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Retirement plans | 12 Months Ended
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Dec. 31, 2019
Retirement Benefits [Abstract] |
Retirement plans | Retirement plans We have various defined benefit retirement plans. Our principal defined benefit pension plan is the TEGNA Retirement Plan (TRP). The disclosure tables presented below include the assets and obligations of the TRP and the TEGNA Supplemental Retirement Plan (SERP). We use a December 31 measurement date convention for our retirement plans. Pension costs, which primarily include costs for our qualified TRP and non-qualified SERP, are presented in the following table (in thousands):
| 2019 | 2018 | 2017
Service cost-benefits earned during the period | $ | 8 |  | $ | 12 |  | $ | 872 |
Interest cost on benefit obligation | 23,066 |  | 21,337 |  | 23,985 |
Expected return on plan assets | (26,320 | ) | (30,935 | ) | (26,322 | )
Amortization of prior service cost | 90 |  | 168 |  | 635 |
Amortization of actuarial loss | 6,123 |  | 5,124 |  | 8,357 |
Pension payment timing related charge | 686 |  | 7,498 |  | 26 |
Expense for company-sponsored retirement plans | $ | 3,653 |  | $ | 3,204 |  | $ | 7,553 |
Benefits no longer accrue for substantially all TRP and SERP participants as a result of amendments to the plans in the past years and as such we no longer incur a significant amount of the service cost component of pension expense. All other components of our pension expense presented above are included within the Other non-operating items, net line item of the Consolidated Statements of Income. The following table provides a reconciliation of pension benefit obligations (on a projected benefit obligation measurement basis), plan assets and funded status of company-sponsored retirement plans, along with the related amounts that are recognized in the Consolidated Balance Sheets (in thousands).
| Dec. 31,
| 2019 | 2018
Change in benefit obligations |  |
Benefit obligations as of beginning of year | $ | 554,795 |  | $ | 614,111 |
Service cost | 8 |  | 12 |
Interest cost | 23,066 |  | 21,337 |
Actuarial loss (gain) | 73,906 |  | (40,135 | )
Benefits paid | (34,771 | ) | (36,222 | )
Acquisition of KFMB | — |  | 25,966 |
Settlements (1) | (3,309 | ) | (30,274 | )
Benefit obligations as of end of year | $ | 613,695 |  | $ | 554,795 |
Change in plan assets |  |
Fair value of plan assets as of beginning of year | $ | 407,550 |  | $ | 439,149 |
Actual gain (loss) return on plan assets | 87,165 |  | (29,016 | )
Employer contributions | 23,100 |  | 45,219 |
Benefits paid | (34,771 | ) | (36,222 | )
Acquisition of KFMB | — |  | 18,694 |
Settlements (1) | (3,309 | ) | (30,274 | )
Fair value of plan assets as of end of year | $ | 479,735 |  | $ | 407,550 |
Funded status as of end of year | $ | (133,960 | ) | $ | (147,245 | )
Amounts recognized in Consolidated Balance Sheets
Accrued liabilities other—current | $ | (6,814 | ) | $ | (7,870 | )
Pension liabilities—non-current | $ | (127,146 | ) | $ | (139,375 | )
(1) Settlements represent lump sum benefit payments to certain SERP plan participants. When aggregate lump sums exceed the settlement threshold, pension payment timing related charges are incurred, and the lump sum payments prompting the charge are shown on a separate line from other benefit payments.
The funded status (on a projected benefit obligation basis of our principal retirement plans as of December 31, 2019, is as follows (in thousands):
| Fair Value of Plan Assets | Benefit Obligation | Funded Status
TRP | $ | 479,735 |  | $ | 547,140 |  | $ | (67,405 | )
SERP (1) | — |  | 66,085 |  | (66,085 | )
All other | — |  | 470 |  | (470 | )
Total | $ | 479,735 |  | $ | 613,695 |  | $ | (133,960 | )
(1) The SERP is an unfunded, unsecured liability The accumulated benefit obligation for all defined benefit pension plans was $613.7 million as of December 31, 2019 and $554.8 million as of December 31, 2018. During 2019, we made required contributions to the TRP of $4.0 million. We also made discretionary contributions to the TRP of $12 million. As a result of the discretionary contribution, we do not plan to make contributions to the TRP in 2020 because none will be required under our current assumptions and current funding levels. Based on actuarial projections, cash contributions of $6.7 million are expected to be made to our SERP participants in 2020. The following table presents information for our retirement plans for which accumulated benefit obligation exceed assets (in thousands):
| Dec. 31,
| 2019 | 2018
Accumulated benefit obligation | $ | 613,655 |  | $ | 554,768 |
Fair value of plan assets | $ | 479,735 |  | $ | 407,550 |
The following table presents information for our retirement plans for which projected benefit obligations exceed assets (in thousands):
| Dec. 31,
| 2019 | 2018
Projected benefit obligation | $ | 613,695 |  | $ | 554,795 |
Fair value of plan assets | $ | 479,735 |  | $ | 407,550 |
The following table summarizes the pre-tax amounts recorded in accumulated other comprehensive loss that have not yet been recognized as a component of pension expense (in thousands):
| Dec. 31,
| 2019 | 2018
Net actuarial losses | $ | (188,862 | ) | $ | (182,610 | )
Prior service cost | (1,797 | ) | (1,888 | )
Amounts in accumulated other comprehensive loss | $ | (190,659 | ) | $ | (184,498 | )
The actuarial loss amounts expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2020 are $6.1 million. The prior service cost amounts expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2020 are $0.1 million. Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss), pre-tax, consist of the following (in thousands):
| 2019 | 2018 | 2017
Current year net actuarial loss | $ | (13,060 | ) | $ | (19,817 | ) | $ | 16,272 |
Amortization of previously deferred actuarial loss | 6,123 |  | 5,124 |  | 8,357 |
Amortization of previously deferred prior service costs | 90 |  | 168 |  | 635 |
Pension payment timing related charges | 686 |  | 7,498 |  | — |
