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EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Notes) | 12 Months Ended
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Dec. 31, 2018
Defined Benefit Plan [Abstract] |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Retirement and Other Postretirement Benefit Plans Retirement Plans - We have a defined benefit pension plan covering certain employees and former employees hired before January 1, 2005. Employees hired after December 31, 2004, and employees who accepted a one-time opportunity to opt out of our defined benefit pension plan historically were covered by our Profit Sharing Plan, which was merged into our 401(k) Plan effective January 1, 2019. In addition, we have a supplemental executive retirement plan for the benefit of certain officers. No new participants in our supplemental executive retirement plan have been approved since 2005, and effective January 2014, the plan was formally closed to new participants. We fund our retirement costs at a level needed to maintain or exceed the minimum funding levels required by the Employee Retirement Income Security Act of 1974, as amended, and the Pension Protection Act of 2006. Other Postretirement Benefit Plans - We sponsor health and welfare plans that provide postretirement medical and life insurance benefits to employees hired prior to 2017 who retire with at least five years of service. The postretirement medical plan is contributory with retiree contributions adjusted periodically and contains other cost-sharing features such as deductibles and coinsurance. Obligations and Funded Status - The following table sets forth our retirement and other postretirement benefit plans benefit obligations and fair value of plan assets for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | December 31, |  | December 31,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Change in benefit obligation |  | (Thousands of dollars)
Benefit obligation, beginning of period |  | $ | 481,615 |  |  | $ | 428,386 |  |  | $ | 57,938 |  |  | $ | 54,823 |
Service cost |  | 7,339 |  |  | 6,896 |  |  | 845 |  |  | 662 |
Interest cost |  | 17,659 |  |  | 18,645 |  |  | 2,108 |  |  | 2,261 |
Plan participants’ contributions |  | — |  |  | — |  |  | 1,050 |  |  | 901 |
Actuarial loss (gain) |  | (24,345 | ) |  | 41,678 |  |  | (10,233 | ) |  | 3,456 |
Benefits paid |  | (15,274 | ) |  | (13,990 | ) |  | (4,868 | ) |  | (4,165 | )
Benefit obligation, end of period |  | 466,994 |  |  | 481,615 |  |  | 46,840 |  |  | 57,938 |
Change in plan assets |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets, beginning of period |  | 306,008 |  |  | 261,671 |  |  | 34,133 |  |  | 29,550 |
Actual return on plan assets |  | (12,350 | ) |  | 50,827 |  |  | (998 | ) |  | 5,385 |
Employer contributions |  | 12,300 |  |  | 7,500 |  |  | 1,100 |  |  | 2,000 |
Plan participants’ contributions |  | — |  |  | — |  |  | 1,050 |  |  | 901 |
Benefits paid |  | (15,274 | ) |  | (13,990 | ) |  | (4,485 | ) |  | (3,703 | )
Fair value of plan assets, end of period |  | 290,684 |  |  | 306,008 |  |  | 30,800 |  |  | 34,133 |
Balance at December 31 |  | $ | (176,310 | ) |  | $ | (175,607 | ) |  | $ | (16,040 | ) |  | $ | (23,805 | )
Current liabilities |  | $ | (4,514 | ) |  | $ | (4,544 | ) |  | $ | — |  |  | $ | — |
Noncurrent liabilities |  | (171,796 | ) |  | (171,063 | ) |  | (16,040 | ) |  | (23,805 | )
Balance at December 31 |  | $ | (176,310 | ) |  | $ | (175,607 | ) |  | $ | (16,040 | ) |  | $ | (23,805 | )
The table above includes the supplemental executive retirement plan obligation. ONEOK has investments included in other assets on the Consolidated Balance Sheets, which totaled $87.7 million and $93.2 million at December 31, 2018 and 2017, respectively, for the purpose of funding the obligation. These assets are not assets of the supplemental executive retirement plan and are excluded from the table above. The accumulated benefit obligation for our retirement plans was $434.4 million and $456.6 million at December 31, 2018 and 2017, respectively. The actuarial gains and losses impacting our benefit obligations for our retirement and other postretirement benefit plans are due primarily to changes in the discount rate assumptions discussed in the “Actuarial Assumptions” section below. Components of Net Periodic Benefit Cost - The following table sets forth the components of net periodic benefit cost for our retirement and other postretirement benefit plans for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | Years Ended December 31, |  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
