Notes to Financial Statements
December 31, 2019 and 2018
1.
Description of the Plan
The following description of the Packaging Corporation of America Thrift Plan for Hourly 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, including the special appendix sections (Special
Appendix), for a more complete description of eligibility requirements, contribution limits, Company matching contributions, and vesting provisions. There is a Special Appendix for each Company location.
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 eligible hourly employees of the Company, its
subsidiaries, and the covered groups 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 Solutions is the
Plans record keeper. Northern Trust is the Plans trustee and custodian. Mercer, formerly Pavilion Advisory Group, is the investment advisor to the Plan. On May 1, 2018, Mercer became a §3(38) investment advisor.
Contributions
Upon hire, eligible
employees electing to participate in the Plan may make salary deferral contributions through payroll deductions based upon the deferral percentage limits specified in each covered Special Appendix that vary by geographic location, with such
contributions limited to $19,000 in 2019 for employees under age 50, and $25,000 in 2019 for employees age 50 and older. The Company contributes on behalf of the participants a matching contribution equal to an amount detailed in each
locations Special Appendix. The Companys matching contributions are invested in the Plans investment funds based on the participant investment elections.
The Company makes a retirement savings contribution to certain eligible employees of up to 6.5% of compensation based on years of service
and/or age, as defined in the locations Special Appendix. This 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 2019 employee contributions, both before-tax and Roth after-tax, cannot exceed $19,000 for employees under age 50 and
$25,000 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.
Vesting
Participants are 100% vested immediately in the value of their contributions, earnings thereon and rollovers from other qualified
plans.
The Companys matching contribution and the retirement savings contribution, and earnings thereon, vest at a rate specified
in each special appendix. To the extent a participant is not 100% vested in the Companys matching contributions or retirement savings contribution, upon attainment of age 65 or termination of employment due to death or permanent disability, a
participant will become 100% vested in the Companys matching contributions and retirement savings contributions. Forfeited non-vested accounts are applied to reduce future Company contributions.
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