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RETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 28, 2024
RETIREMENT BENEFIT PLANS  
RETIREMENT BENEFIT PLANS

10. RETIREMENT BENEFIT PLANS

 

The Company has non-contributory defined benefit pension plans covering some U.S. employees. Plan benefits are generally based upon age at retirement, years of service and, for its salaried plan, the level of compensation. The Company also sponsors unfunded non-qualified supplemental retirement plans that provide certain former officers with benefits in excess of limits imposed by federal tax law.

 

The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements.

 

Components of the net periodic benefit cost of the Company’s pension benefit plans for the fiscal year indicated were as follows:

 

 

 

2024

 

 

2023

 

Service cost

 

$712,013

 

 

$864,611

 

Interest cost

 

 

3,866,809

 

 

 

3,960,212

 

Expected return on plan assets

 

 

(4,396,137 )

 

 

(4,196,060 )

Amortization of prior service cost

 

 

-

 

 

 

-

 

Amortization of the net loss

 

 

1,309,455

 

 

 

1,371,460

 

Net periodic benefit cost

 

$1,492,140

 

 

$2,000,223

 

 

Service costs are reported in the cost of products sold and the other components of net periodic benefit costs are reported in other income in the consolidated statements of income.

 

Assumptions used to determine net periodic benefit cost for the Company’s pension benefit plans for the fiscal year indicated were as follows:

 

 

2024

 

 

2023

 

Discount rate

 

 

 

 

- Pension plans

 

4.99% - 5.00

%

 

5.21% - 5.23

%

- Supplemental pension plans

 

 

4.72%

 

 

4.92%

Expected return on plan assets

 

 

7.5%

 

 

7.5%

Rate of compensation increase

 

 

0%

 

 

0%

 

Components of the net periodic benefit cost of the Company’s other postretirement benefit plan were as follows:

 

 

 

2024

 

 

2023

 

Service cost

 

$14,296

 

 

$25,945

 

Interest cost

 

 

51,805

 

 

 

58,131

 

Expected return on plan assets

 

 

(18,736)

 

 

(19,396 )

Amortization of prior service cost

 

 

4,241

 

 

 

4,241

 

Amortization of the net loss

 

 

(78,267)

 

 

(67,581 )

Net periodic benefit cost

 

$(26,661)

 

$1,340

 

 

Assumptions used to determine net periodic benefit cost for the Company’s other postretirement plan for the fiscal year indicated were as follows:

 

 

 

2024

 

 

2023

 

Discount rate

 

 

5.04%

 

 

5.28%

Expected return on plan assets

 

 

4.0%

 

 

4.0%

Rate of compensation increase

 

 

4.3%

 

 

4.3%

                                                                 

 

As of December 28, 2024, and December 30, 2023, the status of the Company’s pension benefit plans and other postretirement benefit plan was as follows:

 

 

 

Pension Benefit

 

 

Other Postretirement Benefit

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Benefit obligation at beginning of year

 

$81,862,011

 

 

$80,701,715

 

 

$1,070,276

 

 

$1,151,126

 

Change in discount rate

 

 

(4,449,660 )

 

 

1,794,084

 

 

 

(81,579)

 

 

35,126

 

Service cost

 

 

712,013

 

 

 

864,611

 

 

 

14,296

 

 

 

25,945

 

Interest cost

 

 

3,866,809

 

 

 

3,960,212

 

 

 

51,805

 

 

 

58,131

 

Plan amendment

 

 

 

 

 

 

 

 

 

 

(44,757 )

 

 

 

 

Actuarial (gain)/loss

 

 

(924,172 )

 

 

(587,910)

 

 

(85,064 )

 

 

(162,766 )

Benefits paid

 

 

(5,150,941 )

 

 

(4,870,701 )

 

 

(27,362 )

 

 

(37,286 )

Benefit obligation at end of year

 

$75,916,060

 

 

$81,862,011

 

 

$897,615

 

 

$1,070,276

 

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Fair value of plan assets at beginning of year

 

$60,836,643

 

 

$58,527,250

 

 

$468,403

 

 

$484,904

 

Actual return on plan assets

 

 

1,509,268

 

 

 

5,902,956

 

 

 

18,736

 

 

 

(16,501 )

Employer contributions

 

 

2,116,250

 

 

 

1,277,138

 

 

 

46,479

 

 

 

51,180

 

Benefits paid

 

 

(5,150,941 )

 

 

(4,870,701 )

 

 

(46,479 )

 

 

(51,180 )

