Napa Auto Parts 2012 Annual Report Download - page 76

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Following the Pension Plan Freeze, all R70 Key Employees will continue to accrue a benefit under this Plan under the Part A Formula; however, the
benefit payable to a R70 Key Employee from the Pension Plan that is subtracted under the Part A Formula will be determined as if the Pension Plan were
not frozen so that the calculation of Supplemental Retirement Income for a R70 Key Employee will be unchanged following the Pension Plan freeze.”
6.
Article Five is amended as follows:
In Section 5.01, a new paragraph (c) is added to the end of such section:
“(c) Impact of Pension Plan Freeze. As a result of the Pension Plan Freeze, effective on December 31, 2013, Credited Service under the Pension Plan
and Earnings under the Pension Plan are frozen for all Key Employees described in this Section 5.01. (i.e., R70 Key Employees). Nevertheless,
each R70 Key Employee described in this Section 5.01 shall have his or her benefit under this Plan computed as if the Pension Plan was not
frozen. For clarity, the benefit from the Pension Plan described in Section 5.01(b)(2) is equal to the Normal or Delayed Retirement Income which
the R70 Key Employee would have been entitled to receive under the Pension Plan if the Pension Plan had not been frozen (rather than the Normal
or Delayed Retirement Income which the R70 Key Employee is actually entitled to receive under the Pension Plan). Accordingly, the Supplemental
Retirement Income for such R70 Key Employee is determined by assuming the Pension Plan was not frozen, so that the Supplemental Retirement
Income payable under Section 5.01 will be unchanged following the Pension Plan Freeze.”
In Section 5.02, new paragraphs (c) and (d) are added to the end of such section:
“(c) Impact of Pension Plan Freeze. As a result of the Pension Plan Freeze, effective on December 31, 2013, a Key Employee described in this Section
5.02 (i.e., a NR70 Key Employee) will cease to earn additional benefits under the Part A Formula described in this Section 5.02. Beginning
January 1, 2014, the NR70 Key Employee will have his or her benefit under the Plan determined using the Part B Formula. In computing such
Part B Formula, all of the NR70 Key Employee’s Earnings, Credited Service and other applicable elements shall be counted (both before and after
January 1, 2014). For clarity, the offset described under Section 5.02(b)(3) will not apply under the Part B Formula. Nevertheless, a NR70 Key
Employee’s benefit under this Plan (payable on the NR70 Key Employee’s Normal Retirement Date in the form of a Single Life Annuity)
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