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) 2016 2015
Balance, beginning of year $ 2,581 $ 2,625
Plan transfers 493 182
Contributions 196 187
Benefits paid (1,068) (497)
Return on plan assets (net of investment expenses) 62 84
Balance, end of year $ 2,264 $ 2,581
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 million to the DB Plan in 2017.
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
2017 $ 752 $ 63
2018 823 71
2019 956 89
2020 961 92
2021 1,096 109
2022 - 2026 7,113 698
Total $11,701 $ 1,122
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 980 (“Regulated Opera-
tions”). 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 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 salary contributed to the plan.
The matching employer’s contributions, recorded as operating expenses, were approximately
$215,000 and $217,000 for the years ended December 31, 2016 and 2015, respectively.
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