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Pension and OPEB | 12 Months Ended
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Dec. 31, 2014
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] |
Components of Pension and Other Postretirement Benefit Plans: | NOTE 16—PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS: Pension: CONSOL Energy has non-contributory defined benefit retirement plans covering substantially all salaried and non-represented hourly employees. The benefits for these plans are based primarily on years of service and employees' pay near retirement. CONSOL Energy's qualified pension plan allows for lump-sum distributions of benefits earned up until December 31, 2005, at the employees' election. On September 30, 2014, the qualified pension plan was amended to reduce future accruals of pension benefits as of December 31, 2014. The plan amendment called for a hard freeze of the defined benefit pension plan on December 31, 2014 for employees who were under age 40 or had less than 10 years of service as of September 30, 2014. In addition, employees hired or rehired on or after October 1, 2014 are not eligible to participate in the plan; however, beginning January 1, 2015, the Company will contribute an additional 3% of eligible compensation into the 401(k) plan accounts for these affected employees. Employees who were age 40 or over and had at least 10 years of service as of September 30, 2014 will continue in the defined benefit pension plan unchanged. The modifications to the pension plan resulted in a $21,624 curtailment in the pension liability with a corresponding adjustment of $13,659 in Other Comprehensive Income, net of $7,965 in deferred taxes. Additionally, a curtailment gain of $549 was recognized with a corresponding adjustment of $347 in Other Comprehensive Income, net of $202 in deferred taxes. According to the Defined Benefit Plans Topic of the FASB Accounting Standards Codification, if the lump sum distributions made for the plan year, which for CONSOL Energy is January 1 to December 31, exceed the total of the projected service cost and interest cost for the plan year, settlement accounting is required. Lump sum payments from the pension plan exceeded this threshold during the years ended December 31, 2014 and 2013. Accordingly, CONSOL Energy recognized expense of $29,095 and $39,482 for the years ended December 31, 2014 and 2013, respectively, in Miscellaneous Operating Expense in the Consolidated Statements of Income. The settlement charges represented a pro rata portion of the net unrecognized loss based on the percentage reduction in the projected benefit obligation due to the lump sum payments. The settlement charges noted above also resulted in remeasurements of the pension plan throughout 2014 and 2013. Other Postretirement Benefit Plans: Certain subsidiaries of CONSOL Energy provide medical, prescription drug, and life insurance benefits to retired employees not covered by the Coal Industry Retiree Health Benefit Act of 1992 (the OPEB Plans). The medical plans contain certain cost sharing and containment features, such as deductibles, coinsurance, health care networks and coordination with Medicare. Also, salaried retirees contribute a target of 20% of the medical plan operating costs. Contributions may be higher, dependent on either years of service or a combination of age and years of service at retirement. Prospective annual cost increases of up to 6% will be shared by CONSOL Energy and the participants based on their age and years of service at retirement. Annual cost increases in excess of 6% will be the responsibility of the participants. The eligibility requirements to participate in these plans are as follows:
• | Represented hourly retirees are eligible to participate based upon the terms of the National Bituminous Coal Wage Agreement of 2011 or "The Coal Act."
• | For salaried or non-represented hourly retirees hired before January 1, 2007 that did not work in a corporate or operational support position, the eligibility requirement is either age 55 with 20 years of service or age 62 with 15 years of service for traditional retiree health coverage.
• | Salaried or non-represented hourly retirees hired or re-hired on or after January 1, 2007 that did not work in a corporate or operational support position receive a retiree medical spending allowance of $2,250 per year for each year of service at retirement.
