The Timken Company Retirement Plan for MPB · PDF fileThe Timken Company Retirement Plan for...

The Timken Company Retirement Plan for MPB Employees Summary Plan Description

Retirement Plan SPD – January 2016 Page | 1

INTRODUCTION ............................................................................................................................................ 3

GENERAL INFORMATION ............................................................................................................................. 3

ELIGIBILITY ................................................................................................................................................... 3

COVERED ASSOCIATES ................................................................................................................................................................................. 3 BECOMING A PARTICIPANT ........................................................................................................................................................................... 3 IF YOU ARE REHIRED ..................................................................................................................................................................................... 4 IF YOU CHANGE YOUR EMPLOYMENT STATUS ............................................................................................................................................ 4

YEARS OF SERVICE ....................................................................................................................................... 4

VESTING SERVICE - FULL-TIME ASSOCIATES AND PHASED RETIREES ......................................................................................................... 4 VESTING SERVICE – PART-TIME ASSOCIATES .............................................................................................................................................. 5 CREDITED SERVICE – FULL-TIME ASSOCIATES AND PHASED RETIREES ...................................................................................................... 5 CREDITED SERVICE – PART-TIME ASSOCIATES ............................................................................................................................................ 5 VESTING DATE ............................................................................................................................................................................................. 5 MILITARY SERVICE ....................................................................................................................................................................................... 6 BREAK IN SERVICE ........................................................................................................................................................................................ 6

WHEN YOU ARE ELIGIBLE FOR A PENSION ................................................................................................. 6

NORMAL PENSION ........................................................................................................................................................................................ 6 EARLY PENSION ............................................................................................................................................................................................ 6

Pension Attributable to Credited Service Earned Prior to January 1, 2004: .......................................................................... 7 Pension Attributable to Credited Service Earned On and After January 1, 2004: ................................................................ 7

DEFERRED VESTED PENSION ........................................................................................................................................................................ 7 LATEST TIME FOR PAYMENTS TO START ...................................................................................................................................................... 7

CALCULATING YOUR RETIREMENT BENEFIT .............................................................................................. 7

HOW YOUR PENSION IS CALCULATED ......................................................................................................................................................... 9 Your Benefit for Credited Service Earned Prior To January 1, 2004 ................................................................................... 9 Your Benefit For Credited Service Earned On Or After January 1, 2004 ................................................................................. 9 Your Benefits if you Transferred in to This Plan Prior To January 1, 1992............................................................................ 10

EXAMPLES ................................................................................................................................................................................................... 10

HOW YOUR BENEFITS ARE PAID ............................................................................................................... 12

FORMS OF PAYMENT ................................................................................................................................................................................... 12 Single Life Annuity Option (normal form of payment for unmarried participants) ......................................................... 12 Automatic 50% Joint and Survivor Annuity (normal form of payment for married participants) ............................... 12 Optional Forms of Payment Available ......................................................................................................................................... 12

Single Life Annuity ................................................................................................................................................................................................ 12 Joint and 25% Survivor Annuity ...................................................................................................................................................................... 12 Joint and 50% Survivor Annuity ...................................................................................................................................................................... 12 Joint and 75% Survivor Annuity ...................................................................................................................................................................... 12 Certain and Continuous Annuity ..................................................................................................................................................................... 13 Lump Sum Option ................................................................................................................................................................................................. 13

Spousal Consent ................................................................................................................................................................................ 13 Automatic Lump Sum ...................................................................................................................................................................... 13 Changes in a Form of Payment/Beneficiary ........................................................................................................................... 13

IF YOU ARE REHIRED .................................................................................................................................. 14

DEATH BENEFITS ........................................................................................................................................ 14

PRE-RETIREMENT DEATH SPOUSE BENEFIT ............................................................................................................................................... 14 LUMP SUM OPTION .................................................................................................................................................................................... 15



POST RETIREMENT DEATH BENEFIT ........................................................................................................................................................... 15

HOW TO APPLY FOR BENEFITS .................................................................................................................. 15

PENSION BENEFIT ESTIMATE ...................................................................................................................................................................... 15 RETIREMENT PROCESS ................................................................................................................................................................................ 16 CLAIMS PROCEDURE ................................................................................................................................................................................. 16

If Your Claim is Denied ..................................................................................................................................................................... 16 Appealing Your Denied Claim ....................................................................................................................................................................... 16 Applicable Time Frames ................................................................................................................................................................................... 16

ADDITIONAL PLAN INFORMATION ........................................................................................................... 17

COST OF THE PLAN ..................................................................................................................................................................................... 17 PLAN ASSETS .............................................................................................................................................................................................. 17 PLAN ADMINISTRATION .............................................................................................................................................................................. 17 ASSIGNMENT OF BENEFITS ......................................................................................................................................................................... 17 RECOVERY OF OVERPAYMENTS .................................................................................................................................................................. 17 QUALIFIED DOMESTIC RELATIONS ORDERS .............................................................................................................................................. 17 TOP HEAVY PLAN PROVISION .................................................................................................................................................................... 18 LIMITATIONS ON BENEFITS ......................................................................................................................................................................... 18 PLAN AMENDMENT OR TERMINATION ....................................................................................................................................................... 18 PENSION BENEFIT GUARANTY CORPORATION ........................................................................................................................................... 18 HOW YOU CAN LOSE BENEFITS ................................................................................................................................................................. 19 EFFECT ON TAXES ....................................................................................................................................................................................... 19 NO GUARANTEE OF EMPLOYMENT ............................................................................................................................................................ 19

YOUR RIGHTS UNDER ERISA ...................................................................................................................... 20

RECEIVE INFORMATION ABOUT YOUR PLAN AND BENEFITS ..................................................................................................................... 20 PRUDENT ACTIONS BY PLAN FIDUCIARIES ................................................................................................................................................. 20 ENFORCE YOUR RIGHTS ............................................................................................................................................................................. 20 ASSISTANCE WITH YOUR QUESTIONS ........................................................................................................................................................ 20

ADMINISTRATIVE INFORMATION ............................................................................................................. 21

TIMKEN PENSION SERVICE CENTER ............................................................................................................................................................ 21 PLAN ADMINISTRATOR ............................................................................................................................................................................... 21 PLAN NAME ................................................................................................................................................................................................ 21 EMPLOYER IDENTIFICATION NUMBER (EIN) .............................................................................................................................................. 21 PLAN NUMBER ............................................................................................................................................................................................ 21 TYPE OF PLAN AND TYPE OF ADMINISTRATION......................................................................................................................................... 21 PLAN TRUSTEE ............................................................................................................................................................................................ 21 PLAN SPONSOR/EMPLOYER ....................................................................................................................................................................... 21 AGENT FOR SERVICE OF LEGAL PROCESS ................................................................................................................................................... 21 PLAN YEAR .................................................................................................................................................................................................. 22 PARTICIPATING COMPANY LOCATION ....................................................................................................................................................... 22



Introduction The Timken Company (the “Company") established The Timken-Latrobe-MPB-Torrington Retirement Plan (the "Plan" or “Retirement Plan”) to provide income for eligible employees during their retirement years. The total cost of the Plan is paid by the Company.

