EG&G TECHNICAL SERVICES, INC. EMPLOYEES RETIREMENT PLAN SUMMARY PLAN DESCRIPTION

Transcription

1 EG&G TECHNICAL SERVICES, INC. EMPLOYEES RETIREMENT PLAN SUMMARY PLAN DESCRIPTION (Plan Provisions as in Effect on January 1, 2007) Employees Retirement Plan January 2007

2 TABLE OF CONTENTS INTRODUCTION ELIGIBILITY AND ENROLLMENT... 1 A. WHO IS ELIGIBLE... 1 B. WHO IS NOT ELIGIBLE... 1 C. COVERED CONTRACT EMPLOYEE... 2 D. PARTICIPANTS EMPLOYED BY JT3, LLC WHEN YOU CAN RETIRE... 3 A. NORMAL RETIREMENT... 3 B. EARLY RETIREMENT... 3 C. LATE RETIREMENT... 3 D. DISABILITY RETIREMENT... 4 E. SURVIVOR BENEFITS... 4 F. RESTORATION OF RETIRED PARTICIPANT HOW YOUR PENSION IS CALCULATED... 5 A. NORMAL RETIREMENT INCOME... 5 B. EARNINGS... 5 C. AVERAGE EARNINGS... 5 D. SOCIAL SECURITY WAGE BASE... 6 E. SOCIAL SECURITY TAX BASE... 6 F. CREDITED SERVICE... 6 G. HOURS OF SERVICE... 6 H. PRE-2004 BENEFIT... 7 I. NATIONAL RADAR TESTING FACILITY EMPLOYEES... 8 J. EARLY RETIREMENT INCOME... 9 K. ADJUSTMENT FACTORS... 9 L. DISABILITY RETIREMENT INCOME M. QUALIFIED PRE-RETIREMENT SPOUSE S INCOME VESTING A. HOW VESTING SERVICE IS CALCULATED B. BREAK-IN-SERVICE HOW YOUR PENSION CAN BE PAID IF YOU RETIRE A. NORMAL FORMS OF PAYMENT A. OPTIONAL FORMS OF PAYMENT B. PAYMENT OF SMALL PENSIONS C. DIRECT ROLLOVER ELECTION IF YOU END EMPLOYMENT BEFORE RETIREMENT A. PARTICIPATION UPON REHIRE B. VESTED REHIRE Table of Contents

3 C. NON-VESTED REHIRE APPLYING FOR YOUR BENEFIT A. IF YOUR CLAIM IS DENIED B. YOUR RIGHT TO APPEAL C. FINAL DECISION OTHER IMPORTANT INFORMATION A. ASSIGNMENT OF BENEFITS B. QUALIFIED DOMESTIC RELATIONS ORDER C. IRS APPROVAL D. RIGHT TO AMEND OR TERMINATE THE PLAN E. PENSION BENEFIT GUARANTY CORPORATION F. IMPORTANT NOTE G. TOP-HEAVY PROVISIONS H. MAXIMUM BENEFIT I. DISCREPANCIES YOUR RIGHTS UNDER ERISA A. STATEMENT OF ERISA RIGHTS B. RECEIVE INFORMATION ABOUT YOUR PLAN AND BENEFITS C. PRUDENT ACTIONS BY PLAN FIDUCIARIES D. ENFORCE YOUR RIGHTS E. ASSISTANCE WITH YOUR QUESTIONS PLAN ADMINISTRATION A. PLAN SPONSOR B. EMPLOYER IDENTIFICATION NUMBER C. PLAN NAME D. PLAN NUMBER E. PLAN TYPE F. PLAN YEAR G. PLAN ADMINISTRATOR H. PLAN TRUSTEE I. AGENT FOR SERVICE OF LEGAL PROCESS J. PLAN FUNDING Table of Contents

4 INTRODUCTION The Employees Retirement Plan (hereafter referred to as the Plan ) helps you provide for your financial security throughout your retirement years. Together with the URS Corporation 401(k) Retirement Plan and Social Security (to which EG&G Technical Services, Inc. contributes on your behalf), the Plan provides a solid foundation upon which to build your future financial security. The Plan should not be viewed as creating or guaranteeing any fixed term or condition of employment. Employment with is strictly at will, meaning that the employment relationship may be terminated at any time for any reason, with or without cause by you or by This booklet, called a Summary Plan Description (SPD), explains the features of the Plan as in effect on January 1, The rights and benefits of employees who terminate employment will be determined in accordance with the provisions of the Plan in effect on the date their employment terminated. If you retired from or left, before January 1, 2007, please refer to the Plan s prior SPD for an explanation of the Plan as it applies to you. The Plan s benefit formula changed effective January 1, Benefits that you earn under the new formula beginning in 2004 will be added to the benefits you had earned under the old formula as of December 31, Please refer to Article III How Your Pension Is Calculated for a thorough explanation of the Plan s new formula. We encourage you to consider what the Plan can provide for your retirement years. If you have any questions after reading the SPD or if you would like more information about the Plan, please contact the Plan Administrator. Employees Retirement Plan 1

