Employee Benefit Plans

12 Months Ended

Dec. 31, 2024

Employee Benefit Plans

Employee Benefit Plans

Note 16. Employee Benefit Plans

The Partnership sponsors and maintains the Global Partners LP 401(k) Savings and Profit Sharing Plan (the “Global 401(k) Plan”), a qualified defined contribution plan. The Global Montello Group Corp. 401(k) Savings and Profit Sharing Plan was merged into the Global 401(k) Plan in 2021. Eligible employees of the Partnership and of GMG may elect to contribute up to 100% of their eligible compensation to the Global 401(k) Plan for each payroll period, subject to annual dollar limitations which are periodically adjusted by the IRS. The General Partner makes safe harbor matching contributions to the Global Partners 401(k) Plan equal to 100% of the participant’s elective contributions that do not exceed 3% of the participant’s eligible compensation and 50% of the participant’s elective contributions that exceed 3% but do not exceed 5% of the participant’s eligible compensation. The General Partner also makes discretionary non-matching contributions for certain groups of employees in amounts up to 2% of eligible compensation. Profit-sharing contributions may also be made at the sole discretion of the General Partner’s board of directors.

The Global 401(k) Plan had expenses of approximately $5.7 million, $5.0 million and $4.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Prior to December 31, 2024, the General Partner sponsored and maintained the Global Partners LP Pension Plan (the “Global Pension Plan”), and GMG sponsored and maintained the Global Montello Group Corp. Pension Plan (the “GMG Pension Plan”) (collectively, the “Pension Plans”), each being a qualified defined benefit pension plan. The Global Pension Plan and the GMG Pension Plan were amended to freeze participation and benefit accruals effective in 2009 and 2012, respectively. On November 1, 2023, the Partnership provided communication to participants of the Pension Plans of its intention to terminate the Pension Plans effective December 31, 2023. The Partnership completed the settlement of its obligations under the Pension Plans as of December 31, 2024. Assets remaining in the Pension Plans as of December 31, 2024 are expected to be transferred to the Global 401(k) Plan to be used for the benefit of current and future participants in the Global 401(k) Plan.

The following table presents each plan’s funded status and the total amounts recognized in the consolidated balance sheets at December 31 (in thousands):

	December 31,  2024
	Global		GMG
	Pension Plan		Pension Plan		Total
Projected benefit obligation	$	—	$	—	$	—
Fair value of plan assets		3,383		553		3,936
Net (pension asset) unfunded pension liability	$	(3,383)	$	(553)	$	(3,936)

	December 31,  2023
	Global		GMG
	Pension Plan		Pension Plan		Total
Projected benefit obligation	$	11,496	$	3,151	$	14,647
Fair value of plan assets		14,979		4,134		19,113
Net (pension asset) unfunded pension liability	$	(3,483)	$	(983)	$	(4,466)

Total actual return on plan assets was $0.5 million and $2.1 million in 2024 and 2023, respectively.

The following presents the components of the net periodic change in benefit obligation for the Pension Plans for the years ended December 31 (in thousands):

	2024		2023		2022
Benefit obligation at beginning of year	$	14,647	$	15,242	$	22,334
Interest cost		541		741		538
Actuarial loss (gain)		541		(12)		(6,210)
Benefits paid		(15,729)		(1,324)		(1,420)
Benefit obligation at end of year	$	—	$	14,647	$	15,242

The following presents the weighted-average actuarial assumptions used in determining each plan’s annual pension expense for the years ended December 31:

	Global Pension Plan			GMG Pension Plan
	2024	2023	2022	2024	2023	2022
Discount rate	N/A	4.9%	5.1%	N/A	5.0%	5.3%
Expected return on plan assets	N/A	4.8%	7.0%	N/A	4.8%	7.0%

The cost of annual contributions to the Pension Plans is not significant to the General Partner, the Partnership or its subsidiaries. Total contributions made by the General Partner, the Partnership and its subsidiaries to the Pension Plans were approximately $0, $0.1 million and $0.3 million in 2024, 2023 and 2022, respectively.