U.S. Foods Holding Corp., Rosemont, Ill., plans to spin off active participants with small amounts of accrued benefits and retirees in one of its defined benefit plans into a new plan, which it will then terminate, the company disclosed Tuesday in a 10-Q filing with the SEC.
Before the completion of the termination, the company will offer an immediate lump-sum payment and will purchase a group annuity contract from an insurance company to transfer the liabilities of those participants who do not elect the lump sum.
The total liabilities affected by these transactions will be about $75 million, the filing shows.
Separately, in the third quarter, U.S. Foods offered a lump-sum to some former employees who were vested in its defined benefit plan who had yet to retire. How many of those participants were offered the lump sum and how many elected it was not disclosed.
As of Dec. 31, the company's defined benefit plan assets totaled $836 million, while projected benefit obligations totaled $871 million, for a funding ratio of 96%, according to the company's most recent 10-K filing.
Company spokeswoman Sara Matheu could not be immediately reached to provide further information.