|  | (Thousands of dollars)
Components of net periodic benefit cost |  |  |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 7,339 |  |  | $ | 6,896 |  |  | $ | 6,501 |  |  | $ | 845 |  |  | $ | 662 |  |  | $ | 596 |
Interest cost |  | 17,659 |  |  | 18,645 |  |  | 19,820 |  |  | 2,108 |  |  | 2,261 |  |  | 2,404 |
Expected return on plan assets |  | (23,917 | ) |  | (21,376 | ) |  | (20,348 | ) |  | (2,690 | ) |  | (2,257 | ) |  | (2,124 | )
Amortization of prior service credit |  | — |  |  | — |  |  | — |  |  | (1,662 | ) |  | (1,662 | ) |  | (1,662 | )
Amortization of net loss |  | 17,060 |  |  | 13,586 |  |  | 10,966 |  |  | 1,338 |  |  | 1,679 |  |  | 1,046 |
Net periodic benefit cost |  | $ | 18,141 |  |  | $ | 17,751 |  |  | $ | 16,939 |  |  | $ | (61 | ) |  | $ | 683 |  |  | $ | 260 |
Other Comprehensive Income (Loss) - The following table sets forth the amounts recognized in other comprehensive income (loss) related to our retirement benefits and other postretirement benefits for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | Years Ended December 31, |  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
|  | (Thousands of dollars)
Net gain (loss) arising during the period |  | $ | (16,351 | ) |  | $ | (16,572 | ) |  | $ | (33,043 | ) |  | $ | 6,545 |  |  | $ | (328 | ) |  | $ | (5,128 | )
Amortization of prior service credit |  | — |  |  | — |  |  | — |  |  | (1,662 | ) |  | (1,662 | ) |  | (1,662 | )
Amortization of net loss |  | 17,060 |  |  | 13,586 |  |  | 10,966 |  |  | 1,338 |  |  | 1,679 |  |  | 1,046 |
Deferred income taxes (a) |  | (18,928 | ) |  | (960 | ) |  | 8,831 |  |  | (2,831 | ) |  | 82 |  |  | 2,297 |
Total recognized in other comprehensive income (loss) |  | $ | (18,219 | ) |  | $ | (3,946 | ) |  | $ | (13,246 | ) |  | $ | 3,390 |  |  | $ | (229 | ) |  | $ | (3,447 | )
(a) - Year ended December 31, 2018, includes the impact of adopting ASU 2018-02. The table below sets forth the amounts in accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit expense for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | December 31, |  | December 31,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
|  | (Thousands of dollars)
Prior service credit |  | $ | — |  |  | $ | — |  |  | $ | 227 |  |  | $ | 1,889 |
Accumulated loss |  | (160,212 | ) |  | (160,921 | ) |  | (5,108 | ) |  | (12,991 | )
Accumulated other comprehensive loss |  | (160,212 | ) |  | (160,921 | ) |  | (4,881 | ) |  | (11,102 | )
Deferred income taxes |  | 43,286 |  |  | 62,214 |  |  | 1,567 |  |  | 4,398 |
Accumulated other comprehensive loss, net of tax |  | $ | (116,926 | ) |  | $ | (98,707 | ) |  | $ | (3,314 | ) |  | $ | (6,704 | )
Actuarial Assumptions - The following table sets forth the weighted-average assumptions used to determine benefit obligations for retirement and other postretirement benefits for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | December 31, |  | December 31,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Discount rate |  | 4.50% |  | 3.75% |  | 4.50% |  | 3.75%
Compensation increase rate |  | 3.65% |  | 3.00% |  | N/A |  | N/A
The following table sets forth the weighted-average assumptions used to determine net periodic benefit costs for the periods indicated:
|  | Years Ended December 31,
|  | 2018 |  | 2017 |  | 2016
Discount rate - retirement plans |  | 3.75% |  | 4.50% |  | 5.25%
Discount rate - other postretirement plans |  | 3.75% |  | 4.25% |  | 5.00%
Expected long-term return on plan assets |  | 8.00% |  | 7.75% |  | 7.75%
Compensation increase rate |  | 3.00% |  | 3.10% |  | 3.10%
We determine our overall expected long-term rate of return on plan assets based on our review of historical returns and economic growth models. We determine our discount rates annually. We estimate our discount rate based upon a comparison of the expected cash flows associated with our future payments under our retirement and other postretirement obligations to a hypothetical bond portfolio created using high-quality bonds that closely match expected cash flows. Bond portfolios are developed by selecting a bond for each of the next 60 years based on the maturity dates of the bonds. Bonds selected to be included in the portfolios are only those rated by Moody’s as AA- or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds. Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated:
