Pension Plan (2002)Full Document 

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                          ONE LIBERTY PROPERTIES, INC.
                                  PENSION PLAN

                                TABLE OF CONTENTS


                                                                                                                       
                                                          ARTICLE I
                                                         DEFINITIONS

                                                         ARTICLE II
                                                       ADMINISTRATION

2.1 POWERS AND RESPONSIBILITIES OF THE EMPLOYER...........................................................................12
2.2 DESIGNATION OF ADMINISTRATIVE AUTHORITY...............................................................................13
2.3 POWERS AND DUTIES OF THE ADMINISTRATOR................................................................................13
2.4 RECORDS AND REPORTS...................................................................................................14
2.5 APPOINTMENT OF ADVISERS...............................................................................................15
2.6 PAYMENT OF EXPENSES...................................................................................................15
2.7 CLAIMS PROCEDURE......................................................................................................15
2.8 CLAIMS REVIEW PROCEDURE...............................................................................................15

                                                         ARTICLE III
                                                         ELIGIBILITY

3.1 CONDITIONS OF ELIGIBILITY.............................................................................................16
3.2 EFFECTIVE DATE OF PARTICIPATION.......................................................................................16
3.3 DETERMINATION OF ELIGIBILITY..........................................................................................16
3.4 TERMINATION OF ELIGIBILITY............................................................................................16
3.5 OMISSION OF ELIGIBLE EMPLOYEE.........................................................................................17
3.6 INCLUSION OF INELIGIBLE EMPLOYEE......................................................................................17
3.7 ELECTION NOT TO PARTICIPATE...........................................................................................17

                                                         ARTICLE IV
                                                 CONTRIBUTION AND ALLOCATION

4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION.........................................................................17
4.2 TIME OF PAYMENT OF EMPLOYER CONTRIBUTION..............................................................................18
4.3 ACCOUNTING AND ALLOCATIONS............................................................................................18
4.4 MAXIMUM ANNUAL ADDITIONS..............................................................................................20
4.5 ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS.............................................................................22
4.6 TRANSFERS FROM QUALIFIED PLANS........................................................................................22



                                                                                                                       
                                                          ARTICLE V
                                                         VALUATIONS

5.1 VALUATION OF THE TRUST FUND...........................................................................................24
5.2 METHOD OF VALUATION...................................................................................................24

                                                         ARTICLE VI
                                         DETERMINATION AND DISTRIBUTION OF BENEFITS

6.1 DETERMINATION OF BENEFITS UPON RETIREMENT.............................................................................25
6.2 DETERMINATION OF BENEFITS UPON DEATH..................................................................................25
6.3 DETERMINATION OF BENEFITS IN EVENT OF DISABILITY......................................................................26
6.4 DETERMINATION OF BENEFITS UPON TERMINATION............................................................................26
6.5 DISTRIBUTION OF BENEFITS..............................................................................................29
6.6 DISTRIBUTION OF BENEFITS UPON DEATH...................................................................................33
6.7 TIME OF SEGREGATION OR DISTRIBUTION...................................................................................37
6.8 DISTRIBUTION FOR MINOR BENEFICIARY....................................................................................37
6.9 LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN........................................................................37
6.10 QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION......................................................................37
6.11 DIRECT ROLLOVER......................................................................................................37

                                                         ARTICLE VII
                                          AMENDMENT, TERMINATION, MERGERS AND LOANS

7.1 AMENDMENT.............................................................................................................38
7.2 TERMINATION...........................................................................................................39
7.3 MERGER OR CONSOLIDATION...............................................................................................39
7.4 LOANS TO PARTICIPANTS.................................................................................................40

                                                        ARTICLE VIII
                                                          TOP HEAVY

8.1 TOP HEAVY PLAN REQUIREMENTS...........................................................................................41
8.2 DETERMINATION OF TOP HEAVY STATUS.....................................................................................41

                                                         ARTICLE IX
                                                        MISCELLANEOUS

9.1 PARTICIPANT'S RIGHTS..................................................................................................44
9.2 ALIENATION............................................................................................................45
9.3 CONSTRUCTION OF PLAN..................................................................................................45



                                                                                                                       
9.4 GENDER AND NUMBER.....................................................................................................45
9.5 LEGAL ACTION..........................................................................................................46
9.6 PROHIBITION AGAINST DIVERSION OF FUNDS................................................................................46
9.7 BONDING...............................................................................................................46
9.8 EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE............................................................................47
9.9 INSURER'S PROTECTIVE CLAUSE...........................................................................................47
9.10 RECEIPT AND RELEASE FOR PAYMENTS.....................................................................................47
9.11 ACTION BY THE EMPLOYER...............................................................................................47
9.12 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY...................................................................47
9.13 HEADINGS.............................................................................................................48
9.14 APPROVAL BY INTERNAL REVENUE SERVICE.................................................................................48
9.15 UNIFORMITY...........................................................................................................49
9.16 WAIVER OF FUNDING....................................................................................................49

                                                          ARTICLE X
                                                   PARTICIPATING EMPLOYERS

10.1 ADOPTION BY OTHER EMPLOYERS..........................................................................................50
10.2 REQUIREMENTS OF PARTICIPATING EMPLOYERS..............................................................................50
10.3 DESIGNATION OF AGENT.................................................................................................51
10.4 EMPLOYEE TRANSFERS...................................................................................................51
10.5 PARTICIPATING EMPLOYER CONTRIBUTION..................................................................................51
10.6 AMENDMENT............................................................................................................51
10.7 DISCONTINUANCE OF PARTICIPATION......................................................................................51
10.8 ADMINISTRATOR'S AUTHORITY............................................................................................52


                          ONE LIBERTY PROPERTIES, INC.
                                  PENSION PLAN

                  THIS PLAN, hereby adopted this __________ day of
______________________________, by One Liberty Properties, Inc. (herein referred
to as the "Employer").

