RETIREMENT PLANS

We have an unfunded salary continuation plan covering certain directors, officers and other key members of management. We purchase life insurance policies on certain participants to provide in part for future liabilities. Cash surrender value of these policies, totaling $6.1 million and $5.9 million at December 31, 2013 and 2012, respectively, are included in other non-current assets in the company's consolidated balance sheets. Subject to certain vesting requirements, the plan provides for a benefit based on final average compensation, which becomes payable on the employee's death or upon attaining age 65, if retired. The plan was closed to new participants effective February 3, 2011. We have measured the plan assets and obligations of our salary continuation plan as of our fiscal year end for all periods presented.

The following table summarizes the changes in plan benefit obligations:



Year Ended December 31,	2013			2012
(Thousands of dollars)
Change in benefit obligation
Beginning benefit obligation	$	29,075		$	25,490
Service cost	230			249
Interest cost	1,159			1,242
Actuarial (gain) loss	(3,526		)	3,262
Curtailment	(521		)	—
Benefit payments	(1,272		)	(1,168		)
Ending benefit obligation	$	25,145		$	29,075



Year Ended December 31,	2013			2012
(Thousands of dollars)

Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—
Employer contribution	1,272			1,168
Benefit payments	(1,272		)	(1,168		)
Fair value of plan assets at end of year	$	—		$	—

Funded Status	$	(25,145	)	$	(29,075	)

Amounts recognized in the consolidated balance sheets consist of:
Accrued liabilities	$	(1,461	)	$	(1,389	)
Other non-current liabilities	(23,684		)	(27,686		)
Net amount recognized	$	(25,145	)	$	(29,075	)

Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	$	3,713		$	8,190
Prior service cost	(1		)	(1		)
Net amount recognized, before tax effect	$	3,712		$	8,189

Weighted average assumptions used to determine benefit obligations:
Discount rate	4.8		%	4.0		%
Rate of compensation increase	3.0		%	3.0		%

Components of net periodic pension cost are described in the following table:



Year Ended December 31,	2013			2012			2011
(Thousands of dollars)
Components of net periodic pension cost:
Service cost	$	230		$	249		$	295
Interest cost	1,159			1,242			1,294
Amortization of actuarial loss	430			268			22
Net periodic pension cost	$	1,819		$	1,759		$	1,611

Weighted average assumptions used to determine net periodic pension cost:
Discount rate	4.0		%	5.0		%	6.0		%
Rate of compensation increase	3.0		%	3.0		%	3.0		%

The increase in the 2013 net periodic pension cost compared to the 2012 cost and the increase in the 2012 cost compared to the 2011 cost were primarily due to increases in amortization of actuarial losses.

Benefit payments during the next ten years, which reflect applicable future service, are as follows:



Year Ended December 31,	Amount
(Thousands of dollars)

2014	$	1,496
2015	$	1,514
2016	$	1,499
2017	$	1,180
2018	$	1,455
Years 2019 to 2023	$	7,025

The following is an estimate of the components of net periodic pension cost in 2014:



Estimated Year Ended December 31,	2014
(Thousands of dollars)

Service cost	$	84
Interest cost	1,171
Amortization of actuarial loss	119
Estimated 2014 net periodic pension cost	$	1,374

Other Retirement Plans

We also have a contributory employee retirement savings plan (a 401k plan) covering substantially all of our employees. The employer contribution totaled $2.1 million, $1.8 million and $1.8 million for the three years ended December 31, 2013, 2012 and 2011, respectively.

Pursuant to the deferred compensation provision of his 1994 Employment Agreement ("1994 Agreement"), Mr. Louis L. Borick, Founding Chairman and a Director of the company until his passing in November 2011, was paid an annual amount of $1.0 million in 26 equal payments for five years through 2009. Beginning in 2010, the 1994 Agreement called for this annual amount to be reduced to $0.5 million.