Pension Benefits

6 Months Ended

Jul. 02, 2022

Pension Benefits

Pension Benefits

(10) Pension Benefits

Company-Sponsored Defined Benefit Pension Plans. As of July 2, 2022, we had four company-sponsored defined benefit pension plans covering approximately 27% of our employees. Three of these defined benefit pension plans are for the benefit of certain of our union employees and one is for the benefit of salaried and certain hourly employees. The benefits in the salaried and hourly plan are based on each employee’s years of service and compensation, as defined. Newly hired employees are no longer eligible to participate in any of our four company-sponsored defined benefit pension plans. Net periodic pension cost for our four company-sponsored defined benefit pension plans for the second quarter and first two quarters of 2022 and 2021 includes the following components (in thousands):

	Thirteen Weeks Ended				Twenty-six Weeks Ended
	July 2,		July 3,		July 2,		July 3,
	2022		2021		2022		2021
Service cost—benefits earned during the period	$	2,192	$	2,603	$	4,488	$	5,229
Interest cost on projected benefit obligation		1,365		1,208		2,736		2,433
Expected return on plan assets		(3,236)		(2,727)		(6,473)		(5,484)
Amortization of unrecognized loss		26		403		54		845
Net periodic pension cost	$	347	$	1,487	$	805	$	3,023

During the first two quarters of 2022, we did not make any contributions to our company-sponsored defined benefit pension plans, and during the first two quarters of 2021, we made contributions to our company-sponsored defined benefit pension plans of $2.5 million. During the remainder of fiscal 2022, we expect to make approximately$2.5 million of contributions.

Multi-Employer Defined Benefit Pension Plan. Prior to the closure of our Portland, Maine manufacturing facility during the fourth quarter of 2021, we also contributed to the Bakery and Confectionery Union and Industry International Pension Fund (EIN 52-6118572, Plan No. 001), a multi-employer defined benefit pension plan, sponsored by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) on behalf of certain employees at our Portland, Maine manufacturing facility. The plan provides multiple plan benefits with corresponding contribution rates that are collectively bargained between participating employers and their affiliated BCTGM local unions.

B&G Foods made contributions to the plan of approximately $0.3 million during the first two quarters of 2021. These contributions represented less than five percent of total contributions made to the plan. We did not make any contributions to the plan during the first two quarters of 2022.

In connection with the closure and sale of the Portland, Maine manufacturing facility, we withdrew from participation in the plan during the fourth quarter of 2021. As a result, we are required to make monthly withdrawal liability payments to the plan over 20 years. These payments amount to approximately $0.9 million on an annual basis beginning March 1, 2022. Accordingly, as of July 2, 2022, the present value of the remaining payments amounting to $13.7 million is reflected as a liability on our unaudited consolidated balance sheet.