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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Mar. 27, 2021
Retirement Benefits [Abstract] |
EMPLOYEE BENEFIT PLANS | NOTE 5 – EMPLOYEE BENEFIT PLANS Defined Contribution Plan. All of Transcat’s U.S. based employees are eligible to participate in a defined contribution plan, the Long-Term Savings and Deferred Profit Sharing Plan (the “Plan”), provided they meet certain qualifications. In response to the COVID-19 pandemic, the Company suspended the employer match to the Plan for the first six months of fiscal year 2021. In the second six months of fiscal year 2021, the Company matched 50% of the first 6% of pay that eligible employees contribute to the Plan. In fiscal year 2020, the Company matched 50% of the first 6% of pay that eligible employees contribute to the Plan. In the long-term savings portion of the Plan (the “401K Plan”), plan participants are entitled to a distribution of their vested account balance upon termination of employment or retirement. Plan participants are fully vested in their contributions while Company contributions are fully vested after three years of service. The Company’s matching contributions to the 401K Plan were approximately $0.4 million and $0.9 million in fiscal years 2021 and 2020, respectively. In the deferred profit sharing portion of the Plan, Company contributions are made at the discretion of the board of directors. The Company made no profit sharing contributions in fiscal years 2021 and 2020. Employee Stock Purchase Plan. The Company has an Employee Stock Purchase Plan (the “ESPP”) that allows for eligible employees as defined in the ESPP to purchase common shares of the Company through payroll deductions at a price that is 85% of the closing market price on the second last business day of each calendar month (the “Investment Date”). 650,000 shares can be purchased under the ESPP. The difference between the closing market price on the Investment Date and the price paid by employees is recorded as a general and administrative expense in the accompanying Consolidated Statements of Income. The expense related to the ESPP was less than $0.1 million in each of fiscal years 2021 and 2020. Non-Qualified Deferred Compensation Plan. The Company has available a non-qualified deferred compensation plan (the “NQDC Plan”) for directors and officers. Participants are fully vested in their contributions. At its discretion, the Company may elect to match employee contributions, subject to legal limitations in conjunction with the 401K Plan, which fully vest after three years of service. During fiscal years 2021 and 2020, the Company did not match any employee contributions. Participant accounts are adjusted to reflect performance, whether positive or negative, of selected investment options chosen by each participant during the deferral period. In the event of bankruptcy, the assets of the NQDC Plan are available to satisfy the claims of the Company’s general creditors. The liability for compensation deferred under the NQDC Plan was $0.4 million as of both March 27, 2021 and March 28, 2020, and is included as a component of other liabilities (non-current) on the Consolidated Balance Sheets. 51 Table of Contents Post-retirement Health Care Plans. The Company has a defined benefit post-retirement health care plan which provides long-term care insurance benefits, medical and dental insurance benefits and medical premium reimbursement benefits to eligible retired corporate officers and their eligible spouses (the “Officer Plan”). The change in the post-retirement benefit obligation is as follows:
|  | FY 2021 |  |  | FY 2020 |
Post-retirement benefit obligation, at beginning of fiscal year |  | $ | 1,509 |  |  | $ | 1,311 |
Service cost |  |  | 84 |  |  |  | 77 |
Interest cost |  |  | 48 |  |  |  | 48 |
Benefits paid |  |  | (95 | ) |  |  | (98 | )
Actuarial loss |  |  | 285 |  |  |  | 171 |
Post-retirement benefit obligation, at end of fiscal year |  |  | 1,831 |  |  |  | 1,509 |
Fair value of plan assets, at end of fiscal year |  |  | - |  |  |  | - |
Funded status, at end of fiscal year |  | $ | (1,831 | ) |  | $ | (1,509 | )
Accumulated post-retirement benefit obligation, at end of fiscal year |  | $ | 1,831 |  |  | $ | 1,509 |
The accumulated post-retirement benefit obligation is included as a component of other liabilities (non-current) in the Consolidated Balance Sheets. The components of net periodic post-retirement benefit cost and other amounts recognized in other comprehensive income are as follows:
|  | FY 2021 |  |  | FY 2020 |
Net periodic post-retirement benefit cost: |  |  |  |  |  |  |  |
Service cost |  | $ | 84 |  |  | $ | 77 |
Interest cost |  |  | 48 |  |  |  | 48 |
Amortization of prior service cost |  |  | 1 |  |  |  | 1 |
|  |  | 133 |  |  |  | 126 |
Benefit obligations recognized in other comprehensive income: |  |  |  |  |  |  |  |
Amortization of prior service cost |  |  | (1 | ) |  |  | (1 | )
Net gain |  |  | 233 |  |  |  | 113 |
|  |  | 232 |  |  |  | 112 |
Total recognized in net periodic benefit cost and other comprehensive income |  | $ | 365 |  |  | $ | 238 |
Amount recognized in accumulated other comprehensive income, at end of fiscal year: |  |  |  |  |  |  |  |
Unrecognized prior service cost |  | $ | 739 |  |  | $ | 518 |
The prior service cost is amortized over the average remaining life expectancy of active participants in the Officer Plan. The estimated prior service cost that will be amortized from accumulated other comprehensive income into net periodic post-retirement benefit cost during fiscal year 2021 is less than $0.1 million. The post-retirement benefit obligation was computed by an independent third-party actuary. Assumptions used to determine the post-retirement benefit obligation and the net periodic postretirement benefit cost were as follows:
|  | March 27, |  |  | March 28, |
|  | 2021 |  |  | 2020 |
Weighted average discount rate |  |  | 3.0% |  |  |  | 3.3% |
Medical care cost trend rate: |  |  |  |  |  |  |  |
Trend rate assumed for next year |  |  | 7.0% |  |  |  | 6.8% |
Ultimate trend rate |  |  | 3.8% |  |  |  | 3.8% |
Year that rate reaches ultimate trend rate |  |  | 2075 |  |  |  | 2075 |
Dental care cost trend rate: |  |  |  |  |  |  |  |
Trend rate assumed for next year and remaining at that level thereafter |  |  | 3.0% |  |  |  | 3.5% |
52 Table of Contents Benefit payments are funded by the Company as needed. Payments toward the cost of a retiree’s medical and dental coverage are initially determined as a percentage of a base coverage plan in the year of retirement and are limited to increase at a rate of no more than 50% of the annual increase in medical and dental costs, as defined in the plan document. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:
Fiscal |  |  |  |
Year |  | Amount |
2022 |  | $ | 179 |
2023 |  |  | 160 |
2024 |  |  | 134 |
2025 |  |  | 125 |
2026 |  |  | 91 |
Thereafter |  | $ | 1,142 |
Increasing the assumed health care cost trend rate by one percentage point would increase the accumulated post-retirement benefit obligation and the annual net periodic post-retirement benefit cost by $0.2 million. A one percentage point decrease in the healthcare cost trend would decrease the accumulated post-retirement benefit obligation and the annual net periodic post-retirement benefit cost by $0.2 million.

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