NOTE L — RETIREMENT PLANS

401(k) plan

The Company maintains a defined contribution retirement plan for eligible employees under Section 401(k) of the Internal Revenue Code. Participants can make voluntary contributions up to the Internal Revenue Service limit of $17,500 ($23,000 for employees 50 years or over) for 2013. Effective January 1, 2009, the Company suspended its matching contribution as an expense savings measure. The Company’s U.K.-based subsidiary, Creative Tops, also maintains a defined contribution pension plan.

Retirement benefit obligations

The Company assumed retirement benefit obligations, which are paid to certain former executives of an acquired business. The obligations under these agreements are unfunded and amounted to $5.4 million at December 31, 2013 and $5.9 million at December 31, 2012.

The discount rate used to calculate the retirement benefit obligations was 4.50% at December 31, 2013 and 3.60% at December 31, 2012. The retirement benefit obligations are included in accrued expenses and deferred rent and other long-term liabilities.

The Company expects to recognize $47,000 of the actuarial losses included in accumulated other comprehensive loss in net periodic benefit cost in 2014.

Future retirement benefit payments are as follows (in thousands):


Year ending December 31,
2014	$	143
2015		132
2016		121
2017		265
2018		362
2019-2023		1,753

Total	$	2,776