exv10w18






Exhibit 10.18




FANNIE MAE

SUPPLEMENTAL PENSION PLAN




Amendment




     Pursuant to Section 5.5 of the Fannie Mae Supplemental Pension Plan (the “Plan”), and in
accordance with the authority delegated to the Vice President & Deputy General Counsel for Tax &
Benefits to approve amendments to benefit plans to the extent necessary to comply with Internal
Revenue Code Section 409A, the Plan is hereby amended as follows, effective as of January 1, 2009
or, as to any provision hereof required under Section 409A to be effective January 1, 2008, as of
January 1, 2008:



     1. Section 2.1A is hereby amended in its entirety to read as follows:



     “2.1A. “Actuarial Equivalent” means, as of any determination date, a benefit which is of equal
value to a benefit otherwise payable in a different form or commencing at a different time under
the Plan, based on the applicable mortality tables and interest factors (or other reduction
factors) set forth in the Retirement Plan and in effect on such determination date.”



     2. Section 3.2 is hereby amended by adding at the end the following sentence:



     “Notwithstanding the foregoing, if a Participant’s accrued benefit under the Retirement Plan,
as of the date on which payment of his or her benefit under this Plan is scheduled to commence,
reflects accruals with respect to a period following the Participant’s Separation from Service in
which the Participant was receiving benefits under a long-term disability plan maintained by the
Corporation, the Participant’s benefit under this Plan shall be calculated not as of the date of
the Participant’s Separation from Service but as of such benefit commencement date, taking into
account any such period or portion thereof that follows the date of the Participant’s Separation
from Service and is completed as of such benefit commencement date.”



     3. Section 3.4 is hereby amended by inserting, in the first sentence, the words “or 2008”
after the words “commence at an alternative time under the 2007,” and after the words “consistent
with all the terms and conditions of the 2007”.



 









 





     4. Section 3.5(b)(ii) is hereby amended to read in its entirety as follows:



     “(ii) A Participant may, to the extent consistent with Section 409A, elect in writing, in a
form and manner acceptable to Company, to have his or her benefit hereunder payable in another such
annuity form that is available under Section 3.5(a), provided that no such change of election shall
be effective if made on or after the date on which the first annuity payment is made and further
provided that no such change of election shall be effective if such change would result in a form
of benefit payment under the Plan that when considered together with payments under other
“nonaccount balance plans” (as defined in Section 1.409A-1(c)(2)(i)(C) of the Treasury Regulations)
with which the Plan is required to be aggregated under Section 1.409A-1(c)(2) of the Treasury
Regulations would be inconsistent with the applicable payment rules (including without limitation
the “life annuity” rules at Section 1.409A-2(b)(2)(ii)) under Section 409A).”



     5. Section 3.7 is hereby amended in its entirety to read as follows:



     “3.7. Cashout of Small Amounts. Notwithstanding any other provision of the Plan to
the contrary and at the sole discretion of the Company, if at the time a Participant’s benefits are
scheduled to commence under Section 3.4 or a spouse’s or domestic partner’s benefits are scheduled
to commence under Section 3.6 (the “determination date”), the present value of the benefit payable
hereunder (including any amounts payable to a Participant pursuant to another “nonaccount balance
plan” (as defined in Section 1.409A-1(c)(2)(i)(C) of the Treasury Regulations) with which the Plan
is required to be aggregated under Section 1.409A-1(c)(2) of the Treasury Regulations) is less than
the applicable dollar amount under Section 402(g)(1)(B) of the Code, the benefit may be distributed
(consistent with the cashout rules under Section 409A) in the form of a single lump sum equal to
such present value as soon as administratively practicable, but in no event later than ninety (90)
days after the determination date.”



     6. Section 5.5 is hereby amended in its entirety to read as follows:



     “5.5. Amendment or Termination. The Board may, with prospective or retroactive
effect, amend, suspend, or terminate the Plan or any portion thereof at any time, and delegates to
the Committee the authority to adopt amendments which may be necessary or appropriate to facilitate
the administration, management and interpretation of the Plan or to conform the Plan thereto,
provided any such amendment does not significantly affect the cost to the Corporation of
maintaining the Plan. However, no amendment, suspension or termination of the Plan shall without
the consent of a Participant impair or adversely affect any benefits accrued under the Plan as of
the date of such action (determined as if the Participant then employed had Separated from Service
as of the date of such amendment, suspension or termination).”