McKesson 2005 Annual Report Download - page 144

D. BENEFITS ON APPROVED RETIREMENT
1. Amount of Benefits.
a. In General. Except as otherwise provided herein, each Executive who participates in the Plan and terminates employment by reason
of an Approved Retirement shall be entitled to receive monthly payments equal to (1) reduced by (2), as follows:
(1) the percentage of Average Final Compensation specified for the Executive, which shall be as provided herein and no higher than
60%
reduced by
(2) the Executive’s Basic Retirement Benefits.
The percentage stated in clause (1) may be specified by the Compensation Committee or may be specified in the Executive’s written
employment contract with the Company. Unless otherwise determined by the Compensation Committee, the percentage of Average Final
Compensation specified in clause (1) shall be 20% plus 0.148% for each completed month (1.77% per completed year) of the Executive’s full-
time continuous employment with the Company, but in no event shall such percentage be higher than 60%.
b. Special Rule. The benefit of an Executive under this Section D. who is a participant in the Plan as of August 28, 1996, shall not be
less than such Executive’s benefit calculated pursuant to Section F.1.a of the Plan, without regard to any reduction required by Section D.3 of
the Plan.
c. Effect of Plan Termination. If the Plan is terminated with respect to any or all Executives, each affected Executive who later
terminates employment by reason of an Approved Retirement shall be entitled to receive upon such Approved Retirement monthly payments
equal to (1) the applicable percentage of Average Final Compensation under Section D.1.a multiplied by the Executive’s Pro Rata Percentage,
reduced by (2) the Executive’s Basic Retirement Benefits. For purposes of this section, the Executive’s Pro Rata Percentage and Average Final
Compensation shall be calculated by treating the date of Plan termination as the date that the Executive’s employment with the Company
terminates.
d. Removal from Participation. If an Executive is removed from Plan participation and later terminates employment by reason of an
Approved Retirement, the Executive shall be treated as if the Plan were terminated with respect to the Executive as of the date of removal, and
the Executive’s benefits shall be determined under Section D.1.b above except that the Executive’s Basic Retirement Benefits reduction shall
be determined as of the date of the Executive’s Approved Retirement.
e. Change in Percentage.
If the percentage of Average Final Compensation specified in Section D.l.a is reduced, the percentage applied to determine the
Executive’s benefit shall be determined by averaging over the Executive’s period of participation in the Plan (and in the Executive Benefit
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