Staff Report

Kroger Co. said four of the United Food and Commercial Workers /multi-employer pension funds to which the company contributes will merge into a new fund effective Jan. 1.

“This new arrangement is expected to reduce Kroger’s annual pension contribution expense and will secure the pension benefits of more than 65,000 Kroger associates,” the company said Thursday.

Pending approval by unions and rating agencies, Kroger expects to contribute about $650 million to the new fund in January. Kroger said it expects to incur a charge to earnings for the fourth quarter of 2011 of about 73 cents per share. On an after-tax basis, approximately $413 million would be needed to make the contribution. The exact effect on net earnings per diluted share will depend on the actual amount contributed. the company said.

The company said that consolidation of the plans will “provide greater stability of future benefits for Kroger associates, reduce administration costs and enhance the prospects for future returns.”

The plans cover more than 65,000 Kroger workers from 14 UFCW local units.