XML 40 R23.htm IDEA: XBRL DOCUMENT

RETIREMENT PLANS

12 Months Ended

Dec. 31, 2024

12. RETIREMENT PLANS

The Company has noncontributory defined benefit pension plans as well as noncontributory postretirement benefit plans offering defined medical, dental, vision, and life benefits for certain of its employees. The Company’s pension and other postretirement benefit plans are closed to new participants and only grandfathered participants continue to accrue additional benefits. The Company reviews the funded status of its pension plans and makes contributions based on that analysis. The benefits are based on the participants’ compensation during their employment and the credited service years earned by participants. The Company funds the other postretirement benefit plans as benefits are paid.

The weighted-average rates assumed in the actuarial calculations for the pension and other postretirement benefit plans are as follows as of December 31, 2024, 2023 and 2022:
	2024		2023		2022
Discount Rate – Pension Benefit Obligation	5.7	%	4.3	%	5.4	%
Discount Rate – Pension Benefit Cost	5.2	%	5.4	%	2.9	%
Discount Rate – Postretirement Benefit Obligation	5.6	%	5.2	%	5.4	%
Discount Rate – Postretirement Benefit Cost	5.2	%	5.2	%	2.8	%
Expected long-term return on plan assets	5.3	%	5.3	%	5.2	%

The expected long-term rate of return on plan assets was determined based on several factors including input from pension investment consultants, projected long-term returns of equity and bond indices, and historical returns over the life of the related obligations of the fund. The Company, in conjunction with its pension investment consultants, reviews its asset allocation periodically and rebalances its investments when appropriate in an effort to earn the expected long-term returns. The Company will continue to evaluate its long-term rate of return assumptions at least annually and will adjust them as necessary.

The annual salary increase assumption is no longer applicable as the plan participants no longer accrue additional service.

The discount rate was determined based on a review of market data including yields on high quality corporate bonds with maturities approximating the remaining life of the project benefit obligations.

The other postretirement benefit plans healthcare cost trend assumptions is based on health care trend rates. The 2024 assumed medical health care cost trend rate is 1% trending to an ultimate rate of 4% in 2074. The assumed dental care cost trend rate is 4% in 2024 and remains at this rate until 2074.

Changes during the year in the projected benefit obligations and in the fair value of plan assets are as follows for 2024 and 2023 (in thousands):


	2024				2023

	Pension Benefits		Postretirement Benefits		Pension Benefits		Postretirement Benefits
Projected benefit obligations:
Balance at beginning of year:	$	64,149	$	3,625	$	66,175	$	3,624
Service cost		80		76		90		65
Interest cost		3,190		195		3,323		182
Benefits and settlements paid		(4,896)		(426)		(6,899)		(309)
Actuarial (gain) loss		(2,157)		61		1,460		63
Balance at end of year	$	60,366	$	3,531	$	64,149	$	3,625
Plan net assets:
Balance at beginning of year:	$	71,504	$	—	$	71,552	$	—
Actual return on plan assets		2,870		—		7,142		—
Company contributions		391		426		207		309
Benefits and settlements paid		(4,896)		(426)		(7,397)		(309)
Balance at end of year	$	69,869	$	—	$	71,504	$	—
Over/ (Under) funded status of plan	$	9,503	$	(3,531)	$	7,355	$	(3,625)

The Company reports an asset or liability on its balance sheet equal to the funded status of its pension and other postretirement benefit plans. Plans in an overfunded status are aggregated and recorded as a net pension benefit asset in other assets. Plans in an underfunded status are aggregated and recorded as a net postretirement benefit liability in other liabilities. The funded status of the Company’s pension and other retirement benefit plans is below (in thousands):


	2024

	Viya Pension Benefit		Alaska Pension Benefit		Viya Postretirement Benefits		Alaska Postretirement Benefits

Projected benefit obligation	$	49,889	$	10,477	$	3,262	$	269
Plan Net Assets		60,250		9,619		—		—
Over/ (Under) funded status of plan	$	10,361	$	(858)	$	(3,262)	$	(269)


	2023

	Viya Pension Benefit		Alaska Pension Benefit		Viya Postretirement Benefits		Alaska Postretirement Benefits

Projected benefit obligation	$	53,075	$	11,074	$	3,341	$	284
Plan Net Assets		62,142		9,362		—		—
Over/ (Under) funded status of plan	$	9,067	$	(1,712)	$	(3,341)	$	(284)

The Company’s investment policy for its pension assets is to have a reasonably balanced investment approach, with a long-term bias toward debt investments. The Company’s strategy allocates plan assets among equity, debt and other assets to achieve long-term returns without significant risk to principal. The pension fund has limitations from investing in the equity, debt or other securities of the employer, its subsidiaries or associates of the employer or any company of which the employer is a subsidiary or an associate.

