Retirement Plans

6 Months Ended

Jul. 31, 2020

The Company and its subsidiaries cover certain employees under a noncontributory defined benefit retirement plan, entitled the Virco Employees’ Retirement Plan (the “Pension Plan”). As more fully described in the Form 10-K, benefit accruals under the Employees Retirement Plan were frozen effective December 31, 2003. There is no service cost incurred under this plan.

The Company also provides a supplementary retirement plan for certain key employees, the VIP Retirement Plan (the “VIP Plan”). As more fully described in the Annual Report on Form 10-K for the year ended January 31, 2019, benefit accruals under this plan were frozen since December 31, 2003. There is no service cost incurred under this plan.

The net periodic pension cost for the Pension Plan and the VIP Plan for the three months and six months ended July 31, 2020 and 2019 were as follows:


	Combined Employee Retirement Plans
	Three Months Ended						Six Months Ended
	7/31/2020		7/31/2019		7/31/2020		7/31/2019
	(in thousands)
Service cost	$	—	$	—	$	—	$	—
Interest cost	301		355		602		710
Expected return on plan assets	(224)		(343)		(448)		(686)
Plan settlement	—		—		—		—
Amortization of prior service cost	—		—		—		—
Recognized net actuarial loss	465		176		930		352
Benefit cost	$	542	$	188	$	1,084	$	376

401(k) Retirement Plan

The Company’s retirement plan, which covers all U.S. employees, allows participants to defer from 1% to 75% of their eligible compensation through a 401(k)-retirement program. The plan includes Virco stock as one of the investment options. At July 31, 2020 and 2019, the plan held 850,789 shares and 708,345 shares of Virco stock, respectively. For the three months ended July 31, 2020 and 2019, the compensation costs incurred for employer match was $195,000 and $187,000, respectively. For the six months ended July 31, 2020 and 2019, the compensation costs incurred for employer match was $405,000 and $374,000, respectively.