | .813   |   | .802   |   | .790   |   | .778   |   | .765   |   | .752   |   | .739   |   | .725   |   | .712   |   | 25                                                  |
| 26                                                 |   | .877   |   | .869   |   | .861   |   | .852   |   | .843   |   | .834   |   | .824   |   | .814   |   | .803   |   | .791   |   | .779   |   | .766   |   | .753   |   | .740   |   | .726   |   | .712   |   | 26                                                  |
| 27                                                 |   | .878   |   | .870   |   | .862   |   | .853   |   | .844   |   | .835   |   | .825   |   | .815   |   | .804   |   | .792   |   | .780   |   | .767   |   | .754   |   | .741   |   | .727   |   | .713   |   | 27                                                  |
| 28                                                 |   | .878   |   | .871   |   | .863   |   | .854   |   | .845   |   | .836   |   | .826   |   | .816   |   | .805   |   | .793   |   | .781   |   | .768   |   | .755   |   | .742   |   | .728   |   | .715   |   | 28                                                  |
| 29                                                 |   | .879   |   | .872   |   | .864   |   | .855   |   | .847   |   | .837   |   | .827   |   | .817   |   | .806   |   | .794   |   | .782   |   | .770   |   | .757   |   | .743   |   | .730   |   | .716   |   | 29                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 30                                                 |   | .881   |   | .873   |   | .865   |   | .857   |   | .848   |   | .838   |   | .828   |   | .818   |   | .807   |   | .795   |   | .783   |   | .771   |   | .758   |   | .744   |   | .731   |   | .717   |   | 30                                                  |
| 31                                                 |   | .882   |   | .874   |   | .866   |   | .858   |   | .849   |   | .839   |   | .830   |   | .819   |   | .808   |   | .797   |   | .785   |   | .772   |   | .759   |   | .746   |   | .732   |   | .718   |   | 31                                                  |
| 32                                                 |   | .883   |   | .875   |   | .867   |   | .859   |   | .850   |   | .841   |   | .831   |   | .820   |   | .810   |   | .798   |   | .786   |   | .773   |   | .760   |   | .747   |   | .733   |   | .719   |   | 32                                                  |
| 33                                                 |   | .884   |   | .877   |   | .869   |   | .860   |   | .851   |   | .842   |   | .832   |   | .822   |   | .811   |   | .799   |   | .787   |   | .775   |   | .762   |   | .748   |   | .735   |   | .721   |   | 33                                                  |
| 34                                                 |   | .885   |   | .878   |   | .870   |   | .862   |   | .853   |   | .844   |   | .834   |   | .823   |   | .812   |   | .801   |   | .789   |   | .776   |   | .763   |   | .750   |   | .736   |   | .722   |   | 34                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 35                                                 |   | .887   |   | .879   |   | .872   |   | .863   |   | .854   |   | .845   |   | .835   |   | .825   |   | .814   |   | .802   |   | .790   |   | .778   |   | .765   |   | .752   |   | .738   |   | .724   |   | 35                                                  |
| 36                                                 |   | .888   |   | .881   |   | .873   |   | .865   |   | .856   |   | .847   |   | .837   |   | .826   |   | .816   |   | .804   |   | .792   |   | .780   |   | .767   |   | .753   |   | .740   |   | .726   |   | 36                                                  |
| 37                                                 |   | .890   |   | .882   |   | .875   |   | .866   |   | .858   |   | .848   |   | .839   |   | .828   |   | .817   |   | .806   |   | .794   |   | .781   |   | .768   |   | .755   |   | .742   |   | .728   |   | 37                                                  |
| 38                                                 |   | .891   |   | .884   |   | .876   |   | .868   |   | .859   |   | .850   |   | .840   |   | .830   |   | .819   |   | .808   |   | .796   |   | .783   |   | .770   |   | .757   |   | .743   |   | .730   |   | 38                                                  |
| 39                                                 |   | .893   |   | .886   |   | .878   |   | .870   |   | .861   |   | .852   |   | .842   |   | .832   |   | .821   |   | .810   |   | .798   |   | .785   |   | .772   |   | .759   |   | .746   |   | .732   |   | 39                                                  |

 

