|CUMMINS INC filed this Form 10-K on 02/11/2019|
Section 6.01. General Provisions.
(a) No benefits shall be payable under this Article with respect to an Executive for whom
death benefits have been paid pursuant to Article V.
(b) Benefits payable pursuant to this Article shall commence or be paid, if payable in a lump sum, on the Executive’s Annuity Starting Date.
Section 6.02. Normal Retirement Benefit. Subject to the modifications specified in Appendix A with respect to certain Executives, an Executive with at least 10 years of Service who Terminates Employment on or after reaching age 60 shall receive from the Trustee, beginning as of the first day of the month coincident with or next following his Termination of Employment, in monthly installments, a Supplemental Life Annuity in an annual amount equal to:
(a) 2% of the Executive’s Average Covered Compensation times his years of Service not exceeding 20 years; plus
(b) 1% of the Executive’s Average Covered Compensation times his years of Service in excess of 20, up to a maximum of 10 years; plus
(c) in the case of an Executive who was one of the two most highly compensated Executives of the Company as of December 31, 2011, an additional 10% of Average Covered Compensation; minus
(d) the Executive’s annual benefit from the Pension Plan and the Excess Benefit Plan, if applicable, determined as if such annual benefit (i) commenced on the first day of the month coincident with or next following the Executive’s Termination of Employment and (ii) were payable in monthly installments in the form of a single life annuity to the Executive; minus
(e) any non-U.S. benefits set forth in Appendix B to which the Executive is or may become entitled, if any.
Section 6.03. Early Retirement. If an Executive with at least 10 years of Service Terminates Employment on or after age 55 but before reaching age 60, the Executive shall be entitled to receive from the Trustee, beginning as of the first day of the month coincident with or next following his Termination of Employment, in monthly installments, a Supplemental Life Annuity in an annual amount equal to the amount determined in accordance with Section 6.02, reduced as follows: by 1/3 of 1% for each full month by which the Executive’s Annuity Starting Date precedes his 60th birthday; provided, however, in the case of an individual who was an Executive before 2006, no reduction shall be made, if the Executive (i) Terminates Employment after reaching age 55 and completing 20 years of Service and his total years of age and Service upon Termination of Employment are at least 80 or (ii) was a participant in the Prior Plan and has completed at least 30 years of Service upon Termination of Employment.