Sprint - Nextel 2013 Annual Report Download - page 90

Table of Contents
Sprint Retirement Pension Plan
The Qualified Plan is a tax
- qualified defined benefit pension plan. Only individuals who were employed with us prior to August 12, 2005, the date of
the Sprint
- Nextel merger, are eligible to participate in the Qualified Plan. Messrs. Wunsch and Alves were the only named executive officers eligible to
participate in the Qualified Plan for 2013.
Benefits under the Qualified Plan are based on each participant
’ s number of years of credited service and his or her eligible compensation. Benefit
accruals under the plan were frozen on December 31, 2005 for all plan participants. Eligible compensation under the Qualified Plan is equal to the sum of base
salary, certain annual short term incentive compensation, sales commissions and sales bonus compensation, including any amounts deferred under applicable
deferred compensation plans, subject to annual compensation limits under the Internal Revenue Code.
The benefit amount, expressed as a single life annuity beginning at age 65, is equal to:
Benefits are limited by the Internal Revenue Code. The limit for 2013 is $205,000, expressed as a single life annuity beginning at normal retirement age.
Benefits under the Qualified Plan are payable in the form of an annuity with monthly benefit payments. No lump sums are available for the named executive
officers. Benefits under this plan are funded by an irrevocable tax
- exempt trust.
Participants who are at least age 55 and have at least 10 years of service are eligible to elect a reduced early retirement benefit. The benefit is reduced
by 5% for each year the benefit commences before age 65. Both Messrs. Wunsch and Alves were eligible for early retirement benefits under the Qualified Plan
as of December 31, 2013.
Sprint Supplemental Executive Retirement Plan
The SERP is an unfunded, non
- qualified defined benefit pension plan designed to restore a participant ’ s overall retirement benefit to the level that
would have been payable under the Qualified Plan absent certain IRC limitations. Messrs. Wunsch and Alves were the only named executive officers eligible to
participate in the SERP for 2013.
Benefits under the SERP are based on each participant
’ s number of years of credited service and the participant ’ s eligible compensation. Benefit
accruals under the plan were frozen on December 31, 2005 for all plan participants. The years of credited service for eligible named executive officers are based
only on their service while eligible for participation in the Qualified Plan.
Eligible compensation under the SERP is equal to the sum of base salary, certain annual short term incentive compensation, sales commissions, and
sales bonus compensation, inclusive of any amounts deferred under applicable deferred compensation plans. The amount of such compensation is not limited
by the Internal Revenue Code annual compensation limits.
The benefit amount, expressed as a single life annuity beginning at age 65, is equal to:
This benefit amount is reduced by the benefit amount provided by the Qualified Plan.
Benefits under the SERP are payable in the form of an annuity with monthly benefit payments. No lump sums are available for the named executive
officers. The SERP is unfunded; thus, participants are general creditors of ours with respect to their SERP benefit payments.
Participants who are at least age 55 and have at least 10 years of service are eligible to elect a reduced early retirement benefit. The benefit is reduced
by 5% for each year the benefit commences before age 65. Both Messrs. Wunsch and Alves were eligible for early retirement benefits under the SERP as of
December 31, 2013.
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the product of 1.5% and the average annual compensation for the 60 months ending on December 31, 1993, multiplied by the number of years of
credited service through December 31, 1993, plus
•
the product of 1.5% and eligible compensation earned from January 1, 1994 through December 31, 2005.
•
the product of 1.5% and the average annual compensation for the 60 months ending on December 31, 1993, multiplied by the number of years of
credited service through December 31, 1993, plus
•
the product of 1.5% and eligible compensation earned from January 1, 1994 through December 31, 2005.