Notes to the consolidated financial statements
112
23 Pensions and other post-employment benefits (continued)
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Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2014
December 28, 2014
December 29, 2013
Ahold's
Ahold's
millior
Date of
latest information
Annual
contributions
Plan
deficit
(surplus)
Ahold's
participation
proportionate
share of
deficit
(surplus)
Annual
contributions
Plan
deficit
(surplus)
Ahold's
participation
proportionate
share of
deficit
(surplus)
FELRA UFCW Food Pension Fund
Jan.
2014
23
887
60.9%
541
26
716
61.2%
438
Mid-Atlantic UFCW Participating Employers Pension Fund
Jan.
2014
7
64.6%
6
New England Teamsters Trucking Industry Pension
Oct. 1
2013
5
3.7%
6
UFCW Local 1262 Employers Pension Fund
Jan. 1
2013
5
89
22.9%
20
6
167
22.6%
38
United Food Commercial Workers Intl Union -
Industry Pension Fund
July
2013
16
(553)
22.1%
(122)
17
(357)
21.9%
(78)
UFCW Local 1500 Pension Plan
Jan. 1
2014
6
119
27.3%
32
6
132
26.8%
35
Warehouse Employees' Union Local 730 Pension Trust Fund
Jan. 1
1, 2014
2
82
81.8%
67
2
66
59.5%
39
Other plans
various
6
4,258
1.2%
2
5
3,699
1.3%
9
Total
70
4,882
540
74
4,423
481
These were new plans in 2013 and Ahold had not yet received the valuation reports from the plan administrators.
Following a restructuring of the FELRA UFCW Food Pension Fund, the Mid-Atlantic UFCW Participating Employers Pension Fund was created for future service accruals for active Giant Landover employees. Both plans are
funded by Ahold USA and any other participating employers. It is anticipated that the contribution levels of the Mid-Atlantic UFCW Participating Employers Pension Fund will be sufficient to fully fund benefits earned by the
employees of Ahold USA and other participating employers.
During 2013, Stop Shop reached an agreement with the New England Teamsters and Trucking Industry Pension Fund (NETTI) to settle Stop Shop's pension liabilities in the fund. This agreement followed NETTI's
restructuring to create a new future benefit service "pool." Employers who participate in the new pool will be responsible only for the pension benefits of their own employees, without regard to any previous fund liabilities in the
original pension pool. Under the settlement agreement, Stop Shop has moved its employees into the new pool, effective March 31, 2013, without any loss of benefits for its employees and will settle its liability and payment
obligations in the original pension pool through the payment of $100 million (€76 million), payable in two equal installments of $50 million. The first installment was paid on June 22, 2013, and the second installment is due by
April 30, 2025.
If the underfunded liabilities of the multi-employer pension 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. However, all future increases will be subject to the collective bargaining process. In 2015, the Company expects its contributions to increase to €79 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. Except for the NETTI withdrawal liability payment mentioned above, no other withdrawal payments were incurred or included in the 2014 and 2013 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 42 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 €228 million and €240 million to multi-employer defined contribution plans during both 2014 and 2013, respectively. These contributions are recognized as an expense in the consolidated income statement and
related entirely to continuing operations in 2014 and 2013. These plans vary significantly in size, with contributions to the three largest plans representing 62% of total contributions.