Documentos de Académico
Documentos de Profesional
Documentos de Cultura
(Revision of 2003)
SECTION PAGE
1. Board of Directors.............................................................................................................................. 1
2. Fiduciary Provisions .......................................................................................................................... 1
3. Financial Provisions ........................................................................................................................... 2
4. Merger and Transfer Provisions......................................................................................................... 3
5. Claims and Appeal Provisions ........................................................................................................... 4
6. Limitations on Benefits ...................................................................................................................... 7
7. Public Pension Offset Provision ...................................................................................................... 11
8. Recovery of Overpayments and Correction of Underpayments ...................................................... 11
9. Nonforfeiture Provisions .................................................................................................................. 12
10. Deductions From Pensions .............................................................................................................. 12
11. Workers Compensation Deduction ................................................................................................. 13
12. Mandatory Retirement Provisions ................................................................................................... 13
13. Average Monthly Earnings .............................................................................................................. 13
14. Special Early Retirement Provision ................................................................................................. 15
15. Leased Employees and Independent Contractors ............................................................................ 15
16. Limitation of Benefits on Early Termination of Plan ...................................................................... 15
17. Top-Heavy Provisions ..................................................................................................................... 16
18. Coverage of Part-Time Employees .................................................................................................. 19
19. Lump-Sum Distributions ................................................................................................................. 20
20. Qualified Domestic Relations Orders .............................................................................................. 26
21. Elimination of Discretionary Eligibility Provisions ........................................................................ 26
22. Permanent Shutdown ....................................................................................................................... 26
23. Required Commencement of Pension Benefit ................................................................................. 27
24. Fail Safe Provisions ......................................................................................................................... 27
25. Annuity Starting Date and QJSA Notice ......................................................................................... 28
26. Accrued Benefit ............................................................................................................................... 30
27. Survivor Benefits ............................................................................................................................. 31
28. Calculation of Continuous Service .................................................................................................. 31
29. 5% Addition to Regular Pensions .................................................................................................... 31
30. Creditable Earnings For Pension Purposes ...................................................................................... 31
31. Pensionable Earnings While in Military Service ............................................................................. 32
32. Participation ..................................................................................................................................... 33
33. Separate Retiree Health Benefits Account Under Prior Plan........................................................... 34
34. Sale of Facilities ............................................................................................................................... 34
35. Special Provisions Applicable to Participants With LTV Service................................................... 49
36. Special Provisions Applicable to Participants With Marathon Service ........................................... 52
37. 75% Spouse Option.......................................................................................................................... 54
38. Funding-Based Limitations .............................................................................................................. 55
39. Definition of Spouse ........................................................................................................................ 59
EXHIBIT A ................................................................................................................................... 60
EXHIBIT B ................................................................................................................................... 61
GENERAL PROVISIONS
GENERAL PROVISIONS
1. Board of Directors
The Board of Directors shall, from time to time, by resolution implement this Plan by adopting or authorizing the
adoption of rules providing specific benefits; by determining the employees or groups of employees to be covered by
specific rules; and by revising or terminating specific rules. The Board of Directors from time to time may also make such
amendment or revision in this Plan as it shall deem advisable, in accordance with applicable law, provided that any revision
of this Plan so made by the Board of Directors may be altered, changed or repealed by the stockholders of the Corporation.
The Board of Directors from time to time also may determine the manner and means of making financial provision for and
funding and paying for pension benefits. No person or body other than the shareholders of the Corporation or the Board of
Directors has the authority to modify or amend, in whole or in part, this Plan and any rules adopted thereunder or to
terminate this Plan or any rules adopted hereunder.
2. Fiduciary Provisions
United States Steel and Carnegie Pension Fund (herein called the Pension Fund) shall be the named fiduciary of this
Plan with the right to designate additional named fiduciaries, to allocate fiduciary responsibilities (other than trustee
responsibilities) among itself and such other named fiduciaries and to designate persons among itself and such other named
fiduciaries to carry out fiduciary responsibilities (other than trustee responsibilities) under this Plan. The Pension Fund may
also allocate its responsibilities for the operation and administration of this Plan and it or any other named fiduciary may
employ one or more persons to render advice with respect to any responsibility held by it or such named fiduciary.
The Pension Fund shall be the administrator of this Plan as such term is defined in Section 3(16)(A) of the Employee
Retirement Income Security Act of 1974 (ERISA) (the Plan Administrator), the trustee of any trusts established under
this Plan, and the agent for service of legal process on this Plan.
Notwithstanding any other provisions of this Plan, the Pension Fund shall administer this Plan and shall have full,
exclusive and discretionary authority to decide all questions arising out of and relating to the administration of this Plan,
including, but not limited to, questions involving the interpretation of the terms and provisions of the Plan and questions of
fact. Subject to the provisions of Section 5, the decision of the Pension Fund shall be final and conclusive as to all questions
of interpretation and application of this Plan and as to all other matters arising in the administration of this Plan. In
exercising this discretionary authority to administer, interpret and apply this Plan, the Pension Fund shall be guided by the
intent of the Corporation in establishing the provision being interpreted or applied.
Notwithstanding any other provision of the Plan, in the event the Plan is amended within five (5) years following a
change in control (as such term is defined below) to remove the Pension Fund as trustee of any trusts established under
this Plan or during such five (5) year period, individuals who immediately prior to such change in control constitute the
board of directors of the Pension Fund (and any new director whose election to the board of directors of the Pension Fund
was approved by a vote of at least two-thirds of the Members of the Pension Fund who were Members of the Pension Fund
immediately prior to such change in control) (Continuing Directors) cease for any reason to constitute a majority thereof,
the Corporation shall be required to appoint as successor trustees under the Plan one or more financial institutions each of
which (i) is not affiliated with the Corporation or any person or group (within the meaning of Section 13(d) and 14(d)(2)
of the Securities Exchange Act of 1934, as amended (the Act)) that is the beneficial owner (as defined in Rule 13d-3
under the Act) of twenty percent (20%) or more of the then outstanding voting stock of the Corporation, (ii) is a corporation
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GENERAL PROVISIONS
organized and doing business under the laws of the United States of America or of any State thereof, authorized under such
laws to exercise corporate trust powers and subject to supervision or examination by Federal or State authority and (iii) is
one of the top fifty (50) financial institutions in the United States of America on the basis of combined capital and surplus.
If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so
published. If the Corporation fails to act in accordance with the preceding provisions, Morgan Guaranty Trust Company of
New York shall become the successor trustee under the Plan. During the balance of the five (5) year period following such
change in control, such successor trustee or trustees shall (A) have exclusive management authority over the assets of any
trust established under the Plan and (B) manage the assets of such trusts in accordance with the investment guidelines in
effect immediately prior to such change in control. Notwithstanding any other provision of the Plan, the foregoing
provisions may not be amended following a change in control without the written consent of a majority in both number
and interests of the participants who are actively employed by all Employing Companies, both immediately prior to the
change in control and at the date of such amendment.
A change in control shall occur if (i) any person or group (within the meaning of Section 13(d) and 14(d)(2) of
the Securities Exchange Act of 1934, as amended (the Act)) is or becomes the beneficial owner (as defined in Rule 13d-
3 under the Act), directly or indirectly, of securities of the Corporation representing twenty percent (20%) or more of the
combined voting power of the Corporations then outstanding securities, provided, however, that if within ten (10) business
days of the first public announcement of such event, the Board of Directors of the Corporation adopts a resolution that is
approved by a majority of the Continuing Directors (as defined below), which resolution provides that such event shall
either (A) not constitute a change in control, or (B) not constitute a change in control until the occurrence of a
subsequent date, fact or circumstance, then such event shall not constitute a change in control of the Corporation for
purposes of this provision, (ii) during any period of two consecutive years, individuals who at the beginning of such period
constitute the Board of Directors of the Corporation (and any new director whose election by the Board of Directors of the
Corporation or whose nomination for election by the Corporations stockholders was approved by a vote of at least two-
thirds of the directors then still in office who either were directors at the beginning of such period or whose election or
nomination for election was previously so approved) (the Continuing Directors) cease for any reason to constitute a
majority thereof or (iii) the shareholders of the Corporation approve a merger or consolidation of the Corporation with any
other corporation, other than a merger or consolidation which would result in the voting securities of the Corporation
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity) at least 80% of the combined voting power of the voting securities of the
Corporation or such surviving entity outstanding immediately after such merger or consolidation (provided, however, that if,
prior to such merger or consolidation, the Board of Directors of the Corporation adopts a resolution that is approved by a
majority of the Continuing Directors providing that such merger or consolidation shall not constitute a change in control
for purposes of this provision then such merger or consolidation shall not constitute a change in control of the
Corporation) or the shareholders of the Corporation approve a plan of complete liquidation of the Corporation or an
agreement for the sale or disposition by the Corporation of all or substantially all the Corporations assets. Notwithstanding
any other provision of the Plan, the foregoing provisions of this paragraph may not be amended following a change in
control without the written consent of a majority in both number and interest of the participants who are actively employed
by all Employing Companies, both immediately prior to the change in control and at the date of such amendment.
3. Financial Provisions
All benefits payable to participants under non-contributory or contributory pension rules established under this Plan
shall be paid from the non-contributory pension trust established by the Trust Agreement made as of August 31, 1950
between the Corporation and the Pension Fund, as amended (Pension Trust). All contributions by participants shall be
collected by the Employing Company and paid over to the Pension Fund. For each annual period, each of the Employing
Companies shall pay to the Pension Fund its share of a total amount determined by an actuary appointed by the Board of
Directors plus its share of any additional amount approved by the Board of Directors from time to time. The total of such
payments when added to the contributions of participants shall at least equal an amount consistent with minimum funding
standards of ERISA, as amended from time to time.
No Employing Company shall incur any liability to make any payment pursuant to this Plan except as expressly
provided under this Section. If amounts are paid by any Employing Company for any year in excess of the amount required
under this Section, such excess amounts shall be credited against such Employing Companys future contributions.
Notwithstanding any other provision of this Plan, no modification or amendment of this Plan shall provide or have the
effect of providing that any part of the Pension Trust may be used for or diverted to purposes other than for the exclusive
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GENERAL PROVISIONS
benefit of participants pensioned or to be pensioned under this Plan and to the extent of any surplus remaining after
providing the cost of pensions for those pensioned or to be pensioned under this Plan, no purposes other than for the
exclusive benefit of participants and their beneficiaries.
Any amounts forfeited by any participant in the Plan through termination of employment before all his or her accrued
benefits are payable may not be used to increase the benefits which other participants would otherwise receive under this
Plan but shall be used only to reduce the Employing Companys contributions in the current or succeeding years.
Notwithstanding anything herein to the contrary, the Board of Directors may provide for the payment of the pensions,
benefits and expenses under pension rules by contract with an insurance company or companies, or otherwise, as it may
determine.
Notwithstanding any other provision of the Plan, in the event the Plan is terminated within five (5) years following a
change in control (as such term is defined in Section 2), the assets of the Pension Trust shall be applied in accordance with
the applicable provisions of the pension rules to satisfy all liabilities to participants and their beneficiaries. If any assets of
the Pension Trust remain after satisfaction of such liabilities, the Corporation shall amend the pension rules and the Plan to
provide that such remainder shall be applied to the extent available to the payment of retiree medical and retiree life
insurance payable to Plan participants and their beneficiaries.
Effective January 1, 1984, for the purpose of these General Provisions, Final Earnings Pension shall mean, Non-
Contributory Pension and Non-Contributory Pension shall mean, Final Earnings Pension unless the context in which
such phrases appear makes such meaning illogical. The phrase, Career Earnings Pension shall mean Contributory
Pension and, vice versa, unless the context in which such phrase appears makes such meaning illogical.
Effective 11:59 p.m. Eastern Standard Time November 30, 2003, the United States Steel Corporation Plan for Non-
Union Employee Pension Benefits (Revision of 1998) (the 1998 Plan) was merged into the United States Steel
Corporation Plan for Employee Pension Benefits (Revision of 1950) (the 1950 Plan) and the 1950 Plan was renamed
United States Steel Corporation Plan for Employee Pension Benefits (Revision of 2003) (the 2003 Plan). All rule parts
which were adopted under either the 1950 Plan or the 1998 Plan were adopted under the 2003 Plan. All benefits being paid
from the 1998 Plan as of November 30, 2003, and all benefits which would have been paid from the 1998 Plan but for the
merger of the 1998 Plan into the 2003 Plan, shall be paid from this Plan.
Effective 11:59 p.m. Eastern Standard Time December 31, 2010, the P&M Employees Pension Plan, the Star Tubular
Services Pension Plan and the Pension Agreement Between Lone Star Steel Company and International Union, United Plant
Guardworkers of America and Its Local Union No. 258 (also known as the Plant Protection Employee Pension Plan)
(collectively Lone Star Defined Benefit Pension Plans) were merged into this Plan. All rule parts which were adopted
under the Lone Star Defined Benefit Pension Plans were adopted under this Plan. All benefits being paid from the Lone Star
Defined Benefit Pension Plans as of the effective date of the merger, and all benefits which would have been paid from the
Lone Star Defined Benefit Pension Plans but for the merger of the Lone Star Defined Benefit Pension Plans into this Plan,
shall be paid from this Plan. To the extent that any provisions of these General Provisions are in conflict with provisions in
the Lone Star Defined Benefit Pension Plans (or associated rule part under this Plan) with respect to a participants benefit
under the Lone Star Defined Benefit Pension Plans (or associated rule part under this Plan), the provisions of the Lone Star
Defined Benefit Pension Plans (or associated rule part under this Plan) take precedence.
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GENERAL PROVISIONS
of a majority in both number and interest of the participants who are actively employed by all Employing Companies both
immediately prior to the change in control and at the date of such amendment.
If an employee in a group of employees designated for coverage under this Plan is transferred to a group of employees
who are not designated for coverage under this Plan, or if a group of employees designated for coverage under this Plan
ceases to be designated for coverage under this Plan, any affected employee shall continue to be eligible for benefits
provided under the rules applicable to such employee at the time he or she ceased to be covered by the Plan; provided,
however, that the portion of his or her continuous service which relates to a period of service with an Employing Company
during which he or she was not in a group of employees designated for coverage under this Plan shall be creditable as
continuous service under the pension rules applicable to him or her at the time the employee ceased to be covered by the
Plan solely for the purpose of determining the individuals eligibility for any benefit under such Rules and not for the
purpose of determining the amount of any benefit under such Rules; and further provided, in the case of an employee in a
group of employees that ceases to be designated for coverage under this Plan on or after August 1, 1983, the period of
service with an Employing Company while not covered by this Plan shall be creditable solely for the purpose of determining
his or her eligibility to commence a pension under the pension rules applicable to such employee at the time he or she ceases
to be covered by this Plan.
If an employee transfers from a pension plan sponsored by the Corporation or any subsidiary thereof or from coverage
under a set of rules under this Plan using either the hours of service method or the elapsed time method of measuring service
to coverage under a set of rules under this Plan using the other method, such employee will receive credit for service
determined in accordance with the method which would provide the greatest amount of service for the calendar year in
which the transfer takes place.
The two immediately preceding paragraphs shall apply to transfers or other actions whether they occur before or after
January 1, 1976.
Notwithstanding anything to the contrary in this Plan, an employee who (1) was in a group of employees designated for
coverage under this Plan, (2) was subsequently transferred to a group of employees who are not designated for coverage
under this Plan, and (3) after June 1, 1989 ceases to be employed by an Employing Company and ceases to accrue
continuous service under this Plan for any purpose shall be considered to have incurred a break in continuous service as of
the date such employee ceases to accrue continuous service.
Notwithstanding anything to the contrary contained in this Plan, if on or after December 1, 2003, an employee in a
group of employees designated for coverage under a pension agreement or set of pension rules under this Plan (Former
Agreement or Rules) is transferred to a group of employees covered by a different pension agreement or set of pension
rules under this Plan (Current Agreement or Rules), or if a group of employees designated for coverage under the Former
Agreement or Rules ceases to be designated for coverage under the Former Agreement or Rules and then is designated for
coverage under the Current Agreement or Rules, any affected employee shall receive credit for continuous service under the
Former Agreement or Rules for the purpose of determining both eligibility for and the amount of any benefits under the
Current Agreement or Rules; provided however, that the amount of pension benefits earned by such participant under the
Current Agreement or Rules shall be reduced by any final earnings pension benefit paid or payable under the Former
Agreement or Rules and further provided, however, that the amount of any Surviving Spouses benefit payable with respect
to any participant under the Current Agreement or Rules shall be reduced by the amount of any Surviving Spouses benefit
paid or payable with respect to such participant under the Former Agreement or Rules.
Notwithstanding anything to the contrary contained in this Plan, if on or after December 1, 2003, any participant in the
Former Agreement or Rules ceases to be covered by the Former Agreement or Rules and becomes covered by the Current
Agreement or Rules, the amount of such participants benefit under the Former Agreement or Rules shall be determined as
of the date that such participant ceases to be covered by the Former Agreement or Rules and such accrued benefit shall not
be increased by reason of any event or circumstances which occur after the participant ceases to be covered by the Former
Agreement or Rules.
4
GENERAL PROVISIONS
With respect to a participant in a collective bargaining unit covered by a pension agreement or pension rules
providing for the resolution of pension disputes (and with respect to any survivor, surviving spouse or co-pensioner of
such a participant), any dispute as to the participants right to a pension (including a permanent incapacity pension) or
the amount of his or her pension, or any dispute as to any persons right to a survivor benefit, co-pensioner benefit or
surviving spouses benefit under this Plan or the amount of any such benefit shall be resolved in accordance with the
appropriate provisions of such pension agreement or rules, rather than this Section 5.
(b) Filing a Claim
Any participant (or survivor, surviving spouse or co-pensioner) who believes that he or she is entitled to a pension
benefit under this Plan must file a claim for such pension benefit within one year of the date that he or she becomes
eligible for such pension benefit except in the case of a deferred vested pension in which case the claim must be filed
within six months of the date that the participant first becomes eligible for such benefit on an unreduced basis. Such
claim should be filed with the employee benefits office of the plant or office where the employee last worked.
Notwithstanding anything to the contrary contained in this Plan, the above time limits shall not be applied so as to
deprive any participant of his or her Normal Retirement pension or his or her Deferred Vested pension payable as an
unreduced benefit at age 65.
(c) Claims Procedures - Adverse Benefit Determination
The following procedures shall govern the Plan Administrators response to a timely filed claim for benefits.
(1) Timing of Notification of Benefit Determination
If a claim is wholly or partially denied, the Plan Administrator shall notify the claimant of the Plans adverse
benefit determination within a reasonable period of time, but not later than 90 days after receipt of the claim by
the Plan, unless the Plan Administrator determines that special circumstances require an extension of time for
processing the claim. If the Plan Administrator determines that an extension of time for processing is required,
written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day
period. In no event shall such extension exceed a period of 90 days from the end of such initial period. The
extension notice shall indicate the special circumstances requiring an extension of time and the date by which the
Plan expects to render the benefit determination.
(2) Manner and Content of Notification of Benefit Determination
The Plan Administrator shall provide a claimant with written or electronic notification of any adverse benefit
determination. All notifications of adverse benefit determination shall set forth:
(A) The specific reason or reasons for the adverse determination;
(B) Reference to the specific Plan provisions on which the benefit determination is based;
(C) A description of any additional material or information necessary for the claimant to perfect the claim and
an explanation of why such material or information is necessary; and
(D) A description of the Plans review procedures and the time limits applicable to such procedures, including a
statement of the claimants right to bring a civil action under Section 502(a) of ERISA following an adverse
benefit determination on final review.
(d) Appeal Procedures
The following procedures shall govern a request for review or appeal of an adverse benefit determination made by a
participant (or survivor, surviving spouse or co-pensioner).
