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PENSION PLAN
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
PENSION PLAN
Note 11 – Pension Plan

The Company participates in a trusteed pension plan known as the Allegheny Group Retirement Plan covering virtually all full-time employees. Benefits are based on years of service and the employee’s compensation. Accruals under this plan were frozen as of May 31, 2014. Freezing the plan resulted in a re-measurement of the pension obligations and plan assets as of the freeze date. The pension obligation was re-measured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.46%.

On June 19, 2017, the Company approved a Supplemental Executive Retirement Plan (“SERP”), pursuant to which the Chief
Executive Officer of PMG is entitled to receive certain supplemental nonqualified retirement benefits. The SERP took effect on December 31, 2017. If the executive completes three years of continuous employment prior to retirement date (which shall be no earlier than the date he attains age 55) he will, upon retirement, be entitled to receive $1.8 million payable in 180 equal consecutive installments of $10 thousand. The liability is calculated by discounting the anticipated future cash flows at 4.0%. The liability accrued for this obligation was $1.2 million and $0.8 million as of December 31, 2020 and 2019, respectively. Service cost was $0.2 million and $0.4 million in 2020 and 2019, respectively.

Pension expense was $0.3 million, $0.3 million and $0.3 million in 2020, 2019 and 2018, respectively.

Information pertaining to the activity in the Company’s defined benefit plan, using the latest available actuarial valuations with a measurement date of December 31, 2020 and 2019 is as follows:
(Dollars in thousands)20202019
Change in benefit obligation
     Benefit obligation at beginning of year$11,435 $9,416 
     Interest cost365 392 
     Actuarial loss(54)99 
     Assumption changes1,255 1,769 
     Benefits paid(286)(241)
     Benefit obligation at end of year$12,715 $11,435 
Change in plan assets:
     Fair value of plan assets at beginning of year$6,165 $5,238 
     Actual return on plan assets511 808 
     Employer contribution706 360 
     Benefits paid(286)(241)
     Fair value of plan assets at end of year$7,096 $6,165 
Funded status$(5,619)$(5,270)
Unrecognized net actuarial loss6,591 5,883 
Prepaid pension cost recognized$972 $613 
Accumulated benefit obligation$12,715 $11,435 

At December 31, 2020, 2019 and 2018, the weighted-average assumptions used to determine the benefit obligation are as follows:
202020192018
Discount rate2.50 %3.24 %4.23 %
Rate of compensation increaseN/AN/AN/A

The components of net periodic pension cost are as follows:

(Dollars in thousands)202020192018
Interest cost$365 $392 $352 
Expected return on plan assets(438)(407)(372)
Amortization of net actuarial loss420 271 306 
Net periodic pension cost$347 $256 $286 
For the years December 31, 2020, 2019 and 2018, the weighted-average assumptions used to determine net periodic pension cost are as follows:
202020192018
Discount rate2.50 %3.24 %3.55 %
Expected long-term rate of return on plan assets6.75 %6.75 %6.75 %
Rate of compensation increaseN/AN/AN/A

The Company’s pension plan asset allocations at December 31, 2020 and 2019 are as follows:
20202019
Plan Assets
     Cash9 %4 %
     Fixed income20 %23 %
     Alternative investments19 %15 %
     Domestic equities27 %33 %
     Foreign equities24 %24 %
     Real estate investment trusts1 %1 %
     Total100 %100 %

The estimated net loss for the plan that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $0.5 million.

The following table sets forth by level within the fair value hierarchy, as defined in Note 18 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2020.
(Dollars in thousands)Level ILevel IILevel IIITotal
Assets:
     Cash$639 $— $— $639 
     Fixed income1,419 — — 1,419 
     Alternative investments— — 1,348 1,348 
     Domestic equities1,916 — — 1,916 
     Foreign equities1,703 — — 1,703 
     Real estate investment trusts— — 71 71 
Total assets at fair value$5,677 $— $1,419 $7,096 

The following table sets forth by level, within the fair value hierarchy, as defined in Note 18 – Fair Value Measurements, the Pension Plan’s assets at fair value as of December 31, 2019.
(Dollars in thousands)Level ILevel IILevel IIITotal
Assets:
     Cash$247 $— $— $247 
     Fixed income1,418 — — 1,418 
     Alternative investments— — 925 925 
     Domestic equities2,034 — — 2,034 
     Foreign equities1,480 — — 1,480 
     Real estate investment trusts— — 61 61 
Total assets at fair value$5,179 $— $986 $6,165 

Investment in government securities and short-term investments are valued at the closing price reported on the active market on which the individual securities are traded. Alternative investments and investment in debt securities are valued at quoted prices which are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while this plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The following table includes the Company's best estimate of the plan contribution for next fiscal year and the benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter.

(Dollars in thousands)Cash Flow
Contributions for the period of January 1, 2021 through December 31, 2021$199 
Estimated future benefit payments reflecting expected future service 
2021$344 
2022$407 
2023$423 
2024$445 
2025$508 
2026 through 2030$2,652