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Associate Retirement Plans
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Associate Retirement Plans

Note 10 – Associate Retirement Plans

The Company provides salary deferral defined contribution plans to substantially all of the Company’s associates not covered by CBAs. Associates covered by CBAs at the Company’s Columbus, Georgia; Norfolk, Virginia; and Landover, Maryland facilities all participate in a defined contribution plan; the remaining associates covered under CBAs participate in a multi-employer pension plan. The Company’s former non-contributory pension plan has been terminated.

Defined Contribution Plans

Expense for employer matching contributions made to defined contribution plans totaled $12.0 million, $11.8 million and $12.2 million in 2022, 2021 and 2020, respectively.

Executive Compensation Plans

The Company has a deferred compensation plan for a select group of management personnel or highly compensated associates. The plan is unfunded and permits participants to defer receipt of a portion of their base salary, annual bonus, or long-term incentive compensation which would otherwise be paid to them. The deferred amounts, plus earnings, are distributed following the associate’s termination of employment. Earnings are based on the performance of hypothetical investments elected by the participant from a portfolio of investment options.

The Company holds variable universal life insurance policies on certain key associates intended to fund distributions under the deferred compensation plan referenced above. The net cash surrender value of approximately $4.4 million and $4.3 million at December 31, 2022 and January 1, 2022, respectively, is recorded in “Other assets, net” in the consolidated balance sheets. These policies have an aggregate amount of life insurance coverage of approximately $15.0 million.

Defined Benefit Plans

On February 28, 2018, the Company’s Board of Directors granted approval to proceed with terminating the SpartanNash Company Pension Plan (the “Pension Plan”), a frozen defined benefit pension plan. The Pension Plan was terminated on July 31, 2018 and the distribution of assets to plan participants occurred in 2019. In 2020, the Company realized gains of $1.2 million related to refunds from the annuity provider to the Pension Plan associated with the final reconciliation of participant data. The remaining plan asset balance of $2.7 million was used to fund employer match liabilities associated with defined contribution plans in 2021.

Postretirement Medical Plans

SpartanNash Company and certain subsidiaries provide healthcare benefits to retired associates under the SpartanNash Company Retiree Medical Plan (the “Retiree Medical Plan” or "Plan"). Former Spartan Stores, Inc. associates hired prior to January 1, 2002 who were not covered by CBAs during their employment, who have at least 10 years of service and have attained age 55 upon retirement qualify as “covered associates.” Covered associates who retired prior to March 31, 1992 receive Medicare supplemental benefits. Covered associates retiring after April 1, 1992 are eligible for monthly postretirement healthcare benefits of $5 multiplied by the associate’s years of service. This benefit is provided in the form of a credit against their monthly insurance premium or Medicare supplemental insurance. The retiree is responsible to pay the balance of the premium.

Effective June 30, 2022, the Company has amended the Retiree Medical Plan. In connection with the amendment, the Company will make lump sum cash payments to all active and retired participants in lieu of future monthly benefits and reimbursements previously offered under the Plan. As a result of the amendment, the Plan obligation was remeasured, resulting in a reduction to the obligation of $6.6 million and a corresponding prior service credit in AOCI, which will be amortized to net periodic postretirement benefit income over the remaining period until the final payment on July 1, 2024.

On July 1, 2022, the Company made lump sum payments to retired participants totaling $2.0 million. The payments constituted a partial settlement of the Plan, which resulted in the recognition within net periodic postretirement expense of $0.7 million related to the net actuarial loss within AOCI. The remaining payments which relate to active participants are expected to be made in two equal installments on or about July 1, 2023, and July 1, 2024.

The following tables set forth the actuarial present value of benefit obligations, funded status, changes in benefit obligations and plan assets, weighted average assumptions used in actuarial calculations and components of net periodic benefit costs for the Company’s significant pension and postretirement benefit plans, excluding multi-employer plans. The prepaid, current accrued, and noncurrent accrued benefit costs associated with pension and postretirement benefits are reported in “Prepaid expenses and other current assets,” “Other assets, net,” “Accrued payroll and benefits,” and “Other long-term liabilities,” respectively, in the consolidated balance sheets.

 

 

 

 

Pension Plan

 

 

Retiree Medical Plan

 

 

 

 

 

December 31,

 

 

January 1,

 

 

December 31,

 

 

January 1,

 

(In thousands, except percentages)

 

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

Funded Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected/Accumulated benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

 

$

 

—

 

 

$

 

—

 

 

$

 

11,031

 

 

$

 

11,909

 

Service cost

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

76

 

 

 

 

187

 

Interest cost

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

185

 

 

 

 

226

 

Actuarial loss (gain)

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

30

 

 

 

 

(849

)

Plan amendment

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(6,614

)

 

 

 

—

 

Benefits paid

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(2,296

)

 

 

 

(442

)

Balance at end of year

 

 

 

$

 

—

 

 

$

 

—

 

 

$

 

2,412

 

 

$

 

11,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

 

$

 

—

 

 

$

 

2,689

 

 

$

 

—

 

 

$

 

—

 

Company contributions

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

2,296

 

 

 

 

442

 

Excess asset transfer

 

 

 

 

 

—

 

 

 

 

(2,689

)

 

 

 

—

 

 

 

 

—

 

Benefits paid

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(2,296

)

 

 

 

(442

)

Balance at end of year

 

 

 

$

 

—

 

 

