Note 10.

Employee Retirement Benefits

Employees who meet certain service requirements are covered under a defined contribution retirement savings plan, which includes IRS Section 401(k) provisions. We match up to 6% of the employee's eligible compensation, based on the employee's voluntary contribution. Our contributions and costs for the retirement savings plan were $1,823,000 in 2013, $1,900,000 in 2012 and $1,581,000 in 2011. These obligations are fully funded.

In addition to providing retirement savings benefits, we provide post-retirement health care and life insurance benefits for eligible employees. We are not currently funding these post-retirement benefits, but have accrued these liabilities. Employees hired on or after January 1, 2007 are not eligible for post-retirement health care and life insurance benefits. Based on valuation assumptions at December 31, 2013, post-retirement benefits expected to be paid for the next five years and thereafter are as follows: 2014 - $396,000; 2015 - $425,000; 2016 – $473,000; 2017 – $485,000; 2018 - $552,000 and the five years thereafter – $3,506,000.

We are required to recognize the funded status of our post-retirement benefit plans on our Consolidated Balance Sheets and recognize as a component of accumulated other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the period, but are not recognized as components of net periodic benefit cost.

The following table summarizes the changes in the balance sheet amounts, which include the entire benefit obligation and assets associated with our post-retirement benefit plans as of December 31, 2013 and 2012, respectively.

(Dollars in thousands)	2013			2012
Change in benefit obligation
Benefit obligation at beginning of year	$	11,044		$	17,326
Service cost		268			599
Interest cost		480			797
Amendments		-			(7,306	)
Actuarial loss		(776	)		(918	)
Benefits paid		(287	)		(488	)
Valuation adjustment		-			1,034
Benefit obligation at end of year	$	10,729		$	11,044

The Accumulated Post-Retirement Benefit Obligation ("APBO") is the actuarial present value of the benefits attributed to employee service rendered to a particular date. The decrease in APBO during 2012 is substantially due to a significant plan design change reflected in the December 31, 2012 valuation.

	As of December 31
(Dollars in thousands)	2013			2012			2011
Components of net periodic benefit cost
Service cost	$	268		$	599		$	509
Interest cost		480			797			799
Expected return on plan assets		-			-			-
Amortization of transition obligation		-			60			60
Amortization of prior service credit		(944	)		(76	)		(55	)
Recognized net actuarial loss		479			630			429
Net periodic benefit cost	$	283		$	2,010		$	1,742

Discount rate used to determine benefit obligation
As of December 31:		5.0	%		4.4	%		4.4	%

In 2014, we expect to recognize approximately $945,000 of the prior service credit and $392,000 of the net actuarial loss as a component of total period post-retirement benefit expense and capitalized into projects.

Health Care Trend Rates for the Year Ending December 31, 2013
Year	Pre-Medicare	Post-Medicare
2014	8.00%	n/a
2015	7.50%	n/a
2016	7.00%	n/a
2017	6.50%	n/a
2018	6.00%	n/a
2019	5.50%	n/a
2020	5.00%	n/a
Ultimate	4.50%	n/a
Ultimate Reached in Year	2021	n/a

(Dollars in thousands)
Effect of 1% Increase and 1% Decrease in Trend Rate	1% Increase				1% Decrease

Accumulated post-retirement benefit obligation as of December 31, 2013
Dollar change		$	302			$	(264	)
Percentage change			3.01	%			(2.64	)%

Service cost and interest cost
Dollar change		$	30			$	(26	)