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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 27, 2010, February 28, 2009 and March 1, 2008
(In thousands, except per share amounts)
16. Retirement Plans (Continued)
The accumulated benefit obligation for the defined benefit pension plan was $103,247 and $87,932
as of February 27, 2010 and February 28, 2009, respectively. The accumulated benefit obligation for the
nonqualified executive retirement plan was $14,780 and $16,931 as of February 27, 2010 and
February 28, 2009, respectively.
The significant actuarial assumptions used for all defined benefit plans to determine the benefit
obligation as of February 27, 2010, February 28, 2009, and March 1, 2008 were as follows:
Nonqualified
Defined Benefit Executive
Pension Plan Retirement Plan
2010 2009 2008 2010 2009 2008
Discount rate ................................. 6.00% 7.00% 6.50% 6.00% 7.00% 6.50%
Rate of increase in future compensation levels ......... 5.00 5.00 5.00 3.00 3.00 3.00
Weighted average assumptions used to determine net cost for the fiscal years ended February 27,
2010, February 28, 2009 and March 1, 2008 were:
Nonqualified
Defined Benefit Executive
Pension Plan Retirement Plan
2010 2009 2008 2010 2009 2008
Discount rate ................................. 7.00% 6.50% 5.75% 7.00% 6.50% 5.75%
Rate of increase in future compensation levels ......... 5.00 5.00 5.00 3.00 3.00 3.00
Expected long-term rate of return on plan assets ....... 7.75 7.75 7.75 N/A N/A N/A
To develop the expected long-term rate of return on assets assumption, the Company considered
the historical returns and the future expectations for returns for each asset class, as well as the target
asset allocation of the pension portfolio. This resulted in the selection of the 7.75% long-term rate of
return on plan assets assumption for fiscal 2010, 2009 and 2008.
The Company’s pension plan asset allocations at February 27, 2010 and February 28, 2009 by asset
category were as follows:
February 27, February 28,
2010 2009
Equity securities ................................ 60% 56%
Fixed income securities ........................... 40% 44%
Total ...................................... 100% 100%
The investment objectives of the Defined Benefit Pension Plan, the only defined benefit plan with
assets, are to:
• Achieve a rate of return on investments that exceeds inflation over a full market cycle and is
consistent with actuarial assumptions;
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