Note 6 — Post-retirement Benefit Plans
Pension Plan and Other 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 medical plan (the “Post-employment Plan”). 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 $330 based on years of service.
The following table sets forth information regarding our DB Plan and our OPEB Plans as of
December 31, 2016 and for the year then ended:
(in thousands) DB Plan OPEB Plans
Projected benefit obligations $ 23,899 $ 3,165
Employer contribution 970 10
Benefits paid, excluding expenses (1,056) (47)
Fair value of plan assets 14,889 586
Accumulated benefit obligation 21,547 N/A
Funded status (9,010) (2,578)
Net periodic benefit cost 1,284 194
Amount of the funded status recognized in the
Consolidated Balance Sheet consisted of:
Current liability . -
Non-current liability (9,010) (2,578)
Total $ (9,010) $ (2,578)
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