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SWY » Topics » PENSION BENEFITS

This excerpt taken from the SWY DEF 14A filed Mar 27, 2009.

PENSION BENEFITS

 

The following table quantifies the benefits expected to be paid to the named executive officers under our Employee Retirement Plan (the “ERP”), a qualified defined benefit pension plan, our Retirement Restoration Plan and our Retirement Restoration Plan II (collectively, the “RRP”), non-qualified and unfunded defined benefit pension plans, and an agreement for a supplemental retirement benefit for Mr. Burd (the “SERP”), a non-qualified and unfunded defined benefit pension plan. The Retirement Restoration Plan II became effective on January 1, 2005 in connection with the passage of Code Section 409A. The terms of the plans are described below the table.

 

The following actuarial assumptions were employed to derive the calculations shown on the table below: (1) pension economic assumptions utilized for our SFAS 132 (as amended by SFAS 158) financial reporting for the 2008 fiscal year were used for calculations at the end of 2008; (2) demographic assumptions are also consistent with pension financial reporting, with the exception of modified retirement and pre-retirement decrements as required by SEC guidance; (3) a discount rate of 6.25%; (4) a cash balance interest crediting and annuity conversion interest rate of 4.00%; and (5) an account balance interest crediting rate of 2.70%.

 

Additional actuarial assumptions used include the following: (1) account balance annuity conversion rate – product of account balance and a factor of 1.00% at ages over 55; (2) mortality table for lump sum conversion – 2008 IRS Applicable Mortality Table; (3) retirement table for post-retirement mortality – RP2000 projected to 2015; (4) no pre-retirement mortality, turnover or disability; (5) retirement age of 65 for cash balance only participants (Mr. Edwards and Mr. Gordon), age 62 for participants in the ERP grandfather (Mr. Burd, Mr. Everette and Ms. Renda) and immediate retirement for Mr. Burd’s SERP agreement.

 

Columns specified in the SEC rules are omitted where there is no amount to report.

 

Name

    Plan Name(1)     Number of
Years Credited
Service
(2)		    Present Value
of Accumulated
Benefit
(3)

Steven A. Burd

    ERP     15.2    $ 702,797
   RRP     15.2    $ 3,966,040
   SERP (4)   N/A    $ 13,102,203

Robert L. Edwards

    ERP     3.8    $ 41,692
   RRP (5)   3.8    $ 148,998

Larree M. Renda

    ERP     25.4    $ 601,871
   RRP (5)   25.4    $ 1,432,259

Bruce L. Everette

    ERP     32.1    $ 914,934
   RRP     32.1    $ 2,425,454

Robert A. Gordon

    ERP     8.6    $ 122,093
   RRP     8.6    $ 186,343

 

(1)

We provide our eligible executives with retirement benefits that are in addition to those provided to our employees generally. These retirement benefits are provided using a combination of a qualified defined benefit pension plan and non-qualified defined benefit pension plans. Mr. Burd is also covered by the SERP, an agreement for a supplemental retirement benefit. No other executive officer has a supplemental retirement benefit other than the RRP. Under the ERP, upon termination of employment for any reason (including in connection with a change in control), a participant may elect to receive his or her vested benefit via a lump sum payment or an annuity paid monthly. Under the RRP, upon termination of employment for any reason (including in connection with a change in control), a participant will receive his or her vested benefit via an annuity paid monthly. Under the ERP, in the event of termination of employment for any reason, a participant

 

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must have at least three years of service with us or must have reached age 55 to receive his or her accumulated benefits, and under the RRP, a participant must have reached age 55 to receive his or her accumulated benefits.

