PENSION AND OTHER POSTRETIREMENT PLANS (Tables)

12 Months Ended

Sep. 30, 2021

Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans

The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans as of the Company's actuarial valuation as of September 30, 2021 and 2020:


	Pension				Other Postretirement
	2021		2020		2021		2020
Change in benefit obligation:
Benefit obligation, beginning of year	$	318,887	$	289,957	$	19,431	$	20,952

Service cost	7,919		8,679		201		227
Interest cost	6,145		7,735		376		501
Actuarial (gain) loss	(8,045)		23,827		(660)		(1,402)
Curtailment gain	(17,324)		—		—		—
Special termination benefits	315		—		—		—
Exchange (gain) loss	(133)		799		—		—
Benefit payments	(13,838)		(12,110)		(507)		(847)
Benefit obligation, end of year (1)	293,926		318,887		18,841		19,431

Change in plan assets:
Fair value, beginning of year (2)	168,134		155,313		—		—

Actual return	37,789		8,705		—		—
Benefit payments	(13,838)		(12,110)		(507)		(847)
Employer contributions	16,259		16,226		507		847
Fair value, end of year (2)	208,344		168,134		—		—

Funded status (2)	(85,582)		(150,753)		(18,841)		(19,431)
Unrecognized actuarial loss	49,545		110,971		16		676
Unrecognized prior service (credit) cost	(309)		343		(1,684)		(2,048)
Net amount recognized	$	(36,346)	$	(39,439)	$	(20,509)	$	(20,803)

Amounts recognized in the consolidated balance sheet:
Current liability	$	(779)	$	(905)	$	(883)	$	(831)
Noncurrent benefit liability	(84,803)		(149,848)		(17,958)		(18,600)
Accumulated other comprehensive loss (income)	49,236		111,314		(1,668)		(1,372)
Net amount recognized	$	(36,346)	$	(39,439)	$	(20,509)	$	(20,803)

Amounts recognized in accumulated
other comprehensive loss (income):
Net actuarial loss	$	49,545	$	110,971	$	16	$	676
Prior service (credit) cost	(309)		343		(1,684)		(2,048)
Net amount recognized	$	49,236	$	111,314	$	(1,668)	$	(1,372)

(1) Gains and losses related to changes in assumptions (e.g., discount rate, mortality, etc.), asset, salary and other experience, and curtailments impacted benefit obligations.

(2) The fair value of plan assets and funded status do not include the value of investments and restricted cash held in trust for the Company's non-qualified SERP. The combined value of these investments and restricted cash totaled $26,103 and $24,610 as of September 30, 2021 and 2020, respectively. Refer to Note 7, "Investments" for further details.

Net Periodic Pension and Other Postretirement Benefit Cost

Net periodic pension and other postretirement benefit cost for the plans included the following:


	Pension						Other Postretirement
	2021		2020		2019		2021		2020		2019
Service cost	$	7,919	$	8,679	$	7,998	$	201	$	227	$	244
Interest cost *	6,145		7,735		9,202		376		501		718
Expected return on plan assets *	(10,809)		(10,214)		(10,304)		—		—		—
Amortization:
Prior service cost	(127)		(186)		(186)		(364)		(464)		(195)
Net actuarial loss *	9,769		9,767		4,245		—		—		(59)
Curtailment gain *	(220)		—		—		—		—		—
Special termination benefits *	315		—		—		—		—		—
Prior-service cost write-offs *	261		—		—		—		—		—
Net benefit cost	$	13,253	$	15,781	$	10,955	$	213	$	264	$	708

* Non-service components of pension and postretirement expense are included in other income (deductions), net.

Contributions During Fiscal Year

Contributions made in fiscal 2021 are as follows:


Contributions	Pension		Other Postretirement
Principal defined benefit retirement plan	$	15,000	$	—
Supplemental retirement plan	806		—
Other retirement plans	453		—
Other postretirement plan	—		507

Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans

The weighted-average assumptions for those plans were:


	Pension						Other Postretirement
	2021		2020		2019		2021		2020		2019
Discount rate	2.79	%	2.62	%	3.13	%	2.83	%	2.63	%	3.10	%
Return on plan assets	3.10	%	6.75	%	6.75	%	—		—		—
Compensation increase	3.50	%	3.50	%	3.50	%	—		—		—

Weighted Average Asset Allocation and Target Allocation

The Company's defined benefit pension plans' weighted-average asset allocation at September 30, 2021 and 2020 and weighted-average target allocation were as follows:


	Plan Assets at				Target
Asset Category	2021		2020		Allocation*
Equity securities	$	4,075	$	118,677	—	%
Fixed income, cash and cash equivalents	189,958		34,184		100	%
Other investments	14,311		15,273		—	%
	$	208,344	$	168,134	100	%
* Target allocation relates to the Company's DB Plan as of September 30, 2021. During fiscal 2021, the investment policy for the Company's DB Plan was updated to establish modified asset allocation targets. The updated investment objective is intended to reduce risk assets in favor of fixed income investments as a result of the planned termination and expected settlement of the DB Plan in fiscal 2022.

Fair Value Allocation of Plan Assets

The Company's defined benefit pension plans' asset categories at September 30, 2021 and 2020 were as follows:


	September 30, 2021
Asset Category	Level 1		Level 2		Level 3		Total
Equity securities - stocks (1)	$	4,075	$	—	$	—	$	4,075
Fixed income securities	10,403		101,133		—		111,536
Cash and cash equivalents	78,422		—		—		78,422
Other investments	—		—		14,311		14,311
Total	$	92,900	$	101,133	$	14,311	$	208,344
(1) Includes $4,075 of of Matthews Class A Common Stock in Level 1.


	September 30, 2020
Asset Category	Level 1		Level 2		Level 3		Total
Equity securities - stocks (1)	$	37,089	$	—	$	—	$	37,089
Equity securities - mutual funds	81,588		—		—		81,588
Fixed income securities	11,738		20,086		—		31,824
Cash and cash equivalents	2,360		—		—		2,360
Other investments	—		—		15,273		15,273
Total	$	132,775	$	20,086	$	15,273	$	168,134
(1) Includes $14,936 of of Matthews Class A Common Stock in Level 1.

Changes in Fair Value of Level 3 Plan Assets

Changes in the fair value of Level 3 assets at September 30, 2021 and 2020 are summarized as follows:


Asset Category	Fair Value, Beginning of Period		Acquisitions		Dispositions		Realized Gains		Unrealized Gains (Losses)		Fair Value, End of Period
Other investments:
Fiscal Year Ended:
September 30, 2021	$	15,273	$	236	$	(2,144)	$	272	$	674	$	14,311
September 30, 2020	10,860		10,835		(6,326)		220		(316)		15,273

Benefit Payments Expected to be Paid

Benefit payments expected to be paid are as follows:


Years ending September 30:	Pension Benefits *		Other Postretirement Benefits

2022	$	12,152	$	884
2023	35,644		906
2024	12,609		924
2025	12,673		937
2026	13,057		940
2027-2031	67,218		4,546
	$	153,353	$	9,137

* Pension benefit amounts do not reflect the planned termination and expected settlement of the DB Plan in fiscal 2022 (see above for further details).