Genuine Parts Company Death Benefit Plan. Summary Plan Description

Transcription

1 Genuine Parts Company Death Benefit Plan Summary Plan Description Effective January 1, 2009

2 Death Benefit Plan Find It Fast Page Important Notice... 2 Highlights... 4 Who s Covered... 4 Eligibility... 4 Credited Service... 5 Group 1 Employees... 5 Group 2 Employees... 6 Benefit Payments... 7 Group 1 Employees... 7 Group 2 Employees... 8 Form of Payment... 8 Lump Sum Payments... 8 When Benefits May Begin... 9 When Coverage Ends Filing A Claim Other Things You Should Know Forfeited Payments No Contract of Employment Equal Treatment Policy Statement of ERISA Rights About This Document For More Information About This Plan

3 Important Notice GPC Death Benefit Plan Changes Effective January 1, 2009 Benefits from the GPC Death Benefit Plan are based on your participation in the GPC Pension Plan and the Credited Service you have in the GPC Pension Plan. Genuine Parts Company implemented changes to the GPC Pension Plan effective January 1, 2009 that also impact the Death Benefit Plan effective January 1, With the Pension Plan changes, certain eligible employees, called Rule of 70 employees, were offered a retirement program decision in August All other eligible employees, called Non-Rule of 70 employees, continued participation in the GPC Pension Plan, but with Credited Service frozen as of December 31, Eligibility for the retirement program decision was based on an eligible employee s age and years of Credited Service as of December 31, Rule of 70 employees and Non-Rule of 70 employees are defined as follows: Rule of 70 employees: eligible employees who are employed on May 31, 2008 (and continuously thereafter through December 31, 2008) with age plus years of Credited Service under the Plan (ignoring partial months) equal to 70 or more as of December 31, 2008 and with at least five full years of Credited Service as of December 31, A Rule of 70 employee cannot be receiving payments from the GPC Pension Plan on June 1, 2008 (and continuously thereafter through December 31, 2008). For example a rehired retiree who remains in pay status under the GPC Pension Plan is not a Rule of 70 employee. In addition, if a Participant became Permanently Disabled on or after January 1, 2000, the Participant is not a Rule of 70 employee. If a Rule of 70 employee terminates employment, he or she is no longer considered a Rule of 70 Employee even if the employee is rehired. Non-Rule of 70 employees: other eligible employees who did not meet the eligibility criteria for Rule of 70 employees

4 How to Use This Summary Plan Description (SPD) For the purposes of this SPD, employees are categorized as either Group 1 or Group 2 based on the Pension Plan changes that went into effect January 1, Accordingly, certain sections of this SPD are divided by Group 1 and Group 2 in order to describe the death benefits for each specific group. It is important to refer to the group that applies to you when reading this SPD. If you are uncertain whether you are a Group 1 or Group 2 employee, please contact the Employee Service Center at Group 1 and Group 2 Employees Group 1 and Group 2 employees are defined as follows: Group 1: o Rule of 70 employees who chose the current retirement plans, which included full active participation in the GPC Pension Plan, and o Rule of 70 employees who did not make a choice and are deemed to have chosen the current retirement plans, which included full active participation in the GPC Pension Plan. Group 2: o Rule of 70 employees who chose the New Retirement Program, which included participation in the GPC Pension Plan with Credited Service frozen as of December 31, 2008, and o Non-Rule of 70 employees who continued participation and eligibility in the GPC Pension Plan with Credited Service frozen as of December 31, o Rule of 70 employees who were part of Group 1 but who terminate employment and are subsequently rehired. Special Situations Special rules affect employees in certain situations. These employees include rehires, employees on long-term disability and employees on military leave. If any of these situations apply to you or have applied to you in the past, please contact the Employee Service Center at for specific information about your benefits

