POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

Certain of our subsidiaries provide health care benefits to certain retirees who are covered under specific group contracts. As defined by the specific group contract, qualified covered associates may be eligible to receive major medical insurance with deductible and co-insurance provisions subject to certain lifetime maximums.

Included in accumulated other comprehensive income at December 31, 2014 and 2013 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service costs of $677.5 thousand ($415.3 thousand net of tax) and $742.0 thousand ($453.0 thousand net of tax) and unrecognized actuarial losses of $3.1 million ($1.9 million net of tax) and $2.3 million ($1.4 million net of tax), respectively. The prior service cost and actuarial loss included in accumulated other comprehensive income and expected to be recognized in net periodic benefit cost during the year ended December 31, 2015 is $91.8 thousand ($56.3 thousand net of tax) and $62.6 thousand ($38.4 thousand net of tax), respectively.

The following table sets forth the funded status of these plans:



	December 31
	2014			2013
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	37,230		$	37,428
Service cost	824			816
Interest cost	1,663			1,223
Employee contributions	380			415
Actuarial (gain) loss	895			(1,102		)
Benefits paid	(1,866		)	(1,550		)
Benefit obligation at end of year	39,126			37,230
Fair value of plan assets at end of year	—			—
Funded status	$	(39,126	)	$	(37,230	)

The unfunded portion of the liability of $39.1 million at December 31, 2014 is recognized in our Consolidated Balance Sheet and includes $2.6 million classified as a current accrued postretirement liability.

A summary of our key actuarial assumptions used to determine the benefit obligation as of December 31, 2014 and 2013 follows:



	December 31
	2014		2013
Healthcare inflation:
Healthcare cost trend rate assumed for next year	7.70	%	7.90	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	4.50	%	4.50	%
Year of ultimate rate achievement	2029		2029
Weighted average discount rate	3.85	%	4.64	%

A summary of our key actuarial assumptions used to determine net periodic benefit cost follows:



	Year Ended December 31
	2014		2013		2012
Healthcare inflation:
Healthcare cost trend rate assumed for next year	7.90	%	8.20	%	8.50	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	4.50	%	4.50	%	4.50	%
Year of ultimate rate achievement	2029		2029		2029
Weighted average discount rate	4.64	%	3.38	%	4.34	%



	Year Ended December 31
	2014		2013		2012
	(In thousands)
Components of net periodic benefit cost:
Service and interest cost	$	2,487	$	2,039	$	1,939
Amortizations:
Prior service cost	65		26		26
Unrecognized net loss	75		298		129
Other	98		2,286		1,868
Net periodic benefit cost	$	2,725	$	4,649	$	3,962

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one percent change in assumed health care cost trend rates would have the following effects:



	1-Percentage- Point Increase		1-Percentage- Point Decrease
	(In thousands)
Effect on total of service and interest cost components	$	326	$	(275	)
Effect on postretirement obligation	4,285		(3,657		)

We expect to contribute $2.6 million to the postretirement health care plans in 2015. Estimated postretirement health care plan benefit payments for the next ten years are as follows:



2015	$	2.6	million
2016	2.6		million
2017	2.6		million
2018	2.6		million
2019	2.8		million
Next five years	14.6		million