v3.26.1
Retirement Plan
 12 Months Ended
Jun. 25, 2026
Retirement Benefits [Abstract]  
Retirement Plan

NOTE 14 — RETIREMENT PLAN

The Supplemental Employee Retirement Plan (“SERP”) is an unfunded, non-qualified benefit plan that will provide eligible participants with monthly benefits upon retirement, disability or death, subject to certain conditions. Benefits paid to retirees are based on age at retirement, years of credited service, and average compensation. We use our fiscal year end as the measurement date for the obligation calculation. Accounting guidance in ASC Topic 715, Compensation — Retirement Benefits, requires the recognition of the funded status of the SERP on the Consolidated Balance Sheet. Actuarial gains or losses, prior service costs or credits and transition obligations that have not yet been recognized are recorded as a component of “Accumulated Other Comprehensive Income (Loss)”.

The following table presents the changes in the projected benefit obligation for the fiscal years ended:

 

June 25,
2026

 

 

June 26,
2025

 

Change in projected benefit obligation

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

28,739

 

 

$

26,862

 

Service cost

 

 

562

 

 

 

516

 

Interest cost

 

 

1,556

 

 

 

1,445

 

Actuarial (gain) loss

 

 

(371

)

 

 

640

 

Benefits paid

 

 

(534

)

 

 

(724

)

Projected benefit obligation at end of year

 

$

29,952

 

 

$

28,739

 

 

The accumulated benefit obligation, which represents benefits earned up to the measurement date, was $28,162 and $27,583 at June 25, 2026 and June 26, 2025, respectively.

Components of the actuarial (gain) loss are presented below for the fiscal years ended:

 

June 25,
2026

 

 

June 26,
2025

 

 

June 27,
2024

 

Actuarial (Gain) Loss

 

 

 

 

 

 

 

 

 

Change in assumed pay increases

 

$

(230

)

 

$

1,119

 

 

$

1,418

 

Change in discount rate

 

 

(352

)

 

 

(141

)

 

 

(1,138

)

Other

 

 

211

 

 

 

(338

)

 

 

(1,943

)

Actuarial (gain) loss

 

$

(371

)

 

$

640

 

 

$

(1,663

)

 

The components of the net periodic pension cost are as follows for the fiscal years ended:

 

June 25,
2026

 

 

June 26,
2025

 

 

June 27,
2024

 

Service cost

 

$

562

 

 

$

516

 

 

$

251

 

Interest cost

 

 

1,556

 

 

 

1,445

 

 

 

1,400

 

Net periodic pension cost

 

$

2,118

 

 

$

1,961

 

 

$

1,651

 

 

The most significant assumption related to our SERP is the discount rate used to calculate the actuarial present value of benefit obligations to be paid in the future.

We used the following assumptions to calculate the benefit obligation of our SERP as of the following dates:

 

June 25,
2026

 

June 26,
2025

Discount rate

 

5.59%

 

5.49%

Average rate of compensation increases

 

4.50%

 

4.50%

Bonus payment

 

116% - 125% of base, paid 4 of 5 years

 

45% - 115% of base, paid 4 of 5 years

 

We used the following assumptions to calculate the net periodic costs of our SERP as follows for the fiscal years ended:

 

June 25,
2026

 

June 26,
2025

 

June 27,
2024

Discount rate

 

5.49%

 

5.45%

 

5.12%

Rate of compensation increases

 

4.50%

 

6.11%

 

4.50%

Mortality

 

Pri-2012 white collar with MP- 2021 scale

 

Pri-2012 white collar with MP- 2021 scale

 

Pri-2012 white collar with MP- 2021 scale

Bonus payment

 

45% - 115% of base, paid 4 of 5 years

 

45% - 115% of base, paid 4 of 5 years

 

45% - 110% of base, paid 4 of 5 years

 

The assumed discount rate is based, in part, upon a discount rate modeling process that considers both high quality long-term indices and the duration of the SERP relative to the durations implicit in the broader indices. The discount rate is utilized principally in calculating the actuarial present value of our obligation and periodic expense pursuant to the SERP. To the extent the discount rate increases or decreases, our SERP obligation is decreased or increased, respectively.

The following table presents the benefits expected to be paid in the next ten fiscal years:

Fiscal Year

 

 

 

2027

 

$

759

 

2028

 

 

1,212

 

2029

 

 

1,752

 

2030

 

 

1,743

 

2031

 

 

1,733

 

2032 — 2036

 

 

12,020

 

 

At June 25, 2026 and June 26, 2025, the current portion of the SERP liability was $759 and $818, respectively, and recorded in the caption “Accrued payroll and related benefits” on the Consolidated Balance Sheets.

The following table presents the components of accumulated other comprehensive income that have not yet been recognized in net pension expense:

 

June 25,
2026

 

 

June 26,
2025

 

Unrecognized net gain

 

$

1,354

 

 

$

983

 

Tax effect

 

 

(512

)

 

 

(419

)

Net amount unrecognized

 

$

842

 

 

$

564