Safeway 2011 Annual Report Download - page 85

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The risks of participating in U.S. multiemployer pension plans are different from single-employer pension plans in the
following aspects:
a. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of
other participating employers.
b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the
remaining participating employers.
c. If Safeway stops participating in some of its multiemployer pension plans, Safeway may be required to pay those
plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
The Canadian multiemployer pension plans in which Safeway participates are different from U.S. multiemployer pension
plans in that should Safeway stop participating in the Canadian multiemployer pension plans, Safeway would not be
required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
Safeway’s participation in these plans for the annual period ended December 31, 2011, is outlined in the following tables.
All information in the tables is as of December 31 of the relevant year, or 2011, unless otherwise stated. The “EIN-PN”
column provides the Employer Identification Number (“EIN”) and the Plan Number (“PN”), if applicable. Unless otherwise
noted, the most recent Pension Protection Act (“PPA”) zone status available in 2011 and 2010 is for the plan’s year
ending at December 31, 2011, and December 31, 2010, respectively. The zone status is based on information that
Safeway received from the plan. Among other factors, generally, plans in critical status (“red zone”) are less than 65
percent funded, plans in endangered or seriously endangered status (“yellow zone” or “orange zone”, respectively) are
less than 80 percent funded, and plans at least 80 percent funded are said to be in the “green zone.” The “FIP/RP status
pending/implemented” column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan
(“RP”) is either pending or has been implemented by the trustees of each plan. Information related to the impact of
utilization of extended amortization periods on zone status is either not available or not obtainable without undue cost
and effort. There have been no significant changes that affect the comparability of 2011, 2010 or 2009 contributions.
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