BROOKFIELD, Wis. -- Shell Oil Co., Houston, won the International Foundation of Employee Benefit Plans' Creative Excellence in Benefits Award for its defined benefit pension plan, which offers employees a choice in pension formula.
Under Shell's plan, participants can select either a traditional final-average-pay retirement formula or a new pension equity-type formula. The traditional formula is backloaded, while the new equity formula provides employees with a smaller ultimate pension benefit in exchange for accruing more value earlier in their careers. Employees may change the formula annually.
