PENSION VALUATION RESERVE

3 Months Ended

Apr. 30, 2012

PENSION VALUATION RESERVE [Text Block]

14. PENSION VALUATION RESERVE

The Pension Valuation Reserve represents the excess of additional minimum pension liability required under the provisions of ACS 715 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:

	Six Months		Ended
	4/30/12		4/30/11
Service cost	4,000		4,000
Interest cost	52,000		52,000
Expected return on plan assets	(56,000	)	(56,000	)
Amortization of prior service cost	0		0
Recognized net actuarial loss	60,000		60,000
Net periodic benefit cost	60,000		60,000

For the six months ended April 30, 2012, 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 2012 is approximately $182,000, all of which was contributed to the pension plan as of April 30, 2012.