Retirement Plan of Sentinel Transportation, LLC Summary Plan Description (Title III of the DuPont Pension and Retirement Plan)

Transcription

1 Your Sentinel Benefit Resources Retirement Plan of Sentinel Transportation, LLC Summary Plan Description (Title III of the DuPont Pension and Retirement Plan) March 2012 The Retirement Plan of Sentinel Transportation, LLC (the Plan ) was established January 1, Effective January 1, 2004, the Plan was frozen so that employees hired on or after January 1, 2004 are not eligible to participate in the Plan. Employees who were participating in the Plan as of December 31, 2003, continue to participate and earn an additional pension benefit for all service after December 31, This Summary Plan Description describes the Sentinel Plan as it now exists as Title III of the DuPont Pension and Retirement Plan. For a list of other employers participating under the DuPont Plan, send your written request to the Plan Administrator. The list is also available for examination at the office of the Plan Administrator during normal business hours.

2 TABLE OF CONTENTS Details of the Plan 3 Preface 3 Introduction 3 Who is Eligible 3 Retirement Benefits 4 Step 1 Determination of Type of Retirement 4 Normal Retirement 4 early Retirement 4 Early Retirement Factors 4 Incapacity Retirement 5 separation Retirement 5 Step 2 Calculation of Retirement Benefit 6 Step 3 Election of Method of Payment 7 single Life Annuity 7 Joint-and-50-Percent Survivor Annuity 8 Joint-and-75-Percent Survivor Annuity (effective 1/1/08) 8 Joint-and-100-Percent Survivor Annuity 8 Retirement Plan Service Rules 9 Years Of Vesting/Eligibility Service 9 Vesting/Eligibility Service 9 Vesting 10 Years of Creditable Service 10 Top-Heavy Rules 11 Reemployment Following Termination or Retirement 11 Non-Vested Terminations 11 Vested Terminations 11 Pension Estimates 12 Applying for Retirement Benefits 12 Effective Date of Separation or Retirement From the Company 12 Benefit Commencement Date 13 Pre-Retirement Survivor Benefits 13 Pre-Retirement Surviving Spouse Annuity (prssa) 13 Enhanced Pre-Retirement Survivor Coverage 13 Return of Member Deposits in the Event of Death 14 Administrative Information 15 Plan Name and Identification Numbers 15 Plan Type and Plan Year 15 Plan Administration and Funding 15 Qualified Domestic Relations Orders 15 Liens 15 Insured Benefits 16 Maximum Benefit Limitation 16 IRS Approval 16 Plan Documents 16 ERISA Rights 17 Receive information about Your Plan and Benefits 17 Prudent Action by Plan Fiduciaries 17 Enforce Your Rights 17 Assistance with Your Questions 18 Using ERISA s Claims Procedure 18 If Your Claim is Denied 18 Plan Amendment or Termination 19 Laws Governing the Plan 19 Questions About the Plan 19 2

3 Title III of the DuPont Pension and Retirement Plan Details of the Plan Preface This Summary Plan Description (SPD) provides a concise description of Plan coverage available for you and your eligible survivors. While this SPD contains detailed and important information about your benefit Plan, every attempt has been made to communicate that information clearly and in easily understandable terms. While Sentinel Transportation, LLC (the Company) intends to continue the benefits and policies described in this SPD, the Company reserves the right to change, modify or discontinue the Plan at its discretion at any time. This SPD does not constitute a contract of employment or guarantee any particular benefit. In the event of a discrepancy between this SPD and the Plan document, the Plan document will govern. Introduction The Retirement Plan of Sentinel Transportation, LLC is designed to provide you with a lifetime retirement income based on your length of service and your earnings with the Company. The Plan was modified significantly effective January 1, Employees first hired on or after January 1, 2004 do not participate in the Plan. Employees rehired after January 1, 2004 will not earn additional service or benefits for time after their rehire date. Who is Eligible Regular full-time employees of Sentinel hired or rehired on or before December 31, 2003 are eligible to participate in the Plan effective the first day of the calendar month following their employment date. Part-time, temporary or casual employees must complete 1,000 or more hours of service within a 12 month period commencing upon their employment date or anniversary thereof, in order to participate. Employees hired on or after January 1, 2004 are not eligible to participate in the Plan. Represented employees do not participate in the Plan unless they are included in a bargaining unit that has accepted the terms of the Retirement Plan of Sentinel Transportation, LLC. 3

