ADT 2005 Annual Report Download - page 47

As part of his employment agreement, Mr. Lytton is provided with a Supplemental Retirement
Benefit. Commencing at age 62, or upon his retirement if after age 62, Mr. Lytton will receive a
monthly annuity based upon the product of 6.25% multiplied by his years of service with Tyco,
multiplied by the highest average of the sum of his monthly base salary and actual annual bonus
(spread equally over the bonus period for which it is paid) from Tyco during any consecutive 36-month
period within the 60-month period prior to his termination. This monthly annuity is offset by any
benefits provided under a defined benefit plan maintained by his immediately preceding employer and
his benefits attributable to the company match under Tyco’s 401(k) and supplemental defined
contribution plans, adjusted to reflect any earnings. Mr. Lytton’s normal retirement date is at age 62;
retirement benefits are available at an earlier age but would be reduced by 0.25% for each month or
partial month that the benefit commences prior to age 62. Subject to certain limitations, Mr. Lytton
may elect to receive the actuarial equivalent of his annuity in the form of a lump sum payment or
other annuity form. The following table shows the estimated annualized benefits payable under the
terms of Mr. Lytton’s agreement for the compensation and years of credited service shown, assuming
that benefits are paid in the form of a life annuity upon normal retirement at age 62.
Years of Credited Service and Related Estimated
Annual Benefits Payable Upon Normal Retirement
Compensation 5 10 15
$1,291,883 $ 403,713 $ 807,427 $1,211,140
$1,531,883 $ 478,713 $ 957,427 $1,436,140
$1,771,883 $ 553,713 $1,107,427 $1,661,140
$2,011,883 $ 628,713 $1,257,427 $1,886,140
$2,251,883 $ 703,713 $1,407,427 $2,111,140
$2,491,883 $ 778,713 $1,557,427 $2,336,140
$2,731,883 $ 853,713 $1,707,427 $2,561,140
$2,971,883 $ 928,713 $1,857,427 $2,786,140
$3,211,883 $1,003,713 $2,007,427 $3,011,140
$3,451,883 $1.078,713 $2,157,427 $3,236,140
$3,732,106 $1,166,283 $2,332,566 $3,498,849
Mr. Lytton is currently age 57 and has three years of service. The amounts in the table shown
above would be reduced by any amounts attributable to benefits provided under a defined benefit plan
maintained by his immediately preceding employer (vesting ratably each month over eight years) and
the amounts attributable to the company match in Tyco’s defined contribution plans as described above.
Mr. Lytton’s pension benefit vests ratably each month over his first five years of service; he was 60%
vested as of September 30, 2005. Upon a change of control, Mr. Lytton’s benefit becomes fully vested
and is paid out immediately.
All eligible employees of Tyco Electronics paid in Germany are entitled to receive retirement
benefits from Tyco. Tyco has established a defined benefit pension plan solely for this purpose.
Dr. Gromer, as an employee of Tyco Electronics in Germany, is entitled to receive from Tyco upon
retirement at age 65 a defined pension benefit that is determined primarily based on his annual base
salary as of three years prior to the date of his retirement and his years of service with Tyco at the time
of his retirement.
The following table sets forth the estimated annual benefits payable to Dr. Gromer under the
pension plan for the annualized monthly salary as of three years prior to retirement and the years of
2006 Proxy Statement 29