ADT 2006 Annual Report Download - page 39

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. Mr. Lytton recently made an election to receive payment in the form of a lump
sum upon termination of employment in accordance with transition rules to recently enacted tax
legislation.
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
$1,400,000 $ 437,500 $ 875,000 $1,312,500
$1,650,000 $ 515,625 $1,031,250 $1,546,875
$1,900,000 $ 593,750 $1,187,500 $1,781,250
$2,150,000 $ 671,875 $1,343,750 $2,015,625
$2,400,000 $ 750,000 $1,500,000 $2,250,000
$2,650,000 $ 828,125 $1,656,250 $2,484,375
$2,900,000 $ 906,250 $1,812,500 $2,718,750
$3,150,000 $ 984,375 $1,968,750 $2,953,125
$3,400,000 $1,062,500 $2,125,000 $3,187,500
$3,650,000 $1,140,625 $2,281,250 $3,421,875
$3,900,000 $1,218,750 $2,437,500 $3,656,250
Mr. Lytton is currently age 58 and has four 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 80%
vested as of September 30, 2006. 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 pension benefit 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 under the pension plan for the
annualized monthly salary as of three years prior to retirement and the years of credited services
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