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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 1, 2014, March 2, 2013 and March 3, 2012
(In thousands, except per share amounts)
15. Retirement Plans (Continued)
the nonqualified executive retirement plan was $12,865 and $14,331 as of March 1, 2014 and March 2,
2013, respectively.
The significant actuarial assumptions used for all defined benefit plans to determine the benefit
obligation as of March 1, 2014, March 2, 2013 and March 3, 2012 were as follows:
Nonqualified
Defined Benefit Executive
Pension Plan Retirement Plan
2014 2013 2012 2014 2013 2012
Discount rate .................................... 4.50% 4.00% 4.50% 4.50% 4.00% 4.50%
Rate of increase in future compensation levels ............ 4.50% 4.50% 5.00% N/A N/A 3.00%
Weighted average assumptions used to determine net cost for the fiscal years ended March 1,
2014, March 2, 2013 and March 3, 2012 were:
Nonqualified
Defined Benefit Executive
Pension Plan Retirement Plan
2014 2013 2012 2014 2013 2012
Discount rate .................................... 4.00% 4.50% 5.50% 4.00% 4.50% 5.50%
Rate of increase in future compensation levels ............ 4.50% 5.00% 5.00% N/A N/A 3.00%
Expected long-term rate of return on plan assets .......... 7.75% 7.75% 7.75% N/A N/A N/A
To develop the expected long-term rate of return on assets assumption, the Company considered
the historical returns and the future expectations for returns for each asset class, as well as the target
asset allocation of the pension portfolio. This resulted in the selection of the 7.75% long-term rate of
return on plan assets assumption for fiscal 2014, 2013 and 2012.
The Company’s pension plan asset allocations at March 1, 2014 and March 2, 2013 by asset
category were as follows:
March 1, March 2,
2014 2013
Equity securities .................................... 62% 60%
Fixed income securities ............................... 38% 40%
Total ........................................... 100% 100%
The investment objectives of the Defined Benefit Pension Plan, the only defined benefit plan with
assets, are to:
• Achieve a rate of return on investments that exceeds inflation over a full market cycle and is
consistent with actuarial assumptions;
• Balance the correlation between assets and liabilities by diversifying the portfolio among various
asset classes to address return risk and interest rate risk;
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