9

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **55** |   | **56** |   | **57** |   | **58** |   | **59** |   | **60** |   | **61** |   | **52** |   | **63** |   | **64** |   | **65** |   | **66** |   | **67** |   | **68** |   | **69** |   | **70** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 40                                                 |   | .895   |   | .888   |   | .880   |   | .872   |   | .863   |   | .854   |   | .844   |   | .834   |   | .823   |   | .812   |   | .800   |   | .787   |   | .775   |   | .761   |   | .748   |   | .734   |   | 40                                                  |
| 41                                                 |   | .897   |   | .889   |   | .882   |   | .874   |   | .865   |   | .856   |   | .846   |   | .836   |   | .825   |   | .814   |   | .802   |   | .790   |   | .777   |   | .764   |   | .750   |   | .736   |   | 41                                                  |
| 42                                                 |   | .898   |   | .891   |   | .884   |   | .876   |   | .867   |   | .858   |   | .848   |   | .838   |   | .828   |   | .816   |   | .804   |   | .792   |   | .779   |   | .766   |   | .752   |   | .739   |   | 42                                                  |
| 43                                                 |   | .900   |   | .893   |   | .886   |   | .878   |   | .869   |   | .860   |   | .851   |   | .841   |   | .830   |   | .819   |   | .807   |   | .794   |   | .782   |   | .769   |   | .755   |   | .741   |   | 43                                                  |
| 44                                                 |   | .902   |   | .895   |   | .888   |   | .880   |   | .872   |   | .863   |   | .853   |   | .843   |   | .832   |   | .821   |   | .809   |   | .797   |   | .784   |   | .771   |   | .758   |   | .744   |   | 44                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 45                                                 |   | .904   |   | .897   |   | .890   |   | .882   |   | .874   |   | .865   |   | .856   |   | .846   |   | .835   |   | .824   |   | .812   |   | .800   |   | .787   |   | .774   |   | .761   |   | .747   |   | 45                                                  |
| 46                                                 |   | .907   |   | .900   |   | .892   |   | .885   |   | .876   |   | .867   |   | .858   |   | .848   |   | .838   |   | .827   |   | .815   |   | .803   |   | .790   |   | .777   |   | .763   |   | .750   |   | 46                                                  |
| 47                                                 |   | .909   |   | .902   |   | .895   |   | .887   |   | .879   |   | .870   |   | .861   |   | .851   |   | .841   |   | .829   |   | .818   |   | .806   |   | .793   |   | .780   |   | .767   |   | .753   |   | 47                                                  |
| 48                                                 |   | .911   |   | .904   |   | .897   |   | .890   |   | .881   |   | .873   |   | .864   |   | .854   |   | .843   |   | .832   |   | .821   |   | .809   |   | .796   |   | .783   |   | .770   |   | .756   |   | 48                                                  |
| 49                                                 |   | .913   |   | .907   |   | .900   |   | .892   |   | .884   |   | .876   |   | .866   |   | .857   |   | .847   |   | .836   |   | .824   |   | .812   |   | .800   |   | .787   |   | .773   |   | .760   |   | 49                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 50                                                 |   | .916   |   | .909   |   | .902   |   | .895   |   | .887   |   | .878   |   | .869   |   | .860   |   | .850   |   | .839   |   | .827   |   | .815   |   | .803   |   | .790   |   | .777   |   | .763   |   | 50                                                  |
| 51                                                 |   | .918   |   | .912   |   | .905   |   | .898   |   | .890   |   | .881   |   | .872   |   | .863   |   | .853   |   | .842   |   | .831   |   | .819   |   | .807   |   | .794   |   | .781   |   | .767   |   | 51                                                  |
| 52                                                 |   | .921   |   | .914   |   | .908   |   | .900   |   | .893   |   | .884   |   | .876   |   | .866   |   | .856   |   | .846   |   | .834   |   | .823   |   | .810   |   | .798   |   | .784   |   | .771   |   | 52                                                  |
| 53                                                 |   | .923   |   | .917   |   | .910   |   | .903   |   | .896   |   | .888   |   | .879   |   | .870   |   | .860   |   | .849   |   | .838   |   | .826   |   | .814   |   | .801   |   | .788   |   | .775   |   | 53                                                  |
| 54                                                 |   | .926   |   | .920   |   | .913   |   | .906   |   | .899   |   | .891   |   | .882   |   | .873   |   | .863   |   | .853   |   | .842   |   | .830   |   | .818   |   | .806   |   | .793   |   | .779   |   | 54                                                  |
|                                               |   | **55** |   | **56** |   | **57** |   | **58** |   | **59** |   | **60** |   | **61** |   | **52** |   | **63** |   | **64** |   | **65** |   | **66** |   | **67** |   | **68** |   | **69** |   | **70** |   |                                                |

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| Mortality:      |   | 1971  TPF&C Forecast Mortality Table (Pensioner rate based on 85% male;  Beneficiary rate based on 85% female) |
|-----------------|--------|--------------------------------------------------------------------------------------------------------------------|
| Interest  Rate: |   | 7.5%                                                                                                               |
| Effective:      |   | January 1,  1984                                                                                              |
| Prepared by:    |   | Towers  Perrin                                                                                                     |

 

10

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **55** |   | **56** |   | **57** |   | **58** |   | **59** |   | **60** |   | **61** |   | **52** |   | **63** |   | **64** |   | **65** |   | **66** |   | **67** |   | **68** |   | **69** |   | **70** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 55                                                 |   | .928   |   | .922   |   | .916   |   | .909   |   | .902   |   | .894   |   | .885   |   | .876   |   | .867   |   | .857   |   | .846   |   | .834   |   | .822   |   | .810   |   | .797   |   | .784   |   | 55                                                  |
| 56                                                 |   | .931   |   | .925   |   | .919   |   | .912   |   | .905   |   | .897   |   | .889   |   | .880   |   | .871   |   | .860   |   | .850   |   | .838   |   | .826   |   | .814   |   | .801   |   | .788   |   | 56                                                  |
| 57                                                 |   | .933   |   | .928   |   | .922   |   | .915   |   | .908   |   | .901   |   | .892   |   | .884   |   | .874   |   | .864   |   | .854   |   | .842   |   | .831   |   | .819   |   | .806   |   | .793   |   | 57                                                  |
| 58                                                 |   | .936   |   | .931   |   | .925   |   | .918   |   | .911   |   | .904   |   | .896   |   | .887   |   | .878   |   | .868   |   | .858   |   | .847   |   | .835   |   | .823   |   | .811   |   | .798   |   | 58                                                  |
| 59                                                 |   | .939   |   | .933   |   | .928   |   | .921   |   | .915   |   | .907   |   | .900   |   | .891   |   | .882   |   | .873   |   | .862   |   | .851   |   | .840   |   | .828   |   | .816   |   | .803   |   | 59                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 60                                                 |   | .941   |   | .936   |   | .931   |   | .924   |   | .918   |   | .911   |   | .903   |   | .895   |   | .886   |   | .877   |   | .867   |   | .856   |   | .845   |   | .833   |   | .821   |   | .808   |   | 60                                                  |
| 61                                                 |   | .944   |   | .939   |   | .933   |   | .928   |   | .921   |   | .914   |   | .907   |   | .899   |   | .890   |   | .881   |   | .871   |   | .860   |   | .849   |   | .838   |   | .826   |   | .813   |   | 61                                                  |
| 62                                                 |   | .946   |   | .942   |   | .936   |   | .931   |   | .925   |   | .918   |   | .911   |   | .903   |   | .894   |   | .885   |   | .876   |   | .865   |   | .854   |   | .843   |   | .831   |   | .819   |   | 62                                                  |
| 63                                                 |   | .949   |   | .944   |   | .939   |   | .934   |   | .928   |   | .921   |   | .914   |   | .907   |   | .899   |   | .890   |   | .880   |   | .870   |   | .859   |   | .848   |   | .836   |   | .824   |   | 63                                                  |
| 64                                                 |   | .952   |   | .947   |   | .942   |   | .937   |   | .931   |   | .925   |   | .918   |   | .911   |   | .903   |   | .894   |   | .885   |   | .875   |   | .864   |   | .854   |   | .842   |   | .830   |   | 64                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 65                                                 |   | .954   |   | .950   |   | .945   |   | .940   |   | .935   |   | .929   |   | .922   |   | .915   |   | .907   |   | .899   |   | .890   |   | .880   |   | .870   |   | .859   |   | .848   |   | .836   |   | 65                                                  |
| 66                                                 |   | .957   |   | .953   |   | .948   |   | .943   |   | .938   |   | .932   |   | .926   |   | .919   |   | .911   |   | .903   |   | .894   |   | .885   |   | .875   |   | .865   |   | .854   |   | .842   |   | 66                                                  |
| 67                                                 |   | .959   |   | .955   |   | .951   |   | .946   |   | .941   |   | .936   |   | .930   |   | .923   |   | .916   |   | .908   |   | .899   |   | .890   |   | .880   |   | .870   |   | .859   |   | .848   |   | 67                                                  |
| 68                                                 |   | .961   |   | .958   |   | .954   |   | .949   |   | .944   |   | .939   |   | .933   |   | .927   |   | .920   |   | .912   |   | .904   |   | .895   |   | .886   |   | .876   |   | .865   |   | .854   |   | 68                                                  |
| 69                                                 |   | .964   |   | .960   |   | .956   |   | .952   |   | .948   |   | .943   |   | .937   |   | .931   |   | .924   |   | .917   |   | .909   |   | .900   |   | .891   |   | .881   |   | .871   |   | .861   |   | 69                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 70                                                 |   | .966   |   | .963   |   | .959   |   | .955   |   | .951   |   | .946   |   | .941   |   | .935   |   | .928   |   | .921   |   | .914   |   | .905   |   | .896   |   | .887   |   | .877   |   | .867   |   | 70                                                  |
| 71                                                 |   | .968   |   | .965   |   | .962   |   | .958   |   | .954   |   | .949   |   | .944   |   | .939   |   | .932   |   | .926   |   | .918   |   | .910   |   | .902   |   | .893   |   | .883   |   | .873   |   | 71                                                  |
| 72                                                 |   | .970   |   | .967   |   | .964   |   | .961   |   | .957   |   | .952   |   | .948   |   | .942   |   | .936   |   | .930   |   | .923   |   | .915   |   | .907   |   | .898   |   | .889   |   | .879   |   | 72                                                  |
| 73                                                 |   | .972   |   | .970   |   | .967   |   | .963   |   | .959   |   | .955   |   | .951   |   | .946   |   | .940   |   | .934   |   | .927   |   | .920   |   | .912   |   | .904   |   | .895   |   | .886   |   | 73                                                  |
| 74                                                 |   | .974   |   | .972   |   | .969   |   | .966   |   | .962   |   | .958   |   | .954   |   | .949   |   | .944   |   | .938   |   | .932   |   | .925   |   | .917   |   | .909   |   | .901   |   | .892   |   | 74                                                  |

