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Pfizer Proxy

This section summarizes Pfizer's post-employment compensation programs and benefits for eligible U.S. and Puerto Rico employees, including newly hired employees. It describes the company's pension and savings plans, which will transition in 2018 to a defined contribution retirement savings contribution. It also outlines insurance plans that provide health and other benefits, as well as individual supplemental disability coverage. The section concludes by detailing deferred compensation options, retiree health care benefits, and the executive severance plan.

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Chinnu Salimath
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97 views

Pfizer Proxy

This section summarizes Pfizer's post-employment compensation programs and benefits for eligible U.S. and Puerto Rico employees, including newly hired employees. It describes the company's pension and savings plans, which will transition in 2018 to a defined contribution retirement savings contribution. It also outlines insurance plans that provide health and other benefits, as well as individual supplemental disability coverage. The section concludes by detailing deferred compensation options, retiree health care benefits, and the executive severance plan.

Uploaded by

Chinnu Salimath
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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executive compensation SECTION 6 – POST-EMPLOYMENT COMPENSATION AND BENEFITS

SECTION 6 – Post-Employment Compensation and Benefits


The following table provides information on Pfizer’s post-employment compensation programs and benefits.

Plan/Eligibility Description of Benefit


Pension and Savings Plans since 2011, newly hired colleagues, rehired colleagues and colleagues who transfer to the u.s.
available to eligible u.s.- and puerto Rico-based and puerto Rico, earn retirement benefits through an age- and service-weighted annual company
employees, including eligible neos retirement savings contribution (Rsc) to the defined contribution savings plans, which is in
plans include: addition to the company matching contributions. effective January 1, 2018, all eligible u.s.- and
puerto Rico-based colleagues will earn retirement benefits through the Rsc in addition to the
- defined benefit pension plans
company matching contributions.
- non-qualified supplemental pension plans
- defined contribution savings plans the pfizer defined contribution savings plans permit all eligible u.s.- and puerto Rico-based
- non-qualified supplemental savings plans employees, including the neos, to make pre-tax, after-tax and/or Roth contributions, from their
eligible pay, up to certain limits and to receive company matching contributions. pfizer also
Benefits under the defined benefit pension plans
maintains a non-qualified supplemental savings plan that permits eligible participants to make
will be frozen as of December 31, 2017 for all
pre-tax contributions in excess of tax law limitations on qualified plans and to receive matching
participants, although participants may continue
contributions and Rsc, if applicable.
to grow into retirement plan milestones.
pfizer maintains related non-qualified supplemental benefit plans for u.s. employees (including
effective January 1, 2018, all eligible u.s.- and
neos) participating in the pension plan and earning in excess of the iRc limit ($265,000 for 2016).
puerto Rico-based colleagues will earn retirement
benefits through the Rsc in the savings plans the provisions and features of the qualified defined benefit pension plans and the related
coincident with the freezing of the defined benefit supplemental pension plans are described in the narrative accompanying the “2016 pension Benefits
pension plans. table” and the “2016 non-Qualified Deferred compensation table”.

Insurance Plans programs are designed to provide certain basic quality of life benefits and protections to pfizer
provide health and family security benefits, such employees, including the neos, and at the same time enhance pfizer’s attractiveness as an
as medical insurance, dental insurance, life employer of choice.
insurance and long-term disability insurance. the cost of these plans is shared between the employee and the company. the company’s annual
available to all eligible u.s.- and puerto Rico- cost of the benefit coverage for each neo ranges from approximately $17,800 to $27,000.
based employees, including the neos.

Individual Supplemental Disability pfizer makes available additional supplemental individual disability insurance coverage, in excess
Insurance of the limits available under the company’s group long-term disability plan and participants pay
the full cost of this coverage.

Deferred Compensation annual incentive awards may be deferred under one or more of the following: pfizer savings
executives are permitted to elect to defer receipt plan (psp), the pfizer inc. supplemental savings plan (pfizer supplemental savings plan or pssp)
of their annual incentive awards and any shares and/or pfizer Deferred compensation plan. Deferrals may be notionally invested in a selection of
earned under the performance share awards mutual funds, pfizer stock and/or a cash fund earning interest at 120% of the applicable federal
(psas) into the pfizer inc. Deferred long-term rate (the return ranged between 2.26% and 3.14% in 2016).
compensation plan. the pfizer stock unit funds are credited with dividends, which are reinvested into dividend
certain of our neos are required to defer the equivalent units. Deferred Rsus required to be deferred in 2016 and later may only be deferred
receipt of Restricted stock units (Rsus). see into the pfizer stock fund.
“other compensation programs and policies–
tax policies.”

Retiree Health Care Benefits active employees who are at least age 55 and have at least 15 years of service after age 40 are
pfizer maintains post-retirement medical coverage eligible for post-retirement medical coverage. For u.s. employees, including the neos, the value
for the benefit of its eligible u.s.- and puerto of the post-retirement medical coverage currently ranges from $123,000 to $275,000 (based on
Rico-based employees, including the neos. service and coverage) over the course of retirement.

Executive Severance Plan Benefits consist of cash severance equal to the greater of:
provides severance benefits to neos (including (a) one times pay (defined as base salary plus target annual incentive), or
the eLt members) in the event of involuntary (b) 13 weeks’ pay plus three weeks’ pay per year of service, subject to a maximum of 104 weeks’ pay.
termination of employment without cause.
eligible participants in the Gpp also receive a pro-rata annual incentive for the year of
severance payments and benefits under the termination, provided certain performance targets are achieved, as well as certain health and
executive severance plan are described in insurance benefits.
“estimated Benefits upon termination table.”

Pfizer 2017 Proxy Statement 77

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