P. Retirement Plans

The Company and its consolidated subsidiaries maintain various defined contribution retirement plans covering substantially all of its employees. Dover, acquired in September 2000, also provides retirement benefits through a defined benefit plan as described below.

Retirement costs of multi-employer union plans consist of contributions determined in accordance with the respective collective bargaining agreements. Retirement benefits for non-union employees are provided through the Courier Profit Sharing and Savings Plan (“PSSP”), which includes an Employee Stock Ownership Plan (“ESOP”). Retirement costs included in the accompanying financial statements amounted to approximately $3,535,000 in 2014, $3,530,000 in 2013, and $3,085,000 in 2012. At both September 27, 2014 and September 28, 2013, the Company had $1.5 million accrued for the PSSP, which is included in the accompanying consolidated balance sheet under the caption “Other current liabilities.”

The PSSP is qualified under Section 401(k) of the Internal Revenue Code. The plan allows eligible employees to contribute up to 100% of their compensation, subject to IRS limitations, with the Company matching 100% of the first 2% of pay plus 25% of the next 4% of pay contributed by the employee. The Company also makes contributions to the plan annually based on profits each year for the benefit of all eligible non-union employees.

Shares of Company common stock may be allocated to participants’ ESOP accounts annually based on their compensation as defined in the plan. During the last three years, no such shares were allocated to eligible participants. At September 27, 2014, the ESOP held 278,842 shares on behalf of the participants.

Dover has a noncontributory, defined benefit pension plan covering substantially all of its employees. As of December 31, 2001, Dover employees became eligible to participate in the PSSP. As such, plan benefits under the Dover defined benefit plan (the “Dover plan”) were frozen as of that date.

The following tables provide information regarding the Dover plan:

Other changes in plan assets and obligations	(000’s omitted)
recognized in other comprehensive income (loss):	2014			2013
Accumulated other comprehensive loss at beginning of year	$	(818	)	$	(949	)
Net gain/(loss) incurred in year, net of tax	(88		)	44
Amortization of actuarial net losses, net of tax	83			87
Accumulated other comprehensive loss at end of year	$	(823	)	$	(818	)

	(000’s omitted)
Change in projected benefit obligation:	2014			2013
Benefit obligation at beginning of year	$	2,837		$	3,183
Administrative cost	7			7
Interest cost	111			100
Actuarial (gain)/loss	147			(155		)
Benefits paid	(301		)	(298		)
Benefit obligation at end of year	$	2,801		$	2,837

Change in plan assets:	2014				2013
Fair value of plan assets at beginning of year	$	2,122			$	2,323
Actual return on plan assets	102				34
Employer contributions	103				63
Benefits paid	(301			)	(298			)
Fair value of plan assets at end of year	$	2,026			$	2,122

Funded status at end of year	$	(775		)	$	(715		)

Components of net periodic benefit cost:	2014				2013				2012
Administrative cost	$		7		$		7		$	7
Interest cost	111				100				116
Expected return on plan assets	(122			)	(132			)	(129		)
Amortization of unrecognized net loss	133				138				116
Net periodic benefit cost	$		129		$		113		$	110

Weighted-average assumptions used to determine:

Projected benefit obligation	2014		2013		2012
Discount rate	3.75	%	4.00	%	3.25	%
Rate of compensation increase	None		None		None
Expected return on plan assets	6.00	%	6.00	%	6.00	%

Net periodic benefit cost	2014		2013		2012
Discount rate	4.00	%	3.25	%	4.00	%
Rate of compensation increase	None		None		None
Expected return on plan assets	6.00	%	6.00	%	6.00	%

The discount rate and expected return on plan assets used for calculating costs and benefit obligations are determined by the Company’s management after considering actuary recommendations. The assumed discount rates are based on the yield on high quality corporate bonds as of the applicable measurement date. Accrued pension cost of $775,000 at September 27, 2014 and $715,000 at September 28, 2013 was included in the accompanying consolidated balance sheet under the caption “Other liabilities.”