|  | 2018 |  | 2017
Health care cost-trend rate assumed for next year |  | 6.50% |  | 7.00%
Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate) |  | 5.00% |  | 5.00%
Year that the rate reaches the ultimate trend rate |  | 2022 |  | 2022
Plan Assets - Our investment strategy is to invest plan assets in accordance with sound investment practices that emphasize long-term fundamentals. The goal of this strategy is to maximize investment returns while managing risk in order to meet the plan’s current and projected financial obligations. The investment policy follows a glide path approach toward liability-driven investing that shifts a higher portfolio weighting to fixed income as the plan's funded status increases. The purpose of liability-driven investing is to structure the asset portfolio to more closely resemble the pension liability and thereby more effectively hedge against changes in the liability. The plan’s current investments include a diverse blend of various domestic and international equities, investments in various classes of debt securities, real estate and hedge funds. The target allocation for the assets of our retirement plan as of December 31, 2018, is as follows:
Domestic and international equities |  | 42 | %
Long duration fixed income |  | 30 | %
Return-seeking credit |  | 11 | %
Hedge funds |  | 10 | %
Real estate funds |  | 7 | %
Total |  | 100 | %
As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. All investment managers for the plan are subject to certain restrictions on the securities they purchase and, with the exception of indexing purposes, are prohibited from owning our stock. The following tables set forth the plan assets by fair value category as of the measurement date for our defined benefit pension and other postretirement benefit plans:
|  | Pension Benefits
|  | December 31, 2018
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Subtotal |  | Measured at NAV (d) |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities (a) |  | $ | 58 |  |  | $ | — |  |  | $ | — |  |  | $ | 58 |  |  | $ | 116,790 |  |  | $ | 116,848 |
Real estate funds |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,569 |  |  | 20,569 |
Government obligations |  | — |  |  | — |  |  | — |  |  | — |  |  | 48,913 |  |  | 48,913 |
Corporate obligations (b) |  | — |  |  | — |  |  | — |  |  | — |  |  | 69,377 |  |  | 69,377 |
Common/collective trusts |  | — |  |  | 3,961 |  |  | — |  |  | 3,961 |  |  | — |  |  | 3,961 |
Cash |  | 95 |  |  | — |  |  | — |  |  | 95 |  |  | — |  |  | 95 |
Other investments (c) |  | — |  |  | — |  |  | — |  |  | — |  |  | 30,921 |  |  | 30,921 |
Fair value of plan assets |  | $ | 153 |  |  | $ | 3,961 |  |  | $ | — |  |  | $ | 4,114 |  |  | $ | 286,570 |  |  | $ | 290,684 |
(a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category represents alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no unfunded capital commitments. (d) - Plan asset investments measured at fair value using the net asset value per share.
|  | Pension Benefits
|  | December 31, 2017
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Subtotal |  | Measured at NAV (d) |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities (a) |  | $ | 176,347 |  |  | $ | 19,199 |  |  | $ | — |  |  | $ | 195,546 |  |  | $ | — |  |  | $ | 195,546 |
Government obligations |  | — |  |  | 19,481 |  |  | — |  |  | 19,481 |  |  | — |  |  | 19,481 |
Corporate obligations (b) |  | — |  |  | 62,981 |  |  | — |  |  | 62,981 |  |  | — |  |  | 62,981 |
Common/collective trusts |  | — |  |  | 6,621 |  |  | — |  |  | 6,621 |  |  | — |  |  | 6,621 |
Cash |  | 298 |  |  | — |  |  | — |  |  | 298 |  |  | — |  |  | 298 |
Other investments (c) |  | — |  |  | — |  |  | — |  |  | — |  |  | 21,081 |  |  | 21,081 |
Fair value of plan assets |  | $ | 176,645 |  |  | $ | 108,282 |  |  | $ | — |  |  | $ | 284,927 |  |  | $ | 21,081 |  |  | $ | 306,008 |
(a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category represents alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no unfunded capital commitments. (d) - Plan asset investments measured at fair value using the net asset value per share.
