FARAH U.S.A., INC. BARGAINING UNIT PENSION PLAN
As Amended and Restated Effective
January 1, 1990
(Except to the Extent Otherwise Indicated)
FARAH INCORPORATED
EL PASO, TEXAS
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TABLE OF CONTENTS
SECTION PAGE - ------- ----
DEFINITIONS: PARTICIPATION
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1.1 - DEFINITIONS........................................................ 3 1.2 - PARTICIPATION..................................................... 10 1.3 - LEAVE OF ABSENCE AND TERMINATION OF SERVICE........................ 12 1.4 - REEMPLOYMENT....................................................... 13 1.5 - TRANSFER TO OR FROM STATUS AS AN EMPLOYEE.......................... 18 1.6 - ELECTION NOT TO PARTICIPATE IN PLAN................................ 21 1.7 - RIGHTS OF OTHER EMPLOYERS TO PARTICIPATE........................... 22
NORMAL AMOUNT AND PAYMENT OF RETIREMENT INCOME
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2.1 - NORMAL RETIREMENT AND RETIREMENT INCOME............................ 24 2.2 - EARLY RETIREMENT AND RETIREMENT INCOME............................. 25 2.3 - DISABILITY RETIREMENT AND RETIREMENT INCOME........................ 27 2.4 - BENEFITS OTHER THAN ON RETIREMENT.................................. 30 2.5 - MINIMUM ACCRUED MONTHLY INCOME..................................... 36 2.6 - NO DUPLICATION OF BENEFITS......................................... 36
SPECIAL PROVISIONS REGARDING PAYMENT OF BENEFITS
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3.1 - OPTIONAL FORMS OF RETIREMENT INCOME................................ 37 3.2 - LUMP-SUM PAYMENT OF SMALL RETIREMENT INCOME........................ 40 3.3 - BENEFITS APPLICABLE TO PARTICIPANT WHO HAS
BEEN OR IS EMPLOYED BY TWO OR MORE EMPLOYERS....................... 42 3.4 - FUNDING OF BENEFITS THROUGH PURCHASE OF LIFE
INSURANCE CONTRACT OR CONTRACTS.................................... 42 3.5 - DIRECT ROLLOVERS................................................... 43
GOVERNMENTAL REQUIREMENTS AFFECTING BENEFITS
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4.1 - SPECIAL PROVISIONS REGARDING AMOUNT AND PAYMENT
OF RETIREMENT INCOME............................................... 46 4.2 - TEMPORARY LIMITATIONS ON BENEFITS REQUIRED BY THE
INTERNAL REVENUE SERVICE........................................... 68 4.3 - BENEFITS NONFORFEITABLE IF PLAN IS TERMINATED...................... 74 4.4 - MERGER OF PLAN..................................................... 74 4.5 - TERMINATION OF PLAN AND DISTRIBUTION OF TRUST FUND................. 75
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4.6 - SPECIAL PROVISIONS THAT APPLY IF PLAN IS TOP-HEAVY................. 80 4.7 - PARTICIPATION AND BENEFITS FOR LEASED EMPLOYEES.................... 89
MISCELLANEOUS PROVISIONS REGARDING PARTICIPANTS
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5.1 - PARTICIPANTS TO FURNISH REQUIRED INFORMATION....................... 91 5.2 - BENEFICIARIES...................................................... 92 5.3 - CONTINGENT BENEFICIARIES........................................... 94 5.4 - PARTICIPANTS' RIGHTS IN TRUST FUND................................. 95 5.5 - BENEFITS NOT ASSIGNABLE............................................ 95 5.6 - BENEFITS PAYABLE TO MINORS AND INCOMPETENTS........................ 96 5.7 - CONDITIONS OF EMPLOYMENT NOT AFFECTED BY PLAN...................... 97 5.8 - NOTIFICATION OF MAILING ADDRESS.................................... 97 5.9 - WRITTEN COMMUNICATIONS REQUIRED.................................... 98 5.10 - BENEFITS PAYABLE AT OFFICE OF TRUSTEE.............................. 98 5.11 - APPEAL TO COMMITTEE................................................ 98
MISCELLANEOUS PROVISIONS REGARDING THE EMPLOYER
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6.1 - CONTRIBUTIONS..................................................... 101 6.2 - EMPLOYER'S CONTRIBUTIONS IRREVOCABLE.............................. 101 6.3 - FORFEITURES....................................................... 102 6.4 - AMENDMENT OF PLAN................................................. 102 6.5 - TERMINATION OF PLAN............................................... 104 6.6 - EXPENSES OF ADMINISTRATION........................................ 105 6.7 - FORMAL ACTION BY EMPLOYER......................................... 105
ADMINISTRATION
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7.1 - ADMINISTRATION BY COMMITTEE....................................... 106 7.2 - OFFICERS AND EMPLOYEES OF COMMITTEE............................... 106 7.3 - ACTION BY COMMITTEE............................................... 107 7.4 - RULES AND REGULATIONS OF COMMITTEE................................ 108 7.5 - POWERS OF COMMITTEE............................................... 108 7.6 - DUTIES OF COMMITTEE............................................... 108 7.7 - INDEMNIFICATION OF MEMBERS OF COMMITTEE........................... 109 7.8 - ACTUARY........................................................... 110 7.9 - FIDUCIARIES....................................................... 111 7.10 - APPLICABLE LAW.................................................... 112
