Retirement Benefit Plans

6 Months Ended

Jul. 03, 2021

Retirement Benefit Plans

Note L - Retirement Benefit Plans

Note L - Retirement Benefit Plans

The Company has four non-contributory defined benefit pension plans covering most U.S. employees. Three of these pension plans are frozen and participants in these three plans have not accrued benefits since the date on which these plans were frozen. A fourth pension plan does not permit new participants but existing participants in this fourth pension plan continue to accrue benefits. 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 six months of fiscal years 2021 and 2020 are as follows:

	Pension Benefits
	Three Months Ended						Six Months Ended
	July 3, 2021			June 27, 2020			July 3, 2021			June 27, 2020
Service cost	$	271,835		$	266,434		$	543,668		$	532,870
Interest cost		504,254			714,142			1,008,509			1,428,285
Expected return on plan assets		(1,448,675	)		(1,365,262	)		(2,897,349	)		(2,730,523	)
Amortization of prior service cost		24,845			24,845			49,690			49,690
Amortization of the net loss		432,536			325,034			865,075			650,068
Net periodic benefit	$	(215,205	)	$	(34,807	)	$	(430,407	)	$	(69,610	)

	Postretirement Benefits						Postretirement Benefits
	Three Months Ended						Six Months Ended
	July 3, 2021			June 27, 2020			July 3, 2021			June 27, 2020
Service cost	$	13,626		$	10,855		$	27,252		$	21,710
Interest cost		9,842			11,667			19,684			23,334
Expected return on plan assets		(6,420	)		(5,589	)		(12,840	)		(11,178	)
Gain on significant event		-			-			-			-
Amortization of prior service cost		-			(2,063	)		-			(4,126	)
Amortization of the net loss		(3,094	)		(6,377	)		(6,188	)		(12,754	)
Net periodic benefit cost	$	13,954		$	8,493		$	27,908		$	16,986

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 2021, the Company expects to contribute $3,100,000 into its pension plans and $50,000 into its postretirement plan. The Company is currently reviewing the American Rescue Plan Act for applicable pension funding relief for the minimum required contributions and will adjust accordingly. As of July 3, 2021, the Company has made contributions of approximately $1,171,000 into its pension plans, has contributed $8,000 to its postretirement plan and expects to 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				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Regular matching contribution	$	144,081	$	132,016	$	297,397	$	294,808
Transitional credit contribution		33,102		40,529		75,870		95,200
Non-discretionary contribution		14,895		12,390		362,484		371,613
Total contributions for the period	$	192,078	$	184,935	$	735,751	$	761,621

The non-discretionary contribution of $332,092 made in the six months ended July 3, 2021 was accrued for and expensed in the prior fiscal year.