PG&E 2007 Annual Report Download - page 126

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124
Benefi ts Payments
The estimated benefi ts expected to be paid in each of the
next fi ve fi scal years and in aggregate for the fi ve fi scal years
thereafter, are as follows:
PG&E
(in millions) Corporation Utility
Pension
2008 $ 426 $ 424
2009 456 453
2010 485 483
2011 514 512
2012 544 541
2013–2017 3,179 3,164
Other benefi ts
2008 $ 92 $ 92
2009 95 95
2010 96 96
2011 98 98
2012 98 98
2013–2017 516 516
DEFINED CONTRIBUTION BENEFIT PLANS
PG&E Corporation and its subsidiaries also sponsor defi ned
contribution benefi t plans. These plans are qualifi ed under
applicable sections of the Internal Revenue Code. These
plans provide for tax-deferred salary deductions and after-tax
employee contributions as well as employer contributions.
Employees designate the funds in which their contributions
and any employer contributions are invested. Before April 1,
2007, PG&E Corporation employees received matching of
up to 5% of the employee’s base compensation and/or basic
contributions of up to 5% of the employee’s base compensa-
tion. Matching contributions vary up to 6% based on years
of service for Utility employees. Beginning April 1, 2007,
the basic employer contribution was discontinued for PG&E
Corporation employees and matching contributions were
changed to match the Utility employee plan. Employees may
reallocate matching employer contributions and accumulated
earnings thereon to another investment fund or funds avail-
able to the plan at any time after they have been credited
to the employee’s account. Employer contribution expense
refl ected in PG&E Corporation’s Consolidated Statements
of Income amounted to:
PG&E
(in millions) Corporation Utility
Year ended December 31,
2007 $47 $46
2006 45 43
2005 43 42
PG&E Corporation Supplemental
Retirement Savings Plan
The PG&E Corporation Supplemental Retirement Savings
Plan (“SRSP”) is a non-qualifi ed plan that allows eligible
offi cers and key employees of PG&E Corporation and its
subsidiaries to defer 5% to 50% of their base salary and all
or part of their incentive awards. In addition, to the extent
that matching employer contributions cannot be made to
a participant under the qualifi ed defi ned contribution benefi t
plan because the contributions would exceed the limitations
set by the Internal Revenue Code, PG&E Corporation
credits the excess amount to an SRSP account for the eligible
employee. Each SRSP participant has a separate account
which is adjusted on a quarterly basis to refl ect the perfor-
mance of the investment options selected by the participant.
The change in the value of participants’ accounts is recorded
as additional compensation expense or income in the
Consolidated Financial Statements. Total compensation
expense recognized by PG&E Corporation and the Utility
in connection with the plan amounted to:
PG&E
(in millions) Corporation Utility
Year ended December 31,
2007 $2 $1
2006 4 2
2005 3 1
LONG-TERM INCENTIVE PLAN
The 2006 LTIP permits the award of various forms of
incentive awards, including stock options, stock appreciation
rights, restricted stock awards, restricted stock units, perfor-
mance shares, performance units, deferred compensation
awards, and other stock-based awards, to eligible employees
of PG&E Corporation and its subsidiaries. Non-employee
directors of PG&E Corporation are also eligible to receive
restricted stock and either stock options or restricted
stock units under the formula grant provisions of the
2006 LTIP. A maximum of 12 million shares of PG&E
Corporation common stock (subject to adjustment for
changes in capital structure, stock dividends, or other
similar events) have been reserved for issuance under the
2006 LTIP, of which 10,847,999 shares were available for
award at December 31, 2007.