NOTE 8 – BENEFIT PLANS

Substantially all employees of the Company and its subsidiaries are covered by various contributory and non-contributory pension, profit sharing or 401(k) plans. The Company’s primary defined benefit pension plan, the SUPERVALU Retiree Benefit Plan, and certain supplemental executive retirement plans were closed to new participants and service crediting ended for all participants as of December 31, 2007. Pay increases were reflected in the amount of benefit earned in these plans until December 31, 2012. Most union employees participate in multiemployer retirement plans under collective bargaining agreements, unless the collective bargaining agreement provides for participation in plans sponsored by the Company. In addition to sponsoring both defined benefit and defined contribution pension plans, the Company provides healthcare and life insurance benefits for eligible retired employees under postretirement benefit plans. The Company also provides certain health and welfare benefits, including short-term and long-term disability benefits to inactive disabled employees prior to retirement. The terms of the postretirement benefit plans vary based on employment history, age and date of retirement. For most retirees, the Company provides a fixed dollar contribution and retirees pay contributions to fund the remaining cost.

Net periodic benefit expense and contributions for defined benefit pension plans and other postretirement benefit plans consisted of the following:


	Third Quarter Ended
	Pension Benefits						Other Postretirement Benefits
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Service cost	$	—		$	—		$	1		$	1
Interest cost		28			28			1			1
Expected return on assets		(33	)		(30	)		—			—
Amortization of prior service benefit		—			—			(3	)		(3	)
Amortization of net actuarial loss		23			26			1			1

Net periodic benefit expense	$	18		$	24		$	—		$	—



Contributions to benefit plans	$	(26	)	$	(9	)	$	(1	)	$	(1	)


	Year-to-Date Ended
	Pension Benefits						Other Postretirement Benefits
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Service cost	$	—		$	—		$	2		$	2
Interest cost		93			94			3			4
Expected return on assets		(109	)		(102	)		—			—
Amortization of prior service benefit		—			—			(10	)		(10	)
Amortization of net actuarial loss		78			86			4			4

Net periodic benefit expense	$	62		$	78		$	(1	)	$	—



Contributions to benefit plans	$	(118	)	$	(91	)	$	(4	)	$	(3	)

Multi-Employer Plans

The Company contributes to various multi-employer pension plans under collective bargaining agreements, primarily defined benefit pension plans. These plans generally provide retirement benefits to participants based on their service to contributing employers. Based on available information, the Company believes that some of the multi-employer plans to which it contributes are underfunded. Company contributions to these plans could increase in the near term. However, the amount of any increase or decrease in contributions will depend on a variety of factors, including the results of the Company’s collective bargaining efforts, investment returns on the assets held in the plans, actions taken by the trustees who manage the plans and requirements under the Pension Protection Act and Section 412(e) of the Internal Revenue Code. Furthermore, if the Company were to significantly reduce contributions, exit certain markets or otherwise cease making contributions to these plans, it could trigger a partial or complete withdrawal that would require the Company to recognize its proportionate share of a plan’s unfunded vested benefits. During each of the year-to-date periods ended November 30, 2013 and December 1, 2012, the Company contributed $28 to these plans.

The Company also makes contributions to multiemployer health and welfare plans in amounts set forth in the related collective bargaining agreements. A small minority of collective bargaining agreements contain reserve requirements that may trigger unanticipated contributions resulting in increased healthcare expenses. If these healthcare provisions cannot be renegotiated in a manner that reduces the prospective healthcare cost as the Company intends, the Company’s Selling and administrative expenses could increase in the future.