NOTE 9–BENEFIT PLANS

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


	Second Quarter Ended
	Pension Benefits						Other Postretirement Benefits
	September 6, 2014			September 7, 2013			September 6, 2014			September 7, 2013
	(12 weeks)			(12 weeks)			(12 weeks)			(12 weeks)
Service cost	$	—		$	—		$	—		$	—
Interest cost		27			28			1			1
Expected return on assets		(36	)		(33	)		—			—
Amortization of prior service benefit		—			—			(4	)		(3	)
Amortization of net actuarial loss		15			24			1			1

Net periodic benefit expense	$	6		$	19		$	(2	)	$	(1	)

Contributions to benefit plans	$	(22	)	$	(21	)	$	(1	)	$	(2	)


	Year-To-Date Ended
	Pension Benefits						Other Postretirement Benefits
	September 6, 2014			September 7, 2013			September 6, 2014			September 7, 2013
	(28 weeks)			(28 weeks)			(28 weeks)			(28 weeks)
Service cost	$	—		$	—		$	—		$	1
Interest cost		66			65			2			2
Expected return on assets		(83	)		(76	)		—			—
Amortization of prior service benefit		—			—			(8	)		(7	)
Amortization of net actuarial loss		34			55			2			3

Net periodic benefit expense	$	17		$	44		$	(4	)	$	(1	)

Contributions to benefit plans	$	(67	)	$	(92	)	$	(1	)	$	(3	)

During the year-to-date periods ended September 6, 2014 and September 7, 2013, the Company contributed $21 and $19, respectively, to various multiemployer pension plans, primarily defined benefit pension plans, under collective bargaining agreements.

In the second quarter of fiscal 2015, the Company announced its plans to offer a lump sum payment option to certain former employees who are deferred vested participants in the SUPERVALU INC. Retirement Plan (the “Plan”) and who have not yet begun receiving monthly pension benefit payments. The Company expects to incur a non-cash settlement charge in the range of approximately $50 to $65 from the acceleration of a portion of the accumulated unrecognized actuarial loss in the third quarter of 2015.

The estimated settlement charge is based on the lump sum election rate of eligible participants and the Plan’s estimated funded status at September 30, 2014 using current discount rates, market values of Plan assets, and the anticipated adoption of the RP-2014 Generational Mortality Table (using scale MP-2014). The actual settlement charge could differ from the estimated range due to changes in discount rates, return on Plan assets and the final adoption of the RP-2014 Generational Mortality Table. The voluntary lump sum payments are expected to be completed in the Company’s third quarter of fiscal 2015.

In August 2014, the Highway and Transportation Funding Act of 2014, which included an extension of pension funding interest rate relief, was signed into law. The Highway and Transportation Funding Act includes a provision for interest rate stabilization for defined benefit employee pension plans. As a result of this stabilization provision, the Company expects its required pension contributions to the SUPERVALU INC. Retirement Plan to decrease significantly for the next several years. The Company anticipates fiscal 2015 contributions to pension and other postretirement benefit plans, including excess contributions under the amended term sheet with AB Acquisition LLC (“AB Acquisition”) and the Pension Benefit Guaranty Corporation (the “PBGC”) as described in Note 15—Subsequent Events, will be approximately $120 to $125.