Benefit Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Benefit Plans

13. BENEFIT PLANS

The following table summarizes key information related to the Company’s pension plans and retirement agreements (in thousands):

	Six Months Ended June 30, 2023			Year Ended December 31, 2022
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of period	$	26,207		$	31,830
Service cost		373			1,118
Interest cost		673			962
Actuarial gain		—			(6,710	)
Benefits paid		(425	)		(993	)
Projected benefit obligation, end of period	$	26,828		$	26,207
Change in Plan Assets
Plan assets at fair value, beginning of period	$	—		$	—
Company contributions		425			993
Benefits paid		(425	)		(993	)
Plan assets at fair value, end of period	$	—		$	—
Unfunded Status of the Plan	$	26,828		$	26,207

	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Components of Net Periodic Benefit Cost
Service cost	$	186	$	280	$	373	$	559
Interest cost		336		240		673		481
Net loss		-		108		-		216
Net periodic pension cost	$	522	$	628	$	1,046	$	1,256

The long-term portion of the pension liability as of June 30, 2023 and December 31, 2022 was $26.0 million and $25.4 million, respectively, and is included in Other Non-Current Liabilities in the accompanying consolidated balance sheets.

Amended and Restated Executive Retirement Agreement

The Company also has a non-qualified deferred compensation agreement with its former CEO. The agreement provides for a lump sum cash payment upon retirement, no sooner than age 55. As of June 30, 2023, the former CEO had reached age 55 and was eligible to receive the payment upon retirement.

On May 27, 2021, the Company and its former CEO entered into an Amended and Restated Executive Retirement Agreement which replaced the former CEO’s previous agreement, effective July 1, 2021. Pursuant to the terms of the Amended and Restated Executive Retirement Agreement, upon the date that the former CEO ceases to provide services to the Company, the Company will pay to the former CEO an amount equal to $3.6 million which shall be paid in cash. The payment shall be credited with interest at a rate of 5% compounded quarterly. Additionally, at the end of each calendar year provided that the former CEO is still providing services to GEO pursuant to the Executive Chairman Agreement, GEO will credit an amount equal to $1.0 million at the end of each calendar year (the “Employment Contributions Account”). The Employment Contributions Account will be credited with interest at the rate of 5% compounded quarterly. The balance of the Amended and Restated Executive Retirement Agreement was approximately $7.8 million at June 30, 2023 and is included in Other Non-Current Liabilities in the accompanying consolidated balance sheets.

The Company has established several trusts for the purpose of paying the retirement benefit pursuant to the Amended and Restated Executive Retirement Agreement. The trusts are revocable “rabbi trusts” and the assets of the trusts are subject to the claims of the Company’s creditors in the event of the Company’s insolvency.