EMPLOYEE BENEFIT PLANS

Due to the Dai-ichi acquisition, the Company remeasured all materially impacted benefit plans as of January 31, 2015. Financial remeasurement was performed for the defined benefit pension plan, the unfunded excess benefit plan, and the postretirement life insurance plan as of January 31, 2015. The January results for the retiree life plan were not material, and therefore, remeasurement was not deemed necessary for this plan. The Company has disclosed relevant financial information related to the January 31, 2015 remeasurement.

Beginning with the December 31, 2015 measurement, the Company changed its method used to estimate the service and interest cost components of net periodic benefit cost for pension and other postretirement benefits by applying a spot rate approach. Historically, the Company utilized a single weighted average discount rate derived from a selected yield curve used to measure the benefit obligation as of the measurement date. Under the new spot rate approach, the actual calculation of service and interest cost will reflect an array of spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The Company made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot rates from the selected yield curve. This new approach does not affect the measurement of the total benefit obligation.

Defined Benefit Pension Plan and Unfunded Excess Benefit Plan

The Company sponsors a defined benefit pension plan covering substantially all of its employees. Benefits are based on years of service and the employee's compensation.

Effective January 1, 2008, the Company made the following changes to its defined benefit pension plan. These changes have been reflected in the computations within this note.


•	Employees hired after December 31, 2007, will receive benefits under a cash balance plan.


•	Employees active on December 31, 2007, with age plus vesting service less than 55 years will receive a final pay-based pension benefit for service through December 31, 2007, plus a cash balance benefit for service after December 31, 2007.


•	Employees active on December 31, 2007, with age plus vesting service equaling or exceeding 55 years, will receive a final pay-based pension benefit for service both before and after December 31, 2007, with a modest reduction in the formula for benefits earned after December 31, 2007.


•	All participants terminating employment on or after December of 2007 may elect to receive a lump sum benefit.

In 2016, the Company amended its defined benefit pension plan to offer a limited-time opportunity of benefit payouts to eligible, terminated-vested participants (“lump sum window”). The lump sum window provided eligible, terminated-vested participants with an option to elect to receive a lump sum settlement of his or her pension benefit in December 2016 or to elect receipt of monthly pension benefits commencing in December 2016. This event triggered settlement accounting for the Company and resulted in the recognition of $0.9 million of settlement income for the twelve months ended December 31, 2016.

The Company also sponsors an unfunded excess benefit plan, which is a nonqualified plan that provides defined pension benefits in excess of limits imposed on qualified plans by federal tax law.

On May 5, 2016, the Board of Directors of Protective Life Corporation decided to convert the accrued benefit payable under the excess benefit plan as of March 31, 2016 to John D. Johns, the Company's Chairman and Chief Executive Officer, into a lump sum amount. On September 30, 2016, the lump sum amount was allocated to a book entry account that will be treated as though it were a deferral account under the Company’s deferred compensation plan for officers. Mr. Johns will continue to accrue benefits with respect to his continued service as an employee of the Company after March 31, 2016 in a manner that is consistent with the provisions of the excess benefit plan. The conversion event required the Company to re-measure the excess benefit plan as of May 31, 2016 and resulted in the recognition of $2.1 million in settlement expense during the twelve months ended December 31, 2016.

The following table presents the benefit obligation, fair value of plan assets, funded status, and amounts not yet recognized as components of net periodic pension costs for the Company's defined benefit pension plan and unfunded excess benefit plan as of December 31, 2016 and 2015 (Successor Company) and January 31, 2015 (Predecessor Company):



