TJ Maxx 1999 Annual Report Download - page 17

I . Pe n s io n Pla n s a n d O t h e r Re t ire m e n t B e n e f i t s
The Company has a non-contributory defined benefit retirement plan covering the majority of full-time U.S.
employees. Employees who have attained twenty-one years of age and have completed one year of service are
covered under the plan. Benefits are based on compensation earned in each year of service. The Company also
has an unfunded supplemental retirement plan which covers certain key employees of the Company and
provides additional retirement benefits based on average compensation and an unfunded postretirement medical
plan which provides limited postretirement medical and life insurance benefits to associates who participate in
the Company’s retirement plan and who retire at age fifty-five or older with ten or more years of service.
Presented below is certain financial information relating to the Company’s retirement plans for the fiscal years
indicated:
Pe n s i o n Po s t re t i r e m e n t M e d ica l
Fi scal Ye a r E n d e d Fisc a l Ye a r E n d e d
Ja n u a ry 2 9 , Ja n u a ry 3 0 , Ja n u a ry 2 9 , Ja n u a ry 3 0,
Do ll a rs I n Th o u s a n d s 2 0 0 0 1 9 9 9 2 0 0 0 1 9 9 9
C h a n g e in b e n e f it o bl i ga t i o n :
Benefit obligation at beginning of year $152,047 $127,148 $24,992 $21,172
Service cost 11,781 10,538 1,366 1,405
Interest cost 10,768 9,647 1,430 1,610
Participants’ contributions ––14 11
Actuarial (gains) losses (20,393) 11,027 (8,165) 1,712
Settlement (7,434) –––
Benefits paid (6,039) (5,497) (1,108) (918)
Expenses paid (720) (816) ––
Benefit obligation at end of year $140,010 $152,047 $18,529 $24,992
C h a n g e i n p l a n a s se t s:
Fair value of plan assets at beginning of year $123,191 $110,234 $ – $ –
Actual return on plan assets 15,024 8,164 ––
Employer contribution 8,735 11,106 1,094 907
Participants’ contributions ––14 11
Benefits paid (6,039) (5,497) (1,108) (918)
Expenses paid (720) (816) ––
Fair value of plan assets at end of year $140,191 $123,191 $ – $ –
R e co n cil ia t i o n o f f u n d e d st a t u s:
Benefit obligation at end of year $140,010 $152,047 $18,529 $24,992
Fair value of plan assets at end of year 140,191 123,191 ––
Funded status – excess (assets) obligations (181) 28,856 18,529 24,992
Unrecognized transition obligation 447 522 ––
Unrecognized prior service cost 685 773 1,278 1,616
Unrecognized actuarial (gains) losses (21,282) 4,909 (4,167) 3,997
Net accrued liability recognized $ 19,969 $ 22,652 $21,418 $19,379
W e ig h t e d a v e r a ge a ssu m p t io n s:
Discount rate 7.66% 6.63% 7.75% 6.75%
Expected return on plan assets 9.00% 9.00% N/A N/A
Rate of compensation increase 4.00% 4.00% 4.00% 4.00%
The projected benefit obligation and accumulated benefit obligation of the Company’s unfunded supplemental
retirement plan was $18.6 million and $14.3 million, respectively, as of January 29, 2000 and $26.2 million and
$20.1 million, respectively, as of January 30, 1999.