What was the projected benefit obligation for the Del Taco SERP in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
no plan assets as of September 29, 2024 and October 1, 2023. The following sets forth the PBO, ABO, and fair value of plan assets of our pension plans as of the measurement date in each fiscal year (in thousands):
| 2024 | 2023 | |
|---|---|---|
| Qualified Plan: | ||
| Projected benefit obligation | $ 297,920 | $ 266,345 |
| Accumulated benefit obligation | $ 297,920 | $ 266,345 |
| Fa |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the projected benefit obligation for the Del Taco Supplemental Executive Retirement Plan (SERP) in 2024 was $57,097. This figure represents the estimated present value of future benefits that Del Taco employees have earned under the SERP as of that date. This obligation reflects Del Taco's commitment to providing retirement benefits to its executives through this specific plan. The accumulated benefit obligation was also $57,097.
The SERP is a non-qualified retirement plan designed to provide additional retirement income to select executives beyond what is offered through the company's qualified retirement plans. The projected benefit obligation is an accounting measure that estimates the future cost of these benefits based on factors such as employee demographics, compensation levels, and actuarial assumptions. The fair value of plan assets for the SERP was not listed in 2024.
For a prospective franchisee, understanding the financial health and obligations of the franchisor is crucial. While the SERP obligations do not directly impact franchisees, they provide insight into the overall financial management and long-term liabilities of Del Taco. Franchisees should consider these factors as part of their due diligence to assess the stability and sustainability of the franchise system. Reviewing these obligations in conjunction with other financial metrics can offer a more comprehensive view of the franchisor's financial position.
It is important to note that the SERP is just one component of Del Taco's overall employee benefits program. Prospective franchisees may want to inquire about the company's other retirement plans, healthcare benefits, and compensation policies to gain a better understanding of its approach to human capital management. This information can be valuable in assessing the company's ability to attract and retain talent, which can ultimately impact the success of the franchise system.