Benefit Plans

6 Months Ended

Jun. 30, 2022

Compensation And Retirement Disclosure [Abstract]

Benefit Plans

13. BENEFIT PLANS

The following table summarizes key information related to the Company’s pension plans and retirement agreements (in thousands):

	Six Months Ended June 30, 2022			Year Ended December 31, 2021
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of period	$	31,830		$	33,530
Service cost		559			1,404
Interest cost		481			1,274
Actuarial gain		—			(3,505	)
Benefits paid		(521	)		(873	)
Projected benefit obligation, end of period	$	32,349		$	31,830
Change in Plan Assets
Plan assets at fair value, beginning of period	$	—		$	—
Company contributions		521			873
Benefits paid		(521	)		(873	)
Plan assets at fair value, end of period	$	—		$	—
Unfunded Status of the Plan	$	32,349		$	31,830

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Components of Net Periodic Benefit Cost
Service cost	$	280	$	351	$	559	$	702
Interest cost		240		319		481		637
Net loss		108		197		216		394
Net periodic pension cost	$	628	$	867	$	1,256	$	1,733

The long-term portion of the pension liability as of June 30, 2022 and December 31, 2021 was $31.5 million, and is included in Other Non-Current Liabilities in the accompanying consolidated balance sheets.

Amended and Restated Executive Retirement Agreement

The Company also has a non-qualified deferred compensation agreement with its former CEO. The agreement provides for a lump sum cash payment upon retirement, no sooner than age 55. As of June 30, 2022, the former CEO had reached age 55 and was eligible to receive the payment upon retirement.

On May 27, 2021, the Company and its former CEO entered into an Amended and Restated Executive Retirement Agreement which replaced the former CEO’s previous agreement, effective July 1, 2021. Pursuant to the terms of the Amended and Restated Executive Retirement Agreement, upon the date that the former CEO ceases to provide services to the Company, the Company will pay to the former CEO an amount equal to $3,600,000 which shall be paid in cash. The payment shall be credited with interest at a rate of 5% compounded quarterly. Additionally, at the end of each calendar year provided that the former CEO is still providing services to GEO pursuant to the Executive Chairman Agreement, GEO will credit an amount equal to $1,000,000 at the end of each calendar year (the “Employment Contributions Account”). The Employment Contributions Account will be credited with interest at the rate of 5% compounded quarterly. The balance of the Amended and Restated Executive Retirement Agreement was approximately $5.5 million at June 30, 2022.

The Company has established several trusts for the purpose of paying the retirement benefit pursuant to the Amended and Restated Executive Retirement Agreement. The trusts are revocable “rabbi trusts” and the assets of the trusts are subject to the claims of the Company’s creditors in the event of the Company’s insolvency.