RETIREMENT PLANS

Multi-employer Defined Benefit Plan

Pension benefits for substantially all of the Company

’s Alaska-based employees are provided through the Alaska Electrical Pension Fund (“AEPF”). The Company pays a contractual hourly amount based on employee classification or base compensation to the AEPF. As a multi-employer defined benefit plan, the accumulated benefits and plan assets are

not

determined for, or allocated separately to, the individual employer. This plan was

not

in endangered or critical status during the plan year.

Defined Benefit Plan

The Company

has a separate defined benefit plan that covers certain employees previously employed by Century Telephone Enterprise, Inc. (“CenturyTel Plan”). This plan was transferred to the Company in connection with the acquisition of CenturyTel, Inc.’s Alaska properties, whereby assets and liabilities of the CenturyTel Plan were transferred to the ACS Retirement Plan on

September 1, 1999.

As of

September 30, 2017,

this plan is

not

fully funded under the Employee Retirement Income Security Act of

1974,

as amended.

The following table presents the net periodic pension expense for the ACS Retir

ement Plan for the

three

and

nine

-month periods ended

September 30, 2017

and

2016:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Interest cost	$	153		$	166		$	465		$	501
Expected return on plan assets		(184	)		(180	)		(554	)		(542	)
Amortization of loss		184			77			550			538
Net periodic pension expense	$	153		$	63		$	461		$	497