Pension Plans (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
|---|
| Retirement Plans [Line Items] |
|
| Schedule of Weighted Average Assumptions |
Weighted average assumptions used to determine pension benefit obligations are as follows:
|
DECEMBER 31 |
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Discount rate - qualified plan |
|
|
3.00 |
% |
|
|
3.75 |
% |
|
|
4.50 |
% |
|
Discount rate - non-qualified plan |
|
|
2.88 |
% |
|
|
4.00 |
% |
|
|
4.50 |
% |
|
Cash balance interest crediting rate |
|
|
3.00 |
% |
|
|
3.50 |
% |
|
|
3.50 |
% |
The Company utilizes a measurement date of January 1st to determine its periodic pension costs. Weighted average assumptions used to determine net periodic pension costs for the defined benefit plans are as follows:
|
YEARS ENDED DECEMBER 31 |
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
Qualified plan |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
3.75 |
% |
|
|
4.50 |
% |
|
|
3.88 |
% |
|
Expected return on plan assets |
|
|
4.75 |
% |
|
|
5.50 |
% |
|
|
4.75 |
% |
|
Cash balance interest crediting rate |
|
|
3.50 |
% |
|
|
3.50 |
% |
|
|
3.50 |
% |
|
Non-qualified plan |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
4.00 |
% |
|
|
4.50 |
% |
|
|
3.88 |
% |
|
| Summary of Target Allocations and Invested Asset Allocations |
The following table provides its year-end 2020 target allocations and actual invested asset allocations at December 31, 2020 and 2019.
|
DECEMBER 31 |
|
2020
TARGET
LEVELS |
|
|
2020 |
|
|
2019 |
|
|
Fixed income securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities |
|
|
88 |
% |
|
|
87 |
% |
|
|
88 |
% |
|
Money market funds |
|
|
2 |
% |
|
|
3 |
% |
|
|
2 |
% |
|
Total fixed income securities |
|
|
90 |
% |
|
|
90 |
% |
|
|
90 |
% |
|
Equity securities |
|
|
10 |
% |
|
|
10 |
% |
|
|
10 |
% |
|
Total plan assets |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
| Summary of Plan Assets Investment Measured at Fair Value |
The following table presents, for each hierarchy level, the qualified defined benefit plan’s investment assets that are measured at fair value at December 31, 2020 and 2019. Refer to Note 5 – “Fair Value” for a description of the different levels in the Fair Value Hierarchy.
|
DECEMBER 31 |
|
2020 |
|
|
2019 |
|
|
(in millions) |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Fixed income securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities |
|
$ |
29.5 |
|
|
$ |
10.4 |
|
|
$ |
— |
|
|
$ |
19.1 |
|
|
$ |
33.6 |
|
|
$ |
10.7 |
|
|
$ |
— |
|
|
$ |
22.9 |
|
|
Money market mutual funds |
|
|
11.3 |
|
|
|
11.3 |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
|
|
7.8 |
|
|
|
— |
|
|
|
— |
|
|
Total investments at fair value |
|
$ |
40.8 |
|
|
$ |
21.7 |
|
|
$ |
— |
|
|
$ |
19.1 |
|
|
$ |
41.4 |
|
|
$ |
18.5 |
|
|
$ |
— |
|
|
$ |
22.9 |
|
|
| Summary of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs |
The table below provides a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).
|
YEARS ENDED DECEMBER 31 |
|
2020 |
|
|
2019 |
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
22.9 |
|
|
$ |
25.8 |
|
|
Less: Assets transferred to Level 1 investments |
|
|
(4.3 |
) |
|
|
(3.5 |
) |
|
Actual return on plan assets related to assets still held |
|
|
0.5 |
|
|
|
0.6 |
|
|
Balance at end of year |
|
$ |
19.1 |
|
|
$ |
22.9 |
|
|
| Schedule of Benefit Obligations, Plan Assets and Funded Status of Plans |
The following table reflects the benefit obligations, fair value of plan assets and funded status of the plans at December 31, 2020 and 2019.
