Neiman Marcus 2006 Annual Report Download - page 66

Retirement Plans
The executive officers, including the named executive officers, participate in our tax-qualified retirement plans under the
same rules that apply to all of our other employees. Mr. Tansky and Ms. Katz are provided additional retirement benefits under the
provisions of their respective employment contracts discussed later in this section.
Named executive officers earn retirement benefits under The Neiman Marcus Group, Inc. Employee Savings Plan (the 401(k)
Plan), The Neiman Marcus Group, Inc. Key Employee Deferred Compensation Plan, The Neiman Marcus Group, Inc. Retirement
Plan, and The Neiman Marcus Group, Inc. Supplemental Executive Retirement Plan. Taken together, these plans are intended to
provide competitive retirement income that is linked to Company performance and longer service. A description of the provisions of
these plans is provided below.
-- Savings Plan (401(k) Plan)
We have a funded tax-qualified defined contribution 401(k) plan, The Neiman Marcus Group, Inc. Employee Savings Plan
(referred to as the Employee Savings Plan), which covers substantially all employees, including each of the named executive officers.
The Employee Savings Plan is a retirement savings plan that allows participants to contribute up to the limit prescribed by the Internal
Revenue Service on a pre-tax basis (provided, however, that highly compensated employees are limited to 6% of eligible
compensation). The Company will match 100% of the first 2% and 25% of the next 4% of pay that is contributed to the Employee
Savings Plan after the first year of employment. All employee contributions to the Employee Savings Plan are fully vested upon
contribution. Company matching contributions vest after three years of service. All of the named executive officers participated in
the Employee Savings Plan in fiscal year 2007.
-- Retirement Plan
We also have a funded, tax-qualified pension plan known as The Neiman Marcus Group, Inc. Retirement Plan (referred to as
the Retirement Plan). The Retirement Plan is a "career-accumulation" plan and most employees qualify for participation. Each
participant becomes fully vested after five years of service with us. Each named executive officer participates in the Retirement Plan
and is fully vested. The Retirement Plan is described in more detail on page 68 under the heading "Pension Benefits."
-- Supplemental Retirement Plan and Key Employee Deferred Compensation Plan
U.S. tax laws limit the amount of benefits that we can provide under our tax-qualified plans. We maintain The Neiman
Marcus Group, Inc. Supplemental Executive Retirement Plan (referred to as the SERP) and the Neiman Marcus Group, Inc. Key
Employee Deferred Compensation Plan (referred to as the KEDC Plan), which are unfunded, nonqualified arrangements intended to
provide named executive officers and certain other key employees with additional benefits, including the benefits that they would
have received under the Retirement Plan and the Employee Savings Plan if the tax law limitations did not apply and if certain other
items of compensation could be included in calculation of benefits under our tax-qualified plans.
Participation in the SERP is limited to employees whose base salary is equal to or greater than $160,000 and meet other
stated criteria. Each SERP participant accrues a benefit for amounts in excess of those provided under the Retirement Plan. SERP
related benefits are more fully described under "Pension Benefits" on page 68.
Participation in the KEDC Plan is limited to employees whose base salary is in excess of $300,000 and meet other stated
criteria. Amounts in excess of those benefits provided under the Employee Savings Plan are credited to the account balances of each
KEDC Plan participant. KEDC Plan benefits are more fully described under "Nonqualified Deferred Compensation" on page 69.
Health-Related Benefits
Executive officers participate under the same plans as all other employees for medical, dental, vision, disability and life
insurance. These benefits are intended to be competitive with benefits offered in the retail industry. In addition, the executive
officers, including the named executive officers, participate in an executive life insurance program and a medical reimbursement
program. These benefits are included with the perquisites discussed below.
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