Frequently Asked Questions

Who does this apply to?

UFCW Local 400 members working at Kroger under our West Virginia contract and Kroger meat cutters working under our Roanoke contract.

(Please note: if you are covered by our Kroger Roanoke contract, these changes are for meat cutters only; clerks are in a separate pension plan and are not impacted by these changes.)

What is the IVAP and why did it need changes?

The Industry Variable Annuity Pension, or IVAP for short, is your pension plan. IVAP was created in July 2020 and total Kroger contributions were expected to remain at the same level as made to the separate National Pension Fund. However, contributions to IVAP were much lower than expected due to decline in active participation and significant benefits cuts were possible unless we ratified an agreement to extend the MOU through June 30, 2033. UFCW Local 400 members working at Kroger under our West Virginia contract voted 317–6 and meat cutters working under our Roanoke contract voted 33–2 to accept the changes and avoid benefit cuts.

What changes to the pension plan were accepted?

• Extending the existing agreement through June 30, 2033
• Preserving the existing non-Grandfathered Nominal Accrual Rate of 27.5% of contributions
• Guaranteeing from Kroger that there will be no further reductions in that accrual rate for the term of the agreement

What is happening with grandfathered benefits?

Due to a decline in contribution levels, the Grandfathered benefits under the IVAP are being eliminated effective for work performed on and after July 1, 2025. The elimination is not retroactive – accruals already earned will not be affected by this change.

Who is eligible for grandfathered benefits?

The Grandfathered benefits provided the same rate of accruals as provided under the National Pension Fund for participants who on June 30, 2020 were either at least age 55 with at least ten years of service under the National Pension Fund or who had 20 years of service under the National Pension Fund regardless of age.

Examples:

• If your current accrual is $30, your accrual going forward will be $24 (= $30 x 80%)

• If your current accrual is $50, your accrual going forward will be $40 (= $50 x 80%)

• If your current accrual is $70, your accrual going forward will be $56 (= $70 x 80%)

What will Kroger be required to do?

• Pay additional contributions necessary to make up for any shortfall.
• Guarantee that benefits will not be reduced below the current 27.5% Nominal Accrual Rate.
• Protect against future benefit cuts after members ratify extending MOU through June 30, 2033.

What is the impact of the accepted changes?

Here’s an example:

Jane has at least 10 years of service, combined, under this IVAP plan and the National Pension Fund.  Her accrual rate has always been 27.5% of benefit bearing contributions since the start of the IVAP. The benefit bearing contribution rate for Jane is $90/month.

• New changes – Jane will accrue a monthly Nominal Accrual Rate benefit from the plan of $24.75/month (calculated as $90.00 × 27.5%).

How can I learn more?

You can contact us directly to get answers to your questions or contact the UFCW International Union Industry Pension Fund office at 800-531-2385 or visit www.ufcwnpf.org