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EMPLOYEE BENEFIT PLANS AND COLLECTIVE BARGAINING AGREEMENTS
 12 Months Ended
Feb. 27, 2021
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS AND COLLECTIVE BARGAINING AGREEMENTS EMPLOYEE BENEFIT PLANS AND COLLECTIVE BARGAINING AGREEMENTS
Employer Sponsored Pension Plans

The Company sponsors a defined benefit pension plan (the "Safeway Plan") for substantially all of its employees under the Safeway banners not participating in multiemployer pension plans. Effective April 1, 2015, the Company implemented a soft freeze of the Safeway Plan. A soft freeze means that all existing employees as of March 31, 2015 then participating remained in the Safeway Plan, but any new non-union employees hired after that date would instead earn retirement benefits under an enhanced 401(k) program. On December 30, 2018, the Company implemented a hard freeze of non-union benefits of employees of the Safeway Plan and all future benefit accruals for non-union employees ceased as of that date. Instead, non-union participants earned retirement benefits under the Company's 401(k) plans. The Safeway Plan continues to remain fully open to union employees and past service benefits, including future interest credits, for non-union employees continue to be accrued under the Safeway Plan.

The Company sponsors a defined benefit pension plan (the "Shaw's Plan") covering union employees under the Shaw's banner. Under the United banner, the Company sponsors a frozen plan (the "United Plan") covering certain United employees and an unfunded Retirement Restoration Plan that provides death benefits and supplemental income payments for certain executives after retirement.

Other Post-Retirement Benefits

In addition to the Company's pension plans, the Company provides post-retirement medical and life insurance benefits to certain employees. Retirees share a portion of the cost of the post-retirement medical plans. The Company pays all the cost of the life insurance plans. The plans are unfunded.
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 February 27, 2021 and a statement of funded status as of February 27, 2021 and February 29, 2020 (in millions):
PensionOther Post-Retirement Benefits
February 27,
2021		February 29,
2020		February 27,
2021		February 29,
2020
Change in projected benefit obligation:
Beginning balance$2,516.2 $2,325.8 $20.9 $23.8 
Service cost15.7 14.7 — 0.6 
Interest cost48.6 80.6 0.4 0.7 
Actuarial loss (gain)11.9 315.1 1.3 (2.6)
Plan participant contributions— — 0.2 0.4 
Benefit payments (including settlements)(221.9)(218.9)(1.6)(2.0)
Plan amendments— (1.1)— — 
Ending balance$2,370.5 $2,516.2 $21.2 $20.9 
Change in fair value of plan assets:
Beginning balance$1,743.7 $1,847.0 $— $— 
Actual return on plan assets361.2 106.2 — — 
Employer contributions58.6 9.4 1.4 1.6 
Plan participant contributions— — 0.2 0.4 
Benefit payments (including settlements)(221.9)(218.9)(1.6)(2.0)
Ending balance$1,941.6 $1,743.7 $— $— 
Components of net amount recognized in financial position:
Other current liabilities $(6.3)$(6.7)$(2.8)$(2.5)
Other long-term liabilities(422.6)(765.8)(18.4)(18.4)
Funded status$(428.9)$(772.5)$(21.2)$(20.9)

The actuarial loss related to the projected benefit obligation for fiscal 2020 was immaterial. The actuarial loss for fiscal 2019 related to the projected benefit obligation was primarily driven by a decrease in discount rates.

Amounts recognized in Accumulated other comprehensive income (loss) consisted of the following (in millions):
PensionOther Post-Retirement
Benefits
February 27,
2021		February 29,
2020		February 27,
2021		February 29,
2020
Net actuarial (gain) loss$(76.7)$170.4 $(8.4)$(10.3)
Prior service cost1.4 1.6 — 1.9 
$(75.3)$172.0 $(8.4)$(8.4)

