Defined Benefit Plans —No defined benefit plan is currently maintained for employees of SunLink, the Healthcare Services segment or the Pharmacy segment. Prior to 1997, SunLink maintained a defined benefit retirement plan covering substantially all of its domestic employees. Effective February 28, 1997, SunLink amended its domestic retirement plan to freeze participant benefits and closed the plan to new participants. Benefits under the frozen plan are based on years of service and level of earnings. SunLink funds the frozen plan, which is noncontributory, at a rate that meets or exceeds the minimum amounts required by the Employee Retirement Income Security Act of 1974.

Since the sale of SunLink’s life sciences and engineering segment businesses in the fiscal year ended March 31, 1999, net pension expense has been classified as an expense of discontinued operations.

At June 30, 2021, the plan’s assets were invested 43% in cash and short-term investments, 42% in equity investments and 15% in fixed income investments. The plan’s current investment policy of primarily investing in cash and short-term investments is based on the possible need for immediate liquidity as benefits are paid and participants withdraw from the plan. The expected return on investment of 4% is based upon the plan’s historical return on assets. The plan expects to pay $51, $55, $61, $173, and $67 in pension benefits in the years ending June 30, 2022 through 2026, respectively. The plan expects to pay $386 in pension benefits for the years June 30, 2026 through 2030, in the aggregate. This assumes the plan participants elect to take monthly pension benefits as opposed to a lump sum payout when they reach age 65. The Company made contributions of $100 and $132 to the plan during the years ended June 30, 2021 and 2020, respectively, and plans to make a contribution of $100 to the plan for the year ended June 30, 2022.

The components of net pension expense for all plans (comprised solely of one domestic plan) were as follows for the fiscal years ended June 30, 2021 and 2020:

	2021			2020
Service cost	$	0		$	0
Interest cost		40			47
Expected return on assets		(38	)		(34	)
Amortization of prior service cost		78			123
Settlement cost		0			0
Net pension expense	$	80		$	136
Weighted-average assumptions:
Discount rate		2.60	%		3.50	%
Expected return on plan assets		4.00	%		4.00	%
Rate of compensation increase		0.00	%		0.00	%

Summary information for the plans (comprised solely of one domestic plan) is as follows for the fiscal years ended June 30, 2021 and 2020:

	2021			2020
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	1,574		$	1,390
Interest cost		40			47
Actuarial (gain) loss		(51	)		168
Benefits paid		(28	)		(31	)
Benefit obligation end of year	$	1,535		$	1,574
Change in Fair Value of Plan Assets:
Beginning fair value	$	923		$	827
Actual return (loss) on plan assets		85			(5	)
Employer contribution		100			132
Benefits paid		(28	)		(31	)
Plan assets at end of year	$	1,080		$	923
Funded status of the plans		(455	)		(651	)
Unrecognized actuarial loss		293			469
Accrued benefit cost	$	(162	)	$	(182	)
Amounts Recognized in Consolidated Balance Sheets
Accrued benefit cost		(162	)		(182	)
Accumulated other comprehensive loss*		293			469
Net amount recognized	$	(455	)	$	(651	)

*	Accumulated other comprehensive loss represents minimum pension liability adjustments.

Defined Contribution Plan —SunLink has a defined contribution plan pursuant to IRS Section 401(k) covering substantially all employees. SunLink matches a specified percentage of the employee’s contribution as determined periodically by its management. No match was provided for the fiscal year ended June 30, 2021. A match of $137 was provided for the fiscal year ended June 30, 2020. Plan expense for the defined contribution plan was $0 for the years ended June 30, 2021 and 2020.