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Pension Plans
12 Months Ended
Nov. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Pension Plans

7.       Pension Plans

 

Defined Benefit Plan

 

The Company received a letter dated July 27, 2011 from the Pension Benefit Guaranty Corporation(“PBGC”) stating that the Company’s defined benefit pension plan (the “Plan”) was terminated as of September 30, 2010, and the PBGC was appointed trustee of the Plan. Pursuant to the agreement, the PBGC has a claim to the Company for the total amount of the unfunded benefit liabilities of the Plan of $1,614,001 plus accrued interest. The PBGC has notified the Company that the liability is due and payable as of the termination date, and interest accrues on the unpaid balance at the applicable rate provided under Section 6621(a) of the Internal Revenue Code. The total amount outstanding to the PBGC at November 30, 2013 and 2012 was $1,914,392 and $1,821,464 respectively, including accrued interest, which is recorded as a current liability. The Company made no payments to the Plan in fiscal 2013 and 2012.  The Plan covers approximately 40 former employees.

 

Effective June 30, 1995, the Plan was frozen, ceasing all benefit accruals and resulting in a plan curtailment.  As a result of the curtailment, it has been the Company’s policy to recognize the unfunded status of the Plan as of the end of the fiscal year with a corresponding charge or credit to earnings for the change in the unfunded liability.   There was no pension expense recorded in fiscal years ended November 30, 2013 and 2012.