EXHIBIT 10.27
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TRANSLATION OF THE GERMAN DOCUMENT, WHICH IS THE LEGALLY BINDING VERSION
Between Visteon Holdings GmbH, Koln
(hereinafter referred to as "Company")
and Mr Xx Xxxxx Xxxxxxxxxxxx
(hereinafter referred to as "Employee")
the following is agreed:
PENSION PLAN
1. PURPOSE OF THE PENSION PLAN
1.1 With this Pension Plan the Company has the objective in mind of providing
to the Employee and his dependents additional financial security after
retirement and in the event of death.
1.2 The benefits provided by this Pension Plan are paid in addition to the
benefits provided by Social Security.
1.3 The costs of this Pension Plan are borne by the Company. The Employee
does not have to make own contributions.
2. TYPES OF BENEFITS
2.1 The Company grants the following benefits:
(a) normal retirement pension
(b) early retirement pension
(c) disability pension
(d) widow's pension
(e) orphans' pension
2.2 The Employee and his eligible dependents have a legal right to these
pension benefits, in accordance with the provisions of this Pension
Plan.
3. NORMAL RETIREMENT PENSION
3.1 Normal retirement pension shall be paid for lifetime to the Employee if
his service with the Company terminates upon or after attaining the
Normal Retirement Date.
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3.2 The amount of normal retirement pension depends on the Pensionable
Service Time and the Final Pensionable Earnings.
3.3 The monthly normal retirement pension equals
0,5% of Final Pensionable Earnings up to the Applicable Social Security
Contribution Ceiling, multiplied by the Pensionable Service Time
plus
1,5% of Final Pensionable Earnings in excess of the Applicable Social
Security Contribution Ceiling, multiplied by the Pensionable Service
Time.
4. EARLY RETIREMENT PENSION
4.1 Early retirement pension shall be paid upon request to the Employee if
his service with the Company terminates after age 55.
Early retirement pension is also paid upon request to the Employee if the
employment is terminated due to drawing early retirement pension under
Social Security prior to completing age 65.
4.2 If the employee meets the requirements of Section 4.1 he may select any
month prior to attaining the Normal Retirement Date for the commencement
of pension payments. The early retirement pension will be calculated
according to the provisions of Section 3.3 on the basis of accrued
Pensionable Service Time and Final Pensionable Earnings determined as of
the date of termination of employment. The early retirement pension will
be reduced by 0,4 % for each full month by which the chosen pension
commencement date precedes the attainment of age 62.
5. DISABILITY PENSION
5.1 Disability pension shall be paid to the Employee if his service with the
Company terminates for reasons of total disability as defined by Social
Security.
5.2 Disability has to be proved by the relevant statement of the Social
Security Office. Disability can also be proved by the medical report of a
physician chosen by the Company at its expense.
5.3 The disability pension will be paid for the duration of disability. If
disability continues until Normal Retirement Date the disability pension
shall be paid for life.
5.4 The Employee has to inform the Company about any changes in disability.
The Company may at any time demand a physical examination by a physician
chosen by the Company at its expense.
5.5 The disability pension will be calculated according to the provisions of
Section 3.3 on the basis of Pensionable Service Time which the Employee
would have reached if his service
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with the Company had continued until Normal Retirement Date and on the
basis of Final Pensionable Earnings determined as of date of termination
of employment.
6. WIDOW'S PENSION
6.1 A widow's pension shall become payable to the widow of the deceased
Employee or Pensioner.
6.2 No widow's pension will be paid if the marriage had taken place after
termination of employment or after the Employee had attained age 60.
6.3 The amount of the widow's pension is determined as follows:
(a) if the deceased former Employee received a normal retirement
pension from the Company in accordance with Section 3.1, or an
early retirement pension in accordance with Section 4.1 or a
disability pension in accordance with Section 5:
60% of the pension finally paid to the deceased.
(b) if the deceased Employee was entitled to an early retirement
pension and died before the beginning of the pension payments:
60% of the early retirement pension, which would have to be
paid if the pension would have started at the date of death.
(c) if the deceased Employee died while still in service with the
Company:
60% of the entitlement to a normal retirement pension in
accordance with Section 3.3 on the basis of Pensionable Service
Time which the Employee would have reached if his service with
the Company had continued until the Normal Retirement Date and
on the basis of Final Pensionable Earnings determined as of
date of death.
6.4 The widow's pension will be discontinued upon remarriage.
7. ORPHANS' PENSION
7.1 Semi-orphans' pensions shall be paid to the Children of the deceased
Employee or Pensioner.
7.2 Full orphans' pensions shall be paid to the Children of the deceased
Employee or Pensioner if both parents died.
7.3 The semi-orphans' pension for each Child amounts to 10%, the full
orphans' pension for each Child amounts to 20% of the basis on which the
widow's pension in accordance with Section 6.3 is determined.
