Retirement Benefit Plans

6 Months Ended

Jul. 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 three months and first six months 2022 and 2021 are as follows:

	Pension Benefits
	Three Months Ended						Six Months Ended
	July 2, 2022			July 3, 2021			July 2, 2022			July 3, 2021
Service cost	$	269,743		$	271,835		$	539,487		$	543,668
Interest cost		608,191			504,254			1,216,380			1,008,509
Expected return on plan assets		(1,460,661	)		(1,448,675	)		(2,921,322	)		(2,897,349	)
Amortization of prior service cost		16,563			24,845			33,126			49,690
Amortization of the net loss		390,075			432,536			780,150			865,075
Net periodic benefit	$	(176,089	)	$	(215,205	)	$	(352,179	)	$	(430,407	)

	Other Postretirement Benefits
	Three Months Ended						Six Months Ended
	July 2, 2022			July 3, 2021			July 2, 2022			July 3, 2021
Service cost		13,323			13,626			26,646			27,252
Interest cost		10,988			9,842			21,976			19,684
Expected return on plan assets		(4,400	)		(6,420	)		(8,800	)		(12,840	)
Amortization of prior service cost		1,060			—			2,120			—
Amortization of the net loss		(2,054	)		(3,094	)		(4,108	)		(6,188	)
Net periodic benefit cost	$	18,917		$	13,954		$	37,834		$	27,908

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 2022, the Company expects to contribute $300,000 into its pension plans and $50,000 into its postretirement plan. As of July 2, 2022, the Company has not made any contributions into its pension plans, has contributed $13,000 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 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Regular matching contribution	$	161,714	$	144,081	$	372,654	$	297,397
Transitional credit contribution		28,179		33,102		79,742		75,870
Non-discretionary contribution		16,769		14,895		360,146		362,484
Total contributions for the period	$	206,662	$	192,078	$	812,542	$	735,751

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