Expected payments for the pension benefits are as follows:
Net amounts recognized as of the end of each fiscal year are as follows:
Non-Qualified Supplemental Retirement Plan for Certain Key Employees
In fiscal year 1991, the Company 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 the Company’s defined benefit pension plan and amounts available through Social Security. Effective January 1, 1991 the Company 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. The Company contributes 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. Total benefit expense recorded under these plans for fiscal years 2006, 2005 and 2004 was $0, $9, and $0, respectively. Benefits payable related to these plans and included in other non-current liabilities in the accompanying financial statements were $3,929 and $4,042 at November 3, 2006 and October 28, 2005, respectively. In connection with this arrangement the Company is the beneficiary of life insurance policies on the lives of certain key employees. The aggregate cash surrender value of these policies, included in non-current assets, was $10,561 and $10,142 at November 3, 2006 and October 28, 2005, respectively.
Incentive Compensation Plan for Certain Key Executives
The Company provides an incentive compensation plan for certain key executives, which is based upon the Company’s pretax income and return on shareholders’ equity. The payment of these amounts is generally deferred over a five-year period. The total amount payable related to this arrangement was $557 and $809 at November 3, 2006 and October 28, 2005, respectively. Future payments are approximately $217, $173, $82, $52 and $32 for fiscal years 2007 through 2011, respectively.
Postretirement Health Care Benefits for Selected Executive Employees
The Company provides postretirement health care benefits for selected executive employees. The approximate amounts for postretirement health care benefits are $513 and $439 are included in non-current liabilities at November 3, 2006 and October 28, 2005, respectively. On January 12, 2004, the Financial Accounting Standards Board issued a Staff Position which allows employers to recognize or defer the effect of the new Medicare Act on their financial statements. The Company has deferred the recognition of the subsidy and will reflect it in future OPEB calculations.
Net periodic postretirement benefit cost consisted of the following: