USFD - United Natural Foods' Pension Problems: Not As Significant As You Think
- UNFI acquired significant legacy pension arrangements as part of their Supervalu acquisition.
- While plan rules are highly complicated, I have attempted to explain the most likely outcomes with UNFI's arrangements.
- Cash contributions to plans are set to sharply decrease in FY21 - $7m for multiemployer plans, and $16m for single employer plans.
- An investment in the highly-levered UNFI might not be for everyone, but fears regarding their pension liabilities are likely misplaced.
For further details see:
United Natural Foods' Pension Problems: Not As Significant As You Think