Provisions for pensions are established to cover benefit plans for retirement, disability and surviving dependents’ pensions. The benefit obligations vary depending on the legal, tax and economic circumstances in the various countries in which the Company operates. Generally, the level of benefit depends on the length of service and the remuneration.

In 2019 and 2018, Germany accounted for approximately 91.8% and 90.1%, respectively, of provisions for projected benefit pension obligations. There are also defined contribution pension plans in Germany and the United States for which the Company makes regular contributions to off-balance sheet pension funds managed by third party insurance companies.

In South Korea, the company’s pension plan provides, at the option of employees for either projected benefit or defined contribution benefits. Plan assets relating to this plan reduce the pension provision disclosed.

The following provides information about projected benefit obligations, plan assets, the funded status and weighted-average assumptions of the defined benefit pension plan:


Change in Projected Benefit Obligation	December 31
	2019		2018
	(In thousands)
Present value of projected benefit obligation at the beginning of the year	$	67,623	$	72,864
Actuarial (gain)/ loss	11,983		(198)
Service cost	588		604
Interest cost	1,694		1,758
Benefits paid	(1,346)		(925)
Other	—		126
Curtailments, settlements, special and contractual termination benefits	—		(2,154)
Currency translation	(1,153)		(4,452)
Present value of projected benefit obligation at the end of the year	$	79,389	$	67,623

Based on the weighted Macaulay method the projected benefit obligation has a duration of 21.0 years (prior year: 21.2 years).


Change in Plan Assets	December 31
	2019		2018
	(In thousands)
Fair value of plan assets at the beginning of the year	$	6,391	$	7,474
Actual return on plan assets	119		(79)
Employer contributions	552		609

Actuarial gain/(loss)	—		—
Benefits paid	(277)		—
Settlement	—		(1,467)
Other adjustments	—		174
Currency translation	(205)		(320)
Fair value of plan assets at the end of the year	$	6,580	$	6,391

The plan assets are held by Orion Engineered Carbons Co. Ltd. Korea, Bupyeong-gu, South Korea, and relate to qualifying insurance policies. These insurance policies do not have a quoted market price. The actual return on plan assets amounted to $0.1 million and $0.1 million for the years ended December 31, 2019 and 2018, respectively.


Net Funded Status	December 31
	2019		2018
	(In thousands)
Projected benefit obligation	$	79,389	$	67,623
Fair value of plan assets	6,580		6,391
Net funded status	$	72,809	$	61,232


Amount Recognized in the Consolidated Balance Sheets	December 31
	2019		2018
	(In thousands)
Non-current assets	$	—	$	—
Current liabilities	908		855
Non-current liabilities	71,901		60,377
Net liability recognized - pension plans	$	72,809	$	61,232

The assumptions in the table below were used in the actuarial valuation of the underlying the obligations:


Assumptions	December 31
	2019		2018
Discount rate	1.0	%	1.9	%
Expected long-term rate of return on plan assets	2.0	%	2.0	%
Rate of compensation/salary increase	3.0	%	3.0	%
Future pension increase	1.5	%	1.5	%
Mortality	Heubeck 2018G		Heubeck 2018G

Mortality is based on Heubeck guidelines, the generally accepted biometric calculation bases for the balance sheet valuation of pension obligations in Germany. A 0.5% increase or decrease in the discount rate or in the future pension increase would have impacted the projected benefit obligation as follows:


Sensitivities	December 31, 2019
	Discount rate						Future pension increase
	0.5% decrease		0.5% increase		0.5% decrease		0.5% increase
	(In thousands)
Impact on projected benefit obligation	$	7,481	$	(6,485)	$	(9,496)	$	10,526


	Years Ended December 31,
	2019		2018		2017
	(In thousands)
Service cost	$	588	$	604	$	772
Interest cost	1,694		1,758		1,723
Expected return on plan assets	(119)		(174)		(180)
Past service cost/(income) and other adjustments	—		253		145
Net periodic pension cost	$	2,163	$	2,441	$	2,460

Effective at the end of 2013, all defined benefit plans in Germany were modified to close access to new participants and freeze benefits accrued under these plans at December 31, 2013 levels. Interest expense on the frozen obligation relating to these plans will continue to accrue. In addition, one program during the year ended December 31, 2016 ceased due to the closure of our Ambès (France) plant.

The Company paid $13.9 million, $12.8 million and $12.8 million for the years ended December 31, 2019, 2018 and 2017, respectively, for state defined contribution pension schemes (statutory pension insurance) in Germany and other countries. This amount is also recognized as personnel expenses (social security costs).

The Company expects that the following benefit payments will be made to plan participants in the years from 2019 to 2029:


Benefit payments	(In thousands)
2020	$	1,254
2021	$	1,471
2022	$	1,707
2023	$	1,902
2024	$	2,004
2025 - 2029	$	13,029

Overall net actuarial loss amounts to $12.3 million and comprises $12.0 million pension-related and $0.3 million other personnel-related.

Amounts recognized in AOCI at December 31, 2019 and 2018 related to the Company's defined benefit pension plan were as follows:


Accumulated Other Comprehensive (Income) / Loss	December 31
	2019		2018
	(In thousands)
Net actuarial (gain) loss	$	11,983	$	(198)
Net prior service cost	—		—
Balance in accumulated other comprehensive (income) / loss	$	11,983	$	(198)

The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2020:


	2020
	(In thousands)
Net actuarial (gain) loss	$	9,752
Prior service cost (credit)	—
Net amount recognized	$	9,752

The fair value (all Level 2) of Orion's pension plan assets at December 31, 2019 and 2018, by asset category, is as follows:


	December 31
	2019		2018
	(In thousands)
Equity securities	$	—	$	—
Debt securities	—		—
Other securities	6,580		6,391
Total pension plan assets	$	6,580	$	6,391