Contractual Pension and Postretirement Benefits

12 Months Ended

Dec. 31, 2011

Contractual Pension and Postretirement Benefits [Abstract]

Contractual Pension And Postretirement Benefits Excluding Defined Benefit Plan Disclosure [Text Block]

16. Contractual Pension and Postretirement Benefits

Presidential had employment contracts with several active and retired officers and employees. These contracts provide for annual pension benefits and other postretirement benefits such as health care benefits. The contractual benefit plans are not funded. The pension benefits generally provide for annual payments in specified amounts for each participant for life, commencing three years after retirement, with an annual adjustment for an increase in the consumer price index. The Company accrued on an actuarial basis the estimated costs of these benefits during the years the employee provides services. As of December 31, 2010, only one active officer had contractual retirement benefits accruing for unfunded pension benefits. All retired officers who had been receiving contractual pension benefits are deceased. At December 31, 2010, the employment of two officers of the Company was terminated and pursuant to their employment contract amendments, they will not receive any benefits from these plans. Periodic benefit costs are reflected in general and administrative expenses. The Company used a December 31 measurement date for the contractual benefit plans. The plan was terminated during 2011 and no future obligation existed at December 31, 2011.

The following tables summarize the actuarial costs of the contractual pension and postretirement benefits:

	Contractual Pension					Contractual Postretirement
	Benefit					Benefits
	Year Ended					Year Ended
	December 31,					December 31,
	2011		2010			2011		2010
Components of net periodic benefit cost
Service cost	$	-	$	-		$	-	$	1,777
Interest cost		-		11,002			-		21,882
Amortization of prior service cost		-		(373,010	)		-		3,702
Amortization of actuarial (gain) loss		-		(703,346	)		-		(38,133	)
							-
Net periodic benefit cost (income)	$	-	$	(1,065,354	)	$	-	$	(10,772	)

The recorded contractual pension and postretirement benefits liability of $344,479 at December 31, 2010 is comprised of $181,201 for pension benefits and $163,278 for postretirement benefits. The accumulated pension and postretirement benefit obligations and recorded liabilities, none of which was funded at December 31, 2010 were as follows:

	Contractual Pension						Contractual Postretirement
	Benefit						Benefits
	Year Ended						Year Ended
	December 31,						December 31,
	2011			2010			2011			2010
Change in benefit obligation:
Benefit obligation at beginning of year	$	181,201		$	524,854		$	163,278		$	403,028
Service cost		-						-			1,777
Interest cost		-			11,002						21,882
Amendments		-			373,010			-			-
Settlements		(181,201	)		-			(163,278	)
Actuarial (gain) loss		-			18,355			-			(250,714	)
Benefits paid		-			-			-			(12,695	)
Benefit obligation at end of year	$	-		$	181,201		$	-		$	163,278
Change in plan assets
Employer contributions	$	-		$	-		$	-		$	12,695
Benefits paid		-			-			-			(12,695	)
Fair value of plan assets at end of year	$	-		$	-		$	-		$	-
Funded status	$	-		$	(181,201	)	$	-		$	(163,278	)
Net amount recognized in the
consolidated balance sheet
Accrued benefit liability	$	-		$	(181,201	)	$	-		$	(163,278	)
Amounts recognized in accumulated
other comprehensive loss
Net actuarial (gain) loss	$	-		$	(40,650	)	$	-		$	(412,677	)
Prior service cost		-			-			-			4,591
	$	-		$	(40,650	)	$	-		$	408,086

Additional disclosure items for the plans at December 31,

	2011		2010		2011		2010
Accumulated benefit obligation	$	-	$	181,201	$	-	$	163,278
Projected benefit obligation		-		181,201		-		163,278
		-		N/A		-		N/A
Increase (decrease) in minimum liability
included in other comprehensive income or loss		-		721,701				(216,283	)

Amortization amounts in the following year (estimate):
		2011		2010		2011		2010
Prior year service cost	$	-	$	-	$	-	$	3,702
Net actuarial (gain) loss		-		-		-		(91,960	)
Total	$	-	$	-	$	-	$	(88,258	)

Weighted-average assumptions used to determine benefit obligations at December 31:

	2011		2010			2011		2010
Discount rate		-		5.08	%		-		4.96	%
Expected return on plan assets		N/A		N/A					N/A
Rate of compensation increase		N/A		N/A			N/A		N/A

Weighted-average assumptions used to determine the net periodic benefit cost for year ended December 31:

	2011		2010			2011		2010
Discount rate		-		5.74	%				5.58	%
Expected return on plan assets		N/A		N/A					N/A
Rate of compensation increase		N/A		N/A			N/A		N/A

The assumed health care cost trend rate at December 31, 2010 was 8% for medical and 9.5% for prescription drugs. Assumed health care cost trend rates have a significant effect on the amounts reported for the postretirement benefits plan.

A one-percentage-point change in assumed health care cost trend rates would have the following effects for the year ended December 31, 2010:

	One Percentage Point Increase
Effect on total service and interest cost components	$	2,016
Effect on postretirement benefit obligation	$	11,629