Kodak 2003 Annual Report Download - page 112

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Proxy Statement
112
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. Messrs. Carp and Morley are the only named executive officers who participate in the non-cash balance portion
of the plan. The cash balance feature covers all new employees hired after March 31, 1999, including Messrs. Perez and Brust, and all other employees
who elected to participate, including Mr. Shih.
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 ten years ending immediately prior to retirement
or termination of employment. Participating compensation, in the case of the named executive officers, is base salary and Executive Compensation for
Excellence and Leadership 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 Benefits— Straight Life Annuity Beginning at Age 65
Years of Service
Remuneration 30 35 40
$ 500,000 $ 232,089 $ 270,771 $ 284,309
750,000 352,089 410,771 431,309
1,000,000 472,089 550,771 578,309
1,250,000 592,089 690,771 725,309
1,500,000 712,089 830,771 872,309
1,750,000 832,089 970,771 1,019,309
2,000,000 952,089 1,110,771 1,166,309
2,225,000 1,060,089 1,236,771 1,298,609
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.