JCP » Topics » Defined Contribution Plans

This excerpt taken from the JCP 10-K filed Mar 31, 2009.

Defined Contribution Plans

Our Company’s Savings, Profit-Sharing and Stock Ownership Plan (Savings Plan) is a qualified defined contribution plan, a 401(k) plan, available to all eligible associates of the Company and certain subsidiaries. Effective January 1, 2007, all associates who are age 21 or older are immediately eligible to participate in the plan. Previously, associates who had completed at least 1,000 hours of service within an eligibility period (generally 12 consecutive months) and had attained age 21 were eligible to participate in the plan. Beginning in plan year 2007, eligible associates, who have completed one year and at least 1,000 hours of service, are offered a fixed Company matching contribution of 50 cents on each dollar contributed up to 6% of pay. We may make additional discretionary matching contributions. This fixed plus discretionary match replaced the former Company contribution of an amount equal to 4.5% of available profits plus discretionary contributions, which was effective through plan year 2006. Effective with the 2007 plan year, Company matching contributions fully vest after three years. For Company matching contributions made through plan year 2006, the vesting period occurs over a five-year period at 20% per year of service. Total Company contributions for 2008, 2007 and 2006 were $52 million, $51 million and $82 million, respectively. Company contributions in 2006 were invested in Company stock, with associates having the option of reinvesting matching contributions made in our Company stock into a variety of investment options. After 2006, the Company matching contributions are credited to associates’ accounts in accordance with their investment elections.

The 401(k) plan includes a non-contributory retirement account that is part of the defined contribution 401(k) plan. Participants receive a Company contribution in an amount equal to 2% of the participants’ annual pay after one year of service, which is in lieu of the primary pension benefit that was closed to associates hired or rehired on or after January 1, 2007. Participating associates are fully vested after three years.

In addition to the 401(k) plan, we also have a deferred compensation plan – Mirror Savings Plan – which is a non-qualified contributory unfunded defined contribution plan offered to certain management associates. Similar to the supplemental retirement plans, the Mirror Plan benefits are paid by our Company from operating cash flow and cash investments.

 

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Total expense for defined contribution plans, including the Mirror Plan, for 2008, 2007 and 2006 was $62 million, $58 million and $97 million, respectively and is predominantly included in SG&A on the Consolidated Statements of Operations.

This excerpt taken from the JCP 10-K filed Apr 1, 2008.

Defined Contribution Plans

The Company’s Savings, Profit-Sharing and Stock Ownership Plan (Savings Plan) is a qualified defined contribution plan, a 401(k) plan, available to all eligible associates of the Company and certain subsidiaries. Effective January 1, 2007, all associates who are age 21 or older are immediately eligible to participate in the plan. Previously, associates who had completed at least 1,000 hours of service within an eligibility period (generally 12 consecutive months) and had attained age 21 were eligible to participate in the plan. Beginning in plan year 2007, eligible associates, who have completed one year and at least 1,000 hours of service, are offered a fixed Company matching contribution of 50 cents on each dollar contributed up to 6% of pay. The Company may make additional discretionary matching contributions. This fixed plus discretionary match replaced the former Company contribution of an amount equal to 4.5% of available profits plus discretionary contributions, which was effective through plan year 2006. Effective with the 2007 plan year, Company matching contributions fully vest after three years. For Company matching contributions made through plan year 2006, the vesting period occurs over a five-year period at 20% per year of service. Total Company contributions for 2007, 2006 and 2005 were $51 million, $82 million and $71 million, respectively. Associates have the option of reinvesting matching contributions made in Company stock into a variety of investment options, primarily mutual funds.

In addition to the 401(k) plan, the Company also has a Mirror Savings Plan, which is a nonqualified unfunded defined contribution plan offered to certain management associates. Similar to the supplemental retirement plans, the Mirror Plan benefits are paid by the Company from operating cash flow and cash investments.

 

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Total Company expense for defined contribution plans, including the Mirror Plan, for 2007, 2006 and 2005 was $58 million, $97 million and $78 million, respectively.

This excerpt taken from the JCP 10-K filed Apr 4, 2007.
Defined Contribution Plans
The Company’s Savings, Profit-Sharing and Stock Ownership Plan (Savings Plan) is a qualified defined contribution plan, a 401(k) plan, available to all eligible associates of the Company and certain subsidiaries. Prior to the plan changes effective January 1, 2007 which are discussed on pages F-28 to F-29, associates who had completed at least 1,000 hours of service within an eligibility period (generally 12 consecutive months) and had attained age 21 were eligible to participate in the plan. The Company contributed to the plan an amount equal to 4.5% of the Company’s available profits, as defined in the Savings Plan, as well as discretionary contributions designed to generate a competitive level of benefits. The vesting period for Company matching contributions through plan year 2006 occurred over a five-year period at 20% per year of service. Total Company contributions for 2006, 2005 and 2004 were $82 million, $71 million and $47 million, respectively. Associates have the option of reinvesting matching contributions made in Company stock into a variety of investment options, primarily mutual funds.
 
In addition to the 401(k) plan, the Company also has Mirror Savings Plans, which are nonqualified unfunded defined contribution plans offered to certain management associates. Similar to the supplemental retirement plans, the Mirror Plan benefits are paid by the Company from operating cash flow and cash investments.
 
Total Company expense for defined contribution plans, including the Mirror Plans, for 2006, 2005 and 2004 was $97 million, $78 million and $52 million, respectively.
 
This excerpt taken from the JCP 10-K filed Apr 6, 2006.

Defined Contribution Plans

The Company’s Savings, Profit-Sharing and Stock Ownership Plan (Savings Plan) is a qualified defined contribution plan available to all eligible associates of the Company and certain subsidiaries. Associates who have completed at least 1,000 hours of service within an eligibility period (generally 12 consecutive months) and have attained age 21 are eligible to participate in the plan. Vesting of Company contributions occurs over a five-year period at 20% per year of service. The Company contributes to the plan an amount equal to 4.5% of the Company’s available profits, as defined in the Savings Plan, as well as discretionary contributions designed to generate a competitive level of benefits. Total Company contributions for 2005, 2004 and 2003 were $71 million, $47 million and $45 million, respectively, of which $19 million was a discretionary contribution in 2003. Associates have the option of reinvesting matching contributions made in Company stock into a variety of investment options, primarily mutual funds. In addition, the Company has Mirror Savings Plans, nonqualified unfunded defined contribution plans, which are offered to certain management associates. Similar to the supplemental retirement plans, the Mirror Plan benefits are paid by the Company from operating cash flow and cash investments.

Total Company expense for defined contribution plans, including the Mirror Plans, for 2005, 2004 and 2003 was $78 million, $52 million and $47 million, respectively.

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