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From the Boeing Company Retirement Plan Document Effective Jan 1, 1996
Including amendments thru # 22
1.19 Credited Service means all service accumulated by reason of the Eligible Employee's employment by the Company as an Active Participant prior to the Employee's Retirement Date. Credited Service for each Participant shall be recorded in Hours of Service. In addition, Credited Service shall be recorded in years and thousandths of years (rounded to the nearest one-thousandth), and each Participant shall be credited for each Plan Year with a fraction of a year, not exceeding one, determined by dividing the Participant's Hours of Service during the Plan Year by 2,000. An Active Participant may continue to accrue Credited Service during a Plan Year even though the Employee is credited with less than 1,000 Hours of Service during such year.
Employees on the Active Payroll on and after January 1, 1987, will have Credited Service increased by 1/3 of a Plan Year upon an Employee's completion of 20 Years of Service, by 1/3 of a Plan Year upon an Employee's completion of 2l Years of Service, and the remainder (to a total of one Plan Year over the three year period) upon completion of 22 Years of Service.
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1.26 ERISA means the Employee Retirement Income Security Act of 1974, as amended.
1.27 Final Average Monthly Earnings means the average of the Basic Annual Compensation Rates on the first day of each calendar month during the 60 consecutive calendar months out of the last 120 such months, in each of Which the Employee performed at least one Hour of Service, which produce the highest such average divided by 12. If the Employee has fewer than 60 months of such service then Final Average Monthly Earnings shall mean the aggregate amount of Basic Annual Compensation Rates divided by the actual number of months divided by 12. If the Employee retires from the Active Payroll of the Company, the Employee will be deemed to have performed service for the Company on his or her Retirement Date at the Basic Annual Compensation Rate in effect immediately preceding retirement. The result of this computation will be added to the total amount of Productivity Payment Plan payments or Lump Sum Payment Plan awards which the Employee was entitled to receive during the five years immediately preceding the Employee's Retirement Date divided by 60.
(a) each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Company, including compensated bonus hours on third shift;
(b) each hour for which an Employee is paid, or entitled to payment, by the Company on account of a period of time during which no duties are performed (whether or not the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence; provided, however, that an Employee shall not be credited with more than 501 Hours of Service under this sentence for any continuous period during which he or she performs no duties for the Company. Notwithstanding the preceding provisions of this paragraph, no credit will be given:
(1) for an Hour of Service for which the individual is directly or indirectly paid, or entitled to payment, on account of a period during which no duties are performed if such payment is made or due under a plan maintained solely for the purpose of complying with applicable workers'
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