Retirement Benefit Plans

9 Months Ended

Sep. 30, 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 nine months 2023 and 2022 are as follows:

	Pension Benefits
	Three Months Ended						Nine Months Ended
	September 30, 2023			October 1, 2022			September 30, 2023			October 1, 2022
Service cost	$	216,153		$	269,744		$	648,459		$	809,231
Interest cost		990,053			608,188			2,970,160			1,824,568
Expected return on plan assets		(1,049,016	)		(1,460,658	)		(3,147,046	)		(4,381,980	)
Amortization of prior service cost		-			16,563			-			49,689
Amortization of the net loss		342,866			390,075			1,028,596			1,170,225
Net periodic benefit cost (benefit)	$	500,056		$	(176,088	)	$	1,500,169		$	(528,267	)

	Other Postretirement Benefits
	Three Months Ended						Nine Months Ended
	September 30, 2023			October 1, 2022			September 30, 2023			October 1, 2022
Service cost	$	6,486		$	13,323		$	19,458		$	39,969
Interest cost		14,533			10,988			43,599			32,964
Expected return on plan assets		(4,849	)		(4,400	)		(14,547	)		(13,200	)
Amortization of prior service cost		1,060			1,060			3,180			3,180
Amortization of the net loss		(16,895	)		(2,054	)		(50,685	)		(6,162	)
Net periodic benefit cost	$	335		$	18,917		$	1,005		$	56,751

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 $1,300,000 into its pension plans and approximately $50,000 into its postretirement plan. As of September 30, 2023, the Company has contributed $800,000 to its pension plans, has contributed $32,000 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				Nine Months Ended
	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Regular matching contribution	$	241,487	$	149,673	$	747,913	$	522,327
Transitional credit contribution		23,271		28,144		83,935		107,886
Non-discretionary contribution		83,302		16,715		654,552		376,861
Total contributions for the period	$	348,060	$	194,532	$	1,486,400	$	1,007,074

The non-discretionary contribution of $328,953 made in the nine months ended September 30, 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.