The Pension Benefit Guaranty Corp. announced Thursday it will take over three defined benefit plans from the Great Atlantic & Pacific Tea Co., Montvale, N.J., and its affiliates.
The Great Atlantic & Pacific Tea Co. Inc. Plan is 55% funded with $135 million in assets and $244.4 million in benefit liabilities; the Pathmark Stores Inc. Pension Plan is 64% funded with $327.2 million in assets and $509.5 million in benefits liabilities; and the Delaware County Dairies Inc. Hourly Employees Pension Plan has no assets and owes its eight participants $100,000 in benefits.
The PBGC expects to cover $105.6 million of the $109.4 million shortfall in the first plan, nearly all of the $182.3 million shortfall in the second plan and the entire amount in the third plan.
“PBGC is stepping in because A&P has sold the majority of its assets in bankruptcy proceedings and most of the buyers declined to keep the plans going,” the agency said in a news release.
All three plans were terminated on Nov. 30. A&P and 20 of its affiliates filed for Chapter 11 bankruptcy protection in July.
The New York-New Jersey Amalgamated Pension Plan for A&P employees has not been terminated and is an ongoing plan, the PBGC noted. It is jointly administered by UFCW Local 464A and Acme Markets Inc., which has acquired certain A&P stores. The plan has been renamed the New York-New Jersey Amalgamated Pension Plan for ACME Employees. The plan's asset size could not immediately be learned.