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Post-Retirement Health Care
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Post-Retirement Health Care
Post-Retirement Health Care
Guidance on employers’ accounting for other post-retirement plans requires recognition of the overfunded or underfunded status on the balance sheet.  Under this guidance, gains and losses, prior services costs and credits and any remaining transition amounts under previous guidance not yet recognized through net periodic benefit cost are recognized in accumulated other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost.  Also, the measurement date – the date at which the benefit obligation and plan assets are measured – is required to be the Corporation’s fiscal year-end.

(In thousands)
2016

 
2015

Change in benefit obligation
 
 
 
Benefit obligation at beginning of year

$20,884

 

$21,972

Service cost
735

 
803

Interest cost
846

 
816

Benefits paid
(1,017
)
 
(1,009
)
Actuarial (gain)/loss
(295
)
 
(1,698
)
Benefit obligation at end of year

$21,153

 

$20,884

Change in plan assets
 

 
 

Fair value at beginning of year
—

 
—

Actual return on assets
—

 
—

Employer contribution
1,017

 
1,009

Transferred out
—

 
—

Benefits paid
(1,017
)
 
(1,009
)
Fair value at end of year
—

 
—

Funded Status of Plan

($21,153
)
 

($20,884
)
Amounts recognized in the Statement of Financial Position consist of:
 

 
 

Current liabilities

$1,034

 

$1,014

Noncurrent liabilities

$20,119

 

$19,870

Amounts recognized in Accumulated Other Comprehensive Income (before tax) consist of:
 

 
 

Actuarial (gain)/loss

$2,373

 

$2,730

Change in Accumulated Other Comprehensive Income (before tax):
 

 
 

Amount disclosed at beginning of year

$2,730

 

$4,665

Actuarial (gain)/loss
(295
)
 
(1,698
)
Amortization of transition amount
(62
)
 
(237
)
Amount disclosed at end of year

$2,373

 

$2,730


Estimated Future Benefit Payments (In thousands)
Fiscal 2017
$
1,034

Fiscal 2018
1,025

Fiscal 2019
1,036

Fiscal 2020
1,060

Fiscal 2021
1,083

Fiscal 2022 – 2026
6,013

 
 
Expected Contributions During Fiscal 2017
 

Total
$
1,034



The discount rates at fiscal year-end 2016, 2015 and 2014, were 4.0 percent, 4.2 percent and 3.8 percent, respectively.  The Corporation's payment for these benefits has reached the maximum amounts per the plan; therefore, healthcare trend rates have no impact on the Corporation’s cost.  There were no funds designated as plan assets.

Components of Net Periodic Post-Retirement Benefit Cost (in thousands)
2017

Service cost
$
742

Interest cost
825

Amortization of net (gain)/loss
25

Net periodic post-retirement benefit cost/(income)
$
1,592


 
A discount rate of 4.0 percent was used to determine net periodic benefit cost for 2017.  The discount rate is set at the measurement date to reflect the yield of a portfolio of high quality, fixed income debt instruments.  There are no plan assets invested.