RETIREMENT PLANS

9 Months Ended

Sep. 30, 2021

RETIREMENT PLANS

RETIREMENT PLANS

10. RETIREMENT PLANS

Multi-employer Defined Benefit Plan

Pension benefits for substantially all of the Company’s Alaska-based employees are provided through the Alaska Electrical Pension Fund (“AEPF”). The Company pays a contractual hourly amount based on employee classification or base compensation to the AEPF. As a multi-employer defined benefit plan, the accumulated benefits and plan assets are not determined for, or allocated separately to, the individual employer. This plan was not in endangered or critical status during the plan year.

Defined Benefit Plan

The Company has noncontributory defined benefit pension and noncontributory defined medical, dental, vision, and life benefit plans for eligible employees in its International Telecom segment who meet certain eligibility criteria. As part of the Alaska Transaction, the Company acquired a defined benefit pension plan and a post-retirement medical plan covering certain employees. The pension plan had a projected benefit obligation of $15.4 million and plan assets of $12.1 million on July 22, 2021. The post-retirement medical plan is unfunded and had a projected benefit obligation of $0.4 million on July 22, 2021.

The Company recorded the net periodic benefit cost identified below (in thousands):

	Three months ended
	September 30, 2021				September 30, 2020
	Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits
Operating expense
Service cost	$	54	$	35	$	(164)	$	32
Non-operating expense
Interest cost		645		41		603		45
Expected return on plan assets		(833)		—		(414)		—
Actuarial (gain)/ loss		—		—		(7)		(15)
Net periodic pension expense (benefit)	$	(134)	$	76	$	18	$	62

	Nine months ended
	September 30, 2021				September 30, 2020
	Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits
Operating expense
Service cost	$	162	$	105	$	682	$	96
Non-operating expense
Interest cost		1,789		123		2,361		135
Expected return on plan assets		(2,207)		—		(2,730)		—
Actuarial (gain)/ loss		—		—		(21)		(45)
Net periodic pension expense (benefit)	$	(256)	$	228	$	292	$	186

In the first quarter of 2020, the Company began the process of winding up one of its pension plans. At December 31, 2020 this plan had assets of $15.6 million and a projected benefit obligation of $15.6 million.

The Company was not required to make contributions to its pension plans during the nine months ended September 30, 2021 and 2020. However, the Company periodically evaluates whether to make discretionary contributions. The Company funds its postretirement benefit plans as claims are made and did not make contributions to

its pension plans during the nine months ended September 30, 2021. During the nine months ended September 30, 2020 the Company contributed $0.7 million to its pension benefit plans.