Employee Benefits

12 Months Ended

Dec. 31, 2019

Employee Benefits

BOK Financial sponsors a defined benefit cash balance Pension Plan for all employees who satisfy certain age and service requirements. Pension Plan benefits were curtailed as of April 1, 2006. No participants may be added to the plan and no additional service benefits will be accrued. Interest continues to accrue on employees' account balances at a variable rate tied to the five-year trailing average of five-year U.S. Treasury securities plus 1.5%. The rate has a floor of 3.0% and a ceiling of 5.0%. The 2019 quarterly variable rates ranged from 3.32% to 3.40%.

The projected benefit obligation and fair value of plan assets, respectively, were $24.5 million and $36.4 million at December 31, 2019 and $24.5 million and $33.6 million at December 31, 2018. The net periodic benefit credit was $815 thousand for December 31, 2019, $583 thousand for December 31, 2018 and $704 thousand for December 31, 2017. Total expected future benefit payments related to the Pension Plan were $27.8 million at December 31, 2019.

The following table presents the weighted-average assumptions used in the measurement of the Company's net periodic benefit cost as of December 31:



	2019		2018
Discount rate	4.10	%	3.30	%
Expected return on plan assets	5.50	%	5.50	%

Assets of the Pension Plan consist primarily of shares in the Cavanal Hill Active Core Fund. The stated objective of this fund is to provide an attractive total return with a well-balanced mix of equities and bonds. The typical portfolio mix is approximately 60% equities and 40% bonds. The net asset value of shares in the Cavanal Hill Funds is reported daily based on market quotations for the Fund’s securities. Management considers the Fund's recent and long-term performance as indicators when setting the expected return on plan assets. No minimum contribution was required for 2019, 2018 or 2017.

Employee contributions to the Thrift Plan are eligible for Company matching equal to 6% of base compensation, as defined in the plan. The Company-provided matching contribution rates range from 50% for employees with less than 4 years of service to 200% for employees with 15 or more years of service. Additionally, a maximum Company-provided, non-elective annual contribution of up to $750 per participant is provided for employees whose annual base compensation is less than $40,000. Participants may direct investments in their accounts to a variety of options, including a BOK Financial common stock fund and Cavanal Hill funds. Employer contributions, which are invested in accordance with the participant’s investment options, vest over five years. Thrift Plan expenses were $27.6 million for 2019, $25.1 million for 2018 and $22.8 million for 2017.