Retirement Plans

The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s frozen defined benefit pension plan (“The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02”) provides benefits primarily based upon a fixed amount for each year of service as defined.

Net periodic pension cost for the years ended December 31, 2014, 2013 and 2012 was as follows:



	2014			2013			2012
	Underfunded			Underfunded			Underfunded
Interest cost	$	280		$	259		$	287
Expected return on assets	(371		)	(333		)	(236		)
Amortization of net loss	45			111			101
Net periodic pension cost	$	(46	)	$	37		$	152

The reconciliation of changes in projected benefit obligations are as follows:



	2014			2013
Accumulated benefit obligation at beginning of year	$	6,150		$	7,109
Interest cost	280			259
Actuarial (gain) loss	1,235			(738		)
Expenses paid	(95		)	(74		)
Benefits paid	(403		)	(406		)
Accumulated benefit obligation at end of year	$	7,167		$	6,150

The assumptions used to determine the net periodic benefit cost and benefit obligations are as follows:



	2014		2013		2012
Discount rate for net periodic pension cost	4.70	%	3.75	%	4.50	%
Discount rate for benefit obligations	3.90	%	4.70	%	3.75	%
Expected long-term return of plan assets	8.00	%	8.00	%	8.00	%

The expected long-term rate of return assumption is based on the actual historical rate of return on assets adjusted to reflect recent market conditions and future expectations consistent with the Company’s current asset allocation and investment policy. This policy provides for aggressive capital growth balanced with moderate income production. The inherent risks of equity exposure exists, however, returns generally are less volatile than maximum growth programs. The assumed discount rates represent long-term high quality corporate bond rates commensurate with the liability duration of its plan.

The following table reflects the change in the fair value of the plan’s assets:



	2014			2013
Fair value of plan assets at beginning of year	$	5,577		$	4,528
Actual return on plan assets	316			1,165
Company contributions	318			364
Expenses paid	(95		)	(74		)
Benefits paid	(403		)	(406		)
Fair value of plan assets at end of year	$	5,713		$	5,577

The fair value of plan assets are all categorized as level 1 and were determined based on period end closing prices in active markets. The weighted average asset allocations at December 31, 2014 and 2013 are as follows:



	2014		2013
U.S. Equities securities	82	%	82	%
U.S. Debt securities	17	%	17	%
Cash	1	%	1	%
Total	100	%	100	%

The following table provides a reconciliation of the funded status of the plan at December 31, 2014 and 2013:



	2014			2013
Projected benefit obligation	$	7,167		$	6,150
Plan assets at fair value	5,713			5,577
Funded status	$	(1,454	)	$	(573	)

The funded status shown above is included in other long-term liabilities in the Company’s Consolidated Statements of Financial Position at December 31, 2014 and 2013. The Company expects to make a contribution of $288 to the plan in 2015.

Benefit payments projected for the plan are as follows:



2015	$	387
2016	385
2017	381
2018	373
2019	379
2020-2024	1,936

Effective January 1, 2012 the Company changed its profit sharing and 401(k) plan which included an increase in the Company’s matching contributions and the frequency of the Company’s match. The Myers Industries Profit Sharing and 401(k) Plan is maintained for the Company’s U.S. based employees, not covered under defined benefit plans, who have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of $3,018, $2,802 and $2,609 in 2014, 2013 and 2012, respectively.

In addition, the Company has a Supplemental Executive Retirement Plan (“SERP”) to provide certain participating senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Expense (income) related to the SERP was approximately $402, $(152), and $477 for the years ended December 2014, 2013 and 2012, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 3.90% at December 31, 2014 and 4.70% at December 31, 2013. The SERP liability was approximately $4,280 and $4,270 at December 31, 2014 and 2013, respectively, and is included in Accrued Employee Compensation and Other Long-Term Liabilities on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.