(1) Appeal of Adverse Benefit Determinations
A claimant who receives a notification of an adverse benefit determination may appeal such determination within
sixty (60) days following receipt of the notification by the Plan Administrator. To be valid, such appeal must be
sent to the Vice President-Administration, United States Steel and Carnegie Pension Fund, 600 Grant Street,
Pittsburgh, Pennsylvania 15219-2800. In connection with an appeal of an adverse benefit determination, a
claimant may submit written comments, documents, records, and other information relating to the claim for
benefits. A claimant shall be provided, upon request and free of charge, reasonable access to, and copies of, all
documents, records, and other information relevant to the claimants claim for benefits. All comments,
documents, records, and other information submitted by the claimant relating to the claim shall be taken into
account, without regard to whether such information was submitted or considered in the initial benefit
determination.
(2) Timing of Notification of Benefit Determination on Appeal
The Plan Administrator shall notify a claimant of the Plans benefit determination on review within a reasonable
period of time, but not later than 60 days after receipt of the claimants request for review by the Plan, unless the
Plan Administrator determines that special circumstances require an extension of time for processing the claim.
If the Plan Administrator determines that an extension of time for processing is required, written notice of the
5
GENERAL PROVISIONS
extension shall be furnished to the claimant prior to the termination of the initial 60-day period. In no event shall
such extension exceed a period of 60 days from the end of such initial period. The extension notice shall indicate
the special circumstances requiring an extension of time and the date by which the Plan expects to render the
determination on review.
(3) Manner and Content of Notification of Benefit Determination on Appeal
The Plan Administrator shall provide a claimant with written or electronic notification of a Plans benefit
determination on appeal. In the case of an adverse benefit determination, the notification shall set forth:
(A) The specific reason or reasons for the adverse determination;
(B) Reference to the specific Plan provisions on which the benefit determination is based;
(C) A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to,
and copies of, all documents, records, and other information relevant to the claimants claim for benefits;
and
(D) If the adverse benefit determination is made in connection with a final appeal under the Plan, a statement of
the claimants right to bring a civil action under Section 502(a) of ERISA.
(4) Mandatory Arbitration
The decision of the Vice President-Administration, with regard to the appeal of the adverse benefit
determination, shall be final and conclusive except insofar as a claimant, within 60 days after notification of the
Vice Presidents decision, submits a written demand for arbitration. A dispute so appealed shall be submitted to
an arbitrator selected by the Chairman of the Board of Arbitration, 436 Seventh Avenue, Suite 2320, Pittsburgh,
Pennsylvania 15219-1826, unless the claimant requests that the dispute be submitted to another arbitrator. In
such event, the claimant and the Pension Fund shall mutually agree upon an arbitrator to hear such dispute. The
arbitrator shall have authority only to decide the question pursuant to the provisions of the pension plan, but shall
not have authority in any way to alter, add to or subtract from any of such provisions. The decision of the
arbitrator shall be binding on the Employing Company, the Pension Fund and the claimant. If the claimant
disagrees with the decision of the arbitrator, the claimant has the right to file a civil action under Section 502(a)
of ERISA. The procedures set forth under Appeal Procedures above govern the appeal process.
(e) Permanent Incapacity Pensions
The following procedures shall apply with respect to a dispute as to whether the participant is or continues to be
permanently incapacitated for pension eligibility purposes. The participant shall be examined by a physician
appointed for the purpose by the Employing Company and by a physician appointed for the purpose by the
participant. If they disagree concerning whether the participant is permanently incapacitated, that question shall be
submitted to a third physician selected by the two physicians. The medical opinion of the third physician, after
examination of the participant and consultation with the other two physicians, shall decide the question. The decision
of the third physician shall be binding on the Employing Company, the Pension Fund and the participant. For
permanent incapacity claims:
(1) the time period for notification of benefit determination referenced in (c)(1) shall be 45 days after receipt of the
claim by the Plan. This period may be extended by the plan for up to 30 days, provided that the Plan
Administrator both determines that such an extension is necessary due to matters beyond the control of the plan
and notifies the claimant, prior to the expiration of the initial 45-day period, of the circumstances requiring the
extension of time and the date by which the plan expects to render a decision. If, prior to the end of the first 30-
day extension period, the administrator determines that, due to matters beyond the control of the plan, a decision
cannot be rendered within that extension period, the period for making the determination may be extended for up
to an additional 30 days, provided that the Plan Administrator notifies the claimant, prior to the expiration of the
first 30-day extension period, of the circumstances requiring the extension and the date as of which the plan
expects to render a decision. In the case of any extension, the notice of extension shall specifically explain the
standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim,
and the additional information needed to resolve those issues, and the claimant shall be afforded at least 45 days
within which to provide the specified information.
(2) A notification of adverse benefit determination (including on appeal) will include: (A) if an internal rule,
guideline, protocol, or other similar criterion was relied upon in making an adverse determination, either the
specific rule, guideline, protocol, or other similar criterion; or a statement that such a rule, guideline, protocol, or
other similar criterion was relied upon making the adverse determination and that a copy of such rule, guideline,
protocol, or other criterion will be provided free of charge to the claimant upon request; or (B) if the adverse
benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit,
either an explanation of the scientific or clinical judgment for the determination, applying the terms of the plan to
the claimants medical circumstances, or a statement that such explanation will be provided free of charge upon
request.
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GENERAL PROVISIONS
(3) the time period to appeal an adverse benefit determination in (d)(1) shall be replaced with 180 days
(4) all references to 60 days in paragraph (d)(2) shall be replaced with 45 days
(f) Additional Rules
Any claim by a participant who is subject to the provisions of this Section 5 that he or she was terminated in order to
avoid becoming entitled to a benefit under this Plan or under any other employee benefit plan sponsored by an
Employing Company, or that such participant was otherwise discriminated against in violation of Section 510 of
ERISA shall be resolved in accordance with the procedures set forth above applicable to disputes concerning
entitlement to or the amount of any benefit under this Plan; provided, however, that the arbitrator in dealing with this
type of dispute shall have authority only to decide such dispute in accordance with the provisions of ERISA and shall
have the remedial powers granted federal district courts by such Act.
6. Limitations on Benefits
(a) The annual benefit payable to a participant in any limitation year from all defined benefit plans maintained by an
Employing Company or another such plan required to be aggregated with this Plan under Code Section 415(g) may
not exceed the lesser of:
(1) $90,000 ($160,000, commencing with annuity starting dates on or after January 1, 2002) as indexed, or
(2) 100% of the participants average compensation for the period of the participants high three consecutive
calendar years of service (or the participants average compensation during the period of service if less than three
years), taking into account the break in service rules of Treas. Reg. 1.415(b)-1(a)(5)(iii).
If the annual benefit commences when the participant has less than 10 years of participation in the Plan, the limitation
outlined in (1) above (dollar limitation) shall be reduced by one-tenth for each year of participation (or part thereof)
less than 10. To the extent required under Treasury regulations, the preceding sentence shall be applied separately
with respect to each change in the benefit structure of the Plan.
If the annual benefit commences when the participant has less than 10 years of service with an Employing Company
and other company maintaining a plan required to be aggregated with this Plan under Code Section 415(g), the
compensation limitation of (2) above (compensation limitation) shall be reduced by one-tenth for each year of
service (or part thereof) less than 10.
Effective for limitation years beginning on or after July 1, 2007, any provision of this Section 6 to the contrary
notwithstanding:
(1) if a participants benefits commence prior to age 62, the dollar limitation set forth above shall be reduced
actuarially from age 62 to the age at which said benefits commence (in accordance with applicable Treasury
regulations and determined using the mortality rates prescribed by the Secretary of the Treasury for purposes of
Section 417(e)(3) of the Internal Revenue Code and an interest rate of 5%; or the calculation using Plan factors,
as determined under final Treasury Regulations Section 1.415(b)-1(d)(1)(ii), whichever produces the lower dollar
limit); and
(2) if a participants benefits commence after age 65, the dollar limitation set forth above shall be increased
actuarially from age 65 to the age at which said benefits commence (in accordance with applicable Treasury
regulations and determined using the mortality rates prescribed by the Secretary of the Treasury for purposes of
Section 417(e)(3) of the Internal Revenue Code and an interest rate of 5%; or the calculation using Plan factors,
as determined under final Treasury Regulations Section 1.415(b)-1(e)(1)(ii), whichever produces the lower dollar
limit).
Effective for limitation years ending after December 31, 2001, the $160,000 as indexed annual benefit limitation shall
be adjusted as follows:
(1) If the annual benefit of a participant commences prior to age 62, the defined benefit dollar limitation shall be the
actuarial equivalent of an annual benefit beginning at age 62, reduced for each month by which benefits
commence before the month in which the participant attains age 62.
(2) If the annual benefit of a participant commences after the participant attains age 65, the defined benefit dollar
limitation applicable to the participant at the later age shall be adjusted so that it is the actuarial equivalent of an
annual benefit of such dollar limitation beginning at age 65.
Effective January 1, 1987, the $90,000 annual benefit limitation shall be adjusted as follows:
(1) If the annual benefit of the participant commences before the participants social security retirement age, but on
or after age 62, the defined benefit dollar limitation shall be determined as follows:
(i) If a participants social security retirement age is 65, the dollar limitation for benefits commencing on or
after age 62 is determined by reducing the defined benefit dollar limitation by 5/9 of one percent for each
month by which benefits commence before the month in which the participant attains age 65.
7
GENERAL PROVISIONS
(ii) If the participants social security retirement age is greater than 65, the dollar limitation for benefits
commencing on or after age 62 is determined by reducing the defined benefit dollar limitation by 5/9 of one
percent for each month (up to 36 months) and, if applicable, 5/12 of one percent for each additional month
(up to 24 months) by which benefits commence before the month of the participants social security
retirement age.
(2) If the annual benefit of a participant commences prior to age 62, the defined benefit dollar limitation shall be the
actuarial equivalent of an annual benefit beginning at age 62, as determined above, reduced for each month by
which benefits commence before the month in which the participant attains age 62.
(3) If the annual benefit of a participant commences after the participants social security retirement age, the defined
benefit dollar limitation shall be adjusted so that it is the actuarial equivalent of an annual benefit of such dollar
limitation beginning at the participants social security retirement age.
(4) The term social security retirement age shall have the same meaning as such term defined in Code Section
415(b)(8).
In the case of an individual who was a participant in one or more defined benefit plans of the Employing Company or
another such plan required to be aggregated with this Plan under Code Section 415(g), as of the first day of the first
limitation year beginning after December 31, 1986, the application of the limitations of this Section shall not cause
the maximum permissible amount for such individual under all such defined benefit plans to be less than the
individuals accrued benefit as of December 31, 1986.
Effective with respect to benefits accrued in limitation years beginning after December 31, 1999, the $90,000 annual
benefits limitation described above shall be adjusted as outlined in paragraphs (1) through (4) below.
(1) The mortality table used for purposes of determining actuarial equivalent shall be the applicable mortality table
(as defined in Section 19 of the General Provisions of the Plan).
(2) Except as provided otherwise in sub-paragraph (a) and (b) below, the interest rate assumption used for purposes
of determining actuarial equivalent shall be the greater of (i) 5%, or (ii) the rate specified in the Plan.
(a) The interest rate assumption used for purposes of determining actuarial equivalent shall be the lesser of (i)
5%, or (ii) the rate specified in the Plan if the annual benefit of a participant commences after the
participants social security retirement age.
(b) The interest rate assumption used for purposes of adjusting benefits payable in a form of benefit subject to
Code Section 417(e)(3) (and the regulations thereunder) so that it is equivalent to a benefit payable annually
in the form of a straight life annuity shall be the greater of (i) the applicable interest rate (as defined in
Section 19 of the General Provisions of the Plan), or (ii) the rate specified in the Plan.
(3) The changes outlined in sub-paragraphs (1) and (2) above generally are applied to all benefits under the Plan on
or after the effective date specified above. The Plan will apply these limitations to the total plan benefit, but in no
event will the participant receive less than his or her old-law benefit, as defined below.
A participants old-law benefit is determined as of December 31, 1999. The participants old-law benefit is
determined for each possible annuity starting date and optional form of benefits based on the participants
accrued benefit under the terms of the Plan as of December 31, 1999, after applying the provisions of Code
Section 415 as in effect on December 7, 1994, including the participation requirements under Code Section
415(b)(5).
For purposes of determining how the Code Section 415(b) limitations are applied with respect to a participant
who has an old-law benefit, the Method 2 procedures outlined in Q&A-14 of Revenue Ruling 98-1, IRB 1998-2
shall be used, such that the participant will receive no less than his or her old-law benefit (as limited to the extent
required under the Treasury regulations issued under Code Section 415).
(4) With respect to pension benefits (a) that have an annuity starting date that occurs during the year 2002, including
retirements on December 31, 2001, and (b) under which payments commence during the year 2002, the amount
of the benefit shall be subject to the Code Section 415(b) limits applicable to the 2002 limitation year.
In the case of a distribution to a participant or beneficiary after December 31, 2003, and before January 1, 2005, in a
form of benefit subject to Code Section 417(e)(3) (and the regulations thereunder) and subject to adjustment under
Code Section 415(b)(2)(B), the Plan applies the transition rule in section 101(d)(3) of the Pension Funding Equity Act
of 2004. Under this transition rule, the amount of the distribution shall not be less than the amount that would have
been payable had the amount been determined using the applicable interest rate (as defined in Section 19 of the
General Provisions of the Plan) in effect as of the last day of the last plan year beginning before January 1, 2004.
Effective for the plan year beginning on January 1, 2005, the interest rate assumption used for purposes of adjusting
benefits payable in a form of benefit subject to Code Section 417(e)(3) (and the regulations thereunder) so that it is
equivalent to a benefit payable annually in the form of a straight life annuity shall be the greater of (i) 5.5%, or (ii) the
rate specified in the Plan.
8
GENERAL PROVISIONS
Effective for plan years beginning on January 1, 2006 and for every plan year thereafter, the interest rate assumption
used for purposes of adjusting benefits payable in a form of benefit subject to Code Section 417(e)(3) (and the
regulations thereunder) so that it is equivalent to a benefit payable annually in the form of a straight life annuity shall
be the greater of (i) 5.5%, (ii) the rate specified in the Plan, or (iii) the rate that provides a benefit of not more than
105 percent of the benefit that would be provided if the applicable interest rate (as defined in Code Section 417(e)(3))
were the interest rate assumption.
Annual benefit shall mean a benefit payable annually in the form of a straight life annuity with no ancillary benefits.
Benefits payable in any other form will be adjusted to the actuarial equivalent of a straight life annuity.
Actuarial equivalent shall be determined by using an interest rate assumption equal to the greater of 5% or the rate
specified in the Plan. For benefits commencing after the participants social security retirement age, the word
lesser shall be substituted for the word greater in the preceding sentence.
For purposes of limitations of this Section, the term participants compensation shall mean the participants wages,
salaries and other amounts received for personal services actually rendered in the course of employment with an
Employing Company maintaining the Plan, and other company maintaining a plan required to be aggregated with this
Plan under Code Section 415(g), for the limitation year. For limitation years beginning on and after January 1, 1998,
for purposes of applying the limitations described in this Section, compensation paid or made available during such
limitation years shall include elective amounts that are not includable in the gross income of the participant by reason
of Code Section 132(f)(4). For purposes of applying the limitations described in this Section, compensation paid or
made available during such limitation years shall include any elective deferrals (within the meaning of Section
402(g)(3) of the Internal Revenue Code) made by an Employing Company on behalf of such participant and any
salary reduction amounts elected by such participant for the purchase of benefits pursuant to a cafeteria plan (within
the meaning of Section 125(d) of the Internal Revenue Code) maintained by an Employing Company. Effective for
limitation years beginning on or after July 1, 2007, compensation includes only amounts paid (or made available) to
participants prior to severance from employment (within the meaning of Code section 401(k)(2)(B)(i)(I)), except as
provided below. However, compensation includes payments made after severance from employment of
compensation for services, provided such payments are made within 2-1/2 months after severance from employment
(or by the end of the limitation year in which the severance from employment occurred, if later) and such payments
would have been paid to the participant prior to severance from employment if the participant had continued in
employment. Compensation also includes a payment made after severance from employment for any unused accrued
bona fide sick, vacation, or other leave that the participant had the right to use, provided such payment is made within
2-1/2 months after severance from employment (or by the end of the limitation year in which the severance from
employment occurred, if later) and the payment would have been considered compensation if paid prior to severance
from employment. The compensation of a participant taken into account under the Plan for any plan year
commencing after December 31, 2007, shall not exceed $200,000 (as adjusted pursuant to Section 401(a)(17)(B) of
the Internal Revenue Code to take into account any cost-of-living increase). The limitations of this Section will be
deemed satisfied if the annual benefit payable to a participant is not more than $1,000 multiplied by the participants
years of service with the Employer (not exceeding ten) and the participant has never participated in a defined
contribution plan maintained by the Company.
The term limitation year for purposes of this Section shall be the calendar year.
(b) The limitations outlined in this Section 6(b) shall apply to participants except that they shall not apply to distributions
from the Plan with an annuity starting date that is on or after the first day of the first limitation year beginning after
December 31, 1999.
To the extent that Code Section 415(e) is applicable to the current limitation year and if the participant is, or was,
covered by both a defined benefit plan and a defined contribution plan maintained by an Employing Company or
another plan required to be aggregated with this Plan under Code Section 415(g), the sum of the participants defined
benefit plan fraction and defined contribution plan fraction may not exceed 1.0 in any limitation year.
The defined benefit plan fraction is a fraction, the numerator of which is the sum of the participants projected annual
benefits under all defined benefit plans (whether or not terminated) maintained by an Employing Company or another
plan required to be aggregated with this Plan under Code Section 415(g) and the denominator of which is the lesser of
(i) 1.25 times the dollar limitation of Section 415(b)(1)(A) of the Internal Revenue Code in effect for the limitation
year, or (ii) 1.4 times the participants average compensation for three consecutive years that produces the highest
average.
The defined contribution plan fraction is a fraction, the numerator of which is the sum of the annual additions to the
participants account under all defined contribution plans maintained by an Employing Company or another plan
required to be aggregated with this Plan under Code Section 415(g) (whether or not terminated) for the current and all
prior limitation years, and the denominator of which is the sum of the lesser of the following amounts determined for
such year and for each prior year of service with an Employing Company and any other company maintaining a plan
required to be aggregated with this Plan under Code Section 415(g): (i) 1.25 times the dollar limitation in effect under
9
GENERAL PROVISIONS
Section 415(c)(1)(A) of the Internal Revenue Code for such year, or (ii) 1.4 times the amount which may be taken
into account under Section 415(c)(1)(B) of the Code.
Projected annual benefit means the annual benefit to which the participant would be entitled under the terms of the
Plan if the participant continued employment until normal retirement age (or current age, if later) and the participants
compensation for the limitation year and all other relevant factors used to determine such benefit remained constant
until normal retirement age (or current age, if later).
If, in any limitation year, the sum of the defined benefit plan fraction and the defined contribution plan fraction will
exceed 1.0, the amount of annual additions and the rate of benefit accruals would be adjusted so that the sum of the
fractions would not exceed 1.0.
Effective for limitation years beginning on or after January 1, 2000, the combined plan limitations of Code Section
415(e) shall no longer apply.
(c) Effective January 1, 1986 and on each January 1 thereafter, the $90,000 limitation will be automatically adjusted by
the Commissioner of Internal Revenue. The new limitation will apply to limitation years ending on or after that date.
