Big Lots 2007 Annual Report Download - page 49

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Normally, a participant will receive a monthly payment from the Pension Plan and/or, if the participant was a highly
compensated employee during his or her service period, the Supplemental Pension Plan upon reaching the normal age of
retirement (or earlier if the participant elects the early retirement option). Alternatively, a participant can elect to receive a
lump sum payment of the entire actuarial equivalent of the participant’s accrued retirement pension or a reduced pension
payable over a fixed number of months or elect the purchase of an annuity contract equivalent in value to the actuarial
equivalent of the participant’s accrued retirement pension. Upon a change in control, we may elect to effectuate a lump
sum payment of all amounts accrued under the Supplemental Pension Plan.
For purposes of calculating benefits under the Pension Plan, compensation is defined to include a two month
equivalent of the total cash remuneration paid for services rendered during a plan year prior to salary reductions
pursuant to Sections 401(k) or 125 of the IRC, including bonuses, incentive compensation, severance pay, disability
payments and other forms of irregular payments. The table below illustrates the amount of annual benefits payable
at age 65 to a person with the specified five year average compensation and years of service under the Pension Plan
combined with the Supplemental Pension Plan.
Final
Average
Compensation
Years of Service
10 15 20 25
$100,000 $10,000 $15,000 $20,000 $25,000
$125,000 $12,500 $18,750 $25,000 $31,250
$150,000 $15,000 $22,500 $30,000 $37,500
$175,000 $17,500 $26,250 $35,000 $43,750
$200,000 $20,000 $30,000 $40,000 $50,000
$225,000 $21,200 $31,800 $42,400 $53,000
The maximum annual benefit payable under the Pension Plan is restricted by the IRC ($180,000 for calendar year
2007; $185,000 for calendar year 2008). At December 31, 2007, the maximum five year average compensation
taken into account for benefit calculation purposes was $212,000. The compensation taken into account for benefit
calculation purposes is limited by law ($225,000 for calendar year 2007; $230,000 for calendar year 2008), and
is subject to statutory increases and cost-of-living adjustments in future years. Income recognized as a result of
the exercise of stock options is disregarded in computing benefits under the Pension Plan. A participant may elect
whether the benefits are paid in the form of a single life annuity, a joint and survivor annuity or as a lump sum
upon reaching the normal retirement age of 65.
Pension Benefits Table
The following table reflects the number of years of credited service and the present value of accumulated benefits
payable to Mr. Waite under the Pension Plan and the Supplemental Pension Plan. See Note 8 (Employee Benefit
Plans) to the consolidated financial statements and the “Critical Accounting Policies and Estimates – Pension”
section of the MD&A in our Form 10-K regarding the interest rate, mortality rate and other assumptions
underlying the calculations in this table.
Name
(a)
Plan
Name
(b)
Number
of Years
Credited
Service
(#)
(c)
Present Value of
Accumulated
Benefit
($)
(d)
Payments
During
Last Fiscal
Year
($)
(e)
Mr. Fishman N/A — — —
Mr. Cooper N/A — — —
Mr. Waite Pension Plan 19 26,554 —
Supplemental Pension Plan 19 110,171 —
Mr. Martin N/A — — —
Ms. Bachmann N/A — — —