Harris Teeter 2010 Annual Report Download - page 111

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Pension Benefits for 2010(1)
Name Plan Name
Number of Years
Credited Service
(#)
Present Value of
Accumulated Benefit
($)(2)
Payments During
Last Fiscal Year
($)
Thomas W. Dickson ........... Pension Plan 30 1,071,000 —
SERP 30 7,015,000 —
John B. Woodlief ............. Pension Plan 11 210,000 —
SERP 11 2,812,000 —
Frederick J. Morganthall, II . . . Pension Plan 24 750,000 —
SERP 24 5,471,000 —
Fred A. Jackson .............. Pension Plan 33 638,000 —
SERP 33 1,692,000 —
(1) For a discussion of the valuation methods and material assumptions applied in quantifying the present value
of the current accrued benefit under each of the Pension Plan and SERP, please refer to the note entitled
“Employee Benefit Plans” of the Consolidated Financial Statements included with the Company’s Annual
Report on Form 10-K for the year ended October 3, 2010.
(2) “Present Value of Accumulated Benefit” assumes the value of the benefit as of October 3, 2010 and assumes
that the NEO will wait to receive any benefit thereunder until the NEO would have attained an age where such
NEO would receive an unreduced benefit amount under such benefit plan.
Pension Plan. The Pension Plan is a tax-qualified defined benefit retirement plan for eligible employees.
Effective October 1, 2005 the Pension Plan was amended to limit participation in the Pension Plan to eligible
employees of the Company and its subsidiaries who were employed on September 30, 2005. All of the NEOs are
participants in the Pension Plan. Contributions to the Pension Plan are determined annually by the Retirement Plan
Committee, the named fiduciary, based upon an analysis and recommendation from actuarial consultants who
estimate the Plan’s total obligation to participants. For participants with age and service points as of December 31,
2005 equal to or greater than 45, their benefit accruals under the Plan after September 30, 2005 will be offset by
the actuarial equivalent of the portion of their account balance under the RRSP that is attributable to automatic
retirement contributions made by the Company after September 30, 2005, plus earnings and losses on such
contributions. All NEOs had 45 points or more as of December 31, 2005. A participant’s normal annual retirement
benefit under the Pension Plan at age 65 is an amount equal to 0.8% (0.6% for employees of American & Efird,
Inc.) of the participant’s final average earnings multiplied by years of service at retirement, plus 0.6% of the
participant’s final average earnings in excess of Social Security covered compensation multiplied by the number
of years of service up to a maximum of thirty-five years. A participant’s final average earnings is the average annual
cash compensation paid to the participant during the plan year, including salary, incentive compensation and any
amount contributed to the RRSP, for the five consecutive years in the last ten years that produce the highest average.
SERP. The Company also maintains the SERP. The SERP covers certain senior executive employees of the
Company and participating subsidiaries, including the NEOs, as designated by its administrative committee. Under
the SERP, participants who retire at normal retirement age (60) receive monthly retirement benefits equal to between
55% and 60% of the participant’s final average earnings times the participant’s accrual fraction and reduced by the
participant’s (1) assumed Pension Plan Retirement Benefit, (2) assumed Social Security Benefit and (3) assumed
profit sharing plan retirement benefit, if any. The final average earnings are the average annual earnings during the
highest 3 calendar years out of the last 10 calendar years preceding termination of employment for all executives
other than the executives of A&E for whom the final average earnings are the average of the 3 highest calendar
years earnings during their employment. The accrual fraction is a fraction, the numerator of which is the years of
credited service, the denominator of which is 20, and which may not exceed 1.0. The benefits payable under the
SERP are payable for the participant’s lifetime with an automatic 75% survivor benefit payable to the participant’s
surviving eligible spouse for his or her lifetime. Participants are eligible to receive an early retirement benefit upon
termination of employment, other than on account of death, after attaining age 55 and completing 10 years of
credited service. The amount of early retirement benefit is the monthly retirement benefit reduced by 0.4167% for
each month by which payment begins before normal retirement age.
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