PENSION VALUATION RESERVE

3 Months Ended

Jul. 31, 2011

PENSION VALUATION RESERVE [Text Block]

15. PENSION VALUATION RESERVE

    The Pension Valuation Reserve represents the excess of additional minimum pension liability required under the provisions of Statement of Financial Accounting Standards (“SFAS”) No. 87 amended by SFAS 158 over the unrecognized prior service costs of former stockyard employees. Such excess arose due to the decline in the market value of pension assets available for pension benefits of former employees, which benefits were frozen at the time the stockyard operations were sold in 1989. The additional minimum pension liability will be expensed as actuarial computations of annual pension cost recognize the deficiency that exists.

    The components of net periodic benefit cost are as follows:

	Nine Months Ended
	7/31/11		7/31/10
Service cost	6,000		6,000
Interest cost	78,000		78,000
Expected return on plan assets	(84,000	)	(84,000	)
Amortization of prior service cost	0		0
Recognized net actuarial loss	90,000		90,000
Net periodic benefit cost	90,000		90,000

    For the nine months ended July 31, 2011, amounts have been estimated, actual amounts will be based on the discount rate and assets available at year end.

    The Company’s required contribution to its pension plan for fiscal 2011 is approximately $172,000. A contribution of $155,000 has been made to date and the Company expects to make the full required contribution before the end of the fiscal year.