Retirement Plans

9 Months Ended

Oct. 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 and nine months ended October 31, 2024 and 2023:


	Three Months Ended				Nine Months Ended
	10/31/2024		10/31/2023		10/31/2024		10/31/2023
	(In thousands)
Service cost	$	—	$	—	$	—	$	—
Interest cost	311		106		933		826
Expected return on plan assets	(167)		(203)		(500)		(601)
Plan settlement	—		372		—		372
Amortization of prior service cost	—		—		—		—
Recognized net actuarial (gain) loss	(38)		26		(113)		26
Benefit cost	$	106	$	301	$	320	$	623

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, 2024 and 2023, the plan held 1,105,376 shares and 1,404,774 shares of Virco stock, respectively. For the three months ended October 31, 2024 and 2023, the compensation costs incurred for employer match, which is paid in the form of Company stock, was $387,000 and $356,000 respectively. For the nine months ended October 31, 2024 and 2023, the compensation costs incurred for employer match, which is paid in the form of Company stock, was $1,165,000 and $1,078,000 respectively.