N O T E 1 2 - P
o s t r e t i r e m e n t B e n e f i t s O t h e r T
h a n P e n s i o n s
In addition to providing pension benefits, the Company
provides certain health care benefits for eligible retired employees. The
following table sets forth the reconciliation of the benefit obligation
and the funded status for this plan:
| |
|
|
|
|
| (Dollars in thousands) |
2000
|
1999
|
 |
| Change in Accumulated Postretirement Benefit Obligation |
|
|
|
|
| Beginning balance |
$
|
49,884
|
$
|
53,466
|
| |
|
|
|
|
| Service cost |
|
-
|
|
-
|
| Interest cost |
|
3,588
|
|
3,587
|
| Amendments |
|
(8,951)
|
|
-
|
| Actuarial loss (gain) |
|
1,499
|
|
(2,929)
|
| Net retiree benefits paid |
|
(4,449)
|
|
(4,240)
|
|
| |
|
|
|
|
| Ending balance |
$
|
41,571
|
$
|
49,884
|
| |
|
|
|
|
| Plan assets |
|
-
|
|
-
|
|
| |
|
|
|
|
| Funded status |
$
|
41,571
|
$
|
49,884
|
| Unrecognized net actuarial gain |
|
2,276
|
|
4,280
|
| Unrecognized prior service cost |
|
8,951
|
|
-
|
|
| |
|
|
|
|
| Retiree health care obligation shown in balance
sheet |
$
|
52,798
|
$
|
54,164
|
|
The components of postretirement benefit cost are as
follows:
| |
|
|
|
|
|
|
| (Dollars in thousands) |
2000
|
1999
|
1998
|
|
| Service cost |
$
|
-
|
$
|
-
|
$
|
-
|
| Interest cost |
|
3,588
|
|
3,587
|
|
4,077
|
| Amortization of net gain from prior periods |
|
(411)
|
|
(240)
|
|
(48)
|
|
| Net postretirement benefit cost |
$
|
3,177
|
$
|
3,347
|
$
|
4,029
|
|
The funding policy is to pay claims as they occur. Payments
for postretirement health benefits, net of retiree contributions, amounted
to $4,449, $4,240 and $3,761 in 2000, 1999 and 1998, respectively.
The accumulated benefit obligation was determined using the unit credit
method and assumed discount rates of 7.5% for 2000 and 1999 and 7.0% for
1998. The assumed current health care cost trend rate is 8.0% in 2000 and
gradually decreases to 5.0% in the year 2007.
A one percent increase in the assumed health care cost trend rate would
result in a $375 increase in the service and interest components of expense
for 2000 and a $4,612 increase in the postretirement benefit obligation
at December 31, 2000. Similarly, a one percent decrease would result in
a $294 decrease in the service and interest components of 2000 expense and
a $4,098 decrease in the postretirement benefit obligation at December 31,
2000.
|
