Pension Benefits

12 Months Ended

Dec. 27, 2020

Retirement Benefits [Abstract]

Pension Benefits

Pension Benefits

Single-Employer Plans

We maintain The New York Times Companies Pension Plan (the ”Pension Plan”), a frozen single-employer defined benefit pension plan. The Company also jointly sponsors a defined benefit plan with The NewsGuild of New York known as the Guild-Times Adjustable Pension Plan (the “APP”) that continues to accrue active benefits. Effective January 1, 2018, the Company became the sole sponsor of the frozen Newspaper Guild of New York - The New York Times Pension Plan (the “Guild-Times Plan”). The Guild-Times Plan was previously joint trusteed between The NewsGuild of New York and the Company. Effective December 31, 2018, the Guild-Times Plan and the Retirement Annuity Plan For Craft Employees of The New York Times Companies (the “RAP”) were merged into the Pension Plan.

We also have a foreign-based pension plan for certain employees (the “foreign plan”). The information for the foreign plan is combined with the information for U.S. non-qualified plans. The benefit obligation of the foreign plan is immaterial to our total benefit obligation.

Net Periodic Pension (Income)/Cost

The components of net periodic pension (income)/cost were as follows:

	December 27, 2020						December 29, 2019						December 30, 2018
(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans
Service cost	$	10,429	$	119	$	10,548	$	5,113	$	118	$	5,231	$	9,986	$	79	$	10,065
Interest cost	43,710		6,601		50,311		58,835		8,420		67,255		52,770		7,383		60,153
Expected return on plan assets	(67,146)		—		(67,146)		(80,877)		—		(80,877)		(82,327)		—		(82,327)
Amortization and other costs	21,887		6,072		27,959		18,639		4,381		23,020		26,802		5,114		31,916
Amortization of prior service (credit)/cost	(1,945)		51		(1,894)		(1,945)		13		(1,932)		(1,945)		—		(1,945)
Effect of settlement/curtailment	80,641		(562)		80,079		—		(373)		(373)		—		221		221
Net periodic pension (income)/cost	$	87,576	$	12,281	$	99,857	$	(235)	$	12,559	$	12,324	$	5,286	$	12,797	$	18,083

Over the past several years, the Company has taken steps to reduce the size and volatility of our pension obligations. In October 2020, the Company entered into an agreement with an insurance company to transfer the future benefit obligations and annuity administration for certain retirees (or their beneficiaries) in the Pension Plan.

This transfer of plan assets and obligations reduced the Company’s qualified pension plan obligations by $236.3 million. As a result of this agreement, the Company recorded a pension settlement charge of $80.6 million.

Other changes in plan assets and benefit obligations recognized in other comprehensive income/loss were as follows:

(In thousands)	December 27, 2020		December 29, 2019		December 30, 2018
Net actuarial (gain)/loss	$	(4,172)	$	(10,292)	$	29,965
Prior service cost	—		706		—
Amortization of loss	(27,959)		(23,020)		(31,916)
Amortization of prior service credit	1,894		1,932		1,945
Effect of settlement	(80,641)		—		(421)
Total recognized in other comprehensive income	(110,878)		(30,674)		(427)
Net periodic pension cost	99,857		12,324		18,083
Total recognized in net periodic benefit (income)/cost and other comprehensive (income)/loss	$	(11,021)	$	(18,350)	$	17,656

Actuarial gains and losses are amortized using a corridor approach. The gain or loss corridor is equal to 10% of the greater of the projected benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the future working lifetime for the ongoing plans and average life expectancy for the frozen plans.

We also contribute to defined contribution benefit plans. The amount of cost recognized for defined contribution benefit plans was approximately $27 million for 2020 and 2019, respectively, and $22 million for 2018.

