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PENSIONS (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Schedule of employer contributions to defined contributions
The total contributions to our defined contribution scheme were as follows:

(in thousands of $)
2016

 
2015

 
2014

Employers' contributions
1,324

 
1,035

 
684
Components of net periodic benefit cost
The components of net periodic benefit costs are as follows:
(in thousands of $)
2016

 
2015

 
2014

Service cost
302

 
379

 
369

Interest cost
2,051

 
2,042

 
2,359

Expected return on plan assets
(806
)
 
(946
)
 
(984
)
Recognized actuarial loss
1,060

 
1,195

 
998

Net periodic benefit cost
2,607

 
2,670

 
2,742
Reconciliation of benefit obligation
The change in benefit obligation and plan assets and reconciliation of funded status as of December 31 are as follows:
(in thousands of $)
2016

 
2015

Reconciliation of benefit obligation:
 
 
 
Benefit obligation at January 1
49,473

 
53,166

Service cost
302

 
379

Interest cost
2,051

 
2,042

Actuarial loss (gain)
3,547

 
(2,547
)
Foreign currency exchange rate changes
(1,887
)
 
(509
)
Benefit payments
(3,110
)
 
(3,058
)
Benefit obligation at December 31
50,376

 
49,473
Reconciliation of fair value of plan assets
The accumulated benefit obligation at December 31, 2016 and 2015 was $49.1 million and $48.5 million, respectively.
 (in thousands of $)
2016

 
2015

Reconciliation of fair value of plan assets:
 
 
 
Fair value of plan assets at January 1
13,194

 
14,496

Actual return on plan assets
1,994

 
(155
)
Employer contributions
2,342

 
2,411

Foreign currency exchange rate changes
(1,917
)
 
(500
)
Benefit payments
(3,110
)
 
(3,058
)
Fair value of plan assets at December 31
12,503

 
13,194



 (in thousands of $)
2016

 
2015

Projected benefit obligation
(50,376
)
 
(49,473
)
Fair value of plan assets
12,503

 
13,194

(Unfunded) funded status (1)
(37,873
)
 
(36,279
)

Employer contributions and benefits paid under the pension plans include $2.3 million (2015: $2.4 million) paid from employer assets for the year ended December 31, 2016.

(1) Our plans compose of two plans.
Reconciliation of funded status
The details of these plans are as follows:
 
December 31, 2016
 
December 31, 2015
 
(in thousands of $)
UK Scheme

 
Marine Scheme

 
Total

 
UK Scheme

 
Marine Scheme

 
Total

Projected benefit obligation
(10,461
)
 
(39,915
)
 
(50,376
)
 
(10,145
)
 
(39,328
)
 
(49,473
)
Fair value of plan assets
10,651

 
1,852

 
12,503

 
10,277

 
2,917

 
13,194

Funded status at end of year
190

 
(38,063
)
 
(37,873
)
 
132

 
(36,411
)
 
(36,279
)
Pensions:  
Asset allocation of retirement schemes
The fair value of our plan assets, by category, as of December 31, 2016 and 2015 were as follows:
(in thousands of $)
2016

 
2015

Equity securities
8,936

 
9,620

Debt securities
2,860

 
3,032

Cash
707

 
542

 
12,503

 
13,194
Amounts recognized in accumulated other comprehensive income
The amounts recognized in accumulated other comprehensive income consist of:
(in thousands of $)
2016

 
2015

Net actuarial loss
12,956

 
12,400

As at December 31, 2016, 2015 and 2014, our accumulated other comprehensive (loss) income balances consisted of the following components:
(in thousands of $)
2016

 
2015

 
2014

Net gain (loss) on qualifying cash flow hedging instruments, including share of affiliate
3,414

 
(192
)
 
8,672

Losses associated with pensions
(12,956
)
 
(12,400
)
 
(15,251
)
Accumulated other comprehensive loss
(9,542
)
 
(12,592
)
 
(6,579
)

The components of accumulated other comprehensive (loss) income consisted of the following:

 
Pension and post retirement benefit plan adjustments
Gains (losses) on cash flow hedges
Share of affiliates comprehensive income
Total accumulated comprehensive (loss) income
Balance at December 31, 2013
(12,731
)
(2,676
)
4,679

(10,728
)
Other comprehensive (loss) income income before reclassification
(2,520
)
3,483

(49
)
914

Amount reclassified from accumulated other comprehensive income
—

3,235

—

3,235

Net current-period other comprehensive (loss) income
(2,520
)
6,718

(49
)
4,149

Balance at December 31, 2014
(15,251
)
4,042

4,630

(6,579
)
Other comprehensive income (loss) before reclassification
2,851

—

(4,822
)
(1,971
)
Amount reclassified from accumulated other comprehensive income
—

382

—

382

Net current-period other comprehensive income
 (loss)
2,851

382

(4,822
)
(1,589
)
Transfer of additional paid in capital
—

(4,424
)
—

(4,424
)
Balance at December 31, 2015
(12,400
)
—

(192
)
(12,592
)
Other comprehensive (loss) income income before reclassification
(556
)
—

3,606

3,050

Amount reclassified from accumulated other comprehensive income
—

—

—

—

Net current-period other comprehensive (loss) income
(556
)
—

3,606

3,050

Transfer of additional paid in capital
—

—

—

—

Balance at December 31, 2016
(12,956
)
—

3,414

(9,542
)
Expected contributions to pension schemes
We are expected to make the following contributions to the schemes during the year ended December 31, 2017, as follows:
(in thousands of $)
UK scheme
 
Marine scheme

Employer contributions
370

 
1,800
Expected pension disbursements
We are expected to make the following pension disbursements as follows:
(in thousands of $)
UK scheme

 
Marine scheme

2017
284

 
3,000

2018
370

 
3,000

2019
308

 
3,000

2020
432

 
3,000

2021
493

 
3,000

2022 - 2026
2,467

 
15,000
Weighted average assumptions used
The weighted average assumptions used to determine the benefit obligation for our plans for the years ended December 31 are as follows:
 
2016

 
2015

Discount rate
3.87
%
 
4.34
%
Rate of compensation increase
2.38
%
 
2.07
%

The weighted average assumptions used to determine the net periodic benefit cost for our plans for the years ended December 31 are as follows:
 
2016

 
2015

Discount rate
4.34
%
 
3.95
%
Expected return on plan assets
6.75
%
 
6.75
%
Rate of compensation increase
2.07
%
 
2.21
%
Marine Scheme  
Pensions:  
Asset allocation of retirement schemes
The asset allocation for our Marine scheme at December 31, 2016 and 2015, by asset category are as follows:
Marine scheme
 
 
 
2016 (%)
 
2015 (%)
Equity
 
 
30-65
 
30-65
Bonds
 
 
10-50
 
10-50
Other
 
 
20-40
 
20-40
Total
 
 
100
 
100
UK Scheme  
Pensions:  
Asset allocation of retirement schemes
The asset allocation for our UK scheme at December 31, 2016 and 2015, by asset category are as follows:
UK scheme
 
 
 
2016 (%)
 
2015 (%)
Equity
 
 
75.2
 
75.7
Bonds
 
 
24.8
 
24.3
Total
 
 
100
 
100