Note 6 — Post-retirement Benefit Plans
Pension Plan and Other Post-retirement Benefits
We have a non-contributory, defined benefit pension plan (the “DB Plan”) that covers sub-
stantially all employees. The benefits are based on years of service and participant compensa-
tion levels. Our 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.
We provide post-retirement medical benefits 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 and are 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, 2015 and for the year then ended:
(in thousands) DB Plan OPEB Plans
Projected benefit obligations $ 22,158 $ 2,861
Employer contribution 936 298
Benefits paid, excluding expenses (497) (37)
Fair value of plan assets 13,872 619
Accumulated benefit obligation 19,911 -
Funded status (8,286) (2,242)
Net periodic benefit cost 1,215 158
Amount of the funded status recognized in the
Consolidated Balance Sheet consisted of:
Current liability - -
Non-current liability (8,286) (2,242)
Total $ (8,286) $ (2,242)
18
