Fannie Mae 2009 Annual Report Download - page 231

determining benefits under the 2003 Supplemental Pension Plan, the amount of an officer’s annual cash bonus
and retention award taken into account is limited in the aggregate to 50% of the officer’s base salary. Benefits
under the supplemental defined benefit pension plans typically commence at the later of age 55, separation
from service or the date elected in advance by the participant. Officers who are eligible to participate in the
Executive Pension Plan will receive the greater of their Executive Pension Plan benefits or combined
Supplemental Pension Plan and 2003 Supplemental Pension Plan benefits.
The table below shows the years of credited service and the present value of accumulated benefits for each
named executive as of December 31, 2009. For Messrs. Williams and Bacon, the table shows benefits under
the Executive Pension Plan, but not our supplemental defined benefit pension plans, because we have assumed
that as of December 31, 2009, upon his retirement, the benefits each of Messrs. Williams and Bacon would
receive under the Executive Pension Plan will be greater than the combined benefits he would receive under
our supplemental defined benefit pension plans, and that therefore he will receive no benefits under our
supplemental defined benefit pension plans. For Mr. Benson, the table shows benefits under the Supplemental
Pension Plan and the 2003 Supplemental Pension Plan, as he does not participate in the Executive Pension
Plan.
Pension Benefits for 2009
Name Plan Name
Number of
Years
Credited
Service (#)
(1)
Present Value of
Accumulated
Benefit ($)
(2)
Michael Williams . . . . . Retirement Plan 19 374,882
Supplemental Pension Plan
2003 Supplemental Pension Plan
Executive Pension Plan 9 2,896,593
Herbert Allison . . . . . . . Not applicable
David Johnson. . . . . . . . Not applicable
Kenneth Bacon
(3)
. . . . . . Retirement Plan 17 405,404
Supplemental Pension Plan
2003 Supplemental Pension Plan
Executive Pension Plan 5 1,127,267
David Benson . . . . . . . . Retirement Plan 8 135,137
Supplemental Pension Plan 8 106,574
2003 Supplemental Pension Plan 8 128,260
Timothy Mayopoulos . . . Not applicable
(1)
Messrs. Williams and Bacon have fewer years of credited service under the Executive Pension Plan than under the
Retirement Plan because they each worked at Fannie Mae prior to becoming a participant in the Executive Pension
Plan.
(2)
The present value for the Executive Pension Plan assumes that the named executives will remain in service until
age 60, the normal retirement age under the Executive Pension Plan, and for the Retirement Plan, Supplemental
Pension Plan and 2003 Supplemental Pension Plan assumes that the named executives will remain in service until
age 65, the normal retirement age under those plans. 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 postretirement mortality assumption is based on the RP 2000 white collar
mortality table projected to 2010. The final payments of the 2008 Retention Program award, paid in February 2010,
have been taken into account for the purpose of determining present value as of December 31, 2009. For additional
information regarding the calculation of present value and the assumptions underlying these amounts, see “Note 14,
Employee Retirement Benefits” in this report.
(3)
Mr. Bacon is eligible for early retirement under the Retirement Plan and Executive Pension Plan. The terms of early
retirement under these plans are described above under “Defined Benefit Pension Plans.”
Retirement Savings Plan
The Retirement Savings Plan is a defined contribution plan that includes a 401(k) before-tax feature, a regular
after-tax feature and a Roth after-tax feature. Under the plan, eligible employees may allocate investment
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