Pension and Retirement Plans

9 Months Ended

Jun. 30, 2022

Pension and Retirement Plans

Pension and Retirement Plans

11.          Pension and Retirement Plans

The Company’s operations have defined benefit and defined contribution plans in the U.K. and in the U.S. In the U.K., the Company provides defined benefit pension plans and defined contribution plans for some of its employees. In the U.S., the Company provides benefits through supplemental retirement plans to certain former employees. The U.S. supplemental retirement plans have life insurance policies which are not plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. A gain on a life insurance policy of $0.1 million occurred during the second quarter of fiscal year 2022. The gain on this life insurance policy was not related to a current employee at time of expiration. The Company received $322 thousand from the life insurance policy during Q3 of fiscal year 2022. Additionally, during

the fiscal third quarter management made the decision to pay back approximately $0.9 million of insurance policy loans. The Company also provides for officer death benefits through post-retirement plans to certain current officers of the Company in the U.S. All the Company’s defined benefit plans are closed to newly hired employees and have been since September 2009.

The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the condensed consolidated balance sheets.

The Company’s pension plan in the U.K. is the only plan with plan assets. The plan assets consist of an investment in a commingled fund which in turn comprises a diversified mix of assets including corporate equity securities, government securities and corporate debt securities.

The components of net periodic benefit costs related to the U.S. and U.K. plans are as follows:

	Three Months Ended June 30,
	2022						2021
	U.K.		U.S.		Total		U.K.		U.S.		Total
	(Amounts in thousands)
Pension:
Interest cost	$	68	$	2	$	70	$	63	$	3	$	66
Expected return on plan assets		(118)		—		(118)		(103)		—		(103)
Amortization of past service costs		2		—		2		2		—		2
Amortization of net loss		24		—		24		47		1		48
Net periodic (benefit) cost	$	(24)	$	2	$	(22)	$	9	$	4	$	13
Post Retirement:
Service cost	$	—	$	9	$	9	$	—	$	8	$	8
Interest cost		—		12		12		—		13		13
Amortization of net gain		—		(10)		(10)		—		(39)		(39)
Net periodic cost (benefit)	$	—	$	11	$	11	$	—	$	(18)	$	(18)

	Nine Months Ended June 30,
	2022						2021
	U.K.		U.S.		Total		U.K.		U.S.		Total
	(Amounts in thousands)
Pension:
Interest cost	$	206	$	7	$	213	$	182	$	8	$	190
Expected return on plan assets		(354)		—		(354)		(299)		—		(299)
Amortization of past service costs		6		—		6		6		—		6
Amortization of net loss		73		1		74		136		3		139
Net periodic (benefit) cost	$	(69)	$	8	$	(61)	$	25	$	11	$	36
Post Retirement:
Service cost	$	—	$	31	$	31	$	—	$	31	$	31
Interest cost		—		35		35		—		35		35
Amortization of net gain		—		(14)		(14)		—		(14)		(14)
Net periodic cost	$	—	$	52	$	52	$	—	$	52	$	52

The fair value of the assets held by the U.K. pension plan by asset category are as follows:

	Fair Values as of
	June 30, 2022								September 30, 2021
	Fair Value Measurements Using Inputs Considered as								Fair Value Measurements Using Inputs Considered as
Asset Category	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(Amounts in thousands)
Cash on deposit	$	146	$	146	$	—	$	—	$	93	$	93	$	—	$	—
Pooled funds		9,916		9,916		—		—		11,828		11,828		—		—
Total plan assets	$	10,062	$	10,062	$	—	$	—	$	11,921	$	11,921	$	—	$	—