BUFFALO, N.Y. – In a desperate move to save the pensions of hundreds of employees at Tops stores throughout New York State, Tops supermarket chain, UFCW Local one and store workers, have agreed to a reduced retirement package.
The Tops UFCW Local One Pension Fund had been rated “critical” for several years. The fund has diminishing assets that could run out in just a few years. While the agreement will mean smaller payments in retirement for Tops workers, its hoped the fund will regain solvency. Presently the pension is underfunded by $390 million.
The pension agreement resolution removes a legal hurdle that had been facing the supermarket chain as it tries to emerge from bankruptcy. Tops will also move to restructure operations and close poor performing stores. With a comprehensive financial plan in place, the company hopes to be more financially viable.