Annual report pursuant to Section 13 and 15(d)

Other Benefit Plans

v2.4.0.8
Other Benefit Plans
12 Months Ended
Dec. 31, 2013
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Other Benefit Plans
We have a Retirement Savings Plan (the “401(k) Plan”), which permits all eligible employees to defer a portion of their compensation in accordance with the Internal Revenue Code. Under the 401(k) Plan, we may make discretionary contributions on behalf of eligible employees. For the three years ended December 31, 2013, we made contributions to the 401(k) plan as follows (in thousands):
 
Year Ended December 31,
 
2013
 
2012
 
2011
401(k) plan contributions
$
428

 
$
467

 
$
529



We have adopted non-qualified deferred compensation plans for the officers and members of the Board of Trustees. The plans allow for a deferral of a percentage of annual cash compensation and trustee fees. The plans are unfunded and payments are to be made out of the general assets of WRIT. The deferred compensation liability at December 31, 2013 and 2012 was as follows (in thousands):
 
December 31,
 
2013
 
2012
Deferred compensation liability
$
1,437

 
$
1,314



We established a Supplemental Executive Retirement Plan (“SERP”) effective July 1, 2002 for the benefit of a former CEO. Under this plan, upon the former CEO's termination of employment from WRIT for any reason other than death, permanent and total disability, or discharge for cause, he is entitled to receive an annual benefit equal to his accrued benefit times his vested interest. We accounted for this plan in accordance with ASC 715-30, whereby we accrued benefit cost in an amount that resulted in an accrued balance at the end of the former CEO's employment in June 2007 which was not less than the present value of the estimated benefit payments to be made. At December 31, 2013 and 2012, the accrued benefit liability was $1.3 million and $1.4 million, respectively. For the three years ended December 31, 2013, we recognized current service cost as follows (in thousands):
 
Year Ended December 31,
 
2013
 
2012
 
2011
Former CEO SERP current service cost
$
99

 
$
106

 
$
113


We currently have an investment in corporate owned life insurance intended to meet the SERP benefit liability since the former CEO's retirement. Benefit payments to the prior CEO began in 2008.

In November 2005, the Board of Trustees approved the establishment of a SERP for the benefit of the officers, other than the former CEO. This is a defined contribution plan under which, upon a participant's termination of employment from WRIT for any reason other than death, discharge for cause or total and permanent disability, the participant will be entitled to receive a benefit equal to the participant's accrued benefit times the participant's vested interest. We account for this plan in accordance with ASC 710-10 and ASC 320-10, whereby the investments are reported at fair value, and unrealized holding gains and losses are included in earnings. At December 31, 2013 and 2012, the accrued benefit liability was $3.3 million and $2.3 million, respectively. For the three years ended December 31, 2013, we recognized current service cost as follows (in thousands):
 
Year Ended December 31,
 
2013
 
2012
 
2011
Officer SERP current service cost
$
325

 
$
342

 
$
334