Guest meggie Posted April 30, 2001 Posted April 30, 2001 Does anyone know of any set rules with regard to providing defined benefit information for top executives for proxy statements? I tried the SEC website- and couldn't find anything, except some sample (1993-1994) Executive Compensation information for 3 companies. One sample included a range of benefit levels based on hypothetical salary and service and then separately identified the top executives with current average pay and current accrued service. A comment was included in this sample that the company was not able to "project estimated benefits at this time". Another sample pretty much had the same type of information. Are there any specific guidelines (SEC or Accounting)on what should be included- ex. estimated benefit at NRA, assume salaries increase if project, or just current accrued information? I'm thinking this is a employer decision on how to present the information. Thanks __________________
Guest David Thomas Posted April 30, 2001 Posted April 30, 2001 Item 402(f) of Regulation S-K contains the rules for disclosure of pension plan information. http://www.law.uc.edu/CCL/regS-K/SK402.htm...gS-K/SK402.html [Follow the link, it looks better than what I have pasted] Defined benefit or actuarial plan disclosure-- Pension plan table. For any defined benefit or actuarial plan under which benefits are determined primarily by final compensation (or average final compensation) and years of service, provide a separate Pension Plan Table showing estimated annual benefits payable upon retirement (including amounts attributable to any defined benefit supplementary or excess pension award plans) in specified compensation and years of service classifications in the format specified below. PENSION PLAN TABLE Remuneration Years of Service 15 20 25 30 35 125,000 150,000 175,000 200,000 225,000 250,000 300,000 400,000 450,000 500,000 Immediately following the Table, the registrant shall disclose: The compensation covered by the plan(s), including the relationship of such covered compensation to the annual compensation reported in the Summary Compensation Table required by paragraph (B)(2)(iii) of this item, and state the current compensation covered by the plan for any named executive officer whose covered compensation differs substantially (by more than 10%) from that set forth in the annual compensation columns of the Summary Compensation Table; The estimated credited years of service for each of the named executive officers; and A statement as to the basis upon which benefits are computed (e.g., straight-life annuity amounts), and whether or not the benefits listed in the Pension Plan Table are subject to any deduction for Social Security or other offset amounts. Alternative pension plan disclosure. For any defined benefit or actuarial plan under which benefits are not determined primarily by final compensation (or average final compensation) and years of service, the registrant shall state in narrative form: The formula by which benefits are determined; and The estimated annual benefits payable upon retirement at normal retirement age for each of the named executive officers. -------------------------------------------------------------------------------- Instructions to Item 402(f): Pension Levels. Compensation set forth in the Pension Plan Table pursuant to paragraph (f)(1)(i) of this item shall allow for reasonable increases in existing compensation levels; alternatively, registrants may present as the highest compensation level in the Pension Plan Table an amount equal to 120% of the amount of covered compensation of the most highly compensated individual named in the Summary Compensation Table required by paragraph (B)(2) of this item. Normal Retirement Age. The term "normal retirement age" means normal retirement age as defined in a pension or similar plan or, if not defined therein, the earliest time at which a participant may retire without any benefit reduction due to age. --------------------------------------------------------------------------------
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