5 1. ELIGIBILITY AND ENROLLMENT A. Who Is Eligible You may participate in the Plan on the first business day after you complete one Year of Service. (A Year of Service is any 12-month period beginning on the date you start working (or an anniversary of that date) during which you complete at least 1,000 Hours of Service. The term Hour of Service is defined in Article III, How Your Pension Is Calculated.) B. Who Is Not Eligible You may not participate in the Plan if you are: a Covered Contract Employee, an employee whose terms of employment are governed by a collective bargaining agreement with (hereafter EG&G ) unless the agreement specifically provides for coverage under the Plan, a leased employee (as defined in Internal Revenue Code Section 414(n)(2)), an independent contractor, or offered employment by or execute an employment agreement with EG&G after June 30, Employees Retirement Plan 1

6 C. Covered Contract Employee You are a Covered Contract Employee if your service is primarily devoted to work under a contract with the federal government (including any agency or instrumentality of the federal government) and you work at a location listed below: Location Barstow, CA Bloomington, IN Hill, UT Bargaining Representative or Employer Unit Barstow Crane, Indiana Hill Air Force Base Huntsville, AL Bricklayers & Allied Craftworkers Local 15 Huntsville, AL Huntsville, AL COSS Building Trades Huntsville Huntsville, AL International Brotherhood of Electrical Workers Local 558 Huntsville, AL Logistics CWA 3905 and IUE CWA Jacksonville, FL Jacksonville Pittsburgh, PA IUOE Local 95 San Antonio, TX San Antonio, TX Wallops Island, VA Washington, DC MSSA (KDC) Randolph Air Force Base Wallops Island DC Department of Corrections D. Participants Employed By JT3, LLC If you participate in the Plan and are later employed by JT3, LLC, your earnings and service with JT3, LLC shall count for purposes of determining Credited Service, Vesting Service and determining whether you have incurred a separation from service under the Plan. If you incur a break-in-service (see Article IV) and are later rehired by JT3, LLC, you will not return to participation in the Plan. Employees Retirement Plan 2

7 2. WHEN YOU CAN RETIRE You are eligible to commence your benefit on the first day of the month after the date you reach your Normal Retirement Age. If you have at least 10 Years of Vesting Service, you may be eligible to receive an Early Retirement benefit starting as early as 10 years prior to your Normal Retirement Date. You also may postpone your retirement and continue working past your Normal Retirement Date. (A Year of Vesting Service is any 12-month period beginning on the date you start working (or an anniversary of that date) during which you complete at least 1,000 Hours of Service. For a complete discussion of Vesting, see Article IV.) A. Normal Retirement Your Normal Retirement Age depends on your year of birth, as outlined in the following table: Year of Birth Age 1937 and earlier plus 2 months per year plus 2 months per year 1960 and later 67 The first day of the month following the date you reach your Normal Retirement Age is your Normal Retirement Date. If you retire on your Normal Retirement Date, you ll receive your full, unreduced pension benefit. B. Early Retirement You may retire and receive an Early Retirement Income as of the first day of any month after you have completed 10 Years of Vesting Service and reached an age that is within 10 years of your Normal Retirement Age. Notwithstanding the above, if you were a participant in the EG&G, Inc. Employees Retirement Plan on December 31, 1988, you may retire and receive an Early Retirement Income as of the first day of any month after the earlier of (1) or (2) below: (1) you have completed 10 Years of Vesting Service and reached your 55th birthday; or (2) you have completed 5 Years of Vesting Service and reached your 65 th birthday. (See Article III, How Your Pension Is Calculated for a description of how an Early Retirement Income is calculated.) C. Late Retirement You may continue to work after your Normal Retirement Date. You will continue as a Participant until you actually retire, and you will continue to earn benefits under the Plan s formula until that date. (See Article III, How Your Pension Is Calculated for a description of the Plan s formula.) Employees Retirement Plan 3

8 D. Disability Retirement If you have completed at least 10 Years of Vesting Service and you incur a disability while employed by EG&G, you are eligible to receive a Disability Retirement Income starting on your Normal Retirement Date or on an Early Retirement Date. You have incurred a disability if the Social Security Administration determines that you are eligible to receive disability benefits under Title II of the Social Security Act. (See Article III, How Your Pension Is Calculated for a description of how a Disability Retirement Income is calculated.) E. Survivor Benefits Your surviving spouse is entitled to a Qualified Pre-Retirement Spouse s Income from the Plan if you die after you become vested in the Plan but before your benefit payments begin. F. Restoration of Retired Participant If you are restored to service as eligible employee after you have started to receive your pension benefits, your pension benefits will be suspended for each month during which you work 40 or more hours. Employees Retirement Plan 4

9 3. HOW YOUR PENSION IS CALCULATED The Plan s benefit formula changed effective January 1, The benefits you earn under the new formula will be added to the benefits, if any, that you earned under the prior formula. Your monthly benefit from the Plan will be the sum of both of these amounts (i.e., benefits earned under new formula plus benefits earned under old formula equals total monthly Plan benefits). The Plan s new benefit formula is described below. The Plan s prior benefit formula is described later in this section. A. Normal Retirement Income Your monthly Normal Retirement Income is payable when you retire on or after your Normal Retirement Date. Your monthly benefit payable as a Life Annuity is equal to the greater of (i) $70.83 or (ii) the sum of your Pre-2004 Benefit plus the total benefit you earned in 2004 and later years under the following formula: 1/12 multiplied by [(0.65% of your Earnings for each year) plus (0.65% of your Earnings in excess of 50% of the Social Security Wage Base for each year until your reach the maximum of 35 years of Credited Service)] Note that the 35 years of Credited Service maximum takes into account your years of Credited Service both before and after January 1, You can elect to receive your monthly benefit in a form of payment other than a Life Annuity. For a discussion of the different forms of payment that are available and the Plan s election procedures, see Article V, How Your Pension Can Be Paid If You Retire. Let s look a little more closely at what some of these and other terms used by the Plan mean. B. Earnings Your Earnings include your regular base salary or wages, commissions, termination pay and any salary deferrals that you make in accordance with Section 125, 132(f)(4), 402(g)(3) or 457 of the Internal Revenue Code. Your Earnings do not include bonuses, overtime payments, incentive pay, reimbursements or other expense allowances or other adjustments, fringe benefits and any other type of special or nonrecurring pay. Any Earnings that you receive during any periods that you are employed in an ineligible class are also not included. For purposes of the calculation of your benefit, your annual Earnings are limited by the Internal Revenue Code. The limit for 2007 is $225,000 but will be adjusted in future years for cost-of-living increases as allowed by applicable law. C. Average Earnings Used for the Pre-2004 Benefit formula, this is the average of the Earnings that you receive during the five consecutive years of your Credited Service out of the last 10 years of Credited Service immediately prior to or ending with the date you stop working which affords the highest Employees Retirement Plan 5

10 average. If your entire period of employment is less than five consecutive years, Average Earnings means the average of all your Earnings during your entire period of Credited Service. Earnings after December 31, 2003 will not be taken into account for this purpose. D. Social Security Wage Base The Social Security Wage Base is the maximum amount of wages in a given year that is subject to Social Security taxes. For 2007, the Social Security Wage Base is $97,500. E. Social Security Tax Base Each year the Social Security Administration publishes an updated table of Social Security Tax Base amounts. These amounts vary by year of Social Security Retirement Age. For purposes of the Pre-2004 Benefit formula, the Social Security Tax Base is the table amount based on the average of the Social Security Wage Bases in effect for each calendar year during the 35-year period ending with the calendar year in which you reach Social Security Retirement Age. For years from 2004 until you reach Social Security Retirement Age, the Social Security Wage Base in effect in 2003 is used for all subsequent years until your Social Security Retirement Age in determining your Social Security Tax Base. F. Credited Service If you normally work a regular full-time week, you will be credited with a full year of Credited Service for each calendar year of employment with EG&G including employment with EG&G, Inc. that was recognized as Credited Service under the EG&G, Inc. Employees Retirement Plan but excluding any employment as a Covered Contract Employee. If you complete less than a full year of Credited Service for the calendar year in which you start or stop working, you will be credited with one-twelfth (1/12) of a year of Credited Service for each month of employment, rounded to the nearest month. If you do not normally work a regular full-time week, you will be credited with one-twelfth (1/12) of a year of Credited Service for each 173 1/3 Hours of Service you complete as an employee, excluding hours as a Covered Contract Employee, within a calendar year. G. Hours of Service An Hour of Service means: each hour for which you are paid or entitled to payment for the performance of duties; each hour for which you are paid or entitled to payment for periods during which no duties are performed (such as vacation and sick time); and each hour for which back pay is awarded or agreed to by EG&G. (If you worked for EG&G, Inc. prior to August 20, 1999, the Effective Date of the Plan, that time also constitutes performance of duties for EG&G.) However, no hours are credited on account of any period during which you perform no duties and receive payment solely for the reimbursement of your medical or medically related expenses under unemployment compensation, worker s compensation or disability insurance laws. Employees Retirement Plan 6

11 H. Pre-2004 Benefit Your Pre-2004 Benefit is the amount of benefit that you earned under the Plan s prior formula effective as of December 31, This amount is expressed as a monthly benefit payable as a Life Annuity when you retire on or after your Normal Retirement Date. For years of credited service prior to January 1, 2004, your monthly Pre-2004 Benefit payable as a Life Annuity is equal to the amount calculated as of December 31, 2003 according to the following formula: 1/12 times [(0.85% of your Average Earnings multiplied by your Credited Service) plus (0.75% of your Average Earnings in excess of the Social Security Tax Base multiplied by your Credited Service (up to a maximum of 35 years))] The portion of the Pre-2004 Benefit based on 0.85% of Average Earnings is referred to as the Base Benefit. The 0.75% of Average Earnings in excess of the Social Security Tax Base is the Excess Benefit. An Example Now that we know the terms and have seen the formula, let s look at an example of how all this fits together. Let s assume that: You were 31 years old when you became a participant in the Plan; You will be 65 years old on your Normal Retirement Date, January 1, 2013 (you were a participant in the EG&G, Inc. Employees Retirement Plan as of December 31, 1988); You have 25 years of Credited Service on December 31, 2003; The applicable Social Security Tax Base is $63,132; The applicable Social Security Wage Base is $87,900 for 2004, $90,000 for 2005, $94,200 for 2006 and $97,500 for 2007; Your Average Earnings is $80,000 on December 31, 2003; and Your Annual Earnings is $85,000 for Now suppose you continue to work until your Normal Retirement Date and your Annual Earnings is $85,000 for years and the Social Security Wage Base remains level at $97,500 for Your monthly Retirement Income at Normal Retirement Date is computed as shown below. Employees Retirement Plan 7

