Retirement Benefit Plans

6 Months Ended

Jun. 27, 2020

Retirement Benefit Plans

Note K - Retirement Benefit Plans

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 the plan covering salaried employees, 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 first half of fiscal years 2020 and 2019 are as follows: 

	Pension Benefits
	Three Months Ended						Six Months Ended
	June 27, 2020			June 29, 2019			June 27, 2020			June 29, 2019
Service cost	$	266,434		$	263,854		$	532,870		$	527,706
Interest cost		714,142			879,080			1,428,285			1,758,160
Expected return on plan assets		(1,365,262	)		(1,190,331	)		(2,730,523	)		(2,380,661	)
Amortization of prior service cost		24,845			24,845			49,690			49,690
Amortization of the net loss		325,034			290,550			650,068			581,099
Net periodic benefit cost (benefit)	$	(34,807	)	$	267,998		$	(69,610	)	$	535,994

	Postretirement Benefits
	Three Months Ended						Six Months Ended
	June 27, 2020			June 29, 2019			June 27, 2020			June 29, 2019
Service cost	$	10,855		$	8,216		$	21,710		$	16,432
Interest cost		11,667			20,346			23,334			40,692
Expected return on plan assets		(5,589	)		(14,482	)		(11,178	)		(28,963	)
Amortization of prior service cost		(2,063	)		(1,268	)		(4,126	)		(2,536	)
Amortization of the net loss		(6,377	)		(20,507	)		(12,754	)		(41,014	)
Net periodic benefit cost (benefit)	$	8,493		$	(7,695	)	$	16,986		$	(15,389	)

The Company’s funding policy with respect to its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations.  In fiscal year 2020, the Company expects to contribute $2,690,000 into its pension plans and $50,000 into its postretirement plan. As of June 27, 2020, the Company has made contributions of approximately $400,000 into its pension plans, has contributed $15,000 to its postretirement plan and will make the remaining contributions as required during the remainder of fiscal the 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				Six Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Regular matching contribution	$	168,529	$	136,796	$	373,521	$	293,063
Transitional credit contribution		64,223		74,852		146,349		178,376
Non-discretionary contribution		12,390		18,088		580,048		605,129
Total contributions for the period	$	245,142	$	229,736	$	1,099,918	$	1,076,568

The non-discretionary contribution of $550,286 made in the six months ended June 27, 2020 was accrued for and expensed in the prior fiscal year.