Daily Labor Report®

Kroger Employees Ratify Agreement on Pension Fund Withdrawal

Nov. 30, 2020, 9:39 PM

Kroger employees in 14 divisions ratified an agreement to withdraw from the UFCW International Union-Industry Pension Fund.

  • Kroger to pay the fund a withdrawal liability of $962m on pretax basis in installment payments over the next three years and contribute $27m to a transition reserve in the new variable annuity pension plan; on after-tax basis, the payments total ~$760m
  • Kroger will incur a 4Q charge of about 98c/share on GAAP basis; the agreement doesn’t affect adjusted earnings for 2020
  • Company “continues to generate strong free cash flow”
  • NOTE: July 21, Kroger in Tentative Pact With UFCW Local Unions on...

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