Motorola 2008 Annual Report Download - page 115

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January 1, 2007, eligible compensation was capped at the IRS limit plus $175,000 or, for those already in excess
of the Cap as of January 1, 2007, the eligible compensation used to compute such employee’s MSPP benefit for all
future years will be the greater of: (i) such employee’s eligible compensation as of January 1, 2007 (frozen at that
amount), or (ii) the relevant Cap for the given year. Additionally, effective January 1, 2009, the MSPP was frozen
as to any new participants after January 1, 2009 unless such participation was due to a prior contractual
entitlement.
In February 2007, the Company amended the Regular Pension Plan and the MSPP, modifying the definition of
average earnings. For the years ended prior to December 31, 2007, benefits were calculated using the rolling
average of the highest annual earnings in any five years within the previous ten calendar year period. Beginning in
January 2008, the benefit calculation was based on the set of the five highest years of earnings within the ten
calendar years prior to December 31, 2007, averaged with earnings from each year after 2007. Also, effective
January 2008, the Company amended the Regular Pension Plan, modifying the vesting period from five years to
three years.
In December 2008, the Company amended the Regular Pension Plan, the Officers’ Plan and the MSPP.
Effective March 1, 2009, (i) no participant shall accrue any benefit or additional benefit on and after March 1,
2009, and (ii) no compensation increases earned by a participant on and after March 1, 2009 shall be used to
compute any accrued benefit. Additionally, no service performed on and after March 1, 2009, shall be considered
service for any purpose under the MSPP. The Company recognized a $237 million curtailment gain associated with
this plan amendment.
The net periodic pension cost (benefit) for the Regular Pension Plan, Officers’ Plan and MSPP and
Non-U.S. plans was as follows:
Regular Pension Plan
Years Ended December 31 2008 2007 2006
Service cost $98 $ 133 $ 150
Interest cost 323 311 309
Expected return on plan assets (391) (350) (329)
Amortization of:
Unrecognized net loss 52 107 115
Unrecognized prior service cost (31) (27) (5)
Curtailment gain (232) ——
Net periodic pension cost (benefit) $(181) $ 174 $ 240
Officers’ Plan and MSPP
Years Ended December 31 2008 2007 2006
Service cost $3 $4 $5
Interest cost 778
Expected return on plan assets (2) (3) (4)
Amortization of:
Unrecognized net loss 145
Unrecognized prior service cost (1) (1) —
Curtailment gain (5) ——
Settlement loss 564
Net periodic pension cost $8 $17 $18
107