EX-10.77 5 tmo10ka02ex10-77.txt Exhibit 10.77 THERMO ELECTRON CORPORATION Supplemental LTD Plan Key Plan Design Features Program Description ------------------- The Thermo Electron Supplemental Long Term Disability Benefit is a disability benefit designed to supplement the coverage you receive under Thermo Electron's basic long-term disability program. The basic program provides a monthly benefit of 60% of base salary to a monthly maximum benefit of $10,000. The supplemental plan enhances your disability benefit by providing a monthly benefit of 60% of total compensation to an additional $10,000 monthly maximum benefit, for a combined monthly maximum of $20,000 between the basic and supplemental plans. The plan is funded through individual disability policies and the coverage is fully paid by the company. Other key features of the plan are summarized below:
Design Feature Plan Design -------------------------------------------------------------------------------- Eligibility: Active, full-time employees earning a specific level of base salary Enrollment: Upon hire Eligible Compensation/ Base salary plus incentive bonuses and employer Total Compensation: matching contribution under the 401(k) plan Benefit: 60% of total compensation to a monthly maximum benefit of $10,000 Changes in Benefit: Each year, your benefit amount under the plan will increase (or decrease) as your eligible compensation increases (or decreases). A rider to reflect a change in supplemental benefit is issued after April 1 salary changes are recorded. Definition of Disability: Inability to perform the substantial and material duties of your own occupation and not working in any other gainful occupation for the duration of the disability. Partial Disability: Proportionate benefits are payable to age 65 if you return to part-time active employment on your physician's advice, but continue to suffer a decreased level of earnings. Recovery Benefits: Proportionate benefits are payable to age 65 if you return to full-time active employment on your physician's advice, but continue to suffer a decreased level of earnings. Mental/Nervous Drug or Benefits are payable to age 65, regardless of Alcohol: whether confined to a hospital/institution. Elimination Period: Benefits begin after 180 days of disability. Benefit Period: Benefits are payable to age 65 (or longer if disability occurs after age 61). Guaranteed Contractual Terms: Once you are approved for coverage, Provident Life Insurance Company cannot change your policy provisions. Guaranteed Premiums: Your monthly premiums are guaranteed until age 65. Tax-Free Benefit: As the cost for this coverage is paid for by the company, any disability benefit you receive under this plan will be taxable income. In order to make your disability payments tax- free, Thermo Electron can include the premium amounts in your year-end W2 statement. To elect this option, you must complete the appropriate section of the Application Cover Sheet. Guaranteed Issue Coverage: Your policy will be issued to you on a guaranteed issue basis (i.e., regardless of your current health status or medical history). Termination of Benefit: Your coverage under the plan terminates effective as of your last day of active employment with the company. Portability: Your policy is fully portable (i.e., the coverage does not end if you leave the company). This is a brief description of the key policy Features. See the actual policy for specific provisions.