Hertz 2015 Annual Report Download - page 121

Table of Contents
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Some of its international subsidiaries have defined benefit retirement plans or participate in various insured or multiemployer plans. In certain
countries, when the subsidiaries make the required funding payments, they have no further obligations under such plans. Company plans are
generally funded, except for certain nonqualified U.S. defined benefit plans and in Germany and France, where unfunded liabilities are recorded.
The Company also sponsors defined contribution plans for certain eligible U.S. and non-U.S. employees, where contributions are matched based
on specific guidelines in the plans.
Effective December 31, 2014, the Company amended the Hertz Retirement Plan to permanently discontinue future benefit accruals and
participation under the plan for non-union employees. Compensation credits will no longer be provided under the Hertz Retirement Plan after 2014
for affected participants. Interest credits will continue to be credited on existing participant account balances under the plan until benefits are
distributed and service will continue to be recognized for vesting and retirement eligibility requirements.
In connection with the freezing of the Hertz Retirement Plan, the Company plans to increase employer contributions under the Company’s qualified
401(k) savings plan (the “401(k) Plan”). Effective January 1, 2015, eligible participants under the 401(k) Plan will receive a matching employer
contribution to their 401(k) Plan account equal to (i) 100% of the first 3% of employee contributions made by such participant and (ii) 50% of the
next 2% of employee contributions, with the total amount of such matching employer contribution to be completely vested, subject to applicable
limits under the United States Internal Revenue Code. Certain eligible participants under the 401(k) Plan will also receive additional employer
contribution amounts to their 401(k) Plan account depending on their years of service and age. The Company reserves the right to change its
benefit offerings, at any time, at its discretion.
On October 22, 2014, the Company amended two non-qualified, unfunded pension plans. These two plans are The Hertz Corporation Benefit
Equalization Plan (“BEP”) and The Hertz Corporation Supplemental Executive Retirement Plan ("SERP II”). Effective as of December 31, 2014,
the Company permanently discontinued future benefit accruals and participation under the BEP and the SERP II. Service will continue to be
recognized for vesting and retirement eligibility requirements under the BEP and SERP II.
Effective January 1, 2014, the Hertz Retirement Plan was amended to provide a maximum annual compensation credit equal to 5% of eligible
compensation paid to all plan members who are hired or rehired before January 1, 2014, unless as of December 31, 2013 the member has at least
120 months of continuous service, in which case the member continues with an annual credit of 6.5%. All Hertz employees who are hired on or
after January 1, 2014 and Dollar Thrifty employees who become plan members on or after January 1, 2014 were eligible for a flat 3% annual
compensation credit, regardless of the member's number of months of continuous service.
The Company also sponsors postretirement health care and life insurance benefits for a limited number of employees with hire dates prior to
January 1, 1990. The postretirement health care plan is contributory with participants' contributions adjusted annually. An unfunded liability is
recorded. The Company also has a key officer postretirement car benefit plan that provides the use of a vehicle for retired Executive Vice
Presidents and above who have a minimum of 20 years of service and who retired at age 58 or above. The assigned car benefit is available for 15
years postretirement or until the participant reaches the age of 80, whichever occurs last.
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except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.