TCF Bank 2015 Annual Report Download - page 101

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86
Note 16. Employee Benefit Plans
Employees Stock Purchase Plan The TCF Employees Stock Purchase Plan (the "ESPP"), 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 3.0%
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 ten or more years of service up to a maximum company contribution of 6.0% 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. Effective January 1, 2016, TCF will match the
contributions of all participants with TCF common stock at the rate of $1 per dollar for employees with one or more
years of service up to a maximum company contribution of 5.0% of the employee's covered compensation subject to
the annual covered compensation limitation imposed by the IRS. Matching contributions made after January 1, 2016
will vest immediately. 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, 2015, the fair value of the assets in
the ESPP totaled $238.0 million and included $124.7 million invested in TCF common stock. Dividends on TCF common
shares held in the ESPP reduce retained earnings and the shares are considered outstanding for computing earnings
per share. The Company's matching contributions are expensed when made. TCF's contributions to the ESPP were
$10.6 million in 2015, $9.6 million in 2014 and $8.9 million in 2013.
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 eligible 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 participants' 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 arise. TCF closely
monitors all assumptions and updates them annually. The Company 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 Postretirement 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.