For the Del Taco defined benefit pension plans, how are benefits determined?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Defined benefit pension plans — The Company sponsors two defined benefit pension plans, a frozen "Qualified Plan" covering substantially all fulltime 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. Benefits under both plans are based on the employee's years of service and compensation over defined periods of employment.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the company sponsors two defined benefit pension plans: a frozen "Qualified Plan" for full-time employees hired before January 1, 2011, and an unfunded supplemental executive retirement plan (SERP) for certain employees, which closed to new participants on January 1, 2007.
Benefits under both of Del Taco's plans are determined based on an employee's years of service and their compensation over defined periods of employment. This means that the longer an employee worked for Del Taco and the higher their compensation during those defined periods, the greater their pension benefits will be.
For a prospective franchisee, this information is relevant in understanding the overall compensation and benefits structure that Del Taco provides to its employees. While franchisees are not direct participants in these specific pension plans, the information provides insight into Del Taco's approach to employee benefits, which can be a factor in attracting and retaining qualified staff at the franchise level. Franchisees may want to inquire further about current employee benefit packages and how they compare to industry standards to ensure they can compete effectively in the labor market.