RETIREMENT BENEFITS

9 Months Ended

Feb. 28, 2012

RETIREMENT BENEFITS [Abstract]

RETIREMENT BENEFITS

NOTE J – RETIREMENT BENEFITS

We sponsor three defined benefit pension plans for active employees and offer certain postretirement benefits for retirees.  A summary of each of these is presented below.

Retirement Plan

RTI sponsors the Morrison Restaurants Inc. Retirement Plan (the “Retirement Plan”).  Effective December 31, 1987, the Retirement Plan was amended so that no additional benefits would accrue and no new participants could enter the Retirement Plan after that date.  Participants receive benefits based upon salary and length of service.

Minimum funding for the Retirement Plan is determined in accordance with the guidelines set forth in employee benefit and tax laws.  From time to time we may contribute additional amounts as we deem appropriate.  We estimate that we will be required to make contributions totaling $0.2 million to the Retirement Plan during the remainder of fiscal 2012.

Executive Supplemental Pension Plan and Management Retirement Plan

Under these unfunded defined benefit pension plans, eligible employees earn supplemental retirement income based upon salary and length of service, reduced by social security benefits and amounts otherwise receivable under other specified Company retirement plans.  Effective June 1, 2001, the Management Retirement Plan was amended so that no additional benefits would accrue and no new participants could enter the plan after that date.

As discussed further in Note N to the Condensed Consolidated Financial Statements, we are contingently liable for retirement benefits accrued through March 1996 for certain employees of two companies formerly owned by RTI.

Because our Chief Executive Officer (“CEO”) is currently retirement-eligible and would be entitled to receive his entire pension payment in a lump sum six months following his retirement, we have classified an amount representing that pension payment ($8.1 million) into Accrued liabilities – payroll and related costs in our February 28, 2012 and May 31, 2011 Condensed Consolidated Balance Sheets.

Postretirement Medical and Life Benefits

Our Postretirement Medical and Life Benefits plans provide medical and life insurance benefits to certain retirees.  The medical plan requires retiree cost sharing provisions that are more substantial for employees who retire after January 1, 1990.

The following tables detail the components of net periodic benefit costs and the amounts recognized in our Condensed Consolidated Financial Statements for the Retirement Plan, Management Retirement Plan, and the Executive Supplemental Pension Plan (collectively, the “Pension Plans”) and the Postretirement Medical and Life Benefits plans (in thousands):

	Pension Benefits
	Thirteen weeks ended								Thirty-nine weeks ended
	February 28,				March 1,				February 28,				March 1,
	2012				2011				2012				2011
Service cost		$	134			$	129			$	402			$	387
Interest cost			576				573				1,728				1,719
Expected return on plan assets			(126	)			(98	)			(378	)			(294	)
Amortization of prior service cost			64				82				192				246
Recognized actuarial loss			426				398				1,278				1,194
Net periodic benefit cost		$	1,074			$	1,084			$	3,222			$	3,252

	Postretirement Medical and Life Benefits
	Thirteen weeks ended								Thirty-nine weeks ended
	February 28,				March 1,				February 28,				March 1,
	2012				2011				2012				2011
Service cost		$	2			$	2			$	6			$	6
Interest cost			18				19				54				57
Amortization of prior service cost			(14	)			(15	)			(42	)			(45	)
Recognized actuarial loss			34				28				102				84
Net periodic benefit cost		$	40			$	34			$	120			$	102

We also sponsor two defined contribution retirement savings plans. Information regarding these plans is included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2011.