Sallie Mae 2007 Annual Report Download - page 194

18. Benefit Plans (Continued)
from corporate assets when due to the participant. It is estimated that approximately $6 million will be paid in
2008 for these benefits. No plan assets are expected to be returned to the employer during 2008.
Estimated Future Benefit Payments
The following qualified and nonqualified plan benefit payments, which reflect future service as appropri-
ate, are expected to be paid:
2008 ................................................................ $21,572
2009 ................................................................ 17,384
2010 ................................................................ 17,681
2011 ................................................................ 17,372
2012 ................................................................ 15,856
2013-2017 ............................................................ 82,710
401(k) Plans
The Company maintains two safe harbor 401(k) savings plans as defined contribution plans intended to
qualify under section 401(k) of the Internal Revenue Code.
The Sallie Mae 401(k) Savings Plan covers substantially all employees of the Company hired before
August 1, 2007, excluding employees of Asset Performance Group and Upromise. Participating employees as
of July 1, 2005, may contribute up to 75 percent of eligible compensation; between January 1, 2005 and
June 30, 2005 the maximum deferral percentage was 25 percent. Up to 6 percent of these contributions are
matched 100 percent by the Company after one year of service. Effective July 1, 2004, in conjunction with the
defined benefit plan change, certain eligible employees began receiving a 2 percent core employer contribu-
tion. As additional employees phase out of the Pension Plans in July 2009, they will begin receiving the
2 percent core employer contribution.
The Sallie Mae 401(k) Retirement Savings Plan (the “Retirement Savings Plan”) covers substantially all
employees of the Company hired after August 1, 2007, excluding employees of Upromise. The Retirement
Savings Plan was formerly the Sallie Mae DMO 401(k) Savings Plan (the “DMO Plan”), which covered
substantially all employees of Debt Management Operations, now referred to as Asset Performance Group.
Participating employees as of July 1, 2005, may contribute up to 75 percent of eligible compensation; between
January 1, 2005 and June 30, 2005, the maximum deferral percentage was 25 percent. In conjunction with the
August 1, 2007 changes, the Retirement Savings Plan increased the match formula to up to 100 percent of the
first 5 percent of contributions after one year of service. Formerly the DMO Plan had a match formula of up
to 100 percent on the first 3 percent of contributions and 50 percent on the next 2 percent of contributions
after one year of service.
In conjunction with the 2006 acquisition of Upromise, the Company maintained the Upromise, Inc.
401(k) Plan. Eligible employees can contribute up to 60 percent of eligible compensation. For the 2007 and
2006 plan years, the Company provided matching contributions of $1 and $.50 up to a maximum of $1,000
and $500, respectively, to eligible employees who were employed on the last day of the plan year. Effective
January 1, 2008, eligible employees of Upromise became participants of the Sallie Mae 401(k) Retirement
Savings Plan.
The Company also maintains a non-qualified plan to ensure that designated participants receive the full
amount of benefits to which they would have been entitled under the 401(k) Plan except for limits on
compensation imposed by the Internal Revenue Code.
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SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts, unless otherwise stated)