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 $4.3 million was recognized in long‑term other liabilities in the accompanying balance sheet as of June 30, 2021. Actuarial gain of $0.8 million was recognized in other comprehensive loss in fiscal 2021.

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

	June 30,
	2021			2020
Change in benefit obligation:
Benefit obligation—beginning of fiscal year	$	18,426		$	17,577
Service cost		1,766			2,003
Interest cost		38			62
Plan participants’ contributions		1,676			2,886
Plan amendment		25			975
Actuarial (gain)/loss		(807	)		(615	)
Foreign currency changes		281			545
Benefit and expense payments		(2,700	)		(5,007	)
Benefit obligation—end of fiscal year	$	18,705		$	18,426
Change in plan assets:
Plan assets—beginning of fiscal year	$	13,958		$	14,228
Employer contributions		1,117			1,327
Actual return on plan assets		199			112
Plan participants’ contributions		1,676			2,885
Foreign currency changes		169			413
Benefit and expense payments		(2,700	)		(5,007	)
Plan assets—end of fiscal year	$	14,419		$	13,958
Funded status	$	(4,286	)	$	(4,468	)
Amounts recognized within the consolidated balance sheets:
Assets	$	—		$	—
Long-term other liabilities		(4,286	)		(4,468	)
Net amount recognized	$	(4,286	)	$	(4,468	)

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,
	2021			2020			2019
Net Periodic Benefit Costs:
Service cost	$	1,766		$	2,003		$	1,865
Interest cost		38			62			128
Expected returns on assets		(142	)		(151	)		(170	)
Amortization of prior service cost		54			(2	)		(55	)
Amortization of net loss		—			—			—
Settlement charges		—			178			—
Net periodic benefit costs		1,716			2,090			1,768
Other Amounts Recognized in Other Comprehensive Loss:
Net (gain) loss arising during the year		(850	)		(593	)		801
Prior service cost		(54	)		2			—
Amortization of prior service cost		24			1,005			55
Amortization of net gain		—			—			—
Effect of settlement		8			(178	)		—
Total recognized in other comprehensive (gain) loss		(872	)		236			856
Total recognized in net periodic benefit costs and other comprehensive loss	$	844		$	2,326		$	2,624

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
	2021			2020			2019
Net Periodic Benefit Costs:
Discount rate		0.40	%		0.25	%		0.45	%
Rate of compensation increase		1.50	%		1.50	%		1.50	%
Expected long-term return on assets		1.00	%		1.00	%		1.20	%

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 $1.1 million, $1.3 million and $1.4 million to the defined benefit pension plan during fiscal years 2021, 2020 and 2019 respectively. The Company expects total contributions to the defined benefit pension plan for fiscal year 2022 will be approximately $1.1 million.

Estimated future benefit payments expected to be paid by the defined benefit pension plan at June 30, 2021 are as follows (in thousands):

The plan assets are invested in insurance contracts with Copré Collective Foundation based in Lausanne, Switzerland at the end of fiscal years 2021 and 2020, respectively. In fiscal 2021, 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 fiscal 2021 and 2020 the guaranteed interest rate for mandatory retirement savings was 1.00% for both years. 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.