• | Retirees who worked in corporate or operational support positions at retirement receive a fixed annual retiree medical contribution into a Health Reimbursement Account. The amount of the contribution is dependent on several factors, and the money in the account can be used to help pay for a commercial medical plan, Medicare Part B or Part D premiums, and other qualified medical expenses
On September 30, 2014, the plans were amended to reduce future benefits as of October 1, 2014. Salaried and non-represented hourly retirees as of September 30, 2014 will continue in the aforementioned OPEB plans, which are currently anticipated to remain unchanged, until December 31, 2019, and coverage thereafter will be eliminated. Further, effective September 30, 2014, retiree medical, prescription drug, and life insurance benefits are no longer provided to active employees. The Company elected to make cash transition payments totaling approximately $46,282 to the active employees whose retiree medical, prescription drug, and life insurance benefits were eliminated by the changes to the OPEB plans. These cash payments are not considered to be post-retirement benefits, and as such, they are not reflected in the actuarial calculations related to the OPEB plans. The amendment to the OPEB plans resulted in a $315,439 reduction in the OPEB liability with a corresponding adjustment of $199,252 in Other Comprehensive Income, net of $116,187 in deferred taxes. A curtailment gain of $35,633 was recognized in September 2014 with a corresponding adjustment of $22,508 in Other Comprehensive Income, net of $13,125 in deferred taxes. The amendment also resulted in a remeasurement of the OPEB plan at September 30, 2014. On December 5, 2013, CONSOL Energy completed the sale of its wholly-owned subsidiary Consolidation Coal Company and certain other subsidiaries to Murray Energy Corporation (the CCC Sale). As a result of the CCC Sale, the obligations for certain participants of the OPEB Plan are the primary responsibility of Murray Energy. This reduced CONSOL Energy's OPEB liability by $1,891,057 at December 31, 2013. These plan settlements resulted in adjustments of $339,318 in Other Comprehensive Income, net of $203,610 in deferred taxes at December 31, 2013. As the result of corporate staffing reductions associated with the sale, the Pension and OPEB plans also recognized curtailment gains of $374 and $39,650, respectively, for the year ended December 31, 2013. The curtailment gains resulted in adjustments of $231 and $24,515 in Other Comprehensive Income, net of $143 and $15,135 in deferred taxes for the Pension Plan and the OPEB plan, respectively, at December 31, 2013. The reconciliation of changes in the benefit obligation, plan assets and funded status of these plans at December 31, 2014 and 2013, is as follows:
|  | Pension Benefits |  | Other Postretirement Benefits
|  | at December 31, |  | at December 31,
|  | 2014 |  | 2013 |  | 2014 |  | 2013
Change in benefit obligation: |  |  |  |  |  |  |  |
Benefit obligation at beginning of period |  | $ | 812,644 |  |  | $ | 953,102 |  |  | $ | 1,021,974 |  |  | $ | 3,018,172 |
Service cost |  | 17,187 |  |  | 20,865 |  |  | 7,089 |  |  | 18,680 |
Interest cost |  | 35,363 |  |  | 36,829 |  |  | 44,177 |  |  | 111,687 |
Actuarial loss (gain) |  | 136,995 |  |  | (82,718 | ) |  | 66,695 |  |  | (73,632 | )
Plan amendments |  | — |  |  | — |  |  | (315,439 | ) |  | — |
Plan curtailments |  | (21,624 | ) |  | (6,551 | ) |  | — |  |  | — |
Plan settlements |  | (82,776 | ) |  | (86,925 | ) |  | — |  |  | (1,891,057 | )
Participant contributions |  | — |  |  | — |  |  | 1,643 |  |  | 6,150 |
Benefits and other payments |  | (27,318 | ) |  | (21,958 | ) |  | (65,180 | ) |  | (168,026 | )
Benefit obligation at end of period |  | $ | 870,471 |  |  | $ | 812,644 |  |  | $ | 760,959 |  |  | $ | 1,021,974 |
Change in plan assets: |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of period |  | $ | 768,831 |  |  | $ | 728,161 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets |  | 66,025 |  |  | 94,084 |  |  | — |  |  | — |
Company contributions |  | 26,414 |  |  | 55,469 |  |  | 63,537 |  |  | 161,876 |
Participant contributions |  | — |  |  | — |  |  | 1,643 |  |  | 6,150 |
