The Company’s defined contribution plan covers all employees. Employees are eligible to participate as of the first day of the month following 30 days of service. Participants can make basic contributions up to 50 percent of their annual salary subject to IRS limits. The Company matches participants’ contributions at the rate of 200 percent of the first 3 percent of each participant’s total basic contribution based on the participant’s total annual salary. The Company’s contribution to the qualified defined contribution plans was $27.8 million, $32.7 million and $27.5 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company sponsors a noncontributory defined benefit pension plan (the “Qualified Plan”) with a policy to fund pension liabilities in accordance with the limits imposed by the Employee Retirement Income Security Act of 1974 and Federal income tax laws. In addition, the Company sponsors a supplemental pension plan covering certain employees, which provides incremental payments that would have been payable from the Company’s principal pension plan, were it not for limitations imposed by income tax regulations (the “Supplemental Plan”). The funded status is measured as the difference between plan assets at fair value and the projected benefit obligation which is to be recognized in the Consolidated Balance Sheets. The plan assets and benefit obligations are measured as of the Consolidated Balance Sheet date.

The non-union Delaware City employees and all Paulsboro, Toledo, Chalmette, Torrance and Martinez employees became eligible to participate in the Company’s defined benefit plans as of the respective acquisition dates. The union Delaware City employees became eligible to participate in the Company’s defined benefit plans upon commencement of normal operations. The Company did not assume any of the employees’ pension liability accrued prior to the respective acquisitions.

The Company formed the Post-Retirement Medical Plan on December 31, 2010 to provide health care coverage continuation from date of retirement to age 65 for qualifying employees associated with the Paulsboro acquisition. The Company credited the qualifying employees with their prior service under Valero Energy Corporation which resulted in the recognition of a liability for the projected benefit obligation. The Post-Retirement Medical Plan includes all corporate and refinery employees.

The changes in the benefit obligation, the changes in fair value of plan assets, and the funded status of the Company’s Pension and Post-Retirement Medical Plans as of and for the years ended December 31, 2021 and 2020 were as follows:


	Pension Plans				Post-Retirement Medical Plan
(in millions)	2021		2020		2021		2020
Change in benefit obligation:
Benefit obligation at beginning of year	$	329.3	$	271.2	$	22.0	$	17.5
Service cost	57.5		59.0		1.1		1.0
Interest cost	5.3		6.9		0.3		0.4
Plan amendments	—		—		—		1.8

Benefit payments	(31.2)		(18.0)		(1.2)		(0.6)
Actuarial (gain) loss	(7.6)		10.2		(4.0)		1.9
Projected benefit obligation at end of year	$	353.3	$	329.3	$	18.2	$	22.0
Change in plan assets:
Fair value of plan assets at beginning of year	$	255.8	$	197.4	$	—	$	—
Actual return on plan assets	27.7		28.6		—		—
Benefits paid	(31.2)		(18.0)		(1.2)		(0.6)

Employer contributions	54.0		47.8		1.2		0.6
Fair value of plan assets at end of year	$	306.3	$	255.8	$	—	$	—
Reconciliation of funded status:
Fair value of plan assets at end of year	$	306.3	$	255.8	$	—	$	—
Less benefit obligations at end of year	353.3		329.3		18.2		22.0
Funded status at end of year	$	(47.0)	$	(73.5)	$	(18.2)	$	(22.0)

The Company’s funding policy for its defined benefit plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that may be appropriate considering the funded status of the plans, tax consequences, the cash flow generated by the Company and other factors. The Company plans to contribute approximately $35.6 million to the Company’s Pension Plans during 2022.


