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Coal Workers' Pneumoconiosis and Workers' Compensation
 12 Months Ended
Dec. 31, 2019
Postemployment Benefits [Abstract]  
Coal Workers' Pneumoconiosis and Workers' Compensation COAL WORKERS’ PNEUMOCONIOSIS AND WORKERS’ COMPENSATION:
Coal Workers' Pneumoconiosis

Under the Federal Coal Mine Health and Safety Act of 1969, as amended, CONSOL Energy is responsible for medical and disability benefits to employees and their dependents resulting from occurrences of coal workers' pneumoconiosis (CWP) disease. CONSOL Energy is also responsible under various state statutes for pneumoconiosis benefits. CONSOL Energy primarily provides for these claims through a self-insurance program. The calculation of the actuarial present value of the estimated pneumoconiosis obligation is based on an annual actuarial study by independent actuaries and uses assumptions regarding disability incidence, medical costs, indemnity levels, mortality, death benefits, dependents and interest rates which are derived from actual company experience and outside sources. Actuarial gains or losses can result from discount rate changes, differences in incident rates and severity of claims filed as compared to original assumptions. Recent legislative changes have not been favorable for CWP. Based upon the law change that contained a 15-year presumption and permitted that chronic obstructive pulmonary disease (COPD) is a symptom of coal workers’ pneumoconiosis, there has been a surge in entitled claims for CONSOL, both from new applicants and previously denied applicants over the past years. 

Former miners and their family members asserting claims for pneumoconiosis benefits have generally been more successful asserting such claims in recent years as a result of the presumption within the PPACA that a coal miner with fifteen or more years of underground coal mining experience (or the equivalent) who develops a respiratory condition and meets the requirements for total disability under the Federal Act is presumed to be disabled due to coal dust exposure, thereby shifting the burden of proof from the employee to the employer/insurer to establish that this disability is not due to coal dust.

Workers' Compensation

CONSOL Energy must also compensate individuals who sustain employment-related physical injuries or some types of occupational diseases and, on some occasions, for costs of their rehabilitation. Workers' compensation programs will also compensate survivors of workers who suffer employment-related deaths. Workers' compensation laws are administered by state agencies, and each state has its own set of rules and regulations regarding compensation owed to an employee that is injured in the course of employment. CONSOL Energy primarily provides for these claims through a self-insurance program. CONSOL Energy recognizes an actuarial present value of the estimated workers' compensation obligation calculated by independent actuaries. The calculation is based on claims filed and an estimate of claims incurred but not yet reported as well as various assumptions, including discount rate, future healthcare trend rate, benefit duration and recurrence of injuries. Actuarial gains or losses associated with workers' compensation have resulted from discount rate changes and differences in claims experience and incident rates as compared to prior assumptions.

The reconciliation of changes in the benefit obligation and funded status of these plans at December 31, 2019 and 2018 is as follows:
 
 
CWP
 
Workers' Compensation
 
 
at December 31,
 
at December 31,
 
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 
 
 
 
 
 
 
 
Benefit obligation at beginning of period
 
$
177,188

 
$
162,840

 
$
70,986

 
$
78,528

State administrative fees and insurance bond premiums
 
—

 
—

 
2,157

 
2,671

Service cost
 
3,791

 
6,650

 
5,685

 
6,230

Interest cost
 
7,001

 
5,245

 
2,585

 
2,283

Actuarial loss (gain)
 
39,827

 
14,832

 
1,536

 
(5,134
)
Benefits paid
 
(13,334
)
 
(12,379
)
 
(11,469
)
 
(13,592
)
Benefit obligation at end of period
 
$
214,473

 
$
177,188

 
$
71,480

 
$
70,986

 
 
 
 
 
 
 
 
 
Funded status:
 
 
 
 
 
 
 
 
Current assets
 
$
—

 
$
—

 
$
1,037

 
$
1,384

Current liabilities
 
(12,331
)
 
(12,187
)
 
(11,323
)
 
(12,628
)
Noncurrent liabilities
 
(202,142
)
 