12 First, based on the amount earned under the Pre-2004 Benefit formula: 1/12 times (.0085 times $80,000 multiplied by 25 years of Credited Service) plus (.0075 times $80,000 minus $63,132 multiplied by 25 years of Credited Service) which equals Second, for each year after 2003 you earn: 1/12 times ($17,000 plus $3,162.75) equals $1, Year Earnings Social Security Wage Base (SSWB).0065 x Earnings.0065 x (Earnings minus ½ of SSWB) Monthly Amount Earned ,000 87, ,000 90, ,000 94, ,000 97, ,000 97, ,000 97, ,000 97, ,000 97, ,000 97, Total In this example, your normal monthly Retirement Income would be $1, plus $596.62, or $2,276.85, if paid as a Life Annuity. (If the formula produced a result lower than the minimum benefit, you would receive a monthly benefit equal to $70.83 instead.) I. National Radar Testing Facility Employees If you are a participant who is employed at the National Radar Testing Facility and the terms of your employment are governed by a collective bargaining agreement between International Association of Machinists Union and the Company, no further benefits will accrue after December 31, Employees Retirement Plan 8

13 J. Early Retirement Income If you are within ten years of your Normal Retirement Age and have at least 10 Years of Vesting Service, you may retire with an Early Retirement Income. (If you were a participant in the EG&G, Inc. Employees Retirement Plan on December 31, 1988, you may retire early if you have reached age 55 and earned at least 10 Years of Vesting Service or, if earlier, you have reached age 65 and earned at least 5 Years of Vesting Service.) Your Early Retirement Income is equal to your Normal Retirement Income reduced as discussed below for commencement as of your Early Retirement Date. The reduction is applied because your benefit is commencing before your Normal Retirement Date and will be paid over a longer period of time. K. Adjustment Factors If you retire before your Normal Retirement Date, your benefit will generally be reduced by 1/15th for each of the first five full years, 1/30th for each of the next five years and 5% for each of the next two years by which the date payments commence precedes your Normal Retirement Date. The reductions are applied proportionately to each monthly payment. However, if you have at least 30 Years of Vesting Service when you retire, special adjustment factors that produce a lesser reduction will apply to the portion of your Pre-2004 Benefit based on 0.85% of your Average Earnings multiplied by your years of Credited Service as of December 31, 2003 (your Pre-2004 Base Benefit ). The reduction will be none for the first three full years, 8.4% for each of the next two years and 4.2% for each of the next seven years by which the date payments commence precedes your Normal Retirement Date. The adjustment factors are summarized in the following table: Years Prior to Normal Retirement Date Pre-2004 Benefit New Formula and Pre Less than 30 More Than 30 Years of Service Years of Service* _Base_ Excess* % % % *Note that these factors reflect the 1/15 th and 1/30 th factors rounded to the nearest 10th. Employees Retirement Plan 9

14 An Example Suppose the facts are the same as the previous example, but you retire early at age 61 on January 1, 2009 and your Annual Earnings amounts to $85,000 for each of the years In this example, you would have 30 years of Credited Service on December 31, First, based on the amount earned under the Pre-2004 Benefit formula, your monthly Retirement Income at Normal Retirement Date is: 1/12 times (.0085 times $80,000 multiplied by 25 years of Credited Service) plus (.0075 times $80,000 minus $63,132 multiplied by 25 years of Credited Service) which equals Second, for each year after 2003 you earn: 1/12 times ($17,000 plus $3,162.75) equals $1, Year Earnings Social Security Wage Base (SSWB).0065 x Earnings.0065 x (Earnings minus ½ of SSWB) Monthly Amount Earned ,000 87, ,000 90, ,000 94, ,000 97, ,000 97, Total In this example, your normal monthly Retirement Income would be $1, plus $333.91, or $2,014.14, if paid as a Life Annuity at age 65. If you elect to begin payment immediately upon retirement at age 61, your Pre-2004 Benefit based on 0.85% of your Average Earnings (your Pre Base Benefit ) would amount to $1, ($17,000 divided by 12) and the remaining benefit would be $ (Pre-2004 Excess Benefit and accruals under the new formula) ($2, $1,416.67) Employees Retirement Plan 10