	Successor Company												Predecessor Company
	December 31, 2016						December 31, 2015						January 31, 2015
	Defined Benefit Pension Plan			Unfunded Excess Benefit Plan			Defined Benefit Pension Plan			Unfunded Excess Benefit Plan			Defined Benefit Pension Plan			Unfunded Excess Benefit Plan
	(Dollars In Thousands)												(Dollars In Thousands)
Accumulated benefit obligation, end of year	$	247,595		$	45,594		$	250,133		$	54,196		$	262,290		$	49,251
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	268,221		$	56,985		$	281,099		$	51,243		$	267,331		$	49,575
Service cost	12,791			1,413			11,220			1,229			974			95
Interest cost	9,751			1,353			9,072			1,499			1,002			140
Amendments	—			—			—			—			—			—
Actuarial loss/(gain)	5,988			4,124			(19,235		)	4,484			12,384			1,555
Benefits paid	(30,903		)	(16,073		)	(13,935		)	(1,470		)	(592		)	(122		)
Projected benefit obligation at end of year	265,848			47,802			268,221			56,985			281,099			51,243
Change in plan assets:
Fair value of plan assets at beginning of year	196,042			—			201,820			—			203,772			—
Actual return on plan assets	15,815			—			6,751			—			(3,525		)	—
Employer contributions⁽¹⁾	20,889			16,073			1,406			1,470			2,165			122
Benefits paid⁽²⁾	(30,903		)	(16,073		)	(13,935		)	(1,470		)	(592		)	(122		)
Fair value of plan assets at end of year	201,843			—			196,042			—			201,820			—
After reflecting FASB guidance:
Funded status	(64,005		)	(47,802		)	(72,179		)	(56,985		)	(79,279		)	(51,243		)
Amounts recognized in the balance sheet:
Other liabilities	(64,005		)	(47,802		)	(72,179		)	(56,985		)	(79,279		)	(51,243		)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss/(gain)	(7,855		)	6,294			(12,772		)	4,484			96,965			22,401
Prior service cost/(credit)	—			—			—			—			(1,001		)	23
Total amounts recognized in AOCI	$	(7,855	)	$	6,294		$	(12,772	)	$	4,484		$	95,964		$	22,424


(1)	Employer contributions disclosed are based on the Company's fiscal filing year


(2)	Includes amount related to Mr. Johns' excess benefit to deferred compensation plan conversion as discussed above in Unfunded Excess Benefit Plan

Weighted-average assumptions used to determine benefit obligations as of December 31 are as follows:



	Successor Company
	Defined Benefit Pension Plan				Unfunded Excess Benefit Plan
	2016		2015		2016		2015
Discount rate	4.04	%	4.29	%	3.60	%	3.63	%
Rate of compensation increase	4.75% prior to age 40/ 3.75% for age 40 and above		4.75% prior to age 40/ 3.75% for age 40 and above		4.75% prior to age 40/ 3.75% for age 40 and above		4.75% prior to age 40/ 3.75% for age 40 and above

The benefit obligations as of January 31 were determined based on the assumptions used in the 2014 year end disclosures with the following exception:



	Predecessor Company
	Defined Benefit Pension Plan		Unfunded Excess Benefit Plan
Discount rate	3.55	%	3.26	%

Weighted-average assumptions used to determine the net periodic benefit cost for the year ended December 31, 2016 (Successor Company), for the period of February 1, 2015 to December 31, 2015 (Successor Company), and for the years ended 2014 (Predecessor Company) are as follows:



	Successor Company								Predecessor Company
	For The Year Ended December 31,								For The Year Ended December 31,
	2016		2015		2016		2015		2014		2014
	Defined Benefit Pension Plan				Unfunded Excess Benefit Plan				Defined Benefit Pension Plan		Unfunded Excess Benefit Plan
Discount rate	4.29	%	3.95	%	3.63	%	3.65	%	4.86	%	4.30	%
Rate of compensation increase	4.75% prior to age 40/ 3.75% for age 40 and above		4.75% prior to age 40/ 3.75% for age 40 and above		4.75% prior to age 40/ 3.75% for age 40 and above		4.75% prior to age 40/ 3.75% for age 40 and above		3.0		4.0
Expected long-term return on plan assets	7.25	%	7.50	%	N/A		N/A		7.50	%	N/A

The assumed discount rates used to determine the benefit obligations were based on an analysis of future benefits expected to be paid under the plans. The assumed discount rate reflects the interest rate at which an amount that is invested in a portfolio of high-quality debt instruments on the measurement date would provide the future cash flows necessary to pay benefits when they come due.

To determine an appropriate long-term rate of return assumption, the Company obtained 25 year annualized returns for each of the represented asset classes. In addition, the Company received evaluations of market performance based on the Company's asset allocation as provided by external consultants. A combination of these statistical analytics provided results that the Company utilized to determine an appropriate long-term rate of return assumption.

