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Employee Benefit Plans
 3 Months Ended
Dec. 31, 2011
Employee Benefit Plans [Abstract]  
Employee Benefit Plans

(8) Employee Benefit Plans

Retirement plans. The Company has one defined benefit pension plan, the Insteel Wire Products Company Retirement Income Plan for Hourly Employees, Wilmington, Delaware (the “Delaware Plan”). The Delaware Plan provides benefits for eligible employees based primarily upon years of service and compensation levels. The Delaware Plan was frozen effective September 30, 2008 whereby participants will no longer earn additional service benefits. The Company’s funding policy is to contribute amounts at least equal to those required by law. The Company made contributions totaling $33,000 and $68,000 to the Delaware Plan during the three-month periods ended December 31, 2011 and January 1, 2011, respectively, and expects to contribute an additional $173,000 during the remainder of the current fiscal year.

In February 2011, as part of the planned closure of the Wilmington, Delaware facility, the Company amended the Delaware Plan granting certain participants additional service credit. The amendment resulted in a one-time charge of $306,000 that was recorded in restructuring charges in fiscal 2011.

 

Net periodic pension costs and related components for the Delaware Plan for the three-month periods ended December 31, 2011 and January 1, 2011 are as follows:

 

                 
    Three Months Ended  
(In thousands)       December 31,    
2011		         January 1,    
2011		  

Interest cost

   $ 37     $ 48  

Expected return on plan assets

     (34 )      (52 ) 

Recognized net actuarial loss

     14       58  
   

 

 

    

 

 

  

Net periodic pension cost

   $ 17     $ 54  
   

 

 

    

 

 

  

Supplemental employee retirement plan. The Company maintains supplemental employee retirement plans (each, a “SERP”) with certain of its employees (each, a “Participant”). Under the SERPs, if the Participant remains in continuous service with the Company for a period of at least 30 years, the Company will pay to the Participant a supplemental retirement benefit for the 15-year period following the Participant’s retirement equal to 50% of the Participant’s highest average annual base salary for five consecutive years in the 10-year period preceding the Participant’s retirement. If the Participant retires prior to the later of age 65 or the completion of 30 years of continuous service with the Company, but has completed at least 10 years of continuous service with the Company, the amount of the supplemental retirement benefit will be reduced by 1/360th for each month short of 30 years that the Participant was employed by the Company.

Net periodic benefit costs and related components for the SERPs for the three-month periods ended December 31, 2011 and January 1, 2011 are as follows:

 

                 
    Three Months Ended  
(In thousands)       December 31,    
2011		         January 1,    
2011		  

Service cost

   $ 50     $ 44  

Interest cost

     71       71  

Amortization of prior service cost

     57       65  

Recognized net actuarial loss

     15       —  
   

 

 

    

 

 

  

Net periodic benefit cost

   $ 193     $ 180