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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
DEFINED 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.
In December 2022, the Rayonier Board of Directors approved the resolution to terminate the Defined Benefit Plan. Impacted parties were notified on or before December 28, 2022 of the termination and alternative distribution options. The plan is expected to be terminated in the first quarter of 2023. In conjunction with the termination of the Defined Benefit Plan, we also plan to terminate the unfunded plan and distribute all benefits in accordance with Section 409A of the Code. We expect to recognize pre-tax non-cash pension settlement charges related to the actuarial losses currently in AOCI, upon settlement of the obligations of the Defined Benefit Plan. These charges are currently expected to occur in 2023, with the specific timing and final amounts dependent upon several factors.
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
 2022202120222021
Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year$93,799 $100,469 $1,890 $1,886 
Service cost— — 7 8 
Interest cost2,434 2,228 51 45 
Actuarial gain(22,376)(5,112)(513)(35)
Benefits paid(3,609)(3,519)(14)(14)
Expenses paid(186)(267)— — 
Projected benefit obligation at end of year$70,062 $93,799 $1,421 $1,890 
Change in Plan Assets
Fair value of plan assets at beginning of year$85,079 $78,883 — — 
Actual return on plan assets(18,527)9,896 — — 
Employer contributions86 86 14 14 
Benefits paid(3,609)(3,519)(14)(14)
Other expense(186)(267)— — 
Fair value of plan assets at end of year$62,843 $85,079 — — 
Funded Status at End of Year:
Net accrued benefit cost($7,219)($8,720)($1,421)($1,890)
Amounts Recognized in the Consolidated
Balance Sheets Consist of:
Current liabilities($86)($86)($50)($46)
Noncurrent liabilities(7,133)(8,634)(1,371)(1,844)
Net amount recognized($7,219)($8,720)($1,421)($1,890)
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:
 20222021
Projected benefit obligation$70,062 $93,799 
Accumulated benefit obligation70,062 93,799 
Accumulated postretirement benefit obligation1,421 1,890 
Fair value of plan assets62,843 85,079 
ACTUARIAL (GAIN) LOSS
PENSION
Key components of the actuarial gains and losses contributing to the period change in the benefit obligation are as follows:
•Changes in participant demographics resulted in an actuarial gain of approximately $0.6 million, which is primarily due to higher than expected mortality among participants.
•Changes in contingent survivor mortality resulted in an actuarial loss of approximately $0.5 million.
•Changes in the discount rate from 2.65% to 4.96% resulted in an actuarial gain of approximately $22.4 million.
•Changes in plan assets during the fiscal year ending December 31, 2022 resulted in an investment loss of $22.0 million, which is due to the difference between the 4.97% expected return compared to the actual return of (22.26%).
POSTRETIREMENT
Key components of the actuarial gains and losses contributing to the period change in the benefit obligation are as follows:
•Introduction of an expected salary increase rate of 3.50% resulted in an actuarial loss of $0.1 million.
•Changes in the discount rate from 2.75% to 5.01% resulted in an actuarial gain of approximately $0.6 million.
OTHER COMPREHENSIVE INCOME
Net gains or losses recognized in other comprehensive (loss) income for the three years ended December 31 are as follows:
 PensionPostretirement
 202220212020202220212020
Net gains (losses)$362 $11,262 ($1,587)$512 $40 ($207)
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
 202220212020202220212020
Amortization of losses (gains)$738 $1,154 $861 $15 $20 $8 
ACCUMULATED OTHER COMPREHENSIVE INCOME/LOSS (AOCI)
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
 2022202120222021
Net (losses) income($11,527)($12,627)$96 ($431)
Deferred income tax benefit 1,216 1,216 6 6 
AOCI($10,311)($11,411)$102 ($425)
NET PENSION AND POSTRETIREMENT BENEFIT (CREDIT) COST
The following tables set forth the components of net pension and postretirement benefit (credit) cost that have been recognized during the three years ended December 31:
 PensionPostretirement
 202220212020202220212020
Components of Net Periodic Benefit (Credit) Cost
Service cost— — — $7 $8 $6 
Interest cost2,434 2,228 2,706 51 45 51 
Expected return on plan assets(3,486)(3,746)(3,504)— — — 
Amortization of losses (gains)738 1,154 861 15 20 8 
Net periodic benefit (credit) cost ($314)($364)$63 $73 $73 $65 
The service cost component of our benefit expense is recorded within the operating expense line item “Selling and general expenses” within the Consolidated Statements of Income. All other components of the benefit costs expense are included within the “Interest and miscellaneous income, net” line item of the Consolidated Statements of Income.
VALUATION ASSUMPTIONS
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
 202220212020202220212020
Assumptions used to determine benefit obligations at December 31:
Discount rate4.96 %2.65 %2.26 %5.01 %2.75 %2.42 %
Assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate 2.65 %2.26 %3.06 %2.75 %2.42 %3.16 %
Expected long-term return on plan assets4.97 %5.72 %5.72 %— — — 
DISCOUNT RATE
At December 31, 2022, the pension plan’s discount rate was 5.0%. The discount rate is derived from the Financial Times Stock Exchange (FTSE) Pension Discount Curve (f/k/a Citigroup). The Pension Discount Curve (PDC) is a set of yields on hypothetical AA, zero coupon bonds whose maturities range from 6 months up to 30 years. The yields of the PDC are used to discount pension liabilities. The PDC is calculated based on a universe of AA rated corporate bonds from the FTSE US Broad Investment-Grade Bond Index and the yields of the FTSE Treasury model curve.
The pension plan's future expected cash flows are then matched to the spot rates on the yield curve and a single equivalent discount rate is determined, which produces the same present value as the spot rates.
EXPECTED LONG-TERM RETURN ON PLAN ASSETS
In 2022, the expected return on plan assets was 5.0%, which is based on historical returns on current asset allocations and expected returns using the Black-Litterman method.
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, 2022 and 2021 are as follows:
 Percentage of 
Plan Assets
Asset Category20222021
Domestic equity securities28 %29 %
International equity securities20 %18 %
Domestic fixed income securities50 %51 %
Real estate fund2 %2 %
Total100 %100 %
Investments within the equity categories may include large capitalization, small capitalization and emerging market securities. Pension assets did not include a direct investment in Rayonier common shares during the years ended December 31, 2022 and 2021.
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, 2022 or 2021:
December 31, 2022December 31, 2021
Asset Category
Investments at Net Asset Value:
     Separate Investment Accounts$62,843 $85,079 
Total Investments at Net Asset Value$62,843 $85,079 
CASH FLOWS
Our expected benefit payments to be made for the next 10 years are as follows:
 Pension
Benefits		Postretirement
Benefits
2023$3,999 $50 
20244,180 53 
20254,338 57 
20264,478 62 
20274,594 66 
2028-203223,730 390 
We expect to make cash contributions in 2023 of approximately $7.6 million in order to fund the Defined Benefit Plan on a plan termination basis. The Defined Benefit Plan will be settled upon completion of lump sum distributions and purchase of annuity contracts. The Excess Benefit Plan will be settled entirely with lump sum payments upon termination with expected cash contributions in 2023 of approximately $1.3 million. Projected cash contributions are an estimate, as actual amounts will be dependent upon the nature and timing of participant settlements, interest rates, as well as prevailing market conditions.
DEFINED CONTRIBUTION PLANS
We provide a defined contribution plan to all of our eligible employees. Company contributions charged to expense for these plans were $2.5 million, $2.2 million and $2.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. The defined contribution plan includes Rayonier common shares with a fair market value of $8.3 million and $11.0 million at December 31, 2022 and 2021, 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.