Professional Documents
Culture Documents
Dtts - Pension - Plan - SPD - October - 2010 - 978499
Dtts - Pension - Plan - SPD - October - 2010 - 978499
_______________________________________________________________________________
Pension Plan Page 1 of 36 Released: October 2010
Automatic Preretirement Death Benefits ............................................................................ 19
Optional Preretirement Death Benefit Coverage .................................................................. 20
Cost of Coverage ............................................................................................................ 21
Designation of Beneficiary – Preretirement Death Benefits ................................................... 21
Circumstances That May Affect Your Benefit .......................................................................... 22
If You Leave the DTTS Entities Before Retirement ............................................................... 22
If Your Service Is Interrupted ........................................................................................... 22
If You Continue To Work After Normal Retirement ............................................................... 24
If You Return To Work After You Began Receiving Payments Under The Plan .......................... 24
If You Become a Director ................................................................................................. 25
If You Become Disabled ................................................................................................... 25
Other Important Information ............................................................................................... 25
Summary Plan Description ............................................................................................... 25
Claims Procedures .......................................................................................................... 26
Current Personal Information Required .............................................................................. 27
Your Rights Under ERISA ................................................................................................. 27
Rights to Terminate or Amend .......................................................................................... 29
Disposition of Plan Assets Following Termination ................................................................. 29
Plan Termination Insurance .............................................................................................. 29
Not a Contract of Employment .......................................................................................... 30
Misstatement of Fact ....................................................................................................... 30
Return of Contributions.................................................................................................... 30
Alienation of Benefits....................................................................................................... 30
Legal Limitations............................................................................................................. 30
Top-Heavy Provisions ...................................................................................................... 31
Plan Administration ......................................................................................................... 31
Appendix A – Actuarial Assumptions and Conversion Factors for Payment Forms ........................ 32
_______________________________________________________________________________
Pension Plan Page 2 of 36 Released: October 2010
Introduction
The DTTS Pension Plan (the “Plan”) was established effective as of June 1, 2008 (the “Effective
Date”) by Deloitte Touche Tohmatsu Services, Inc. (“DTTS”) through the spinoff of certain assets
and liabilities of the Deloitte Pension Plan as of such date.
All assets and liabilities attributable to the accrued benefits of DTTS employees participating in the
Deloitte Pension Plan as of May 31, 2008 were transferred to this Plan in accordance with Internal
Revenue Service requirements. Such individuals became Participants in this Plan on the Effective
Date.
The benefits as described in this SPD apply to Eligible Employees (including Directors) of DTTS or
its affiliates which have adopted the Plan. Your benefits will be determined in accordance with the
terms of the Plan at the time of your severance from employment.
If your accrued benefit was transferred from the Deloitte Pension Plan or the Deloitte Pension Plan
for Partners, Principals and Directors (“Deloitte Partner Plan”), you can find information about the
Career Average formula - the formula in effect under the Deloitte Pension Plan on December 31,
1996 (“Deloitte Career Average formula”), the former Deloitte Haskins & Sells Employees’ Pension
Plan, the former Touche Ross Retirement Plan, the Deloitte Pension Plan, or the Deloitte Partner
Plan in your prior SPD.
References in this SPD to “Participating Employer” mean DTTS and its affiliates which have adopted
the Plan. References to “DTTS Entities” mean DTTS and its affiliates which are treated as a single
employer under section 414 of the Internal Revenue Code (the “Code”). References in this SPD to
“Deloitte” refer to Deloitte LLP, a Delaware limited liability partnership.
While every effort has been made to make the description in this booklet as accurate as possible,
this SPD could not include every relevant detail of the Plan. This Summary is not a Plan document.
In the event there is any difference between the Summary presented herein and the actual
provisions of the Plan document, the Plan document will control in all cases. Your right to any
benefits under the Plan depends on the actual facts and terms and conditions of the Plan
document, and no rights accrue by reason of, or arising out of, any statement shown in or omitted
from this Summary.
DTTS reserves the right to amend, modify, or terminate the Plan at any time and for any reason.
This Summary is not intended to nor does it create a contract of employment with the DTTS
Entities.
To help you understand the concepts used throughout this SPD, a Highlights of the Plan section has
been provided, below. Words or phrases that are defined in this SPD are capitalized each time
they appear.
Please read this SPD carefully. If you have any questions, or if you would like to review the official
Plan document, please contact the Call Center at 1-800-DELOITTE (1-800-335-6488).
_______________________________________________________________________________
Pension Plan Page 3 of 36 Released: October 2010
Highlights of the Plan
Cash Balance Benefit
The Plan is a defined benefit plan that uses a Cash Balance formula. Under the Cash Balance
formula, a hypothetical Cash Balance Account is established for each Participant. The value of your
Cash Balance Account increases each year with the addition of (i) a Service Credit for Participants
who meet the Plan’s conditions for accruing benefits and (ii) an Interest Credit for all Participants
with account balances.
Participation
You begin to earn benefits under the Plan at the first Plan Entry Date after you complete one year
of Service, provided you are age 21 or older and an Eligible Employee. See the section entitled
Eligibility and Participation, below, for information regarding Plan participation requirements.
Service
Generally, Service is the period during which you are employed by, or in the service of, the DTTS
Entities. Service is computed in terms of completed years and days (i.e., 365 days of Service
equals one year of Service). You may also receive Service for certain periods that you are not
employed by the DTTS Entities, as further described in this SPD. Service determines when you
begin to participate in the Plan and your entitlement to certain benefits under the Plan, e.g., when
you become Vested or eligible for Early Retirement, but not the dollar amount of your benefit.
If you were an employee or partner of Deloitte LLP or its “affiliates” (as defined in the Deloitte
Pension Plan) and you become employed (or reemployed) by a Participating Employer, your prior
service with Deloitte LLP or its affiliates will be taken into account for certain Plan purposes to the
same extent it would have been taken into account had such employment been as an Eligible
Employee of a DTTS Entity.
Credited Service is a separate plan term that determines the dollar amount of your benefit. Unlike
Service, you do not receive Credited Service until you begin to participate in the Plan (or, in certain
cases, when you began participation in the Deloitte Pension Plan or Deloitte Partner Plan).
Vesting/Vested
Generally, you are Vested in your benefit after three years of Service or when you reach age 62
while actively employed by a DTTS Entity. When you become Vested, you have a right to your
benefit even if you leave the DTTS Entity before you retire.
_______________________________________________________________________________
Pension Plan Page 4 of 36 Released: October 2010
Normal Retirement Date
The Normal Retirement Date under the Plan is the first day of the month coincident with or next
following the date on which you reach age 62, which is the Normal Retirement Age under the Plan.
At that time, you are eligible to retire and collect retirement benefits under the Plan.
Early Retirement
If you prefer to retire prior to your Normal Retirement Date, you may retire as early as age 50 with
10 years of Service or age 55 with 5 years of Service and begin to collect retirement benefits under
the Plan.
If you are married on your Benefit Commencement Date, you will automatically receive a Qualified
Joint and 50% Survivor Annuity with your spouse (to whom you are legally married) as beneficiary.
Your benefit will be paid in the automatic form of payment, unless you elect an optional form of
payment (with notarized spousal consent, if applicable) as more fully described in this SPD.
If you are unmarried at the time of your death, the death benefit will be paid in a single lump sum
to your estate or your designated beneficiary, as soon as practicable after your death.
If you are married at the time of your death, your spouse (to whom you were legally married when
you died) will receive a Life Only Annuity.
Optional Coverage
Participants who are eligible for Early or Normal Retirement have additional options. Once you
attain either (i) age 55 with at least 5 years of Service, (ii) age 50 with at least 10 years of
Service, or (iii) age 62 while employed by the DTTS Entities, you may waive your automatic
preretirement death benefit and choose an optional form of coverage. Although you may file your
election of an optional death benefit up to a year before you are eligible to waive the automatic
_______________________________________________________________________________
Pension Plan Page 5 of 36 Released: October 2010
benefit, any such election will not be effective until you attain the minimum required age and/or
Service. Your right to waive the automatic preretirement death benefit expires at the earlier of
your death or your Benefit Commencement Date.
Additional details regarding the automatic and optional preretirement death benefit coverage are
described below (see Preretirement Death Benefits)
Differences in how the automatic and optional preretirement death benefits are calculated may
make it advantageous to waive the automatic benefit, even if you want your spouse to remain your
beneficiary. You may visit DeloitteNet or contact the Retirement Committee for further information
regarding optional preretirement death benefit coverage.
Plan Cost
The Participating Employers pay the full cost of the Plans; Participants are neither required nor
permitted to make contributions.
PBGC Insurance
Your benefit is insured by the Pension Benefit Guaranty Corporation up to the limits established
under applicable law. Visit www.pbgc.gov for further information regarding these limits.
Taxation
Generally, benefits are taxed when received unless they are rolled over. Under the Plans, only
lump sum payments may be “rolled over” to an Individual Retirement Account (“IRA”) or another
eligible employer plan. Prior to receipt of your benefits, you will receive a special tax notice that
explains the tax consequences of your distributions.
If you were an Eligible Employee and an “active participant” under the Deloitte Pension Plan or
Deloitte Partner Plan on May 31, 2008, you automatically became a Participant in the Plan as of
June 1, 2008.
In the event that you were an “eligible employee” or “eligible partner” and a “participant” under
the Deloitte Pension Plan or Deloitte Partner Plan, and you terminate employment or partner
service with Deloitte or one of its affiliates (as defined in the Deloitte Pension Plan or Deloitte
Partner Plan) and immediately thereafter become an Eligible Employee, you will become a
Participant in this Plan as of the date on which you become an Eligible Employee.
In the event that you were an “eligible employee” or “eligible partner” but not yet a “participant”
under the Deloitte Pension Plan or Deloitte Partner Plan, and you terminate employment or partner
service with Deloitte or one of its affiliates and immediately thereafter become an Eligible
_______________________________________________________________________________
Pension Plan Page 6 of 36 Released: October 2010
Employee, you will become a Participant in this Plan on the first Plan Entry Date coinciding with or
immediately following the day you complete one year of Service (taking into account your service
with your previous employer) and attain age 21.
Who Is Eligible
You are an Eligible Employee if you are a salaried, hourly or temporary employee; an intern,
cooperative plan student; a faculty associate of a Participating Employer; or a Director and are not:
A non-resident alien,
A leased employee,
A person performing services pursuant to an oral or written agreement classifying
you as an independent contractor or containing an acknowledgement of your
ineligibility for Plan participation (regardless of whether such person is at any time
determined to be an employee),
An employee whose employment is covered by a collective bargaining agreement
that does not provide for participation in the Plan, or
An employee who is otherwise excluded from participation pursuant to your
Participating Employer’s resolutions adopting the Plan (with the consent of DTTS).
If you were a Participant in the Deloitte Pension Plan or Deloitte Partner Plan who terminated
employment or partner service with Deloitte or its affiliates and immediately thereafter became an
Eligible Employee in this Plan, your entire accrued benefit under the applicable Deloitte plan will be
transferred to this Plan. However, in no event will your benefit under this Plan be more than if
your entire benefit had been earned under the applicable Deloitte plan.
If after you have earned a benefit under this Plan, you terminate employment with a Participating
Employer and immediately thereafter become an “eligible employee” or “eligible partner” under the
Deloitte Pension Plan or Deloitte Partner Plan, your entire accrued benefit under the Plan will be
transferred to the applicable Deloitte Plan after you commence participation in that plan.
If your accrued benefit is transferred as described above, then your benefit in the transferee plan
will be no less than your benefit under this Plan as of the date of transfer, and this Plan will have
no further obligation to provide you benefits.
_______________________________________________________________________________
Pension Plan Page 7 of 36 Released: October 2010
When Participation Ends
Your active Plan participation ends when, for any reason, you are no longer employed by a
Participating Employer, or when you are otherwise no longer an Eligible Employee. Once your
active participation ends, you are no longer entitled to additional Service Credits under the Cash
Balance formula or to benefit accrual service under the Deloitte Career Average formula. Interest
Credits continue so long as you have a Cash Balance Account.
Plan Cost
The Participating Employers make all required contributions to provide benefits under the Plan. You
do not make any contributions to the Plan.
Your Credited Service determines the amount of your retirement benefit (see Credited Service,
below).
Service
In general, your Service is the period of your employment with the DTTS Entities. It begins on your
first day of work. It will end on your last day of employment (last day worked), which is defined as
the earlier of:
If you stop working for any reason, but return to work within 12 months, you earn
Service for the period during which you were absent.
You will earn Service during a military leave to the extent prescribed by law.
You will earn Service while you work for any of the DTTS Entities.
You will earn Service during a period of assignment in a foreign office with a member
firm of Deloitte Touche Tohmatsu International undertaken prior to your Benefit
Commencement Date at the request of one of the DTTS Entities, provided you return
to Service for one of the DTTS Entities at the end of such assignment.
You will earn Service during a period of Permanent and Total Disability (see If You
Become Disabled, below) ending on the earlier of (i) the date you attain age 62, (ii)
your Benefit Commencement Date, or (iii) your death.
If you were an employee or Partner of Deloitte LLP or its “affiliates” (as defined in the Deloitte
Pension Plan) and you became employed (or reemployed) by a Participating Employer, regardless
of whether your accrued benefit under the Deloitte Pension Plan is transferred to this Plan, then
any period of such employment or service with Deloitte LLP or its affiliates will generally be taken
into account for the purpose of determining whether and when you are eligible to participate in the
_______________________________________________________________________________
Pension Plan Page 8 of 36 Released: October 2010
Plan and your entitlement to certain benefits under the Plan (e.g., when you become Vested or
eligible for Early Retirement) to the same extent it would have been taken into account had such
employment been as an Eligible Employee of a DTTS Entity.
Credited Service
Credited Service begins with the Plan Entry Date on which you become a Plan Participant and
generally includes all Service after that date while you remain both a Participant and an Eligible
Employee. Generally, it does not include your period of employment before you enter the Plan or
any unpaid period of absence from employment. It ends on your last day worked.
You are not being paid by a Participating Employer, such as during an unpaid leave
of absence (in some cases, Credited Service can be earned during an unpaid period
of disability, as described in If You Become Disabled, below); or
You are not an Eligible Employee or are not a Participant in the Plan (for example,
prior to your Plan Entry Date).
If your employment is interrupted, your Service and Credited Service may be affected. Be sure to
read If Your Service Is Interrupted, below.
If you were previously a participant in either the Deloitte Pension Plan or Deloitte Partner Plan,
your Credited Service will be the sum of your credited service under such plans plus your Credited
Service under this Plan.
Vesting/Vested
Vesting means you have a nonforfeitable right to your benefit. If you leave the DTTS Entities for
any reason after you become Vested, you will retain the right to your Vested benefit, even if you
are not yet eligible to retire and commence benefits. If you leave the DTTS Entities before you
become Vested, you generally forfeit your right to that benefit.
