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Pension Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Retirement Plans [Line Items]  
Schedule of Weighted Average Assumptions

Weighted average assumptions used to determine pension benefit obligations are as follows:

DECEMBER 31

 

2023

 

 

2022

 

 

2021

 

Discount rate - qualified plan

 

 

5.75

%

 

 

6.00

%

 

 

3.25

%

Discount rate - non-qualified plan

 

 

5.875

%

 

 

6.00

%

 

 

3.25

%

Cash balance interest crediting rate

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

 

The Company utilizes a measurement date of January 1st to determine its periodic pension costs. Weighted average assumptions used to determine net periodic pension costs for the defined benefit plans are as follows:

YEARS ENDED DECEMBER 31

 

2023

 

 

2022

 

 

2021

 

Qualified plan

 

 

 

 

 

 

 

 

 

Discount rate

 

 

6.00

%

 

 

3.25

%

 

 

3.00

%

Expected return on plan assets

 

 

6.25

%

 

 

3.75

%

 

 

3.75

%

Cash balance interest crediting rate

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

Non-qualified plan

 

 

 

 

 

 

 

 

 

Discount rate

 

 

6.00

%

 

 

3.25

%

 

 

2.88

%
Summary of Target Allocations and Invested Asset Allocations

The following table provides its year-end 2023 target allocations and actual invested asset allocations at December 31, 2023 and 2022.

DECEMBER 31

 

2023
TARGET
LEVELS

 

 

2023

 

 

2022

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

Fixed maturities

 

 

88

%

 

 

88

%

 

 

88

%

Money market funds

 

 

2

%

 

 

2

%

 

 

2

%

Total fixed income securities

 

 

90

%

 

 

90

%

 

 

90

%

Equity securities

 

 

10

%

 

 

10

%

 

 

10

%

Total plan assets

 

 

100

%

 

 

100

%

 

 

100

%
Summary of Plan Assets Investment Measured at Fair Value

The following table presents, for each hierarchy level, the qualified defined benefit plan’s investment assets that are measured at fair value at December 31, 2023 and 2022. Refer to Note 4 – “Fair Value” for a description of the different levels in the Fair Value Hierarchy.

DECEMBER 31

 

2023

 

 

2022

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

$

34.6

 

 

$

22.3

 

 

$

—

 

 

$

12.3

 

 

$

42.7

 

 

$

28.3

 

 

$

—

 

 

$

14.4

 

Money market mutual funds

 

 

6.3

 

 

 

6.3

 

 

 

—

 

 

 

—

 

 

 

6.5

 

 

 

6.5

 

 

 

—

 

 

 

—

 

Total investments at fair value

 

$

40.9

 

 

$

28.6

 

 

$

—

 

 

$

12.3

 

 

$

49.2

 

 

$

34.8

 

 

$

—

 

 

$

14.4

 
Summary of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The table below provides a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

YEARS ENDED DECEMBER 31

 

2023

 

 

2022

 

(in millions)

 

 

 

 

 

 

Balance at beginning of period

 

$

14.4

 

 

$

16.0

 

Less: Assets transferred to Level 1 investments

 

 

(2.5

)

 

 

(2.0

)

Return on plan assets related to assets still held

 

 

0.4

 

 

 

0.4

 

Balance at end of year

 

$

12.3

 

 

$

14.4

 
Schedule of Benefit Obligations, Plan Assets and Funded Status of Plans

The following table reflects the benefit obligations, fair value of plan assets and funded status of the plans at December 31, 2023 and 2022.

DECEMBER 31

 

Qualified
Pension Plan

 

 

Non-Qualified
Pension Plan

 

(in millions)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation, beginning of period (1)

 

$

361.7

 

 

$

458.6

 

 

$

24.5

 

 

$

31.0

 

Interest cost

 

 

20.5

 

 

 

14.3

 

 

 

1.4

 

 

 

1.0

 

Actuarial gains

 

 

(1.6

)

 

 

(78.0

)

 

 

(0.5

)

 

 

(4.5

)

Benefits paid

 

 

(32.2

)

 

 

(33.2

)

 

 

(2.8

)

 

 

(3.0

)

Benefit obligation, end of year (1)

 

 

348.4

 

 

 

361.7

 

 

 

22.6

 

 

 

24.5

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning of period

 

 

371.5

 

 

 

478.0

 

 

 

—

 

 

 

—

 

Actual return on plan assets

 

 

23.7

 

 

 

(73.3

)

 

 

—

 

 

 

—

 

Contributions

 

 

—

 

 

 

—

 

 

 

2.8

 

 

 

3.0

 

Benefits paid

 

 

(32.2

)

 

 

(33.2

)

 

 

(2.8

)

 

 

(3.0

)

Fair value of plan assets, end of year

 

 

363.0

 

 

 

371.5

 

 

 

—

 

 

 

—

 

Funded status of the plans

 

$

14.6

 

 

$

9.8

 

 

$

(22.6

)

 

$

(24.5

)
Components of Net Periodic Pension (Benefit) Cost

The components of total net periodic pension (benefit) cost are as follows:

YEARS ENDED DECEMBER 31

 

2023

 

 

2022

 

 

2021

 

(in millions)

 

 

 

 

 

 

 

 

 

Interest cost

 

$

21.9

 

 

$

15.3

 

 

$

14.9

 

Expected return on plan assets

 

 

(22.1

)

 

 

(17.2

)

 

 

(18.4

)

Recognized net actuarial loss

 

 

7.8

 

 

 

5.2

 

 

 

3.2

 

Net periodic pension (benefit) cost

 

$

7.6

 

 

$

3.3

 

 

$

(0.3

)

 
Accumulated Other Comprehensive Income (Loss) Related to Postretirement Benefit Plans

The following table reflects the total amounts recognized in accumulated other comprehensive income (loss) relating to the defined benefit pension plans as of December 31, 2023 and 2022.

DECEMBER 31

 

2023

 

 

2022

 

(in millions)

 

 

 

 

 

 

Net actuarial loss

 

$

67.8

 

 

$

79.4

 
Schedule of Expected Benefit Payments

YEARS ENDED DECEMBER 31

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029-2033

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Qualified pension plan

 

$

36.7

 

 

$

35.0

 

 

$

33.6

 

 

$

32.9

 

 

$

30.9

 

 

$

131.7

 

Non-qualified pension plan

 

$

2.7

 

 

$

2.6

 

 

$

2.5

 

 

$

2.4

 

 

$

2.3

 

 

$

9.4

 
Investments Net Asset Value [Member]  
Retirement Plans [Line Items]  
Schedule of Fair Values of Investments The fair values of these investments are as follows:

DECEMBER 31

 

2023

 

 

2022

 

Fixed maturities

 

$

286.5

 

 

$

284.7

 

Equity securities

 

 

35.6

 

 

 

37.6

 

Total investments carried at NAV

 

$

322.1

 

 

$

322.3