First Data 2009 Annual Report Download - page 252

Chase Paymentech
NOTES TO COMBINED FINANCIAL STATEMENTS
For the years ended December 31, 2007 and 2006 and
the year ended December 31, 2005 (unaudited) (Continued)
objective for the Pension Plan is to earn long-term investment returns in excess of inflation and at least equal to
the actuarial discount rate used to calculate the Pension Plan’s liability. Contributions to and disbursements from
the fund are used to rebalance towards the target allocation to the extent practical.
Pension Plan assets included shares of a money market fund managed by JPMorgan Asset Management, a
subsidiary of JPMorgan Chase, with a fair value of $445 thousand and $819 thousand, representing 2% and 5%,
of total plan assets as of December 31, 2007 and 2006, respectively.
The Company expects to contribute approximately $8.0 million to the Pension Plan in 2008. As of
December 31, 2007, the future benefit payments expected to be paid by the Pension Plan and the SERP for each
of the following years are as follows (in thousands):
Pension Plan SERP
2008 ............................................ $ 1,945 $ 10
2009 ............................................ 2,215 19
2010 ............................................ 2,642 27
2011 ............................................ 2,820 34
2012 ............................................ 2,986 40
2013 through 2017 ................................. 18,627 297
$31,235 $427
Defined Contribution Plans
The Company provides a Retirement Savings Plan (Savings Plan) for its eligible U.S. employees. The
Savings Plan is a defined contribution plan under sections 401(a) and 401(k) of the Internal Revenue Code which
provides savings and investment opportunities. Pretax contributions of up to 6% of an eligible employee’s
defined compensation are matched 50% by the Company. Salaries and employee benefits included $3.0 million,
$2.2 million, and $1.7 million of expense relating to the Savings Plan on the combined statements of income and
comprehensive income for the years ended December 31, 2007, 2006, and 2005, respectively. Savings Plan
assets included 31 thousand and 39 thousand shares of JPMorgan common stock, representing 2% and 3%, of
plan assets as of December 31, 2007 and 2006, respectively.
The Company provides a Registered Retirement Savings Plan (Registered Savings Plan) for its eligible
Canadian employees. The Registered Savings Plan is a defined contribution plan which provides savings and
investment opportunities. Pretax contributions of up to 6% of an eligible employee’s defined compensation are
matched 50% by the Company. Salaries and employee benefits included $337 thousand, $300 thousand, and
$262 thousand of expense relating to the Registered Savings Plan on the combined statements of income and
comprehensive income for the years ended December 31, 2007, 2006, and 2005, respectively.
The Company provides a registered defined contributory pension plan for its eligible Canadian employees.
The net periodic expense included in salaries and employee benefits for this plan was $657 thousand, $536
thousand, and $457 thousand on the combined statements of income and comprehensive income for the years
ended December 31, 2007, 2006, and 2005, respectively.
Long-Term Incentive Plan
Certain employees of the Company are participants in a Long-Term Incentive Plan (LTIP), which provides
for cash awards, subject to certain vesting periods and adjustments based on the performance of JPMorgan Chase
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