Abbott-Abbvie Multiple Employer Pension Plan
Total Page:16
File Type:pdf, Size:1020Kb
Abbott-AbbVie Multiple Employer Pension Plan Summary Plan Description Effective January 1, 2013 This summary plan description (SPD) describes the key features of the Abbott-AbbVie Multiple Employer Pension Plan effective January 1, 2013. This booklet describes only the highlights of the plan and does not attempt to cover all administrative details. Every attempt has been made to communicate this information clearly and in easily understandable terms. Benefits and services described here apply only to those former employees and retirees eligible for benefits under the plan. The boards of directors of the companies, or when applicable, the Abbott-AbbVie Pension Plan Administrative Committee, reserve the right to modify, suspend or terminate these benefits at any time to the extent permitted by law. This SPD does not constitute a contract of employment or guarantee any particular benefit. The terms of the Abbott-AbbVie Multiple Employer Pension Plan are governed by the plan and trust documents. In case of a conflict between this SPD and those documents, the plan and trust documents will control. Table of Contents Introduction................................................................................................................................................. 1 Eligibility ..................................................................................................................................................... 1 Eligible Employees ................................................................................................................................. 1 Ineligible Employees ............................................................................................................................... 1 Enrollment .................................................................................................................................................. 2 Plan Benefits .............................................................................................................................................. 2 Benefit Maximums ...................................................................................................................................... 2 Eligible Service ........................................................................................................................................... 2 Vesting Service ....................................................................................................................................... 2 Benefit Service ....................................................................................................................................... 3 Seniority Service ..................................................................................................................................... 4 Eligible Earnings ........................................................................................................................................ 4 Basic Earnings ........................................................................................................................................ 4 Final Earnings ......................................................................................................................................... 4 Your Benefit ............................................................................................................................................... 6 Annuity Formula for Service Earned January 1, 2004 and Later ........................................................... 6 Formula for Employees with Service Prior to January 1, 2004 .............................................................. 6 Available Retirement Dates........................................................................................................................ 7 Normal Retirement ................................................................................................................................. 7 Early Retirement ..................................................................................................................................... 7 If You Were Hired January 1, 2004 or Later........................................................................................... 7 If You Were Hired Before January 1, 2004 ............................................................................................ 7 Benefit Reductions for Early Retirement ................................................................................................ 7 Special Retirement ................................................................................................................................. 8 Early Special Retirement ........................................................................................................................ 8 Deferral of Retirement Benefits .................................................................................................................. 9 Sample MEPP Benefit Calculation ............................................................................................................. 9 Sample MEPP Benefit Calculation ....................................................................................................... 10 Final Calculation ................................................................................................................................... 10 Payment of Benefits ............................................................................................................................. 10 Normal Forms of Payment ................................................................................................................... 11 Optional Forms of Payment .................................................................................................................. 11 Vested Benefits .................................................................................................................................... 13 Reemployment (Rehires)...................................................................................................................... 14 Death Benefits ...................................................................................................................................... 14 Preretirement Surviving Spouse’s Pension Benefit (PRSSPB) ........................................................... 14 Requests for Benefit Estimates ............................................................................................................ 16 Procedure to Obtain Benefits ............................................................................................................... 17 Right of Recovery ................................................................................................................................. 17 Loss of Benefits .................................................................................................................................... 17 Pension Benefit Guaranty Corporation (PBGC) ................................................................................... 17 Administrative Information ........................................................................................................................ 18 Plan Identification ................................................................................................................................. 18 Plan Trustee ......................................................................................................................................... 18 Participating Employers ........................................................................................................................ 18 Plan Changes ....................................................................................................................................... 18 Legal Service ........................................................................................................................................ 19 Your Rights Under ERISA ........................................................................................................................ 19 Claim Denial and Appeal Procedures ...................................................................................................... 20 Problem Solving ................................................................................................................................... 20 Appeals ................................................................................................................................................. 20 Definitions................................................................................................................................................. 22 Introduction Abbott Laboratories (“Abbott”) and AbbVie Inc. (“AbbVie”) created the Abbott-AbbVie Multiple Employer Pension Plan (MEPP) to provide benefits to participants in the Abbott Laboratories Annuity Retirement Plan (ARP) who had accrued benefits under the ARP and whose employment with Abbott and its subsidiaries terminated before January 1, 2013. For these participants, benefits earned under the ARP prior to January 1, 2013, will be paid from the MEPP. All benefits, options and formulas are the same as the benefits, options and formulas earned under the ARP as in effect when employment with Abbott terminated. To provide benefits, the assets and liabilities were transferred from the ARP to the MEPP in accordance with Internal