This Summary Plan Description (“SPD”) provides an overview of the provisions of the Plan that are in effect on and after January 1, 2016. If you are retired or terminated employment before January 1, 2016, and are eligible for a benefit, there will be no change in the amount of retirement benefit you are receiving or will be entitled to receive.

Please read this SPD carefully, because it explains how the Plan works and describes the benefits it can offer to you and your spouse or beneficiary. The actual Plan provisions are contained in a formal Plan document that governs the Plan. In the event of any discrepancy between this SPD and the formal Plan document or any explanation from Plan representatives, the provisions of the Plan document will govern. The formal Plan document is available for you to review upon request from the Timken Pension Service Center.

This SPD contains a summary in English of your Plan rights and benefits under the Plan. If you have any difficulty understanding any part of his SPD, please contact the Timken Pension Service Center.

General Information For the purposes of this SPD, the terms “Timken” and “Company” mean the operating companies, subsidiaries and affiliates of The Timken Company to which the Plan has been extended. Participating locations are listed at the end of this SPD in the section titled “Administrative Information.”

Eligibility Covered Associates You are eligible to participate in this Plan if you were an employee of a domestic division of MPB Corporation immediately prior to January 1, 2004 and not otherwise excluded from coverage. The benefit that you are eligible to receive will depend in part on your age and years of Vesting Service as of December 31, 2003.

If you were not an employee of a domestic division of MPB Corporation immediately prior to January 1, 2004, you are eligible to participate if immediately prior to transferring to a position at a domestic division of MPB Corporation, you were an active participant in a company-sponsored defined benefit plan and on December 31, 2003 you had completed at least 5 years of Vesting Service and your age plus years of Vesting Service equaled at least 50.

You are a Purdy Grandfathered Associate eligible to participate in this Plan on October 22, 2007, if immediately prior to January 1, 2004, you were an employee of Purdy Corporation, you had completed at least 5 years of vesting service with Purdy Corporation, your age plus years of vesting service with Purdy Corporation equaled at least 50, you were an active participant in a defined benefit plan sponsored by Purdy Corporation, and

You were employed by Timken Aerospace Transmissions, LLC as of October 22, 2007 (including those receiving short term disability benefits from Purdy Corporation who were actively employed within three months of their short term disability date).

Becoming a Participant If you are eligible to participate, you will become an active participant in the Retirement Plan on the first day of the month after either (1) you have completed one year of Vesting Service with the company if you are a full-time employee, or (2) you have completed at least 1,000 hours of service during the 12 month period beginning on your date of hire and any subsequent anniversary date of your hire date if you are a part-time employee who is not classified as “IEA” or “PHWP.” (Associates classified as “IEA” or “PHWP” are not eligible to participate in this Plan.) In addition, if you were first hired on or after January 1, 2003 and you were an employee of the company, you were able to become a participant as of the first day of the month after you completed your first hour of service with the company or any of its affiliates.



If you were an active participant in this Plan on December 31, 2003 (October 22, 2007 for Purdy Grandfathered Associates), you will continue to be an active participant until you are no longer an employee of a domestic division of MPB Corporation and are not otherwise covered by the Plan.

Once you became a Plan participant, you began to earn a retirement benefit. However, merely becoming a participant does not mean that you are guaranteed a benefit from the Plan. You will be entitled to a benefit only if you become vested and qualify for a retirement or a benefit upon termination of employment (see “When You are Eligible for a Pension”).

If You are Rehired If your employment terminates after December 31, 2003, you generally will not be eligible to participate in the Plan if you are rehired. There are two exceptions to this rule. First, you may resume your participation upon returning to active employment if, immediately preceding your return to active employment, you were laid off for less than 2 years or you were on a leave of absence of less than 2 years. Second, if you voluntarily quit or are otherwise terminated, you may resume participation provided you completed at least 1,000 hours of service during the employment year in which you quit or are otherwise terminated and you rehire during that same employment year. Your employment year is the one year period that begins on your date of hire and each subsequent anniversary of your date of hire.

If You Change Your Employment Status If you transfer from your current position to another position with the Company (or any of its affiliates) you will continue to participate in the Plan as long as you are not excluded from participation in the Plan (see “Covered Associates” on page 3). After your transfer, if you become eligible to participate as an active participant in (or become a covered employee under) any other component of the Retirement Plan or any other defined benefit retirement plan sponsored by the Company (or any of its affiliates), you will immediately cease to be eligible to participate in the Plan. However, you will be able to resume participation in Plan if you transfer back to a position that is eligible to participate in the Plan.

Years of Service If and when you are entitled to pension benefits is based on your age and your Vesting Service with the Company and its affiliates. The amount of your pension benefit under the Plan is based on your Credited Service. Vesting Service and Credited Service are counted differently for associates classified as full-time and associates classified as part-time.

Vesting Service - Full-Time Associates and Phased Retirees For periods prior to May 29, 1987, your Vesting Service includes all periods of Vesting Service taken into account under the Signal Companies, Inc. Retirement Plan.

On and after May 29, 1987, Vesting Service is generally calculated from the time you work your first hour at the Company or with any of its affiliates until you have a break in service.

Between May 29, 1987 and January 1, 2004, partial years of Vesting Service were credited in monthly increments. You were credited with one month for any calendar month in which you started employment during the first 15 days or in which you terminated employment after the first 15 days.

On and after January 1, 2004, partial years of Vesting Service are calculated by rounding to the nearest 1/12th of a year.

On and after January 1, 2004, if your employment terminates prior to your retirement date, you will receive credit for a full year of Vesting Service if you have worked at least 1,000 hours during the period that began on the anniversary date of your hire date that immediately preceded your termination of employment and ended on the date your employment terminated. If you did not work 1,000 hours during that period, you will get credit for any partial year of Vesting Service for which you are entitled.

For Purdy Grandfathered Associates, your Vesting Service includes all periods of Vesting Service taken into account under the Purdy Corporation Retirement Income Plan, and rules for Vesting Service after January 1, 2004 are generally applicable to your service after October 22, 2007.



Vesting Service – Part-Time Associates For periods prior to May 29, 1987, your Vesting Service includes all periods of Vesting Service taken into account under the Signal Companies, Inc. Retirement Plan.

A part-time associate will get credit for a year of Vesting Service for each of your employment years in which you complete at least 1,000 hours of service. Your employment year is the 12-month period that begins on your date of hire and each anniversary of your date of hire. You earn one hour of service for each hour you are paid for services performed for the Company or its affiliates or you are entitled to payment even though no services were performed due to vacation, holiday, illness, incapacity, layoff, jury duty, military duty or authorized leave of absence. If you do not complete 1,000 hours of service during an employment year, you will receive no credit for Vesting Service for that year.

