Allstate 2015 Annual Report Download - page 60

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EXECUTIVE COMPENSATION
Retirement Benefits
The following table provides information about the pension plans in which the named executives participate.
Each of the named executives participates in the Allstate Retirement Plan (ARP) and the Supplemental
Retirement Income Plan (SRIP).
Pension Benefits
Name Plan Name
Number
of Years
Credited
Service
(#)
Present
Value of
Accumulated
Benefit(1)(2)
($)
Payments
During Last
Fiscal Year
($)
Mr. Wilson ARP 22.8 933,996 0
SRIP 22.8 12,987,014 0
Mr. Shebik ARP 27.2 1,151,428 0
SRIP 27.2 3,311,569 0
Mr. Civgin ARP 7.3 48,978 0
SRIP 7.3 308,279 0
Ms. Greffin ARP 25.3 948,844 0
SRIP 25.3 4,563,692 0
Mr. Winter ARP 6.2 40,041 0
SRIP 6.2 386,312 0
(1) These amounts are estimates and do not necessarily reflect the actual amounts that will be paid to the named
executives, which will be known only at the time they become eligible for payment. The present value of the
accumulated benefit was determined using the same measurement date (December 31, 2015) and material
assumptions that we use for year-end financial reporting purposes, except that we made no assumptions for
early termination, disability, or pre-retirement mortality. Other assumptions include the following:
• Retirement at the normal retirement age as defined in the plans (age 65).
• Discount rate of 4.83%.
Other assumptions for the final average pay formula include the following:
• 80% paid as a lump sum and 20% paid as an annuity; for the cash balance formula, 100% paid as a lump sum.
• Lump-sum/annuity conversion segmented interest rates of 3.00% for the first five years, 5.25% for the next
15 years, and 6.00% for all years after 20.
• Lump sum calculations were done using the RP-2014 mortality table projected with the MP-2015 projection
table, with a blend of 50% males and 50% females. The RP-2014 mortality table and MP-2015 projection table
were created by the Society of Actuaries. Allstate adopted these tables for accounting on December 31,
2015 to measure retirement program obligations in the United States; however, benefits are not determined
using these factors in 2015 or 2016.
• Annuity calculations were done using the RP-2014 white collar mortality table for annuitants projected with
the MP-2015 projection table.
See note 17 to our audited financial statements for 2015 for additional information.
(2) The following table shows the lump sum present value of the non-qualified pension benefits for each named
executive earned through December 31, 2015, if the named executives’ employment terminated on that date.
Name Plan Name
Lump Sum
Amount
($)
Mr. Wilson SRIP 14,170,872
Mr. Shebik SRIP 3,623,189
Mr. Civgin SRIP 326,554
Ms. Greffin SRIP 4,768,002
Mr. Winter SRIP 399,521
The amount shown is based on the lump sum methodology used by the Allstate pension plans in 2016.
Specifically, the interest rate for 2016 is based on 100% of the average corporate bond segmented yield
curve from August of the prior year. As required under the Internal Revenue Code, the mortality table
used for 2016 is the 2016 combined static Pension Protection Act funding mortality table with a blend of
50% males and 50% females.