Benefit Plan Amendments and Termination
If a plan is amended or terminated, you have a right to certain benefits.
Chrysler reserves the right to amend, modify, suspend, terminate, or partially terminate plans and programs at any time. Amendments will also be made to comply with applicable statutes and regulations. If material changes are made, you will be notified. However, no change will be allowed that might use plan and program funds for any purpose other than providing benefits to participants and their dependents and beneficiaries.
If a Plan or Program Is Terminated:
Health Care Benefits Plan and Group Insurance Program
- Upon termination or partial termination of the plan or program, coverage will cease as of the effective date of termination or partial termination.
- If the plan is terminated, you will be entitled to the full value of your account. Your account will be used to pay benefits under the plan.
Pension Plan and SERP
Upon termination or partial termination of the Pension Plan or SERP, the following will apply, subject to the provisions of applicable law:
- The rights of affected employees, former employees: retired employees, or eligible surviving spouses or beneficiaries having an interest in the applicable plan will be non-forfeitable. This includes any accrued or vested benefit under either the Pension Plan or SERP and any employee contributions under SERP.
- Assets of the Trust Fund will be allocated to provide benefits among such persons In the manner prescribed by Section 4044 of ERISA or any subsequent applicable law in effect at the time.
- ERISA sets forth an order of priorities for the allocation of plan assets upon termination of a plan. Priority categories are based on when a participant retired or became eligible to retire voluntarily and whether a participant's accrued benefits are vested.
- In the case of SERP, the highest priority category is the return of contributions to the participants (whether active, inactive, retired, or terminated).
- In addition, certain benefits are insured by the Pension Benefit Guaranty Corporation (PBGC) if the plan terminates. A brief explanation of what the PBGC guarantees appears below.
The amounts allocated for benefits will be distributed in the form of periodic payments or a lump sum through:
- Continuation of the Trust Fund;
- Purchase of a new contract issued by an insurance company, or
- Creation of a new trust fund.
After all liabilities have been satisfied, any residual assets of the plan may be distributed to the Corporation subject to the provision of the applicable law.
Mergers, Consolidations, or Transfers
- Your account balance will not be diminished because of a merger or consolidation with or a transfer to another plan.
Pension Plan and SERP
In the case of any merger or consolidation with, or transfer of assets or liabilities to any other plan, each employee, former employee, or retired employee covered by or entitled to benefits under the Pension Plan or SERP will receive, if the applicable plan then terminates, a benefit immediately after the merger, consolidation, or transfer which is equal to or greater
than the benefit he or she would have been entitled to receive immediately before the merger, consolidation, or transfer, if the plan had then terminated.