4 RETIREMENT BENEFITS These three steps determine the retirement benefit you will receive under the Plan: Step 1 Determination of Type of Retirement Step 2 Calculation of Retirement Benefit Step 3 Election of Method of Payment STEP 1 DETERMINATION OF TYPE OF RETIREMENT The amount you receive from the Retirement Plan will be determined by the type of retirement for which you qualify and the date retirement payments begin. You may be eligible for the following types of retirement: 4 Normal Retirement Plan members are eligible for Normal Retirement at age 65 with no minimum requirement for years of Vesting/Eligibility Service. Your retirement allowance under this type of retirement will be the amount produced by the appropriate retirement formula (High-3, High-10 or Minimum). If you work beyond age 65, you will continue to accrue additional retirement benefits. Early Retirement If you have completed 10 years of Vesting/Eligibility Service with the Company and are age 50 or older at termination from employment, you are eligible for Early Retirement. Your retirement allowance will be the amount produced by the appropriate retirement formula (High-3, High-10 or Minimum). You can elect to receive payment immediately upon retirement or the first day of any month up to your age 65. If you elect to begin receiving payments before age 65, your retirement amount will be reduced, as shown in the table below, because your retirement benefit will be spread over more years. Early Retirement Factors Age When Payment Starts Percentage of Benefit Received Schedule I Percentage of Benefit Received Schedule II Schedule I above applies to any benefits calculated using the High-3 retirement formula. In addition, it applies to any benefits accrued after January 1, 1971 calculated using the High-10 or Minimum retirement formula. Schedule II above applies to any benefits accrued prior to January 1, 1971 calculated under the High-10 or Minimum retirement formula.

5 Title III of the DuPont Pension and Retirement Plan The early retirement factors used in the retirement calculations are based on your age when payment starts expressed in years and months. For example, if you are age 55 years and 6 months when payment starts and your benefit was calculated under the High-3 retirement formula, you would receive 78.0 percent for being age 55 plus 2.5 percent for the 6 months, or a total percentage of 80.5 percent of the unreduced retirement benefit. Incapacity Retirement If you become disabled while employed after completing 10 years of Vesting/Eligibility Service and are age 40 or older, you are eligible to apply for an Incapacity Retirement. An Incapacity Retirement will be granted to you if you are determined to be eligible under the Social Security Act to receive disability benefits on or before the date of your termination of employment. While your Social Security Disability benefit application is pending, if eligible, you may be paid a monthly Retirement Allowance under the Early Retirement option. If your application for disability benefits under the Social Security Act is approved, your Retirement benefit will be recalculated and your Retirement type converted from an Early to an Incapacity Retirement. You will be paid the difference retroactive to your retirement date. If your application for disability benefits under the Social Security Act is denied, you will continue receiving your early retirement allowance. Your retirement allowance under an Incapacity Retirement will be the amount produced by the appropriate retirement formula (High-3, High-10 or Minimum). The retirement allowance will not be reduced by an early retirement factor, even though payments begin before you reach your Normal Retirement date. Participants who are granted an Incapacity Retirement are not eligible for lump-sum payments. Separation Retirement If you complete at least 5 years of Vesting/Eligibility Service and your service with the Company ends on or after July 1, 1988 (for reasons other than Normal, Early or Incapacity Retirement or death), you are eligible for a Separation Retirement. Your retirement allowance under a Separation Retirement will be the amount produced by the appropriate retirement formula (High-3, High-10, or Minimum). If you qualify for a Separation Retirement, you can elect to have your payments start on the first day of any month after age 50. If you elect to defer payments until age 65, your benefit payment will be the unreduced amount produced by the appropriate retirement formula. If you elect to receive payments prior to age 65, the amount produced by the applicable retirement formula will be reduced actuarially. The reductions will be greater than the reductions applicable for the companysubsidized Early Retirement Factors shown on the previous page. 5

