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Multiemployer Benefit Plans
 12 Months Ended
Jan. 03, 2015
Compensation and Retirement Disclosure [Abstract]  
Multiemployer Benefit Plans
Employee Benefit Plans
Pension Plans  The Company maintains defined benefit, non-contributory retirement plans for substantially all of its employees not participating in multiemployer pension plans. Safeway recognizes the funded status of its retirement plans on its consolidated balance sheet.
Other Post-Retirement Benefits  In addition to the Company’s pension plans, the Company sponsors plans that provide post-retirement medical and life insurance benefits to certain employees. Retirees share a portion of the cost of the post-retirement medical plans. Safeway pays all the costs of the life insurance plans. The Company also sponsors a Retirement Restoration Plan that provides death benefits and supplemental income payments for senior executives after retirement. All of these Other Post-Retirement Benefit Plans are unfunded.
Canadian Pension and Other Post-Retirement Plans  Sobeys assumed Safeway's Canadian pension and post-retirement plan obligations as part of the overall purchase of Safeway's Canadian operations in November 2013. Accordingly, the activity in these plans is not included in this footnote unless otherwise noted.
Beginning in 2013, the Company maintains a defined contribution plan for Safeway’s continuing employees in Canada. The plan provides an annual retirement benefit into a fund that is managed by the employee. Plan contributions are based on the employees age, earnings and years of participation in the plan.  The Company make also make discretionary contributions.  Contributions to the defined contribution plan totaled $0.8 million in 2014 and $0.1 million in 2013.
The following table provides a reconciliation of the changes in the retirement plans’ benefit obligation and fair value of assets over the two-year period ended January 3, 2015 and a statement of the funded status as of year-end 2014 and year-end 2013 (in millions): 
 
Pension

Other Post-Retirement Benefits
  
2014
2013

2014
2013
Change in projected benefit obligation:





Beginning balance
$
2,023.4

$
2,635.4


$
79.5

$
135.0

Service cost
42.5

42.0


0.9

0.7

Interest cost
96.4

85.4


3.4

3.2

Plan amendments
0.2

0.2




—

Actuarial loss (gain)
254.0

(56.3
)

12.4

(5.0
)
Plan participant contributions
—

—


0.9

1.0

Benefit payments
(172.5
)
(133.3
)

(7.3
)
(7.2
)
Change in projected benefit obligation related to CSL
—

(39.5
)

—

1.3

Disposal of CSL
—

(510.5
)

—

(49.5
)
Ending balance
$
2,244.0

$
2,023.4


$
89.8

$
79.5

Change in fair value of plan assets:





Beginning balance
$
1,644.2

$
1,845.7


$
—

$
—

Actual return on plan assets
82.6

268.6


—

—

Employer contributions
6.9

50.1


6.4

6.2

Plan participant contributions
—

—


0.9

1.0

Benefit payments
(172.5
)
(133.3
)

(7.3
)
(7.2
)
Change in fair value of plan assets related to CSL
—

32.8


—

—

Disposal of CSL
—

(419.7
)

—

—

Ending balance
$
1,561.2

$
1,644.2


$
—

$
—

Components of net amount recognized in financial position:




Other accrued liabilities (current liability)
$
(1.1
)
$
(1.1
)

$
(6.4
)
$
(6.2
)
Pension and post-retirement benefit obligations (non-current liability)
(681.7
)
(378.1
)

(83.4
)
(73.3
)
Funded status
$
(682.8
)
$
(379.2
)

$
(89.8
)
$
(79.5
)

Amounts recognized in accumulated other comprehensive income consist of the following (in millions):
 
Pension

Other Post-Retirement
Benefits
  
2014
2013

2014
2013
Net actuarial loss
$
611.8

$
365.0


$
22.9

$
10.6

Prior service cost (credit)
4.8

14.3


(1.0
)
(1.1
)
 
$
616.6

$
379.3


$
21.9

$
9.5


Information for Safeway’s pension plans, all of which have an accumulated benefit obligation in excess of plan assets as of year-end 2014 and 2013, is shown below (in millions):

