Kroger 2013 Annual Report Download - page 42

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PE N S I O N B E N E F I T S
The฀ following฀ table฀ provides฀ information฀ on฀ pension฀ benefits฀ as฀ of฀ 2013฀ year-end฀ for฀ the฀ named฀
executive officers.
2013 PENSION BENEFITS
Name Plan Name
Number
of Years
Credited
Service
(#)
Present
Value of
Accumulated
Benefit
($)
Payments
During
Last Fiscal
Year
($)
David฀B.฀Dillon The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan 18 $753,266 $0
The฀Kroger฀Co.฀Excess฀Benefit฀Plan 18 $9,736,250 $0
Dillon฀Companies,฀Inc.฀Excess฀Benefit฀Pension฀Plan 20 $8,211,305 $0
W.฀Rodney฀McMullen The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan 28 $802,528 $0
The฀Kroger฀Co.฀Excess฀Benefit฀Plan 28 $6,579,958 $0
J.฀Michael฀Schlotman The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan 28 $899,195 $0
The฀Kroger฀Co.฀Excess฀Benefit฀Plan 28 $3,760,659 $0
Paul฀W.฀Heldman The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan 31 $1,346,417 $0
The฀Kroger฀Co.฀Excess฀Benefit฀Plan 31 $6,867,111 $0
Michael฀L.฀Ellis The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan 39 $ 90,301 $0
The฀Kroger฀Co.฀Excess฀Benefit฀Plan 39 $71,317 $0
Messrs.฀Dillon,฀McMullen,฀Schlotman,฀Heldman฀and฀Ellis฀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,฀except฀for฀Mr.฀Ellis,฀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.฀ While฀ Mr.฀ Ellis฀ is฀ also฀ a฀ participant฀ in฀ the฀
Consolidated฀Plan,฀he฀is฀not฀a฀grandfathered฀participant,฀but฀is฀a฀participant฀in฀the฀cash฀balance฀formula.
Messrs.฀Dillon,฀McMullen,฀Schlotman,฀Heldman฀and฀Ellis฀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,฀except฀for฀Mr.฀Ellis,฀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.฀