What amount of benefits were paid related to SERP for Del Taco in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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Obligations and funded status — The following table provides a reconciliation of the changes in benefit obligations, plan assets, and funded status of our retirement plans for each fiscal year (in thousands):
| Qualifi | ed I | Plan | SERP | Postretirement I | Health Plans | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||
| Change in benefit obligation: | ||||||||||
| Obligation at beginning of year | $ 266,345 | $ | 293,342 | $ | 53,513 | $ 56,891 | $ | 11,891 | $ | 12,577 |
| Interest cost | 15,791 | 16,068 | 3,188 | 3,149 | 711 | 700 | ||||
| Participant contributions | _ | _ | _ | _ | 102 | 101 | ||||
| Actuarial loss (gain) | 29,769 | (13,792) | 5,199 | (1,287) | 1,186 | (383) | ||||
| Benefits paid | (13,985) | (14,884) | (4,803) | (5,240) | (1,268) | (1,145) | ||||
| Settlements and other | _ | (14,389) | _ | _ | 32 | 41 | ||||
| Obligation at end of year | $ 297,920 | $ | 266,345 | $ | 57,097 | $ 53,513 | $ | 12,654 | $ | 11,891 |
| Change in plan assets: | ||||||||||
| Fair value at beginning of year | $ 275,143 | $ | 303,951 | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, benefits paid related to SERP (Supplemental Executive Retirement Plan) in 2024 totaled $4,803. This figure represents the amount disbursed to participants from the SERP during the specified year.
The SERP is a non-qualified retirement plan designed to provide additional retirement income to select management or highly compensated employees beyond what is available through the company's qualified retirement plans. These plans often serve as a tool to attract, retain, and reward key executives.
For a prospective Del Taco franchisee, this information provides insight into the company's executive compensation and benefit strategies. While it does not directly impact the franchisee's day-to-day operations, it offers a glimpse into the financial health and management philosophy of the Del Taco organization. Understanding these aspects can contribute to a more informed decision about investing in a Del Taco franchise.