Benefits and other payments |  | (27,318 | ) |  | (21,958 | ) |  | (65,180 | ) |  | (168,026 | )
Plan settlements |  | (82,776 | ) |  | (86,925 | ) |  | — |  |  | — |
Fair value of plan assets at end of period |  | $ | 751,176 |  |  | $ | 768,831 |  |  | $ | — |  |  | $ | — |
Funded status: |  |  |  |  |  |  |  |
Noncurrent assets |  | $ | — |  |  | $ | 9,032 |  |  | $ | — |  |  | $ | — |
Current liabilities |  | (9,339 | ) |  | (4,593 | ) |  | (57,279 | ) |  | (60,847 | )
Noncurrent liabilities |  | (109,956 | ) |  | (48,252 | ) |  | (703,680 | ) |  | (961,127 | )
Net obligation recognized |  | $ | (119,295 | ) |  | $ | (43,813 | ) |  | $ | (760,959 | ) |  | $ | (1,021,974 | )
Amounts recognized in accumulated other comprehensive income consist of: |  |  |  |  |  |  |  |
Net actuarial loss |  | $ | 334,362 |  |  | $ | 286,637 |  |  | $ | 471,085 |  |  | $ | 433,073 |
Prior service credit |  | (2,862 | ) |  | (4,629 | ) |  | (292,728 | ) |  | (34,086 | )
Net amount recognized (before tax effect) |  | $ | 331,500 |  |  | $ | 282,008 |  |  | $ | 178,357 |  |  | $ | 398,987 |
The components of net periodic benefit costs are as follows:
| Pension Benefits |  | Other Postretirement Benefits
| For the Years Ended December 31, |  | For the Years Ended December 31,
| 2014 |  | 2013 |  | 2012 |  | 2014 |  | 2013 |  | 2012
Components of net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 17,187 |  |  | $ | 20,865 |  |  | $ | 20,466 |  |  | $ | 7,089 |  |  | $ | 18,680 |  |  | $ | 18,817 |
Interest cost | 35,363 |  |  | 36,829 |  |  | 37,586 |  |  | 44,177 |  |  | 111,687 |  |  | 135,695 |
Expected return on plan assets | (51,400 | ) |  | (51,814 | ) |  | (46,157 | ) |  | — |  |  | — |  |  | — |
Amortization of prior service (credits) | (1,217 | ) |  | (1,611 | ) |  | (1,630 | ) |  | (21,163 | ) |  | (30,552 | ) |  | (51,828 | )
Recognized net actuarial loss | 23,927 |  |  | 37,853 |  |  | 47,834 |  |  | 28,682 |  |  | 66,417 |  |  | 80,875 |
Curtailment gain | (549 | ) |  | (374 | ) |  | — |  |  | (35,633 | ) |  | (39,650 | ) |  | — |
Settlement loss (gain) | 29,095 |  |  | 39,482 |  |  | — |  |  | — |  |  | (1,348,129 | ) |  | — |
Net periodic benefit cost (credit) | $ | 52,406 |  |  | $ | 81,230 |  |  | $ | 58,099 |  |  | $ | 23,152 |  |  | $ | (1,221,547 | ) |  | $ | 183,559 |
Expenses (income) attributable to discontinued operations included in the net periodic cost (credit) above (including settlements and curtailments associated with the CCC Sale) were $8,231, and $11,587 for the years ended December 31, 2013 and 2012, respectively, for the Pension Plans and were $(1,293,975), and $101,418 for the years ended December 31, 2013 and 2012, respectively, for the OPEB Plans. There were no expenses attributable to discontinued operations in 2014. Amounts included in accumulated other comprehensive loss which are expected to be recognized in 2015 net periodic benefit costs:
|  |  |  | Other
|  | Pension |  | Postretirement
|  | Benefits |  | Benefits
Prior service credit recognition |  | $ | (704 | ) |  | $ | (58,546 | )
Actuarial loss recognition |  | $ | 27,760 |  |  | $ | 35,705 |
CONSOL Energy utilizes a corridor approach to amortize actuarial gains and losses that have been accumulated under the Pension Plan. Cumulative gains and losses that are in excess of 10% of the greater of either the projected benefit obligation (PBO) or the market-related value of plan assets are amortized over the expected average remaining future service of the current active membership for the Pension plan. CONSOL Energy also utilizes a corridor approach to amortize actuarial gains and losses that have been accumulated under the OPEB Plan. Cumulative gains and losses that are in excess of 10% of the greater of either the accumulated postretirement benefit obligation (APBO) or the market-related value of plan assets are amortized over the average future remaining lifetime of the current inactive population for the UMWA OPEB plan, and over the period of time remaining until the plan sunsets for the Salaried and P&M OPEB plans. The following table provides information related to pension plans with an accumulated benefit obligation in excess of plan assets:
|  | As of December 31,
|  | 2014 |  | 2013
Projected benefit obligation |  | $ | 870,471 |  |  | $ | 52,845 |
