Post-Retirement Benefit Plans
Pension Pian and Cther Post-Retirement Benefits
The Company has a non-contributory, defined benefit pension plan (the “DB Plan”) that
covers substantially all employees. The benefits are based on years of service and participant
compensation levels. The Company’s funding policy is to contribute annual amounts that
meet the requirements for funding under the U.S. Department of Labor’s Pension Protection
Act. Contributions are intended to provide not only for benefits attributed to service to date,
but also for those expected to be earned in the future.
Post-retirement medical benefits are provided for eligible retired employees through one of
two plans (collectively referred to as our “OPEB Plans”). For employees who retire on or after
the normal retirement age of 65, benefits are provided through a post-retirement plan (the
“Post-65 Plan”). For eligible non-union employees who retire prior to their normal retirement
age and who have met certain age and service requirements, benefits are provided through
a post-employment medica! pian (the “Post-employment Pian”). Future benefits under the
Post-65 Plan increase annually based on the actual percentage of wage and salary increases
earned from the plan inception date to the normal retirement date. The benefits under the
Post-employment Plan allow for the continuity of medical benefits coverage at group rates
from the employee’s retirement date until the employee becomes eligible for Medicare,
which are fully funded by the retiree. The liability related to the Post-65 Plan will be funded
from the general assets of our Company.
Upon retirement, if a qualifying employee elects to receive medical benefits under our
Post-65 Plan, we pay up to a maximum monthly benefit of $373 based on years of service.
The following table sets forth information regarding our OB Plan and our OPEB Plans as of
December 31, 2020 and for the year then ended:
(in thousands) DB Plan OPEB Plans
Projected benefit obligations $ 39,050 $ 5,549
Employer contribution 1,491 11
Benefits paid, excluding expenses (1,964) (72)
Fair value of plan assets 23,626 639
Accumulated benefit obligation 35,020 -
Funded status (15,424) (4,910)
Net periodic benefit cost 1,688 345
Amount of the funded status recognized in the
Consolidated Balance Sheet consisted of:
Current liability - -
Non-current liability (15,424) (4,910)
110
