The Company has four executive benefit plans: the Supplemental Savings Incentive Plan, the Long-Term Retention Plan, the Officer Retention Plan and the Long-Term Performance Plan.

Pursuant to the Supplemental Savings Incentive Plan, as amended and restated effective November 1, 2011, eligible participants may elect to defer a portion of their annual salary and bonus. Participants are immediately vested in all deferred contributions they make and become fully vested in Company contributions upon completion of five years of service, termination of employment due to death or retirement or a change in control. Participant deferrals and Company contributions made in years prior to 2006 are invested in either a fixed benefit option or certain investment funds specified by the Company. Beginning in 2010, the Company may elect at its discretion to match up to 50% of the first 6% of salary, excluding bonuses, deferred by the participant. During 2019, 2018 and 2017, the Company matched 50% of the first 6% of salary, excluding bonuses, deferred by the participant. The Company may also make discretionary contributions to participants’ accounts. The liability under this plan was as follows:

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	8,893	$	8,255
Noncurrent liabilities		79,921		73,524
Total liability - Supplemental Savings Incentive Plan	$	88,814	$	81,779

Under the Long-Term Retention Plan, effective March 5, 2014, the Company accrues a defined amount each year for an eligible participant based upon an award schedule. Amounts awarded may earn an investment return based on certain investment funds specified by the Company. Benefits under the Long-Term Retention Plan are 50% vested until age 51. Beginning at age 51, the vesting percentage increases by 5% each year until the benefits are fully vested at age 60. Participants receive payments from the plan upon retirement or, in certain instances, upon termination of employment. Payments are made in the form of monthly installments over a period of 10, 15 or 20 years. The liability under this plan was as follows:

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	102	$	42
Noncurrent liabilities		3,199		2,140
Total liability - Long-Term Retention Plan	$	3,301	$	2,182

Under the Officer Retention Plan, as amended and restated effective January 1, 2007, eligible participants may elect to receive an annuity payable in equal monthly installments over a 10-, 15- or 20-year period commencing at retirement or, in certain instances, upon termination of employment. The benefits under the Officer Retention Plan increase with each year of participation as set forth in an agreement between the participant and the Company. Benefits under the Officer Retention Plan are 50% vested until age 51. Beginning at age 51, the vesting percentage increases by 5% each year until the benefits are fully vested at age 60. The liability under this plan was as follows:

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	3,267	$	3,014
Noncurrent liabilities		41,062		42,179
Total liability - Officer Retention Plan	$	44,329	$	45,193

Under the Long-Term Performance Plan, as amended and restated effective January 1, 2018, the Compensation Committee establishes dollar amounts to which a participant shall be entitled upon attainment of the applicable performance measures. Bonus awards under the Long-Term Performance Plan are made based on the relative achievement of performance measures in terms of the Company-sponsored objectives or objectives related to the performance of the individual participants or of the subsidiary, division, department, region or function in which the participant is employed. The liability under this plan was as follows:

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	7,252	$	5,234
Noncurrent liabilities		8,416		5,244
Total liability - Long-Term Performance Plan	$	15,668	$	10,478

There are two Company-sponsored pension plans. The Primary Plan was frozen as of June 30, 2006 and no benefits accrued to participants after this date. The Bargaining Plan is for certain employees under collective bargaining agreements. Benefits under the Bargaining Plan are determined in accordance with negotiated formulas for the respective participants. Contributions to the plans are based on actuarially determined amounts and are limited to the amounts currently deductible for income tax purposes.

Each year, the Company updates its mortality assumptions used in the calculation of its pension liability using The Society of Actuaries’ latest mortality tables. In 2019 and 2018, the mortality table reflected a lower increase in longevity.

The following tables set forth pertinent information for the two Company-sponsored pension plans:

	Fiscal Year
(in thousands)	2019			2018
Projected benefit obligation at beginning of year	$	278,957		$	303,918
Service cost		4,853			5,484
Interest cost		12,299			11,350
Actuarial (gain) / loss		47,651			(29,692	)
Benefits paid		(11,456	)		(12,103	)
Projected benefit obligation at end of year	$	332,304		$	278,957

The projected benefit obligations and the accumulated benefit obligations for both Company-sponsored pension plans were in excess of plan assets as of December 29, 2019 and December 30, 2018. The accumulated benefit obligation was $332.3 million on December 29, 2019 and $279.0 million on December 30, 2018.

