Retirement and pension plans


(a)	Defined benefit plans

Senior executives and retired selected key employees of Western World participate in non-qualified, unfunded, defined benefit plans. Benefits for these plans are based on final average earnings, social security benefits earned at retirement date and years of service.

The assumptions used to determine net periodic pension expense for the years ended December 31, 2016 and 2015 are as follows:



	Years Ended December 31,
	2016		2015
Discount rate	3.50	%	2.75	%
Increase in compensation levels rate	5.00	%	5.00	%

The assumptions used to determine benefit obligations as at December 31, 2016 and 2015 are as follows:



	December 31, 2016		December 31, 2015
Discount rate	4.00	%	4.00	%
Increase in compensation levels rate	5.00	%	5.00	%

The following tables present a reconciliation of the beginning and ending funded status and the net amounts recognized for the defined benefit plans for the years ended December 31, 2016 and 2015:



	Years Ended December 31,
	2016			2015
Change in benefit obligation
Projected benefit obligation, beginning of year	$	15,722		$	16,493
Service cost	1,026			1,024
Interest cost	594			434
Actuarial losses (gains)	1,473			(46		)
Benefit payments	(98		)	(98		)
Settlements	(1,738		)	(2,085		)
Projected benefit obligation, end of year	$	16,979		$	15,722

Change in plan assets
Fair value of plan assets, beginning of year	$	—		$	—
Employer contributions	1,836			2,186
Benefit payments	(98		)	(98		)
Settlements	(1,738		)	(2,088		)
Fair value of plan assets, end of year	—			—
Funded status at end of year	$	(16,979	)	$	(15,722	)

Net amount recognized in accounts payable and accrued expenses	$	(16,979	)	$	(15,722	)

Amounts recognized in accumulated other comprehensive loss consist of
Net loss (gain)	$	226		$	(517	)
Prior service credit	6			4
Net amount recognized	$	232		$	(513	)

	December 31, 2016			December 31, 2015
Projected benefit obligation	$	16,979		$	15,722
Accumulated benefit obligation	$	13,480		$	13,308
Fair value of plan assets	$	—		$	—

The components of net periodic pension expense for the years ended December 31, 2016 and 2015 are as follows:



	Years Ended December 31,
	2016			2015
Service cost	$	1,026		$	1,024
Interest cost	594			434
Amortization of prior service cost	(2		)	(2		)
Amortization of net loss	374			312
Net periodic benefit cost	1,992			1,768
Settlement loss	356			484
Net periodic pension expense	$	2,348		$	2,252

Other changes in plan assets and benefit obligations recognized in other comprehensive loss for the years ended December 31, 2016 and 2015 are as follows:



	Years Ended December 31,
	2016			2015
Net loss (gain)	$	1,473		$	(43	)
Amortization of loss	(374		)	(312		)
Amortization of prior service cost	2			2
Settlement loss	(356		)	(484		)
Total recognized in other comprehensive loss	$	745		$	(837	)
Total recognized in net pension expense and other comprehensive loss (before tax effects)	$	3,093		$	1,415

The estimated amount of net loss and prior service cost expected to be amortized from accumulated other comprehensive (loss) income into net periodic pension expense over the next fiscal year is $2.

The employer benefit payments/settlements for the year ended December 31, 2016 were $1,836 (2015: $2,183). As at December 31, 2016, the projected benefits are as follows:



	December 31, 2016
2017	$	2,740
2018	7,072
2019	92
2020	2,665
2021	83
2022-2026	5,449
Total benefit payments required	$	18,101


(b)	Other pension plans

The Company provides pension benefits to eligible employees through various plans which are managed externally and sponsored by the Company. The Company’s contributions are expensed as incurred. The Company’s expenses for its defined contribution retirement plans for the years ended December 31, 2016, 2015 and 2014 were $13,419, $13,684 and $10,606, respectively.