Kroger, Stop & Shop, Albertsons Intend to Withdraw From UFCW Pension Plan
July 21 2020 - 07:27PM
Dow Jones News
By Josh Beckerman
Kroger Co., Stop & Shop and Albertsons Cos. have tentatively
agreed to withdraw from a United Food and Commercial Workers
International Union pension plan.
Kroger and Stop & Shop have agreed to transition to a new
variable annuity pension plan for 33,000 Kroger workers and 18,000
Stop & Shop employees.
Albertsons workers would transition to another variable annuity
pension plan. The changes are subject to ratification by union
members.
Kroger said "in an environment where pensions are faced with
funding challenges, we are pleased to have reached a tentative
agreement that will protect benefits for our associates." The plan
would help Kroger "by addressing future pension cost increases and
minimizing Kroger's future exposure to market risk associated with
the current pension plan."
Kroger expects withdrawal liability and contribution to a
transition reserve would total about $760 million after-tax. Stop
& Shop, a unit of Ahold Delhaize, expects its total will be
about $500 million.
Albertsons expects an after-tax charge of about $213 million for
withdrawal liability and expects to pay about $8 million to $9
million to pre-fund a transition reserve.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
July 21, 2020 19:12 ET (23:12 GMT)
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