Note 7 - Employee Benefit Plans

9 Months Ended

Jun. 29, 2013

Pension and Other Postretirement Benefits Disclosure [Text Block]

Pension and Other Postretirement Benefits Disclosure [Text Block]

(7) Employee Benefit Plans

Retirement plans. The Company has one defined benefit pension plan, the Insteel Wire Products Company Retirement Income Plan for Hourly Employees, Wilmington, Delaware (the “Delaware Plan”). The Delaware Plan provides benefits for eligible employees based primarily upon years of service and compensation levels. The Delaware Plan was frozen effective September 30, 2008 whereby participants no longer earn additional service benefits. The Company’s funding policy is to contribute amounts at least equal to those required by law. The Company made contributions totaling $166,000 and $258,000 to the Delaware Plan during the three- and nine-month periods ended June 29, 2013, respectively, and expects to contribute an additional $49,000 during the remainder of the current fiscal year.

Net periodic pension costs and related components for the Delaware Plan for the three- and nine-month periods ended June 29, 2013 and June 30, 2012 are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	June 29, 2013			June 30, 2012			June 29, 2013			June 30, 2012
Interest cost	$	32		$	35		$	96		$	109
Expected return on plan assets		(36	)		(32	)		(108	)		(100	)
Recognized net actuarial loss		14			9			42			37
Net periodic pension cost	$	10		$	12		$	30		$	46

Supplemental employee retirement plan. The Company maintains supplemental employee retirement plans (each, a “SERP”) with certain of its employees (each, a “Participant”). Under the SERPs, if the Participant remains in continuous service with the Company for a period of at least 30 years, the Company will pay to the Participant a supplemental retirement benefit for the 15-year period following the Participant’s retirement equal to 50% of the Participant’s highest average annual base salary for five consecutive years in the 10-year period preceding the Participant’s retirement. If the Participant retires prior to the later of age 65 or the completion of 30 years of continuous service with the Company, but has completed at least 10 years of continuous service with the Company, the amount of the supplemental retirement benefit will be reduced by 1/360th for each month short of 30 years that the Participant was employed by the Company.

Net periodic benefit costs and related components for the SERPs for the three- and nine-month periods ended June 29, 2013 and June 30, 2012 are as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	June 29, 2013		June 30, 2012		June 29, 2013		June 30, 2012
Service cost	$	60	$	63	$	180	$	163
Interest cost		72		84		216		226
Amortization of prior service cost		57		56		171		170
Recognized net actuarial loss		34		38		102		68
Net periodic benefit cost	$	223	$	241	$	669	$	627