Note 6 - Accrued Retirement Benefits

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Retirement Benefits [Text Block]

6. ACCRUED RETIREMENT BENEFITS

Accrued Retirement Benefits at

December 31, 2020

and

2019

consisted of the following:

	2020			2019
	(in thousands)
Defined benefit pension plans	$	8,790		$	7,658
Non-qualified retirement plans		2,301			2,209
Total		11,091			9,867
Less current portion		(165	)		(165	)
Non-current portion of accrued retirement benefits	$	10,926		$	9,702

The Company had

two

defined benefit pension plans which covered substantially all of its former bargaining and non-bargaining full-time, part-time and intermittent employees. In

2011,

pension benefits under both plans were frozen. The Company merged the

two

defined benefit pension plans to streamline the administration of the frozen plan in

2018.

The Company also has unfunded non-qualified retirement plans covering

nine

of its former employees. The non-qualified retirement plans were frozen in

2009

and future vesting of additional benefits was discontinued.

The measurement date for the Company's benefit plan disclosures is

December 

31st

 of each year. The changes in benefit obligations and plan assets for

2020

and

2019,

and the funded status of the plans and assumptions used to determine benefit information at

December 31, 2020

and

2019

were as follows:

	2020					2019
	(in thousands)
Change in benefit obligations:
Benefit obligations at beginning of year	$	54,128				$			51,306
Interest cost		1,633							2,096
Actuarial loss		3,588							4,706
Benefits paid		(4,694			)				(3,980	)
Benefit obligations at end of year		54,655							54,128
Change in plan assets:
Fair value of plan assets at beginning of year		44,284							41,290
Actual return on plan assets		3,869							6,814
Employer contributions		128							160
Benefits paid		(4,694			)				(3,980	)
Fair value of plan assets at end of year		43,587							44,284
Funded status	$	(11,068			)	$			(9,844	)
Accumulated benefit obligations	$	54,655				$			54,128
Weighted average assumptions to determine benefit obligations:
Discount rate		2.28	-	2.35%			3.10	-	3.14%
Expected long-term return on plan assets			4.50%					4.75%
Rate of compensation increase			n/a					n/a

Accumulated other comprehensive loss of

$21.7

and

$20.8

million at

December 31, 2020

and

2019,

respectively, represent the net actuarial loss which has

not

yet been recognized as a component of pension expense. In

2021,

$0.9

million of net actuarial loss is expected to be recognized as a component of net pension expense.

Components of net periodic benefit cost and other amounts recognized in comprehensive income were as follows:

	2020			2019
	(in thousands)
Pension and other benefits:
Interest cost	$	1,633		$	2,096
Expected return on plan assets		(2,020	)		(1,965	)
Recognized net actuarial loss		839			865
Pension expense	$	452		$	996
Other changes in plan assets and benefit obligations recognized in comprehensive income:
Net loss (gain)	$	1,739		$	(141	)
Amortization of recognized gain		(839	)		(865	)
Total recognized loss (gain) in comprehensive loss	$	900		$	(1,006	)

Weighted average assumptions used to determine net periodic benefit cost:	2020			2019
Discount rate	3.10	-	3.14%	4.28%
Expected long-term return on plan assets		4.75%		5.00%
Rate of compensation increase		n/a		n/a

The expected long-term rate of return on plan assets was based on a building-block approach. Historical markets are studied and long-term historical relationships between equities and fixed income are presumed consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, are evaluated before long-term capital markets are determined. Diversification and rebalancing of plan assets are properly considered as part of establishing long-term portfolio returns.

At

December 31, 2020,

the plan held shares of various Aon Collective Investment Trust (“ACIT”) funds offered through an offering statement. The fair values of the Company's pension plan assets by category were as follows:

	2020 Fair Value Measurements (in thousands)
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Measured at NAV as a practical expedient		Total
ACIT equity funds	$	-	$	9,406		1,152	$	10,558
ACIT fixed income funds		-		29,958		2,108		32,066
Cash management funds		-		963		-		963
	$	-	$	40,327		3,260	$	43,587

At

December 31, 2019,

the plan held units of various Aon Hewitt Group Trust (“AHGT”) funds offered through a private placement. The fair values of the Company's pension plan assets by category were as follows:

	2019 Fair Value Measurements(in thousands)
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
AHGT equity funds	$	-	$	12,714	$	12,714
AHGT fixed income funds		-		30,548		30,548
Cash management funds		-		1,022		1,022
	$	-	$	44,284	$	44,284

Net asset values (“NAV”) of ACIT and AGHT funds included in Level

1

and Level

2

are readily determinable, measured daily and based on the fair value of each fund's underlying investments. Level

1

assets are priced using quotes for trades occurring in active markets for the identical asset. Level

2

assets are priced using observable inputs for the asset (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Other investments determine NAV on a monthly or quarterly basis and/or have redemption restrictions. NAVs are based on the fair value of each fund's underlying investments. For these investments, NAV is used as a practical expedient to estimate fair value and are

not

categorized in the fair value hierarchy. Redemptions

may

be requested at the fund's NAV under the notification requirements of each fund.

An administrative committee consisting of certain senior management employees administers the Company's defined benefit pension plan. The pension plan assets are allocated among approved asset types based on the plans current funded status and other characteristics set by the administrative committee, and subject to liquidity requirements of the plans.

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

	2021		$	3,992
	2022		$	3,878
	2023		$	3,767
	2024		$	3,660
	2025		$	3,556
2026	-	2030	$	16,065

The Company made a minimum required contribution of

$0.6

million to its pension plan in

January 2021.

The CARES Act included limited funding relief provisions for single employer defined benefit plans allowing the deferral of required contributions that would otherwise be due in

2020.