A subsidiary of the Company sponsors a defined benefit pension plan with benefits based on each employee’s years of service and compensation. The benefits under the defined benefit pension plan are frozen.


	2024		2023		2022

Interest cost on benefit obligation	$	1,362	$	1,486	$	1,104
Expected return on plan assets	(1,429)		(1,218)		(1,659)


Amortization of actuarial (gain)	(85)		(67)		—
Net periodic benefit (income) loss	$	(152)	$	201	$	(555)
Settlement (gain)	—		(501)		(198)
Total periodic benefit income	$	(152)	$	(300)	$	(753)

The weighted average discount rate and expected return on plan assets that were used to determine net periodic costs were 5.34% and 6.50%, respectively, as of December 31, 2024, 5.47% and 6.50%, respectively, as of December 31, 2023, and 2.82% and 6.50%, respectively, as of December 31, 2022.

The expected return on plan assets is a long-term assumption established by considering historical and anticipated returns of the asset classes invested in by the pension plan and the allocation strategy currently in place among those classes.

Other changes in plan assets and benefit obligation recognized in Other comprehensive income (loss) consist of the following components for the years ended December 31,:


	2024		2023		2022
Current year actuarial (gain)	$	(1,693)	$	(405)	$	(4,088)
Amortization of actuarial gain	85		67		—
Total recognized in other comprehensive (income)	(1,608)		(338)		(4,088)
Total recognized in net periodic benefit (income) and other comprehensive (income)	$	(1,760)	$	(638)	$	(4,841)


	2024		2023		2022
Change in benefit obligation:
Benefit obligation, beginning balance	$	26,461	$	28,044	$	40,005

Interest cost	1,362		1,486		1,104



Actuarial (gain) loss	(734)		535		(10,930)
Benefits paid	(2,317)		(3,604)		(2,135)
Benefit obligation, ending balance	24,772		26,461		28,044
Change in plan assets:
Fair value of plan assets, beginning balance	22,396		19,235		26,355
Actual gain (loss) on plan assets	2,388		2,659		(4,985)
Employer contributions	981		4,106		—
Benefits paid	(2,317)		(3,604)		(2,135)
Fair value of plan assets, ending balance	23,448		22,396		19,235
Unfunded status	$	1,324	$	4,065	$	8,809

Amounts recognized in Accumulated other comprehensive loss before income taxes consists of the following components for the years ended December 31,:

As of December 31, 2024, and 2023, the weighted average discount rates used to determine benefit obligations were 5.75% and 5.34%, respectively.

The discount rate assumptions at December 31, 2024, and 2023 were determined independently. The discount rate was derived from the effective interest rate of a hypothetical portfolio of high-quality bonds, whose cash flows match the expected future benefit payments from the plan as of the measurement date.

As of December 31, 2024, and 2023, the plan assets consisted of receivables, money market fund - short term investments, and mutual funds, which were all Level 1 assets within the fair value hierarchy. The fair value of the receivables, money market fund - short term investments, and mutual funds were approximately $0.1 million, $2.0 million, and $21.4 million, respectively, as of December 31, 2024, and approximately $0.1 million, $0.8 million, and $21.5 million, respectively, as of December 31, 2023.


	Target Allocation		Actual Allocation
	2024		2024		2023
Asset Category:
Equity securities	56.0	%	68.0	%	69.6	%
Debt securities	30.0	%	23.6	%	26.6	%
Cash/cash equivalents and Short-term investments	14.0	%	8.4	%	3.8	%
Total	100.0	%	100.0	%	100.0	%

The goals of the pension plan investment program are to fully fund the obligation to pay retirement benefits in accordance with the plan documents and to provide returns that, along with appropriate funding from the Company, maintain an asset/liability ratio that is in compliance with all applicable laws and regulations and assures timely payment of retirement benefits.

Equity securities primarily include investments in companies located in the United States with readily available prices and mid to large-cap companies that are traded in foreign markets. Debt securities are diversified across different asset types with bonds issued in the United States as well as outside the United States. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the preceding tables.

The pension plan contributions are deposited into a trust, and the pension plan benefit payments are made from trust assets. The Company made contributions to the pension plan totaling $1.0 million during 2024, $4.1 million during 2023, and did not make contributions in 2022. The Company estimates that it will make $1.0 million in contributions to the pension plan in 2025. Fluctuations in actual market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefit costs and contributions in future periods.

The estimated benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the amount of $1.7 million in 2025, $1.8 million in 2026, $1.7 million in 2027, $1.7 million in 2028, $1.9 million in 2029, and $9.4 million thereafter.