RETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Jan. 02, 2021

RETIREMENT BENEFIT PLANS

Schedule of Pension benefit plans and other postretirement benefit plan

	Pension Benefit						Other Postretirement Benefit
	2020			2019			2020			2019
Benefit obligation at beginning of year	$	102,991,053		$	91,533,200		$	1,566,019		$	2,096,761
Change in discount rate		10,606,709			12,313,831			218,000			239,138
Service cost		1,065,739			1,055,410			43,418			33,287
Interest cost		2,856,569			3,516,318			46,668			56,755
Actuarial (gain)/loss		(1,786,595	)		(1,508,935	)		32,282			77,813
Significant Event		-			-			-			(902,719	)
Benefits paid		(4,183,750	)		(3,918,781	)		(14,654	)		(35,016	)
Benefit obligation at end of year	$	111,549,725		$	102,991,043		$	1,827,169		$	1,566,019

Schedule of Fair value of plan assets

	2020			2019			2020			2019
Fair value of plan assets at beginning of year	$	74,359,558		$	66,170,875		$	558,873		$	1,448,126
Actual return on plan assets		5,568,671			11,803,359			83,157			13,466
Employer contributions		2,616,623			304,105			33,343			35,016
Significant Event		-			-			-			(902,719	)
Benefits paid		(4,183,750	)		(3,918,781	)		(33,343	)		(35,016	)
Fair value of plan assets at end of year	$	78,361,102		$	74,359,558		$	642,030		$	558,873

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income

	Pension Benefit						Other Postretirement Benefit
Funded Status	2020			2019			2020			2019
Net amount recognized in the balance sheet	$	(33,188,623	)	$	(28,631,485	)	$	(1,185,139	)	$	(1,007,146	)

Amounts recognized in accumulated other comprehensive income consist of:
	Pension Benefit						Other Postretirement Benefit
	2020			2019			2020		2019
Net (loss)/gain	$	(43,727,607	)	$	(36,315,245	)	$	349,276	$	499,701
Prior service (cost) credit		(165,632	)		(265,012	)		0		8,253
	$	(43,893,239	)	$	(36,580,257	)	$	349,276	$	507,954

Schedule of Defined Contribution Plan

	2020		2019
Regular matching contributions	$	692,846	$	540,693
Transitional credit contributions		264,473		305,226
Non-discretionary contributions		607,342		638,745
Total contributions made for the period	$	1,564,661	$	1,484,664

Schedule of Fair Values of Plans Assets Utilizing Fair Value Hierarchy

	January 2, 2021
	Level 1		Level 2		Level 3		Total
Cash and Equivalents:
Common/collective trust funds	$	—	$	347,538	$	—	$	347,538
Equities:
The Eastern Company Common Stock		5,230,134				—		5,230,134
Common/collective trust funds
Russell Multi Asset Core Plus Fund (a)		—		35,139,260		—		35,139,260
Fixed Income:
Common/collective trust funds
Target Duration LDI Fixed Income Funds (b)
• Russell 25 Year LDI Fixed Income Fund		—		2,506,615		—		2,506,615
• Russell 14 Year LDI Fixed Income Fund		—		26,452,904		—		26,452,904
STRIPS Fixed Income Funds (c)
• Russell 15 to 20 Year STRIPS Fixed Income Fund		—		3,500,718		—		3,500,718
• Russell 10 to 15 Year STRIPS Fixed Income Fund		—		5,183,933		—		5,183,933
Total	$	5,230,134	$	73,130,968	$	—	$	78,361,102

	December 28, 2019
	Level 1		Level 2		Level 3		Total
Cash and Equivalents:
Common/collective trust funds	$	—	$	334,138	$	—	$	334,138
Equities:
The Eastern Company Common Stock		6,625,560				—		6,625,560
Common/collective trust funds
Russell Multi Asset Core Plus Fund (a)		—		33,413,819		—		33,413,819
Fixed Income:
Common/collective trust funds
Target Duration LDI Fixed Income Funds (b)
· Russell 8 Year LDI Fixed Income Fund		—		12,796,482		—		12,796,482
· Russell 14 Year LDI Fixed Income Fund		—		11,387,626		—		11,387,626
STRIPS Fixed Income Funds (c)
· Russell 15 Year STRIPS Fixed Income Fund		—		3,050,389		—		3,050,389
· Russell 10 Year STRIPS Fixed Income Fund		—		4,616,924		—		4,616,924
· Russell 28 to 29 Year STRIPS Fixed Income Fund		—		2,134,620		—		2,134,620
Total	$	6,625,560	$	67,733,998	$	—	$	74,359,558

Schedule of Projected Benefit Obligation and Accumulated Benefit Obligation in Excess of Plan Assets

	2020			2019
Number of plans		5			5
Projected benefit obligation	$	111,549,725		$	102,991,043
Accumulated benefit obligation		111,549,725			102,991,043
Fair value of plan assets		78,361,102			74,359,558
Net amount recognized in accrued benefit liability	$	(33,188,623	)	$	(28,631,485	)

Schedule of Assumptions Used to Determine Projected Benefit Obligations for Benefit Plans

		2020			2019
Discount rate
-	Pension plans	2.40% - 2.48		%	3.18% - 3.23		%
-	Supplemental pension plans		1.49	%		2.61	%
-	Other postretirement plan		2.66	%		3.35	%

Schedule of Change in the Components of Accumulated Other Comprehensive income

	Pension Benefit						Other Postretirement Benefit
	2020			2019			2020			2019
Balance at beginning of period	$	(36,580,267	)	$	(34,078,976	)	$	507,954		$	1,345,959
Change due to availability of final actual assets and census data		-			-			-			-
Charged to net periodic benefit cost
Prior service cost		99,380			99,380			(8,253	)		(5,072	)
Net loss (gain)		1,300,134			1,162,196			(25,509	)		(47,272	)
Liability (gains)/losses
Discount rate		(10,606,709	)		(12,313,831	)		(218,000	)		(239,138	)
Asset (gains)/losses deferred		6,202,764			7,724,649			60,802			(14,567	)
Significant Event		-			-			-			(454,143	)
Other		(4,308,541	)		826,325			32,282			(77,813	)
Balance at end of period	$	(43,893,239	)	$	(36,580,257	)	$	349,276		$	507,954

Schedule of Funded Status of Pension Benefit Plans and Postretirement Benefit Plan

	2020			2019
Service cost	$	43,418		$	33,287
Interest cost		46,668			56,755
Expected return on plan assets		(22,355	)		(28,033	)
Amortization of prior service cost		(8,253	)		(5,072	)
Amortization of the net loss		(25,509	)		(47,272	)
Net periodic benefit cost	$	33,969		$	9,665

Schedule of Components of Net Periodic Benefit Cost

	2020			2019
Service cost	$	1,065,739		$	1,055,410
Interest cost		2,856,569			3,516,318
Expected return on plan assets		(5,461,044	)		(4,761,320	)
Amortization of prior service cost		99,380			99,380
Amortization of the net loss		1,300,134			1,162,196
Net periodic benefit cost	$	(139,222	)	$	1,071,984

Schedule of Assumptions Used to Determine Net Periodic Benefit Cost for Benefit Plans

	2020			2019
Discount rate
- Pension plans	3.18% - 3.23		%	4.20% - 4.22		%
- Supplemental pension plans		2.61	%		3.81	%
Expected return on plan assets		7.5	%		7.5	%
Rate of compensation increase		0	%		0	%

	2020			2019
Discount rate		3.35	%		4.26	%
Expected return on plan assets		4.0	%		4.0	%