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) 2018 2017
Balance, beginning of year $ 3,215 $ 2,264
Plan transfers 1,548 1,314
Contributions 219 222
Benefits paid (645) (651)
Return on plan assets (net of investment expenses) 77 66
Balance, end of year $ 4,414 $ 3,215
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 2019.
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
2019 $ 988 $ 84
2020 994 87
2021 1,129 104
2022 1,257 121
2023 1,307 126
2024 - 2028 8,191 820
Total $ 13,866 $ 1,342
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
$269,000 and $239,000 for the years ended December 31, 2018 and 2017, respectively.
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