The Lockheed Martin Supplementary Pension Plan is an organizational scheme that makes provision for tax-free facilities and benefits for employees after their retirement. Also known as the Martin Marietta Corporation Supplemental Excess Retirement plan, the Lockheed Martin Supplementary Pension Plan is being implemented in the topnotch companies for the employees who hold significant management posts in the companies. This pension scheme is for additional benefits apart from the regular benefits of employees which every employee is duly entitled to.
The pension plan is designed to ease the selection between payment of a lump sum amount after retirement and annuity as is decided by the company.
When Do You Need Lockheed Martin Supplementary Pension Plan Agreement?
An employee needs this pension plan agreement after retirement. The Lockheed Martin Supplementary Pension Plan is for those employees who seek a lump sum amount of payment immediately after withdrawal instead of a monthly fee of pension. This scheme is highly efficient and beneficial as it allows the retired employees to deposit the lump sum in the bank and then withdraw an amount every month to meet the monthly expenditure. This scheme of pension includes the personal pension annuity, which is a welfare scheme for the concerned employee or his/her legally married spouse.
Every salaried employee based in the U.S.A can adopt the pension scheme of Lockheed Martin Supplementary Pension Plan agreement to avail the annuity amount which the company will pay irrespective of whether the plan of annuity began at the point of time of the retirement of the employee or after his death.
Inclusions in Lockheed Martin Supplementary Pension Plan Agreement
The Lockheed Martin Supplementary Pension Plan agreement involves the following three parties in the agreed plan of the pension- the employer, the employee, and the administrator of premium that is the insurer or the in-charge of the pension fund. The effective date of implementation of the Lockheed Martin Supplementary Pension Plan agreement is the date of retirement of the employee or the time of the demise of the employee.
This agreement applies for those employees who are near the age of retirement, for staff members who are seeking to update their survivor details, for financial security against accidents and misfortunes that result in sudden demise, and for the financial security of the legally authorized survivors of the deceased employee.
[Also Read: Supplemental Savings Plan of Lockheed]
How to Draft the Lockheed Martin Supplementary Pension Plan Agreement?
Drafting the Lockheed Martin Supplementary Pension Plan agreement should only be done by an authorized attorney.
Benefits of Lockheed Martin Supplementary Pension Plan Agreement/ Pros and Cons
The Lockheed Martin Supplementary Pension Plan Agreement has the following advantages and disadvantages.
The lump sum amount can be deposited in the bank for the withdrawal of a substantial amount as interest, which cannot be obtained from the monthly payments of pension.
Payment is made only once, and that becomes a disadvantage for retired employees as the employee must be very careful in making the fund last through the entire period of retirement.
The subjection of the investment of the lump sum to market fluctuations can affect the value of the assets and make the interests and consequent monthly income decline.
Key Terms/Clauses in the Lockheed Martin Supplementary Pension Plan Agreement
The Actuaria Equivalent will mean an advantage which has the equivalent value figured utilizing the financing cost. This would be used by the Pension Benefit Guaranty Corporation to decide the present estimation of a quick singular amount appropriation on end of an annuity plan. It results towards the finish of the seventh month going before installment of the advantage in addition to one percent (1%), and the 1983 Group Annuity Mortality Table with sex refinement; gave that to Years starting on or after 1st January 2011, in no occasion will the loan fee in addition to 1% surpass 7% or be under 4%.
The beneficiary of the Participant to the agreement will be (a) the spouse of the Participant or (b) if there is no surviving spouse of the Participant, then the beneficiary will be the legacy or estate of the participant.
The Board refers to the Board of Directors of the Lockheed Martin Corporation.
The Code is the Internal Code of Revenue of the year 1986, after amendment.
The Company is the organization that implements the Lockheed Martin Supplementary Pension Plan Agreement, along with the subsidiaries of the organization.
An employee of the organization who is available for receiving the lump sum amount upon retirement or demise is an eligible employee under the Lockheed Martin Supplementary Pension Plan Agreement.
Download the sample agreement of the Lockheed Martin Supplementary Pension Plan Agreement to implement the pension scheme among the employees of the organization. With an effective date of 31st December 2008, the agreement consists of specific articles and sections that lay down the key terms, clauses, and guidelines regarding the annuity.
Sample for Lockheed Martin Supplementary Pension Plan
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