Response to the following:
SAFE - MANY EMPLOYERS
SAFEWAY INC. AND SUBSIDIARIES*
Note K: Employee Benefit Plans and Collective Bargaining
Agreements
Multi-Employer Pension Plans Safeway participates in various multi-employer retirement plans, covering substantially all Company employees not covered under the Company's non-contributory retirement plans.
These multi-employer retirement plans are generally defined benefit plans and are pursuant to agreements between the Company and various unions. In many cases, specific benefit levels are not negotiated with contributing employers or in some cases even known by contributing employers. Contributions of $292.3 million in 2010, $278.1 million in 2009 and $286.9 million in 2008 were made and charged to expense.
Required
a. What were the contributions to multi-employer plans for 2010, 2009 and 2008? Comment on the trend.
b. Determine the total liability for multi-employer pension plans at the end of 2010.
c. What control does Safeway Inc. have over multi-employer pension plans?