(2) The number of years of credited service and the present value of accumulated benefits are calculated as of January 3, 2009, which is the measurement date used for reporting purposes in the 2008 10-K.
(3) Account-based cash benefits were projected to the assumed retirement age using the appropriate interest rate. No future contributions were assumed. These projected accounts were converted to annuities at the assumed retirement age using the annuity conversion mortality and interest assumptions used in our financial disclosures (e.g., cash balance accounts are converted using the 2008 IRS Applicable Mortality Table and 4.00% interest). Employee contribution account balances were converted to annuities at current assumptions. Benefits payable at the assumed retirement age were converted to a present value at that date using the mortality and interest assumptions for annuity present values that were used in our financial disclosures (e.g., end of fiscal 2008 annuity was valued at assumed retirement age using RP2000 projected to 2015 mortality and 6.25% interest). The present value determined at the assumed retirement age was discounted back to the end of the 2008 fiscal year using the pension financial reporting discount rate.
(4) Since benefits under this plan are not tenure-based, there are no creditable years of service related to this plan. Mr. Burd’s SERP benefit was valued by calculating the gross benefit payable at the assumed retirement age and offsetting ERP and RRP benefits that would be payable at the same age. The net SERP benefit was then valued as an immediately payable annuity using the assumptions described previously. Upon termination of employment for any reason other than for cause, Mr. Burd will receive his accumulated net SERP benefit as an annuity paid monthly (commencing within 90 days of the first day of the seventh month after such termination of employment if for any reason other than death). In the event of a termination of Mr. Burd’s employment for cause, Mr. Burd would not receive a payment under the SERP. Cause is defined in the SERP as: (i) an act of fraud, dishonesty, misappropriation, illegal conduct or gross misconduct that has a material impact on our assets or reputation; or (ii) a conviction of, or plea of nolo contendere to, a felony or misdemeanor involving moral turpitude and materially impacting the Company.
(5) These amounts were not vested as of January 3, 2009. In the event the named executive officer’s employment had been terminated as of January 3, 2009 voluntarily, involuntarily with or without cause or as a result of a change in control, the named executive officer would have received $0 under this benefit.

 

This excerpt taken from the SWY DEF 14A filed Apr 2, 2008.

PENSION BENEFITS

 

The following table quantifies the benefits expected to be paid to the named executive officers under our Employee Retirement Plan (the “ERP”), a qualified defined benefit pension plan, our Retirement Restoration Plan and our Retirement Restoration Plan II (collectively, the “RRP”), non-qualified defined benefit pension plans, and a Supplemental Employee Retirement Plan for Mr. Burd (the “SERP”). The Retirement Restoration Plan II became effective on January 1, 2005 in connection with the passage of Code Section 409A. The terms of the plans are described below the table.

 

The following actuarial assumptions were employed to derive the calculations shown on the table below: (1) pension economic assumptions utilized for our SFAS 132 (as amended by SFAS 158) financial reporting for the 2007 fiscal year were used for calculations at the end of 2007; (2) demographic assumptions are also consistent with pension financial reporting, with the exception of modified retirement and pre-retirement decrements as required by SEC guidance; (3) a discount rate of 6.10%; (4) a cash balance interest crediting and annuity conversion interest rate of 5.10%; and (5) an account balance interest crediting rate of 3.80%.

 

Additional actuarial assumptions used include the following: (1) account balance annuity conversion rate – product of account balance and a factor of 1.00% at ages over 55; (2) mortality table for lump sum conversion – Group Annuity Reserving 1994 (“1994 GAR”); (3) retirement table for post-retirement mortality – RP2000 projected to 2015; (4) no pre-retirement mortality, turnover or disability; (5) retirement age of 65 for cash balance only participants (Mr. Edwards, Mr. Gordon and Mr. Cornell), age 62 for participants in the ERP grandfather (Mr. Burd, Mr. Everette and Ms. Renda) and immediate retirement for Mr. Burd’s SERP agreement.

 

Columns specified in the SEC rules are omitted where there is no amount to report. As a result of Mr. Cornell’s termination of employment with us during fiscal year 2007, Mr. Cornell did not have any accumulated benefits under the ERP or the RRP at the end of fiscal year 2007.

 

Name

    Plan Name(1)     Number of
Years Credited
Service
(2)		     Present Value
of Accumulated
Benefit
(3)

Steven A. Burd

    ERP
RRP
SERP		  
 
(4)		   14.2

14.2

N/A

  

 

 

   $

$

$

680,329

3,819,725

10,780,752

Robert L. Edwards

    ERP
RRP		  
 		   2.8

2.8

 (5)

(5)

   $

$

 44,391

151,942

Larree M. Renda

    ERP
RRP		  
 		   24.4

24.4

  

(5)

   $

$

 618,224

1,408,780

Bruce L. Everette

    ERP
RRP		  
 		   31.1

31.1

  

 

   $

$

 898,529

2,337,705

Robert A. Gordon

    ERP
RRP		  
 		   7.6

7.6

  

 

   $

$

 142,883

203,687

 

(1)

