Effective January 1, 1976, Time Warner Inc., the plan sponsor, established the Excess Benefit Pension Plan of Time Incorporated and Subsidiary Companies for specific employees. With effect from April 2, 1991, the Plan was renamed the Time Warner Excess Benefit Pension Plan. The Plan was renamed the Time Warner Excess Benefit effective January 11, 2001.
1 Purpose of Plan.
Because Section 415 of the Code places restrictions on benefits, the Plan's goal is to give Participants benefits that exceed what they could receive under the tax-qualified defined benefit pension plan of an Employing Company. The Omnibus Budget Reconciliation Act of 1993 amended Section 401(a)(17) of the Code, which went into effect on January 1, 1994. As a result, the Plan offers Participants benefits based on a compensation level that is not restricted by that section's previous amount.
2 Applicability of Plan.
The plan's provisions are exclusively applicable to Employees of Employing Companies who begin work on or after the date on which the Employing Companies' plan becomes effective. According to Section 201(2) of ERISA, the Plan is meant to be an unfunded, non-qualified deferred compensation plan for a limited group of highly compensated employees or management, and a "excess benefit plan" as defined by Section 3(36) of the Employee Retirement Income Security Act of 1974 ("ERISA"). Additionally, the Plan aims to fulfill specific obligations under Title 4 U.S.C., Chapter 4, Section 114.
3 Definitions.
The following terms, unless otherwise specifically stated, shall have the meanings indicated below when used in the Plan; terms intended to have defined meanings are capitalized.
4 Affiliate
This refers to the Employing Company and any entity affiliated with it as defined by Code Sections 414(b) and 414(c) regarding controlled groups of corporations, trades or businesses under common control with the Employing Company, and Section 414(m) regarding affiliated service groups, as well as any other entity that must be combined with an Employing Company in accordance with rules under Section 414(o) of the Code.
5 Beneficiary
Meaning (i) for Participants who have not yet terminated their employment with an Employing Company or started receiving benefits under the Employing Company's Pension Plan, the person eligible to receive pre-retirement joint and survivor death benefits under the Employing Company's Pension Plan; and (ii) for Participants who have already terminated their employment with an Employing Company, the person or persons designated by a Participant, by notice to the Benefits Officer, to receive any benefits payable under the Plan after their death, provided that designation has not been revoked by Notice to the Benefits Officer at the Participant's Funeral. The format of the notice must be one that the Benefits Officer approves of or requires. which is accurately filled out and given to the Benefits Officer or their designated representative. When notice is truly received by any of these people, it will be considered as having been given to the Benefits Officer.
What Are The Pros And Cons For Consumers?
An $85.4 billion deal has been reached by telecom behemoth AT&T to acquire media behemoth Time Warner. Both industries have been rocked by the news of this revolutionary merger, which has sparked criticism from politicians and even presidential campaigns in addition to raising eyebrows on Wall Street.
Regulators, including the Department of Justice, which examines antitrust laws, and possibly the Federal Communications Commission, which assesses whether deals are generally in the public interest, are expected to scrutinize the deal closely. (The FCC's involvement is contingent upon whether broadcast licenses are ultimately involved in the deal.)
PROS
AT&T believes that this acquisition will spark a new era of video innovation.
Customers are requesting "more and more premium content" for their mobile devices, according to CEO Randall Stephenson. They also want it to be produced, organized, and selected with mobility in mind. "As we begin to work with content creators to develop content for this world of mobility, it's proving to be very difficult to get to a world of content that's really curated and formulated for the mobile experience," Stephenson told David Folkenflik of NPR.
CONS
According to Stephenson, which was reported by The New York Times, AT&T would not profit from limiting the distribution of Time Warner's content, but that is undoubtedly one of the main concerns that the regulators will address.
Consumer advocacy organizations and rival businesses are concerned that AT&T may use Time Warner's programming as leverage in negotiations. Supporters of Public Knowledge have contended that "DirecTV, for example, might favor Time Warner content, crowding out or refusing to carry alternative and independent programming that viewers might prefer," and that AT&T may try to manipulate prices to draw users to its platforms or exclude Time Warner Email Support content from data caps on its broadband networks.
AT&T-Time Warner Deal: Reviewing The Benefits And Risks
The U.S. Justice Department opposed the deal on antitrust grounds, so the decision by a federal judge on Tuesday allowed AT&T to move forward with its acquisition of media giant Time Warner without any conditions. This is a major victory for the company. By June 20, AT&T hopes to have completed the acquisition of Time Warner's media assets, combining it with its extensive distribution network that includes pay TV, broadband, and wireless services. With its core telecom business having slowed significantly, AT&T is depending on the media and content space to drive growth. By purchasing Time Warner, AT&T would be the owner of original, high-caliber content in addition to gaining some negotiating power when purchasing content from other businesses for distribution, enabling it to control content expenses. But investors are still dubious about the deal, and the company still has a lot to prove. For example, in Tuesday's after-hours trading, Time Warner's stock increased by approximately 4.5%, while AT&T's stock fell by approximately 2.8%.
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