	Fiscal Year
(in thousands)	2019			2018
Fair value of plan assets at beginning of year	$	256,168		$	258,513
Actual return on plan assets		29,549			(10,242	)
Employer contributions		4,900			20,000
Benefits paid		(13,918	)		(12,103	)
Fair value of plan assets at end of year	$	276,699		$	256,168

(in thousands)	December 29, 2019			December 30, 2018
Projected benefit obligation	$	(332,304	)	$	(278,957	)
Plan assets at fair value		276,699			256,168
Net funded status	$	(55,605	)	$	(22,789	)

(in thousands)	December 29, 2019			December 30, 2018
Current liabilities	$	-		$	-
Noncurrent liabilities		(55,605	)		(22,789	)
Total liability - pension plans	$	(55,605	)	$	(22,789	)

	Fiscal Year
(in thousands)	2019			2018			2017
Service cost	$	4,853		$	5,484		$	2,553
Interest cost		12,299			11,350			11,938
Expected return on plan assets		(10,290	)		(15,415	)		(13,597	)
Recognized net actuarial loss		3,688			3,830			3,402
Amortization of prior service cost		22			25			28
Net periodic pension cost	$	10,572		$	5,274		$	4,324

	Fiscal Year
	2019			2018			2017
Projected benefit obligation at the measurement date:
Discount rate - Primary Plan		3.36	%		4.47	%		3.80	%
Discount rate - Bargaining Plan		3.61	%		4.63	%		3.90	%
Weighted average rate of compensation increase	N/A			N/A			N/A
Net periodic pension cost for the fiscal year:
Discount rate - Primary Plan		4.47	%		3.80	%		4.44	%
Discount rate - Bargaining Plan		4.63	%		3.90	%		4.49	%
Weighted average expected long-term rate of return of plan assets - Primary Plan⁽¹⁾		5.00	%		6.00	%		6.00	%
Weighted average expected long-term rate of return of plan assets - Bargaining Plan⁽¹⁾		5.25	%		6.00	%		6.00	%
Weighted average rate of compensation increase	N/A			N/A			N/A

The decrease in the discount rates in 2019, as compared to 2018, was the primary driver of actuarial losses in 2019. The increase in the discount rates in 2018, as compared to 2017, was the primary driver of actuarial gains in 2018. The actuarial gains and losses, net of tax, were recorded in other comprehensive loss.

(in thousands)	Anticipated Future Pension Benefit Payments for the Fiscal Years
2020	$	12,107
2021		12,824
2022		13,553
2023		14,358
2024		15,061
2025 – 2029		84,464

Contributions to the two Company-sponsored pension plans are expected to be in the range of $7 million to $12 million in 2020.

All assets in the Company’s pension plans are invested in institutional investment funds managed by professional investment advisors which hold U.S. equities, international equities and debt securities. The objective of the Company’s investment philosophy is to earn the plans’ targeted rate of return over longer periods without assuming excess investment risk. The weighted average expected long-term rate of return assumption for the pension plan assets, which will be used to compute 2020 net periodic pension costs, is based upon target asset allocation and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class. The Company evaluates the rate of return assumption on an annual basis. The Company’s pension plans target asset allocation for 2020, actual asset allocation at December 29, 2019 and December 30, 2018, and the weighted average expected long-term rate of return by asset category were as follows:

	Target			Percentage of Plan						Weighted Average Expected
	Allocation			Assets at Fiscal Year-End						Long-Term Rate of Return
	2020			2019			2018			2020⁽¹⁾
U.S. debt securities		65	%		57	%		64	%		3.3	%
U.S. equity securities		26	%		24	%		25	%		1.6	%
International debt securities		0	%		8	%		0	%		0.0	%
International equity securities		7	%		9	%		9	%		0.5	%
Cash and cash equivalents		2	%		2	%		2	%		0.1	%
Total		100	%		100	%		100	%		5.5	%

