AbbVie 2013 Annual Report Download - page 161

The early retirement reductions applied to the benefit payable for service prior to 2004 (B and C
above) depend upon age and service at retirement:
• In general, the 5-year final average earnings portions of the benefit are reduced 3 percent per
year for each year that payments are made before age 62 and the 3-year final average earnings
portion of the benefit is reduced 5 percent per year for each year that payments are made
before age 62.
• Employees who participated in the plan before age 36 may elect ‘‘Special Retirement’’ on the
last day of any month after reaching age 55 with age plus Seniority Service points of at least 94
or ‘‘Early Special Retirement’’ on the last day of any month after reaching age 55, provided their
age plus Seniority Service points would reach at least 94 before age 65. Seniority Service
includes periods of employment prior to attaining the minimum age required to participate in
the plan. If Special Retirement or Early Special Retirement applies, Seniority Service is used in
place of benefit service in the formulas. The 5-year final average earnings portions of the benefit
in B above are reduced 12⁄3 percent for each year between ages 59 and 62 plus 21⁄2 percent for
each year between ages 55 and 59. The 3-year final average earnings portion of the benefit is
reduced 5 percent per year for each year that payments are made before age 62. Benefit C is
payable on an unreduced basis at Special Retirement and is reduced 3 percent per year for each
year that payments are made before age 62, if Early Special Retirement applies.
Supplemental Pension Plan
With the following exceptions, the provisions of the Supplemental Pension Plan are substantially
the same as those of the Pension Plan:
• Participants’ 5-year final average earnings are calculated using the average of the 5 highest years
of base earnings and the 5 highest years of payments under AbbVie’s non-equity incentive plans.
• The Pension Plan does not include amounts deferred or payments received under the AbbVie
Deferred Compensation Plan in its calculation of a participant’s final average earnings. To
preserve the pension benefits of Deferred Compensation Plan participants, the Supplemental
Pension Plan includes amounts deferred by a participant under the Deferred Compensation Plan
in its calculation of final average earnings. Beginning in the year following their election or
appointment as an officer, AbbVie officers are no longer eligible to defer compensation under
the Deferred Compensation Plan.
• In addition to the benefits outlined above for the Pension Plan, the named executive officers are
eligible for an additional Supplemental Pension Plan benefit equal to 0.6% of 5-year final
average earnings for each year of service for each of the first 20 years of service occurring after
the participant attains age 35. The benefit is further limited by the maximum percentage allowed
under the Pension Plan under that plan’s benefit formulas (A, B and C above). The portion of
this additional benefit attributable to service before 2004 is reduced 3 percent per year for each
year that payments are made before age 60. The portion attributable to service after 2003 is
reduced 5 percent per year for each year that payments are made before age 60 if the
participant is at least age 55 at early retirement. If the participant is under age 55 at retirement,
the portion attributable to service after 2003 is actuarially reduced from age 65.
• The Supplemental Pension Plan provides early retirement benefits similar to those provided
under the Pension Plan. The benefits provided to named executive officers under the
Supplemental Pension Plan are not, however, reduced for the period between age 60 and age 62,
unless the benefit is being actuarially reduced from age 65. Mr. Gonzalez, Ms. Schumacher, and
Mr. Alban are eligible for early retirement benefits under the plan.
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