23 Pensions and other post-employment benefits (continued)
Ahold Annual Report 2012 HÓ
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
December 30, 2012
January 1, 2012
Ahold's
proportionate
Ahold's
proportionate
million
Date of
latest information
Plan
deficit
(surplus)
Ahold's
participation
share of
deficit
(surplus)
Plan
deficit
(surplus)
Ahold's
participation
share of
deficit
(surplus)
FELRA UFCW Food Pension Fund
Jan.
CN
O
CN
828
60.3%
499
862
57.8%
499
New England Teamsters Trucking Industry Pension
Oct.
1, 2011
2,907
3.0%
87
3,099
2.9%
90
UFCW Local 1262 Employers Pension Fund
Jan.
1, 2011
224
21.5%
48
197
19.5%
38
United Food Commercial Workers Intl Union -
Industry Pension Fund
July
1, 2011
(99)
22.0%
(22)
(108)
19.8%
(21)
UFCW Local 1500 Pension Plan
Jan.
CN
O
CN
138
25.8%
36
138
24.8%
34
Warehouse Employees' Union Local 730 Pension Trust Fund
Jan.
CN
O
CN
87
53.7%
47
71
80.7%
58
Other plans
various
5,155
1.2%
37
6,616
0.5%
31
Total
9,240
732
10,875
729
During 2012, Ahold USA withdrew from the Central Pension Fund plan, which on January 1, 2012 had a deficit of €2,264 million of which Ahold's participation was 0.001
As part of Ahold USA's 2012 negotiation of a new collective bargaining agreement with UFCW Locals 400 and 27, a restructuring took place regarding the FELRA UFCW Food Pension
Fund. Under the restructuring, an agreement was reached to create a second pension plan for future service accruals for active Giant Landover employees. Both the existing plan, for past
accrued benefits, and the new plan would be funded by Ahold USA and any other participating employers. Previous contribution levels under the existing plan will be comparable to new
contribution levels for the existing and new plans. It is anticipated that the contribution levels of the new plan will be sufficient to fully fund benefits earned by the employees of Ahold USA and
other participating employers.
During 2012 and 2011the Company contributed €77 million and €69 million, respectively, to multi-employer defined benefit plans, which has been recognized as an expense in the
consolidated income statement. If the underfunded liabilities of these plans are not reduced, either by improved market conditions or collective bargaining changes, increased future payments
by the Company and the other participating employers may result. In 201 3, the Company expects its contributions to increase to €82 million. Moreover, if the Company were to exit certain
markets or otherwise cease making contributions to these funds, the Company could trigger a substantial withdrawal liability. Any adjustment for withdrawal liability will be recorded when it is
probable that a liability exists and the amount can be reasonably estimated. No withdrawal payments were incurred or included in the 2012 and 2011 contributions disclosed above. Ahold's
risk of increased contributions and withdrawal liabilities may be greater if any of the participating employers in an underfunded multi-employer plan withdraw from the plan or, due to
insolvency, are not able to contribute an amount sufficient to fund the underfunded liabilities associated with their participants in the plan.
Defined contribution plans
Ahold also participates in over 39 multi-employer plans that are defined contribution plans on the basis of the terms of the benefits provided. The majority of these plans provide health
and welfare benefits. The Company contributed €219 million to multi-employer defined contribution plans during both 2012 and 2011These contributions are recognized as an expense in
the consolidated income statement and related entirely to continuing operations in 2012 and 2011. These plans vary significantly in size, with contributions to the three largest plans
representing 59% of total contributions.
