Underfunded multiemployer pension plans represent a growing drain on cash flow and earnings for the big three supermarket chains, which face the largest such risk among all U.S. businesses, according to a report issued Monday by Fitch Ratings here.
Safeway, Supervalu and Kroger, respectively, have the largest ongoing exposure to multiemployer pensions among all U.S. businesses, as ranked by Fitch, with most of their plans significantly underfunded and requiring larger contributions. Over the long term, Fitch said, contributions to these plans “could grow at a rate that cannot be fully offset by smaller increases in wage rates or healthcare costs, resulting in a creeping increase in overall labor costs.”
via US Supermarkets Ranked Top Pension Risks | Retail & Financial content from Supermarket News.