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This excerpt taken from the DBD DEF 14A filed Mar 19, 2007. Supplemental
Executive Retirement Plan II
SERP II provides a restoration benefit only prior to
age 60. This means that the benefit is equal to the
difference between what the Qualified Retirement Plan would have
paid if there were no IRS limits on compensation ($220,000 in
2006) or benefits and what the Qualified Retirement Plan
actually paid. At age 60, it provides a supplemental
monthly retirement benefit in an amount such that a
participant’s total retirement benefit from the Qualified
Retirement Plan and SERP II plus one-half of the
participant’s anticipated Social Security benefit payable
at age 65, equals 50% of the participant’s final
average compensation received from the Corporation during the
highest five consecutive full calendar years of the last ten
full calendar years of employment. This amount is prorated for
less than 30 years of service. Compensation is defined for
this purpose as salary plus bonus accrued for each such calendar
year.
SERP II benefits are payable at age 65 as a straight
life annuity. Joint and survivor options are available on an
actuarially equivalent basis. A participant may also elect to
receive benefits accrued as of December 31, 2004, in a lump
sum payment at retirement. Benefits are available to
participants electing to retire early at age 60 (on an
actuarially reduced basis). Participants who have at least
15 years of service and who become disabled while employed
are eligible for an immediate benefit. Benefits are also
available to participants whose employment is involuntarily
terminated with no service requirement.
Accrued benefits under SERP II are fully vested in the
event of a change in control of the Corporation.
Table of Contents
SERP II replaced SERP I for newly eligible executives
through December 31, 2006.
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