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RETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended
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Dec. 28, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] |
Funded Status of Pension Benefit Plans and Postretirement Benefit Plan | As of December 28, 2019 and December 29, 2018, the status of the Company’s pension benefit plans and other postretirement benefit plan was as follows:
|  | Pension Benefit |  |  | Other Postretirement Benefit |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Benefit obligation at beginning of year |  | $ | 91,533,200 |  |  | $ | 98,522,201 |  |  | $ | 2,096,761 |  |  | $ | 2,423,410 |
Change in discount rate |  |  | 12,313,831 |  |  |  | (8,319,874 | ) |  |  | 239,138 |  |  |  | (217,539 | )
Service cost |  |  | 1,055,410 |  |  |  | 1,319,841 |  |  |  | 33,287 |  |  |  | 37,024 |
Interest cost |  |  | 3,516,318 |  |  |  | 3,107,164 |  |  |  | 56,755 |  |  |  | 77,161 |
Actuarial (gain)/loss |  |  | (1,508,935 | ) |  |  | 531,799 |  |  |  | 77,813 |  |  |  | (89,664 | )
Significant Event |  |  | -- |  |  |  | -- |  |  |  | (902,719 | ) |  |  | -- |
Benefits paid |  |  | (3,918,781 | ) |  |  | (3,627,931 | ) |  |  | (35,016 | ) |  |  | (133,631 | )
Benefit obligation at end of year |  | $ | 102,991,043 |  |  | $ | 91,533,200 |  |  | $ | 1,566,019 |  |  | $ | 2,096,761 |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Fair value of plan assets at beginning of year |  | $ | 66,170,875 |  |  | $ | 72,098,772 |  |  | $ | 1,448,126 |  |  | $ | 1,391,239 |
Actual return on plan assets |  |  | 11,803,359 |  |  |  | (4,827,641 | ) |  |  | 13,466 |  |  |  | 56,887 |
Employer contributions |  |  | 304,105 |  |  |  | 2,527,675 |  |  |  | 35,016 |  |  |  | 133,631 |
Significant Event |  |  | -- |  |  |  | -- |  |  |  | (902,719 | ) |  |  | -- |
Benefits paid |  |  | (3,918,781 | ) |  |  | (3,627,931 | ) |  |  | (35,016 | ) |  |  | (133,631 | )
Fair value of plan assets at end of year |  | $ | 74,359,558 |  |  | $ | 66,170,875 |  |  | $ | 558,873 |  |  | $ | 1,448,126 |
|  | Pension Benefit |  |  | Other Postretirement Benefit |
Funded Status |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Net amount recognized in the balance sheet |  | $ | (28,631,485 | ) |  | $ | (25,362,325 | ) |  | $ | (1,007,146 | ) |  | $ | (648,635 | )
Amounts Recognized in Accumulated Other Comprehensive Income | Amounts recognized in accumulated other comprehensive income consist of:
|  | Pension Benefit |  |  | Other Postretirement Benefit |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Net (loss)/gain |  | $ | (36,315,245 | ) |  | $ | (33,714,584 | ) |  | $ | 499,701 |  |  | $ | 1,332,634 |
Prior service (cost) credit |  |  | (265,012 | ) |  |  | (364,392 | ) |  |  | 8,253 |  |  |  | 13,325 |
|  | $ | (36,580,257 | ) |  | $ | (34,078,976 | ) |  | $ | 507,954 |  |  | $ | 1,345,959 |
Change in the Components of Accumulated Other Comprehensive income | Change in the components of accumulated other comprehensive income consist of:
|  | Pension Benefit |  |  | Other Postretirement Benefit |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Balance at beginning of period |  | $ | (34,078,976 | ) |  | $ | (33,059,756 | ) |  | $ | 1,345,959 |  |  | $ | 1,108,182 |
Change due to availability of final actual assets and census data |  |  | --- |  |  |  | --- |  |  |  | -- |  |  |  | -- |
Charged to net periodic benefit cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  |  | 99,380 |  |  |  | 114,822 |  |  |  | (5,072 | ) |  |  | (5,072 | )
Net loss (gain) |  |  | 1,162,196 |  |  |  | 1,110,111 |  |  |  | (47,272 | ) |  |  | (65,591 | )
Liability (gains)/losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  |  | (12,313,831 | ) |  |  | 8,319,874 |  |  |  | (239,138 | ) |  |  | 217,539 |
Asset (gains)/losses deferred |  |  | 7,724,649 |  |  |  | (9,531,647 | ) |  |  | (14,567 | ) |  |  | 1,237 |
Significant Event |  |  | -- |  |  |  | -- |  |  |  | (454,143 | ) |  |  | -- |
Additional recognition due to plan amendment |  |  | -- |  |  |  | 14,928 |  |  |  | — |  |  |  | — |
Other |  |  | 826,325 |  |  |  | (1,047,308 | ) |  |  | (77,813 | ) |  |  | 89,664 |
Balance at end of period |  | $ | (36,580,257 | ) |  | $ | (34,078,976 | ) |  | $ | 507,954 |  |  | $ | 1,345,959 |
Assumptions Used to Determine Projected Benefit Obligations for Benefit Plans | Assumptions used to determine the projected benefit obligations for the Company’s pension benefit plans and other postretirement benefit plan for the fiscal year indicated were as follows:
|  | 2019 |  | 2018
Discount rate |  |  |
- | Pension plans | 3.18% - 3.23% |  | 4.20% - 4.22%
- | Supplemental pension plans | 2.61% |  | 3.81%
- | Other postretirement plan | 3.35% |  | 4.26%
Projected Benefit Obligation and Accumulated Benefit Obligation in Excess of Plan Assets | Information for the under-funded pension plans with a projected benefit obligation and an accumulated benefit obligation in excess of plan assets:
|  | 2019 |  |  | 2018 |
Number of plans |  |  | 5 |  |  |  | 5 |
Projected benefit obligation |  | $ | 102,991,043 |  |  | $ | 91,533,200 |
Accumulated benefit obligation |  |  | 102,991,043 |  |  |  | 91,533,200 |
Fair value of plan assets |  |  | 74,359,558 |  |  |  | 66,170,875 |
Net amount recognized in accrued benefit liability |  |  | (28,631,485 | ) |  |  | (25,362,325 | )
Defined Contribution Plan | The Company made contributions to the plan as follows:
|  | 2019 |  |  | 2018 |
Regular matching contributions |  | $ | 540,693 |  |  | $ | 551,046 |
Transitional credit contributions |  |  | 305,226 |  |  |  | 349,062 |
Non-discretionary contributions |  |  | 638,745 |  |  |  | 578,373 |
Total contributions made for the period |  | $ | 1,484,664 |  |  | $ | 1,478,481 |
Pension Benefit [Member] |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] |
Components of Net Periodic Benefit Cost | Components of the net periodic benefit cost of the Company’s pension benefit plans for the fiscal year indicated were as follows:
|  | 2019 |  |  | 2018 |
Service cost |  | $ | 1,055,410 |  |  | $ | 1,319,841 |
Interest cost |  |  | 3,510,618 |  |  |  | 3,107,164 |
Expected return on plan assets |  |  | (4,761,320 | ) |  |  | (5,219,515 | )
Amortization of prior service cost |  |  | 99,380 |  |  |  | 114,822 |
Amortization of the net loss |  |  | 1,162,196 |  |  |  | 1,110,111 |
Net periodic benefit cost |  | $ | 1,071,984 |  |  | $ | 432,423 |
Assumptions Used to Determine Net Periodic Benefit Cost for Benefit Plans | Assumptions used to determine net periodic benefit cost for the Company’s pension benefit plans for the fiscal year indicated were as follows:
| 2019 |  | 2018
Discount rate |  |  |
- Pension plans | 4.20% - 4.22% |  | 3.54% - 3.57%
- Supplemental pension plans | 3.81% |  | 3.10%
Expected return on plan assets | 7.5% |  | 7.5%
Rate of compensation increase | 0% |  | 0%
Fair Values of Plans Assets Utilizing Fair Value Hierarchy | The fair values of the company’s pension plans assets at December 28, 2019 and December 29, 2018, utilizing the fair value hierarchy discussed in Note 2, follow:
|  | December 28,2019 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Cash and Equivalents: |  |  |  |  |  |  |  |  |  |  |  |
Common/collective trust funds |  | $ | — |  |  | $ | 334,138 |  |  | $ | — |  |  | $ | 334,138 |
Equities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The Eastern Company Common Stock |  |  | 6,625,560 |  |  |  |  |  |  |  | — |  |  |  | 6,625,560 |
Common/collective trust funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Russell Multi Asset Core Plus Fund (a) |  |  | — |  |  |  | 33,413,819 |  |  |  | — |  |  |  | 33,413,819 |
Fixed Income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common/collective trust funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Target Duration LDI Fixed Income Funds (b) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
• Russell 8 Year LDI Fixed Income Fund |  |  | — |  |  |  | 12,796,482 |  |  |  | — |  |  |  | 12,796,482 |
• Russell 14 Year LDI Fixed Income Fund |  |  | — |  |  |  | 11,387,626 |  |  |  | — |  |  |  | 11,387,626 |
STRIPS Fixed Income Funds (c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
• Russell 15 Year STRIPS Fixed Income Fund |  |  | — |  |  |  | 3,050,389 |  |  |  | — |  |  |  | 3,050,389 |
• Russell 10 Year STRIPS Fixed Income Fund |  |  | — |  |  |  | 4,616,924 |  |  |  | — |  |  |  | 4,616,924 |
• Russell 28 to 29 Year STRIPS Fixed Income Fund |  |  | — |  |  |  | 2,134,620 |  |  |  | — |  |  |  | 2,134,620 |
Total |  | $ | 6,625,560 |  |  | $ | 67,733,998 |  |  | $ | — |  |  | $ | 74,359,558 |
|  | December 29, 2018 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Cash and Equivalents: |  |  |  |  |  |  |  |  |  |  |  |
Common/collective trust funds |  | $ | — |  |  | $ | 306,882 |  |  | $ | — |  |  | $ | 306,882 |
Equities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The Eastern Company Common Stock |  |  | 5,247,495 |  |  |  |  |  |  |  | — |  |  |  | 5,247,495 |
