SLE » Topics » Retirement Programs

This excerpt taken from the SLE DEF 14A filed Sep 16, 2009.

Retirement Programs

 

The retirement program for the named executive officers in the United States hired before July 1, 2005 consists of a defined benefit pension plan and a defined contribution Section 401(k) plan. Effective July 1, 2005, we changed our retirement plan design by closing the defined benefit plan to new entrants and enhancing our contributions to the 401(k) plan. Mr. van Oers participates in the Stichting Pensioenfonds Sara Lee Nederland (the “Dutch Pension Plan”). The Dutch Pension Plan is a combination defined benefit/defined contribution plan. The terms and conditions of these plans are described beginning on page 46 of this proxy statement.

 

We also maintain supplemental retirement plans which allow those employees whose compensation exceeds limits established by the Internal Revenue Code for covered compensation and benefit levels to receive the same

 

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benefits they would have earned but for these limitations. These supplemental plans, in effect, enable participants to receive the same benefits provided to those employees not impacted by these Internal Revenue Code limits. On rare occasions, additional benefits are provided under these plans, as in the case of Ms. Barnes. As part of the terms of her employment with Sara Lee in 2004, Ms. Barnes receives two years credit for each one year of actual credited service for purposes of eligibility, vesting, and benefit accrual under the retirement programs.

 

Mr. de Kool was an expatriate from The Netherlands on assignment in the United States since 2002. While on assignment, he participated in Sara Lee’s retirement program in the United States and was legally precluded from continued participation in Sara Lee’s Dutch retirement program while in the United States. To eliminate any lost benefits that might otherwise result from this assignment, Sara Lee agreed that upon Mr. de Kool’s retirement, it would compare the benefits to be paid from both the United States and Dutch plans with those that he would have received under the Dutch program had he remained in that program for his entire period of employment with Sara Lee, recognizing his United States-based service and compensation, and would pay from the supplemental retirement program any benefits that would have otherwise been lost. Based upon the comparison made as a result of Mr. de Kool’s termination of employment on June 30, 2009, it was determined that no benefits were lost and no additional benefits were due.

 

Additional information about Ms. Barnes’ and Mr. de Kool’s retirement program participation is located beginning on page 40 of this proxy statement.

 

This excerpt taken from the SLE DEF 14A filed Sep 16, 2008.

Retirement Programs

 

The retirement program in the United States for the named executive officers, excluding Messrs. Nühn, Janssen and van Oers, consists of a defined benefit pension plan and a defined contribution 401(k) plan. The pension plan benefit is determined by a formula based upon employees’ compensation and years of credited service. The formula is 1.75% times final average compensation times credited service, minus a social security offset. A maximum of 35 years of credited service is recognized under the plan and employees are fully vested in

 

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the pension plan after five years of service or at age 65, regardless of service. Under the 401(k) plan, Sara Lee currently provides matching contributions of 2.73% of eligible compensation (100% match up to 2%, plus discretionary match of 0.73%) provided that the participant is contributing at least 2% of eligible pay. Additionally, all participants receive a company annual contribution of 2% regardless of their contribution level. Employees are always fully vested in their contributions to the 401(k) plan and fully vest in the company’s matching contributions after five years of service. Since Mr. Cerrone was hired after July 1, 2005, when Sara Lee changed the retirement program for employees hired after this date to solely a defined contribution 401(k) plan, he participates under the new plan design. The new plan provides 100% matching contributions of up to 4% of eligible pay plus annual company contributions of 5.5% of eligible pay. Employees are always fully vested in their contributions to the 401(k) plan and fully vest in the company’s contributions after five years of service. Messrs. Nühn, Janssen and van Oers participate in the Sara Lee International B.V. Pension Plan, which is a combination defined benefit/defined contribution plan. The defined benefit plan covers earnings up to Euro 84,264 (approximately $133,053). Sara Lee makes defined contributions to the plan based on the participant’s age and the participant’s qualified earnings in excess of Euro 84,264. In fiscal year 2008, Sara Lee’s contribution rate was 27.5% of qualified earnings in excess of Euro 84,264 for Messrs. Nühn and Janssen and 19% of qualified earnings in excess of Euro 84,264 for Mr. van Oers.

