Voya 2013 Annual Report Download - page 454

(6) Represents vesting of a portion of an ING Group deferred share award granted under the LSPP during 2011.
(7) Represents vesting of a portion of an ING Group deferred share award granted under the LEO Plan during
2010.
(8) Represents exercise of an option to acquire ING Group ordinary shares.
(9) Represents vesting of a portion of ING Group equity awards granted under the Equity Plan during 2010.
Pension Benefits
As described above under “—2013 Compensation—Tax-qualified and Non-qualified Retirement and Other
Deferred Compensation Plans,” the Company maintains tax-qualified and nonqualified defined benefit (pension)
plans that provide retirement benefits for employees whose length of service allows them to vest in and receive
these benefits. During 2013, regular full-time and part-time employees of the Company who were hired before
January 1, 2009 and completed one year of service were covered by the Retirement Plan. Certain highly
compensated employees who participate in the Retirement Plan whose benefits cannot be paid from the
Retirement Plan as a result of tax limitations and who are designated by the Company are also eligible to
participate in the SERP.
The benefit under the Retirement Plan for employees who participated prior to January 1, 2009 is currently
calculated using a final average pay pension formula based on the employee’s average compensation for the
highest five consecutive whole calendar years of benefit service earned during a period ranging from 10 to 20
years preceding the date of retirement. Eligible compensation generally includes base salary, annual incentive
award and commissions, if applicable. The SERP benefit is equal to the difference between (a) the participant’s
retirement benefit before taking into account the tax limitations on eligible compensation and other compensation
deferrals and (b) the participant’s actual retirement benefit paid from the Retirement Plan. Pension benefits under
the Retirement Plan and SERP are generally payable in the form of a monthly annuity, though certain benefits
under the Retirement Plan may be received as a lump-sum or partial lump-sum payment.
A participant’s retirement benefits under the Retirement Plan and the SERP vest in full upon completion of
three years of vesting service, when the participant reaches age 65 or if the participant dies while in active service
with the Company. Participants may begin receiving full retirement benefits at age 65 and may be eligible for
reduced benefits if retiring at an earlier age with a minimum of three years of vesting service. As of
December 31, 2013, Messrs. Martin and Karaoglan, and Ms. Beams, were each eligible for early retirement
under the Retirement Plan. Benefits under the SERP may be forfeited at the discretion of the Company if the
participant engages in unauthorized competition with the Company, is discharged for cause, or performs acts of
willful malfeasance or gross negligence in a matter of material importance to the Company. The Retirement Plan
and the SERP were closed to new participants effective January 1, 2009.
Beginning January 1, 2012, all Voya Financial employees transitioned to a new cash balance pension formula
under the Retirement Plan. A similar change to the SERP was also made. The cash balance pension formula credits
4% of eligible compensation to a hypothetical account in the Retirement Plan and SERP, as applicable, each month.
Account balances receive a monthly interest credit based on a 30-year Treasury bond rate published by the IRS in
the preceding August of each year (for 2013 that rate was 2.77%). Participants in the Retirement Plan and SERP
prior to January 1, 2012, including Mr. Becker, transitioned to the new cash balance pension formula during the
two-year period ending December 31, 2013. Benefits that accrued during the transition period have been determined
based on the prior final average pay pension formula or the new cash balance pension formula, whichever is greater.
Pension benefits that accrue after the transition period will be solely based on the new cash balance pension
formula. Because they began employment after December 31, 2008, the benefits of Messrs. Martin and Karaoglan,
and Ms. Beams, will be determined based solely on the new cash balance pension formula.
Prior to April 1, 2013, Mr. Steenbergen participated in the ING Group Directors’ Pension Scheme (the
“Directors’ Pension Plan”), to which a percentage of his base salary was automatically contributed. The benefit
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