2014
2013
Projected benefit obligation
$
2,244.0

$
2,023.4

Accumulated benefit obligation
2,179.6

1,978.3

Fair value of plan assets
1,561.2

1,644.2


The following tables provide the components of net expense for the retirement plans and other changes in plan assets and benefit obligations recognized in other comprehensive income (in millions): 
 
Pension

Other Post-Retirement
Benefits
Components of net expense:
2014
2013
2012

2014
2013
2012
Estimated return on plan assets
$
(119.3
)
$
(107.9
)
$
(101.0
)

$
—

$
—

$
—

Service cost
42.5

42.0

40.3


0.9

0.7

0.6

Interest cost
96.4

85.4

91.8


3.4

3.2

3.6

Settlement loss
—

—

5.9


—

—

—

Curtailment loss
—

—

1.8


—

—

—

Amortization of prior service cost (credit)
9.7

12.8

15.3


(0.1
)
(0.1
)
(0.1
)
Amortization of net actuarial loss
42.3

77.8

70.3


0.4

0.9

0.5

Net expense
$
71.6

$
110.1

$
124.4


$
4.6

$
4.7

$
4.6









Changes in plan assets and benefit obligations recognized in other comprehensive income:
 
 
 

 
 
 
Net actuarial loss (gain)
$
290.6

$
(216.9
)
$
97.8


$
12.7

$
(5.0
)
$
6.6

Recognition of net actuarial loss
(42.3
)
(77.8
)
(76.3
)

(0.4
)
(0.9
)
(0.5
)
Prior service credit
0.2

0.2

0.5


—

—

—

Recognition of prior service (cost) credit
(9.7
)
(12.8
)
(17.0
)

0.1

0.1

0.1

Changes relating to discontinued operations
—

(55.5
)
9.0


—

(3.0
)
(5.0
)
Total recognized in other comprehensive income
238.8

(362.8
)
14.0


12.4

(8.8
)
1.2

Total net expense and changes in plan assets and benefit obligations recognized in comprehensive income
$
310.4

$
(252.7
)
$
138.4


$
17.0

$
(4.1
)
$
5.8


Prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Actuarial gains and losses are amortized over the average remaining service life of active participants when the accumulation of such gains and losses exceeds 10% of the greater of the projected benefit obligation and the fair value of plan assets. The Company uses its fiscal year-end date as the measurement date for its plans.
The actuarial assumptions used to determine year-end projected benefit obligations for pension plans were as follows:
 

2014

2013

2012

Discount rate:



United States plans
4.00
%
4.90
%
4.20
%
Canadian plans
NA

NA

4.00
%
Combined weighted-average rate
NA

NA

4.16
%
Rate of compensation increase:



United States plans
3.00
%
3.00
%
3.00
%
Canadian plans
NA

NA

2.75
%

The actuarial assumptions used to determine net periodic benefit costs for pension plans were as follows: 

2014

2013

2012

Discount rate
4.90
%
4.20
%
4.94
%
Expected return on plan assets:
7.50
%
7.50
%
7.75
%
Rate of compensation increase
3.00
%
3.00
%
3.00
%

The Company has adopted and implemented an investment policy for the defined benefit pension plans that incorporates a strategic long-term asset allocation mix designed to meet the Company’s long-term pension requirements. This asset allocation policy is reviewed annually and, on a regular basis, actual allocations are rebalanced to the prevailing targets. The following table summarizes actual allocations for Safeway’s plans at year-end: 
 