(d) Notwithstanding the preceding provisions of this Section, the foregoing maximum limitation shall not apply to a
particular pension if (1) the annual amount of such pension payable under this Plan, together with the aggregate
annual amount of any other pensions payable with respect to such participant under all other defined benefit plans
maintained by an Employing Company, does not exceed $10,000, and (2) the participant was not at any time a
participant in a defined contribution plan maintained by an Employing Company. In the case of a participant who has
less than 10 years of service with an Employing Company and any other company maintaining a plan required to be
aggregated with this Plan under Code Section 415(g), the limitations expressed in this Section 6 shall be multiplied by
a fraction, the numerator of which is the number of years of service with an Employing Company and the
denominator of which is 10. In the event a participant participates in a defined contribution plan maintained by an
Employing Company, the benefits provided hereunder shall be further adjusted, if required, by Internal Revenue Code
Section 415(e).
(e) In the event the Internal Revenue Service determines that this Plan is a top-heavy plan pursuant to Section 17, the
calculation of the defined benefit plan fraction and the defined contribution plan fraction as defined in Section 6(b)
shall be modified by substituting 1.0 for 1.25 in each sentence where it appears.
(f) Effective for retirements after December 31, 1988, no participants accrued benefit shall exceed the greater of (i) the
participants accrued benefit calculated as of December 31, 1988 or (ii) the participants accrued benefit calculated as
of the date of retirement; provided, however, that for the purpose of the calculation in clause (ii), the participants
pensionable earnings and benefit compensation shall be determined not to have exceeded $200,000 in any plan year
prior to 1989 or to have exceeded such figure as adjusted in accordance with Internal Revenue Code Sections
401(a)(17) and 415(d) and the regulations thereunder in any plan year after 1988.
Effective for retirements after December 31, 1993, no participants accrued benefit shall exceed the greater of (i) the
participants accrued benefit calculated as of December 31, 1993 or (ii) the participants accrued benefit calculated as
of the date of retirement; provided, however, that for the purpose of the calculation in clause (ii) immediately above,
the participants pensionable earnings and benefit compensation shall be determined not to have exceeded $150,000,
as adjusted in accordance with Internal Revenue Code Sections 401(a)(17) and 415(d) and the regulations thereunder,
in any plan year after 1993.
A participants pensionable earnings and benefit compensation taken into account in determining benefit accruals in
any plan year beginning after December 31, 2001, shall not exceed $200,000, as adjusted in accordance with Internal
Revenue Code Section 401(a)(17)(B). For purposes of determining benefit accruals in a plan year beginning after
December 31, 2001, a participants pensionable earnings for any plan year prior to 2002 shall not exceed $200,000,
while a participants benefit compensation for any plan year prior to 2002 shall not exceed the Internal Revenue Code
Section 401(a)(17) compensation limit (as adjusted) in effect for such prior plan year.
Effective for plan years beginning after December 31, 1996, the family aggregation rules under Code Sections
401(a)(17) and 414(q)(6) shall no longer apply.
(g) Effective January 1, 1991, for purposes of determining whether former employees who separated from service prior
to January 1, 1987, are highly compensated former employees, the Plan will utilize the special rule provided by
Temporary Treasury Regulation Section 1.414(q)-1T Q&A-4:(d).
(h) In the case of a participant who participates in more than one plan sponsored by the Employing Company or in
another plan required to be aggregated with this Plan, the Plan Administrator shall have the discretion to determine
how to apportion the limitations outlined in Section 6 among the plans.
(i) Effective for retirements on or after December 31, 2001, in the case of participants with Marathon service who are
subject to the special provisions described in Section 36 of the General Provisions of the Plan, the annual benefit
payable under the Marathon Pension Plans shall not be aggregated with the annual benefit payable under this Plan for
purposes of the application of the limitations of this Section. With respect to Steel Transferees (as defined in Section
10
GENERAL PROVISIONS
36(c)), years of participation in the Marathon Pension Plans shall be aggregated with years of participation in the Plan
for purposes of the application of the limitation described in (a)(1) above (dollar limitation), while years of service
with Marathon shall be aggregated with years of service with an Employing Company for purposes of the application
of the limitation described in (a)(2) above (compensation limitation). With respect to Marathon Transferees (as
defined in Section 36(c)), years of participation in the Marathon Pension Plans prior to January 1, 2002, shall be
aggregated with the years of participation in the Plan (including periods after December 31, 2001, during which
compensation paid to a Marathon Transferee by Marathon is recognized by the Plan pursuant to Section 36(f)(1)) for
purposes of the application of the limitation described in (a)(1) above (dollar limitation), while years of service with
Marathon prior to January 1, 2002, shall be aggregated with years of service with an Employing Company for
purposes of the application of the limitation described in (a)(2) above (compensation limitation).
(j) The foregoing provisions of this Section 6 are intended to implement and comply with the applicable requirements of
Section 415 of the Internal Revenue Code, which are incorporated herein by this reference, and in the event that any
provision of this Plan fails to comply with an applicable requirement of Section 415 of the Internal Revenue Code,
such provision of this Plan shall be construed so as to comply at all times with the applicable requirement of Section
415 of the Internal Revenue Code.
11
GENERAL PROVISIONS
the Board of Directors will continue to receive the amounts indicated on such Exhibit A without regard to their actual
pensionable earnings.
Notwithstanding anything above, effective with monthly benefit payments made after August 1, 1996, any overpayment
of pension shall not be deducted from any monthly benefit payable under this Plan to the extent that such overpayment
results from an erroneous determination of (a) eligibility for any pension benefit, (b) the amount of the special initial pension
payment or (c) the amount of regular pension if the error in the calculation of the amount of regular pension is due to a
mistaken determination of continuous or allowed service and/or of the average monthly earnings or benefit compensation
used to calculate such regular pension as long as (i) the participant did not cause, in whole or in part, such erroneous
determination which resulted in such overpayment or (ii) the participant did not know or did not have reason to suspect that
his or her pension reflected such an erroneous determination; provided, however, that nothing herein shall prohibit the Plan
Administrator from netting overpayments against underpayments and vice versa. Regardless of whether or not the
overpayment which resulted from an erroneous determination of the type described in (a), (b) and (c) above is deducted from
any monthly benefit payable under this Plan, the monthly benefit payable to the participant, surviving spouse, survivor or
co-pensioner shall be adjusted to the correct amount on a prospective basis from the date the participant is notified of the
overpayment; and further provided, however, effective January 1, 1997, that the Plan Administrator shall net overpayments
from this Plan against underpayments from the USS/KOBE pension plan (or the USS-POSCO pension plan) and vice versa
as long as the Plan Administrator adjusts on a prospective basis the pension payable from this Plan if the correction of the
pensionable earnings or benefit compensation would impact the pension payable from this Plan or the USS/KOBE pension
plan (or the USS-POSCO pension plan) by $1.00 or more per month and as long as the Plan Administrator after making all
such adjustments reimburses to or collects from the USS/KOBE pension plan (or the USS-POSCO pension plan) the net
underpayment or overpayment which results from the combination of all such adjustments on a retroactive basis with any
reimbursement coming from this Plans assets and any collection being added to this Plans assets. Effective with respect to
any lump-sum distribution made after December 31, 1998, any overpayment of pension shall be recovered from the lump-
sum distribution regardless of the cause of such overpayment.
9. Nonforfeiture Provisions
In the event of termination or partial termination of this Plan, the rights of all participants to the benefits accrued to the
date of such termination shall, to the extent funded, become nonforfeitable as of such date. A participants right to an
accrued benefit derived from his or her own contributions is nonforfeitable. There may be no forfeiture of any portion of a
50% or more vested participants accrued benefit derived from contributions by Employing Companies because the
participant withdraws his or her own contributions where permitted under the Plan.
A participants right to a normal retirement benefit under non-contributory or final earnings provisions of the pension
rules shall be nonforfeitable upon the later of (1) the date the participant attains age 65 or (2) the date the participant
completes five years of continuous service.
Notwithstanding anything to the contrary contained in this Plan, the regular pension payable to any participant who
retires on Normal Retirement or on Deferred Vested Pension payable as an unreduced benefit at age 65 shall not be less than
the participants highest accrued monthly benefit as determined at any point in time under the applicable pension rules.
No amendment to the Plan shall decrease the accrued Section 411(d)(6) protected benefits of any participant unless the
Plan amendment satisfies the requirement of Section 412(d)(2) of the Internal Revenue Code and the regulations thereunder.
12
GENERAL PROVISIONS
pension rules, be less than the amount of regular pension that would have been payable under this Plan, if the continuous
service used in the determination of Other Pension was not used to calculate the amount of regular pension under this Plan.
Effective October 1, 1987, notwithstanding anything to the contrary in any Part of the Pension Rules, a participant may,
with the consent of the Vice President-Administration of the Pension Fund, voluntarily authorize the deduction of charitable
or political action contributions or deductions to repay the Pension Fund for assessments, employee benefit overpayments or
other monies owed to the Pension Fund from any pension payment provided under the Plan.
Effective January 1, 1991, notwithstanding anything to the contrary contained in this Plan, the increase in pension
specifically authorized effective as of January 1, 1991 to retired participants under the Met-Chem Pension Plan shall not be
offset against any pension payable under any portion of this Plan.
Effective February 1, 1991, notwithstanding anything to the contrary contained in this Plan, no discharge, liquidation or
dismissal or severance allowance or payment of similar kind (severance allowance) shall be deducted from the regular
pension payable to a participant eligible for immediate pension unless the same severance allowance would be deductible
from the regular pension payable to a participant eligible for a deferred vested pension.
13
GENERAL PROVISIONS
1. In the case of a participant covered by non-contributory pension rules that provide a percent formula pension based on
earnings during the five consecutive 12 calendar month periods out of the last 10 consecutive 12 calendar month
periods prior to retirement in which the participants aggregate earnings were the highest, the following calculation
applies; (a) the five consecutive 12 calendar month period in which earnings were the highest is determined by first
aggregating the earnings in each of the 10 consecutive 12 calendar month periods prior to retirement to establish 10
calculation years (i.e., the first calculation year is the most recent 12 out of the last 120 calendar months prior to
retirement, the second calculation year is the prior 12 consecutive months and so forth through the last 12 out of the
120 months), (b) a calculation period consisting of the five consecutive calculation years in which the participants
aggregate earnings were the highest is selected and (c) the 60-month divisor used in the determination of average
monthly earnings in the calculation period shall be reduced:
(i) in the case of permanent incapacity retirement only, by the number of full calendar months of continuous service
without pay because of disability if the period in which the participants aggregate earnings are the highest is the
last 60 calendar months before retirement, and
(ii) in the case of all retirements, by the greater of the number of full calendar months of continuous service without
pay (excluding full calendar months deducted under (i) above):
(a) in excess of three, during each absence, or
(b) in excess of six for the total of all absences.
2. In the case of a participant covered by non-contributory pension rules that provide a percent formula pension based on
the participants aggregate earnings during the last 10 consecutive 12 calendar months prior to retirement, the 120-
month divisor used in the determination of average monthly earnings shall be reduced:
(i) in the case of permanent incapacity retirement only, by the number of full calendar months of continuous service
without pay because of disability in the last six months before retirement, and
(ii) in the case of all retirements, by the greater of the number of full calendar months of continuous service without
pay (excluding full calendar months deducted under (i) above):
(a) in excess of three, during each absence, or
(b) in excess of 12 for the total of all absences.
Effective January 1, 1983, notwithstanding anything to the contrary contained in any of the non-contributory pension
rules, with respect to any participant who, because of the existence of conditions other than the level of business activity
affecting the ability to work 12 months in any year, is normally actively employed less than 10 full calendar months in each
year, the divisor used to calculate average monthly earnings shall, except as otherwise provided pursuant to a collective
bargaining agreement, be determined as follows:
1. In the case of a participant covered by non-contributory pension rules that provide a percent formula pension based on
earnings during the five consecutive 12 calendar month periods out of the last 10 consecutive 12 calendar month
periods prior to retirement in which the participants aggregate earnings were the highest, the 60-month divisor used
in the determination of average monthly earnings shall be reduced:
(i) in the case of permanent incapacity retirement only, by the number of full calendar months without pay because
of disability if the period in which the participants aggregate earnings are the highest is the last 60 calendar
months before retirement, and
(ii) in the case of all retirements, by the greater of the number of full calendar months of continuous service without
pay (excluding full calendar months deducted under (i) above):
(a) in excess of six during each such absence, or
(b) in excess of 21 for the total of all absences.
2. In the case of a participant covered by non-contributory pension rules that provide a percent formula pension based on
the participants aggregate earnings during the last 10 consecutive 12 calendar months prior to retirement, the 120-
month divisor used in the determination of average monthly earnings shall be reduced:
(i) in the case of permanent incapacity retirement only, by the number of full calendar months of continuous service
without pay because of disability in the last six months before retirement, and
(ii) in the case of all retirements, by the greater of the number of full calendar months of continuous service without
pay (excluding full calendar months deducted under (i) above):
(a) in excess of six, during each absence, or
(b) in excess of 42.
14
GENERAL PROVISIONS
15
GENERAL PROVISIONS
exceptions described below applies, the annual payments to employees who are among the 25 highest paid employees with
respect to a plan year are restricted to the amounts equal in each year to the payments that would be made on behalf of the
employee under:
(a) a straight life annuity that is the actuarial equivalent of the accrued benefit and other benefits to which the employee is
entitled under the Plan (other than any benefits which would be treated as a Social Security Supplement under the
Code), and
(b) the amount of the payments that the employee is entitled to receive under benefits which would be treated as a Social
Security Supplement under the Code.
For purposes of this Section, an employee will be treated as among the 25 highest paid employees with respect to a plan
year (a top-paid 25 employee) if the employee is among the 25 highest paid employees out of all the employees of
members included in the United States Steel Corporation controlled group (within the meaning of Section 1563(a) of the
Code, determined without regard to Section 1563(a)(4) and (e)(3)(C)). The determination of which employees are included
in the group of the 25 highest paid employees for a plan year shall be made based upon the compensation of employees from
the immediately preceding plan year.
Notwithstanding the above, the restrictions on distributions to a top-paid 25 employee shall not apply if any one (or
more) of the following requirements is satisfied:
(a) after payment to a top-paid 25 employee of all benefits payable to the employee under the Plan, the value of Plan
assets equals or exceeds 110 percent of the value of current liabilities (as defined in Code Section 412(1)(7)); or
(b) the value of the benefits payable to a top-paid 25 employee under the Plan is less than 1 percent of the value of the
Plans current liabilities before the distribution; or
(c) the value of the benefits payable to a top-paid 25 employee under the Plan does not exceed the amount that may be
treated as a mandatory distribution under Code Section 411(a)(11)(A).
16
GENERAL PROVISIONS
defined contribution plan maintained by the Employing Company), such present value or amount will be increased by
the aggregate distributions made with respect to an employee during the five-year period ending on the determination
date.
For plan years beginning after December 31, 2001, for purposes of determining the amount of the present value of
cumulative accrued benefits for any employee under this Plan (or the amount of the account of any employee under a
defined contribution plan maintained by the Employing Company), such present value or amount will be increased by
the aggregate distributions made with respect to an employee during the one-year period ending on the determination
date. The preceding sentence shall also apply to distributions under a terminated plan which, had it not been
terminated, would have been aggregated with the Plan under Section 416(g)(2)(A)(i) of the Code. In the case of a
distribution made for a reason other than severance from employment, death, or disability, this provision shall be
applied by substituting 5-year period for 1-year period.
The accrued benefits and accounts of any individual who has not performed services for the Employing Company
during the 1-year period ending on the determination date shall not be taken into account.
(c) Permissive aggregation group: The required aggregation group of plans plus any other plan or plans of the Employing
Company which, when considered as a group with the required aggregation group, would continue to satisfy the
requirements of Sections 401(a)(4) and 410 of the Code.
(d) Required aggregation group: (1) Each qualified plan of the Employing Company in which at least one key employee
participates, and (2) any other qualified plan of the employer which enables a plan described in (1) to meet the
requirements of Sections 401(a)(4) or 410 of the Code.
(e) Determination date: For any plan year subsequent to the first plan year, the last day of the preceding plan year. For
the first plan year of the Plan, the last day of that year.
(f) Valuation date: For any plan year subsequent to the first plan year, the first day of the plan year. For the first plan
year of the Plan, the date of establishment of the Plan.
(g) Present value of accrued benefits: For purposes of calculating the present value of accrued benefits under this Plan,
such present value shall be calculated as of the most recent valuation date within the 12-month period ending on the
determination date, using the same actuarial assumptions that are used to determine the actuarial equivalence of
optional forms of benefits as provided in Section 1.1 of the applicable pension rules of the Plan. In determining the
present value of accrued benefits, nonproportional subsidies, but not proportional subsidies, are taken into account. A
subsidized benefit is a benefit payable in a form other than the normal retirement benefit of which is greater than the
actuarial equivalent of the normal retirement benefit. A subsidy is nonproportional unless it applies to a group of
employees that would independently satisfy the eligibility requirements of Section 410(b) of the Internal Revenue
Code. If two or more defined benefit plans are being tested to determine whether an aggregation group is top-heavy,
the actuarial assumptions used for all plans within the Employing Company must be the same and will be the actuarial
assumptions described in this Section 17.1(g).
For the purposes of determining whether this Plan is top-heavy, a participants accrued benefit under any defined
benefit plan will be determined under a uniform accrual method which applies in all defined benefit plans maintained
by an Employing Company or where there is no such method, as if such benefit accrued not more rapidly than the
slowest rate of accrual permitted under the fractional rule of Code Section 411(b)(1)(C).
(h) Compensation: For purposes of determining who is a key employee, the compensation to be used shall be the
Participants wages, salaries and other amounts received for personal services actually rendered in the course of
employment with an Employing Company maintaining the Plan for the limitation year. For any plan year in which
this Plan is deemed a top-heavy plan, the annual compensation taken into account for any employee shall not exceed
$200,000 (adjusted annually by the Secretary of the Treasury under Section 416(d) of the Code, as amended, or
regulations thereunder).
(i) A non-key employee shall mean any participant who is not a key employee. Non-key employees shall include
participants who are former key employees.
Vesting
17.2 Notwithstanding the deferred vested pension provisions of any part of the pension rules adopted under this Plan, in the
event this Plan is deemed a top-heavy plan in accordance with Section 17.1(b), in any plan year beginning after
December 31, 1983, then a participant who has completed at least three years of service, and whose employment with the
Employing Company is terminated before the normal retirement age specified in this Plan for any reason other than death,
shall be vested in, and entitled to receive, a nonforfeitable right to 100% of his or her accrued benefit derived from
employer contributions.
In the event this Plan becomes top-heavy and thereafter ceases to be a top-heavy plan, the vesting schedule may be
changed to one that would otherwise be permitted, including the schedules referred to in the first sentence of this Section
17.2. If the vesting schedule is so changed, then, in that event, all participants with at least five years of service at the time
17
GENERAL PROVISIONS
such change is adopted shall be entitled to the greater of the nonforfeitable percentage under the vesting schedule existing
before such change, or the nonforfeitable percentage existing under the vesting schedule after said change.
If the vesting schedule in this Plan is changed, the nonforfeitable percentage of any participants accrued benefit derived
from employer contributions shall not be less than the nonforfeitable percentage computed under this Plan without regard
to such change.
