3. Employee Retirement Benefit Plans

6 Months Ended

Jun. 30, 2017

Notes

3. Employee Retirement Benefit Plans

3.EMPLOYEE RETIREMENT BENEFIT PLANS  

Pension and Retirement Obligations

In 2015, the Company terminated a defined pension plan and settled the resulting liabilities in exchange for a fixed obligation secured by the Company’s assets which requires payment of ten annual installments of $750 to the Pension Benefit Guaranty Corporation due annually on October 31. The Pension Settlement Obligation is recorded net of imputed interest expense at 7%, as a liability on the balance sheet.

The Company’s only remaining pension obligation is the Supplemental Executive Retirement Plan (“SERP”).

Employer Contributions

The Company is not currently required to fund the SERP.  All benefit payments are made by the Company directly to those who receive benefits from the SERP.  As such, these payments are treated as both contributions and benefits paid for reporting purposes. The Company expects to contribute and pay SERP benefits of approximately $500 in the next 12 months.  

Components of Net Periodic Benefit Expense

	Supplemental Executive
	Retirement Plan
	June 30,	July 1,
For the three months ended:	2017	2016
Interest cost	$39	$48
Amortization of actuarial loss	18	20
Amortization of prior year service cost	-	(3)
Net periodic benefit expense	$57	$65

	Supplemental Executive
	Retirement Plan
	June 30,	July 1,
For the six months ended:	2017	2016
Interest cost	$78	$95
Amortization of actuarial loss	37	41
Amortization of prior year service cost	-	(5)
Net periodic benefit expense	$115	$131