12. Retirement Plans

The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s frozen defined benefit pension plan (“The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02”) provides benefits primarily based upon a fixed amount for each year of service as of the date the plan was frozen.

Net periodic pension cost for the years ended December 31, 2015, 2014 and 2013 was as follows:

	2015			2014			2013
Interest cost	$	272		$	280		$	259
Expected return on assets		(332	)		(371	)		(333	)
Amortization of net loss		88			45			111
Net periodic pension cost	$	28		$	(46	)	$	37

The reconciliation of changes in projected benefit obligations are as follows:

	2015			2014
Projected benefit obligation at beginning of year	$	7,167		$	6,150
Interest cost		272			280
Actuarial (gain) loss		(496	)		1,235
Expenses paid		(89	)		(95	)
Benefits paid		(389	)		(403	)
Projected benefit obligation at end of year	$	6,465		$	7,167
Accumulated benefit obligation at end of year	$	6,465		$	7,167

The assumptions used to determine the net periodic benefit cost and benefit obligations are as follows:

	2015			2014			2013
Discount rate for net periodic pension cost		3.90	%		4.70	%		3.75	%
Discount rate for benefit obligations		4.30	%		3.90	%		4.70	%
Expected long-term return of plan assets		7.50	%		8.00	%		8.00	%

The expected long-term rate of return assumption is based on the actual historical rate of return on assets adjusted to reflect recent market conditions and future expectations consistent with the Company’s current asset allocation and investment policy. This policy provides for aggressive capital growth balanced with moderate income production. Though inherent risks of equity exposure exist, returns generally are less volatile than maximum growth programs. The assumed discount rates represent long-term high quality corporate bond rates commensurate with the liability duration of the plan.

The following table reflects the change in the fair value of the plan’s assets:

	2015			2014
Fair value of plan assets at beginning of year	$	5,713		$	5,577
Actual return on plan assets		60			316
Company contributions		148			318
Expenses paid		(89	)		(95	)
Benefits paid		(389	)		(403	)
Fair value of plan assets at end of year	$	5,443		$	5,713

The fair value of plan assets are all categorized as level 1 and were determined based on period end closing, quoted prices in active markets.

The weighted average asset allocations at December 31, 2015 and 2014 are as follows:

	2015			2014
U.S. Equities securities		83	%		82	%
U.S. Debt securities		15	%		17	%
Cash		2	%		1	%
Total		100	%		100	%

The following table provides a reconciliation of the funded status of the plan at December 31, 2015 and 2014:

	2015			2014
Projected benefit obligation	$	6,465		$	7,167
Plan assets at fair value		5,443			5,713
Funded status	$	(1,022	)	$	(1,454	)

The funded status shown above is included in other long-term liabilities in the Company’s Consolidated Statements of Financial Position at December 31, 2015 and 2014. The Company doesn’t expect to make a contribution to the plan in 2016.

Benefit payments projected for the plan are as follows:

2016	$	378
2017		374
2018		366
2019		371
2020		376
2021-2025		1,898

The Myers Industries Profit Sharing and 401(k) Plan is maintained for the Company’s U.S. based employees, not covered under defined benefit plans, who have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of $2,363, $3,018 and $2,802 in 2015, 2014 and 2013, respectively.

In addition, the Company has a Supplemental Executive Retirement Plan (“SERP”) to provide certain participating senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Expense (income) related to the SERP was approximately $188, $402, and $(152) for the years ended December 2015, 2014 and 2013, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 4.30% at December 31, 2015 and 3.90% at December 31, 2014. The SERP liability was approximately $4,174 and $4,280 at December 31, 2015 and 2014, respectively, and is included in Accrued Employee Compensation and Other Long-Term Liabilities on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.