Components of the net periodic benefit cost for the year ended December 31, 2016 (Successor Company), for the period of the period of February 1, 2015 to December 31, 2015 (Successor Company), for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the year ended and December 31, 2014 (Predecessor Company) are as follows:



	Successor Company										Predecessor Company
	For The Year Ended December 31,					February 1, 2015 to December 31, 2015					January 1, 2015 to January 31, 2015					For The Year Ended December 31,
	2016			2016		February 1, 2015 to December 31, 2015					January 1, 2015 to January 31, 2015					2014			2014
	Defined Benefit Pension Plan			Unfunded Excess Benefit Plan		Defined Benefit Pension Plan			Unfunded Excess Benefit Plan		Defined Benefit Pension Plan			Unfunded Excess Benefit Plan		Defined Benefit Pension Plan			Unfunded Excess Benefit Plan
	(Dollars In Thousands)										(Dollars In Thousands)
Service cost—benefits earned during the period	$	12,791		$	1,413	$	11,220		$	1,229	$	974		$	95	$	9,411		$	954
Interest cost on projected benefit obligation	9,751			1,353		9,072			1,499		1,002			140		10,493			1,696
Expected return on plan assets	(13,780		)	—		(13,214		)	—		(1,293		)	—		(12,166		)	—
Amortization of prior service cost/(credit)	—			—		—			—		(33		)	1		(392		)	12
Amortization of actuarial loss/(gain)⁽¹⁾	—			178		—			—		668			138		6,821			1,516
Preliminary net periodic benefit cost	8,762			2,944		7,078			2,728		1,318			374		14,167			4,178
Settlement/curtailment expense⁽²⁾	(964		)	2,135		—			—		—			—		—			—
Total net periodic benefit cost	$	7,798		$	5,079	$	7,078		$	2,728	$	1,318		$	374	$	14,167		$	4,178


(1)	2016 average remaining service period used is 9.31 years years and 8.58/8.63 years for the defined benefit pension plan and unfunded excess benefit plan, respectively.


(2)	The unfunded excess benefit plan triggered settlement accounting for the year ended December 31, 2016 since the total lump sum payments exceeded the settlement threshold of service cost plus interest cost.

For the defined benefit pension plan, the Company does not expect to amortize any net actuarial loss/(gain) from other comprehensive income into net periodic benefit cost during 2017 since the net actuarial loss/(gain) subject to amortization is less than 10% of the greater of the smooth value of assets or the projected benefit obligation. For the unfunded excess benefit plan, The Company expects to amortize a loss of approximately $0.2 million from other comprehensive income into net periodic benefit cost during 2017.

Estimated future benefit payments under the defined benefit pension plan and unfunded excess benefit plan are as follows:



Years	Defined Benefit Pension Plan		Unfunded Excess Benefit Plan
	(Dollars In Thousands)
2017	$	18,410	$	3,014
2018	18,050		3,245
2019	19,112		6,364
2020	19,434		5,290
2021	19,990		4,873
2022 - 2026	106,672		21,890

Defined Benefit Pension Plan Assets

Allocation of plan assets of the defined benefit pension plan by category as of December 31 are as follows:



	Successor Company
Asset Category	Target Allocation for 2017		2016		2015
Cash and cash equivalents	2	%	2	%	2	%
Equity securities	60		61		61
Fixed income	38		37		37
Total	100	%	100	%	100	%

The Company's target asset allocation is designed to provide an acceptable level of risk and balance between equity assets and fixed income assets. The weighting towards equity securities is designed to help provide for an increased level of asset growth potential and liquidity.

Prior to July 1999, upon an employee's retirement, a distribution from pension plan assets was used to purchase a single premium annuity from PLICO in the retiree's name. Therefore, amounts shown above as plan assets exclude assets relating to such retirees. Since July 1999, retiree obligations have been fulfilled from pension plan assets. The defined benefit pension plan has a target asset allocation of 60% domestic equities, 38% fixed income, and 2% cash. When calculating asset allocation, the Company includes reserves for pre-July 1999 retirees.

The Company's investment policy includes various guidelines and procedures designed to ensure assets are invested in a manner necessary to meet expected future benefits earned by participants. The investment guidelines consider a broad range of economic conditions. Central to the policy are target allocation ranges (shown above) by major asset categories. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans' actuarial assumptions, and achieve asset returns that are competitive with like institutions employing similar investment strategies.