Common/collective trust funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Russell Multi Asset Core Plus Fund (a) |  |  | — |  |  |  | 30,611,519 |  |  |  | — |  |  |  | 30,611,519 |
Fixed Income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common/collective trust funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Target Duration LDI Fixed Income Funds (b) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
• Russell 8 Year LDI Fixed Income Fund |  |  | — |  |  |  | 5,735,993 |  |  |  | — |  |  |  | 5,735,993 |
• Russell 14 Year LDI Fixed Income Fund |  |  | — |  |  |  | 17,044,596 |  |  |  | — |  |  |  | 17,044,596 |
STRIPS Fixed Income Funds (c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
• Russell 15 Year STRIPS Fixed Income Fund |  |  | — |  |  |  | 1,811,436 |  |  |  | — |  |  |  | 1,811,436 |
• Russell 10 Year STRIPS Fixed Income Fund |  |  | — |  |  |  | 3,408,879 |  |  |  | — |  |  |  | 3,408,879 |
• Russell 28 to 29 Year STRIPS Fixed Income Fund |  |  | — |  |  |  | 2,004,075 |  |  |  | — |  |  |  | 2,004,075 |
Total |  | $ | 5,247,495 |  |  | $ | 60,923,380 |  |  | $ | — |  |  | $ | 66,170,875 |
Equity common funds primarily hold publicly traded common stock of both U.S and international companies selected for purposes of total return and to maintain equity exposure consistent with policy allocations. The Level 1 investment is made up of shares of The Eastern Company Common Stock and is valued at market price. Level 2 investments include commingled funds valued at unit values provided by the investment managers, which are based on the fair value of the underlying publicly traded securities.
| (a) | The investment objective of the RITC (formerly Russell) Multi-Asset Core Plus Fund seeks to provide long-term growth of capital over a market cycle by offering a diversified portfolio of funds and separate accounts investing in global stock, return seeking fixed income, commodities, global real estate and opportunistic investments. They hold a dynamic mix of underlying Russell Investments funds and/or separate accounts. Russell Investments is a strong proponent of disciplined strategic asset allocation and rebalancing strategies, and believes that unstable movements in the market have the potential to create opportunities. By identifying short-term mispricing, and making small tactical adjustments to the Multi-Asset Core Plus Fund, they believe there is potential to enhance returns while continuing to manage risks.
| (b) | The Target Duration LDI Fixed Income Funds seek to outperform their respective Barclays-Russell LDI Indexes over a full market cycle. These Funds invest primarily in investment grade corporate bonds that closely match those found in discount curves used to value U.S. pension liabilities. They seek to provide additional incremental return through modest interest rate timing, security selection and tactical use of non-credit sectors. Generally, for use in combination with other bond funds to gain additional credit exposure, with the goal of reducing the mismatch between a plan’s assets and liabilities.
| (c) | The STRIPS (Separate Trading of Registered Interest and Principal of Securities) Funds seek to provide duration and Treasury exposure by investing in an optimized subset of the STRIPS universe with a similar duration profile as the Barclays U.S. Treasury STRIPS 10-11 year, 16-16 year or 28-29 year Index. These passively managed funds are generally used with other bond funds to add additional duration to the asset portfolio. This will help reduce the mismatch between a plan’s assets and liabilities.
Other Postretirement Benefit [Member] |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] |
Components of Net Periodic Benefit Cost | Components of the net periodic benefit cost of the Company’s other postretirement benefit plan were as follows:
|  | 2019 |  |  | 2018 |
Service cost |  | $ | 33,287 |  |  | $ | 37,024 |
Interest cost |  |  | 56,755 |  |  |  | 77,161 |
Expected return on plan assets |  |  | (28,033 | ) |  |  | (55,650 | )
Amortization of prior service cost |  |  | (5,072 | ) |  |  | (5,072 | )
Amortization of the net loss |  |  | (47,272 | ) |  |  | (65,591 | )
Net periodic benefit cost |  | $ | 9,665 |  |  | $ | (12,128 | )
Assumptions Used to Determine Net Periodic Benefit Cost for Benefit Plans | Assumptions used to determine net periodic benefit cost for the Company’s other postretirement plan for the fiscal year indicated were as follows:
| 2019 |  | 2018
Discount rate | 4.26% |  | 3.60%
Expected return on plan assets | 4.0% |  | 4.0%

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