18
GENERAL PROVISIONS
Minimum Benefits
17.3 Each participant who is not a key employee within the meaning of Section 17.1(a) shall accrue a minimum benefit derived
from employer contributions for every year in which the participant completes a year of credited service. The accrued
benefit derived from employer contributions by non-key employees, when expressed as an annual retirement benefit, shall
be equal to the lesser of (1) 2% of the participants top-heavy average compensation multiplied by such participants top-
heavy years of service, or (2) 20% of the participants top-heavy average compensation. For purposes of this Section 17.3,
top-heavy average compensation shall mean the participants average compensation over the period of five consecutive
years during which the participant has the greatest aggregate compensation from the Employing Company. Years ending
in a plan year beginning before January 1, 1984, and years beginning after the close of the last plan year in which this Plan
was deemed a top-heavy plan as defined in Section 17.1(b), shall not be taken into account. In addition, and for purposes
of this Section 17.3, top-heavy years of service shall mean all years of service except years of service completed in a
plan year beginning before January 1, 1984, and years of service completed in any plan year during which this Plan was
not deemed a top-heavy plan within the meaning of Section 17.1(b). Each non-key employee who participates in this Plan
and who has completed at least 1,000 hours of service (or the equivalent) during any plan year this Plan is deemed a top-
heavy plan will accrue a minimum benefit for such year in accordance with the top-heavy rules regardless of the non-key
employees level of compensation. Similarly, a non-key employee will not fail to accrue a minimum benefit because
either (1) the employee was not employed on a specified date, or (2) the employee is excluded from participation (or
accrues no benefit) merely because of a failure to make mandatory employee contributions.
If a minimum benefit must be provided to a participant for a year under Section 17, the participant will accrue the
minimum benefit payable under this Plan even if such participant is also a participant in a top-heavy defined contribution
plan maintained by an Employing Company.
For purposes of this Section 17.3, for plan years beginning after December 31, 2001, top-heavy years of service shall
not include any service completed in any plan year during which this Plan benefits (within the meaning of Code Section
410(b)) no key employee or former key employee.
19
GENERAL PROVISIONS
hundred and twenty days of the date of the termination with eligibility under this Plan under Section 32, he or she shall
immediately resume participation in this Plan (in accordance with Section 18) and the individuals final earnings monthly
pension shall be immediately suspended (or repayment commenced). The suspension (or repayment) of final earnings
monthly pension shall cease as of the earlier of: (1) the termination of the part-time employees employment; or (2) the first
of January following the year in which such part-time employee attains age 70-1/2, if the employee attained age 70-1/2 after
December 31, 1987.
Upon the part-time employees termination of employment, the participants final earnings pension shall be recalculated
to take into account (a) the regular pension which has been suspended (or, in the case of a participant who had been eligible
only for a deferred vested pension, the regular pension which would have been payable upon attainment of age 65) and (b) a
regular pension payable with respect to the period of part-time service calculated in accordance with the pension rules
applicable to such period but utilizing earnings from the period of full-time employment to the extent necessary to determine
average monthly earnings as though there had been no intervening time between the two periods of employment and
utilizing the participants prior service for the purpose of determining the appropriate accrual rate. The recalculated pension
will be payable immediately except as the participant is not entitled to immediate retirement based on both his or her age and
combined service as both a full-time employee and a part-time employee. A participant may elect a lump-sum distribution
of the part of his or her recalculated pension which is earned with respect to the period of part-time service. Because the
career earnings pension is not suspended during reemployment, service as a part-time employee shall not serve to increase in
any way the amount of the career earnings pension payable to the participant.
If a former participant who is reemployed in 1988 or 1989 as a part-time employee pursuant to this Section had worked
prior to such reemployment as a leased employee, hours worked by such participant as a leased employee during 1988 and
1989 shall, for the purpose of this Section only, be considered as hours of work as a part-time employee; provided, however,
that the pension of such a participant who worked at least one thousand hours as a leased employee shall not be suspended
until such time as he or she is actually reemployed pursuant to this Section, and further provided, that for the purpose of
determining pensionable earnings while employed as a leased employee, such reemployed participant shall be deemed to
have been paid the same hourly wage rate (subject to the same conditions) as he or she is initially paid under reemployment
as a part-time employee.
Notwithstanding anything to the contrary in this Plan, an employee who becomes a participant in accordance with the
above and whose employment status is terminated following such employees last day worked shall incur a break in pension
continuous service as of the last day worked and shall not be considered to be on layoff status for the purpose of any
provision of this Plan.
Notwithstanding anything to the contrary contained herein, an employee who is a participant in this Plan and who is
transferred from full-time employment to part-time employment shall become a participant in this Plan under the provisions
of this Section immediately upon such transfer to part-time employment and such transfer shall not cause any break in
pension continuous service.
Effective January 1, 2000
Notwithstanding anything to the contrary contained herein, an employee who is transferred from part-time employment
to full-time employment, without having first been compensated for one thousand hours of work in a calendar year, shall be
treated, for the purpose of determining his or her Corporation continuous service date, as though he or she had attained such
requirement on the date that the employee is transferred to full-time employment.
20
GENERAL PROVISIONS
the maximum widows Social Security benefit payable based on the law in effect as of the date of the
participants retirement, or such lesser amount as may be evidenced by a Social Security award);
(b) the normal life expectancy obtained from the 1971 Group Annuity Mortality Tables unisexed on a nine to one
male-female ratio, and the Disabled Life Expectancy Tables (wage and salaried) based on United States Steel
Corporation experience, unisexed on the nine-to-one ratio, for application to permanent incapacity retirees; and
(c) the applicable interest rate established under the Pension Benefit Guaranty Corporation regulations to determine
the present value of immediate annuities in the event of plan termination.
2. If a Surviving Spouses Benefit, Survivors Benefit or a co-pensioners benefit is payable following the death of a
participant on or after September 30, 1986, the surviving spouse, survivor or co-pensioner may, prior to
commencement of benefit payments, elect to receive a lump-sum distribution determined on the basis of the amount
of the Surviving Spouses, Survivors or co-pensioners benefit payable, the 1971 Group Annuity Mortality Tables,
unisexed on a nine-to-one female-male ratio, and the interest rate referred to above in effect as of the first of the
month following the date the participants death occurs; provided, however, that no lump-sum distribution shall
include the temporary Social Security supplement of $179 per month (if applicable). In determining the amount of
Surviving Spouses Benefit payable, the offset for Social Security or Railroad Retirement Widows Benefit (the
Public Pension Widows Benefit) is based on the amount to which the surviving spouse is entitled, in the case of a
surviving spouse who has attained the age required to commence such Benefit. For a surviving spouse who is not
eligible to receive a Public Pension Widows Benefit, the offset is based on an estimate of the Benefit that would have
been payable had the surviving spouse been eligible at the time of the participants death. (Recognizing in the lump-
sum calculation that such estimated benefit will not commence until the earliest age Social Security or Railroad
Retirement regulations allow.) In the later case, the surviving spouse is requested to obtain the estimated Public
Pension Widows Benefit from the Social Security Administration or Railroad Retirement Board on a form provided
by the Pension Fund.
3. In the event a participant, or survivor or co-pensioner of a participant, is eligible for a lump-sum distribution pursuant
to any part of the contributory pension rules, the lump-sum distribution provided under this Section 19 shall not be
less than the minimum amounts provided by the applicable contributory pension rules, and in no event shall the
amount determined hereunder be less than the employees contributions and accrued interest thereon.
4. Notwithstanding anything to the contrary in the pension rules, for the purpose of determining the lump-sum amount
payable to a married participant, the participants spouse shall be the designated survivor for calculation of the present
value of the Survivor Benefit, and for determination of the present value of the Survivor Benefit for an unmarried
participant, the designated survivor shall be deemed to be three years younger than the participant.
5. Notwithstanding anything to the contrary contained herein, a participant who has filed a claim for workers
compensation, occupational disease benefits or similar benefits due to disability in the nature of permanent disability,
which claim has not been finally resolved at the time of application for pension, shall not be eligible for lump-sum
distribution at the time of such application but may elect lump-sum distribution within 30 days of the date such claim
is finally resolved with the amount of such lump sum to be determined as though the participant had retired on the
date he or she applied for such lump-sum distribution. At the time of retirement, each participant who elects a lump-
sum distribution (and the spouse, if the participant has a spouse) will be required to agree on the lump-sum
distribution form provided by the Pension Fund that in the event the participant should receive an award of workers
compensation, occupational disease benefits or similar benefits for disability in the nature of permanent disability as a
result of a future claim for such benefit, the participant (and the spouse, if the participant has a spouse) shall pay to the
Pension Fund on a monthly basis the amount by which the non-contributory or final earnings pension otherwise
payable (except for such lump-sum distribution) would have been reduced by reason of the payment of such benefit.
6. Effective July 31, 1987, and subject to the participation provisions in Section 32, each participant electing a lump-sum
distribution shall also be required to agree, on the above lump-sum distribution form, that in the event such participant
is reemployed by an Employing Company (excluding employment pursuant to the part-time employment program
adopted by United States Steel Corporation until the employee is eligible for coverage as a participant under the Plan)
and, at the time of the employees reemployment the employee is a participant under this Plan, he or she shall repay to
the Pension Fund on a monthly basis for each month of such employment, the amount of the non-contributory or final
earnings pension such participant would have otherwise received, and which would be subject to suspension for each
month of employment if he or she had not received a lump-sum distribution.
7. Effective July 31, 1987, the participant (and the spouse, if participant has a spouse) shall further agree to the payment
of liquidated damages in an amount(s) equal to 20% of the above amount(s) (including interest on such amount(s) at
the rate of 9% per annum) as well as attorneys fees if the Pension Fund is forced to bring suit to enforce any
provision of the above lump-sum distribution form.
8. Effective September 1, 1988, with respect to a reemployed participant (and prior to July 1, 2003) who elects to repay
that portion of his or her lump-sum distribution attributable to the final earnings pension, notwithstanding anything to
the contrary contained in this Plan or the Pension Rules:
21
GENERAL PROVISIONS
(i) the rate of interest to be charged to the participant on the amount of money to be returned to the Plan shall be the
interest rate which was used in the determination of the participants lump sum distribution, provided such
interest rate shall not exceed the interest rate established in Section 411(a)(7)(C) of the Code; and
(ii) the Plan will accept a rollover of a distribution from the participants Individual Retirement Account as all or part
of the required repayment if all funds in the Individual Retirement Account are attributable to a rollover of a
qualified total distribution (as defined in Code Section 402(a)) from a plan qualified under Code Section 401(a)
or earnings on such rollover. Effective January 1, 2002, the Plan will accept a rollover of a distribution from the
participants Individual Retirement Account as all or part of the required repayment provided that the participant
provides the Pension Fund with any such information or documentation as the Pension Fund deems necessary
and appropriate; and
(iii) the provisions of paragraph 6 of this Section shall not apply to a participant who repays the non-contributory
portion of any lump-sum distribution.
9. With respect to a participant who retires on or after January 1, 1990 on a Rule-of-65 retirement and who elects a
lump-sum distribution, the $400 increased pension otherwise payable with respect to any calendar year shall not be
paid until such time in the following calendar year as the participant has supplied the Pension Fund with a copy of all
W-2 forms and a statement of the annual earned income with respect to such prior year.
10. Effective January 1, 1990, with respect to a participant electing a lump-sum distribution, any age used in the
calculation of the lump-sum distribution shall be as of the determination date. The interest rate used in the calculation
of the lump-sum distribution of a pension, other than a deferred vested pension, under this Plan shall be the PBGC
interest rate in effect for the determination date. The interest rate used in the calculation of the lump-sum distribution
of a Non-Contributory (Final Average Earnings) deferred vested pension shall be the PBGC interest rate in effect for
the determination date. The interest rate used in the calculation of the lump-sum distribution of a Contributory (career
earnings) deferred vested pension shall be the lower of (a) 8%, or (b) the PBGC interest rate in effect for the
determination date. Effective December 1, 1994, the determination date shall be the beginning of the month
following the month in which the participants continuous service breaks (or the beginning of the month following the
month in which the participant dies in the case of a survivor benefit); if the Pension Fund both: (1) receives notice of
participants (survivors) election to commence benefits and (2) is able to determine the participants (survivors)
eligibility for benefits and the amount of such benefits within two months of the date for which benefits would first be
payable (with the Pension Funds ability in this regard being defined as having received from the prospective retiree
all necessary participant (survivor) information). Otherwise, the determination date shall be the beginning of the
month following the month in which the Pension Fund has both received notice of the election to commence benefits
and has determined eligibility for and the amount of benefits. With respect to any participant (survivor), whose claim
for benefits has been initially denied by the Pension Fund but who is subsequently determined to be eligible for such
benefits, the determination date shall be the month following the month in which such favorable eligibility
determination becomes final.
11. Effective January 1, 1993, with respect to a participant electing a lump sum distribution and notwithstanding any
provision of the Plan to the contrary that would otherwise limit a distributees election under this Section, an eligible
distributee may elect, at the time and in the manner prescribed by the Pension Fund, to have any portion of an eligible
rollover distribution (other than a distribution of less than $200) paid directly to an eligible retirement plan specified
by the distributee in a direct rollover.
(i) Definition of Eligible Rollover Distribution
(A) Distributions to Eligible Distributees Described in Section 19(11)(iii)(A)
An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the
distributee, except that an eligible rollover distribution does not include: any distribution that is one of a
series of substantially equal periodic payments (not less frequently than annually) made for the life (or life
expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the
distributees designated beneficiary, or for a specified period of ten years or more; any distribution to the
extent such distribution is required under Code Section 401(a)(9); the portion of any distribution that is not
includible in gross income; and any other amounts determined by the Internal Revenue Service or under
Treasury regulations not to be an eligible rollover distribution. However, for distributions after
December 31, 2001, a portion of a distribution shall not fail to be an eligible rollover distribution merely
because the portion consists of after-tax employee contributions which are not includible in gross income.
However, such portion may be transferred only to an individual retirement account or annuity described in
Code Sections 408(a) or (b), or to a qualified defined contribution plan described in Code Sections 401(a) or
403(a) that agrees to separately account for amounts so transferred, including separately accounting for the
portion of such distribution which is includible in gross income and the portion of such distribution which is
not so includible.
22
GENERAL PROVISIONS
23
GENERAL PROVISIONS
age, service and earnings determined as of December 31, 1994 and the benefit levels (including the $400
increased pension and the $179 pre-Medicare pension supplement (if applicable)) in effect as of
December 31, 1994.
15. Effective January 1, 1995 notwithstanding anything to the contrary contained in this Plan, any participant who incurs
a break in continuous service with eligibility for a final earnings deferred vested pension may elect to receive such
pension (1) in the form of a lump-sum distribution (as opposed to in the form of a deferred pension) or (2) in the form
of an immediate monthly pension with the first payment commencing the first month following the month in which
such break in continuous service occurs. If a participant (other than a participant covered by a Pension Rule Part that
provides for a special empirical or actuarial reduction in deferred vested pension) elects such immediate
commencement, of any deferred vested pension, the amount of pension otherwise payable shall be reduced in
accordance with the applicable table adopted under the Part IV-H Salaried Pension Rules for each month by which
the commencement of pension payments precedes the month following the month in which the participant would
have been first eligible to receive such deferred vested pension without any actuarial reduction (provided, however,
that with respect to any participant who incurs a break in pension continuous service prior to May 1, 1995, the
applicable reduction factors shall be rounded off to the nearest whole percent). Effective April 1, 1999 the specified
time period for election of immediate commencement of any deferred vested pension and the specified time period for
the election of a lump-sum distribution for any class of pension shall be 90 days (180 days effective with distributions
for plan years beginning after December 31, 2006) from the date on which the pension application is sent to the
participant by the Pension Fund; provided, however, that effective April 1, 1999, a participant eligible for a deferred
vested pension who did not elect either immediate commencement or a lump-sum distribution of the same at the time
that such participant incurred a break in pension continuous service and who has not commenced distribution of
benefits as of April 1, 1999 shall (regardless of the date of such participants termination) be afforded, following
attainment of age 60, the opportunity to elect a lump-sum distribution in accordance with the provisions of this
Section. However, pursuant to the provisions of the February 1, 1987 Pension Agreement between the United
Steelworkers of America and the USS Division of USX Corporation, participants in such situation from a bargaining
unit covered by such Pension Agreement shall not be afforded the opportunity for a lump-sum distribution.
Notwithstanding anything to the contrary contained in this Section, any election of a lump-sum distribution must be
made by the participant or the participants authorized agent prior to the participants death.
16. Effective January 1, 1997, notwithstanding anything to the contrary contained in Part II-L or Part II-M Non-
Contributory Pension Rules, with respect to any participant covered by the Part II-L and/or II-M Non-Contributory
Pension Rules who was reemployed by an Employing Company on or after January 31, 1991 and who had received a
lump-sum distribution of his or her pension at the time such participant incurred a break in continuous service, the
continuous service with respect to which the participant received such lump-sum distribution will be used in
calculating any subsequent pension benefit only if: (1) within two years of the date of such reemployment, or if later,
(2) before the fifth anniversary of the date on which the participant incurred the break in continuous service, the
participant repays an amount equal to the lump-sum distribution plus interest accrued at the rate used in the
calculation of the lump-sum distribution. Notwithstanding anything to the contrary contained in this Plan, with
respect to any participant who (a) incurred a break in continuous service, (b) received a lump-sum distribution of his
or her pension, and (c) was reemployed by an Employing Company on or after January 1, 1992 and within five years
of the date on which the participant incurred a break in continuous service, the continuous service (and allowed
service) with respect to which the participant received such lump-sum distribution will be used in calculating any
subsequent pension benefit if before the fifth anniversary of such reemployment, the participant repays an amount
equal to the lump-sum distribution plus interest accrued at the rate used in the calculation of the lump-sum
distribution.
17. Effective for retirements on and after April 1, 1997, notwithstanding anything to the contrary in this Plan, if a
participant (including a participant accruing service with Marathon Oil Corporation, Marathon Petroleum Corporation
or their subsidiaries or successors) (1) gives written notice of his or her irrevocable decision to retire on other than a
deferred vested pension in the calendar month (the Election Month) immediately before the calendar month in
which such participant retires (the Intended Retirement Month), (2) does not take vacation during the Intended
Retirement Month, and (3) retires at the end of the Intended Retirement Month, the determination date used in the
calculation of the participants lump-sum distribution will be the determination date that would have been used had
the participant retired at the end of the Election Month rather than the determination date used for employees who
retire during the Intended Retirement Month if the use of the earlier determination date will be to the financial
advantage of the participant provided, however, that nothing herein prohibits the participant from revoking his or her
election to retire if the Company consents to such revocation. Effective January 1, 2009, if a participant would have
otherwise complied with the lump-sum lock-in provisions of Section 19.17 by providing prior written notice to retire
at the end of the Intended Retirement Month but fails to fully comply with the requirements under (1), (2) and/or (3)
thereof solely due to a Corporate action authorized by the Board of Directors (or any authorized committee thereof),
the determination date used for such participant will be the determination date used for employees who retire in the
24
GENERAL PROVISIONS
month immediately preceding the Intended Retirement Month if the use of the earlier determination date will be to the
financial advantage of the participant.
18. Notwithstanding anything to the contrary contained in this Plan, effective with respect to distributions from the Plan
with an annuity starting date that is on or after January 1, 2000, a participant electing a lump-sum distribution
pursuant to this Section shall receive the greater of the lump-sum distribution calculated in accordance with the
preceding paragraphs of this Section or the lump-sum distribution calculated in accordance with the preceding
paragraphs of this Section as though they had been amended to use: (a) the applicable mortality table under Code
Section 417(e)(3) (in lieu of the 1971 Group Annuity Mortality Table), and (b) the applicable interest rate under Code
Section 417(e)(3) for the second full calendar month preceding the first day of the month that contains the annuity
starting date for the distribution (in lieu of the interest rate established by the PBGC). The applicable mortality
table is the mortality table prescribed by the IRS Commissioner that is based on the prevailing commissioners
standard table used to determine reserves for group annuity contracts issued on the date as of which present value is
being determined. Notwithstanding anything to the contrary contained in this Plan, effective with respect to
distributions from the Plan with an annuity starting date that is on or after January 1, 2003, the applicable mortality
table is the table prescribed in Revenue Ruling 2001-62. Effective for plan years beginning on or after
January 1, 2008, the applicable mortality table is the applicable mortality table under Code Section 417(e)(3) that is
prescribed by Revenue Ruling 2007-67 and by subsequent guidance issued by the Commissioner. The applicable
interest rate is the annual interest rate on 30-year Treasury securities as specified by the IRS Commissioner.
Effective with respect to distributions from the Plan with an annuity starting date that is on or after January 1, 2008,
the applicable interest rate is the interest rate under the Code Section 417(e)(3) rules in effect for plan years
beginning on or after January 1, 2008.
19. Effective January 1, 2000, a participant who has made an election for or against immediate commencement of a
deferred vested pension or for or against the election of a lump-sum distribution may revoke any such election and
make a new election at any time that is both (a) prior to the commencement of payments and (b) within the 90-day
period (180-day period effective with distributions for plan years beginning after December 31, 2006) in which he or
she was permitted to make the original election. For purposes of this section, commencement of payments means the
first date that a pension check is issued to the participant.
20. Effective with retirements on or after January 1, 2000, notwithstanding anything to the contrary contained in this Plan,
the amount of one-half of the applicable Public Pension Widows Benefit, which is offset against the Surviving
Spouses Benefit in the calculation of a participants Rule-of-65, 70/80, 30-year, 60/15, 62/15 or normal retirement
lump-sum distribution, will be based on an amount obtained from Public Pension Widows Benefit Tables developed
by the Plans actuary. The tables and related methodology are updated annually by the Plans actuary to reflect
current Public Pension law and calculation methodology. For those participants who retire on a permanent incapacity
retirement and who have been awarded Public Pension Disability Benefits, the Widows Benefit will be calculated
using such disability benefit. For a permanent incapacity retiree who is denied Public Pension Disability Benefits, a
Public Pension Widows Benefit table amount that excludes post-retirement earnings will be substituted for the Public
Pension Disability Benefit. The amount obtained from the Tables, or, in the case of a permanent incapacity
retirement, a disability award will be used to project the Public Pension Widows Benefit payable at the participants
death. In making such projection, the Public Pension Widows Benefit at retirement is inflated by an annual factor
which is the average of the Social Security or Railroad Retirement, as applicable, cost-of-living increases for the three
calendar years prior to retirement.
21. For purposes of determining the average cost-of-living increase, the applicable increase used for a year will be the
increase first published by the Social Security Administration or Railroad Retirement Administration for that year
(disregarding subsequent corrections of such increase).
22. The Public Pension Widows Benefit Tables determine an estimated Public Pension Widows Benefit based on each
participants year of birth (and in the case of Railroad Retirement Tables, the participants period of railroad service
rounded down to whole years) and the participants Benefit Compensation under the Career Earnings Pension
provisions for the calendar year prior to the year in which retirement occurs, rounded down to the nearest $2,000 table
increment. Medicare Wages reported on Internal Revenue Service, Form W-2, will be substituted if the participant
had no Benefit Compensation in such year or if the participant was not covered by the Career Earnings pension. For a
participant who received no Benefit Compensation or Medicare Wages, as applicable, due to absence from work for
one or more equivalent months, the Benefit Compensation or Medicare Wages such participant did receive will, for
the purpose of determining the Public Pension Widows Benefit only, be adjusted so as to be representative of his or
her Benefit Compensation or Medicare Wages had such participant not been so absent. For a participant who had no
Benefit Compensation or Medicare Wages in the calendar year prior the year of retirement, Benefit Compensation or
Medicare Wages for the most recent calendar year in which such remuneration was received (adjusted, if applicable,
in accordance with the provisions of this paragraph) is used to determine the benefit under the Public Pension
Widows Benefit Table in effect for the year in which the participant retires.
25
GENERAL PROVISIONS
In the development of the Public Pension Widows Benefit Tables it was assumed that:
(a) Each participant is born on January 15 and begins receiving his or her Public Pension benefit at the later of (1)
the earliest date that an Old Age benefit is payable, or (2) the month following retirement.
(b) Participants who retire prior to attainment of age 58 on a class of retirement other than permanent incapacity will
seek other employment and continue to receive Public Pension earnings (at the same level as earned in the
calendar year prior to retirement) until the earliest age at which Public Pension Old Age benefits can commence.
For all other participants, no earnings are projected after retirement. In addition, for a participant eligible for
Railroad Retirement benefits, Tier II earnings are not assumed to continue after retirement.
(c) Each participant and the spouse are the same age and the participant is over age 65 at death.
(d) Each participants Public Pension earnings for years before the calendar year immediately before retirement are
an amount calculated by applying the reciprocal of the Social Security Administrations National Average
Annual Salary Increase Factors to the participants earnings the calendar year before retirement. This reverse
progression calculation continues to an assumed initial Public Pension participation at 21 years of age.
23. Effective for distributions on or after March 28, 2005, if any rule parts and agreements under this Plan contain
provisions for mandatory cashout of small balances upon termination, then the maximum balance subject to such
provisions is reduced to $1,000.
A copy of the applicable Public Pension Widows Benefit Tables may be obtain by writing to the Plan Administrator,
United States Steel and Carnegie Pension Fund, 600 Grant Street, Pittsburgh, PA 15219-2800.
26
GENERAL PROVISIONS
27
GENERAL PROVISIONS
1. Unless effective earlier pursuant to the terms of the applicable pension rules or pension agreement, the 10 year
continuous service requirement to qualify for a deferred vested pension is reduced to 5 years of continuous service for
participants who are accruing continuous service on or after January 1, 1989; and
2. Unless effective earlier pursuant to the terms of the applicable pension rules or pension agreement, Pre-Retirement
Survivor Annuity Coverage, where applicable, shall be effective following completion of 5 years of continuous
service for participants who are accruing continuous service on or after January 1, 1989.
3. The pension limitations provisions contained in paragraph 7.3(c) of the Part IV-G Pension Rules and paragraph 3.3(c)
of the Part II-J Pension Rules and the corresponding paragraph in any other Pension Rules shall not be applicable to
any participant who retires or incurs a break in continuous service on or after January 1, 1989.
4. Unless effective earlier pursuant to the terms of the applicable pension rules or pension agreement, the term normal
retirement age means age 65 with at least 5 years of continuous service; provided, however, that no special payment
shall be payable in the case of a participant covered under a collective bargaining agreement who is eligible for
normal retirement unless the participant has at least 10 years of continuous service (5 years in the case of retirements
on or after July 31, 1999).
5. Notwithstanding any other provision of this Plan, any pension benefit payable to or with respect to a participant who
retires on or after January 1, 1988 and after attainment of normal retirement age shall be calculated to take into
account continuous service accrued and creditable earnings paid after attainment of normal retirement age.
28
GENERAL PROVISIONS
A participant shall be assured that a Form PF-2 will be treated as filed on a timely basis if the Plan Administrator
receives it by the end of the 15th day of the month containing the requested Annuity Starting Date. A Form PF-
10 will be treated as filed on a timely basis if the Plan Administrator receives it within 90 days (180 days
effective with distributions for plan years beginning after December 31, 2006) of the date the form was prepared
by the Plan Administrator.
(d) The Plan Administrator shall furnish to each participant a written explanation in nontechnical language of the
terms and conditions of the pension payable to the participant in the automatic and optional forms under the Plan
(the QJSA Notice). Such explanation shall include a general description of the eligibility conditions for, and
the material features and relative values of, the optional forms of payment under the Plan, any rights the
participant may have to defer commencement of his or her pension, the requirement for spousal consent as
provided in paragraph (a) above, and the right of the participant to make, and to revoke, elections.
(e) The Plan Administrator must provide the QJSA Notice no more than 90 days (180 days effective with
distributions for plan years beginning after December 31, 2006) and no less than 30 days prior to the participant's
Annuity Starting Date. A participant's Annuity Starting Date may not occur less than 30 days after receipt of the
notice. An election of an optional form of benefit shall be made on a form provided by the Plan Administrator
and may be made during the 90-day period (180-day period effective with distributions for plan years beginning
after December 31, 2006) ending on the participant's Annuity Starting Date, but not prior to the date the
participant receives the written explanation described in paragraph (d).
(f) Notwithstanding the provisions of paragraph (e) above, a participant may, after having received the QJSA Notice,
affirmatively elect to have his or her benefit commence sooner than 30 days following receipt of the notice,
provided all of the following requirements are met:
(i) the Plan Administrator clearly informs the participant that he or she has a period of at least 30 days after
receiving the QJSA Notice to decide when to have his or her benefits begin and, if applicable, to choose a
particular optional form of payment;
(ii) after receiving the QJSA Notice, the participant affirmatively elects a date for his or her benefits to begin and,
if applicable, an optional form of payment, with such election made on a properly executed PF-2 Form (or
such other form as designated by the Administrator);
(iii) the participant is permitted to revoke his or her election until the later of the Annuity Starting Date or seven
days following the day he or she received the QJSA Notice;
(iv) payment does not commence less than seven days following the day the QJSA Notice is received by the
participant;
(v) the participant affirmatively waives the 30-day QJSA Notice decision period; and
(vi) the participant's Annuity Starting Date is after the date the QJSA Notice is provided and after the date the
participant provides the Plan Administrator with a properly executed waiver of the 30-day decision period.
(g) An election of an option may be revoked on a form provided by the Plan Administrator, and subsequent elections
and revocations may be made at any time and from time to time during the election period specified in paragraph
(e) or (f) above, whichever is applicable. An election of an optional form of payment shall be effective on the
participant's Annuity Starting Date and may not be modified or revoked after the Annuity Starting Date unless
otherwise provided under paragraph (f) above. A revocation of any election shall be effective when the
completed form is filed with the Plan Administrator. If a participant who has elected an optional form of
payment dies before the date the election of the option becomes effective, the election shall be revoked except as
otherwise provided in the Plan. If the Beneficiary designated under an option dies before the date the election of
the option becomes effective, the election shall be revoked.
4. Retroactive Annuity Starting Date
Effective as of January 1, 2004, the Plan may permit a participant (or former participant) whose annuity starting date,
based on the participant's early or normal retirement date, is on or after January 1, 2004, to commence his or her
benefit under the Plan based on a retroactive annuity starting date in accordance with the provisions of Treasury
regulations section 1.417(e)-1 if the retroactive date is due to an administrative delay as determined by the Plan
Administrator on a basis uniformly applicable to all participants similarly situated. Such a retroactive annuity starting
date shall be permitted only if such participant (a) filed a valid retirement election on a timely basis with the Plan
Administrator using a Form PF-10 (or such other form as designated by the Plan Administrator) but did not receive
the QJSA Notice required under Internal Revenue Code Section 417(a)(3) on a timely basis, or (b) experiences a
delay in benefit commencement under circumstances where the participant met all requirements to complete both a
valid retirement application and valid retirement election within the timeframe outlined in Section 25(3) of the Plan.
In accordance with Treasury regulations section 1.417(e)-1, any make-up payments the participant or former
participant would have received had benefit payments actually commenced on such retroactive annuity starting date
shall be credited with interest using simple interest. The simple rate of interest shall be the average of the interest
29
GENERAL PROVISIONS
rates established under the Pension Benefit Guaranty Corporation regulations to determine the present value of
immediate annuities in the event of plan termination commencing with the month in which such underpayment first
occurs and ending with the month in which such underpayment is repaid to the participant. Interest will be calculated
separately with respect to each month in which an underpayment occurs.
5. Payment of Pensions
A benefit paid in the form of a monthly distribution shall be paid on or near the last day of a calendar month (or later,
if determined appropriate by the Plan Administrator). A benefit paid in the form of a lump-sum distribution shall be
paid on or near the last day of the calendar month that contains the participants Annuity Starting Date.
6. New Tables for Optional Forms of Benefit
Effective February 1, 2006, the following provisions apply to participants whose Annuity Starting Date (as defined in
Section 25(3) above) occurs on or after February 1, 2006:
(a) All optional forms of benefit applicable to a participant under the Plan shall be calculated such that they are
actuarially equivalent, as determined using tables developed based upon the assumptions specified below. The
new tables shall be used to calculate the amount of monthly benefit payable to participants, and, if applicable, to
the survivor. The new tables for union-represented employees shall be determined using the 1983 Group
Annuity Mortality table, 90% male/10% female, using a 7% interest rate. The new tables for non-represented
employees shall be determined using the UP 94 projected to 2002 table, 75% male/25% female, using a 5%
interest rate. The monthly amount payable to a participant for Annuity Starting Dates on or after
February 1, 2006 under the elected optional form of benefit (except for the 75% Spouse Option) shall not be less
than the participants accrued normal retirement age 65 benefit as of January 31, 2006 (reduced by any early
immediate commencement charge used in determining the participants actual retirement benefit) under such
optional form of benefit (except for the 75% Spouse Option) determined using the applicable table under the Plan
as in effect on January 31, 2006.
(b) The new tables referenced in (a) above shall replace, as applicable, (1) the factors in the Table of Percentages
shown in Exhibit B of the Pension Agreement with the United Steelworkers of America effective May 20, 2003
(or the applicable Exhibit under a Pension Agreement applicable to union-represented employees covered under
the Plan), (2) the factors in the Table or Percentages For Automatic Cancellation Option shown in Exhibit E of
the Pension Agreement with the United Steelworkers of America effective May 20, 2003 (or the applicable
Exhibit under a Pension Agreement applicable to union-represented employees covered under the Plan), and (3)
the factors in the Table of Co-Pensioner Option Percentages under Appendix E of the Part IV-H Salaried Pension
Rules (or the applicable Appendix under other rules applicable to non-represented employees covered under the
Plan).
(c) In determining the amount of the Survivor Annuity under the REA Pre-Retirement Survivor Annuity Coverage
provisions of the Pension Agreement with the United Steelworkers of America effective May 20, 2003 (or under
Pension Agreements applicable to union-represented employees covered under the Plan), the applicable
percentage shall be one-half of the applicable factor from the 50% Option portion of the new tables referenced
in (a) above.
7. Determination of Age Differential for Optional Forms of Benefit
Notwithstanding anything to the contrary contained herein, effective November 30, 2003, for purposes of determining
the amount of an Optional Form of Benefit, the difference in age between the participant and the participants spouse,
survivor or co-pensioner is determined based on the actual birth dates of the individuals involved with any difference
in months of six or more being rounded up to the next whole year.
30
GENERAL PROVISIONS
(determined as of such date) of each participants right to his or her employer-derived accrued benefit must be not less than
such participants percentage computed under the Plan without regard to such amendment. In addition, in such a case each
affected participant having not less than 3 years of continuous service may elect, during the election period, to have the
nonforfeitable percentage of his or her accrued benefit derived from employer contributions determined without regard to
such amendment; provided, however, that this election shall not apply if the nonforfeitable percentage under the Plan, as
amended, at any time cannot be less than such percentage without regard to such amendment. The election period is the
election period outlined in the applicable Treasury regulations under IRC Section 411(a)(10).
31
GENERAL PROVISIONS
May 1, 1974 other than the first thirty nine cents ($0.39) per hour for hourly paid employees 1/ and the first sixty-eight
dollars ($68) per month for salaried employees and also excluding any payments made pursuant to the United
Steelworkers of America Profit Sharing/Pay Back Plan or any similar type of plan or program. The preceding shall
be modified for participants covered by a collective bargaining agreement that provides for a deviation in the method
of determining normal wages and salaries.
(b) Pay for travel time, including time traveling between job locations, but excluding transportation expenses; reporting
and call-out pay and other penalty or premium payments made in accordance with agreement or practice; vacation
allowance paid in lieu of time off for regular vacation; pay for service rendered as an instructor in a Company training
program; and bonus payments as follows: vacation bonus, various bonuses paid to seamen and vessel employees.
Such bonuses do not comprehend bonuses paid pursuant to the Service Bonus Plan that is applicable to certain
salaried clerical and technical personnel and any other comparable plan of which provides that such bonuses are not
creditable for purposes of any other benefit provided under a program or plan of the Company.
(c) Payment for time while absent on regular vacation or holidays.
(d) Allowances for absences covered by sick leave salary continuance or while on other authorized leave, including
family leave payments paid by an Employing Company or payment for time absent as a result of attending court as a
witness or juror, training courses, safety meetings, fire drills, medical treatment, physical examinations, military
training and other similar absences and activities. 2/
(e) In any case where the salary of a participant is reduced for any period by reason of benefits received pursuant to a
Company benefit program or any law and where, except for such reduction the participant would receive full salary,
for pension purposes the reduction shall be discarded and full salary shall be deemed to have been paid during such
period.
Notwithstanding anything to the contrary in the Plan, compensation paid to a participant shall be considered Benefit
Compensation only if it is paid to a participant while employed in a group of employees designated by the Board of
Directors of the Corporation as covered under the Part IV Pension Rules of this Plan.
1/
Effective February 1, 1992 with respect to a USWA represented participant who retires on or after January 31, 1991 but prior to January 31, 1994, this
amount shall include a Cost-of-Living Adjustment in the amount of $2.36 per hour which would otherwise be excluded.
Effective August 1, 1994 with respect to a USWA represented participant who retires on or after January 31, 1994, this amount shall include a Cost-of-
Living Adjustment in the amount of $4.72 per hour which would otherwise be excluded.
2/
Such allowances do not comprehend retirement and separation allowances including severance and termination pay in accordance with Union agreement,
Company policy, or government regulations and payments to families or estates of deceased participants.
32
GENERAL PROVISIONS
January 1, 2007. However, effective January 1, 2009, qualified military service will not be treated as a deemed severance of
employment for distribution purposes. Effective January 1, 2007, in accordance with Code Section 401(a)(37), in the case
of a participant who dies while performing qualified military service, the survivors of the participant are entitled to any
additional benefits (other than benefit accruals relating to the period of qualified military service) that would have been
provided under the Plan had the participant resumed employment and then terminated employment on account of death.
Such benefits include, if applicable under the Plan, accelerated vesting, ancillary life insurance benefits, and other survivors
benefits provided under the Plan that are contingent on a participants termination of employment on account of death.
32. Participation
Coverage under this Plan is limited to (a) those otherwise eligible non-represented salaried employees whose last hiring
date with an Employing Company was before July 1, 2003 (or before July 1, 2004 in the case of otherwise eligible non-
represented salaried employees who are hired by Transtar, Inc. and its participating subsidiaries), excluding employees who
were hired under the United States Steel Corporation Transition Employment Program, and (b) hourly employees who
became a participant in the Plan prior to July 1, 2003 (July 1, 2004 in the case of employees who are hired by Transtar, Inc.
and its participating subsidiaries), pursuant to Section 18. Coverage under this Plan for other eligible employees, including
those covered by a collective bargaining agreement, is subject to rules outlined in the applicable pension agreement or rules.
Eligible employees of Transtar, Inc. and its subsidiaries who were (a) hired by Transtar, Inc. or its subsidiaries on or after
July 1, 2004 into a union-represented position, (b) accruing continuous service for benefit accrual purposes under this Plan
and (c) transferred to an eligible non-union position prior to June 1, 2008, are covered under this Plan ("Transtar
Transferees"). Effective February 1, 2011, Transtar Transferees subsequently transferred to a group of eligible non-union
employees who, except for the last hiring date, are otherwise eligible under the applicable rules under this Plan, continue to
be covered under this Plan, subject to Plan terms.
