This excerpt taken from the PBI DEF 14A filed Apr 3, 2007.
PENSION BENEFITS AS OF DECEMBER 31, 2006
The Pension Benefits table presents the present value of accumulated pension benefits as of December 31, 2006. The Pitney Bowes Pension Plan is a qualified pension plan for U.S. employees, while the Pitney Bowes Pension Fund is a qualified pension plan for U.K. employees. Under the qualified Pension Plan, employees receive retirement benefits each year based on compensation up to a maximum of $220,000 for 2006. Pension amounts for compensation above $220,000 are accrued under the nonqualified Pension Restoration Plan based on the same formula used under the qualified plan. Payments under the nonquali-fied Pension Restoration Plan are paid from our general assets. These payments are substantially equal to the difference between the amount that would have been payable under our qualified Pension Plan in the absence of legislation limiting pension benefits and earnings that may be considered in calculating pension benefits, and the amount actually paid under our qualified Pension Plan. Pitney Bowes does not maintain an excess benefit plan with special provisions, such as above-market interest rates and excess service credits.
Other than Ms. Mayes, who joined the company in 2003, all of the named executive officers are fully vested in their pension benefit.
The material terms of the U.S. Pension and Pension Restoration plans are summarized below:
The material terms of the U.K. Pension Fund are summarized below: