RETIREMENT PLANS

3 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

RETIREMENT PLANS

RETIREMENT PLANS

Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees. Additionally, Barnwell sponsors a Supplemental Executive Retirement Plan (“SERP”), a noncontributory supplemental retirement benefit plan which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan, and a postretirement medical insurance benefits plan (“Postretirement Medical”) covering eligible U.S. employees.

In December 2019, the Company’s Board of Directors approved a resolution to freeze all future benefit accruals for all participants under the Company’s Pension Plan and SERP effective December 31, 2019. Consequently, current participants in the Pension Plan and SERP no longer accrue new benefits under the plans and new employees of the Company are no longer eligible to enter the Pension Plan and

SERP as participants after December 31, 2019. The freezing of the Pension Plan and SERP triggered a curtailment which required a remeasurement of the projected benefit obligations of the Pension Plan and SERP and resulted in an $880,000 actuarial gain in accumulated other comprehensive loss and a $1,699,000 reduction in unrecognized pension benefit costs that were previously included in accumulated other comprehensive loss, with a corresponding benefit in other comprehensive income which were recorded in the quarter ended December 31, 2019.

The following table details the components of net periodic benefit income (cost) for Barnwell’s retirement plans:

	Pension Plan				SERP				Postretirement Medical
	Three months ended December 31,
	2020		2019		2020		2019		2020		2019
Service cost	$	—	$	50,000	$	—	$	3,000	$	—	$	—
Interest cost	65,000		83,000		13,000		18,000		18,000		20,000
Expected return on plan assets	(137,000)		(163,000)		—		—		—		—
Amortization of prior service cost (credit)	—		1,000		—		(1,000)		—		—
Amortization of net actuarial loss	10,000		35,000		—		5,000		23,000		20,000
Curtailment cost (income)	—		53,000		—		(53,000)		—		—
Net periodic benefit (income) cost	$	(62,000)	$	59,000	$	13,000	$	(28,000)	$	41,000	$	40,000

The net periodic benefit (income) cost, including service cost, is included in “General and administrative” expenses in the Company's Condensed Consolidated Statements of Operations.

Currently, no contributions are expected to be made to the Pension Plan during fiscal 2021. The SERP and Postretirement Medical plans are unfunded, and Barnwell funds benefits when payments are made. Expected payments under the Postretirement Medical plan and the SERP for fiscal 2021 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods.