McKesson 2005 Annual Report Download - page 146

2. Death While Employed.
a. Benefits Payable to Beneficiary. If an Executive dies while employed by the Company, the Executive’s beneficiary shall receive the
monthly benefit that would have been paid to such beneficiary if the Executive had terminated employment by reason of an Approved
Retirement on the last day of the month before the Executive’s death, had elected to receive benefits in the actuarially reduced form of a joint
and 100% survivor annuity with the Executive’s beneficiary as the contingent annuitant, had begun to receive such benefits on the day prior to
the Executive’s death, and died immediately thereafter. Such payment shall be calculated by first determining the amount payable to the
Executive under this Plan without reduction for Basic Retirement Benefits (applying the reduction, if applicable, for early commencement of
such benefit as set forth in Section D.3 and applying the actuarial reduction for joint and 100% survivor annuity) and only thereafter making a
reduction for Basic Retirement Benefits. The reduction for Basic Retirement Benefits in connection with the Retirement Plan in this case shall
be in the amount payable, if any, under the Retirement Plan as a spouse allowance; if any spouse allowance is payable under the Retirement
Plan on account of the Executive, this reduction shall be made even if the Executive’s beneficiary under this Plan is not the Executive’s
surviving spouse. See Appendix B for an example of this calculation. The foregoing notwithstanding, if prior to death the Executive had made
an election to receive a lump sum form of distribution and the Compensation Committee approves such form of distribution, distribution shall
be made to the beneficiary in the form of a lump sum payment.
b. Average Final Compensation. For purposes of the calculations under this Section E.2, the Executive’s Average Final Compensation
shall be based on the compensation by the Executive actually earned during the Executive’s employment with the Company.
c. No Designated Beneficiary. If an Executive dies before Approved Retirement without having designated a beneficiary, and was
married on the date of death, the Executive’s surviving spouse shall be the Executive’s beneficiary, unless otherwise provided by applicable
community property or other laws or court order. If an Executive dies before Approved Retirement, has no surviving spouse and has not
designated a beneficiary, the present value of the benefits that would be paid to a surviving spouse of the same age as the Executive under a
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oint and 100% survivor annuity form (and under the method of calculation provided in Section E.2.a and b) shall be paid to the Executive’s
estate in two equal amounts in the 14 months following death. The present value of benefits shall be determined under factors established and
uniformly applied by the Administrator.
3. Designation of Beneficiary. An Executive may designate any natural person as his or her beneficiary, but may not designate more than
one person, or any person not a natural person, without the approval of the Administrator. Designation shall be made in writing and shall
become effective only when filed with the Administrator. Such filing must occur before the Executive’s death. An Executive may change his or
her beneficiary, from time to time, by filing a new written designation with the Administrator. If the Executive is married, any beneficiary
designation which does not designate the Executive’s spouse to receive at least one-half of the benefit payable on the Executive’s death shall
only become effective when approved in writing by the Executive’s spouse.
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