Base Pay: Base salary or wage, including Shift Differential Pay. Does not include: overtime pay, instructor pay, per diem, special assignment premium pay, location allowances, commissions, incentive compensation awards, other bonuses, disability pay, or any other payment.
Benefit Commencement Date: The first day on which your pension benefits are due and payable to you, your surviving spouse, or surviving Designated Domestic Partner, if applicable.
Benefit Credits: The portion of PVP benefit that was added annually based on your compensation and age. Employees earned Benefit Credits each year they were a participant in the PVP through December 31, 2015.
Benefit Service: A measure of service used to calculate PVP benefits. Service generally accrued between the latest of:
And the earliest of:
Catch-Up Contributions: Additional contributions to 401(k) accounts beyond the IRS elective deferral limits for the year. You are eligible to make Catch-Up Contributions if you are age 50 or older by the end of that calendar year.
Company Matching Contributions Boeing generally matches 100% of the first 10% of eligible base and incentive pay that an employee contributes to the Boeing 401(k). This includes Catch-Up Contributions.
Core Benefits: A factor in the Alternate Benefit Formula used to calculate an individual's BCERP pension. Core Benefits are determined by multiplying a "core percentage" (1.025%) by your Final Average Monthly Earnings, and multiplying the result by years of Credited Service.
Credit-Based Benefits: A component of retirement income calculated under the Pension Value Plan (PVP), consisting of Benefit Credits and Interest Credits.
Credited Service: Until December 31, 2018, employees earned one year of Credited Service for each Plan Year (January 1 to December 31) in which they had 2,000 or more Hours of Service as an Eligible Employee. If one had fewer than 2,000 hours in a Plan Year, they received a partial year of Credited Service, rounded to the nearest one-thousandth of a year. Credited Service was also awarded for approved leaves of absence (up to 30 days, or longer if provided by collective bargaining agreement or a pilot early leave program), active duty in the armed forces, and approved union business leave (up to 10 years).
Excess Benefit: A factor of the Alternate Benefit used to calculate BCERP pension benefits. Excess Benefit is determined by dividing Social Security Covered Compensation by 12 to get a monthly amount, and then subtracting that from Final Average Monthly Earnings. If the difference is greater than zero, that amount is multiplied by the "excess percentage" (0.450%), and the result is multiplied by years of Credited Service.
Final Average Monthly Earnings: A component in the calculation of benefits under the Alternate Benefit Formula and Old Alternate Benefit Formula of the BCERP. It is generally defined as the highest average of your basic annual compensation rates that were in effect on the first day of each calendar month during the 60 consecutive calendar months out of your last 120 months of service. If applicable, this period ends with the date Final Average Monthly Earnings stopped accruing. This total average is then divided by 12 to get a monthly figure. A month of compensation is only considered if you were an employee on the first of that month and performed work during that month. If you have fewer than 60 months of service, your Final Average Monthly Earnings will be based on your actual months of service.
Heritage MDC Benefit: A pension benefit that originated from the Employee Retirement Income Plan of McDonnell Douglas Corporation—Salaried Plan (often referred to as the "MDC Salaried Plan"). This benefit was integrated into the Pension Value Plan (PVP)
Hours of Service: The time at work credited to an employee.
Interest Credits: Applied to PVP credit-based accounts at the end of each Plan Year based on the value of the account on January 1 and the 30-year U.S. Treasury bond yield rate the previous November. Interest Credits continue to accrue until the earlier of your Benefit Commencement Date or the end of the year in which you turn age 70½. The Interest Credit Limits on yield rate increases are:
Incentive Payments: A non-Base Pay payment received under one of Boeing’s incentive plans.
Monthly Benefit Rate: The rate applicable to your specific collective bargaining group at the time you stop working for Boeing, or at the end of your layoff period if later. This rate is multiplied by your years of Credited Service to determine your monthly basic benefit.
Plan Administrator: Appointed by Boeing’s Board of Directors to manage the company’s retirement plans.
Shift Differential Pay: An adjustment to regular pay that is dependent on the work schedule or shift.
Social Security Covered Compensation: Average Social Security wage base for the 35 years ending with the earlier of your employment termination or when you commence required distributions at age 70½.
Student Loan Non-Elective Contributions: Allows for eligible U.S. employees to have their qualifying student loan payments count as contributions to the Boeing 401(k) for the purpose of calculating the Company Match.
Supplemental Matching Contributions: Applies if an employee makes direct contributions to the Boeing 401(k) and the Student Loan Non-Elective Contributions is less than the maximum Company Matching Contribution.
True-Up Company Matching Contribution: An adjustment made by Boeing to ensure that eligible employees receive the maximum possible matching contribution based on their total match-eligible contributions over an entire Plan Year.
Vesting Service: The number of years working for Boeing that count towards the right to receive a pension benefit. Generally, employees earn a year of Vesting Service for each year they were a Boeing employee and completed at least 1,000 Hours of Service.
Year of Eligibility Service: The completion of 12 months of service during which an individual was credited with 1,000 or more Hours of Service. If an employee had fewer than 1,000 Hours of Service in their first 12 months of employment, they were treated as completing a Year of Eligibility Service at the end of the first calendar year after their hire date during which they were credited with 1,000 or more Hours of Service.