OG&E 2009 Annual Report Download - page 93

rollover contributions, or with respect to a participant’s contributions based on overtime payments, pay-in-lieu of overtime for exempt
personnel, special lump-sum recognition awards and lump-sum merit awards included in compensation for determining the amount of
participant contributions. Prior to January 1, 2010, OGE Energy’s contribution, which was initially allocated for investment to the
OGE Energy Corp. Common Stock Fund, was made in shares of OGE Energy’s common stock or in cash which was used to invest in
OGE Energy’s common stock. Once made, OGE Energy’s contribution could be reallocated, on any business day, by participants to
other available investment options. The 401(k) Plan was amended effective January 1, 2010, whereby OGE Energy’s contribution
may be directed to any available investment option in the 401(k) Plan. The Company contributed approximately $5.6 million, $5.1
million and $4.7 million in 2009, 2008 and 2007, respectively, to the 401(k) Plan.
Deferred Compensation Plan
OGE Energy provides a nonqualified deferred compensation plan which is intended to be an unfunded plan. The plan’s
primary purpose is to provide a tax-deferred capital accumulation vehicle for a select group of management, highly compensated
employees and non-employee members of the Board of Directors of OGE Energy and to supplement such employees’ 401(k) Plan
contributions as well as offering this plan to be competitive in the marketplace.
Eligible employees who enroll in the plan have the following deferral options: (i) eligible employees may elect to defer up to
a maximum of 70 percent of base salary and 100 percent of annual bonus awards or (ii) eligible employees may elect a deferral
percentage of base salary and bonus awards based on the deferral percentage elected for a year under the 401(k) Plan with such
deferrals to start when maximum deferrals to the qualified 401(k) Plan have been made because of limitations in that plan. Eligible
directors who enroll in the plan may elect to defer up to a maximum of 100 percent of directors’ meeting fees and annual
retainers. OGE Energy matches employee (but not non-employee director) deferrals to make up for any match lost in the 401(k) Plan
because of deferrals to the deferred compensation plan, and to allow for a match that would have been made under the 401(k) Plan on
that portion of either the first six percent of total compensation or the first five percent of total compensation, depending on the option
the participant elected under the Choice Program discussed above, deferred that exceeds the limits allowed in the 401(k) Plan.
Matching credits vest based on years of service, with full vesting after six years or, if earlier, on retirement, disability, death, a change
in control of OGE Energy or termination of the plan. In addition, the Benefits Committee may award discretionary employer
contribution credits to a participant under the plan. OGE Energy accounts for the contributions related to the Company’s executive
officers in this plan as Accrued Benefit Obligations and the Company accounts for the contributions related to the Company’s
directors in this plan as Other Deferred Credits and Other Liabilities in the Balance Sheets. The investment associated with these
contributions is accounted for as Other Property and Investments in OGE Energy’s Consolidated Balance Sheets. The appreciation of
these investments is accounted for as Other Income and the increase in the liability under the plan is accounted for as Other Expense
in OGE Energy’s Consolidated Statements of Income.
Supplemental Executive Retirement Plan
OGE Energy provides a supplemental executive retirement plan in order to attract and retain lateral hires or other executives
designated by the Compensation Committee of OGE Energy’s Board of Directors who may not otherwise qualify for a sufficient level
of benefits under OGE Energy’s Pension Plan and restoration of retirement income plan. The supplemental executive retirement plan
is intended to be an unfunded plan and not subject to the benefit limits imposed by the Code.
12. Commitments and Contingencies
Operating Lease Obligations
Future minimum payments for the noncancellable operating lease for railcars are as follows:
2015 and
Year ended December 31 (In millions) 2010 2011 2012 2013 2014 Beyond Total
Operating lease obligations
Railcars $ 3.9 $ 38.0 $ --- $ --- $ --- $ --- $ 41.9
Payments for operating lease obligations were approximately $5.0 million, $3.9 million and $3.9 million in 2009, 2008 and
2007, respectively.
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