Health Net 2013 Annual Report Download - page 146

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-42
contributions based on matching or other formulas. Our expense under these plans totaled $16.0 million, $16.4 million
and $16.8 million for the years ended December 31, 2013, 2012 and 2011, respectively, and is included in general and
administrative expense in our consolidated statements of operations.
Deferred Compensation Plans
We have a voluntary deferred compensation plan pursuant to which certain management and highly compensated
employees are eligible to defer a certain portion of their regular compensation and bonuses (the "Employee Plan"). In
addition, we have a voluntary deferred compensation plan pursuant to which the non-employee members of the Health
Net, Inc. Board of Directors are eligible to defer a certain portion of their meeting fees and other cash remuneration (the
"BOD Plan"). The compensation deferred under these plans is credited with earnings or losses measured by the
mirrored rate of return on investments elected by plan participants. These plans are unfunded. Each plan participant is
fully vested in all deferred compensation and earnings credited to his or her account. The BOD Plan was amended and
restated effective December 31, 2009 and the Employee Plan was amended and restated effective January 1, 2010. The
plans were amended effective November 18, 2013.
As of December 31, 2013 and 2012, the liability under these plans amounted to $52.0 million and $49.6 million,
respectively. These liabilities are included in other noncurrent liabilities on our consolidated balance sheets. Deferred
compensation expense is recognized for the amount of earnings or losses credited to participant accounts. Our expense
under these plans totaled $2.8 million, $4.2 million and $0.7 million for the years ended December 31, 2013, 2012 and
2011, respectively, and is included in general and administrative expense in our consolidated statements of operations.
Pension and Other Postretirement Benefit Plans
Pension Plans—We have an unfunded non-qualified defined benefit pension plan, the Supplemental Executive
Retirement Plan. The plan was amended and restated effective January 2008 to comply with Section 409A of the Code.
This plan is noncontributory and covers key executives as selected by our Board of Directors. Benefits under the plan
are based on years of service and level of compensation during the final five years of service.
Postretirement Health and Life Plans—Certain of our subsidiaries sponsor postretirement defined benefit health
care and life insurance plans that provide postretirement medical and life insurance benefits to directors, key executives,
employees and dependents who meet certain eligibility requirements. The Health Net of California Retiree Medical and
Life Benefits Plan is non-contributory for employees retired prior to December 1, 1995 who have attained the age of 62;
employees retiring after December 1, 1995 who have attained age 62 contribute from 25% to 100% of the cost of
coverage depending upon years of service. The plan was amended in 2008 to vest benefits for eligible associates who
were terminated in connection with the Company’s operations strategy. We have two other benefit plans that we have
acquired as part of acquisitions made in 1997. One of the plans is frozen and non-contributory, whereas the other plan is
contributory by certain participants. Under these plans, we pay a percentage of the costs of medical, dental and vision
benefits during retirement. The plans include certain cost-sharing features such as deductibles, co-insurance and
maximum annual benefit amounts that vary based principally on years of credited service.