 

11

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **55** |   | **56** |   | **57** |   | **58** |   | **59** |   | **60** |   | **61** |   | **52** |   | **63** |   | **64** |   | **65** |   | **66** |   | **67** |   | **68** |   | **69** |   | **70** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 75                                                 |   | .976   |   | .974   |   | .971   |   | .968   |   | .965   |   | .961   |   | .957   |   | .953   |   | .948   |   | .942   |   | .936   |   | .929   |   | .922   |   | .915   |   | .906   |   | .898   |   | 75                                                  |
| 76                                                 |   | .978   |   | .976   |   | .973   |   | .970   |   | .967   |   | .964   |   | .960   |   | .956   |   | .951   |   | .946   |   | .940   |   | .934   |   | .927   |   | .920   |   | .912   |   | .904   |   | 76                                                  |
| 77                                                 |   | .979   |   | .977   |   | .975   |   | .973   |   | .970   |   | .966   |   | .963   |   | .959   |   | .954   |   | .950   |   | .944   |   | .938   |   | .932   |   | .925   |   | .917   |   | .909   |   | 77                                                  |
| 78                                                 |   | .981   |   | .979   |   | .977   |   | .975   |   | .972   |   | .969   |   | .966   |   | .962   |   | .958   |   | .953   |   | .948   |   | .942   |   | .936   |   | .929   |   | .922   |   | .915   |   | 78                                                  |
| 79                                                 |   | .982   |   | .981   |   | .979   |   | .976   |   | .974   |   | .971   |   | .968   |   | .965   |   | .961   |   | .956   |   | .951   |   | .946   |   | .940   |   | .934   |   | .927   |   | .920   |   | 79                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 80                                                 |   | .984   |   | .982   |   | .980   |   | .978   |   | .976   |   | .973   |   | .971   |   | .967   |   | .964   |   | .960   |   | .955   |   | .950   |   | .944   |   | .938   |   | .932   |   | .925   |   | 80                                                  |
| 81                                                 |   | .985   |   | .984   |   | .982   |   | .980   |   | .978   |   | .975   |   | .973   |   | .970   |   | .966   |   | .963   |   | .958   |   | .954   |   | .948   |   | .943   |   | .937   |   | .930   |   | 81                                                  |
| 82                                                 |   | .986   |   | .985   |   | .983   |   | .982   |   | .980   |   | .977   |   | .975   |   | .972   |   | .969   |   | .965   |   | .961   |   | .957   |   | .952   |   | .947   |   | .941   |   | .935   |   | 82                                                  |
| 83                                                 |   | .987   |   | .986   |   | .985   |   | .983   |   | .981   |   | .979   |   | .977   |   | .974   |   | .972   |   | .968   |   | .965   |   | .960   |   | .956   |   | .951   |   | .946   |   | .940   |   | 83                                                  |
| 84                                                 |   | .989   |   | .987   |   | .986   |   | .985   |   | .983   |   | .981   |   | .979   |   | .977   |   | .974   |   | .971   |   | .967   |   | .963   |   | .959   |   | .955   |   | .950   |   | .944   |   | 84                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 85                                                 |   | .990   |   | .988   |   | .987   |   | .986   |   | .984   |   | .983   |   | .981   |   | .979   |   | .976   |   | .973   |   | .970   |   | .966   |   | .962   |   | .958   |   | .954   |   | .949   |   | 85                                                  |
| 86                                                 |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .982   |   | .980   |   | .978   |   | .975   |   | .972   |   | .969   |   | .965   |   | .961   |   | .957   |   | .952   |   | 86                                                  |
| 87                                                 |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .986   |   | .984   |   | .982   |   | .980   |   | .977   |   | .975   |   | .972   |   | .968   |   | .965   |   | .960   |   | .956   |   | 87                                                  |
| 88                                                 |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .984   |   | .982   |   | .979   |   | .977   |   | .974   |   | .971   |   | .967   |   | .964   |   | .960   |   | 88                                                  |
| 89                                                 |   | .993   |   | .992   |   | .991   |   | .990   |   | .989   |   | .988   |   | .987   |   | .985   |   | .983   |   | .981   |   | .979   |   | .976   |   | .973   |   | .970   |   | .967   |   | .963   |   | 89                                                  |
|                                               |   | 55     |   | 56     |   | 57     |   | 58     |   | 59     |   | 60     |   | 61     |   | 62     |   | 63     |   | 64     |   | 65     |   | 66     |   | 67     |   | 68     |   | 69     |   | 70     |   |                                                |

