Fannie Mae 2012 Annual Report Download - page 213

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fully offset the value of the additional years of benefits he will receive by electing to receive benefits earlier. The present values assume
that benefits under these plans will be paid to Mr. Williams in the form of a monthly annuity for Mr. Williams’ life and that of
Mr. Williams’ surviving spouse, reflecting Mr. Williams’ benefit election under the plans. The postretirement mortality assumption for
both Mr. Benson and Mr. Williams is based on the IRS prescribed mortality table for 2013 funding purposes. Under the terms of the
2003 Supplemental Pension Plan, deferred salary for 2012 has been taken into account for the purpose of determining the present value
of Mr. Benson’s accumulated benefit under the plan as of December 31, 2012. For additional information regarding the calculation of
present value and the assumptions underlying these amounts, see “Note 12, Employee Retirement Benefits.”
(3) The present value of accumulated benefit for Mr. Williams for the Supplemental Pension Plan and 2003 Supplemental Pension Plan
shown in this table reflects only the amounts accrued under these plans in 2010 and 2011. Although Mr. Williams has 22 years of
credited service under the Supplemental Pension Plan and 2003 Supplemental Pension Plan, as of December 31, 2012, his aggregate
benefit under these plans for years prior to 2010 and for 2012 is offset by the benefit that he would receive upon his retirement under
the Executive Pension Plan.
Nonqualified Deferred Compensation
We provide nonqualified deferred compensation to the named executives pursuant to our Supplemental Retirement Savings
Plan. Our Supplemental Retirement Savings Plan is an unfunded, non-tax-qualified defined contribution plan for non-
grandfathered employees. The Supplemental Retirement Savings Plan is intended to supplement our Retirement Savings
Plan, or 401(k) plan, by providing benefits to participants whose annual eligible earnings exceed the IRS annual limit on
eligible compensation for 401(k) plans (for 2012, the limit was $250,000). Ms. McFarland and Messrs. Mayopoulos,
Edwards and Nichols are the named executives who participated in the Supplemental Retirement Savings Plan in 2012.
For 2012, we credited 8% of the eligible compensation for Ms. McFarland and Messrs. Mayopoulos, Edwards and Nichols
that exceeded the IRS annual limit for 2012. Eligible compensation for Ms. McFarland and Messrs. Mayopoulos, Edwards
and Nichols consists of base salary plus any eligible incentive compensation (which includes deferred salary) earned for that
year, up to a combined maximum of two times base salary. The 8% credit consists of two parts: (1) a 2% credit that will vest
after the participant has completed three years of service with us; and (2) a 6% credit that is immediately vested.
While the Supplemental Retirement Savings Plan is not funded, amounts credited on behalf of a participant under the
Supplemental Retirement Savings Plan are deemed to be invested in mutual fund investments similar to the investments
offered under our 401(k) plan. Participants may change their investment elections on a daily basis.
Amounts deferred under the Supplemental Retirement Savings Plan are payable to participants in the January or July
following separation from service with us, subject to a six month delay in payment for the 50 most highly-compensated
officers. Participants may not withdraw amounts from the Supplemental Retirement Savings Plan while they are employed by
us.
The table below provides information on the nonqualified deferred compensation of the named executives for 2012.
Nonqualified Deferred Compensation for 2012
Name
Executive
Contributions
in Last
Fiscal Year ($)
Company
Contributions in
Last Fiscal Year
($)(1)
Aggregate
Earnings in
Last Fiscal
Year ($)(2)
Aggregate
Withdrawals/
Distributions ($)
Aggregate
Balance at
Last Fiscal
Year-End ($)(3)
Timothy Mayopoulos
Supplemental Retirement Savings Plan. . — 60,000 18,759 — 200,030
Michael Williams
2001 Special Stock Award(4) . . . . . . . . . . — — 46 (322) —
Susan McFarland
Supplemental Retirement Savings Plan. . — 51,077 2,349 — 56,936
David Benson . . . . . . . . . . . . . . . . . . . . . . . — — — — —
Terence Edwards
Supplemental Retirement Savings Plan. . — 60,000 9,315 — 159,522
John Nichols
Supplemental Retirement Savings Plan. . — 41,862 2,029 — 51,726
__________
(1) All amounts reported in this column for Ms. McFarland and Messrs. Mayopoulos, Edwards and Nichols as company contributions in
the last fiscal year pursuant to the Supplemental Retirement Savings Plan are also reported as 2012 compensation in the “All Other
Compensation” column of the “Summary Compensation Table for 2012, 2011 and 2010.”