McKesson 2005 Annual Report Download - page 145

Plan) the percentages that have been so specified. For example, if an Executive’s percentage is reduced from 60% to 50%, and one-half of the
Executive’s Plan participation is at 60% and one-half at 50%, the percentage used to determine the Executive’s benefits shall be 55%.
In addition, the benefit payable under this Plan after a reduction in such percentage shall not be less than the benefit that would have
been paid if the Plan had been terminated with respect to the Executive on the date of such reduction.
If the percentage of Average Final Compensation specified in Section D.l.a is increased, such increased percentage shall apply for
determining Plan benefits without averaging it with prior percentages, and all prior Plan participation shall be treated as having been
participation under that increased percentage.
f. Reduction for Basic Retirement Benefits. The reduction for the Executive’s Basic Retirement Benefits shall be applied, unless
otherwise provided herein, by calculating all benefits as if they were payable in the form of a straight life annuity beginning at the date of
Approved Retirement, without survivor benefits. There is no requirement, however, that the benefits payable under this Plan and any other plan
be paid in the same form or at the same time.
2. Time of Payment. The benefits provided on Approved Retirement shall commence on the first day of the month following the date the
Executive’s Service terminates.
3. Reduction for Early Commencement of Approved Retirement. If an Executive’s Approved Retirement occurs before the date the
Executive attains age 62, the Executive shall receive a reduced benefit commencing on the first day of the month following such Approved
Retirement. This benefit shall be reduced by 0.3% for each month the Executive’s Approved Retirement precedes the date the Executive will
attain age 62. The reduction for Basic Retirement Benefits shall be applied by calculating all benefits as if they were payable in the form of a
straight life annuity at the date of such Approved Retirement before age 62, without survivor benefits, to determine the net benefit payable
under this Plan. See Appendix A for an example of this calculation.
4. No Election of Delayed Retirement Benefit. An Executive may not elect to delay the beginning of his or her retirement benefits under
the Plan after the time for commencement specified in Section D.2.
E. DEATH BENEFITS
1. Death After Approved Retirement. If an Executive dies after Approved Retirement, benefits shall be paid after the Executive’s death
only in accordance with the method of payment determined under Section H. For example, if the Executive received a straight life annuity or a
lump sum, no benefits shall be paid under this Plan after the Executive’s death.
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