Fair value of plan assets at end of year

 

$59,311,220

 

 

$60,836,643

 

 

$487,139

 

 

$468,403

 

 

 

Pension Benefit

 

 

Other Postretirement Benefit

 

Funded Status

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net amount recognized in the balance sheet

 

$(16,604,840 )

 

$(21,025,365 )

 

$(410,476 )

 

$(554,758 )

 

Amounts recognized in accumulated other comprehensive income consist of:

 

 

 

 

 

 

 

 

 

 

Pension Benefit

 

 

Other Postretirement Benefit

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net (loss)/gain

 

$(31,287,987 )

 

$(35,084,405 )

 

$1,045,379

 

 

$929,097

 

Prior service (cost) credit

 

 

-

 

 

 

-

 

 

 

21,092

 

 

 

-

 

 

 

$(31,287,987 )

 

$(35,084,405 )

 

$1,066,471

 

 

$929,097

 

 

Change in the components of accumulated other comprehensive income consist of:

 

 

 

Pension Benefit

 

 

Other Postretirement Benefit

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Balance at beginning of period

 

$(35,084,405 )

 

$(36,956,587 )

 

$929,097

 

 

$900,694

 

Charged to net periodic benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

 

-

 

 

 

-

 

 

 

4,241

 

 

 

4,241

 

Net loss (gain)

 

 

1,309,455

 

 

 

1,371,460

 

 

 

(78,267 )

 

 

(67,581 )

Liability (gains)/losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4,449,660

 

 

 

(1,794,084)

 

 

81,579

 

 

 

(35,126 )

Asset (gains)/losses deferred

 

 

(2,149,183)

 

 

2,431,940

 

 

 

-

 

 

 

(35,897 )

Plan amendments

 

 

 

 

 

 

 

 

 

 

44,757

 

 

 

 

 

Other

 

 

186,486

 

 

 

(137,134 )

 

 

85,064

 

 

 

162,766

 

Balance at end of period

 

$(31,287,987 )

 

$(35,084,405 )

 

$1,066,471

 

 

$929,097

 

 

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:

 

 

 

 

 

2024

 

 

2023

 

Discount rate

 

 

 

 

 

-

 

 

Pension plans

 

5.56% - 5.59

%

 

4.99% - 5.00

%

 

-

 

 

Supplemental pension plans

 

 

5.16%

 

 

4.72%

 

-

 

 

Other postretirement plan

 

 

5.65%

 

 

5.04%

 

On December 28, 2024 and December 30, 2023, the accumulated benefit obligation for all qualified and nonqualified defined benefit pension plans was $75,916,060 and $81,862,011, respectively.

 

Information for the under-funded pension plans with a projected benefit obligation and an accumulated benefit obligation in excess of plan assets:

 

 

2024

 

 

2023

 

Number of plans

 

 

5

 

 

 

5

 

Projected benefit obligation

 

$75,916,060

 

 

$81,862,011

 

Accumulated benefit obligation

 

 

75,916,060

 

 

 

81,862,011

 

Fair value of plan assets

 

 

59,311,220

 

 

 

60,836,643

 

Net amount recognized in accrued benefit liability

 

$(16,604,840 )

 

$(21,025,368 )

 

Estimated future benefit payments to participants of the Company’s pension plans are $5.4 million in 2025, $5.4 million in 2026, $5.5 million in 2027, $5.7 million in 2028, $5.7 million in 2029 and a total of $28.8 million from 2030 through 2034.

 

Estimated future benefit payments to participants of the Company’s other postretirement plan are $42,000 in 2025, $44,000 in 2026, $44,000 in 2027, $46,000 in 2028, $49,000 in 2029 and a total of $261,000 from 2030 through 2034.

 

The Company expects to make cash contributions to its qualified pension plans of approximately $2,900,000 and to its other postretirement plan of approximately $42,000 in 2025.

 

We consider a number of factors in determining and selecting assumptions for the overall expected long-term rate of return on plan assets. We consider the historical long-term return experience of our assets, the current and expected allocation of our plan assets, and expected long-term rates of return. We derive these expected long-term rates of return with the assistance of our investment advisors and generally base these rates on a 10-year horizon for various asset classes and consider the expected positive impact of active investment management. We base our expected allocation of plan assets on a diversified portfolio consisting of domestic and international equity securities and fixed income securities.

