Neiman Marcus 2008 Annual Report Download - page 123

Table of Contents
Our obligations pursuant to our Pension Plan, SERP Plan and Postretirement Plan are as follows:
Pension Plan SERP Plan Postretirement Plan
Fiscal years Fiscal years Fiscal years
(in thousands) 2009 2008 2009 2008 2009 2008
Projected benefit obligations:
Beginning of year $ 354,229 $ 380,235 $ 77,566 $ 86,146 $ 20,336 $ 22,091
Service cost 6,057 10,815 689 1,254 92 124
Interest cost 24,361 22,866 5,312 4,960 1,343 1,356
Actuarial (gain) loss 55,554 (22,825 ) 11,001 (5,409 ) 665 (2,167
Curtailment — (26,113 ) — (7,091 ) —
Benefits paid, net (12,206 ) (10,749 ) (2,416 ) (2,294 ) (1,525 ) (1,068
Plan amendments — — — — (2,991 )
End of year $ 427,995 $ 354,229 $ 92,152 $ 77,566 $ 17,920 $ 20,336
Accumulated benefit obligations:
Beginning of year $ 336,016 $ 337,047 $ 68,253 $ 68,105
End of year $ 407,297 $ 336,016 $ 84,254 $ 68,253
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 2010 $ 13,421 $ 4,142 $ 927
Fiscal year 2011 14,903 4,482 1,015
Fiscal year 2012 16,634 4,799 1,072
Fiscal year 2013 18,523 5,210 1,124
Fiscal year 2014 20,413 5,690 1,141
Fiscal years 2015-2019 $ 130,562 $ 33,310 $ 6,159
Funding Policy and Plan Assets. Our policy is to fund the Pension Plan at or above the minimum required by law. We were
not required to make contributions to the Pension Plan during fiscal years 2009 and 2008; however, we made a voluntary $15.0
million contribution to our Pension Plan in both fiscal years 2009 and 2008. In fiscal year 2007, we made no contributions to our
Pension Plan. Based upon currently available information, we will not be required to make contributions to the Pension Plan during
fiscal year 2010. However, we will continue to evaluate voluntary contributions to our Pension Plan based upon the unfunded position
of the Pension Plan, our available liquidity and other factors.
Assets held by the Pension Plan are invested in accordance with the provisions of our approved investment policy. 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. The asset allocation for our Pension Plan at the end of fiscal years 2009 and
2008 and the target allocation for fiscal year 2010, by asset category, are as follows:
Pension Plan
Allocation at
July 31,
2009
Allocation at
July 31,
2008
2010
Target
Allocation
Equity securities 68 % 76 % 75 %
Fixed income securities 32 %24 %25 %
Total 100 %100 %100 %
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