First Data 2008 Annual Report Download - page 221

First Data Corporation Retirement Plan
The Retirement Plan froze benefit accruals as of December 30, 1997 for most Plan participants and as of December 30, 1998 for the remaining Plan
participants. In general, the Retirement Plan provides participants with a life annuity benefit at normal retirement equal to the sum of A plus B plus C, with a
minimum of D:
A. 1% of Average Final Compensation multiplied by Credited Service up to five years; plus
B. 1.15% of Average Final Compensation multiplied by Credited Service for the next five years; plus
C. 1.3% of Average Final Compensation multiplied by Credited Service in excess of ten years.
D. $72 multiplied by Credited Service.
Average Final Compensation is the average of the highest five (out of the last ten) consecutive calendar years of Compensation, up to and including the
year the participant's benefit is frozen. Compensation for calendar years after 1989 is determined as the sum of the base rate of compensation (including any
elective deferrals) on December 31 of the prior calendar year, commissions received during the prior calendar year, and overtime pay and incentive awards
(including bonuses) received during the current calendar year. The Retirement Plan covers such earnings up to the limit imposed by Internal Revenue Code
Section 401(a)(17).
Credited Service includes years and months of employment with the Company, starting on the participant's date of hire and ending as of the
participant's freeze date.
Ms. Patmore was fully vested in her Plan benefit of $180.65 per month, but not eligible for early retirement at the time of her departure from First Data.
Vested participants who terminate prior to becoming eligible for early retirement may choose to receive an unreduced benefit at age 65 or
commencement of benefits as early as age 55 with reductions of 7% per year prior to age 65. The Retirement Plan offers several optional forms of payment,
including joint and survivor annuities, certain and life annuities, and level income annuities. The benefit paid under any of these options is reduced so as to be
equivalent to the life annuity benefit produced by the formula described above. The normal payment form is a single life annuity for unmarried participants
and an unreduced 50% joint and survivor annuity for married participants.
Defined Benefit Section of the First Data Resources Limited Pension Scheme ("UK Pension Plan")
For Mr. Wall and Mr. Yates, the UK Pension Plan provides a lifetime annuity benefit at normal retirement equal to 1/60 of pensionable earnings for
each year of pensionable service, with a deduction of 1/40 of the basic state pension payable to a single person at Normal Retirement Date for each year of
pensionable service.
Pensionable earnings are the annual rate of a participant's basic remuneration and bonuses, subject to statutory limitations. Normal retirement is age 65
for any participant who joined the scheme after March 1, 1992. Participants may elect to receive an actuarially reduced immediate pension as soon as age 50
with the consent of both the Company and the Trustees.
Benefits are normally payable as an annuity; however, a lump sum that does not exceed 25 percent of the participant's benefit under the Scheme is
permissible. Benefit options include joint and survivor options for both spouses and children. Pension cost of living increases occur each year for participants
in payment status at a rate equal to the lesser of five percent or the annual increase rate of the Index of Retail Prices published by the Department of
Employment (or other such suitable index selected by the Trustees).
NONQUALIFIED DEFERRED COMPENSATION
During 2008, no executive officers participated in a nonqualified deferred compensation plan.
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