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RETIREMENT PLANS (Tables)
12 Months Ended
Dec. 31, 2024
RETIREMENT PLANS  
Schedule of weighted-average rates assumed in the actuarial calculations for the pension plan and other postretirement benefit plans

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

%

Schedule of changes during the year in the projected benefit obligations and in the fair value of plan assets

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)

Schedule of funded status of the Company's pension and other retirement benefit plans 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)

Schedule of fair values for the pension plan's net assets, by asset category

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

Schedule of weighted-average asset allocations, by asset category

    

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

%

Schedule of amounts recognized on the Company's consolidated balance sheets

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

Schedule of amounts recognized in accumulated other comprehensive income

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

Schedule of components of the plan's net periodic pension cost

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

Schedule of estimated benefits

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

Schedule of 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