5 Highlights The GPC Death Benefit Plan provides a benefit to your eligible beneficiaries if you die before retirement. Benefits under this plan are based on your years of Credited Service and your earnings. This benefit is provided in addition to other group life insurance and other company-sponsored benefits. However, benefits under this plan, if elected, replace and are not in addition to a death benefit, if any, provided by the GPC Pension Plan. This document references the Genuine Parts Company (GPC) Pension Plan, also known as the Pension Plan. Who's Covered Your beneficiary is automatically eligible for benefits under this plan. For a married participant, the beneficiary is the participant s spouse. Your spouse is the person you married in a religious or civil ceremony recognized under federal law as consistent with the Federal Defense of Marriage Act. For a non-married participant, the beneficiary will be either your descendants, or your estate, if you have no descendants. Eligibility Your beneficiary is eligible for benefits under the GPC Death Benefit Plan when the following conditions are met: You were originally hired by an Eligible Employer prior to March 1, 2008 (see end of this SPD for the list of Eligible Employers) and remain employed by an Eligible Employer until your death. You are an eligible participant in the GPC Pension Plan, You have earned three or more years of Credited Service under the GPC Pension Plan, You die before terminating your employment or while on an authorized leave of absence, disability, workers compensation or other type of absence approved by the Committee and before the date your Pension Plan retirement benefit begins, Your beneficiary is not entitled to, or has waived the right to, the death benefits under the Pension Plan (The death benefits available under the GPC Pension Plan are described in the Death Benefits topic of the GPC Pension Plan Summary Plan Description.), and - 4 -

6 Your beneficiary timely applies for benefits under this plan no later than the last day of the third month following the date GPC Retirement Plan Services receives notification of your death. If you terminate employment you will not be able to participate in this Plan even if you are later rehired. You should note that your beneficiary is not eligible for death benefits if you're: Not eligible to participate in the GPC Pension Plan, A member of a collective bargaining unit (unless your agreement allows you to participate in this plan), A nonresident alien and do not earn income in the United States, Classified as an independent contractor or leased employee. Your beneficiary is also ineligible for death benefits under this plan if as of January 1, 2009 you have less than three years of Credited Service under the GPC Pension Plan. Credited Service Group 1 Employees In general, Credited Service is your total years and months of employment with your employer. For certain employers, Credited Service begins only after the employer has adopted the GPC Pension Plan. You may contact the GPC Employee Service Center if you have questions regarding your years of Credited Service. If your employment with the company is interrupted for less than 12 months, the time you are away will also count as credited service. In addition, Credited Service also includes certain military leaves of absence, as well as certain periods of time you are approved for benefits under the GPC Long Term Disability Plan. However, you cannot accrue more than 24 months of additional Credited Service during any period of long-term disability. Credited Service does not include the years and months of service in which you were covered by a collective bargaining unit s retirement plan to which your employer contributed

7 Credited Service does not include any period of service which precedes a break in service (see below) if, as of the first day of the break in service, you have less than three years of Credited Service. If you terminate employment, you will no longer be eligible to earn additional Credited Service even if you are later rehired. Break in Service A break in service occurs when you leave your employer for a period of seven consecutive years or more. If you have a break in service, but complete at least three years of Credited Service before the break in service occurs, your previous service will be reinstated on your rehire date. If you have less than three years of Credited Service at the time you leave your employer, your previous service will be reinstated if you return before a break in service occurs. Group 2 Employees In general, Credited Service is your total years and months of employment with your employer as of December 31, For certain employers, Credited Service begins only after the employer has adopted the GPC Pension Plan. You may contact the GPC Employee Service Center if you have questions regarding your years of Credited Service. If at any time before January 1, 2009, your employment with the Company was interrupted for less than 12 months, the time you are away will also count as Credited Service. In addition, prior to January 1, 2009, Credited Service also included certain military leaves of absence, as well as the period of time you may have been approved for benefits under the GPC Long Term Disability Plan (not to exceed more than 24 months of additional Credited Service during any period of Long Term Disability). However, you cannot accrue more Credited Service after December 31, Credited Service does not include the years and months of service in which you were covered by a collective bargaining unit s retirement plan to which your employer contributed. Credited Service does not include any period of service which precedes a break in service (see below) if, as of the first day of the break in service, you had less than three years of Credited Service

