Employee Benefit Plans

The Company provides full-time employees with pension benefits under defined benefit and defined contribution plans. The measurement date for all plans is December 31. The Company's expense for its defined contribution plans amounted to $8.7 million in 2015, $11.2 million in 2014 and $10.3 million in 2013. The Company also provides certain health insurance benefits to employees as well as retirees.

The Company has an unfunded noncontributory defined benefit pension plan. The plan provides defined benefits based on years of service and average monthly compensation using a career average formula. Pension benefits were frozen at July 1, 2010. The Company also had a funded defined benefit plan which was terminated in 2015.

Effective December 2015, the funded defined benefit plan (the "Plan") was amended to include a lump-sum pension benefit payout option for certain plan participants. In addition, in December 2015, the Plan completed the purchase of group annuity contracts that transferred the liability for the remaining retirees and active employees who did not elect a lump sum option to an insurance company. As a result of these changes, we recognized pension settlement charges of $31.9 million after tax ($51.4 million pre-tax) during the twelve months ended December 31, 2015.

For the twelve months ended December 31, 2015, we made cash contributions of $3.1 million to our pension trusts to fund the remaining amount of this settlement.

The Company also has postretirement health care benefit plans covering substantially all of its full time employees hired prior to January 1, 2003. These plans are generally contributory and include a cap on the Company's share of the related costs.

Obligation and Funded Status

Following are the details of the obligation and funded status of the pension and postretirement benefit plans:



(in thousands)	Pension Benefits						Postretirement Benefits
Change in benefit obligation	2015			2014			2015			2014
Benefit obligation at beginning of year	$	133,984		$	103,612		$	42,300		$	33,383
Service cost	236			180			900			687
Interest cost	182			4,774			1,584			1,511
Actuarial (gains) losses	(6,299		)	29,059			(4,762		)	7,341
Participant contributions	—			—			535			532
Retiree drug subsidy received	—			—			138			107
Benefits paid	(119,426		)	(3,641		)	(1,543		)	(1,261		)
Benefit obligation at end of year	$	8,677		$	133,984		$	39,152		$	42,300



(in thousands)	Pension Benefits						Postretirement Benefits
Change in plan assets	2015			2014			2015			2014
Fair value of plan assets at beginning of year	$	116,041		$	110,862		$	—		$	—
Actual gains on plan assets	517			8,689			—			—
Company contributions	3,153			131			1,008			729
Participant contributions	—			—			535			532
Benefits paid	(119,426		)	(3,641		)	(1,543		)	(1,261		)
Fair value of plan assets at end of year	$	285		$	116,041		$	—		$	—

Under funded status of plans at end of year	$	(8,392	)	$	(17,943	)	$	(39,152	)	$	(42,300	)

Amounts recognized in the Consolidated Balance Sheets at December 31, 2015 and 2014 consist of:



	Pension Benefits						Postretirement Benefits
(in thousands)	2015			2014			2015			2014
Accrued expenses	$	(1,051	)	$	(165	)	$	(1,247	)	$	(1,274	)
Employee benefit plan obligations	(7,341		)	(17,778		)	(37,905		)	(41,012		)
Net amount recognized	$	(8,392	)	$	(17,943	)	$	(39,152	)	$	(42,286	)

Following are the details of the pre-tax amounts recognized in accumulated other comprehensive loss at December 31, 2015:



	Pension Benefits					Postretirement Benefits
(in thousands)	Unamortized Actuarial Net Losses			Unamortized Prior Service Costs		Unamortized Actuarial Net Losses			Unamortized Prior Service Costs
Balance at beginning of year	$	64,588		$	—	$	18,267		$	(898	)
Amounts arising during the period	(6,815		)	—		(4,762		)	—
Settlement recognition	(51,446		)	—		—			—
Amounts recognized as a component of net periodic benefit cost	(1,516		)	—		(1,517		)	543
Balance at end of year	$	4,811		$	—	$	11,988		$	(355	)

The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year, excluding the impact of the pension termination, are as follows:



(in thousands)	Pension		Postretirement			Total
Prior service cost	$	—	$	(543	)	$	(543	)
Net actuarial loss	1,516		1,517			3,033

Amounts applicable to the Company's defined benefit plans with accumulated benefit obligations in excess of plan assets are as follows:



	December 31,
(in thousands)	2015		2014
Projected benefit obligation	$	8,392	$	17,943
Accumulated benefit obligation	$	8,392	$	17,943

The combined benefits expected to be paid for all Company defined benefit plans over the next ten years (in thousands) are as follows:



