Albertsons 2016 Annual Report Download - page 88

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NOTE 11—BENEFIT PLANS
Substantially all employees of the Company are covered by various contributory and non-contributory pension, profit sharing or
401(k) plans. The Company’s primary defined benefit pension plan, the SUPERVALU INC. Retirement Plan (the
"SUPERVALU Retirement Plan"), and certain supplemental executive retirement plans were closed to new participants and
service crediting ended for all participants as of December 31, 2007. Pay increases were reflected in the amount of benefit
earned in these plans until December 31, 2012. Most union employees participate in multiemployer retirement plans under
collective bargaining agreements, unless the collective bargaining agreement provides for participation in plans sponsored by
the Company. In addition to sponsoring both defined benefit and defined contribution pension plans, the Company provides
healthcare and life insurance benefits for eligible retired employees under postretirement benefit plans. The Company also
provides certain health and welfare benefits, including short-term and long-term disability benefits, to inactive disabled
employees prior to retirement. The terms of the postretirement benefit plans vary based on employment history, age and date of
retirement. For many retirees, the Company provides a fixed dollar contribution and retirees pay contributions to fund the
remaining cost.
In fiscal 2016, the Company amended the SUPERVALU Retiree Benefit Plan which provides medical, prescription drug, dental
and life benefits, to eliminate benefits provided by the plan for certain participants under a collective bargaining agreement. As
a result of the plan amendment, certain SUPERVALU Retiree Benefit Plan obligations were re-measured using a discount rate
of 4.25 percent and the MP-2015 mortality improvement scale. This re-measurement resulted in a $28 reduction of
postretirement benefit obligations within Pension and other postretirement benefit obligations with a corresponding decrease to
Accumulated other comprehensive loss.
The benefit obligation, fair value of plan assets and funded status of the defined benefit pension plans and other postretirement
benefit plans consisted of the following:
Pension Benefits Other Postretirement
Benefits
2016 2015 2016 2015
Changes in Benefit Obligation
Benefit obligation at beginning of year $ 2,849 $ 2,726 $ 82 $ 81
Plan amendment — — (21)(5)
Service cost — — — 1
Interest cost 106 121 3 4
Actuarial (gain) loss (175) 371 (6) 5
Settlements paid (1)(272) — —
Benefits paid (115)(97)(4)(4)
Benefit obligation at end of year 2,664 2,849 54 82
Changes in Plan Assets
Fair value of plan assets at beginning of year 2,317 2,261 4 —
Actual return on plan assets (109) 260 — —
Employer contributions 27 165 15 4
Plan participants’ contributions — — 2 3
Settlements paid (1)(272) — —
Benefits paid (115)(97)(6)(7)
Other — — — 4
Fair value of plan assets at end of year 2,119 2,317 15 4
Unfunded status at end of year $ (545) $ (532) $ (39) $ (78)
For the defined benefit pension plans, the accumulated benefit obligation is equal to the projected benefit obligation.