Windstream 2008 Annual Report Download - page 31

participant’s retirement benefit under the BRP shall commence as of the first day of the first month following the
later of (i) his 60th birthday or (ii) the six-month anniversary of the participant’s separation from service. Benefits
are paid over the life of the participant if the participant is alive when benefits commence or over the life of the
spouse if the benefit is paid as a pre-retirement death benefit. The benefit will be paid in one lump sum payment
if the actuarial present value is less than $30,000. To the extent permitted by 409A, the Benefits Committee may
direct that the benefit be paid in an alternative form provided that it is the actuarial equivalent of the normal form
of benefit so that the BRP benefit is paid in the same form as the Pension Plan benefit. None of the named
executive officers were yet eligible to commence their benefit under the BRP as of the end of 2008.
The following table shows certain information regarding benefits under the Windstream Pension Plan as of
December 31, 2008 for the individuals named below.
PENSION BENEFITS
Name Plan Name
Number of Years
Credited Service
(#) (1)
Present Value of
Accumulated Benefit
($) (2)
Payments During
Last Fiscal Year
($)
Jeffery R. Gardner Pension Plan 10 147,495 -0-
Benefit Restoration Plan - 961,285 -0-
Brent Whittington Pension Plan 3.5 22,477 -0-
Benefit Restoration Plan - - -0-
John P. Fletcher - - - -
Richard J. Crane Pension Plan 8.42 172,217 -0-
Benefit Restoration Plan - 60,989 -0-
Robert G. Clancy Pension Plan 10 106,909 -0-
Benefit Restoration Plan - 26,597 -0-
(1) The plans recognize all prior years of service under the Alltel Corporation Pension Plan and the Alltel
Corporation Benefit Restoration Plan.
(2) The present value of accumulated benefits includes the present value of the benefits transferred from the
Alltel Corporation Pension Plan and the Alltel Corporation Benefit Restoration Plan as part of the spin-off. The
present value of accumulated benefits was calculated based on retirement at age 60 with 20 years of credited
service, current compensation as of December 31, 2008, no pre-retirement decrements, the RP-2000 combined
healthy mortality table (projected to 2009), and a 6.18% discount rate, which is the same rate used for preparing
Windstream’s consolidated financial statements.
Non-Qualified Deferred Compensation
The Windstream 2007 Deferred Compensation Plan (the “2007 Plan”) is a non-qualified deferred plan
offered to the executive officers and other key employees. Participants may defer up to 25% of base salary and
50% of bonus. The plan also allows the company to make matching contributions over the IRS limits. The
company matched 6% of compensation between the 401(k) qualified plan and the non-qualified plan for 2008.
For 2009, that amount will be 4%. Participant accounts are credited with earnings based on a portfolio of
investment funds. For amounts deferred prior to 2008, accounts are credited with earnings based on the prime
rate in effect on the first business day of the following calendar year, plus 200 basis points (i.e. 5.25% for 2008).
Of our named executive officers, only Mr. Gardner is eligible for interest based on the prime rate + 2% (“1998
Fund”). The balance included in the 1998 Fund will be accelerated upon change of control.
Payments are made under the 2007 Plan in cash at certain future dates as specified by the participants or
upon separation of service.
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