6 STEP 2 CALCULATION OF RETIREMENT BENEFIT There are three formulas for calculating a retirement benefit. The formula for which you are eligible that yields the highest benefit will be used to determine your retirement benefit. High-3 Retirement Formula The Plan adds your highest 36 consecutive months wages and divides by 3. The formula is calculated as follows: [1.6% Annual Rate (monthly equivalent ) times Your High-3 Year Average Salary times Years of Creditable Service] minus [1.5% of Primary Social Security Benefit at SSRA (Social Security Retirement Age) times Years of Creditable Service] Example: Assume you retire at age 65 with 25 years of Creditable Service and a High-3 average annual salary of $51,000. Your estimated monthly High-3 retirement formula would be calculated as follows: High-3 Year Average Salary $ 51,000 Monthly equivalent of 1.6% X Years of Creditable Service X 25 Benefit Before Offset $1, Monthly Primary Social Security Benefit $1, at SSRA X.015 $20.00 Years of Creditable Service X 25 Social Security Offset* $ Benefit Before Offset $1, Social Security Offset Monthly Pension Amount $1, * The offset will never exceed 50 percent of the Primary Social Security Benefit. 6

7 Title III of the DuPont Pension and Retirement Plan High-10 Retirement Formula Only members of the Plan prior to January 1, 1971, are eligible for this formula. For this calculation, the Plan adds your 10 consecutive years of highest annual compensation and divides by 10. For questions regarding this formula, please contact DuPont Connection. Minimum Retirement Formula Under this formula, you receive an annual retirement allowance of: $144 times Years of Recognition Service* minus An amount equal to the retirement benefit you would have accrued under the High-3 or High-10 formula (whichever was greater) for any period of service during which you were eligible for membership but did not participate in the Plan. * Recognition Service is used to calculate the minimum retirement formula. In most cases it is the same date as Creditable Service unless a break in service occurred. STEP 3 ELECTION OF METHOD OF PAYMENT After your retirement type is determined and your benefit is calculated, your next step is to elect a method of payment. There are 5 methods of payment. You must elect a method of payment at the time benefits are to commence, regardless of any prior elections you have made. If you terminate employment and the present value of your total retirement benefit is $1,000 or less, your benefit will be paid to you in a lump sum. No other method of payment will be available. The following is a description of the five payment options: Single Life Annuity Under this option, your full retirement allowance will be paid to you in monthly payments during your lifetime only. No other payments will be made after your death. Your retirement allowance will not be reduced to pay for future survivor benefits because payments are made during your lifetime only. If you are not married and there is no Qualified Domestic Relations Order (QDRO) giving spousal rights to an Alternate Payee, your normal form of payment is a single life annuity. You can choose a different payment option and name anyone you wish as survivor. No waiver is required unless a former spouse has survivor rights under a QDRO. The calculation of the Single Life Annuity provides the basis for calculating the value of the other four methods of payment. The Single Life Annuity is determined by the appropriate retirement formula and the type of retirement (Normal, Early, Incapacity or Separation) for which you are eligible. Joint and survivor annuities and lump sum payments are calculated based on interest rates and mortality tables provided by the Plan. Federal law governs the rules the Plan must follow for interest rates which are similar to the interest rate of high quality corporate bonds. 7

8 Joint-and-50-Percent Survivor Annuity Under this method of payment, your retirement allowance will be reduced to compensate for payments to be made over the lifetime of two persons. A reduced retirement allowance will be paid to you in monthly payments during your lifetime. After your death, a monthly payment equal to one-half the monthly payment you received while you were alive will be made to your named survivor. If your named survivor dies before you, the reduced payment you had been receiving will continue during your lifetime and there will be no survivor benefit. You cannot name another survivor nor can you change your method of payment. If you are married, your normal form of payment is a joint and 50 percent survivor annuity with your spouse as survivor. Before you can elect a different payment option or name someone other than your spouse to receive survivor benefits, your spouse must sign an irrevocable waiver on the retirement application form and have it notarized. To be valid, this waiver must be signed within 90 days before your benefit commences. Joint-and-75-Percent Survivor Annuity (effective 1/1/08) Under this method of payment, your retirement allowance will be reduced to compensate for payments to be made over the lifetime of two persons. A reduced retirement allowance will be paid to you in monthly payments during your lifetime. After your death, a monthly payment equal to three-quarters of the monthly payment you received while you were alive will be made to your named survivor. If your named survivor dies before you, the reduced payment you had been receiving will continue during your lifetime and there will be no survivor benefit. You cannot name another survivor nor can you change your method of payment. Joint-and-100-Percent Survivor Annuity Under this option, your retirement allowance will be reduced to compensate for payments to be made over the lifetime of two persons. When you die, your named survivor s monthly payments will be equal to the monthly retirement payments you received while you were alive. If your named survivor dies before you, the reduced payments you had been receiving will continue during your lifetime and no survivor benefit will be paid. You cannot name another survivor nor can you change your method of payment. Lump-Sum Payment Under this option, your retirement allowance will be paid to you in a single payment. Incapacity retirees are NOT eligible for lump-sum payments. Because a lump-sum election may have significant financial and tax consequences for you, you should seek financial counseling before choosing this option. A lump-sum benefit can be paid directly to you or paid in a direct rollover. If you have your lump-sum benefit paid directly to you, 20 percent of the taxable portion will be withheld as required by federal law. This withholding will be applied toward any federal income taxes due on your benefit. You will be responsible for payment of any additional income taxes due. You will avoid the 20 percent withholding if you directly roll over the taxable portion of your benefit to a traditional Individual Retirement Account (IRA), or if eligible, to the Sentinel Thrift Plan or other qualified plan. To be eligible to roll over your Retirement benefit into the Thrift Plan, you must elect Normal, Early, or Separation Retirement and have a Thrift Plan account. All or part of the taxable portion of your lump-sum benefit can be rolled over. 8

