The foilowing table presents a period-end reconciliation of DB Plan assets measured and
recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3):
(in thousands) 2020 2019
Balance, beginning of year $ 5,155 5 4,414
Plan transfers 1,941 1,079
Contributions 373 249
Benefits paid (1,844) (691)
Return on plan assets (net of investment expenses) 106 104
Balance, end of year $ 5,731 Ac) 5,155
In order to satisfy the minimum funding requirements of the Employee Retirement Income
Security Act of 1974, applicable to defined benefit pension plans, the Company anticipates it
will contribute approximately $1.4 million to the DB Plan in 2021.
The following maximum benefit payments, which reflect expected future service, as appro-
priate, are expected to be paid in the years indicated:
{in thousands) DB Plan OPEB Plans
2021 S$ 1,135 S 99
2022 1,300 115
2023 1,350 120
2024 1,480 136
2025 1,592 144
2026 and thereafter 9,522 943
Total S 16,379 $ 1,557
Because the Company is subject to regulation in the state in which it operates, we are
required to maintain our accounts in accordance with the regulatory authority's rules and
regulations. in those instances, we follow the guidance of ASC Topic 980 (“Regulated
Operations”). Based on prior regulatory practice, we recorded underfunded DB Plan and
OPEB Plan obligations as a regulatory asset, and we expect to recover those costs in rates
charged to customers.
Defined Contribution Pian
In addition to the defined benefit plan, the Company provides and maintains a defined
contribution plan covering substantially all employees. Under this plan, the Company
matches 100% of the first 3% of each participating employee’s salary contributed to the plan.
The matching employer's contributions, recorded as operating expenses, were approximately
$272,000 and $278,000 for the years ended December 31, 2020 and 2019, respectively.
117
