The Company maintains a non-qualified defined-benefit Executive Supplemental Benefit Plan (ESBP) that provides certain former key executives with deferred compensation benefits, based on years of service and base compensation, payable during retirement. The plan was amended as of November 30, 1994, to freeze benefits for the participants in the plan at that time.

The Company also retained certain potential obligations related to a contributory defined-benefit plan for its previous employees located in the Netherlands (NDBP) when the Company disposed of its subsidiary, CTG Nederland, B.V. Benefits paid are a function of a percentage of career average pay. This plan was curtailed for additional contributions in January 2003.

The Company also maintains a fully funded pension plan related to Belgium employees (BDBP). This is a plan with active employees and the Company expects to make future contributions.

As a result of the acquisition of Soft Company on February 15, 2018, the Company maintains an unfunded pension plan related to the current Soft Company employees (FDBP). The Company did not make contributions to this plan in 2018 and does not anticipate making contributions to the plan in 2019. No benefit payments were made in 2018 and none are expected to be paid in 2019.

Net periodic pension cost for the years ended December 31, 2018, 2017, and 2016 for the plans is as follows:

The change in benefit obligation and reconciliation of fair value of plan assets for the years ended December 31, 2018 and 2017 for the ESBP, NDBP, BDBP, and FDBP plans are as follows:

Changes in Benefit Obligation	2018			2017
(amounts in thousands)
Benefit obligation at beginning of period	$	29,498		$	28,460
Service cost		343			263
Interest cost		580			553
Benefits paid		(711	)		(1,066	)
Acquisition		350			—
Actuarial loss (gain)		(821	)		(1,568	)
Effect of exchange rate changes		(1,642	)		2,856
Benefit obligation at end of period		27,597			29,498
Reconciliation of Fair Value of Plan Assets
Fair value of plan assets at beginning of period		17,690			15,379
Actual return on plan assets		365			69
Employer contributions		1,181			1,152
Benefits paid		(1,008	)		(1,052	)
Effect of exchange rate changes		(825	)		2,142
Fair value of plan assets at end of period		17,403			17,690
Accrued benefit cost	$	10,194		$	11,808

Accrued benefit cost for the ESBP, NDBP, BDBP, and FDBP is included in the consolidated balance sheet as follows:

	ESBP			NDBP			BDBP			FDBP
As of December 31, 2018:
Non-current assets	$	—		$	—		$	92		$	—
Current liabilities	$	581		$	—		$	—		$	—
Non-current liabilities	$	4,596		$	4,747		$	—		$	363
Discount rates:
Benefit obligation		3.76	%		1.90	%		1.75	%		1.60	%
Net periodic pension cost		3.06	%		1.80	%		1.65	%		1.45	%
Salary increase rate		—	%		—	%		1.80	%		1.75	%
Expected return on plan assets		—	%		4.00	%		3.25	%		—	%
As of December 31, 2017:
Non-current assets	$	—		$	—		$	96		$	—
Current liabilities	$	659		$	—		$	—		$	—
Non-current liabilities	$	5,750		$	5,495		$	—		$	—
Discount rates:
Benefit obligation		3.06	%		1.80	%		1.62	%		—	%
Net periodic pension cost		3.41	%		1.30	%		1.65	%		—	%
Salary increase rate		—	%		—	%		1.80	%		—	%
Expected return on plan assets		—	%		4.00	%		3.25	%		—	%

For the ESBP, the accumulated benefit obligation at December 31, 2018 and 2017 was $5.2 million and $6.4 million, respectively. The amounts included in other comprehensive loss relating to the pension loss adjustment in 2018 and 2017, net of tax, were approximately $(0.3) million and $(0.4) million, respectively. The discount rate used in 2018 was 3.76%, which is reflective of a series of bonds that are included in the Moody’s Aa long-term corporate bond yield whose cash flow approximates the payments to participants under the ESBP for the remainder of the plan. This rate was an increase of 70 basis points from the rate used in the prior year and resulted in a decrease in the plan’s liabilities of $1.2 million. Benefits paid to participants are funded by the Company as needed, and are expected to total approximately $0.6 million in 2019. The plan is deemed unfunded as the Company has not specifically identified Company assets to be used to discharge the deferred compensation benefit liabilities. The Company has purchased insurance on the lives of certain plan participants in amounts considered sufficient to reimburse the Company for the costs associated with the plan for those participants. The Company does not anticipate making contributions to the plan other than for current year benefit payments as required in 2019 or future years.

For the NDBP, the accumulated benefit obligation at December 31, 2018 and 2017 was $12.2 million and $13.4 million, respectively. The discount rate used in 2018 was 1.90%, which is reflective of a series of corporate bonds whose cash flow approximates the payments to participants under the NDBP for the remainder of the plan. This rate was an increase of 10 basis points from the rate used in the prior year. The increase in the discount rate and foreign currency fluctuations resulted in a decrease in the plan’s liabilities of $1.2 million in 2018.

The assets for the NDBP are held by Aegon, a financial services firm located in the Netherlands. The Company maintains a contract with Aegon to insure future benefit payments of the NDBP; however, due to certain terms of the agreement and potential obligations to the Company, the NDBP has not been settled. The benefit payments to be made in 2019 are expected to be paid by Aegon from plan assets. The assets for the plan are included in a general portfolio of government bonds, a portion of which is allocated to the NDBP based upon the estimated pension liability associated with the plan. The fair market value of the plan’s assets equals the contractual value of the NDBP in any given year. The fair value of the assets is determined using a Level 3 methodology (see note 1 “Summary of Significant Accounting Policies—Fair Value”). In 2018 and 2017, the plan investments had a targeted minimum return of 4.0%, which is consistent with historical returns and the 4.0% return guaranteed to the participants of the plan. Aegon intends to maintain the current investment strategy of investing plan assets solely in government bonds in 2019.

For the BDBP, the accumulated benefit obligation at December 31, 2018 and 2017 was $9.8 million and $9.7 million, respectively. The discount rate used in 2018 was 1.75%, which is reflective of a series of corporate bonds whose cash flows approximates the payments to participants under the BDBP for the remainder of the plan. This rate was an increase of 13 basis points from the rate used in the prior year. The increase in the discount rate, offset by foreign currency fluctuations, resulted in an increase in the plan’s liabilities of $0.1 million in 2018.

The assets for the BDBP are held by Allianz, a financial services firm located in Belgium. The Company maintains a contract with Allianz to insure future benefit payments of the BDBP. Contributions made by the Company to Allianz are based on employees’ current salaries. The benefit payments to be made in 2019 are expected to be paid by Allianz from plan assets. The assets for the plan are included in the overall portfolio of assets held by Allianz. The fair market value of the plan’s assets equals the contractual value of the BDBP in any given year (which is the mathematical reserve held by Allianz). The fair value of the assets is determined using a Level 3 methodology (see note 1 “Summary of Significant Accounting Policies—Fair Value”). Allianz does not guarantee a minimum return on the plan investments, whereas Belgian law sets a minimum return to be guaranteed to the participants of the plan.

For the FDBP, the accumulated benefit obligation at December 31, 2018 and 2017 was $0.4 million and $0.0 million, respectively. The amounts included in other comprehensive loss relating to the pension loss adjustment in 2018 and 2017, were less than $(0.1) million and $(0.0) million, respectively. The discount rate used in 2018 was 1.60%, which is reflective of a series of corporate bonds whose cash flows approximates the payments to participants under the FDBP for the remainder of the plan. This rate was an increase of 15 basis points from the rate used in the prior year. The plan is deemed unfunded as the Company has not specifically identified Company assets to be used to discharge the deferred compensation benefit liabilities.

Anticipated benefit payments for the ESBP, NDBP, BDBP, and FDBP expected to be paid in future years are as follows:

For the ESBP, NDBP, BDBP, and FDBP, the amounts included in accumulated other comprehensive loss, net of tax, that have not yet been recognized as components of net periodic benefit cost as of December 31, 2018 are $0.9 million, $5.2 million, $0.7 million, and less than $0.1 million, respectively, for unrecognized actuarial losses. The amounts included in accumulated other comprehensive loss, net of tax, that had not yet been recognized as components of net periodic benefit cost as of December 31, 2017 were $1.4 million, $6.1 million, $0.3 million, and $0.0 million, respectively, also for unrecognized actuarial losses.

The amounts recognized in other comprehensive income (loss), net of tax, for 2018, 2017, and 2016, which primarily consist of an actuarial gain (loss) related to year-over-year changes in the discount rate, totaled $0.9 million, $0.6 million, and $(1.4) million (primarily due to foreign currency fluctuations for the NDBP), respectively. Net periodic pension benefit (cost), and the amounts recognized in other comprehensive loss, net of tax, for the ESBP, NDBP, BDBP, and FDBP for 2018, 2017, and 2016 totaled $0.3 million, $0.1 million, and $(1.8) million, respectively.

The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2018 for the ESBP, NDBP, BDBP, and FDBP for unrecognized actuarial losses total $0.2 million.

The Company also maintains the Key Employee Non-Qualified Deferred Compensation Plan for certain key executives. Company contributions to this plan, if any, are based on annually defined financial performance objectives. There were no contributions to the plan in 2018 for amounts earned in 2017, $0.1 million in contributions to the plan in 2017 for amounts earned in 2016, and $0.2 million in contributions to the plan in 2016 for amounts earned in 2015. The Company does not anticipate making contributions in 2019 to this plan for amounts earned in 2018. The investments in the plan are included in the total assets of the Company, and are discussed in note 1, “Investments.” Participants in the plan have the ability to purchase stock units from the Company at current market prices using their available investment balances within the plan. In return for the funds received, the Company releases shares out of treasury stock equivalent to the number of share units purchased by the participants. These shares of common stock are not entitled to any voting rights, but will receive dividends in the event any are paid. The shares are being held by the Company, and will be released to the participants as prescribed by their payment elections under the plan.

The Company maintains the Non-Employee Director Deferred Compensation Plan for its non-employee directors. Cash contributions were made to the plan for certain of these directors totaling approximately $1.1 million in 2018, $0.5 million in 2017 and $0.4 million in 2016. At the time the contributions were made, the non-employee directors elected to purchase stock units from the Company at current market prices using their available investment balance within the plan. Consistent with the Key Employee Non-Qualified Deferred Compensation Plan, in return for funds received, the Company released shares out of treasury stock equivalent to the number of share units purchased by the participants. These shares of common stock are not entitled to any voting rights, but will receive dividends in the event any are paid. The shares are being held by the Company, and will be released to the participants as prescribed by their payment elections under the plan.