|  | Other Postretirement Benefits
|  | December 31, 2018
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |
Equity securities (a) |  | $ | 1,792 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,792 |
Money market funds |  | 1 |  |  | 413 |  |  | — |  |  | 414 |
Insurance and group annuity contracts |  | — |  |  | 28,594 |  |  | — |  |  | 28,594 |
Fair value of plan assets |  | $ | 1,793 |  |  | $ | 29,007 |  |  | $ | — |  |  | $ | 30,800 |
(a) - This category represents securities of the respective market sector from diverse industries.
|  | Other Postretirement Benefits
|  | December 31, 2017
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |
Equity securities (a) |  | $ | 1,951 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,951 |
Money market funds |  | — |  |  | 1,515 |  |  | — |  |  | 1,515 |
Insurance and group annuity contracts |  | — |  |  | 30,667 |  |  | — |  |  | 30,667 |
Fair value of plan assets |  | $ | 1,951 |  |  | $ | 32,182 |  |  | $ | — |  |  | $ | 34,133 |
(a) - This category represents securities of the respective market sector from diverse industries. Contributions - During 2018, we made $12.3 million in contributions to our defined benefit pension plan and $1.1 million in contributions to our other postretirement benefit plans. We contributed $14.5 million to our defined benefit pension plan in January 2019 and expect to make $2.0 million in contributions to our other postretirement plans in 2019. Pension and Other Postretirement Benefit Payments - Benefit payments for our defined benefit pension and other postretirement benefit plans for the period ending December 31, 2018, were $15.3 million and $4.9 million, respectively. The following table sets forth the defined benefit pension and other postretirement benefits payments expected to be paid in 2019 through 2028:
|  | Pension Benefits |  | Other Postretirement Benefits
Benefits to be paid in: |  | (Thousands of dollars)
2019 |  | $ | 17,014 |  |  | $ | 3,114 |
2020 |  | $ | 18,164 |  |  | $ | 3,237 |
2021 |  | $ | 19,215 |  |  | $ | 3,230 |
2022 |  | $ | 20,279 |  |  | $ | 3,346 |
2023 |  | $ | 21,362 |  |  | $ | 3,315 |
2024 through 2028 |  | $ | 122,012 |  |  | $ | 16,178 |
The expected benefits to be paid are based on the same assumptions used to measure our benefit obligation at December 31, 2018, and include estimated future employee service. Other Employee Benefit Plans 401(k) Plan - We have a 401(k) Plan covering all employees, and employee contributions are discretionary. We match 100 percent of employee contributions up to 6 percent of each participant’s eligible compensation, subject to certain limits. Our contributions made to the plan were $15.1 million, $13.7 million and $11.9 million in 2018, 2017 and 2016, respectively. Profit Sharing Plan - We historically maintained a profit-sharing plan (Profit Sharing Plan) for all employees hired after December 31, 2004. Employees who were employed prior to January 1, 2005, were given a one-time opportunity to make an irrevocable election to participate in the Profit Sharing Plan and not accrue any additional benefits under our defined benefit pension plan after December 31, 2004. The Profit Sharing Plan was merged into our 401(k) Plan as of January 1, 2019, and ceased to exist as a separate plan. We plan to make a contribution to the 401(k) Plan each quarter equal to 1 percent of each profit-sharing participant’s eligible compensation during the quarter. Additional discretionary employer profit-sharing contributions may be made at the end of each year. Our contributions made to our former Profit Sharing Plan were $12.9 million, $7.4 million and $8.2 million in 2018, 2017 and 2016, respectively. Nonqualified Deferred Compensation Plan - The Nonqualified Deferred Compensation Plan provides select employees, as approved by our Chief Executive Officer, with the option to defer portions of their compensation and provides nonqualified deferred compensation benefits that are not available due to limitations on employer and employee contributions to qualified defined contribution plans under the federal tax laws. The plan also provides benefits in excess of applicable tax limits for certain participants in the defined benefit pension plan who are not participants in the supplemental executive retirement plan. Our contributions to the plan were not material in 2018, 2017 and 2016.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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