What are the names of the defined benefit pension plans sponsored by Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Qualified Plan whereby participants no longer accrue benefits effective December 31, 2015. Benefits under both plans are based on the employees' years of service and compensation over defined periods of employment.
In the fourth quarter of fiscal 2023, the Company amended its Qualified Plan to purchase certain annuity contracts from a third-party company, relieving the Company of its related obligation for future payment (the "Annuity Purchase
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, Del Taco sponsors two defined benefit pension plans. These plans are 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. The SERP plan was closed to new participants effective January 1, 2007.
Benefits under both plans are based on the employees' years of service and compensation over defined periods of employment. The "Qualified Plan" was amended in the fourth quarter of fiscal 2023 to purchase certain annuity contracts from a third-party company, relieving Del Taco of its related obligation for future payment. As a result, Del Taco's Qualified Plan paid $14.4 million from its plan assets to the third-party, thereby reducing the plan's pension benefit obligation.
It's important to note that the FDD mentions these plans in the context of financial reporting and does not directly impact the operations of a Del Taco franchise. However, understanding the company's financial obligations, such as pension plans, can provide insight into the overall financial health and stability of the Del Taco system.