Benefit Obligation and Plan Assets

The changes in the benefit obligation and plan assets and other amounts recognized in other comprehensive loss were as follows: 

	December 27, 2020						December 29, 2019
(In thousands)	Qualified Plans		Non- Qualified Plans		All Plans		Qualified Plans		Non- Qualified Plans		All Plans
Change in benefit obligation
Benefit obligation at beginning of year	$	1,660,287	$	247,748	$	1,908,035	$	1,491,398	$	223,066	$	1,714,464
Service cost	10,429		119		10,548		5,113		118		5,231
Interest cost	43,710		6,601		50,311		58,835		8,420		67,255
Amendments	—		—		—		—		706		706
Actuarial loss	153,136		21,152		174,288		191,104		32,874		223,978
Curtailments	—		(562)		(562)		—		(373)		(373)
Settlements	(236,282)		—		(236,282)		—		—		—
Benefits paid	(82,268)		(15,609)		(97,877)		(86,163)		(17,046)		(103,209)
Effects of change in currency conversion	—		144		144		—		(17)		(17)
Benefit obligation at end of year	1,549,012		259,593		1,808,605		1,660,287		247,748		1,908,035
Change in plan assets
Fair value of plan assets at beginning of year	1,648,667		—		1,648,667		1,410,151		—		1,410,151
Actual return on plan assets	245,606		—		245,606		315,148		—		315,148
Employer contributions	9,498		15,609		25,107		9,531		17,046		26,577
Settlements	(236,282)		—		(236,282)		—		—		—
Benefits paid	(82,268)		(15,609)		(97,877)		(86,163)		(17,046)		(103,209)
Fair value of plan assets at end of year	1,585,221		—		1,585,221		1,648,667		—		1,648,667
Net amount recognized	$	36,209	$	(259,593)	$	(223,384)	$	(11,620)	$	(247,748)	$	(259,368)
Amount recognized in the Consolidated Balance Sheets
Noncurrent Assets	$	54,950	$	—	$	54,950	$	—	$	—	$	—
Current liabilities	—		(16,990)		(16,990)		—		(17,147)		(17,147)
Noncurrent liabilities	(18,741)		(242,603)		(261,344)		(11,620)		(230,601)		(242,221)
Net amount recognized	$	36,209	$	(259,593)	$	(223,384)	$	(11,620)	$	(247,748)	$	(259,368)
Amount recognized in accumulated other comprehensive loss
Actuarial loss	$	464,922	$	137,697	$	602,619	$	592,774	$	122,617	$	715,391
Prior service credit	(14,897)		642		(14,255)		(16,842)		693		(16,149)
Total	$	450,025	$	138,339	$	588,364	$	575,932	$	123,310	$	699,242

Benefit obligations decreased from $1.9 billion at December 29, 2019, to $1.8 billion at December 27, 2020, primarily due to the previously discussed settlement transaction of $236.3 million, partially offset by actuarial losses of $174.3 million. The main driver of the actuarial loss was a decrease in the discount rate, partially offset by updating the latest mortality improvement scale.

Benefit obligations increased from $1.7 billion at December 30, 2018, to $1.9 billion at December 29, 2019, primarily due to the actuarial loss of $224.0 million, driven by a decrease in the discount rate.

The accumulated benefit obligation for all pension plans was $1.8 billion and $1.9 billion as of December 27, 2020, and December 29, 2019, respectively.

Information for pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets was as follows:

(In thousands)	December 27, 2020		December 29, 2019
Projected benefit obligation	$	364,272	$	1,908,035
Accumulated benefit obligation	$	349,429	$	1,904,979
Fair value of plan assets	$	85,938	$	1,648,667

Assumptions

Weighted-average assumptions used in the actuarial computations to determine benefit obligations for qualified pension plans were as follows:

	December 27, 2020		December 29, 2019
Discount rate	2.64	%	3.30	%
Rate of increase in compensation levels	3.00	%	3.00	%

The rate of increase in compensation levels is applicable only for the APP that has not been frozen.

Weighted-average assumptions used in the actuarial computations to determine net periodic pension cost for qualified plans were as follows:

	December 27, 2020		December 29, 2019		December 30, 2018
Discount rate for determining projected benefit obligation	3.30	%	4.43	%	3.75	%
Discount rate in effect for determining service cost	3.67	%	3.87	%	3.88	%
Discount rate in effect for determining interest cost	2.70	%	4.06	%	3.31	%
Rate of increase in compensation levels	3.00	%	3.00	%	2.95	%
Expected long-term rate of return on assets	4.59	%	5.68	%	5.69	%

Weighted-average assumptions used in the actuarial computations to determine benefit obligations for non-qualified plans were as follows:

	December 27, 2020		December 29, 2019
Discount rate	2.39	%	3.17	%
Rate of increase in compensation levels	2.50	%	2.50	%

The rate of increase in compensation levels is applicable only for the foreign plan that has not been frozen.

