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Retirement Plan
 12 Months Ended
Jun. 29, 2023
Retirement Benefits [Abstract]  
Retirement Plan

NOTE 15 — 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 29,
2023

 

 

June 30,
2022

 

Change in projected benefit obligation

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

29,511

 

 

$

35,547

 

Service cost

 

 

801

 

 

 

991

 

Interest cost

 

 

1,366

 

 

 

1,018

 

Actuarial gain

 

 

(3,007

)

 

 

(7,390

)

Benefits paid

 

 

(654

)

 

 

(655

)

Projected benefit obligation at end of year

 

$

28,017

 

 

$

29,511

 

 

The accumulated benefit obligation, which represents benefits earned up to the measurement date, was $25,277 and $25,960 at June 29, 2023 and June 30, 2022, respectively.

Components of the actuarial (gain) loss are presented below for the fiscal years ended:

 

June 29,
2023

 

 

June 30,
2022

 

 

June 24,
2021

 

Actuarial (Gain) Loss

 

 

 

 

 

 

 

 

 

Change in assumed pay increases

 

$

(70

)

 

$

1,698

 

 

$

3,319

 

Change in discount rate

 

 

(1,584

)

 

 

(8,184

)

 

 

(1,134

)

Change in mortality assumptions

 

 

—

 

 

 

75

 

 

 

(329

)

Other

 

 

(1,353

)

 

 

(979

)

 

 

339

 

Actuarial (gain) loss

 

$

(3,007

)

 

$

(7,390

)

 

$

2,195

 

 

 

The components of the net periodic pension cost are as follows for the fiscal years ended:

 

June 29,
2023

 

 

June 30,
2022

 

 

June 24,
2021

 

Service cost

 

$

801

 

 

$

991

 

 

$

944

 

Interest cost

 

 

1,366

 

 

 

1,018

 

 

 

858

 

Recognized loss amortization

 

 

28

 

 

 

1,455

 

 

 

1,183

 

Prior service cost amortization

 

 

—

 

 

 

—

 

 

 

478

 

Net periodic pension cost

 

$

2,195

 

 

$

3,464

 

 

$

3,463

 

 

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 29,
2023

 

June 30,
2022

Discount rate

 

5.12%

 

4.68%

Average rate of compensation increases

 

4.50%

 

4.50%

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 29,
2023

 

June 30,
2022

 

June 24,
2021

Discount rate

 

4.68%

 

2.89%

 

2.69%

Rate of compensation increases

 

4.50%

 

3.38%

 

3.38%

Mortality

 

Pri-2012 white collar with MP- 2021 scale

 

Pri-2012 white collar with MP- 2020 scale

 

Pri-2012 white collar with MP- 2019 scale

Bonus payment

 

45% - 110% of base, paid 4 of 5 years

 

45% - 110% of base, paid 4 of 5 years

 

60% - 95% 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

 

 

 

2024

 

$

1,364

 

2025

 

 

1,046

 

2026

 

 

1,282

 

2027

 

 

1,112

 

2028

 

 

1,900

 

2029 — 2033

 

 

8,595

 

 

At June 29, 2023 and June 30, 2022, the current portion of the SERP liability was $1,364 and $625, 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 29,
2023

 

 

June 30,
2022

 

Unrecognized net loss

 

$

(41

)

 

$

(3,076

)

Tax effect

 

 

(163

)

 

 

596

 

Net amount unrecognized

 

$

(204

)

 

$

(2,480

)