What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to inform investors about significant amendments made to Automatic Data Processing, Inc.'s (ADP) Supplemental Officers Retirement Plan (SORP). These changes are scheduled to take effect on January 1, 2010.

Who will be most impacted by these changes to the SORP?

The most significant impacts will be on 'grandfathered' participants. These are defined as active participants who were 50 years or older as of January 1, 2009, and were already accruing benefits under the SORP on January 1, 2008. This group includes several named executive officers.

Are the retirement benefits of all employees being changed?

No, the amendments specifically focus on the Supplemental Officers Retirement Plan (SORP) and primarily affect 'grandfathered' participants within that plan. Changes applicable to all participants relate to how service credit is calculated for benefit accrual and vesting.

What specific changes are being made to the calculation of benefits for grandfathered participants?

For grandfathered participants, the 'final average annual pay' used for benefit calculations will no longer include performance-based restricted stock awards. New, specific formulas are being implemented for named executive officers, which include limits on the annual benefit as a percentage of final average annual pay. Crucially, their accrued benefits as of December 31, 2009, are protected and will not be reduced.

ADP 8-K: Leadership Changes

Summary

Automatic Data Processing, Inc. (ADP) filed an 8-K report on November 11, 2009, to disclose amendments to its Supplemental Officers Retirement Plan (SORP), effective January 1, 2010. These changes primarily affect 'grandfathered' participants, who are defined as active participants aged 50 or older on January 1, 2009, and already earning benefits on January 1, 2008. For these key executives, the definition of 'final average annual pay' used for benefit calculations will now exclude performance-based restricted stock awards. Additionally, the benefit calculation formulas have been revised, with specific new formulas detailed for named executive officers Gary C. Butler, Christopher R. Reidy, Regina R. Lee, and Benito Cachinero. The amendments also introduce a cap on annual plan benefits for these individuals, limiting them to 39% of final average annual pay for Mr. Butler and 45% for Messrs. Reidy, Cachinero, and Ms. Lee. Importantly, the amendments guarantee that a grandfathered participant's benefit will not fall below the amount accrued as of December 31, 2009. Early retirement benefits for grandfathered participants will now align with calculations for non-grandfathered participants, except for protected benefits accrued before January 1, 2010. The report also notes that discretionary service credit grants by the CEO for involuntarily terminated or severed employees will cease after December 31, 2009.

Key Highlights

1ADP amended its Supplemental Officers Retirement Plan (SORP) effective January 1, 2010.
2Amendments target 'grandfathered' participants (age 50+ on Jan 1, 2009, earning benefits on Jan 1, 2008).
3Exclusion of performance-based restricted stock awards from 'final average annual pay' for grandfathered participants.
4Revised benefit calculation formulas for named executive officers Gary C. Butler, Christopher R. Reidy, Regina R. Lee, and Benito Cachinero.
5Introduction of benefit caps: 39% for Mr. Butler and 45% for Messrs. Reidy, Cachinero, and Ms. Lee of final average annual pay.
6Guaranteed minimum benefit for grandfathered participants based on December 31, 2009, accrued benefits.
7Cessation of CEO's discretionary service credit for involuntarily terminated/severed employees after December 31, 2009.

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Nov 12, 2009)

Summary

Key Highlights

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