 

PENSION WHOSE RETIREMENT AGE IS:

 
| Mortality:      |   | 1971  TPF&C Forecast Mortality Table (Pensioner rate based on 85% male;  Beneficiary rate based on 85% female) |
|-----------------|--------|--------------------------------------------------------------------------------------------------------------------|
| Interest  Rate: |   | 7.5%                                                                                                               |
| Effective:      |   | January 1,  1984                                                                                              |
| Prepared by:    |   | Towers  Perrin                                                                                                     |

 

12

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **70** |   | **71** |   | **72** |   | **73** |   | **74** |   | **75** |   | **76** |   | **77** |   | **78** |   | **79** |   | **80** |   | **81** |   | **82** |   | **83** |   | **84** |   | **85** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 20                                                 |   | .708   |   | .694   |   | .679   |   | .665   |   | .650   |   | .634   |   | .619   |   | .602   |   | .586   |   | .569   |   | .553   |   | .537   |   | .521   |   | .505   |   | .490   |   | .475   |   | 20                                                  |
| 21                                                 |   | .708   |   | .694   |   | .680   |   | .666   |   | .651   |   | .635   |   | .619   |   | .603   |   | .586   |   | .570   |   | .554   |   | .537   |   | .522   |   | .506   |   | .490   |   | .475   |   | 21                                                  |
| 22                                                 |   | .709   |   | .695   |   | .681   |   | .666   |   | .651   |   | .636   |   | .620   |   | .603   |   | .587   |   | .571   |   | .554   |   | .538   |   | .522   |   | .506   |   | .491   |   | .476   |   | 22                                                  |
| 23                                                 |   | .710   |   | .696   |   | .681   |   | .667   |   | .652   |   | .637   |   | .621   |   | .604   |   | .588   |   | .571   |   | .555   |   | .539   |   | .523   |   | .507   |   | .492   |   | .477   |   | 23                                                  |
| 24                                                 |   | .711   |   | .697   |   | .682   |   | .668   |   | .653   |   | .637   |   | .621   |   | .605   |   | .588   |   | .572   |   | .556   |   | .540   |   | .524   |   | .508   |   | .492   |   | .477   |   | 24                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 25                                                 |   | .712   |   | .697   |   | .683   |   | .669   |   | .654   |   | .638   |   | .622   |   | .606   |   | .589   |   | .573   |   | .556   |   | .540   |   | .524   |   | .509   |   | .493   |   | .478   |   | 25                                                  |
| 26                                                 |   | .712   |   | .698   |   | .684   |   | .670   |   | .655   |   | .639   |   | .623   |   | .607   |   | .590   |   | .574   |   | .557   |   | .541   |   | .525   |   | .509   |   | .494   |   | .479   |   | 26                                                  |
| 27                                                 |   | .713   |   | .699   |   | .685   |   | .671   |   | .656   |   | .640   |   | .624   |   | .608   |   | .591   |   | .575   |   | .558   |   | .542   |   | .526   |   | .510   |   | .495   |   | .480   |   | 27                                                  |
| 28                                                 |   | .715   |   | .700   |   | .686   |   | .672   |   | .657   |   | .641   |   | .625   |   | .609   |   | .592   |   | .576   |   | .559   |   | .543   |   | .527   |   | .511   |   | .496   |   | .480   |   | 28                                                  |
| 29                                                 |   | .716   |   | .702   |   | .687   |   | .673   |   | .658   |   | .642   |   | .626   |   | .610   |   | .593   |   | .577   |   | .560   |   | .544   |   | .528   |   | .512   |   | .497   |   | .481   |   | 29                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 30                                                 |   | .717   |   | .703   |   | .688   |   | .674   |   | .659   |   | .643   |   | .627   |   | .611   |   | .594   |   | .578   |   | .561   |   | .545   |   | .529   |   | .513   |   | .498   |   | .482   |   | 30                                                  |
| 31                                                 |   | .718   |   | .704   |   | .690   |   | .675   |   | .660   |   | .645   |   | .628   |   | .612   |   | .595   |   | .579   |   | .562   |   | .546   |   | .530   |   | .514   |   | .499   |   | .483   |   | 31                                                  |
| 32                                                 |   | .719   |   | .705   |   | .691   |   | .676   |   | .661   |   | .646   |   | .630   |   | .613   |   | .597   |   | .580   |   | .564   |   | .547   |   | .531   |   | .515   |   | .500   |   | .485   |   | 32                                                  |
| 33                                                 |   | .721   |   | .707   |   | .692   |   | .678   |   | .663   |   | .647   |   | .631   |   | .615   |   | .598   |   | .582   |   | .565   |   | .549   |   | .533   |   | .517   |   | .501   |   | .486   |   | 33                                                  |
| 34                                                 |   | .722   |   | .708   |   | .694   |   | .679   |   | .664   |   | .649   |   | .633   |   | .616   |   | .600   |   | .583   |   | .566   |   | .550   |   | .534   |   | .518   |   | .502   |   | .487   |   | 34                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 35                                                 |   | .724   |   | .710   |   | .696   |   | .681   |   | .666   |   | .650   |   | .634   |   | .618   |   | .601   |   | .585   |   | .568   |   | .552   |   | .535   |   | .520   |   | .504   |   | .488   |   | 35                                                  |
| 36                                                 |   | .726   |   | .712   |   | .697   |   | .683   |   | .668   |   | .652   |   | .636   |   | .619   |   | .603   |   | .586   |   | .570   |   | .553   |   | .537   |   | .521   |   | .505   |   | .490   |   | 36                                                  |
| 37                                                 |   | .728   |   | .713   |   | .699   |   | .685   |   | .669   |   | .654   |   | .638   |   | .621   |   | .605   |   | .588   |   | .571   |   | .555   |   | .539   |   | .523   |   | .507   |   | .492   |   | 37                                                  |
| 38                                                 |   | .730   |   | .715   |   | .701   |   | .686   |   | .671   |   | .656   |   | .640   |   | .623   |   | .606   |   | .590   |   | .573   |   | .557   |   | .541   |   | .525   |   | .509   |   | .493   |   | 38                                                  |
| 39                                                 |   | .732   |   | .717   |   | .703   |   | .689   |   | .673   |   | .658   |   | .642   |   | .625   |   | .608   |   | .592   |   | .575   |   | .559   |   | .542   |   | .526   |   | .511   |   | .495   |   | 39                                                  |

