Fannie Mae 2006 Annual Report Download - page 207

present value and the assumptions underlying these amounts, see “Notes to Consolidated Financial
Statements—Note 14, Employee Retirement Benefits.”
(3)
Mr. Mudd’s employment agreement provides that if Mr. Mudd’s benefit payments are in the form of a joint and 100%
survivor annuity, the payments will be actuarially reduced to reflect the joint life expectancy of Mr. Mudd and his
spouse.
(4)
Mr. Blakely is eligible for retirement under our supplemental pension plans and the Fannie Mae Retirement Plan.
Ms. St. John was eligible for early retirement under the Executive Pension Plan and the Fannie Mae Retirement Plan.
Nonqualified Deferred Compensation
The table below provides information on the non-qualified deferred compensation of the named executives in
2006, including compensation deferred under our Elective Deferred Compensation Plan II, our Career
Deferred Compensation Plan, and our Performance Share Program.
Elective Deferred Compensation Plans
Our Elective Deferred Compensation Plan II allows eligible employees, including our named executives, to
defer up to 50% of their salary and up to 100% of their bonus to future years, as determined by the named
executive. Deferred amounts are deemed to be invested in mutual funds or in an investment option with
earnings benchmarked to our long-term borrowing rate, as designated by the participants. The deferred
compensation plan is an unfunded plan. The Elective Deferred Compensation Plan II applies to compensation
that is deferred after December 31, 2004. The prior deferred compensation plan, the Elective Deferred
Compensation Plan I, continues to operate for compensation deferred under that plan on or prior to
December 31, 2004. Similar to the Elective Deferred Compensation Plan II, the Elective Deferred
Compensation Plan I provides that deferred amounts are deemed to be invested in mutual funds or in an
investment option with earnings benchmarked to our long-term borrowing rate, as designated by the
participants, and is an unfunded plan.
Career Deferred Compensation Plan
Our Career Deferred Compensation Plan allowed participants to defer compensation until their retirement. The
plan is frozen to new participants and, while accounts continue to be credited with rates of return, no further
contributions can be made to the plan. The Career Deferred Compensation Plan is funded by a rabbi trust, a
special type of trust the assets of which are subject to the claims of Fannie Mae’s creditors.
Deferred Performance Share Program Payments
We have adopted guidelines under our 1993 Stock Compensation Plan that permit participants in the
performance share program to defer payment of their awards until a later date or a specified event such as
retirement. Under these guidelines, participants can choose to have their deferred PSP payments converted into
a hypothetical investment portfolio.
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