Notes to the consolidated financial statements
116
23 Pensions and other post-employment benefits (continued)
-
-
-
-
-
-
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2015
Defined benefit plans
Ahold participates in 12 multi-employer pension plans that are defined benefit plans on the basis of the terms of the benefits provided. The following table presents Ahold's estimate
deficit or surplus. Ahold's participation is the relative amount of its contributions during the year in relation to the total amount of contributions made to the plan. The estimate of Ahold
deficits is based on the latest available information received from these plans, such as the plans' measurement of plan assets and the use of discount rates between 6.5% and 8.0%.
for market trends and conditions through the end of 2015, and does not represent Ahold's direct obligation. While this is our best estimate, based upon information available to us, i
of its proportionate share of each plan's
's net proportionate share of the plans'
The information received has been updated
is imprecise and not necessarily reliable.
January 3, 2016
December 28, 2014
Ahold's
Ahold's
million, except Ahold's participation percentages
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.
1, 2015
27
1,080
60.4%
652
23
887
60.9%
541
Mid-Atlantic UFCW Participating Employers Pension Fund
Jan.
1, 2015
7
3
63.3%
2
7
64.6%
New England Teamsters Trucking Industry Pension
Oct. 1
1, 2014
6
3.1%
5
3.7%
UFCW Local 1262 Employers Pension Fund
Jan. 1
1, 2014
7
206
19.4%
40
5
89
22.9%
20
United Food Commercial Workers Intl Union -
Industry Pension Fund
July
1, 2014
19
(201)
22.1%
(44)
16
(553)
22.1%
(122)
UFCW Local 1500 Pension Plan
Jan.
1, 2015
8
171
27.1%
46
6
119
27.3%
32
Warehouse Employees' Union Local 730 Pension Trust Fund
Jan.
1, 2015
3
110
83.5%
92
2
82
81.8%
67
Other plans
Jan.
1, 2015
7
6,477
0.8%
16
6
4,258
1.2%
2
Total
84
7,846
804
70
4,882
540
During 2015, Stop Shop reached an agreement with UFCW Local #338 whereby Stop Shop was allowed to withdraw from the pension plan. The withdrawal occurred in September and resulted in a $12 million
(€11 million) withdrawal liability. The settlement of the liability will be made in installments with $6 million paid at the time of withdrawal and the second and third installments, of $3 million each, to be paid in May and
October of 2016. In 2014, this plan was aggregated in the Other plans designation above.
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 2016, the Company expects its contributions to increase to €88 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 UFCW Local #338 withdrawal liability payment mentioned above, no other withdrawal payments were incurred or included in the 2015 and 2014 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 40 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 €270 million and €228 million to multi-employer defined contribution plans during both 2015 and 2014, respectively. These contributions are recognized as an expense in the consolidated income statement and
related entirely to continuing operations in 2015 and 2014. These plans vary significantly in size, with contributions to the three largest plans representing 60% of total contributions.