Weighted-average assumptions used in the actuarial computations to determine net periodic pension cost for non-qualified plans were as follows:

	December 27, 2020		December 29, 2019		December 30, 2018
Discount rate for determining projected benefit obligation	3.17	%	4.35	%	3.67	%
Discount rate in effect for determining interest cost	2.78	%	3.94	%	3.14	%
Rate of increase in compensation levels	2.50	%	2.50	%	2.50	%

We determined our discount rate using a Ryan ALM, Inc. Curve (the “Ryan Curve”). The Ryan Curve provides the bonds included in the curve and allows adjustments for certain outliers (i.e., bonds on “watch”). We believe the Ryan Curve allows us to calculate an appropriate discount rate.

To determine our discount rate, we project a cash flow based on annual accrued benefits. The projected plan cash flow is discounted to the measurement date, which is the last day of our fiscal year, using the annual spot rates provided in the Ryan Curve.

In determining the expected long-term rate of return on assets, we evaluated input from our investment consultants, actuaries and investment management firms, including our review of asset class return expectations, as well as long-term historical asset class returns. Projected returns by such consultants and economists are based on broad equity and bond indices. Our objective is to select an average rate of earnings expected on existing plan assets and expected contributions to the plan during the year, less expense expected to be incurred by the plan during the year.

The market-related value of plan assets is multiplied by the expected long-term rate of return on assets to compute the expected return on plan assets, a component of net periodic pension cost. The market-related value of plan assets is a calculated value that recognizes changes in fair value over three years.

Plan Assets

The Pension Plan

The assets underlying the Pension Plan are managed by professional investment managers. These investment managers are selected and monitored by the pension investment committee, composed of certain senior executives, who are appointed by the Finance Committee of the Board of Directors of the Company. The Finance Committee is responsible for adopting our investment policy, which includes rules regarding the selection and retention of qualified advisors and investment managers. The pension investment committee is responsible for implementing and monitoring compliance with our investment policy, selecting and monitoring investment managers and communicating the investment guidelines and performance objectives to the investment managers.

Our contributions are made on a basis determined by the actuaries in accordance with the funding requirements and limitations of the Employee Retirement Income Security Act (“ERISA”) and the Internal Revenue Code.

Investment Policy and Strategy

The primary long-term investment objective is to allocate assets in a manner that produces a total rate of return that meets or exceeds the growth of our pension liabilities. An additional investment objective is to transition the asset mix to hedge liabilities and minimize volatility in the funded status of the Pension Plan.

Asset Allocation Guidelines

In accordance with our asset allocation strategy, investments are categorized into long duration fixed income investments whose value is highly correlated to that of the Pension Plan’s obligations (“Long Duration Assets”) or other investments, such as equities and high-yield fixed income securities, whose return over time is expected to exceed the rate of growth in the Pension Plan’s obligations (“Return-Seeking Assets”).

The proportional allocation of assets between Long Duration Assets and Return-Seeking Assets is dependent on the funded status of the Pension Plan. Under our policy, for example, a funded status at 102.5% requires an allocation of total assets of 77.5% to 82.5% to Long Duration Assets and 17.5% to 22.5% to Return-Seeking Assets. As the Pension

Plan’s funded status increases, the allocation to Long Duration Assets will increase and the allocation to Return-Seeking Assets will decrease.

The following asset allocation guidelines apply to the Return-Seeking Assets:

Asset Category	Percentage Range			Actual
Public Equity	70%	-	100%	87	%
High-Yield Fixed Income	0%	-	15%	0	%
Alternatives	0%	-	15%	11	%
Cash	0%	-	10%	2	%

The asset allocations by asset category for both Long Duration and Return-Seeking Assets, as of December 27, 2020, were as follows:

Asset Category	Percentage Range			Actual
Long Duration Fixed Income	77.5%	-	82.5%	78	%
Public Equity	12.3%	-	22.5%	19	%
High-Yield Fixed Income	0%	-	3%	0	%
Alternatives	0%	-	3%	2	%
Cash	0%	-	2%	1	%

The specified target allocation of assets and ranges set forth above are maintained and reviewed on a periodic basis by the pension investment committee. The pension investment committee may direct the transfer of assets between investment managers in order to rebalance the portfolio in accordance with approved asset allocation ranges to accomplish the investment objectives for the Pension Plan’s assets.

