Post-Retirement Health Care

12 Months Ended

Dec. 28, 2019

The Corporation offers a fixed subsidy to certain retirees who choose to participate in a third party insurance plan selected by the Corporation. Guidance on employers’ accounting for other post-retirement plans requires recognition of the overfunded or underfunded status on the balance sheet. Under this guidance, gains and losses, prior service costs and credits, and any remaining transition amounts under previous guidance not yet recognized through net periodic benefit cost are recognized in accumulated other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost. Also, the measurement date – the date at which the benefit obligation and plan assets are measured – is required to be the Corporation’s fiscal year-end.

The following table sets forth the activity and reporting location of the benefit obligation and plan assets (in thousands):



	2019			2018
Change in benefit obligation
Benefit obligation at beginning of year	$	19,552		$	22,933
Service cost	680			853
Interest cost	795			789
Benefits paid	(1,607		)	(1,570		)
Actuarial (gain) loss	2,398			(3,453		)
Benefit obligation at end of year	$	21,818		$	19,552
Change in plan assets
Fair value at beginning of year	$	—		$	—
Actual return on assets	—			—
Employer contribution	1,607			1,570
Transferred out	—			—
Benefits paid	(1,607		)	(1,570		)
Fair value at end of year	$	—		$	—
Funded Status of Plan	$	(21,818	)	$	(19,552	)

Amounts recognized in the Statement of Financial Position consist of:
Current liabilities	$	1,081		$	1,057
Non-current liabilities	$	20,737		$	18,495

Amounts recognized in Accumulated Other Comprehensive Income (Loss) (before tax) consist of:
Actuarial (gain) loss	$	2,384		$	(14	)

Change in Accumulated Other Comprehensive Income (before tax):
Amount disclosed at beginning of year	$	(14	)	$	3,565
Actuarial (gain) loss	2,398			(3,453		)
Amortization of transition amount	—			(126		)
Amount disclosed at end of year	$	2,384		$	(14	)

Estimated future benefit payments are as follows (in thousands):



Fiscal 2020	$	1,081
Fiscal 2021	$	1,069
Fiscal 2022	$	1,069
Fiscal 2023	$	1,083
Fiscal 2024	$	1,098
Fiscal 2025 – 2029	$	5,933

Expected contributions are as follows (in thousands):



Fiscal 2020	$	1,081

The discount rate is set at the measurement date to reflect the yield of a portfolio of high quality, fixed income debt instruments. The discount rate used was as follows:



	2019		2018		2017
Discount rate	3.2	%	4.2	%	3.5	%

The Corporation's payment for these benefits is a fixed subsidy per the plan; therefore, healthcare trend rates have no impact on the Corporation’s cost. There were no funds designated as plan assets. A discount rate of 3.2 percent was used to determine net periodic benefit costs for 2020. The following table sets forth the components of net periodic benefit costs (in thousands):



	2020
Service cost	$	777
Interest cost	675
Amortization of net (gain) loss	20
Net periodic post-retirement benefit cost	$	1,472