17. Other Postretirement Benefit Plans

The Corporation sponsors a postretirement medical and life insurance plan for a closed group of retirees who are currently receiving medical benefits and are eligible for retiree life insurance benefits. The Corporation has no plan assets attributable to this plan and funds the benefits as claims arise. Benefit costs are primarily related to interest cost obligations due to the passage of time. The Corporation reserves the right to terminate the plan or make plan changes at any time.

The following tables provide information relating to the change in benefit obligation, change in plan assets, the Plan’s funded status and the liability reflected in the consolidated balance sheet:


December 31	2012			2011
Benefit obligation at beginning of year	$	1,410		$	1,384
Interest cost		41			61
Plan participants’ contributions		37			41
Actuarial (gain) loss		(169	)		133
Benefits paid		(179	)		(245	)
CBI-related		—			36

Benefit obligation at end of year	$	1,140		$	1,410

Fair value of plan assets at beginning of year	$	—		$	—
Corporation contribution		142			204
Plan participants’ contributions		37			41
Benefits paid		(179	)		(245	)

Fair value of plan assets at end of year	$	—		$	—

Funded status of plan	$	(1,140	)	$	(1,410	)

Actuarial assumptions used in the determination of the benefit obligation in the Plan are as follows:


Assumptions at December 31	2012			2011
Discount rate		2.85	%		3.70	%
Assumed healthcare cost trend:
Initial trend		7.50	%		8.00	%
Ultimate trend		5.00	%		5.00	%
Year ultimate trend reached		2018			2018

The discount rate assumption at December 31, 2012 was determined using the same yield-curve based approach as previously described in the Retirement Plans footnote.

Net periodic postretirement benefit cost and other comprehensive income included the following components:


Year Ended December 31	2012			2011			2010
Interest cost	$	41		$	61		$	67
Actuarial loss amortization		—			7			—

Net periodic postretirement benefit cost		41			68			67
Purchase price adjustment – CBI		—			36			—

Total postretirement benefit welfare cost		41			104			67

Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial (gain) loss		(169	)		133			14
Actuarial loss amortization		—			(7	)		—

Total recognized in other comprehensive income		(169	)		126			14

Total recognized in net periodic postretirement income and other comprehensive income	$	(128	)	$	230		$	81

Actuarial assumptions used in the determination of the net periodic postretirement cost in the Plan are as follows:


Assumptions for the Year Ended December 31	2012			2011			2010
Weighted average discount rate		3.70	%		4.35	%		4.65	%
Assumed healthcare cost trend:
Initial trend		8.00	%		8.06	%		8.50	%
Ultimate trend		5.00	%		5.00	%		5.00	%
Year ultimate cost trend reached		2018			2018			2018

A one percentage point change in the assumed health care cost trend rate would have had the following effects on 2012 service and interest cost and the accumulated postretirement benefit obligation at December 31, 2012:


	1% Increase		1% Decrease
Effect on service and interest components of net periodic cost	$	2	$	(2	)
Effect on accumulated postretirement benefit obligation		51		(47	)

The following table provides information regarding estimated future cash flows relating to the postretirement benefit plan at December 31, 2012:


Expected employer contributions:	2013	$	138

Expected benefit payments:	2013		173
	2014		165
	2015		154
	2016		145
	2017		135
	2018 – 2022		500

The contributions and the benefit payments for the postretirement benefit plan are the same and represent expected benefit amounts, net of participant contributions, which are paid from general plan assets.