Citi Benefits Handbook
Appendix B — Company Transition Contributions
A Company Transition Contribution will be made for a Plan Year and credited to the Company Transition Contribution Account for each participant who:
- Is employed by the Company or is on an authorized leave of absence on the last day of such Plan Year (but is not on salary continuation or other form of severance pay);
- Has been continuously employed by the Company on and after December 31, 2006, was an eligible participant in The Citigroup Pension Plan as of December 31, 2007, and had his accrued benefit under such plan frozen as of such date; and
- Is not a Legacy Pension Participant, as defined in the Plan.
Defined terms not provided in this Appendix B shall have the definitions found in the Plan.
Participants eligible for an annual Company Transition Contribution received a personalized report in 2007 showing how the Company Transition Contribution percentage, if any, was calculated. The following is an explanation of the calculation.
For eligible participants, a Company Transition Contribution equals the following percentage (if any) of the participant's Compensation for such Plan Year – the excess of: (1) the Legacy Contribution Percentage, determined as described below, over (2)(i) for a participant with 2006 Qualifying Compensation of $100,000 or less, eight percent (8%), and (ii) for a participant with 2006 Qualifying Compensation of more than $100,000 or who was a 2006 Smith Barney Financial Advisor, six percent (6%).
A participant's Legacy Contribution Percentage, if any, is the sum of the following two percentages:
1. For a participant with 2006 Qualifying Compensation of $50,000 or less, six percent (6%); for a participant with 2006 Qualifying Compensation between $50,001 and $100,000 (inclusive), the percentage obtained by dividing $3,000 by the amount of 2006 Qualifying Compensation; and for a participant with 2006 Qualifying Compensation in excess of $100,000, zero percent; provided, however, that for Smith Barney Financial Advisors with 2006 Qualifying Compensation of $50,000 or less, the percentage will be three percent (3%); for a participant with 2006 Qualifying Compensation between $50,001 and $100,000 (inclusive), the percentage obtained by dividing $1,500 by the amount of 2006 Qualifying Compensation; and
2. The percentage from the chart below based on the participant's projected attained age and completed Years of Credited Service (as determined in accordance with the terms of The Citigroup Pension Plan) as of December 31, 2007:
A participant who is otherwise eligible for a Company Transition Contribution, but who is a rehired participant, will not be eligible for a Company Transition Contribution on and after the date of re-hire.
If you are otherwise eligible for a Company Transition Contribution but are not employed by the Company on December 31 of the current year due to your death, disability, termination of employment after attaining age 55 or because of your involuntary termination of employment (other than for gross misconduct or substantial failure to perform your duties), you may still receive a Company Transition Contribution for that year based on your eligible pay up to the date your employment was terminated.