Neiman Marcus 2006 Annual Report Download - page 133
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A summary of expected benefit payments related to our Pension Plan, SERP Plan and Postretirement Plan is as follows:
(in thousands)
Pension
Plan
SERP
Plan
Postretirement
Plan
Fiscal year 2008 $ 10,943 $ 2,951 $ 1,068
Fiscal year 2009 12,440 3,222 1,187
Fiscal year 2010 13,768 3,673 1,255
Fiscal year 2011 15,267 4,022 1,340
Fiscal year 2012 17,040 4,348 1,415
Fiscal years 2013-2017 $ 116,274 $ 30,557 $ 7,769
Funding Policy and Plan Assets. Our policy is to fund the Pension Plan at or above the minimum required by law. Based upon
currently available information, we will not be required to make significant contributions to the Pension Plan during fiscal year 2008.
In fiscal years 2007 and 2006, we made no contributions to our Pension Plan and in fiscal year 2005, we made a $20.0 million voluntary
contribution for the plan year ended July 31, 2004.
Assets held by the Pension Plan are invested in accordance with the provisions of our approved investment policy. The asset
allocation for our Pension Plan at the end of fiscal years 2007 and 2006 and the target allocation for fiscal year 2008, by asset category,
are as follows:
Pension Plan
Allocation
at July 31,
2007
Allocation at
July 31,
2006
2008
Target
Allocation
Equity securities 76% 73% 80 %
Fixed income securities 22% 24% 20 %
Cash and cash equivalents 2% 3% —
Total 100% 100% 100 %
The Pension Plan's strategic asset allocation was structured to reduce volatility through diversification and enhance return to
approximate the amounts and timing of the expected benefit payments.
Changes in the assets held by the Pension Plan in fiscal years 2007 and 2006 are as follows:
Fiscal years
(in thousands) 2007 2006
(Successor)
Fair value of assets at beginning of year $ 293,720 $ 288,267
Actual return on assets 42,802 13,976
Benefits paid (11,890 )(8,523 )
Fair value of assets at end of year $ 324,632 $ 293,720
Funded Status. The funded status of our Pension Plan, SERP Plan and Postretirement Plan is as follows:
Pension Plan SERP Plan Postretirement Plan
Fiscal years Fiscal years Fiscal years
(in thousands) 2007 2006 2007 2006 2007 2006
(Successor) (Successor) (Successor)
Projected benefit obligation $ 380,235 $ 364,720 $ 86,146 $ 78,322 $ 22,091 $ 12,975
Fair value of plan assets 324,632 293,720 — — —
Excess of projected benefit obligation over fair
value of plan assets (55,603 ) (71,000 ) (86,146 ) (78,322 ) (22,091 ) (12,975
Unrecognized net actuarial gain — (7,819 )— (2,036 )— (2,004
Accrued obligation $ (55,603 )$ (78,819 )$ (86,146 )$ (80,358 )$ (22,091 )$ (14,979