Credited Service – Full-Time Associates and Phased Retirees For periods prior to May 28, 1987, your Credited Service includes all periods of service taken into account under The Signal Companies, Inc. Retirement Plan.

For periods on and after May 29, 1997, and before January 1, 2004, your Credited Service equals the total number of months of your uninterrupted employment between May 28, 1987, and December 31, 2003 in which you receive, or are entitled to receive, compensation.

A participant’s post-May 28, 1987, Credited Service also includes the following periods of time on and after May 28, 1987, and prior to January 1, 2004, regardless of whether or not you receive compensation from the Company:

Any period of absence from active employment with the Company due to service in the United States Armed Forces, provided participant is reemployed by the Company in accordance with applicable statutes following his discharge from military service; and

Any period of absence from active employment with the Company due to a Company directed or authorized leave of absence.

For periods on and after January 1, 2004, Credited Service equals your Vesting Service but with the following exclusions:

You do not receive Credited Service for any period of time in which you are not included in a group of employees that is eligible to participate in this Retirement Plan.

If you do not satisfy the Post-2003 Core Defined Benefit Requirements (see Calculating Your Retirement Benefit below); you do not receive Credited Service on and after January 1, 2004.

For Purdy Grandfathered Associates, rules for Credited Service after January 1, 2004, are generally applicable to your service after October 22, 2007.

Credited Service – Part-Time Associates For periods prior to May 29, 1987, your Credited Service includes all periods of service taken into account under The Signal Companies, Inc. Retirement Plan.

For periods on and after May 29, 1987, Credited Service equals your Vesting Service but with the following exclusions:

You do not receive Credited Service for any period of time in which you are not included in a group of employees that is eligible to participate in this Retirement Plan.

If you do not satisfy the Post-2003 Core Defined Benefit Requirements (see Calculating Your Retirement Benefit below); you do not receive Credited Service on and after January 1, 2004.

Vesting Date Your vesting date is the date you have a right to a benefit. You are vested in your accrued benefit on your normal retirement date or, if earlier, the date on which you complete five years of Vesting Service (see Normal Pension below).



Military Service If you leave the Company to serve in one of the uniformed services of the United States and subsequently return to employment, you may be entitled to contributions, benefits and service credit under the Plan for your period of qualified military service, as provided by the Uniformed Services Employment and Re-employment Rights Act.

Qualified military service is service in the uniformed services for which you are entitled to re-employment rights under that Act. For more information you should contact the Administrator.

If you die while performing qualified military service, your survivors will be entitled to any benefits provided under the Plan that they would have been entitled to receive if you had resumed employment immediately prior to your death, all additional benefit accruals and vesting service related to periods of leave for qualified military service had been counted, and you had terminated employment on your actual date of death.

Break in Service You are considered to have a break in service if you terminate employment with the Company or are laid off or are on a leave of absence for a period of more than 2 years.

You will not have a break in service if you are rehired by the Company or an affiliate within 12 months of your termination of employment. In such a situation, the period between your termination date and rehire date will count as Vesting Service. (If your termination of employment occurs while you are on a leave of absence, you must be rehired within 12 months of the date your leave of absence began in order to avoid a break in service.) In addition, if you are laid off, you must return to active employment within 2 years of the date of your layoff to avoid a break in service.

If you have a break in service for a period of at least one year and you have not completed at least 5 years of Vesting Service, you will lose all of your Vesting Service unless you return to work with the Company or an affiliate within 5 years of the start of your break in service.

Additionally, if you are a part-time associate and you do not complete more than 500 hours of service during an employment year, you will have a one year break in service. If you have one or more one-year breaks in service and you have not completed at least 5 years of Vesting Service, you will lose all of your Vesting Service unless, within 5 years of your break in service, you earn more than 500 hours of service during your employment year.

When You are Eligible for a Pension Retirement benefits are payable only after an election to retire has been made by an eligible associate who meets the age and/or years of service requirements outlined below.

Normal Pension You are eligible for a pension at the normal retirement age of 65. The normal retirement date is the first day of the month coinciding with or following your 65th birthday.

Early Pension You may be eligible to retire before you reach age 65, depending on your accumulated years of Vesting Service and your age. Two sets of eligibility requirements may apply to your early pension benefit:

The portion of your pension attributable to your Credited Service earned prior to January 1, 2004.

The portion of your pension attributable to your Credited Service earned on and after January 1, 2004.

It is possible that you will be able to begin to receive each portion of your benefit on different dates to the extent that you satisfy the different early retirement eligibility requirements on different dates.

Portions of your early pension benefit may be available as unreduced benefits on a future date. Depending on your age, portions of your early pension may also be reduced at different reduction rates. You may elect to defer commencement of a portion of your pension benefit if that portion provides for unreduced early pension benefits on a later date. Once you have notified the Timken Pension Service Center of your intent to retire, you will receive additional information regarding the option to defer your pension benefit.



Pension Attributable to Credited Service Earned Prior to January 1, 2004:

You are eligible for an early pension equal to that portion of your pension attributable to Credited Service earned prior to January 1, 2004, if:

You have 10 or more years of Vesting Service and you are at least age 55.

The portion of your early pension attributable to Credited Service prior to January 1, 2004, will be reduced by 1/3 of 1% for each of the first 60 months that your early retirement precedes the first day of the month coinciding with or next following your 60th birthday.

Pension Attributable to Credited Service Earned On and After January 1, 2004:

You are eligible for an early pension equal to that portion of your pension attributable to Credited Service earned on and after January 1, 2004 (October 22, 2007 for Purdy Grandfathered Associates), if:

You have 15 or more years of Vesting Service and you are at least age 55; or

You have 30 or more years of Vesting Service regardless of your age.

This portion of your early pension will be reduced by 4% for each year (measured to the nearest month) that your early retirement precedes your attainment of age 62.

Deferred Vested Pension If you leave the Company after you have at least five years of Vesting Service but before you are eligible for early retirement benefits, you will be eligible for a deferred retirement benefit at age 65 or between the ages of 55 and 65.

Your deferred vested pension is calculated in the same manner as if you had retired under a normal pension and is paid at age 65. You may request to receive your deferred vested pension at any time after your employment has ended. If you elect to receive your deferred vested pension at an age earlier than 65, your deferred vested pension is actuarially reduced to allow for your receipt of a pension for a longer period of time. In addition, certain pension payment options will be unavailable if you begin receiving your deferred vested pension before you reach your early retirement age.

Information regarding deferred vested pension is periodically sent to former employees who are entitled to these benefits. Therefore, it is extremely important that you notify the Company of any change in your address.

Latest Time for Payments to Start You or your beneficiary must begin to receive benefit payments by April 1 of the calendar year following the calendar year in which you attain age 70½. The Administrator will provide you with additional information if this age limitation applies to you.

