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This excerpt taken from the SMG DEF 14A filed Dec 20, 2006. Pension
Plans
Scotts LLC maintains a tax-qualified, non-contributory defined
benefit pension plan (the “Pension Plan”). Eligibility
for and accruals under the Pension Plan were frozen as of
December 31, 1997.
Monthly benefits under the Pension Plan upon normal retirement
(age 65) are determined under the following formula:
(ii) years of benefit service
through December 31, 1997; reduced by
Compensation includes all earnings plus 401(k) contributions and
salary reduction contributions for welfare benefits, but does
not include earnings in connection with foreign service, the
value of a company car or separation or other special
allowances. An individual’s primary Social Security benefit
is based on the Social Security Act as in effect on
December 31, 1997, and assumes constant compensation
through age 65
Table of Contents
and that the individual will not retire earlier than
age 65. No more than 40 years of benefit service are
taken into account. The Pension Plan includes additional
provisions for early retirement.
Benefits under the Pension Plan are supplemented by benefits
under The Scotts Company LLC Excess Benefit Plan (the
“Excess Benefit Plan”). The Excess Benefit Plan was
established October 1, 1993 and was also frozen as of
December 31, 1997. The Excess Benefit Plan provides
additional benefits to participants in the Pension Plan whose
benefits are reduced by limitations imposed under
Sections 415 and 401(a)(17) of the Internal Revenue Code.
Under the Excess Benefit Plan, executive officers and certain
key employees will receive, at the time and in the same form as
benefits are paid under the Pension Plan, additional monthly
benefits in an amount which, when added to the benefits paid to
each participant under the Pension Plan, will equal the benefit
amount such participant would have earned but for the
limitations imposed by the Internal Revenue Code.
The estimated annual benefits under the Pension Plan and the
Excess Benefit Plan payable upon retirement at normal retirement
age for each of the individuals named in the Summary
Compensation Table are:
Associates participate in the RSP, formerly known as “The
Scotts Company Profit Sharing and Savings Plan.” The RSP,
as amended and restated effective as of December 31, 1997,
consolidated various defined contribution retirement plans in
effect at the Company and its domestic subsidiaries. The RSP
permits 401(k) contributions, employee after-tax contributions,
Scotts LLC matching contributions, Scotts LLC retirement
contributions, and, between 1998 and 2002 for participants whose
benefits were frozen under the Pension Plan and the
Scotts-Sierra Horticultural Products Company Retirement Plan for
Salaried Employees, certain transitional contributions based on
age and service.
Certain executive management and other highly paid employees,
including the individuals named in the Summary Compensation
Table, also participate in the Executive Retirement Plan
described above under “— Equity Compensation
Plan Information — Executive Retirement
Plan” at page 27.
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