Kodak 2000 Annual Report Download - page 99

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27
Retirement Plan
The Company funds a tax-qualified defined benefit pension plan for virtually all U.S. employees. Effective
January 1, 2000, the Company amended the plan to include a cash balance feature. All of the named executive
officers, with the exception of Mr. Brust, participate in the non-cash balance portion of the plan. The cash
balance feature covers all new employees hired after March 31, 1999, including Mr. Brust.
Retirement income benefits are based upon an employee’s average participating compensation (APC). The
plan defines APC as one third of the sum of the employee’s participating compensation for the highest
consecutive 39 periods of earnings over the 10-year period ending immediately prior to retirement or
termination of employment. Participating compensation, in the case of the named executive officers in the
Summary Compensation Table, is base salary and Management Variable Compensation Plan awards, including
allowances in lieu of salary for authorized periods of absence, such as illness, vacation or holidays.
For an employee with up to 35 years of accrued service, the annual normal retirement income benefit is
calculated by multiplying the employee’s years of accrued service by the sum of (a) 1.3% of APC, plus
(b) 0.3% of APC in excess of the average Social Security wage base. For an employee with more than 35
years of accrued service, the amount is increased by 1% for each year in excess of 35 years.
The retirement income benefit is not subject to any deductions for Social Security benefits or other offsets.
The normal form of benefit is an annuity, but a lump sum payment is available in limited situations.
PENSION PLAN TABLE - Annual Retirement Income Benefit
Straight Life Annuity Beginning at Age 65
Years of Service
Remuneration 2 20 25 30 35 40
$ 500,000 $ 16,000 $ 160,000 $ 200,000 $ 240,000 $ 280,000 $ 294,000
1,000,000 32,000 320,000 400,000 480,000 560,000 588,000
1,500,000 48,000 480,000 600,000 720,000 840,000 882,000
2,000,000 64,000 640,000 800,000 960,000 1,120,000 1,176,000
2,500,000 80,000 800,000 1,000,000 1,200,000 1,400,000 1,470,000
3,000,000 96,000 960,000 1,200,000 1,440,000 1,680,000 1,764,000
3,500,000 112,000 1,120,000 1,400,000 1,680,000 1,960,000 2,058,000
4,000,000 128,000 1,280,000 1,600,000 1,920,000 2,240,000 2,352,000
4,500,000 144,000 1,440,000 1,800,000 2,160,000 2,520,000 2,646,000
5,000,000 160,000 1,600,000 2,000,000 2,400,000 2,800,000 2,940,000
NOTE: For purposes of this table, Remuneration means APC. To the extent that an employee’s annual
retirement income benefit exceeds the amount payable from the Company’s funded plan, it is paid from one or
more unfunded supplementary plans.