Pensions and Other Employee Benefits. Pensions The Company maintains a number of pension plans, both contributory and noncontributory, covering certain employees. Eligibility for participation in these plans varies and benefits are generally based on members' compensation and years of service. The Company's funding policy is generally to contribute in accordance with cost accounting standards that affect government contractors, subject to the Internal Revenue Code and regulations thereon. Plan assets are invested primarily in U.S. government and agency obligations and listed stocks and bonds. The pension credit of $18,608,000 in 1995 is net of $14,992,000 pension cost for LFS. Pension credit includes the following components: 1995 1994 1993 --------- --------- (IN THOUSANDS) Service cost-benefits earned during the period.................................. $ 58,699 $ 29,530 $ 25,387 Interest cost on projected benefit obligation.............................. 164,266 158,681 123,560 Actual return on plan assets............. (4,814) (271,974) (123,292) Net amortization and deferral............ (236,759) 64,221 (38,886) --------- --------- Total pension credit................. $ (18,608) $ (19,542) $ (13,231) ========= ========= ========= The following presents the plans' funded status and amounts recognized in the balance sheet: ------------------------------------------------------- 1995 1994 --------------------------- --------------------------- ASSETS EXCEED ACCUMULATED ASSETS EXCEED ACCUMULATED ACCUMULATED BENEFITS ACCUMULATED BENEFITS BENEFITS EXCEED ASSETS BENEFITS EXCEED ASSETS ------------- ------------- ------------- Actuarial present value of benefit obligations:
Pensions and Other Employee Benefits. 16.1 Schedule 16.1 of the Sellers’ Disclosure Letter contains a list, as at the date of this Agreement, of:
(a) each material employee benefit plan within the meaning of Section 3(3) of ERISA subject to Title I of ERISA maintained and sponsored by, and each “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA (each, a “Multiemployer Plan”) contributed to by, any Acquired Company (collectively, the “US Plans”); and
(b) each material written plan or programme providing retirement or post-retirement, termination and/or health and welfare benefits maintained or contributed to outside the United States by any Acquired Company or for which provision is made by any Acquired Company outside the United States (collectively, the “Non-US Plans”); in each case, excluding any plan, programme or arrangement sponsored by any Governmental Entity (such as social security or similar government-mandated programmes).
16.2 Except as would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the results of operation or financial position of the Acquired Group taken as a whole:
(a) each US Plan (other than any Multiemployer Plan) and each Non-US Plan is in material compliance with Applicable Law and is being administered and operated in accordance with its terms;
(b) each Non-US Plan that is capable of being formally approved or qualified by, or registered with, the appropriate taxation, social security, supervisory, fiscal or other applicable Governmental Entity in the relevant jurisdiction, in order to obtain tax approved, favoured or qualified status in such jurisdiction, has been so approved, qualified or registered and none of the Acquired Companies has received, during the thirty six (36) months ending on the date of this Agreement, notice from any Governmental Entity to the effect that such approved, qualified or registered status is likely to be withdrawn;
(c) the Sellers have, for the Assumed Plan, and each Acquired Company has, for each US Plan (including each Multiemployer Plan) and Non-US Plan, accrued on the books and records of the relevant Acquired Company or made all contributions to each US Plan (including each Multiemployer Plan) and each Non-US Plan required by the terms of each such US Plan or Non-US Plan or any collective bargaining agreement or Applicable Law to be made by such Acquired Company since 1 January 2004; and
(d) there are no pending or, so far as the Sellers are aware, threatened cl...
Pensions and Other Employee Benefits. All the Entities Carrying Out the T&D Activities are regularly registered and regularly contribute for all their current or, where applicable, former employees to any governmental and or mandatory schemes applicable in their jurisdiction for the retirement of their employees or for the benefit of any dependants of the employees. None of these Entities owes any sum to any of the bodies in charge of these schemes or to any employee or former employee other than the normal course of the operation of the schemes. There has been no violation of these schemes and there are no claims outstanding, pending or threatened from anybody against any of the Entities Carrying Out the T&D Activities. The schemes listed in the Disclosure Letter are all the material defined benefit plans and non-governmental or non mandatory schemes (with the exception of the defined contribution plans) to which any of the Entities Carrying Out the T&D Activities makes or could become liable to make payments for providing retirement benefits in respect of all or some of its employees. No proposal has been announced or discussed with employees’ representatives to establish any other scheme providing for any such benefits in respect of such employees. The schemes listed in the Disclosure Letter are in compliance with any applicable law and funded in accordance with the rules of such schemes. There has been no violation of these schemes and there is no relevant claim outstanding, pending or, so far as the Seller is aware, threatened against any of the Entities Carrying Out the T&D Activities.
Pensions and Other Employee Benefits
