Sallie Mae 2008 Annual Report Download - page 206

18. Benefit Plans (Continued)
27 percent in cash which is invested in U.S. government securities, the duration of which closely matches that
of the traditional and cash balance nature of plan liabilities.
Cash Flows
The Company did not contribute to its qualified pension plan in 2008 and does not expect to contribute
in 2009. There are no plan assets in the nonqualified plans due to the nature of the plans, and benefits are
paid from corporate assets when due to the participant. It is estimated that approximately $3 million will be
paid in 2009 for these benefits. No plan assets are expected to be returned to the employer during 2009.
Estimated Future Benefit Payments
The following qualified and nonqualified plan benefit payments, which reflect future service as appropri-
ate, are expected to be paid:
2009 ................................................................ $18,350
2010 ................................................................ 16,228
2011 ................................................................ 16,490
2012 ................................................................ 15,199
2013 ................................................................ 14,533
2014 — 2018 .......................................................... 73,904
401(k) Plans
The Company maintains two safe harbor 401(k) savings plans as defined contribution plans intended to
qualify under section 401(k) of the Internal Revenue Code. The Sallie Mae 401(k) Savings Plan covers
substantially all employees of the Company outside of Asset Performance Group hired before August 1, 2007.
Effective October 1, 2008 the Company matches up to 100 percent on the first 3 percent of contributions and
50 percent on the next 2 percent of contributions after one year of service, and all eligible employees receive
a 1 percent core employer contribution. Prior to October 1, 2008, up to 6 percent of employee contributions
were matched 100 percent by the Company after one year of service and certain eligible employees received a
2 percent core employer contribution.
The Sallie Mae 401(k) Retirement Savings Plan covers substantially all employees of Asset Performance
Group, and after August 1, 2007, the Retirement Savings Plan covers substantially all new hires of the
Company. Effective October 1, 2008 the Company matches up to 100 percent on the first 3 percent of
contributions and 50 percent on the next 2 percent of contributions after one year of service, and all eligible
employees receive a 1 percent core employer contribution. Between August 1, 2007 and September 30, 2008,
the match formula was up to 100 percent on the first 5 percent of contributions after one year of service.
During 2006 until July 31, 2007 the match formula was up to 100 percent on the first 3 percent of
contributions and 50 percent on the next 2 percent of contributions after one year of service.
The Company also maintains a non-qualified plan to ensure that designated participants receive benefits
not available under the 401(k) Plan due to compensation limits imposed by the Internal Revenue Code.
Total expenses related to the 401(k) plans were $21 million, $22 million and $21 million in 2008, 2007
and 2006, respectively.
F-86
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)