Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

Note 9. Employee Benefit Plans

The Company has a non-contributory, defined benefit pension plan for all full-time employees over 21 years of age. Historically, benefits were generally based upon years of service and average compensation for the five highest-paid consecutive years of service. Effective December 31, 2009, this plan was converted to a Cash Balance Plan for all full-time employees over 21 years of age. Under the Cash Balance Plan, benefits earned by participants under the prior defined benefit pension plan through December 31, 2009 were converted to an opening account balance for each participant. This account balance for each participant will grow each year with annual pay credits based on age and years of service and monthly interest credits based on an amount established each year by the Board of Directors. The Company funds pension costs in accordance with the funding provisions of the Employee Retirement Income Security Act.

The Company sponsors a postretirement benefit plan covering current and future retirees who acquire age 55 and 10 years of service or age 65 and 5 years of service. The postretirement benefit plan provides coverage toward a retiree's eligible medical and life insurance benefits expenses.

The following tables provide the reconciliation of changes in the benefit obligations and fair value of assets and a statement of funded status for the pension plan and postretirement plan of the Company.

	Pension Benefits						Postretirement Benefits
	2011			2010			2011			2010
Change in benefit obligation
Benefit obligation, beginning of year	$	3,978,778		$	3,582,009		$	588,822		$	533,643
Service cost		274,948			248,146			22,282			20,642
Interest cost		207,974			195,201			31,773			31,356
Actuarial (gain) loss		(175,440	)		95,857			47,303			16,720
Benefit payments		(337,599	)		(142,435	)		(13,562	)		(13,539	)
Benefit obligation, end of year	$	3,948,661		$	3,978,778		$	676,618		$	588,822
Change in plan assets
Fair value of plan assets, beginning of year	$	4,749,845		$	4,357,129		$	—		$	—
Actual return (loss) on plan assets		(26,672	)		535,151			—			—
Employer contributions		—			—			13,562			13,539
Benefits payments		(337,599	)		(142,435	)		(13,562	)		(13,539	)
Fair value of plan assets, end of year	$	4,385,574		$	4,749,845		$	—		$	—
Funded Status at the End of the Year	$	436,913		$	771,067		$	(676,618	)	$	(588,822	)
Amounts Recognized in Accumulated Other Comprehensive Loss
Net loss	$	1,119,187		$	957,227		$	108,318		$	61,182
Prior service cost		(755,465	)		(809,427	)		—			—
Net obligation at transition		—			—			5,826			8,739
Amount recognized	$	363,722		$	147,800		$	114,144		$	69,921
Components of Net Periodic Benefit Cost
Service cost	$	274,948		$	248,146		$	22,282		$	20,642
Interest cost		207,974			195,201			31,773			31,356
Expected (return) loss on plan assets		(353,148	)		(322,402	)		—			—
Amortization of prior service cost		(53,962	)		(53,962	)		—			—
Amortization of net obligation at transition		—			—			2,913			2,913
Recognized net actuarial loss		42,420			42,933			167			—
Net periodic benefit cost	$	118,232		$	109,916		$	57,135		$	54,911
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income)/Loss
Net (gain) loss	$	161,960		$	(159,825	)	$	47,136		$	16,720
Amortization of prior service cost		53,962			53,962			—			—
Amortization of net obligation at transition		—			—			(2,913	)		(2,913	)
Total recognized in other comprehensive (income)/loss	$	215,922		$	(105,863	)	$	44,223		$	13,807
Total Recognized in Net Periodic Benefit Cost and Accumulated Other Comprehensive (Income)/Loss	$	334,154		$	4,053		$	101,358		$	68,718
	2011			2010			2011			2010
Weighted-average assumptions as of December 31:
Discount rate used for Net Periodic Pension Cost		5.50	%		6.00	%		5.50	%		6.00	%
Discount Rate used for Disclosure		4.50	%		5.50	%		4.50	%		5.50	%
Expected return on plan assets		8.00	%		8.00	%		N/A			N/A
Rate of compensation increase		3.00	%		4.00	%		N/A			N/A

The accumulated benefit obligation for the defined benefit pension plan was $3,948,661 and $3,978,778 at December 31, 2011 and 2010, respectively.

Long-term rate of return. The pension plan sponsor selects the assumption for the expected long-term rate of return on assets in consultation with their investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience that may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions.

Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period during which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) typically paid from plan assets (to the extent such expenses are not explicitly estimated within periodic cost).

The fair value of the Company's pension plan assets by asset category are as follows:

			Fair Value Measurements at December 31, 2011 Using
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	991	$	991	$	—	$	—
Mutual funds - fixed income		1,644,987		1,644,987		—		—
Mutual funds - equity		2,739,596		2,739,596		—		—
Total	$	4,385,574	$	4,385,574	$	—	$	—
			Fair Value Measurements at December 31, 2010 Using
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	882	$	882	$	—	$	—
Mutual funds - fixed income		1,738,146		1,738,146		—		—
Mutual funds - equity		3,010,817		3,010,817		—		—
Total	$	4,749,845	$	4,749,845	$	—	$	—

The trust fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return, with a targeted asset allocation of 40% fixed income and 60% equities. The Investment Manager selects investment fund managers with demonstrated experience and expertise, and funds with demonstrated historical performance, for the implementation of the Plan's investment strategy. The Investment Manager will consider both actively and passively managed investment strategies and will allocate funds across the asset classes to develop an efficient investment structure.

It is the responsibility of the trustee to administer the investments of the trust within reasonable costs, being careful to avoid sacrificing quality. These costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs and other administrative costs chargeable to the trust.

The Company expects to make no contributions to its pension plan for the 2012 plan year. Estimated future benefit payments are, $738,752 for 2012, $298,080 for 2013, $31,398 for 2014, $298,531 for 2015, $140,419 for 2016 and $1,279,247 for 2017 through 2020.

Postretirement benefits plan. For measurement purposes, the assumed annual rate of increase in per capita health care costs of covered benefits is 10.0% in 2012 and 2013,and 8.0% in 2014, 8.0% in 2015 and 6.0% in 2016 and thereafter.

If assumed health care cost trend rates were increased by 1 percentage point each year, the accumulated postretirement benefit obligation at December 31, 2011, would be increased by $3,204, and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended December 31, 2011, would be increased by $177. If assumed health care cost trend rates were decreased by 1 percentage point each year, the accumulated postretirement benefit obligation at December 31, 2011, would be decreased by $2,979, and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended December 31, 2011, would be decreased by $165.

The Company expects to contribute $22,061 to its postretirement plan in 2012. Estimated future benefit payments are $24,016 for 2013, $25,554 for 2014, $27,392 for 2015 and $29,081 for 2016.

In addition, as of December 31, 2011 and 2010, the Company paid approximately $13,562 and $13,539, respectively, for employees who retired.

401(k) retirement plan. The Company has a 401(k) retirement plan covering substantially all employees who have completed six months of service. Employees may contribute up to 15% of their salaries. Effective January 1, 2010, the Company matches 100% of the first 2% and 25% of the next 4% of an employee's contributions. Additional contributions can be made at the discretion of the Company's Board of Directors. Contributions to this plan amounted to $105,096 and $104,830 for the years ended December 31, 2011 and 2010, respectively.