For example, if you were first employed on October 22, 2008, you would become Vested if still
actively employed by the DTTS Entities on October 21, 2011 or your 62nd birthday, if earlier.
_______________________________________________________________________________
Pension Plan Page 9 of 36 Released: October 2010
If you are not grandfathered under the Deloitte Career Average formula, your benefit will be
calculated under the Plan’s Cash Balance formula only.
If you are grandfathered under the Deloitte Career Average formula, your benefit will be the
greater of:
Your benefit calculated under the Plan’s Cash Balance formula– see the section
called Your Benefit Under the Cash Balance Formula for details, or
Your benefit calculated under the Deloitte Career Average formula, plus any frozen
benefits earned as a participant in the former Deloitte Haskins & Sells Employees’
Pension Plan (as of June 3, 1989) or the former Touche Ross Retirement Plan (as of
August 31, 1989). Please refer to the applicable Deloitte Plan’s SPD for more
information about the Deloitte Career Average formula.
The monthly pension benefit payable to you under the Plan will be reduced by any
amount paid or payable to you on account of your participation under any other
qualified defined benefit plan maintained by a Participating Employer if the benefit
under such other plan would result in a duplication of pension benefits for the same
period of Service.
Please see the description of Credited Service, above, for more information.
Eligible Compensation
Eligible Compensation generally includes your salary, bonuses, overtime and other forms of extra
compensation paid by a Participating Employer while you are a Participant in the Plan and an
Eligible Employee that must be reported as wages on your Form W-2, plus any amounts you elect
to defer under the DTTS 401(k) Plan and any salary reduction contributions made to the Deloitte
LLP Flexible Spending Plan or Employees' Before-Tax Transportation Program. In the case of a
Director, Eligible Compensation also includes the age-based portion of the employer contributions
made on your behalf to the DTTS Profit Sharing Plan.
Eligible Compensation does not include, among other things, reimbursed expenses (including but
not limited to moving expenses, club dues, etc.), special foreign cost of living allowances,
severance compensation, and other special allowances as specified by the Retirement Committee.
Federal law limits the amount of compensation that can be considered under the Plan. Eligible
Compensation in excess of this limit is ignored in calculating your benefit. The limit for calendar
years 2008 through 2009 is shown in the following chart:
2008 2009
$230,000 $245,000
_______________________________________________________________________________
Pension Plan Page 10 of 36 Released: October 2010
The limit may increase in future years to reflect increases in the cost-of-living index. Note, if your
accrued benefit is transferred from a Deloitte plan to this Plan pursuant to the Transfer of Accrued
Benefit section, above, Eligible Compensation includes the “eligible compensation” under the
Deloitte Pension Plan or Deloitte Partner Plan during the Plan Year of the transfer.
Opening Balance
If your accrued benefit is transferred from a Deloitte plan to this Plan pursuant to the Transfer of
Accrued Benefit section, above, the Opening Balance of your Cash Balance Account will be equal to
your Cash Balance Account under the Deloitte Pension Plan or Deloitte Partner Plan that was
transferred to this Plan. In all other circumstances, the Opening Balance of your Cash Balance
Account will be zero.
Interest Credits
Your Cash Balance Account is increased by an Interest Credit at the end of each calendar year.
Your Interest Credit is applied to your balance before your Service Credit is added. Your Interest
Credit for each year is determined by multiplying your January 1 account balance for such year by
the annual rate of interest on 30-year U.S. Treasury Securities as published by the IRS in
December of the preceding calendar year. Interest Credits are applied to your balance until your
Benefit Commencement Date, regardless of whether you remain employed. In other words, your
Vested account balance continues to grow, even if you are no longer employed, until distribution of
your benefit commences.
For example, assume your January 1, 2009 account balance was $20,000. The 2009 Interest Credit
rate is 4.00%. Therefore, your 2009 Interest Credit applied on December 31, 2009 will equal $800
($20,000 x 4.00% = $800).
See If You Terminate Employment or Cease to be an Eligible Employee, below as to how Interest
Credits are calculated if you cease being an Eligible Employee.
Service Credits
At the end of each calendar year in which you are a Participant and an Eligible Employee, your
Cash Balance Account is credited with a dollar amount called a Service Credit. The amount of the
Service Credit each year equals a percentage of your Eligible Compensation for that year, based on
the sum of your age and years of Credited Service as of December 31 of that year. Partial years of
age and Credited Service are aggregated to form completed months.
For example, if you were first employed on March 3, 2009 as an Eligible Employee, your
participation would have begun on June 1, 2010 (the Plan Entry Date following your completion of
_______________________________________________________________________________
Pension Plan Page 11 of 36 Released: October 2010
one year of Service, providing that you were age 21 or older at that time). Therefore, on December
31, 2015, you would have completed five years and seven months of Credited Service. If you were
42 years old on December 31, 2015, the sum of your age and Credited Service would fall in the 40-
49 range and your Service Credit for 2015 would equal 4% of your Eligible Compensation for 2015.
Important: Your Service Credit for the calendar year in which you first become a Plan Participant
cannot be less than $2,500 unless your accrued benefit was transferred from a Deloitte plan to this
Plan pursuant to the Transfer of Accrued Benefit section, above, and your “entry date” under the
Deloitte plan occurred in a prior calendar year.
Generally, for the final calendar year during which you are a Participant and an Eligible Employee,
your age and Credited Service will be determined as of the date you cease to be an Eligible
Employee. See If You Sever Employment or Cease to be an Eligible Employee as to how Service
Credits are calculated if you cease being an Eligible Employee.
The following example assumes that on January 1, 2009 your Cash Balance Account was
$24,835.91 and that you terminated on March 15, 2009. You were 30 years old and had five years
and seven months of Credited Service on March 31, 2009 and your Eligible Compensation on March
15, 2009 was $17,500. Finally, applying the Interest Credit rate in effect for 2009 of 4.00%, your
Cash Balance Account would grow as follows:
Following March 31, 2009, your account will grow with Interest Credits only. Again, using the
Interest Credit rate in effect for 2009 of 4.00%, your Cash Balance Account would grow to
12/31/2009 as follows:
If your Benefit Commencement Date occurs during a calendar year, you will receive a prorated
amount of Interest Credits for the months in such year preceding your Benefit Commencement
Date.
If you terminate employment and your benefit is grandfathered under the Deloitte Career Average
formula, and you do not commence payment prior to age 62, such benefit will be actuarially
increased to reflect the delay in commencement of distribution from your Normal Retirement Date
(age 62) through the earlier of (i) the date you elect to commence distribution or (ii) age 65.
If you continue working past your Normal Retirement Date, your delayed retirement date is the
first day of the month coinciding with or next following your actual retirement. You will continue to
accrue retirement benefits until you retire and the benefit amount payable will generally reflect
Eligible Compensation, Service Credits and Interest Credits that you earn beyond your 62nd
birthday.
Early Retirement
If you attain age 50 and complete ten years of Service or attain age 55 and complete five years of
Service you may terminate employment and begin receiving a benefit from the Plan as early as the
first day of the month following your Early Retirement.
Monthly payments can begin immediately or they can be deferred until not later than age 65. Your
monthly Normal Retirement benefit will be actuarially reduced if you elect to receive your benefit
before age 62.
Even if you leave the DTTS Entities before you attain the minimum age for Early Retirement that
corresponds to your Service, you can elect to begin receiving a reduced benefit when you reach
age 50 (if you have at least ten years of Service) or age 55 (if you have at least five but fewer than
_______________________________________________________________________________
Pension Plan Page 13 of 36 Released: October 2010
ten years of Service), or you can wait to begin an unreduced benefit after age 62. You may not
defer payment beyond age 65.
