13. 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 of the date the plan was frozen.

Net periodic pension cost (benefit) for the years ended December 31, 2016, 2015 and 2014 was as follows:

	For the Year Ended December 31,
	2016			2015			2014
Interest cost	$	270		$	272		$	280
Expected return on assets		(319	)		(332	)		(371	)
Amortization of net loss		82			88			45
Net periodic pension cost (benefit)	$	33		$	28		$	(46	)

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

	2016			2015
Projected benefit obligation at beginning of year	$	6,465		$	7,167
Interest cost		270			272
Actuarial (gain) loss		238			(496	)
Expenses paid		(92	)		(89	)
Benefits paid		(378	)		(389	)
Projected benefit obligation at end of year	$	6,503		$	6,465
Accumulated benefit obligation at end of year	$	6,503		$	6,465

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

	2016			2015			2014
Discount rate for net periodic pension cost		4.30	%		3.90	%		4.70	%
Discount rate for benefit obligations		4.00	%		4.30	%		3.90	%
Expected long-term return of plan assets		7.75	%		7.50	%		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. Though inherent risks of equity exposure exist, 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 the plan.

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

	2016			2015
Fair value of plan assets at beginning of year	$	5,443		$	5,713
Actual return on plan assets		210			60
Company contributions		—			148
Expenses paid		(92	)		(89	)
Benefits paid		(378	)		(389	)
Fair value of plan assets at end of year	$	5,183		$	5,443

The fair value of plan assets are all categorized as level 1 and were determined based on period end closing, quoted prices in active markets.

The weighted average asset allocations at December 31, 2016 and 2015 are as follows:

	2016			2015
U.S. Equities securities		72	%		83	%
U.S. Debt securities		24	%		15	%
Cash		4	%		2	%
Total		100	%		100	%

The following table provides a reconciliation of the funded status of the plan at December 31, 2016 and 2015:

	2016			2015
Projected benefit obligation	$	6,503		$	6,465
Plan assets at fair value		5,183			5,443
Funded status	$	(1,320	)	$	(1,022	)

The funded status shown above is included in other long-term liabilities in the Company’s Consolidated Statements of Financial Position at December 31, 2016 and 2015. The Company doesn’t expect to make a contribution to the plan in 2017.

Benefit payments projected for the plan are as follows:

2017	$	377
2018		369
2019		375
2020		379
2021		379
2022-2026		1,901

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 $2,324, $2,363 and $3,018 in 2016, 2015 and 2014, 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 related to the SERP was approximately $192, $188 and $402 for the years ended December 2016, 2015 and 2014, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 4.0% at December 31, 2016 and 4.3% at December 31, 2015. The SERP liability was approximately $3,319 and $4,174 at December 31, 2016 and 2015, 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.