Company Service: Continuous period or sum of continuous periods of employment with Pantex used to determine eligibility for benefits.
Credited Service: Time worked for Pantex or a prior Management and Operating Contractor that sponsored a benefit plan. Used to determine vesting and service continuation.
Eligible Earnings: The specific types of compensation used as the basis for calculating employee contributions, company matching contributions, and Enhanced Defined Employer Contributions (EDC) in the 401(k) Savings Plan, and for determining pension benefits in the Pension Plans
401(k) Savings Plan Eligible Earnings
Pantex Employees (General Definition)
For all Pantex Employees, all earnings are generally eligible for contributions, with the following exceptions that are excluded:
Reimbursements or other expense allowances.
Fringe benefits.
Moving expenses.
Welfare benefits (even if includible in gross income).
Y-12 Employees (Specific Classifications)
Y-12 Non-bargaining Employees: Eligible Earnings are defined as the regular base earnings for the pay period, which includes bonuses.
Y-12 Bargaining Unit Employees: Eligible Earnings are based on regularly scheduled hours for the payroll period at the straight time rate. This includes shift premiums and the bargaining unit cost-of-living allowance. Overtime is specifically excluded.
Pension Plan Eligible Earnings
Y-12 Plan: Eligible Earnings are based on the average of the participant's highest earnings for three years during the last 10 years just before they retire. Paid Time Off (PTO) payout or severance pay, etc., received after termination of employment is disregarded when determining pay for Y-12 Plan benefit purposes.
Pantex Plans (Pantex NB Plan, MTC Plan, PGU Plan), Eligible Earnings are the amounts paid to the employee in the calendar year and are averaged over a period to determine their Final Average Earnings. The Glossary describes the definitions of Eligible Earnings in each Pantex Plan. If an employee terminates on or after December 15th of a calendar year, the Eligible Earnings for that year will be counted in determining Final Average Earnings if those earnings are higher than earnings for a previous eligible year.
General Rules and Limitations
Employee contributions (Before-tax, Roth, and Regular After-Tax at Y-12) are deducted from Eligible Earnings.
Company matching contributions and Enhanced Defined Contributions (EDC) are calculated as a percentage of Eligible Earnings.
Federal tax laws limit the maximum amount of Eligible Earnings that can be counted for 401(k) Plan purposes, and this amount is adjusted annually by the IRS based on cost-of-living changes.
Using before-tax contributions from Eligible Earnings reduces taxable income, but the Company continues to recognize the full basic rate of Pay for other pay-related benefits, such as life insurance, disability coverage, and pension benefits.
Employee Classifications
ATLC: Atomic Trades and Labor Council
FCLT: Y-12 Fire Captains and Lieutenants
IGUA: International Guards Union of America
MTC: Metal Trades Council
NB: Non-Bargaining Pantex Employees
PGU: Pantex Guards Union
USW: United Steel Workers
WSI: Former WSI Non-Bargaining Employees
Enhanced Defined Employer Contributions (EDC): A non-discretionary employer contribution made to eligible employees' 401(k) Savings Plan accounts.
Final Average Earnings: Averaged compensation figure used specifically to determine the final amount of a participant's monthly benefit under the Pantex Pension Plans.
The amount of the benefit accrual is calculated as a percentage (e.g., 1.3% or 1.5%) of the Final Average Earnings multiplied by the years of Pension Service Credit.
For the Pantex Plans, the calculation method is described in the Glossary (not fully detailed in the provided excerpts), but it is based on averaging the Eligible Earnings paid to the employee in the calendar year over a period.
If an employee terminates on or after December 15th of a calendar year, the Eligible Earnings for that year will be counted in determining FAE if they are higher than the earnings for a previous eligible yea
Pension Service Credit (P.S.C.): The specific measure of service time used to calculate the amount of the pension benefit.
For the Y-12 Plan, Pension Service Credit includes all your years and completed months of service, with each completed month counting as 1/12 of a year.
Pension Service Credit accrual depends on employee contributions and active participation in the eligible job class.
Employees on an unpaid leave of absence (other than qualified military service or approved disability leave) will not accrue Pension Service Credit during the period of leave.
If an employee is on a qualified military service leave, they may earn Pension Service Credit by making up part or all of the required employee contritutions upon returning to work.
Pension Service Credit is not granted during a period of severance lasting one year or more
Prior Plans: Predecessor retirement programs and the contributions made under them during earlier periods.
For the Pantex Non-Bargaining Plan the "Prior Plan(s)" refer to:
Mason & Hanger-Silas Mason Co., Inc. Retirement Plan for Non-Bargaining Employees at Pantex Plant
Mason & Hanger-Silas Mason Co., Inc. Retirement Plan for Non-Bargaining Employees at United States Government Owned Plants
Pantex Plans required employee contributions (“Prior Plan Contributions) until::
Pantex Non-Bargaining Plan: October 1, 1991, and permitted them until January 1, 1992
MTC Plan: March 1, 1993
PGU Plan: June 1, 1994