The APP

The assets underlying the joint Company and The NewsGuild of New York sponsored plan are managed by professional investment managers. These investment managers are selected and monitored by the APP’s Board of Trustees (the “APP Trustees”). The APP Trustees are responsible for adopting an investment policy, implementing and monitoring compliance with that policy, selecting and monitoring investment managers, and communicating the investment guidelines and performance objectives to the investment managers.

Investment Policy and Strategy

The investment objective is to allocate investment assets in a manner that satisfies the funding objectives of the APP and to maximize the probability of maintaining a 100% funded status.

Asset Allocation Guidelines

In accordance with the asset allocation guidelines, investments are segmented into hedging assets whose value is highly correlated to that of the APP’s obligations (“Hedging Assets”) or other investments, such as equities and high-yield fixed income securities, whose return over time is expected to exceed the rate of growth in the APP’s obligations (“Return-Seeking Assets”).

    The asset allocations by asset category as of December 27, 2020, were as follows:

Asset Category	Percentage Range			Actual
Hedging Assets	75%	-	90%	78	%
Return-Seeking Assets	10%	-	25%	22	%
Cash and Equivalents	0%	-	5%	0	%

The specified target allocation of assets and ranges set forth above are maintained and reviewed on a periodic basis by the APP Trustees. The APP Trustees may direct the transfer of assets between investment managers in order to rebalance the portfolio in accordance with approved asset allocation ranges to accomplish the investment objectives for the APP’s assets.

Fair Value of Plan Assets

The fair value of the assets underlying the Pension Plan and the joint-sponsored APP by asset category are as follows:

	December 31, 2020
(In thousands)	Quoted Prices Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs		Investment Measured at Net Asset Value(2)
Asset Category	(Level 1)		(Level 2)		(Level 3)				Total
Equity Securities:
U.S. Equities	$	28,002	$	—	$	—	$	—	$	28,002
International Equities	34,025		—		—		—		34,025
Mutual Funds	29,011		—		—		—		29,011
Registered Investment Companies	66,923		—		—		—		66,923
Common/Collective Funds(1)	—		—		—		643,443		643,443
Fixed Income Securities:
Corporate Bonds	—		646,330		—		—		646,330
U.S. Treasury and Other Government Securities	—		42,111		—		—		42,111
Municipal and Provincial Bonds	—		40,150		—		—		40,150
Other	—		10,693		—		—		10,693
Cash and Cash Equivalents	—		—		—		5,481		5,481
Private Equity	—		—		—		9,770		9,770
Hedge Fund	—		—		—		29,282		29,282
Assets at Fair Value	$	157,961	$	739,284	$	—	$	687,976	$	1,585,221

(1)The underlying assets of the common/collective funds are primarily comprised of equity and fixed income securities. The fair value in the above table represents our ownership share of the NAV of the underlying funds.

(2)Certain investments that are measured at fair value using the NAV per share (or its equivalent) have not been classified in the fair value hierarchy.

	Fair Value Measurement at December 31, 2019
(In thousands)	Quoted Prices Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs		Investment Measured at Net Asset Value(2)
Asset Category	(Level 1)		(Level 2)		(Level 3)				Total
Equity Securities:
U.S. Equities	$	55,011	$	—	$	—	$	—	$	55,011
International Equities	38,231		—		—		—		38,231
Mutual Funds	46,276		—		—		—		46,276
Registered Investment Companies	52,582		—		—		—		52,582
Common/Collective Funds(1)	—		—		—		575,738		575,738
Fixed Income Securities:
Corporate Bonds	—		574,756		—		—		574,756
U.S. Treasury and Other Government Securities	—		196,009		—		—		196,009
Municipal and Provincial Bonds	—		42,812		—		—		42,812
Other	—		11,745		—		—		11,745
Cash and Cash Equivalents	—		—		—		19,097		19,097
Private Equity	—		—		—		11,345		11,345
Hedge Fund	—		—		—		25,065		25,065
Assets at Fair Value	$	192,100	$	825,322	$	—	$	631,245	$	1,648,667

(1)The underlying assets of the common/collective funds are primarily comprised of equity and fixed income securities. The fair value in the above table represents our ownership share of the NAV of the underlying funds.

(2)Certain investments that are measured at fair value using the NAV per share (or its equivalent) have not been classified in the fair value hierarchy.