The fair values for the pension plan’s net assets, by asset category, at December 31, 2024 are as follows (in thousands):


Asset Category	Total		Level 1		Level 2
Cash, cash equivalents, money markets and other	$	1,922	$	1,922	$	—
Common stock		12,445		12,445		—
Mutual funds - fixed income		10,904		10,904		—
Mutual funds - equities		8,245		8,245		—
Fixed income securities		31,421		—		31,421
Other		4,932		4,932		—
Total	$	69,869	$	38,448	$	31,421

The fair values for the pension plan’s net assets, by asset category, at December 31, 2023 are as follows (in thousands):


Asset Category	Total		Level 1		Level 2
Cash, cash equivalents, money markets and other	$	2,642	$	2,642	$	—
Common stock		12,680		12,680		—
Mutual funds - fixed income		8,836		8,836		—
Mutual funds - equities		9,527		9,527		—
Fixed income securities		33,728		—		33,728
Other		4,091		4,091		—
Total	$	71,504	$	37,776	$	33,728

The plan’s weighted-average asset allocations at December 31, 2024 and 2023, by asset category are as follows:


	2024		2023
Cash, cash equivalents, money markets and other	3	%	4	%
Common stock	18		18
Mutual funds - fixed income	16		12
Mutual funds - equities	12		13
Fixed income securities	45		47
Other	6		6
Total	100	%	100	%

Amounts recognized on the Company’s consolidated balance sheets consist of (in thousands):


	As of December 31,
	2024				2023
	Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits

Accrued and current liabilities	$	—	$	344	$	—	$	310
Other Liabilities		858		3,189		1,712		3,318
Other Assets		10,363		—		9,070		—
Accumulated other comprehensive income, net of tax		10,348		1,300		8,592		1,415

Amounts recognized in accumulated other comprehensive income consist of (in thousands):


	As of December 31,
	2024				2023
	Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits

Unrecognized net actuarial gain	$	10,729	$	1,438	$	8,842	$	1,614
Accumulated other comprehensive income, pre-tax		10,729		1,438		8,842		1,614
Accumulated other comprehensive income, net of tax		10,348		1,300		8,592		1,415

Components of the plan’s net periodic pension cost are as follows for the years ended December 31, 2024, 2023 and 2022 (in thousands):


	2024				2023				2022
	Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits
Operating expense
Service cost	$	80	$	76	$	90	$	65	$	151	$	124
Non-operating expense
Interest cost		3,190		195		3,323		182		2,373		139
Expected return on plan assets		(2,982)		—		(2,936)		—		(3,814)		—
Amortization of actuarial (gain) loss		(156)		(54)		(43)		(113)		—		—
Settlement		—		—		—		—		1,725		—
Net periodic pension cost	$	132	$	217	$	434	$	134	$	435	$	263

The Company is currently evaluating whether it will make any contributions to its pension and postretirement benefit plans during the year ending December 31, 2025.

The following estimated benefits, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years as indicated below (in thousands):


	Pension		Postretirement
Fiscal Year	Benefits		Benefits
2025	$	4,978	$	344
2026		5,292		286
2027		5,091		313
2028		4,830		300
2029		5,069		329
2029-2033		22,549		1,467
Total	$	47,809	$	3,039

Multi-employer Defined Benefit Plan

Certain employees of the Company’s US Telecom segment participate in the Alaska Electrical Pension Plan (“AEPF”). The Company pays the AEPF a contractual hourly amount based on employee classification or base compensation. As a multi-employer defined benefit plan, the accumulated benefits and plan assets are not determined for, or allocated separately to, the individual employer.

The following table provides additional information about the AEPF multi-employer pension plan.


Plan name	Alaska Electrical Pension Plan
Number of employees covered	426
Pension Protection Act zone status at the plan's year-end:
December 31, 2024	Green
December 31, 2023	Green
Plan subject to funding improvement plan	No
Plan subject to rehabilitation plan	No
Employer subject to contribution surcharge	No
Company contributions to the plan for the year ended:
December 31, 2024	$ 6.5 million
December 31, 2023	$ 6.2 million
December 31, 2022	$ 6.6 million
Name and expiration date of collective bargaining agreements requiring contributions to the plan:
Collective Bargaining Agreement Between Alaska
Communications Systems and Local Union 1547 IBEW	June 30, 2025
Outside Agreement Alaska Electrical Construction between
Local Union 1547 IBEW and Alaska Chapter National
Electrical Contractors Association Inc.	October 31, 2027
Inside Agreement Alaska Electrical Construction between
Local Union 1547 IBEW and Alaska Chapter National
Electrical Contractors Association Inc.	April 30, 2026

The Company’s contributions to the plan in 2024 and 2023 represent greater than 5% of the total contributions to the plan. The Company cannot accurately project any change in the plan status in future years given the uncertainty of economic conditions or the effect of actuarial valuations versus actual performance in the market. Minimum required future contributions to the AEPF are subject to the number of employees in each classification and base compensation of employees in future years.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (q)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (l)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (o)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (p)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480266/715-60-50-3

+ Details