Note 11. Retirement Plans

WAPA, a wholly owned subsidiary of the Company, makes contributions to the Televicentro de Puerto Rico Special Retirement Benefits (the "Retirement Plan"). The Retirement Plan is available to all reporters and union employees after completing three (3) months of service. Eligible employees, those meeting active service minimums and minimum age requirements, are eligible to receive a one-time lump sum payment at retirement, of two (2) weeks per year of service capped at a maximum payment of forty-five (45) weeks. The number of retirees is capped at five (5) per year. There are 164 participants in the Retirement Plan.

Following is the plan's projected benefit obligation at December 31, 2015 and 2014. (amounts in thousands):

	2015			2014
Projected benefit obligation:
Balance, beginning of the year	$	2,682		$	2,114
Service cost		112			82
Interest cost		102			105
Actuarial loss		53			457
Benefits paid to participants		(84	)		(76	)

Balance, end of year	$	2,865		$	2,682

At December 31, 2015, 2014 and 2013, the funded status of the plan was as follows (amounts in thousands):

	2015			2014			2013
Excess of benefit obligation over the value of plan assets	$	(2,865	)	$	(2,682	)	$	(2,114	)
Unrecognized net actuarial loss		905			904			473
Unrecognized prior service cost		69			86			103

Accrued benefit cost	$	(1,891	)	$	(1,692	)	$	(1,538	)

The plan is unfunded. As such, the Company is not required to make annual contributions to the plan.

At December 31, 2015 and 2014, the amounts recognized in the consolidated balance sheets were classified as follows (amounts in thousands):

	2015			2014
Accrued benefit cost	$	(2,865	)	$	(2,682	)
Accumulated other comprehensive loss		974			990

Net amount recognized	$	(1,891	)	$	(1,692	)

Amounts recorded in accumulated other comprehensive loss are reported net of tax.

The benefits expected to be paid in each of the next five years and thereafter are as follows (amounts in thousands):

Years Ending December 31,	Amount
2016	$	146
2017		185
2018		222
2019		127
2020		153
2021 through 2025		958

	$	1,791

At December 31, 2015 and 2014, the following weighted-average rates were used:

	2015			2014
Discount rate on the benefit obligation		3.90	%		3.80	%
Rate of employee compensation increase		4.00	%		4.00	%

Pension expense for the years ended December 31, 2015, 2014 and 2013, consists of the following (amounts in thousands):

	2015		2014		2013
Service cost	$	112	$	82	$	83
Interest cost		102		105		84
Expected return on plan assets		—		—		—
Recognized actuarial loss (gain)		—		—		—
Amortization of prior service cost		17		17		19
Net loss amortization		51		27		36

	$	282	$	231	$	222

WAPA makes contributions to the Newspaper Guild International Pension Plan (the "Plan" or "TNGIPP"), a multiemployer pension plan with a plan year end of December 31 that provides defined benefits to certain employees covered by two CBAs, one of which was scheduled to expire on July 23, 2015 and the other of which expires on June 27, 2016. Pursuant to its terms, the CBA which was scheduled to expire on July 23, 2015 automatically renewed for a period of eighteen (18) months upon such expiration date and remains in effect through January 23, 2017 while the parties negotiate its renewal. WAPA's contribution rates to the Plan are generally determined in accordance with the provisions of the CBAs and a rehabilitation plan that was adopted by the TNGIPP.

The risks in participating in such a plan are different from the risks of single-employer plans, in the following respects:

Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employer.

If a participating employer ceases to contribute to a multiemployer plan, the unfunded obligation of the plan may be borne by the remaining participating employer.

Under current law regarding multiemployer defined benefit plans, a plan's termination, WAPA's voluntary withdrawal, or the mass withdrawal of all contributing employers from any underfunded multiemployer defined benefit plan would require us to make payments to the plan for our proportionate share of the multiemployer plan's unfunded vested liabilities.

WAPA has received Annual Funding Notices, Report of Summary Plan Information, Critical Status Notices ("Notices") and the above-noted Rehabilitation Plan, as defined by the Pension Protection Act of 2006 ("PPA"), from the Plan. The Notices indicate that the Plan actuary has certified that the Plan is in critical status, the "Red Zone", as defined by the PPA, and that a plan of rehabilitation ("Rehabilitation Plan") was adopted by the Trustees of the Plan ("Trustees") on May 1, 2010 and then updated on November 17, 2015. On May 29, 2010, the Trustees sent WAPA a Notice of Reduction and Adjustment of Benefits Due to Critical Status explaining all changes adopted under the Rehabilitation Plan, including the reduction or elimination of benefits referred to as "adjustable benefits." In connection with the adoption of the Rehabilitation Plan, most of the Plan participating unions and contributing employers (including the Newspaper Guild International and WAPA), agreed to one of the "schedules" of changes as set forth under the Rehabilitation Plan. WAPA elected the "Preferred Schedule" and executed a Memorandum of Agreement, effective May 27, 2010 (the "MOA") and agreed to the following contribution rate increases: 3.0% beginning on January 1, 2013; an additional 3.0% beginning on January 1, 2014; and an additional 3% beginning on January 1, 2015. In 2015, The Plan's Trustee's reviewed the Rehabilitation Plan and the financial projections under the Plan and determined that is was not prudent to continue benefit accruals under the current Plan and that implementation of a updated plan with a new benefit design would be in the best interest of the Plan's participants. As a result, the Plan's Board of Trustee's adopted changes to the Rehabilitation Plan effective January 1, 2016.

Under the Rehabilitation Plan, as revised in 2015, WAPA will need to agree to one of the updated "schedules" of changes as set forth under the revised Rehabilitation Plan. These schedule options include a new preferred schedule that does not require contribution increases but requires the employer to commit to remaining in the Plan for an additional five years, or the existing preferred schedule or a default schedule, both of which require annual contribution increases of 3% (starting January 1, 2016).

The contribution increases and effect of the Rehabilitation Plan as described above are not anticipated to have a material effect on the Company's results of operations. However, in the event other contributing employers are unable to, or fail to, meet their ongoing funding obligations, the financial impact on WAPA to contribute to any plan underfunding may be material. In addition, if a United States multiemployer defined benefit plan fails to satisfy certain minimum funding requirements, the Internal Revenue Service may impose a nondeductible excise tax of 5.0% on the amount of the accumulated funding deficiency for those employers contributing to the fund.

If WAPA completely or partially withdrew from the Plan, it would be obligated to pay complete or partial withdrawal liability (which could be material). Pursuant to the last available notice (for the Plan year ended December 31, 2014), WAPA's contributions to the Plan exceeded 5% of total contributions made to the Plan.

Further information about the Plan is presented in the table below (amounts in thousands):

Pension Protection
Act Zone Status

Funding Improvement
Plan/Rehabilitation Plan

WAPA's
Contribution

Expiration
Date of
Collective
Bargaining
Agreements

Surcharge
Imposed

Pension Fund

EIN

2013

Status

2015

2014

2013

TNGIPP (Plan No. 001)

52-1082662

Red

Implemented

151

144

Yes

July 21, 2015
June 27, 2016