JCP » Topics » 16) Retirement Benefit Plans

These excerpts taken from the JCP 10-K filed Mar 31, 2009.

15) Retirement Benefit Plans

Our Company provides retirement pension benefits, postretirement health and welfare benefits, as well as 401(k) savings, profit-sharing and stock ownership plan benefits to substantially all employees (associates). Retirement benefits are an important part of our total compensation and benefits program designed to attract and retain qualified, talented associates. Pension benefits are provided through defined benefit pension plans consisting of a non-contributory qualified pension plan (primary plan) and non-contributory supplemental retirement plans for certain management associates, including a 1997 voluntary early retirement plan. Retirement and other benefits include:

Defined Benefit Pension Plans    Other Benefit Plans

Primary plan – funded

  

Postretirement benefits – medical and dental

Supplemental retirement plans – unfunded

  

Defined contribution plans:

  

401(k) savings plan and Employee stock ownership plan

  

Deferred compensation plan

15) Retirement Benefit Plans

FACE="Times New Roman" SIZE="2">Our Company provides retirement pension benefits, postretirement health and welfare benefits, as well as 401(k) savings, profit-sharing and stock ownership plan benefits to substantially all employees (associates).
Retirement benefits are an important part of our total compensation and benefits program designed to attract and retain qualified, talented associates. Pension benefits are provided through defined benefit pension plans consisting of a
non-contributory qualified pension plan (primary plan) and non-contributory supplemental retirement plans for certain management associates, including a 1997 voluntary early retirement plan. Retirement and other benefits include:




























Defined Benefit Pension Plans  Other Benefit Plans

Primary plan – funded

  

Postretirement benefits – medical and dental

Supplemental retirement plans – unfunded

  

Defined contribution plans:

  

401(k) savings plan and Employee stock ownership plan

  

Deferred compensation plan

These excerpts taken from the JCP 10-K filed Apr 1, 2008.

16) Retirement Benefit Plans

The Company provides retirement and other postretirement benefits to substantially all employees (associates). Retirement benefits are an important part of the Company’s total compensation and benefits program designed to attract and retain qualified, talented associates. The Company’s retirement benefit plans consist of a non-contributory qualified pension plan (primary pension plan), non-contributory supplemental retirement and deferred compensation plans for certain management associates, a 1997 voluntary early retirement program, a contributory medical and dental plan and a 401(k) and employee stock ownership plan. These plans are discussed in more detail below. Associates

 

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hired or rehired on or after January 1, 2002 are not eligible for retiree medical or dental coverage. Associates hired or rehired on or after January 1, 2007 are not eligible to participate in the primary pension plan, as discussed below.

16) Retirement Benefit Plans

FACE="Times New Roman" SIZE="2">The Company provides retirement and other postretirement benefits to substantially all employees (associates). Retirement benefits are an important part of the Company’s total compensation and benefits program
designed to attract and retain qualified, talented associates. The Company’s retirement benefit plans consist of a non-contributory qualified pension plan (primary pension plan), non-contributory supplemental retirement and deferred
compensation plans for certain management associates, a 1997 voluntary early retirement program, a contributory medical and dental plan and a 401(k) and employee stock ownership plan. These plans are discussed in more detail below. Associates

 


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hired or rehired on or after January 1, 2002 are not eligible for retiree medical or dental coverage. Associates hired or rehired on or after
January 1, 2007 are not eligible to participate in the primary pension plan, as discussed below.

This excerpt taken from the JCP 10-K filed Apr 4, 2007.
17) Retirement Benefit Plans
 
The Company provides retirement and other postretirement benefits to substantially all employees (associates). Retirement benefits are an important part of the Company’s total compensation and benefits program designed to attract and retain qualified, talented associates. The Company’s retirement benefit plans consist of a non-contributory qualified pension plan (primary pension plan), non-contributory supplemental retirement and deferred compensation plans for certain management associates, a 1997 voluntary early retirement program, a contributory medical and dental plan and a 401(k) and employee stock ownership plan. These plans are discussed in more detail below. Associates hired or rehired on or after January 1, 2002 are not eligible for retiree medical or dental coverage.
 
