This excerpt taken from the TDC DEF 14A filed Mar 3, 2008.
Messrs. Koehler, Young, Langos, Harrington and Fair are all participants in NCRs pension plans. Mr. Scheppmann joined Teradata prior to the spin off, but after NCR discontinued its pension plans in the United States, and, therefore, is not eligible for any pension benefits at NCR.
NCR Pension Plan
The NCR Pension Plan is a non-contributory, qualified pension plan that previously covered all NCR employees based in the United States. The NCR Pension Plan pays a monthly pension benefit and a PensionPlus benefit, each of which vests after the earlier of five years of service or attaining age 65. The full monthly pension benefit may begin at age 62, but may be started between age 55 and 62 in a reduced amount at the option of the participant after the participant has terminated employment. The PensionPlus benefit may be taken as a lump sum after termination of employment, or may be used to increase the monthly pension benefit.
The monthly pension benefit is computed by multiplying the following three items: (i) the participants years of service with NCR, (ii) a factor between 1.3% and 1.7%, depending on the participants total years of service, and (iii) the participants modified average pay. Modified average pay is the average annual base pay and bonus received during a participants career, with an adjustment to pay for earlier years when earnings typically were less. The PensionPlus benefit is computed as an account balance, although the account is for bookkeeping purposes only. The plan allocates to a participants account each month 1 1/2 % (3% in the case of employees hired on and after June 1, 2002) of the participants compensation for such month, and also provides monthly interest credits on the participants account balance. These interest credits will continue despite the plan being frozen, as long as the participant remains an employee of NCR.
NCR Nonqualified Excess Plan
NCR also maintains the NCR Nonqualified Excess Plan (the Excess Plan), which pays the additional pension benefits that would be paid under the NCR Pension Plan if certain federal limits on the amount of pay that may be considered under the NCR Pension Plan were not in effect. Benefits are calculated in the same way as under the NCR Pension Plan, and vesting provisions are the same. Messrs. Koehler, Langos, Harrington and Fair each participate in the Excess Plan.
Supplemental Retirement Plans
NCR also maintains a supplemental retirement plan for senior managers called the Retirement Plan for Officers of NCR (the Officer Plan). This plan covers senior managers appointed to specified executive levels after November 30, 1988. Mr. Koehler participates in the Officer Plan.
The Officer Plan pays monthly benefits in an amount equal to 2.5% of career average monthly pay for service after becoming a plan participant and vests after the earlier of five years of service or attaining age 65. The full monthly pension benefit may begin at age 62, but may be started between age 55 and 62 in a reduced amount at the option of the participant after the participant has terminated employment.