Accumulated benefit obligation |  | $ | 834,811 |  |  | $ | 50,820 |
Fair value of plan assets |  | $ | 751,176 |  |  | $ | — |
Assumptions: The weighted-average assumptions used to determine benefit obligations are as follows:
|  | Pension Benefits |  | Other Postretirement Benefits
|  | For the Year Ended |  | For the Year Ended
|  | December 31, |  | December 31,
|  | 2014 |  | 2013 |  | 2014 |  | 2013
Discount rate |  | 4.07 | % |  | 4.87 | % |  | 3.80 | % |  | 4.88 | %
Rate of compensation increase |  | 3.80 | % |  | 4.23 | % |  | — |  |  | — |
The discount rates are determined using a Company-specific yield curve model (above-mean) developed with the assistance of an external actuary. The Company-specific yield curve models (above-mean) use a subset of the expanded bond universe to determine the Company-specific discount rate. Bonds used in the yield curve are rated AA by Moody's or Standard & Poor's as of the measurement date. The yield curve models parallel the plans' projected cash flows, and the underlying cash flows of the bonds included in the models exceed the cash flows needed to satisfy the Company plans'. The weighted-average assumptions used to determine net periodic benefit costs are as follows:
|  | Pension Benefits at |  | Other Postretirement Benefits at
|  | December 31, |  | December 31,
|  | 2014 |  | 2013 |  | 2012 |  | 2014 |  | 2013 |  | 2012
Discount rate |  | 4.87 | % |  | 4.00 | % |  | 4.50 | % |  | 4.88 | % |  | 4.05 | % |  | 4.51 | %
Expected long-term return on plan assets |  | 7.75 | % |  | 7.75 | % |  | 8.00 | % |  | — |  |  | — |  |  | — |
Rate of compensation increase |  | 4.21 | % |  | 3.77 | % |  | 3.82 | % |  | — |  |  | — |  |  | — |
The long-term rate of return is the sum of the portion of total assets in each asset class held multiplied by the expected return for that class, adjusted for expected expenses to be paid from the assets. The expected return for each class is determined using the plan asset allocation at the measurement date and a distribution of compound average returns over a 20-year time horizon. The model uses asset class returns, variances and correlation assumptions to produce the expected return for each portfolio. The return assumptions used forward-looking gross returns influenced by the current Treasury yield curve. These returns recognize current bond yields, corporate bond spreads and equity risk premiums based on current market conditions. The assumed health care cost trend rates are as follows:
|  | At December 31,
|  | 2014 |  | 2013 |  | 2012
Health care cost trend rate for next year |  | 6.03 | % |  | 6.17 | % |  | 6.30 | %
Rate to which the cost trend is assumed to decline (ultimate trend rate) |  | 4.50 | % |  | 4.50 | % |  | 4.50 | %
Year that the rate reaches ultimate trend rate |  | 2026 |  |  | 2026 |  |  | 2026 |
Assumed health care cost trend rates have a significant effect on the amounts reported for the medical plans. A one-percentage point change in assumed health care cost trend rates would have the following effects:
|  | 1-Percentage |  | 1-Percentage
|  | Point Increase |  | Point Decrease
Effect on total of service and interest cost components |  | $ | 6,975 |  |  | $ | (5,779 | )
Effect on accumulated postretirement benefit obligation |  | $ | 88,174 |  |  | $ | (74,274 | )
Assumed discount rates also have a significant effect on the amounts reported for both pension and other benefit costs. A one-quarter percentage point change in assumed discount rate would have the following effect on benefit costs:
|  | 0.25 Percentage |  | 0.25 Percentage
|  | Point Increase |  | Point Decrease
Pension benefit costs (decrease) increase |  | $ | (1,955 | ) |  | $ | 1,914 |
Other postemployment benefits costs (decrease) increase |  | $ | (3,476 | ) |  | $ | 3,663 |
Plan Assets: The company’s overall investment strategy is to meet current and future benefit payment needs through diversification across asset classes, fund strategies and fund managers to achieve an optimal balance between risk and return and between income and growth of assets through capital appreciation. The target allocations for plan assets are 31 percent U.S. equity securities, 20 percent non-U.S. equity securities, 9 percent global equity securities, and 40 percent fixed income. Both the equity and fixed income portfolios are comprised of both active and passive investment strategies. The Trust is primarily invested in Mercer Common Collective Trusts. Equity securities consist of investments in large and mid/small cap companies with non-U.S. equities being derived from both developed and emerging markets. Fixed income securities consist of U.S. as well as international instruments, including emerging markets. The core domestic fixed income portfolios invest in government, corporate, asset-backed securities and mortgage-backed obligations. The average quality of the fixed income portfolio must be rated at least “investment grade” by nationally recognized rating agencies. Within the fixed income asset class, investments are invested primarily across various strategies such that its overall profile strongly correlates with the interest rate sensitivity of the Trust’s liabilities in order to reduce the volatility resulting from the risk of changes in interest rates and the impact of such changes on the Trust’s overall financial status. Derivatives, interest rate swaps, options and futures are permitted investments for the purpose of reducing risk and to extend the duration of the overall fixed income portfolio; however they may not be used for speculative purposes. All or a portion of the assets may be invested in mutual funds or other comingled vehicles so long as the pooled investment funds have an adequate asset base relative to their asset class; are invested in a diversified manner; and have management and/or oversight by an Investment Advisor registered with the SEC. The Retirement Board, as appointed by the CONSOL Energy Board of Directors, reviews the investment program on an ongoing basis including asset performance, current trends and developments in capital markets, changes in Trust liabilities and ongoing appropriateness of the overall investment policy. The fair values of plan assets at December 31, 2014 and 2013 by asset category are as follows:
|  | Fair Value Measurements at December 31, 2014 |  | Fair Value Measurements at December 31, 2013
|  |  |  | Quoted |  |  |  |  |  |  |  | Quoted |  |  |  |
|  |  |  | Prices in |  |  |  |  |  |  |  | Prices in |  |  |  |
|  |  |  | Active |  |  |  |  |  |  |  | Active |  |  |  |
|  |  |  | Markets for |  | Significant |  | Significant |  |  |  | Markets for |  | Significant |  | Significant
|  |  |  | Identical |  | Observable |  | Unobservable |  |  |  | Identical |  | Observable |  | Unobservable
|  |  |  | Assets |  | Inputs |  | Inputs |  |  |  | Assets |  | Inputs |  | Inputs
|  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3)
Asset Category |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash/Accrued Income |  | $ | 650 |  |  | $ | 650 |  |  | $ | — |  |  | $ | — |  |  | $ | 634 |  |  | $ | 634 |  |  | $ | — |  |  | $ | — |
US Equities (a) |  | 12 |  |  | 12 |  |  | — |  |  | — |  |  | 14 |  |  | 14 |  |  | — |  |  | — |
Mercer Collective Trusts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US Large Cap Growth Equity (b) |  | 53,617 |  |  | — |  |  | 53,617 |  |  | — |  |  | 56,006 |  |  | — |  |  | 56,006 |  |  | — |
US Large Cap Value Equity (c) |  | 53,090 |  |  | — |  |  | 53,090 |  |  | — |  |  | 56,802 |  |  | — |  |  | 56,802 |  |  | — |
US Small/Mid Cap Growth Equity (d) |  | 27,642 |  |  | — |  |  | 27,642 |  |  | — |  |  | 28,530 |  |  | — |  |  | 28,530 |  |  | — |
US Small/Mid Cap Value Equity (e) |  | 26,473 |  |  | — |  |  | 26,473 |  |  | — |  |  | 28,552 |  |  | — |  |  | 28,552 |  |  | — |
US Core Fixed Income (f) |  | 36,681 |  |  | — |  |  | 36,681 |  |  | — |  |  | 35,533 |  |  | — |  |  | 35,533 |  |  | — |
Non-US Core Equity (g) |  | 115,783 |  |  | — |  |  | 115,783 |  |  | — |  |  | 126,712 |  |  | — |  |  | 126,712 |  |  | — |
Emerging Markets Equity (h) |  | 27,150 |  |  | — |  |  | 27,150 |  |  | — |  |  | 29,778 |  |  | — |  |  | 29,778 |  |  | — |
Global Low Volatility Equity (i) |  | 68,481 |  |  | — |  |  | 68,481 |  |  | — |  |  | 70,138 |  |  | — |  |  | 70,138 |  |  | — |
US Long Duration Investment Grade Fixed Income (j) |  | 57,713 |  |  | — |  |  | 57,713 |  |  | — |  |  | 55,593 |  |  | — |  |  | 55,593 |  |  | — |
