Assurant 2005 Annual Report Download - page 20

target benefits payable to a participant under all of the Company’s defined benefit plans (including the SERP) will not exceed the amounts
shown in the following table.
The table below shows the target benefit payable under the SERP. The benefit shown is a single life annuity commencing at age 60.
Target Benefits Payable Under the Assurant, Inc. SERP
(*Service reflects benefit service under the SERP, not actual service.)
Effective January 1, 1990, our Board of Directors adopted the SERP, which is a non-qualified, unfunded supplemental pension plan for
certain key executives of the Company and its subsidiaries. Under the SERP, participants who meet certain conditions are entitled to receive a
benefit, called a “target benefit,” that is then offset (reduced) by certain other benefits, such as the pension payable under our tax-qualified
defined benefit pension plan (the Assurant Pension Plan, described below), the benefit payable under the pension portion of the Executive
Pension and 401(k) Plan, described below, and Social Security benefits. If the SERP benefit commences at age 60 or later, the target benefit,
expressed as a single life annuity, is 50% of the employee’s base pay plus target short-term incentive bonus, each as most recently approved by
our Board of Directors, multiplied by a fraction (not to exceed 1.0), the numerator of which is the employee’s number of months of service
qualified for benefits, and the denominator of which is 240. In other words, after 20 years of service qualified for benefits, the employee will
earn a full 50% benefit under this plan. If the SERP benefit commences prior to age 60, then the target benefit will be reduced on an actuarially
equivalent basis from age 60 to the date the benefit actually commences.
A participant is not vested in any of his or her benefit under the SERP until the second anniversary of the date he or she commences
participation in the plan. On the second anniversary of participation, the participant vests in the SERP benefit at the rate of 3% for each month
of employment thereafter with the Company or its subsidiaries. A participant will become 100% vested in his or her SERP benefit in the event
of death or disability. If a participant is terminated for cause, as defined in the SERP, or commits a material breach of certain covenants
regarding non-competition, confidentiality, non-solicitation of employees or non-solicitation of customers, then the participant will forfeit any
remaining SERP benefits.
The default form of payment under the SERP is a single lump payment that is the actuarial equivalent of the SERP benefit. The participant
may also elect optional forms of payment under the SERP.
If there is a change in control with respect to the Company or a division, and within two years after the change in control a participant’s
employment is terminated without cause or the participant terminates
14
Years of Service(1)
Final Compensation 10 15 20 25 30
$ 500,000
$
125,000
$
187,500
$
250,000
$
250,000
$
250,000
750,000
187,500
281,250
375,000
375,000
375,000
1,000,000
250,000
375,000
500,000
500,000
500,000
1,250,000
312,500
468,750
625,000
625,000
625,000
1,500,000
375,000
562,500
750,000
750,000
750,000
1,750,000
437,500
656,250
875,000
875,000
875,000
2,000,000
500,000
750,000
1,000,000
1,000,000
1,000,000
2,500,000
625,000
937,500
1,250,000
1,250,000
1,250,000
3,000,000
750,000
1,125,000
1,500,000
1,500,000
1,500,000
(1) As of December 31, 2004, J. Kerry Clayton had 24.6* years of service and SERP compensation of $1,680,000; Robert B. Pollock had
20.1* years of service and SERP compensation of $1,344,000; Philip Bruce Camacho had 5.4 years of service and SERP compensation of
$952,000; Lesley Silvester had 20.3 years of service and SERP compensation of $829,000; Lucinda Landreth does not participate in the
SERP.