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Retirement Plan
 12 Months Ended
Jun. 30, 2022
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 30,

2022
     
June 24,

2021
  
Change in projected benefit obligation
                  
Projected benefit obligation at beginning of year
    $ 35,547      $ 32,204  
Service cost
      991        944  
Interest cost
      1,018        858  
Actuarial (gain) loss
      (7,390 )       2,195  
Benefits paid
      (655 )       (654 ) 
    
 
 
     
 
 
  
Projected benefit obligation at end of year
    $ 29,511      $ 35,547  
    
 
 
     
 
 
  
The accumulated benefit obligation, which represents benefits earned up to the measurement date, was $25,960 and $28,927 at June 30, 2022 and June 24, 2021, respectively.
Components of the actuarial (gain) loss portion of the change in projected benefit obligation are presented below for the fiscal years ended:
 
    
June 30,

2022
     
June 24,

2021
     
June 25,

2020
  
Actuarial (Gain) Loss
                           
Change in assumed pay increases
    $ 1,698      $ 3,319      $ 2,352  
Change in discount rate
      (8,184 )       (1,134 )       4,285  
Change in mortality assumptions
      75        (329 )       (1,083 ) 
Other
      (979 )       339        318  
    
 
 
     
 
 
     
 
 
  
Actuarial (gain) loss
    $ (7,390 )     $ 2,195      $ 5,872  
    
 
 
     
 
 
     
 
 
  
The components of the net periodic pension cost are as follows for the fiscal years ended:
 
    
June 30,

2022
     
June 24,

2021
     
June 25,

2020
  
Service cost
    $ 991      $ 944      $ 712  
Interest cost
      1,018        858        892  
Recognized loss amortization
      1,455        1,183        417  
Prior service cost amortization
      —          478        957  
    
 
 
     
 
 
     
 
 
  
Net periodic pension cost
    $ 3,464      $ 3,463      $ 2,978  
    
 
 
     
 
 
     
 
 
  
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 30,

2022
  
June 24,

2021
Discount rate
    4.68%   2.89%
Average rate of compensation increases
    4.50%   3.38%
Bonus payment
   
45% - 110%
of base,
paid 4 of 5
years
  
45% - 110%
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 30,

2022
  
June 24,

2021
  
June 25,

2020
Discount rate
    2.89%   2.69%   3.56%
Rate of compensation increases
    3.38%   3.38%   4.13%
Mortality
   
Pri-2012 white
collar with MP-
2020 scale
  
Pri-2012 white
collar with MP-
2019 scale
  
RP-2014 white
collar with MP-
2018 scale
Bonus payment
    45% - 110% of
base, paid 4 of 5
years

   60% - 95% 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
       
2023
    $ 625  
2024
      1,868  
2025
      1,420  
2026
      1,351  
2027
      1,283  
2028 — 2032
      9,759  
At June 30, 2022 and June 24, 2021, the current portion of the SERP liability was $625 and $628, 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 30,

2022
     
June 24,

2021
  
Unrecognized net loss
    $ (3,076 )     $ (11,921 ) 
Tax effect
      596        2,896  
    
 
 
     
 
 
  
Net amount unrecognized
    $ (2,480 )     $ (9,025 )