Retirement Benefit Plans

6 Months Ended

Jul. 01, 2023

Retirement Benefit Plans

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 2023 and 2022 are as follows:

	Pension Benefits
	Three Months Ended						Six Months Ended
	July 1, 2023			July 2, 2022			July 1, 2023			July 2, 2022
Service cost	$	216,153		$	269,743		$	432,306		$	539,487
Interest cost		990,053			608,191			1,980,107			1,216,380
Expected return on plan assets		(1,049,014	)		(1,460,661	)		(2,098,030	)		(2,921,322	)
Amortization of prior service cost		-			16,563			-			33,126
Amortization of the net loss		342,865			390,075			685,730			780,150
Net periodic benefit cost (benefit)	$	500,057		$	(176,089	)	$	1,000,113		$	(352,179	)

	Other Postretirement Benefits
	Three Months Ended						Six Months Ended
	July 1, 2023			July 2, 2022			July 1, 2023			July 2, 2022
Service cost	$	6,486		$	13,323		$	12,972		$	26,646
Interest cost		14,533			10,988			29,066			21,976
Expected return on plan assets		(4,849	)		(4,400	)		(9,698	)		(8,800	)
Amortization of prior service cost		1,060			1,060			2,120			2,120
Amortization of the net loss		(16,895	)		(2,054	)		(33,790	)		(4,108	)
Net periodic benefit cost	$	335		$	18,917		$	670		$	37,834

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 2023, the Company expects to contribute approximately $800,000 into its pension plans and approximately $50,000 into its postretirement plan. As of July 1, 2023, the Company has contributed $164,000 to its pension plans, has contributed $28,000 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 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Regular matching contribution	$	253,665	$	161,714	$	506,426	$	372,654
Transitional credit contribution		26,344		28,179		60,663		79,742
Non-discretionary contribution		89,163		16,769		521,112		360,146
Total contributions for the period	$	369,172	$	206,662	$	1,088,201	$	812,542

The non-discretionary contribution of $328,953 made in the six months ended July 1, 2023, was accrued for, and expensed in the prior fiscal year.

Effective January 1, 2023, the non-discretionary contributions are being contributed on a weekly basis.