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Employee Benefit Plans
 9 Months Ended
Sep. 27, 2020
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Retirement Plans and Retiree Health and Life Insurance Plans
The Company provides non-contributory defined benefit pension plans to certain of its employees in the United States, Mexico and Belgium. The Company also sponsors contributory defined benefit pension plans covering the majority of its employees in the United Kingdom, Canada, and the Netherlands. In addition, the Company provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements.
The Company froze participation in its U.S. qualified defined benefit pension plan for newly hired salaried and non-union hourly employees effective December 31, 2003. To replace this benefit, non-union U.S. employees hired on or after January 1, 2004, are provided an annual contribution, called the Sonoco Retirement Contribution (SRC), to their participant accounts in the Sonoco Retirement and Savings Plan. The SRC is equal to 4% of the participant's eligible pay plus 4% of eligible pay in excess of the social security wage base. On February 4, 2009, the U.S. qualified defined benefit pension plan was further amended to freeze plan benefits for all active, non-union participants effective December 31, 2018. Remaining active participants in the U.S. qualified plan became eligible for SRC contributions effective January 1, 2019.
The components of net periodic benefit cost include the following:
Three Months EndedNine Months Ended
September 27, 2020September 29, 2019September 27, 2020September 29, 2019
Retirement Plans
Service cost$881 $1,006 $2,966 $2,909 
Interest cost12,785 13,686 38,015 43,729 
Expected return on plan assets(12,427)(13,114)(37,234)(51,443)
Amortization of prior service cost245 241 742 671 
Amortization of net actuarial loss7,136 5,993 21,270 24,673 
Effect of curtailment loss— — 31 — 
Effect of settlement loss— 796 661 2,343 
Net periodic benefit cost$8,620 $8,608 $26,451 $22,882 
Retiree Health and Life Insurance Plans
Service cost$89 $77 $265 $229 
Interest cost84 116 249 347 
Expected return on plan assets(92)(179)(275)(535)
Amortization of prior service credit(70)(124)(207)(371)
Amortization of net actuarial gain(208)(205)(620)(613)
Net periodic benefit income$(197)$(315)$(588)$(943)

The Company made aggregate contributions of $12,292 and $210,962 to its defined benefit retirement and retiree health and life insurance plans during the nine months ended September 27, 2020 and September 29, 2019, respectively. The prior year included voluntary contributions to the Company's U.S. defined benefit pension plans (the "Plans") totaling $200,000. These voluntary contributions were followed by actions to further de-risk the Plan portfolios by increasing the allocation of pension assets to fixed-income investments. The Company expects to make additional aggregate contributions of approximately $4,700 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2020, excluding potential immaterial cash funding related to restructuring actions.
Plan Termination
As previously disclosed, the Company terminated the Sonoco Pension Plan for Inactive Participants (the "Inactive Plan"), a tax-qualified defined benefit plan, effective September 30, 2019. Upon approval from the Pension Benefit Guaranty Corporation ("PBGC") and following completion of a limited lump sum offering, the Company is expected to
settle all remaining liabilities under the Inactive Plan through the purchase of annuities. The Company intends to apply to the PBGC for an extension of the distribution deadline and expects to make additional contributions to the Inactive Plan of approximately $150,000 in 2021 in order to be fully funded on a termination basis at the time of the annuity purchase. The actual amount of the Company's long-term liability when it is transferred, and the related cash contribution requirement, will depend upon the nature and timing of participant settlements, as well as prevailing market conditions. These expected contributions are reducing tax payments in 2020 by approximately $38,000. Non-cash, pretax settlement charges totaling approximately $590,000 are expected to be recognized in 2021 as the lump sum payouts and annuity purchases are made.
Settlements and Curtailments
The Company recognized settlement charges totaling $661 and $2,343 during the nine months ended September 27, 2020 and September 29, 2019, respectively. These charges resulted from payments made to certain participants of the Company's non-union Canadian pension plan who elected a lump sum distribution option upon retirement. Additional settlement charges may be recognized over the remainder of 2020 as a result of ongoing lump-sum distributions and restructuring actions. In addition, curtailment charges totaling $31 related to the closure of a paper mill in Canada were recognized during the nine months ended September 27, 2020.
Sonoco Retirement Contribution (SRC)
SRC contributions, which are funded annually in the first quarter, totaled $22,503 during the nine months ended September 27, 2020, and $14,573 during the nine months ended September 29, 2019. No additional SRC contributions are expected during the remainder of 2020. The Company recognized expense related to the SRC of $5,589 and $5,912 for the quarters ended September 27, 2020 and September 29, 2019, respectively, and $17,283 and $18,009 for the nine-month periods ended September 27, 2020 and September 29, 2019, respectively.