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Retirement Plan | 12 Months Ended
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Jun. 27, 2019
Retirement Benefits [Abstract] |
Retirement Plan | NOTE 13 — RETIREMENT PLAN The Supplemental Employee Retirement Plan (“SERP”) is an unfunded, non-qualified benefit plan that will provide eligible participants with monthly benefits upon retirement, disability or death, subject to certain conditions. Benefits paid to retirees are based on age at retirement, years of credited service, and average compensation. We use our fiscal year-end as the measurement date for the obligation calculation. Accounting guidance in ASC Topic 715, Compensation — Retirement Benefits requires the recognition of the funded status of the SERP on the Consolidated Balance Sheet. Actuarial gains or losses, prior service costs or credits and transition obligations that have not yet been recognized are recorded as a component of “Accumulated Other Comprehensive Loss” (“AOCL”). The following table presents the changes in the projected benefit obligation for the fiscal years ended:
|  | June 27, 2019 |  |  | June 28, 2018 |
Change in projected benefit obligation |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year |  | $ | 21,934 |  |  | $ | 21,641 |
Service cost |  |  | 610 |  |  |  | 607 |
Interest cost |  |  | 895 |  |  |  | 851 |
Actuarial loss (gain) |  |  | 2,597 |  |  |  | (511 | )
Benefits paid |  |  | (654 | ) |  |  | (654 | )
Projected benefit obligation at end of year |  | $ | 25,382 |  |  | $ | 21,934 |
The accumulated benefit obligation, which represents benefits earned up to the measurement date, was $20,985 and $18,582 at June 27, 2019 and June 28, 2018, respectively. Components of the actuarial loss (gain) portion of the change in projected benefit obligation are presented below for the fiscal years ended:
|  | June 27, 2019 |  |  | June 28, 2018 |  |  | June 29, 2017 |
Actuarial Loss (Gain) |  |  |  |  |  |  |  |  |  |  |  |
Change in assumed pay increases |  | $ | 293 |  |  | $ | (56 | ) |  | $ | 124 |
Change in discount rate |  |  | 2,174 |  |  |  | (523 | ) |  |  | (1,402 | )
Change in mortality assumptions |  |  | (69 | ) |  |  | (117 | ) |  |  | (193 | )
Other |  |  | 199 |  |  |  | 185 |  |  |  | (467 | )
Actuarial loss (gain) |  | $ | 2,597 |  |  | $ | (511 | ) |  | $ | (1,938 | )
The components of the net periodic pension cost are as follows for the fiscal years ended:
|  | June 27, 2019 |  |  | June 28, 2018 |  |  | June 29, 2017 |
Service cost |  | $ | 610 |  |  | $ | 607 |  |  | $ | 631 |
Interest cost |  |  | 895 |  |  |  | 851 |  |  |  | 811 |
Recognized loss amortization |  |  | 95 |  |  |  | 162 |  |  |  | 365 |
Prior service cost amortization |  |  | 957 |  |  |  | 957 |  |  |  | 957 |
Net periodic pension cost |  | $ | 2,557 |  |  | $ | 2,577 |  |  | $ | 2,764 |
Significant assumptions related to our SERP include the discount rate used to calculate the actuarial present value of benefit obligations to be paid in the future, the average rate of compensation expense increase by SERP participants, and anticipated mortality rates. The RP-2014 white collar fully generational mortality table with mortality improvement scale MP-2018 was utilized in the preparation of our pension obligation as of June 27, 2019. We used the following assumptions to calculate the benefit obligation of our SERP as of the following dates:
|  | June 27, 2019 |  | June 28, 2018
Discount rate |  | 3.56% |  | 4.14%
Average rate of compensation increases |  | 4.13% |  | 3.38%
Bonus payment |  | 60% - 85% of base, paid 4 of 5 years |  | 60% - 85% of base, paid 4 of 5 years
We used the following assumptions to calculate the net periodic costs of our SERP as follows for the fiscal years ended:
|  | June 27, 2019 |  | June 28, 2018 |  | June 29, 2017
Discount rate |  | 4.14% |  | 3.99% |  | 3.61%
Rate of compensation increases |  | 3.38% |  | 4.50% |  | 4.50%
Mortality |  | RP-2014 white collar with MP- 2017 scale |  | RP-2014 white collar with MP- 2016 scale |  | RP-2014 white collar with MP- 2015 scale
Bonus payment |  | 60% -85% of base, paid 4 of 5 years |  | 60% -85% of base, paid 4 of 5 years |  | 60% -85% of base, paid 4 of 5 years
The assumed discount rate is based, in part, upon a discount rate modeling process that considers both high quality long-term indices and the duration of the SERP relative to the durations implicit in the broader indices. The discount rate is utilized principally in calculating the actuarial present value of our obligation and periodic expense pursuant to the SERP. To the extent the discount rate increases or decreases, our SERP obligation is decreased or increased, respectively. The following table presents the benefits expected to be paid in the next ten fiscal years:
Fiscal year |  |  |
2020 |  | $ | 645 |
2021 |  |  | 763 |
2022 |  |  | 737 |
2023 |  |  | 705 |
2024 |  |  | 668 |
2025 — 2029 |  |  | 6,830 |
At June 27, 2019 and June 28, 2018, the current portion of the SERP liability was $645 and $646, respectively, and recorded in Accrued payroll and related benefits on the Consolidated Balance Sheets. The following table presents the components of AOCL that have not yet been recognized in net pension expense:
|  | June 27, 2019 |  |  | June 28, 2018 |
Unrecognized net loss |  | $ | (5,453 | ) |  | $ | (2,951 | )
Unrecognized prior service cost |  |  | (1,435 | ) |  |  | (2,392 | )
Tax effect |  |  | 2,563 |  |  |  | 2,162 |
Net amount unrecognized |  | $ | (4,325 | ) |  | $ | (3,181 | )
We expect to recognize $957 of the prior service cost and $416 of net loss into net periodic pension expense during the fiscal year ending June 25, 2020.

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