A&P approved to end retiree benefits, provide relief through Jan. 31

By Mark Reccek

Bethlehem, Pa., Jan. 8 – The Great Atlantic & Pacific Tea Co. Inc. (A&P) secured court authorization to terminate all obligations to provide funding for retiree benefits and provide related relief through Jan. 31, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

According to the order, the related relief includes the company providing continued funding for retiree medical, hospitalization, post-employment long-term disability benefits and life insurance or death benefits through Jan. 31 for all union retirees.

Additionally, the company will pay for insurance premiums for eligible retirees or provide the covered benefit to eligible retirees or their beneficiaries, provided the eligible retirees benefits are provided through the Horizon Medical Plan or Horizon Blue Cross Blue Shield of New Jersey plan.

Also, the order indicated that for those retirees from Local 1262 UFCW receiving benefits from the Pathmark Health Fund, the company will pay each Horizon-covered retiree and each 1262 Pathmark Fund retiree the gross amount of $1,000 for the month of January.

Great Atlantic & Pacific Tea, a Montvale, N.J.-based supermarket chain, filed for bankruptcy on Dec. 12, 2010. Its Chapter 11 case number is 10-24549.

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