 

13

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **70** |   | **71** |   | **72** |   | **73**     |   | **74** |   | **75** |   | **76** |   | **77** |   | **78** |   | **79** |   | **80** |   | **81** |   | **82** |   | **83** |   | **84** |   | **85** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 40                                                 |   | .734   |   | .720   |   | .705   |   | .691  |   | .676   |   | .660   |   | .644   |   | .627   |   | .611   |   | .594   |   | .577   |   | .561   |   | .544   |   | .528   |   | .513   |   | .497   |   | 40                                                  |
| 41                                                 |   | .736   |   | .722   |   | .708   |   | .693       |   | .678   |   | .662   |   | .646   |   | .630   |   | .613   |   | .596   |   | .579   |   | .563   |   | .547   |   | .531   |   | .515   |   | .499   |   | 41                                                  |
| 42                                                 |   | .739   |   | .724   |   | .710   |   | .696       |   | .680   |   | .665   |   | .649   |   | .632   |   | .615   |   | .599   |   | .582   |   | .565   |   | .549   |   | .533   |   | .517   |   | .501   |   | 42                                                  |
| 43                                                 |   | .741   |   | .727   |   | .713   |   | .698       |   | .683   |   | .667   |   | .651   |   | .635   |   | .618   |   | .601   |   | .584   |   | .568   |   | .551   |   | .535   |   | .519   |   | .504   |   | 43                                                  |
| 44                                                 |   | .744   |   | .730   |   | .715   |   | .701       |   | .686   |   | .670   |   | .654   |   | .637   |   | .621   |   | .604   |   | .587   |   | .570   |   | .554   |   | .538   |   | .522   |   | .506   |   | 44                                                  |
|                                               |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 45                                                 |   | .747   |   | .733   |   | .718   |   | .704       |   | .689   |   | .673   |   | .657   |   | .640   |   | .623   |   | .607   |   | .590   |   | .573   |   | .557   |   | .541   |   | .525   |   | .509   |   | 45                                                  |
| 46                                                 |   | .750   |   | .736   |   | .721   |   | .707       |   | .692   |   | .676   |   | .660   |   | .643   |   | .626   |   | .610   |   | .593   |   | .576   |   | .560   |   | .543   |   | .527   |   | .512   |   | 46                                                  |
| 47                                                 |   | .753   |   | .739   |   | .725   |   | .710       |   | .695   |   | .679   |   | .663   |   | .647   |   | .630   |   | .613   |   | .596   |   | .579   |   | .563   |   | .547   |   | .530   |   | .515   |   | 47                                                  |
| 48                                                 |   | .756   |   | .742   |   | .728   |   | .713       |   | .698   |   | .683   |   | .667   |   | .650   |   | .633   |   | .616   |   | .599   |   | .583   |   | .566   |   | .550   |   | .534   |   | .518   |   | 48                                                  |
| 49                                                 |   | .760   |   | .746   |   | .732   |   | .717       |   | .702   |   | .686   |   | .670   |   | .654   |   | .637   |   | .620   |   | .603   |   | .586   |   | .570   |   | .553   |   | .537   |   | .521   |   | 49                                                  |
|                                               |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 50                                                 |   | .763   |   | .749   |   | .735   |   | .721       |   | .706   |   | .690   |   | .674   |   | .657   |   | .640   |   | .624   |   | .607   |   | .590   |   | .573   |   | .557   |   | .541   |   | .525   |   | 50                                                  |
| 51                                                 |   | .767   |   | .753   |   | .739   |   | .725       |   | .710   |   | .694   |   | .678   |   | .661   |   | .644   |   | .628   |   | .611   |   | .594   |   | .577   |   | .561   |   | .544   |   | .528   |   | 51                                                  |
| 52                                                 |   | .771   |   | .757   |   | .743   |   | .729       |   | .714   |   | .698   |   | .682   |   | .665   |   | .649   |   | .632   |   | .615   |   | .598   |   | .581   |   | .565   |   | .548   |   | .532   |   | 52                                                  |
| 53                                                 |   | .775   |   | .761   |   | .747   |   | .733       |   | .718   |   | .703   |   | .686   |   | .670   |   | .653   |   | .636   |   | .619   |   | .602   |   | .585   |   | .569   |   | .553   |   | .537   |   | 53                                                  |
| 54                                                 |   | .779   |   | .766   |   | .752   |   | .737       |   | .722   |   | .707   |   | .691   |   | .674   |   | .657   |   | .640   |   | .623   |   | .607   |   | .590   |   | .573   |   | .557   |   | .541   |   | 54                                                  |
|                                               |   | 70     |   | 71     |   | 72     |   | 73         |   | 74     |   | 75     |   | 76     |   | 77     |   | 78     |   | 79     |   | 80     |   | 81     |   | 82     |   | 83     |   | 84     |   | 85     |   |                                                |

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| Mortality:      |   | 1971  TPF&C Forecast Mortality Table (Pensioner rate based on 85% male;  Beneficiary rate based on 85% female) |
|-----------------|--------|--------------------------------------------------------------------------------------------------------------------|
| Interest  Rate: |   | 7.5%                                                                                                               |
| Effective:      |   | January 1,  1984                                                                                              |
| Prepared by:    |   | Towers  Perrin                                                                                                     |

 

