10. Benefit Plans

Employee Benefit Plans

The Company’s 401(k) plan covers all full-time U.S. employees beginning the first of the month following the month they begin their employment. Under this plan, employees may elect to contribute up to 15% of their current compensation to the 401(k) plan, up to the statutorily prescribed annual limit. The Company may make discretionary contributions to the 401(k) plan. The Company also contributes to various retirement plans for foreign employees.

The Company’s contributions to retirement plans were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
PCTEL, Inc. 401(k) Profit sharing Plan - US employees	$	154	$	140	$	503	$	434
Defined contribution plans - foreign employees		84		65		245		189

Total	$	238	$	205	$	748	$	623

Executive Deferred Compensation Plan

Through December 2013, the Company provided an Executive Deferred Compensation Plan (“EDCP”) for executive officers, senior managers and directors. Under the EDCP, the executives could select to defer up to 50% of salary and up to 100% of cash bonuses. In addition, the Company provided a 4% matching cash contribution which vests depending upon the number of completed years of participation in the EDCP. The Company funded the obligation related to the EDCP with corporate-owned life insurance policies. The executive had a choice of investment alternatives from a menu of mutual funds offered by the insurance company. In November 2012, the Company’s Board of Directors authorized the termination of the EDCP and on December 27, 2013, the plan was terminated. The funds at the life insurance company were remitted to the Company and subsequently invested by the Company to fund the obligation. Each participant will receive the value of his or her account in January 2015. Upon separation of employment earlier than January 2015, a participant will receive the value of his or her account in accordance with the provisions of the plan. Because the funds from the insurance company were received in January 2014, $1.9 million was included in prepaid assets and other receivables on the balance sheet at December 31, 2013. At September 30, 2014, the value of the Company’s investment account to fund EDCP obligations was $2.0 million, included in cash equivalents and short-term investments in the consolidated balance sheets. At September 30, 2014 and December 31, 2013, the deferred compensation obligation was $2.0 million and $1.9 million, included in accrued liabilities and long-term liabilities, respectively, in the consolidated balance sheets.