Allstate 2014 Annual Report Download - page 65

9MAR201204034531
Executive Compensation — Tables
then (2) reduce the amount described in (1) by the options. The lump sum under the final average pay
amount actually payable under the applicable ARP benefit is calculated in accordance with the applicable
formula(s). The normal retirement date under the SRIP interest rate and mortality as required under the
is age 65. If eligible for early retirement under the Internal Revenue Code. The lump sum payment under
ARP, the employee also is eligible for early retirement the cash balance benefit is generally equal to a
under the SRIP. SRIP benefits are not funded and are participant’s account balance. Payments from the SRIP
paid out of Allstate’s general assets. are paid in the form of a lump sum using the same
interest rate and mortality assumptions used under the
Credited Service ARP.
No additional service credit beyond service with Timing of Payments
Allstate or its predecessors is granted under the ARP
or the SRIP to any of the named executives. Eligible employees are vested in the normal ARP and
Messrs. Shebik and Wilson have combined service SRIP retirement benefits on the earlier of the
with Allstate and its former parent company, Sears, completion of three years of service or upon reaching
Roebuck and Co., of 26.2 and 21.8 years, respectively. age 65.
As a result, a portion of their retirement benefits will Final average pay benefits are payable at age 65. A
be paid from the Sears pension plan. Consistent with participant with final average pay benefits may be
the pension benefits of other employees with Sears entitled to a reduced early retirement benefit on or
service who moved to Allstate during the spin-off from after age 55 if he or she terminates employment after
Sears in 1995, Messrs. Shebik’s and Wilson’s final completing 20 or more years of vesting service. A
average pay pension benefits under the ARP and the participant earning cash balance benefits who
SRIP are calculated as if each had worked his terminates employment with at least three years of
combined Sears-Allstate career with Allstate through vesting service is entitled to a lump sum benefit equal
December 31, 2013, and then are reduced by amounts to his or her cash balance account balance.
earned under the Sears pension plan.
The following SRIP payment dates assume a
Eligible Compensation retirement or termination date of December 31, 2014:
Under both the ARP and SRIP, eligible compensation • Messrs. Shebik’s and Wilson’s SRIP benefits earned
consists of salary, annual cash incentive awards, and prior to 2005 would become payable as early as
certain other forms of compensation, but does not January 1, 2015, or following death or disability.
include long-term cash incentive awards or income Benefits earned after 2004 would be paid on July 1,
related to equity awards. Compensation used to 2015, or following death or disability.
determine benefits under the ARP is limited in • Mr. Civgin’s SRIP benefit would be paid on
accordance with the Internal Revenue Code. For final January 1, 2017, or following death.
average pay benefits, average annual compensation is
the average compensation of the five highest • Ms. Greffin’s SRIP benefits would be payable as
consecutive calendar years within the last ten early as January 1, 2016, or following death. A
consecutive calendar years through 2013. portion of Ms. Greffin’s SRIP benefits would be
payable as early as January 1, 2015, following
Payment Options disability.
Payment options under the ARP include a lump sum, • Mr. Winter’s SRIP benefit would be paid on July 1,
straight life annuity, and various survivor annuity 2015, or following death.
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