US Long Duration Fixed Income (k) |  | 34,728 |  |  | — |  |  | 34,728 |  |  | — |  |  | 33,489 |  |  | — |  |  | 33,489 |  |  | — |
US Large Cap Passive Equity (l) |  | 75,219 |  |  | — |  |  | 75,219 |  |  | — |  |  | 75,468 |  |  | — |  |  | 75,468 |  |  | — |
US Passive Fixed Income (m) |  | 21,511 |  |  | — |  |  | 21,511 |  |  | — |  |  | 20,287 |  |  | — |  |  | 20,287 |  |  | — |
US Long Duration Passive Fixed Income (n) |  | 33,149 |  |  | — |  |  | 33,149 |  |  | — |  |  | 34,108 |  |  | — |  |  | 34,108 |  |  | — |
US Ultra Long Duration Fixed Income (o) |  | 12,555 |  |  | — |  |  | 12,555 |  |  | — |  |  | 7,656 |  |  | — |  |  | 7,656 |  |  | — |
US Active Long Corporate Investment (p) |  | 101,420 |  |  | — |  |  | 101,420 |  |  | — |  |  | 105,412 |  |  | — |  |  | 105,412 |  |  | — |
Long Strips Fixed Income (q) |  | 3,276 |  |  | — |  |  | 3,276 |  |  | — |  |  | 2,022 |  |  | — |  |  | 2,022 |  |  | — |
Opportunistic Fixed Income (r) |  | 2,026 |  |  | — |  |  | 2,026 |  |  | — |  |  | 2,097 |  |  | — |  |  | 2,097 |  |  | — |
Total |  | $ | 751,176 |  |  | $ | 662 |  |  | $ | 750,514 |  |  | $ | — |  |  | $ | 768,831 |  |  | $ | 648 |  |  | $ | 768,183 |  |  | $ | — |
__________
(a) | This category includes investments in US common stocks and corporate debt.
(b) | This category invests primarily in common stock of large cap companies in the U.S. with above average earnings growth and revenue expectations. It targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the Russell 1000 Growth Index.
(c) | This category invests primarily in U.S. large cap companies that appear to be undervalued relative to their intrinsic value. It targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the Russell 1000 Value Index.
(d) | This category invests in small to mid-sized U.S. companies with above average earnings growth and revenue expectations. It targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The smaller cap orientation of the strategy requires the investment team to be cognizant of liquidity and capital constraints, which are monitored on an ongoing basis. The strategy is benchmarked to the Russell 2500 Growth Index.
(e) | This category invests in small to mid-sized U.S. companies that appear to be undervalued relative to their intrinsic value. It targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The smaller cap orientation of the strategy requires the investment team to be cognizant of liquidity and capital constraints, which are monitored on an ongoing basis. The strategy is benchmarked to the Russell 2500 Value Index.
(f) | This category invests primarily in U.S. dollar-denominated investment grade and government securities. It may also invest opportunistically in out-of-benchmark positions including U.S. high yield, non-U.S. bonds, and Treasury Inflation-Protected Securities (TIPs). The strategy seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics, and total portfolio duration is targeted to be within 20% of the benchmark’s duration. Total exposure to high yield issues is typically less than 10%, inclusive of direct investment in high yield and exposure through other core fixed income funds. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the Barclays Capital Aggregate Index.
(g) | This category invests in all cap companies primarily operating in developed non-US markets, with some exposure to emerging markets. The strategy targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Total exposure to emerging markets is typically 10-15%, inclusive of direct investment in emerging markets and exposure through other non-U.S. equity funds. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the MSCI EAFE Index.
(h) | This category invests in companies operating in non-US emerging markets. The strategy targets broad diversification across economic sectors and seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the MSCI Emerging Markets Index.
(i) | This category invests in companies operating in developed markets, globally. The strategy targets a diversified portfolio of equity securities issued by companies which the investment managers believe will exhibit less volatility in their price performance relative to the broad equity market as described by the MSCI World Index. The strategy is benchmarked to the MSCI World Index.
