Moog Proxy - FY2022 - Host - Flipbook - Page 34
PENSION BENEFITS
U.S. Pension Benefits
The Company maintains the Moog Inc. Employees’ Retirement Plan (“ERP”), a tax-qualified defined benefit retirement plan. The
ERP is funded by employer contributions and currently all of the NEOs, except Mr. Roche, participate in the ERP.
Compensation used to determine the benefit accrual available to U.S. based executive officers under the qualified defined
benefit plan is limited to $290,000 for the plan year ended September 30, 2022.
The Internal Revenue Code limits the benefits that may be paid from tax-qualified defined benefit retirement plans and the
contributions that may be made to tax-qualified defined contribution retirement plans. The Company maintains supplemental
retirement plans for certain executive officers, including the NEOs, to bridge the gap between legally mandated limits on qualified
pension plan benefits and the retirement benefits offered at comparable public companies and to provide participants with
supplemental benefits. Each NEO participates in the Moog Inc. Plan to Equalize Retirement Income and Supplemental Executive
Retirement Plan (“PERI-SERP”), Mr. Trabert and Ms. Athoe also participate in the Moog Inc. Defined Contribution Supplemental
Executive Retirement Plan (“DC SERP”) and Mr. Roche also participates in the Moog Inc. Retirement Savings Restoration Plan
(“Restoration Plan”).
While the Company formally funds the ERP, the PERI-SERP, DC SERP and Restoration Plan are not formally funded. Rabbi
Trusts, however, were established under which certain funds have been set aside to satisfy some of the obligations under the
PERI-SERP, DC SERP and Restoration Plan. If the funds in the Rabbi Trusts are insufficient to pay amounts payable under
these plans, the Company will pay the difference.
Moog Inc. Employees' Retirement Plan
Under the ERP, benefits are generally payable monthly upon retirement to participating employees of the Company. These
benefits are based upon compensation and years of service and subject to limitations imposed by the Employee Retirement
Income Security Act of 1974 (“ERISA”) and the Internal Revenue Code. The ERP is administered by a Retirement Plan
Committee and covers all eligible employees with one year of service and a minimum of 1,000 hours of employment. New U.S.
based employees hired on or after January 1, 2008 are not eligible to participate in the ERP. New U.S. based employees hired
after that date are covered under a defined contribution plan.
Benefits payable under the ERP are determined on the basis of compensation and credited years of service. A participant’s
accrued benefit is equal to the sum of the participant’s prior service benefit, if any, and the participant’s future service benefit.
A participant is entitled to a prior service benefit if the participant was actively employed on or after January 1, 1998 (or retired as
of January 1, 1998) and was employed by the Company before October 1, 1990. The prior service benefit is 1.15% of the first
$20,000 of prior service compensation, plus 1.75% of prior service compensation in excess of $20,000, multiplied by the
participant’s prior service. “Prior service compensation” is the greater of (i) the participant’s basic annual rate of pay on
January 1, 1988, and (ii) the amount of the participant’s annual rate of pay plus overtime and shift differential received in the
calendar year ending December 31, 1989, not to exceed $150,000. “Prior service” is the number of years and completed months
of credited service with the Company through October 1, 1990.
A participant’s future service benefit is computed separately for each year of credited service beginning with October 1, 1990, or
the participant’s date of hire, if later, and is equal to 1.15% of the participant’s future service compensation not in excess of
$20,000, plus 1.75% of the participant’s future service compensation in excess of $20,000. In any event, after a participant is
credited with 35 years of combined prior service and future service, the participant’s benefit for each year of future service will be
1.75% of future service compensation. “Future service compensation” with respect to a plan year is the amount of basic annual
pay, plus any overtime or shift differential, a participant receives in the calendar year ending within that plan year. The maximum
dollar amount of future service compensation that may be used for ERP purposes is set by law and adjusted periodically. The
maximum dollar amount is $290,000 for the plan year ended September 30, 2022.
Any participant who entered the ERP before the 2002 plan year and retires with five years or more of service will receive a
minimum pension benefit. If the participant joined the ERP before October 1, 2002 and retires at age 65 with 15 or more years of
vesting service, the minimum pension benefit will be at least $2,400 per year. If the participant joined the ERP before October 1,
2002 and retires at age 65 with between 5 and 15 years of service, the minimum pension benefit will be a prorated portion of the
$2,400 per year minimum benefit.
A participant generally may retire and begin receiving ERP benefits at normal retirement age (age 65). A participant also may
retire and begin receiving plan benefits on the first day of any month coincident with or next following the participant’s 55th
birthday, but only if the participant has completed 15 years of vesting service. However, the amount of a participant’s monthly
ERP benefit will be discounted or reduced 0.5% for each month the early retirement benefit commences before normal
retirement age.
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