Common use of Amount of Allowance Clause in Contracts

Amount of Allowance. An eligible individual shall receive a severance allowance according to the following schedule, with allowance of each week to be computed in accordance with the provisions of Section 5 of Article 12 relating to vacation pay. At the time of release if Your Benefit Service is You Are Entitled to Receive 4 to 5 years 4 weeks 5 to 6 years 5 weeks 6 to 7 years 6 weeks 7 to 8 years 7 weeks 8 to 9 years 8 weeks 9 to 10 years 9 weeks 10 years and over 10 weeks If you are covered under the ArcelorMittal Basic Life Insurance Plan (the “Basic Life Plan”) on the date that you are released, the Company will continue your basic life insurance benefits, as applicable, for the same number of weeks of salary which you are entitled to receive under the Plan. Notwithstanding any other provision of this Agreement, any severance allowance payable to an employee who is eligible for an immediate unreduced pension shall be reduced by (a) the present value of the incremental pension benefits as defined below, and (b) the value of retiree health benefits as determined in accordance with the provisions of the Age Discrimination in Employment Act of 1967, as amended. As used in the preceding sentence, “the present value of the incremental pension benefits” shall be understood to mean the present value of the difference between (a) the total amount of pension payable to such employee prior to age 62; and (b) the portion of such pension not attributable to the occurrence of the contingent event of permanent closure. The interest rates used to determine present value shall be the PBGC rates for single life annuities in effect for the month in which severance allowance would otherwise be paid.