The plan's equity assets are in a Russell 3000 index fund that invests in a domestic equity index collective trust managed by Northern Trust Corporation and in a Spartan 500 index fund managed by Fidelity. The plan's cash is invested in a collective trust managed by Northern Trust Corporation. The plan's fixed income assets are invested in a group deposit administration annuity contract with PLICO.

Plan assets of the defined benefit pension plan by category as of December 31, 2016 (Successor Company) and December 31, 2015 (Successor Company), are as follows:



	Successor Company
	As of December 31,
	2016		2015
	(Dollars In Thousands)
Asset Category
Cash and cash equivalents	$	4,175	$	3,121
Equity securities:
Collective Russell 3000 equity index fund	67,627		72,663
Fidelity Spartan 500 index fund	58,815		52,551
Fixed income	71,226		67,707
Total investments	201,843		196,042
Employer contribution receivable	—		—
Total	$	201,843	$	196,042

The valuation methodologies used to determine the fair values reflect market participant assumptions and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value. The Plan's group deposit administration annuity contract with PLICO is recorded at contract value, which, by utilizing a long-term view, the Company believes approximates fair value. Contract value represents contributions made under the contract, plus interest at the contract rate, less funds used to purchase annuities. Units in collective short-term and collective investment funds are valued at the unit value, which approximates fair value, as reported by the trustee of the collective short-term and collective investment funds on each valuation date. These methods of valuation may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2016 (Successor Company):



	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Collective short-term investment fund	$	4,175	$	—	$	—	$	4,175
Collective investment funds:
Equity index funds	58,815		67,627		—		126,442
Group deposit administration annuity contract	—		—		71,226		71,226
Total investments	$	62,990	$	67,627	$	71,226	$	201,843

The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2015 (Successor Company):



	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Collective short-term investment fund	$	3,121	$	—	$	—	$	3,121
Collective investment funds:
Equity index funds	52,551		72,663		—		125,214
Group deposit administration annuity contract	—		—		67,707		67,707
Total investments	$	55,672	$	72,663	$	67,707	$	196,042

For the year ended December 31, 2016 (Successor Company) and for the period of February 1, 2015 to December 31, 2015 (Successor Company), there were no transfers between levels.

The following table summarizes the Plan investments measured at fair value based on NAV per share as of December 31, 2016 (Successor Company) and December 31, 2015 (Successor Company), respectively:



Name	Fair Value		Unfunded Commitments	Redemption Frequency	Redemption Notice Period
	(Dollars In Thousands)
Successor Company
As of December 31, 2016:
Collective short-term investment fund	$	4,175	Not Applicable	Daily	1 day
Collective Russell 3000 index fund⁽¹⁾	67,627		Not Applicable	Daily	1 day
Fidelity Spartan 500 index fund	58,815		Not Applicable	Daily	1 day
As of December 31, 2015:
Collective short-term investment fund	$	3,121	Not Applicable	Daily	1 day
Collective Russell 3000 index fund⁽¹⁾	72,663		Not Applicable	Daily	1 day
Fidelity Spartan 500 index fund	52,551		Not Applicable	Daily	1 day


(1)	Non-lending collective trust that does not publish a daily NAV but tracks the Russell 3000 index and provides a daily NAV to the Plan.

The following table presents a reconciliation of the beginning and ending balances for the fair value measurements for the year ended December 31, 2016, for the period of February 1, 2105 to December 31, 2015, and for the period of January 1, 2015 to January 31, 2015, for which the Company has used significant unobservable inputs (Level 3):



	Successor Company				Predecessor Company
	December 31, 2016		December 31, 2015		January 31, 2015
	(Dollars In Thousands)				(Dollars In Thousands)
Balance, beginning of year	$	67,707	$	64,581	$	64,296
Interest income	3,519		3,126		285
Transfers from collective short-term investments fund	—		—		—
Transfers to collective short-term investments fund	—		—		—
Balance, end of year	$	71,226	$	67,707	$	64,581

The following table represents the Plan's Level 3 financial instrument, the valuation technique used, and the significant unobservable input and the ranges of values for that input as of December 31, 2016 (Successor Company):



Instrument	Fair Value		Principal Valuation Technique	Significant Unobservable Inputs	Range of Significant Input Values
	(Dollars In Thousands)
Group deposit administration annuity contract	$	71,226	Contract Value	Contract Rate	5.11% - 5.35%

Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect the amounts reported.

