Fannie Mae 2009 Annual Report Download - page 232

balances to a variety of investment options. Prior to January 1, 2008, we matched employee contributions up
to 3% of base salary in cash. Effective January 1, 2008 for new hires and rehires after that date and effective
June 22, 2008 for non-grandfathered employees, we increased our matching contributions from 3% of base
salary to 6% of base salary, eligible bonuses and overtime. All non-grandfathered employees and post-2007
new hires and rehires are 100% vested in our matching contributions. Grandfathered employees continue to
receive benefits under the 3% of base salary matching program and are fully vested in our matching
contributions after five years of service. Messrs. Williams, Bacon and Benson are grandfathered employees
and therefore receive benefits under the 3% matching program, while Messrs. Johnson and Mayopoulos are
non-grandfathered employees and therefore receive benefits under the 6% matching program.
All employees, with the exception of those participating in the Executive Pension Plan (which includes
Messrs. Williams and Bacon), receive an additional 2% contribution (based on salary for grandfathered
employees and on salary, eligible bonuses and overtime for non-grandfathered employees, new hires and
rehires) from the company regardless of employee contributions to this plan. Participants are fully vested in
this 2% contribution after three years of service.
Nonqualified Deferred Compensation
Supplemental Retirement Savings Plan. Our Supplemental Retirement Savings Plan is an unfunded, non-tax-
qualified defined contribution plan that became effective in 2008 as part of the 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 2009, the limit was $245,000). Messrs. Johnson and Mayopoulos are the
named executives who participated in the Supplemental Retirement Savings Plan in 2009.
For 2009, we credited 8% of a participating employee’s eligible compensation that exceeds the IRS annual
limit for 2009. Eligible compensation for a year consisted of base salary plus any annual bonus earned for that
year, plus any awards earned for that year under the 2008 Retention Program, up to a combined maximum of
two times base salary. The 8% credit consists of two parts: (1) a 2% credit that will vest after the participant
has completed three years of service with us; and (2) a 6% credit that is 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 change 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 the 50 most
highly-compensated officers. Participants may not withdraw amounts from the Supplemental Retirement
Savings Plan while they are employed by us.
Elective Deferred Compensation Plan I. Our Elective Deferred Compensation Plan I allowed eligible
employees to defer up to 50% of their salary and up to 100% of their bonus to future years. Deferred amounts
are deemed to be invested in mutual funds or in an investment option with earnings benchmarked to our long-
term borrowing rate, as designated by the participants. This deferred compensation plan is an unfunded plan.
Mr. Bacon was our only named executive that participated in our Elective Deferred Compensation Plan I in
2009, which was frozen as to future deferrals in 2004.
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