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Main Section Title [H1]
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Subsection Title [H2]
AFLAC INCORPORATED
2017 PROXY STATEMENT
53
2016 Summary Compe sation Tables
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P nsio Benefits
.5% of average
final monthly
compensation
years of credited
service up to
25 years
1% of average
final monthly
compensation
years of credited
service in excess
of 25 years
Qualified Defined Benefit Pension Plan
The Aflac Incorporated Defined Benefit Pension Plan (“Plan”) is a funded tax-qualified retirement program
that covers all eligible U.S.-based employees. Benefits under the Plan are calculated in accordance with the
following formula:
For purposes of the Plan, final average monthly compensation is the participant’s highest average compensation
(salary and non-equity incentive plan compensation) during any five consecutive years of service within the
ten consecutive plan years of service immediately preceding retirement. Participants are eligible to receive full
retirement benefits upon attaining a retirement age of 65. Participants also become eligible for full retirement
benefits when their years of credited service plus age equals or exceeds 80. Participants with at least fifteen years
of credited service are eligible to receive reduced retirement benefits upon reaching an early retirement age of 55.
The Plan was frozen to new employees hired, or former employees rehired, on or after October 1, 2013. During
the fourth quarter of 2013, active participants in the Plan were given the option to exit the Plan and receive a non-
elective 401(k) matching contribution.
Benefits payable under the Plan are not subject to adjustment for Social Security benefits or other offsets. The
benefits are paid monthly over the life of the participant, with joint and survivor options available at actuarially
reduced rates. The maximum annual retirement benefit was limited, in accordance with Section 415 of the Internal
Revenue Code, to $210,000 for 2016. The maximum annual compensation that may be taken into account when
calculating retirement benefits was limited, in accordance with Section 401(a)(17) of the Internal Revenue Code, to
$265,000 for 2016. The limitation amounts for future years will be indexed for cost-of-living adjustments.
Supplemental Executive Retirement Plan
The Company’s Supplemental Executive Retirement Plan (“SERP”) is an unfunded and unsecured obligation of the
Company and is not a tax-qualified plan. The SERP provides retirement benefits to certain officers of the Company
in addition to those provided by the qualified Plan. Participation in the SERP is limited to certain key employees
as periodically designated by the Compensation Committee. Currently, Messrs. Cloninger and Paul S. Amos II
participate in the SERP. To be eligible for benefits under the SERP, participants generally must be employed with
the Company or a subsidiary at age 55. The SERP was frozen to new participants effective January 1, 2015.
The SERP includes a four-tiered benefit formula that provides for a benefit based on final three-year average
compensation (base salary and non-equity incentive plan compensation) earned for a calendar year as described
below. The annual benefit varies based on the participant’s age at retirement: 40% is paid to someone who retires
between the ages of 55 and 59, 50% is paid to someone who retires between the ages of 60 and 64, and 60% is
paid to someone who retires at or after the age of 65. A reduced 30% benefit is available to participants with at
least fifteen years of service who terminate employment prior to age 55.
Benefits generally are payable in the form of an annuity for the life of the participant. The participant may elect to
receive reduced lifetime benefits, in which case any surviving spouse will receive a benefit equal to 50% of the
amount paid to the participant. Benefits are calculated based upon the average annual compensation for the three
consecutive calendar years out of the final ten consecutive calendar years of employment that yield the highest
average. Benefits under the SERP are subject to offset for amounts paid under the qualified Plan.
Retirement Plan for Senior Officers
The CEO is the only active employee who participates in the Retirement Plan for Senior Officers (“RPSO”).
Participants in the RPSO receive full compensation for the first twelve months after retirement. Thereafter, a
participant may elect to receive annual lifetime retirement benefits equal to 60% of final compensation (base salary
plus non-equity incentive), or 54% of final compensation with 50% of final compensation to be paid to a surviving
spouse for a specified period after death of the participant. Final compensation is deemed to be the higher of
either the compensation paid during the last twelve months of active employment with the Company or the highest
compensation received in any calendar year of the last ten years preceding the date of retirement.