Curtailment gain | — |  | — |  | 4,716 |
Prior service cost recognized in curtailment | — |  | — |  | 26 |
Total | $ | (6,161 | ) | $ | (7,027 | ) | $ | 30,006 |
Pension costs: The following assumptions were used to determine net pension costs:
| 2019 |  | 2018 |  | 2017
Discount rate | 4.34% |  | 3.64% |  | 4.12%
Expected return on plan assets | 6.75% |  | 7.00% |  | 7.00%
The expected return on plan assets assumption was determined based on plan asset allocations, a review of historical capital market performance, historical plan asset performance and a forecast of expected future plan asset returns. In 2020, we expect to have pension income of approximately $5.3 million. Benefit obligations and funded status: The following assumptions were used to determine the year-end benefit obligations:
| Dec. 31,
| 2019 |  | 2018
Discount rate | 3.29% |  | 4.34%
Plan assets: The asset allocation for the TRP as of the end of 2019 and 2018, and target allocations for 2020, by asset category, are presented in the table below:
Target Allocation |  |  | Allocation of Plan Assets
| 2020 |  | 2019 |  | 2018
Equity securities | 57 | % |  | 58 | % |  | 57 | %
Debt securities | 38 | % |  | 38 | % |  | 39 | %
Other (including hedge funds and private real estate) | 5 | % |  | 4 | % |  | 4 | %
Total | 100 | % |  | 100 | % |  | 100 | %
The primary objective of company-sponsored retirement plans is to provide eligible employees with scheduled pension benefits. Consistent with prudent standards for preservation of capital and maintenance of liquidity, the goal is to earn the highest possible total rate of return while minimizing risk. The principal means of reducing volatility and exercising prudent investment judgment is diversification by asset class and by investment manager; consequently, portfolios are constructed to attain diversification in the total portfolio, each asset class, and within each individual investment manager’s portfolio. Investment diversification is consistent with the intent to minimize the risk of large losses. All objectives are based upon an investment horizon spanning five years so that interim market fluctuations can be viewed with the appropriate perspective. The target asset allocation represents the long-term perspective. Retirement plan assets will be rebalanced periodically to align them with the target asset allocations. Risk characteristics are measured and compared with an appropriate benchmark quarterly; periodic reviews are made of the investment objectives and the investment managers. Our actual investment return on our TRP assets was 23.6% for 2019, -5.6% for 2018 and 20.3% for 2017. Cash flows: We estimate we will make the following benefit payments from either retirement plan assets or directly from our funds (in thousands):
2020 | $ | 47,741 |
2021 | $ | 39,094 |
2022 | $ | 40,183 |
2023 | $ | 39,883 |
2024 | $ | 40,025 |
2025-2029 | $ | 192,826 |
401(k) savings plan Substantially all our employees (other than those covered by a collective bargaining agreement) are eligible to participate in our principal defined contribution plan, The TEGNA 401(k) Savings Plan. Employees can elect to contribute up to 50% of their compensation to the plan subject to certain limits. For most participants, the plan’s 2019 matching formula is 100% of the first 4% of employee contributions. We also make additional employer contributions on behalf of certain long-term employees. Compensation expense related to 401(k) contributions was $14.6 million in 2019, $13.3 million in 2018 and $14.4 million in 2017. During 2019, we settled the 401(k) employee company stock match obligation through a combination of buying our stock in the open market and issuing our common stock from treasury stock and depositing it in the participants’ accounts. Multi-employer plan We contribute to the AFTRA Retirement Plan (AFTRA Plan), a multi-employer defined benefit pension plan, under the terms of collective-bargaining agreements (CBA) that cover certain union-represented employees. The risks of participating in this multi-employer plan are different from single-employer plans in the following aspects:
• | We play no part in the management of plan investments or any other aspect of plan administration.
• | Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.
• | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
• | If we choose to stop participating in some of our multi-employer plans, we may be required to pay those plans an amount based on the unfunded status of the plan, referred to as withdrawal liability.
The Employee Identification Number (EIN) and three-digit plan number of the AFTRA Plan is 13-6414972/001. The AFTRA Plan has a certified green zone status as of November 30, 2017. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded; plans in the orange zone are both a) less than 80% funded and b) have an accumulated/expected funding deficiency in any of the next six plan years, net of any amortization extensions; plans in the yellow zone meet either one of the criteria mentioned in the orange zone; and plans in the green zone are at least 80% funded. A financial improvement plan or a rehabilitation plan is neither pending nor has one been implemented for the AFTRA Plan. We make all required contributions to the AFTRA plan as determined under the respective CBAs. We contributed $2.4 million annually in 2019, 2018 and 2017. Our contribution to the AFTRA Retirement Plan represented less than 5% of total contributions to the plan. This calculation is based on the plan financial statements issued for the period ending November 30, 2017. Expiration dates of the CBAs in place range from April 15, 2021 to October 16, 2022. The AFTRA Plan has elected to utilize special amortization provisions provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010. We incurred no expenses for multi-employer withdrawal liabilities for the years ended December 31, 2019, 2018 and 2017.

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