Kroger 2014 Annual Report Download - page 43
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PE N S I O N B E N E F I T S
Thefollowingtableprovidesinformationregardingpensionbenefitsasofthelastdayoffiscal2014for
Messrs.McMullen,Schlotman,Ellis,DonnellyandDillon.Ms.Barclaydoesnotparticipateinadefinedbenefit
pension plan.
2014 PENSION BENEFITS TABLE
Name Plan Name
Number
of Years
Credited
Service
(#)
Present
Value of
Accumulated
Benefit
($)
Payments
During
Last Fiscal
Year
($)
(1)
W.RodneyMcMullen TheKrogerConsolidatedRetirementBenefitPlan 29 $ 1,122,749 —
TheKrogerCo.ExcessBenefitPlan 29 $ 9,686,214 —
J.MichaelSchlotman TheKrogerConsolidatedRetirementBenefitPlan 29 $ 1,202,046 —
TheKrogerCo.ExcessBenefitPlan 29 $ 5,380,629 —
MichaelL.Ellis TheKrogerConsolidatedRetirementBenefitPlan (2) $ 103,400 —
TheKrogerCo.ExcessBenefitPlan (2) $ 81,662 —
MichaelJ.Donnelly TheKrogerConsolidatedRetirementBenefitPlan 35 $ 168,844 —
TheKrogerCo.ExcessBenefitPlan 35 $ 2,999,752 —
DavidB.Dillon TheKrogerConsolidatedRetirementBenefitPlan 19 $ 893,750 —
TheKrogerCo.ExcessBenefitPlan 19 $11,913,067 —
DillonCompanies,Inc.ExcessBenefitPensionPlan 20 $ 5,629,722 —
(1) The discount rate used to determine the present values was 3.87%, which is the same rate used at
the measurement date for financial reporting purposes. Additional assumptions used in calculating the
presentvaluesaresetforthinNote15totheconsolidatedfinancialstatementsinKroger’s10-Kforfiscal
year2014endedJanuary31,2015.
(2) The benefits for cash balance participants, including Mr. Ellis, are not based on years of credited
service.Pleaseseethenarrativediscussionfollowingthistableforadescriptionofhowplanbenefits
are determined.
Messrs. McMullen, Schlotman, Ellis, Donnelly and Dillon participate in The Kroger Consolidated
Retirement BenefitPlan(the“Consolidated Plan”),which is a qualified defined benefitpensionplan. The
ConsolidatedPlangenerallydeterminesaccruedbenefitsusingacashbalanceformula,butretainsbenefit
formulasapplicableunderpriorplansforcertain“grandfatheredparticipants”whowereemployedbyKroger
onDecember31,2000.Eachoftheabovelistednamedexecutiveofficers,exceptforMr.Ellis,iseligiblefor
thesegrandfatheredbenefitsundertheConsolidatedPlan.Their benefits,therefore,aredeterminedusing
formulasapplicableunderpriorplans,includingtheKrogerformulacoveringservicetoTheKrogerCo.and
theDillonCompanies,Inc.formulacoveringservicetoDillonCompanies,Inc.Mr.Ellisisnotagrandfathered
participant,andtherefore,hisbenefitsaredeterminedusingthecashbalanceformula.
Messrs.McMullen,Schlotman,Ellis,DonnellyandDillonalsoareeligibletoreceivebenefitsunderThe
KrogerCo.ExcessBenefitPlan(the“KrogerExcessPlan”),andMr.Dillonalsoiseligibletoreceivebenefits
underthe Dillon Companies,Inc.ExcessBenefit PensionPlan (the“Dillon ExcessPlan”).These plans are
collectivelyreferredtoasthe“ExcessPlans.”TheExcessPlansareeachconsideredtobenonqualifieddeferred
compensationplansasdefinedinSection409AoftheInternalRevenueCode.ThepurposeoftheExcessPlans
istomakeuptheshortfallinretirementbenefitscausedbythelimitationsonbenefitstohighlycompensated
individualsunderthequalifieddefinedbenefitpensionplansinaccordancewiththeInternalRevenueCode.