Calculating Your Retirement Benefit Your pension benefit may consist of two pieces:

1. A benefit attributable to your Credited Service earned prior to January 1, 2004;

2. A benefit attributable to your Credited Service earned on or after January 1, 2004, if you satisfy the Post-2003 Core Defined Benefit Requirements under (a) or (b):

(a) You were an associate of the Company, or any of its affiliates on December 31, 2003, you were an active participant in a defined benefit plan sponsored by the Company or its affiliates on December 31, 2003, you had completed at least 5 years of Vesting Service as of December 31, 2003, and your age plus years of Vesting Service, as of December 31, 2003, equaled at least 50. (Your age and years of Vesting Service will be measured to the nearest completed day to determine if you satisfy the requirements in this paragraph); or



(b) You were an active participant in a collectively bargained defined benefit plan before becoming an employee of a domestic division of MPB Corporation of the Company and you continue to be credited with service for benefit accrual purposes under that collectively bargained defined benefit plan after your transfer to a domestic division of MPB Corporation.

You will not receive a pension benefit under the Retirement Plan attributable to years of Credited Service on or after January 1, 2004 (October 22, 2007 for Purdy Grandfathered Associates), if you do not satisfy the Post-2003 Core Defined Benefit Requirements, nor will you receive a pension benefit attributable to any time for which you do not have any Credited Service.

The requirements described in (a) and (b) above are referred to in this summary as the “Post-2003 Core Defined Benefit Requirements.”

The following terms will help you understand the calculation of your retirement benefits:

Base Pay for each calendar month is your fixed, basic and regularly recurring straight-time pay, which includes the amount, if any, by which your pay was voluntarily reduced in accordance with the MPB Employees' Savings Plan, any other similar qualified plan, or any flexible spending account plan as of November of the prior calendar year. Your monthly rate of base pay is deemed to be your hourly rate as of the November 1 of the prior calendar year times 2,080 hours, divided by 12.

Your monthly rate of Base Pay will be considered to continue in effect during any period of salary and benefit continuation and during any period of absence, layoff or sick leave provided that you retire, die, or return to work prior to the end of such leave of absence, layoff or sick leave. Base Pay does not include any special annual lump sum payments (which are one-time lump sum payments in lieu of merit increases).

Average Final Base Pay is your average monthly base pay during the 60 months in which you receive the greatest total amount of base pay out of the 120 full months preceding your date of severance. If you have fewer than 60 months of service from your date of employment to your date of termination, average final base pay will be based on your entire period of service.

Average Final Compensation is the average of your eligible compensation for the 5 highest-paid calendar years, whether consecutive or not, during the 10 calendar years preceding your retirement date or the date of your separation from service, if earlier.

Compensation, for purposes of the Plan, is your fixed, basic, and regularly recurring straight-time pay, including any amounts deferred under a qualified cash or deferred plan, salary reduction contributions to any cafeteria plan of any of the Companies, any additional shift differential pay, differential military wage payments, overtime, commissions or sales, production or non-incentive bonus payments, and so much of any annual yearend bonus or incentive compensation award paid in a year used to calculate Average Final Compensation (whether paid in cash or in securities) which does not exceed 50% of your fixed, basic and regularly recurring straight-time pay for such year, but excluding any earnings during part-time employment in which you are not eligible to participate in the Plan, earnings by an individual who has signed an individual employment agreement, a work performance agreement, or a personal services agreement while covered by such agreement (unless such agreement provides for coverage of such individual in the Plan), any lump sum severance payments (as defined in the MPB Termination of Employment policy dated January 1, 1990), vacation pay in lieu of time off, absence pay in lieu of time off, statutory or insured sick leave benefits, the value of a company car, the imputed income value of Company-paid life insurance, any relocation reimbursements, inducement or completion bonuses for periods of overseas or on-location employment, overseas or on-location differential pay, any profit sharing payments, any public or private retirement contributions or benefits, any retainers, any insurance benefits or Company-paid premiums, payments from any stock option and award plan or any savings and stock purchase plan or any other special benefits, including, but not limited to, special annual lump sum payments (which are one-time lump sum payments in lieu of merit increases); provided, however, that recurring overseas bonuses paid on a regular basis shall be included in Compensation.

Covered compensation is the average of the Social Security Taxable Wage Base for the 35-year period ending with the year in which the employee attains Social Security retirement age and varies by year of birth.



How Your Pension is Calculated Your Benefit for Credited Service Earned Prior To January 1, 2004

The portion of your benefit attributable to Credited Service prior to January 1, 2004, is calculated by the larger of one of two formulas. The formulas include your average final base pay, average final compensation, covered compensation, and your Credited Service. (This formula does not apply to Purdy grandfathered associates.)

Two formulas (Formula One and Formula Two) are used to determine the monthly benefit you may have earned for Credited Service prior to January 1, 2004. The formula that will provide you with the greater benefit will be used to calculate this portion of your benefit.

Formula One – pays you a monthly income equal to 1/12th of:

1.00% of average final compensation up to covered compensation multiplied by years of Credited Service prior to January 1, 2004, not to exceed 35 years,

plus

1.35% multiplied by average final compensation over covered compensation multiplied by years of Credited Service prior to January 1, 2004, not to exceed 35 years,

plus

1.00% of average final compensation multiplied by years of Credited Service in excess of 35 years,

OR

Formula Two - pays you a monthly income equal to 1/12th of:

1.25% of average final base pay multiplied by years of Credited Service.

For this portion of your benefit the calculation of your average final base pay will be the greater of your average final base pay determined as of December 31, 2003, or as of your retirement or the date of your separation from service. Your average final compensation will equal the greater of the following:

The average of your compensation for the 5 highest-paid calendar years during the last 10 calendar years preceding January 1, 2004;

OR

The average of your compensation for the 5 highest-paid calendar years, whether consecutive or not, during the 10 calendar years preceding your retirement date or the date of your separation from service, if applicable.

This portion of your benefit will be reduced by 4% for each year (measured to the nearest month) that you retire prior to age 60.

Your Benefit For Credited Service Earned On Or After January 1, 2004

If you satisfy the Post-2003 Core Defined Benefit Requirements, you will be entitled to earn a benefit attributable to Credited Service on and after January 1, 2004 (on and after October 22, 2007, for Purdy Grandfathered Participants).

Your monthly normal retirement benefit for the portion of your benefit attributable to Credited Service on and after January 1, 2004, equals 1/12th of the amount determined according to the following formula:

0.75% of your Average Final Compensation

times

your years and months of Credited Service after December 31, 2003.

This portion of your benefit will be reduced by 4% for each year (measured to the nearest month) that you retire prior to age 62.



Your Benefits if you Transferred in to This Plan Prior To January 1, 1992

If you transferred in to this Plan prior to January 1, 1992, and prior to your transfer you were a participant in another defined benefit pension plan of an affiliate of MPB Corporation, your benefit under this Plan will equal:

The amount you would have been entitled to under this Plan if you had been an employee covered under this Plan since the date you entered service with the affiliate of MPB Corporation;

minus

The total yearly amount of pension benefits you receive from any other pension plan to which MPB or any of its affiliates makes contributions.