 
Plan assets
Asset category
Target

2014

2013

Equity
65
%
65.8
%
66.4
%
Fixed income
35
%
32.9
%
31.9
%
Cash and other
—

1.3
%
1.7
%
Total
100
%
100.0
%
100.0
%


The investment policy also emphasizes the following key objectives: (1) maintain a diversified portfolio among asset classes and investment styles; (2) maintain an acceptable level of risk in pursuit of long-term economic benefit; (3) maximize the opportunity for value-added returns from active investment management while establishing investment guidelines and monitoring procedures for each investment manager to ensure the characteristics of the portfolio are consistent with the original investment mandate; and (4) maintain adequate controls over administrative costs.
Expected return on pension plan assets is based on historical experience of the Company’s portfolio and the review of projected returns by asset class on broad, publicly traded equity and fixed-income indices, as well as target asset allocation. Safeway’s target asset allocation mix is designed to meet the Company’s long-term pension requirements.
The fair value of Safeway’s pension plan assets at January 3, 2015, excluding pending transactions of $41.5 million, by asset category are as follows (in millions): 
 
Fair Value Measurements
Asset category:
Total
Quoted prices in active markets
for identical
assets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Cash and cash equivalents (1)
$
9.6

$
1.3

$
8.3

$
—

Short-term investment collective trust (2)
47.5

—

47.5

—

Common and preferred stock: (3)




Domestic common and preferred stock
293.6

293.5

0.1

—

International common stock
34.6

34.6

—

—

Common collective trust funds (2)
523.6

—

523.6

—

Corporate bonds (4)
121.3

—

120.6

0.7

Mortgage- and other asset-backed securities(5)
63.4

—

63.4

—

Mutual funds (6)
183.2

34.2

149.0

—

U.S. government securities (7)
263.8

—

263.7

0.1

Other securities (8)
62.8

0.7

37.6

24.5

Total
$
1,603.4

$
364.3

$
1,213.8

$
25.3


(1) 
The carrying value of these items approximates fair value.
(2) 
These investments are valued based on the Net Asset Value (“NAV”) of the underlying investments and are provided by the fund issuers.
(3) 
The fair value of common stock is based on the exchange quoted market prices. When quoted prices are not available for preferred stock, an industry standard valuation model is used which maximizes observable inputs.
(4) 
The fair value of corporate bonds is generally based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the fair value is based upon an industry valuation model, which maximizes observable inputs.
(5) 
The fair value of mortgage- and other asset-backed securities is generally based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for comparable securities, the fair value is based upon an industry model which maximizes observable inputs.
(6) 
These investments are publicly traded investments which are valued using the NAV. The NAV of the mutual funds is a quoted price in an active market. The NAV is determined once a day after the closing of the exchange based upon the underlying assets in the fund, less the fund’s liabilities, expressed on a per-share basis.
(7) 
The fair value of U.S. government securities is based on quoted market prices when available. When quoted prices are not available, the fair value of U.S. government securities is based on yields currently available on comparable securities or on an industry valuation model which maximizes observable inputs.
(8) 
Other securities, which consist primarily of U.S. municipal bonds, foreign government bonds and foreign agency securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings.
Also included in Other Securities are exchange-traded derivatives that are valued based on quoted prices in an active market for identical derivatives; assets and liabilities. Non-exchange-traded derivatives are valued using industry valuation models, which maximize observable inputs, such as interest-rate yield curve data, foreign exchange rates and applicable spot and forward rates.
See Note I for a discussion of levels.
A reconciliation of the beginning and ending balances for Level 3 assets for the year ended January 3, 2015 follows (in millions): 

Fair Value Measured Using Significant
Unobservable Inputs (Level 3)
  
Total
Corporate
bonds
U.S.
government
securities
Other securities
Balance, beginning of year
$
7.9

$
—

$
0.1

$
7.8

Purchases, sales, settlements, net
19.7

0.7

—

19.0

Unrealized gains
(2.3
)
—

—

(2.3
)
Balance, end of year
$
25.3

$
0.7

$
0.1

$
24.5

 
The fair value of Safeway’s pension plan assets at December 28, 2013, excluding pending transactions of $37.2 million, by asset category are as follows (in millions): 
 
Fair Value Measurements
Asset category:
Total
Quoted prices in
active markets
for identical
assets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Cash and cash equivalents (1)
$
30.2

$
29.0

$
1.2

$
—

Short-term investment collective trust (2)
18.2

—

18.2

—

Common and preferred stock: (3)