Effective January 1, 2007, the Company implemented certain changes to its retirement benefits. With respect to the 401(k) plan, all associates who have attained age 21 are immediately eligible to participate in the plan. Starting January 1, 2007, all eligible associates who have completed one year, and at least 1,000 hours, of service are provided a fixed Company matching contribution, applied each pay period, 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 will replace the current Company contribution of an amount equal to 4.5% of available profits plus discretionary contributions. The vesting period for Company matching contributions under the 401(k) plan will be changed to full vesting after three years from the current five-year pro rata vesting.


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The pension plan is closed to associates hired or rehired on or after January 1, 2007. A replacement benefit will be provided to those associates in the form of a retirement account, a component of the defined contribution 401(k) plan, whereby the Company will contribute an amount equal to 2% of participants’ annual pay after one year of service. Participating associates will be fully vested after three years. Associates hired or rehired on or prior to December 31, 2006 will remain in the Company’s pension plan and continue to earn credited service.
 
These benefit plan changes did not have a significant impact on fiscal year 2006 retirement benefit plan expenses. Going forward, the aggregate impact is not expected to have a material impact on the Company’s financial condition, liquidity or results of operations.
 
As discussed in Note 1, effective February 3, 2007, the Company adopted the recognition and disclosure provisions of SFAS No. 158, which required the Company to recognize the funded status of its defined benefit pension and postretirement plans directly in its Consolidated Balance Sheet. This resulted in the reversal of the minimum pension liability that had been recorded related to the Company’s supplemental retirement plans, and the recognition in accumulated other comprehensive (loss)/income of actuarial gain or loss and prior service cost or credit amounts not yet reflected in periodic benefit cost, net of tax, for all of the Company’s pension and postretirement benefit plans. Beginning in 2007, other comprehensive income/(loss) will reflect gain or loss and prior service cost or credit amounts arising during the period and reclassification adjustments for amounts being recognized as components of net periodic benefit cost during the period, all net of tax.
 
Company expense/(income) for all retirement-related benefit plans was as follows for 2006, 2005 and 2004:
 
                         
($ in millions)   2006     2005     2004  
 
Primary pension plan
  $ 9     $ 69     $ 82  
Supplemental plans
    42       43       41  
Postretirement plans
    (25 )     (17 )     (8 )
Defined contribution plans
    97       78       52  
                         
Total retirement benefit plans expense
  $ 123     $ 173     $ 167  
                         
 
See Management’s Discussion and Analysis under Critical Accounting Policies on pages 34-36 of this Annual Report on Form 10-K for additional discussion of the Company’s defined benefit pension plan and Note 1 on pages F-12 to F-13 for the Company’s accounting policies regarding retirement-related benefits.
 
Defined Benefit Retirement Plans
 
This excerpt taken from the JCP 10-K filed Apr 6, 2006.

17)  Retirement Benefit Plans

The Company provides retirement and other postretirement benefits to substantially all employees (associates). Retirement benefits are an important part of the Company’s total compensation and benefits program designed to attract and retain qualified and talented associates. The Company’s retirement benefit plans consist of a non-contributory qualified pension plan (primary pension plan),

 

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Index to Financial Statements

non-contributory supplemental retirement and deferred compensation plans for certain management associates, a 1997 voluntary early retirement program, a contributory medical and dental plan and a 401(k) and employee stock ownership plan. These plans are discussed in more detail below. Associates hired or rehired on or after January 1, 2002 are not eligible for retiree medical or dental coverage.

Company expense/(income) for all retirement-related benefit plans was as follows for 2005, 2004 and 2003:

 

($ in millions)    2005          2004          2003  

Primary pension plan

   $ 69        $ 82        $ 130  

Supplemental plans

     43          41          34  

Postretirement plans

     (17 )        (8 )        (4 )

Defined contribution plans

     78          52          47  
                              

Total retirement benefit plans expense

   $     173        $     167        $     207  
                              

See Management’s Discussion and Analysis under Critical Accounting Policies on pages 44-47 of this Annual Report on Form 10-K for additional discussion of the Company’s defined benefit pension plan and Note 1 beginning on page F-10 for the Company’s accounting policies regarding retirement-related benefits.

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