For employee retirement benefits, the Company maintains certain defined contributions plans and other active and frozen defined benefit plans. The majority of the defined benefit obligation at December 31, 2013 relates to the active defined benefit plan for the Company's Zurich office employees (the Zurich Plan).

Contributions are made by the Company, and in some locations, these contributions are supplemented by the local plan participants. Contributions are based on a percentage of the participant's base salary depending upon competitive local market practice and vesting provisions meeting legal compliance standards and market trends. The accumulated benefits for the majority of these plans vest immediately or over a four-year period. As required by law, certain retirement plans also provide for death and disability benefits and lump sum indemnities to employees upon retirement.

The Company incurred expenses for these defined contribution arrangements of $14.5 million, $15.7 million and $16.0 million for the years ended December 31, 2013, 2012 and 2011, respectively.

The Company maintains the Zurich Plan, which is classified as a hybrid plan and accounted for as a defined benefit plan under U.S. GAAP. At December 31, 2013 and 2012, the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars):

		2013		2012

Funded status
Unfunded pension obligation at beginning of year	$	32,262	$	25,162

Change in pension obligation
Service cost		6,934		6,474
Interest cost		2,314		2,976
Plan participants’ contributions		1,938		1,998
Actuarial (gain) loss		(8,408)		7,046
Plan amendments		0		(707)
Benefits paid		(216)		(8,582)
Foreign currency adjustments		2,901		4,349
Settlements		(13,783)		0

Change in pension obligation		(8,320)		13,554

Change in fair value of plan assets
Actual return on plan assets		3,119		3,782
Employer contributions		5,922		5,941
Plan participants’ contributions		1,938		1,998
Benefits paid		(216)		(8,582)
Foreign currency adjustments		2,348		3,315
Settlements		(13,783)		0

Change in fair value of plan assets		(672)		6,454


Funded status
Unfunded pension obligation at end of year	$	24,614	$	32,262
Additional information:
Projected benefit obligation at end of year	$	126,390	$	134,710
Accumulated pension obligation at end of year		123,524		129,492
Fair value of plan assets at end of year		101,776		102,448

At December 31, 2013 and 2012, the funded status was included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets. The total amounts recognized in Accumulated other comprehensive (loss) income at December 31, 2013 and 2012 were $12.9 million (net of $3.4 million of taxes) and $22.8 million (net of $6.1 million of taxes), respectively.

The net periodic benefit cost for the years ended December 31, 2013, 2012 and 2011 were $10.7 million, $8.3 million and $10.0 million, respectively.

The investment strategy of the Zurich Plan's Pension Committee is to achieve a consistent long-term return, which will provide sufficient funding for future pension obligations while limiting risk. The expected long-term rate of return on plan assets is based on the expected asset allocation and assumptions concerning long-term interest rates, inflation rates and risk premiums for equities above the risk-free rates of return. These assumptions take into consideration historical long-term rates of return for the relevant asset categories. The investment strategy is reviewed regularly.

The fair value of the Zurich Plan's assets at December 31, 2013 and 2012 were insured funds and cash (Level 2) of $101.8 million and $102.4 million, respectively. The insured funds comprise the accumulated pension plan contributions and investment returns thereon, which are held in an insurance arrangement that provides at least a guaranteed minimum investment return. The insured funds are held by a collective foundation of AXA Life Ltd. and are guaranteed under the insurance arrangement.

The assumptions used to determine the Zurich Plan's pension obligation and net periodic benefit cost for the years ended December 31, 2013, 2012 and 2011 were as follows:

	2013					2012					2011
		Pension		Net periodic			Pension		Net periodic			Pension		Net periodic
		obligation		benefit cost			obligation		benefit cost			obligation		benefit cost

Discount rate		2.25	%	1.75	%		1.75	%	2.5	%		2.5	%	2.75	%
Expected return on plan assets		0		1.75			0		2.5			0		3.0
Rate of compensation increase		2.5		2.5			2.5		3.5			3.5		3.5

At December 31, 2013, estimated employer contributions to be paid in 2014 related to the Zurich Plan were $5.8 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars):

The Company does not believe that any of the Zurich Plan's assets will be returned to the Company during 2014.