The Company maintains a pension plan for its employees in Switzerland as required by law. The pension plan is funded by contributions by both employees and employers, with the sum of the contributions made by the employer required to be at least equal to the sum of the contributions made by employees. The Company contributes the necessary amounts required by local laws and regulations. Plan assets for the pension plan are held in a retirement trust fund with investments primarily in publicly traded securities and assets.

The purpose of this pension plan is to provide old age pensions. Some of the pension funds also provide benefits in case of disability and to the next of kin in case of premature death. Additionally, the pension funds can be used before retirement to buy a principal residence, to start an independent activity, or when leaving Switzerland permanently. If a participant leaves the company, accumulated pension funds are transferred either into a savings account or into the pension fund of a new employer.

The following table sets forth a summary of the defined benefit pension plan funded status:



Consolidated Financial Statement Position:	($ in thousands)
	December 31,
	2019			2018
Fair value of plan assets	$	25,911		$	23,610
Less: Benefit obligation	36,406			30,772
Funded status - Benefit obligation in excess of plan assets	$	(10,495	)	$	(7,162	)

The following table sets forth the change in plan assets:



Change in plan assets:	($ in thousands)
	2019			2018
Fair value of plan assets, beginning of year	$	23,610		$	24,281
Actual return on plan assets	(332		)	(409		)
Participant contributions	832			753
Employer contributions	2,055			1,503
Benefits paid	(707		)	(2,446		)
Translation adjustments and other	453			(72		)
Fair value of plan assets, end of year	$	25,911		$	23,610

The following table sets forth the change in benefit obligation:



Change in benefit obligation:	($ in thousands)
	2019			2018
Benefit obligation, beginning of year	$	30,772		$	30,185
Service cost	2,535			2,166
Interest cost	244			197
Actuarial losses (gains)	2,904			771
Benefits paid	(707		)	(2,446		)
Translation adjustments and other	658			(101		)
Benefit obligation, end of year	$	36,406		$	30,772

The following table sets forth the changes in items not yet recognized as a component of net periodic cost:



Changes in Unrecognized pension cost, pre-tax	($ in thousands)
	2019			2018
Unrecognized pension cost, pre-tax, beginning of year	$	(4,479	)	$	(2,561	)
Amortization during year	160			(19		)
Actuarial (losses) gains	(2,904		)	(771		)
Asset (losses) gains	(1,034		)	(1,140		)
Translation adjustments and other	$	1		$	12
Unrecognized pension cost, pre-tax, end of year	$	(8,256	)	$	(4,479	)

The following table sets forth the estimated amounts that will be amortized from accumulated other comprehensive (loss) into net periodic benefit cost in 2020:



Estimated amortization from Other Comprehensive Income into net periodic benefit cost in 2020:	($ in thousands)
Amortization of actuarial (losses)	$	573
Amortization of prior service credit	(19		)
Estimated net (loss)	$	554

The following table sets forth the aggregated information for the pension plan:



	($ in thousands)
	December 31,
	2019		2018
Projected benefit obligation	$	36,406	$	30,772
Accumulated benefit obligation	36,149		30,583
Fair value of plan assets	$	25,911	$	23,610

The following table sets forth the components of net periodic cost for our pension plan:



Components of net periodic benefit cost	($ in thousands)
	2019			2018			2017
Service cost	$	2,535		$	2,166		$	1,982
Interest cost	244			197			253
Expected return on plan assets	(702		)	(731		)	(773		)
Amortization of:
Prior service cost (benefit)	(19		)	(19		)	(19		)
Net actuarial loss	179			—			139
Participant contributions	(832		)	(753		)	(625		)
Net periodic benefit cost	$	1,405		$	860		$	957

We estimate the discount rate for our pension benefit obligation based on AA-AAA rated Swiss bonds. The expected rate of return on plan assets takes into consideration expected long-term returns based upon the weighted-average allocation of equities, fixed income and other asset components comprising the plan's assets at the plan's measurement date.

The following tables set forth the key assumptions used to determine the net periodic cost for each fiscal year and the benefit obligation at fiscal year-end:



Key assumptions used to determine the net periodic cost:	2019		2018		2017
Discount rate	0.80	%	0.80	%	0.65	%
Expected rate of return on plan assets	3.00	%	3.00	%	3.00	%
Rate of increase in compensation levels	0.75	%	0.75	%	0.75	%



Key assumptions used to determine the benefit obligation:	2019		2018
Discount rate	0.25	%	0.80	%
Rate of increase in compensation levels	0.75	%	0.75	%

The pension plan's assets are invested with the objective of being able to meet current and future benefit payment needs, while maximizing total investment returns within the constraints of a prudent level of portfolio risk and diversification. The assets of the plan are diversified across asset classes to achieve an optimal balance between risk and return, and between income and growth of assets through capital appreciation.

The following table sets forth the asset allocation of our pension plan assets, by category:



Plan assets by category:	December 31,
	2019		2018
Debt securities	25.7	%	37.9	%
Equity securities	33.5	%	33.2	%
Real estate	18.8	%	15.4	%
Other	20.4	%	12.9	%
Cash and cash equivalents	1.6	%	0.6	%
Total Plan Assets	100.0	%	100.0	%

This pooled pension fund is held in a trust. This fund is comprised of various publicly traded securities and assets (equity, fixed income, reits, direct real estate and alternative investments). The trust does not have a separate portfolio for Akorn. Akorn is entitled to a proportion of the total assets of the trust. The fair value amounts were provided by the fund administrator who values at market the total portfolio in accordance with ASC 820 - Fair Value of Financial Instruments. The $25.9 million and $23.6 million represents the fair values of the plan assets as of December 31, 2019 and 2018, respectively. The fair value hierarchy of the plan assets for 2019 and 2018 was level II.

The following table sets forth the Company's estimated future benefit payments:



Year	($ in thousands)
2020	$	1,866
2021	1,487
2022	1,514
2023	1,455
2024	1,563
Years 2025 - 2029	$	8,254

All U.S. full-time Akorn employees are eligible to participate in the Company’s 401(k) Plan. The Company matches the employee contribution to 50% of the first 6% of an employee's eligible compensation. Company matching contributions vest 50% after two years of credited service and 100% after three years of credited service. During the years ended December 31, 2019, 2018 and 2017, plan-related expenses totaled approximately $3.0 million, $2.6 million and $2.6 million, respectively. The Company's matching contribution is funded on a current basis.