(165,001
)
 
(61,194
)
 
(59,742
)
Net obligation recognized
 
$
(214,473
)
 
$
(177,188
)
 
$
(71,480
)
 
$
(70,986
)
 
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive loss consist of:
 
 
 
 
 
 
 
 
Net actuarial loss (gain)
 
$
47,352

 
$
8,542

 
$
(11,250
)
 
$
(13,561
)
Net amount recognized (before tax effect)
 
$
47,352

 
$
8,542

 
$
(11,250
)
 
$
(13,561
)


The components of net periodic benefit cost are as follows:
 
 
CWP
 
Workers’ Compensation
 
For the Years Ended
 
For the Years Ended
 
December 31,
 
December 31,
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost
$
3,791

 
$
6,650

 
$
5,122

 
$
5,685

 
$
6,230

 
$
5,734

Interest cost
7,001

 
5,245

 
4,050

 
2,585

 
2,283

 
2,321

Recognized net actuarial loss (gain)
1,016

 
(853
)
 
(7,631
)
 
(774
)
 
(79
)
 
(598
)
State administrative fees and insurance bond premiums
—

 
—

 
—

 
2,157

 
2,671

 
3,198

Net periodic benefit cost
$
11,808

 
$
11,042

 
$
1,541

 
$
9,653

 
$
11,105

 
$
10,655


The following are amounts included in accumulated other comprehensive loss that are expected to be recognized in 2020 net periodic benefit costs:
 
 
 
 
Workers'
 
 
CWP
 
Compensation
 
 
Benefits
 
Benefits
Actuarial loss (gain) recognition
 
$
5,604

 
$
(487
)


CONSOL Energy utilizes a corridor approach to amortize actuarial gains and losses that have been accumulated under the Workers’ Compensation and CWP plans. Cumulative gains and losses that are in excess of 10% of the greater of either the estimated liability or the market-related value of plan assets are amortized over the expected average remaining future service of the current active membership of the Workers’ Compensation and CWP plans.

Assumptions:

The weighted-average discount rates used to determine benefit obligations and net periodic benefit costs are as follows:
 
 
CWP
 
Workers' Compensation
 
 
For the Years Ended
 
For the Years Ended
 
 
December 31,
 
December 31,
 
 
2019

 
2018

 
2017

 
2019

 
2018

 
2017

Benefit obligations
 
3.41
%
 
4.42
%
 
3.75
%
 
3.25
%
 
4.26
%
 
3.57
%
Net periodic benefit costs
 
4.42
%
 
3.75
%
 
4.40
%
 
4.26
%
 
3.57
%
 
4.05
%

 
Discount rates are determined using a Company-specific yield curve model (above-mean) developed with the assistance of an external actuary. The Company-specific yield curve models (above-mean) use a subset of the expanded bond universe to determine the Company-specific discount rate. Bonds used in the yield curve are rated AA by Moody's or Standard & Poor's as of the measurement date. The yield curve models parallel the plans' projected cash flows, and the underlying cash flows of the bonds included in the models exceed the cash flows needed to satisfy the Company's plans.

Cash Flows:

CONSOL Energy does not intend to make contributions to the CWP or Workers' Compensation plans in 2020, but it intends to pay benefit claims as they become due.

The following benefit payments, which reflect expected future claims as appropriate, are expected to be paid:
 
 
 
 
Workers' Compensation
 
 
CWP
 
Total
 
Actuarial
 
Other
 
 
Benefits
 
Benefits
 
Benefits
 
Benefits
2020
 
$
12,331

 
$
12,235

 
$
10,286

 
$
1,949

2021
 
$
12,013

 
$
12,427

 
$
10,430

 
$
1,997

2022
 
$
11,893

 
$
12,680

 
$
10,633

 
$
2,047

2023
 
$
11,545

 
$
12,741

 
$
10,643

 
$
2,098

2024
 
$
11,351

 
$
12,808

 
$
10,657

 
$
2,151

Year 2025-2029
 
$
57,446

 
$
66,260

 
$
54,672

 
$
11,588