Employee Benefit Plans

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Supplemental Executive Retirement Plan

Prior to April 30, 2021, Kforce maintained a Supplemental Executive Retirement Plan (“SERP”), which benefited two executives. The SERP was a non-qualified benefit plan and did not include elective deferrals of covered executive officers’ compensation. The related net periodic benefit costs were comprised of service cost and interest cost. The services cost amounted to $50 thousand and $199 thousand in the three and six months ending June 30, 2021, respectively, and $86 thousand and $172 thousand in the three and six months ended June 30, 2020, respectively, and were recorded in SG&A. The interest cost amounted to $34 thousand and $138 thousand in the three and six months ending June 30, 2021, respectively, and $125 thousand and $250 thousand in the three and six months ended June 30, 2020, respectively, and were recorded in Other expense, net in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

Effective April 30, 2021, Kforce’s Board of Directors irrevocably terminated the SERP. The benefits owed to the two participants under the SERP as of June 30, 2021 amount to $20.0 million in the aggregate, which is recorded in Other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets. Kforce must make the benefit payments to the participants within 24 months of the termination date but no sooner than 12 months of the termination date, however, we anticipate making the benefit payments subsequent to June 30, 2022. No contributions were made to the SERP during the six months ended June 30, 2021.

As a result of the termination of the SERP, Kforce recognized a net loss of $1.8 million in the quarter ending June 30, 2021. The loss is reflected in Other expense, net in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.