Sallie Mae 2015 Annual Report Download - page 221

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the Company’s 401(k) savings plan that a Participant would have received in such plan if
he had not elected to make Salary Deferrals or Bonus Deferrals pursuant to the terms of this
Plan. Any Supplemental Company Contribution shall be credited to the Retirement
Distribution Account.
Section 4.5. Transfers from Other Plans of Deferred Compensation. The Company may
credit an Eligible Employee with an amount under this Plan equal to the amount credited
under a prior plan of deferred compensation maintained by the Company or its predecessor
on behalf of a selected group of management and highly compensated employees. Any such
amount shall be credited to the Retirement Distribution Account.
ARTICLE 5. DISTRIBUTION OPTION ACCOUNTS
Section 5.1. Distribution Option Accounts. The Company shall establish on its books a
hypothetical account for a Participant. This account shall be referred to as the Distribution
Option Account. Each Distribution Option Account shall be comprised of one or more sub-
accounts. One sub-account shall be referred to as the Retirement Distribution Account.
Generally, the distribution of amounts credited to the Retirement Distribution Account shall
be subject to Section 7.1. The other sub-accounts shall be referred to as In-Service
Distribution Accounts. One In-Service Distribution Account shall be established for each
live-year Distribution Option Period. Supplemental Company Contributions, when credited,
are credited only to the Retirement Distribution Account.
Section 5.2. Earnings on Distribution Option Accounts. A Participant’s Distribution
Option Account shall be credited with earnings in accordance with the Earnings Crediting
Options, elected by the Participant from time to time, until such Account is fully distributed.
Participants may allocate their Retirement Distribution Account and/or each of their In-
Service Distribution Accounts among the Earnings Crediting Options available under the
Plan only in accordance with rules and procedures adopted by the Committee. The deemed
rate of return, positive or negative, credited under each Earnings Crediting Option is based
upon the actual investment performance of such Earnings Crediting Option, and shall equal
the total return of such Earnings Crediting Option, net of asset based charges, including,
without limitation, money management fees, fund expenses and mortality and expense risk
insurance contract charges. The Company reserves the right, on a prospective basis, to add
or delete Earnings Crediting Options.
Section 5.3. Earnings Crediting Options. Notwithstanding that the rates of return credited
to Participants’ Distribution Option Accounts under the Earnings Crediting Options are
based upon the actual performance of the Earnings Crediting Options, the Company shall
not be obligated to invest any Salary or Bonus Deferrals, Supplemental Company
Contributions, or any other amounts, in such Earnings Crediting Options.
Section 5.4. Changes in Earnings Crediting Options. Subject to limitations set forth in
Section 12, a Participant may change the Earnings Crediting Options to which his
Distribution Option Account is deemed to be allocated with whatever frequency is
determined by the Committee, which shall not be less than four times per Plan Year. Each