12. Retirement Benefit Plan

One of the Company’s German subsidiaries has a non-contributory, defined benefit retirement plan for eligible employees. This plan provides benefits based on the employee’s years of service and compensation during the years immediately preceding retirement, early retirement, termination, disability, or death, as defined in the plan.

During the Fiscal year 2014, the Company initiated workforce reduction actions. These actions resulted in terminations of German employees who are eligible to receive future benefits under the German defined benefit pension plan. See Note 13 in Condensed Notes to Consolidated Financial Statements for additional information regarding the Company’s cost reduction actions that were initiated during the first quarter ended December 27, 2014.

The cost of the plan for the first quarter ended December 27, 2014 and December 28, 2013 included the following components:



	Three Fiscal Months Ended
		December 27,		December 28,
		2014		2013
	(expressed in thousands)
Service cost	$	233	$	200
Interest cost		172		209
Expected return on plan assets		(273)		(257)
Net amortization and deferral		136		116
Special termination benefits		-		191
Net periodic benefit cost	$	268	$	459

The weighted average expected long-term rate of return on plan assets used to determine the net periodic benefit cost for each of the first quarter ended December 27, 2014 and December 28, 2013 was 5.5%