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Retirement Plan
 12 Months Ended
Jun. 27, 2024
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 Income (Loss)”.

The following table presents the changes in the projected benefit obligation for the fiscal years ended:

 

June 27,
2024

 

 

June 29,
2023

 

Change in projected benefit obligation

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

28,017

 

 

$

29,511

 

Service cost

 

 

251

 

 

 

801

 

Interest cost

 

 

1,400

 

 

 

1,366

 

Actuarial gain

 

 

(1,663

)

 

 

(3,007

)

Benefits paid

 

 

(1,143

)

 

 

(654

)

Projected benefit obligation at end of year

 

$

26,862

 

 

$

28,017

 

 

The accumulated benefit obligation, which represents benefits earned up to the measurement date, was $24,952 and $25,277 at June 27, 2024 and June 29, 2023, respectively.

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

 

June 27,
2024

 

 

June 29,
2023

 

 

June 30,
2022

 

Actuarial Gain

 

 

 

 

 

 

 

 

 

Change in assumed pay increases

 

$

1,418

 

 

$

(70

)

 

$

1,698

 

Change in discount rate

 

 

(1,138

)

 

 

(1,584

)

 

 

(8,184

)

Change in mortality assumptions

 

 

—

 

 

 

—

 

 

 

75

 

Other

 

 

(1,943

)

 

 

(1,353

)

 

 

(979

)

Actuarial gain

 

$

(1,663

)

 

$

(3,007

)

 

$

(7,390

)

 

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

 

June 27,
2024

 

 

June 29,
2023

 

 

June 30,
2022

 

Service cost

 

$

251

 

 

$

801

 

 

$

991

 

Interest cost

 

 

1,400

 

 

 

1,366

 

 

 

1,018

 

Recognized loss amortization

 

 

—

 

 

 

28

 

 

 

1,455

 

Net periodic pension cost

 

$

1,651

 

 

$

2,195

 

 

$

3,464

 

 

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 27,
2024

 

June 29,
2023

Discount rate

 

5.45%

 

5.12%

Average rate of compensation increases

 

6.11%

 

4.50%

Bonus payment

 

45% - 115% 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 27,
2024

 

June 29,
2023

 

June 30,
2022

Discount rate

 

5.12%

 

4.68%

 

2.89%

Rate of compensation increases

 

4.50%

 

4.50%

 

3.38%

Mortality

 

Pri-2012 white collar with MP- 2021 scale

 

Pri-2012 white collar with MP- 2021 scale

 

Pri-2012 white collar with MP- 2020 scale

Bonus payment

 

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

 

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

 

45% - 110% 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

 

 

 

2025

 

$

708

 

2026

 

 

979

 

2027

 

 

843

 

2028

 

 

1,729

 

2029

 

 

1,694

 

2030 — 2034

 

 

9,236

 

 

At June 27, 2024 and June 29, 2023, the current portion of the SERP liability was $708 and $1,364, respectively, and recorded in the caption “Accrued payroll and related benefits” on the Consolidated Balance Sheets.

The following table presents the components of accumulated other comprehensive income (loss) that have not yet been recognized in net pension expense:

 

June 27,
2024

 

 

June 29,
2023

 

Unrecognized net gain (loss)

 

$

1,623

 

 

$

(41

)

Tax effect

 

 

(579

)

 

 

(163

)

Net amount unrecognized

 

$

1,044

 

 

$

(204

)