Level 1 and Level 2 Investments

Where quoted prices are available in an active market for identical assets, such as equity securities traded on an exchange, transactions for the asset occur with such frequency that the pricing information is available on an ongoing/daily basis. We classify these types of investments as Level 1 where the fair value represents the closing/last trade price for these particular securities.

For our investments where pricing data may not be readily available, fair values are estimated by using quoted prices for similar assets, in both active and not active markets, and observable inputs, other than quoted prices, such as interest rates and credit risk. We classify these types of investments as Level 2 because we are able to reasonably estimate the fair value through inputs that are observable, either directly or indirectly. There are no restrictions on our ability to sell any of our Level 1 and Level 2 investments.

Cash Flows

In 2020, we made contributions to the APP of $9.5 million. We expect contributions made to satisfy minimum funding requirements to total approximately $10 million in 2021.

The following benefit payments, which reflect future service for plans that have not been frozen, are expected to be paid:

	Plans
(In thousands)	Qualified		Non- Qualified		Total
2021	$	69,821	$	17,173	$	86,994
2022	71,905		16,908		88,813
2023	73,927		16,701		90,628
2024	75,470		16,455		91,925
2025	76,982		16,175		93,157
2026-2030(1)	399,881		77,545		477,426

(1)While benefit payments under these plans are expected to continue beyond 2030, we have presented in this table only those benefit payments estimated over the next 10 years.

Multiemployer Plans

We contribute to a number of multiemployer defined benefit pension plans under the terms of various collective bargaining agreements that cover our union-represented employees. In recent years, certain events, such as amendments to various collective bargaining agreements and the sale of the New England Media Group, resulted in withdrawals from multiemployer pension plans. These actions, along with a reduction in covered employees, have resulted in us estimating withdrawal liabilities to the respective plans for our proportionate share of any unfunded vested benefits. During the third quarter of 2019 and 2018, we recorded a gain of $2.0 million and $4.9 million, respectively, from multiemployer pension liability adjustment which was recorded in Gain from pension liability adjustment in our Consolidated Statements of Operations.

Our multiemployer pension plan withdrawal liability was approximately $76 million as of December 27, 2020, and approximately $82 million as of December 29, 2019. This liability represents the present value of the obligations related to complete and partial withdrawals that have already occurred as well as an estimate of future partial withdrawals that we considered probable and reasonably estimable. For those plans that have yet to provide us with a demand letter, the actual liability will not be fully known until they complete a final assessment of the withdrawal liability and issue a demand to us. Therefore, the estimate of our multiemployer pension plan liability will be adjusted as more information becomes available that allows us to refine our estimates.

The risks of participating in multiemployer plans are different from single-employer plans in the following aspects:

•Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.

•If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

•If we elect to withdraw from these plans or if we trigger a partial withdrawal due to declines in contribution base units or a partial cessation of our obligation to contribute, we may be assessed a withdrawal liability based on a calculated share of the underfunded status of the plan.

•If a multiemployer plan from which we have withdrawn subsequently experiences a mass withdrawal, we may be required to make additional contributions under applicable law.

Our participation in significant plans for the fiscal period ended December 27, 2020, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The zone status is based on the latest information that we received from the plan and is certified by the plan’s actuary. A plan is generally classified in critical status if a funding deficiency is projected within four years or five years, depending on other criteria. A plan in critical status is classified in critical and declining status if it is projected to become insolvent in the next 15 or 20 years, depending on other criteria.

A plan is classified in endangered status if its funded percentage is less than 80% or a funding deficiency is projected within seven years. If the plan satisfies both of these triggers, it is classified in seriously endangered status. A plan not classified in any other status is classified in the green zone. The “FIP/RP Status Pending/Implemented” column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. The “Surcharge Imposed” column includes plans in a red zone status that are required to pay a surcharge in excess of regular contributions. The last column lists the expiration date(s) of the collective bargaining agreement(s) to which the plans are subject.

	EIN/Pension Plan Number	Pension Protection Act Zone Status		FIP/RP Status Pending/Implemented	(In thousands) Contributions of the Company						Surcharge Imposed	Collective Bargaining Agreement Expiration Date
Pension Fund		2020	2019		2020		2019		2018
CWA/ITU Negotiated Pension Plan	13-6212879-001	Critical and Declining as of 1/01/20	Critical and Declining as of 1/01/19	Implemented	$	384	$	415	$	408	No	(1)
Newspaper and Mail Deliverers’-Publishers’ Pension Fund(2)	13-6122251-001	Green as of 6/01/20	Green as of 6/01/19	N/A	1,010		1,014		992		No	3/30/2025
GCIU-Employer Retirement Benefit Plan	91-6024903-001	Critical and Declining as of 1/01/20	Critical and Declining as of 1/01/19	Implemented	65		58		42		Yes	3/30/2021(3)
Pressmen’s Publishers’ Pension Fund(4)	13-6121627-001	Endangered as of 4/01/20	Green as of 4/01/19	Pending	1,328		1,213		1,129		No	3/30/2021
Paper Handlers’-Publishers’ Pension Fund(5)	13-6104795-001	Critical and Declining as of 4/01/20	Critical and Declining as of 4/01/19	Implemented	101		100		99		Yes	3/30/2021
Contributions for individually significant plans					$	2,888	$	2,800	$	2,670
Contributions for a plan not individually significant					$	24	$	—	$	—
Total Contributions					$	2,912	$	2,800	$	2,670

(1)There are two collective bargaining agreements requiring contributions to this plan: Mailers, which expires March 30, 2023, and Typographers, which expires March 30, 2025.

(2)Elections under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010: Extended Amortization of Net Investment Losses (IRS Section 431(b)(8)(A)) and the Expanded Smoothing Period (IRS Section 431(b)(8)(B)).

(3)We previously had two collective bargaining agreements requiring contributions to this plan. As of December 30, 2018, only one collective bargaining agreement remained for the Stereotypers. The method for calculating actuarial value of assets was changed retroactive to January 1, 2009, as elected by the Board of Trustees and as permitted by IRS Notice 2010-83. This election includes smoothing 2008 investment losses over ten years.

(4)The Plan sponsor elected two provisions of funding relief under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (PRA 2010) to more slowly absorb the 2008 plan year investment loss, retroactively effective as of April 1, 2009. These included extended amortization under the prospective method and 10-year smoothing of the asset loss for the plan year beginning April 1, 2008.

(5)Board of Trustees elected funding relief. This election includes smoothing the March 31, 2009 investment losses over 10 years.

The rehabilitation plan for the GCIU-Employer Retirement Benefit Plan includes minimum annual contributions no less than the total annual contribution made by us from September 1, 2008 through August 31, 2009.

The Company was listed in the plans’ respective Forms 5500 as providing more than 5% of the total contributions for the following plans and plan years:

Pension Fund	Year Contributions to Plan Exceeded More Than 5 Percent of Total Contributions (as of Plan’s Year-End)
CWA/ITU Negotiated Pension Plan	12/31/2019
Newspaper and Mail Deliverers’-Publishers’ Pension Fund	5/31/2019 & 5/31/2018(1)
Pressmen’s Publisher’s Pension Fund	3/31/2020 & 3/31/2019
Paper Handlers’-Publishers’ Pension Fund	3/31/2020 & 3/31/2019

(1) Form 5500 for the plan year ended 5/31/20 was not available as of the date we filed our financial statements.

Other Postretirement Benefits

We provide health benefits to certain primarily grandfathered retired employee groups (and their eligible dependents) who meet the definition of an eligible participant and certain age and service requirements, as outlined in the plan document. There is a de minimis liability for retiree health benefits for active employees. While we offer pre-age 65 retiree medical coverage to employees who meet certain retiree medical eligibility requirements, we do not provide post-age 65 retiree medical benefits for employees who retired on or after March 1, 2009. We accrue the costs of postretirement benefits during the employees’ active years of service and our policy is to pay our portion of insurance premiums and claims from general corporate assets.

Net Periodic Other Postretirement Benefit Cost/(Income)

The components of net periodic postretirement benefit cost/(income) were as follows:

(In thousands)	December 27, 2020		December 29, 2019		December 30, 2018
Service cost	$	29	$	27	$	21
Interest cost	1,026		1,602		1,476
Amortization and other costs	3,051		3,375		4,735
Amortization of prior service credit	(4,225)		(4,766)		(6,157)
Net periodic postretirement benefit cost/(income)	$	(119)	$	238	$	75

The changes in the benefit obligations recognized in other comprehensive loss/(income) were as follows:

(In thousands)	December 27, 2020		December 29, 2019		December 30, 2018
Net actuarial loss/(gain)	$	4,044	$	296	$	(4,905)
Amortization of loss	(3,051)		(3,375)		(4,735)
Amortization of prior service credit	4,225		4,766		6,157
Total recognized in other comprehensive loss/(income)	5,218		1,687		(3,483)
Net periodic postretirement benefit cost/(income)	(119)		238		75
Total recognized in net periodic postretirement benefit cost/(income) and other comprehensive loss/(income)	$	5,099	$	1,925	$	(3,408)

Actuarial gains and losses are amortized using a corridor approach. The gain or loss corridor is equal to 10% of the accumulated postretirement benefit obligation. Gains and losses in excess of the corridor are generally amortized over the average remaining service period to expected retirement of active participants.

