LensCrafters 2012 Annual Report Download - page 242

ANNUAL REPORT 2012> 156 |
Pension funds
Qualified Pension Plans - US Holdings sponsors a qualified noncontributory defined benefit
pension plan, the Luxottica Group Pension Plan (“Lux Pension Plan”), which provides for
the payment of benefits to eligible past and present employees of US Holdings upon
retirement. Pension benefits are gradually accrued based on length of service and annual
compensation under a cash balance formula. Participants become vested in the Lux
Pension Plan after three years of vesting service as defined by the Lux Pension Plan.
Nonqualified Pension Plans and Agreements - US Holdings also maintains a nonqualified,
unfunded supplemental executive retirement plan (“Lux SERP”) for participants of its
qualified pension plan to provide benefits in excess of amounts permitted under the
provisions of prevailing tax law. The pension liability and expense associated with this
plan are accrued using the same actuarial methods and assumptions as those used for the
qualified pension plan. This plan’s benefit provisions mirror those of the Lux Pension Plan.
US Holdings also sponsors the Cole National Group, Inc. Supplemental Pension Plan. This
plan is a nonqualified unfunded SERP for certain participants of the former Cole pension
plan who were designated by the Board of Directors of Cole on the recommendation of
Cole’s chief executive officer at such time. This plan provides benefits in excess of amounts
permitted under the provisions of the prevailing tax law. The pension liability and expense
associated with this plan are accrued using the same actuarial methods and assumptions
as those used for the qualified pension plan.