Notes to Financial Statements
December 31, 2018 and 2017
1.
Description of the Plan
The following description of the Packaging Corporation of America Retirement Savings Plan for Salaried
Employees (the Plan) provides general information. The Plan Sponsor is Packaging Corporation of America (the Company or PCA). Participants should refer to the plan document for a more complete description of the
Plans provisions.
General
The
Plan is a defined-contribution plan, established on February 1, 2000, and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The Plan covers salaried employees of the Company and
each of its domestic subsidiaries that have adopted the Plan. The Benefits Administration Committee is responsible for the oversight of the Plan. The Investment Committee determines the appropriateness of the Plans investment offerings and
monitors investment performance. Both committees are appointed by the Board of Directors of the Company.
Alight, formerly Aon Hewitt, is
the Plans record keeper. Northern Trust is the Plans trustee and custodian. The Pavilion Advisory Group is the investment advisor to the Plan. On May 1, 2018, Pavilion became a §388 investment advisor.
In 2018, PCA acquired Englander Container and Display but did not acquire their plan assets and did not allow rollovers into the PCA Plans.
On January 1, 2017, the Boise Paper Holdings, LLC Savings Plan merged into the Packaging Corporation of America Retirement Savings
Plan for Salaried Employees, and participant balances were transferred into the Plan during January 2017.
In 2017, PCA acquired
Sacramento Container Corporation, Northern Sheets, LLC, and Central California Sheets, LLC (collectively referred to as Sacramento Container) but did not acquire their plan assets. Participants were allowed to rollover 401(k) account
balances and loans into the Plan.
During 2016, the Company acquired TimBar Corporation and Columbus Container, Inc. A portion of the
TimBar Packaging & Display 401(k) and the Columbus Container, Inc. 401(k) Profit Sharing Plan merged into the Plan on January 1, 2017 and April 1, 2017, respectively, and participant balances were transferred into the Plan during
January 2017 and April 2017, respectively.
Contributions
Upon hire, participants may contribute between 1% and 50% of annual pretax compensation, as defined, with such contributions limited to $18,500
and $18,000 in 2018 and 2017, respectively, for employees under age 50 and $24,500 and $24,000 in 2018 and 2017, respectively, for employees age 50 and older. Participants may also roll over qualifying distributions from other qualified plans.
After six months the Company matches participant pretax contributions on the following basis:
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The first 4% of pretax contributions are matched at a rate of 80%.
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The next 4% of pretax contributions are matched at a rate of 50%.
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In addition to the Companys matching contribution, the Company also makes a retirement savings contribution to eligible employees after
six months of service up to 5% of compensation based on years of service, as defined. The contribution is made on behalf of the employee regardless of whether or not the employee is contributing to the Plan.
Participants may make Roth contributions to the Plan, which are
after-tax
contributions whose earnings
are not taxable upon qualified distribution. Total 2018 employee contributions, both
before-tax
and Roth
after-tax,
cannot exceed $18,500 for employees under age 50 and
$24,500 for employees age 50 and older.
Participant Accounts
Each participants account is credited with the participants contributions, Company contributions, and an allocation of Plan
earnings or losses. The benefit to which a participant is entitled is the benefit that can be provided from the participants account.
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