Albertsons 2015 Annual Report Download - page 88

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86
The Company expects to contribute approximately $55 to $65 to its defined benefit pension plans and postretirement benefit
plans in fiscal 2016.
The Company’s funding policy for the defined benefit pension plans is to contribute the minimum contribution required under
the Employee Retirement Income Security Act of 1974, as amended, the Pension Protection Act of 2006 and other applicable
laws, as determined by the Company’s external actuarial consultant with consideration given to contributing larger amounts.
The Company had agreed to make $100 in aggregate contributions to the SUPERVALU Retirement Plan in excess of the
minimum required contributions pursuant to a term sheet entered into with the PBGC in connection with the sale of NAI. On
September 11, 2014, the Company, AB Acquisition and the PBGC amended the term sheet. Pursuant to that amendment, the
Company made excess contributions of $47 to the SUPERVALU Retirement Plan and the Company no longer has any
obligations or restrictions under the term sheet. The Company will recognize contributions in accordance with applicable
regulations, with consideration given to recognition for the earliest plan year permitted.
At the Company’s discretion, additional funds may be contributed to the pension plan. The Company may accelerate
contributions or undertake contributions in excess of the minimum requirements from time to time subject to the availability of
cash in excess of operating and financing needs or other factors as may be applicable. The Company assesses the relative
attractiveness of the use of cash including such factors as expected return on assets, discount rates, cost of debt, reducing or
eliminating required PBGC variable rate premiums or the ability to achieve exemption from participant notices of
underfunding.
Lump Sum Pension Settlement
During the third quarter of fiscal 2015, the Company made lump sum settlement payments to certain deferred vested pension
plan participants under a lump sum payment option window. The payments were equal to the present value of the participant’s
pension benefits, and were made to certain former employees who were deferred vested participants in the SUPERVALU
Retirement Plan, who had not yet begun receiving monthly pension benefit payments and who elected to participate in the lump
sum payment option window. In fiscal 2015, the SUPERVALU Retirement Plan made lump sum settlement payments of
approximately $272. The lump sum settlement payments resulted in a non-cash pension settlement charge of $64 from the
acceleration of a portion of the accumulated unrecognized actuarial loss. As a result of the lump sum settlements, the
SUPERVALU Retirement Plan assets and liabilities were re-measured at November 29, 2014 using a discount rate of 4.1
percent, an expected rate of return on plan assets of 6.5 percent and the RP-2014 Generational Mortality Table. The November
29, 2014 re-measurement resulted in an increase to Accumulated other comprehensive loss of $200 pre-tax ($141 after-tax) and
a corresponding decrease to the SUPERVALU Retirement Plan's funded status.
Estimated Future Benefit Payments
The estimated future benefit payments to be made from the Company’s defined benefit pension and other postretirement benefit
plans, which reflect expected future service, are as follows:
Fiscal Year Pension Benefits
Other Postretirement
Benefits
2016 $ 139 $ 6
2017 129 5
2018 137 5
2019 142 5
2020 153 6
Years 2021-2025 843 28
Defined Contribution Plans
The Company sponsors several defined contribution and profit sharing plans pursuant to Section 401(k) of the Internal Revenue
Code. Employees may contribute a portion of their eligible compensation to the plans on a pre-tax basis. The Company matches
a portion of employee contributions by contributing cash into the investment options selected by the employees. The total
amount contributed by the Company to the plans is determined by plan provisions or at the discretion of the Company. Total
employer contribution expenses for these plans were $16, $11 and $17 for fiscal 2015, 2014 and 2013, respectively. Matching
contributions were reduced or eliminated in January 2013 for most employees. The Company adopted and made a discretionary
match for fiscal 2015 for employees who had their matching contributions eliminated. Plan investment options no longer
include shares of the Company's common stock.