Note 8 - Employee Benefit Plans

3 Months Ended

Jan. 02, 2016

Pension and Other Postretirement Benefits Disclosure [Text Block]

(8) 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 Company’s funding policy is to contribute amounts at least equal to those required by law. The Delaware Plan was frozen effective September 30, 2008 whereby participants no longer earn additional service benefits.

The Company made contributions totaling $49,000 to the Delaware Plan during the three-month period ended January 2, 2016 and expects to contribute an additional $143,000 during the remainder of the current fiscal year.

Net periodic pension costs for the Delaware Plan for the three-month periods ended January 2, 2016 and December 27, 2014 include the following components:

	Three Months Ended
	January 2,			December 27,
(In thousands)	2016			2014
Interest cost	$	37		$	33
Expected return on plan assets		(44	)		(45	)
Recognized net actuarial loss		19			13
Net periodic pension cost	$	12		$	1

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 pension costs for the SERPs for the three-month periods ended January 2, 2016 and December 27, 2014 include the following components:

	Three Months Ended
	January 2,		December 27,
(In thousands)	2016		2014
Service cost	$	66	$	72
Interest cost		81		81
Recognized net actuarial loss		21		29
Net periodic pension cost	$	168	$	182