The Company maintains a pension plan (the “Plan”) for its Swiss employees, which is administered by an independent pension fund. The Plan is mandated by Swiss law and meets the criteria for a defined benefit plan under ASC 715, Compensation—Retirement Benefits (“ASC 715”), since participants of the Plan are entitled to a defined rate of return on contributions made. The independent pension fund is a multi-employer plan with unrestricted joint liability for all participating companies for which the Plan’s overfunding or underfunding is allocated to each participating company based on an allocation key determined by the Plan.

The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan.

In fiscal 2021, the independent pension fund changed the conversion rate for accumulated retirement savings leading to a Plan amendment. The Company’s results contain the effects of this change in conversion rates by the independent pension fund as prior service costs. These prior service costs are amortized from AOCI to net periodic benefit costs over approximately nine years.

At July 2, 2021, the accumulated benefit obligation of the Plan equals the fair value of the Plan's assets. The Plan's funded status at July 2, 2021 and July 3, 2020 was a net liability of $9,807 and $11,877, respectively, which is recorded in other non-current liabilities on the Consolidated Balance Sheets. The Company recorded a net gain of $3,285 and a net loss of $1,768 in AOCI during the fiscal years ended July 2, 2021 and July 3, 2020, respectively. Total employer contributions to the Plan were $1,080 during the year ended July 2, 2021, and the Company's total expected employer contributions to the Plan during fiscal 2022 are $1,165.

The following table reflects the total pension benefits expected to be paid from the Plan, which is funded from contributions by participants and the Company.

The following table outlines the components of net periodic benefit cost of the Plan for the fiscal years ended July 2, 2021 and July 3, 2020:


	Fiscal Years Ended
	July 2, 2021		July 3, 2020
Service cost	$	1,708	$	1,375
Interest cost	92		125
Expected return on assets	(277)		(233)
Amortization of prior service cost	(64)		(63)
Amortization net of loss	185		33
Settlement loss recognized	318		—
Net periodic benefit cost	$	1,962	$	1,237

The following table reflects the related actuarial assumptions used to determine net periodic benefit cost of the Plan for the fiscal years ended July 2, 2021 and July 3, 2020:


	Fiscal Years Ended
	July 2, 2021		July 3, 2020
Discount rate	0.30	%	0.30	%
Expected rate of return on Plan assets	1.50	%	1.50	%
Expected inflation	1.00	%	1.00	%
Rate of compensation increases	1.50	%	1.50	%

The calculation of the projected benefit obligation (“PBO”) utilized BVG 2020 Generational data for assumptions related to the mortality rates, disability rates, turnover rates, and early retirement ages.

The PBO represents the present value of Plan benefits earned through the end of the year, with an allowance for future salary and pension increases as well as turnover rates. The following table presents the change in projected benefit obligation for the periods presented:


	Fiscal Years Ended
	July 2, 2021		July 3, 2020
Projected benefit obligation, beginning	$	29,955	$	24,274
Service cost	1,708		1,375
Interest cost	92		125

Employee contributions	2,145		1,916
Actuarial (gain) loss	(1,345)		2,387
Benefits paid	(256)		(906)
Plan amendment	(1,247)		—
Settlements	(3,129)		—
Foreign exchange loss	691		784
Projected benefit obligation at end of year	$	28,614	$	29,955


	Fiscal Years Ended
	July 2, 2021		July 3, 2020
Fair value of Plan assets, beginning	$	18,078	$	15,088
Actual return on Plan assets	474		582
Company contributions	1,080		911

Employee contributions	2,145		1,916
Benefits paid	(256)		(906)
Settlements	(3,129)		—
Foreign exchange gain	415		487
Fair value of Plan assets at end of year	$	18,807	$	18,078


	As of
	July 2, 2021		July 3, 2020
Projected benefit obligation at end of year	$	28,614	$	29,955
Fair value of plan assets at end of year	18,807		18,078
Funded status	$	(9,807)	$	(11,877)

The fair value of Plan assets were $18,807 at July 2, 2021. The Plan is denominated in a foreign currency, the Swiss Franc, which can have an impact on the fair value of Plan assets. The Plan was not subject to material fluctuations during the years ended July 2, 2021 or July 3, 2020. The Plan’s assets are administered by an independent pension fund foundation (the “foundation”). As of July 2, 2021, the foundation has invested the assets of the Plan in various investments vehicles, including cash, real estate, equity securities, and bonds. The investments are measured at fair value using a mix of Level 1, Level 2 and Level 3 inputs.

The Company maintains a qualified 401(k) plan (the “401(k) Plan”) for its U.S. employees. During fiscal years 2021, 2020 and 2019, the Company matched employee contributions up to 3% of eligible compensation. The Company may also make optional contributions to the plan for any plan year at its discretion. Expense recognized by the Company for matching contributions related to the 401(k) plan was $7,876, $5,954, and $4,525 during the fiscal years ended July 2, 2021, July 3, 2020, and June 30, 2019, respectively.