This excerpt taken from the TRC DEF 14A filed Mar 31, 2009.
Pension Benefits in Fiscal Year 2008
The Companys pension plan is a tax-qualified retirement program that covers eligible employees of the Company. Effective January 31, 2007, the pension plan was frozen so that anyone who was hired on or after February 1, 2007, is not allowed to enter the plan. An employee is eligible for normal retirement benefits on the first day of the month coinciding with or next following the employees Social Security Retirement Date. The amount of annual benefit, payable monthly, is based upon an employees Average Monthly Compensation which is based upon the employees highest five consecutive calendar years of compensation out of the employees final ten years of compensation. The amount of the annual benefit payable monthly shall be: 1.45% of the Average Monthly Compensation offset by .65% of the Final Average Compensation not in excess of one-twelfth of Covered Compensation multiplied by Total Years of Service (up to a maximum of 25 years); or the sum of the accrued benefit as of December 31, 1988 and the benefit as calculated above with Total Years of Service reduced by the Years of Service prior to January 1, 1989.
The named executive officers annual earnings taken into account under this formula include base salary and any annual cash or stock bonus payments, if any, but may not exceed an IRS -prescribed limit applicable to tax qualified plans ($230,000 for 2008).
Pension benefits fully vest after the completion of five years of service. Prior to that time the benefit is not vested.
The supplemental executive retirement plan, or SERP, was established for the named executive officers to replace any pension benefit the named executive officers might lose due to the IRS-prescribed limit applicable to tax-qualified plans.