14 pension plans the company sponsors a retirement

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Unformatted text preview: 1992, a new program (“Plan 2”) was created under which the retirement benefits were based principally on defined-contribution accumulations and the disability and death benefits were based on a defined-benefits formula. On attaining retirement, participants could either opt for a defined monthly retirement benefit or withdraw a capital sum, both determined on the basis of the contributions accumulated relating to the participant. Substantially, all active employees elected to transfer to Plan 2 while the retired employees remained in Plan 1. In September 1998, the Company implemented another plan (“Plan ARUS”), which automatically replaced Plan 2, with retirement benefits based solely on defined contribution accumulations. Upon implementation of Plan ARUS, each participant was assigned an 30 Aracruz Celulose S.A. Notes to Consolidated Financial Statements Expressed in thousands of United States dollars (unless otherwise stated) individual account with his/her accumulated benefit at the date of implementation; also, the option for...
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