Hertz 2014 Annual Report Download - page 260

Table of Contents
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 
Please see the note “Employee Retirement Benefits” in the notes to the Company’s consolidated financial statements in our Form 10‑K for the fiscal year ended
December 31, 2014, for a discussion of these assumptions.
(2) Amounts for Mr. Taride have been translated from pounds sterling to U.S. dollars at the 12 ‑month average rate of 1.64739. Mr. Taride’s number of actual years of service
with us is 28.
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In 2014, we modified the overall structure of, and participation in, our various retirement plans. As previously announced on October 22, 2014,
effective as of December 31, 2014, we are no longer providing future benefit accruals under the following plans (the “Previous Plans”) for the
NEOs:
The Hertz Corporation Account Balance Defined Benefit Pension Plan;
The BEP; and
The SERP II.
To replace the Previous Plans, we offered to our employees, including the NEOs (other than Mr. Taride), participation in a revised defined
contribution plan. Beginning January 1, 2015 the Company increased employer contributions under the Company’s qualified 401(k) savings plan
(the “401(k) Plan”), to provide that eligible participants under the 401(k) Plan are eligible to receive a matching employer contribution to their
401(k) Plan account equal to (i) 100% of the first 3% of employee contributions made by such participant and (ii) 50% of the next 2% of employee
contributions, with the total amount of such matching employer contribution to be completely vested, subject to applicable limits under the Code.
Certain eligible participants under the 401(k) Plan received additional employer contribution amounts to their 401(k) Plan account depending on
their years of service and age.
In connection with the replacement of the Previous Plans and the adoption of the 401(k) Plan, we adopted a deferred compensation plan to provide
for eligible employees, including the NEOs, to defer part of their compensation, effective for 2015. The Hertz Corporation Supplemental Income
Savings Plan is a deferred compensation plan that provides benefits that cannot be provided in The Hertz Corporation Income Savings Plan due to
Code limitations on compensation.
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The Hertz Corporation Account Balance Defined Benefit Pension Plan is a tax‑qualified pension plan for which we paid the entire cost. The benefit
an employee receives is based on a combination of final average compensation, years of credits service up to July 1, 1987 and an accrued cash
account after July 1, 1987.
The BEP provides equalization benefits due to limitations on tax‑qualified retirement plans imposed by the Code. Messrs. Broome, Frissora, Sider,
Stuart, and Zimmerman participate or participated in the BEP. Benefits under the BEP are fully vested after the earlier of three years of vesting
service or at age 65.
The SERP II provides additional equalization benefits to supplement the tax-qualified and non-qualified plans. Messrs. Broome, Frissora, Sider,
Stuart and Zimmerman participate or participated in the SERP II. Benefits under the SERP II are generally payable only to participants who, upon
the termination of their employment, have been credited with five vesting years of service under the pension plan and whose employment
terminates due to death or disability or after attainment of age 55. Those benefits are also payable to participants who have not attained age 55 if
their employment is terminated (other than voluntarily or for cause) with respect to certain changes in control of Hertz or its subsidiaries.
Mr. Taride participates in two retirement plans--the Hertz UK 1972 Pension Plan and the Hertz UK Supplementary Unapproved Pension Scheme,
or the “Hertz UK Supplementary Plan.” These two plans provide for, in the case of Mr. Taride, 1/30 of his final salary for each year of service in the
plans subject to a maximum of two‑thirds of his final salary at the time of his retirement. Under these plans, Mr. Taride has a right to retire at age
60. Due to a transition to a U.K. defined contribution plan in 2011, Mr. Taride is still entitled to his accrued benefits under the plans, but we are no
longer providing future benefit accruals.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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