Sysco 2015 Annual Report Download - page 68
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Please find page 68 of the 2015 Sysco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.SYSCO CORPORATION-Form10-K60
PARTII
ITEM8Financial Statements and Supplementary Data
NOTE14 Company-Sponsored Employee Bene t Plans
Sysco has company-sponsored de ned bene t and de ned contribution retirement plans for its employees. Also, the company provides certain health
care bene ts to eligible retirees and their dependents.
De ned Contribution Plans
In December 2012, the company amended its de ned contribution 401(k) Plan to be a Safe Harbor Plan, a plan that treats all employees’ bene ts equally
within the plan, under Sections 401(k) and 401(m) of the Internal Revenue Code with respect to non-union employees and those union employees whose
unions adopted the Safe Harbor Plan provisions. Effective January 1, 2013, the new Safe Harbor Plan provides that the company will make a non-elective
contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a
participant’s pre-tax contribution on the rst 5% of the participant’s compensation contributed by the participant. Certain employees are also eligible for a
transition contribution, and the company may also make discretionary contributions. For union employees who are members of unions that did not adopt
the Safe Harbor Plan provisions, the plan provides that under certain circumstances the company may make matching contributions of up to 50% of the
rst 6% of a participant’s compensation.
Prior to the adoption of the Safe Harbor Plan in January 2013, the company’s de ned contribution 401(k) plan provided that, under certain circumstances,
the company may make matching contributions of up to 50% of the rst 6% of a participant’s compensation.
The company also has a nonquali ed, unfunded Management Savings Plan (MSP) available to key management personnel who are participants in the
Management Incentive Plan. Participants may defer up to 50% of their annual salary and up to 100% of their annual bonus. The company will make a
non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of
50% of a participant’s pre-tax contribution on the rst 5% of the participant’s eligible compensation that is deferred. Certain employees are also eligible for
a transition contribution, and the company may also make discretionary contributions. All company contributions to the MSP are limited by the amounts
contributed by the company to the participant’s 401(k) account.
Sysco’s expense related to its de ned contribution plans was $125.4 million in scal 2015, $118.6 million in scal 2014, and $65.3 million in scal 2013.
De ned Bene t Plans
Sysco maintains a quali ed pension plan (Retirement Plan) that pays bene ts to participating employees at retirement, using formulas based on a
participant’s years of service and compensation. During scal 2012, Sysco approved a plan to freeze future bene t accruals under the Retirement Plan as
of December31, 2012 for all U.S.-based salaried and non-union hourly employees. Effective January 1, 2013, these employees were eligible for additional
contributions under the company’s de ned contribution 401(k) plan.
In addition to receiving bene ts upon retirement under the company’s Retirement Plan, certain key management personnel who were participants in the
Management Incentive Plan are entitled to receive bene ts under a Supplemental Executive Retirement Plan (SERP). This plan is a nonquali ed, unfunded
supplementary retirement plan. In November 2012, Sysco approved a plan to restructure its executive nonquali ed retirement program including the SERP.
Future bene t accruals have been frozen under this plan as of June 29, 2013, for all participants.
Also, the company provides certain health care bene ts to eligible retirees and their dependents.