We provide our eligible executives with retirement benefits that are in addition to those provided to our employees generally. These retirement benefits are provided using a combination of a qualified defined benefit pension plan and non-qualified defined benefit pension plans. Mr. Burd is also covered by the SERP, called the Supplemental Retirement Benefit Agreement. No other executive officer has a supplemental retirement benefit other than the RRP. Under the ERP, upon termination of employment for any reason (including in connection with a change in control), a participant may elect to receive his or her vested benefit via a lump sum payment or an annuity paid monthly. Under the RRP, upon termination of

 

43

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employment for any reason (including in connection with a change in control), a participant will receive his or her vested benefit via an annuity paid monthly. Under the ERP, in the event of termination of employment for any reason, a participant must have at least five years of service with us or must have reached age 55 to receive his or her accumulated benefits, and under the RRP, a participant must have reached age 55 to receive his or her accumulated benefits.

(2) The number of years of credited service and the present value of accumulated benefits are calculated as of December 29, 2007, which is the measurement date used for reporting purposes in the 2007 10-K.
(3) Account-based cash benefits were projected to the assumed retirement age using the appropriate interest rate. No future contributions were assumed. These projected accounts were converted to annuities at the assumed retirement age using the annuity conversion mortality and interest assumptions used in our financial disclosures (e.g., cash balance accounts are converted using 1994 GAR mortality and 5.1% interest). Employee contribution account balances were converted to annuities at current assumptions. Benefits payable at the assumed retirement age were converted to a present value at that date using the mortality and interest assumptions for annuity present values that were used in our financial disclosures (e.g., end of fiscal 2007 annuity was valued at assumed retirement age using RP2000 projected to 2015 mortality and 6.1% interest). The present value determined at the assumed retirement age was discounted back to the end of the 2007 fiscal year using the pension financial reporting discount rate.
(4) Since benefits under this plan are not tenure-based, there are no creditable years of service related to this plan. Mr. Burd’s SERP benefit was valued by calculating the gross benefit payable at the assumed retirement age and offsetting ERP and RRP benefits that would be payable at the same age. The net SERP benefit was then valued as an immediately payable annuity using the assumptions described previously. Upon termination of employment for any reason other than cause, Mr. Burd will receive his accumulated net SERP benefit as a monthly annuity. In the event of a termination of Mr. Burd’s employment for cause, Mr. Burd would not receive a payment under the SERP. Cause is defined in the SERP as: (i) an act of fraud, dishonesty, misappropriation, illegal conduct or gross misconduct that has a material impact on our assets or reputation; or (ii) a conviction of, or plea of nolo contendere to, a felony or misdemeanor involving moral turpitude and materially impacting the Company.
(5) These amounts were not vested as of December 29, 2007. In the event the named executive officer’s employment had been terminated as of December 29, 2007 voluntarily, involuntarily with or without cause or as a result of a change in control, the named executive officer would have received $0 under this benefit.

 

This excerpt taken from the SWY DEF 14A filed Apr 4, 2007.

PENSION BENEFITS

 

The following table quantifies the benefits expected to be paid to the named executive officers under the Company’s Employee Retirement Plan (the “ERP”), a qualified defined benefit pension plan, the Company’s Retirement Restoration Plan and the Company’s Retirement Restoration Plan II (collectively, the “RRP”), non-qualified defined benefit pension plans, and a Supplemental Employee Retirement Plan for Mr. Burd (the “SERP”). The Retirement Restoration Plan II became effective on January 1, 2005 in connection with the passage of Code Section 409A. The terms of the plans are described below the table.

 

The following actuarial assumptions were employed to derive the calculations shown on the table below: (1) pension economic assumptions utilized for the Company’s SFAS 132 (as amended by SFAS 158 for 2006) financial reporting for fiscal years ending in 2005 and 2006 were used for calculations at the end of those years, respectively; (2) demographic assumptions are also consistent with pension financial reporting, with the exception of modified retirement and pre-retirement decrements as required by SEC guidance; (3) a discount rate of 5.69% was used for 2005 and 5.97% for 2006; (4) a cash balance interest crediting and annuity conversion interest rate of 5.00% was used for both 2005 and 2006; and (5) an account balance interest crediting rate of 5.00% was used for 2005 and 3.70% for 2006.