9 Title III of the DuPont Pension and Retirement Plan You can also choose to directly roll over your lump-sum benefit to a Roth IRA. You will be required to pay taxes on the taxable portion of the roll over amount in the year that you request a roll over into a Roth IRA. If you die after the lump-sum amount becomes payable (your benefit commencement date) but before it is paid, the lump sum will be paid to the beneficiary named on your retirement application. Prior to your retirement date (or prior to the age at which payment is to begin on a Separation Retirement or an Early Retirement), you can revoke any payment option you previously elected. To do so, you must file written notice with the Plan Administrator. A payment option election becomes irrevocable on your retirement date (or at the age at which payment is to begin on a Separation Retirement or an Early Retirement). RETIREMENT PLAN SERVICE RULES Two types of service are defined in the Retirement Plan: 1) Years of Vesting/Eligibility Service, and 2) Years of Creditable Service. These periods of time may be different and are described as follows: YEARS OF VESTING/ELIGIBILITY SERVICE Vesting/Eligibility Service is used to determine vesting, eligibility to participate in the Plan, and eligibility for Early or Incapacity retirement. You acquire a year of Vesting/Eligibility Service when you complete 1,000 or more hours of service during a defined 12-consecutive-month anniversary period. The defined 12-consecutive-month anniversary period begins on: Your employment date, Your reemployment date following a 1-year break in service ( 1-year break in service occurs when you are credited with fewer than 500 hours of service in a 12-consecutive-month anniversary period), or Anniversaries of these dates. No Vesting/Eligibility Service will be recognized for 12-consecutive-month anniversary periods during which you are credited with fewer than 1,000 hours. This minimum 1,000-hour rule is disregarded for the year in which you terminate. No minimum number of hours is required to receive at least a partial year s credit the year you terminate. When you are on an authorized leave of absence or a disability absence, you receive credit (190 hours per month effective 6/1/1996, prior to 6/1/ hours per month) for Vesting/Eligibility Service and Creditable Service during that time. This includes educational, military, civil, and family leaves of absence as well as other disability absences. You need 5 years of Vesting/Eligibility Service to become vested in the Plan. Additional years of Vesting/Eligibility Service are required for certain types of benefits described later in the Retirement Benefits section. 9

10 VESTING Vesting means that upon termination of employment, you retain the right to your accrued retirement benefit. Under the Plan, your benefit is vested upon the earliest of: (a) completion of 5 years of vesting/ eligibility service or (b) attainment of age 65 while employed by the Company. Vesting is important because it means your Retirement Plan benefit will not be forfeited even though your employment ends. Prior to July 1, 1988, you needed 10 years of service to become vested in the Plan. YEARS OF CREDITABLE SERVICE Years of Creditable Service are the years you were a member of the Retirement Plan and are used in the retirement formula to determine the amount of your retirement benefit. As a member of the Plan, you acquire a full year of Creditable Service when you complete at least 2,080 hours of service in a 12-month period (beginning with the first of the month following the date you become a regular, full-time employee). You will be credited with 190 hours effective 6/1/1996 and prior to 6/1/1996 of service for any month in which you work one hour or more. This 12-month period begins on: Adjusted Credited Service Date; or Anniversaries of Adjusted Credited Service Date. Your Adjusted Credited Service Date will be adjusted after a 1-year break in service (a 1-year break in service occurs when you are credited with fewer than 500 hours of service in a 12-consecutive-month anniversary period). If you complete at least 1,000 hours of service, but fewer than 2,080 hours of service in a 12-consecutive-month anniversary period, you will receive a partial year of Creditable Service. A partial year of Creditable Service is determined by the following equation: Number of Hours of Service 2,080 Hours If you complete fewer than 1,000 hours during a 12-consecutive-month anniversary period, you receive no Creditable Service for that period. When you are on an authorized leave of absence or a disability absence, you receive credit (190 hours per month effective 6/1/1996 and prior to 6/1/1996) for Vesting/Eligibility Service and Creditable Service during that time. This includes educational, military, civil, and family leaves of absence, as well as other disability absences. This minimum 1,000-hour rule is disregarded for the year in which you terminate employment. No minimum number of hours is required to receive at least a partial year s credit the year you terminate. 10