The following provisions do not apply to (a) employees covered by a collective bargaining agreement or (b) non-
represented employees covered by rules or an agreement under this Plan that are also applicable to employees covered by a
collective bargaining agreement (the provisions applicable to such employees are contained in the applicable rules or
agreement under this Plan):
(a) Notwithstanding anything to the contrary contained herein, if a former eligible employee receives a lump-sum
distribution pursuant to rules or an agreement under this Plan (or any predecessor plan) and is later reemployed by an
Employing Company on or after July 1, 2003 (July 1, 2004 in the case of employees who are hired by Transtar, Inc.
and its subsidiaries), such former eligible employee will not be a participant under this Plan and shall have no right to
repay his or her lump-sum distribution.
(b) Notwithstanding anything to the contrary contained herein, if a former eligible employee (1) is receiving a monthly
pension distribution pursuant to rules or an agreement under this Plan (or any predecessor plan), (2) is later
reemployed by an Employing Company on or after July 1, 2003 (July 1, 2004 in the case of employees who are hired
by Transtar, Inc. and its subsidiaries) and (3) such former eligible employee would otherwise be considered a
participant under rules that were in effect on the date that the former eligible employee most recently terminated
employment (applicable Pension Rules) had his or her reemployment date been prior to July 1, 2003 (July 1, 2004
in the case of employees who are hired by Transtar, Inc. and its subsidiaries), then:
(1) the monthly pension shall be suspended; and
(2) compensation paid by the Employing Company after reemployment shall be used in the determination of
average monthly earnings for the purpose of Section 7 of the applicable Pension Rules and continuous service
with the Employing Company after reemployment shall be considered as continuous service for all purposes
of the applicable Pension Rules except for benefit accrual purposes.
(c) Notwithstanding anything to the contrary contained herein, if a former eligible employee who at the time of
termination had a vested benefit (1) has not commenced receiving a monthly pension distribution pursuant to rules or
an agreement under this Plan (or any predecessor plan), (2) is later reemployed by an Employing Company on or after
July 1, 2003, (July 1, 2004 in the case of employees who are hired by Transtar Inc. and its subsidiaries), and (3) such
former eligible employee would otherwise be considered a participant under the applicable rules that were in effect on
the date that the former eligible employee most recently terminated employment (applicable Pension Rules) had his
or her reemployment date been prior to July 1, 2003 (July 1, 2004 in the case of employees who are hired by Transtar,
Inc. and its subsidiaries), then compensation paid by the Employing Company after reemployment shall be used in the
determination of average monthly earnings for the purpose of Section 7 of the applicable Pension Rules and
continuous service with the Employing Company after reemployment shall be considered as continuous service for all
purposes of the applicable Pension Rules except for benefit accrual purposes.
33
GENERAL PROVISIONS
34
GENERAL PROVISIONS
commence their pension benefits under this Plan until they terminate their employment with the affiliated or nonaffiliated
entity (or successors); provided, however, effective for payments commencing on or after May 1, 2001, such participants
may elect to commence their benefits under this Plan upon attainment of normal retirement age.
In addition, effective May 1, 2003, in the event the Pension Benefit Guaranty Corporation (the PBGC) institutes
proceedings to terminate the pension plan of such affiliated or nonaffiliated entity (the Purchaser), such Purchaser will
cease to be an employing company under this Plan effective the later of the date the PBGC institutes such termination
proceedings or June 15, 2003. As of such date, Plan participants employed by such Purchaser will cease their accrual of
continuous service and, if applicable, pensionable earnings under the Plan and may commence their pension benefits under
the Plan on a prospective basis.
Effective February 1, 1993, notwithstanding anything to the contrary contained in this Plan, participants who were or
are employed in a plant or other operation at the time such unit was or is sold to an affiliated or nonaffiliated entity will not
be credited with service with the purchasing entity for the purpose of becoming eligible for Rule-of-65 or 70/80 pensions or
for the purpose of benefit accrual; however, participants will be credited with service with the purchasing entity for the
purpose of becoming eligible for Rule-of-65 or 70/80 pension to the extent specifically authorized by the Board of Directors.
Participants may also receive credit for earnings when employed with the purchasing entity, but only as specifically
authorized by the Board of Directors. With respect to participants employed in units sold prior to February 1, 1993, the
preceding two sentences are effective as of the date of sale to the extent such treatment was approved by the Board of
Directors following the sale.
Notwithstanding anything to the contrary in this Plan, no increased pension shall be payable to any participant who is
employed in a plant or other operation which is sold to a nonaffiliated entity and who subsequently retires on Rule-of-65 or
70/80 pension except as the Board of Directors had specifically authorized continued coverage of such participant under the
Rule-of-65 or 70/80 provisions of this Plan.
With respect to any participant who is employed in a plant or other operation which is sold, the following shall apply
regardless of the date of sale (or transfer to the employ of the purchasing entity if transfer is later than the date of sale),
notwithstanding anything to the contrary in the Plan or in any previously adopted Special Committee action governing such
sale:
1. If a participant retires or dies on or after July 1, 1995 and leaves a surviving spouse who is eligible for a minimum
surviving spouses benefit, the amount of such benefit will not be prorated on the basis of USX/USS service to total
USX/USS and purchasing entity service if, as of the date of sale, the participant was eligible to retire on thirty year,
60/15, 62/15 or normal retirement and had fifteen or more years of continuous service.
2. (a) If a participant who retires on or after July 1, 1995 was eligible to retire on a 30 year, 60/15, 62/15 or normal
retirement as of the date of sale, any special initial pension payable will be calculated based on the participants
vacation entitlement determined under the USX/USS vacation policy applicable as of the date of the sale, taking
into account the participants vacation rate as of the date of sale (except as otherwise provided by the Special
Committee action applicable to the sale in question), but recognizing such participants total USX/USS and
purchasing entity service and assuming that all vacation had been taken as of the date of retirement, the special
initial pension payment shall not be further reduced in any manner.
(b) If a participant who retires on or after July 1, 1995 was not eligible to retire on a 30 year, 60/15, 62/15 or normal
retirement as of the date of sale, any special initial pension payable will be a pro rata portion of the amount
calculated in accordance with (a) above based on the relationship between USX/USS service and total USX/USS
and purchasing entity service; provided, however, that nothing in this paragraph shall apply to any participant
covered by a Special Committee action which did not reduce in some way the special initial pension payment
otherwise payable to a participant transferred with such sale.
(c) In no event shall any special initial pension payment be less than three times the participants regular final
earnings pension exclusive of any provisions for an increased pension.
(d) Except as otherwise provided by a Special Committee action applicable to a specific sale, the average monthly
earnings used to calculate a pension under the percent formula will not be less than the average monthly earnings
that would have been used to calculate such pension had the participant retired on the date of his or her transfer to
the employ of the purchasing entity.
(e) In no event shall the 60 and 120 month divisors used in the determination of pensionable earnings be reduced to
take into account any month in which the participant is not credited with earnings because the participant is in the
employ of a purchasing entity.
3. If the participant was covered under the Part IV-G or Part IV-H Salaried Pension Rules but had insufficient service to
vest in a deferred vested pension as of the date of sale, and if the participant exercised his or her rights under those
Pension Rules to withdraw his or her contributions and interest at the time of sale, the participant will be credited with
35
GENERAL PROVISIONS
service with the purchasing entity for the purpose of attaining eligibility for final earnings pension benefits as though
he or she had not withdrawn such contributions and interest.
Effective August 1, 1995, with respect to the determination of pension benefits payable to any individual who is a
plaintiff in the Pickering cases covered by a Settlement Agreement dated July 19, 1995, notwithstanding anything to the
contrary contained in this Plan, in the event that there is any conflict between the provisions of the Settlement Agreement
and the provisions of the Plan, the provisions of the Settlement Agreement shall control. Effective January 1, 1997,
notwithstanding anything to the contrary contained in this Plan, in the event that the provision of relief under Section 8(j) of
the Settlement Agreement should result in a decrease in the retirees monthly pension (albeit an increase in the minimum
benefit payable the surviving spouse), the relief required under Section 8(j) of the Settlement Agreement shall be provided in
the form of an increase in the pension payable to the participant. The participants service and earnings with BM&T shall
not be taken into account in any way in the calculation of any surviving spouses benefit payable as a result of such
participants death.
Pursuant to the second paragraph of this Section, the Board of Directors of USX Corporation (effective January 1, 2002,
United States Steel Corporation) has taken action with respect to certain sales of plants or other operations to designate the
purchasing entity as a subsidiary under the rules of this Plan in order to permit employees at such locations to continue to
accrue continuous service under this Plan after such sale under such terms and conditions as the Board of Directors has
prescribed but subject to the requirements of the first five paragraphs of this Section. Set forth below are the terms and
conditions relative to accrual of benefits, eligibility for various types of benefits, and proration of certain benefits prescribed
by the Board of Directors with respect to the sales listed in Subsection C below which list all sales in the chronological order
in which they occurred. Because many of these terms and conditions do not vary significantly from one sale to another, the
most common terms and conditions are set forth in Subsection B and the deviations from such terms and conditions with
respect to any given sale are listed under such sale in Subsection C, for (a) participants who are not covered by a collective
bargaining agreement and, if applicable, (b) those who are covered by a collective bargaining agreement.
36
GENERAL PROVISIONS
on or after July 1, 1995, such proration shall not occur if the participant had 15 years or more of continuous service as
of the date of sale.
37
GENERAL PROVISIONS
1. Molded Plastic Products (Michigan City and Circleville Plants) sold to Chrysler Corporation (CHR) on
October 31, 1976.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1976 Non-Contributory Pension Rules Part
II-H(E) and the United States Steel 1976 Contributory Pension Rules Part IV-F.
Service with buyer counts toward pension eligibility for all classes of retirement provided employment with buyer
occurs within six months of the date of sale.
The increased pension shall be payable only if the employee retires during the two-year period immediately
following date of sale.
The special payment and surviving spouse minimum benefit shall not be prorated.
(b) Participants Described in Exhibit B
Eligibility for 70/80 retirement shall be limited to employees who retire within the two-year period immediately
following date of sale.
The increased pension shall be payable only if employee retires during the two-year period immediately following
date of sale.
The special payment and surviving spouse minimum benefit shall not be prorated.
2. Universal Atlas Cement sold to Lehigh Portland Cement Company on August 31, 1980.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1977 Non-Contributory Pension Rules Part
II-I1 and the United States Steel 1976 Contributory Pension Rules Part IV-F.
The special payment and surviving spouse minimum benefit shall not be prorated.
(b) Participants Described in Exhibit B
The 70/80 and the Rule-of-65 retirement provisions shall not apply to employees who were represented by a
union at the time of the sale.
The special payment and surviving spouse minimum benefit shall not be prorated.
3. USMs Crystal Block #20 Mine sold to Standard Oil Company of Ohio and Subsidiaries on September 30, 1981.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1980 Non-Contributory Pension Rules Part
II-J and the United States Steel 1976 Contributory Pension Rules Part IV-F.
The special payment and surviving spouse minimum benefit shall not be prorated.
(b) Participants Described in Exhibit B Not Applicable
4. Navios Corporation and Navios Ship Management Services, Inc. sold to Navios Shipholding, Inc. on July 7, 1982.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1980 Non-Contributory Pension Rules Part
II-J and the United States Steel 1976 Contributory Pension Rules Part IV-FL.
The special payment and surviving spouse minimum benefit shall not be prorated.
(b) Participants Described in Exhibit B Not Applicable
5. USMs Robena Preparation Plant, Dilworth Mine and Robena Mine sold to Consolidation Coal Co. (CONSOL) on
January 1, 1984.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1980 Salaried Pension Rules Part II-J and
United States Steel 1976 Contributory Pension Rules Part IV-F as amended to March 31, 1983.
The special payment and surviving spouse minimum benefit shall not be prorated.
38
GENERAL PROVISIONS
Compensation paid during 1984 by U. S. Steel Mining Company shall not be creditable earnings for employees
hired by CONSOL coincident with the sale.
(b) Participants Described in Exhibit B Not Applicable
6. Container Product Operations sold to Container Products, Inc. (CPI) on January 1, 1984.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1980 Non-Contributory Pension Rules Part
II-J and the United States Steel 1976 Contributory Pension Rules Part IV-F.
Eligibility for a 30 year retirement shall be limited to those employees who at time of retirement do not receive or
could not receive, upon proper application, a 70/80 or Rule-of-65 retirement (or other general equivalent) under
the provisions of the CPI Pension Plan.
The special payment and surviving spouse minimum benefit shall not be prorated.
The increased pension shall be prorated on permanent incapacity retirements based on the ratio of USX service to
combined USX and CPI (and any successor company) service. The entire amount is paid in the event that the CPI
Pension Plan is terminated.
(b) Participants Described in Exhibit B
Only non-represented hourly employees shall continue to be covered by the 70/80 and Rule-of-65 retirement
provisions.
Coverage under the 30 year retirement provisions shall be limited to those employees who at time of retirement do
not receive or could not receive, upon proper application, a 70/80 or a Rule-of-65 retirement (or other general
equivalent) under the provisions of the CPI Pension Plan.
The special payment and surviving spouse minimum benefit shall not be prorated.
The increased pension shall be prorated on permanent incapacity retirements based on the ratio of USX service to
the combined USX service and CPI (and any successor company) service. Entire amount is paid in the event that
the CPI Pension Plan is terminated.
7. Alside Division and Tire Cord and Electrical Cable Operation sold to Associated Materials Inc. on
February 29, 1984.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1980 Salaried Pension Rules Part II-J5 and
the United States Steel 1976 Contributory Pension Rules Part IV-FA.
The special payment and surviving spouse minimum benefit shall not be prorated.
The increased pension is prorated on permanent incapacity retirements.
(b) Participants Described in Exhibit B Not Applicable
8. USS Wire Rope Operations sold to Bridon American Corporation on March 31, 1984.
Exceptions:
(a) Participants Described in Exhibit A
Eligibility for 30 year retirement shall be limited to those employees who have attained the service requirement as
of the date of sale or who could attain said requirement within the two-year period following date of sale.
Eligibility for surviving spouse benefits shall be limited to those employees who have attained at least 15 years of
service as of the date of sale or who could attain said service within the two-year period following date of sale.
The special payment and surviving spouse minimum benefit shall not be prorated.
(b) Participants Described in Exhibit B
Eligibility for 30 year retirement shall be limited to those employees who have attained the service requirement as
of the date of sale or who could attain said requirement within the two-year period following the date of sale.
Eligibility for surviving spouse benefit shall be limited to those employees who have attained at least 15 years of
continuous service as of the date of sale or could attain said service within the two-year period following the date
of sale.
The special payment and surviving spouse minimum benefit shall not be prorated.
9. USM Lynch Coal District sold to Arch of Kentucky on September 28, 1984.
Exceptions:
39
GENERAL PROVISIONS
40
GENERAL PROVISIONS
41
GENERAL PROVISIONS
The 70/80 and the Rule-of-65 retirement provisions shall not apply to employees who were represented by a
union at the time of sale.
The special payment shall be prorated in all cases except as specified in paragraph B.4.(b) above.
Note: All employees represented by the United Steelworkers of America were terminated October 30, 1986 and
were not transferred to the buyer.
16. USS Chemicals (other than Tenn-USS) sold to Aristech Chemical Corporation (ACC) on December 4, 1986. Tenn-
USS sold to Aristech Chemical Corporation (ACC) on April 13, 1989.
Exceptions:
(a) Participants Described in Exhibit A
The increased pension on a permanent incapacity retirement shall not be payable where employee is eligible for
the increased pension under the ACC Pension Plan.
The special payment shall be limited to the lesser of (1) nine times the participants weekly adjusted vacation rate
of pay as of the date of transfer to ACC or, (2) nine times the participants weekly rate of vacation pay at
retirement reduced by the amount of pension paid (before any reduction for joint and survivor option) for the
initial three months of retirement under the ACC Pension Plan.
(b) Participants Described in Exhibit B (Not Applicable to Tenn-USS)
The increased pension on a permanent incapacity retirement shall not be payable where employee is eligible for
the increased pension under the Aristech Pension Plan.
The special payment shall be limited to the lesser of (1) nine times the participants weekly adjusted vacation rate
of pay as of the date of transfer to ACC or (2) the special initial pension payment provided under the ACC
Pension Plan multiplied by the ratio of the employees USX continuous service as of date of sale to the combined
USX and ACC continuous service at retirement except as specified in paragraph B.4.(b) above.
17. Oilwell Division of USX Corporation, USS Oilwell Supply Company, Inc. and Oilwell Production Products merged
with National Supply Company (a wholly owned subsidiary of Armco) on March 31, 1987 to form a general
partnership to be known as National-Oilwell.
Exceptions:
(a) Participants Described in Exhibit A
For Garland Works employees, the effective date of transfer shall be August 1, 1987.
The permanent incapacity retirement provision shall not apply.
The special payment shall be prorated on all retirements prior to July 1, 1995 except where the participant meets
the eligibility requirements for a 70/80 or Rule-of-65 retirement as specified in paragraph B.2. above.
(b) Participants Described in Exhibit B
For Garland Works employees, the effective date of transfer shall be August 1, 1987.
Only those employees who are represented by a union shall remain eligible for a permanent incapacity retirement;
however, the increased pension applicable to permanent incapacity retirements shall be discontinued.
The special payment for employees represented by a union shall be prorated in all cases except as specified in
paragraph B.4.(b) above.
The special payment for employees not represented by a union shall be prorated on all retirements prior to
July 1, 1995 except where the employee meets, as of the date of transfer, the eligibility requirements for a 70/80
or Rule-of-65 retirement as described in B.2. above.
18. American Bridge Division sold to American Bridge Company on May 29, 1987.
Exceptions:
(a) Participants Described in Exhibit A
The special payment calculation shall be limited to nine weeks.
(b) Participants Described in Exhibit B Not Applicable
19. Geneva Works sold to Basic Manufacturing and Technologies (now Geneva Steel) on August 31, 1987.
Exceptions:
(a) Participants Described in Exhibit A
The special payment calculation shall be limited to nine weeks.
Note: The Settlement Agreement in the lawsuit known as Pickering, et al. v. USX Corporation and the
consolidated Barney and Kenny cases provided in part that all Count I, VI and VIII plaintiffs in the
Pickering, Barney and Kenney consolidated cases who worked at Geneva Steel between August 31, 1987
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GENERAL PROVISIONS
and February 1, 1993 (except those specifically excluded in the Settlement Agreement) shall at the time of
their retirement be entitled to receive from the United States Steel and Carnegie Pension Fund their accrued
benefit under the Plan resulting from service at Geneva Steel up to February 1, 1993, reduced to its present
value, offset by the amount of their account balance in the Geneva Steel pension and employer
contributions to 401(k) plans as of February 1, 1993, plus interest up to the date of their retirement from
USX, with such interest being determined in accordance with the applicable Geneva Steel benefit plan.
(b) Participants Described in Exhibit B
The 70/80 and Rule-of-65 retirement provisions shall not apply.
Effective January 1, 2001, the Special Payment calculation shall be limited to nine weeks and shall not be
prorated.
Note: The Settlement Agreement in the lawsuit known as Pickering, et al. v. USX Corporation and the
consolidated Barney and Kenny cases provided in part that all Count I, VI and VIII plaintiffs in the
Pickering, Barney and Kenney consolidated cases who worked at Geneva Steel between August 31, 1987
and February 1, 1993 (except those specifically excluded in the Settlement Agreement) shall at the time of
their retirement be entitled to receive from United States Steel and Carnegie Pension Fund their accrued
benefit under the Pension Plan resulting from service at Geneva Steel up to February 1, 1993, reduced to its
present value, offset by the amount of their account balance in the Geneva Steel pension and employer
contributions to 401(k) plans as of February 1, 1993, plus interest up to the date of their retirement from
USX, with such interest being determined in accordance with the applicable Geneva Steel benefit plan.
20. Michigan Limestone Operations sold to Michigan Limestone Operations Limited Partnership on
September 22, 1987.
Exceptions:
(a) Participants Described in Exhibit A
The increased pension shall not apply.
