Kodak 2008 Annual Report Download - page 189

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PENSION BENEFITS FOR 2008
The Pension Benefits Table below shows the present value as of December 31, 2008 of the accumulated benefits payable to each of our
Named Executive Officers, including the number of years of service credited to each Named Executive Officer, under KRIP, KURIP and,
when applicable, their supplemental individual retirement arrangements. The methods and assumptions for calculating the present value of
accumulated benefits generally follow those set forth in statement No. 87 under GAAP and are consistent with those used in our financial
statements as described in Note 17 to the Notes to the Consolidated Financial Statements to the Company’s Form 10-K for the year ended
December 31, 2008. The present value has been calculated for all Named Executive Officers, with the exception of Ms. Hellyar and Mr.
Berman, assuming they will remain in service until the normal retirement age of 65, and that the benefit is payable as a lump sum. The
present value of Ms. Hellyar’s and Mr. Berman’s accumulated benefit assumed a benefit commencement at age 60, when each of them
would be entitled to retire without any benefit reduction, in the form of a straight life annuity.
Name Plan Name
Number of Years
of Credited Service
(#)
Present Value of
Accumulated Benefit
($)
Payments During
Last Fiscal Year
($)
A.M. Perez KRIP 5.75
$ 57,280
$0
KURIP 5.75
918,494
0
Individual Arrangement 18.91(1)
8,958,240
0
F.S. Sklarsky KRIP 2.17
16,192
0
KURIP 2.17
83,732
0
Individual Arrangement 2.17
142,263
0
P.J. Faraci KRIP 4.08
29,111
0
KURIP 4.08
136,823
0
Individual Arrangement 9.92(2)
985,714
0
M.J. Hellyar KRIP 26.17
724,676
0
KURIP 26.17
1,811,009
0
R.L. Berman KRIP 26.67
530,616
0
KURIP 26.67
1,192,239
0
Former Executive
J.T. Langley KRIP N/A
N/A
51,034
KURIP N/A
N/A
168,509
Individual Arrangement N/A
N/A
500,013
(1) Mr. Perez has been employed with the Company for 5.75 years as of December 31, 2008. Under his individual arrangement, he
has accumulated 18.91 years, representing a difference of 13.16 years of additional service. Of Mr. Perez’s total accumulated
benefit shown above, $6,234,935 is attributable to his additional credited service as of December 31, 2008.
(2) Mr. Faraci has been employed with the Company for 4.08 years as of December 31, 2008. Under his individual arrangement, he
has accumulated 9.92 years, representing a difference of 5.84 years of additional service. Of Mr. Faraci's total accumulated
benefit shown above, $579,832 is attributable to his additional credited service as of December 31, 2008.
Tax-Qualified Retirement Plan (KRIP)
The Company funds a tax-qualified defined benefit pension plan (KRIP) for virtually all U.S. employees. Effective January 1, 2000, the
Company amended the plan to include a cash balance component. KRIP’s cash balance component covers all new employees hired after
March 31, 1999, including Messrs. Perez, Sklarsky, Faraci and Langley. Ms. Hellyar and Mr. Berman are the only Named Executive
Officers who participate in KRIP’s traditional defined benefit component.
Cash Balance Component
Under KRIP’s cash balance component, a hypothetical account is established for each participating employee and, for every month the
employee works, the employee’s account is credited with an amount equal to 4% of the employee’s monthly pay (i.e., base salary and
EXCEL awards, including allowances in lieu of salary for authorized periods of absence, such as illness, vacation or holidays). In addition,
the ongoing balance of the employee’s account earns interest at the 30-year Treasury bond rate. Employees vest in their account balance
after completing three years of service. Benefits under the cash balance component are payable upon normal retirement (age 65), vested
termination or death. Participants in the cash balance component of the plan may choose from among optional forms of benefits such as a
lump sum, a joint and survivor annuity, and a straight life annuity.