Examples Example #1 – Participant meets the Post-2003 Core Defined Benefit Requirement

Jim has 28 years of Credited Service and retires at age 65. He earned 15 years of service before January 1, 2004. His monthly average final base pay is $2,600 at December 31, 2003, and $3,000 at retirement. His monthly average final compensation at retirement is $3,300. His monthly covered compensation at retirement is $4,900. Jim’s monthly pension will be the sum of Calculation 1 and Calculation 2.

Calculation 1 Monthly benefit earned for service through 12/31/2003 is the greater of Formula 1 and 2:

Formula 1 1% of the smaller of average final compensation and covered compensation plus 1.35% of average final compensation minus covered compensation (but not less than zero) times years of Credited Service through 12/31/2003 Jim’s Benefit under Formula 1

$33.00 + 0

$33.00 x 15 $495.00

Formula 2 1.25% of the average final base pay at retirement ($3,000) times years of Credited Service through 12/31/2003

Jim’s Benefit under Formula 2

$37.50 x 15

$562.50

Jim’s Benefit – Calculation 1

Jim’s Benefit for service through 12/31/2003 $562.50

Calculation 2 Monthly benefit earned for service after 12/31/2003

0.75% of monthly average final compensation ($3,300) times years of Credited Service after 12/31/2003 Jim’s Benefit for service after 12/31/2003

$24.75 x 13 $321.75

JIM’S TOTAL BENEFIT

The sum of Calculation 1 and Calculation 2 $884.25

Example #2 – Participant does not meet the Post-2003 Core Defined Benefit Requirements

Julie was age 32 with 10 years of Credited Service as of December 31, 2003. Her age plus service was less than 50, so she did not meet the Post-2003 Core Defined Benefit Requirements. She retires at age 65. Her monthly average final compensation is $3,500 at December 31, 2003 and $8,000 at retirement. Her monthly average final base pay is $2,500 at December 31, 2003 and $5,700 at retirement. Her covered compensation at retirement is $10,300. Julie’s monthly pension calculation is shown below.



Calculation 1 Monthly benefit earned for service through 12/31/2003 is the greater of:

Formula 1 1% of the smaller of average final compensation and covered compensation plus 1.35% of average final compensation minus covered compensation (but not less than zero) times years of Credited Service through 12/31/2003 Julie’s Benefit under Formula 1

$80.00 + 0

$80.00 x 10 $800.00

Formula 2 1.25% of the average final base pay times years of Credited Service through 12/31/2003 Julie’s Benefit under Formula 2

$71.25 x 10 $712.50

JULIE’S TOTAL BENEFIT

The greater of Formula 1 or Formula 2 $800.00

Example #3 – Purdy Grandfathered Participant meets the Post-2003 Core Defined Benefit Requirement

John has 10 years of Credited Service and retires at age 65. His monthly average final compensation at retirement is $4,000.

Monthly benefit earned for service after 10/22/2007

0.75% of $4,000 times years of Credited Service after 10/22/2007 John’s Benefit for service after 10/22/2007

$30.00 x 10 $300.00

JOHN’S TOTAL BENEFIT

$300.00

Example #4 – 40 years of Credited Service and age 55

Carol has 40 years of Credited Service and retires at age 55. She earned 27 years of service before January 1, 2004. Her monthly average final compensation is $6,000 at December 31, 2003, and $6,300 at retirement. Her monthly average final base pay is $5,700 at December 31, 2003, and $5,900 at retirement. Her monthly covered compensation at retirement is $6,100. Carol’s monthly pension will be the sum of Calculation 1 and Calculation 2.

Calculation 1

Monthly benefit earned for service through December 31, 2003, is the greater of:

Formula 1 1% of the smaller of average final compensation and covered compensation plus 1.35% multiplied by average compensation minus covered compensation (but not less than zero) times years of Credited Service through 12/31/2003 unreduced benefit times early commencement factor Carol’s Benefit under Formula 1

$61.00 + 2.70

$63.70 x 27

$1,719.90 x 80%

$1,375.92 Formula 2 1.25% of the average final base pay

times years of Credited Service through 12/31/2003 unreduced benefit times early commencement factor Carol’s Benefit under Formula 2

$73.75 x 27

$1,991.25 x 80%

$1,593.00 Carol’s Benefit – Calculation 1

Carol’s Benefit for service through 12/31/2003 $1,593.00



Calculation 2

Monthly benefit earned for service after December 31, 2003:

0.75% of $6,300 times years of Credited Service after 12/31/2003 unreduced benefit times early commencement factor Carol’s Benefit for service after 12/31/2003

$47.25 x 13 $614.25 x 72% $442.26

CAROL’S TOTAL BENEFIT

The sum of Calculation 1 and Calculation 2 $2,035.26

How Your Benefits Are Paid You can choose from a variety of payment options to select the form of payment that best suits your needs and the needs of your family.

Forms of Payment When you apply for retirement, you can choose how your retirement benefit is paid to you. Each of the payment options available provides you with a benefit that is actuarially equivalent to all of the other options. All forms of payment described below provide a lifetime monthly benefit to the retiree.

Single Life Annuity Option (normal form of payment for unmarried participants)

If you are not married at the time of retirement and do not elect another option, your benefit will be payable as a Single Life Annuity. You will receive a monthly benefit for your lifetime only. When you die, all payments will stop.

Automatic 50% Joint and Survivor Annuity (normal form of payment for married participants)

If you are married at the time of retirement and do not elect another option, you will receive a monthly benefit for your lifetime. If you die and your spouse survives you, your spouse will continue to receive half of the benefit you were receiving before your death. Your spouse is automatically your beneficiary. This form of payment is called the Joint and 50% Survivor Annuity. It provides a reduced benefit during your lifetime and then 50% of that amount for your spouse's lifetime after your death. Your benefit is reduced to stretch payments over two lifetimes.

Optional Forms of Payment Available

Single Life Annuity

Under this option, you receive a monthly benefit for your lifetime. Upon your death, all payments will stop and no further benefit payments will be made.

Joint and 25% Survivor Annuity

The Joint and 25% Survivor Annuity will provide you with a reduced benefit for your lifetime with 25% of your reduced benefit payable to your spouse, if he/she survives you.





Note: If you are electing to commence a deferred vested benefit, you may only elect a 50% or 75% joint and survivor annuity.



Certain and Continuous Annuity

The Certain and Continuous pension options provide a reduced monthly pension during your entire lifetime. If you die before receiving pension payments equal to the guaranteed amount, your reduced pension continues to be paid to your spouse or named beneficiary until the guaranteed amount is fully paid.

You continue to receive your pension after the guaranteed amount has been paid until your death. When you die after the guaranteed payment is satisfied, your spouse or beneficiary is not entitled to a beneficiary benefit.

There are Certain and Continuous options available for that portion of your benefit attributable to Credited Service earned prior to January 1, 2004:

5-Year Certain and Continuous – guarantees payments to 60 months; and

10-Year Certain and Continuous – guarantees payments to 120 months; and

15-Year Certain and Continuous – guarantees payments to 180 months.

One Certain and Continuous option is available for that portion of your retirement benefit attributable to Credited Service earned on or after January 1, 2004 (October 22, 2007, for Purdy Grandfathered Associates):

10-Year Certain and Continuous – guarantees payments for 120 months.

Lump Sum Option

Under this option, in lieu of a monthly benefit, you may elect to receive one lump sum payment equal to the actuarial equivalent present value of your total pension benefit. The lump sum is determined using interest rates and mortality tables provided by the Internal Revenue Service. Note that the interest rates and mortality table provided by the Internal Revenue Service are adjusted annually. You may not receive a portion of your benefit as a lump sum and a portion as a monthly payment. If you elect the lump sum payment option, no future pension payments will be made to you or your beneficiaries.

If you elect to have the lump sum distributed directly to you, 20% will be withheld for federal income tax as mandated by law. Your other option is to directly roll over your lump sum into an IRA account, Roth IRA, another qualified retirement plan, a 403(b) plan or a 457(b) plan maintained by a governmental entity that agrees to accept the rollover. If you elect a direct rollover, there will be no withholding for any federal or state income tax.

If you die after you elect this lump sum option, but before the actual distribution date, the lump sum payment you would have received will be made to your designated beneficiary.

Spousal Consent

If you are married, your spouse must consent in writing to the form of payment election and if you designate someone other than your spouse as beneficiary. The consent must be notarized or witnessed by a representative of the Plan.

Automatic Lump Sum

Your benefit will automatically be paid to you in a single payment if the present value of your benefit is $1,000 or less. If, upon termination of employment, your vested benefit meets this criteria, a lump sum payment will be made. In this event, all obligations of the Plan are satisfied upon distribution.

Changes in a Form of Payment/Beneficiary

You may change your form of payment or your beneficiary at any time before your benefit payments begin. Once you begin receiving benefit payments, you are not permitted to change the form of payment or person named as your beneficiary. This is true even if you marry, remarry, or divorce after benefit payments begin. Your election will be valid only if your spouse consents. Your spouse's consent must be notarized or witnessed by a representative of the Plan. All changes must be completed on forms provided by the Company before your benefits begin.



If You are Rehired If you retire and are subsequently re-employed by the Company, you will continue to be credited with Vesting Service in accordance with the rules described earlier in this SPD. Upon your later retirement, your pension benefit may be recalculated to take into account your additional earnings and service if your additional earnings and service are entitled to be counted under the Retirement Plan.

If you are re-employed full-time after retirement and, upon your subsequent termination of employment, you have not qualified for another type of pension, you will receive the same type of pension you had when you first retired. To determine if you are eligible for another type of pension benefit, your Vesting Service before your first retirement is added to your Vesting Service after being re-employed.

If your pension payments have commenced, they will be suspended upon your re-employment by the Company or any of its affiliates unless you work less than 40 hours per month.

Death Benefits Pre-Retirement Death Spouse Benefit The primary purpose of the Plan is to provide you with income during retirement. However, the Plan may help provide financial security for your spouse if you die while actively employed and have been married to your spouse for at least one year and you have at least five years of Vesting Service at the time of your death.

If you have completed at least 15 years of Vesting Service prior to your death, your surviving spouse will be entitled to a benefit equal to (a) plus (b):

(a) 50% of the portion of your benefit attributable to Credited Service prior to January 1, 2004, that you would have received if you had retired just before your death, had chosen a single life annuity method of payment, and had begun to receive your benefit at your earliest commencement date. If you were an active employee eligible for an early retirement at the time of your death, this benefit will be reduced by 1/3 of 1% for each month the benefit begins prior to the date you would have reached age 60. If you were not an active employee or not eligible for an early retirement at your death, this benefit will be actuarially reduced for commencement prior to age 65. (This benefit (a) does not apply to Purdy Grandfathered Associates.)

(b) 50% of the portion of your benefit, if any, attributable to Credited Service on and after January 1, 2004 (October 22, 2007, for Purdy Grandfathered Associates), that you would have received if you had retired just before your death and had chosen a single life annuity method of payment. The benefit payable to your spouse is reduced 4% for each year it begins before the date you would have reached age 62.

If you have completed at least 5 but less than 15 years of Vesting Service prior to your death, your surviving spouse will be eligible for a benefit equal to (c) plus (d):

(c) 50% of the portion of your benefit attributable to Credited Service prior to January 1, 2004, that you would have received if you had retired just before your death, had chosen a single life annuity method of payment, and had begun to receive your benefit at your earliest commencement date. If you were an active employee eligible for an early retirement at the time of your death, this benefit will be reduced by 1/3 of 1% for each month the benefit begins prior to the date you would have reached age 60. If you were not an active employee or not eligible for an early retirement at your death, this benefit will be actuarially reduced for commencement prior to age 65. (This benefit (c) does not apply to Purdy Grandfathered Associates.)

(d) 50% of the portion of your benefit, if any, attributable to Credited Service on and after January 1, 2004 (October 22, 2007, for Purdy Grandfathered Associates), that you would have received if you had retired just before your death and had chosen a 50% Joint and Survivor method of payment and began to receive your benefit at your earliest commencement date.

If you were an active associate eligible for early retirement as of the date of your death, and have no spouse when you die, or your spouse dies after these benefits have commenced, your surviving children under age 21 will be eligible for the benefit shown above attributable to Credited Service earned prior to January 1, 2004, until they reach age 21.



If you were a participant in a prior plan that merged into the Signal Companies, Inc. Retirement Plan prior to May 28, 1987, this benefit would be at least equal to the benefit your spouse would have received as of May 28, 1987, under that plan.

As an active associate, there is no cost for the pre-retirement spousal benefit. If you leave the Company with a vested benefit, there is a reduction in the benefit of 5/10 of 1% (.5%) for each year of coverage after you leave the Company and before you begin receiving your retirement benefit.

If you continue your eligibility for the pre-retirement spouse’s benefit after your break in service, your spouse will automatically receive a portion of your pension benefit if you die prior to starting your pension payments. The benefit will equal one-half of the monthly pension you would have received if you had survived until your earliest retirement date and chosen to receive your benefit under the 50% joint and survivor annuity. Your surviving spouse may elect to begin payment of this benefit anytime between the date of your death and the date you would have been age 65. If the benefit begins before the date you would have been age 65, it may be reduced for early commencement.

If you elect to opt out of the pre-retirement spouse benefit, your spouse must consent in writing to the election and the consent must be notarized.

Benefit payments to your spouse will continue until the first day of the month following your spouse’s date of death.

Lump Sum Option In lieu of the monthly benefit, your surviving spouse may elect to receive an immediate lump sum payment equal to the actuarially equivalent present value of the monthly benefit described in this section.

Post Retirement Death Benefit If you die while receiving benefits under the Plan, any benefits payable to your spouse or beneficiary will be controlled by the form of payment you selected (see Forms of Payment). For example, if you were receiving payments as a single life annuity, then no amounts are payable after your death.