	Pension Benefits						Post-Retirement Medical Plan
(in millions)	2021		2020		2019		2021		2020		2019
Components of net periodic benefit cost:
Service cost	$	57.5	$	59.0	$	43.6	$	1.1	$	1.0	$	1.0
Interest cost	5.3		6.9		8.3		0.3		0.4		0.7
Expected return on plan assets	(14.2)		(12.5)		(9.6)		—		—		—

Amortization of prior service cost and actuarial loss	0.1		0.3		0.3		0.7		0.6		0.5
Net periodic benefit cost	$	48.7	$	53.7	$	42.6	$	2.1	$	2.0	$	2.2


	Pension Benefits						Post-Retirement Medical Plan
(in millions)	2021		2020		2019		2021		2020		2019
Prior service costs	$	—	$	—	$	—	$	—	$	1.8	$	—
Net actuarial (gain) loss	(21.1)		(5.9)		(10.7)		(4.0)		1.9		(2.3)
Amortization of losses and prior service cost	(0.1)		(0.3)		(0.3)		(0.7)		(0.6)		(0.5)
Total changes in other comprehensive (income) loss	$	(21.2)	$	(6.2)	$	(11.0)	$	(4.7)	$	3.1	$	(2.8)


	Pension Benefits				Post-Retirement Medical Plan
(in millions)	2021		2020		2021		2020
Prior service costs	$	(0.5)	$	(0.6)	$	(4.3)	$	(5.0)
Net actuarial gain (loss)	12.7		(8.4)		7.8		3.9
Total	$	12.2	$	(9.0)	$	3.5	$	(1.1)


	Qualified Plan				Supplemental Plan				Post-Retirement Medical Plan
	2021		2020		2021		2020		2021		2020
Discount rate - benefit obligations	2.78	%	2.36	%	2.73	%	2.21	%	2.46	%	1.90	%
Rate of compensation increase	4.26	%	4.28	%	4.50	%	4.50	%	—		—


	Qualified Plan			Supplemental Plan			Post-Retirement Medical Plan
	2021	2020	2019	2021	2020	2019	2021	2020	2019
Discount rates:
Effective rate for service cost	2.40%	2.94%	4.24%	2.26%	2.79%	4.19%	2.35%	2.86%	4.21%
Effective rate for interest cost	1.74%	2.50%	3.92%	1.53%	2.33%	3.83%	1.28%	2.21%	3.69%
Effective rate for interest on service cost	1.92%	2.59%	4.00%	1.75%	2.42%	3.90%	2.11%	2.68%	4.09%
Cash balance interest credit rate	1.57%	2.19%	3.34%	1.57%	2.19%	3.34%	N/A	N/A	N/A
Expected long-term rate of return on plan assets	5.25%	5.75%	6.00%	N/A	N/A	N/A	N/A	N/A	N/A
Rate of compensation increase	4.28%	4.28%	4.55%	4.50%	4.50%	5.00%	N/A	N/A	N/A


	Post-Retirement Medical Plan
	2021		2020
Health care cost trend rate assumed for next year	5.2	%	5.4	%
Rate to which the cost trend rate was assumed to decline (the ultimate trend rate)	4.0	%	4.5	%
Year that the rate reaches the ultimate trend rate	2046		2038

The table below presents the fair values of the assets of the Company’s Qualified Plan as of December 31, 2021 and 2020 by level of fair value hierarchy. Assets consist of collective trusts and are measured at fair value based on the closing net asset value (“NAV”) as determined by the fund manager and reported daily. As noted above, the Company’s post-retirement medical plan is funded on a pay-as-you-go basis and has no assets.


	Fair Value Measurements Using NAV as Practical Expedient
	December 31,
(in millions)	2021		2020
Equities:
Domestic equities	$	73.9	$	64.4
Developed international equities	37.7		38.2
Global low volatility equities	24.1		22.5
Emerging market equities	24.8		20.7
Fixed-income	121.6		95.7


Real Estate	23.2		13.3
Cash and cash equivalents	1.0		1.0
Total	$	306.3	$	255.8

The Company’s investment strategy for its Qualified Plan is to achieve a reasonable return on assets that supports the plan’s interest credit rating, subject to a moderate level of portfolio risk that provides liquidity. Consistent with these financial objectives as of December 31, 2021, the plan’s target allocations for plan assets are 54% invested in equity securities, 40% fixed income investments and 6% in real estate. Equity securities include international stocks and a blend of U.S. growth and value stocks of various sizes of capitalization. Fixed income securities include bonds and notes issued by the U.S. government and its agencies, corporate bonds, and mortgage-backed securities. The aggregate asset allocation is reviewed on an annual basis.