15 The early retirement reduction factor for payment five years prior to age 65 would be determined as follows: (see chart for five years prior to retirement) =.733 The special adjustment factor for the 0.85% portion of the Pre-2004 Benefit would be as follows: (see chart for five years prior to retirement) =.916 So the monthly Early Retirement Income would be calculated as follows: $1, times.916 plus $ times.733 which equals $1, For this example, your monthly Early Retirement Income would be $1,735.62, if paid as a Life Annuity. L. Disability Retirement Income If you incur a disability while you are employed by EG&G but after you have completed at least 10 Years of Vesting Service, you may retire and receive a Disability Retirement Income on any date on or after you become eligible to receive an Early Retirement Income. If you elect to commence your Disability Retirement Income on your Normal Retirement Date, the amount of your benefit will be determined in the same manner as your Normal Retirement Income except that during the period of your Disability: your Earnings will be determined as if your Earnings had continued until you would have reached your Normal Retirement Date at the same rate as when you became disabled; and you will be granted Credited Service in accordance with your normal work schedule for benefit calculation purposes through your Normal Retirement Date. If you elect to receive your Disability Retirement Income before you reach your Normal Retirement Date, the benefit will be determined in the same manner as discussed above except that it will be adjusted for early commencement and Earnings and Credited Service will continue only until your Early Retirement Date. (See the discussion of Early Retirement Income in Article III, How Your Pension Is Calculated. ) M. Qualified Pre-Retirement Spouse s Income The Qualified Pre-Retirement Spouse s Income is calculated as follows: If you are vested and die before your earliest possible retirement date (See the discussion in Article II, When You Can Retire ), your spouse s benefit will be calculated as though: you terminated employment on the date you died (or, if earlier, on the date your employment actually ended); survived to your earliest possible retirement date; Employees Retirement Plan 11

16 elected to have payments commence at your earliest possible retirement date in the form of a 50% Qualified Joint and Survivor Annuity; and died on the day after your retirement. If you die after earning ten Years of Vesting Service, your spouse may elect to commence payment on any date after the date you would have reached your earliest possible retirement age. Any payment commencing before your Normal Retirement Date will be reduced to reflect the longer period over which payments will be made. If you die on or after your earliest retirement age, your spouse s benefit will be calculated as though: you retired on the day before you died (or, if earlier, on the actual date your employment ended); elected to have payments commence immediately in the form of a 50% qualified Joint and Survivor Annuity; died on the day after your retirement. Your surviving spouse may elect to receive payments within a reasonable period after your death. Benefits that begin later than those that would have been paid to the surviving spouse under an immediate 50% Qualified Joint and Survivor Annuity will be actuarially adjusted to reflect the delayed payment. Your surviving spouse may elect to receive payment in a single sum, provided the present value of your account exceeds $1,000 but does not exceed $5,000. The spouse s survivor benefit is paid in monthly installments to, and during the life of, your surviving spouse. When your spouse dies, all benefits stop. Employees Retirement Plan 12

17 4. VESTING Vesting means that you have a non-forfeitable right to your retirement benefit from the Plan. You become 100% vested in your retirement benefit as soon as you complete five Years of Vesting Service, or reach age forty-five (45) while in the employ of EG&G, if this occurs earlier. A. How Vesting Service Is Calculated You earn one Year of Vesting Service for each computation period during which you complete at least 1,000 Hours of Service. A computation period is any 12-month period beginning on the date you start working or any anniversary of that date. For purposes of determining Vesting Service, your Hours of Service are determined by crediting you with 190 Hours of Service for each month in which you worked one Hour of Service. B. Break-In-Service Once you have become vested in your benefit from the Plan, you cannot lose credit for your Years of Vesting Service. However, if you have not yet become vested in your benefit from the Plan and incur five consecutive one-year Breaks In Service, you may lose credit for your prior Years of Vesting Service. You will incur a one-year Break-In-Service for a computation period during which you do not have at least 501 Hours of Service. If you incur five consecutive one-year Breaks-In-Service before you complete five Years of Vesting Service or attain age forty-five (45), all of your Vesting Service is forfeited. The Credited Service you had earned for benefit calculation purposes during the period also is forfeited. If you are on an approved leave of absence for maternity/paternity reasons, you will be credited with sufficient Hours of Service to avoid a one-year Break-In-Service in the year during which the leave starts. If you do not need the Hours of Service during that year to avoid a Break-In- Service, you will be credited with the Hours of Service in the following year. For purposes of this rule, an approved maternity/paternity leave means an absence resulting from: your pregnancy; the birth of your child; the placement of a child with you in connection with your adoption of the child; or caring for your child immediately after birth or adoption. If you are on an approved leave of absence for military reasons, you will be credited with Hours of Service to avoid a one-year Break-In-Service in accordance with applicable laws. 5. HOW YOUR PENSION CAN BE PAID IF YOU RETIRE If you stop working after you become 100% vested in your benefit from the Plan (see Article IV, Vesting for an explanation of when you vest in your benefit under the Plan), you may elect to receive your benefit: at your Normal Retirement Date, or Employees Retirement Plan 13