Information for the Company's pension plans, all of which have an accumulated benefit obligation in excess of plan assets as of February 27, 2021 and February 29, 2020, is shown below (in millions):
February 27,
2021		February 29,
2020
Projected benefit obligation$2,370.5 $2,516.2 
Accumulated benefit obligation2,366.4 2,513.4 
Fair value of plan assets1,941.6 1,743.7 
The following table provides the components of net pension and post retirement (income) expense for the retirement plans and other changes in plan assets and benefit obligations recognized in Other comprehensive income (loss) (in millions):
PensionOther Post-Retirement
Benefits
Fiscal
 2020		Fiscal
 2019		Fiscal
 2020		Fiscal
 2019
Components of net (income) expense:
Estimated return on plan assets
$(103.9)$(110.1)$— $— 
Service cost15.7 14.7 — 0.6 
Interest cost48.6 80.6 0.4 0.7 
Amortization of prior service cost0.2 0.4 1.9 3.7 
Amortization of net actuarial loss (gain) 2.0 0.5 (0.6)(0.5)
(Income) loss due to settlement accounting(0.7)7.4 — — 
(Income) expense, net(38.1)(6.5)1.7 4.5 
Changes in plan assets and benefit obligations recognized in Other comprehensive income (loss):   
Net actuarial (gain) loss(245.8)318.9 1.3 (2.6)
Settlement income (loss)0.7 (7.4)— — 
Amortization of net actuarial (loss) gain(2.0)(0.5)0.6 0.5 
Prior service cost— (1.1)— — 
Amortization of prior service cost
(0.2)(0.4)(1.9)(3.7)
Total recognized in Other comprehensive income (loss)(247.3)309.5 — (5.8)
Total net expense and changes in plan assets and benefit obligations recognized in Other comprehensive income (loss) $(285.4)$303.0 $1.7 $(1.3)

Prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. When the accumulation of actuarial gains and losses exceeds 10% of the greater of the projected benefit obligation and the fair value of plan assets, the excess is amortized over either the average remaining lifetime of all participants or the average remaining service period of active participants. No significant prior service costs or estimated net actuarial gain or loss is expected to be amortized from Other comprehensive income (loss) into periodic benefit cost during fiscal 2021.

Assumptions

The weighted average actuarial assumptions used to determine year-end projected benefit obligations for pension plans were as follows:
February 27,
2021		February 29,
2020
Discount rate2.84 %2.83 %
Rate of compensation increase3.01 %3.02 %
Cash balance plan interest crediting rate2.35 %2.40 %
The weighted average actuarial assumptions used to determine net periodic benefit costs for pension plans were as follows: 
February 27,
2021		February 29,
2020
Discount rate2.83 %4.17 %
Expected return on plan assets6.18 %6.36 %
Cash balance plan interest crediting rate2.40 %3.05 %
On February 28, 2021, the Company adopted the new MP-2020 mortality improvement projection scale which assumes an improvement in life expectancy at a marginally slower rate than the MP-2019 projection scale. The change in mortality assumption and future mortality improvement resulted in an immaterial decrease in the Company's current year benefit obligations and future expenses.

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 investment policy also emphasizes the following key objectives: (1) maintaining a diversified portfolio among asset classes and investment styles; (2) maintaining an acceptable level of risk in pursuit of long-term economic benefit; (3) maximizing 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) maintaining adequate controls over administrative costs.

The following table summarizes actual allocations for the Safeway Plan which had approximately $1,597 million in plan assets as of February 27, 2021: 
Plan Assets
Asset categoryTargetFebruary 27,
2021		February 29,
2020
Equity65%68.3 %64.0 %
Fixed income35%31.2 %39.2 %
Cash and other—%0.5 %(3.2)%
Total
100%100.0 %100.0 %

The following table summarizes the actual allocations for the Shaw's Plan which had approximately $302 million in plan assets as of February 27, 2021:    
Plan Assets
Asset categoryTargetFebruary 27,
2021		February 29,
2020
Equity65%69.2 %64.5 %
Fixed income35%28.2 %35.4 %
Cash and other—%2.6 %0.1 %
Total
100%100.0 %100.0 %
The following table summarizes the actual allocations for the United Plan which had approximately $43 million in plan assets as of February 27, 2021:
Plan Assets
Asset categoryTarget (1)February 27,
2021		February 29,
2020
Equity50%45.0 %47.8 %
Fixed income50%55.0 %50.4 %
Cash and other—%— %1.8 %
Total
100%100.0 %100.0 %
(1) The target market value of equity securities for the United Plan is 50% of plan assets. If the equity percentage exceeds 60% or drops below 40%, the asset allocation is adjusted to target.