Delayed Retirement
If you continue to work for the DTTS Entities after your Normal Retirement Date, you will not begin
receiving your Plan benefit until you terminate employment. Your benefit will be actuarially
adjusted to reflect the delay in payment beyond the April 1 of the calendar year following the
calendar year you turn age 70 ½, in accordance with Internal Revenue Service regulations. Special
rules will apply to individuals who are 5% owners of the DTTS Entities, who by law are required to
begin receiving Plan benefits once they reach age 70 ½ even if they remain employed by the DTTS
Entities.
Under the Qualified Joint and 50% Surviving Spouse Annuity, the monthly payment you receive
during your lifetime is less than it would be under a Life Only Annuity to reflect the cost of possibly
providing payments after your death. The amount of reduction in your benefit depends on your age
and the age of your spouse. See Appendix A – Actuarial Assumptions and Conversion Factors for
Payment Forms for a description of the reduction.
If your spouse dies before your benefit payments have begun, this payment method is
automatically cancelled. You will receive your Plan benefits in the Life Only Annuity form described
_______________________________________________________________________________
Pension Plan Page 14 of 36 Released: October 2010
above, unless you elect one of the optional methods of payment prior to retirement. If your spouse
dies after you have begun to receive benefit payments, you will continue to receive your actuarially
reduced payment amount for your lifetime and payments will cease upon your death.
Your payments under this option will be less than under a Life Only Annuity because payments are
guaranteed for a specified period. The monthly payments are subject to a larger reduction if you
elect a greater number of guaranteed payments. See Appendix A – Actuarial Assumptions and
Conversion Factors for Payment Forms for a description of the reduction.
Your payments under this option will be less than under a Joint and Survivor Annuity because
payments are guaranteed for a specified period. The monthly payments during your lifetime are
subject to a larger reduction if you elect that a larger percentage continue as a monthly payment
to your beneficiary after your death or if you elect a greater number of guaranteed payments. See
Appendix A – Actuarial Assumptions and Conversion Factors for Payment Forms for a description of
the reduction.
Please note that there are circumstances where you may not choose the 75% and 100% Joint and
Survivor Annuity options if you are designating a beneficiary who is not your spouse.
Please note: Federal law requires that lump sum distributions be restricted when a pension plan’s
funding status drops below a specified level. These rules are designed to ensure that there are
sufficient assets to pay benefits for all participants. If your Benefit Commencement Date occurs
during such a restricted period, you will be notified of the benefit payment options available to you.
If the present value of your Vested benefit is small enough to be distributed automatically as
described above, and the amount of the cash-out is more than $1,000 (but not more than the
cash-out limit of $5,000), you must choose whether to have the distribution paid to you in cash or
transferred to another eligible employer plan (including an IRA) you select. Otherwise, Federal law
will require the Plan to roll the distribution into an IRA chosen by the Retirement Committee for all
“default” rollovers. These default rollover rules do not apply to surviving spouses and alternate
payees under a “qualified domestic relations order.”
If the present value of your Vested benefit is $1,000 or less and you fail to affirmatively elect either
a cash distribution or a direct rollover, the Plan will make a cash payment to you as soon as
practicable after you terminate employment.
_______________________________________________________________________________
Pension Plan Page 16 of 36 Released: October 2010
The IRA chosen by the Retirement Committee for all default rollovers is designed to preserve
principal and provide a reasonable rate of return consistent with liquidity, as required by
Department of Labor regulations.
You will be responsible for paying all fees and expenses assessed against your default IRA rollover
account. However, you may transfer the IRA funds, at any time and without cost, to another IRA
or eligible employer plan that will accept such amounts.
Please visit DeloitteNet or contact the Call Center at 1-800-DELOITTE (1-800-335-6488) for more
information regarding these default rollover rules.
If you elect a Life and Term Certain Annuity (as described in Optional Methods of Payment, above),
you may designate a beneficiary(ies) to receive any guaranteed monthly payments remaining after
your death.
If you elect a Joint and Survivor Annuity or a Joint and Survivor Term Certain Annuity (as
described in Optional Methods of Payment, above), you will designate a primary beneficiary who
will, if he or she survives you, receive monthly payments after your death for the remainder of his
or her life. If you elect a Joint and Survivor Term Certain Annuity, you may also designate an
additional beneficiary(ies) who will receive any guaranteed monthly payments remaining after your
death in the event that both you and your primary beneficiary die before all guaranteed monthly
payments have been paid.
The beneficiary designation you make with respect to any guaranteed monthly payments remaining
after your death in the case of a Life and Term Certain Annuity or after the death of both you and
your designated primary beneficiary in the case of a Joint and Survivor Term Certain Annuity (as
described in Optional Methods of Payment, above) may be made by you among several
beneficiaries in a manner which you designate.
Any such beneficiary designation may be made to an entity, including the estate of a beneficiary to
whom such benefits commence before his or her death.
Such a beneficiary designation shall be deemed to be revoked upon your divorce (if your ex-spouse
is your named beneficiary) or upon your marriage if the Plan receives written evidence of such
divorce or marriage before benefits are paid.
_______________________________________________________________________________
Pension Plan Page 17 of 36 Released: October 2010
You may change or cancel your primary beneficiary designation (even your designation of a
primary beneficiary in the case of a Joint and Survivor Annuity or Joint and Survivor Term Certain
Annuity) at any time before your Benefit Commencement Date (subject to notarized spousal
consent). You may change your beneficiary designation with respect to any guaranteed monthly
payments remaining after your death in the case of a Life and Term Certain Annuity or after the
death of both you and your designated primary beneficiary in the case of a Joint and Survivor Term
Certain Annuity before or after your Benefit Commencement Date (subject to notarized spousal
consent).
After you receive this information, you may make a choice, or change it, at any time before your
payments begin (subject, if you are married, to your spouse's notarized consent). Once your
payments have begun, you may not change your method of payment.
If you receive your benefit in a lump sum, you may delay paying taxes if your payment is
processed as a direct rollover distribution made payable to an eligible employer plan or a traditional
IRA. If you do not elect a direct rollover made payable to a traditional IRA or another eligible
employer plan (including a Section 401(a) plan, a Section 403(b) plan and a governmental Section
457(b) plan), the Plan Trustee is required to withhold 20% of your distribution.
If you receive payment of your benefits in the form of an annuity, you may elect not to have
Federal taxes withheld.
Beneficiaries may defer taxation by rolling over distributions of the Participant’s account into an
IRA. Beneficiaries who are surviving spouses of the Participant may be able to roll over
distributions into their own accounts in another employer’s qualified plan, a Section 403(b) plan or
a Section 457(b) plan.
Since tax laws are complicated and change from time to time, you or your beneficiary should
consult a personal tax advisor before requesting or receiving a Plan distribution.
_______________________________________________________________________________
Pension Plan Page 18 of 36 Released: October 2010
Preretirement Death Benefits
Automatic Preretirement Death Benefits
If You Are Not Married and You Die Before Your Benefits Commence
If you are not married when you die, the Plan provides for automatic payment of your Vested
benefit to your beneficiary. Your beneficiary will receive a single lump sum payment as soon as
practicable following the Retirement Committee’s receipt of notice of your death (unless you elect
optional preretirement death benefit coverage as described below).
If You Are Married and You Die Before Your Benefits Commence
The Plan provides automatic survivor coverage to your spouse if you are married when you die and
you have a Vested benefit under the Plan. Your spouse will automatically receive an annuity
payable for his or her lifetime (unless you elect optional preretirement death benefit coverage as
described below).