11 Title III of the DuPont Pension and Retirement Plan Top-Heavy Rules The Plan includes a provision that will take effect automatically for any year in which the Plan becomes top-heavy. A top-heavy plan is one in which the total accrued benefits for key employees (officers and certain major shareholders) exceed 60% of the total accrued benefits for all employees under the Plan. The top-heavy rules provide for, among other things, faster vesting and minimum benefit levels for participants. This Plan is not now top-heavy and it is unlikely ever to become so. REEMPLOYMENT FOLLOWING TERMINATION OR RETIREMENT NON-VESTED TERMINATIONS If you terminate before you are vested, prior Vesting/Eligibility Service and Creditable Service may be recognized if you are rehired prior to January 1, If you are rehired on or after January 1, 2004, prior Vesting/Eligibility Service may be recognized upon reemployment, but Creditable Service will not be recognized upon reemployment. If you terminated employment on or after January 1, 1985 and are rehired prior to January 1, 2004, prior service will be recognized for Vesting/Eligibility if you are rehired before you have five consecutive one year breaks. If you terminated employment to care for a new child on or after December 31, 1984, you will be treated as if you had worked 501 hours in the year in which you terminated. As a result, the termination year will not be treated as a break in service. If you actually worked 501 hours in the termination year, the 501 hours will be applied to the next year for the same purpose. (A one-year break in service occurs when you are credited with fewer than 501 hours of service in a 12-consecutive-month anniversary period.) VESTED TERMINATIONS If you terminate employment after attaining 5 years of Vesting/Eligibility Service and later are reemployed by the Company prior to January 1, 2004, you will continue to be fully vested upon reemployment and you will re-enter the Plan. (There are special rules that apply to persons who terminate employment prior to being fully vested. These rules can be found in the Plan document.) Prior Vesting/ Eligibility Service is recognized immediately upon rehire. Prior Creditable Service will be recognized as follows: At reemployment, you will begin to earn a new and separate retirement benefit based upon Creditable Service beginning with your date of reemployment. In addition, you retain the prior benefit. If the prior benefit earned has not yet been paid, payment cannot be made during active employment. If you are receiving a monthly annuity from the Plan when you return to work, your pension payment will be suspended for any month in which you work 40 hours or more. Payment will be resumed after you terminate employment. Employees affected by this situation will be notified. Reemployment has no impact on a prior benefit that has been received as a lump-sum payment. Reemployment shortly after a lump-sum payment, however, could affect the tax treatment of that payment. 11

12 Once you have been reemployed as a regular, full-time employee with at least 5 complete, consecutive years without a break in service, your benefit will be the greater of: The sum of your previous unpaid benefit earned prior to your reemployment and the benefit earned after reemployment based on current services, or, A single retirement benefit based on the sum of all Creditable Service while a member of the Plan (other than that credited solely as a result of a temporary early retirement incentive program) less the present value of any previously paid lump sum benefit including refund of contributions and interest previously received by the member. If you terminate employment after attaining 5 years of Vesting/Eligibility Service and later are reemployed by the Company on or after January 1, 2004, you will continue to be fully vested upon reemployment but will not re-enter the Plan. The prior benefit cannot be paid during active employment. PENSION ESTIMATES Employees may request a pension estimate by contacting DuPont Connection by calling (800) or by going to APPLYING FOR RETIREMENT BENEFITS You should contact DuPont Connection at least 90 days prior to your anticipated Benefit Commencement Date (BCD). A retirement kit will be sent in the mail. This kit includes timing expectations, legally required notices, calculation and option details, as well as instructions on making an election to retire. Here is an example of the timing deadlines for a July 1st separation or retirement date: May 1st must call DuPont Connection and request retirement kit (90 days prior to benefit commencement date) July 1st date of separation or retirement from the Company (last day worked) July 31st submit proper paperwork with elections August 1st Benefit Commencement Date September 1st receive first annuity payment or lump sum payment EFFECTIVE DATE OF SEPARATION OR RETIREMENT FROM THE COMPANY For pension payment purposes, a Normal Retirement, Early Retirement, Incapacity Retirement, or Separation Retirement from the Company becomes effective on the first day of the calendar month following the date of termination of employment. This effective date applies regardless of when the proper retirement application and documents are filed with DuPont Connection. 12

