Retirement Plans

The Company and its subsidiaries cover employees under a noncontributory defined benefit retirement plan, entitled the Virco Employees’ Retirement Plan (the “Pension Plan”). Benefits under the Employees Retirement Plan are based on years of service and career average earnings. As more fully described in the Form 10-K, benefit accruals under the Employees Retirement Plan were frozen effective December 31, 2003.

The Company also provides a supplementary retirement plan for certain key employees, the VIP Retirement Plan (the “VIP Plan”). The VIP Plan provides a benefit of up to 50% of average compensation for the last 5 years in the VIP Plan, offset by benefits earned under the Pension Plan. As more fully described in the Form 10-K, benefit accruals under this plan were frozen effective December 31, 2003.

The Company also provides a non-qualified plan for non-employee directors of the Company (the “Non-Employee Directors Retirement Plan”). The Non-Employee Directors Retirement Plan provides a lifetime annual retirement benefit equal to the director’s annual retainer fee for the fiscal year in which the director terminates his or her position with the Board, subject to the director providing 10 years of service to the Company. As more fully described in the Form 10-K, benefit accruals under this plan were frozen effective December 31, 2003.

The net periodic pension cost (income) for the Pension Plan, the VIP Plan, and the Non-Employee Directors Retirement Plan for the three months and nine months ended October 31, 2014 and 2013 were as follows (in thousands):



	Three Months Ended
	Pension Plan						VIP Plan				Non-Employee Directors Retirement Plan
	10/31/2014			10/31/2013			10/31/2014		10/31/2013		10/31/2014			10/31/2013
Service cost	$	—		$	—		$	—	$	—	$	—		$	—
Interest cost	315			322			88		83		4			4
Expected return on plan assets	(275		)	(276		)	—		—		—			—
Amortization of transition amount	—			—			—		—		—			—
Recognized (gain) loss due to curtailments	—			—			—		—		—			—
Amortization of prior service cost	—			—			—		—		—			—
Pension settlement	—			800			—		—		—			—
Recognized net actuarial (gain) loss	284			350			45		55		(8		)	(3		)
Benefit cost	$	324		$	1,196		$	133	$	138	$	(4	)	$	1



	Nine months Ended
	Pension Plan						VIP Plan				Non-Employee Directors Retirement Plan
	10/31/2014			10/31/2013			10/31/2014		10/31/2013		10/31/2014			10/31/2013
Service cost	$	—		$	—		$	—	$	—	$	—		$	—
Interest cost	945			966			264		249		12			12
Expected return on plan assets	(825		)	(828		)	—		—		—			—
Amortization of transition amount	—			—			—		—		—			—
Recognized (gain) loss due to curtailments	—			—			—		—		—			—
Amortization of prior service cost	—			—			—		—		—			—
Pension settlement	—			800			—		—		—			—
Recognized net actuarial (gain) loss	852			1,050			135		165		(24		)	(9		)
Benefit cost	$	972		$	1,988		$	399	$	414	$	(12	)	$	3