First Data 2007 Annual Report Download - page 172

C. 1.3% of Average Final Compensation multiplied by Credited Service in excess of ten years.
D. $72 multiplied by Credited Service.
Average Final Compensation is the average of the highest five (out of the last ten) consecutive calendar years of Compensation, up to and including the
year the participant's benefit is frozen. Compensation in any year for calendar years after 1989 is determined as the sum of the base rate of compensation
(including any elective deferrals) on December 31 of the prior calendar year, commissions received during the prior calendar year, and overtime pay and
incentive awards (including bonuses) received during the current calendar year. For calendar years before 1990, W-2 wages are used to determine
Compensation. The Retirement Plan covers such earnings up to the limit imposed by Internal Revenue Code Section 401(a)(17).
Credited Service includes years and months of employment with the Company, starting on the participant's date of hire and ending as of the
participant's freeze date. For Mr. Duques, Credited Service includes his period of employment with American Express.
Participants become fully vested in their retirement benefit upon the completion of five years of service or the attainment of age 65. Vested participants
who terminate prior to becoming eligible for early retirement (age 55 and 10 years of service) may choose to receive an unreduced benefit at age 65. They
may also choose to commence their benefits as early as age 55, with early retirement reductions of 7% per year from age 65. Vested participants who
terminate after becoming eligible for early retirement, may commence their benefit as early as age 60 on an unreduced basis, with subsidized early retirement
reductions of 5% per year from age 60. Vested participants who terminate after becoming eligible for early retirement may also receive their benefit on an
unreduced basis after age 55 if their age plus service total 90 or more when payments commence.
If the participant is disabled prior to retirement (and after attaining 5 years of service), the participant's benefit is determined based on Average Final
Compensation as of the participant's date of disability and Credited Service before and after the date of disability (up through the participant's freeze date).
Benefits can commence as early as the date of disability and are reduced for commencement prior to the attainment of age 60 with 10 years of service (unless
the participant's attained age and years of service total 90 or more). Upon death prior to retirement, if the participant is fully vested and survived by his or her
spouse, a pre-retirement survivor annuity is payable. The pre-retirement survivor annuity is equal to 50% of the accrued benefit in the Retirement Plan,
reduced for early commencement, and is payable at the participant's earliest retirement age.
The Retirement Plan offers several optional forms of payment, including joint and survivor annuities, certain and life annuities, and level income
annuities. The benefit paid under any of these options is reduced so as to be equivalent to the life annuity benefit produced by the formula described above.
The normal payment form is a single life annuity for unmarried participants and an unreduced 50% joint and survivor annuity for married participants. The
optional 100% joint and survivor annuity form of payment for married participants is reduced so as to be equivalent to the 50% joint and survivor annuity
described above.
First Data Corporation Excess Benefit Retirement Plan
The Excess Benefit Retirement Plan covers employees of the Company who are participants in the Retirement Plan and whose Compensation exceeds
the Internal Revenue Code Section 401(a)(17) limit with respect to any plan year. Like the Retirement Plan, benefit accruals under the Excess Benefit
Retirement Plan are frozen as of December 30, 1997 for most participants and as of December 30, 1998 for remaining participants.
The accrued benefit under the Excess Benefit Retirement Plan equals the accrued benefit that would be payable under the terms of the Retirement Plan
in the form of a joint and survivor annuity for a married participant, and in the form of a single life annuity for an unmarried participant if such benefit were
calculated without regard to the Internal Revenue Code Section 415 limitation and as if (i) the 401(a)(17) limitation for years prior to 1996 were $235,840 and
(ii) the 401(a)(17) limitation for 1996 and later years were $1,000,000. In applying this definition of accrued benefit with respect to each participant, the
accrued benefit equals the sum of A and B, where A is equal to the accrued benefit under the Retirement Plan determined by taking into account the
participant's Average Final Compensation that would be taken into account under the Retirement Plan as of the participant's freeze date (using the lesser of
their Compensation and $235,840) but using Credited Service as of December 31, 1995, and B is equal to the accrued benefit under the Retirement Plan
determined by taking into account the participant's Average Final Compensation that would be taken into account under the Retirement Plan as of the
participant's freeze date (using the lesser of their Compensation and $1,000,000) but using Credited Service accrued under the Retirement Plan during 1996
and all subsequent years (ceasing as of the participant's freeze date).
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