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Note 7 - Pension, Postretirement and Postemployment Defined Benefit Plans
 6 Months Ended
Mar. 29, 2020
Pension Plan [Member]  
Notes to Financial Statements  
Retirement Benefits [Text Block]
7
PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS
 
We have several noncontributory defined benefit pension plans that together cover selected employees. Benefits under the plans were generally based on salary and years of service. With the exception of defined benefit plans acquired in the Transactions, effective in
2012,
substantially all benefits are frozen and only a small amount of additional benefits are being accrued. Our liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations. Plan funding strategies are influenced by government regulations. Plan assets consist primarily of domestic and foreign corporate equity securities, government and corporate bonds, hedge fund investments and cash.
 
We provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. The level and adjustment of participant contributions vary depending on the specific plan. In addition, St. Louis Post-Dispatch LLC, provides postemployment disability benefits to certain employee groups prior to retirement. Our liability and related expense for benefits under the postretirement plans are recorded over the service period of active employees based upon annual actuarial calculations. We accrue postemployment disability benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid.
 
As part of the Transactions, the Company assumed several non-contributory defined benefit pension plans that together cover selected employees. Benefits under the plans are generally based on salary and years of service. The liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations. Plan funding strategies are influenced by government regulations. Plan assets consist primarily of domestic corporate equity securities, government and corporate bonds, money markets and deposits with insurance companies. The amount of net pension obligations for those plans as of
March 16, 2020,
the initial measurement date, was
$43,503,000.
The total pension benefit recognized for the period between
March 16, 2020
and
March 29, 2020
was
$86,000.
 
Additionally, as part of the Transactions, the Company assumed certain unfunded postemployment benefit plans which provide coverage to retirees for portions of premiums associated with medical, dental, life, and vision insurance benefits in
eight
collective bargaining units. The amount of premiums paid in
five
bargaining units are capped at specific dollar amounts per month. The amount of premiums paid in
three
bargaining units are uncapped. The plan groups consist of capped retirees, uncapped retirees, capped active employees, and uncapped active employees. New participants in the uncapped plans are eligible for Medicare supplemental medical insurance. The total postemployment benefit obligation recognized for these plans as of
March 16, 2020,
the initial measurement date, was
$36,800,000.
The total postemployment benefit cost recognized for the period between
March 16, 2020
and
March 29, 2020
was
$79,000.
 
We use a fiscal year end measurement date for all of our pension and postretirement medical plan obligations.
 
The net periodic pension and postretirement cost (benefit) components for our plans are as follows:
 
PENSION PLANS
  
13 Weeks Ended
    
26 Weeks Ended
  
   
March 29,
    
March 31,
    
March 29,
    
March 31,
  
(Thousands of Dollars)
  
2020
    
2019
    
2020
    
2019
  
                         
Service cost for benefits earned during the period
  
103
    
9
    
111
    
18
  
Interest cost on projected benefit obligation
  
1,420
    
1,641
    
2,651
    
3,282
  
Expected return on plan assets
  
(2,321
 )  
(2,018
 )  
(4,272
 )  
(4,036
 )
Amortization of net loss
  
792
    
284
    
1584
    
568
  
Amortization of prior service benefit
  
(2
 )  
(25
 )  
(4
 )  
(50
 )
Pension benefit
  
(8
 )  
(109
 )  
70
    
(218
 )
 
POSTRETIREMENT MEDICAL PLANS
  
13 Weeks Ended
    
26 Weeks Ended
  
   
March 29,
    
March 31,
    
March 29,
    
March 31,
  
(Thousands of Dollars)
  
2020
    
2019
    
2020
    
2019
  
                         
Service cost for benefits earned during the period  
36
    
—
    
36
    
—
  
Interest cost on projected benefit obligation
  
110
    
103
    
177
    
206
  
Expected return on plan assets
  
(265
 )  
(270
 )  
(530
 )  
(540
 )
Amortization of net gain
  
(186
 )  
(244
 )  
(372
 )  
(488
 )
Amortization of prior service benefit
  
(161
 )  
(181
 )  
(322
 )  
(362
 )
Postretirement medical benefit
  
(466
 )  
(592
 )  
(1,011
 )  
(1,184
 )
 
In the 
26
weeks ended
March 29, 2020
we did
not
 contribute to our pension plans. Based on our forecast at
March 29, 2020
, we expected to make contributions of $
6,720,000
to our pension trust during the remainder of fiscal
2020.
However, the CARES Act allows the Company to defer pension contributions until
January 1, 2021.
As a result, we do
not
expect to make pension contributions for the remainder of fiscal
2020.