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Title: |
ERISA Excess Plan |
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Date: |
2001 |
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Preview shows 5KB of 13KB total |
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$35 |
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ID: |
#280768 |
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/s/ Ogilvy
OGILVY & MATHER ERISA EXCESS PLAN
SUMMARY PLAN DESCRIPTION
APRIL 2001
{PAGE}
OGILVY & MATHER ERISA EXCESS PLAN
SUMMARY PLAN DESCRIPTION
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INTRODUCTION
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This booklet is your Summary Plan Description ("SPD") for the Ogilvy & Mather's
ERISA Excess Plan (the "ERISA Excess Plan"). The ERISA Excess Plan was
established by Ogilvy & Mather to provide "make whole" benefits to employees
whose benefits under the Account Balance Plan are limited by law.
You should read this booklet carefully and refer here first when you have any
questions about the ERISA Excess Plan. If this SPD does not answer your
questions, or if you need further information, you may contact the Corporate
Human Resources Department at Ogilvy & Mather, 309 West 49/th/ Street, New York,
NY 10019, 212-237-4000.
April 2001
{PAGE}
OGILVY & MATHER ERISA EXCESS PLAN
SUMMARY PLAN DESCRIPTION
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HOW DOES THE PLAN WORK?
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Internal Revenue Code Section 401(a)(17) imposes limits on the amount of
benefits that can be provided under an employer's "qualified plan." For
example, under the Ogilvy & Mather (the "Company") Account Balance Plan (a
qualified plan), eligible employees receive a contribution from the Company of
10% of their annual base salary; however, by law, only salary up to a designated
maximum per year ($170,000 for 2001) can be taken into account when making the
contribution. So, the maximum contribution any employee can receive under the
Account Balance Plan in 2001 is $17,000 (10% of $170,000).
The ERISA Excess Plan provides employees who earn more than $170,000 per year
with a "make whole" contribution from the Company of 10% of base salary that is
above $170,000. (If you are not eligible to participate in the Account Balance
Plan, you are not eligible to receive a contribution under the ERISA Excess
Plan.)
It should be noted that the ERISA Excess Plan is a form of "non-qualified plan,"
which is a promise by an employer to participants to pay income, at some future
date, for services performed currently. The contributions the Company makes on
your behalf to the ERISA Excess Plan are sheltered from immediate taxes, by
deferring the payment of taxes until you receive a distribution from the Plan
(which is when you leave employ with the Company, or when you retire, whichever
comes first). All future deferred income payments are subject to income tax
withholding.
It is important to note that contributions to this ERISA Excess Plan will not
begin until you have earned $170,000 (or the maximum salary limit designated by
the IRS for the plan year).
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WHEN AM I ELIGIBLE TO PARTICIPATE?
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All employees who earn in excess of the maximum salary limit (for 2001,
$170,000) and who are eligible to participate in the Account Balance Plan are
automatically enrolled in the ERISA Excess Plan.
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HOW ARE CONTRIBUTIONS RECORDED?
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Under the ERISA Excess Plan, the Company will record a contribution for you at
the end of each plan year equal to 10% of your annual base salary above the
maximum salary limit for that plan year ($170,000 for 2001). Interest is
credited on amounts recorded at the prime rate (as determined on the last day of
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