Debt securities as of December 29, 2019 are comprised of investments in government and corporate bonds with a weighted average maturity of approximately 14 years and an institutional high yield bond fund with a modified duration of approximately three years. U.S. equity securities include: (i) large capitalization domestic equity funds as represented by the S&P 500 index, (ii) mid-capitalization domestic equity funds as represented by the Russell Mid Cap Growth and Mid Cap Value indexes, (iii) small-capitalization domestic equity funds as represented by the Russell Small Cap Growth and Value indexes and (iv) alternative investment funds as represented by the HFRX Global index and the MSCI US REIT index. International equity securities include companies from both developed and emerging markets outside the United States. Cash and cash equivalents have a weighted average duration of less than three months.

The following table summarizes the Company’s pension plan assets held in trust funds. The underlying investments held in trust funds are actively managed equity securities and fixed income investment vehicles that are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.

(in thousands)	December 29, 2019		December 30, 2018
Pension plan assets held in trust funds - fixed income	$	179,153	$	164,307
Pension plan assets held in trust funds - equity securities		89,861		86,107
Pension plan assets held in trust funds - cash equivalents		7,071		4,975
Total pension plan assets held in trust funds	$	276,085	$	255,389

In addition, the Company had other level 1 pension plan assets related to its equity securities of $0.6 million in 2019 and $0.8 million in 2018. The level 1 assets had quoted market prices in active markets for identical assets available for fair value measurement.

The Company does not have any unobservable inputs (Level 3) pension plan assets.

The Company provides a 401(k) Savings Plan for substantially all of its employees who are not part of collective bargaining agreements and for certain employees under collective bargaining agreements. The Company’s matching contribution for employees who are not part of collective bargaining agreements is discretionary, with the option to match contributions for eligible participants up to 5% based on the Company’s financial results. For all years presented, the Company matched the maximum 5% of participants’ contributions. The Company’s matching contributions for employees who are part of collective bargaining agreements are determined in accordance with negotiated formulas for the respective employees. The total expense for the Company’s matching contributions to the 401(k) Savings Plan was $21.7 million in 2019, $21.2 million in 2018 and $18.4 million in 2017.

The Company provides postretirement benefits for employees meeting specified criteria. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Company does not pre-fund these benefits and has the right to modify or terminate certain of these benefits in the future.

The following tables set forth pertinent information for the Company’s postretirement benefit plan:

	Fiscal Year
(in thousands)	2019			2018
Benefit obligation at beginning of year	$	64,461		$	76,665
Service cost		1,496			1,854
Interest cost		2,750			2,694
Plan participants’ contributions		750			776
Actuarial gain		(4,191	)		(14,552	)
Benefits paid		(3,296	)		(3,042	)
Medicare Part D subsidy reimbursement		86			66
Benefit obligation at end of year	$	62,056		$	64,461

	Fiscal Year
(in thousands)	2019			2018
Fair value of plan assets at beginning of year	$	-		$	-
Employer contributions		2,460			2,200
Plan participants’ contributions		750			776
Benefits paid		(3,296	)		(3,042	)
Medicare Part D subsidy reimbursement		86			66
Fair value of plan assets at end of year	$	-		$	-

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	2,831	$	3,219
Noncurrent liabilities		59,225		61,242
Total liability - postretirement benefits	$	62,056	$	64,461

	Fiscal Year
(in thousands)	2019			2018			2017
Service cost	$	1,496		$	1,854		$	2,232
Interest cost		2,750			2,694			3,636
Recognized net actuarial loss		730			1,889			2,942
Amortization of prior service cost		(1,293	)		(1,847	)		(2,982	)
Net periodic postretirement benefit cost	$	3,683		$	4,590		$	5,828

	Fiscal Year
	2019			2018			2017
Benefit obligation discount rate at measurement date		3.32	%		4.41	%		3.72	%
Net periodic postretirement benefit cost discount rate for fiscal year		4.41	%		3.72	%		4.36	%