Year	Expected Pension Benefit Payout		Expected Postretirement Benefit Payout		Medicare Part D Subsidy
2016	$	218	$	1,409	$	(162	)
2017	860		1,516		(184		)
2018	1,061		1,622		(209		)
2019	1,225		1,735		(240		)
2020	1,357		1,850		(271		)
2021-2025	3,455		10,919		(1,879		)

Following are components of the net periodic benefit cost for each year:



	Pension Benefits								Postretirement Benefits
	December 31,								December 31,
(in thousands)	2015		2014			2013			2015			2014			2013
Service cost	$	236	$	180		$	—		$	900		$	687		$	841
Interest cost	182		4,774			4,227			1,584			1,511			1,366
Expected return on plan assets	—		(7,615		)	(7,005		)	(543		)	(543		)	(543		)
Recognized net actuarial loss	1,516		934			1,530			1,517			812			1,473
Benefit cost (income)	$	1,934	$	(1,727	)	$	(1,248	)	$	3,458		$	2,467		$	3,137

Following are weighted average assumptions of pension and postretirement benefits for each year:



	Pension Benefits						Postretirement Benefits
	2015		2014		2013		2015		2014		2013
Used to Determine Benefit Obligations at Measurement Date
Discount rate (a)	N/A		0.65	%	4.7	%	4.2	%	3.9	%	4.8	%
Used to Determine Net Periodic Benefit Cost for Years ended December 31
Discount rate (b)	0.65	%	4.7	%	3.8	%	3.9	%	4.8	%	3.9	%
Expected long-term return on plan assets	N/A		7	%	7.25	%	—		—		—
Rate of compensation increases	N/A		N/A		N/A		—		—		—


(a)	In 2014 and 2013, the calculated discount rate for the unfunded pension plan was different than the defined benefit pension plan. The calculated rate for the unfunded employee retirement plan was 2.60%, 2.40% and 2.90% in 2015, 2014 and 2013, respectively. Since it was terminated in 2015, the defined benefit pension plan did not have a discount rate in the current year.


(b)	In 2015, 2014 and 2013, the calculated discount rate for the unfunded pension plan was different than the defined benefit pension plan. The calculated rate for the unfunded employee retirement plan was 2.40%, 2.90% and 2.10% in 2015, 2014 and 2013, respectively.

No discount rate is in place for the funded pension plan as of December 31, 2015 as it was terminated prior to year-end. Historically, the discount rate for the funded pension plan was calculated based on projecting future cash flows and aligning each year's cash flows to the Citigroup Pension Discount Curve and then calculating a weighted average discount rate for the unfunded plan. The Company has elected to use the nearest tenth of a percent from this calculated rate.



Assumed Health Care Cost Trend Rates at Beginning of Year
	2015		2014
Health care cost trend rate assumed for next year	5.5	%	6.0	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.0	%	5.0	%
Year that the rate reaches the ultimate trend rate	2017		2017

The assumed health care cost trend rate has an effect on the amounts reported for postretirement benefits. A one-percentage-point change in the assumed health care cost trend rate would have the following effects:



	One-Percentage-Point
(in thousands)	Increase			Decrease
Effect on total service and interest cost components in 2015	$	(3	)	$	3
Effect on postretirement benefit obligation as of December 31, 2015	(114		)	98

Plan Assets

The Company's funded pension plan distributed most of its assets in the fourth quarter of 2015 as part of the plan settlement process with a small residual amount remaining to settle final liabilities. Weighted average asset allocations at December 31 by asset category, are as follows:



Asset Category	2015		2014
Fixed income securities	—	%	98	%
Cash and cash equivalents	100	%	2	%
	100	%	100	%

The plan assets are allocated within the broader asset categories in investments that focus on more specific sectors. Within fixed income securities, the funds are invested in a broad cross section of securities to ensure diversification. These include treasury, government agency, corporate, securitization, high yield, global, emerging market and other debt securities. Following the settlement of the funded pension plan, the Company is no longer managing assets under its existing investment policy and strategy.

The following tables present the fair value of the assets (by asset category) in the Company's defined benefit pension plan at December 31, 2015 and 2014:



(in thousands)	December 31, 2015
Assets	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	285		—		—		285
Total	$	285	$	—	$	—	$	285



(in thousands)	December 31, 2014
Assets	Level 1		Level 2		Level 3		Total
Money market fund	—		2,478		—		2,478
Fixed income funds	—		113,544		—		113,544
Total	$	—	$	116,022	$	—	$	116,022

There is no equity or debt of the Company included in the assets of the defined benefit pension plan.