Sears 2014 Annual Report Download - page 90

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
90
Expenses for retirement and savings-related benefit plans were as follows:
millions 2014 2013 2012
Retirement/401(k) Savings Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4 $ 8 $ 10
Pension plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 176 630
Postretirement benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 18 24
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95 $ 202 $ 664
Retirement Savings Plans
Holdings sponsors retirement savings plans for employees meeting service eligibility requirements. The
Company does not match employee contributions.
Other Benefit Plans
Certain domestic full-time and part-time employees of Kmart and Sears are eligible to participate in
noncontributory defined benefit plans after meeting age and service requirements. Effective January 31, 1996 and
January 1, 2006, respectively, the Kmart tax-qualified defined benefit pension plan and the Sears domestic pension
plans were frozen and domestic associates no longer earn additional benefits under the plan. The Kmart tax-qualified
defined benefit pension plan was merged with and into the Sears domestic pension plan effective as of January 30,
2008. The merged plan was renamed as the Sears Holdings Pension Plan ("SHC Domestic plan") and Holdings
accepted sponsorship of the SHC Domestic plan effective as of that date.
Substantially all full-time Canadian employees, as well as some part-time employees, are eligible to
participate in contributory defined benefit plans. Effective July 1, 2008, the Sears Canada defined pension plan was
amended and a defined contribution component was added. The defined benefit service accrual ceased and all plan
members earn pensionable service under the defined contribution component of the Sears Canada Inc. Registered
Retirement Plan. Sears Canada, including its defined benefit obligations, was de-consolidated on October 16, 2014
as discussed in Note 2.
Pension benefits are based on length of service, compensation and, in certain plans, social security or other
benefits. Funding for the various plans is determined using various actuarial cost methods.
In addition to providing pension benefits, Sears provides domestic and Canadian employees and retirees
certain medical benefits. These benefits provide access to medical plans, with Company subsidies for certain eligible
retirees. Certain domestic Sears retirees are also provided life insurance benefits. To the extent we share the cost of
the retiree medical benefits with retirees, such cost sharing is based on years of service and year of retirement. Sears'
postretirement benefit plans are not funded. We have the right to modify or terminate these plans.
Effective December 31, 2014, the Company amended its retiree medical plan to eliminate Company subsidies
to the plan. This resulted in a reduction to the post retirement benefit obligation of $48 million.