18 at any time after you reach your earliest possible retirement date if you complete at least 10 Years of Vesting Service. (See Article II, When you Can Retire for a discussion of when you can receive your Normal Retirement Income or your Early Retirement Income.) Whenever you wish to begin receiving your benefit from the Plan, you must complete and submit a Retirement Payment Election Form. A. Normal Forms Of Payment Your normal form of payment depends on your marital status when your benefits begin. If you are married when your benefits begin: Your normal form of payment is a Qualified Joint and Survivor Annuity, which provides a reduced monthly pension payment to you for your life and, upon your death, continues 50% of that monthly payment to your spouse for the remainder of his or her life. (If you are married at the time your benefits are scheduled to begin, you cannot elect an Optional Form of Payment unless you obtain your spouse s written, notarized consent within 90 days immediately preceding the date payments are scheduled to commence.) If you are not married when your benefits begin: Your normal form of payment is a Life Annuity, which provides a monthly pension payment to you for your life. When you die, all payments stop. A. Optional Forms Of Payment You may elect an optional form of payment. If you are married at the time your benefits are scheduled to commence, you need your spouse s consent to elect one of the Optional Forms of Payment. (See Normal Forms of Payment on the preceding page.) Each option is actuarially equivalent to your normal form of payment. In other words, each option including your normal form of payment has the same actuarial value. The options available to you are: Single Life Annuity Option (the Single Life Annuity is the normal form for unmarried Participants): Under this form of payment, you will receive monthly pension payments for your life. When you die, all payments stop. 50% or 100% Joint and Survivor Annuity Options (the 50% Joint and Survivor Annuity is the normal form for married Participants): These options provide a reduced monthly pension payment to you for your lifetime, and then a continuing benefit for the life of your surviving beneficiary after your death. The monthly pension payments that your beneficiary will receive can equal either 50% or 100% of your reduced lifetime monthly payments. All payments stop when your beneficiary dies. However, if your beneficiary dies before you but after payments begin, your reduced pension continues for your life. 120-Month Period Certain Option: This option provides a reduced monthly pension payment to you for life with a guaranteed minimum of 120 payments (10-year guarantee). If you die before receiving the guaranteed minimum number of payments, the remaining payments will be made to your spouse or other named beneficiary. (If your beneficiary then dies before receiving the guaranteed minimum number of payments, then the actuarial future value of all remaining monthly payments will be paid in a lump sum to his or her beneficiary.) Social Security Level Payment Option: This option is available only if your benefit commencement date is prior to age sixty-two (62). This form of payment provides payments Employees Retirement Plan 14

19 for your lifetime and is designed to coordinate with your Social Security benefits so that you receive a level income from the Plan and Social Security before and after you attain age sixty-two (62). When you die, all payments stop. Single Sum Payment: This option is available only if the present value of your account exceeds $1,000 but does not exceed $5,000. B. Payment Of Small Pensions If the actuarial value of your benefit from the Plan at the time you retire or terminate employment is $1,000 or less, the actuarial value of your benefit will be paid to you in a single lump sum in lieu of any future annuity. C. Direct Rollover Election If the actuarial value of your benefit is paid to you in a single lump sum, you may choose to have all or part of this lump-sum distribution directly rolled over into another qualified retirement plan or to an Individual Retirement Account (IRA). The portion of your benefit that is directly rolled over will be exempt from the mandatory 20% federal income withholding tax rules that otherwise would apply to lump-sum distributions from the Plan. Before the single lump sum is paid, you will receive more information about how to elect a direct rollover. If you do not elect a direct rollover, the Plan Administrator is required to withhold 20% of a lump-sum distribution as federal income tax withholding. Depending on your age, if you do not elect a direct rollover, you may be subject to an additional 10% excise tax. For more information about the tax consequences related to distributions that are not directly rolled over, you should seek advice from your financial advisor. Employees Retirement Plan 15

20 6. IF YOU END EMPLOYMENT BEFORE RETIREMENT If your employment ends before you become vested in the Plan, you are not entitled to a benefit from the Plan. (See Article IV, Vesting for an explanation of when you become vested.) If your employment ends after you become vested, you are entitled to receive your retirement benefit under the Plan beginning on your Normal Retirement Date. (Remember that you will receive a lump sum distribution if the value of your benefit is $1,000 or less.) If you have a vested right to your retirement benefit and you have completed 10 years of Vesting Service, you can elect to receive a reduced monthly pension beginning at your earliest possible retirement date. (See Article II, When You Can Retire for a discussion of Normal Retirement and Early Retirement.) If you are married, your benefit will be paid to you and your spouse as a reduced 50% Qualified Joint and Survivor Annuity unless you elect a different form of payment with your spouse s consent. (See Article V, How Your Pension Can Be Paid If You Retire for discussion of the forms of payment available under the Plan and an explanation of how you elect an optional form of payment if you are married when your benefits are scheduled to commence.) If you are not married, your benefit will normally be paid as a Life Annuity unless you elect one of the optional forms of payment available under the Plan. (See Article V, How Your Pension Can Be Paid If You Retire for a discussion of the forms of payment available under the Plan.) A. Participation Upon Rehire If you terminate employment after becoming a participant and are later re-employed in an eligible category of employment, you will become a Participant in the Plan at the time you return to work. (See Article I, Eligibility and Enrollment for a discussion of who is and is not eligible to participate.) B. Vested Rehire If you are vested when your employment ends and do not receive a single sum distribution of your retirement benefit, you will continue to earn Credited Service for benefit calculation purposes starting from the day you return to work provided you are eligible to participate in the Plan upon reemployment. Credited Service earned after you return will be added to your prior years Credited Service to determine your benefit. C. Non-Vested Rehire If you were not yet vested when you separated from service and you later return to work, your prior Years of Vesting and Credited Service will only be reinstated if you return to work before you incur five consecutive one year Breaks-In-Service. If you do not return within this time period, you will not receive credit for your previous years of Vesting or Credited Service when you return. Employees Retirement Plan 16

