NOTE 10.
EMPLOYEE
BENEFITS
COOPER’S
RETIREMENT INCOME
PLAN
Cooper’s Retirement Income Plan (the “Plan”) covers substantially
all full-time United States employees. Cooper’s contributions
are designed to fund normal cost on a current basis
and to fund over 30 years the estimated prior service cost of
benefit improvements (15 years for annual gains and losses).
The unit credit actuarial cost method is used to determine the
annual cost. Cooper pays the entire cost of the Plan and
funds such costs as they accrue. Virtually all of the assets of
the Plan are comprised of participation in equity and fixed
income funds.
Net periodic pension cost of the Plan was:
| (IN THOUSANDS) |
2
0 0 0 |
1
9 9 9 |
1
9 9 8 |
 |
| Change in benefit obligation
November 1 to October 31 |
|
Projected benefit obligation
at beginning of year |
$ |
11,281 |
$ |
10,465 |
$ |
8,957 |
| Service cost |
|
664 |
649 |
398 |
| Interest cost |
|
830 |
763 |
664 |
| Benefits paid |
|
(445) |
(410) |
(381) |
| Actuarial (gain)/loss |
|
- |
(186) |
827 |
|
|
| Projected benefit obligation at
end of year |
$ |
12,330 |
$ |
11,281 |
$ |
10,465 |
|
|
Change in plan assets November 1 to October 31 |
|
| Fair value of plan assets at beginning
of year |
$ |
9,628 |
$ |
8,824 |
$ |
9,012 |
| Actual return on plan assets |
1,004 |
1,214 |
142 |
| Employer contributions |
886 |
- |
51 |
| Benefits paid |
(445) |
(410) |
(381) |
|
|
| Fair value of plan assets at end
of year |
$ |
11,073 |
$ |
9,628 |
$ |
8,824 |
|
|
Funded status |
$ |
(1,257) |
$ |
(1,653) |
$ |
(1,641) |
| Unrecognized transition amount |
311 |
336 |
362 |
| Unrecognized prior service cost |
428 |
458 |
(26) |
| Unrecognized net (gain)/loss |
(827) |
(675) |
401 |
|
|
| Accrued pension liability |
$ |
(1,345) |
$ |
(1,534) |
$ |
(904) |
|
|
Reconciliation of accrued pension liability |
|
| Accrued cost at November 1 |
$ |
(1,534) |
$ |
(904) |
$ |
(663) |
| Net periodic pension cost for year |
(697) |
(630) |
(292) |
| Contributions made during year |
886 |
- |
51 |
|
|
| Accrued cost at October 31 |
$ |
(1,345) |
$ |
(1,534) |
$ |
(904) |
|
|
Actuarial assumptions |
|
| Discount rate |
7.5% |
7.5% |
7.0% |
| Expected return on assets |
9.0% |
9.0% |
9.0% |
| Average compensation increase |
4.0% |
4.0% |
4.0% |
| Cost of living |
3.5% |
3.5% |
3.5% |
Net periodic pension costs |
|
| Service cost |
$ |
664 |
$ |
649 |
$ |
398 |
| Interest cost |
830 |
763 |
664 |
| Asset return |
(1,004) |
(1,214) |
(142) |
| Amortization |
|
| Net transition obligations |
25 |
26 |
26 |
| Prior service cost |
30 |
30 |
(3) |
| Gain/(loss) |
152 |
376 |
(651) |
|
|
| Net periodic pension cost total |
$ |
697 |
$ |
630 |
$ |
292 |
COOPER’S
401(K) SAVINGS
PLAN
Cooper’s 401(k) Savings Plan provides for the deferral of
compensation as described in the Internal Revenue Code and
is available to substantially all full-time United States employees
of Cooper. Employees who participate in the 401(k) Plan
may elect to have from 1% to 16% of their pre-tax salary or
wages deferred and contributed to the trust established under
the Plan. Cooper’s contribution on account of participating
employees, net of forfeiture credits, was $627,000, $333,000
and $396,000 for the years ended October 31, 2000, 1999
and 1998, respectively.
COOPER’S
INCENTIVE PAYMENT PLAN
Cooper’s Incentive Payment Plan is available to officers and
other key executives. Participants may, in certain years,
receive bonuses based on performance. Total bonuses earned
for the years ended October 31, 2000, 1999 and 1998, were
approximately $1.7 million, $1.4 million and $851,000,
respectively.
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