Domestic common and preferred stock
270.4

269.9

0.5

—

International common stock
38.5

38.5

—

—

Common collective trust funds (2)
611.2

—

611.2

—

Corporate bonds (4)
101.1

—

101.1

—

Mortgage- and other asset-backed securities (5)
62.3

—

62.3

—

Mutual funds (6)
183.8

5.9

177.9

—

U.S. government securities (7)
335.8

—

335.7

0.1

Other securities (8)
29.9

3.1

19.0

7.8

Total
$
1,681.4

$
346.4

$
1,327.1

$
7.9


(1) 
The carrying value of these items approximates fair value.
(2) 
These investments are valued based on the Net Asset Value (“NAV”) of the underlying investments and are provided by the fund issuers.
(3) 
The fair value of common stock is based on the exchange quoted market prices. When quoted prices are not available for preferred stock, an industry standard valuation model is used which maximizes observable inputs.
(4) 
The fair value of corporate bonds is generally based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the fair value is based upon an industry valuation model, which maximizes observable inputs.
(5) 
The fair value of mortgage- and other asset-backed securities is generally based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for comparable securities, the fair value is based upon an industry model which maximizes observable inputs.
(6) 
These investments are publicly traded investments which are valued using the NAV. The NAV of the mutual funds is a quoted price in an active market. The NAV is determined once a day after the closing of the exchange based upon the underlying assets in the fund, less the fund’s liabilities, expressed on a per-share basis.
(7) 
The fair value of U.S. government securities is based on quoted market prices when available. When quoted prices are not available, the fair value of U.S. government securities is based on yields currently available on comparable securities or on an industry valuation model which maximizes observable inputs.
(8) 
Other securities, which consist primarily of U.S. municipal bonds, foreign government bonds and foreign agency securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings.
Valuation techniques are described earlier in this note. See Note I for a discussion of levels.
A reconciliation of the beginning and ending balances for Level 3 assets for the year ended December 28, 2013 follows (in millions):
 
Fair Value Measured Using Significant
Unobservable Inputs (Level 3)
  
Total
Corporate
bonds
Mortgage- and other asset-backed securities
U.S.
government
securities
Other Securities
Balance, beginning of year
$
4.0

$
3.4

$
0.5

$
0.1

$
—

Purchases, sales, settlements, net
4.0

(3.4
)
(0.5
)
—

7.9

Unrealized gains
(0.1
)
—

—

—

(0.1
)
Balance, end of year
$
7.9

$
—

$
—

$
0.1

$
7.8


Contributions   Cash contributions are expected to increase to approximately $268 million in 2015, primarily due to the settlement with the Pension Benefit Guaranty Corporation.
Estimated Future Benefit Payments  The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (in millions): 

Pension
benefits
Other
benefits
2015
$
140.3

$
6.8

2016
140.4

6.7

2017
141.5

6.6

2018
141.8

6.5

2019
142.4

6.4

2020 – 2024
709.8

23.3

Multiemployer Benefit Plans
Multiemployer Pension Plans  Safeway contributes to a number of multiemployer defined benefit pension plans under the terms of collective bargaining agreements that cover its union-represented employees. Benefits generally are based on a fixed amount for each year of service, and, in some cases, are not negotiated with contributing employers or in some cases even known by contributing employers. None of the Company's collective bargaining agreements require that a minimum contribution be made to these plans.
The risks of participating in U.S. multiemployer pension plans are different from single-employer pension plans in the following aspects:

a.
Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.