13 Title III of the DuPont Pension and Retirement Plan BENEFIT COMMENCEMENT DATE When you re ready to commence your retirement benefit, you must choose the date you want your pension payments to start. This date can be the first of any month after you terminate employment and reach separation, early, or normal retirement eligibility under the Plan rules. If you terminate employment before age 50, the earliest date you can receive a separation retirement benefit is the first of the month following your 50th birthday. Incapacity Retirements are payable the first of the month following approval of disability by Social Security Administration. You should contact DuPont Connection at least 90 days prior to the date you want your Benefit Commencement Date to be. Failing to notify DuPont Connection at least 90 days prior to commencement could delay receipt of your first pension payment. PRE-RETIREMENT SURVIVOR BENEFITS PRE-RETIREMENT SURVIVING SPOUSE ANNUITY (PRSSA) All employees who were active on or after August 23, 1984 are eligible for PRSSA. If you die before you elect to receive your retirement benefit, no benefit is paid other than a PRSSA. If you are vested in the Retirement Plan and are married, your spouse is entitled to receive a pre-retirement surviving spouse annuity (PRSSA) if you die before the effective date of your retirement, or, in the case of Early or Separation Retirement, if you die before your earliest eligible payment age. A PRSSA benefit is a lifetime annuity paid to your spouse. The annuity payment will be one-half the amount that would have been payable to you had you retired on the first of the month preceding your death and elected to receive your payments in the form of a joint-and-50-percent survivor benefit with your spouse as survivor. If you die before age 50, PRSSA payments to your spouse are effective on the first day of the calendar month after the date on which you would have reached age 50. If you die on or after age 50, PRSSA payments to your spouse are effective the first of the month following your death. ENHANCED PRE-RETIREMENT SURVIVOR COVERAGE This is only for employees who were active on or after September 1, If you have 15 years of vesting service and die while an active employee, your named survivor is entitled to receive a pre-retirement survivor annuity similar to the above, except: No early reduction factor will be applied to reflect payment before your normal retirement date; and Payment of the survivor annuity will be effective on the first day of the month following the month of your death, regardless of age. This benefit does not apply to terminated or retired employees or to a pre-retirement surviving spouse annuity paid to an alternate payee under a Qualified Domestic Relations Order. 13

14 If you are eligible for enhanced pre-retirement survivor coverage, you do not have to be married to name a survivor. Eligible non-spouse survivors are: an unmarried dependent child or children under age 21, dependent handicapped child, or a dependent parent. To be eligible for a benefit, the named survivor must meet one of these eligibility requirements as of the date of your death. The term dependent means primarily dependent on you for support, unemployed (except for part-time or summer work), and eligible to be claimed as a dependent on your federal income tax return. If the survivor is a non-handicapped child, the pre-retirement survivor annuity will be paid until the earliest of: The child s 21st birthday, The date on which the child marries, or The date the child becomes employed other than part-time or summer work. The pre-retirement survivor annuity will be shared equally when two or more children are named as survivors. When one of the children is no longer eligible to receive the benefit, the benefit amount paid to other eligible survivors will not change. Survivor benefits paid to a spouse, handicapped child, or dependent parent are paid for the life of the survivor. If you are married and want to name a survivor other than your spouse, your spouse must waive the right to a pre-retirement surviving spouse annuity. Coverage is automatic, and there is no charge. Employees can change named survivor designations at any time by calling DuPont Connection. A new spousal waiver must be provided with each change. The change in survivor designation will be effective when DuPont Connection receives the form. If you are an eligible employee and die without having designated a beneficiary or your named survivor does not qualify for survivor benefits, the enhanced pre-retirement survivor annuity will be paid to your spouse. If you do not have a spouse, the named survivor will be the first of the following: a handicapped child, or, if none, all qualified children equally, or if none, then the youngest dependent parent. Return of Member Deposits in the Event of Death If at the time of death you are not married or have waived the PRSSA option, any of your contributions and interest remaining in the Plan will be paid to your named beneficiary or to your estate. 14

