Note K - Retirement Benefit Plans

The Company has non-contributory defined benefit pension plans covering most U.S. employees. Plan benefits are generally based upon age at retirement, years of service and, for its salaried plan, the level of compensation. The Company also sponsors unfunded non-qualified supplemental retirement plans that provide certain former officers with benefits in excess of limits imposed by federal tax law.

The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements.

Significant disclosures relating to these benefit plans for the three and nine months periods ended September 28, 2019 and September 29, 2018 are as follows:

	Pension Benefits
	Three Months Ended								Nine Months Ended
	September 28, 2019				September 29, 2018				September 28, 2019				September 29, 2018
Service cost		$	263,852			$	329,959			$	791,558			$	989,881
Interest cost			879,080				776,790				2,637,240				2,330,373
Expected return on plan assets			(1,190,329	)			(1,304,879	)			(3,570,990	)			(3,914,637	)
Amortization of prior service cost			24,845				32,691				74,535				98,072
Amortization of the net loss			290,548				277,528				871,647				832,584
Net periodic benefit cost		$	267,996			$	112,089			$	803,990			$	336,273

	Postretirement Benefits
	Three Months Ended								Nine Months Ended
	September 28, 2019				September 29, 2018				September 28, 2019				September 29, 2018
Service cost		$	8,533			$	9,256			$	24,965			$	27,768
Interest cost			1,874				19,290				42,566				57,871
Expected return on plan assets			7,938				(13,913	)			(21,025	)			(41,738	)
Gain on Significant Event			(227,071	)			--				(227,071	)			--
Amortization of prior service cost			(1,268	)			(1,268	)			(3,804	)			(3,804	)
Amortization of the net loss			5,560				(16,397	)			(35,454	)			(49,193	)
Net periodic benefit cost		$	(204,434	)		$	(3,032	)		$	(219,823	)		$	(9,096	)

During 2019 the Company caused a significant event on its postretirement benefits which was derived from using proceeds of its insurance continuance fund to buy out life insurance contracts on its current retiree group as of June 30, 2019.

The Company's funding policy for its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations. In the fiscal year 2019, the Company expects to contribute $600,000 into its pension plans and $105,000 into its postretirement plans. As of September 28, 2019, the Company has made contributions of $286,000 to its pension plans, and has contributed $45,000 to its postretirement plan and will make the remaining contributions as required during the remainder of the fiscal year.

The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) covering substantially all U.S. non-union employees. The 401(k) Plan allows participants to make voluntary contributions from their annual compensation on a pre-tax basis, subject to limitations under the Internal Revenue Code. The 401(k) Plan provides for contributions by the Company at its discretion.

The Company made contributions to the plan as follows:

	Three Months Ended				Nine Months Ended
	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Regular matching contribution	$	125,266	$	129,968	$	418,329	$	436,088
Transitional credit contribution		62,464		68,128		240,840		273,742
Non-discretionary contribution		17,390		17,715		622,519		558,547
Total contributions for the period	$	205,120	$	215,811	$	1,281,688	$	1,268,377

The non-discretionary contribution of $565,748 made in the nine months ended September 28, 2019, was accrued for and expensed in the prior fiscal year.