NOTE 18 - 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 $8.1 million and $8.0 at December 31, 2018 and 2017, 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.

The following table summarizes the changes in plan assets and plan benefit obligations:


Year Ended December 31,	2018			2017
(Dollars in thousands)
Change in benefit obligation
Beginning benefit obligation	$	29,759		$	27,612
Interest cost		1,086			1,189
Actuarial (gain) loss		(2,486	)		2,300
Benefit payments		(1,406	)		(1,342	)

Ending benefit obligation	$	26,953		$	29,759


Year Ended December 31,	2018			2017
(Dollars in thousands)
Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—
Employer contribution		1,406			1,342
Benefit payments		(1,406	)		(1,342	)

Fair value of plan assets at end of year	$	—		$	—

Funded status	$	(26,953	)	$	(29,759	)

Amounts recognized in the consolidated balance sheets consist of:
Accrued expenses		(1,392	)		(1,407	)
Other non-current liabilities		(25,561	)		(28,352	)

Net amount recognized	$	(26,953	)	$	(29,759	)

Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	$	4,799		$	7,722
Prior service cost		(1	)		(1	)

Net amount recognized, before tax effect	$	4,798		$	7,721

Weighted average assumptions used to determine benefit obligations:
Discount rate		4.4	%		3.7	%
Rate of compensation increase		3.0	%		3.0	%

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


Year Ended December 31,	2018			2017			2016
(Dollars in thousands)
Components of net periodic pension cost:
Interest cost		1,086			1,189			1,216
Amortization of actuarial loss		438			369			335

Net periodic pension cost		1,524			1,558		$	1,551

Weighted average assumptions used to determine net periodic pension cost:
Discount rate		3.7	%		4.4	%		4.4	%
Rate of compensation increase		3.0	%		3.0	%		3.0	%

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


Year Ended December 31,	Amount
(Dollars in thousands)
2019	$	1,422
2020	$	1,484
2021	$	1,457
2022	$	1,495
2023	$	1,472
Years 2024 to 2028	$	8,448

The following is an estimate of the components of net periodic pension cost in 2019:


Estimated Year Ended December 31,	2019
(Dollars in thousands)
Interest cost		1,144
Amortization of actuarial loss		209

Estimated 2019 net periodic pension cost	$	1,353

Other Retirement Plans

We also contribute to employee retirement savings plans in the U.S. and Mexico that cover substantially all of our employees in those countries. The employer contribution totaled $1.8 million, $1.7 million and $1.4 million for the three years ended December 31, 2018, 2017 and 2016, respectively.