In connection with collective bargaining agreements, we contribute to several multiemployer welfare plans. These plans provide medical benefits to active and retired employees covered under the respective collective bargaining agreement. Contributions are made in accordance with the formula in the relevant agreement. Postretirement costs related to these plans are not reflected above and were approximately $16 million in 2020, $15 million in 2019, and $16 million in 2018.

The changes in the benefit obligation and plan assets and other amounts recognized in other comprehensive loss were as follows:

(In thousands)	December 27, 2020		December 29, 2019
Change in benefit obligation
Benefit obligation at beginning of year	$	42,803	$	46,037
Service cost	29		27
Interest cost	1,026		1,602
Plan participants’ contributions	2,820		3,835
Actuarial loss	4,044		296
Benefits paid	(7,414)		(8,994)
Benefit obligation at the end of year	43,308		42,803
Change in plan assets
Employer contributions	4,594		5,159
Plan participants’ contributions	2,820		3,835
Benefits paid	(7,414)		(8,994)
Fair value of plan assets at end of year	—		—
Net amount recognized	$	(43,308)	$	(42,803)
Amount recognized in the Consolidated Balance Sheets
Current liabilities	$	(4,618)	$	(5,115)
Noncurrent liabilities	(38,690)		(37,688)
Net amount recognized	$	(43,308)	$	(42,803)
Amount recognized in accumulated other comprehensive loss
Actuarial loss	$	26,785	$	25,793
Prior service credit	(3,466)		(7,691)
Total	$	23,319	$	18,102

Benefit obligations increased from $42.8 million at December 29, 2019, to $43.3 million at December 27, 2020, primarily due to the actuarial loss of $4.0 million, driven by a decrease in the discount rate.

Information for postretirement plans with accumulated benefit obligations in excess of plan assets was as follows:

(In thousands)	December 27, 2020		December 29, 2019
Accumulated benefit obligation	$	43,308	$	42,803
Fair value of plan assets	$	—	$	—

Weighted-average assumptions used in the actuarial computations to determine the postretirement benefit obligations were as follows:

	December 27, 2020		December 29, 2019
Discount rate	2.01	%	2.94	%
Estimated increase in compensation level	3.50	%	3.50	%

Weighted-average assumptions used in the actuarial computations to determine net periodic postretirement cost were as follows:

	December 27, 2020		December 29, 2019		December 30, 2018
Discount rate for determining projected benefit obligation	2.94	%	4.18	%	3.46	%
Discount rate in effect for determining service cost	3.04	%	4.19	%	3.56	%
Discount rate in effect for determining interest cost	2.55	%	3.71	%	3.01	%
Estimated increase in compensation level	3.50	%	3.50	%	3.50	%

The assumed health-care cost trend rates were as follows:

	December 27, 2020		December 29, 2019
Health-care cost trend rate	5.95	%	6.57	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	4.92	%	5.00	%
Year that the rate reaches the ultimate trend rate	2027		2025

Because our health-care plans are capped for most participants, the assumed health-care cost trend rates do not have a significant effect on the amounts reported for the health-care plans.

The following benefit payments (net of plan participant contributions) under our Company’s postretirement plans, which reflect expected future services, are expected to be paid:

(In thousands)	Amount
2021	$	4,716
2022	4,417
2023	4,173
2024	3,886
2025	3,594
2026-2030(1)	14,130

(1)While benefit payments under these plans are expected to continue beyond 2030, we have presented in this table only those benefit payments estimated over the next 10 years.

We accrue the cost of certain benefits provided to former or inactive employees after employment, but before retirement. The cost is recognized only when it is probable and can be estimated. Benefits include life insurance, disability benefits and health-care continuation coverage. The accrued obligation for these benefits was $8.6 million as of December 27, 2020, and $9.5 million as of December 29, 2019.