21 7. APPLYING FOR YOUR BENEFIT Upon your request, the Plan Administrator will provide you with an application form to elect to receive distribution of your retirement benefit. Upon receipt of the completed, signed form, distribution of your benefit will be made. A. If Your Claim Is Denied If your claim for benefits is denied, in whole or in part, you will receive a written explanation within 90 days after receipt of your claim. Due to special circumstances, the Plan Administrator may extend the period for determination for up to an additional 90 days, upon written notice to you describing the special circumstances requiring the extension and the date by which the Plan Administrator expects to reach a decision on the claim. The written explanation will cover the specific reasons for the denial of your claim, the specific references in the Plan document that support those reasons, the information you must provide to verify your claim and the reasons why that information is necessary, the procedure available for further review of your claim, and a statement of your right to bring an action under Section 502(a) of ERISA. B. Your Right To Appeal You have the right to appeal a denial of your claim. You must submit a written appeal to the Plan Administrator within 60 days after you receive the claim denial notice. You and your representative may review the Plan document pertinent to your claim and submit written comments and relevant information. You can contact the Plan Administrator for appeals regarding the Plan at: 900 Clopper Road, Suite 200 Gaithersburg, MD The Plan Administrator will conduct a full and fair review of your appeal, and will notify you of the decision within 60 days. Due to special circumstances, the Plan Administrator may extend the period for determination for up to an additional 60 days, upon written notice to you before the extension period commences. The decision will be in writing, and will include the specific reasons for the decision, the Plan references on which the decision is based, a statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim for benefits, and a statement of your right to bring an action under Section 502(a) of ERISA. Any failure on your part to comply with the request for information by the Plan Administrator constitutes sufficient grounds for delay in the payment of benefits until such information is received. C. Final Decision The Plan Administrator has the authority to make final decisions with respect to paying claims under the Plan. Employees Retirement Plan 17

22 In making a final decision, the Plan Administrator has sole, absolute and discretionary authority in interpreting the meaning of Plan provisions and in determining all questions arising under the Plan, including, but not limited to, eligibility for benefits. The Plan Administrator s decision shall be final and binding on Participants and all other parties to the maximum extent allowed by law. Employees Retirement Plan 18

23 8. OTHER IMPORTANT INFORMATION A. Assignment Of Benefits The Plan is intended to be used exclusively to provide benefits to you, and, under certain circumstances, to your survivors. Neither you nor EG&G can assign, transfer or attach your benefits or use them for collateral. B. Qualified Domestic Relations Order Federal law prohibits assignment or attachment of your benefits from the Plan except under a qualified domestic relations order (QDRO). A QDRO is a court order, issued in connection with a divorce or family support proceeding, which orders the Plan to pay your benefits to someone other than you (e.g., your spouse, former spouse, child or other dependent). The Plan Administrator must obey these court orders, and any such payment will not violate the rule of non-assignability of benefits. The Plan Administrator may be required to begin making payments from the Plan while you are still working. The Plan Administrator has no discretion in these matters. However, you will be notified if the Plan receives notice of a domestic relations order that may affect your benefits. The specific procedures that the Plan observes in reviewing and processing QDROs can be obtained, free of charge by contacting: Mercer Human Resource Consultants URS/EG&G# P.O. Box 9740 Providence, RI Overnight: Mercer Human Resource Services URS/EG&G # Investor Way Norfolk, MA C. IRS Approval The Plan is subject to the continuing approval of the Internal Revenue Service (IRS). Therefore, the Plan may change from time to time or be discontinued to comply with certain IRS regulations or any changes in the Internal Revenue Code or any other applicable law. If changes that affect you are required, you will be notified. D. Right To Amend Or Terminate The Plan The Plan provides that the Plan can be amended or terminated by the Board of Directors at any time and from time to time. If the Plan should be terminated, the Plan s assets would be divided among all Participants as specified in ERISA. None of these assets could revert to EG&G until all the Plan s liabilities have been satisfied. Employees Retirement Plan 19

