Fannie Mae 2010 Annual Report Download - page 353

expenses and, from time to time, may represent uninvested contributions or reallocation of plan assets. The
target allocations for plan assets are from 70% to 80% for equity securities, 25% to 30% for fixed income
securities and 0% to 5% for all other types of investments. The plan fiduciary periodically assesses our asset
allocation to assure it is consistent with our plan objective.
Expected Benefit Payments
The following table displays the benefits we expect to pay in each of the next five years and in the aggregate
for the subsequent five years for our pension plans and other postretirement plan and are based on the same
assumptions used to measure our benefit obligation as of December 31, 2010.
Pension
Benefits
Before Medicare
Part D Subsidy
Medicare
Part D Subsidy
Other Postretirement Benefits
Expected Retirement Plan Benefit Payments
(Dollars in millions)
2011 ........................................... $ 33 $ 9 $1
2012 ........................................... 36 9 1
2013 ........................................... 40 10 1
2014 ........................................... 44 11 1
2015 ........................................... 49 12 1
2016—2020 ...................................... 348 73 8
Defined Contribution Plans
Retirement Savings Plan
The Retirement Savings Plan is a defined contribution plan that includes a 401(k) before-tax feature, a regular
after-tax feature and a Roth after-tax feature. Under the plan, eligible employees may allocate investment
balances to a variety of investment options.
We match employee contributions in cash up to 6% of eligible compensation (base salary, overtime pay and
eligible incentive compensation) for employees who are not active in our defined benefit pension plan and up
to 3% of eligible compensation (base salary only) for employees who are active in our defined benefit pension
plan. Matching contributions for employees who are not active in our defined benefit pension plan are 100%
vested and matching contributions for employees who are active in our defined benefit pension plan are fully
vested after five years of service.
All employees, with the exception of those who participated in the Executive Pension Plan, receive a 2%
contribution regardless of employee contributions to this plan. Participants are fully vested in this 2%
contribution after three years of service.
For the years ended December 31, 2010, 2009 and 2008, the maximum employee contribution as established
by the IRS was $16,500, $16,500 and $15,500, respectively, with additional “catch- up” contributions
permitted for participants aged 50 and older of $5,500, $5,500 and $5,000, respectively.
There was no option to invest directly in our common stock for the years ended December 31, 2010, 2009 and
2008. We recorded expense for this plan of $47 million, $42 million and $35 million for the years ended
December 31, 2010, 2009 and 2008, respectively.
F-95
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)