NOTE 3- Retirement and Other Benefit Plans:
The Company has noncontributory-trusteed defined benefit retirement plans for sales, administrative, supervisory and certain other employees. The benefits under these plans are primarily based on years of service and compensation levels. The Company’s funding policy is to contribute annually the maximum amount deductible for federal income tax purposes, without regard to the plans’ unfunded current liability. The measurement date for the plan is the Company’s fiscal year end.
Net pension cost consisted of the following:
| |
|
|
2005
|
2004
|
2003
|
|
|
|
|
|
|
| |
Service cost |
|
$ 1,680 |
$ 1,435 |
$ 1,177 |
| |
Interest cost |
|
1,803 |
1,704 |
1,523 |
| |
Expected return on plan assets |
|
(1,406 ) |
(1,295 ) |
(1,108 ) |
| |
Amortization of unrecognized loss |
|
370 |
300 |
226 |
| |
Amortization of transition asset (15.2 years) |
|
— |
(68 ) |
(76 ) |
| |
Amortization of unrecognized prior service costs |
|
42 |
41 |
41 |
|
|
|
|
|
|
| |
Net pension cost |
|
$ 2,489 |
$ 2,117 |
$ 1,783 |
|
|
|
|
|
|
Net pension cost is determined using assumptions as of the beginning of each fiscal year. Weighted average assumptions for the fiscal years are as follows:
| |
|
|
2005
|
2004
|
2003
|
|
|
|
|
|
|
| |
Discount rate |
|
6.00% |
6.25% |
6.75% |
| |
Rate of increase in salary levels |
|
3.75% |
3.75% |
3.75% |
| |
Expected return on plan assets |
|
8.00% |
8.00% |
8.00% |
The benefit obligation, plan assets, and funded status of these plans as of the fiscal years ended are as follows:
| |
|
|
2005
|
2004
|
|
|
|
|
|
Change in benefit obligations: |
|
|
|
| |
Benefit Obligations - beginning of year |
|
$ 33,151 |
$ 27,489 |
| |
Service Cost |
|
1,680 |
1,434 |
| |
Interest Cost |
|
1,803 |
1,705 |
| |
Actuarial (Gain) Loss |
|
(2,865 ) |
2,971 |
| |
Benefits Paid |
|
(574 ) |
(448 ) |
| |
Plan Amendments |
|
20 |
— |
|
|
|
|
|
| |
Benefit Obligations - end of year |
|
33,215 |
33,151 |
|
|
|
|
|
Change in plan assets: |
|
|
|
| |
Fair value of plan assets - beginning of year |
|
17,721 |
16,296 |
| |
Employer Contributions |
|
991 |
848 |
| |
Actual return on plan assets |
|
1,303 |
1,025 |
| |
Benefits Paid |
|
(574 ) |
(448 ) |
|
|
|
|
|
| |
Fair value of plan assets - end of year |
|
19,441 |
17,721 |
|
|
|
|
|
Funded Status of the plans |
|
(13,774 ) |
(15,430 ) |
Unrecognized prior service costs |
|
97 |
118 |
Unrecognized net actuarial loss |
|
7,351 |
10,484 |
Unrecognized net transition asset |
|
— |
— |
Additional accrued minimum liability |
|
(3,458 ) |
(4,509 ) |
|
|
|
|
|
Accrued pension cost |
|
(9,784 ) |
(9,337 ) |
|
|
|
|
|
The accumulated benefit obligation is $29,225 and $27,058 at October 28, 2005 and October 29, 2004, respectively.
|
