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Post Retirement Benefits
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Post Retirement Benefits Post Retirement Benefits
The Company provides post retirement benefits to certain of its United States and Canadian employees, including contributions to a multi-employer defined benefit pension plan, health care and life insurance benefits, and contributions to several defined retirement contribution plans.
The Company contributes to a multi-employer defined benefit pension plan for its employees represented by the International Association of Machinists and Aerospace Workers ("IAM") at the Company’s Columbus, Ohio production facility. The Company does not administer this plan and contributions are determined in accordance with provisions of the collective bargaining agreement. The risks of participating in this multi-employer plan are different from a single-employer plan in the following aspects:
•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 the Company chooses to stop participating in its multi-employer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
The Company’s participation in the multi-employer defined benefit pension plan for the years ended December 31, 2024 and 2023 is outlined in the table below. The most recent Pension Protection Act ("PPA") zone status is for the plan’s year-end at December 31, 2023. The zone status is based on information the Company 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 yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a financial improvement plan ("FIP") or a rehabilitation plan ("RP") is either pending or has been implemented.
Pension FundEIN/Pension
Plan Number		Pension Protection Act Zone StatusFIP/RP
Status Pending/ Implemented		Contributions of the CompanySurcharge
Imposed		Expiration
Date of Collective Bargaining Agreement
2024202320242023
IAM National Pension Fund /
National Pension Plan (A)
51-6031295 - 002
Red Zone as of 12/31/23Red Zone as of 12/31/22Implemented$890,000 $1,002,000 Yes8/7/2025
Total Contributions:$890,000 $1,002,000 
(A)The plan re-certified its zone status after using the amortization provisions of the Code. The Company's contributions to the plan did not represent more than 5% of total contributions to the plan as indicated in the plan's most recently available annual report for the plan year ended December 31, 2023. Under the terms of the collective-bargaining agreement, the Company is required to make contributions to the plan for each hour worked up to a maximum of 40 hours per person, per week at $1.55 per hour from August 10, 2019 through August 9, 2025. The Company is paying a surcharge of $0.16 for each hour worked up to a maximum of 40 hours per person, per week as a result of the pension plan being in the Red Zone.
Prior to the acquisition of Columbus Plastics in 1996, certain of the Company's employees were participants, or were eligible to participate, in International's post-retirement health and life insurance benefit plan. This plan provides healthcare and life insurance benefits for certain employees upon their retirement, along with their spouses and certain dependents and requires cost sharing between the Company, International and the participants, in the form of premiums, co-payments, and deductibles. The Company and International share the cost of benefits for these employees, using a formula that allocates the cost based upon the respective portion of time that the employee was an active service participant after the acquisition of Columbus Plastics to the period of active service prior to the acquisition of Columbus Plastics.
The Company also sponsors a post-retirement health and life insurance benefit plan for certain union retirees of its Columbus, Ohio production facility. In August 2010, as part of a new collective-bargaining agreement, the post-retirement health and life insurance benefits for all current and future represented employees who were not retired were eliminated in exchange for a one-time cash payment. Individuals who retired prior to August 2010 remain eligible for post-retirement health and life insurance benefits.
The elimination of post-retirement health and life insurance benefits described above resulted in a reduction of the Company’s post-retirement benefits liability of approximately $10,282,000 in 2010. This reduction in post retirement benefits liability was treated as a negative plan amendment and is being amortized as a reduction to net periodic benefit cost over approximately twenty years, the actuarial life expectancy of the remaining participants in the plan at the time of the amendment. This negative plan amendment resulted in net periodic benefit cost reductions of approximately $496,000 in 2024, 2023 and 2022, and will result in net periodic benefit cost reductions of approximately $496,000 in 2025 and each year thereafter during the amortization period.
The funded status of the Company's post-retirement health and life insurance benefits plan as of December 31, 2024 and 2023 and reconciliation with the amounts recognized in the Consolidated Balance Sheets are provided below (in thousands):
Post-Retirement Benefits
20242023
Change in benefit obligation:
Benefit obligation at January 1$3,116 $6,625 
Interest cost93 254 
Unrecognized loss (gain)550 (3,004)
Benefits paid, net(461)(759)
Benefit obligation at December 31$3,298 $3,116 
Plan Assets— — 
Amounts recorded in accumulated other comprehensive income:
Prior service credit$(3,130)$(3,648)
Net loss (gain)(1,358)(2,056)
Total$(4,488)$(5,704)
Weighted-average assumptions as of December 31:
Discount rate used to determine benefit obligation and net periodic benefit cost5.4  %4.7  %
The components of expense for all of the Company's post-retirement benefit plans for the years ended December 31 (in thousands):
202420232022
Pension expense:
Multi-employer plan$794 $981 $1,137 
Defined contribution plans1,792 1,873 1,482 
Total pension expense2,586 2,854 2,619 
Health and life insurance:
Interest cost93 254 198 
Amortization of prior service credits(496)(496)(496)
Amortization of net loss (gain)(190)22 174 
Net periodic benefit credit(593)(220)(124)
Total post retirement benefits expense$1,993 $2,634 $2,495 
The Company accounts for post-retirement benefits under FASB ASC 715, which requires the recognition of the funded status of a defined benefit pension or post-retirement plan in the Consolidated Balance Sheets. For the year ended December 31, 2024, the Company recognized a net actuarial loss of $550,000 which is comprised of an actuarial loss of $240,000 and differences between actual and expected benefit payments of $310,000. The actuarial loss primarily resulted from changes in per capita costs and medical trend assumptions offset by changes in census and the discount rate. For the year ended December 31, 2023, the Company recognized a net actuarial gain of $3,004,000, which is comprised of an actuarial gain of $3,393,000, offset by differences between actual and expected benefit payments of $389,000. The actuarial gain primarily resulted from a change from a self-insured to a fully-insured plan. The net actuarial activity for the years ended December 31, 2024 and 2023, were recorded in accumulated other comprehensive income.
Amounts not yet recognized as a component of net periodic benefit costs at December 31, 2024 and 2023 were a net credit of $4,488,000 and $5,835,000, respectively. The amount in accumulated other comprehensive income expected to be recognized as components of net periodic post retirement cost during 2025 consists of a prior service credit of $496,000 and a net gain of $88,000. In addition, 2025 net interest expense related to post-retirement healthcare is expected to be
$117,000, for a total post-retirement healthcare net gain of approximately $467,000 in 2025. The Company expects benefits paid in 2025 to be consistent with estimated future benefit payments as shown in the table below.
The weighted average rate of increase in the per capita cost of covered health care benefits as of December 31, 2024 and 2023 is projected to be 18.8% and 7.1%, respectively. The rate is projected to decrease gradually for medical and prescriptions post age 65 to 4.81% by the year 2029 and remain at that level thereafter. As of December 31, 2023, the comparable assumptions for prior year were medical post age 65 of 6.60% and prescriptions of 5.0% by the year 2029.
The estimated future benefit payments of the health care plan for the next ten years are as follows (in thousands):
Postretirement
Health Care Benefits Plan
2025$146 
2026164 
2027180 
2028189 
2029192 
2030 - 20341,997