Retirement Plans

12 Months Ended

Dec. 31, 2020

Compensation And Retirement Disclosure [Abstract]

Retirement Plans

15.  Retirement Plans

The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s defined benefit pension plan, The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02, (the “Plan”) provides benefits primarily based upon a fixed amount for each year of service. The Plan was frozen in 2007, and no benefits for service have accumulated after this date.

Net periodic pension cost of the Plan for the years ended December 31, 2020, 2019 and 2018 was as follows:

	For the Year Ended December 31,
	2020			2019			2018
Interest cost	$	191		$	242		$	224
Expected return on assets		(206	)		(184	)		(317	)
Amortization of net loss		81			97			84
Net periodic pension cost	$	66		$	155		$	(9	)

The reconciliation of changes in the Plan’s projected benefit obligations and assets are as follows:

	December 31,
	2020			2019
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	6,339		$	5,944
Interest cost		191			242
Actuarial loss		567			510
Benefits paid		(348	)		(357	)
Projected benefit obligation at end of year	$	6,749		$	6,339
Change in plan assets:
Fair value of plan assets at beginning of year	$	5,383		$	4,737
Actual return on plan assets		623			972
Company contributions		150			31
Benefits paid		(348	)		(357	)
Fair value of plan assets at end of year	$	5,808		$	5,383
Funded status	$	(941	)	$	(956	)

The Plan’s funded status shown above is included in Other Liabilities in the Company’s Consolidated Statements of Financial Position at December 31, 2020 and 2019. The Company expects to make a contribution to the plan of $112 in 2021. Because the Plan has been frozen, the accumulated benefit obligation is equal to the projected benefit obligation. The actuarial losses incurred during the years ended December 31, 2020 and 2019 were a result of the decrease in the discount rate for benefit obligations between years.

The assumptions used to determine the Plan’s net periodic benefit cost and benefit obligations are as follows:

	December 31,
	2020			2019			2018
Discount rate for net periodic pension cost		3.10	%		4.20	%		3.50	%
Discount rate for benefit obligations		2.30	%		3.10	%		4.20	%
Expected long-term return of plan assets		6.25	%		7.00	%		7.50	%

The expected long-term rate of return is based on the long-term expected returns for the investment mix consistent with the Plan’s current asset allocation and investment policy. In 2018, the Plan’s asset allocation and investment policy transitioned from a total-return strategy to a liability-driven strategy, which increased the allocation of fixed income investments that are managed to match the duration of the underlying pension liability. The assumed discount rates represent long-term high-quality corporate bond rates commensurate with the liability duration of the Plan.

The fair value of Plan assets at December 31, 2020 and 2019 consist of mutual funds valued at $3,396 and $2,829, respectively, and pooled separate accounts valued at $2,412 and $2,554, respectively. All of the Plan asset values are categorized as Level 1. Mutual fund values are determined based on period end, closing quoted prices in active markets. The pooled separate accounts are measured at net asset value, which is made readily available to investors. Each of the pooled separate accounts invest in multiple fixed securities and provide for daily redemptions by the plan with no advance notice requirements, and have redemption prices that are also determined by the fund’s net asset value per unit with no redemption fees.

The weighted average asset allocations for the Plan at December 31, 2020 and 2019 were as follows:

	December 31,
	2020			2019
U.S. equities securities		58	%		53	%
U.S. debt securities		42	%		47	%
		100	%		100	%

Benefit payments projected for the Plan are as follows:

2021	$	360
2022		360
2023		360
2024		370
2025		370
2026-2030		1,840

The Myers Industries Profit Sharing and 401(k) Plan is maintained for the Company’s U.S. based employees, not covered under defined benefit plans, who have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of $2,689, $2,500 and $2,216 in 2020, 2019 and 2018, respectively.

In addition, the Company has a Supplemental Executive Retirement Plan (“SERP”) to provide certain former senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Expense related to the SERP was approximately $110, $174 and $33 for the years ended December 2020, 2019 and 2018, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 2.3% at December 31, 2020 and 3.1% at December 31, 2019. The SERP liability was approximately $1,892 and $2,200 at December 31, 2020 and 2019, respectively, and is included in Accrued Employee Compensation and Other Liabilities on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.