Freddie Mac 2014 Annual Report Download - page 300

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FEDERAL HOME LOAN MORTGAGE CORPORATION
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN II
ARTICLE I
Establishment of the Plan
1.1 Purpose. The Corporation hereby adopts the Plan effective as of the Effective
Date. The Plan is a non-qualified plan intended to make up to Executives employer provided
contributions and/or benefits under the Transitional Plan and under the Thrift/401(k) Plan to the
extent not provided for under the SERP, that Executives lose due to:
(a) The cap on annual Compensation which can be considered for inclusion
under the Transitional Plan and the Thrift/401(k) Plan, as applicable, set by Code section
401(a)(17); and
(b) The application of Code section 415.
The Corporation intends that the Plan shall at all times be maintained on an unfunded basis for
federal income tax purposes under the Code, and administered as a “top hat” plan exempt from
the substantive requirements of ERISA. The Plan is intended to provide deferred compensation
to a select group of management or highly compensated employees within the meaning of
ERISA Sections 201(2), 301(a)(3), 401(a)(1), and 4021(b)(6).
No assets will be set aside to fund the Corporation’s liability under the Plan.
1.2 Effective Date. The Plan is effective as of the Effective Date.
ARTICLE II
Definitions
For purposes of this Plan, the following terms shall have the meanings indicated, unless
the context clearly indicates otherwise.
2.1 Account. A bookkeeping record established and maintained under this Plan for
each Participant solely to calculate the amount payable to each Participant under the Plan. The
Account shall reflect any Supplemental Benefit Credits, all Deemed Earnings as described in
Section 4.4, and all distributions.
2.2 Administrator. The Compensation Committee of the Board, or any successor to
that committee, or such other committee or individual(s) designated by the Board as the
Administrator for purposes of the Plan.
2.3 Affiliate. The Corporation and any corporation which is a member of a controlled
group of corporations (as defined in Code section 414(b)) which includes the Corporation, or any
trade or business (whether or not incorporated) which is under common control (as defined in
Code section 414(c)) with the Corporation, or any service organization (whether or not
incorporated) which is a member of an affiliated service group (as defined in Code section
414(m)) which includes the Corporation and any other entity required to be aggregated with the