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 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. The plan was frozen in 2007, and thus benefits for service were no longer accumulated after this date.

Net periodic pension cost for the years ended December 31, 2017, 2016 and 2015 was as follows:

	For the Year Ended December 31,
	2017			2016			2015
Interest cost	$	253		$	270		$	272
Expected return on assets		(295	)		(319	)		(332	)
Amortization of net loss		96			82			88
Net periodic pension cost	$	54		$	33		$	28

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

	December 31,
	2017			2016
Projected benefit obligation at beginning of year	$	6,503		$	6,465
Interest cost		253			270
Actuarial loss		276			238
Expenses paid		(84	)		(92	)
Benefits paid		(369	)		(378	)
Projected benefit obligation at end of year	$	6,579		$	6,503
Accumulated benefit obligation at end of year	$	6,579		$	6,503

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

	December 31,
	2017			2016			2015
Discount rate for net periodic pension cost		4.00	%		4.30	%		3.90	%
Discount rate for benefit obligations		3.50	%		4.00	%		4.30	%
Expected long-term return of plan assets		7.75	%		7.75	%		7.50	%

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:

	December 31,
	2017			2016
Fair value of plan assets at beginning of year	$	5,183		$	5,443
Actual return on plan assets		531			210
Company contributions		—			—
Expenses paid		(84	)		(92	)
Benefits paid		(369	)		(378	)
Fair value of plan assets at end of year	$	5,261		$	5,183

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, 2017 and 2016 are as follows:

	December 31,
	2017			2016
U.S. Equities securities		72	%		72	%
U.S. Debt securities		24	%		24	%
Cash		4	%		4	%
Total		100	%		100	%

The following table provides a reconciliation of the funded status of the plan at December 31, 2017 and 2016:

	December 31,
	2017			2016
Projected benefit obligation	$	6,579		$	6,503
Plan assets at fair value		5,261			5,183
Funded status	$	(1,318	)	$	(1,320	)

The funded status shown above is included in Other Liabilities in the Company’s Consolidated Statements of Financial Position at December 31, 2017 and 2016. The Company does not expect to make a contribution to the plan in 2018.

Benefit payments projected for the plan are as follows:

2018	$	360
2019		366
2020		371
2021		372
2022		370
2023-2027		1,874

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 $2,302, $2,324 and $2,363 in 2017, 2016 and 2015, 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 related to the SERP was approximately $128, $192 and $188 for the years ended December 2017, 2016 and 2015, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 3.5% at December 31, 2017 and 4.0% at December 31, 2016. The SERP liability was approximately $2,923 and $3,319 at December 31, 2017 and 2016, respectively, and is included in Accrued Employee Compensation and Other Liabilities on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.