Retirement Benefit Plans

3 Months Ended

Apr. 02, 2022

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 quarter of fiscal years 2022 and 2021 are as follows:

	Pension Benefits
	Three Months Ended
	April 2, 2022			April 3, 2021
Service cost	$	269,744		$	271,833
Interest cost		608,189			504,255
Expected return on plan assets		(1,460,661	)		(1,448,674	)
Amortization of prior service cost		16,563			24,845
Amortization of the net loss		390,075			432,539
Net periodic benefit	$	(176,090	)	$	(215,202	)

	Other Postretirement Benefits
	Three Months Ended
	April 2, 2022			April 3, 2021
Service cost		13,323			13,626
Interest cost		10,988			9,842
Expected return on plan assets		(4,400	)		(6,420	)
Gain on significant event		-			-
Amortization of prior service cost		1,060			-
Amortization of the net loss		(2,054	)		(3,094	)
Net periodic benefit cost	$	18,917		$	13,954

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 2022, the Company expects to contribute $300,000 into its pension plans and $50,000 into its postretirement plan. As of April 2, 2022, the Company has not made any contributions into its pension plans, has contributed $3,000 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
	April 2, 2022		April 3, 2021
Regular matching contribution	$	210,939	$	191,808
Transitional credit contribution		51,564		66,929
Non-discretionary contribution		343,377		534,675
Total contributions for the period	$	605,880	$	793,412

The non-discretionary contribution of $323,082 made in the three months ended April 2, 2022, was accrued for and expensed in the prior fiscal year.