Summary
Equifax Inc. filed a Form 8-K on November 15, 2004, reporting the execution of a definitive Supplemental Retirement Plan for Executives (SRP). This plan, approved in December 2003 and effective January 1, 2004, provides enhanced retirement benefits for designated executives, supplementing the existing Retirement Income Plan (RIP). The SRP is designed to offer a benefit based on a percentage of average total earnings multiplied by years of service as a senior executive officer, with a "restoration benefit" for service exceeding 20 years or in non-senior executive roles. These benefits are calculated without regard to IRS limits on compensation and are reduced by the RIP benefit, with a combined maximum benefit capped at 50% of average total earnings. Importantly, the benefits are paid as a life annuity and are not reduced by Social Security benefits. While the CEO is not eligible, several key executives, including the Chief Administrative Officer, Chief Financial Officer, and General Counsel, participate.
Key Highlights
- 1Equifax Inc. has finalized a Supplemental Retirement Plan for Executives (SRP).
- 2The SRP provides enhanced retirement benefits for specific company executives.
- 3The plan is designed to offer benefits above IRS-imposed limitations on compensation for traditional retirement plans.
- 4Benefits are calculated based on a percentage of average total earnings and years of service, with a restoration component for extended service.
- 5The total combined benefit from the SRP and the existing Retirement Income Plan (RIP) is capped at 50% of the executive's average total earnings.
- 6Benefits are paid as a life annuity and are not subject to reduction by Social Security payments.
- 7The CEO is explicitly excluded from participating in the SRP, while other senior officers are eligible.