The special payment calculation shall be limited to nine weeks.
(b) Participants Described in Exhibit B
The 70/80 and the Rule-of-65 retirement provisions shall not apply to employees who were represented by a
union at the date of sale.
The increased pension shall not apply.
The special payment calculation shall be limited to nine weeks.
21. USS Vandergrift Plant sold to Allegheny Ludlum Corporation on June 8, 1988.
Exceptions:
(a) Participants Described in Exhibit A
The increased pension shall not apply to 70/80 or Rule-of-65 retirements. The special payment calculation shall
be limited to nine weeks.
(b) Participants Described in Exhibit B
The increased pension shall not apply to 70/80 or Rule-of-65 retirements.
The special payment calculation shall be limited to nine weeks.
22. Transportation Subsidiaries of USX Corporation sold to Transtar, Inc. (TRS) on December 29, 1988 and Central
Radio and Telegraph sold to TRS on June 1, 1989.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1984 Non-Contributory Pension Rules Part
IV-G(R) except non-union transferred participants of Central Radio and Telegraph who are covered under Part
IV-G Pension Rules.
The increased pension for permanent incapacity retirements shall be limited to those participants who meet the
requirements for a 70/80 or Rule-of-65 retirement as specified in paragraph B.2. above.
The special payment calculation shall be limited to nine weeks and shall be prorated in all cases except as
specified in paragraph B.4.(b) above or where the participant meets the eligibility requirements for a 70/80 or
Rule-of-65 as specified in paragraph B.2. above.
The Public Pension deduction, if any, shall be based on the amount of the Salaried Employees Railroad
Retirement Annuity Benefit calculated at retirement based upon the Railroad Retirement formula in effect on
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GENERAL PROVISIONS
December 31, 1988 and the participants covered service and earnings while employed by USX Corporation or a
subsidiary company thereof. The primary old age insurance amount to be used to determine the Public Pension
deduction shall be equal to the maximum primary old age insurance amount payable under the Social Security Act
for a participant age 65 who was last employed on December 31, 1988 multiplied by the applicable percentage
provided under the pension rules.
(b) Participants Described in Exhibit B
Eligibility for 70/80 and Rule-of-65 retirements shall continue to apply to all employees and shall not be limited
to those having the age and service requirements as of the date of sale or within two years of the date of sale.
The increased pension shall not apply.
The special payment shall be limited to the lesser of:
(i) nine times the employees adjusted vacation rate of pay as of December 28, 1988, or
(ii) the special payment provided under the TRS Pension Plan, if provided thereunder, multiplied by the ratio
of continuous service with USX to the combined continuous service with USX and TRS except as
specified in paragraph B.4.(b) above. If item 22(b)(ii) results in the lower amount, no further proration is
applied.
The Public Pension deduction, if any, under the USX Pension Rules shall be determined on the basis of the
employees years of covered employment and earnings under the Railroad Retirement Act as of
December 31, 1988 while employed by a subsidiary of USX Corporation and the provisions of the Act as of said
date.
23. U. S. Agri-Chemicals Division sold to Sinochem U.S.A. on March 1, 1989 and became a subsidiary of Sinochem
called U. S. Agri-Chemicals Corporation (USAC).
Exceptions:
(a) Participants Described in Exhibit A
The special payment calculation shall be limited to nine weeks and shall be prorated in all cases except as
specified in paragraph B.4(b) above or where the participant meets the eligibility requirements for a 70/80 or
Rule-of-65 retirement as specified in paragraph B.2. above.
(b) Participants Described in Exhibit B
All union represented employees involved in this sale are covered by the United States Steel Corporation Plan for
Employee Pension Benefits (Revision of 1950) under the Non-Contributory Pension Rules Part V-I(E) which
does not provide for 70/80 or Rule-of-65 retirements, increased pension, special payment or surviving spouse
benefits.
24. USX Corporation Zinc and Limestone Operations located in Jefferson City, Tennessee sold to Union Zinc, Inc.
(UNZ) on June 16, 1989.
Exceptions:
(a) Participants Described in Exhibit A
The special payment calculation shall be limited to nine weeks.
The surviving spouse minimum benefit shall not be prorated for retirements prior to July 1, 1995 if the participant
had 15 years of continuous service prior to the date of his or her transfer.
(b) Participants Described in Exhibit B
The 70/80 and Rule-of-65 retirement provisions shall not apply.
The special payment calculation shall be limited to nine weeks.
The increased pension shall be applicable only to permanent incapacity retirements.
25. Lorain Works sold to a general partnership called USS/Kobe Steel Company (USS/Kobe) on June 30, 1989.
Exceptions:
(a) Participants Described in Exhibit A
Service and earnings with USS/Kobe (and its successor Republic Technologies International) shall be used for
benefit accrual purposes in determining the regular final earnings monthly pension payable, subject to the
following:
(i) the minimum pension based on the participants combined continuous service with USX and USS/Kobe
multiplied by the ratio obtained by dividing the participants continuous service with USX by the
participants combined continuous service with USX and USS/Kobe,
or, if higher
44
GENERAL PROVISIONS
(ii) the percent pension based on the participants average monthly earnings during the five consecutive twelve-
month periods in which earnings were the highest out of the last ten consecutive twelve-month periods prior
to retirement from USS/Kobe, multiplied by a percentage equal to the sum of 1.155% for each year of
combined service up to 30 years and 1.26% for each year of combined service in excess of 30 years, with the
amount determined pursuant to the foregoing multiplied by the ratio referred to in (a) above; provided,
however, that the average monthly earnings referred to above shall be limited to an amount equal to the
participants average monthly earnings as of the date of transfer to USS/Kobe, increased by one-third of 1%
for each month of continuous service with USS/Kobe.
Service with USS/Kobe shall be recognized in determining eligibility for all classes of retirement including 70/80
and the Rule-of-65 retirements with such eligibility being determined at time of retirement from USS/Kobe.
Pension benefits, including the special payment and the increased pension, otherwise payable prior to age 62 to a
participant who retires from USS/Kobe with eligibility for a 70/80 or Rule-of-65 retirement, shall be subject to
reduction by the pension benefits provided under the USS/Kobe Pension Plan that are attributable to continuous
service and creditable earnings with USX.
With respect to 70/80 or Rule-of-65 retirements that are paid in the form of a lump sum distribution, the lump sum
value attributable for the period prior to age 62 shall be paid by the USS/Kobe Pension Plan and the USX/USS
Pension Plan will pay the value attributable to age 62 and later.
The increased pension on a permanent incapacity retirement shall be prorated.
The special payment shall be limited to the lesser of;
(i) nine times the participants weekly adjusted vacation rate of pay as of the date of transfer to USS/Kobe, or
(ii) the special payment provided under the USS/Kobe Pension Plan reduced by the amount of vacation pay paid
or payable to the participant in the year of retirement, if such is provided,
multiplied, except as specified in paragraph B.4.(b) above, by the ratio of continuous service with USX
Corporation to the combined continuous service with USX and USS/Kobe.
(b) Participants Described in Exhibit B
Service and earnings with USS/Kobe (and its successor Republic Technologies International) shall be used for
benefit accrual purposes in determining the regular monthly pension payable subject to the following:
(i) the minimum pension shall be based on the participants combined continuous service with USX and
USS/Kobe multiplied by the ratio obtained by dividing the participants continuous service with USX by
the participants combined continuous service with USX and USX/Kobe,
or, if higher
(ii) the percent pension based on the participants average monthly earnings during the five consecutive
twelve-month periods in which earnings were the highest out of the last ten consecutive twelve-month
periods prior to retirement from USX/Kobe multiplied by a percentage equal to the sum of 1.155% for
each year of combined service up to 30 years and 1.26% for each year of combined service in excess of
30 years, with the amount determined pursuant to the foregoing multiplied by the ratio referred to in (i)
above; provided, however, that the average monthly earnings referred to above shall be limited to an
amount equal to the participants average monthly earnings as of the date of transfer to USS/Kobe
increased by one-third of 1% for each month of continuous service with USS/Kobe.
Service with USS/Kobe shall be recognized in determining eligibility for all classes of retirement including 70/80
and the Rule-of-65 with such eligibility being determined at time of retirement from USS/Kobe.
Pension benefits (including the special payment and the increased pension) otherwise payable prior to age 62 to a
participant who retires from USS/Kobe with eligibility for a 70/80 or a Rule-of-65 retirement, shall be subject to
reduction by the pension benefits provided under the USS/Kobe Pension Plan that are attributable to continuous
service and creditable earnings with USX.
The increased pension on a permanent incapacity retirement shall be prorated.
The special payment shall be limited to the lesser of:
(i) nine times the participants weekly adjusted vacation rate of pay as of the date of transfer to USS/Kobe,
or
(ii) the special payment provided under the USS/Kobe Pension Plan reduced by the amount of vacation pay
paid or payable to the participant in the year of retirement, if such is provided,
multiplied by the ratio of continuous service with USX Corporation to the combined continuous service with USX
and USS/Kobe except as specified in paragraph B.4.(b) above.
26. Imperial Mold, Inc. sold to Acutus Mold Inc. on August 1, 1989.
Exceptions:
45
GENERAL PROVISIONS
46
GENERAL PROVISIONS
47
GENERAL PROVISIONS
Transferred participants are covered under the United States Steel 1994 Salaried Pension Rules Rule Part IV-H.
Only those participants who as of October 31, 2003 are (1) at least 58 years of age and (2) have completed at least
30 years of continuous service, shall continue to be covered by the provisions of the lifetime minimum pension
under Section 7.3(b)(3) of the Part IV-H Pension Rules.
The permanent incapacity retirement provision shall not apply.
The special payment calculation shall be limited to nine weeks and shall be prorated in all cases except as
specified in paragraph B.4.(b) above.
The Increased Pension provisions for the Rule-of-65 and 70/80 retirements continue to be applicable.
(b) Participants Described in Exhibit B
Benefits provided under Section 3.3(b)(3) (30-year minimum pension) of the 2003 Pension Agreement between
United States Steel Corporation and United Steelworkers of America are applicable only to those employees who
had attained at least age 62 and had accrued at least 30 years of continuous service as of November 9, 2003 and
the benefit amount shall be limited to the amount payable had the participant retired as of November 8, 2003.
The permanent incapacity retirement provision shall not apply.
The Increased Pension for 30-year retirements under Section 3.6 of the 2003 Pension Agreement between United
States Steel Corporation and United Steelworkers of America will be paid to all employees who have 30 years of
eligibility service at retirement from both USS and ISG.
The special payment calculation shall be limited to nine weeks and shall be prorated in all cases except as
specified in paragraph B.4(b) or where the participant meets the eligibility requirements for a 70/80 or Rule-of-65
retirement as specified in paragraph B.2. above.
35. UEC Technologies LLC laboratory services business located in Monroeville, Pennsylvania, sold to Clark
Laboratories LLC on December 8, 2003.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1994 Salaried Pension Rules Rule Part IV-H.
Only those participants who as of the date of sale (or, if later, the date of transfer) are (1) at least 58 years of age
and (2) have completed at least 30 years of continuous service, shall continue to be covered by the provisions of
the lifetime minimum pension under Section 7.3(b)(3) of the Part IV-H Pension Rules.
The permanent incapacity retirement provision shall not apply.
The special payment calculation shall be limited to nine weeks and shall be prorated in all cases except as
specified in paragraph B.4.(b) above.
The Increased Pension provisions for Rule-of-65 and 70/80 retirements continue to be applicable.
(b) Participants Described in Exhibit B Not Applicable
36. The mineral properties of USS Real Estate, sold to RGGS Land & Minerals, Ltd., L.P. on February 26, 2004, with
employee transfers occurring effective March 1, 2004.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1994 Salaried Pension Rules Rule Part IV-H.
Only those participants who as of the date of sale (or, if later, the date of transfer) are (1) at least 58 years of age
and (2) have completed at least 30 years of continuous service, shall continue to be covered by the provisions of
the lifetime minimum pension under Section 7.3(b)(3) of the Part IV-H Pension Rules.
The permanent incapacity retirement provision shall not apply.
The special payment calculation shall be limited to nine weeks and shall be prorated in all cases except as
specified in paragraph B.4.(b) above.
The Increased Pension provisions for Rule-of-65 and 70/80 retirements continue to be applicable.
(b) Participants Described in Exhibit B Not Applicable
37. Assets of UEC Technologies LLC, sold to I. T. Technology Corp on October 1, 2004.
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the United States Steel 1994 Salaried Pension Rules Rule Part IV-H.
48
GENERAL PROVISIONS
Only those participants who as of the date of sale (or, if later, the date of transfer) are (1) at least 58 years of age
and (2) have completed at least 30 years of continuous service, shall continue to be covered by the provisions of
the lifetime minimum pension under Section 7.3(b)(3) of the Part IV-H Pension Rules.
The permanent incapacity retirement provision shall not apply.
The special payment calculation shall be limited to nine weeks and shall be prorated in all cases except as
specified in paragraph B.4.(b) above.
The Increased Pension provisions for Rule-of-65 and 70/80 retirements continue to be applicable.
(b) Participants Described in Exhibit B Not Applicable
38. Elgin, Joliet and Eastern Railway Company transferred to Canadian National Railway Company or its subsidiaries
(CN) on February 1, 2009
Exceptions:
(a) Participants Described in Exhibit A
Transferred participants are covered under the Transtar, Inc. 2001 Salaried Pension Rules Rule Part IV-Transtar.
Only those participants who as of January 31, 2009 are (1) at least 58 years of age and (2) have completed at least
30 years of continuous service, shall continue to be covered by the provisions of the lifetime minimum pension
under Section 7.3(c) of the Part IV-Transtar Pension Rules.
The permanent incapacity retirement provision shall not apply.
The special payment calculation shall be limited to nine weeks and shall be prorated in all cases except as
specified in paragraph B.4.(b) above.
The Increased Pension provisions for the Rule-of-65 and 70/80 retirements continue to be applicable.
(b) Participants Described in Exhibit B
Transferred participants are covered under the Part II-Transtar Non-Contributory Pension Rules.
The permanent incapacity retirement provision shall not apply.
The special payment calculation shall be limited to nine weeks and shall be prorated in all cases except as
specified in paragraph B.4(b) or where the participant meets the eligibility requirements for a 70/80 or Rule-of-65
retirement as specified in paragraph B.2. above.
49
GENERAL PROVISIONS
50
GENERAL PROVISIONS
51
GENERAL PROVISIONS
52
GENERAL PROVISIONS
earnings, as defined in the Applicable Pension Rules, to the extent such compensation is paid during the last ten
(10) consecutive 12-calendar month periods of continuous service prior to retirement.
(2) Amount of Career Earnings and Final Earnings Benefits
The pension amount payable with respect to a Steel Transferee under the Applicable Pension Rules is equal to
the greater of the monthly benefit payable under sub-paragraph (A) or sub-paragraph (B) below.
(A) Combined Service, less Offset for Marathon Pension Plan Benefit
The pension amount payable under this sub-paragraph (A) is the net of (i) less (ii) below:
(i) the pension amounts payable with respect to the participant (and surviving spouse and/or survivor)
under the Applicable Pension Rules, as revised:
(I) to recognize compensation paid by Marathon (to the extent attributable to service recognized in
paragraph (d) above and adjusted in accordance with (iii) below) as Benefit Compensation for
purposes of Section 4 thereof, and
(II) to recognize continuous service performed for Marathon (to the extent attributable to service
recognized in paragraph (d) above) as benefit accrual continuous service for purposes of Section
7 thereof;
(ii) an offset for the amount of monthly pension payable with respect to the participant (and/or surviving
spouse) under the applicable Marathon Pension Plans, with the amount of the offset equal to the actual
benefit payable under the Marathon Pension Plans on the date the participant commences his or her
Plan benefit;
(iii) Benefit compensation attributable to recognized Marathon service consists of the participants
accumulated base salary during such period of employment (Marathon Compensation), reduced to
recompense the Plan for employee contributions which were required by the Career Earnings or
Contributory Pension provisions during any portion of such service. The adjustment for such omitted
employee contributions is calculated by:
(I) multiplying the participants Marathon Compensation for the period during which such
contributions were required by the applicable contribution rate (e.g., 1.50%) to determine his or
her hypothetical employee contributions, and
(II) multiplying the participants hypothetical contributions by a factor of 5.5066 (which is the
product of total historical Plan pension payments and Plan assets as of July 31, 2001 divided by
total historical contributions to the Plan through July 31, 2001).
(B) Steel Service Only
The pension amount payable under this sub-paragraph (B) is the amount that would be payable with respect
to the participant (and surviving spouse and/or survivor) under the Applicable Pension Rules, as calculated:
(i) without recognizing compensation paid by Marathon as Benefit Compensation for purposes of Section
4 thereof, and
(ii) without recognizing continuous service performed for Marathon as benefit accrual continuous service
for purposes of Section 7 thereof.
(f) Marathon Transferees
(1) Compensation Paid by Marathon
For purposes of Section 7 of the Applicable Pension Rules under the Plan, compensation paid to Marathon
Transferees by Marathon, including compensation paid subsequent to the Effective Date, shall be taken into
consideration in determining the participants average monthly earnings to the extent such compensation is paid
during the last ten (10) consecutive 12-calendar month periods of continuous service prior to retirement.
(2) Amount of Career Earnings and Final Earnings Benefits
The pension amount payable with respect to a Marathon Transferee under the Applicable Pension Rules is equal
to the greater of the monthly benefit payable under sub-paragraph (A) or sub-paragraph (B) below.
(A) Combined Service, less Offset for Marathon Pension Plan Benefit
The pension amount payable under this sub-paragraph (A) is the net of (i) less (ii) below:
(i) the pension amount payable with respect to the participant (and surviving spouse and/or survivor)
under the Applicable Pension Rules, as calculated or revised:
(I) without recognizing compensation paid by Marathon as Benefit Compensation for purposes of
Section 4 thereof, and
(II) to recognize continuous service performed for Marathon as benefit accrual continuous service
for purposes of Section 7 to the extent such service is recognized in paragraph (d) above and is
53
GENERAL PROVISIONS
attributable to periods of service with Marathon prior to the date of the participants most recent
transfer of employment from Steel to Marathon;
(ii) an offset for the amount of monthly pension payable with respect to the participant (and/or surviving
spouse) under the applicable Marathon Pension Plans with the amount of the offset equal to the portion
of the total actual benefit payable under the Marathon Pension Plans on the date the participant
commences his or her Plan benefit that is attributable to Marathon continuous service recognized in
sub-paragraph (f)(2)(A)(i) above.
(B) Steel Service Only
The pension amount payable under this sub-paragraph (B) is the amount that would be payable with respect
to the participant (and surviving spouse and/or survivor) under the Applicable Pension Rules, as calculated:
(i) without recognizing compensation paid by Marathon as Benefit Compensation for purposes of Section
4 thereof, and
(ii) without recognizing continuous service performed for Marathon as benefit accrual continuous service
for purposes of Section 7 thereof.
(3) Commencement of Benefit
A Marathon Transferee may not commence pension benefits under the Plan until the earlier of: (A) the date the
participant terminates his or her employment from Marathon, or (B) the date the participant attains normal
retirement age under the Plan.
54
GENERAL PROVISIONS
remaining unpaid at the time of his/her death will be paid to his/her spouse, if then surviving, otherwise to his/her
estate. The first monthly payment to the participants spouse shall be payable for the month following the month in
which the participants death shall occur, but not for any month prior to the month for which the participant would
have first been entitled to receive a net reduced pension, and the last monthly payment to such spouse shall be payable
for the month in which such spouse shall die.
(d) Satisfactory proof of marriage of the participant and his/her spouse and of the age of the participants spouse will be
required prior to the payment of monthly installments under this coverage.
