PENSION PLAN

12 Months Ended

Dec. 31, 2024

PENSION PLAN [Abstract]

PENSION PLAN

13. PENSION PLAN

The Company sponsors a noncontributory defined benefit pension plan covering substantially all of the Company’s union employees. Benefits are provided based on employees’ years of service and earnings. This plan was frozen on December 31, 1994 for non-union employees.

The Company has terminated its defined benefit pension plan as of December 31, 2024. In connection with this termination, the Company is expecting to offer plan participants a choice between a lump sum payment and the continuation of their benefits through an annuity contract with a third-party insurance provider. The termination is not expected to have a material impact on the Company’s financial condition or results of operations in 2024, but the final settlement accounting will be recorded during the year ended December 31, 2025.

The following table sets forth the plan’s funded status and amounts recognized in the Consolidated Financial Statements:

	Year Ended December 31,
	2024			2023
CHANGES IN BENEFIT OBLIGATIONS:
Benefit obligation-beginning of year	$	16,621		$	17,113
Interest cost		758			792
Actuarial (gain) loss		(550	)		4
Benefits paid		(1,264	)		(1,288	)
Benefit obligation at end of year		15,565			16,621
CHANGE IN PLAN ASSETS:
Fair value of plan assets-beginning of year		17,380			16,445
Actual return on plan assets		1,010			2,223
Benefits paid		(1,271	)		(1,288	)
Fair value of plan assets-end of year		17,119			17,380
FAIR VALUE IN EXCESS OF BENEFIT OBLIGATION FUNDED STATUS:	$	1,554		$	759

For the fiscal year ended December 31, 2024, the actuarial loss of zero was due to the decrease in the discount rate from 4.90% to 4.71%.

Amounts recognized in the Consolidated Balance Sheets consist of:

	At December 31,
	2024		2023
Noncurrent assets	$	1,554	$	759

Amounts recognized in accumulated other comprehensive income (loss) consist of:

	Year Ended December 31,
	2024			2023			2022
Accumulated loss	$	(793	)	$	(1,219	)	$	(2,480	)
Deferred income taxes		1,067			1,183			1,520
Accumulated other comprehensive income (loss)	$	274		$	(36	)	$	(960	)

The accumulated benefit obligation was $15.5 million and $16.6 million at December 31, 2024 and 2023, respectively.

The following table provides the components of net periodic cost for the plan:

	Year Ended December 31,
	2024			2023			2022
COMPONENTS OF NET PERIODIC BENEFIT COST
Service cost	$	-		$	-		$	37
Interest cost		758			792			542
Expected return on plan assets		(1,127	)		(1,065	)		(1,217	)
Recognized net actuarial loss		-			106			81
Net periodic benefit income	$	(369	)	$	(167	)	$	(557	)

The estimated net income and prior service cost for the plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next year is zero.

The following tables present plan assets using the fair value hierarchy as of December 31, 2024 and 2023, respectively.  The fair value hierarchy has three levels based on the reliability of inputs used to determine fair value.  Level 1 refers to fair values determined based on quoted prices in active markets for identical assets.  Level 2 refers to fair values estimated using observable prices that are based on inputs not quoted in active markets but observable by market data, while Level 3 includes the fair values estimated using significant non-observable inputs.  The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Equity securities	$	-	$	-	$	-	$	-
Fixed income		16,050		-		-		16,050
International equities		-		-		-		-
Real estate		-		-		-		-
Cash and equivalents		1,069		-		-		1,069
Balance at December 31, 2024	$	17,119	$	-	$	-	$	17,119

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Equity securities	$	4,231	$	-	$	-	$	4,231
Fixed income		8,065		-		-		8,065
International equities		3,466		-		-		3,466
Real estate		1,062		-		-		1,062
Cash and equivalents		556		-		-		556
Balance at December 31, 2023	$	17,380	$	-	$	-	$	17,380

Fair value of total plan assets by major asset category as of December 31:

	2024		2023
Equity securities		0%		25%
Fixed income		94%		47%
International equities		0%		20%
Real estate		0%		6%
Cash and equivalents		6%		2%
Total		100%		100%

Weighted-average assumptions used to determine benefit obligations as of December 31:

	2024		2023		2022
Discount rate		5.30%		4.71%		4.90%
Rate of compensation increase		2.50%		2.50%		2.50%

Weighted-average assumptions used to determine net periodic pension cost for years ended December 31:

	2024		2023		2022
Discount rate		4.71%		4.71%		4.90%
Rate of compensation increase		2.50%		2.50%		2.50%
Long-term rate of return		6.75%		6.75%		6.75%

The Company has terminated its pension plan and has revised its strategy to adjust the allocation to a full liability investment strategy. The plan currently allocates all funds to fully fixed income investment and cash allocation, attempting to eliminate funding level fluctuations during the termination process.

The Company does not expect to make contributions to the plan in 2025.

The total amount of the Company’s contributions paid under its pension plan was zero for each of the fiscal years ended December 31, 2024 and 2023, and 2022, respectively.

Information about the expected benefit payments for the plan is as follows:

Year Ending December 31,
2025	$	4,087
2026		1,242
2027		1,210
2028		1,173
2029		1,135
Years 2030-2034		5,048

The Company has a 401(k) defined contribution plan for all eligible employees. Employees may contribute up to 75% of their compensation into the plan. The Company may contribute up to an additional 15% of the employee’s contributed amount up to 6% of compensation.  For each of the fiscal years ended December 31, 2024, 2023, and 2022, the Company’s expense for the 401(k) plan amounted to $0.8 million, $0.8 million, and $0.7 million, respectively.