Neiman Marcus 2012 Annual Report Download - page 71

Table of Contents
(other than those employed as salespersons) with an annual base salary at least equal to a minimum established by the Company were eligible to participate.
Similar to the Pension Plan, effective December 31, 2007, eligibility and benefit accruals under the SERP Plan were frozen for all participants except for those
“Rule of 65” employees who elected to continue participating in the Pension Plan. At normal retirement age (the later of age 65 and the fifth anniversary of the
participant’s date of hire), an eligible participant with 25 or more years of service is entitled to full benefits in the form of monthly payments under the SERP
Plan computed as a straight life annuity, equal to 50 percent of the participant’s average monthly compensation for the highest consecutive 60 months
preceding retirement less 60 percent of his or her estimated annual primary Social Security benefit, offset by the benefit accrued by the participant under the
Pension Plan. The amount is then adjusted actuarially to determine the actual monthly payments based on the time and form of payment. For this purpose,
“compensation” includes salary but does not include bonuses. If the participant has fewer than 25 years of service, the combined benefit is proportionately
reduced. Benefits under the SERP Plan become fully vested after five years of service. The SERP Plan is designed to comply with the requirements of
Section 409A of the Code. Along with the Pension Plan and the ESP, benefit accruals under the SERP Plan were frozen for the remaining “Rule of 65”
employees effective August 1, 2010 and those remaining participants were given the opportunity to participate in the DC SERP.
NONQUALIFIED DEFERRED COMPENSATION
The amounts reported in the table below represent deferrals and Company matching contributions credited pursuant to the KEDC Plan and
Company contributions credited pursuant to the DC SERP (the Executive Contributions).
Name
Executive
Contributions
in Last Fiscal
Year
($)(1)
Registrant
Contributions in
Last Fiscal Year
($)
Aggregate
Earnings
in Last Fiscal Year
($)
Aggregate
Withdrawals /
Distributions
($)
Aggregate
Balance at Last
Fiscal Year-
End
($)
Karen W. Katz KEDC 318,330 74,544 71,240 —2,198,342
DC SERP —516,399 29,901 — 1,081,053
James E. Skinner KEDC 88,741 36,894 24,242 —750,029
DC SERP —191,327 23,175 — 739,054
James J. Gold KEDC — — — — —
DC SERP —171,819 24,437 — 770,705
John E. Koryl KEDC — — — — —
DC SERP —4,240 4—4,244
Joshua G. Schulman KEDC — — — — —
DC SERP — — — — —
(1) The amounts reported as Executive Contributions in Last Fiscal Year are also included as Salary in the Summary Compensation Table beginning
on page 62.
The KEDC Plan allows eligible employees to elect to defer up to 15% of base pay and up to 15% of annual performance bonus each year. Eligible
employees generally are those employees who have completed one year of service with us, have annual base pay of at least $300,000 and are otherwise
designated as eligible by our employee benefits committee; provided, however, that effective January 1, 2008, only those persons who were eligible for the
KEDC as of January 1, 2007 are permitted to continue participating in the KEDC. No new participants will be added. We also credit a matching contribution
each pay period equal to (A) the sum of 1) 100% of the sum of the employee’s KEDC Plan deferrals and the maximum RSP deferral that the employee could
have made under such plan for such pay period, to the extent that such sum does not exceed 2% of the employee’s compensation for such pay period, and 2)
25% of the sum of the employee’s KEDC Plan deferrals and the maximum RSP, as applicable, deferral that the employee could have made under such plan
for such pay period, to the extent that such sum does not exceed the next 4% of the employee’s compensation for such pay period, minus (B) the maximum
possible match the employee could have received under the RSP, as applicable, for such pay period. Such amounts are credited to a bookkeeping account for
the employee and are fully vested with respect to matching contributions made for calendar years prior to 2008. Amounts attributable to matching
contributions, plus interest thereon, for calendar years on and after 2008 are subject to forfeiture in the event the employee is terminated for cause. Accounts
are credited monthly with interest at an annual rate equal to the prime interest rate published in The Wall Street Journal on the last business day of the
preceding calendar quarter. Amounts credited to an employee’s account become payable to the
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