Eli Lilly 2012 Annual Report Download - page 147

43
Post-2009 Plan Information: Following amendment of our retirement plan formulae, employees hired on or after
February 1, 2008 have accrued retirement benefits only under the new plan formula. Employees hired before that
date have accrued benefits under both the old and new plan formulae. All eligible employees, including those hired
on or after February 1, 2008, can retire at age 65 with at least five years of service and receive an unreduced benefit.
The annual benefit under the new plan formula is equal to 1.2 percent of final average earnings multiplied by years
of service. Early retirement benefits under this plan formula are reduced 6 percent for each year under age 65.
Transition benefits were afforded to employees with 50 points (age plus service) or more as of December 31, 2009.
These benefits were intended to ease the transition to the new retirement formula for those employees who are
closer to retirement or have been with the company longer. For the transition group, early retirement benefits are
reduced 3 percent for each year from age 65 to age 60 and 6 percent for each year under age 60. All named
executive officers except Dr. Lundberg are in this transition group.
Pre-2010 Plan Information: Employees hired prior to February 1, 2008 accrued benefits under both plan formulae.
For these employees, benefits that accrued before January 1, 2010 were calculated under the old plan formula. The
amount of the benefit is calculated using actual years of service through December 31, 2009, while total years of
service is used to determine eligibility and early retirement reductions. The benefit amount is increased (but not
decreased) proportionately, based on final average earnings at termination compared to final average earnings at
December 31, 2009. Full retirement benefits are earned by employees with 90 or more points (the sum of his or her
age plus years of service). Employees electing early retirement receive reduced benefits as described below:
• The benefit for employees with between 80 and 90 points is reduced by 3 percent for each year under 90 points
or age 62.
• The benefit for employees who have less than 80 points, but who reached age 55 and have at least 10 years of
service, is reduced as described above and is further reduced by 6 percent for each year under 80 points or age
65.
When Mr. Armitage joined the company in 1999, he would not have been eligible to receive a retirement benefit prior
to age 65. Therefore, the company agreed to provide him with an early retirement benefit based on his actual years
of service and earnings, provided he worked until at least age 60. Since Mr. Armitage reached age 60 with 9.75 years
of service, for purposes of determining eligibility and calculating his early retirement reduction, he was credited
with an additional 10.25 years of service. The additional service credit made him eligible to begin receiving reduced
benefits 15 months early, but did not change the timing or amount of his unreduced benefits (shown in the “Pension
Benefits in 2012” table). A grant of additional years of service credit to any employee must be approved by the
compensation committee of the board of directors.
Nonqualified Deferred Compensation in 2012
Name Plan
Executive
Contributions in
Last Fiscal Year
($) 1
Registrant
Contributions in
Last Fiscal Year
($) 2
Aggregate
Earnings in
Last Fiscal Year
($)
Aggregate
Withdrawals/
Distributions in Last
Fiscal Year
($)
Aggregate
Balance at Last
Fiscal Year End
($) 3
Dr. Lechleiter nonqualified savings $75,000 $75,000 $279,334 $1,913,988
deferred compensation $656,250 $312,787 $9,855,721
total $731,250 $75,000 $592,121 $0 $11,769,709
Mr. Rice nonqualified savings $44,400 $44,400 $106,737 $749,503
deferred compensation $0 $0 $0
total $44,400 $44,400 $106,737 $0 $749,503
Dr. Lundberg nonqualified savings $43,710 $43,710 $26,875 $304,791
deferred compensation $0 $0 $0
total $43,710 $43,710 $26,875 $0 $304,791
Mr. Armitage nonqualified savings $35,454 $35,454 $134,266 $862,867
deferred compensation $0 $211,709 $6,588,468
total $35,454 $35,454 $345,975 $0 $7,451,335
Mr. Conterno nonqualified savings $25,170 $25,170 $49,213 $320,381
deferred compensation $100,000 $19,708 $631,863
total $125,170 $25,170 $68,921 $0 $952,244
1 The amounts in this column are also included in the “Summary Compensation Table,” in the “Salary” column
(nonqualified savings) or the “Non-Equity Incentive Plan Compensation” column (deferred compensation).