Expected return on pension plan assets is based on historical experience of the Company's portfolios and the review of projected returns by asset class on broad, publicly traded equity and fixed-income indices, as well as target asset allocation.
Pension Plan Assets

The fair value of the Company's pension plan assets as of February 27, 2021, excluding pending transactions of $76.1 million payable to an intermediary agent, by asset category are as follows (in millions): 
 Fair Value Measurements
Asset categoryTotalQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Assets Measured at NAV
Cash and cash equivalents (1)$5.3 $15.3 $(10.0)$— $— 
Short-term investment collective trust (2)63.1 — 63.1 — — 
Common and preferred stock: (3)
Domestic common and preferred stock
169.8 169.8 — — — 
International common stock56.3 56.3 — — — 
Collective trust funds (2)868.6 — — — 868.6 
Corporate bonds (4)120.9 — 120.9 — — 
Mortgage- and other asset-backed securities (5)
34.1 — 34.1 — — 
Mutual funds (6)346.4 178.7 61.0 — 106.7 
U.S. government securities (7)282.0 — 282.0 — — 
Other securities (8)71.2 — 25.2 — 46.0 
Total$2,017.7 $420.1 $576.3 $— $1,021.3 
(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. There are no unfunded commitments or redemption restrictions for these funds.
(3) The fair value of common stock is based on the exchange quoted market prices. When quoted prices are not available for identical stock, an industry 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 the same or similar issuers with similar credit ratings and maturities. 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 the same or similar issuers with similar credit ratings and maturities. When quoted prices are not available for comparable securities, the fair value is based upon an industry valuation model which maximizes observable inputs.
(6) These investments are open-ended mutual funds that are registered with the SEC which are valued using the NAV. The NAV of the mutual funds is a published 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. There are no unfunded commitments, or redemption restrictions for these funds, and the funds are required to transact at the published price.
(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) Level 2 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 is a commingled fund valued based on the NAV of the underlying investments and is provided by the issuer and exchange-traded derivatives that are valued based on quoted prices in an active market for identical derivatives, assets and liabilities. Funds meeting the practical expedient are included in the Assets Measured at NAV column. Exchange-traded derivatives 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.
The fair value of the Company's pension plan assets as of February 29, 2020, excluding pending transactions of $95.1 million payable to an intermediary agent, by asset category are as follows (in millions): 
 Fair Value Measurements
Asset categoryTotalQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Assets Measured at NAV
Cash and cash equivalents (1)$6.3 $3.4 $2.9 $— $— 
Short-term investment collective trust (2)37.4 — 37.4 — — 
Common and preferred stock: (3)
Domestic common and preferred stock
167.8 167.8 — — — 
International common stock57.8 57.8 — — — 
Collective trust funds (2)710.6 — — — 710.6 
Corporate bonds (4)135.9 — 135.9 — — 
Mortgage- and other asset-backed securities (5)
45.0 — 45.0 — — 
Mutual funds (6)272.0 138.4 22.7 — 110.9 
U.S. government securities (7)359.0 — 359.0 — — 
Other securities (8)47.0 — 12.1 — 34.9 
Total$1,838.8 $367.4 $615.0 $— $856.4 
(1) The carrying value of these items approximates fair value.
(2) These investments are valued based on the NAV of the underlying investments and are provided by the fund issuers. There are no unfunded commitments or redemption restrictions for these funds.
(3) The fair value of common stock is based on the exchange quoted market prices. When quoted prices are not available for identical stock, an industry 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 the same or similar issuers with similar credit ratings and maturities. 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 the same or similar issuers with similar credit ratings and maturities. When quoted prices are not available for comparable securities, the fair value is based upon an industry valuation model which maximizes observable inputs.
(6) These investments are open-ended mutual funds that are registered with the SEC which are valued using the NAV. The NAV of the mutual funds is a published 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. There are no unfunded commitments, or redemption restrictions for these funds, and the funds are required to transact at the published price.
(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) Level 2 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 is a commingled fund valued based on the NAV of the underlying investments and is provided by the issuer and exchange-traded derivatives that are valued based on quoted prices in an active market for identical derivatives, assets and liabilities. Funds meeting the practical expedient are included in the Assets Measured at NAV column. Exchange-traded derivatives 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.
Contributions

