Free Declaration - District Court of Arizona - Arizona

Exhibit
Case 2:O4—cv—OO424—ROS Document 191-21 Filed O7/O1/2006 Page1 0f3

@IIiedSignal Memorandum
A E R O S P A C E
Date: October 23, 1995
To: Ali ?}ioenix and Tempe Aerospace Empioyees ·
From: Mex Axbolida, Acting Director of Human Resources, AES Tempe
Chuck Foster, Director of Human Resources. MS&S
Mark Nicholis, Director of Human Resources, MS&S
Don Shaw, V.P, of Human Resources, Engines
Subject: Secured Beneiit Account
We’d like to bring you up to date on the process now underway to communicate information about the Secured
Benefit Pian, sometimes referred to as the SBA- This benefit effects oniy individuals who were Garrett
employees prior to 1984. Even if you ci»on’t have an SBA, we realize you may he hearing about the SBA from
your coworkers and want to snare with everyone how we are responding to qeestions and concerns-
In September, at series of meetings were held for Engines employees to explain the Secured Benefit Plan and
clear up misconceptions that seem to have developed over time. In those meetings, employees raised many
additional questions and concerns —— which clearly indicated that we need to do as better job of explaining this
cornpiex benefit to Secured Benefit Plz-in participants.
At {he suggession of an emp§oyee, we formed a smali focus group of concerned employees from a wide variety "
or areas. This focus group met weekjy during October to ask probing questions about the SBA. express their
views on the subject, and recommend ways to explain the SBA more efiectively.
We are now working on recosn.rner1dzitions,s0me suggested by the focus group, that respond to your questions
and concerns. We`H keep you informed about any developments as they occur,
At this point in aime, it`; clear inet most ofthe confiision on this topic is related to the SBA’s link to the
retirement benefit. The Secured Benefit Plan is now, and has aiways been, considerm par: ofthe tonal
retirement benefit. The method of calculating the retirement benefit, and speciticaily the formuka for the SBA
offset, has not changed since January 1, 1984. There have been at numiaer of cornrmmications over the years
about the SBA offset and its impact on the retirement benefit. In responding to the focus group’s questions,
we’ve done research on this subject and found the foliowing examples of prior communication.
• A 1967 brochure for Garrett employees explains the Retirement and Severance Program. Page ll of this
brochure explains Retirement Pier: benefits but states "the following schedules of benefits assume that you -
have made no withdrawals from your Severance Accounts and wiil elect to transfer atl of these times to
Retirement?
• in August 1978. all employees received an updated “Retircment and Scverance" izoolclet which explained
ine integration of the two pians and devoted four pages to questions and answers on severance.
• In Jzmuarjv EQS4, empioyees received at ietter and brochures explaining the new Signal Companies
Retirement Plan. Tnen, in rnidw 1984, employees received zi 26~pegc description of the new Signal Plan,
which on page 5, answered questions regarding she Garrett Secured Benefit Account.
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. 19383
Case 2:04—cv—00424—ROS Document 191 -2 Filed 07/01 /2006 Page"yY>qQ’->

• A personaiized example of we integration of retirement benefits and the Benefit Account was
presented in the East Ganett Personal Benefits Statement for the year ending §9S5, mailed to cmpioyees in
the Spring of 1986.
• in §991. former Gazven empioyees received an"AHiedSig1ai Secured Benefit Plan" booid-ea which
described the Signal Retirement Pien offset on page “?.
• in 1992, an Engines Division employee handbook described benefits, and explained the integration of the
Seeuxed Benefit Plan with the Signal Retirement Plan,
While we’i·e working on a response to empioyee eoncems about the SBA, we invite you to learn more
about your retirement benefit. Cai] the Retiree Benefits Administ1·ation{RBA) at l—300-QGRETIRE or
1-800-526-0700 during business hours Monday through Thursday to request a pension estimate. Rmen you
hear the recorded message, foliow the instructions to request information concerning your pension; you will be
connected with an RBA representative, The l~8€}O—9=5RE'TIRE number appears to have too many digits, but
you do need to dial ai`! the digits to reach the RBA.
Within the next few weeks, we wiki provide fwther information to answer employee questions about the SBA. ‘
CON FIDENTIAL
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