Dillard's 2015 Annual Report Download - page 61

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F-19
8. Benefit Plans
The Company has a retirement plan with a 401(k)-salary deferral feature for eligible employees. Under the terms of the
plan, eligible employees could contribute up to the lesser of $18,000 ($24,000 if at least 50 years of age) or 75% of eligible pay.
Eligible employees with 1 year of service, who elect to participate in the plan or are auto-enrolled, receive a Company
matching contribution. Company matching contributions are calculated on the eligible employee's first 6% of elective deferrals
with the first 1% being matched 100% and the next 5% being matched 50%. The Company matching contributions are used to
purchase Class A Common Stock of the Company for the benefit of the employee. This stock may be immediately diversified
into any of the other funds within the plan at the election of the employee. The terms of the plan provide a two-year vesting
schedule for the Company matching contribution portion of the plan.
The Company incurred benefit plan expense of approximately $18 million for each of fiscal 2015, 2014 and 2013.
The Company has an unfunded, nonqualified defined benefit plan ("Pension Plan") for its officers. The Pension Plan is
noncontributory and provides benefits based on years of service and compensation during employment. Pension expense is
determined using an actuarial cost method to estimate the total benefits ultimately payable to officers and allocates this cost to
service periods. The actuarial assumptions used to calculate pension costs are reviewed annually. Net periodic benefit costs are
included in selling, general and administrative expenses.