10) PENSION PLAN

We maintain contributory and non-contributory retirement plans for eligible employees. Our contributions to the contributory plan amounted to $35.7 million, $29.9 million and $27.3 million in 2014, 2013 and 2012, respectively. The non-contributory plan is a defined benefit pension plan which covers employees of one of our subsidiaries. The benefits are based on years of service and the employee’s highest compensation for any five years of employment. Our funding policy is to contribute annually at least the minimum amount that should be funded in accordance with the provisions of ERISA.

The following table shows the reconciliation of the defined benefit pension plan as of December 31, 2014 and 2013:


	2014			2013
	(000s)
Change in plan assets:
Fair value of plan assets at beginning of year	$	106,469		$	104,074
Actual return (loss) on plan assets		16,470			8,037
Employer contributions		0			0
Benefits paid		(5,605	)		(5,042	)
Administrative expenses		(637	)		(600	)

Fair value of plan assets at end of year	$	116,697		$	106,469
Change in benefit obligation:
Benefit obligation at beginning of year	$	103,558		$	114,529
Service cost		966			1,060
Interest cost		4,986			4,528
Benefits paid		(5,605	)		(5,042	)
Actuarial (gain) loss		23,437			(11,517	)

Benefit obligation at end of year	$	127,342		$	103,558
Amounts recognized in the Consolidated Balance Sheet:
Other non-current assets	$	0		$	2,911
Other non-current liabilities		10,645			0

Total amounts recognized at end of year	$	10,645		$	2,911


	2014			2013			2012
	(000s)
Components of net periodic cost (benefit)
Service cost	$	966		$	1,060		$	1,144
Interest cost		4,985			4,528			4,659
Expected return on plan assets		(7,772	)		(7,601	)		(7,301	)
Recognized actuarial loss		1,107			3,305			4,219

Net periodic cost	$	(714	)	$	1,292		$	2,721


	2014		2013
Measurement Dates
Benefit obligations		12/31/2014		12/31/2013
Fair value of plan assets		12/31/2014		12/31/2013


	2014			2013
Weighted average assumptions as of December 31
Discount rate		3.95	%		4.95	%
Rate of compensation increase		4.00	%		4.00	%


	2014			2013			2012
Weighted-average assumptions for net periodic benefit cost calculations
Discount rate		4.95	%		4.05	%		4.40	%
Expected long-term rate at return on plan assets		7.50	%		7.50	%		8.00	%
Rate of compensation increase		4.00	%		4.00	%		4.00	%

The accumulated benefit obligation was $126.4 million and $102.3 million as of December 31, 2014 and 2013, respectively. As of December 31, 2014, the accumulated benefit obligation exceeded the fair value of plan assets by $9.7 million. As of December 31, 2013, the fair value of plan assets exceeded the accumulated benefit obligation by $4.1 million.

We estimate that there will be a $3.2 million net loss amortized from accumulated other comprehensive income during 2015.

The market values of our pension plan assets at December 31, 2014 and December 31, 2013 by asset category are as follows:


December 31, 2014	Total		Level 1		Level 2		Level 3
Equities:
U.S. Large Cap	$	9,212	$	—	$	9,212	$	—
U.S. Mid Cap		2,852		—		2,852		—
U.S. Small Cap		2,626		—		2,626		—
International Developed		6,181		—		6,181		—
Emerging Markets		4,139		—		4,139		—
Fixed income:
Core Fixed Income		27,062		—		27,062		—
Long Duration Fixed Income		61,718		—		61,718		—
Real Estate:
REIT Fund		2,395		—		2,395		—
Cash/Currency:
Cash Equivalents		512		—		512		—

Total market value	$	116,697	$	—	$	116,697	$	—


December 31, 2013	Total		Level 1		Level 2		Level 3
Equities:
U.S. Large Cap	$	8,600	$	—	$	8,600	$	—
U.S. Mid Cap		2,740		—		2,740		—
U.S. Small Cap		2,725		—		2,725		—
International Developed		6,508		—		6,508		—
Emerging Markets		4,154		—		4,154		—
Fixed income:
Core Fixed Income		23,222		—		23,222		—
Long Duration Fixed Income		55,933		—		55,933		—
Real Estate:
REIT Fund		2,124		—		2,124		—
Cash/Currency:
Cash Equivalents		463		—		463		—

Total market value	$	106,469	$	—	$	106,469	$	—

To develop the expected long-term rate of return on plan assets assumption, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio.

The following table shows expected benefit payments for the years ended December 31, 2014 through 2024 for our defined pension plan. There will be benefit payments under this plan beyond 2024.


Estimated Future Benefit Payments (000s)
2015	$	5,967
2016		6,231
2017		6,449
2018		6,661
2019		6,858
2020-2024		35,959

Total	$	68,125


	2014			2013
Plan Assets
Asset Category
Equity securities		21	%		23	%
Fixed income securities		76	%		74	%
Other		3	%		3	%

Total		100	%		100	%

Investment Policy, Guidelines and Objectives have been established for the defined benefit pension plan. The investment policy is in keeping with the fiduciary requirements under existing federal laws and managed in accordance with the Prudent Investor Rule. Total portfolio risk is regularly evaluated and compared to that of the plan’s policy target allocation and judged on a relative basis over a market cycle. The following asset allocation policy and ranges have been established in accordance with the overall risk and return objectives of the portfolio:


	As of 12/31/14			Permitted Range
Total Equity		21	%		10-30	%
Total Fixed Income		76	%		70-90	%
Other		3	%		0-10	%

In accordance with the investment policy, the portfolio will invest in high quality, large and small capitalization companies traded on national exchanges, and investment grade securities. The investment managers will not write or buy options for speculative purposes; securities may not be margined or sold short. The manager may employ futures or options for the purpose of hedging exposure, and will not purchase unregistered sectors, private placements, partnerships or commodities.