We maintain three defined benefit pension plans: one for United Kingdom employees, one for German employees, and one for Philippine employees. We deposit funds for these plans, consistent with the requirements of local law, with investment management companies, insurance companies, banks or trustees and accrue for the unfunded portion of the obligations. The measurement date for the projected benefit obligations and the plan assets is March 31. The United Kingdom and German plans have been curtailed. As such, the plans are closed to new entrants and no credit is provided for additional periods of service.

The net periodic pension expense includes the following components (in thousands):

	Net Amount Recognized (in thousands):
			Year Ended March 31,
			2015		2014
Change in projected benefit obligation
	Projected benefit obligation at the beginning of the year		$	44,558	$	41,459
		Service cost		104		108
		Interest cost		1,803		1,886
		Actuarial (gain) loss		9,036		(636)
		Benefits paid		(1,467)		(1,498)
		Foreign currency adjustment		(6,688)		3,239
	Projected benefit obligation at year end		$	47,346	$	44,558

Change in plan assets
	Fair value of plan assets at the beginning of the year		$	29,013	$	25,129
		Actual return on plan assets		4,306		1,711
		Employer contribution		1,089		1,022
		Benefits paid from assets		(970)		(1,030)
		Foreign currency adjustment		(3,324)		2,181
	Plan assets at fair value at year end		$	30,114	$	29,013
	Unfunded status of the plan at year end		$	(17,232)	$	(15,545)

Pension liability recognized on the balance sheet due after one year			$	17,232	$	15,545

Plans with projected benefit obligation and accumulated benefit obligation in excess of plan assets:
		Projected benefit obligation at year end	$	47,346	$	44,558
		Accumulated benefit obligation at year end	$	46,695	$	43,910
		Plan assets at fair value at year end	$	30,114	$	29,013

Amounts recognized in accumulated other comprehensive income (loss):
		Unrecognized actuarial loss, before tax	$	(12,354)	$	(7,743)
Amount recognized as component of stockholders’ equity – pretax			$	(12,354)	$	(7,743)
Accumulated benefit obligation at year end			$	46,695	$	43,910

We report and measure the plan assets of our defined benefit pension plans at fair value. The table below sets forth the fair value of our plan assets as of March 31, 2015 and 2014, using the same three-level hierarchy of fair-value inputs described in Note 4, “Fair Value” (in thousands):


	March 31, 2015								March 31, 2014
Description	Level 1		Level 2		Level 3			Total	Level 1		Level 2		Level 3			Total
Cash and cash funds	$	2,588	$	-	$	-	$	2,588	$	1,523	$	-	$	-	$	1,523
Currency contracts		-		(30)		-		(30)		-		(4)		-		(4)
Equity		19,997		652		7		20,656		20,946		439		2		21,387
Fixed interest		861		5,887		1		6,749		749		5,323		1		6,073
Mortgage backed securities		-		16		-		16		-		15		-		15
Swaps and other		2		133		-		135		1		18		-		19
Total	$	23,448	$	6,658	$	8	$	30,114	$	23,219	$	5,791	$	3	$	29,013

The expected long term rate of return on assets is a weighted average of the returns expected for the underlying broad asset classes. The expected returns for each asset class are estimated in light of the market conditions on the accounting date and the past performance of the asset classes generally.

The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost in fiscal 2016 includes amortization of actuarial loss of $189,000. Approximately 68% of the accrued pension liability relates to the German plan and 31% to the United Kingdom plan. The accrued pension liability related to the Philippine plan is immaterial.

The investment policies and strategies for the United Kingdom plan assets are determined by the respective plan's trustees in consultation with independent investment consultants and the employer. Our practice is to fund these plans in amounts at least sufficient to meet the minimum requirements of local laws and regulations. The trustees are aware that the nature of the liabilities of the plans will evolve as the age profile and life expectancy of the membership changes. These changing liability profiles lead to consultations about the appropriate balance of investment assets to be used by the plans (equity, debt, other), as well as timescales, within which required adjustments should be implemented. The plan assets in the United Kingdom are held in pooled investment funds operated by Fidelity Worldwide Investments. Our plan assets do not include direct holdings of our securities. The investment managers have discretion to vary the balance of investments of the scheme according to prevailing investment conditions and the trustees regularly monitor all investment decisions affecting the scheme and the overall investment performance. At March 31, 2015, approximately 79% of the assets of the United Kingdom fund were invested in equity securities while 21% were in debt securities. The investments in debt securities are made in government instruments and investment grade corporate bonds. The target allocation of the United Kingdom plan assets that we control is 75% equity securities and 25% fixed income instruments. This objective has not been achieved due to the relative investment return of the two asset classes.

The German plan was held by a separate legal entity. As of March 31, 2015, the German defined benefit plan was completely unfunded.

For our Philippine plan, the local law requires us to appoint a trustee for the fund. We have appointed Bank of the Philippine Islands, or BPI, as the trustee of the plan. The plan assets are fully invested with BPI. The main role of the trustee is to manage the fund according to the mandate given by the retirement committee of our Philippine entity and to pay the covered/eligible employees in accordance with the plan. BPI Asset Management and Trust Group, an independent unit of BPI, provides investment management services to the trustee. At March 31, 2015, approximately 62% of the assets of the fund were invested in fixed income securities, 33% in equity securities and 5% in cash. The target allocation for the Philippine fund was 75% to fixed income securities, 20% to equities and 5% to cash and cash equivalents.

We expect to make contributions to the plans of approximately $994,000 in the fiscal year ending March 31, 2016. This contribution is primary contractual.

We expect to pay benefits in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter of approximately the following (in thousands):