Retirement Plans

9 Months Ended

Oct. 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, 2020, 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 nine months ended October 31, 2020 and 2019 were as follows:


	Combined Employee Retirement Plans
	Three Months Ended				Nine Months Ended
	10/31/2020		10/31/2019		10/31/2020		10/31/2019
	(in thousands)
Service cost	$	—	$	—	$	—	$	—
Interest cost	301		355		903		1,065
Expected return on plan assets	(224)		(343)		(672)		(1,029)
Plan settlement	—		—		—		—
Amortization of prior service cost	—		—		—		—
Recognized net actuarial loss	465		176		1,395		528
Benefit cost	$	542	$	188	$	1,626	$	564

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 October 31, 2020 and 2019, the plan held 893,811 shares and 710,319 shares of Virco stock, respectively. For the three months ended October 31, 2020 and 2019, the compensation costs incurred for employer match was $182,000 and $204,000, respectively. For the nine months ended October 31, 2020 and 2019, the compensation costs incurred for employer match was $587,000 and $578,000, respectively.