Expected payments for the pension benefits are as follows:
Non-Qualified Supplemental Retirement Plan for Certain Key Employees
In fiscal year 1991, we adopted a non-qualified supplemental retirement plan for certain key employees. Benefits provided under the plan are equal to 60% of the employee’s final average earnings, less amounts provided by our defined benefit pension plan and amounts available through Social Security. Effective January 1, 1991 we adopted a deferred compensation savings plan for certain key employees. Under this arrangement, selected employees contribute a portion of their annual compensation to the plan. We contribute an amount to each participant’s account by computing an investment return equal to Moody’s Average Seasoned Bond Rate plus 2%. Employees receive vested amounts upon death, termination or attainment of retirement age. No benefit expense was recorded under these plans for fiscal years 2009 and 2008. Benefits payable related to these plans and included in other non-current liabilities in the accompanying financial statements were $3,394 and $3,541 at October 30, 2009 and October 31, 2008, respectively. In connection with this arrangement we are the beneficiary of life insurance policies on the lives of certain key employees and retirees. The aggregate cash surrender value of these policies, included in non-current assets, was $10,576 and $10,254 at October 30, 2009 and October 31, 2008, respectively.
Expected payments for other postretirement benefits are as follows:
Incentive Compensation Plan for Certain Key Executives
We provide an incentive compensation plan for certain key executives, which is based upon our pretax income. The payment of these amounts is generally deferred over three or five-year periods. The total amount payable related to this arrangement was $1,885 and $369 at October 30, 2009 and October 31, 2008, respectively. Future payments are approximately $661, $642, $470, $64 and $48 for fiscal years 2010 through 2014, respectively.
Postretirement Healthcare Benefits for Selected Executive Employees
We provide postretirement health care benefits for selected executive employees. Net periodic postretirement healthcare cost is determined using assumptions as of the beginning of each fiscal year, except for the total actual benefit payments and the discount rate used to develop the net periodic postretirement benefit expense.
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