Postretirement Benefits

The Company sponsors a postretirement medical and life insurance plan covering substantially all administrative and restaurant management personnel who retire or terminate after qualifying for such benefits.

The following was the change in benefit obligation, plan assets and funded status at December 29, 2019 and December 30, 2018:



	December 29, 2019			December 30, 2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	4,320		$	4,838
Service cost	145			196
Interest cost	150			178
Plan participants' contributions	95			97
Actuarial gain	(1,972		)	(894		)
Benefits paid	(198		)	(99		)
Medicare part D prescription drug subsidy	15			4
Benefit obligation at end of year	$	2,555		$	4,320
Change in plan assets:
Fair value of plan assets at beginning of year	$	—		$	—
Employer contribution (refunds)	88			(2		)
Plan participants' contributions	95			97
Benefits paid	(198		)	(99		)
Medicare part D prescription drug subsidy	15			4
Fair value of plan assets at end of year	—			—
Funded status	$	(2,555	)	$	(4,320	)
Weighted average assumptions:
Discount rate used to determine benefit obligations	2.62		%	4.17		%
Discount rate used to determine net periodic benefit cost	4.17		%	3.60		%

The discount rate is determined based on high-quality fixed income investments that match the duration of expected retiree medical and life insurance benefits. The Company has typically used the corporate AA/Aa bond rate for this assumption.

Components of net periodic postretirement benefit expense recognized in the consolidated statements of comprehensive income were:



	Year ended
	December 29, 2019			December 30, 2018			December 31, 2017
Service cost	$	145		$	196		$	192
Interest cost	150			178			191
Amortization of net loss	66			208			222
Amortization of prior service credit	(350		)	(352		)	(355		)
Net periodic postretirement benefit expense	$	11		$	230		$	250

Amounts recognized in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit expense, consisted of:



	Year ended
	December 29, 2019			December 30, 2018
Prior service credit	$	913		$	1,265
Net gain (loss)	210			(1,826		)
Deferred income taxes	(501		)	(85		)
Accumulated other comprehensive loss	$	622		$	(646	)

The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit expense over the next fiscal year is de minimis. The amount of prior service credit for the postretirement benefit plan that will be amortized from accumulated other comprehensive loss into net periodic postretirement benefit expense over the next fiscal year is $0.3 million.

The following table reflects the changes in accumulated other comprehensive loss for the years ended December 29, 2019 and December 30, 2018:



	Year ended
	December 29, 2019			December 30, 2018
Actuarial gain	$	(1,972	)	$	(894	)
Amortization of net loss	(66		)	(208		)
Amortization of prior service credit	350			352
Deferred income taxes	420			186
Total recognized in accumulated other comprehensive loss	$	(1,268	)	$	(564	)

Assumed health care cost trend rates at the years ended were as follows:



	December 29, 2019		December 30, 2018		December 31, 2017
Medical benefits cost trend rate assumed for the following year pre-65	6.75	%	7.00	%	7.25	%
Medical benefits cost trend rate assumed for the following year post-65	4.50	%	5.00	%	6.25	%
Prescription drug cost trend rate assumed for the following year	7.00	%	9.50	%	10.50	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	3.78	%	3.78	%	3.89	%
Year that the rate reaches the ultimate trend rate	2075		2075		2075

The assumed healthcare cost trend rate represents the Company's estimate of the annual rates of change in the costs of the healthcare benefits currently provided by the Company's postretirement plan. The healthcare cost trend rate implicitly considers estimates of healthcare inflation, changes in healthcare utilization and delivery patterns, technological advances and changes in the health status of the plan participants. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in the assumed healthcare cost trend rates would have the following effects:



	1% Point Increase		1% Point Decrease
Effect on total of service and interest cost	$	80	$	58
Effect on postretirement benefit obligation	$	175	$	195

During 2020, the Company expects to contribute approximately $0.1 million to its postretirement benefit plan. The benefits, net of Medicare Part D subsidy receipts, expected to be paid in each year from 2020 through 2024 are $0.1 million, $0.2 million, $0.2 million, $0.2 million and $0.2 million respectively, and for the years 2025-2029 the aggregate amount is $1.1 million.