Retirement Benefit Plans (Tables)

10 Months Ended

Jan. 01, 2022

RETIREMENT BENEFIT PLANS

Schedule of Significant Disclosures Relating to Benefit Plans

	2021			2020
Service cost	$	1,087,333		$	1,065,739
Interest cost		2,017,015			2,856,569
Expected return on plan assets		(5,794,694	)		(5,461,044	)
Amortization of prior service cost		99,380			99,380
Amortization of the net loss		1,730,150			1,300,134
Net periodic benefit cost	$	(860,816	)	$	(139,222	)

	2021			2020
Discount rate
- Pension plans	2.40% - 2.48		%	3.18% - 3.23		%
- Supplemental pension plans		1.49	%		2.61	%
Expected return on plan assets		7.5	%		7.5	%
Rate of compensation increase		0	%		0	%

	2021			2020
Service cost	$	54,505		$	43,418
Interest cost		39,369			46,668
Expected return on plan assets		(25,681	)		(22,355	)
Amortization of prior service cost		-			(8,253	)
Amortization of the net loss		(12,374	)		(25,509	)
Net periodic benefit cost	$	55,819		$	33,969

	2021			2020
Discount rate		2.66	%		3.35	%
Expected return on plan assets		4.0	%		4.0	%

	Pension Benefit						Other Postretirement Benefit
	2021			2020			2021			2020
Benefit obligation at beginning of year	$	111,549,725		$	102,991,053		$	1,827,169		$	1,566,019
Change in discount rate		(5,316,621	)		10,606,739			(96,343	)		218,000
Service cost		1,087,333			1,065,739			54,505			43,418
Interest cost		2,017,015			2,856,569			39,369			46,668
Plan Amendment		-			-			36,388			-
Actuarial (gain)/loss		2,340,743			(1,786,595	)		110,462			32,282
Significant Event		-			-			(218,103	)		-
Benefits paid		(4,257,857	)		(4,183,750	)		(28,865	)		(14,654	)
Benefit obligation at end of year	$	107,420,338		$	111,549,725		$	1,724,582		$	1,827,169

	2021			2020			2021			2020
Fair value of plan assets at beginning of year	$	78,361,102		$	74,359,558		$	642,030		$	558,873
Actual return on plan assets		4,369,247			5,568,671			16,066			83,157
Employer contributions		2,342,462			2,616,623			45,243			33,343
Significant Event		-			-			(218,103	)		-
Benefits paid		(4,257,855	)		(4,183,750	)		(45,243	)		(33,343	)
Fair value of plan assets at end of year	$	80,814,956		$	78,361,102		$	439,993		$	642,030

	Pension Benefit						Other Postretirement Benefit
Funded Status	2021			2020			2021			2020
Net amount recognized in the balance sheet	$	(26,605,382	)	$	(33,188,623	)	$	(1,284,589	)	$	(1,185,139	)

Amounts recognized in accumulated other comprehensive income consist of:
	Pension Benefit						Other Postretirement Benefit
	2021			2020			2021		2020
Net (loss)/gain	$	(40,447,026	)	$	(43,727,607	)	$	241,621	$	349,276
Prior service (cost) credit		(66,252	)		(165,632	)		-		-
	$	(40,513,278	)	$	(43,893,239	)	$	241,621	$	349,276

	Pension Benefit						Other Postretirement Benefit
	2021			2020			2021			2020
Balance at beginning of period	$	(43,893,239	)	$	(36,580,267	)	$	349,276		$	507,954
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	)
Net loss (gain)		1,730,150			1,300,134			(12,374	)		(25,509	)
Liability (gains)/losses
Discount rate		5,316,621			(10,606,709	)		96,343			(218,000	)
Asset (gains)/losses deferred		(771,444	)		6,202,764			(9,615	)		60,802
Plan Amendments		-			-			(36,388	)		-
Significant Event		-			-			(35,159	)		-
Other		(2,994,746	)		(4,308,541	)		(110,462	)		32,282
Balance at end of period	$	(40,513,278	)	$	(43,893,239	)	$	241,621		$	349,276

	2021			2020
Discount rate
- Pension plans	2.75% - 2.81		%	2.40% - 2.48		%
- Supplemental pension plans		2.08	%		1.49	%
- Other postretirement plan		2.93	%		2.66	%

	2021			2020
Number of plans		5			5
Projected benefit obligation	$	107,420,338		$	111,549,725
Accumulated benefit obligation		107,420,338			111,549,725
Fair value of plan assets		80,814,956			78,361,102
Net amount recognized in accrued benefit liability	$	(26,605,382	)	$	(33,188,623	)

	January 1, 2022
	Level 1		Level 2		Level 3		Total
Cash and Equivalents:
Common/collective trust funds	$	—	$	356,173	$	—	$	356,173
Equities:
The Eastern Company Common Stock		5,460,173				—		5,460,173
Common/collective trust funds
Russell Multi Asset Core Plus Fund (a)		—		36,142,837		—		36,142,837
Fixed Income:
Common/collective trust funds
Target Duration LDI Fixed Income Funds (b)
·     Russell 25 Year LDI Fixed Income Fund		—		4,320,207		—		4,320,207
·     Russell 14 Year LDI Fixed Income Fund		—		26,430,482		—		26,430,482
STRIPS Fixed Income Funds (c)
·     Russell 15 to 20 Year STRIPS Fixed Income Fund		—		3,264,328		—		3,264,328
·     Russell 10 to 15 Year STRIPS Fixed Income Fund		—		4,840,756		—		4,840,756
Total	$	5,460,173	$	75,354,783	$	—	$	80,814,956

	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

	2021		2020
Regular matching contributions	$	553,619	$	535,910
Transitional credit contributions		138,604		163,464
Non-discretionary contributions		392,865		398,908
Total contributions made for the period	$	1,085,088	$	1,098,282