SEC Filings


10-K
CUMMINS INC filed this Form 10-K on 02/11/2019
Entire Document
 


APPENDIX B
Non-U.S. Benefit Offsets

1.
The Supplemental Life Annuity shall be offset as provided in Section 6.02(e), to the extent applicable, by the annualized equivalent of benefits to which the Executive is entitled under any other employer-funded non-U.S. retirement program similar to the US Cummins Pension Plan
2.
The annualized equivalent shall be determined as follows: To the extent the benefit is provided in periodic payments or in a lump sum under the terms of the applicable non-U.S. retirement program, the annualized equivalent will be determined by calculating the present value, as of the first day of the month (a) coincident with or next following the Executive’s Annuity Starting Date (for periodic payments) or (b) coincident with or next following the Executive’s Termination of Employment (for lump sum payments), of a lump sum equivalent of the total of the projected periodic payments or the lump sum payment itself, as applicable, calculated by applying the applicable actuarial assumptions and discount rate set forth in Appendix 1 to the Cummins Pension Plan, and converting such lump sum to an annual benefit of equivalent present value assuming such annual benefit (i) commences on the first day of the month coincident with or next following the Executive’s Annuity Starting Date (for periodic payments) or coincident with or next following Termination of Employment (for lump sum payments) and (ii) is payable in monthly installments in the form of a single life annuity to the Executive.

3.
Notwithstanding anything to the contrary in the foregoing or the Plan, (a) the foregoing offset shall not apply to the extent such offset would cause additional taxes to be due under Code Section 409A and (b) in calculating the Supplemental Life Annuity, the Administrator may make a reasonable estimate of the Executive’s benefits under non-U.S. arrangements and pay benefits under the Plan on that basis.

Acknowledgement and Agreement:

By signing below, I hereby acknowledge and agree to the application of the offset described in this Appendix B in calculating the benefits payable to me or my survivors or Beneficiaries under the Plan.

___________________                        Date: _____________________
[Executive Name]


B-1