Napa Auto Parts 2012 Annual Report Download - page 77

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will not be less than the NR70 Key Employee’s benefit computed under this Section 5.02 as of December 31, 2013 (payable on the NR70 Key
Employee’s Normal Retirement Date in the form of a Single Life Annuity). This benefit calculated as of December 31, 2013, under the Part A
Formula is referred to as the “NR70 Key Employee’s Minimum Benefit.”
(d) Calculation of a NR70 Key Employee’s Minimum Benefit. A NR70 Key Employee’s Minimum Benefit is calculated based on Credited Service
and Earnings through December 31, 2013. The calculation of the NR70 Key Employee’s Minimum Benefit under Section 5.02(b)(1) will be
determined in the same way as the Frozen Accrued Benefit which he would be entitled to receive under the Pension Plan as of December 31, 2013,
payable at his Normal Retirement Date, assuming the benefit limitations of Code Sections 401(a)(17) and 415 as reflected in the Pension Plan were
not in effect and if the definition of Earnings under this Plan were used to compute the Key Employee’s Frozen Accrued Benefit under the Pension
Plan. For clarity, if the NR70 Key Employee has not yet attained his Early Retirement Date as of December 31, 2013, then the Frozen Accrued
Benefit would be calculated under Section 4.05 (Termination of Employment) of the Pension Plan which is applicable to deferred vested
participants.
The calculation of the NR70 Key Employee’s Minimum Benefit under Section 5.02(b)(2) equals his actual Frozen Accrued Benefit in the Pension
Plan, which is determined as of December 31, 2013.
The calculation of the NR70 Key Employee’s Minimum Benefit under Section 5.02(b)(3) reflects 3.8% of the NR70 Key Employee’s Earnings
through 2013 only, with Earnings defined in the Pension Plan and not in this Plan. However, the hypothetical account balance will reflect interest
at 6% through the Key Employee’s Normal Retirement Date, even though hypothetical employer contributions are not reflected after 2013. In
addition, the hypothetical account balance shall be converted to a single life annuity using the Applicable Mortality Table and Applicable Interest
Rate as defined in Section 2.03 of the Pension Plan as of December 31, 2013.”
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