 

We consider a variety of factors in determining and selecting our assumptions for the discount rate at the end of the year. In 2024, as in 2023, we developed each plan’s discount rate with the assistance of our actuaries by matching expected future benefit payments in each year to the corresponding spot rates from the FTSE Pension Liability Yield Curve, comprised of high quality (rated AA or better) corporate bonds.

 

The fair values of the Company’s pension plan assets on December 28, 2024 and December 30, 2023, utilizing the fair value hierarchy discussed in Note 3 – Accounting Policies – Fair Value of Financial Instruments, follow:

 

 

December 28, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash and Equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

$—

 

 

$413,731

 

 

$—

 

 

$413,731

 

Equities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Eastern Company Common Stock

 

 

5,759,658

 

 

 

 

 

 

 

—

 

 

 

5,759,658

 

RITC Russell Investments Russell 1000® Index Fund (a)

 

 

 

 

 

 

6,791,908

 

 

 

 

 

 

 

6,791,908

 

RITC Small Cap Fund (b)

 

 

 

 

 

 

515,724

 

 

 

 

 

 

 

515,724

 

RITC International Fund (c)

 

 

 

 

 

 

3,403,688

 

 

 

 

 

 

 

3,403,688

 

RITC Emerging Markets Fund (d)

 

 

 

 

 

 

1,233,972

 

 

 

 

 

 

 

1,233,972

 

RITC World Equity Fund (e)

 

 

 

 

 

 

7,470,472

 

 

 

 

 

 

 

7,470,472

 

RITC Global Real Estate Securities Fund (f)

 

 

 

 

 

 

1,208,511

 

 

 

 

 

 

 

1,208,511

 

RITC Global Listed Infrastructure Fund (g)

 

 

 

 

 

 

1,229,983

 

 

 

 

 

 

 

1,229,983

 

RIIFL High Yield Bond Fund (h)

 

 

 

 

 

 

1,641,701

 

 

 

 

 

 

 

1,641,701

 

RITC Commodities Fund (i)

 

 

 

 

 

 

171,003

 

 

 

 

 

 

 

171,003

 

Russell Global Private Credit Fund (j)

 

 

 

 

 

 

1,227,378

 

 

 

 

 

 

 

1,227,378

 

RITC Mult-Manager Bond Fund (k)

 

 

 

 

 

 

961,911

 

 

 

 

 

 

 

961,911

 

Fixed Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target Duration LDI Fixed Income Funds (l)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•   Russell 25 Year LDI Fixed Income Fund

 

 

—

 

 

 

7,714,633

 

 

 

—

 

 

 

7,714,633

 

•   Russell 14 Year LDI Fixed Income Fund

 

 

—

 

 

 

16,009,003

 

 

 

—

 

 

 

16,009,003

 

STRIPS Fixed Income Funds (m)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•   Russell 15 to 20 Year STRIPS Fixed Income Fund

 

 

—

 

 

 

2,764,897

 

 

 

—

 

 

 

2,764,897

 

•   Russell 10 to 15 Year STRIPS Fixed Income Fund

 

 

—

 

 

 

793,047

 

 

 

—

 

 

 

793,047

 

Total

 

$5,759,658

 

 

$53,551,562

 

 

$—

 

 

$59,311,220

 

 

 

December 30, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash and Equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

$—

 

 

$411,688

 

 

$—

 

 

$411,688

 

Equities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Eastern Company Common Stock

 

 

4,774,396

 

 

 

 

 

 

 

—

 

 

 

4,774,396

 

RITC Russell Investments Russell 1000® Index Fund (a)

 

 

 

 

 

 

6,595,564

 

 

 

 

 

 

 

6,595,564

 

RITC Small Cap Fund (b)

 

 

 

 

 

 

567,998

 

 

 

 

 

 

 

567,998

 

RITC International Fund (c)

 

 

 

 

 

 

3,669,895

 

 

 

 

 

 

 

3,669,895

 

RITC Emerging Markets Fund (d)

 

 

 

 

 

 

1,298,014

 

 

 

 

 

 

 

1,298,014

 

RITC World Equity Fund (e)

 

 

 

 

 

 

7,960,264

 

 

 

 

 

 

 

7,960,264

 

RITC Global Real Estate Securities Fund (f)

 

 

 

 

 

 

1,373,408

 

 

 

 

 

 

 

1,373,408

 

RITC Global Listed Infrastructure Fund (g)

 

 

 

 

 

 

1,327,625

 

 

 

 

 

 

 

1,327,625

 

RIIFL High Yield Bond Fund (h)

 

 

 

 

 

 

2,643,118

 

 

 

