Allstate 2011 Annual Report Download - page 58

Extra Service and Pension Benefit Enhancement
No additional service is granted under the ARP or the SRIP. Generally, Allstate has not granted additional
service credit outside of the actual service used to calculate ARP and SRIP benefits. However, Ms. Mayes has a
supplemental nonqualified retirement benefit agreement which provides for additional cash balance pay credits.
Ms Mayes’ enhanced pension benefit assumes the maximum 7% pay credits under the cash balance formula less
any amounts payable from ARP or SRIP. Eligible service is calculated from Ms. Mayes’ employment date.
Mr. Wilson has 17.8 years of combined service with Sears, Roebuck and Co., Allstate’s former parent
company, and Allstate. As a result of his prior Sears service, a portion of Mr. Wilson’s retirement benefits will be
paid from the Sears pension plan. Similar to the pension benefits of other employees with prior Sears service who
were employed by Allstate at the time of the spin-off from Sears in 1995, Mr. Wilson’s pension benefits under the
ARP final average pay benefit and the SRIP are calculated as if he had worked his combined Sears-Allstate
career with Allstate, and then are reduced by the amounts earned under the Sears pension plan.
Non-Qualified Deferred Compensation
The following table summarizes the non-qualified deferred compensation contributions, earnings, and account
balances of our named executives in 2010. All amounts relate to The Allstate Corporation Deferred Compensation
Plan (‘‘Deferred Compensation Plan’’).
NON-QUALIFIED DEFERRED COMPENSATION AT FISCAL YEAR-END 2010
Aggregate
Executive Registrant Aggregate Balance
Contributions Contributions in Aggregate Earnings Withdrawals/ at Last
in Last FY Last FY in Last FY Distributions FYE
Name ($) ($) ($)(1) ($) ($)(2)
Mr. Wilson 0 0 83,104 0 462,459
Mr. Civgin 0 0 0 0 0
Mr. Lacher 0 0 0 0 0
Ms. Mayes 0 0 0 0 0
Mr. Winter 0 0 0 0 0
(1) Aggregate earnings were not included in the named executive’s prior year compensation.
(2) There are no amounts reported in the Aggregate Balance at Last FYE column that were reported in the 2010, 2009 or 2008 Summary
Compensation Tables.
In order to remain competitive with other employers, we allow employees, including the named executives,
whose annual compensation exceeds the amount specified in the Internal Revenue Code (e.g., $245,000 in 2010),
to defer up to 80% of their salary and/or up to 100% of their annual cash incentive award that exceeds that
amount under the Deferred Compensation Plan. Allstate does not match participant deferrals and does not
guarantee a stated rate of return.
Deferrals under the Deferred Compensation Plan are credited with earnings, or are subject to losses, based
on the results of the investment option or options selected by the participants. The investment options available in
2010 under the Deferred Compensation Plan are Stable Value, S&P 500, International Equity, Russell 2000, and
Bond Funds—options available in 2010 under our 401(k) plan. Under the Deferred Compensation Plan, deferrals
are not actually invested in these funds, but instead are credited with earnings or losses based on the funds’
investment experience, which are net of administration and investment expenses. Because the rate of return is
based on actual investment measures in our 401(k) plan, no above-market earnings are paid. Similar to
participants in our 401(k) plan, participants can change their investment elections daily. Investment changes are
effective the next business day. The Deferred Compensation Plan is unfunded; participants have only the rights of
general unsecured creditors.
Deferrals under the Deferred Compensation Plan are segregated into Pre 409A balances and Post 409A
balances. A named executive may elect to begin receiving a distribution of a Pre 409A balance upon separation
from service or in one of the first through fifth years after separation from service. In either event, the named
executive may elect to receive payment of a Pre 409A balance in a lump sum or in annual cash installment
payments over a period of two to ten years. An irrevocable distribution election is required before making any
Post 409A deferrals into the plan. The distribution options available to the Post 409A balances are similar to those
available to the Pre 409A balances, except the earliest distribution date is six months following separation from
48
Proxy Statement