Retirement FocusDeferred Compensation
The Committee believes it is important to use retirement programs that encourage ourCompany maintains the 2005 Schneider National, Inc. Supplemental Savings Plan, a deferred compensation plan for its named executive officersofficers. Under this plan, the officer may elect on an annual basis to continuedefer up to 90% of his or her salary and/or bonus. In addition, the plan provides for continuation of Company contributions in excess of that otherwise permitted under the qualified retirement plan. This plan assists key employees in planning for retirement. The Company pays interest equal to the rate on a treasury bill with 7 years remaining to maturity plus one percent, which was 1.69% for 2021 and is reset each December 1st. This plan is unfunded, and any amounts are considered a general liability of the Company.
Retirement, Health and Welfare Benefits
The Company provides benefits such as medical, dental, vision and life insurance, short-term and long-term careers with us. For example, our Company maintains adisability coverage, relocation benefits, and 401(k) and other retirement plan availableopportunities to ourall eligible employees, including ourthe named executive officers. The Company makespays for basic life insurance coverage up to $1,000,000 and long-term disability coverage up to $20,000 per month. In accordance with SEC rules, the value of these benefits is not included in the 2021 Summary Compensation Table, because they are available to all employees on a nondiscriminatory basis.
The Company matches employee contributions to the 401(k) plan up to a designated maximum amount and provides a discretionary retirement contributions,contribution dependent on years of service. In the case of the named executive officers and other highly compensated employees, the Company’s retirement contribution is made in cash and is taxable to the executive annually based on such executive’sin order to pass certain IRS nondiscrimination tests pertaining to the retirement plan. Further, the Company provides up to 18 months of post-retirement medical coverage to retirees who (i) are not employed by us as drivers at the time of retirement, (ii) have at least 20 years of service onwith the same basisCompany, (iii) retire after age 62 and (iv) are not entitled to Medicare. This benefit is in addition to the 18-month period required under the Consolidated Omnibus Budget Reconciliation Act of 1985 (known as “COBRA”) and is at the retiree’s sole cost.
The Company also provides vacation, sick leave and other employees.
Elements of 2020 Compensation
Total compensation forpaid holidays to employees, including the named executive officers, consists of one or more of the following components:
base salary;
cash-based annual incentive awards;
equity-based long-term incentive awards;
health and welfare benefits; and
limited perquisite benefits.
The Committee, with recommendations from management, works to create what it believes is the best mix of these components in delivering target TDC. In making its target TDC decisions annually, the Committee reviews all elements of target TDC separately and in the aggregate. These compensation componentswhich are comparable to those provided at other transportation companies. The Company’s commitment to provide employee benefits is due to our recognition that the health and well-being of our competitorsemployees contribute directly to a productive and peer group.successful work life that produces better results for the Company and for its employees.
Determining 2020 CompensationPersonal Benefits and Perquisites
We offer an annual executive physical benefit to our named executive officers and other direct reports to the CEO. In its reviewaddition to the cost of target TDC forthe physical itself, the benefit covers ordinary and necessary travel, meals and lodging in connection with the physical. Our CEO periodically uses the Company airplane to travel to the outside board meetings of a publicly traded company on whose board of directors he serves as an independent director. We also occasionally permit limited personal use of our Company airplane by our executive officers to reduce their travel time and allow them to devote more time to work duties or, with approval from our CEO, to respond to emergency or other urgent situations. We do not provide gross-up payments for any taxes owed by the executives in determining the amount and formconnection with any of incentive awards discussed below, the Committee generally considers several factors. Among these factors are:
market information with respect to cash and long-term compensation;
the officer’s current target TDC levels;
annual bonus and other compensation;
the officer’s responsibilities and performance during the calendar year; and
our overall performance during prior calendar years and our future objectives and challenges.
At transportation companies, generally the largest elementsbenefits. The aggregate incremental cost of executive compensation are paidthese benefits is reported in the form“All Other Compensation” column of short- and long-term incentives.the 2021 Summary Compensation mix and industry profitability vary as the industry faces many risk factors, such as those associated with the economy, safety and fuel prices.Table. We do not provide any other personal benefits or perquisites to our named executive officers.