When did Del Taco close the SERP plan to new participants?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
requirements to defer a percentage of their pay on a pre-tax basis. Our contributions under these plans were $3.3 million, $2.3 million, and $2.1 million in each fiscal years 2024, 2023 and 2022, respectively.
We also maintain an unfunded, non-qualified deferred compensation plan for key executives and other members of management whose compensation deferrals or company matching contributions to the qualified savings plan are limited due to IRC rules. Effective January 1, 2016, this non-qualified plan was amended to replace the company matching contribution with an annual restoration match that is intended to "restore" up to the full match for participants whose elective deferrals (and related company matching contributions) to the qualified savings plan were limited due to IRC rules. A participant's right to the Company restoration match vests immediately. This plan allows participants to defer up to 50% of their salary and 85% of their bonus, on a pre-tax basis. Our contributions under the non-qualified deferred compensation plan were $0.2 million in fiscal year 2024, $0.1 million in fiscal year 2023, and less than $0.1 million in fiscal year 2022.
Defined benefit pension plans — We sponsor two defined benefit pension plans, a "Qualified Plan" covering substantially all full-time employees hired prior to January 1, 2011, and an unfunded supplemental executive retirement plan ("SERP") which provides certain employees additional pension benefits and was closed to new participants effective January 1, 2007. In fiscal 2011, the Board of Directors approved changes to our Q
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to the 2025 Del Taco FDD, the company maintains an unfunded supplemental executive retirement plan (SERP) that provides additional pension benefits to certain employees. This SERP plan was closed to new participants effective January 1, 2007.
This means that individuals who became employees of Del Taco after January 1, 2007, are not eligible to participate in the SERP. The FDD also mentions that in fiscal year 2011, the Board of Directors approved changes to the Qualified Plan, where participants no longer accrue benefits effective December 31, 2015.
Prospective franchisees should be aware that these retirement plans primarily affect Del Taco's corporate employees and executives, not franchisees or their employees. However, understanding the overall compensation and benefits structure can provide insight into the company's values and how it attracts and retains talent.