How to Apply for Benefits Pension Benefit Estimate If you are actively employed you can log on to https://www.mypension.timken.com to access your monthly estimated pension benefit. This secure website offers modeling and estimating tools to help you build a plan to achieve your retirement goals. First time users must register on the site by clicking on the “create or reset your password” link on the right of the landing page. Once you log on, from the home page you can:

Send a secure email message to the Timken Pension Service Center.

Display your estimated monthly pension benefit and lump sum at age 65 based on your current pay.

Estimate future pension benefits, up to three different scenarios, based on different assumptions and retirement dates.

Save your estimated scenarios so you can model your benefit in the future.

Navigate to other helpful websites like Retirement Plan Services, Medicare and many others.

Access your Summary Plan Description to review pension plan information.

You should request an estimate from the Timken Pension Service Center 45 to 60 days prior to your anticipated retirement date to ensure enough time to make decisions regarding your retirement and to complete the necessary processing. This calculation will indicate the estimated amount of your benefit based on your requested retirement date. Your final pension will be calculated after your retirement, taking into consideration earnings and service through your retirement date.



Retirement Process Benefit payments under the Plan are not automatic. You must complete the necessary forms to initiate your benefits. Retirement kits take time to process. You should request a retirement kit 45 to 60 days in advance of the time you want your benefit to start by calling the Timken Pension Service Center. Your first pension payment will be made as soon as administratively feasible after you complete your retirement kit paperwork. All retirement kit forms and paperwork for benefits and elections under the Plan should be submitted to the Timken Pension Service Center.

If you choose a retirement date, complete the required documentation, and die prior to your retirement date, you will be deemed to have retired on the date of your death and your selected benefit options will be honored.

Claims Procedure The Plan Administrator is responsible for reviewing and determining the amounts payable from the Plan and advising each Participant or beneficiary of those amounts. The Plan Administrator will either approve your application for benefits or explain why your claim is denied.

If Your Claim is Denied

If your claim is denied, you will be provided with the following:

The specific reason for the denial;

The specific Plan references relied upon in making the decision;

Descriptions of any additional information needed to approve your application;

An explanation of why the additional information is necessary; and

An explanation of the application review procedures and the time limits applicable to such procedures, including a statement of your right to bring a civil action following an appeal of an adverse determination.

Appealing Your Denied Claim

If you disagree with a decision relating to your benefit claim, you or your authorized representative may ask for a review by submitting a written request to the Plan Administrator. Your request should include the issues and comments you feel are important. You may also review pertinent documents if you wish. These will be provided to you free of charge upon request. The review will take into account all comments, documents, records, and other information submitted by you relating to your claim, without regard to whether such information was submitted or considered in the initial benefit determination.

Applicable Time Frames

The Plan's procedures set the following limits on the amount of time you may take to make your request for a claim, for the Plan Administrator to respond, and for you to appeal a decision:

Action Deadline for Completion of Pension Claim

Plan Administrator’s Notice of Initial Claim Application Decision

90 days after receipt by the Plan Administrator of your claim (180 days if you receive a written notice from the Plan Administrator, within the initial 90-day period, indicating that additional time is needed to process your claim due to special circumstances)

Your Request to Appeal Claim Denial to the Plan Administrator

60 days after your receipt of a denied claim

Plan Administrator's Notice of Appeal Decision

60 days after your appeal request (120 days if you receive a written notice from the Plan Administrator, within the initial 60 day period, that special circumstances requires an extension)



No action in law or in equity may be brought to recover benefits under this Plan until the appeal rights provided have been exercised and the Plan benefits requested in such initial request and subsequent appeals have been denied in whole or in part.

Additional Plan Information

Cost of the Plan The full cost of the Plan is paid by Timken through contributions made to the Plan’s trust fund, which are actuarially determined. You are not required – nor are you permitted – to make contributions to the Plan.

Plan Assets The Plan’s assets are held in a trust fund. The trust fund is a separate and distinct fund. Assets in the fund are held exclusively to pay Plan benefits.

The assets cannot revert to or be paid to Timken, unless the Plan is terminated and there are enough assets to pay all benefits earned by all Participants.

Plan Administration Timken Corporation is the Plan Administrator and is responsible for managing the day-to-day operations of the Retirement Plan. The Plan Administrator distributes plan summaries and all other required forms in addition to providing participants with information regarding their eligibility for pension benefits. The Plan Administrator has discretion to interpret the provisions of the Retirement Plan. As a fiduciary, the Plan Administrator acts on your behalf to see that the Plan is administered fairly, honestly and in accordance with standards outlined in the law and the terms of the Plan document.

Assignment of Benefits Your benefits generally are not assignable, but may be subject to claims of creditors to the extent permitted by law, or unless required by a qualified domestic relations order, discussed below.

Recovery of Overpayments If you receive an erroneous payment or payment in excess of what you should have received, your future benefit payments may be reduced to recover the erroneous or excess payment. Even if you have received your pension benefit in the form of a lump sum, you are responsible to reimburse the Plan to recover an erroneous or excess payment.

Qualified Domestic Relations Orders Generally, creditors have no access to your benefits. An exception is a qualified domestic relations order (QDRO). A QDRO is a court order or decree that provides for child support, alimony payments or the division of marital property. A QDRO may provide for the payment of some of your benefits to a spouse, a former spouse or a dependent. If a court order is received regarding your benefits, you will be notified.

If you are going through a divorce settlement that affects your interest in the Plan, you should request that your attorney contact QDRO Consultants Co. to make certain that the appropriate documents are filed and that the court order in question is actually a QDRO that complies with the governing legislation.

All QDROs are reviewed and approved/denied by QDRO Consultants Co. All pertinent documentation and requests for QDRO information should be addressed to:

QDRO Consultants Co. 3071 Pearl Road Medina, OH 44256 Attention: Timken QDRO Compliance Team Phone: 800-527-8481 Fax: 330-722-2735

You can obtain a copy of the Plan’s QDRO procedures at no cost by contacting QDRO Consultants Co.



Top Heavy Plan Provision Pension plans are subject to federal law and regulations. One of these regulations requires that pension plans be tested periodically to make sure that certain participants are not earning more than 60% of the Plan's total benefits. If it turns out that certain participants of the Plan are earning more than 60% of the Plan's total benefits, the Plan is considered “top heavy.”

There are special minimum vesting and benefits requirement formulas for plans that become top heavy. The Plan is currently not top heavy and is not expected to become top heavy. If this should happen, however, you will receive information on any change in vesting requirements or benefits.

Limitations on Benefits There are limitations on the benefits you may receive. Current law limits the amount of retirement benefits you may receive from the Plan as well as the amount of compensation used in calculating your benefit.

Pursuant to federal law, if the Plan’s funding percentage falls below certain thresholds, mandatory limitations are placed on:

your right to receive accelerated distributions (such as lump sum payments),

Plan amendments which increase benefits,

benefit accruals, and

In general, none of the benefit limitations associated with the Plan’s funding percentage will apply if the Plan’s funding percentage is 80% or greater. You would be notified in the event any of the funding limitations become operative.

