duplicate benefits provided previously to participants under plans sponsored by Texas Instruments, and recognize prior service with Texas Instruments.
The benefits under the qualified benefit pension plan
(pension plan) are determined using a formula based upon years of service and the highest five consecutive years of compensation. Texas Instruments closed the pension plan to participants hired after November 1997. In addition,
participants eligible to retire under the Texas Instruments plan as of April 26, 2006 were given the option of continuing to participate in the pension plan. See the Pension Benefits section for more information on the benefits and
terms and conditions of our pension plan.
Supplemental Benefit Pension Plan. The Sensata Technologies Supplemental Benefit Pension Plan is a nonqualified benefit payable to participants that represents the difference between the vested benefit actually payable under the
Sensata Technologies Employees Pension Plan at the time the participants benefit payment(s) commences under this Supplemental Benefit Pension Plan and the vested benefit that would be payable under the Sensata Technologies Employees Pension
Plan had there been no qualified compensation limit.
401(k) Savings Plans. The Named Executive Officers are eligible to participate in these plans on the same basis as all other eligible employees. The type of plan in which a person participates depends on his or her previous
employment with Texas Instruments and whether the individual participates in the Texas Instruments Pension Plan or the Sensata Technologies Employees Pension Plan. Beginning in 2009, the matching of employees contributions under both 401(k)
Savings Plans is discretionary and based on the financial performance of the Company.
Plan A: Dollar for Dollar Matching
For new employees, we match dollar for dollar up to 4% of the employees contribution. Mr. Wroe, Mr. Cote and Mr. Carter are
participants in this plan.
For employees who chose in 1998 to stop participation in the Texas Instruments Pension Plan, we match dollar for dollar up to 4% of the employees
contributions. For these employees, in addition to matching the employees contributions up to 4%, we also contribute 2% of the employees eligible earnings to the plan.
Plan B: Fifty Cents per Dollar Matching
For employees who transferred to the Sensata Technologies Employees Pension Plan from the Texas Instruments Pension Plan (but did not retire under), we
match $0.50 per $1.00 contributed by the employee, up to 4% of the employees contribution. These employees participate in the Sensata Technologies Employees Pension Plan. Ms. Sullivan, Mr. Major and Mr. Dane are participants in
In 2009, based on
the judgment of our Chief Executive Officer, the board of directors and the compensation committee regarding our financial performance, we matched the contributions by employees on a dollar-for-dollar basis to our U.S. 401(k) Savings Plans as
described above. The decision to match was based on the achievement of Adjusted EBITDA of $325.1 million in 2009 compared to $348.4 million in 2008. The decrease in Adjusted EBITDA of 6.7% was considered a significant accomplishment in light of a
corresponding decline in net revenue of 25.4% over the same time period as a result of the overall global recessionary environment that continued throughout 2009.
Health and Welfare Plans. We provide medical, dental, vision, life insurance and disability benefits to
all eligible non-contractual employees. The Named Executive Officers are eligible to participate in these benefits on the same basis as all other employees.
Post-Employment Medical Plan. In general, employees, including executive officers, with 20 or more years of service, including time
worked at Texas Instruments, are eligible for Retiree Health & Dental benefits from us.