Note 8 - Employee Benefit Plans

6 Months Ended

Apr. 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.

During the second quarter of fiscal 2016, the Company notified plan participants of its intent to terminate the Delaware Plan effective May 1, 2016 and settle plan liabilities through either lump sum distributions to plan participants or annuity contracts that cover vested benefits. The Company currently expects to complete the settlement of plan liabilities by September 30, 2016.

The Company made contributions totaling $37,000 and $86,000 to the Delaware Plan during the three- and six-month periods ended April 2, 2016, respectively, and expects to contribute an additional $106,000 during the remainder of the current fiscal year.

Net periodic pension costs for the Delaware Plan for the three- and six-month periods ended April 2, 2016 and March 28, 2015 include the following components:

	Three Months Ended						Six Months Ended
(In thousands)	April 2, 2016			March 28, 2015			April 2, 2016			March 28, 2015
Interest cost	$	37		$	33		$	74		$	66
Expected return on plan assets		(44	)		(45	)		(88	)		(90	)
Recognized net actuarial loss		19			13			38			26
Net periodic pension cost	$	12		$	1		$	24		$	2

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, for the 15-year period following the later of the Participant’s retirement date or the Participant’s attainment of age 65, a supplemental retirement benefit 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 completion of 30 years of continuous service with the Company, but has completed at least 10 years of continuous service with the Company and is at least 55 years of age, 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- and six-month periods ended April 2, 2016 and March 28, 2015 include the following components:

	Three Months Ended				Six Months Ended
(In thousands)	April 2, 2016		March 28, 2015		April 2, 2016		March 28, 2015
Service cost	$	66	$	72	$	132	$	144
Interest cost		81		81		162		162
Recognized net actuarial loss		21		29		42		58
Net periodic pension cost	$	168	$	182	$	336	$	364