Plan Amendment or Termination Although the Company intends to continue the Plan indefinitely, it realizes that circumstances not now foreseen, or circumstances beyond its control, may make it either impossible or inadvisable to continue to sponsor the Plan. Therefore, the Company has the right to amend, modify, or terminate the Plan in whole, or in part, at any time at its option.

A decision to change or terminate the Plan may be due to business conditions, changes in the law governing such plans, or any other reason.

If the Plan is terminated, all Participants will stop earning additional benefits as of the date the Plan is terminated. All benefits will become 100% vested on Plan termination to the extent funded. If there are assets remaining after these liabilities are satisfied, the assets will be paid back to the Company. If the assets of the Plan are not sufficient to cover all benefits, the Plan cannot terminate unless it satisfies certain statutory tests.

Pension Benefit Guaranty Corporation Your pension benefits under this Plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. If the Plan terminates (ends) without enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most people receive all of the pension benefits they would have received under their plan, but some people may lose certain benefits.

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 time the Plan terminates; (3) benefits that are not vested because you have not worked long enough for the Company; (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 amounts of your benefits are not guaranteed, you still may receive some of those benefits from the PBGC depending on how much money your Plan has and on how much the PBGC collects from employers.

For more information about the PBGC and the benefits it guarantees, contact the PBGC, P.O. Box 151750, Alexandria, Virginia, 22315-1750 or call 1-800-400-7242 or 202-326-4000 (not a toll-free number). TTY/ASCII users may call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to 1-800-400-7241. Additional information about the PBGC's pension insurance program is available through the PBGC's website on the Internet at http://www.pbgc.gov.

How You Can Lose Benefits The purpose of this SPD is to explain when and how the Retirement Plan provides you or your survivor with benefits. It is important, too, that you understand the conditions under which benefits are less than expected or not paid at all, for instance:

If you are actively employed by the Company and die before you become vested and eligible for any type of retirement benefits, no payment is made from the Retirement Plan.

You do not accumulate Credited Service for periods when you are not a Retirement Plan participant.

You do not receive a pension if you voluntarily quit the Company or are discharged by the Company before you become vested and eligible for a pension.

If you choose a joint pension option and your named beneficiary dies after you retired and began receiving a pension, you continue to receive monthly payments in the reduced amount according to the option elected.

The Company may be required by law to pay a portion of your pension benefit to an alternate payee according to the terms of a Qualified Domestic Relations Order. This type of order may require a deduction from your monthly pension to pay for alimony or child support.

Your benefits may be reduced to recover erroneous or excess benefit payments made to you. See the section of this summary titled “Recovery of Overpayments” for more information.

Effect on Taxes The Plan has been designed to meet Internal Revenue Code requirements to take advantage of special tax treatment. This means that the benefits that you earn are not currently taxable to you. You are taxed only when you actually receive benefits from the Plan. The taxation depends on when and how your benefits are paid to you.

In general, any payment you receive from the Plan will be subject to ordinary income tax. In addition to income taxes, if you receive a lump sum payment before age 59-1/2 due to your termination, it may also be subject to a 10% federal and state early distribution penalty tax.

You may be able to defer paying income taxes and the early distribution penalty tax on a lump sum payment you receive from the Plan by directly transferring the payment into another employer's qualified retirement plan or an IRA. This is called a "direct rollover." If a distribution is paid to you, you will be able to roll it over to an IRA provided you do so within 60 days of your receipt of the payment. There are some exceptions to this rule.

Any lump sum payment made directly to you is subject to 20% federal tax withholding. Tax withholding is not required if you elect a direct rollover. You will be provided with a summary of the rules governing direct rollovers and the tax treatment of lump sum distributions received from the Plan. However, the tax treatment of distributions is quite complex and subject to frequent changes. You should consult your tax advisor before you receive a distribution from the Plan.

No Guarantee of Employment The Plan should not be considered an employment contract between you and the Company. It does not guarantee you the right to be continued in the Company's employment, nor does it limit the Company’s right to discharge any employee.

Upon termination of employment, no employee will have the right to or interest in any of the Plan's assets except for the benefits to which he or she is entitled under the Plan.



Your Rights Under ERISA As a participant in the Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan participants shall be entitled to:

Receive Information About Your Plan and Benefits Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites and union halls, all documents governing the Plan, including insurance contracts and collective bargaining agreements, 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.

Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated Summary Plan Description. The Administrator may request a reasonable charge for the copies.

Receive a copy of the Annual Funding Notice.

Obtain a statement telling you whether you have a right to receive a pension at normal retirement age (age 65) 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 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 every twelve (12) months. The Plan must provide the statement free of charge.

Prudent Actions by Plan Fiduciaries 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. The people who operate your plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your rights under ERISA.

Enforce Your Rights If your claim for a pension benefit is denied or ignored, 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 Plan Administrator 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 Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a 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 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.

Assistance with Your Questions If you have any questions about your Plan, contact Timken’s Benefit Department. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue NW, Washington, D.C. 20210.



You may also obtain certain publications about your rights and responsibilities under ERISA by calling the Employee Benefits Security Administration publications hotline.

Administrative Information The Plan Administrator has the authority to control and manage the operation and administration of the Plan with benefits provided in accordance with the provisions of the Plan document. The Plan Administrator and its designee have discretion to interpret the terms of the Plan, and their decisions are conclusive and binding (subject to applicable claims and appeals). Inquiries should be made to the Plan Administrator listed below.

Timken Pension Service Center P.O. Box 5952 Hopkins, MN 55343-9357 1-844-396-8945

Plan Administrator Benefits Department The Timken Company 4500 Mt. Pleasant St. NW North Canton, OH 44720 Phone: 1-877-899-6481

Plan Name The Timken-Latrobe-MPB-Torrington Retirement Plan

Employer Identification Number (EIN) 34-0577130

Plan Number The Plan Number is 020

Type of Plan and Type of Administration The Plan is a self-funded defined benefit retirement plan.

Plan Trustee Northern Trust Benefit Payment Services 50 S LaSalle C2N Chicago, IL 60603 Phone: 888-271-0086

Plan Sponsor/Employer The Timken Company 4500 Mt. Pleasant St. NW North Canton, OH 44720

Agent for Service of Legal Process Corporate Secretary The Timken Company 4500 Mt. Pleasant St. NW North Canton, OH 44720

Service of legal process may also be made upon the Plan Administrator or Trustee.



Plan Year January 1 to December 31

Participating Company Location Keene Precision Bearing Plant Lebanon Precision Bearing Plant Manchester (ADS Headquarters)

The Timken Company Retirement Plan for MPB · PDF fileThe Timken Company Retirement Plan for...

Documents

Transcript of The Timken Company Retirement Plan for MPB · PDF fileThe Timken Company Retirement Plan for...