14

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **70** |   | **71** |   | **72** |   | **73** |   | **74** |   | **75** |   | **76** |   | **77** |   | **78** |   | **79** |   | **80** |   | **81** |   | **82** |   | **83** |   | **84** |   | **85** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 55                                                 |   | .784   |   | .770   |   | .756   |   | .742   |   | .727   |   | .712   |   | .696   |   | .679   |   | .662   |   | .645   |   | .628   |   | .611   |   | .595   |   | .578   |   | .562   |   | .545   |   | 55                                                  |
| 56                                                 |   | .788   |   | .775   |   | .761   |   | .747   |   | .732   |   | .717   |   | .700   |   | .684   |   | .667   |   | .650   |   | .633   |   | .616   |   | .599   |   | .583   |   | .566   |   | .550   |   | 56                                                  |
| 57                                                 |   | .793   |   | .779   |   | .766   |   | .752   |   | .737   |   | .722   |   | .706   |   | .689   |   | .672   |   | .655   |   | .638   |   | .621   |   | .605   |   | .588   |   | .571   |   | .555   |   | 57                                                  |
| 58                                                 |   | .798   |   | .784   |   | .771   |   | .757   |   | .742   |   | .727   |   | .711   |   | .694   |   | .678   |   | .661   |   | .644   |   | .627   |   | .610   |   | .593   |   | .577   |   | .560   |   | 58                                                  |
| 59                                                 |   | .803   |   | .789   |   | .776   |   | .762   |   | .748   |   | .732   |   | .716   |   | .700   |   | .683   |   | .666   |   | .649   |   | .632   |   | .616   |   | .599   |   | .582   |   | .566   |   | 59                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 60                                                 |   | .808   |   | .795   |   | .781   |   | .768   |   | .753   |   | .738   |   | .722   |   | .706   |   | .689   |   | .672   |   | .655   |   | .638   |   | .621   |   | .605   |   | .588   |   | .572   |   | 60                                                  |
| 61                                                 |   | .813   |   | .800   |   | .787   |   | .773   |   | .759   |   | .744   |   | .728   |   | .712   |   | .695   |   | .678   |   | .661   |   | .644   |   | .628   |   | .611   |   | .594   |   | .578   |   | 61                                                  |
| 62                                                 |   | .819   |   | .806   |   | .793   |   | .779   |   | .765   |   | .750   |   | .734   |   | .718   |   | .702   |   | .685   |   | .668   |   | .651   |   | .634   |   | .617   |   | .601   |   | .584   |   | 62                                                  |
| 63                                                 |   | .824   |   | .812   |   | .799   |   | .785   |   | .771   |   | .756   |   | .741   |   | .725   |   | .708   |   | .691   |   | .675   |   | .658   |   | .641   |   | .624   |   | .607   |   | .591   |   | 63                                                  |
| 64                                                 |   | .830   |   | .818   |   | .805   |   | .792   |   | .778   |   | .763   |   | .748   |   | .732   |   | .715   |   | .699   |   | .682   |   | .665   |   | .648   |   | .631   |   | .615   |   | .598   |   | 64                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 65                                                 |   | .836   |   | .824   |   | .811   |   | .798   |   | .784   |   | .770   |   | .755   |   | .739   |   | .722   |   | .706   |   | .689   |   | .672   |   | .656   |   | .639   |   | .622   |   | .606   |   | 65                                                  |
| 66                                                 |   | .842   |   | .830   |   | .818   |   | .805   |   | .791   |   | .777   |   | .762   |   | .746   |   | .730   |   | .713   |   | .697   |   | .680   |   | .663   |   | .647   |   | .630   |   | .614   |   | 66                                                  |
| 67                                                 |   | .848   |   | .836   |   | .824   |   | .812   |   | .798   |   | .784   |   | .769   |   | .754   |   | .738   |   | .721   |   | .705   |   | .688   |   | .672   |   | .655   |   | .638   |   | .622   |   | 67                                                  |
| 68                                                 |   | .854   |   | .843   |   | .831   |   | .819   |   | .806   |   | .792   |   | .777   |   | .762   |   | .746   |   | .730   |   | .713   |   | .697   |   | .680   |   | .663   |   | .647   |   | .630   |   | 68                                                  |
| 69                                                 |   | .861   |   | .849   |   | .838   |   | .826   |   | .813   |   | .799   |   | .785   |   | .770   |   | .754   |   | .738   |   | .722   |   | .705   |   | .689   |   | .672   |   | .656   |   | .639   |   | 69                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 70                                                 |   | .867   |   | .856   |   | .845   |   | .833   |   | .820   |   | .807   |   | .793   |   | .778   |   | .762   |   | .747   |   | .730   |   | .714   |   | .698   |   | .682   |   | .665   |   | .649   |   | 70                                                  |
| 71                                                 |   | .873   |   | .863   |   | .852   |   | .840   |   | .828   |   | .815   |   | .801   |   | .786   |   | .771   |   | .755   |   | .739   |   | .723   |   | .707   |   | .691   |   | .675   |   | .658   |   | 71                                                  |
| 72                                                 |   | .879   |   | .869   |   | .859   |   | .847   |   | .835   |   | .823   |   | .809   |   | .795   |   | .780   |   | .764   |   | .749   |   | .733   |   | .717   |   | .701   |   | .684   |   | .668   |   | 72                                                  |
| 73                                                 |   | .886   |   | .876   |   | .865   |   | .855   |   | .843   |   | .831   |   | .817   |   | .803   |   | .788   |   | .773   |   | .758   |   | .742   |   | .727   |   | .711   |   | .694   |   | .678   |   | 73                                                  |
| 74                                                 |   | .892   |   | .882   |   | .872   |   | .862   |   | .850   |   | .838   |   | .825   |   | .812   |   | .797   |   | .782   |   | .767   |   | .752   |   | .736   |   | .721   |   | .705   |   | .689   |   | 74                                                  |

 

15

----

 

Addendum D

MRP/RIP 50% Contingent Annuitant Factors

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| **BENEFICIARY'S  AGE AT  PENSIONER'S  RETIREMENT** |   | **70** |   | **71** |   | **72** |   | **73** |   | **74** |   | **75** |   | **76** |   | **77** |   | **78** |   | **79** |   | **80** |   | **81** |   | **82** |   | **83** |   | **84** |   | **85** |   | **BENEFICIARY'S  AGE AT   PENSIONER'S  RETIREMENT** |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------|
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 75                                                 |   | .898   |   | .889   |   | .879   |   | .869   |   | .858   |   | .846   |   | .834   |   | .820   |   | .806   |   | .792   |   | .777   |   | .762   |   | .746   |   | .731   |   | .715   |   | .699   |   | 75                                                  |
| 76                                                 |   | .904   |   | .895   |   | .886   |   | .876   |   | .865   |   | .854   |   | .842   |   | .829   |   | .815   |   | .801   |   | .786   |   | .771   |   | .756   |   | .741   |   | .725   |   | .710   |   | 76                                                  |
| 77                                                 |   | .909   |   | .901   |   | .892   |   | .883   |   | .872   |   | .862   |   | .850   |   | .837   |   | .824   |   | .810   |   | .796   |   | .781   |   | .766   |   | .751   |   | .736   |   | .721   |   | 77                                                  |
| 78                                                 |   | .915   |   | .907   |   | .898   |   | .889   |   | .880   |   | .869   |   | .858   |   | .845   |   | .832   |   | .819   |   | .805   |   | .791   |   | .776   |   | .762   |   | .747   |   | .731   |   | 78                                                  |
| 79                                                 |   | .920   |   | .912   |   | .904   |   | .896   |   | .886   |   | .876   |   | .865   |   | .853   |   | .841   |   | .828   |   | .814   |   | .801   |   | .786   |   | .772   |   | .757   |   | .742   |   | 79                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 80                                                 |   | .925   |   | .918   |   | .910   |   | .902   |   | .893   |   | .884   |   | .873   |   | .861   |   | .849   |   | .837   |   | .824   |   | .810   |   | .796   |   | .782   |   | .768   |   | .753   |   | 80                                                  |
| 81                                                 |   | .930   |   | .923   |   | .916   |   | .908   |   | .900   |   | .891   |   | .880   |   | .869   |   | .858   |   | .846   |   | .833   |   | .820   |   | .807   |   | .793   |   | .779   |   | .764   |   | 81                                                  |
| 82                                                 |   | .935   |   | .929   |   | .922   |   | .914   |   | .906   |   | .898   |   | .888   |   | .877   |   | .866   |   | .854   |   | .842   |   | .830   |   | .817   |   | .803   |   | .790   |   | .776   |   | 82                                                  |
| 83                                                 |   | .940   |   | .934   |   | .927   |   | .920   |   | .913   |   | .904   |   | .895   |   | .885   |   | .874   |   | .863   |   | .851   |   | .839   |   | .827   |   | .814   |   | .800   |   | .787   |   | 83                                                  |
| 84                                                 |   | .944   |   | .939   |   | .932   |   | .926   |   | .919   |   | .911   |   | .902   |   | .892   |   | .882   |   | .871   |   | .860   |   | .849   |   | .836   |   | .824   |   | .811   |   | .798   |   | 84                                                  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                                |
| 85                                                 |   | .949   |   | .943   |   | .937   |   | .931   |   | .924   |   | .917   |   | .909   |   | .900   |   | .890   |   | .880   |   | .869   |   | .858   |   | .846   |   | .834   |   | .821   |   | .809   |   | 85                                                  |
| 86                                                 |   | .952   |   | .947   |   | .942   |   | .936   |   | .930   |   | .923   |   | .915   |   | .906   |   | .897   |   | .887   |   | .877   |   | .866   |   | .855   |   | .843   |   | .831   |   | .819   |   | 86                                                  |
| 87                                                 |   | .956   |   | .951   |   | .946   |   | .941   |   | .935   |   | .928   |   | .921   |   | .913   |   | .904   |   | .895   |   | .885   |   | .875   |   | .864   |   | .853   |   | .841   |   | .829   |   | 87                                                  |
| 88                                                 |   | .960   |   | .955   |   | .950   |   | .945   |   | .940   |   | .934   |   | .927   |   | .919   |   | .910   |   | .902   |   | .892   |   | .882   |   | .872   |   | .862   |   | .850   |   | .839   |   | 88                                                  |
| 89                                                 |   | .963   |   | .959   |   | .954   |   | .949   |   | .944   |   | .938   |   | .932   |   | .925   |   | .917   |   | .908   |   | .899   |   | .890   |   | .880   |   | .870   |   | .859   |   | .848   |   | 89                                                  |
|                                               |   | 70     |   | 71     |   | 72     |   | 73     |   | 74     |   | 75     |   | 76     |   | 77     |   | 78     |   | 79     |   | 80     |   | 81     |   | 82     |   | 83     |   | 84     |   | 85     |   |                                                |

 

PENSIONER WHOSE RETIREMENT AGE IS:

 
| Mortality:      |   | 1971  TPF&C Forecast Mortality Table (Pensioner rate based on 85% male;  Beneficiary rate based on 85% female) |
|-----------------|--------|--------------------------------------------------------------------------------------------------------------------|
| Interest  Rate: |   | 7.5%                                                                                                               |
| Effective:      |   | January 1,  1984                                                                                              |
| Prepared by:    |   | Towers  Perrin                                                                                                     |

 

16

----

 

**ADDENDUM E**

 