                              W I T N E S S E T H:

                  WHEREAS, the Employer desires to recognize the contribution
made to its successful operation by its employees and to reward such
contribution by means of a Money Purchase Pension Plan for those employees who
shall qualify as Participants hereunder;

                  NOW, THEREFORE, effective January 1, 1 999, (hereinafter
called the "Effective Date"), the Employer hereby establishes a Money Purchase
Pension Plan (the "Plan") for the exclusive benefit of the Participants and
their Beneficiaries, on the following terms:

                                    ARTICLE I
                                   DEFINITIONS

         1.1 "Act" means the Employee Retirement Income Security Act of 1974, as
it may be amended from time to time.

         1.2 "Administrator" means the Employer unless another person or entity
has been designated by the Employer pursuant to Section 2.2 to administer the
Plan on behalf of the Employer.

         1.3 "Affiliated Employer" means any corporation which is a member of a
controlled group of corporations (as defined in Code Section 414(b)) which
includes the Employer; any trade or business (whether or not incorporated) which
is under common control (as defined in Code Section 414(c)) with the Employer;
any organization (whether or not incorporated) which is a member of an
affiliated service group (as defined in Code Section 414(m)) which includes the
Employer; and any other entity required to be aggregated with the Employer
pursuant to Regulations under Code Section 414(o).

         1.4 "Aggregate Account" means, with respect to each Participant, the
value of all accounts maintained on behalf of a Participant, whether
attributable to Employer or Employee contributions, subject to the provisions of
Section 8.2.

         1.5 "Anniversary Date" means December 31st.

         1.6 "Annuity Starting Date" means, with respect to any Participant, the
first day of the first period for which an amount is paid as an annuity or any
other form.

         1.7 "Beneficiary" means the person to whom the share of a deceased
Participant's total account is payable, subject to the restrictions of Sections
6.2 and 6.6.


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         1.8 "Code" means the Internal Revenue Code of 1986, as amended or
replaced from time to time.

         1.9 "Compensation" with respect to any Participant means such
Participant's wages as defined in Code Section 3401(a) and all other payments of
compensation by the Employer (in the course of the Employer's trade or business)
for a Plan Year for which the Employer is required to furnish the Participant a
written statement under Code Sections 6041(d), 6051(a)(3) and 6052. Compensation
must be determined without regard to any rules under Code Section 3401(a) that
limit the remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural
labor in Code Section 3401(a)(2)).

                  For purposes of this Section, the determination of
Compensation shall be made by:

                           (a) including amounts which are contributed by the
                  Employer pursuant to a salary reduction agreement and which
                  are not includible in the gross income of the Participant
                  under Code Sections 125, 402(e)(3), 402(h)(1)(B), 403(b) or
                  457(b), and Employee contributions described in Code Section
                  414(h)(2) that are treated as Employer contributions.

                  For a Participant's initial year of participation,
Compensation shall be recognized for the entire Plan Year.

                  Compensation in excess of $150,000 shall be disregarded. Such
amount shall be adjusted for increases in the cost of living in accordance with
Code Section 401(a)(17), except that the dollar increase in effect on January 1
of any calendar year shall be effective for the Plan Year beginning with or
within such calendar year. For any short Plan Year the Compensation limit shall
be an amount equal to the Compensation limit for the calendar year in which the
Plan Year begins multiplied by the ratio obtained by dividing the number of full
months in the short Plan Year by twelve (12). In applying this limitation, the
family group of a Highly Compensated Participant who is subject to the Family
Member aggregation rules of Code Section 414(q)(6) as in effect prior to the
Small Business Job Protection Act of 1996 because such Participant is either a
"five percent owner" of the Employer or one of the ten (10) Highly Compensated
Employees paid the greatest "415 Compensation" during the year, shall be treated
as a single Participant, except that for this purpose Family Members shall
include only the affected Participant's spouse and any lineal descendants who
have not attained age nineteen (19) before the close of the year. If, as a
result of the application of such rules the adjusted limitation is exceeded,
then the limitation shall be prorated among the affected Family Members in
proportion to each such Family Member's Compensation prior to the application of
this limitation, or the limitation shall be adjusted in accordance with any
other method permitted by Regulation.

                  If, as a result of such rules, the maximum "annual addition"
limit of Section 4.4(a) would be exceeded for one or more of the affected Family
Members, the prorated Compensation of all affected Family Members shall be
adjusted to avoid or reduce any excess. The prorated Compensation of any
affected Family Member whose allocation would exceed the limit shall be adjusted
downward to the level needed to provide an allocation equal to such limit. The
prorated Compensation of affected Family Members not affected by


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such limit shall then be adjusted upward on a pro rata basis not to exceed each
such affected Family Member's Compensation as determined prior to application of
the Family Member rule. The resulting allocation shall not exceed such
individual's maximum "annual addition" limit. If, after these adjustments, an
"excess amount" still results, such "excess amount" shall be disposed of in the
manner described in Section 4.5(a) pro rata among all affected Family Members.

                  For purposes of this Section, if the Plan is a plan described
in Code Section 413(c) or 414(f) (a plan maintained by more than one Employer),
the limitation applies separately with respect to the Compensation of any
Participant from each Employer maintaining the Plan.

         1.10 "Contract" or "Policy" means any life insurance policy, retirement
income or annuity policy or annuity contract (group or individual) issued

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