HMN » Topics » Pension Benefits

This excerpt taken from the HMN DEF 14A filed Apr 9, 2009.

Pension Benefits

The following table illustrates the total pension benefits available to the CEO as of December 31, 2008 under the nonqualified defined benefit pension plan as defined by his employment agreement. The CEO’s employment agreement provides an annual retirement defined benefit payment of $180,000 upon his completion of service through or after January 1, 2004. The defined benefit plans (qualified and nonqualified) sponsored by the Company were amended to freeze participation to those who were hired prior to January 1, 1999. As all other NEOs were hired subsequent to that date, they are not eligible to participate in the defined benefit plans.

 

Name & Principal Position   Plan Name  

Number of 
Years
Credited
Service

(#) (1)

 

Present Value of 
Accumulated
Benefit

($) (2)

  Payments
During Last
Fiscal Year
($)

Louis G. Lower II,

President & CEO

  ESERP Defined Benefit Plan   Not applicable   1,567,457   0

 

(1) Mr. Lower’s employment agreement provides fixed annual payments.

 

(2) The present value of Mr. Lower’s accumulated benefit is based on the 2008 discount rate of 6.35%, the Postretirement Mortality Table, and payment in the form of a lifetime annuity commencing on December 31, 2008.
This excerpt taken from the HMN DEF 14A filed Apr 9, 2008.

Pension Benefits

The following table illustrates the total pension benefits available to the CEO as of December 31, 2007 under the non-qualified defined benefit pension plan as defined by his employment agreement. It also illustrates Mr. Joyner’s total pension benefits available as of December 31, 2007 under the qualified and non-qualified defined benefit plans. The defined benefit plans (qualified and non-qualified) sponsored by the Company were amended to freeze participation to those who were hired prior to January 1, 1999. As all other Named Executive Officers were hired subsequent to that date, they are not eligible to participate in the defined benefit plans. The CEO’s employment agreement provides an annual retirement defined benefit payment of $180,000 upon his completion of service through or after January 1, 2004.

 

Name & Principal Position    Plan Name    Number
of Years
Credited
Service(#)
    Present
Value of
Accumulated
Benefit($)(2)
   Payments
During
Last
Fiscal
Year($)

Louis G. Lower II, President & CEO

   ESERP Defined Benefit Plan    n/a (1)   1,686,085    0

Robert B. Joyner, SVP Marketing

   ESERP Defined Benefit Plan    25.25     112,332    0
     HMPP Defined Benefit Plan    25.25     546,279    0

 

n/a - not applicable

(1) Mr. Lower’s employment agreement provides fixed annual payments.
(2) The present value of Mr. Lower’s and Mr. Joyner’s accumulated benefit is based on the 2007 discount rate of 5.65%, the 1994 Group Annuity Mortality Tables, and payment in the form of a lifetime annuity commencing on December 31, 2007.

The aggregate monthly annuity benefit under the qualified retirement plans are determined by multiplying the participant’s years of service under the plan, times the average of the highest 36 months of earnings while under the plan, times 2%, offset by 50% of the participant’s primary social security benefit at age 65. Eligible earnings under the qualified retirement plans are subject to IRS Section 415 limitation. The ESERP plan is a non-qualified excess plan which replaces only the benefits lost under the qualified plan on earnings in excess of the Section 415 limits. Mr. Joyner ceased accruing any additional benefits due under these plans effective March 31, 2002.

 

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This excerpt taken from the HMN DEF 14A filed Apr 11, 2007.

Pension Benefits

The following table illustrates the total pension benefits available to the CEO as of December 31, 2006 under the non-qualified defined benefit pension plan as defined by his employment agreement. All other defined benefit plans (qualified and non-qualified) sponsored by the Company were amended to freeze participation to those who were hired prior to January 1, 1999. As all Named Executive Officers were hired subsequent to that date, they are not eligible to participate in the defined benefit plans. The CEO’s employment agreement provides an annual retirement defined benefit payment of $180,000 upon his completion of service through or after January 1, 2004.

 

Name

   Plan Name    Number
of Years
Credited
Service(#)
    Present
Value of
Accumulated
Benefit($)(2)

Louis G. Lower II

   ESERP Defined Benefit Plan    n/a (1)   1,708,006

 

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Table of Contents

n/a - not applicable

(1) Mr. Lower’s employment agreement provides fixed annual payments.
(2) The present value of the CEO’s accumulated benefit is based on the 2006 discount rate of 5.50%, the 1994 Group Annuity Mortality Post Retirement Annuity Tables, and payment in the form of a lifetime annuity commencing on December 31, 2006.
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