Retirement Plans

6 Months Ended

Jul. 31, 2023

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 Annual Report on Form 10-K, benefit accruals under the Employees Retirement Plan were frozen effective December 31, 2003. There is no service cost incurred under the Pension 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, 2024, benefit accruals under the VIP Plan were frozen since December 31, 2003. There is no service cost incurred under the VIP Plan.

The following table summarizes the net periodic pension cost for the Pension Plan and the VIP Plan for the three months ended July 31, 2024 and 2023:


	Three Months Ended				Six Months Ended
	7/31/2024		7/31/2023		7/31/2024		7/31/2023
	(In thousands)
Service cost	$	—	$	—	$	—	$	—
Interest cost	311		360		622		720
Expected return on plan assets	(169)		(199)		(338)		(398)
Plan settlement	—		—		—		—
Amortization of prior service cost	(40)		—		(75)		—
Recognized net actuarial loss			—		—		—
Benefit cost	$	102	$	161	$	209	$	322

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, 2024 and 2023, the plan held 1,154,305 shares and 1,415,111 shares of Virco stock, respectively. For the three months ended July 31, 2024 and 2023, the compensation costs incurred for employer match, which is paid in the form of Company stock, was $337,000 and $319,000 respectively. For the six months ended July 31, 2024 and 2023, the compensation costs incurred for employer match, which is paid in the form of Company stock, was $778,000 and $722,000 respectively.