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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
We have one qualified non-contributory defined benefit pension plan covering a portion of its employees and an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plans. We closed enrollment in the pension plans to salaried employees hired after December 31, 2005. Effective December 31, 2016, we froze benefits for all employees participating in the pension plan. In lieu of the pension plan, we provide those employees with an enhanced 401(k) plan match similar to what is currently provided to employees hired after December 31, 2005. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change.
The following tables set forth the change in the projected benefit obligation and plan assets and reconcile the funded status and the amounts recognized in the Consolidated Balance Sheets for the pension and postretirement benefit plans for the two years ended December 31:
 PensionPostretirement
 2020201920202019
Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year$90,261 $79,559 $1,634 $1,303 
Service cost— — 6 6 
Interest cost2,706 3,197 51 54 
Actuarial loss (gain)10,915 10,828 209 285 
Benefits paid(3,413)(3,323)(14)(14)
Projected benefit obligation at end of year$100,469 $90,261 $1,886 $1,634 

Change in Plan Assets
Fair value of plan assets at beginning of year$66,460 $50,949 — — 
Actual return on plan assets13,329 12,975 — — 
Employer contributions3,005 6,413 14 14 
Benefits paid(3,413)(3,284)(14)(14)
Other expense(498)(593)— — 
Fair value of plan assets at end of year$78,883 $66,460 — — 

Funded Status at End of Year:
Net accrued benefit cost($21,586)($23,801)($1,886)($1,634)

