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. No benefit expense was recorded under these plans for fiscal years 2008 and 2007. Benefits payable related to these plans and included in other non-current liabilities in the accompanying financial statements were $3,541 and $3,692 at October 31, 2008 and November 2, 2007, 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 $10,254 and $11,181 at October 31, 2008 and November 2, 2007, 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. The payment of these amounts is generally deferred over a five-year period. The total amount payable related to this arrangement was $369 and $488 at October 31, 2008 and November 2, 2007, respectively. Future payments are approximately $129, $98, $79, $46 and $17 for fiscal years 2009 through 2013, respectively.
Postretirement Health Care Benefits for Selected Executive Employees
The Company provides postretirement health care benefits for selected executive employees. Net periodic postretirement benefit cost is determined using assumptions as of the beginning of each fiscal year.
Net periodic postretirement benefit cost consisted of the following:
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