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TRUST FUND
---------- 8.1 - PURPOSE OF TRUST FUND............................................. 113 8.2 - BENEFITS SUPPORTED ONLY BY TRUST FUND............................. 113 8.3 - TRUST FUND APPLICABLE ONLY TO PAYMENT OF BENEFITS................. 113
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INDEX OF DEFINED TERMS
DEFINED TERM PAGE - ------------ ----
Actuarially equivalent...........................................................8 Beneficiary......................................................................8 Break in Service.................................................................9 Committee........................................................................4 Company..........................................................................3 Credited Service.................................................................6 Deferred Monthly Retirement Income Commencing at
Normal Retirement Date..................................................7 Designated nonparticipating employer.............................................4 Disability retirement...........................................................27 Early retirement................................................................25 Early retirement date...........................................................26 Effective date of the plan.......................................................4 Employee.........................................................................4 Employer.........................................................................3 Hour of Service..................................................................5 Initial Vesting Date.............................................................7 Last date of commencement of employment..........................................5 Leave of absence................................................................12 Normal retirement...............................................................24 Normal retirement date..........................................................24 Participant......................................................................5 Plan.............................................................................3 Plan year........................................................................8 Required Beginning Date..........................................................9 Single-sum value.................................................................7 Superseded plan..................................................................3 Supplement.......................................................................3 Termination of service..........................................................12 Trust............................................................................8 Trust agreement..................................................................3 Trust fund.......................................................................8 Trustee..........................................................................4 Vesting Service..................................................................6
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FARAH U.S.A., INC. BARGAINING UNIT PENSION PLAN
As Amended and Restated Effective January 1, 1990
(Except to the Extent Otherwise Indicated)
INTRODUCTION
The Farah Manufacturing Company, Inc. Pension Plan and the Farah Manufacturing Company, Inc. Pension Trust were adopted by Farah Manufacturing Company, Inc. effective as of August 1, 1976 as an amendment and complete restatement of the pension plan originally adopted by said employer effective as of July 27, 1970.
Effective as of February 17, 1977, the Farah Manufacturing Company, Inc. Bargaining Unit Pension Plan and the Farah Manufacturing Company, Inc. Bargaining Unit Pension Trust were adopted by Farah Manufacturing Company, Inc. as a spin off from the aforementioned Farah Manufacturing Company, Inc. Pension Plan and the Farah Manufacturing Company, Inc. Pension Trust in order to establish a new and separate pension plan and trust for its eligible bargaining unit employees. Said pension plan and trust for the Company's bargaining unit employees were set forth in an agreement titled Farah Manufacturing Company, Inc. Bargaining Unit Pension Plan and Trust Agreement.
Effective as of September 4, 1979, that portion of the aforementioned Farah Manufacturing Company, Inc. Bargaining Unit Pension Plan and Trust Agreement setting forth the provisions of the Farah Manufacturing Company, Inc. Bargaining Unit Pension Plan was amended and restated in its entirety.
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Effective as of March 31, 1987, Farah Manufacturing Company, Inc. was re-named Farah Incorporated.
Effective as of December 31, 1990, the Farah Retiree Plan was merged into the Farah Manufacturing Company, Inc. Bargaining Unit Pension Plan.
Effective as of January 1, 1990, except to the extent otherwise indicated, the Farah Manufacturing Company, Inc. Bargaining Unit Pension Plan is being amended and restated in its entirety and, effective as of January 1, 1995, the name of the Farah Manufacturing Company, Inc. Bargaining Unit Pension Plan is being changed to the Farah U.S.A., Inc. Bargaining Unit Pension Plan.
Subject to receipt by Farah Incorporated of favorable rulings that the qualified status of the Farah U.S.A., Inc. Bargaining Unit Pension Plan and the related trust under Sections 401(a) and 501(a) of the Internal Revenue Code of 1986 is not adversely affected by such amendment and restatement, each person who becomes a participant hereunder shall be entitled upon his retirement or termination of service to such benefits as are specified in the provisions which follow.
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SECTION 1
DEFINITIONS: PARTICIPATION
1.1 - DEFINITIONS
(A) The following words and phrases shall have the meanings stated below unless a different meaning is plainly required by the context:
(1) The term "Company" as used herein means Farah
Incorporated, a corporation, and its successor or
successors.
(2) The term "Employer" as used herein means,
collectively or distributively as the context may
indicate, the Company and any other corporations,
associations, joint ventures, proprietorships or
partnerships which have adopted and are participating
in the plan in accordance with the provisions of
Section 1.7 hereof.
(3) The term "plan" as used herein means the Farah
U.S.A., Inc. Bargaining Unit Pension Plan (prior to
January 1, 1995, the plan was known as the Farah
Manufacturing Company, Inc. Bargaining Unit Pension
Plan) as amended and restated effective as of January
1, 1990, except to the extent otherwise indicated, as
set forth in this document and as it may hereafter be
amended from time to time.
(4) The term "trust agreement" as used herein means the
Farah Manufacturing Company, Inc. Bargaining Unit
Pension Trust as amended and restated effective as of
September 4, 1979 as set forth in the trust agreement
of that title, which is attached to this plan, as
such trust agreement may thereafter be amended from
time to time.
(5) The term "superseded plan" as used herein means,
collectively or distributively, as the context may
indicate, the qualified retirement plan, if any,
which was maintained by an Employer for its eligible
employees prior to the effective date of the plan and
which the plan and trust agreement represent an
amendment and restatement thereof. References to the
superseded plan as of any given date shall refer to
the provisions as set forth under the terms of the
applicable document describing such qualified
retirement plan as amended and in effect on such
given date prior to the effective date of the plan.
(6) The term "supplement" as used herein means any
supplement which is attached to and made a part of
the plan and which describes provisions of the
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plan which apply only to employees of an Employer or
Employers specified in such supplement.
(7) The term "designated nonparticipating employer" as
used herein means:
(a) any corporation or association which is not
an Employer as defined herein and which is a
member of a controlled group of corporations
(within the meaning of Section 1563(a) of
the Internal Revenue Code of 1986, as
amended) with respect to which the Employer
is a member or is the common parent
corporation;
(b) any trade or business (whether or not
incorporated) which is not an Employer as
defined herein and which is under common
control with the Employer as determined in
accordance with Section 414(c) of the
Internal Revenue Code of 1986, as amended,
and regulations issued thereunder;
(c) any service organization which is not an
Employer as defined herein and which is a
member of an affiliated service group
(within the meaning of Section 414(m) of the
Internal Revenue Code of 1986, as amended)
with respect to which the Employer is a
member; and
(d) any other corporation, association,
proprietorship, partnership, or other
business organization which (i) is not an
Employer as defined herein and (ii) the
board of directors of the Company designates
on the basis of a uniform policy applied
without discrimination as a "designated
nonparticipating employer" for the purposes
of this plan.
(8) The term "trustee" as used herein means the corporate
trustee or the individual trustees, as the case may
be, appointed from time to time pursuant to the
provisions of the trust agreement to administer the
trust fund maintained for the purposes of the plan.
