Retirement Plans

3 Months Ended

Apr. 30, 2021

The Company and its subsidiaries cover certain employees under a noncontributory defined benefit retirement plan, entitled the Virco Employees’ Retirement Plan (the “Pension Plan”). As more fully described in the Form 10-K, benefit accruals under the Employees Retirement Plan were frozen effective December 31, 2003. There is no service cost incurred under this plan.

The Company also provides a supplementary retirement plan for certain key employees, the VIP Retirement Plan (the “VIP Plan”). As more fully described in the Annual Report on Form 10-K for the year ended January 31, 2021, benefit accruals under this plan were frozen since December 31, 2003. There is no service cost incurred under this plan.

The net periodic pension cost for the Pension Plan and the VIP Plan for the three months ended April 30, 2021 and 2020 were as follows:


	Combined Employee Retirement Plans
	Three Months Ended
	4/30/2021		4/30/2020
	(in thousands)
Service cost	$	—	$	—
Interest cost	281		301
Expected return on plan assets	(218)		(224)
Plan settlement	—		—
Amortization of prior service cost	—		—
Recognized net actuarial loss	443		465
Benefit cost	$	506	$	542

401(k) Retirement Plan

The Company’s retirement plan, which covers all U.S. employees, allows participants to defer from 1% to 75% of their eligible compensation through a 401(k)-retirement program. The plan includes Virco stock as one of the investment options. At April 30, 2021 and 2020, the plan held 970,632 shares and 763,586 shares of Virco stock, respectively. For the three months ended April 30, 2021 and 2020, the compensation costs incurred for employer match, which is paid in the form of Company stock, was $184,000 and $210,000, respectively.