 

Additional actuarial assumptions used include the following: (1) account balance annuity conversion rate – product of account balance and a factor of 1.00% at ages over 55; (2) mortality table for lump sum conversion – GAR94 for 2005 and 2006; (3) retirement table for post-retirement mortality – RP2000 projected to 2006 for 2005 calculations and RP2000 projected to 2015 for 2006 calculations; (4) no pre-retirement mortality, turnover or disability; (5) retirement age of 65 for cash balance only participants (Mr. Cornell and Mr. Edwards), age 62 for participants in the ERP grandfather (Mr. Burd, Mr. Everette and Ms. Renda) and immediate retirement for Mr. Burd’s SERP agreement.

 

Name

    Plan Name(1)    

Number of
Years Credited
Service

(#)(2)

   

Present Value
of Accumulated
Benefit

($)(3)

  

Steven A. Burd

    ERP
RRP
SERP		  
 
(4)		   13.2
13.2
N/A		    $
$
$		 647,772
3,649,235
8,508,087		  
 
 

Robert L. Edwards

    ERP
RRP		  
 		   1.8
1.8		    $
$		 29,823
75,498		 (5)
(5)

Brian C. Cornell

    ERP
RRP		  
 		   1.6
1.6		    $
$		 28,816
89,997		 (5)
(5)

Larree M. Renda

    ERP
RRP		  
 		   23.4
23.4		    $
$		 593,588
1,361,972		  
(5)

Bruce L. Everette

    ERP
RRP		  
 		   30.1
30.1		    $
$		 860,686
2,243,766		  
 
(1)

The Company provides its eligible executives with retirement benefits that are in addition to those provided to its employees generally. These retirement benefits are provided using a combination of the ERP, a qualified defined benefit pension plan, and the RRP non-qualified defined benefit pension plans. Mr. Burd is also covered by the SERP, called the Supplemental Retirement Benefit Agreement. No other executive officer has a supplemental retirement benefit other than the RRP. Under the ERP, upon termination of employment for any reason (including in connection with a change in control), a participant may elect to receive his or her vested benefit via a lump sum payment or an annuity paid monthly. Under the RRP, upon termination of employment for any reason (including in connection with a change in control), a participant will receive his or her vested benefit via an annuity paid monthly. Under the ERP, in the event of

 

40

 

termination of employment for any reason, a participant must have at least five years of service with the Company or must have reached age 55 to receive his or her accumulated benefits, and under the RRP, a participant must have reached age 55 to receive his or her accumulated benefits.

(2) The number of years of credited service and the present value of accumulated benefits are calculated as of December 30, 2006, which is the measurement date used for reporting purposes in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2006.
(3) Account-based cash benefits were projected to the assumed retirement age using the appropriate interest rate. No future contributions were assumed. These projected accounts were converted to annuities at the assumed retirement age using the annuity conversion mortality and interest assumptions used in the Company’s financial disclosures (e.g., cash balance accounts are converted using 1994 GAR mortality and 5.00% interest). Employee contribution account balances were converted to annuities at current assumptions. Benefits payable at the assumed retirement age were converted to a present value at that date using the mortality and interest assumptions for annuity present values that were used in the Company’s financial disclosures (e.g., end of fiscal 2006 annuity was valued at assumed retirement age using RP2000 projected to 2015 mortality and 5.97% interest). The present value determined at the assumed retirement age was discounted back to the end of the 2005 or 2006 fiscal year using the pension financial reporting discount rate.
(4) Since benefits under this plan are not tenure-based, there are no creditable years of service related to this plan. Mr. Burd’s SERP benefit was valued by calculating the gross benefit payable at the assumed retirement age and offsetting ERP and RRP benefits that would be payable at the same age. The net SERP benefit was then valued as an immediately payable annuity using the assumptions described previously. Upon termination of employment for any reason other than cause, Mr. Burd will receive his accumulated net SERP benefit as an annuity paid monthly. In the event of a termination of Mr. Burd’s employment with the Company for cause, Mr. Burd would not receive a payment under the SERP. Cause is defined in the SERP as: (i) an act of fraud, dishonesty, misappropriation, illegal conduct or gross misconduct that has a material impact on the assets or reputation of the Company; or (ii) a conviction of or plea of nolo contendere to a felony or misdemeanor involving moral turpitude and materially impacting the Company.
(5) These amounts were not vested as of December 30, 2006. In the event the named executive officer’s employment with the Company had been terminated as of December 30, 2006 voluntarily, involuntarily with or without cause or as a result of a change in control of the Company, the named executive officer would have received $0 under this benefit.

 

EXCERPTS ON THIS PAGE:

DEF 14A
Mar 27, 2009
DEF 14A
Apr 2, 2008
DEF 14A
Apr 4, 2007

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