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The Rite Aid Retirement Plan (formerly known as the Rite Aid Corporation Pension Plan) was established to help provide you with a retirement income and additional financial security. The benefits under the Plan are designed to supplement your Social Security benefits and your savings. Also, you are vested in the Plan after five years of service, and your benefits are based on your range of service and salary history.

The Rite Aid Pension Plan

The Rite Aid Corporation Pension Plan is a traditionally defined benefit pension plan. Your benefits are based on your length of service and salary history. You are vested in the Plan after five years.

Your retirement benefits under the Rite Aid Pension Plan are determined by a formula that considers your years of credited service and your normal monthly earnings.

Eligibility to Participate in the Rite Aid Retirement Plan

You are eligible to participate in the Rite Aid Retirement Plan if you are an active, full-time Rite Aid employee. Part-time employees do not qualify for the Rite Aid Retirement Plan. You will become a participant in the Rite Aid Retirement Plan on your first day of employment, provided you remain employed by Rite Aid.

Normal Retirement Benefit

Normal Retirement Date

The Rite Aid Retirement Plan has a Normal Retirement Date of December 31 of the year you turn 65.

Benefit Accrual: Your benefits under the Rite Aid Retirement Plan accrue at 1/60th of your average monthly earnings for every year of credited service, up to a maximum of 30 years.

Normal Retirement Pension Formula

The benefits are determined by a formula that considers your years of credited service and your average monthly earnings. The Rite Aid Retirement Plan benefit formula is as follows:

  • Final Average Monthly Earnings X Credited Service = Annual Benefit
  • For example, if you have 25 years of credited service and your final average monthly earnings are $3

Accrued Pension

Your accrued pension benefit is the amount of your benefit that has been earned as of your last day of employment with Rite Aid, and the Rite Aid Retirement Plan formula determines this amount.

If you have not met the five-year vesting requirement, you will not have an accrued pension benefit.

Payment Options

You may select to receive your benefits in a lump sum or in the form of an annuity. If you select to receive your benefits in the form of assistance, you may choose to have your annuity payments begin at the Normal Retirement Date or later.

If you select to receive your benefits in the form of an annuity, you may elect to have your annuity payments commence at the Normal Retirement Date or at some later date.
You must consult with a financial advisor to determine which payment option is best.

Other Retirement Benefits

Late Retirement Date

If you do not retire on your Normal Retirement Date, you may elect to retire at any time after you reach the age of 65. However, your benefits will be decreased if you retire after the Normal Retirement Date.

Early Retirement Date

If you own at least ten years of credited service, you may elect to retire as early as age 55. However, your benefits will be decreased if you retire before the Normal Retirement Date.

Disability Retirement

If you become disabled and cannot accomplish the duties of your job, you may be eligible for a disability retirement benefit. To be suitable for a disability retirement benefit, you must have at least five years of credited service.

Your selected beneficiary will receive a death benefit if you die before you retire. The death benefit is equal to the value of your accrued pension benefit. If you have not met the five-year vesting requirement, you will not have an accrued pension benefit, and your designated beneficiary will not receive a death benefit.

Termination of Employment Benefits

Vesting in Accrued Pension Benefit

You will vest in your accrued pension benefit after completing five years of credited service. If you leave Rite Aid before completing five years of credited service, you will not vest in your accrued pension benefit, and you will not receive any benefits under the Rite Aid Retirement Plan.

If you terminate your employment with Rite Aid, you will not receive any benefits under the Rite Aid Retirement Plan unless you have met the five-year vesting requirement. If you have met the five-year vesting requirement, you will be entitled to receive your accrued pension benefit.

Time of Payment

The benefits will be paid to you as specified in the Rite Aid Retirement Plan. Your designated beneficiary will receive a death benefit if you die before you retire. The death benefit is equal to the value of your accrued pension benefit. If you have not met the five-year vesting requirement, you will not have an accrued pension benefit, and your designated beneficiary will not receive a death benefit.

