Big Lots 2015 Annual Report Download - page 60

The Pension Plan is intended to qualify under the IRC and comply with the Employee Retirement
Income Security Act of 1974, as amended. The amount of the Big Lots’ annual contribution to the
Pension Plan is actuarially determined to accumulate sufficient funds to maintain projected benefits.
The Supplemental Pension Plan constitutes a contract to pay benefits upon retirement. The
Supplemental Pension Plan is designed to pay the same benefits in the same amount as if the
participants continued to accrue benefits under the Pension Plan. We have no obligation to fund the
Supplemental Pension Plan, and all assets and amounts payable under the Supplemental Pension
Plan are subject to the claims of our general creditors.
Effective January 1, 1993, the annual retirement benefit payable upon retirement under the Pension
Plan and the Supplemental Pension Plan for those working until age 65 was, and continues to be,
equal to 1% of the average annual compensation during the participant’s highest compensated five
consecutive year period of employment with Big Lots multiplied by the years of service up to a
maximum of 25 (“Normal Retirement Pension”), with participation and benefits being limited in and for
any single year to one plan (not both plans) based on the participant’s status as a highly compensated
employee, as defined in the IRC. This benefit is payable when a participant reaches the normal
retirement age of 65; however, the Pension Plan and Supplemental Pension Plan provide the option to
retire early (generally at age 55) or to continue employment beyond the normal retirement age.
Under the Pension Plan and the Supplemental Pension Plan, a participant who has reached the age of
55 and has at least five years of service with us can elect to retire early and receive a reduced monthly
pension commencing on the date of the participant’s early termination (if age plus service equals 65 or
more). Alternatively, a participant who has reached the age of 65 can elect to continue employment
with us and continue participation in either the Pension Plan or Supplemental Pension Plan until the
participant retires, at which time the participant will receive his Normal Retirement Pension.
Participants who terminate employment due to a disability are entitled to a pension amount under the
Pension Plan equal to the actuarially-determined present value of the Normal Retirement Pension. The
spouse of a participant who dies before retirement is entitled to receive an amount equal to the
actuarially-determined present value of the Normal Retirement Pension reduced for the period of time
that the participant’s death or 25th anniversary of employment, if later, precedes the normal retirement
age. A participant who terminates employment for any reason other than death or retirement may
receive a reduced pension amount determined based on the number of years the participant was
employed by us.
A participant may elect to receive a monthly annuity payment from the Pension Plan upon separation.
Alternatively, a participant may elect to receive a lump sum payment of the entire actuarial equivalent
of the participant’s accrued retirement pension or a reduced monthly annuity payable over a fixed
number of months. Under the Supplemental Pension Plan, a lump sum payment of the entire actuarial
equivalent of the participant’s retirement pension will be made within 90 days of the Entitlement Date.
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