Sunoco 2014 Annual Report Download - page 134

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• Death: In the case of death, an NEO's beneficiary(ies) or estate would receive the following benefits:
• Insurance:
• Life insurance benefits equal to one and one-half times base compensation up to a maximum of
$750,000 plus any supplemental life insurance elected and paid for by the NEO.
• Accidental death and dismemberment (AD&D) insurance in the same amount as the life insurance
benefits described above would be payable in the event of accidental death.
• If the NEO is married and retirement-eligible at the time of death, medical coverage would be
available to his or her spouse on the same basis as other surviving spouses of retirement-eligible
employees. If not retirement-eligible at death, coverage for the spouse would be available for a
period that is consistent with the requirements of COBRA continuation coverage.
These benefits are fully insured, and there is no cost to the Partnership upon death. The cost to the Partnership
is the premium payments made on the executive's behalf, which premium payments are available to all
salaried employees on a nondiscriminatory basis and thus are not reflected in the Summary Compensation
Table above.
• SCIRP/Pension Restoration Plan:
• With respect to an NEO who is eligible for Final Average Pay formula benefits under SCIRP (Mr.
Hennigan), his or her spouse would receive the greater of: (A) 50 percent of the benefit under the
Final Average Pay formula, or (B) 100 percent of the benefit accrued under the Career Earnings
Formula. A non-married NEO's beneficiary(ies) or estate would receive 100 percent of the benefit
accrued under the Career Earnings Formula. This benefit is the same for all similarly situated
employees.
• With respect to an NEO that is eligible for Career Pay Formula benefits only under SCIRP
(Ms. Shea-Ballay and Messrs. Lauterbach and Chalson), a married or non-married NEO's spouse,
beneficiary(ies) or estate would receive 100 percent of the benefit accrued under the Career Earnings
Formula. This benefit is the same for all similarly situated employees.
• For all NEOs, to the extent that the amount payable under SCIRP exceeds the amount available due
to Code limits, the remaining amount would be paid under the Pension Restoration Plan at the
employee's death.
• LTIP: Under the LTIP, all unvested performance-based restricted units would continue to vest, and, along
with the accompanying DERs, would pay out at the end of the respective performance periods to the NEO's
beneficiary(ies) or estate if the applicable performance measures are met. Outstanding time-based restricted
units would be forfeited unless specified in the applicable award agreement.
• Disability: In the case of a termination of employment due to disability, an NEO would be eligible for the following
benefits:
• SCIRP/Pension Restoration Plan: Benefits accrued under the SCIRP and Pension Restoration Plan would be
paid according to the terms of those plans applicable to terminated or retirement eligible employees, as
described in the Voluntary Termination section above.
• Long Term Disability:
• An NEO would receive benefits, including Social Security, up to 60 percent of total monthly
compensation or $10,000 per month, whichever is less, under Sunoco's long-term disability plan.
These benefits are fully insured, and there is no cost to the Partnership upon disability. The cost to
the Partnership is the premium payments made on the executive's behalf, which premium payments
are available to all salaried employees on a nondiscriminatory basis.
• The Executive Long Term Disability Plan ("ELTD") provides salary replacement benefits to
executives, who become eligible before age 60, at the Senior Vice President level or higher. To
participate, an executive must make an affirmative election during the biannual open enrollment.
The ELTD pays benefits if the participant is deemed to be disabled, as defined by the ELTD, by the
general partner's disability plan administrator. The ELTD provides salary replacement benefits (up to
$7,500 per month) that are in addition to the long-term disability plan benefit stated above. While
the cost of the ELTD is paid entirely by the Partnership, the executive has the option under the
ELTD to increase his or her coverage by an additional $2,500 per month. This additional benefit is
available to participants who pay the full cost of the supplemental benefit. In 2014, of the NEOs,