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(Continued)
Pension Benefits
The Pension Benefits table and the Non-Qualified Deferred Compensation table below generally reflect amounts accumulated as a result of service over the named executive officers’ full careers with us. The increments related to 2007 are reflected in the Change in Pension Value column of the Summary Compensation Table above or, in the case of defined contribution plans, in the All Other Compensation footnote. 
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(1) |
At December 31, 2007, each named executive officer’s total years of service with us or our operating subsidiaries were as follows: Mr. Camilleri, 29.33 years; Mr. Calantzopoulos, 22.92 years; Mr. Devitre, 33.5 years; Mr. Parrish, 17.58 years; Mr. Szymanczyk, 19.0 years; and Mr. Wall, 17.58 years. Years shown in this column are only those taken into account for benefit accrual purposes under the named plan. Additional years may count for purposes of vesting or early retirement eligibility. Differences between each named executive’s total service and the credited service shown for each plan result from prior transfers between entities sponsoring the various plans or from individual agreements under the Supplemental Management Employees’ Retirement Plan, or SERP, described below, except in the case of Target Payments (defined below). Because the Target Payments were year-to-year payments in lieu of continued accrual of benefits under the Benefit Equalization Plan, or BEP, and Altria SERP for service after 2004, the relevant credited service equals one year. The SERP present value shown for Mr. Szymanczyk includes $2,356,120 attributable to years of service credited in excess of his actual years of service, with the remaining portion of that present value being attributable to the unreduced benefit described in the discussion of his SERP agreement below. In the case of Mr. Calantzopoulos, an additional difference of 3.08 years results from the executive’s exercise of a feature of the Pension Fund of Philip Morris in Switzerland that allows employees to purchase additional service credit with additional amounts contributed by the employee from his or her own funds. |
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(2) |
The amounts shown in this column for Mr. Camilleri, Mr. Devitre, Mr. Parrish, Mr. Szymanczyk and Mr. Wall are based on a single life annuity commencing at the earliest date on which, assuming continued employment, the individual would be eligible for benefits that are not reduced for early commencement and otherwise use the same assumptions applied for year-end 2007 financial disclosure under Statement of Financial Accounting Standards No. 87, “Employer’s Accounting for Pensions,” except that the amount shown for Target Payments is the amount actually paid in early 2008 in lieu of 2007 defined benefit accruals under the BEP and the SERP. See Note 16 to our Consolidated Financial Statements in our 2007 Annual Report for a description of this methodology. As a result of payments made to trusts established by certain employees, including our U.S.-based named executive officers, our liabilities or those of our operating subsidiaries under the BEP or the SERP will be less than shown in the table. For Mr. Devitre, the present value amounts shown for the BEP and the SERP include the present values of very small benefits to which he is entitled under local plans in India, which offset benefits under the BEP and SERP. The amounts shown in the column for Mr. Calantzopoulos are based on a joint and survivor 60% annuity commencing at age 62, the earliest date on which, assuming continued employment, the individual would be eligible for benefits that are not reduced for early commencement and are based on the following actuarial assumptions: discount rate 3.75%; mortality table LPP 2000 with load of 2.1% and interest rate on account balances of 4%. |
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(3) |
In addition to the benefits reflected in this column, we and our U.S.-based subsidiaries generally provide a survivor income benefit allowance (SIB allowance) to the surviving spouse and children of an employee who dies while covered by the Retirement Plan for Salaried Employees. In the case of the death of a married employee who has begun receiving benefits, SIB payments to the surviving spouse are only available with respect to those plans under which payments are being made in the form of a single life annuity. The surviving spouse becomes entitled, four years after the employee’s death, to a SIB allowance equal to the amount the spouse would have received had the employee begun receiving monthly payments under the Retirement Plan (and, to the extent applicable, under the BEP and SERP) in the form of a joint and 50% survivor annuity. The present values of such post-retirement SIB benefits for the named executive officers with spouses who would be eligible, assuming their spouses survived them, based on the same mortality and other assumptions used to derive the present values for pension plan benefits, are: Mr. Devitre, $310,655; Mr. Parrish, $206,366; and Mr. Szymanczyk, $260,462. In the case of the pre-retirement death of a married employee prior to age 61, a pre-retirement death benefit in the form of an SIB allowance of 25% of the deceased employee’s base compensation may commence beginning four years after the employee’s death, if the surviving spouse has not remarried. This benefit is reduced by the amount of any pre-retirement survivor allowance payable to the surviving spouse under the Retirement Plan, BEP and SERP and is generally payable in the form of a monthly annuity until the earlier of remarriage or the first day of the month in which the employee would have attained age 65. If the spouse has not remarried and the deceased employee had completed at least five years of service, the SIB allowance beginning after age 65 and payable for the life of the surviving spouse, when combined with the pre-retirement survivor allowance, is equal to the amount the surviving spouse would have received if the employee had continued to work to age 65 at the same base compensation in effect on the date of death, retired and begun receiving payments under the Retirement Plan (and the BEP and the SERP, if applicable) in the form of a joint and 50% survivor annuity. |
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(4) |
The amounts shown in this column represent Target Payments made in early 2007 in lieu of 2006 defined benefit accruals under the BEP and the SERP. Target Payments will not be paid for the plan years after 2007, as discussed under “Target Payments” below. |
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