Administration > Cash Balance Plan
Cash Balance Plan
Top-Heavy Provisions
As required by law, if you are covered by the Cash Balance Plan, alternate plan provisions go into effect if the plan becomes "top heavy." The plan is top heavy if more than 60% of the account balances relate to key employees. Key employees include Company officers and highly-paid employees. You will be notified if the plan becomes top heavy.
Management of Pension Funds
All pension contributions made by the Company are deposited in a trust that is maintained by the plan. The assets of this trust fund are used to pay plan benefits to participants and beneficiaries. The trustee is:
The Northern Trust Company of Chicago
50 South LaSalle Street
Chicago, Illinois 60675
The plan provides that the fund be valued and audited once each year by a certified public accountant. A statement of the audit results is available for inspection at the Company headquarters.
Future of the Pension Plan
The Company expects the plan to continue in existence for your benefit in future years. If, however, for any reason the plan should be discontinued, assets of the trust fund necessary to pay benefits under the plan will belong to the active and retired employees as provided in the plan. None of the assets in the trust fund can go back to the Company until all of the plan's benefit obligations are met in full.
If the Plan Ends
If the plan is terminated, plan assets will be allocated in priority categories according to the law, as described below. The benefits allocated to you will be 100% vested as of the plan termination date, to the extent plan assets are sufficient. If the Company is dissolved, the plan will terminate as of the date of dissolution. If there is a partial termination of the plan affecting you, you will become 100% vested in the plan.
Distribution of Benefits
When terminating the plan, the Company will notify the Internal Revenue Service (IRS) and the Pension Benefit Guaranty Corporation (PBGC). Once the necessary approvals have been received, plan benefits will be paid in the order prescribed by law. If for any reason the funds are insufficient to pay full benefits to all participants, funds will be allocated in this order:
1. Benefits to retirees, surviving spouses, and other beneficiaries of retirees, and spouses of participants who died before retirement but with a pre retirement survivor option in effect.

To qualify for benefits in this category, retirees, spouses, or beneficiaries must already have been receiving, or have been eligible to receive benefits, for at least three years before plan termination. (This includes active employees who were eligible to retire at least three years before plan termination.) The benefit paid will be the smallest benefit you received during the five-year period ending on the plan termination date.
2. Benefits to retirees, surviving spouses, and other beneficiaries who began receiving benefits within three years of plan termination, and active employees who could have retired and begun receiving benefits within that time. This category also includes vested active employees who left with eligibility for deferred vested benefits.
3. All other accrued benefits. If full benefits cannot be paid under any of the above categories, payments will be made on a pro-rata basis as prescribed by law.
Mergers, Consolidations, or Transfers
If the plan is merged, consolidated, or plan assets are transferred to another plan, your current accrued benefit will be protected. Your accrued benefit under the new plan, immediately after the changes, would at least equal the amount you would have been entitled to if the Plan had been terminated just before the change.
Pension Benefit Guaranty Corporation
Your pension benefits under this plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. If the plan terminates (ends) without enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most people receive all of the pension benefits they would have received under their plan, but some people may lose certain benefits.
The PBGC guarantee generally covers (1) normal and early retirement benefits; (2) disability benefits if you become disabled before the plan terminates; and (3) certain benefits for your survivors. The PBGC guarantee generally does not cover: (1) benefits greater than the maximum guaranteed amount set by law for the year in which the plan terminates; (2) some or all of benefit increases and new benefits based on plan provisions that have been in place for fewer than five years at the time the plan terminates; (3) benefits that are not vested because you have not worked long enough for the Company; (4) benefits for which you have not met all of the requirements at the time the plan terminates; (5) certain early retirement payments (such as supplemental benefits that stop you when you become eligible for Social Security) that result in an early retirement monthly benefit greater than your monthly benefit at the plan's normal retirement age; and (6) non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay, and severance pay.
Even if certain of your benefits are not guaranteed, you still may receive some of those benefits from the PBGC depending on how much money the plan has and how much the PBGC collects from employers.
For more information about the PBGC and the benefits it guarantees, ask your Plan Administrator or contact the PBGC's at 1-202-326-4000 (not a toll-free number). TTY/TDD users may call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to 1-202-326-4000. You may also contact PBGC at:
Technical Assistance Division
1200 K Street
N.W., Suite 930
Washington, D.C. 20005-4026
Additional information about the PBGC's pension insurance program is available through the PBGC's website on the internet at