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Associate Retirement Plans
 12 Months Ended
Dec. 30, 2023
Retirement Benefits [Abstract]  
Associate Retirement Plans

Note 11 – 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.

Defined Contribution Plans

Expense for employer matching contributions made to defined contribution plans totaled $12.0 million, $12.0 million and $11.8 million in 2023, 2022 and 2021, 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.

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.” 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 effective June 30, 2022, 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, 2023 and July 1, 2022, the Company made lump sum payments to retired participants totaling $1.3 million and $2.0 million, respectively. The payments constituted partial settlements of the Plan, which resulted in the recognition within net periodic postretirement expense of $0.3 million and $0.7 million on July 1, 2023 and July 1, 2022, respectively, related to the net actuarial loss within AOCI. The remaining payment, which relates to active participants, is expected to be made on or about 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 postretirement benefit plans, excluding multi-employer plans. The current accrued, and noncurrent accrued benefit costs associated with postretirement benefits are reported in “Accrued payroll and benefits,” and “Other long-term liabilities,” respectively, in the consolidated balance sheets.

 

 

 

 

Retiree Medical Plan

 

 

 

 

 

December 30,

 

 

December 31,

 

(In thousands, except percentages)

 

 

 

2023

 

 

2022

 

Funded Status

 

 

 

 

 

 

 

 

 

 

Projected/Accumulated benefit obligation:

 

 

 

 

 

 

 

Balance at beginning of year

 

 

 

$

 

2,412

 

 

$

 

11,031

 

Service cost

 

 

 

 

 

—

 

 

 

 

76

 

Interest cost

 

 

 

 

 

85

 

 

 

 

185

 

Actuarial loss

 

 

 

 

 

23

 

 

 

 

30

 

Plan amendment

 

 

 

 

 

—

 

 

 

 

(6,614

)

Benefits paid

 

 

 

 

 

(1,284

)

 

 

 

(2,296

)

Balance at end of year

 

 

 

$

 

1,236

 

 

$

 

2,412

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets:

 

 

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

 

$

 

—

 

 

$

 

—

 

Company contributions

 

 

 

 

 

1,284

 

 

 

 

2,296

 

Benefits paid

 

 

 

 

 

(1,284

)

 

 

 

(2,296

)

Balance at end of year

 

 

 

$

 

—

 

 

$

 

—

 

Unfunded status

 

 

 

$

 

(1,236

)

 

$

 

(2,412

)

 

 

 

 

 

 

 

 

 

 

 

Components of net amount recognized in consolidated balance sheets:

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

$

 

(1,236

)

 

$

 

(1,270

)

Noncurrent liabilities

 

 

 

 

 

—

 

 

 

 

(1,142

)

Net liability

 

 

 

$

 

(1,236

)

 

$

 

(2,412

)

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in AOCI:

 

 

 

 

 

 

 

Net actuarial loss

 

 

 

$

 

217

 

 

$

 

743

 

Prior service credit

 

 

 

 

 

(1,653

)

 

 

 

(4,960

)

Accumulated other comprehensive income

 

$

 

(1,436

)

 

$

 

(4,217

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average assumptions at measurement date:

 

 

 

 

 

 

 

Discount rate

 

 

 

 

 

5.65

%

 

 

 

5.34

%

Ultimate health care cost trend rate

 

 

 

 

N/A

 

 

 

N/A

 

 

 

 

Retiree Medical Plan

 

(In thousands, except percentages)

2023

 

 

2022

 

 

2021

 

Components of net periodic benefit (income) cost:

 

 

 

 

 

 

 

 

 

 

 

Service cost

$

 

—

 

 

$

 

76

 

 

$

 

187

 

Interest cost

 

 

85

 

 

 

 

185

 

 

 

 

226

 

Amortization of prior service credit

 

 

(3,307

)

 

 

 

(1,653

)

 

 

 

—

 

Recognized actuarial net loss

 

 

249

 

 

 

 

200

 

 

 

 

230

 

Net periodic benefit (income) expense

$

 

(2,973

)

 

$

 

(1,192

)

 

$

 

643

 

Settlement expense

 

 

299

 

 

 

 

740

 

 

 

 

—

 

Total net periodic benefit (income) cost

$

 

(2,674

)

 

$

 

(452

)

 

$

 

643

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

5.62

%

 

 

 

2.90

%

 

 

 

2.57

%

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:

 

2023

 

2022

 

2021

 

Post-65

 

N/A

 

 

N/A

 

 

 

7.00

%

The Company expects to make post-retirement medical benefit payments of $1.3 million in 2024. The Company is not currently expecting to make any future post-retirement medical benefit payments after 2024.

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 $17.0 million, $13.4 million and $13.2 million to these plans in 2023, 2022 and 2021, 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 January 2025 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 $13.1 million, $12.3 million and $13.5 million to the Central States Plan in 2023, 2022 and 2021, respectively. The contributions made by the Company represent less than five percent of the Plan’s total contributions in 2023.

Refer to Note 9, 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, 2023.