Employee Benefit Plans

The Company provides a contributory trusteed 401(k) deferred compensation and profit sharing plan, which covers substantially all employees. The Company agrees to match certain employee contributions under the 401(k) portion of the plan, while profit sharing contributions are discretionary and are subject to determination by the Board of Directors. Company contributions were $999, $926, and $882 for 2015, 2014, and 2013, respectively.

The Company self-insures employee health benefits. Stop loss insurance covers annual losses exceeding $125 per covered family. Management’s policy is to establish a reserve for claims not submitted by a charge to earnings based on prior experience. Charges to earnings were $2,666, $2,066, and $2,599 for 2015, 2014, and 2013, respectively.

The Company maintains deferred compensation plans for the benefit of certain directors and officers. Under the plans, the Company agrees in return for the directors and officers deferring the receipt of a portion of their current compensation, to pay a retirement benefit computed as the amount of the compensation deferred plus accrued interest at a variable rate. Accrued benefits payable totaled $1,568 and $1,699 at December 31, 2015 and 2014. Deferred compensation expense was $149, $172, and $173 for 2015, 2014, and 2013, respectively. In conjunction with the plans, the Company purchased life insurance on certain directors and officers.

The Company entered into early retirement agreements with certain officers of the Company. Accrued benefits payable as a result of the agreements totaled $267 and $254 at December 31, 2015 and 2014, respectively. Expense associated with these agreements totaled $215, $77, and $166 during 2015, 2014, and 2013, respectively. The benefits under the agreements will be paid through 2018.

Postretirement Medical and Life Benefit Plan

The Company has an unfunded postretirement benefit plan covering substantially all of its employees. The medical plan is contributory with the participants’ contributions adjusted annually; the life insurance plans are noncontributory.



Changes in Accumulated Postretirement Benefit Obligations:	2015			2014
Obligation at the Beginning of Year	$	746		$	671
Unrecognized Loss (Gain)	22			46

Components of Net Periodic Postretirement Benefit Cost
Service Cost	42			41
Interest Cost	26			28

Net Expected Benefit Payments	(53		)	(40		)
Obligation at End of Year	$	783		$	746



Components of Postretirement Benefit Expense:	2015		2014		2013
Service Cost	$	42	$	41	$	40
Interest Cost	26		28		23
Amortization of Unrecognized Net (Gain) Loss	5		—		4
Net Postretirement Benefit Expense	73		69		67

Net (Gain) Loss During Period Recognized in Other Comprehensive Income (Loss)	17		46		(37		)

Total Recognized in Net Postretirement Benefit Expense and Other Comprehensive Income	$	90	$	115	$	30



Assumptions Used to Determine Net Periodic Cost and Benefit Obligations:	2015		2014		2013
Discount Rate	3.82	%	3.62	%	4.31	%



Assumed Health Care Cost Trend Rates at Year-end:	2015		2014
Health Care Cost Trend Rate Assumed for Next Year	8.00	%	8.00	%
Rate that the Cost Trend Rate Gradually Declines to	5.00	%	5.00	%
Year that the Rate Reaches the Rate it is Assumed to Remain at	2021		2020

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects as of December 31, 2015:



	One-Percentage-Point Increase		One-Percentage-Point Decrease
Effect on Total of Service and Interest Cost	$	6	$	(5	)
Effect on Postretirement Benefit Obligation	$	43	$	(39	)

Contributions

The Company expects to contribute $62 to its postretirement medical and life insurance plan in 2016.

Estimated Future Benefits

The following postretirement benefit payments, which reflect expected future service, are expected to be paid:



2016	$	62
2017	71
2018	76
2019	76
2020	81
2021-2025	356