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This excerpt taken from the HBI DEF 14A filed Mar 12, 2009. Pension
Benefits
Certain of our executive officers, including certain of our
named executive officers, participate in the Pension Plan and
the SERP. The Pension Plan is a frozen defined benefit pension
plan, intended to be qualified under Section 401(a) of the
Internal Revenue Code, that provides the benefits that had
accrued for our employees, including certain of our named
executive officers, under the Sara Lee Corporation Consolidated
Pension and Retirement Plan as of December 31, 2005. The
Defined Benefit Component of the 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 certain of our named executive
officers, under the Sara Lee Corporation Supplemental Executive
Retirement Plan with respect to benefits accrued through
December 31, 2005 that could not be provided under the Sara
Lee Corporation Consolidated Pension and Retirement Plan because
of various Internal Revenue Code limitations.
Normal retirement age is age 65 for purposes of both the
Pension Plan and the SERP. The normal form of benefits under the
Pension Plan is a life annuity for single participants and a
qualified joint and survivor annuity for married participants.
The normal form of benefits under the SERP is a lump sum. None
of our named executive officers is eligible for early retirement
under the Pension Plan or the SERP, each of which provides that
participants who have attained at least age 55 and
completed at least ten years of service are eligible for
unreduced benefits at age 62, or benefits reduced by
5/12
of one percent thereof for each month by which the date of
commencement of such benefit precedes the first day of the month
coincident with or next following the month in which the
participant attains age 62.
At the end of 2008, we provided all active participants in the
SERP with an election to receive the accrued Defined Benefit
Component of their SERP benefit in the form of a lump sum
payment in 2009 or 2010. We offered this election as part of the
required changes mandated by Section 409A, and eligible
participants could make this election in addition to or instead
of any election with respect to the Defined Contribution
Component of the SERP. The value of the lump sum payment with
respect to the Defined Benefit Component of the SERP was
calculated based on the participant’s age 65 SERP
Defined Benefit Component benefit and an interest rate of 5.25%.
The lump sum amounts do not include the value of any early
retirement subsidies and accordingly may be significantly less
valuable than the amount the participant could have received if
the participant had been eligible for early retirement (at least
age 55 with 10 years of service) when the
participant’s employment with us terminates. Any SERP
participant who elected to receive this lump sum payment will
not be entitled to any additional payments with respect to the
Defined Benefit Component of the SERP. Payments to
Mr. Noll, who elected to receive a lump sum payment in
2009, will be shown in the Pension Benefits table for 2009; none
of the named executive officers elected to receive a lump sum
payment in 2010.
The following table sets forth certain information with respect
to the value of pension benefits accumulated by our named
executive officers during the fiscal year ended January 3,
2009.
This excerpt taken from the HBI DEF 14A filed Mar 10, 2008. Pension
Benefits
Certain of our executive officers, including certain of our
named executive officers, participate in the Pension Plan and
the SERP. The Pension Plan is a frozen defined benefit pension
plan, intended to be qualified under Section 401(a) of the
Internal Revenue Code, that provides the benefits that had
accrued for our employees, including certain of our named
executive officers, under the Sara Lee Corporation Consolidated
Pension and Retirement Plan as of December 31, 2005. The
pension component of the 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 certain of our named executive
officers, under the Sara Lee Corporation Supplemental Executive
Retirement Plan with respect to benefits accrued through
December 31, 2005 that could not be provided under the Sara
Lee Corporation Consolidated Pension and Retirement Plan because
of various Internal Revenue Code limitations.
Normal retirement age is age 65 for purposes of both the
Pension Plan and the SERP. The normal form of benefits under the
Pension Plan is a life annuity for single participants and a
qualified joint and survivor annuity for married participants.
The normal form of benefits under the SERP is a lump sum. Of our
named executive officers, only Mr. Chaden is eligible for
early retirement under the Pension Plan and the SERP, each of
which provides that participants who have attained at least
age 55 and completed at least ten years of service are
eligible for unreduced benefits at age 62, or benefits
reduced by
5/12
of one percent thereof for each month by which the date of
commencement of such benefit precedes the first day of the month
coincident with or next following the month in which the
participant attains age 62.
The following table sets forth certain information with respect
to the value of pension benefits accumulated by our named
executive officers during the fiscal year ended
December 29, 2007.
This excerpt taken from the HBI 8-K filed Sep 5, 2006. Pension Benefits As a result of the spin off, we will assume certain pension obligations relating to our employees that previously were obligations of Sara Lee. One such obligation relates to qualified and nonqualified pension benefits owed to our executive officers under 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 retirement 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 the pension program 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.
On December 31, 2005, Messrs. Chaden, Noll, Evans, Flatow and Oliver had 14, 14, 14, 19 and 3 years of credited service, respectively, under the Sara Lee Corporation Consolidated Pension and Retirement Plan and the Sara Lee Corporation Supplemental Executive Retirement Plan. In addition to the benefits described in the table above, Mr. Evans will receive an Estimated Annual Normal Retirement Pension of $4,402 for 8.167 years of service earned under an alternate formula and Mr. Flatow will receive an Estimated Annual Normal Retirement Pension of $1,515 for 0.667 years of service earned under an alternate formula. In addition, Mr. Flatow is covered under the minimum benefit formula applicable to certain participants which produces an annual pension $18,531 in excess of that shown in the table as of December 31, 2005. Mr. Oliver will receive an Estimated Lump Sum Pension at Normal Retirement of $41,337 for 1.25 years of service earned under an alternate formula. The nonqualified benefits accrued by Mr. Chaden have historically been funded with periodic payments made by Sara Lee to trusts established by him. This program had been available to officers of Sara Lee if the present value of an officer’s accrued benefit exceeded either $100,000 and such officer was age 55 or older, or if the present value of an officer’s accrued benefit exceeded $300,000 if such officer had not yet attained age 55. Sara Lee discontinued this program beginning in 2004 and allowed those already participating in the program to continue their participation under its original terms and conditions. A final payment to Mr. Chaden’s trust in the amount of $1.85 million will be made in connection with the spin off. All nonqualified benefits other than those payable to Mr. Chaden will be paid out of our general assets. 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.
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