Motorola 2011 Annual Report Download - page 90

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84
Company also provides defined benefit plans which cover non-U.S. employees in certain jurisdictions, principally
the United Kingdom, Germany, and Japan (the “Non-U.S. Plans”). Other pension plans are not material to the
Company either individually or in the aggregate.
The Company has a noncontributory supplemental retirement benefit plan (the “Officers’ Plan”) for its officers
elected prior to December 31, 1999. The Officers’ Plan contains provisions for vesting and funding the participants’
expected retirement benefits when the participants meet the minimum age and years of service requirements. Elected
officers who were not yet vested in the Officers’ Plan as of December 31, 1999 had the option to remain in the
Officers’ Plan or elect to have their benefit bought out in restricted stock units. Effective December 31, 1999, newly
elected officers are not eligible to participate in the Officers’ Plan. Effective June 30, 2005, salaries were frozen for
this plan.
The Company has an additional noncontributory supplemental retirement benefit plan, the Motorola
Supplemental Pension Plan (“MSPP”), which provides supplemental benefits to individuals by replacing the Regular
Pension Plan benefits that are lost by such individuals under the retirement formula due to application of the
limitations imposed by the Internal Revenue Code. However, elected officers who are covered under the Officers’
Plan or who participated in the restricted stock buy-out are not eligible to participate in MSPP. Effective January 1,
2007, eligible compensation was capped at the IRS limit plus $175,000 (the “Cap”) 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 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.