AbbVie 2012 Annual Report Download - page 176

In general, AbbVie will credit each employee with his or her service with Abbott prior to the
distribution for all purposes under the AbbVie benefit plans, so long as such crediting does not result
in a duplication of benefits.
Retirement and Deferred Compensation Programs
AbbVie has established a defined benefit pension plan (the AbbVie Pension Plan), which is
substantially similar to the Abbott Annuity Retirement Plan and includes the same benefit formula that
was in effect under the Abbott Annuity Retirement Plan as of the distribution date. The AbbVie
Pension Plan will provide benefits to AbbVie U.S. employees transferred in connection with the
Separation who had participated in the Abbott Annuity Retirement Plan. The AbbVie Pension Plan will
accept assets and assume liabilities from the Abbott Annuity Retirement Plan which relate to
transferred employees. After the distribution date, a portion of the assets of the trust funding the
Abbott Annuity Retirement Plan were transferred to a trust designated to fund the AbbVie Pension
Plan. Transferred employees are eligible to participate in the AbbVie Pension Plan to the extent they
were eligible to participate in the Abbott Annuity Retirement Plan, and they receive credit for Abbott
service to the extent credited under the Abbott Annuity Retirement Plan and recognition for
compensation paid by Abbott as though it were compensation paid by AbbVie. Accrued benefits for
transferred employees under the Abbott Annuity Retirement Plan are payable under the AbbVie
Pension Plan.
Abbott and AbbVie have jointly established and now co-sponsor a defined benefit pension plan to
provide benefits to participants in the Abbott Annuity Retirement Plan who terminated service with
Abbott before the distribution date. The benefits provided to former employees are the same as those
they would have received or were receiving under the Abbott Annuity Retirement Plan as of the
distribution date. The jointly sponsored plan will accept assets and assume liabilities from the Abbott
Annuity Retirement Plan which relate to former employees. As soon as practicable after the
distribution date, a portion of the assets of the trust funding the Abbott Annuity Retirement Plan
related to the former employees who were participating in the Abbott Annuity Retirement Plan
immediately before the distribution date will be transferred to a trust designated to fund the jointly
sponsored plan. Each former employee’s benefit under the jointly sponsored plan after the distribution
date will be his or her accrued benefit under the Abbott Annuity Retirement Plan immediately before
the distribution date, and will be paid under the jointly sponsored plan at the time and in a form that
would have been permitted under the Abbott Annuity Retirement Plan.
Defined contribution and deferred compensation accounts of AbbVie’s U.S. employees (including
loans) have been transferred from the applicable Abbott defined contribution retirement or deferred
compensation plan to the corresponding AbbVie plan. AbbVie also has assumed liabilities for U.S.
non-qualified defined benefit pension benefits of AbbVie employees. In general, Abbott retains liability
for benefits of former employees under U.S. qualified defined contribution, non-qualified deferred
compensation, and non-qualified defined benefit pension plans, although in some cases AbbVie will
reimburse Abbott for a portion of the expense associated with former employees.
Welfare Plans
Abbott will retain liability for claims incurred under the Abbott health and welfare plans prior to
the distribution date, whether incurred by employees who will be employed by Abbott or AbbVie
following the distribution date or by former employees. Following the distribution date, AbbVie
employees will commence participation in AbbVie health and welfare plans. In general, Abbott will
retain liability for U.S. retiree medical and life insurance benefits for employees continuing with Abbott
and for former employees, although AbbVie will reimburse Abbott for a portion of the expense
associated with former employees.
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