Napa Auto Parts 2012 Annual Report Download - page 73

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2.
A new paragraph is added to the end of Section 1.02 as follows:
“Because of the Pension Plan Freeze, Credited Service, Earnings, Average Earnings and Anticipated Social Security Benefits will be frozen under the
Pension Plan. As described later in this Plan, the Plan assumes Earnings and Credited Service, for example, will continue to be recognized under this
Plan even though Earnings and Credited Service are frozen under the Pension Plan.”
3.
Article Two is amended as follows:
In Section 2.01:
The words “or in the following paragraph” have been added after the words “Except as provided in Section 2.03” in the third sentence.
Two new paragraphs have been added to the end of Section 2.01 as follows:
“Impact of Pension Plan Freeze. (Move From Part A Formula to Part B Formula) . As a result of the Pension Plan Freeze, effective January 1, 2014,
certain Key Employees will move from the Part A Formula to the Part B Formula. The Key Employees who will move to the Part B Formula are those
whose benefits through December 31, 2013 were accrued under the benefit formula set forth in Section 5.02 (i.e., Rule of 70 Employees who elected
Option Two in the Pension Plan or who were not Rule of 70 Employees). For convenience in this Plan, this group of Key Employees will be referred to as
“Non-Rule of 70 Key Employees” (or “NR70 Key Employees” for short).
Other Key Employees whose benefits through December 31, 2013 were accrued under the benefit formula set forth in Section 5.01 (i.e., Rule of 70
Employees who elected Option One in the Pension Plan) will continue to accrue benefits under the Part A Formula; however, the benefit payable to this
group of Key Employees from the Pension Plan that is subtracted under the Part A Formula will be determined as if the Pension Plan were not frozen. For
convenience in this Plan, this group of Key Employees will be referred to as “Rule of 70 Key Employees” (or “R70 Key Employees” for short).”
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