Notes to Financial Statements
December 31, 2018 and 2017
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 applicable 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, formerly Aon Hewitt, is
the Plans record keeper. The 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.
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 401k 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 on April 1, 2017, respectively.
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 $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. 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 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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