EMC 2008 Annual Report Download - page 89

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
immediately 100% vested. Our contributions amounted to $60.4 million, $52.8 million and $48.6 million in 2008, 2007 and 2006, respectively.
Employees may elect to invest their contributions in a variety of funds, including an EMC stock fund. The deferred compensation program limits an
employee's maximum investment allocation in the EMC stock fund to 30% of their total contribution. Our matching contribution mirrors the investment
allocation of the employee's contribution.
VMware 401(k) Plan
Prior to March 2008, VMware employees participated in the EMC Corporation 401(k) Savings Plan (the "EMC Plan"), and EMC cross-charged VMware
for the costs associated with VMware employees who participated in the EMC Plan.
In 2008, VMware established a defined contribution retirement savings program, the VMware, Inc. 401(k) Savings Plan (the "VMware Plan"), which is
qualified under Section 401(k) of the Code. This plan is available solely to employees of VMware. In March 2008, VMware employees began participating in
the VMware Plan and ceased participation in the EMC Plan. In March 2008, $96.4 million of assets and $1.1 million of participant loans were transferred
from the EMC Plan into the VMware Plan.
VMware has matched pre-tax employee contributions up to 6% of eligible compensation during each pay period, subject to a $750 maximum match each
quarter per employee. Matching contributions are immediately 100% vested. VMware contributions for employees were $9.0 million, $5.8 million and
$3.1 million in the years ended December 31, 2008, 2007 and 2006, respectively. Employees may elect to invest their contributions in a variety of funds.
VMware's matching contribution mirrors the investment allocation of the employee's contribution.
Beginning January 1, 2009, VMware suspended its company match of pre-tax employee contributions.
Defined Benefit Pension Plan
We have noncontributory defined benefit pension plans which were assumed as part of the Data General acquisition, which cover substantially all former
Data General employees located in the U.S. and Canada. In addition, certain of the former Data General foreign subsidiaries also have retirement plans
covering substantially all of their employees. All of these plans were frozen in 1999 resulting in employees no longer accruing pension benefits for future
services. Certain of our foreign subsidiaries also have a defined benefit pension plan.
Benefits under these plans are generally based on either career average or final average salaries and creditable years of service as defined in the plans.
The annual cost for these plans is determined using the projected unit credit actuarial cost method that includes actuarial assumptions and estimates which are
subject to change. The measurement date for the plans is December 31.
Our investment policy provides that no security, except issues of the U.S. Government, shall comprise more than 5% of total plan assets, measured at
market. At December 31, 2008, the Data General U.S. pension plan held $0.3 million of our common stock.
The Data General U.S. pension plan and Canada pension plan (the "Pension Plans") are summarized in the following tables. The other pension plans are
not presented because they do not have a material impact on our consolidated financial position or results of operations.
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