The following 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} 2021 2020
Balance, beginning of year S 5,731 S 5,155
Plan transfers 202 1,941
Contributions 599 373
Benefits paid - (1,844)
Return on plan assets (net of investment expenses) 110 106
Balance, end of year iS 6,642 S 5,731
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 $0.75 million to the DB Plan in 2022.
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
2022 s 1,178 S 113
2023 1,236 119
2024 1,380 134
2025 1,500 144
2026 1,567 153
2027 and thereafter 9,803 1,001
Total $ 16,664 $ 1,664
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 casts in rates
charged to customers.
Defined Contribution Plan
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 eligible compensation
contributed to the plan. The matching employer's contributions, recorded as operating
expenses, were approximately $294,000 and $272,000 for the years ended December 31,
2021 and 2020, respectively.
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