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Employee Benefits
 12 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
Employee Benefits
Note 15: Employee Benefits
The Company sponsors a noncontributory postretirement health benefit plan (postretirement plan). The postretirement plan provides medical coverage benefits for former employees and their spouses upon retirement. The postretirement plan has no assets to offset the future liabilities incurred under the postretirement plan. The Company’s funding policy is to make the minimum annual contribution that is required by applicable regulations, plus such amounts as the Company may determine to be appropriate from time to time. The Company expects to contribute $154,000 to the plan in fiscal year 2022.
 
The Company uses a June 30 measurement date for the plan. Information about the plan’s funded status and pension cost follows:
 
   
2021
   
2020
 
Change in benefit obligation
          
Beginning of year
  $3,306   $2,919 
Service cost
   56    53 
Interest cost
   75    93 
Actuarial gain (loss)
   (268)    355 
Benefits paid
   (104)    (114) 
   
 
 
   
 
 
 
End of year
  $3,065   $3,306 
   
 
 
   
 
 
 
Significant balances, costs and assumptions are:
 
   
Postretirement Plan
 
   
2021
   
2020
 
Benefit obligation
  $3,065   $3,306 
Fair value of plan assets
   —      —   
   
 
 
   
 
 
 
Funded status
  $(3,065)   $(3,306) 
   
 
 
   
 
 
 
Accumulated benefit obligation
  $3,065   $3,306 
   
 
 
   
 
 
 
Amounts recognized in the consolidated balance sheets:
 
Accrued postretirement benefit obligation
  $3,065   $3,306 
   
 
 
   
 
 
 
Components of net periodic benefit cost:
 
   
2021
   
2020
 
Service cost
  $56   $53 
Interest cost
   75    93 
Amortization of (Gain) or Loss
   60    25 
   
 
 
   
 
 
 
   $191   $171 
   
 
 
   
 
 
 
 
Amounts recognized in accumulated other comprehensive income not yet recognized as components of net periodic benefit cost consist of:
 
   
2021
   
2020
 
Net loss
  $532   $860 
Other significant balances and costs are:
 
   
2021
   
2020
 
Employer contribution
  $104   $114 
Benefits paid
   104    114 
Benefit costs
   191    171 
Other changes in plan assets and benefit obligations recognized in other comprehensive income are described in Note 12.
The estimated net loss, prior service cost and transition obligation for the postretirement plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost of the next fiscal year are $26,000, $0, and $0, respectively.
Discount rates of 2.65% and 2.32% were used for 2021 and 2020, respectively,
to determine the benefit obligations, and 2.32% and 3.25%, respectively, for benefit costs.
Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A
one-percentage-point
change in assumed health care cost trend rates would have the following effects:
 
   
One-
Percentage-

Point
Increase
   
One-
Percentage-

Point
Decrease
 
Effect on total of service and interest cost components
  $4   $(4) 
Effect on postretirement benefit obligation
   47    (51) 
For measurement purposes, 9.0%, 8.5% and 8.5% annual rates of increase in the per capita cost of covered health care benefits were assumed for 2021, 2022 and 2023, respectively. The rate was assumed to decrease gradually to 5.0% by the year 2032 and remain at that level thereafter.
 
The following postretirement plan benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of June 30, 2021:
 
2022
  $135 
2023
   155 
2024
   172 
2025
   174 
2026
   193 
2027-2031
   972 
The Company has a 401(k) plan covering substantially all employees. The Company matches 25% of the first 5% of compensation that a participant defers. Employer contributions charged to expense for 2021 and 2020 were $88,000 and $81,000, respectively. The plan also includes an Employer Profit Sharing contribution which allows all eligible participants to receive at least 5% of their Plan year salary. The Company’s contributions for the plan years ended June 30, 2021 and 2020 were $650,000 and $602,000, respectively.
The Company has deferred compensation agreements for directors, which provides benefits payable upon normal retirement age of 72. The present value of the estimated liability under the agreement is being accrued using a discount rate of 6 percent. The deferred compensation charged to expense totaled $251,000 and $249,000 for the years ended June 30, 2021 and 2020, respectively. The agreements’ accrued liability of $1.8 million and $1.6 million as of June 30, 2021 and 2020, respectively, is included in other liabilities in the consolidated balance sheets. The following benefit payments are expected to be paid for these agreements:
 
2022
  $121 
2023
   136 
2024
   137 
2025
   137 
2026
   227 
Thereafter
   3,360 
   
 
 
 
   $4,118