Defined Benefit Pension Plan Funding Policy

The Company's funding policy is to contribute amounts to the plan sufficient to meet the minimum funding requirements of the Employee Retirement Income Security Act ("ERISA") plus such additional amounts as the Company may determine to be appropriate from time to time. Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future.

Under the Pension Protection Act of 2006 ("PPA"), a plan could be subject to certain benefit restrictions if the plan's adjusted funding target attainment percentage ("AFTAP") drops below 80%. Therefore, the Company may make additional contributions in future periods to maintain an AFTAP of at least 80%. In general, the AFTAP is a measure of how well the plan is funded and is obtained by dividing the plan's assets by the plan's funding liabilities. AFTAP is based on participant data, plan provisions, plan methods and assumptions, funding credit balances, and plan assets as of the plan valuation date. Some of the assumptions and methods used to determine the plan's AFTAP may be different from the assumptions and methods used to measure the plan's funded status on a GAAP basis.

In July of 2012, the Moving Ahead for Progress in the 21st Century Act ("MAP-21"), which includes pension funding stabilization provisions, was signed into law. These provisions establish an interest rate corridor which is designed to stabilize the segment rates used to determine funding requirements from the effects of interest rate volatility. In August of 2014, the Highway and Transportation Funding Act of 2014 ("HATFA") was signed into law. HAFTA extends the funding relief provided by MAP-21 by delaying the interest rate corridor expansion. The funding stabilization provisions of MAP-21 and HATFA reduced the Company's minimum required defined benefit plan contributions for the 2013 and 2014 plan years. Since the funding stabilization provisions of MAP-21 and HATFA do not apply for Pension Benefit Guaranty Corporation ("PBGC") reporting purposes, the Company may also make additional contributions in future periods to avoid certain PBGC reporting triggers.

During the twelve months ended December 31, 2016, the Company contributed $1.9 million to the defined benefit pension plan for the 2015 plan year and $19.0 million to its defined benefit pension plan for the 2016 plan year. The $19.0 million contribution for the 2016 plan year was an acceleration of the contributions due during 2017 and was related to the funding of payments resulting from the lump sum window offered during the year as previously discussed herein. The Company has not yet determined what amount it will fund for 2017, but estimates that the amount will be between $1 million and $10 million.

Other Postretirement Benefits

In addition to pension benefits, the Company provides limited healthcare benefits to eligible retired employees until age 65. This postretirement benefit is provided by an unfunded plan. As of December 31, 2016 (Successor Company) and December 31, 2015 (Successor Company), the accumulated postretirement benefit obligation associated with these benefits was $0.1 million and $0.1 million, respectively.

The change in the benefit obligation for the retiree medical plan is as follows:



	Successor Company
	As of December 31,
	2016			2015
	(Dollars In Thousands)
Change in Benefit Obligation
Benefit obligation, beginning of year	$	137		$	247
Service cost	—			1
Interest cost	1			2
Actuarial (gain)/loss	(22		)	(113		)
Plan participant contributions	87			141
Benefits paid	(142		)	(141		)
Benefit obligation, end of year	$	61		$	137

For the retiree medical plan, the Company's discount rate assumption used to determine benefit obligation and the net periodic benefit cost as of December 31, 2016 (Successor Company), is 1.70% and 1.54%, respectively.

For a closed group of retirees over age 65, the Company provides a prescription drug benefit. As of December 31, 2016 (Successor Company) and December 31, 2015 (Predecessor Company), the Company's liability related to this benefit was less than $0.1 million. The Company's obligation is not materially affected by a 1% change in the healthcare cost trend assumptions used in the calculation of the obligation.