In fiscal 2020, fiscal 2019 and fiscal 2018, the Company contributed $60.0 million, $11.0 million and $199.3 million, respectively, to its pension and post-retirement plans. The Company's funding policy for the defined benefit pension plan is to contribute the minimum contribution required under the Employee Retirement Income Security Act of 1974, as amended, and other applicable laws as determined by the Company's external actuarial consultant. At the Company's discretion, additional funds may be contributed to the defined benefit pension plans. The Company's fiscal 2018 contributions include $150.0 million of additional discretionary contributions to reduce the Pension Benefit Guaranty Corporation ("PBGC") premium costs and improve the overall funded status of the plans. The Company expects to contribute $64.6 million to its pension and post-retirement plans in fiscal 2021. The Company will recognize contributions in accordance with applicable regulations, with consideration given to recognition for the earliest plan year permitted.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (in millions):
Pension BenefitsOther Benefits
2021$190.3 $2.8 
2022182.8 2.7 
2023177.3 2.4 
2024191.8 2.2 
2025272.7 1.9 
2026 – 2030679.2 6.3 
Multiemployer Pension Plans

The Company currently contributes to 27 multiemployer pension plans. These multiemployer plans generally provide retirement benefits to participants based on their service to contributing employers. The benefits are paid from assets held in trust for that purpose. Plan trustees typically are responsible for determining the level of benefits to be provided to participants, the investment of the assets and plan administration. Expense is recognized in connection with these plans as contributions are funded.

The risks of participating in these multiemployer plans are different from the risks associated with single-employer plans in the following respects:
•Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.
•Though the unfunded obligations of a multiemployer plan are not a liability of the Company, if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
•With respect to some multiemployer plans, if the Company chooses to stop participating, or makes market exits or store closures or otherwise has participation in the plan fall below certain levels, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as withdrawal liability. The Company generally records the actuarially determined liability at an undiscounted amount.

The Company's participation in these plans is outlined in the table below. The EIN-Pension Plan Number column provides the Employer Identification Number ("EIN") and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act of 2006 ("PPA") zone status available for fiscal 2020 and fiscal 2019 is for the plan's year ending at December 31, 2019 and December 31, 2018, respectively. The zone status is based on information received from the plans and is certified by each plan's actuary. 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 plan trustees.

