Annual report pursuant to Section 13 and 15(d)

Employee Benefits Plans

v3.5.0.2
Employee Benefits Plans
 12 Months Ended
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
Employee Benefits Plans

Management Security Plan

The management security plan (“MSP”) is a nonqualified, noncontributory defined supplemental deferred retirement benefit plan for a select group of management personnel. The MSP provides a fixed supplemental retirement benefit for 180 months certain. The MSP is frozen; no new participants are being added and no benefit increases are being granted. The MSP benefit expense and the projected management security plan benefit obligation are determined using assumptions as of the end of the year. The weighted-average discount rate used to compute the obligation was 4.3% and 4.2% in fiscal years 2016 and 2015, respectively.

Actuarial gains or losses are recognized when incurred, therefore; the end of year benefit obligation is the same as the accrued benefit costs recognized in the Consolidated and Combined Balance Sheets.

The amount of MSP benefit expense charged to costs and expenses was as follows:

(in thousands)
Fiscal Year Ended September 30,
 
2016
 
2015
 
2014
Service cost
$
213

 
$
195

 
$
195

Interest cost
210

 
197

 
(23
)
Recognized actuarial loss adjustment
(5
)
 
231

 
—

Total
$
418

 
$
623

 
$
172




The following provides a roll-forward of the MSP benefit obligation:

(in thousands)
September 30,
 
2016
 
2015
Change in projected benefit obligation:
 

 
 

Benefit obligation at beginning of year
$
4,476

 
$
4,198

Service cost
213

 
195

Interest cost
210

 
197

Benefits paid
(351
)
 
(345
)
Recognized actuarial loss adjustment
(5
)
 
231

Benefit obligation at end of year
$
4,543

 
$
4,476

 
 
 
 
Funded status at end of year
$
(4,543
)
 
$
(4,476
)



The MSP is unfunded and benefits are paid as they become due. The estimated future benefit payments under the plan for each of the five succeeding years are approximately $348,000, $365,000, $170,000, $210,000 and $210,000 and for the five-year period thereafter is an aggregate of $1,429,000.

The Company has established a “Rabbi Trust” to provide for the funding of accrued benefits under the MSP. According to the terms of the Rabbi Trust, funding is voluntary until a change of control of the Company as defined in the Management Security Plan Trust Agreement occurs. Upon a change of control, funding is triggered. As of September 30, 2016, the Rabbi Trust had no assets, and no change of control had occurred.

Profit Sharing and 401(k)

The Company maintains a 401(k) employee savings plan for eligible employees, which provides for a 4% matching contribution on employee payroll deferrals. The Company’s matching funds vest to the employee immediately, pursuant to a safe harbor election effective in October 2012. The Company’s contribution to the plan was approximately $401,000, $360,000, and $192,000 for the fiscal years 2016, 2015 and 2014, respectively.

The Profit Sharing Plan (“Plan”) is fully funded by contributions from the Company. Contributions to the Plan are discretionary and determined annually by the Company’s Board of Directors. Contributions to employee accounts are based on the participant’s compensation. The Company’s contribution to the Profit Sharing Plan was $291,000, $165,000 and $165,000 for the fiscal years ended September 30, 2016, 2015 and 2014, respectively.