Motorola 2009 Annual Report Download - page 110

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102
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 closed to new participants unless such participation was required under 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. In addition,
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 in 2008.
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 2009 2008 2007
Service cost $14 $ 98 $ 133
Interest cost 336 323 311
Expected return on plan assets (380) (391) (350)
Amortization of:
Unrecognized net loss 78 52 107
Unrecognized prior service cost —(31) (27)
Curtailment gain —(232) —
Net periodic pension cost (benefit) $48 $(181) $ 174
Officers’ Plan and MSPP
Years Ended December 31 2009 2008 2007
Service cost $— $3 $ 4
Interest cost 677
Expected return on plan assets (2) (2) (3)
Amortization of:
Unrecognized net loss 314
Unrecognized prior service cost —(1) (1)
Curtailment gain —(5) —
Settlement loss 17 56
Net periodic pension cost $24 $ 8 $17