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EMPLOYEE RETIREMENT PLANS
 12 Months Ended
Dec. 31, 2023
EMPLOYEE RETIREMENT PLANS  
EMPLOYEE RETIREMENT PLANS

12. EMPLOYEE RETIREMENT PLANS

We have a defined benefit pension plan which was frozen effective December 31, 2016. No benefits have been accrued under the plan subsequent to that date. We also have an unfunded supplemental pension plan for key executives.  Retirement benefits are provided based on employees’ years of credited service and average earnings or stated amounts for years of service.  Normal retirement age is 65 with provisions for earlier retirement. The plan also has provisions for disability and death benefits.  

Our funding policy for the defined benefit pension plan is to make contributions to the plan such that all employees’ benefits will be fully provided by the time they retire.  Plan assets are stated at fair value and consist primarily of equity securities and fixed income securities, mainly U.S. government and corporate obligations.

We follow ASC 715, Compensation – Retirement Benefits, which requires employers to recognize the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability in their statements of financial position and to recognize changes in the funded status in the year in which the changes occur as a component of comprehensive income.  In addition, ASC 715 requires employers to measure the funded status of their plans as of the date of their year-end statements of financial position.  ASC 715 also requires additional disclosures regarding amounts included in accumulated other comprehensive loss.

Our pension plan’s weighted average asset allocation at December 31, 2023 and 2022, by asset category, was as follows:

​

​

​

​

​

​

​

​

Plan Assets at December 31, 

 

​

    

2023

    

2022

 

Asset Category:

 

  

 

  

​

Equity Securities

 

58

%  

57

%

Fixed Income Securities

 

28

%  

31

%

Other

 

14

%  

12

%

Total

 

100

%  

100

%

​

We have a Retirement Plan Committee, consisting of our Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, to manage the operations and administration of all benefit plans and related trusts. The committee has an investment policy for the pension plan assets that establishes target asset allocation ranges for the above listed asset classes as follows: equity securities: 20% - 80%; fixed income securities: 20% - 80%; and other, principally cash: 0% - 20%. On a semi-annual basis, the committee reviews progress towards achieving the pension plan’s performance objectives.

To develop the expected long-term rate of return on assets assumption, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio.  This resulted in the selection of 6.75% as the long-term rate of return on assets assumptions for both 2023 and 2022.

The following discount rates were used to determine the funded status of the pension plans as of December 31, 2023 and 2022:

​

​

​

​

​

​

​

​

​

​

​

​

Defined Benefit Pension Plan

​

Supplemental Pension Plan

 

​

    

2023

    

2022

    

2023

    

2022

​

Discount rate for determining funded status

 

5.15

%  

5.41

%  

5.16

%  

5.44

%

​

The following is a reconciliation of the change in benefit obligation and plan assets of both the defined benefit pension plan and the unfunded supplemental pension plan for the years ended December 31, 2023 and 2022:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Defined Benefit Pension Plan

​

Supplemental Pension Plan

​

    

2023

    

2022

    

2023

    

2022

​

​

(Dollars in thousands)

Change in projected benefit obligation

 

​

  

 

​

  

 

​

  

 

​

  

Projected benefit obligation, beginning of year

​

$

39,609

​

$

52,507

​

$

12,372

​

$

20,343

Service cost

​

 

467

​

 

445

​

 

—

​

 

—

Interest cost

​

 

2,052

​

 

1,243

​

 

580

​

 

511

Plan settlement

​

​

—

​

​

—

​

​

—

​

​

(4,276)

Actuarial loss (gain)

​

 

916

​

 

(12,028)

​

 

(1,001)

​

 

(3,864)

Benefits paid

​

 

(2,633)

​

 

(2,558)

​

 

(342)

​

 

(342)

Projected benefit obligation, end of year

​

$

40,411

​

$

39,609

​

$

11,609

​

$

12,372

​

​

​

​

​

​

​

​

​

​

​

​

​

Change in plan assets

​

 

​

​

 

​

​

 

  

​

 

  

Fair value of plan assets, beginning of year

​

$

35,927

​

$

44,582

​

$

—

​

$

—

Actual return on plan assets

​

 

5,214

​

 

(5,652)

​

 

—

​

 

—

Administrative expenses

​

 

(467)

​

 

(445)

​

 

—

​

 

—

Contributions

​

 

—

​

 

—

​

 

—

​

 

4,618

Plan settlement

​

​

—

​

​

—

​

​

—

​

​

(4,276)

Benefits paid

​

 

(2,633)

​

 

(2,558)

​

 

—

​

 

(342)

Fair value of plan assets, end of year

​

$

38,041

​

$

35,927

​

$

—

​

$

—

Funded status of plan

​

$

(2,370)

​

$

(3,682)

​

$

(11,609)

​

$

(12,372)

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts recognized in the consolidated balance sheets consist of:

​

 

  

​

 

  

​

 

  

​

 

  

Accrued liabilities - other

​

$

—

​

$

—

​

$

(567)

​

$

(531)

Long-term pension liability

​

 

(2,370)

​

 

(3,682)

​

 

(11,042)

​

 

(11,841)

Net amount recognized

​

$

(2,370)

​

$

(3,682)

​

$

(11,609)

​

$

(12,372)

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts recognized in accumulated other comprehensive loss consist of:

​

 

  

​

 

  

​

 

  

​

 

  

Accumulated loss, net of income tax benefit of $2,863, $3,382, $410, and $672, respectively

​

$

8,150

​

$

9,629

​

$

1,168

​

$

1,914

Prior service cost, net of income tax benefit of $0, $0, $13 and $19, respectively

​

 

—

​

 

—

​

 

39

​

 

54

Net amount recognized

​

$

8,150

​

$

9,629

​

$

1,207

​

$

1,968

​

As noted above, benefit accruals under the pension plan were frozen, effective December 31, 2016. Therefore, the accumulated benefit obligation of the defined benefit pension plan and supplemental pension plan were equal to the respective plans’ projected benefit obligations, as shown in the above table, at December 31, 2023 and 2022.

