Texas Instruments 2014 Annual Report Download - page 110

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PROXY STATEMENT
2014 pension benefits
The following table shows the present value as of December 31, 2014, of the benefit of the named executive officers under our qualified
defined benefit pension plan (TI Employees Pension Plan) and non-qualified defined benefit pension plans (TI Employees Non-Qualified
Pension Plan (which governs amounts earned before 2005) and TI Employees Non-Qualified Pension Plan II (which governs amounts
earned after 2004)). In accordance with SEC requirements, the amounts shown in the table do not reflect any named executive
officer’s retirement eligibility or any increase in benefits that may result from the named executive officer’s continued employment
after December 31, 2014.
Name (1) Plan Name
Number of
Years Credited
Service (#)
Present
Value of
Accumulated
Benefit ($) (6)
Payments
During
Last
Fiscal
Year ($)
R. K. Templeton (2) . . . . . . . . . . . . . . . . TI Employees Pension Plan 16 (3) $ 654,426 —
TI Employees Non-Qualified Pension Plan 16 (3) $ 277,131 —
TI Employees Non-Qualified Pension Plan II 16 (5) $ 205,199 —
K. P. March . . . . . . . . . . . . . . . . . . . . TI Employees Pension Plan 29 (3) $ 885,211 —
TI Employees Non-Qualified Pension Plan 19 (4) $ 169,888 —
TI Employees Non-Qualified Pension Plan II 29 (5) $ 4,754,776 —
B. T. Crutcher (2) . . . . . . . . . . . . . . . . . TI Employees Pension Plan 0.9 (3) $ 4,221 —
K. J. Ritchie . . . . . . . . . . . . . . . . . . . TI Employees Pension Plan 35 (3) $ 1,322,463 —
TI Employees Non-Qualified Pension Plan 25 (4) $ 501,132 —
TI Employees Non-Qualified Pension Plan II 35 (5) $ 6,174,526 —
(1) Mr. Anderson does not participate in any of the company’s defined benefit pension plans because he joined TI after these plans were
closed to new participants.
(2) In 1997, TI’s U.S. employees were given the choice between continuing to participate in the defined benefit pension plans or
participating in a new enhanced defined contribution retirement plan. Messrs. Templeton and Crutcher chose to participate in the
defined contribution plan. Accordingly, their accrued pension benefits under the qualified and non-qualified plans were frozen
(i.e., they will experience no increase attributable to years of service or change in eligible earnings) as of December 31, 1997.
Contributions to the defined contribution plan for Mr. Templeton’s and Mr. Crutcher’s benefits are included in the 2014 summary
compensation table.
(3) For each of the named executive officers, credited service began on the date the officer became eligible to participate in the plan.
For Mr. Crutcher, eligibility to participate began on the first day of the month following completion of one year of employment. For
each of the other named executive officers, eligibility to participate began on the earlier of 18 months of employment, or January 1
following the completion of one year of employment. Accordingly, each of the named executive officers has been employed by TI for
longer than the years of credited service shown above.
(4) Credited service began on the date the named executive officer became eligible to participate in the TI Employees Pension Plan as
described in note 3 above and ceased at December 31, 2004.
(5) Credited service began on the date the named executive officer became eligible to participate in the TI Employees Pension Plan as
described in note 3 above.
(6) The assumptions and valuation methods used to calculate the present value of the accumulated pension benefits shown are the
same as those used by TI for financial reporting purposes and are described in Note 11 to the financial statements contained in
Item 8 in TI’s annual report on Form 10-K for the year ended December 31, 2014, except that a named executive officer’s retirement
is assumed (in accordance with SEC rules) for purposes of this table to occur at age 65 and no assumption for termination prior to
that date is used. The amount of the lump-sum benefit earned as of December 31, 2014, is determined using either (i) the Pension
Benefit Guaranty Corporation (PBGC) interest assumption of 1.50 percent or (ii) the Pension Protection Act of 2006 (PPA) corporate
bond yield interest assumption of 4.23 percent for the TI Employees Pension Plan and 4.26 percent for the TI Employees Non-
Qualified Pension Plans, whichever rate produces the higher lump sum amount. A discount rate assumption of 4.23 percent for the
TI Employees Pension Plan and 4.26 percent for the non-qualified pension plans was used to determine the present value of each
lump sum.