 

 

 

 

2,643,118

 

RITC Commodities Fund (i)

 

 

 

 

 

 

1,161,864

 

 

 

 

 

 

 

1,161,864

 

Fixed Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target Duration LDI Fixed Income Funds (l)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•   Russell 25 Year LDI Fixed Income Fund

 

 

—

 

 

 

9,858,521

 

 

 

—

 

 

 

9,858,521

 

•   Russell 14 Year LDI Fixed Income Fund

 

 

—

 

 

 

17,481,926

 

 

 

—

 

 

 

17,481,926

 

STRIPS Fixed Income Funds (m)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•   Russell 15 to 20 Year STRIPS Fixed Income Fund

 

 

—

 

 

 

876,584

 

 

 

—

 

 

 

876,584

 

•   Russell 10 to 15 Year STRIPS Fixed Income Fund

 

 

—

 

 

 

835,778

 

 

 

—

 

 

 

835,778

 

Total

 

$4,774,396

 

 

$56,062,246

 

 

$—

 

 

$60,836,643

 

 

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 RITC Russell Investments Russell 1000® Index Fund - Series I seeks to replicate the performance of the Russell 1000® Index as closely as possible before the deduction of Fund expenses. The Fund invests, through an underlying fund, primarily in stocks that closely match the composition of the Russell 1000® Index. The stocks in the index are highly diversified across industries and sectors. The Fund practices a passive investment approach and seeks to replicate the performance of the Russell 1000® Index.

 

 

(b)

The RITC Small Cap Fund seeks to provide long-term capital appreciation. It aims to outperform the Russell 2000® Index while managing volatility and maintaining diversification similar to the Index over a full market cycle. The Fund invests primarily in common stocks of U.S. small capitalization companies. Advisors in the Fund use a wide range of criteria and disciplines, focusing on factors such as: undervalued or under-researched companies, special situations, emerging growth, asset plays and turnarounds.

 

 

(c)

The RITC International Fund seeks to provide long-term growth of capital. It aims to outperform the MSCI World ex USA Index Net (the “Index”) while managing volatility and maintaining diversification similar to the index over a full market cycle. The Fund invests primarily in equity securities issued by Non-U.S. companies and in depositary receipts and other derivatives representing economic ownership of securities of non-U.S. companies. Seeks to invest in most of the developed nations of the world to maintain a high degree of diversification among countries and currencies. Employs multiple managers with distinct investment styles (growth, market-oriented and value), which are intended to be complementary.

 

 

(d)

The RITC Emerging Markets Fund seeks to provide the potential for long-term growth of capital. It aims to outperform the MSCI Emerging Markets Index Net over a full market cycle. The Fund Invests in equity securities of companies located in, or are economically tied to, emerging market countries. Securities are denominated principally in foreign currencies and are typically held outside the U.S. The Fund employs a multi-style (growth, market-oriented and value) and multi-manager approach whereby portions of the fund are allocated to different money managers who employ distinct styles.

 

 

(e)

The RITC World Equity Fund seeks to provide long-term capital appreciation. It aims to outperform the MSCI World Net Dividend Index over a full market cycle. The Fund employs specialist global equity advisors using global stock and sector selection strategies. Advisors invest across the world, without being limited by national borders or to specific regions, and typically take more aggressive positions on stocks and sectors and the extended equity markets. Their cross-border approach offers a different, complementary source of excess returns to Russell Investments' U.S. and International funds.

 

 

(f)

The RITC Global Real Estate Securities Fund seeks to provide current income and long-term capital growth. It strives to outperform the FTSE EPRA NAREIT Developed Index Net TRI with above-average consistency over a full market cycle. The Fund invests principally in equity securities of real estate companies, primarily in real estate investment trusts (REITs), other property trusts and real estate-related companies listed on global stock exchanges, predominantly in North America, Europe, Asia, and Australia. It employs a multi-manager approach whereby portions of the fund are allocated to different money managers whose approaches are intended to complement one another.

 

 

(g)

The RITC Global Listed Infrastructure Fund seeks to provide the potential for excess return streams, stable income potential, and a possible hedge against inflation. It seeks to outperform the S&P Infrastructure Index over a full market cycle. The Fund invests in a diversified portfolio of listed companies that provide services essential for a functioning modern economy, including roads, utilities, hospitals, schools, and airports. Employs multiple managers with complementary strategies with each manager expected to take an active management approach with a ’pure play’ bias - meaning they select companies with assets that tend to be monopolistic, highly regulated, long-lived, with steady cash flows.

