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HBI » Topics » Hanesbrands Inc. Pension and Retirement Plan and Hanesbrands Inc. Supplemental Employee Retirement PlanThis excerpt taken from the HBI 10-K filed Sep 28, 2006. Hanesbrands
Inc. Pension and Retirement Plan and Hanesbrands Inc.
Supplemental Employee Retirement Plan
Our executive officers participate in the Hanesbrands Inc.
Pension and Retirement Plan and the Hanesbrands Inc.
Supplemental Employee Retirement Plan, or the “Hanesbrands
SERP.” The Hanesbrands Inc. Pension and Retirement Plan is
a frozen defined benefit pension plan, intended to be qualified
under Section 401(a) of the Code, that provides the
benefits that had accrued for our employees, including our
executive officers, under the Sara Lee Corporation Consolidated
Pension and Retirement Plan as of December 31, 2005. The
Hanesbrands SERP is an unfunded deferred compensation plan that,
in part, will provide the nonqualified supplemental pension
benefits that had accrued for certain of our employees,
including our executive officers, under the Sara Lee Corporation
Supplemental Executive Retirement Plan.
The following table shows the approximate annual pension
benefits payable under the Hanesbrands Inc. Pension and
Retirement Plan and the Hanesbrands SERP for our executive
officers. The compensation covered by these plans is based on an
employee’s average annual salary and cash bonus for the
highest five consecutive years in the ten years ending
December 31, 2005. The amounts payable under the pension
program are computed on the basis of a straight-life annuity and
are not subject to deduction for Social Security benefits or
other amounts.
Benefits under the pension program were frozen as of
December 31, 2005. As a frozen program, no additional
employees will become eligible to participate in the program,
and participants in the plan will not accrue any additional
benefits after December 31, 2005. Messrs. Chaden,
Noll, Evans and Flatow have 14, 14, 14 and 19 years of
credited service, respectively, with respect to the pension
benefits described above.
Table of Contents
In addition to the benefits described in the table above,
Mr. Evans will receive an estimated annual pension of
$4,402 for approximately 8 years of credited service earned
under an alternate formula and Mr. Flatow will receive an
estimated annual pension of $1,515 for approximately one year of
credited service earned under an alternate formula. Further, as
a result of a minimum benefit formula, Mr. Flatow will
receive an estimated annual pension $18,531 in excess of that
shown in the table as of December 31, 2005.
The nonqualified benefits accrued by Mr. Chaden
historically have been funded with periodic payments made by
Sara Lee to trusts established by him. Sara Lee will make final
payment to Mr. Chaden’s trust in the amount of
$1.85 million approximately six months after the spin off.
All nonqualified benefits other than those payable to
Mr. Chaden will be paid out of our general assets.
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