b.
If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

c.
If Safeway stops participating in some of its multiemployer pension plans, Safeway may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
The Company made and charged to expense contributions of $277.1 million in 2014, $259.2 million in 2013 and $248.7 million in 2012 to these plans for continuing operations.
In 2013, the Company sold all Canadian operations which terminated our obligation to contribute to Canadian multiemployer pension plans. Due to provincial law in Canada, Safeway is not expected to incur multiemployer pension withdrawal liability associated with the sale.
Also in 2013, the Company sold or closed all stores in the Dominick’s division. As previously reported, Dominick’s participated in certain multiemployer pension plans on which withdrawal liabilities have been or we expect will be incurred due to the Dominick’s closure. Generally, the Company may pay such withdrawal liabilities in installment payments. Withdrawal liabilities are generally subject to a 20-year payment cap, but may extend into perpetuity if a mass withdrawal from the plan occurs.
During the fourth quarter of 2013, Safeway recorded a liability of $310.8 million, which represented the present value of estimated installment payments to be made to the plans based on the best information available at the time, without having yet received demand letters from the multiemployer pension plans. In April 2014 and September 2014, the Company received demand letters from three of the plans. These demand letters called for installment payments greater than Safeway’s original actuarial estimate based on calculations Safeway disputes. The Company has requested a review by the plan trustee of the demands made by the three plans.

The Company's loss estimate is in accordance with ASC 450, "Contingencies." The following is a rollforward of the estimated multiemployer pension withdrawal liability (in millions):
Balance at year-end 2013
$
310.8

Accrued interest
13.7

Adjustment for changes in interest rates
121.1

Adjustments to loss estimates based on demand letters
38.3

Installment payments
(9.5
)
Balance at year-end 2014
$
474.4



Accrued interest expense and adjustments to the estimated liability are recorded in discontinued operations. The $455.0 million long-term portion of the estimated liability is included in Accrued Claims and Other Liabilities, and the $19.4 million current portion is included in Other Accrued Liabilities in the condensed consolidated balance sheet.

Pending review of the demand letters received, receipt of a final demand letter, or any negotiated lump sum settlements, the final amount of the withdrawal liability may be greater than or less than the amount recorded, and this difference could be significant. The Company currently estimates the range of potential withdrawal liability to be between $475 million and $607 million.
All information related to multiemployer pension expense or multiemployer post-retirement benefit obligations herein exclude Canada and Dominick’s for all purposes unless otherwise stated.
Safeway's participation in these plans for the annual period ended January 3, 2015 is outlined in the following tables. All information in the tables is as of January 3, 2015, December 28, 2013 and December 29, 2012 in the columns labeled 2014, 2013 and 2012, respectively, unless otherwise stated. The “EIN-PN” column provides the Employer Identification Number ("EIN") and the Plan Number ("PN"), if applicable. Unless otherwise noted, the most recent Pension Protection Act ("PPA") zone status available in 2014 and 2013 is for the plan's year ending at December 31, 2014, and December 31, 2013, respectively. The zone status is based on information that Safeway received from the plan. Among other factors, generally, plans in critical status (“red zone”) are less than 65 percent funded, plans in endangered or seriously endangered status (“yellow zone” or “orange zone”, respectively) are less than 80 percent funded, and plans at least 80 percent funded are said to be in the “green zone.”  The “FIP/RP status pending/implemented” column indicates plans for which a funding improvement plan ("FIP") or a rehabilitation plan ("RP") is either pending or has been implemented by the trustees of each plan. Information related to the impact of utilization of extended amortization periods on zone status is either not available or not obtainable without undue cost and effort.

Other than the sale of Safeway's Canadian operations and Dominick’s, there have been no significant changes that affect the comparability of 2014, 2013, and 2012 contributions.



The following two tables contain information about Safeway's U.S. multiemployer pension plans.
 
EIN - PN
Pension Protection Act zone status
Safeway 5% of total plan contributions
FIP/RP status pending/implemented
 
 
Pension fund
2014
2013
2013
2012
UFCW-Northern California Employers Joint Pension Trust Fund
946313554 - 001
Red
Red
Yes
Yes
Implemented
Western Conference of Teamsters Pension Plan
916145047 - 001
Green
Green
No
No
No
Southern California United Food & Commercial Workers Unions and Food Employers Joint Pension Plan
951939092 - 001
Red 3/31/2015
Red 3/31/2014
Yes 3/31/2014
Yes
3/31/2013
Implemented
Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund
526128473 - 001
Red
Red
Yes
Yes
Implemented
Sound Retirement Trust (formerly Retail Clerks Pension Trust) (3)
916069306 - 001
Red 9/30/2014
Red 9/30/2013
Yes 9/30/2013
Yes
9/30/2012
Implemented
Bakery and Confectionery Union and Industry International Pension Fund
526118572 - 001
Red
Red
Yes
Yes
Implemented
Rocky Mountain UFCW Unions & Employers Pension Plan
846045986 - 001
Green
Green
Yes
Yes
No
Desert States Employers & UFCW Unions Pension Plan
846277982 - 001
Green
Green
Yes
Yes
No
Mid-Atlantic UFCW and Participating Employers Pension Fund (4)
461000515 - 001
NA
NA
Yes
NA
NA
Denver Area Meat Cutters and Employers Pension Plan
846097461 - 001
Green
Green
Yes
Yes
No
Oregon Retail Employees Pension Trust
936074377 - 001
Green
Red
Yes
Yes
No
Alaska United Food and Commercial Workers Pension Trust
916123694 - 001
Red
Red
Yes
Yes
Implemented
Safeway Multiple Employer Retirement Plan (5)
943019135 - 005
80%+
80%+
No 12/30/2013
No 12/30/2012
NA
Retail Food Employers and UFCW Local 711 Pension Trust Fund
516031512 - 001
Red
Red
Yes
Yes
Implemented
Central Pension Fund of the International Union of Operating Engineers and Participating Employers
366052390 - 001
Green 1/31/2015
Green 1/31/2014
No 1/31/2014
No
1/31/2013
No
Alaska Teamster-Employer Pension Plan
926003463 - 024
Red 6/30/2015
Red 6/30/2014
No 6/30/2013
No
6/30/2012
Implemented


 
Contributions of Safeway (in millions)
Surcharge imposed (1)
Expiration date of collective bargaining agreements
Total collective bargaining agreements
Most significant collective bargaining agreement(s)
Pension fund
2014
2013
2012
Count
Expiration
% head-count (2)
UFCW-Northern California Employers Joint Pension Trust Fund
$
83.3

$
77.4

$
72.9

No
8/3/2013 to 7/23/2016
20
14
10/11/2014
93%
Western Conference of Teamsters Pension Plan
$
47.0

$
45.7

$
43.9

No
9/20/2014 to 10/6/2018
45
1
10/1/2016
28%
Southern California United Food & Commercial Workers Unions and Food Employers Joint Pension Plan
$
46.7

$
42.1

$
39.3

No
3/6/2016 to 5/8/2016
14
12
3/6/2016
99%
Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund
$
18.9

$
19.5

$
23.5

No
10/29/2016 to 2/25/2017
7
4
10/29/2016
97%
Sound Retirement Trust (formerly Retail Clerks Pension Trust) (3)
$
16.6

$
15.4

$
14.2

No
1/10/2015 to 9/20/2017
51
3
5/7/2016
50%
Bakery and Confectionery Union and Industry International Pension Fund
$
14.2

$
13.3

$
12.4

Yes
11/7/2011 to 9/17/2017
39
5
4/8/2017
38%
Rocky Mountain UFCW Unions & Employers Pension Plan
$
10.9

$
11.4

$
11.3

No
9/12/2015 to 8/27/2016
44
8
9/12/2015
53%
Desert States Employers & UFCW Unions Pension Plan
$
9.1

$
9.5

$
10.5

No
10/29/2016 to 11/3/2018
4
2
10/29/2016
97%
Mid-Atlantic UFCW and Participating Employers Pension Fund (4)
$
4.9

$
5.0

NA
NA
10/29/2016 to 2/25/2017
7
4
10/29/2016
97%
Denver Area Meat Cutters and Employers Pension Plan
$
4.7

$
5.0

$
5.0

No
9/12/2015 to 7/23/2016
42
8
9/12/2015
52%
Oregon Retail Employees Pension Trust
$
4.7

$
4.5

$
4.2

No
7/25/2015 to 1/21/2017
34
4
7/25/2015
42%
Alaska United Food and Commercial Workers Pension Trust
$
2.1