Forfeiture

If you are terminated, you will forfeit all benefits under the Rite Aid Retirement Plan. Cause includes but is not confined to the conviction of a felony or crime involving moral turpitude, dishonesty, fraud, or illegal use of drugs. If you die while employed by Rite Aid, your designated beneficiary will receive a death benefit. The death benefit is equal to the value of your accrued pension benefit. If you have not met the five-year vesting requirement, you will not have an accrued pension benefit, and your designated beneficiary will not receive a death benefit.

Contributions

Rite Aid makes contributions to the Rite Aid Retirement Plan on your behalf. The Rite Aid contributions are based on a percentage of your eligible pay, and Rite Aid’s contribution percentage is set by the Rite Aid Board of Directors and may be changed at any time.

You are not required to make contributions to the Rite Aid Retirement Plan. However, if you elect to make contributions, you may do so through payroll deductions. Your payroll deduction contribution is based on a percentage of your eligible pay. You may elect to contribute up to the IRS maximum contribution limit. The IRS maximum contribution limit may change from year to year.

Administration

Plan Administrator

The Rite Aid Board of Directors is the Rite Aid Retirement Plan administrator. The Board of Directors has the authority to interpret the Rite Aid Retirement Plan and make all decisions regarding the administration of the Plan. All questions concerning your benefits under the Rite Aid Retirement Plan should be directed to Rite Aid’s Human Resources Department.

Procedure for Obtaining Benefits

To begin receiving your benefits under the Rite Aid Retirement Plan, you must notify Rite Aid’s Human Resources Department of your retirement date. The Human Resources Department will give you the necessary forms to complete and return. Once the Human Resources Department has received all of the required information and conditions, they will begin issuing your benefits.

Making a Benefit Claim

If you were sure that you are entitled to benefits under the Rite Aid Retirement Plan and have not received them, you should contact Rite Aid’s Human Resources Department. The Human Resources Department will help you in filing a claim for benefits.

Appealing a Denied Claim

If your claim for benefits is disproved, you may appeal the denial. The appeals process is as follows:

  1. You must present your appeal in writing to Rite Aid’s Human Resources Department Within 60 days after you received your denial, and submit a new application.
  2. The Rite Aid Board of Directors will review your appeal.
  3. You will be informed in writing of the Board of Directors’ decision. The decision of the Rite Aid Board of Directors is final and binding.

Addition Information

Disqualification or Loss of Benefits

Rite Aid reserves the right to amend, suspend or terminate the Rite Aid Retirement Plan at any time and for any reason. You will be notified in writing if Rite Aid amends, suspends, or releases the Rite Aid Retirement Plan.

The Rite Aid Retirement Plan is a qualified retirement plan under Section 401(a) of the Internal Revenue Code. Rite Aid has established the Rite Aid Foundation, a 501(c)(3) organization, as the Rite Aid Retirement Plan’s named fiduciary and administrator.

The Rite Aid Retirement Plan is subject to the Employee Retirement Income Security Act of 1974 (ERISA) provisions. As a participant in the Rite Aid Retirement Plan, you are entitled to certain rights and protections under ERISA.

For more information about your rights and security under ERISA, you may contact the nearest office of the Pension Benefit Guaranty Corporation or the Department of Labor’s Employee Benefits Security Administration.

Re-Employment and Your Plan Assistance

If you retire and return to work for Rite Aid, you may be eligible to continue participating in the Rite Aid Retirement Plan. However, your benefits will not begin accruing again until you have re-established eligibility under the Rite Aid Retirement Plan.

Change in Control

At the end of a change in the authority of Rite Aid, as defined in the Rite Aid Retirement Plan, your benefits under the Rite Aid Retirement Plan may be subject to change. You will be informed in writing of any changes to your advantages that occur due to a change in control.

Final Thoughts – Rite Aid Retirement

To begin receiving your benefits under the Rite Aid Retirement Plan, you must notify Rite Aid’s Human Resources Department of your retirement date and follow their steps. The benefits under this plan are designed to supplement your Social Security and retirement saving. With the RiteAid Retirement Plan, we can help provide an income during these uncertain times so that money isn’t always tight or difficult when it comes time to leave working life behind us!

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