7.4 The orphans' pension will be paid until the child attains age 18. The
payment will be continued beyond age 18 as long as the Child is unable to
take care of himself/herself because
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of physical, mental or psychic handicap; the same applies, as long as the
child is in full-time education and has not attained age 23
7.5 The orphans' pension will also be discontinued upon the Child's marriage
unless the Child has no claim for maintenance against the spouse or the
spouse cannot afford the maintenance.
7.6 Widow's and orphans' pensions or several orphans' pensions together may
not exceed 100% of the pension basis on which they are calculated;
otherwise the pensions are reduced proportionally by the exceeding
amount.
8. VESTING
8.1 If the Employee's service with the Company terminates for reasons other
than normal retirement, early retirement, death, or disability he shall
have a vested right to the benefits which are provided by this Pension
Plan, in accordance with the provisions of this Section 8.
8.2 The benefits which are vested in accordance with Section 8.1 will be
payable if the former Employee attains the Normal Retirement Date, if he
draws early retirement, if he becomes disabled, or dies.
8.3 The vested benefit payable in one of the aforementioned events equals a
fraction of the benefit which would have been payable from this Pension
Plan if the Employee had not left the service of the Company. The
numerator of that fraction is the former Employee's actual Credited
Service Time and the denominator is the Credited Service Time which he
would have attained if his employment with the Company had continued
until Normal Retirement Date.
The vested benefit is determined on the basis of Final Pensionable
Earnings at the date of termination of Employment.
8.4 Upon termination of Employment the leaving Employee will be given a
written statement by the Company informing him whether he meets the
vesting requirements and what his vested normal retirement pension
amounts to.
9. PAYMENT OF PENSIONS
9.1 The Company will pay the pensions monthly at the usual date of salary
payments.
9.2 The first payment will be made in the month, which follows the month in
which the prerequisites for pension payments are met. Pension payments,
however, will be suspended as long as salary payments are continued. The
last payment will be made in the month during which the pension
obligation ceases to exist.
9.3 Upon the Company's or the Employee's request a part or the full pension
benefits may be converted into a single lump sum, if legally allowed and
provided both parties agree.
9.4 The lump sum benefit equals the actuarial present value of the pension as
of conversion
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date, based on the actuarial principles used to calculate the pension
book reserves for the Company's tax balance sheet at conversion date. The
applicable interest rate, however, is the interest rate used for the
calculation of the German Book Reserve as of termination date.
10. TRANSFER ASSIGNMENT
The claim to benefits from this Pension Plan can neither be transferred nor
assigned by the beneficiary. Any attempt to transfer or assign any rights shall
not be recognized by the Company.
11. REINSURANCE
11.1 The Company has the right to reinsure the benefits connected with the
Pension Plan through an appropriate insurance contract. The Company will
be entitled to all benefits of such a contract.
11.2 The employee is obliged to provide the insurance company with all
information necessary and to undergo a medical examination, if required.
12. PENSION ADJUSTMENTS
After the pension payments have started, the Company will adjust the paid
pensions annually by 1%.
13. DEFINITIONS
For the purpose of this Pension Plan the following definitions shall apply:
13.1 Normal Retirement Date: The end of the month in which the
employee attains age 65.
13.2 Credited Service Time: All uninterrupted years of service (and
fractions thereof) which the Employee
has spent with the Company commencing
with the last date of hire and ending
with the earlier of:
(a) termination of employment with the
Company, or
(b) commencement of pension payments
from this Pension Plan, or
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(c) attaining the Normal Retirement
Date.
13.3 Pensionable Service Time: Credited Service Time starting at 1
November 2001.
13.4 Child: The legitimate, illegitimate and adopted
child of the Employee or the Pensioner,
provided that, if the child is adopted,
the adoption has taken place before
termination of employment.
13.5 Applicable Social Security
Contribution Ceiling: The monthly average of the Social
Security Contribution Ceilings of the
Pension Insurance Scheme during the
period specified in Section 13.8,
Paragraph 1.
13.6 Pensioner: The former Employee who is entitled to
receive a pension in accordance with the
provisions of this Pension Plan.
13.7 Pensionable Earnings: The annual base salary excluding any
special payments.
Special payments includes, in
particular, bonus payments, vacation
pay, Christmas pay or any other
remuneration paid on a regular or
irregular basis and which is not part of
the base pay.
13.8 Final Pensionable Earnings: The monthly average of the Pensionable
Earnings (Section 13.7) in the last 60
months of Credited Service Time.
If the Pensionable Earnings of the
period as specified in Paragraph 1 were
reduced or not paid because of illness
or other reasons of reduced working
ability, the Pensionable Earnings that
would have been payable for full working
ability are taken into account.
13.9 Widow: The surviving wife of the Employee or
Pensioner to whom he was married at the
time of death.
14. EFFECTIVE DATE, MISCELLANEOUS
This Pension Plan becomes effective on 1 November 2001.
Xx Xxxxxxx 24 October 2001
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Company Date
Xx. Xxxxxxxxxxxx 23 October 2001
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Employee Date