The value of your Cash Balance Account converted into a single life deferred annuity
payable over the lifetime of your spouse; or
_______________________________________________________________________________
Pension Plan Page 19 of 36 Released: October 2010
If you are grandfathered under the Deloitte Career Average formula, the payments
that your surviving spouse would receive as if your benefit, based upon the Deloitte
Career Average formula, commenced in the form of a Joint and 50% Survivor
Annuity on the date you would have attained Early Retirement (or such later date
elected by your spouse, as discussed below), had you survived, and you died
immediately after your first benefit payment.
If you die and you had completed at least 5 years of Service, your spouse may elect to commence
payment on the first of the month following the later of (i) your death or (ii) the date you would
have been eligible for Early Retirement, had you survived, and such payments will continue over
your spouse’s lifetime. If you die with a Vested benefit but less than 5 years of Service at the time
of your death, payments will commence on the date that would have been your Normal Retirement
Date had you survived. In either case, your spouse may delay commencement of payment to the
first day of any subsequent month but no later than the first of the month coincident with or next
following what would have been your 65th birthday.
Alternatively, your spouse may elect an immediate single lump sum payment in lieu
of the monthly annuity.
The value of your Cash Balance Account converted into a single life immediate
annuity payable over the lifetime of your spouse; or
If you are grandfathered under the Deloitte Career Average formula, the payments
that your surviving spouse would receive as if your benefit, based upon the Deloitte
Career Average formula, commenced in the form of a Joint and 100% Survivor
Annuity immediately prior to your death (or such later date elected by your spouse,
as discussed below).
Your spouse may elect to commence payment on the first of the month following your death and
such payments will continue over your spouse’s lifetime. Your spouse may delay commencement
of payment to the first day of any subsequent month but no later than the first of the month
coincident with or next following what would have been your 65th birthday.
Alternatively, your spouse may elect an immediate single lump sum payment in lieu
of the monthly annuity.
Differences in how the automatic and optional preretirement death benefits are calculated may
make it advantageous to waive the automatic benefit, even if you want your spouse to remain your
beneficiary. You may visit DeloitteNet or contact the Call Center at 1-800-DELOITTE (1-800-335-
6488) for more information regarding optional preretirement death benefit coverage. Please note:
a pre-nuptial agreement will not be recognized by the Plan as a valid consent by your spouse to the
waiver of the automatic preretirement death benefit.
Cost of Coverage
There is no charge for optional preretirement death benefit coverage.
Depending on the option you choose, you may make a beneficiary designation among several
beneficiaries in a manner which you designate. Further, your beneficiary may be an entity,
including the estate of a beneficiary, to whom such benefits commence before his or her death.
Any beneficiary designation shall be deemed to be revoked upon your divorce (if your ex-spouse is
your named beneficiary) or upon your marriage if the Plan receives written evidence of such
divorce or marriage before benefits are paid.
You may change or cancel your beneficiary designation at any time before your Benefit
Commencement Date (subject to notarized spousal consent).
In the event that you have not filed a beneficiary designation form, or if your designated
beneficiary(ies) has predeceased you, then your preretirement death benefits will be paid in the
following order:
_______________________________________________________________________________
Pension Plan Page 21 of 36 Released: October 2010
If you die without making an election for an optional form of payment, your beneficiary will receive
the automatic form of benefit described. (See Automatic Preretirement Death Benefits, above).
A Break in Service begins on the day after your last day of employment (see Service, above). It
ends when you return to work.
Generally, the rules relating to reemployment of terminated employees and employment by related
entities apply to you if you were previously employed by Deloitte or its affiliates (as defined in the
Deloitte Pension Plan or Deloitte Partner Plan) and you become employed by DTTS or an Affiliate.
(Please note, if you had a transfer of your accrued benefit pursuant to the Transfer of Accrued
Benefit section, above, your change in employment is not considered an interruption of service for
purposes of the paragraphs above.)
In the case of maternity or paternity leave (leave for pregnancy, childbirth, adoption, or child
care immediately after birth or adoption), you will continue to earn Service and Credited Service for
the first 12 months of such leave. If you return after more than 12, but less than 24 months of
leave, you will accrue Service for the full period of the leave (but Credited Service for only the first
12 months). If you do not return within 24 months, a Break in Service will begin on the second
anniversary of the commencement of your leave.
_______________________________________________________________________________
Pension Plan Page 22 of 36 Released: October 2010
In the case of military leave, if you return to work within the time limits specified under the law,
you will continue to accrue Service and Credited Service during your period of absence for vesting
and benefit accrual purposes. If you do not return within such time limits, your employment will be
considered terminated and your Service and Credited Service for vesting and benefit accrual
purposes will end when you incur a Break in Service.
If you are not Vested when you leave the DTTS Entities and your Break in Service lasts five years
or longer, you will lose the Service and Credited Service you accrued before your last day of prior
employment and you will not earn Service or Credited Service during the Break in Service. Upon
your return to the DTTS Entities, you will be treated as a new hire for Plan purposes.
If you are not Vested when you leave the DTTS Entities, and your Break in Service lasts less than
five years, your prior Service and Credited Service will be reinstated after you are reemployed and
complete one additional year of Service, and your Cash Balance Account will be credited with
Interest Credits which would have been credited for your period of absence had your account not
been forfeited.
Effect on Participation
If you were not a Plan Participant during your first period of employment because you had not met
the eligibility requirements and you are reemployed as an Eligible Employee prior to incurring a one
year Break in Service, your Plan participation will begin on the first Plan Entry Date after you meet
those eligibility requirements. For this purpose, Service you had completed before you left the
DTTS Entities will be included in determining your eligibility to participate. Plan Entry Dates occur
twice a year, on or near June 1 and December 1. Specifically, the two entry dates are the first day
of the Plan Year (DTTS’s fiscal year) and the date that falls six months later.
If your employment is terminated before you complete one year of Service and you are reemployed
as an Eligible Employee after incurring a five year Break in Service, you will become a Participant
upon your new Plan Entry Date after your satisfaction of the eligibility requirements based on your
reemployment date. Your Service during your first period of employment will be disregarded.
If your employment is terminated after you complete one year of Service but before you become a
Participant and you are reemployed as an Eligible Employee after incurring a one year Break in
Service, you will become a Participant as of the Plan Entry Date coincident with or following the
later of the date of your reemployment (provided you complete one year of Service after being
reemployed) and your attainment of age 21. For this purpose, Service you had completed before
you left will be included in determining your Vested benefit.
_______________________________________________________________________________
Pension Plan Page 23 of 36 Released: October 2010
If you are a Participant who is not Vested and you incur a Break in Service of one year but less
than five years, you will again become a Participant as of the date you are reemployed as an
Eligible Employee if you complete one year of Service after being reemployed. Your prior Service
and Credited Service will be reinstated as described under Effect on Service and Credited Service,
above.
If you are a Participant who is not Vested and you incur a Break in Service of five or more
consecutive years, you will again become a Participant upon the Plan Entry Date coinciding with or
following your completion of one year of Service after you are reemployed if you are an Eligible
Employee. You will lose the Service and Credited Service you accrued before your last day of prior
employment as described under Effect on Service and Credited Service, above.
If you are a Vested Participant and you incur a Break in Service of one or more years, you will
again become a Participant as of the date you are reemployed as an Eligible Employee. Your prior
Service and Credited Service will be reinstated as described under Effect on Service and Credited
Service, above.
