Notes to Financial Statements
December 31, 2019 and 2018
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 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, participants
may contribute between 1% and 50% of annual compensation, as defined, 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. Participants may also roll over qualifying
distributions from other qualified plans.
After six months the Company matches participant contributions on the following basis:
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The first 4% of pre-tax contributions are matched at a rate of 80%.
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The next 4% of pre-tax 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 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, Company matching contributions, earnings thereon and
rollovers from other qualified plans.
The Company retirement savings contribution, including earnings thereon, becomes 100% vested upon
completion of three years of service, or upon reaching 65 years of age, permanent disability, or death while employed by the Company. Forfeited non-vested accounts are applied to reduce future Company
contributions.
Investment Options
Participants may elect to invest their account balances in any of the available investment options provided by the Plan through the PCA Defined
Contribution Master Trust (the Master Trust). Participants may change their investment options on any business day, subject to certain short-term trading restrictions outlined in the Plan document.
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