TCF Bank 2011 Annual Report Download - page 103

Note 17. Employee Benefit Plans
Employees Stock Purchase Plan The TCF Employees
Stock Purchase Plan, a qualified 401(K) and employee
stock ownership plan, generally allows participants to make
contributions of up to 50% of their covered compensation
on a tax-deferred basis, subject to the annual covered
compensation limitation imposed by the Internal Revenue
Service (“IRS”). TCF matches the contributions of all
participants with TCF common stock at the rate of 50
cents per dollar for employees with one through four
years of service, up to a maximum company contribution
of 3% of the employee’s covered compensation, 75 cents
per dollar for employees with five through nine years of
service, up to a maximum company contribution of 4.5% of
the employee’s covered compensation, and $1 per dollar
for employees with 10 or more years of service, up to a
maximum company contribution of 6% of the employee’s
covered compensation, subject to the annual covered
compensation limitation imposed by the IRS. Employee
contributions vest immediately while the Company’s
matching contributions are subject to a graduated vesting
schedule based on an employee’s years of service with full
vesting after five years. Employees have the opportunity
to diversify and invest their account balance, including
matching contributions, in various mutual funds or TCF
common stock. At December 31, 2011, the fair value of
the assets in the plan totaled $138.9 million and included
$84 million invested in TCF common stock. The Company’s
matching contributions are expensed when made. TCF’s
contributions to the plan were $7.6 million in 2011 and
$6.9 million in both 2010 and 2009.
Pension Plan The TCF Cash Balance Pension Plan (the
“Pension Plan”) is a qualified defined benefit plan covering
eligible employees who are at least 21 years old and have
completed a year of eligibility service with TCF. Employees
hired after June 30, 2004 are not eligible to participate in
the Pension Plan. Effective March 31, 2006, TCF amended
the Pension Plan to discontinue compensation credits
for all participants. Interest credits will continue to be
paid until participants’ accounts are distributed from the
Pension Plan. Each month TCF credits participant accounts
with interest on the account balance based on the five-
year Treasury rate plus 25 basis points determined at the
beginning of each year. All participant accounts are vested.
The measurement of the projected benefit obligation,
prepaid pension asset, pension liability and annual pension
expense involves complex actuarial valuation methods and
the use of actuarial and economic assumptions. Due to the
long-term nature of the pension plan obligation, actual
results may differ significantly from the actuarial-based
estimates. Differences between estimates and actual
experience are recorded in the year they occur. TCF closely
monitors all assumptions and updates them annually. TCF
does not consolidate the assets and liabilities associated
with the Pension Plan.
Postretirement Plan TCF provides health care benefits
for eligible retired employees (the “Postretirement Plan”).
Effective January 1, 2000, TCF modified the Postretirement
Plan for employees not yet eligible for benefits under the
Postretirement Plan by eliminating the Company subsidy.
The plan provisions for full-time and retired employees then
eligible for these benefits were not changed. Employees
retiring after December 31, 2009 are no longer eligible to
participate in the Postretirement Plan. The Postretirement
Plan is not funded.
852011 Form 10-K