Pier 1 2016 Annual Report Download - page 123

COMPENSATION
Normal retirement under the plan requires a participant’s attainment of age 65. A participant qualifies for early retirement if the
participant has at least 10 years of plan participation and retires at or after age 55 and before age 65. If a participant retires from Pier 1
Imports after age 55 but before age 65, the calculated benefit prior to adjustment for Social Security benefits is reduced by 5% for each
year that retirement precedes age 65. Mr. Smith is eligible for early retirement.
Refer to note 5 to the Pier 1 Imports, Inc. consolidated financial statements in Pier 1 Imports Annual Report on Form 10-K for the fiscal
year ended February 27, 2016, as filed with the SEC on April 26, 2016 (the “2016 Form 10-K”) for a discussion of the valuation method
and material assumptions applied in quantifying the present value of the current accrued benefit for the plan as shown above.
Non-Qualified Deferred Compensation Table for the Fiscal Year Ended
February 27, 2016
The following table shows the value as of the fiscal year ended February 27, 2016 of each NEO’s total benefit under the non-qualified
deferred compensation plans of Pier 1 Imports in which the executive participates. Pier 1 Imports’ non-qualified deferred compensation
plans are:
‰Pier 1 Benefit Restoration Plan II – The Pier 1 Benefit Restoration Plan II (“BRP II”) permitted select members of management and
highly compensated employees of Pier 1 Imports to defer compensation. Additionally, Pier 1 Imports recognized the value of the past
and present services of employees participating in the BRP II by making matching contributions to employee deferrals plus paying
interest on the deferral and match amounts. During fiscal 2011, BRP II was closed to further deferral elections by participants. The final
participant contributions and Pier 1 Imports matching contributions to BRP II were credited to the plan in fiscal 2012. Account
balances in BRP II will continue to earn interest at an annual rate equal to a daily average Moody’s Corporate Bond Index plus 1% until
the account balance is distributed to the participant.
‰Pier 1 Imports, Inc.Deferred Compensation Plan – Effective January 1, 2011, the Pier 1 Imports, Inc. Deferred Compensation Plan
(“DCP”) was adopted. The DCP permits select members of management and highly compensated employees of Pier 1 Imports to
defer up to 50% of their compensation (generally W-2 earnings). Participants’ compensation deferrals and earnings on those deferrals
are fully vested. No loans are permitted. Pier 1 Imports’ matching contribution is (i) 100% of the first one percent of the participant’s
compensation deferral, and (ii) 50% of the next four percent of the participant’s compensation deferral. Matching contributions and the
earnings on those contributions are subject to the same vesting requirements as Pier 1 Imports’ 401(k) retirement plan regardless of
whether the participant is actually participating in the 401(k) plan. The 401(k) plan’s vesting schedule is 20% per year of service (as
defined in the plan) beginning with two years of service. Participants are fully vested in Pier 1 Imports’ matching contributions plus
earnings at six years of service with Pier 1 Imports.
Pier 1 Imports may credit to any participant’s account an amount it determines in its sole and complete discretion. A participant is
vested in a discretionary contribution in accordance with a vesting schedule, which could be time-based, performance-based, or both,
as determined by Pier 1 Imports. If vesting is time-based, then no vesting can occur for a period of twelve months from the date the
discretionary contribution is credited to the participant’s account. If vesting is performance-based, then the performance period
cannot end on or before the date that is the six-month anniversary of the date the discretionary contribution is credited to the
participant’s account. Mr. Boyer received a time-based discretionary contribution on July 27, 2015, which vests in full after twelve (12)
months of continued employment.
Each participant may allocate their deferral amounts and Pier 1 Imports’ matching contributions and any discretionary contributions
among different deemed investment crediting options, which cover various asset classes. Participant accounts are credited with the
same earnings or losses as the deemed investment crediting options and are subject to the same investment risk as an actual
investment in the deemed investment crediting options. Subject to plan rules, participants may elect to have their deferral account
balance paid to them while employed or after separation from Pier 1 Imports; provided, however, that upon separation of employment,
any unpaid amounts elected to be paid while employed will be paid after separation of employment. Vested matching account
balances are distributed to participants only after separation from Pier 1 Imports.
PIER 1 IMPORTS, INC. | 2016 Proxy Statement 41