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Associate Retirement Plans
 12 Months Ended
Dec. 28, 2024
Retirement Benefits [Abstract]  
Associate Retirement Plans

Note 12 – 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; and Norfolk, Virginia; 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 $11.9 million, $12.0 million and $12.0 million in 2024, 2023 and 2022, 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 would 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 was amortized to net periodic postretirement benefit income over the remaining period until the final payment was made on June 28, 2024.

On June 28, 2024, the Company made the final lump sum payment of $1.3 million to all remaining active or retired participants, which constituted a final settlement of the Plan. On July 1, 2023, the Company made a lump sum payment to retired participants totaling $1.3 million, which constituted a partial settlement of the Plan. The payments resulted in the recognition within net periodic postretirement expense of $0.1 million and $0.3 million on June 28, 2024 and July 1, 2023, respectively, related to the net actuarial loss within AOCI.

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 28,

 

 

December 30,

 

(In thousands, except percentages)

 

 

 

2024

 

 

2023

 

Funded Status

 

 

 

 

 

 

 

 

 

 

Projected/Accumulated benefit obligation:

 

 

 

 

 

 

 

Balance at beginning of year

 

 

 

$

 

1,236

 

 

$

 

2,412

 

Interest cost

 

 

 

 

 

17

 

 

 

 

85

 

Actuarial loss

 

 

 

 

 

12

 

 

 

 

23

 

Benefits paid

 

 

 

 

 

(1,265

)

 

 

 

(1,284

)

Balance at end of year

 

 

 

$

 

—

 

 

$

 

1,236

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets:

 

 

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

 

$

 

—

 

 

$

 

—

 

Company contributions

 

 

 

 

 

1,265

 

 

 

 

1,284

 

Benefits paid

 

 

 

 

 

(1,265

)

 

 

 

(1,284

)

Balance at end of year

 

 

 

$

 

—

 

 

$

 

—

 

Unfunded status

 

 

 

$

 

—

 

 

$

 

(1,236

)

 

 

 

 

 

 

 

 

 

 

 

Components of net amount recognized in consolidated balance sheets:

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

$

 

—

 

 

$

 

(1,236

)

Net liability

 

 

 

$

 

—

 

 

$

 

(1,236

)

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in AOCI:

 

 

 

 

 

 

 

Net actuarial loss

 

 

 

$

 

—

 

 

$

 

217

 

Prior service credit

 

 

 

 

 

—

 

 

 

 

(1,653

)

Accumulated other comprehensive income

 

$

 

—

 

 

$

 

(1,436

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average assumptions at measurement date:

 

 

 

 

 

 

 

Discount rate

 

 

 

 

N/A

 

 

 

 

5.65

%

Ultimate health care cost trend rate

 

 

 

 

N/A

 

 

 

N/A

 

 

 

Retiree Medical Plan

 

(In thousands, except percentages)

2024

 

 

2023

 

 

2022

 

Components of net periodic benefit income:

 

 

 

 

 

 

 

 

 

 

 

Service cost

$

 

—

 

 

$

 

—

 

 

$

 

76

 

Interest cost

 

 

17

 

 

 

 

85

 

 

 

 

185

 

Amortization of prior service credit

 

 

(1,653

)

 

 

 

(3,307

)

 

 

 

(1,653

)

Recognized actuarial net loss

 

 

94

 

 

 

 

249

 

 

 

 

200

 

Net periodic benefit income

$

 

(1,542

)

 

$

 

(2,973

)

 

$

 

(1,192

)

Settlement expense

 

 

135

 

 

 

 

299

 

 

 

 

740

 

Total net periodic benefit income

$

 

(1,407

)

 

$

 

(2,674

)

 

$

 

(452

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average assumptions used to determine net periodic benefit income:

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

5.65

%

 

 

 

5.62

%

 

 

 

2.90

%

 

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 $15.9 million, $17.0 million and $13.4 million to these plans in 2024, 2023 and 2022, 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 five CBAs that require contributions to the Central States Plan with expiration dates ranging from April 2026 to February 2030. 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 $13.5 million, $13.1 million and $12.3 million to the Central States Plan in 2024, 2023 and 2022, respectively. The contributions made by the Company represent less than five percent of the Plan’s total contributions in 2024.

Refer to Note 10, 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, 2024.