Neiman Marcus 2007 Annual Report Download - page 67

Table of Contents
PENSION BENEFITS
The following table sets forth certain information with respect to retirement payments and benefits under the Retirement Plan
and the SERP for each of our named executive officers.
Name Plan Name
Number of Years
Credited Service
(#)(1)
Present Value
of Accumulated
Benefit
($)(2)
Payments During
Last
Fiscal Year
($)
Burton M. Tansky Retirement Plan 18 393,000 —
SERP 30(3) 7,147,000 —
Karen W. Katz Retirement Plan 23 181,000 —
SERP 23(4) 1,318,000 —
James E. Skinner Retirement Plan 7(5) 87,000 —
SERP 7(5) 273,000 —
Brendan L. Hoffman Retirement Plan 9(5) 43,000 —
SERP 9(5) 64,000 —
James J. Gold Retirement Plan 17(5) 74,000 —
SERP 17(5) 203,000 —
Footnotes:
(1) Computed as of August 2, 2008, which is the same pension measurement date used for financial statement reporting purposes
with respect to our audited consolidated financial statements and notes thereto.
(2) For purposes of calculating the amounts in this column, retirement age was assumed to be the normal retirement age of 65, as
defined in the Retirement Plan. A description of the valuation method and all material assumptions applied in quantifying the
present value of accumulated benefit is set forth in Note 13 to the audited consolidated financial statements on page F-32 of this
Annual Report on Form 10-K.
(3) The difference in years of service is a result of the provision in Mr. Tansky's employment agreement relating to the calculation
of his years of service under the SERP. Following his termination of employment with us, his years of service for purposes of
calculating his benefit under the SERP will be determined by multiplying his actual service for purposes of the SERP by 2,
subject to the 25-year maximum set forth in the SERP, and by then providing him with an additional credit for each year of
service to the Company following his attainment of age sixty-five (65) (disregarding the 25-year maximum set forth in the
SERP). The value of Mr. Tansky's actual years of service under the SERP is $3,975,000. See the discussion of his employment
agreement under "Employment and Other Compensation Agreements" on page 64 of this section.
(4) Pursuant to the terms of Karen Katz's employment agreement, after she has reached the 25-year maximum set forth in the
SERP, she will be entitled to an additional one year of credit for each full year of service thereafter. In addition, if her
employment is terminated by us for any reason other than death, disability, cause, or for non-renewal of her employment term,
or if she terminates her employment with us for good reason, and she has not yet reached 65, her SERP benefit will not be
reduced solely by reason of her failure to reach 65 as of the termination date.
(5) Effective December 31, 2007, benefit accruals for Messrs. Skinner, Hoffman, and Gold under the Retirement Plan and the
SERP were frozen, as further described below.
The Retirement Plan is a funded, tax-qualified pension plan. Prior to 2008, most non-union employees over age 21 who had
completed one year of service with 1,000 or more hours were eligible to participate in the Retirement Plan, which paid benefits upon
retirement or termination of employment. Effective as of December 31, 2007, eligibility and benefit accruals under the Retirement
Plan were frozen for all participants except for those "Rule of 65" employees who elected to continue participating in the Retirement
Plan. "Rule of 65" employees included only those active employees who had completed at least 10 years of service and whose
combined years of service and age equaled at least 65 as of December 2007. The Retirement Plan is a "career-accumulation" plan,
under which a participant earns each year a retirement annuity equal to one percent of his or her compensation for the year up to the
Social Security wage base and 1.5 percent of his or her compensation for the year in excess of such wage base. Benefits under the
Retirement Plan become fully vested after five years of service with us.
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