8 Break in Service A break in service occurs when you leave your employer for a period of seven consecutive years or more. If you had a break in service prior to January 1, 2009, but completed at least three years of Credited Service before the break in service occurred, your previous service was reinstated on your rehire date. Prior to January 1, 2009, if you had less than three years of Credited Service at the time you left your employer, your previous service was reinstated if you returned before a break in service occurred. Benefit Payments The death benefit under this plan that your beneficiary will receive is a monthly amount that is payable for a specified period and is equal to the greater of: 30% of your current monthly earnings, or 30% of your average earnings. Earnings include your total compensation, including wages, salaries, commissions, overtime and bonuses as well as certain welfare benefits (vacation, bereavement, short term disability and workers compensation). Earnings also include before tax contributions to the Genuine Partnership Plan or GPC 401(k) Savings Plan and other GPC benefit plans. Earnings do not include reimbursements or other expense allowances, fringe benefits, moving expenses, awards, prizes, referral bonuses, deferred compensation or welfare benefits not listed above. For any plan year, which runs from January 1 through December 31, earnings cannot exceed certain limits as modified periodically by the Internal Revenue Service according to cost of living adjustments. Average earnings is the average of monthly earnings for the five highest of the last ten calendar years that you were employed by GPC Group 1 Employees For purposes of calculating this plan's benefits, the specified period of time is based on your years of Credited Service as outlined in the chart below. Years of Credited Service Duration of Payments At least 3 years, but less than 10 years 12 1/2 months At least 10 years, but less than 15 years 25 months 15 years or more 50 months - 7 -

9 Group 2 Employees For purposes of calculating this plan's benefits, the specified period of time is based on your years of Credited Service as of December 31, 2008 as outlined in the chart below. Years of Credited Service as of Duration of Payments December 31, 2008 At least 3 years, but less than 10 years 12 1/2 months At least 10 years, but less than 15 years 25 months 15 years or more 50 months Form of Payment Payments under the plan shall be made in either a monthly payment, in an amount as described above (the 13 th month, in the case of a beneficiary eligible for 12 ½ months of payments, shall be 50% of the monthly amount), or in a single lump sum payment as described below. The beneficiary shall elect the form of payment on the election forms and other documentation required by the Committee (see description of eligibility requirements above). If the spouse of a married participant does not timely and properly submit the applicable election forms and documentation for benefits under this plan (including, but not limited to, the waiver of death benefits under the GPC Pension Plan), the spouse will be deemed to have elected the applicable benefit under the GPC Pension Plan, if any, and the spouse will not be eligible to receive any death benefit under this plan. If the beneficiary of an unmarried participant does not timely and properly submit the applicable election forms and documentation for benefits under this plan, the beneficiary will be deemed to have elected to receive a lump sum distribution of the death benefit under this plan. Lump Sum Payments Using the higher of 30% of your current monthly earnings or 30% of your average earnings and the duration of payments based on years of Credited Service, the benefit paid to your beneficiary is converted to a lump sum payment. This lump sum payment is the actuarial equivalent of receiving monthly benefit payments over the specified period of time. The interest rate and actuarial assumptions used in the Death Benefit Plan are identical to those used to calculate a - 8 -

10 lump sum payment in effect under the GPC Pension Plan on the first of the month following your death. An Example An employee, whose beneficiary is eligible to participate in this plan, dies with 11 years of Credited Service. The employee's current monthly earnings were $3,000, which was higher than the employee's average earnings. The beneficiary timely elects benefits under this plan in the form of a lump sum payment. The death benefit for the employee's beneficiary will be calculated and converted to a lump sum payment as follows: $3,000 x.30 = $900 monthly death benefit $900 x 25 months x actuarial factor used to convert a series of monthly payments to a lump sum = benefit under this plan. Generally, the actuarial factor will be between.85 and.95, depending on the duration of payments (12 1/2, 25 or 50 months) and prevailing interest rates. The actuarial factor is always less than 1.0 because future monthly payments are always discounted when they are converted to present dollars for a lump sum payment. When Benefits May Begin Benefit payments will be made on the first day of the month that is at least 30 days after you complete election forms. However, if your beneficiary does not make a benefit election by the last day of the third month after GPC Retirement Plan Services receives notice of your death, the following occurs: If you were married, your beneficiary (your spouse) will lose the right to a death benefit under this plan, and will be deemed to have elected the death benefits, if any, payable under the GPC Pension Plan. If you were not married, your beneficiary (your descendents or your estate) will automatically receive a lump sum distribution of the death benefit under the GPC Death Benefit Plan. The lump sum distribution will be paid on the first day of the fourth month after GPC Retirement Plan Services receives notice of your death

