BENEFITS

Defined contribution plan

U.S. employees are automatically enrolled in the Maxim Integrated 401(k) Plan (the "Plan") when they meet eligibility requirements, unless they decline participation. Under the terms of the Plan, the Company matches 100% of the employee contributions for the first 3% of employee eligible compensation and an additional 50% match for the next 2% of employee eligible compensation, up to the IRS Annual Compensation Limits. Total defined contribution expense was $11.6 million, $12.6 million and $12.4 million in fiscal years 2019, 2018 and 2017, respectively.

Non-U.S. Pension Benefits

The Company sponsors defined-benefit pension plans in certain countries. Consistent with the requirements of local law, the Company deposits funds for certain plans with insurance companies, with third party trustees, or into government-managed accounts, and accrues for the unfunded portion of the obligation.

The Company sponsors retirement plans for employees in the Philippines and certain other countries. These plans are non-contributory and defined benefit types that provide retirement to employees equal to one-month salary for every year of credited service. The benefits are paid in a lump sum amount upon retirement or separation from the Company. Total defined benefit liability was $12.6 million and $11.2 million as of June 29, 2019 and June 30, 2018, respectively. Total accumulated other comprehensive loss related to this retirement plan was $3.0 million, $1.0 million and $0.6 million for the fiscal years 2019, 2018, and 2017, respectively.

U.S. Employees Postretirement Medical Expense & Funded Status Reconciliation

The Company provides postretirement medical expenses to certain former employees of Dallas Semiconductor and to certain Maxim Integrated executives. The Company adopted the postretirement medical plan as a result of the Company's acquisition of Dallas Semiconductor in 2001. A reconciliation of the funded status of these postretirement benefits, is as follows:



	June 29, 2019			Estimated Fiscal Year 2020 Expense		June 30, 2018			Fiscal Year 2019 Expense
	(in thousands, except percentages)
Accumulated postretirement benefit obligation (APBO):
Retirees and beneficiaries	$	(18,241	)			$	(18,023	)
Active participants	(1,437		)			(1,367		)
Funded status	$	(19,678	)			$	(19,390	)

Actuarial gain (loss)	$	118				$	1,279
Prior service cost	—					—

Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	1,172				$	1,054
Prior service cost	606					962
Total	$	1,778				$	2,016

Net periodic postretirement benefit cost:
Interest cost				$	695				$	741
Amortization:
Prior service cost				356					356
Total net periodic postretirement benefit cost				$	1,051				$	1,097

Employer contributions				$	747				$	571

Economic assumptions:
Discount rate	3.6%					3.9%
Medical trend	7.25% - 5.0%					7.5%-5.0%

The following benefit payments are expected to be paid:



	Non-Pension Benefits
Fiscal Year	(in thousands)
2020	$	747
2021	819
2022	877
2023	893
2024	948
Thereafter	15,394
Total	$	19,678

Dallas Semiconductor Split-Dollar Life Insurance

As a result of the Company's acquisition of Dallas Semiconductor in 2001, the Company assumed responsibility associated with a split-dollar life insurance policy held by a former Dallas Semiconductor director. The policy is owned by the individual with the Company retaining a limited collateral assignment.

The Company had $6.9 million and $5.5 million included in Other assets in the Consolidated Balance Sheets as of June 29, 2019 and June 30, 2018, respectively, associated with the limited collateral assignment to the policy. The Company had a $8.2 million and $6.3 million obligation included in Other Liabilities in the Consolidated Balance Sheets as of June 29, 2019 and June 30, 2018, respectively, related to the anticipated continued funding associated with the policy.