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 $6.9 million and $6.3 million at December 31, 2015 and 2014, 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,	2015			2014
(Thousands of dollars)
Change in benefit obligation
Beginning benefit obligation	$	30,047		$	25,145
Service cost	44			84
Interest cost	1,230			1,171
Actuarial loss (gain)	(1,372		)	5,014
Benefit payments	(1,550		)	(1,367		)
Ending benefit obligation	$	28,399		$	30,047



Year Ended December 31,	2015			2014
(Thousands of dollars)

Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—
Employer contribution	1,550			1,367
Benefit payments	(1,550		)	(1,367		)
Fair value of plan assets at end of year	$	—		$	—

Funded Status	$	(28,399	)	$	(30,047	)

Amounts recognized in the consolidated balance sheets consist of:
Accrued liabilities	(1,524		)	(1,507		)
Other non-current liabilities	(26,875		)	(28,540		)
Net amount recognized	$	(28,399	)	$	(30,047	)

Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	$	6,492		$	8,399
Prior service cost	(1		)	(1		)
Net amount recognized, before tax effect	$	6,491		$	8,398

Weighted average assumptions used to determine benefit obligations:
Discount rate	4.4		%	4.2		%
Rate of compensation increase	3.0		%	3.0		%

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



Year Ended December 31,	2015			2014			2013
(Thousands of dollars)
Components of net periodic pension cost:
Service cost	$	44		$	84		$	230
Interest cost	1,230			1,171			1,159
Amortization of actuarial loss	535			328			430
Net periodic pension cost	$	1,809		$	1,583		$	1,819

Weighted average assumptions used to determine net periodic pension cost:
Discount rate	4.2		%	4.8		%	4.0		%
Rate of compensation increase	3.0		%	3.0		%	3.0		%

The increase in the 2015 net periodic pension cost compared to the 2014 cost was primarily due to increased amortization of actuarial losses offset by decreased service cost from terminations and retirements. The decrease in the 2014 net periodic pension cost compared to the 2013 cost was primarily due to decreased service cost from terminations and retirements, as well as decreased 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)

2016	$	1,557
2017	$	1,243
2018	$	1,463
2019	$	1,432
2020	$	1,480
Years 2021 to 2025	$	7,711

The following is an estimate of the components of net periodic pension cost in 2016:



Estimated Year Ended December 31,	2016
(Thousands of dollars)

Service cost	$	—
Interest cost	1,216
Amortization of actuarial loss	336
Estimated 2016 net periodic pension cost	$	1,552

Other Retirement Plans

We also contribute to employee retirement savings plans in the US and Mexico that cover substantially all of our employees. The employer contribution totaled $1.5 million, $2.0 million and $2.1 million for the three years ended December 31, 2015, 2014 and 2013, respectively.