11 When Coverage Ends Coverage under this plan ends on the earliest of the following events: Your employment ends, You no longer meet the eligibility requirements described in this summary plan description, The plan is terminated, or The plan is changed, and the change ends your coverage or eligibility. Filing a Claim Upon your death, your beneficiary must contact the plan administrator to request the necessary claim forms. Your beneficiary may file a claim for benefits under the plan by submitting to the Committee a written statement describing the claim and any additional pertinent information. The plan administrator has 90 days after receiving the claim to allow or deny the claim in whole or in part. Under certain circumstances, the plan administrator may require an additional 90 days to make the decision. In order to do so, the plan administrator must notify your beneficiary in writing within the first 90-day period. If all or part of the claim is denied, your beneficiary will receive a written response that includes the specific reasons for the denial, the specific plan provisions upon which the denial is based and the procedure used to review claims. Your beneficiary will be told what additional information is required, if any, and why the information is necessary. If the Plan Administrator fails to provide notice of its decision on the Beneficiary s claim for benefits within the 90 day period (or, under special circumstances, within the 180 day period), the claim is deemed denied on the last day of such period to the extent the claim is not allowed by the Plan Administrator. If, after following the process described above, you still feel your claim was handled incorrectly, you may appeal this in writing to the Committee. You must file an appeal within 90 days of the date you receive notice of your claim denial or the date your claim is deemed denied. Your written appeal should state the reasons supporting your claim, the reasons why you believe your claim should not have been denied, and any other issues or comments that you feel are appropriate with respect to your claim. In addition, you may send a written request to the Committee for a copy of the pertinent plan documents

12 The Committee must make a formal review of your claim, and you will receive a written response within 60 days after the Committee receives your request for review, unless special circumstances require more time. In that case, 120 days from the date of receipt of your appeal is allowed, but in no case will extend beyond such 120 day period. If the additional time is needed, you will be notified in writing before the end of the first 60-day period. If your formal appeal is denied, the written response will include specific reasons for the denial and will cite the specific plan provisions upon which the denial is based. If the Beneficiary is not notified of the Plan Administrator s decision within the 60-day period (or the 120 day period, if applicable), the appeal is deemed denied. You cannot bring legal action against the Committee or the employer without first pursuing these claims procedures. Other Things You Should Know Forfeited Payments If the plan administrator makes a reasonable effort to locate or ascertain the identity of your beneficiary but is unable to do so, all payments will be forfeited seven years after the date they first became due. No Contract of Employment This document is not intended in any way to create an employment contract. No verbal statements by supervisors or management can alter the benefits described in this document or create an employment contract. Equal Treatment Policy The design, development and administration of this benefit plan are consistently operated with a policy of equal treatment for all persons, without regard to age, race, color, sex, religion, national origin, handicap, veteran status, citizenship status or any other protected status. Statement of ERISA Rights As a participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). Please see additional information about your rights under ERISA in the Administrative Information Summary Plan Description

13 About This Document This document summarizes the key features of the GPC Death Benefit Plan, which apply to eligible employees of GPC. When benefits are provided through an insurance contract (as specified herein), the formal insurance contracts and certificates will govern the benefits payable hereunder and in the event of any conflict between the contents of this document and the formal plan contracts or insurance certificates. The contents of this document supercede all earlier material that may have been distributed with respect to the benefits described in this document. Genuine Parts Company, as plan sponsor, reserves the right to terminate, suspend, withdraw, amend or modify this plan at any time for any reason for any class of participants. If the plan is terminated or changed in any way, you and other participants may not receive benefits as described in this document. For More Information If you have questions about the GPC Death Benefit Plan or need more information than this document contains, contact GPC Retirement Plan Services or your Human Resources Department. About This Plan Plan Name Genuine Parts Company Death Benefit Plan Plan Sponsor Genuine Parts Company 2999 Circle 75 Parkway Atlanta, Georgia Employer Identification Number Plan Number 511 Type of Plan A welfare benefit plan

14 Plan Administrator Pension and Benefits Committee Genuine Parts Company 2999 Circle 75 Parkway Atlanta, GA (770) Claims Administrator GPC Retirement Plan Services Hewitt Associates P.O. Box Orlando, FL Eligible Employers Eligible employers include: Genuine Parts Company, Altrom, US, Automotive Parts Group Balkamp, Inc., Rayloc, EIS Motion Industries, Inc., S.P. Richards Co., and other designated participating employers as determined by the plan document. Plan Funding The plan is self-insured and funded by contributions from Genuine Parts Company. Plan Year January 1 to December 31 Agent for Service of Legal Process Sr. Vice President Corporate Counsel Genuine Parts Company 2999 Circle 75 Parkway Atlanta, GA (770) Service of legal process may also be made upon the plan trustee or plan administrator