8-KMaterial AgreementsExhibits & Filings

DOLLAR GENERAL CORP 8-K Report, Material Agreement (Dec 8, 2004)

Filed December 8, 2004For Securities:DG

Summary

Dollar General Corporation (DG) filed an 8-K on December 8, 2004, to report the establishment of a supplemental executive disability program. This program, effective for policies written on or after January 1, 2005, aims to provide enhanced disability income benefits to officers and certain highly compensated employees. The company will cover premiums for participants with annual base salaries of $225,000 or more, while those below this threshold will pay their own premiums. The supplemental coverage is designed to provide up to 75% of base salary in disability income benefits, reduced by other existing disability coverage. The program sets guaranteed issue limits, with higher limits for those earning $225,000 or more. This initiative is a move to further incentivize and retain key executive talent by offering robust financial protection in the event of disability.

Key Highlights

  • 1Dollar General established a supplemental executive disability program effective January 1, 2005.
  • 2The program provides enhanced disability income benefits for officers and certain highly compensated employees.
  • 3Company pays premiums for employees with annual base salaries of $225,000 or higher; employees below this threshold pay their own premiums.
  • 4The supplemental benefit aims to provide up to 75% of base salary, less other disability income.
  • 5Guaranteed issue limits for the supplemental policy are $5,000/month for salaries >= $225,000 and $3,000/month for salaries < $225,000.
  • 6The company's existing group long-term disability plan maximum benefit will be reduced from $20,000 to $15,000 per month effective January 1, 2005.
  • 7Individual disability policies were previously purchased for key named executive officers, with premiums paid by the company.

Frequently Asked Questions

The program is designed to provide enhanced disability income benefits to officers and certain highly compensated employees of Dollar General, offering them greater financial security in the event they become disabled and are unable to work.

The program covers officers and certain other highly compensated employees. Eligibility for premium coverage by the company is tied to an annual base salary of at least $225,000.

The supplemental benefit is intended to provide up to 75% of an employee's base salary, offset by any other disability income benefits they may receive (including the company's standard long-term disability plan). There are also guaranteed issue limits of $5,000 per month for higher earners and $3,000 per month for others.

The reduction in the maximum benefit of the company's standard long-term disability plan from $20,000 to $15,000 per month, effective January 1, 2005, appears to be in conjunction with the introduction of the supplemental executive program. This may be to structure the overall executive compensation and benefits package effectively.