$

 

—

 

 

$

 

—

 

 

$

 

—

 

Unfunded status

 

 

 

$

 

—

 

 

$

 

—

 

 

$

 

(2,412

)

 

$

 

(11,031

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components of net amount recognized in consolidated balance sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

$

 

—

 

 

$

 

—

 

 

$

 

(1,270

)

 

$

 

(496

)

Noncurrent liabilities

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(1,142

)

 

 

 

(10,535

)

Net liability

 

 

 

$

 

—

 

 

$

 

—

 

 

$

 

(2,412

)

 

$

 

(11,031

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

 

$

 

—

 

 

$

 

—

 

 

$

 

743

 

 

$

 

1,653

 

Prior service credit

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(4,960

)

 

 

 

—

 

Accumulated other comprehensive (income) loss

 

$

 

—

 

 

$

 

—

 

 

$

 

(4,217

)

 

$

 

1,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average assumptions at measurement date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

 

 

N/A

 

 

 

N/A

 

 

 

 

5.34

%

 

 

 

2.90

%

Ultimate health care cost trend rate

 

 

 

 

N/A

 

 

 

N/A

 

 

 

N/A

 

 

 

 

4.50

%

 

 

Pension Plan

 

 

Retiree Medical Plan

 

(In thousands, except percentages)

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

Components of net periodic benefit (income) cost:

 

Service cost

$

 

—

 

 

$

 

—

 

 

$

 

—

 

 

$

 

76

 

 

$

 

187

 

 

$

 

182

 

Interest cost

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

185

 

 

 

 

226

 

 

 

 

303

 

Amortization of prior service credit

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(1,653

)

 

 

 

—

 

 

 

 

—

 

Gain on reconciliation with annuity provider

 

 

—

 

 

 

 

—

 

 

 

 

(1,193

)

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Recognized actuarial net loss

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

200

 

 

 

 

230

 

 

 

 

104

 

Net periodic benefit (income) expense

$

 

—

 

 

$

 

—

 

 

$

 

(1,193

)

 

$

 

(1,192

)

 

$

 

643

 

 

$

 

589

 

Settlement expense

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

740

 

 

 

 

—

 

 

 

 

—

 

Total net periodic benefit (income) cost

$

 

—

 

 

$

 

—

 

 

$

 

(1,193

)

 

$

 

(452

)

 

$

 

643

 

 

$

 

589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average assumptions used to determine net periodic benefit (income) cost:

 

Discount rate

N/A

 

 

N/A

 

 

N/A

 

 

 

 

2.90

%

 

 

 

2.57

%

 

 

 

3.26

%

 

Assumed healthcare cost trend rates have a significant effect on the amounts reported for the Retiree Medical Plan. Assumed current healthcare cost trend rates used to determine net periodic benefit cost were as follows:

 

2022

 

2021

 

 

2020

 

Post-65

 

N/A

 

 

 

7.00

%

 

 

 

7.50

%

The following estimated benefit payments are expected to be paid in the following fiscal years:

(In thousands)

2023

 

 

2024

 

Post-retirement medical benefits

$

 

1,270

 

 

$

 

1,270

 

Multi-Employer Health and Welfare Plans

In addition to the plans described above, the Company participates in the Michigan Conference of Teamsters and Ohio Conference of Teamsters Health and Welfare plans. The Company contributes to these multi-employer health and welfare plans under the terms contained in existing CBAs, including the requisite contribution amounts set forth within such CBAs. The health and welfare plans provide medical, dental, pharmacy, vision, and other ancillary benefits to active associates and retirees, as determined under the terms of the plan. Although the plans may provide certain benefits to retired employees, the Company’s only contribution obligation is to make contributions in amounts tied to the hours worked by its active employees. As a result, the plan does not constitute a postretirement benefit plan of the Company. Because the plans aggregate contributions from multiple employers, the Company is unable to determine how much of its contributions are allocated to benefits paid to its active employees and those, if any, that are allocated to benefits paid to other employer’s active employees and/or postretirement benefits. These types of plans often have a significant surplus of funds held in reserve in excess of claims incurred, and there is no potential withdrawal liability related to the Company’s participation in the plans. With respect to the Company’s participation in these plans, expense is recognized as contributions are made. The Company contributed $13.4 million, $13.2 million and $13.7 million to these plans in 2022, 2021 and 2020, respectively.

Multi-Employer Pension Plan

The Company also contributes to the Central States Plan, a multi-employer plan defined previously, under the terms of CBAs that cover its union-represented associates, including the requisite contribution amounts set forth within such CBAs. The Company is party to four CBAs that require contributions to the Central States Plan with expiration dates ranging from February 2024 to April 2026. These CBAs cover warehouse personnel and drivers in Grand Rapids, Michigan and Bellefontaine and Lima, Ohio. With respect to the Company’s participation in the Central States Plan (EIN 36-60442343 / Pension Plan Number 001), expense is recognized as contributions are made to the Central States Plan. The Company contributed $12.3 million, $13.5 million and $14.1 million to the Central States Plan in 2022, 2021 and 2020, respectively. The contributions made by the Company represent less than five percent of the Plan’s total contributions in 2022.

Refer to Note 8, for further information regarding the Company’s participation in the Central States Plan. As of the date the consolidated financial statements were issued, an annual report for the Central States Plan on IRS Form 5500 was not publicly available for the plan year ended December 31, 2022.