Amounts Recognized in the Consolidated
Balance Sheets Consist of:
Current liabilities($86)($86)($41)($38)
Noncurrent liabilities(21,500)(23,715)(1,845)(1,596)
Net amount recognized($21,586)($23,801)($1,886)($1,634)
Net gains or losses recognized in other comprehensive (loss) income for the three years ended December 31 are as follows:
 PensionPostretirement
 202020192018202020192018
Net (losses) gains ($1,587)($1,514)($1,743)($207)($285)$149 
In 2020, net losses recognized in other comprehensive income for our pension plan was primarily due to an approximate 80 bps decline in the discount rate ($11.2 million) and unfavorable demographic experience ($0.4 million), partially offset by higher than expected return on plan assets ($9.3 million) and updates to mortality rates ($0.7 million). Net losses recognized in other comprehensive income for our postretirement plan was primarily due to an approximate 74 bps decline in the discount rate ($0.2 million).
Net gains or losses reclassified from other comprehensive income and recognized as a component of pension and postretirement expense for the three years ended December 31 are as follows:
 PensionPostretirement
 202020192018202020192018
Amortization of losses (gains)$861 $449 $673 $8 — $2 
Net losses that have not yet been included in pension and postretirement expense for the two years ended December 31, but have been recognized as a component of AOCI are as follows:
 PensionPostretirement
 2020201920202019
Net losses($25,043)($24,317)($491)($292)
Deferred income tax benefit 1,216 1,216 6 6 
AOCI($23,827)($23,101)($485)($286)
For pension and postretirement plans with accumulated benefit obligations in excess of plan assets, the following table sets forth the projected and accumulated benefit obligations and the fair value of plan assets for the two years ended December 31:
 20202019
Projected benefit obligation$100,469 $90,261 
Accumulated benefit obligation100,469 90,261 
Fair value of plan assets78,883 66,460 
The following tables set forth the components of net pension and postretirement benefit cost (credit) that have been recognized during the three years ended December 31:
 PensionPostretirement
 202020192018202020192018
Components of Net Periodic Benefit Cost (Credit)
Service cost— — — $6 $6 $7 
Interest cost2,706 3,197 3,021 51 54 38 
Expected return on plan assets(3,504)(3,107)(3,934)— — — 
Amortization of losses (gains)861 449 673 8 — 2 
Net periodic benefit cost (credit)$63 $539 ($240)$65 $60 $47 
The following table sets forth the principal assumptions inherent in the determination of benefit obligations and net periodic benefit cost of the pension and postretirement benefit plans as of December 31:
 PensionPostretirement
 202020192018202020192018
Assumptions used to determine benefit obligations at December 31:
Discount rate2.26 %3.06 %4.11 %2.42 %3.16 %4.18 %
Assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate 3.06 %4.11 %3.48 %3.16 %4.18 %3.56 %
Expected long-term return on plan assets5.72 %5.72 %7.17 %— — — 
At December 31, 2020, the pension plan’s discount rate was 2.3%, which closely approximates interest rates on high quality, long-term obligations. In 2020, the expected return on plan assets remained flat at 5.7%, which is based on historical and expected long-term rates of return on broad equity and bond indices and consideration of the actual annualized rate of return. We utilize this information in developing assumptions for returns, risks and correlations of asset classes, which are then used to establish the asset allocation ranges.
INVESTMENT OF PLAN ASSETS
Our Pension and Savings Plan Committee and the Audit Committee of the Board of Directors oversee the pension plans’ investment program, which is designed to maximize returns and provide sufficient liquidity to meet plan obligations while maintaining acceptable risk levels. The investment approach emphasizes diversification by allocating the plans’ assets among asset categories and selecting investment managers whose various investment methodologies will be minimally correlative with each other.
In 2020, we transitioned to a liability-driven investment (“LDI”) strategy. An LDI strategy focuses on maintaining a close to fully-funded status over the long-term with minimal funded status risk. This is achieved by investing more of the plan assets in fixed income instruments to more closely match the duration of the plan liability. The investment allocation to fixed income instruments will increase as the plans' funded status increases. Investment target allocation percentages for equity securities can range up to 80 percent.
Our pension plans’ asset allocation (excluding short-term investments) at December 31, 2020 and 2019 are as follows:
 Percentage of 
Plan Assets
Asset Category20202019
Domestic equity securities44 %41 %
International equity securities30 %28 %
Domestic fixed income securities21 %25 %
International fixed income securities3 %4 %
Real estate fund2 %2 %
Total100 %100 %
Investments within the equity categories may include large capitalization, small capitalization and emerging market securities, while the international fixed income portfolio may include emerging markets debt. Pension assets did not include a direct investment in Rayonier common shares during the years ended December 31, 2020 and 2019.
NET ASSET VALUE MEASUREMENTS
Separate investment accounts are measured using the unit value calculated based on the Net Asset Value (“NAV”) of the underlying assets. The NAV is based on the fair value of the underlying investments held by each fund less liabilities divided by the units outstanding as of the valuation date. These funds are not publicly traded; however, the unit price calculation is based on observable market inputs of the funds’ underlying assets.
The following table sets forth the net asset value of the plan assets as of December 31, 2020 or 2019.
December 31, 2020December 31, 2019
Asset Category
Investments at Net Asset Value:
     Separate Investment Accounts$78,883 $66,460 
Total Investments at Net Asset Value$78,883 $66,460 
CASH FLOWS
Our expected benefit payments to be made for the next 10 years are as follows:
 Pension
Benefits		Postretirement
Benefits
2021$3,774 $41 
20224,026 45 
20234,135 48 
20244,327 52 
20254,445 55 
2026-203023,200 328 
We have no pension contribution requirements in 2021.
DEFINED CONTRIBUTION PLANS
We provide a defined contribution plan to all of our eligible employees. Upon completion of the merger with Pope Resources, former eligible Pope Resource employees were immediately eligible to participate in the Rayonier 401(k) plan. Pope Resources employees’ year of service were credited to the 401(k) plan for vesting purposes. Company match contributions charged to expense for these plans were $1.1 million, $1.0 million and $0.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. The defined contribution plan includes Rayonier common shares with a fair market value of $8.5 million and $10.6 million at December 31, 2020 and 2019, respectively. As of June 1, 2016, the Rayonier Inc. Common Stock Fund was closed to new contributions. Transfers out of the fund will continue to be permitted, but no new investments or transfers into the fund are allowed.
As discussed above, the defined benefit pension plan is currently frozen. In lieu of the pension plan, employees are eligible to receive an enhanced match contribution. Company enhanced match contributions charged to expense for the years ended December 31, 2020, 2019 and 2018 were $1.0 million, $0.9 million and $0.8 million, respectively.