Fannie Mae 2008 Annual Report Download - page 253

Name of Executive Plan Name
Number of
Years
Credited
Service (#)
(1)
Present Value of
Accumulated
Benefit ($)
(2)
Robert Levin . . . . . . . . . Retirement Plan 28 574,485
Supplemental Pension Plan
2003 Supplemental Pension Plan
Executive Pension Plan 19 3,288,520
(1)
Messrs. Williams and Levin each have fewer years of credited service under the Executive Pension Plan than under the
Retirement Plan because they worked at Fannie Mae prior to becoming participants in the Executive Pension Plan.
(2)
With the exception of Mr. Mudd, the present value has been calculated for the Executive Pension Plan assuming the
named executives will remain in service until age 60, the normal retirement age under the Executive Pension Plan, and
for the Retirement Plan assuming the named executives will remain in service until age 65, the normal retirement age
under the Retirement Plan. Due to the termination of Mr. Mudd’s employment, his present value has been calculated
for the Executive Pension Plan and the Retirement Plan with his actual benefit commencing at age 55. The values also
assume that benefits under the Executive Pension Plan will be paid in the form of a monthly annuity for the life of the
named executive and the named executive’s surviving spouse and benefits under the Retirement Plan will be paid in
the form of a single life monthly annuity for the life of the named executive. The post-retirement mortality assumption
is based on the RP 2000 white collar mortality table projected to 2010. For additional information regarding the
calculation of present value and the assumptions underlying these amounts, see “Notes to Consolidated Financial
Statements — Note 15, Employee Retirement Benefits.” Consistent with the terms of our pension plans, the present
value calculations include as 2008 compensation the portion of retention awards under our 2008 Retention Program
that are scheduled to be paid in 2009.
(3)
Mr. Mudd’s employment agreement provides that if Mr. Mudd’s benefit payments are in the form of a joint and 100%
survivor annuity, the payments will be actuarially reduced to reflect the joint life expectancy of Mr. Mudd and his
spouse.
(4)
Because their employment terminated prior to vesting, Messrs. Swad and Dallavecchia will not receive any benefits
under our pension plans.
Nonqualified Deferred Compensation
The table below provides information on the nonqualified deferred compensation of the named executives in
2008, including compensation deferred under our Elective Deferred Compensation Plan I, Elective Deferred
Compensation Plan II and our Performance Share Program. The table below does not include amounts
deferred under our Supplemental Retirement Savings Plan, because none of our named executives had a
balance under that plan during 2008.
Supplemental Retirement Savings Plan. Our Supplemental Retirement Savings Plan is an unfunded, non-tax-
qualified defined contribution plan that became effective July 1, 2008 as part of our redesign of our retirement
benefits program. The Supplemental Retirement Savings Plan is intended to supplement our Retirement
Savings Plan, or 401(k) plan, to provide benefits to participants who are not “grandfathered” under our
defined-benefit Retirement Plan and whose annual eligible earnings exceed the IRS annual limit on eligible
compensation for 401(k) plans (for 2008, the limit was $230,000). None of our named executives participated
in the Supplemental Retirement Savings Plan during 2008.
For 2009, we will contribute 8% of a participating employee’s eligible compensation that exceeds the IRS
annual limit for 2009 ($245,000). Eligible compensation for a year consists of base salary plus annual bonus
earned in that year, plus retention bonuses earned for the year under the 2008 Retention Program, up to a
combined maximum of two times base salary. Twenty-five percent of the contribution will vest after the
participant has completed three years of service with us. The remaining 75% of the contribution will be
immediately vested.
While the Supplemental Retirement Savings Plan is not funded, amounts credited on behalf of a participant
under the Supplemental Retirement Savings Plan are deemed to be invested in mutual fund investments similar
to the investments offered under our 401(k) plan. Participants may make changes to their investment elections
on a daily basis.
Amounts deferred under the Supplemental Retirement Savings Plan are payable to participants in the January
or July following separation from service with us, subject to a six month delay in payment for officers who
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