MoneyGram 2010 Annual Report Download - page 124

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The projected benefit obligation and accumulated benefit obligation for the defined benefit pension plan, SERPs and the postretirement
benefit plans are in excess of the fair value of plan assets as shown below:
Pension Plan SERPs Postretirement Benefits
(Amounts in thousands) 2010 2009 2010 2009 2010 2009
Projected benefit obligation $ 152,904 $ 145,933 $ 68,587 $ 65,683 $ 1,027 $ 4,521
Accumulated benefit obligation 152,904 145,933 68,587 65,683 — —
Fair value of plan assets 107,136 102,908 — — — —
Estimated future benefit payments for the defined benefit pension plan and SERPs and the postretirement benefit plans are as follows:
(Amounts in thousands) 2011 2012 2013 2014 2015 2016-20
Pension and SERPs $ 14,284 $ 14,602 $ 14,393 $ 14,478 $ 20,000 $ 74,274
Postretirement benefits 111 95 105 112 93 334
The Company has a minimum required contribution of approximately $7.9 million for the defined benefit pension plan in 2011, and will
continue to make contributions to the SERPs and the postretirement benefit plans to the extent benefits are paid. Aggregate benefits paid
for the unfunded plans are expected to be $4.6 million in 2011.
Employee Savings Plan — The Company has an employee savings plan that qualifies under Section 401(k) of the Internal Revenue Code
of 1986, as amended. Contributions to, and costs of, the 401(k) defined contribution plan totaled $3.4 million, $3.7 million and
$3.7 million in 2010, 2009 and 2008, respectively. MoneyGram does not have an employee stock ownership plan.
Deferred Compensation Plans — Under the Deferred Compensation Plan for Directors of MoneyGram International, Inc., non-employee
directors were allowed to defer all or part of their retainers, fees and stock awards in the form of stock units or cash prior to 2009. In
2007, the plan was amended to require that a portion of the retainer received by non-employee directors be deferred in stock units. In
2008, the plan was amended to state that directors who join the Board on or after March 24, 2008 shall not be eligible to participate in the
plan. Effective January 1, 2009, voluntary deferrals of director fees and stock unit retainers under the plan were permanently
discontinued. Deferrals made prior to 2009 will remain in the plan until such amounts become distributable in accordance with the
Director's deferral elections. In April 2010, the plan was amended to convert stock unit accounts into cash. Deferred cash accounts are
credited quarterly with interest based on the one-year Constant Maturity rate.
Under the Deferred Compensation Plan for Management, prior to 2010, certain employees could elect to defer their base compensation
and incentive pay in the form of cash. In addition, the Company made contributions to certain participants' accounts for profit sharing
contributions beyond the IRS qualified plan limits. In April 2010, the plan was amended to discontinue all future deferrals under the plan.
Management deferred accounts are generally payable based upon the timing and method elected by the participant. In April 2010, the
plan was amended to convert stock unit accounts to cash. Deferred cash accounts are credited quarterly with interest at the one-year
Constant Maturity rate.
In February 2011, the plan was amended to (a) terminate all employee deferral accounts on the amendment date and pay each participant
the balance of the participant's account in a lump sum one year from termination and (b) cash out all employer deferral accounts if and
when the account balance falls below the applicable dollar amount under Section 402(g)(1)(B) of the Internal Revenue Code.
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