(9) The term "effective date of the plan" as used herein
means January 1, 1990, except to the extent otherwise
indicated, or such later date as of which the plan
first became effective with respect to the particular
Employer concerned.
(10) The term "Committee" as used herein means the
Retirement Committee appointed from time to time to
administer the plan pursuant to the provisions of
Section 7.1 hereof.
(11) The term "Employee" as used herein means any person
employed by the Employer whose working conditions are
determined under a collective
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bargaining agreement between the Employer and the
Amalgamated Clothing and Textile Workers Union.
(12) The term "participant" as used herein means (a) any
active Employee who has satisfied the requirements of
Section 1.2 hereof, (b) any former Employee who has
satisfied the requirements of Section 1.2 hereof,
whose service has not been terminated but who has
subsequently been transferred from his status as an
Employee as defined herein and (c) any retired or
terminated Employee who has vested rights to benefits
under the provisions of the plan.
(13) The term "last date of commencement of employment"
means:
(a) if the employee's service has not been
previously terminated in accordance with the
provisions hereof, the date on which he
first performs an Hour of Service for an
Employer or for any predecessor business of
an Employer conducted as a corporation,
partnership or proprietorship; or
(b) if the employee's service has been
previously terminated in accordance with the
provisions hereof, the first day following
his last termination of service on which he
performs an Hour of Service for an Employer
or for any predecessor business of an
Employer conducted as a corporation,
partnership or proprietorship;
provided, however, that the last date of commencement
of employment of an employee, who immediately before
his current employment was employed by a predecessor
or acquired business up to the date of its merger
with or acquisition by the Employer, shall not be
earlier than the date fixed for this purpose by the
Employer and provided that the same date is uniformly
fixed for this purpose as to all of the employees of
a given predecessor or acquired business.
(14) The term "Hour of Service" as used herein means each
hour during an applicable computation period for
which an employee is directly or indirectly paid, or
is entitled to payment, by the Employer for (a) the
performance of duties for the Employer or (b) reasons
other than the performance of duties for the
Employer, including but not limited to vacation,
holidays, sickness, disability, paid layoff and
similar paid periods of nonworking time. Such Hours
of Service shall be credited to the employee for the
computation period in which such duties were
performed or in which occurred the period during
which no duties were performed. An Hour of Service
also includes each hour, not credited above, for
which backpay, irrespective of mitigation of damages,
has been either awarded or agreed to by the Employer.
These Hours of Service shall be credited to the
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employee for the computation period to which the
award or agreement pertains. The number of Hours of
Service to be credited to an employee for any
computation period shall be governed by Sections
2530.200b-2(b) and 2530.200b-2(c) of Part 2530 of
Subchapter C of Chapter XXV of Title 29 of the Code
of Federal Regulations (Department of Labor
regulations relating to minimum standards for
employee pension benefit plans).
(15) The term "Credited Service" as used herein means the
total period of an employee's service with the
Employer, computed in completed months, during the
period beginning on his last date of commencement of
employment and ending on his date of actual
retirement or termination of employment or, where
applicable, ending on such other date as is specified
hereunder; provided, however, that:
(a) with respect to any period of such an
employee's service which would be included
in his Credited Service in accordance with
the provisions above, any complete calendar
month that the employee is absent from the
service of the Employer will be excluded
from his Credited Service unless he receives
regular compensation from the Employer for
all or any portion of such calendar month
and except as otherwise provided below;
(b) any absence due to the employee's engagement
in military service will be included in his
Credited Service if such absence is covered
by a leave of absence granted by the
Employer or is by reason of compulsory
military service;
(c) any period of service while the employee was
a partner or proprietor of an Employer or of
a predecessor business of an Employer shall
be excluded from his Credited Service; and
(d) the provisions of Sections 1.4 and 1.5
hereof shall apply in the case of an
employee who is reemployed with a
reinstatement of Credited Service accrued
prior to his last date of commencement of
employment or is transferred to or from his
status as an Employee as defined herein.
(16) The term "Vesting Service" as used herein means the
total period of elapsed time, computed in years and
days, during the period beginning on the employee's
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