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) 2017 2016
Balance, beginning of year $ 2,264 $ 2,581
Plan transfers 1,314 493
Contributions 222 196
Benefits paid (651) (1,068)
Return on plan assets (net of investment expenses) 66 62
Balance, end of year $ 3,215 $ 2,264
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 $1.1 million to the DB Plan in 2018.
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
2018 $ 818 $ 70
2019 974 87
2020 980 90
2021 1,115 108
2022 1,248 123
2023 - 2027 7,663 745
Total $ 12,798 $ 1,223
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
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 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
$239,000 and $215,000 for the years ended December 31, 2017 and 2016, respectively,
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