This excerpt taken from the DRC DEF 14A filed Mar 30, 2009.
Pension Benefits for 2008
The following table sets forth the present value of accrued pension plan benefits for each of our eligible named executive officers as of the end of 2008.
Other than Mr. Volpe, none of the other named executive officers are eligible to participate in any defined benefit pension plans sponsored by the Company. As of December 31, 2008, Dresser Rand Company sponsored the Pension Plan for Employees of Dresser-Rand Company (Dresser-Rand Pension Plan) and the Supplemental Executive Retirement Plan of Dresser-Rand Company (SERP) for salaried employees. The benefits under these plans were based on final average pay and service at retirement, subject to applicable offsets. Effective March 31, 1998, Dresser-Rand Company amended both plans to cease benefit accruals for non-bargaining unit employees as
of that date. That is, for non-bargaining unit employees hired prior to March 31, 1998, their accrued benefits under the Dresser-Rand Pension Plan were frozen and no additional accruals due to service and or pay were granted.
Mr. Volpe has accrued benefits under both of these plans. As of December 31, 2008, Mr. Volpe has an estimated monthly accrued pension benefits of $1,638. The benefit amounts are payable at age 65 as a single life annuity and represent the benefit payable from both the Dresser-Rand Pension Plan and the SERP Plan. These benefit amounts are fixed obligations and will not increase with future pay and/or service levels. Other actuarial equivalent distribution options are available to them under the qualified pension plan, such as a 100% Joint & Survivor option, 50% Joint & Survivor option and 10 Year Period Certain. Only the 50% Joint & Survivor option is available under the SERP Plan.
The normal retirement age is 65 for both the Dresser-Rand Pension Plan and the SERP Plan. The Dresser-Rand Pension Plan permits participants who possess at least 9 years of benefit credit service upon termination of employment to begin receiving pension benefits anytime on or after their 55th birthday. Mr. Volpe is not yet eligible for payment under the terms of either of these plans.
Balances and earnings attributable to these plans are disclosed as applicable in the Summary Compensation Table and the Non-Qualified Deferred Compensation Table.
The retirement reduction factors for both the Dresser-Rand Pension Plan and the SERP Plan are as follows: