diff -r 6ef801fa38b7 -r 70ebdef189c9 src/share/classes/com/sun/tools/javac/comp/Lower.java
--- a/src/share/classes/com/sun/tools/javac/comp/Lower.java	Wed Aug 25 11:24:30 2010 -0700
+++ b/src/share/classes/com/sun/tools/javac/comp/Lower.java	Wed Aug 25 11:40:25 2010 -0700
@@ -29,6 +29,7 @@
 
 import com.sun.tools.javac.code.*;
 import com.sun.tools.javac.jvm.*;
+import com.sun.tools.javac.main.RecognizedOptions.PkgInfo;
 import com.sun.tools.javac.tree.*;
 import com.sun.tools.javac.util.*;
 import com.sun.tools.javac.util.JCDiagnostic.DiagnosticPosition;
@@ -82,6 +83,7 @@
     private final Name classDollar;
     private Types types;
     private boolean debugLower;
+    private PkgInfo pkginfoOpt;
 
     protected Lower(Context context) {
         context.put(lowerKey, this);
@@ -106,6 +108,7 @@
         types = Types.instance(context);
         Options options = Options.instance(context);
         debugLower = options.get("debuglower") != null;
+        pkginfoOpt = PkgInfo.get(options);
     }
 
     /** The currently enclosing class.
@@ -2161,7 +2164,7 @@
     }
 
     public void visitTopLevel(JCCompilationUnit tree) {
-        if (tree.packageAnnotations.nonEmpty()) {
+        if (needPackageInfoClass(tree)) {
             Name name = names.package_info;
             long flags = Flags.ABSTRACT | Flags.INTERFACE;
             if (target.isPackageInfoSynthetic())
@@ -2183,6 +2186,23 @@
             translated.append(packageAnnotationsClass);
         }
     }
+    // where
+    private boolean needPackageInfoClass(JCCompilationUnit tree) {
+        switch (pkginfoOpt) {
+            case ALWAYS:
+                return true;
+            case LEGACY:
+                return tree.packageAnnotations.nonEmpty();
+            case NONEMPTY:
+                for (Attribute.Compound a: tree.packge.attributes_field) {
+                    Attribute.RetentionPolicy p = types.getRetention(a);
+                    if (p != Attribute.RetentionPolicy.SOURCE)
+                        return true;
+                }
+                return false;
+        }
+        throw new AssertionError();
+    }
 
     public void visitClassDef(JCClassDecl tree) {
         ClassSymbol currentClassPrev = currentClass;