AIG 2009 Annual Report Download - page 332

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Supplemental Executive Retirement Plan, which provides additional retirement benefits to designated executives.
Under the Supplemental Plan, an annual benefit accrues at a percentage of final average pay multiplied by each year
of credited service, not greater than 60 percent of final average pay, reduced by any benefits from the current and any
predecessor retirement plans (including the AIG Excess Retirement Income Plan and any comparable plans), Social
Security, if any, and from any qualified pension plan of prior employers. AIG has complied with the Special Master’s
mandate to freeze future benefits in the non-qualified retirement plans for the Top 100 employees of AIG. The impact
to AIG’s financial statements was not significant.
Postretirement Plans
AIG and its subsidiaries also provide postretirement medical care and life insurance benefits in the U.S. and in
certain non-U.S. countries. Eligibility in the various plans is generally based upon completion of a specified period of
eligible service and attaining a specified age. Overseas, benefits vary by geographic location.
U.S. postretirement medical and life insurance benefits are based upon the employee electing immediate
retirement and having a minimum of ten years of service. Medical benefits are contributory, while the life insurance
benefits are non-contributory. Retiree medical contributions vary from requiring no cost for pre-1989 retirees to
requiring actual premium payments reduced by certain credits for post-1993 retirees. These contributions are subject
to adjustment annually. Other cost sharing features of the medical plan include deductibles, coinsurance, Medicare
coordination and a lifetime maximum benefit of $5 million.
AIG 2009 Form 10-K 324