The Company expects to make cash contributions of approximately $139,000 to its pension plan in 2015. The Company’s strategy is generally to achieve a long-term rate of return sufficient to satisfy plan liabilities while minimizing plan expenses and mitigating downside risks. Assets are currently allocated 100% to Guaranteed Insurance Contracts, however, the Company reviews this weighting from time to time in order to achieve overall objectives in light of current circumstances. The fair value of the insurance contracts was based on negotiated value and the underlying investments, and considers the credit worthiness of the issuer of such contracts. Insurance contracts held by the Dover plan are issued by a well-known, highly rated insurance company. The underlying investments are government, asset-backed and fixed income securities.

Estimated future benefit payments under the Dover plan over the next five fiscal years are as follows:

		2015			2016			2017			2018			2019
Estimated benefit payments		$	258,000		$	257,000		$	247,000		$	234,000		$	222,000

Multi-Employer Pension Plans

The Company contributes to two multi-employer pension plans under collective bargaining agreements, each of which was renewed in fiscal 2013, covering certain employees at its book manufacturing facility in Philadelphia. Multi-employer pension plans cover employees of and receive contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements, and the assets contributed by each employer may be used to fund the benefits of all employees covered by the plan.

The risks of participating in these multi-employer benefit plans are different from single-employer benefit plans in the following aspects:

Assets contributed to the multi-employer benefit plan by one employer may be used to provide benefits to employees of other participating employers.

If a participating employer stops contributing to the multi-employer benefit plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

If the Company stops participating in either of its multi-employer pension plans, the Company may be required to pay those plans an amount based on its allocable share of the underfunded status of the plan, referred to as a withdrawal liability, subject to safe harbors based on its annual contribution level.

The Company is required to make contributions to the multi-employer plans in accordance with two separate collective bargaining agreements covering the Company’s employees in each plan as well as the terms of such plan.

The following table provides key information relative to each of the multi-employer pension plans for the fiscal years ended September 27, 2014, September 28, 2013, and September 29, 2012:

Multi-employer Pension Plan		Company Contributions (000’s omitted)						Expiration Date of Collective- Bargaining
Name	EIN Number	2014		2013		2012		Agreement
Bindery Industry Employers
GCC/IBT Pension Plan	23-6209755	$	187	$	193	$	198	03/04/18
GCIU — Employer
Retirement Benefit Plan	91-6024903	170		167		131		04/30/18

The Company’s contributions for the Bindery Industry Employers GCC/IBT Pension Plan represented approximately 70% of total contributions in each of the last three years. This plan currently includes only two other contributing employers. The Company contributed less than 5% of total contributions to the GCIU — Employer Retirement Benefit Plan in each of the past three years. The Company currently estimates that it would be required to contribute approximately $357,000 to these two plans in fiscal 2015. These contributions could significantly increase due to other employers’ withdrawals or changes in the funded status of the plans. Both plans are estimated to be underfunded as of September 27, 2014 and have a Pension Protection Act zone status of critical (“red”). Such status identifies plans that are less than 65% funded. Rehabilitation plans have been adopted for each plan.

On January 6, 2013, a new 5-year contract was entered into for the Bindery Industry Employers GCC/IBT Pension Plan. This new contract provides the Company with the right to withdraw from the plan if certain future events occur. If one of these future events were to occur and the Company exercises its right to withdraw from the plan, the potential withdrawal liability would equal the Company’s proportionate share of the unfunded vested benefits based on the year in which the liability is triggered, subject to safe harbors based on the Company’s annual contribution level. In addition, a new 5-year contract was entered into for the GCIU — Employer Retirement Benefit Plan effective May 1, 2013. The Company was not subject to surcharges after entering the new contracts for both plans.

The Company believes that the multi-employer pension plans in which it currently participates have significant unfunded vested benefits. Due to uncertainty regarding future withdrawal liability triggers or further reductions in participation or withdrawal by other employers, the Company is unable to determine the amount and timing of its future withdrawal liability, if any. The Company’s participation in these multi-employer pension plans could have a material adverse impact on its financial condition, results of operations or liquidity. Disagreements over a potential withdrawal liability for either plan may lead to legal disputes.