In December 2022, in accordance with the terms of the supplemental pension plan, we made a lump-sum benefit payment of $4.3 million to a former executive of the Company using cash on hand. A pension settlement charge of $0.9 million was recorded in 2022 as a result of this payment. This charge was recorded within “other expense, net” in the Consolidated Statements of Earnings.

Assumptions used in determining pension expense for the years ended December 31, 2023 and 2022 were:

​

​

​

​

​

​

​

​

​

​

​

​

Defined Benefit Pension Plan

    

Supplemental Pension Plan

 

​

    

2023

    

2022

    

2023

    

2022

 

Discount rate for projected benefit obligation

 

5.41

%  

2.83

%  

5.44

%  

2.86

%

Discount rate for determining interest cost

 

5.35

%  

2.39

%  

5.37

%  

2.54

%

Long-term rate of return on plan assets

 

6.75

%  

6.75

%  

—

 

—

​

​

The components of pension expense for the years ended December 31, 2023 and 2022, were:

​

​

​

​

​

​

​

​

    

2023

    

2022

​

​

(Dollars in thousands)

Service cost

​

$

467

​

$

445

Interest cost

​

 

2,632

​

 

1,754

Expected return on plan assets

​

 

(2,301)

​

 

(2,896)

Pension settlement charge

​

​

—

​

​

894

Net amortization and deferral

​

 

495

​

 

875

Pension expense

​

$

1,293

​

$

1,072

​

The components of pension expense other than the service cost component were included in “other expense, net” in the Consolidated Statements of Earnings.

It is our intention to satisfy the minimum funding requirements and maintain at least an 80% funding percentage in our defined benefit retirement plan in future years.  At this time, we expect that any cash contributions necessary to satisfy these requirements in 2024 would not be material.

Projected benefit payments for the plans at December 31, 2023, were estimated as follows:

​

​

​

​

​

​

​

​

    

Defined Benefit 

    

Supplemental

​

​

Pension Plan

​

Pension Plan

​

​

(Dollars in thousands)

2024

​

$

3,205

​

$

568

2025

​

$

3,120

​

$

628

2026

​

$

3,069

​

$

677

2027

​

$

3,075

​

$

730

2028

​

$

3,042

​

$

882

2029 - 2033

​

$

14,161

​

$

4,653

​

The following table summarizes the fair value of pension plan assets at December 31, 2023, by asset category within the fair value hierarchy (for further level information, see Note 3):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

​

Quoted Prices

​

Significant

​

Significant

​

​

​

​

​

in Active Markets

​

Observable Inputs

​

Unobservable Inputs

​

​

​

​

    

Level 1

    

Level 2

    

Level 3

    

Total

​

​

(Dollars in thousands)

Common stocks

​

$

16,693

​

$

-

​

$

-

​

$

16,693

Preferred stocks

​

 

202

​

 

-

​

 

-

​

 

202

Exchange traded funds

​

 

5,129

​

 

-

​

 

-

​

 

5,129

Corporate obligations

​

 

-

​

 

4,160

​

 

-

​

 

4,160

Pooled fixed income funds

​

 

5,793

​

 

-

​

 

-

​

 

5,793

U.S. government securities

​

 

-

​

 

772

​

 

-

​

 

772

Cash and cash equivalents

​

 

5,292

​

 

-

​

 

-

​

 

5,292

Total

​

$

33,109

​

$

4,932

​

$

-

​

$

38,041

​

The following table summarizes the fair value of pension plan assets at December 31, 2022, by asset category within the fair value hierarchy (for further level information, see Note 3):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2022

​

​

Quoted Prices

​

Significant

​

Significant

​

​

​

​

​

in Active Markets

​

Observable Inputs

​

Unobservable Inputs

​

​

​

​

    

Level 1

    

Level 2

    

Level 3

    

Total

​

​

(Dollars in thousands)

Common stocks

​

$

14,170

​

$

1,567

​

$

—

​

$

15,737

Preferred stocks

​

 

235

​

 

3

​

 

—

​

 

238

Exchange traded funds

​

 

4,656

​

 

—

​

 

—

​

 

4,656

Corporate obligations

​

 

—

​

 

4,778

​

 

—

​

 

4,778

State and municipal obligations

​

 

—

​

 

250

​

 

—

​

 

250

Pooled fixed income funds

​

 

5,541

​

 

—

​

 

—

​

 

5,541

U.S. government securities

​

 

—

​

 

158

​

 

—

​

 

158

Cash and cash equivalents

​

 

4,488

​

 

—

​

 

—

​

 

4,488

Subtotal

​

$

29,090

​

$

6,756

​

$

—

​

$

35,846

Other assets (1)

​

​

​

​

 

  

​

 

  

​

 

81

Total

​

​

​

​

 

  

​

 

  

​

$

35,927

​

(1) This category represents trust receivables that are not leveled.

​

We also have a defined contribution plan covering substantially all employees. We contributed $1.0 million to this plan in both 2023 and 2022, respectively.