Postretirement benefit expense - Pre-Medicare:
Weighted average healthcare cost trend rate		7.13	%		7.82	%		6.94	%
Trend rate graded down to ultimate rate		4.50	%		4.50	%		4.50	%
Ultimate rate year	2026			2025			2025

Postretirement benefit expense - Post-Medicare:
Weighted average healthcare cost trend rate		7.11	%		7.74	%		8.07	%
Trend rate graded down to ultimate rate		4.50	%		4.50	%		4.50	%
Ultimate rate year	2026			2025			2025

A 1% increase or decrease in the annual healthcare cost trend would have impacted the postretirement benefit obligation and service cost and interest cost of the Company’s postretirement benefit plan as follows:

(in thousands)	Anticipated Future Postretirement Benefit Payments Reflecting Expected Future Service
2020	$	2,831
2021		3,003
2022		3,122
2023		3,169
2024		3,439
2025 – 2029		19,138

Anticipated future postretirement benefit payments are shown net of Medicare Part D subsidy reimbursements, which are not material.

A reconciliation of the amounts in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost is as follows:

(in thousands)	December 30, 2018			Actuarial Gain (Loss)			Reclassification Adjustments			December 29, 2019
Pension Plans:
Actuarial loss	$	(119,595	)	$	(30,855	)	$	3,688		$	(146,762	)
Prior service costs		(48	)		-			22			(26	)
Postretirement Medical:
Actuarial loss		(14,658	)		4,192			730			(9,736	)
Prior service credits		1,293			-			(1,293	)		-
Total within accumulated other comprehensive loss	$	(133,008	)	$	(26,663	)	$	3,147		$	(156,524	)

The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic cost during 2020 are as follows:

(in thousands)	Pension Plans		Postretirement Medical		Total
Actuarial loss	$	4,758	$	350	$	5,108
Prior service cost		19		-		19
Total expected to be recognized during 2020	$	4,777	$	350	$	5,127

Certain employees of the Company whose employment is covered under collective bargaining agreements participate in a multiemployer pension plan, the Employers-Teamsters Local Union Nos. 175 and 505 Pension Fund (the “Teamsters Plan”). The Company makes monthly contributions to the Teamsters Plan on behalf of such employees. The collective bargaining agreements covering the Teamsters Plan expire at various times through 2022. The Company expects these agreements will be re-negotiated.

Participating in the Teamsters Plan involves certain risks in addition to the risks associated with single employer plans, as contributed assets are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the Teamsters Plan, the unfunded obligations of the Teamsters Plan may be borne by the remaining participating employers. If the Company chooses to stop participating in the Teamsters Plan, the Company could be required to pay the Teamsters Plan a withdrawal liability based on the underfunded status of the Teamsters Plan. The Company does not anticipate withdrawing from the Teamsters Plan.

In 2015, the Company increased its contribution rates to the Teamsters Plan, with additional increases occurring annually, as part of a rehabilitation plan, which was incorporated into the renewal of collective bargaining agreements with the unions effective April 28, 2014 and adopted by the Company as a rehabilitation plan effective January 1, 2015. This is a result of the Teamsters Plan being certified by its actuary as being in “critical” status for the plan year beginning January 1, 2013.

The Company’s participation in the Teamsters Plan is outlined in the table below. A red zone represents less than 80% funding and requires a financial improvement plan (“FIP”) or rehabilitation plan (“RP”).

Fiscal Year

(in thousands)

2019

2018

2017

Pension Protection Act Zone Status

Red

FIP or RP pending or implemented

Yes

Surcharge imposed

Yes

Contribution

987

763

800

According to the Teamsters Plan’s Form 5500 for both the plan years ending December 30, 2018 and December 31, 2017, the Company was not listed as providing more than 5% of the total contributions. At the date these financial statements were issued, a Form 5500 was not available for the plan year ending December 29, 2019.

The Company has a liability recorded for withdrawing from a multiemployer pension plan in 2008 and is required to make payments of approximately $1 million to this multiemployer pension plan each year through 2028. As of December 29, 2019, the Company had $6.4 million remaining on this liability.