 

Sara Lee maintains supplemental retirement plans which allow those employees whose compensation exceeds limits established by the Internal Revenue Code for covered compensation and benefit levels to receive the same benefits they would have earned but for these limitations. These supplemental plans, in effect, enable participants to receive the same benefits enjoyed by those employees not impacted by these Internal Revenue Code limits. On rare occasions, additional benefits are provided under these plans, as in the case of Ms. Barnes. As part of the terms of her employment with the company, Ms. Barnes receives two years credit for each one year of actual credited service for purposes of eligibility, vesting and benefit accrual under the retirement programs.

 

Mr. de Kool has been an expatriate from The Netherlands on assignment in the United States since 2002. While on assignment, he participates in the company’s retirement programs in the United States and is legally precluded from continued participation in the company’s Dutch retirement program while in the United States. In order to eliminate any lost benefits that might otherwise result from this assignment, the company has agreed that upon Mr. de Kool’s retirement, it will compare the benefits to be paid from both the U. S. and Dutch plans with those that he would have received under the Dutch program had he remained in that program for his entire period of employment with Sara Lee, recognizing his U.S.-based service and compensation, and pay from the supplemental retirement program any benefits that would have otherwise been lost.

 

More details on Ms. Barnes’s and Mr. de Kool’s retirement program participation are on page 41 of this proxy statement.

 

This excerpt taken from the SLE DEF 14A filed Sep 14, 2007.

Retirement Programs

 

The retirement program in the United States for the named executive officers, excluding Mr. Nühn, consists of a defined benefit pension plan and a defined contribution 401(k) plan. The pension plan benefit is determined by the plan’s formula, which is based upon employees’ compensation and years of credited service. The formula is 1.75% times final average compensation times credited service, minus a social security offset. A maximum of 35 years of credited service is recognized under the plan and employees are fully vested in the pension plan after five years of service or at age 65, regardless of service. Under the 401(k) plan, Sara Lee currently contributes 2.73% of participants’ eligible pay with an additional 2.0% of company matching contributions that are contingent upon the employee also contributing to the 401(k) plan. Employees are always fully vested in their contributions to the 401(k) plan and fully vest in the company’s matching contributions after five years of service. Mr. Nühn participates in the Sara Lee International B.V. Pension Plan, which is a combination defined benefit/defined contribution plan. Sara Lee makes defined contributions to the Plan based on the participant’s age and the participant’s qualified earnings in excess of Euro 81,810 (approximately $110,113). Sara Lee’s contribution rate for Mr. Nühn in fiscal 2007 was 17.6% of qualified earnings in excess of Euro 81,810.

 

Sara Lee maintains supplemental retirement plans which allow those employees whose compensation exceeds thresholds established by the Internal Revenue Code for covered compensation and benefit levels to

 

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receive the same benefits they would have earned but for these limitations. These supplemental plans, in effect, make participants whole with those employees not impacted by these Internal Revenue Code limits. On rare occasions, additional benefits are provided under these plans, as in the case of Ms. Barnes. As part of the terms of her employment with the company, Ms. Barnes receives two years credit for each one year of actual credited service for purposes of vesting and benefit accrual under the retirement programs.

 

Mr. de Kool has been an expatriate from The Netherlands on assignment in the United States since 2002. While on assignment, he participates in the company’s retirement programs in the United States and is legally precluded from continued participation in the company’s Dutch retirement program while in the United States. In order to eliminate any lost benefits that might otherwise result from this assignment, the company has agreed that upon Mr. de Kool’s retirement, it will compare the benefits to be paid from both the U. S. and Dutch plans with those that he would have received under the Dutch program had he remained in this program for his entire period of employment with Sara Lee, recognizing his U.S.-based service and compensation, and pay from the supplemental retirement program any benefits that would have otherwise been lost.

 

More details on Ms. Barnes’ and Mr. de Kool’s retirement program participation are on page 38 of this proxy statement.

 

"Retirement Programs" elsewhere:

Procter & Gamble Company (PG)
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