PG&E 2008 Annual Report Download - page 134

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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 Code, PG&E Corporation credits the excess
amount to an SRSP account for the eligible employee. Each
SRSP participant has a separate account that is adjusted on
a monthly basis to refl ect the performance of the investment
options selected by the participant. The change in the value
of participants’ accounts is recorded as additional compensa-
tion expense or income in the Consolidated Statements of
Income. Total compensation expense and (income) recognized
by PG&E Corporation and the Utility in connection with
the plan amounted to:
PG&E
(in millions) Corporation Utility
2008 $(7) $(4)
2007 2 1
2006 4 2
LONG-TERM INCENTIVE PLAN
The 2006 LTIP permits the award of various forms of incen-
tive awards, including stock options, stock appreciation rights,
restricted stock awards, restricted stock units, performance
shares, 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 10,342,381 shares were available for award at
December 31, 2008.
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
2009 $ 440 $ 437
2010 470 467
2011 502 500
2012 538 536
2013 575 573
2014–2018 3,433 3,415
Other benefi ts
2009 $ 98 $ 98
2010 101 101
2011 104 104
2012 105 105
2013 108 108
2014–2018 572 572
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 Code. These plans provide for
tax-deferred salary deductions and after-tax employee con-
tributions 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 basic contri-
butions of up to 5% of the employee’s base compensation.
Matching contributions vary up to 6% of the employee’s
base compensation 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. Matching employer
contributions are made with company stock; however,
employees may reallocate matching employer contributions
and accumulated earnings thereon to another investment
fund or funds available 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,
2008 $53 $52
2007 47 46
2006 45 43