The following tables contain information about the Company's multiemployer plans. Certain plans have been aggregated in the Other funds line in the following table, as the contributions to each of these plans are not individually material.
EIN - PNPension Protection Act zone status (1)Company's 5% of total plan contributionsFIP/RP status pending/implemented
Pension fund2020201920192018
UFCW-Northern California Employers Joint Pension Trust Fund946313554 - 001RedRedYesYesImplemented
Western Conference of Teamsters Pension Plan916145047 - 001GreenGreenNoNoNo
Southern California United Food & Commercial Workers Unions and Food Employers Joint Pension Plan (4)951939092 - 001RedRedYesYesImplemented
Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund (8)526128473 - 001RedRedYesYesImplemented
Sound Retirement Trust (6)916069306 - 001RedRedYesYesImplemented
Bakery and Confectionery Union and Industry International Pension Fund526118572 - 001RedRedYesYesImplemented
UFCW Union and Participating Food Industry Employers Tri-State Pension Fund236396097 - 001RedRedYesYesImplemented
Rocky Mountain UFCW Unions & Employers Pension Plan846045986 - 001GreenGreenYesYesNo
UFCW Local 152 Retail Meat Pension Fund (5)236209656 - 001RedRedYesYesImplemented
Desert States Employers & UFCW Unions Pension Plan846277982 - 001GreenGreenYesYesNo
UFCW International Union - Industry Pension Fund (5)(9)516055922 - 001GreenGreenYesYesNo
Mid Atlantic Pension Fund (8)461000515 - 001GreenGreenYesYesNo
Retail Food Employers and UFCW Local 711 Pension Trust Fund516031512 - 001RedRedYesYesImplemented
Oregon Retail Employees Pension Trust936074377 - 001GreenGreenYesYesNo
Intermountain Retail Store Employees Pension Trust (7)916187192 - 001RedRedYesYesImplemented
Contributions of Company (in millions)
Surcharge imposed (2)
Expiration date of collective bargaining agreementsTotal collective bargaining agreementsMost significant collective bargaining agreement(s)(3)
Pension fund202020192018CountExpiration
UFCW-Northern California Employers Joint Pension Trust Fund$123.2 $103.8 $104.4 No8/3/2019 to 10/9/2021837810/9/2021
Western Conference of Teamsters Pension Plan66.9 64.9 63.7 No3/4/2020 to 9/21/202551109/21/2025
Southern California United Food & Commercial Workers Unions and Food Employers Joint Pension Plan (4)133.7 116.1 108.4 No3/11/2018 to 3/6/202643413/6/2022
Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund (8)19.3 18.8 20.4 No10/26/2019 to 2/24/2024211510/28/2023
Sound Retirement Trust (6)53.8 44.3 39.1 No5/4/2019 to 1/20/2024119145/7/2022
Bakery and Confectionery Union and Industry International Pension Fund18.7 18.5 17.4 No9/3/2011 to 3/9/2024107339/6/2020
UFCW Union and Participating Food Industry Employers Tri-State Pension Fund12.0 14.9 14.0 No3/28/2020 to 2/1/2024623/28/2020
Rocky Mountain UFCW Unions & Employers Pension Plan15.5 12.3 10.8 No11/23/2019 to 11/26/202285272/19/2022
UFCW Local 152 Retail Meat Pension Fund (5)11.1 10.9 10.8 No5/2/2024445/2/2024
Desert States Employers & UFCW Unions Pension Plan8.9 8.9 9.1 No10/24/2020 to 11/5/2022161310/24/2020
UFCW International Union - Industry Pension Fund (5)(9)4.6 9.5 13.1 No8/3/2019 to 7/13/20242066/11/2022
Mid Atlantic Pension Fund (8)7.3 7.4 6.6 No(8)(8)(8)(8)
Retail Food Employers and UFCW Local 711 Pension Trust Fund8.6 7.3 7.1 No5/19/2018 to 12/17/2023743/5/2022
Oregon Retail Employees Pension Trust10.0 8.9 7.6 No7/31/2021 to 11/12/2022142251/29/2022
Intermountain Retail Store Employees Pension Trust (7)6.9 5.8 4.8 No5/19/2013 to 4/8/202356134/4/2020
Other funds 23.5 17.0 13.8 
Total Company contributions to U.S. multiemployer pension plans$524.0 $469.3 $451.1 
(1) PPA established three categories (or "zones") of plans: (1) "Green Zone" for healthy; (2) "Yellow Zone" for endangered; and (3) "Red Zone" for critical. These categories are based upon multiple factors, including the funding ratio of the plan assets to plan liabilities.
(2) Under the PPA, a surcharge may be imposed when employers make contributions under a collective bargaining agreement that is not in compliance with a rehabilitation plan. As of February 27, 2021, the collective bargaining agreements under which the Company was making contributions were in compliance with rehabilitation plans adopted by the applicable pension fund.
(3) These columns represent the number of most significant collective bargaining agreements aggregated by common expiration dates for each of the pension funds listed above.
(4) The information for this fund was obtained from the Form 5500 filed for the plan's year-end at March 31, 2020 and March 31, 2019.
(5) The information for this fund was obtained from the Form 5500 filed for the plan's year-end at June 30, 2019 and June 30, 2018.
(6) The information for this fund was obtained from the Form 5500 filed for the plan's year-end at September 30, 2019 and September 30, 2018.
(7) The information for this fund was obtained from the Form 5500 filed for the plan's year-end at August 31, 2019 and August 31, 2018.
(8) As further described below, effective December 31, 2020, the Mid Atlantic Pension Fund combined into the Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund to form the Combined Plan, and immediately upon combination the Company withdrew from the Combined Plan under the terms of the agreement with the applicable local unions, the largest contributing employer and the PBGC.
(9) As further described below, effective June 30, 2020, the Company withdrew from the UFCW National Fund.
FELRA and MAP: The Company was the second largest contributing employer to the Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund ("FELRA") which was projected by FELRA to become insolvent in the first quarter of 2021, and to the Mid-Atlantic UFCW and Participating Pension Fund ("MAP"). The Company continued to fund all of its required contributions to FELRA and MAP.

