Kodak 2002 Annual Report Download - page 109

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Proxy Statement
104
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 and Mr. Palumbo, 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, and all other employees who elected to participate, including Mr. Palumbo.
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 years ending
immediately prior to retirement or termination of employment. Participating compensation, in the case of the named executive officers,
is base salary and EXCEL 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 resulting 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 3 20 25 30 35 40
$ 500,000 $24,000 $160,000 $200,000 $240,000 $ 280,000 $294,000
750,000 36,000 240,000 300,000 360,000 420,000 441,000
1,000,000 48,000 320,000 400,000 480,000 560,000 588,000
1,250,000 60,000 400,000 500,000 600,000 700,000 735,000
1,500,000 72,000 480,000 600,000 720,000 840,000 877,000
1,750,000 84,000 560,000 700,000 840,000 980,000 1,029,000
2,000,000 96,000 640,000 800,000 960,000 1,120,000 1,176,000
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.