Employee Post-Employment Benefits

Pension and Postretirement Medical and Life Benefits

We sponsor

three

defined benefit pension plans for active employees and offer certain postretirement benefits for retirees. A summary of each of these is presented below.

Retirement Plan

RTI sponsors the Morrison Restaurants Inc. Retirement Plan (the "Retirement Plan"). Effective

December 31, 1987,

the Retirement Plan was amended so that

additional benefits would accrue and

new participants could enter the Retirement Plan after that date. Participants receive benefits based upon salary and length of service.

Minimum funding for the Retirement Plan is determined in accordance with the guidelines set forth in employee benefit and tax laws. From time to time we

may

contribute additional amounts as we deem appropriate. We estimate that we will

not

be required to make contributions to the Retirement Plan in fiscal year

2018.

Executive Supplemental Pension Plan and Management Retirement Plan

Under these unfunded defined benefit pension plans, eligible employees earn supplemental retirement income based upon salary and length of service, reduced by social security benefits and amounts otherwise receivable under other specified Company retirement plans. The Executive Supplemental Pension Plan and the Management Retirement Plan have been amended so that

additional benefits will accrue and

new participants

may

enter the plan.

Included in our Condensed Consolidated Balance Sheets as of

September 5, 2017

and

June 6, 2017

are amounts within Accrued liabilities: Payroll and related costs of

$1.6

million and

$3.0

million, respectively, and amounts within Other deferred liabilities of

$33.9

million and

$33.5

million, respectively, relating to our

three

defined benefit pension plans.

Postretirement Medical and Life Benefits

Our Postretirement Medical and Life Benefits plans provide medical benefits to substantially all retired employees and life insurance benefits to certain retirees. The medical plan requires retiree cost sharing provisions that are more substantial for employees who retire after

January 1, 1990.

Included in our Condensed Consolidated Balance Sheets as of

September 5, 2017

and

June 6, 2017

are amounts within Accrued liabilities: Payroll and related costs of

$0.1

million as of both dates and amounts within Other deferred liabilities of

$0.9

million as of both dates relating to our postretirement medical and life benefits.

The following tables detail the components of net periodic benefit cost for the Retirement Plan, Management Retirement Plan, and the Executive Supplemental Pension Plan (collectively, the "Pension Plans") and the Postretirement Medical and Life Benefits plans, which is recorded as a component of

General, and administrative expense in our Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands):

	Pension Plans
	Thirteen weeks ended
	September 5, 2017			August 30, 2016
Service cost	$	4		$	6
Interest cost		396			420
Expected return on plan assets		(86	)		(91	)
Recognized actuarial loss		180			338
Curtailment Expense		436			-
Net periodic benefit cost	$	930		$	673

	Postretirement Medical and Life Benefits
	Thirteen weeks ended
	September 5, 2017		August 30, 2016
Service cost	$	1	$	1
Interest cost		8		9
Recognized actuarial loss		8		17
Net periodic benefit cost	$	17	$	27

During the

weeks ended

September 5, 2017,

$1.4

million lump-sum pension distribution triggered partial settlement accounting for the Executive Supplemental Pension Plan.

Accordingly, reflected in the table above is a pre-tax curtailment expense of

$0.4

million for the

weeks ended

September 5, 2017

representing the recognition of a pro rata portion of the unrecognized loss recorded within accumulated other comprehensive loss.

During the

weeks ended

September 5, 2017

and

August 30, 2016,

we reclassified recognized actuarial losses of

$0.1

million and

$0.4

million, respectively, out of accumulated other comprehensive loss and into pension expense, which is included in

General and administrative expenses within our Condensed Consolidated Statements of Operations and Comprehensive Loss.

We also sponsor

two

defined contribution retirement savings plans. Information regarding these plans is included in our Annual Report on Form

-K for the fiscal year ended

June 6, 2017.

Restaurant Closures and Corporate Restructuring

As of

June 6, 2017,

liabilities of

$0.9

million, representing unpaid obligations related to employee severance and vacation accruals, were included within Accrued liabilities: Payroll and related costs in our Consolidated Balance Sheet. A roll forward of our obligations in connection with employee separations is as follows (in thousands):

Balance at June 6, 2017	$	854
Employee severance accruals and unused vacation accruals		167
Cash payments		(1,021	)
Balance at September 5, 2017	$	-