15 ADMINISTRATIVE INFORMATION Title III of the DuPont Pension and Retirement Plan Plan Name and Identification Numbers The formal name of the Plan is the Retirement Plan of Sentinel Transportation, LLC (also known as the DuPont Pension and Retirement Plan, Title III). The Plan is maintained by E.I. du Pont de Nemours and Company (DuPont), 1007 Market Street, Wilmington, DE In any formal correspondence about the Plan, refer to the Employer Identification Number. The number is EIN The official Plan number is 001. Plan Type and Plan Year The Plan is a defined benefit pension plan. The Plan Year is January 1 to December 31. Plan Administration and Funding Legal process may be served on E.I. du Pont de Nemours and Company, 1007 Market Street, Wilmington, DE 19898, (302) as Plan Administrator. DuPont makes contributions to the Pension Trust Fund as necessary in order to meet the current and actuarially projected obligations of the Plan. Pension benefits described in the Plan are paid solely from the Pension Trust Fund. The trustee for the Plan is State Street Corporation, Lafayette Corporate Center, 2 Avenue de Lafayette, LCC 0230, Boston, MA 02111, (617) Benefits are paid to retirees and beneficiaries directly from the Pension Trust Fund. The paying agent is State Street Bank, Retiree Services, P.O. Box Jacksonville, FL , The Benefits Administration Committee and the Benefits Appeal Committee have, as applicable, the full authority to interpret and apply the provisions of the Plan document. Qualified Domestic Relations Orders Generally, Plan benefits are paid only to you or your survivors. However, an exception to this may be made as a result of a qualified domestic relations order ( QDRO ). A domestic relations order is a court-ordered payment of benefits in connection with a support order, divorce, legal separation, or custody case. This means the Plan trustee may be obligated to pay part of your Plan benefit to someone else --- for example, your former spouse, children, or other dependent --- to comply with such an order. There are specific legal requirements that a domestic relations order must meet to be recognized by the Plan Administrator. For details on the specific procedures governing Qualified Domestic Relations Orders contact the Plan Administrator. Liens Except for federal tax liens initiated by the IRS, no lien may be created on any of the funds, securities, or other property held under the Plan, and any attempt to pledge, encumber, or change any of the funds, securities, or other property held under the Plan shall be void. 15

16 Insured Benefits 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 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 your Plan has and on 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 Technical Assistance Division K Street N.W., Suite 930, Washington, D.C or call (not a toll free number). TTY/TDD users may call the federal relay service toll-free at and ask to be connected to Additional information about the PBGC s pension insurance program is available through the PBGC s website on the Internet at Maximum Benefit Limitation Federal law limits the amount of pension benefits payable to or on behalf of any individual. Since this limitation generally applies only to highly compensated employees anyone whose benefit may be affected is notified individually. Detailed information on the amount of this limitation is contained in the official text of the Plan. IRS Approval The Plan is qualified under Section 401(a) of the Internal Revenue Code and is subject to the continuing approval of the Internal Revenue Service. If IRS regulations change, Plan provisions may also change. Plan Documents This Summary Plan Description is intended to provide you with a reasonably thorough explanation of the Retirement Plan of Sentinel Transportation, LLC (DuPont Pension and Retirement Plan, Title III). Wherever possible, nontechnical language has been used to explain Plan provisions. The official Plan texts are the DuPont Pension and Retirement Plan, Title III, and the Trust Agreement between DuPont and the Plan trustee. These texts are the governing documents in the event of a discrepancy. 16

17 Title III of the DuPont Pension and Retirement Plan 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 ). ERISA provides that all Plan participants shall be entitled to: Receive information about Your Plan and Benefits Examine, without charge, at the office of the Plan Administrator and at other specified locations, such as worksites and union halls, all documents governing the Plan 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 Employee Benefits Security 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 Plan Administrator may make a reasonable charge for the copies. Receive an Annual Funding Notice which contains basic information about the funding status and financial condition of the Plan. Obtain a statement telling you whether you have a right to receive a benefit at normal retirement age (age 65) and, if so, what your benefit would be at normal retirement age if you stopped working under the Plan now. If you do not have a right to a benefit, the statement will tell you how many more years you have to work to get a right to a benefit. This statement must be requested in writing and is not required to be given more than once every 12 months. The Plan Administrator must provide the statement free of charge. Prudent Action 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 Plan. The people who operate your Plan, called fiduciaries of the Plan, have a duty to run the Plan prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA. Enforce Your Rights If your claim for a benefit is denied or ignored in whole or in part, you have the 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 several steps you can take to enforce the above rights. For instance, if you request materials from the Plan Administrator and do not receive them within 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 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 Administrator s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in Federal court. If it should happen that Plan fiduciaries misuse the Plan Administrator 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 17

18 should pay court costs and legal fees. If you win the suit, 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 that your claim is frivolous. Assistance with Your Questions If you have any questions about the 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 NW, Washington, DC You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. Using ERISA s Claims Procedure ERISA requires that the plans it covers include certain procedures for filing claims and for reviewing claims that are denied. The intent is to make sure that all benefit claims are considered fully, clearly, and promptly. File your claim for benefits in writing with DuPont Connection, P.O. Box 1407, Lincolnshire, IL If your claim does not include the correct information, you will be notified, in writing, what you need to do to get your claim processed. If Your Claim Is Denied If your claim is denied, you will be told in writing within 90 days after your claim is received. That reply will include: Specific reasons for the denial; References to the provisions of the benefit plan or practice involved; A description of what additional information is necessary and why; and A copy of these procedures or comparable information about the steps you need to take to resubmit it. If the reply cannot be made in 90 days, you will be given written notice explaining the reasons why. Extensions will not exceed another 90 days. If no satisfactory resolution is reached, your final appeal is to DuPont. The appeal should be made in a timely manner, preferably within 60 days after receiving the original claim decision or after receiving a claim denial. In your appeal, list the issues and comments you want considered. If you prefer, you may have an authorized representative send in the appeal on your behalf. You or your representative may, at a reasonable time and place, inspect relevant documents which may affect your claim. Within 60 days after your appeal for review is received, you will receive a written response. In the case of a continued denial, you will be given the specific reasons and plan provisions on which the denial is based. If the review cannot be made within 60 days, you will be notified in writing. Again, that notification will outline the reasons behind the delay. DuPont, as Plan Administrator, has final authority and discretion to interpret the Plan, resolve any ambiguities and determine eligibility for benefits, and its decisions are final and binding. 18

19 Title III of the DuPont Pension and Retirement Plan Plan Amendment or Termination DuPont reserves the right to amend or terminate the Plan. In the event of permanent discontinuance of contributions, termination, or partial termination of this Plan, all participants in this Plan with respect to whom such discontinuance, termination or partial termination is applicable shall be fully vested with respect to their accrued benefit and such benefits shall be nonforfeitable as of the date of such discontinuance, termination or partial termination. In such event, DuPont will direct the Trustee to allocate the net assets of any trust fund and of any insurance company contracts as required by ERISA, Title IV Section DuPont may direct the Trustee to distribute the amounts allocated to the persons entitled thereto either in cash or in other assets, including immediate or deferred annuity contracts, as the Company in its sole discretion will determine; provided, however, that the allocation and distributions may be subject to the review of and approval by the Internal Revenue Service, the U.S. Department of Labor, and the Pension Benefit Guaranty Corporation before such allocations and distributions are made. Laws Governing the Plan The Plan will be construed and enforced according to the provisions of the Employee Retirement Income Security Act of 1974, as amended ( ERISA ), which sets forth the minimum requirements concerning participation, vesting and other matters that an employee benefit plan must satisfy, and provides rules regarding the manner in which an employee benefit plan is to be administered. ERISA also requires that an employee benefit plan prepare periodic reports and provide or make available other information to the participants in the Plan. For additional information concerning your rights under ERISA, see the Your Rights Under ERISA section within this SPD. Circumstances Which May Result in Disqualification, Ineligibility, Denial or Loss of Benefit Termination of employment without a vested right; a layoff of over one year s duration; failure to return from an authorized leave of absence; failure of a disabled participant to return to work after a period of disability has ended. Failure to notify the Plan Administrator of a participant s address can result in the Plan being unable to pay all or some of the participant s benefits. Questions About the Plan Whenever you have questions about coverage under this Plan, first consult this Summary Plan Description. You may also call DuPont Connection at (800) If your questions still have not been answered, you may contact the Sentinel Human Resources Department. 19

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