This excerpt taken from the CCO DEF 14A filed Apr 30, 2009.
2008 PENSION BENEFITS
Clear Channel Outdoor operates a pension plan (with defined benefit and defined contribution sections) for eligible employees based in the UK called the Clear Channel Retirement Benefit Scheme (the Scheme). There are approximately 163 current employees paying into the defined benefit section. The defined benefit section is closed to employees who joined Clear Channel Outdoor after March 1, 2002 or who joined prior to that date but have now reached the age of 35. Mr. Bevan is the only named executive officer that is a participant of the Scheme and the Scheme is the only defined benefit pension plan operated by Clear Channel Outdoor.
Mr. Bevan, age 37, joined the Scheme on December 1, 2003 and has accrued a total of 5 years and 1 month of pensionable service. As a member of the Scheme, Mr. Bevan contributes 8% of his Pensionable Salary per month. Pensionable Salary is defined as base salary as of January 1 of each year, and does not include any bonuses, commissions or car allowance. Clear Channel Outdoor contributes 21.1% of Mr. Bevans Pensionable Salary to the Scheme. As reported in the 2008 Summary Compensation Table, this amount equaled $79,593 in 2008.
Normal retirement age under the Scheme is 60. In general, the Scheme provides a pension on retirement of 1/45 of Final Pensionable Salary for each year and complete month of pensionable service to Clear Channel Outdoor. Final Pensionable Salary is defined as (a) the highest average Pensionable Salary in any three consecutive years prior to normal retirement or date of leaving, or (b) Pensionable Salary as of January 1 immediately before the normal retirement date or the date of leaving if higher. However, as Mr. Bevans Pensionable Salary exceeds the current notional earnings cap of £117,600 per annum, his benefits under the Scheme would be restricted. Assuming he remained in service until age 60, the maximum pension would be based on two-thirds of his Final Pensionable Salary which is restricted to the earnings cap.
Under the Scheme, Mr. Bevan could elect early retirement at any age after 55 (or earlier if in ill health), subject to Clear Channel Outdoors consent. In this case, Mr. Bevan would receive a pension on retirement of 1/45th of his Final Pensionable Salary, less an early retirement reduction factor of 3% per annum simple for each year (and pro-rata for each month) for each of the first 5 years that his retirement date precedes his normal retirement date, and by 6% per annum simple (and pro-rata for each month) thereafter. The actual level of pension would then be subject to a maximum of the amount calculated as actual service divided by potential service times two-thirds of the notional earnings cap.
If Mr. Bevans pensionable service is terminated prior to being eligible for early retirement, then the following options would be available:
Where any pension is put in to payment (from normal or early retirement) then the following would generally apply:
This excerpt taken from the CCO DEF 14A filed Apr 7, 2008.
2007 PENSION BENEFITS