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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
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This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.
- Spring '08