In a July 21st announcement, the Kroger Company, Albertsons Company and the Stop & Shop subsidiary of Ahold Delhaize will transition their workers from the United Food and Commercial Workers (UFCW) International Union Industry Pension Fund.  Employees will participate in Company-operated variable annuity pension plans (VAPPs) following approval by the trustees of the UFCW National Pension Fund.  The agreement involves thirty-four local UFCW unions covering approximately 50,000 workers.

Gary Millerchip, CFO of Kroger stated, "in an environment where pensions are faced with funding challenges, we are pleased to have reached a tentative agreement that will protect benefits for our associates".  Kroger anticipates paying a pre-tax withdrawal liability of $960 million to satisfy obligations for existing employees and retirees. The Company will also make a $125 million contribution to the variable annuity pension plan. 

Ahold Delhaize will incur a pre-tax liability of $649 million and Albertsons will pay $286 million to the UFCW National Plan and fund the new program.  Payments to UFCW by the three Companies will be phased over three years.

In commenting on the new arrangement, a representative of Ahold Delhaize stated, "this new plan is designed to protect the benefit accrual of participants with a significantly reduced risk of the plan being under-funded and to improve visibility on annual contributions.

The agreement will stabilize pension benefit contributions by the three companies through mid- 2028.