$
2.0

$
1.9

No
5/31/2015 to 2/11/2017
10
1
5/31/2015
48%
Safeway Multiple Employer Retirement Plan (5)
$
1.8

$
1.9

$
2.4

NA
NA
NA
NA
NA
NA
Retail Food Employers and UFCW Local 711 Pension Trust Fund
$
1.7

$
1.6

$
1.5

No
5/19/2013 to 3/1/2015
3
2
3/1/2015
98%
 
 
 
 
 
 
 
 
 
 
 
Contributions of Safeway (in millions)
Surcharge imposed (1)
Expiration date of collective bargaining agreements
Total collective bargaining agreements
Most significant collective bargaining agreement(s)
Pension fund
2014
2013
2012
Count
Expiration
% head-count (2)
Central Pension Fund of the International Union of Operating Engineers and Participating Employers
$
1.5

$
1.5

$
1.5

No
6/4/2016 to 6/15/2019
6
2
4/15/2018
45%
Alaska Teamster-Employer Pension Plan
$
1.0

$
1.0

$
1.0

No
3/10/2018 to 10/6/2018
3
2
3/10/2018
85%
Other funds
$
8.0

$
2.4

$
3.2

 
 
 
 
 
 
Total Safeway contributions to U.S. multiemployer pension plans
$
277.1

$
259.2

$
248.7

 
 
 
 
 
 
NA = not applicable.

(1) 
PPA surcharges are 5% or 10% of eligible contributions and may not apply to all collective bargaining agreements or total contributions made to each plan.

(2) 
Employees on which Safeway may contribute under these most significant collective bargaining agreements as a percent of all employees on which Safeway may contribute to the respective fund.

(3) 
Sound Retirement Trust information includes former Washington Meat Industry Pension Trust due to merger into Sound Retirement Trust effective June 30, 2014.

(4) 
The Mid-Atlantic UFCW & Participating Employers Pension Fund is a multiemployer plan effective January 1, 2013 which provides future service benefits to participants who would have otherwise earned future service under the Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund. The plan is not expected to be subject to zone status certification or notice or establishment of a funding improvement plan or a rehabilitation plan as per section 432(a) of the Internal Revenue Code since those provisions are required for multiemployer plans in effect on July 16, 2006.

(5) 
The Safeway Multiple Employer Retirement Plan (“SMERP”) is a multiple employer plan as defined in the Internal Revenue Code. However, the SMERP is characterized as a multiemployer plan by the FASB, even though it is not maintained pursuant to any collective bargaining agreements to which Safeway is party. The plan may be subject to statutory annual minimum contributions based on complex actuarial calculations. Additionally, it has no PPA zone status and is not subject to establishment of a funding improvement plan or a rehabilitation plan or other PPA provisions that apply to multiemployer plans.

At the date the financial statements were issued, Forms 5500 were generally not available for the plan years ending in 2014. Additionally, for the plan year ending March 31, 2012, Safeway contributed more than 5% of the total contributions to the Southern California United Food and Commercial Workers Union and Food Employers Joint Pension Plan.

Multiemployer post-retirement benefit plans other than pensions Safeway contributes to a number of multiemployer post-retirement benefit plans other than pensions under the terms of its collective bargaining agreements that cover union-represented employees. These plans may provide medical, pharmacy, dental, vision, mental health and other ancillary benefits to active employees and retirees as determined by the trustees of each plan. These benefits are not vested. A significant portion of Safeway contributions benefit active employees and, as such, may not constitute contributions to a post-retirement benefit plan. Safeway is unable to separate all contribution amounts paid to benefit active participants in order to separately report contributions paid to provide post-retirement benefits for retirees.

It is estimated that Safeway may have contributed as much as $312.4 million in 2014,  $302.0 million in 2013 and as much as $473.3 million in 2012 to fund health and welfare plans for multiemployer post-retirement plans other than pension. Actual funding of post-retirement benefit plans other than pensions is likely much lower as this amount continues to include contributions which benefit active employees.