24 E. Pension Benefit Guaranty Corporation Benefits under the Plan are insured by the Pension Benefit Guaranty Corporation (PBGC) if the Plan terminates. Generally, the PBGC guarantees most vested normal retirement benefits, early retirement benefits, and certain disability and survivors pensions. However, the PBGC does not guarantee all types of benefits under the Plan and the amount of benefit protection is subject to certain limits. The PBGC guarantees vested benefits at the level in effect on the date the Plan terminates. However, if the Plan has been in effect less than five (5) years or if benefits have been increased within the last five (5) years before it is terminated, the entire amount of the Plan s vested benefits or the benefit increases may not be guaranteed. In addition, there is a ceiling on the amount of benefits that the PBGC guarantees, which is adjusted periodically. For more information on the PBGC insurance protection and its limitations, contact the PBGC at the address listed below. Inquiries to the PBGC should be addressed to: Office of Communications Pension Benefit Guaranty Corporation 1200 K Street NW Washington, DC You can also reach the PBGC by calling TTY/TDD users may call the federal relay service toll-free at (800) and ask to be connected to (202) Additional information about the PBGC s insurance program is available on the PBGC s internet website at F. Important Note Your eligibility or your right to benefits under the Plan should not be interpreted as a guarantee of employment. Participation in the Plan does not interfere with EG&G s right to terminate your employment at any time, whether or not for cause, with or without notice. G. Top-Heavy Provisions There are certain minimum requirements that must be provided to participants in a top-heavy plan. A top-heavy plan is a plan in which more than 60% of the value of the benefits have been earned by key employees. The Plan is not now top heavy and is not expected to be so in the future. However, if in any Plan Year the Plan becomes top heavy, certain special provisions under the Plan will come into effect. These provisions can include a minimum benefit for employees who are not key employees, limitation on benefits for key employees, more rapid vesting, and other changes. H. Maximum Benefit The Plan contains certain limitations required by Federal law on the amount of the maximum normal retirement pension payable from the Plan. The Plan Administrator will advise you if you are affected by these limits. Employees Retirement Plan 20

25 I. Discrepancies This document is the summary plan description (SPD) of the Retirement Plan, as in effect as of January 1, Terms and phrases used in this SPD are intended to have the meanings ascribed to them in the Plan document. If there is any difference between the information contained in this SPD and the Plan document, the Plan document, as interpreted by the Plan Administrator, always will govern. If there are legal rules that require changes not yet written into the Plan documents, the Plan document will be interpreted by the Plan Administrator as including those legal rules. Employees Retirement Plan 21

26 9. YOUR RIGHTS UNDER ERISA A. 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, as amended (ERISA). ERISA provides that all Plan Participants shall be entitled to: B. Receive Information About Your Plan and Benefits Examine, without charge, at the Plan Administrator s office and at other specified locations, such as work sites and union halls, all documents governing the Plan, including insurance contracts and collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration. Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated Summary Plan Description. The Administrator may make a reasonable charge for the copies. Receive a summary of the Plan s annual financial report. The Plan Administrator is required by law to furnish each Participant with a copy of this summary annual report. Obtain a statement telling you whether you have a right to receive a pension at normal retirement age and if so, what your benefits would be at normal retirement age if you stop working under the Plan now. If you do not have a right to a pension, the statement will tell you how many more years you have to work to get a right to a pension. This statement must be requested in writing and is not required to be given more than once every twelve (12) months. The Plan must provide the statement free of charge. C. Prudent Actions by Plan Fiduciaries In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan Participants and beneficiaries. No one, including your employer, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your rights under ERISA. D. Enforce Your Rights If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within thirty (30) days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you Employees Retirement Plan 22

27 receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the Plan s decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in Federal court. If it should happen that Plan fiduciaries misuse the Plan s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. E. Assistance With Your Questions If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the Publications Hotline of the Employee Benefits Security Administration at (800) Employees Retirement Plan 23

28 10. PLAN ADMINISTRATION A. Plan Sponsor The sponsor for the Plan is: 900 Clopper Road, Suite 200 Gaithersburg, MD B. Employer Identification Number The Internal Revenue Service (IRS) assigns every employer an Employer Identification Number (EIN). The EIN for is C. Plan Name The official name of the Plan described in this booklet is the Employees Retirement Plan. D. Plan Number The Plan identification number of the Plan described in this booklet is 002. E. Plan Type The Plan is a defined benefit pension plan, intended to satisfy the applicable provisions of Section 401(a) of the Internal Revenue Code. The Plan is insured by the Pension Benefit Guaranty Corporation (PBGC). F. Plan Year Financial records for the Plan are kept on a 12-month basis. The Plan Year begins on January 1 and ends on the following December 31. G. Plan Administrator The Plan is administered by The Plan Administrator is responsible for the operation and administration of the Plan. It has full discretion and authority to make all decisions in connection with the administration of the Plan, including but not limited to decisions concerning: eligibility to participate; benefits to which any participant or beneficiary is entitled; and Plan interpretation and determination of any fact under the Plan. You can contact the Plan Administrator in writing or by telephone at: Employees Retirement Plan 24