logo
Plus   Neg
Share
Email

Ahold Delhaize's U.S. Brand Stop & Shop To Terminate Participation In UFCW

Dutch supermarkets and eCommerce company Ahold Delhaize N.V. (ADRND.PK,AHODF.PK) said that its U.S. brand Stop & Shop reached a tentative agreement to terminate its participation in the United Food & Commercial Workers International Union (UFCW) - Industry Pension Fund or the "National Plan".?

The company noted that tentative agreement does importantly improve the security of pension benefits for associates as well as reduces financial risk for the company. If ratified by the UFCW Locals, the transaction will be treated as an extraordinary item and will therefore not impact the underlying operating results outlook for 2020.

Pending ratification of this agreement, Stop & Shop expects to pay the National Plan withdrawal liability of $649 million, on a pre-tax basis, to fulfill Stop & Shop's obligations for past service for associates and retirees in the National Plan.

Stop & Shop will also make an $18 million contribution to a transition reserve for a new variable annuity pension plan. On an after-tax basis, the withdrawal liability and contribution to the transition reserve total approximately $500 million.

The withdrawal liability will be satisfied by installment payments to the National Plan over the next three years.

Kroger and Albertsons have also entered into separate tentative agreements with the UFCW Locals and the National Plan Trustees to withdraw from the National Plan. Together, Ahold Delhaize's brand Stop & Shop, Kroger, and the UFCW Locals plan to create the UFCW International Union-Industry Variable Annuity Pension Plan for future benefits.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
United Airlines has rolled out an interactive online "Map Search" feature for its customers in collaboration with search giant Google. The new feature is powered by Google Flight Search Enterprise Technology. United is claimed to be the first airline in the U.S. to add this feature. The new feature, available on United.com, allows customers to easily search, compare and purchase flight tickets. GHSW, LLC. is recalling Trader Joe's Southwest Style Sweet Potato Sauté Bowl citing undeclared milk and egg allergens in the dressing, according to the Food and Drug Administration. The recall was initiated after it was discovered that the dressing in the bowl contains milk and egg, but are not declared on the label. California Gov. Gavin Newsom signed an executive order on Wednesday that bans the sale of new gasoline-powered vehicles in the state by 2035. With this, California plans to phase out the sale of all gasoline-powered vehicles and to drastically reduce demand for fossil fuel in its fight against climate change. The order directs the California Air Resources Board to develop a plan.
RELATED NEWS
Follow RTT