If you continue to work after age 62, and you are employed for at least 40 hours in a calendar
month, your benefit payments will not begin until you actually leave the DTTS Entities. That is, you
will not receive the benefit payments that you would have received for such month if you had
actually retired. Your benefit payments are “suspended” since you are still working. You will
continue to accrue retirement benefits as described earlier until you retire and the benefit amount
payable will reflect Eligible Compensation and Service Credits that you earn beyond your 62nd
birthday. The Retirement Committee will notify you if you are affected by these rules. Benefit
payments suspended under these provisions shall be in accordance with Department of Labor rules.
If you are grandfathered under the Deloitte Career Average formula, leave employment with the
DTTS Entities, receive payment of your Plan benefit in a lump sum and are subsequently
reemployed, you will no longer be considered “grandfathered” and will only be entitled to additional
benefits based on any new Cash Balance Account established after your reemployment. If instead
you commence payment of your benefit in the form of an annuity, upon reemployment as an
Eligible Employee you will retain your grandfathered status for purposes of the benefit you earn
during your subsequent period of active Plan participation (applying the former Career Pay formula
from the day you reenter the Plan without regard to the benefit you earned during your prior
period of participation).
_______________________________________________________________________________
Pension Plan Page 24 of 36 Released: October 2010
Upon your subsequent retirement, the Retirement Committee will contact you concerning the
benefits you have earned following your reemployment, which will be paid separately in accordance
with applicable Plan terms.
The DTTS Pension Plan was established on June 1, 2008, through the spinoff of certain assets and
liabilities of the Deloitte Pension Plan as of such date.
The Plan’s assets are being held under a Trust Fund administered by the Trustee:
U.S. Bank National Association, 50 S. 16th Street, Suite 2000, EX-PA-WBSP, Philadelphia, PA 19102
Plan Sponsor:
Deloitte Touche Tohmatsu Services, Inc.
1633 Broadway
New York, NY 10019-6754
(Identification Number 13-3086681)
Type of Plan:
Defined Benefit Pension Plan
Plan Year:
The Plan Year is the Deloitte Touche Tohmatsu Services, Inc. fiscal year which begins on June 1
and ends on the following May 31.
_______________________________________________________________________________
Pension Plan Page 25 of 36 Released: October 2010
Plan Administrator:
Retirement Committee
Deloitte Touche Tohmatsu Services, Inc.
1633 Broadway
New York, NY 10019-6754
(212) 492-2868
The Retirement Committee makes all the rules and procedures necessary to administer the Plan
efficiently. Although the Retirement Committee cannot alter the terms, conditions, or benefits of
the Plan, the Retirement Committee makes all decisions regarding any question, interpretation, or
application of any Plan provisions.
Claims Procedures
If you feel that you are entitled to more benefits than you are to receive or have received under
the Plan, you may file a claim stating the benefits to which you contend you are entitled. The claim
must be filed with the Secretary of the Retirement Committee. The claim should state the facts
supporting the claim, the amount claimed and your address and name. The claim should be sent
to the following address:
Retirement Committee
Deloitte Touche Tohmatsu Services, Inc.
1633 Broadway
New York, NY 10019-6754
The Retirement Committee (or its delegate) will review the claim and within 90 days after receipt
of the claim advise you of its decision. If the Retirement Committee (or its delegate) needs more
than 90 days to review the claim, it will send you a written notice within 90 days after receipt of
the claim. The notice will advise you as to why the delegate needs more time, which cannot exceed
90 days, and the date by which the Retirement Committee expects to be able to advise you of its
decision. If the claim is denied in whole or in part, the written notice will provide you with:
The specific reason or reasons for the decision, with specific reference to the
pertinent Plan provisions on which the denial is based;
A description of any additional information or material necessary for the claim to be
allowed and an explanation of why such information or material is necessary;
An explanation of the Plan’s claim review procedures and the time limits applicable to
such procedures, including a statement of your right to bring a civil action under the
Employee Retirement Income Security Act of 1974 (“ERISA”) section 502(a)
following an adverse benefit determination on review.
If your claim is denied in whole or in part and you or your personal representative request a review
of the denial, the claim will be reviewed by the Retirement Committee. A request for review of a
denied claim must be made within 60 days after you receive notice of the denial. Upon request and
free of charge, you will be provided with reasonable access to and copies of all documents, records
and other information relevant to your claim, without regard to whether such information was
submitted or considered in the initial benefit determination.
_______________________________________________________________________________
Pension Plan Page 26 of 36 Released: October 2010
The denied claim will be reviewed by the Retirement Committee and within 60 days after receipt of
the request for review, you will receive a written notice of the Retirement Committee's decision.
The notice will contain specific reasons for the decision and will refer to the provisions of the Plan
on which the decision is based. If the Retirement Committee needs more than 60 days to review
the denied claim, you will be advised in writing within 60 days after the Retirement Committee
receives the request for review. The Retirement Committee has final discretionary authority to
determine whether you are eligible for a benefit and to decide all questions relating to the Plan and
to interpret the Plan. The notice of the Retirement Committee’s final decision will be in writing and
will include:
The specific reason or reasons for the decision, with specific reference to the
pertinent Plan provisions on which the final decision is based;
A statement that, upon request and free of charge, you are entitled to reasonable
access to copies of all documents, records and other information relevant to the
claim; and
A statement of your right to bring a civil action under ERISA section 502(a).
Any other claims that arise under, or in connection with, the Plan must be filed with the Retirement
Committee and will be considered in accordance with procedures consistent with those described
above. These claims procedures apply in a similar manner to any claims of a beneficiary.
If you move
If you get married (include copy of marriage certificate)
If you get divorced (include copy of pertinent pages of divorce decree)
If you need to change your beneficiary, for example, if your domestic partner status
changes (include proof of beneficiary’s age, e.g., copy of birth certificate)
If you leave the DTTS Entities before it is time for your payments to begin, it is
especially important to make sure the DTTS Entities have your current address at all
times.
When a benefit becomes payable to you, the Retirement Committee will send a letter to the last
address shown for you in Plan records. If that address is not current or if you do not contact the
Retirement Committee to request your benefit, your payments may be delayed.
Examine, without charge, at the Retirement Committee's office and at your local
office, all documents governing the Plan and a copy of the latest annual report (Form
5500 series) filed by the Plan with the U.S. Department of Labor and available at the
Public Disclosure Room of the Employee Benefits Security Administration.
_______________________________________________________________________________
Pension Plan Page 27 of 36 Released: October 2010
5500 series) and updated summary plan description. The Retirement Committee may
make a reasonable charge for the copies.
Receive a summary of the Plan's annual financial report. The Retirement Committee
is required by law to furnish each Participant with a copy of this summary annual
report.
Obtain a statement telling you whether you have a right to receive a pension at
Normal Retirement Age (age 62) and if so, what your benefits would be at Normal
Retirement Age if you stop working under the Plan now. If you do not have a right to
a pension, the statement will tell you how many more years you have to work to get
a right to a pension. This statement must be requested in writing and is not required
to be given more than once a year. The Plan must provide the statement free of
charge.
In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are
responsible for the operation of the employee benefit plan. These people, called "fiduciaries" of the
Plan, have a duty to do so prudently and in the interest of the Plan’s Participants and beneficiaries.
No one, including your employer or any other person, may fire you or otherwise discriminate
against you in any way for the purpose of preventing you from obtaining a benefit or exercising
your rights under ERISA.
