Kroger 2012 Annual Report Download - page 38

36
PE N S I O N B E N E F I T S
The following table provides information on pension benefits as of 2012 year-end for the named
executive officers.
2012 PENSION BENEFITS
Number
of Years
Credited
Service
Present
Value of
Accumulated
Benefit
Payments
During
Last Fiscal
Year
Name Plan Name (#) ($) ($)
David B. Dillon The Kroger Consolidated Retirement Benefit Plan 17 $ 756,583 $0
The Kroger Co. Excess Benefit Plan 17 $9,996,939 $0
Dillon Companies, Inc. Excess Benefit Pension Plan 20 $9,810,803 $0
J.฀Michael฀Schlotman The Kroger Consolidated Retirement Benefit Plan 27 $ 914,191 $0
The Kroger Co. Excess Benefit Plan 27 $3,844,299 $0
W.฀Rodney฀McMullen The Kroger Consolidated Retirement Benefit Plan 27 $ 836,023 $0
The Kroger Co. Excess Benefit Plan 27 $6,997,019 $0
Paul W. Heldman The Kroger Consolidated Retirement Benefit Plan 30 $1,343,141 $0
The Kroger Co. Excess Benefit Plan 30 $7,020,108 $0
Messrs.฀Dillon,฀Schlotman,฀McMullen฀and฀Heldman฀participate฀in฀The฀Kroger฀Consolidated฀Retirement฀
Benefit฀Plan฀(the฀“Consolidated฀Plan”),฀which฀is฀a฀qualified฀defined฀benefit฀pension฀plan.฀The฀Consolidated฀
Plan generally determines accrued benefits using a cash balance formula, but retains benefit formulas
applicable under prior plans for certain “grandfathered participants” who were employed by Kroger on
December 31, 2000. Each of the above listed named executive officers is eligible for these grandfathered
benefits under the Consolidated Plan. Their benefits, therefore, are determined using formulas applicable
under prior plans, including the Kroger formula covering service to The Kroger Co. and the Dillon Companies,
Inc. Pension Plan formula covering service to Dillon Companies, Inc.
Messrs.฀ Dillon,฀ Schlotman,฀ McMullen฀ and฀ Heldman฀ also฀ are฀ eligible฀ to฀ receive฀ benefits฀ under฀ The฀
Kroger฀Co.฀Excess฀Benefit฀Plan฀(the฀“Kroger฀Excess฀Plan”),฀and฀Mr.฀Dillon฀is฀also฀eligible฀to฀receive฀benefits฀
under฀the฀ Dillon฀Companies,฀Inc.฀Excess฀Benefit฀Pension฀Plan฀(the฀“Dillon฀Excess฀Plan”).฀ These฀plans฀ are฀
collectively referred to as the “Excess Plans.” The Excess Plans are each considered to be nonqualified deferred
compensation plans as defined in Section 409A of the Internal Revenue Code. The purpose of the Excess Plans
is฀to฀make฀up฀the฀shortfall฀in฀retirement฀benefits฀caused฀by฀the฀limitations฀on฀benefits฀to฀highly฀compensated฀
individuals under qualified plans in accordance with the Internal Revenue Code.
Each of the above listed named executive officers will receive benefits under the Consolidated Plan and
the฀Excess฀Plans,฀determined฀as฀follows:
•฀ 1½%฀times฀years฀of฀credited฀service฀multiplied฀by฀the฀average฀of฀the฀highest฀five฀years฀of฀total฀earnings฀
(base฀salary฀and฀annual฀bonus)฀during฀the฀last฀ten฀calendar฀years฀of฀employment,฀reduced฀by฀1¼%฀times฀
years of credited service multiplied by the primary social security benefit;
•฀ normal฀retirement฀age฀is฀65;
•฀ unreduced฀benefits฀are฀payable฀beginning฀at฀age฀62;฀and
•฀ benefits฀ payable฀ between฀ ages฀ 55฀ and฀ 62฀ will฀ be฀ reduced฀ by฀ ¹/3 of one percent for each of the first
24฀months฀and฀by฀½฀of฀one฀percent฀for฀each฀of฀the฀next฀60฀months฀by฀which฀the฀commencement฀of฀
benefits precedes age 62.