(e) If any participant shall die prior to commencement of pension payments, the participants spouse shall not be entitled
to any payments pursuant to this Section 37.
(f) If any participant shall have elected the 75% Spouse Option within the period established by (a)(3) above and his/her
spouse shall die after the end of such period, but prior to the death of such participant, such participant shall continue
to receive net reduced pension installments.
(g) If any participant shall have elected the 75% Spouse Option and his/her spouse shall die within the period established
by (a)(3) above, the participant shall be treated the same as if he/she had not elected such Option.
(h) Notwithstanding anything to the contrary contained in this Section 37, if the amount of regular pension which would
have been payable to him/her under the applicable Rules or Agreement under this Plan is subject to any further
deduction, change, offset or correction, then the amount payable under the 75% Spouse Option to such participant
and/or his/her spouse shall be adjusted to reflect any such further deduction, change, offset or correction.
(i) For the purpose of this Section 37, in the case of a participant who retires on other than a deferred vested pension or a
deferred 60/15 pension, if applicable, pension payments shall be deemed to commence as of the date of retirement,
provided he/she has made timely application for commencement of pension, and, in the case of a participant who
retires on a deferred vested pension or a deferred 60/15 pension, pension payments shall be deemed to commence as
of the first of the month for which regular pension is first payable under the provisions of the applicable Rules or
Agreement under this Plan.
(1) Limitations Applicable If the Plans Adjusted Funding Target Attainment Percentage Is Less Than 80 Percent, But
Not Less Than 60 Percent. Notwithstanding any other provisions of the Plan, if the Plans adjusted funding target
attainment percentage for a plan year is less than 80 percent (or would be less than 80 percent to the extent described
in Sub-Section 1(b) below) but is not less than 60 percent, then the limitations set forth in this Sub-Section 1 apply.
(a) 50 Percent Limitation on Single Sum Payments, Other Accelerated Forms of Distribution, and Other Prohibited
Payments. A participant or beneficiary is not permitted to elect, and the Plan shall not pay, a single sum payment
or other optional form of benefit that includes a prohibited payment with an annuity starting date on or after the
applicable section 436 measurement date, and the Plan shall not make any payment for the purchase of an
irrevocable commitment from an insurer to pay benefits or any other payment or transfer that is a prohibited
payment, unless the present value of the portion of the benefit that is being paid in a prohibited payment does not
exceed the lesser of:
(i) 50 percent of the present value of the benefit payable in the optional form of benefit that includes the
prohibited payment; or
(ii) 100 percent of the PBGC maximum benefit guarantee amount (as defined in 1.436-1(d)(3)(iii)(C) of the
Treasury Regulations).
The limitation set forth in this Sub-Section 1(a) does not apply to any payment of a benefit which under
411(a)(11) of the Internal Revenue Code may be immediately distributed without the consent of the
participant. If an optional form of benefit that is otherwise available under the terms of the Plan is not
available to a participant or beneficiary as of the annuity starting date because of the application of the
requirements of this Sub-Section 1(a), the participant or beneficiary is permitted to elect to bifurcate the
benefit into unrestricted and restricted portions (as described in 1.436-1(d)(3)(iii)(D) of the Treasury
Regulations). The participant or beneficiary may also elect any other optional form of benefit otherwise
available under the Plan at that annuity starting date that would satisfy the 50 percent/PBGC maximum benefit
guarantee amount limitation described in this Sub-Section 1(a), or may elect to defer the benefit in accordance
with any general right to defer commencement of benefits under the Plan.
55
GENERAL PROVISIONS
(b) Plan Amendments Increasing Liability for Benefits. No amendment to the Plan that has the effect of increasing
liabilities of the Plan by reason of increases in benefits, establishment of new benefits, changing the rate of
benefit accrual, or changing the rate at which benefits become nonforfeitable shall take effect in a plan year if the
adjusted funding target attainment percentage for the plan year is:
(i) Less than 80 percent; or
(ii) 80 percent or more, but would be less than 80 percent if the benefits attributable to the amendment were
taken into account in determining the adjusted funding target attainment percentage.
The limitation set forth in this Sub-Section 1(b) does not apply to any amendment to the Plan that provides a
benefit increase under a Plan formula that is not based on compensation, provided that the rate of such
increase does not exceed the contemporaneous rate of increase in the average wages of participants covered by
the amendment.
(2) Limitations Applicable If the Plans Adjusted Funding Target Attainment Percentage Is Less Than 60 Percent.
Notwithstanding any other provisions of the Plan, if the Plans adjusted funding target attainment percentage for a
plan year is less than 60 percent (or would be less than 60 percent to the extent described in Sub-Section 2(b) below),
then the limitations in this Sub-Section 2 apply.
(a) Single Sums, Other Accelerated Forms of Distribution, and Other Prohibited Payments Not Permitted. A
participant or beneficiary is not permitted to elect, and the Plan shall not pay, a single sum payment or other
optional form of benefit that includes a prohibited payment with an annuity starting date on or after the applicable
section 436 measurement date, and the Plan shall not make any payment for the purchase of an irrevocable
commitment from an insurer to pay benefits or any other payment or transfer that is a prohibited payment. The
limitation set forth in this Sub-Section 2(a) does not apply to any payment of a benefit which under 411(a)(11)
of the Internal Revenue Code may be immediately distributed without the consent of the participant.
(b) Shutdown Benefits and Other Unpredictable Contingent Event Benefits Not Permitted to Be Paid. An
unpredictable contingent event benefit with respect to an unpredictable contingent event occurring during a plan
year shall not be paid if the adjusted funding target attainment percentage for the plan year is:
(i) Less than 60 percent; or
(ii) 60 percent or more, but would be less than 60 percent if the adjusted funding target attainment percentage
were redetermined applying an actuarial assumption that the likelihood of occurrence of the unpredictable
contingent event during the plan year is 100 percent.
(c) Benefit Accruals Frozen. Benefit accruals under the Plan shall cease as of the applicable section 436 measurement
date. In addition, if the Plan is required to cease benefit accruals under this Sub-Section 2(c), then the Plan is not
permitted to be amended in a manner that would increase the liabilities of the Plan by reason of an increase in
benefits or establishment of new benefits.
(3) Limitations Applicable If the Plan Sponsor Is In Bankruptcy. Notwithstanding any other provisions of the Plan, a
participant or beneficiary is not permitted to elect, and the Plan shall not pay, a single sum payment or other optional
form of benefit that includes a prohibited payment with an annuity starting date that occurs during any period in
which the Plan sponsor is a debtor in a case under title 11, United States Code, or similar Federal or State law, except
for payments made within a plan year with an annuity starting date that occurs on or after the date on which the Plans
enrolled actuary certifies that the Plans adjusted funding target attainment percentage for that plan year is not less
than 100 percent. In addition, during such period in which the Plan sponsor is a debtor, the Plan shall not make any
payment for the purchase of an irrevocable commitment from an insurer to pay benefits or any other payment or
transfer that is a prohibited payment, except for payments that occur on a date within a plan year that is on or after the
date on which the Plans enrolled actuary certifies that the Plans adjusted funding target attainment percentage for
that plan year is not less than 100 percent. The limitation set forth in this Sub-Section 3 does not apply to any
payment of a benefit which under 411(a)(11) of the Internal Revenue Code may be immediately distributed without
the consent of the participant.
(4) Provisions Applicable After Limitations Cease to Apply.
(a) Resumption of Prohibited Payments. If a limitation on prohibited payments under Sub-Section 1(a), Sub-Section
2(a), or Sub-Section 3 applied to the Plan as of a section 436 measurement date, but that limit no longer applies
to the Plan as of a later section 436 measurement date, then that limitation does not apply to benefits with annuity
starting dates that are on or after that later section 436 measurement date.
(b) Resumption of Benefit Accruals. If a limitation on benefit accruals under Sub-Section 2(c) applied to the Plan as
of a section 436 measurement date, but that limitation no longer applies to the Plan as of a later section 436
measurement date, then benefit accruals shall resume prospectively and that limitation does not apply to benefit
56
GENERAL PROVISIONS
accruals that are based on service on or after that later section 436 measurement date, except as otherwise
provided under the Plan. The Plan shall comply with the rules relating to partial years of participation and the
prohibition on double proration under Department of Labor regulation 29 CFR 2530.204-2(c) and (d).
(c) Shutdown and Other Unpredictable Contingent Event Benefits. If an unpredictable contingent event benefit with
respect to an unpredictable contingent event that occurs during the plan year is not permitted to be paid after the
occurrence of the event because of the limitation of Sub-Section 2(b), but is permitted to be paid later in the same
plan year (as a result of additional contributions or pursuant to the enrolled actuarys certification of the adjusted
funding target attainment percentage for the plan year that meets the requirements of 1.436-1(g)(5)(ii)(B) of the
Treasury Regulations), then that unpredictable contingent event benefit shall be paid, retroactive to the period
that benefit would have been payable under the terms of the Plan (determined without regard to Sub-Section
2(b)). If the unpredictable contingent event benefit does not become payable during the plan year in accordance
with the preceding sentence, then the Plan is treated as if it does not provide for that benefit.
(d) Treatment of Plan Amendments That Do Not Take Effect. If a plan amendment does not take effect as of the
effective date of the amendment because of the limitation of Sub-Section 1(b) or Sub-Section 2(c), but is
permitted to take effect later in the same plan year (as a result of additional contributions or pursuant to the
enrolled actuarys certification of the adjusted funding target attainment percentage for the plan year that meets
the requirements of 1.436-1(g)(5)(ii)(C) of the Treasury Regulations), then the plan amendment must
automatically take effect as of the first day of the plan year (or, if later, the original effective date of the
amendment). If the plan amendment cannot take effect during the same plan year, then it shall be treated as if it
were never adopted, unless the plan amendment provides otherwise.
(5) Notice Requirement. See section 101(j) of ERISA for rules requiring the plan administrator of a single employer
defined benefit pension plan to provide a written notice to participants and beneficiaries within 30 days after certain
specified dates if the plan has become subject to a limitation described in Sub-Section 1(a), Sub-Section 2, or Sub-
Section 3.
(6) Methods to Avoid or Terminate Benefit Limitations. See 436(b)(2), (c)(2), (e)(2), and (f) of the Internal Revenue
Code and 1.436-1(f) of the Treasury Regulations for rules relating to employer contributions and other methods to
avoid or terminate the application of the limitations set forth in Sub-Sections 1 through 3 for a plan year. In general,
the methods a plan sponsor may use to avoid or terminate one or more of the benefit limitations under Sub-Sections 1
through 3 for a plan year include employer contributions and elections to increase the amount of plan assets which are
taken into account in determining the adjusted funding target attainment percentage, making an employer contribution
that is specifically designated as a current year contribution that is made to avoid or terminate application of certain of
the benefit limitations, or providing security to the plan.
(7) Special Rules
(a) Rules of Operation for Periods Prior to and After Certification of Plans Adjusted Funding Target Attainment
Percentage.
(i) In General. Section 436(h) of the Internal Revenue Code and 1.436-1(h) of the Treasury Regulations set
forth a series of presumptions that apply (1) before the plans enrolled actuary issues a certification of the
plans adjusted funding target attainment percentage for the plan year and (2) if the plans enrolled actuary
does not issue a certification of the plans adjusted funding target attainment percentage for the plan year
before the first day of the 10th month of the plan year (or if the plans enrolled actuary issues a range
certification for the plan year pursuant to 1.436-1(h)(4)(ii) of the Treasury Regulations but does not issue
a certification of the specific adjusted funding target attainment percentage for the plan by the last day of the
plan year). For any period during which a presumption under 436(h) of the Internal Revenue Code and
1.436-1(h) of the Treasury Regulations applies to the Plan, the limitations under Sub-Sections 1 through 3
are applied to the Plan as if the adjusted funding target attainment percentage for the plan year were the
presumed adjusted funding target attainment percentage determined under the rules of 436(h) of the
Internal Revenue Code and 1.436-1(h)(1), (2), or (3) of the Treasury Regulations. These presumptions are
set forth in Sub-Section 7(a)(ii) though (iv).
(ii) Presumption of Continued Underfunding Beginning First Day of Plan Year. If a limitation under Sub-
Section 1, 2, or 3 applied to the Plan on the last day of the preceding plan year, then, commencing on the
first day of the current plan year and continuing until the Plans enrolled actuary issues a certification of the
adjusted funding target attainment percentage for the Plan for the current plan year, or, if earlier, the date
Sub-Section 7(a)(iii) or Sub-Section 7(a)(iv) applies to the Plan:
(1) The adjusted funding target attainment percentage of the Plan for the current plan year is
presumed to be the adjusted funding target attainment percentage in effect on the last day of
the preceding plan year; and
57
GENERAL PROVISIONS
(2) The first day of the current plan year is a section 436 measurement date.
(iii)Presumption of Underfunding Beginning First Day of 4th Month. If the Plans enrolled actuary has not
issued a certification of the adjusted funding target attainment percentage for the plan year before the first
day of the 4th month of the plan year and the Plans adjusted funding target attainment percentage for the
preceding plan year was either at least 60 percent but less than 70 percent or at least 80 percent but less than
90 percent, or is described in 1.436-1(h)(2)(ii) of the Treasury Regulations, then, commencing on the first
day of the 4th month of the current plan year and continuing until the plans enrolled actuary issues a
certification of the adjusted funding target attainment percentage for the Plan for the current plan year, or, if
earlier, the date Sub-Section 7(a)(iv) applies to the Plan:
(1) The adjusted funding target attainment percentage of the Plan for the current plan year is
presumed to be the Plans adjusted funding target attainment percentage for the preceding plan
year reduced by 10 percentage points; and
(2) The first day of the 4th month of the current plan year is a section 436 measurement date.
(iv) Presumption of Underfunding On and After First Day of 10th Month. If the Plans enrolled actuary has not
issued a certification of the adjusted funding target attainment percentage for the plan year before the first
day of the 10th month of the plan year (or if the plans enrolled actuary has issued a range certification for
the plan year pursuant to 1.436-1(h)(4)(ii) of the Treasury Regulations but has not issued a certification of
the specific adjusted funding target attainment percentage for the Plan by the last day of the plan year), then,
commencing on the first day of the 10th month of the current plan year and continuing through the end of
the plan year:
(1) The adjusted funding target attainment percentage of the Plan for the current plan year is
presumed to be less than 60 percent; and
(2) The first day of the 10th month of the current plan year is a section 436 measurement date.
(b) New Plans, Plan Termination, Certain Frozen Plans, and Other Special Rules.
(i) First 5 Plan Years. The limitations in Sub-Section 1(b), Sub-Section 2(b), and Sub-Section 2(c) do not apply
to a new plan for the first 5 plan years of the plan, determined under the rules of 436(i) of the Internal
Revenue Code and 1.436-1(a)(3)(i) of the Treasury Regulations.
(ii) Plan Termination. The limitations on prohibited payments in Sub-Section 1(a), Sub-Section 2(a), and Sub-
Section 3 do not apply to prohibited payments that are made to carry out the termination of the Plan in
accordance with applicable law. Any other limitations under this Section of the Plan do not cease to apply
as a result of termination of the Plan.
(iii) Exception to Limitations on Prohibited Payments Under Certain Frozen Plans. The limitations on prohibited
payments set forth in Sub-Sections 1(a), 2(a), and 3 do not apply for a plan year if the terms of the Plan, as
in effect for the period beginning on September 1, 2005, and continuing through the end of the plan year,
provide for no benefit accruals with respect to any participants. This Sub-Section 7(b)(iii) shall cease to
apply as of the date any benefits accrue under the plan or the date on which a plan amendment that increases
benefits takes effect.
(iv) Special Rules Relating to Unpredictable Contingent Event Benefits and Plan Amendments Increasing
Benefit Liability. During any period in which none of the presumptions under Sub-Section 7(a) apply to the
Plan and the Plans enrolled actuary has not yet issued a certification of the Plans adjusted funding target
attainment percentage for the plan year, the limitations under Sub-Section 1(b) and Sub-Section 2(b) shall
be based on the inclusive presumed adjusted funding target attainment percentage for the Plan, calculated in
accordance with the rules of 1.436-1(g)(2)(iii) of the Treasury Regulations.
(c) Special Rules Under PRA 2010.
(i) Payments Under Social Security Leveling Options. For purposes of determining whether the limitations
under Sub-Section 1(a) or 2(a) apply to payments under a social security leveling option, within the
meaning of 436(j)(3)(C)(i) of the Internal Revenue Code, the adjusted funding target attainment
percentage for a plan year shall be determined in accordance with the Special Rule for Certain Years
under 436(j)(3) of the Internal Revenue Code and any Treasury Regulations or other published guidance
thereunder issued by the Internal Revenue Service.
(ii) Limitation on Benefit Accruals. For purposes of determining whether the accrual limitation under Sub-
Section 2(c) applies to the Plan, the adjusted funding target attainment percentage for a plan year shall be
determined in accordance with the Special Rule for Certain Years under 436(j)(3) of the Internal
Revenue Code (except as provided under section 203(b) of the Preservation of Access to Care for Medicare
Beneficiaries and Pension Relief Act of 2010, if applicable).
58
GENERAL PROVISIONS
(d) Interpretation of Provisions. The limitations imposed by this Section of the Plan shall be interpreted and
administered in accordance with 436 of the Internal Revenue Code and 1.436-1 of the Treasury Regulations.
(8) Definitions. The definitions in the following Treasury Regulations apply for purposes of Sub-Sections 1 through 7:
1.436-1(j)(1) defining adjusted funding target attainment percentage; 1.436-1(j)(2) defining annuity starting date;
1.436-1(j)(6) defining prohibited payment; 1.436-1(j)(8) defining section 436 measurement date; and 1.436-
1(j)(9) defining an unpredictable contingent event and an unpredictable contingent event benefit.
(9) Effective Date. The rules in Sub-Sections 1 through 8 are effective for plan years beginning after December 31, 2007.
(10) Lump-sum payments of $5,000 or less are not subject to these funding-based limitations on accelerated forms of
distribution.
59
EXHIBIT A
EXHIBIT A
Prior to the November 2003 Merger
Covered Groups Under the United States Steel Corporation Plan for
Non-Union Employee Pension Benefits (Revision of 1998)
1/
The term active used in this exhibit includes active employees at sold locations.
2/
Includes rule parts IV-A through IV-F, IV-G, IV-G(A), IV-G(B), IV-G(D), IV-G(OBL), IV-G(R), IV-H, IV-Transtar, and IV-LTV.
3/
Such employees and retirees participated in the United States Steel Corporation Plan for Employee Pension Benefits (Revision of 1950) with respect to
their Final Earnings benefit.
60
EXHIBIT B
EXHIBIT B
Prior to the November 2003 Merger
Covered Groups Under the United States Steel Corporation Plan for
Employee Pension Benefits (Revision of 1950)
1/
The term active used in this exhibit includes active employees at sold locations.
2/
Union employees and retirees who have not accrued Career Earnings benefit participate in this Plan with respect to their Final Earnings benefit and (prior
to the merger) participated in the United States Steel Corporation Plan for Non-Union Employee Pension Benefits (Revision of 1998) with respect to
their Career Earnings benefit.
3/
Excludes non-union employees and retirees who have accrued Career Earnings benefits under the contributory pension rules. The Final Earnings and
Career Earnings benefits for such employees and retirees were provided (prior to the merger) under the United States Steel Corporation Plan for Non-
Union Employee Pension Benefits (Revision of 1998).
4/
Includes rule parts IV-A through IV-F, IV-G, IV-G(A), IV-G(B), IV-G(D), IV-G(OBL), IV-G(R), IV-H, IV-Transtar, and IV-LTV.
61
NOTES
62
NOTES
63
NOTES
64