If your claim for a pension benefit is denied, in whole or in part, you have a right to know why this
was done, to obtain copies of documents relating to the decision without charge, and to appeal any
denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request
a copy of Plan documents or the latest annual report from the Plan and do not receive them within
30 days, you may file suit in a Federal court. In such a case, the court may require the Retirement
Committee to provide the materials and pay you up to $110 a day until you receive the materials,
unless the materials were not sent because of reasons beyond the control of the Retirement
Committee. If you have a claim for benefits which is denied or ignored, in whole or in part, you
may file suit in state or Federal court. In addition, if you disagree with the Plan’s decision or lack
thereof concerning the qualified status of a domestic relations order or a medical child support
order, you may file suit in a Federal court.
If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated
against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or
you may file suit in a Federal court. The court will decide who should pay court costs and legal
fees. If you are successful, the court may order the person you have sued to pay these costs and
fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your
claim is frivolous.
If you have questions about the Plan, contact the Retirement Committee, Deloitte Touche
Tohmatsu Services, Inc., 1633 Broadway, New York, NY 10019-6754.
If you have any questions about this statement or about your rights under ERISA, contact the
nearest Area Office of the Employee Benefits Security Administration (EBSA), U.S. Department of
Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries,
EBSA, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You
may also obtain certain publications about your rights and responsibilities under the Employee
Retirement Income Security Act of 1974 (ERISA) by calling the publications hotline of EBSA.
_______________________________________________________________________________
Pension Plan Page 28 of 36 Released: October 2010
Rights to Terminate or Amend
DTTS reserves the right to amend, modify or suspend the Plan at any time and for any reason. In
no event will any such amendment to the Plan (i) authorize any part of the Trust Fund be used for,
or diverted to, purposes other than providing benefits to Participants or beneficiaries or defraying
the reasonable expenses of administering the Plan and the trust, (ii) reduce the Vested accrued
benefit of any Participant or beneficiary or (iii) eliminate an optional form of benefit, except as
permitted by law.
Further, although DTTS expects to maintain the Plan indefinitely, it does have the right to
terminate the Plan at any time and for any reason. If such termination occurs, your accrued
benefit will become 100% Vested to the extent funded. Upon the termination of the Plan no
further benefits will accrue to you. Any Plan assets remaining in the Plan after satisfying all benefit
obligations and expenses shall be returned to the Participating Employers.
Upon partial termination of the Plan, the right of all affected Participants to their accrued benefits
as of the date of such partial termination will become 100% Vested to the extent funded.
Benefits attributable to Participants who retired or could have retired and received an
immediate benefit three or more years prior to the termination
Benefits to the extent they are guaranteed by the Pension Benefit Guaranty
Corporation (discussed below)
Benefits attributable to Participants who have a Vested right to their benefits due to
their completion of the required number of years of Service
Benefits attributable to all other Participants
Contributions to the Trust Fund may be used only for the exclusive purpose of providing benefits to
Participants and their beneficiaries and paying the reasonable costs of administering the Plan.
Contributions will not be returned to a Participating Employer unless, after all benefits are
completely paid, there remains a balance in the Trust. In this case, the Participating Employers will
reclaim any excess amount in the Trust.
The PBGC guarantee generally covers: (1) normal and early retirement benefits; (2) disability
benefits if you become disabled before the Plan terminates; and (3) certain benefits for your
survivors.
The PBGC guarantee generally does not cover: (1) benefits greater than the maximum guaranteed
amount set by law for the year in which the Plan terminates; (2) some or all of benefit increases
and new benefits based on Plan provisions that have been in place for fewer than 5 years at the
_______________________________________________________________________________
Pension Plan Page 29 of 36 Released: October 2010
time the Plan terminates; (3) benefits that are not Vested because you have not worked long
enough for the employer; (4) benefits for which you have not met all of the requirements at the
time the Plan terminates; (5) certain early retirement payments (such as supplemental benefits
that stop when you become eligible for Social Security) that result in an early retirement monthly
benefit greater than your monthly benefit at the Plan’s Normal Retirement Age; and (6) non-
pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay and
severance pay.
Even if certain of your benefits are not guaranteed, you may still receive some of those benefits
from the PBGC depending on how much money the Plan has and on how much the PBGC collects
from employers.
For more information on the PBGC and the benefits it guarantees, contact the Retirement
Committee or the PBGC’s Technical Assistance Division, 1200 K Street, NW, Suite 930,
Washington, DC 20005-4026 or call 202-326-4000 (not a toll free number). TTY/TDD users may
call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326-
4000. Additional information about the PBGC’s pension insurance program is available through the
PBGC’s website at http://www.pbgc.gov.
Misstatement of Fact
If there has been a misstatement of any information on which the amount of benefit is determined
(such as your age or the age of your beneficiary, etc.), the amount of benefit payable to such a
person may be adjusted retroactively to the proper amount.
Return of Contributions
The assets of the Plan are not to be used for or diverted to purposes other than for the exclusive
benefit of the Participants or their beneficiaries under the Plan. However, all contributions made to
the Plan are conditioned on being deductible by the Participating Employers. If deduction of the
contribution is disallowed, or amounts contributed by the Participating Employers were made by a
mistake of fact, the Participating Employers can request that the contribution be returned within
one year from the disallowance of the deduction or mistaken payment, whichever the case may be.
Contributions may also be returned in the unlikely event of Internal Revenue Service denial of
initial qualification of the Plan.
Alienation of Benefits
Except as required or otherwise permitted by law (e.g., laws relating to a Qualified Domestic
Relations Order (QDRO)), your benefits in the Plan cannot be claimed by any person to whom you
owe a debt, nor can you or your beneficiary transfer any rights to these benefits to any person. A
QDRO is a court order that specifically meets certain conditions specified in the Code. For a copy of
the Plan’s QDRO procedures, contact the Retirement Committee.
Legal Limitations
Federal law limits the maximum amount you can receive in total from the Plan. Additional limits
may also apply to the benefits provided for certain highly compensated employees. DTTS reserves
_______________________________________________________________________________
Pension Plan Page 30 of 36 Released: October 2010
the right to amend or modify and/or to limit the benefits of any such individuals if required for
purposes of complying with these limits. You will be notified if you are affected by these limits.
Top-Heavy Provisions
Some of the rules of the Plan described in other portions of this Summary may change if the Plan
becomes a "Top-Heavy" Plan. The Plan will be Top-Heavy if, at the end of a Plan Year, the present
value of the accrued benefits of Participants who are key employees (as defined by the Code) are
more than 60% of the total present value of accrued benefits for all Participants.
The Plan is not now Top-Heavy and it is not expected that it will become Top-Heavy; however, if
the Plan does become Top-Heavy, special rules will become effective e.g., the Plan will have to
make a minimum contribution for non-key employees.
Plan Administration
The Retirement Committee is authorized to adopt rules and procedures for administering the Plan.
The Retirement Committee may require certain information, such as proof of age, proof of death,
confirmation of marital status, and the completion of specific forms, before benefits can be
determined and paid. You must keep the Retirement Committee informed of any changes in name
or address of any person entitled to a benefit or a change in marital status, and any changes in
optional elections made on the Benefit Election Form, including any change in beneficiary.
_______________________________________________________________________________
Pension Plan Page 31 of 36 Released: October 2010
Appendix A – Actuarial Assumptions and
Conversion Factors for Payment Forms
If your benefit is determined under the Cash Balance formula and you elect a lump sum form of
payment, your lump sum will equal the value of your Cash Balance Account. In other situations,
actuarial assumptions and conversion factors will be needed to determine your benefit.
