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Employee Benefit Plans
 6 Months Ended
Jul. 03, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Retirement Plans and Retiree Health and Life Insurance Plans
The Company provides non-contributory defined benefit pension plans for certain of its employees in the United States, Mexico, Belgium, Germany, Greece, France, and Turkey. The Company also sponsors contributory defined benefit pension plans covering certain of its employees in the United Kingdom, Canada and the Netherlands, and provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements.
The components of net periodic benefit cost include the following:
Three Months EndedSix Months Ended
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
Retirement Plans
Service cost$837 $1,020 $1,663 $1,981 
Interest cost2,671 9,657 5,381 19,764 
Expected return on plan assets(2,278)(8,650)(5,143)(18,311)
Amortization of prior service cost232 235 453 461 
Amortization of net actuarial loss1,181 6,378 2,316 13,249 
Effect of settlement loss74 547,631 430 547,631 
Net periodic benefit cost$2,717 $556,271 $5,100 $564,775 
Retiree Health and Life Insurance Plans
Service cost$79 $95 $161 $189 
Interest cost66 50 130 100 
Expected return on plan assets(110)(111)(222)(224)
Amortization of net actuarial gain(158)(181)(343)(377)
Net periodic benefit income$(123)$(147)$(274)$(312)
Settlement Charges
The Company recognized settlement charges of $430 and $340 during the six months ended July 3, 2022 and July 4, 2021, respectively. These charges resulted from payments made to certain participants in the Company's non-union Canadian pension plan who elected a lump sum distribution option upon retirement. Additional settlement charges related to the Canadian pension plans may be recognized over the remainder of 2022 as a result of ongoing lump-sum distributions.
The Company terminated the Sonoco Pension Plan for Inactive Participants (the "Inactive Plan"), a tax-qualified defined benefit plan, effective September 30, 2019, and settled the liabilities of the Inactive Plan in the second quarter of 2021 through a combination of lump-sum payments and the purchase of group annuity contracts. Non-cash, pre-tax settlement charges totaling $547,291 were recognized in the second quarter of 2021 as the lump sum payouts and annuity purchases were made.
Contributions
The Company made aggregate contributions of $8,895 and $139,687 to its defined benefit retirement and retiree health and life insurance plans during the six months ended July 3, 2022 and July 4, 2021, respectively. The 2021 contributions include $133,000 contributed to the Inactive Plan during the second quarter of 2021 in order for it to be fully funded upon final settlement. The Company expects to make additional aggregate contributions of approximately $6,800 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2022.
Sonoco Retirement and Savings Plan
The Sonoco Retirement and Savings Plan is a defined contribution retirement plan provided for certain of the Company’s U.S. employees. The plan is comprised of both an elective and non-elective component.
The elective component of the plan, which is designed to meet the requirements of Section 401(k) of the Internal Revenue Code, allows participants to set aside a portion of their wages and salaries for retirement and encourages saving
by matching a portion of their contributions with contributions from the Company. The plan provides for participant contributions of 1% to 100% of gross pay. Effective January 1, 2022, the Company's match on elective contributions to the plan increased from 50% of the first 4% of compensation contributed by participants to 100% of the first 6% as a result of changes to the plan, described below.
The non-elective component of the plan, the Sonoco Retirement Contribution ("SRC"), was eliminated effective January 1, 2022. The SRC provided for an annual Company contribution equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base to eligible participant accounts. SRC contributions were funded annually in the first quarter, following the year in which the benefit was earned. SRC contributions totaled $21,948 and $22,665 during the six months ended July 3, 2022 and July 4, 2021, respectively. No additional SRC contributions will occur. The Company recognized expense related to the SRC of $5,499 and $11,834 for the three- and six-month periods ended July 4, 2021.