**Level Income Option — Factors Using UP84Mortality and 7.5% Interest**

 
| **Age** |   | **0/12** |   | **1/12** |   | **2/12** |   | **3/12** |   | **4/12** |   | **5/12** |   | **6/12** |   | **7/12** |   | **8/12** |   | **9/12** |   | **10/12** |   | **11/12** |   |
|---------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|-----------|--------|-----------|--------|
|    |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |      |   |      |   |
| 50      |   | 0.30410  |   | 0.30651  |   | 0.30892  |   | 0.31133  |   | 0.31374  |   | 0.31615  |   | 0.31856  |   | 0.32097  |   | 0.32338  |   | 0.32579  |   | 0.32820   |   | 0.33061   |   |
| 51      |   | 0.33302  |   | 0.33570  |   | 0.33837  |   | 0.34105  |   | 0.34373  |   | 0.34641  |   | 0.34908  |   | 0.35176  |   | 0.35444  |   | 0.35712  |   | 0.35979   |   | 0.36247   |   |
| 52      |   | 0.36515  |   | 0.36813  |   | 0.37111  |   | 0.37408  |   | 0.37706  |   | 0.38004  |   | 0.38302  |   | 0.38600  |   | 0.38898  |   | 0.39195  |   | 0.39493   |   | 0.39791   |   |
| 53      |   | 0.40089  |   | 0.40421  |   | 0.40753  |   | 0.41085  |   | 0.41417  |   | 0.41749  |   | 0.42080  |   | 0.42412  |   | 0.42744  |   | 0.43076  |   | 0.43408   |   | 0.43740   |   |
| 54      |   | 0.44072  |   | 0.44443  |   | 0.44814  |   | 0.45185  |   | 0.45556  |   | 0.45927  |   | 0.46297  |   | 0.46668  |   | 0.47039  |   | 0.47410  |   | 0.47781   |   | 0.48152   |   |
| 55      |   | 0.48523  |   | 0.48938  |   | 0.49353  |   | 0.49768  |   | 0.50184  |   | 0.50599  |   | 0.51014  |   | 0.51429  |   | 0.51844  |   | 0.52259  |   | 0.52675   |   | 0.53090   |   |
| 56      |   | 0.53505  |   | 0.53971  |   | 0.54437  |   | 0.54903  |   | 0.55369  |   | 0.55835  |   | 0.56301  |   | 0.56767  |   | 0.57233  |   | 0.57699  |   | 0.58165   |   | 0.58631   |   |
| 57      |   | 0.59097  |   | 0.59621  |   | 0.60146  |   | 0.60670  |   | 0.61194  |   | 0.61719  |   | 0.62243  |   | 0.62767  |   | 0.63292  |   | 0.63816  |   | 0.64340   |   | 0.64865   |   |
| 58      |   | 0.65389  |   | 0.65980  |   | 0.66572  |   | 0.67163  |   | 0.67755  |   | 0.68346  |   | 0.68938  |   | 0.69529  |   | 0.70121  |   | 0.70712  |   | 0.71304   |   | 0.71895   |   |
| 59      |   | 0.72487  |   | 0.73156  |   | 0.73825  |   | 0.74494  |   | 0.75164  |   | 0.75833  |   | 0.76502  |   | 0.77171  |   | 0.77840  |   | 0.78509  |   | 0.79179   |   | 0.79848   |   |
| 60      |   | 0.80517  |   | 0.81276  |   | 0.82035  |   | 0.82795  |   | 0.83554  |   | 0.84313  |   | 0.85072  |   | 0.85832  |   | 0.86591  |   | 0.87350  |   | 0.88109   |   | 0.88869   |   |
| 61      |   | 0.89628  |   | 0.90492  |   | 0.91357  |   | 0.92221  |   | 0.93085  |   | 0.93950  |   | 0.94814  |   | 0.95678  |   | 0.96543  |   | 0.97407  |   | 0.98271   |   | 0.99136   |   |
| 62      |   | 1.00000  |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |      |   |      |   |

 
| Mortality: |   | 1971  TPF&C Forecast Mortality Table (85% male rate, 15% female rate) |
|------------|--------|---------------------------------------------------------------------------|
| Interest:  |   | 7.5%                                                                      |

 

1

----

 

**ADDENDUM F**

 

**MRP/RIP Level Income Option Factors**

 
| **Age** |   | **0/12** |   | **1/12** |   | **2/12** |   | **3/12** |   | **4/12** |   | **5/12** |   | **6/12** |   | **7/12** |   | **8/12** |   | **9/12** |   | **10/12** |   | **11/12** |   |
|---------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|-----------|--------|-----------|--------|
|    |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |      |   |      |   |
| 50      |   | 0.30906  |   | 0.31148  |   | 0.31390  |   | 0.31632  |   | 0.31875  |   | 0.32117  |   | 0.32359  |   | 0.32601  |   | 0.32843  |   | 0.33085  |   | 0.33328   |   | 0.33570   |   |
| 51      |   | 0.33812  |   | 0.34080  |   | 0.34349  |   | 0.34617  |   | 0.34886  |   | 0.35154  |   | 0.35423  |   | 0.35691  |   | 0.35960  |   | 0.36228  |   | 0.36497   |   | 0.36765   |   |
| 52      |   | 0.37034  |   | 0.37332  |   | 0.37630  |   | 0.37929  |   | 0.38227  |   | 0.38525  |   | 0.38823  |   | 0.39122  |   | 0.39420  |   | 0.39718  |   | 0.40016   |   | 0.40315   |   |
| 53      |   | 0.40613  |   | 0.40945  |   | 0.41277  |   | 0.41608  |   | 0.41940  |   | 0.42272  |   | 0.42604  |   | 0.42936  |   | 0.43268  |   | 0.43599  |   | 0.43931   |   | 0.44263   |   |
| 54      |   | 0.44595  |   | 0.44965  |   | 0.45335  |   | 0.45705  |   | 0.46075  |   | 0.46445  |   | 0.46815  |   | 0.47186  |   | 0.47556  |   | 0.47926  |   | 0.48296   |   | 0.48666   |   |
| 55      |   | 0.49036  |   | 0.49450  |   | 0.49863  |   | 0.50277  |   | 0.50690  |   | 0.51104  |   | 0.51517  |   | 0.51931  |   | 0.52345  |   | 0.52758  |   | 0.53172   |   | 0.53585   |   |
| 56      |   | 0.53999  |   | 0.54462  |   | 0.54926  |   | 0.55389  |   | 0.55852  |   | 0.56316  |   | 0.56779  |   | 0.57242  |   | 0.57706  |   | 0.58169  |   | 0.58632   |   | 0.59096   |   |
| 57      |   | 0.59559  |   | 0.60079  |   | 0.60599  |   | 0.61120  |   | 0.61640  |   | 0.62160  |   | 0.62680  |   | 0.63201  |   | 0.63721  |   | 0.64241  |   | 0.64761   |   | 0.65282   |   |
| 58      |   | 0.65802  |   | 0.66388  |   | 0.66974  |   | 0.67560  |   | 0.68146  |   | 0.68732  |   | 0.69317  |   | 0.69903  |   | 0.70489  |   | 0.71075  |   | 0.71661   |   | 0.72247   |   |
| 59      |   | 0.72833  |   | 0.73495  |   | 0.74157  |   | 0.74818  |   | 0.75480  |   | 0.76142  |   | 0.76804  |   | 0.77466  |   | 0.78128  |   | 0.78789  |   | 0.79451   |   | 0.80113   |   |
| 60      |   | 0.80775  |   | 0.81525  |   | 0.82274  |   | 0.83024  |   | 0.83774  |   | 0.84524  |   | 0.85273  |   | 0.86023  |   | 0.86773  |   | 0.87523  |   | 0.88272   |   | 0.89022   |   |
| 61      |   | 0.89772  |   | 0.90624  |   | 0.91477  |   | 0.92329  |   | 0.93181  |   | 0.94034  |   | 0.94886  |   | 0.95738  |   | 0.96591  |   | 0.97443  |   | 0.98295   |   | 0.99148   |   |
| 62      |   | 1.00000  |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |     |   |      |   |      |   |

 
| Mortality: |   | 1971  TPF&C Forecast Mortality Table (85% male rate, 15% female rate) |
|------------|--------|---------------------------------------------------------------------------|
| Interest:  |   | 7.5%                                                                      |

 

1

----