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Retirement Plan
 12 Months Ended
Jun. 24, 2021
Retirement Benefits [Abstract]  
Retirement Plan
NOTE 14 — 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 24,
2021
     
June 25,
2020
  
Change in projected benefit obligation
                  
Projected benefit obligation at beginning of year
    $ 32,204      $ 25,382  
Service cost
      944        712  
Interest cost
      858        892  
Actuarial loss
      2,195        5,872  
Benefits paid
      (654 )       (654 ) 
    
 
 
     
 
 
  
Projected benefit obligation at end of year
    $ 35,547      $ 32,204  
    
 
 
     
 
 
  
The accumulated benefit obligation, which represents benefits earned up to the measurement date, was $28,927 and $25,839 at June 24, 2021 and June 25, 2020, respectively.
Components of the actuarial loss portion of the change in projected benefit obligation are presented below for the fiscal years ended:
 
                                                                   
    
June 24,
2021
     
June 25,
2020
     
June 27,
2019
  
Actuarial Loss
                           
Change in assumed pay increases
   
$
3,319
 
   
$
2,352
 
   
$
293
 
Change in discount rate
   
 
(1,134
) 
   
 
4,285
 
   
 
2,174
 
Change in mortality assumptions
   
 
(329
) 
   
 
(1,083
) 
   
 
(69
) 
Other
   
 
339
 
   
 
318
 
   
 
199
 
    
 
 
     
 
 
     
 
 
  
Actuarial loss
   
$
2,195
 
   
$
5,872
 
   
$
2,597
 
    
 
 
     
 
 
     
 
 
  
The components of the net periodic pension cost are as follows for the fiscal years ended:
 
                                                                   
    
June 24,
2021
     
June 25,
2020
     
June 27,
2019
  
Service cost
   
$
944
 
   
$
712
 
   
$
610
 
Interest cost
   
 
858
 
   
 
892
 
   
 
895
 
Recognized loss amortization
   
 
1,183
 
   
 
417
 
   
 
95
 
Prior service cost amortization
   
 
478
 
   
 
957
 
   
 
957
 
    
 
 
     
 
 
     
 
 
  
Net periodic pension cost
   
$
3,463
 
   
$
2,978
 
   
$
2,557
 
    
 
 
     
 
 
     
 
 
  
The most significant assumption related to our SERP is the discount rate used to calculate the actuarial present value of benefit obligations to be paid in the future.
We used the following assumptions to calculate the benefit obligation of our SERP as of the following dates:
 
    
June 24,

2021
  
June 25,
2020
Discount rate
    2.89%   2.69%
Average rate of compensation increases
    3.38%   3.38%
Bonus payment
   
45% - 110%

of base,
paid 4 of 5
years		  
60% - 95%

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 24,

2021
  
June 25,

2020
  
June 27,

2019
Discount rate
    2.69%   3.56%   4.14%
Rate of compensation increases
    3.38%   4.13%   3.38%
Mortality
   
Pri-2012 white

collar with MP-
2019 scale		  
RP-2014 white

collar with MP-
2018 scale		  
RP-2014 white

collar with MP-
2017 scale
Bonus payment
    60% - 95% 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
       
2022
    $ 628  
2023
      762  
2024
      703  
2025
      1,420  
2026
      1,355  
2027 — 2031
      8,404  
At June 24, 2021 and June 25, 2020, the current portion of the SERP liability was $628 and $631, respectively, and recorded in the caption “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 24,
2021
     
June 25,
2020
  
Unrecognized net loss
    $ (11,921 )     $ (10,909 ) 
Unrecognized prior service cost
      —          (478 ) 
Tax effect
      2,896        2,757  
    
 
 
     
 
 
  
Net amount unrecognized
    $ (9,025 )     $ (8,630 )