Mortality Table –
After Annuity Commencement: A mortality table based upon a fixed blend of (a) 50 percent of the
static male combined mortality rates published in Proposed Treasury Regulation § 1.430(h)(3)-1
for valuation dates (for funding purposes) occurring in 2008, projected from 2008 to 2012 by
Mortality Projection Scale AA (from the Society of Actuaries RP-2000 Mortality Table Report); plus
(b) 50 percent of the static female combined mortality rates published in Proposed Treasury
Regulation 1.430(h)(3)-1 for valuation dates (for funding purposes) occurring in 2008, projected
from 2008 to 2012 by Mortality Projection Scale AA.
Interest Rate(s) - The adjusted first, second, and third segment rates under section 430(h)(2)(C)
of the Code (determined without regard to the 24-month averaging under section 430(h)(2)(D)
and without application of the transition rule under Code Section 417(e)(3)(D) (which phases in
use of corporate bond segment rates over five years)) as published in December for the month of
November of the calendar year preceding the calendar year containing the Benefit Commencement
Date.
For Participants with Benefit Commencement Dates on or after January 1, 2012, the actuarial
assumptions used to convert your Cash Balance Account to a Life Only Annuity are as follows:
Mortality Table –
After Annuity Commencement: The published mortality table that will be required for purposes of
section 417(e) of the Code for calendar years beginning in 2012 as a result of the Pension
Protection Act of 2006 (to be adjusted to follow subsequent guidance issued annually thereafter).
Interest Rate(s) – The adjusted first, second, and third segment rates under section 430(h)(2)(C)
of the Code (determined without regard to the 24-month averaging under section 430(h)(2)(D)) as
published in December for the month of November of the calendar year preceding the calendar
year containing the Benefit Commencement Date.
Regardless of Benefit Commencement Date, in the case of an Eligible Employee who has an
accrued benefit transferred to this Plan pursuant to the Transfer of Accrued Benefit section, above,
_______________________________________________________________________________
Pension Plan Page 32 of 36 Released: October 2010
such individual’s Life Only Annuity shall not be less than the amount calculated by applying the
interest rate and mortality tables under the Deloitte Pension Plan as specified in Appendix A of that
plan in the same manner as for “conversions” prior to June 1, 2008 to his cash balance account
under the Deloitte Pension Plan as of May 31, 2008 as if the Participant had accrued no additional
Service Credits under this Plan after May 31, 2008.
Regardless of Benefit Commencement Date, and notwithstanding the above, in the case of an
Eligible Employee who has a “partner cash balance account” (as defined in Appendix B of the
Deloitte Partner Plan) transferred to this Plan pursuant to the Transfer of Accrued Benefit section,
above, the conversion of the portion of such individual’s benefits attributable to his partner cash
balance account shall be the amount calculated by applying the mortality table and interest rate as
would be used for conversion of a “cash balance account” to a life annuity in accordance with the
provision of Appendix A, Section B.4, of the Deloitte Partner Plan (as such Section may be
amended from time to time).
The lump sum equivalent is the larger of the amounts determined by using factors labeled (A) or
factors labeled (B) within the following categories:
Mortality Table -
Prior to Annuity Commencement: (A) The applicable mortality table set forth in Revenue Ruling
2007-67 or such other table prescribed by the Secretary of the Treasury in Revenue Ruling 2007-
67 for purposes of determining the present value of benefits for the application of restrictions on
cash-outs; or (B) None.
After Annuity Commencement: (A) The applicable mortality table set forth in Revenue Ruling 2007-
67 or such other table prescribed by the Secretary of the Treasury in Revenue Ruling 2007-67 for
purposes of determining the present value of benefits for the application of restrictions on cash-
outs; or (B) a mortality table based upon a fixed blend of (a) 50 percent of the static male
combined mortality rates published in Proposed Treasury Regulation § 1.430(h)(3)-1 for valuation
dates (for funding purposes) occurring in 2008, projected from 2008 to 2012 by Mortality
Projection Scale AA (from the Society of Actuaries RP-2000 Mortality Table Report); plus (b) 50
percent of the static female combined mortality rates published in Proposed Treasury Regulation
1.430(h)(3)-1 for valuation dates (for funding purposes) occurring in 2008, projected from 2008 to
2012 by Mortality Projection Scale AA.
Interest Rate(s) -
(A) The adjusted first, second and third segment rates under section 430(h)(2)(C) of the Code
(determined without regard to the 24-month averaging under section 430(h)(2)(D)) as published
in December for the month of November of the calendar year preceding the calendar year
containing the Benefit Commencement Date; or (B) The adjusted first, second and third segment
rates under section 430(h)(2)(C) of the Code (determined without regard to the 24-month
averaging under section 430(h)(2)(D) and without application of the transition rule under section
417(e)(3)(D) (which phases in use of corporate bond segment rates over five years)) as published
_______________________________________________________________________________
Pension Plan Page 33 of 36 Released: October 2010
in December for the month of November of the calendar year preceding the calendar year
containing the Benefit Commencement Date.
For Participants with Benefit Commencement Dates on or after January 1, 2012, the actuarial
assumptions used to convert your annuity benefit under the Deloitte Plans’ Career Average Formula
to a lump sum are as follows:
Mortality Table –
After Annuity Commencement: The published mortality table that will be required for purposes of
section 417(e) of the Code for calendar years beginning in 2012 as a result of the Pension
Protection Act of 2006 (to be adjusted to follow subsequent guidance issued annually thereafter).
Interest Rate(s) – The adjusted first, second, and third segment rates under section 430(h)(2)(C)
of the Code (determined without regard to the 24-month averaging under section 430(h)(2)(D)) as
published in December for the month of November of the calendar year preceding the calendar
year containing the Benefit Commencement Date.
Note: In performing the above determinations of a lump sum, determination of the actuarial
equivalent will be based on a single life annuity commencing upon the Participant’s Normal
Retirement Date.
Lesser of:
98% or
90.7% + (.5% x Age Difference)
The factors used to convert from a Life Only Annuity to a Joint and 75% Survivor Annuity are as
follows:
Lesser of:
97% or
86.7% + (.75% x Age Difference)
The factors used to convert from a Life Only Annuity to a Joint and 100% Survivor Annuity are as
follows:
Lesser of:
96% or
83% + (1% x Age Difference)
The actuarial assumptions used to convert from a Life Only Annuity to a Life and Term Certain
Annuity are as follows:
_______________________________________________________________________________
Pension Plan Page 34 of 36 Released: October 2010
Interest Rate: 8.5%
Mortality Table: 1971 GAMT-Male, no setback
The factors and actuarial assumptions used to convert from a Joint and Survivor Annuity to a Joint
and Survivor Term Certain Annuity are as follows:
The appropriate factor for the Joint and Survivor Annuity (found above) is multiplied by the ratio of
A to B where:
A is the factor for converting a Life Only Annuity to a Joint and Survivor Term Certain
Annuity, using the applicable survivor percentage, term certain period and age of
Participant and spouse or beneficiary, and
B is the factor for converting a Life Only Annuity to a Joint and Survivor Annuity (no
term certain), using the applicable survivor percentage, age of Participant and
spouse or beneficiary.
_______________________________________________________________________________
Pension Plan Page 35 of 36 Released: October 2010
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited
by guarantee, and its network of member firms, each of which is a legally separate and
independent entity. Please see www.deloitte.com/about for a detailed description of the legal
structure of Deloitte Touche Tohmatsu Limited and its member firms.
This publication is for internal distribution and use only among personnel of Deloitte Touche
Tohmatsu, its member firms, and its and their affiliates.
_______________________________________________________________________________
Pension Plan Page 36 of 36 Released: October 2010