 

 

(h)

The RIIFL High Yield Bond Fund seeks to provide current income and capital appreciation. It aims to outperform the ICE BofA Developed Markets High Yield Constrained Index (USD-hedged) over an interest rate cycle. The Fund invests primarily in non-investment grade, high yielding fixed income securities issued by companies from around the globe. These securities are commonly referred to as "junk bonds." A majority of the Fund's holdings are U.S. dollar denominated.

 

 

(i)

The RITC Commodities Fund is designed to provide the potential for long-term growth of capital and income. It seeks to outperform the Bloomberg Commodity Index Total Return with above-average consistency over a full market cycle. The Fund invests in commodity index-linked securities, other commodity-linked securities, derivative instruments, cash, and fixed income securities that together are intended to provide exposure to the performance of the collateralized commodity futures market. Combines strategies with different payoffs over different phases of an economic and stock market cycle. Multiple advisors, funds and strategies are employed to reduce style or strategy concentration risk.

 

 

(j)

 

The Global Private Credit Fund seeks to outperform the public credit markets in the long term, in an effort to provide further diversification of income streams for income-focused investors, through directly investments in a diversified portfolio of private markets funds and separately managed accounts. The Fund is expected to target investment opportunities in private debt and related investments and to focus on opportunities are secured by cash flows as well as hard assets, which may also include equity and/or equity related securities in associated transactions.

(k)

The RITC Multi-Manager Bond Fund is designed to provide current income, and as a secondary objective, capital appreciation through a variety of diversified strategies. It seeks to outperform the Bloomberg U.S. Aggregate Bond Index† over an interest rate cycle. The Fund employs multiple advisors with distinct but complementary investment styles that generally have similar universes of investable securities, but different sectors of specialization and expertise and utilize varied methods of identifying value in intermediate duration fixed income markets.

 

 

(l)

 

The RITC 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.

 

 

(m)

The RITC 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 10–15 year, 15-20 year or 25+ 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.

 

The investment portfolio contains a diversified blend of common stocks, bonds, cash equivalents, and other investments, which may reflect varying rates of return. The investments are further diversified within each asset classification. The portfolio diversification provides protection against a single security or class of securities having a disproportionate impact on aggregate performance. The Company has elected to change its investment strategy to better match the assets with the underlying plan liabilities. Currently, the long-term target allocations for plan assets are 50% in equities and 50% in fixed income although the actual plan asset allocations may be within a range around these targets. The actual asset allocations are reviewed and rebalanced on a periodic basis to maintain the target allocations. It is expected that, as the funded status of the plans improves, more assets will be invested in long-duration fixed income instruments.

 

The plans’ assets include 217,018 shares of the common stock of the Company having a market value of $5,759,658 and $4,774,396 on December 28, 2024 and December 30, 2023, respectively. No shares were purchased in 2024 or 2023 nor were any shares sold in either period. Dividends received during 2024 and 2023 on the common stock of the Company were $95,488 and $95,488, respectively.

 

U.S. salaried and non-union hourly employees are covered by defined contribution plans.

The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code covering substantially all U.S. non-union employees. This plan allows participants to make voluntary contributions of up to 100% of their annual compensation on a pretax basis, subject to IRS limitations. The plan provides for contributions by the Company at its discretion.

 

The Eastern Company Savings and Investment Plan as amended effective April 1, 2023 (“401(k) Plan Amendment”) provides for a match of 50% of the first 6% of employee contributions. The 401(k) Plan Amendment also provides for an additional non-discretionary contribution (the “transitional credit”) for certain non-union U.S. employees. The amount of this non-discretionary contribution ranges from 0% to 4% of wages, based on the age of the individual on June 1, 2016. The 401(k) Plan Amendment provides a non-discretionary safe harbor contribution of 3%. All non-union U.S. employees are eligible to join the plan.

 

The Company made contributions to the plan as follows:

 

 

 

2024

 

 

2023

 

Regular matching contributions

 

$1,068,843

 

 

$990,993

 

Transitional credit contributions

 

 

91,945

 

 

 

105,880

 

Non-discretionary contributions

 

 

376,962

 

 

 

682,154

 

Total contributions made for the period

 

$1,537,750

 

 

$1,779,027

 

 

The non-discretionary contribution of $328,953 made in the twelve months ended December 30, 2023 was accrued for and expensed in the prior fiscal year.

 

Effective January 1, 2023, the non-discretionary contributions are being contributed on a weekly basis.