Post-Retirement Health Care

12 Months Ended

Jan. 01, 2022

Retirement Benefits [Abstract]

Post-Retirement Health Care

Post-Retirement Health CareThe 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):

	2021		2020
Change in benefit obligation
Benefit obligation at beginning of year	$	23,403	$	21,818
Service cost	597		777
Interest cost	549		675
Benefits paid	(1,073)		(1,204)
Actuarial loss (gain)	(225)		1,337
Benefit obligation at end of year	$	23,251	$	23,403
Change in plan assets
Fair value at beginning of year	$	—	$	—
Actual return on assets	—		—
Employer contribution	1,073		1,204
Transferred out	—		—
Benefits paid	(1,073)		(1,204)
Fair value at end of year	$	—	$	—
Funded Status of Plan	$	(23,251)	$	(23,403)
Amounts recognized in the Statement of Financial Position consist of:
Current liabilities	$	1,128	$	1,039
Non-current liabilities	$	22,123	$	22,364
Amounts recognized in Accumulated Other Comprehensive Income (Loss) (before tax) consist of:
Actuarial loss	$	3,294	$	3,701
Change in Accumulated Other Comprehensive Income (Loss) (before tax):
Amount disclosed at beginning of year	$	3,701	$	2,384
Actuarial loss (gain)	(225)		1,337
Amortization of transition amount	(182)		(20)
Amount disclosed at end of year	$	3,294	$	3,701

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

Fiscal 2022	$	1,128
Fiscal 2023	$	1,119
Fiscal 2024	$	1,098
Fiscal 2025	$	1,118
Fiscal 2026	$	1,147
Fiscal 2027 - 2031	$	6,528

Expected contributions are as follows (in thousands):

Fiscal 2022 $ 1,128 

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:

	2021		2020		2019
Discount rate	2.8	%	2.4	%	3.2	%