This excerpt taken from the SURW DEF 14A filed Mar 25, 2008.
The following table discloses the years of credited service of, present single sum value of the accrued benefits for, and payments during the last fiscal year to each of the Named Executive Officers under our Pension Plan, which is described in more detail below:
This excerpt taken from the SURW DEF 14A filed Mar 30, 2007.
Discount rate used to value pension liability equaling 6%; and
Mortality Table equals RP2000 for white collar workers. Benefit commencement at age first eligible for unreduced benefits defined by the Pension Plan to be the earlier of normal retirement age (age 65) or the age when the sum of the participants age and years of credited service equals 85.
Pension Plan and SERP
The Company has a qualified defined benefit pension plan in which certain employees have been eligible to participate substantially concurrently with the beginning of employment (Pension Plan), as well as a
supplemental non-qualified and unfunded supplemental executive retirement plan (SERP). The SERP provides benefits that would otherwise be denied participants by reason of certain Internal Revenue Code limitations on qualified plan benefits, based on remuneration that is covered under the plans and years of service with the Company. The only remaining participants in the SERP are now retired from the Company, and none of the Named Executive Officers participate in the SERP.
Benefits under the plans are a function of a participants years of service with the Company and the employees average annual compensation (salary and bonus) during the period of the highest five consecutive years in the last ten years of credited service. The monthly retirement benefit payable under the plans will be adjusted on the basis of actuarial equivalents for a joint and survivor benefit and for optional forms of benefit, such as the early retirement benefit. Benefits become fully vested at age 65 or on the completion of 5 years of service, whichever first occurs, and are not subject to any deduction for Social Security or other offset amounts. The benefits are not payable as a lump sum if the present value of the accrued benefit exceeds $50,000; they are generally paid as a monthly annuity for the life of the retiree (or his or her survivor). Benefit calculations are specifically based upon points, with an employees points equaling the sum of his or her age plus years of service. Employees who retire (i) at age 65, or (ii) with 85 or more points receive an unreduced benefit. Employees who reach age 55 and who have 5 years of service may elect early retirement with benefits reduced by 3% per point under 85 points, or 3% per year of age under age 65, whichever is less, with a maximum reduction of 30%.
Effective January 1, 2004, the Company modified the Pension Plan to reduce the benefits payable to participants who began employment on or after January 1, 2004. More significantly, in February 2007 the Company announced a freeze of all benefits under the Pension Plan as of April 1, 2007, so that a participants years of credited service and final average compensation used to determine the benefit under the Pension Plan were frozen for purposes of calculating the benefit amount. Participants will continue to receive credit for their age and years of service for vesting purposes and determining benefit payment amounts under full retirement or early retirement options. The freezing of benefits under the Pension Plan will not deprive any participant or beneficiary of any vested accrued benefits under the plans. Steven C. Oldham and Philip A. Grybas do not have five years of service with the Company, and will not be fully vested until the completion of five years of service. The other Named Executive Officers are fully vested under the Pension Plan. Bill M. DeMuth is currently eligible for full retirement benefits under the Pension Plan.
The Company also maintains a retirement plan available to all employees known as the SureWest KSOP, which consists of both an Employee Stock Ownership Plan (ESOP) and a cash or deferred feature under section 401(k) of the Internal Revenue Code. Employees may elect to contribute a portion of their salary to the SureWest KSOP, and the Company makes matching contributions up to 6% of the participants base salary. Participants can choose among multiple investment alternatives, including one fund which invests primarily in Company Common Stock. The Summary Compensation Table above provides information about matching Company contributions in 2006 for the benefit of the Named Executive Officers.