The Company has established a defined benefit pension plan for its employees in its Switzerland subsidiary. The plan provides benefits to employees upon retirement, death or disability. The Company uses June 30 as the year‑end measurement date for this plan. The unfunded liability of $4.5 million was recognized in long‑term other liabilities in the accompanying balance sheet as of June 30, 2020. Actuarial gain of $0.6 million was recognized in other comprehensive loss in fiscal 2020.

The following table presents the funded status of the defined benefit pension plan (in thousands):

	June 30,
	2020			2019
Change in benefit obligation:
Benefit obligation—beginning of fiscal year	$	17,577		$	14,254
Service cost		2,003			1,865
Interest cost		62			128
Plan participants’ contributions		2,886			1,818
Plan amendment		975			—
Actuarial (gain)/loss		(615	)		742
Foreign currency changes		545			250
Benefit and expense payments		(5,007	)		(1,480	)
Benefit obligation—end of fiscal year	$	18,426		$	17,577
Change in plan assets:
Plan assets—beginning of fiscal year	$	14,228		$	12,192
Employer contributions		1,327			1,373
Actual return on plan assets		112			122
Plan participants’ contributions		2,885			1,818
Foreign currency changes		413			203
Benefit and expense payments		(5,007	)		(1,480	)
Plan assets—end of fiscal year	$	13,958		$	14,228
Funded status	$	(4,468	)	$	(3,349	)
Amounts recognized within the consolidated balance sheets:
Assets	$	—		$	—
Long-term other liabilities		(4,468	)		(3,349	)
Net amount recognized	$	(4,468	)	$	(3,349	)

The following table presents the amounts recognized in accumulated other comprehensive loss (before tax) for the defined benefit pension plan (in thousands):

The following table presents the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for this defined benefit pension plan where accumulated benefit obligation exceeded the fair value of plan assets (in thousands):

Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss

The following table shows the components of the Company’s net periodic benefit costs and the other amounts recognized in other comprehensive loss, before tax, related to the Company’s defined benefit pension plan (in thousands):

	Year ended June 30,
	2020			2019			2018
Net Periodic Benefit Costs:
Service cost	$	2,003		$	1,865		$	1,887
Interest cost		62			128			97
Expected returns on assets		(151	)		(170	)		(156	)
Amortization of prior service cost		(2	)		(55	)		(44	)
Amortization of net loss		—			—			11
Settlement charges		178			—			—
Net periodic benefit costs		2,090			1,768			1,795
Other Amounts Recognized in Other Comprehensive Loss:
Net (gain) loss arising during the year		(593	)		801			(901	)
Prior service cost		2			—			(105	)
Amortization of prior service cost		1,005			55			44
Amortization of net gain		—			—			(11	)
Effect of settlement		(178	)
Total recognized in other comprehensive (gain) loss		236			856			(973	)
Total recognized in net periodic benefit costs and other comprehensive loss	$	2,326		$	2,624		$	822

The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during fiscal year 2021 related to the Company’s defined benefit pension plan are as follows (in thousands):

The assumptions used to determine net periodic benefit cost and to compute the expected long‑term return on assets for the Company’s defined benefit pension plan were as follows:

	Fiscal Years
	2020			2019			2018
Net Periodic Benefit Costs:
Discount rate		0.25	%		0.45	%		0.90	%
Rate of compensation increase		1.50	%		1.50	%		1.50	%
Expected long-term return on assets		1.00	%		1.20	%		1.40	%

The assumptions used to measure the benefit obligation for the Company’s defined benefit pension plan were as follows:

The Company made contributions of approximately $1.3 million, $1.4 million and $1.3 million to the defined benefit pension plan during fiscal years 2020, 2019 and 2018 respectively. The Company expects total contributions to the defined benefit pension plan for fiscal year 2021 will be approximately $1.1 million.

Estimated future benefit payments expected to be paid by the defined benefit pension plan at June 30, 2020 are as follows (in thousands):

The plan assets are invested in insurance contracts with Copré Collective Foundation based in Lausanne, Switzerland and Swiss Life Foundation BVG (BVG) insurance company based in Zurich, Switzerland at the end of fiscal year 2020 and 2019, respectively. In fiscal 2020, the risks of death and disability are reinsured with Zurich Life Insurance. The Copré Foundation for Occupational Benefits defines and is responsible for the asset strategy and invests the plan assets for the Company. In 2020, the guaranteed interest rate for mandatory retirement savings is 1.00%. The technical administration and management of the savings account are guaranteed by the Copré Foundation for Occupational Benefits. Insurance benefits due are paid directly to the entitled persons by the Copré Foundation for Occupational Benefits. Accuray International Sàrl has committed itself to pay the annual contributions and costs due under the pension fund regulations.

The contract of affiliation between the Company and the Copré Collective Foundation can be terminated by either side. In the event of a termination, recipients of retirement and survivors’ benefits would remain with the collective foundation. The Company commits itself to transfer its active insured members and recipients of disability benefits to the new employee benefits institution, thus releasing the Copré Collective Foundation from all obligations.