(j) | This category invests in a passively managed U.S. long duration corporate investment grade portfolio at a 90% weight and a passively managed U.S. Long Treasury portfolio at a 10% weight. It seeks to provide broad exposure to U.S. long duration investment grade credit while allowing for short term liquidity through a strategic allocation to US Treasuries. The strategy is benchmarked 90% to the Barclays Capital U.S. Long Credit Index and 10% to the Barclays Capital Long Treasury.
(k) | This category invests primarily in U.S. dollar denominated investment grade bonds and government securities with durations between 9 and 15 years. It may also invest opportunistically in out-of-benchmark positions including U.S. high yield, non-U.S. bonds, municipal bonds, and TIPs. The strategy seeks to achieve lower overall portfolio volatility by investing in complementary active managers with varying risk characteristics. Fund selection and allocations within the portfolio are implemented by Mercer’s investment management team. The strategy is benchmarked to the Barclays Capital U.S. Long Government/Credit Index.
(l) | This category invests in common stock of U.S. large cap companies. The strategy is benchmarked to the S&P 500 Index.
(m) | This category invests primarily in U.S. dollar-denominated investment grade bonds and government securities. The strategy and its underlying passive investments are benchmarked to the Barclays Capital Aggregate Index.
(n) | This category invests primarily in U.S. dollar-denominated investment grade bonds and government securities with durations between 9 and 15 years. The strategy and its underlying passive investments are benchmarked to the Barclays Capital Long Government/Credit Index.
(o) | This category seeks to reduce the volatility of the plan’s funded status and extend the duration of the assets by investing in a series of ultra long duration portfolios with target durations of up to 35 years. Each underlying portfolio is managed by a sub-advisor and consists of five interest rate swaps with sequential target or maturity dates, with the longest dated portfolio maturing in 2045. The interest rate swaps are fully collateralized, resulting in no leverage. The cash collateral is invested by the sub-advisor in an actively managed cash strategy that seeks to provide a return in excess of 3 month LIBOR. The ultra long duration strategy is used in conjunction with liability driven investing solutions, which seek to align the duration of the assets to the plan’s liabilities. The Strategy is benchmarked to a Custom Liability Benchmark Portfolio.
(p) | This category invests in a U.S. long duration corporate investment grade portfolio at a 90% weight and a U.S. long treasury portfolio at a 10% weight. It seeks to provide broad exposure to U.S. long duration investment grade corporate bonds with an emphasis on reducing default risk through active management while allowing for short term liquidity through a strategic allocation to U.S. Treasuries. The strategy is benchmarked 90% to the Barclays Capital U.S. Long Corporate Index and 10% to the Barclay’s Capital Long Treasury.
(q) | This category invests primarily in long dated U.S. Treasury STRIPS often with maturities greater than 20 years. The strategy and its underlying passive investments are benchmarked to the Barclays Capital U.S. 20+ Year STRIPS Index.
(r) | This category invests primarily in fixed income securities from issuers either located in developing/emerging markets or those rated below investment grade (high yield), globally. The strategy is benchmarked to a blended index of 50% JP Morgan Government Bond Index Emerging Markets Global Diversified and 50% Bank of America/Merrill Lynch Global High Yield Index.
There are no investments in CONSOL Energy stock held by these plans at December 31, 2014 or 2013. There are no assets in the other postretirement benefit plans at December 31, 2014 or 2013. Cash Flows: If necessary, CONSOL Energy intends to contribute to the pension trust using prudent funding methods. However, the Company does not expect to contribute to the pension plan trust in 2015. Pension benefit payments are primarily funded from the trust. CONSOL Energy does not expect to contribute to the other postemployment plan in 2015 and intends to pay benefit claims as they are due. The following benefit payments, reflecting expected future service, are expected to be paid:
|  |  |  | Other
|  | Pension |  | Postretirement
|  | Benefits |  | Benefits
2015 |  |  | $ | 59,425 |  |  | $ | 57,279 |
2016 |  |  | $ | 50,145 |  |  | $ | 57,336 |
2017 |  |  | $ | 49,854 |  |  | $ | 57,180 |
2018 |  |  | $ | 50,951 |  |  | $ | 56,691 |
2019 |  |  | $ | 52,457 |  |  | $ | 56,007 |
Year 2020-2024 |  |  | $ | 263,337 |  |  | $ | 200,261 |

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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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