On March 5, 2020, the Company agreed with the two applicable local unions to new collective bargaining agreements pursuant to which the Company contributes to FELRA and MAP. These agreements were subject to final approval by the Pension Benefit Guaranty Corporation ("PBGC"), the local unions and the largest contributing employer, which was reached on December 31, 2020. In connection with these final agreements, to address the pending insolvency of FELRA, the Company and the two local unions, along with the largest contributing employer, agreed to combine MAP into FELRA (the "Combined Plan") on December 31, 2020. As a result, the Company withdrew from the Combined Plan under the terms of the agreement with the applicable unions, the largest contributing employer and the PBGC and received a release of all withdrawal liability and mass withdrawal liability from FELRA, MAP, the Combined Plan and the PBGC. Commencing February 2021, the Company is required to annually pay $23.2 million to the Combined Plan for the next 25 years. This payment replaces the Company's previous annual contribution to both FELRA and MAP. In addition to the $23.2 million annual payment, the Company will begin to contribute to a new multiemployer pension plan limited to providing benefits to the former participants in MAP and FELRA in excess of the benefits the PBGC insures under law (the "Excess Plan"). These contributions are expected to commence in June 2022 and are currently expected to be $13.7 million annually for 10 years. The Company recorded a non-cash pre-tax charge of $607.2 million ($449.4 million, net of tax) in the fourth quarter of fiscal 2020 to record the pension obligation for these benefits earned for prior service. The pension obligation was determined using a risk-free rate commensurate with the respective payment term related to the Combined Plan and the Excess Plan. Furthermore, the Company is also establishing and will contribute to a new Variable Annuity Pension Plan (the "Combined VAPP") that provides benefits to participants for future services, effective January 1, 2021. The Company will contribute approximately $4 million to the Combined VAPP to fund certain administrative expenses and establish a stabilization reserve for the Combined VAPP.

The recently enacted ARP Act establishes a special financial assistance program for financially troubled multiemployer pension plans and although the special assistance financial assistance will have no impact on the Company's $23.2 million payment obligation to the Combined Plan, the Company is currently evaluating any potential favorable impact the special financial assistance may have on the $13.7 million annual payment obligation to the Excess Plan. Significant uncertainty remains in determining how the special assistance program will work. The PBGC is expected to issue guidance or regulations within 120 days of enactment and the determination of favorable financial relief, if any, for the Excess Plan is still to be determined.

