AbbVie 2013 Annual Report Download - page 162

• Vested benefits accrued under the Supplemental Pension Plan may be funded through a grantor
trust established by the named executive officer. Consistent with the distribution requirements of
Internal Revenue Code Section 409A and its regulations, those named executive officers who
became officers prior to 2009 may have the entire amount of their vested plan benefits funded
through a grantor trust. Any named executive officer who became an officer after 2008 may have
only the vested benefits that accrue following the calendar year in which he or she is first
elected as an officer funded through a grantor trust. Vested benefits accrued through
December 31, 2008, to the extent not previously funded, were distributed to the participants’
individual trusts and included in the participants’ income.
Benefits payable under the Supplemental Pension Plan are offset by the benefits payable from the
Pension Plan, calculated as if benefits under the plans commenced at the same time. The amounts paid
to a named executive officer’s Supplemental Pension Plan grantor trust to fund plan benefits are
actuarially determined. The plan is designed to result in AbbVie paying the named executive officer’s
Supplemental Pension Plan benefits to the extent assets held in his or her trust are insufficient.
Pension Benefits Table
Present
Number of Value of Payments
Years Accumulated During
Credited Benefit Last Fiscal Year
Name Plan Name Service (#) ($)(1) ($)
R. Gonzalez ............... AbbVie Pension Plan 33 $313,917 $0
AbbVie Supplemental Pension Plan 33 5,641,059 0
L. Schumacher .............. AbbVie Pension Plan 23 472,749 0
AbbVie Supplemental Pension Plan 23 5,300,458 249,954(2)
W. Chase .................. AbbVie Pension Plan 25 324,200 0
AbbVie Supplemental Pension Plan 25 1,294,021 77,905(2)
C. Alban .................. AbbVie Pension Plan 27 549,416 0
AbbVie Supplemental Pension Plan 27 3,485,171 1,542,137(2)
T. Richmond ............... AbbVie Pension Plan 7 91,966 0
AbbVie Supplemental Pension Plan 7 302,341 0
(1) AbbVie calculates these present values using: (i) a 5.36% discount rate, the same discount rate it uses
for Financial Accounting Standards Board ASC Topic 715 calculations for financial reporting purposes;
and (ii) each plan’s unreduced retirement age, which is age 62 under the AbbVie Pension Plan and age
60 under the AbbVie Supplemental Pension Plan for those participants who are eligible for early
retirement benefits and which is age 65 under both plans for other participants. The present values
shown in the table reflect postretirement mortality, based on the Financial Accounting Standards Board
ASC Topic 715 assumption (the RP2000 Combined Healthy table), but do not include a factor for
preretirement termination, mortality, or disability.
(2) Consistent with the distribution requirements of Internal Revenue Code Section 409A and its
regulations, vested Supplemental Pension Plan benefits, to the extent not previously funded, were
distributed to the participants’ individual grantor trusts and included in the participants’ income.
Amounts held in the named executive officer’s individual trust are expected to offset AbbVie’s
obligations to him or her under the plan. During 2013, the amounts shown, less applicable tax
withholdings, were deposited in such individual trusts established by the named executive officers.
Grantor trusts are described in greater detail in the section of this proxy statement captioned
‘‘Compensation Discussion and Analysis—2013 Goal Performance and Executive Pay Decisions.’’
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