US Cellular 2008 Annual Report Download - page 61

Other Generally Applicable Benefits and Plans
Employee Stock Purchase Plans
TDS sponsors an Employee Stock Purchase Plan that permits eligible employees of TDS and its
subsidiaries, including U.S. Cellular, to purchase a limited number of TDS Special Common Shares on a
quarterly basis. The per share cost to each participant is 85% of the market value of the Special
Common Shares as of the quarterly purchase date. Pursuant to SEC rules, the Summary Compensation
Table does not include the discount amount because such discount is available generally to all salaried
employees of TDS and U.S. Cellular.
U.S. Cellular also sponsors an Employee Stock Purchase Plan that permits eligible employees of
U.S. Cellular and its subsidiaries to purchase a limited number of U.S. Cellular Common Shares on a
quarterly basis. The per share cost to each participant is 85% of the market value of the Common
Shares as of the quarterly purchase date. Pursuant to SEC rules, the Summary Compensation Table
does not include the discount amount because such discount is available generally to all salaried
employees of U.S. Cellular.
Under the TDS and U.S. Cellular Employee Stock Purchase Plans, all shares purchased are
distributed quarterly and no shares are retained for distribution upon retirement or otherwise. These
plans do not discriminate in scope, terms, or operation in favor of executive officers and are available
generally to all employees of TDS or U.S. Cellular, as applicable, and benefits are not enhanced upon
any termination or change in control. Accordingly, no amounts are reported in the below table of
Potential Payments upon Termination or Change in Control.
Tax-Deferred Savings Plan
TDS sponsors the Tax-Deferred Savings Plan, a qualified defined contribution plan pursuant to
Sections 401(a) and 401(k) of the Internal Revenue Code. This plan is available to employees of TDS
and its subsidiaries, including U.S. Cellular. Employees contribute amounts and U.S. Cellular makes
matching contributions in part. U.S. Cellular and participating employers make matching contributions to
the plan in cash equal to 100% of an employee’s contributions up to the first 3% and 40% of an
employee’s contributions up to the next 2% of such employee’s compensation. Participating employees
have the option of investing their contributions and U.S. Cellular’s contributions in a TDS Common Share
fund, a TDS Special Common Share fund, a U.S. Cellular Common Share fund or certain unaffiliated
funds. The amount of the contribution with respect to the executives identified in the Summary
Compensation Table is included in column (i), ‘‘All Other Compensation,’’ of the Summary Compensation
Table. SEC rules do not require the Summary Compensation Table to include earnings or other amounts
with respect to tax-qualified defined contribution plans.
Under the TDS Tax-Deferred Savings Plan, vesting is not accelerated upon a change in control or
other termination event. The vested portion of an employee’s account becomes payable following the
employee’s termination of employment as (a) a lump sum or (b) in a series of annual or more frequent
installments. This plan does not discriminate in scope, terms, or operation in favor of executive officers
and is available generally to all employees, and benefits are not enhanced upon any termination or
change in control. Accordingly, no amounts are reported in the below table of Potential Payments upon
Termination or Change in Control.
Pension Plan
TDS sponsors a qualified noncontributory defined contribution Pension Plan for the employees of
TDS and its subsidiaries, including U.S. Cellular. Under this plan, pension costs are calculated separately
for each participant and are funded annually. The Pension Plan is designed to provide retirement benefits
for eligible employees of TDS and certain of its affiliates which adopted the Pension Plan. TDS and its
subsidiaries make annual employer contributions for each eligible participant based on the applicable
pension formula. The amount of the contribution with respect to the executives identified in the Summary
Compensation Table is included in column (i), ‘‘All Other Compensation,’’ of the Summary Compensation
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