National Fund: On July 21, 2020, the Company announced that it had entered into a tentative agreement with the trustees of the United Food and Commercial Workers International Union ("UFCW") Union-Industry Pension Fund ("National Fund"), providing that the Company will permanently cease to have any obligation to contribute to the National Fund, a multiemployer pension plan, and will completely withdraw from the National Fund, effective as of June 30, 2020. The Company and nine UFCW local unions entered into a Memorandum of Understanding that permitted the withdrawal and required the establishment of a new Variable Annuity Pension Plan (the "National VAPP") that will provide benefits to participants for future services, effective as of July 1, 2020. On November 30, 2020, these agreements became effective upon ratification by the membership of each of these nine local unions and the related agreements with the local unions whose members participate in the National Fund and are employed by the two largest contributors to the National Fund. As a result, the Company will pay, by June 2023, an aggregate of $285.7 million to the National Fund, in full satisfaction of the Company's withdrawal liability amount and mass withdrawal liability amount. The Company has paid $147.3 million as of the end of fiscal 2020 and will pay the remaining amount in two installments over the next 27 months, any portion of which may be prepaid, in whole or in part. The Company will also pre-fund a transition reserve in the National VAPP to support certain grandfathered participants by making a payment in the first quarter of fiscal 2021 of approximately $8 million to the National
VAPP. The Company recorded a pre-tax charge of approximately $285.7 million ($213.0 million, net of tax) in the third quarter of fiscal 2020 to record the withdrawal liability.

Midwest Plan: As a part of the Safeway acquisition, the Company assumed withdrawal liabilities related to Safeway's 2013 closure of its Dominick's division. The Company recorded a $221.8 million multiemployer pension withdrawal liability related to Safeway's withdrawal from these plans. One of the plans, the UFCW & Employers Midwest Pension Fund (the "Midwest Plan"), had asserted the Company may be liable for mass withdrawal liability, if the plan had a mass withdrawal, in addition to the liability the Midwest Plan already had assessed. The Company disputed that the Midwest Plan would have the right to assess mass withdrawal liability on the Company and the Company also disputed in arbitration the amount of the withdrawal liability the Midwest Plan had assessed. On March 12, 2020, the Company agreed to a settlement of these matters and the withdrawal liability with the Midwest Plan's Board of Trustees. As a result of the settlement, the Company agreed to pay $75.0 million, in a lump sum, which was paid in the first quarter of fiscal 2020, and forego any amounts already paid to the Midwest Plan. The Company recorded a gain of $43.3 million in the fourth quarter of fiscal 2019 to reduce the previously recorded estimated withdrawal liability to the settlement amount.

Collective Bargaining Agreements

As of February 27, 2021, the Company had approximately 300,000 employees, of which approximately 210,000 were covered by collective bargaining agreements. During fiscal 2020, collective bargaining agreements covering approximately 27,000 employees were renegotiated. Collective bargaining agreements covering approximately 67,000 employees have expired or are scheduled to expire in fiscal 2021.

Multiemployer Health and Welfare Plans

The Company makes contributions to multiemployer health and welfare plans in amounts specified in the applicable collective bargaining agreements. These plans provide medical, dental, pharmacy, vision, and other ancillary benefits to active employees and retirees as determined by the trustees of each plan. The majority of the Company's contributions cover active employees and as such, may not constitute contributions to a postretirement benefit plan. However, the Company is unable to separate contribution amounts to postretirement benefit plans from contribution amounts paid to active employee plans. Total contributions to multiemployer health and welfare plans were $1.2 billion, $1.2 billion and $1.3 billion for fiscal 2020, fiscal 2019 and fiscal 2018, respectively.

Defined Contribution Plans and Supplemental Retirement Plans
Many of the Company's employees are eligible to contribute a percentage of their compensation to defined contribution plans ("401(k) Plans"). Participants in the 401(k) Plans may become eligible to receive a profit-sharing allocation in the form of a discretionary Company contribution based on employee compensation. In addition, the Company may also provide matching contributions based on the amount of eligible compensation contributed by the employee. All Company contributions to the 401(k) Plans are made at the discretion of the Company's board of directors. The Company provides supplemental retirement benefits through a Company sponsored deferred executive compensation plan, which provides certain key employees with retirement benefits that supplement those provided by the 401(k) Plans. Total contributions for these plans were $85.8 million, $63.2 million and $45.1 million for fiscal 2020, fiscal 2019 and fiscal 2018, respectively.