The Company also offers life insurance benefits for retirees from $10,000 up to a maximum of $75,000 which are provided through the payment of premiums under a group life insurance policy. This plan is partially funded at a maximum of $50,000 face amount of insurance. The accumulated postretirement benefit obligation associated with these benefits is as follows:



	Successor Company						Predecessor Company
	As of December 31, 2016			As of December 31, 2015			As of January 31, 2015
	(Dollars In Thousands)						(Dollars In Thousands)
Change in Benefit Obligation
Benefit obligation, beginning of year	$	9,063		$	9,781		$	9,288
Service cost	102			138			12
Interest cost	338			336			39
Actuarial (gain)/loss	604			(894		)	511
Benefits paid	(473		)	(298		)	(69		)
Benefit obligation, end of year	$	9,634		$	9,063		$	9,781

For the postretirement life insurance plan, the Company's discount rate assumption used to determine benefit obligation and the net periodic benefit cost as of December 31, 2016 (Successor Company), is 4.35% and 4.60%, respectively.

The Company's expected long-term rate of return assumption used to determine the net periodic benefit cost as of December 31, 2016 (Successor Company), is 2.75%. To determine an appropriate long-term rate of return assumption, the Company utilized 25 year average and annualized return results on the Barclay's short treasury index.

Investments of the Company's group life insurance plan are held by Wells Fargo Bank, N.A. Plan assets held by the Custodian are invested in a money market fund.

The fair value of each major category of plan assets for the Company's postretirement life insurance plan is as follows:



	Successor Company
	As of December 31,
	2016		2015
	(Dollars In Thousands)
Category of Investment
Money market fund	$	5,362	$	5,653

Investments are stated at fair value and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The money market funds are valued based on historical cost, which represents fair value, at year end. This method of valuation may produce a fair value calculation that may not be reflective of future fair values. Furthermore, while the Company believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2016 (Successor Company):



	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Money market fund	$	5,362	$	—	$	—	$	5,362

The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2015 (Successor Company):



	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Money market fund	$	5,653	$	—	$	—	$	5,653

For the year ended December 31, 2016 (Successor Company) and December 31, 2015 (Successor Company), there were no transfers between levels.

Investments are exposed to various risks, such as interest rate and credit risks. Due to the level of risk associated with investments and the level of uncertainty related to credit risks, it is at least reasonably possible that changes in risk in the near term could materially affect the amounts reported.

401(k) Plan

The Company sponsors a 401(k) Plan which covers substantially all employees. Employee contributions are made on a before-tax basis as provided by Section 401(k) of the Internal Revenue Code or as after-tax "Roth" contributions. Employees may contribute up to 25% of their eligible annual compensation to the 401(k) Plan, limited to a maximum annual amount as set periodically by the Internal Revenue Service ($18,000 for 2016). The Plan also provides a "catch-up" contribution provision which permits eligible participants (age 50 or over at the end of the calendar year), to make additional contributions that exceed the regular annual contribution limits up to a limit periodically set by the Internal Revenue Service ($6,000 for 2016). The Company matches the sum of all employee contributions dollar for dollar up to a maximum of 4% of an employee's pay per year per person. All matching contributions vest immediately.

Prior to 2009, employee contributions to the Company's 401(k) Plan were matched through use of an ESOP established by the Company. Beginning in 2009, the Company adopted a cash match for employee contributions to the 401(k) plan. For the year ended December 31, 2016, and for the period of February 1, 2015 to December 31, 2015 (Successor Company), the Company recorded an expense of $7.5 million and $6.3 million, respectively.

Effective as of January 1, 2005, the Company adopted a supplemental matching contribution program, which is a nonqualified plan that provides supplemental matching contributions in excess of the limits imposed on qualified defined contribution plans by federal tax law. The first allocations under this program were made in early 2006, with respect to the 2005 plan year. The expense recorded by the Company for this employee benefit was $0.6 million, $0.5 million, and $0.4 million, respectively, in 2016, 2015, and 2014.

Prior to the Merger date of February 1, 2015, the Company's outstanding and publicly traded common stock was a component of the investment options allowed to participants in the 401(k) Plan.

Deferred Compensation Plan

On February 1, 2015, the Company became a wholly owned subsidiary of Dai-ichi Life and the Company stock ceased to be publicly traded. Thus, any common stock equivalents within the plans converted into rights to receive the merger consideration of $70.00 per common stock equivalent.

As of February 1, 2015, the Company has continued the deferred compensation plans for officers and others. Compensation deferred was credited to the participants in cash, mutual funds, or a combination thereof. As of December 31, 2015 (Successor Company), the Company's obligations related to its deferred compensation plans are reported in other liabilities.