|
DECEMBER 31 |
|
Qualified
Pension Plan |
|
|
Non-Qualified
Pension Plan |
|
|
(in millions) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Change in benefit obligation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit obligation, beginning of period (1) |
|
$ |
472.5 |
|
|
$ |
469.5 |
|
|
$ |
31.7 |
|
|
$ |
33.8 |
|
|
Interest cost |
|
|
17.1 |
|
|
|
19.9 |
|
|
|
1.2 |
|
|
|
1.4 |
|
|
Actuarial losses (gains) |
|
|
25.9 |
|
|
|
20.4 |
|
|
|
3.0 |
|
|
|
(0.6 |
) |
|
Benefits paid |
|
|
(32.2 |
) |
|
|
(37.3 |
) |
|
|
(2.9 |
) |
|
|
(2.9 |
) |
|
Benefit obligation, end of year (1) |
|
|
483.3 |
|
|
|
472.5 |
|
|
|
33.0 |
|
|
|
31.7 |
|
|
Change in plan assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets, beginning of period |
|
|
487.6 |
|
|
|
450.7 |
|
|
|
— |
|
|
|
— |
|
|
Actual return on plan assets |
|
|
55.3 |
|
|
|
64.2 |
|
|
|
— |
|
|
|
— |
|
|
Contributions |
|
|
— |
|
|
|
10.0 |
|
|
|
2.9 |
|
|
|
2.9 |
|
|
Benefits paid |
|
|
(32.2 |
) |
|
|
(37.3 |
) |
|
|
(2.9 |
) |
|
|
(2.9 |
) |
|
Fair value of plan assets, end of year |
|
|
510.7 |
|
|
|
487.6 |
|
|
|
— |
|
|
|
— |
|
|
Funded status of the plans |
|
$ |
27.4 |
|
|
$ |
15.1 |
|
|
$ |
(33.0 |
) |
|
$ |
(31.7 |
) |
|
| Components of Net Periodic Pension Cost |
The components of total net periodic pension cost are as follows:
|
YEARS ENDED DECEMBER 31 |
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest cost |
|
$ |
18.3 |
|
|
$ |
21.3 |
|
|
$ |
19.8 |
|
|
Expected return on plan assets |
|
|
(22.2 |
) |
|
|
(23.4 |
) |
|
|
(20.6 |
) |
|
Recognized net actuarial loss |
|
|
5.8 |
|
|
|
11.3 |
|
|
|
9.6 |
|
|
Net periodic pension cost |
|
$ |
1.9 |
|
|
$ |
9.2 |
|
|
$ |
8.8 |
|
|
| Accumulated Other Comprehensive (Income) Loss Related to Postretirement Benefit Plans |
The following table reflects the total amounts recognized in accumulated other comprehensive income relating to the defined benefit pension plans as of December 31, 2020 and 2019.
|
DECEMBER 31 |
|
2020 |
|
|
2019 |
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
Net actuarial loss |
|
$ |
67.4 |
|
|
$ |
77.3 |
|
|
| Schedule of Expected Benefit Payments |
|
YEARS ENDED DECEMBER 31 |
|
2021 |
|
|
2022 |
|
|
2023 |
|
|
2024 |
|
|
2025 |
|
|
2026-2030 |
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qualified pension plan |
|
$ |
39.4 |
|
|
$ |
38.1 |
|
|
$ |
37.5 |
|
|
$ |
35.8 |
|
|
$ |
34.2 |
|
|
$ |
152.4 |
|
|
Non-qualified pension plan |
|
$ |
2.9 |
|
|
$ |
2.9 |
|
|
$ |
2.7 |
|
|
$ |
2.6 |
|
|
$ |
2.5 |
|
|
$ |
11.1 |
|
|
| Investments Net Asset Value [Member] |
|
| Retirement Plans [Line Items] |
|
| Schedule of Fair Values of Investments |
The fair values of these investments are as follows:
|
DECEMBER 31 |
|
2020 |
|
|
2019 |
|
|
Fixed maturities |
|
$ |
414.4 |
|
|
$ |
394.3 |
|
|
Equity securities |
|
|
52.7 |
|
|
|
51.7 |
|
|
Total investments carried at NAV |
|
$ |
467.1 |
|
|
$ |
446.0 |
|
|