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Other Postretirement Benefit Plans
 12 Months Ended
Dec. 31, 2021
Accrued postretirement liability  
Components of net periodic credit:  
Other Postretirement Benefit Plans
Note 17 - Other Postretirement Benefit Plans
The Company and its subsidiaries sponsor several postretirement plans that provide health care and life insurance benefits for eligible retirees and dependents. Depending on retirement date and employee classification, certain health care plans contain contribution and cost-sharing features such as deductibles, coinsurance and limitations on employer-provided subsidies. The remaining health care and life insurance plans are noncontributory.
The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31:
 202120202019
Components of net periodic credit:
Service cost$0.2 $0.2 $0.2 
Interest cost1.5 2.1 5.9 
Expected return on plan assets— (0.4)(3.2)
Amortization of prior service credit(10.1)(9.8)(5.4)
Recognition of net actuarial (gains) losses(4.1)1.4 (18.0)
Net periodic credit:$(12.5)$(6.5)$(20.5)
Assumptions:202120202019
Discount rate2.62 %3.43 %
3.48% to 4.30%
Rate of return— %3.00 %4.85 %
The following table summarizes assumptions used to measure the benefit obligation for the other postretirement benefit plans at December 31:
Assumptions:20212020
Discount rate2.99 %2.62 %
The Company recognized actuarial gains of $4.1 million during 2021 primarily due to the impact of a 37 basis point increase in the discount rate used to measure the Company's defined benefit postretirement obligations, which increased from 2.62% in 2020 to 2.99% in 2021. The increase in the discount rate resulted in a $1.6 million gain. In addition to the gain from the discount rate increases, the Company recognized actuarial gains of $1.1 million due to lower than expected benefit payments, $1.0 million due to the impact of a reduction in the rate for Medicare Advantage plans and $0.4 million due to changes in other actuarial assumptions.
The Company recognized actuarial losses of $1.4 million during 2020 primarily due to the impact of an 81 basis point decrease in the discount rate used to measure the Company's defined benefit postretirement obligations, which decreased from 3.43% in 2019 to 2.62% in 2020. The decrease in the discount rate resulted in a $3.9 million loss. This actuarial loss was partially offset by actuarial gains of $2.0 million due to the impact of a reduction in the rate for Medicare Advantage plans, $0.4 million due to higher than expected returns on plans assets and $0.1 million due to changes in other actuarial assumptions.
The Company recognized actuarial gains of $18.0 million during 2019 primarily due to the impact of a reduction in the rates for Medicare Advantage plans of $22.7 million. The change in the contractual rates for Medicare Advantage plans was due to a law change that repealed the tax on health care insurers after 2020.  In addition to the change in rates on Medicare Advantage plans, the Company recognized actuarial gains of $3.6 million due to higher than expected returns on plan assets and $5.2 million due to changes in other actuarial assumptions. These actuarial gains were partially offset by an 87 basis point decrease in the discount rate used to measure the Company's defined benefit postretirement obligations, which decreased from 4.30% to 3.43%. The decrease in the discount rate resulted in a $13.5 million loss.
During July 2019, the Company announced changes to the medical plan offerings for certain of its postretirement benefit plans, effective January 1, 2020, which will impact the benefits provided to certain retirees. This plan amendment resulted in a $92.8 million reduction in its postretirement benefit obligations and a corresponding pretax adjustment to accumulated other comprehensive loss. Starting with the three months ended September 30, 2019, the pretax adjustment of $92.8 million will be amortized from accumulated other comprehensive loss into net periodic benefit cost (as a benefit) until 2031.
Note 17 - Other Postretirement Benefit Plans
The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance.
For expense purposes in 2021, the Company applied a discount rate of 2.62% to its other postretirement benefit plans. For expense purposes in 2022, the Company will apply a discount rate of 2.99% to its other postretirement benefit plans.
The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets of the other postretirement benefit plans as of December 31, 2021 and 2020:
  
20212020
Change in benefit obligation:
Benefit obligation at beginning of year$57.6 $63.4 
Service cost0.2 0.2 
Interest cost1.5 2.1 
Plan amendments— (3.1)
Actuarial (gains) losses(4.1)1.8 
Benefits paid(4.1)(6.8)
Benefit obligation at end of year$51.1 $57.6 
Change in plan assets:
Fair value of plan assets at beginning of year$11.1 $64.4 
Company contributions / payments— 2.7 
Transfer to VEBA trust for certain active employees' medical benefits(11.1)(50.0)
Return on plan assets— 0.8 
Benefits paid— (6.8)
Fair value of plan assets at end of year— 11.1 
Funded status at end of year$(51.1)$(46.5)

Amounts recognized on the Consolidated Balance Sheets:
Current liabilities(5.3)(5.2)
Non-current liabilities(45.8)(41.3)
 $(51.1)$(46.5)
Amounts recognized in accumulated other comprehensive loss (income):
Net prior service credit$(81.4)$(91.5)
Accumulated other comprehensive loss (income)$(81.4)$(91.5)
Changes to prior service credit recognized in accumulated other comprehensive
     loss (income):
Accumulated other comprehensive income at beginning of year$(91.5)$(98.2)
Prior service credit— (3.1)
Recognized prior service credit10.1 9.8 
Total recognized in accumulated other comprehensive loss (income) at December 31$(81.4)$(91.5)
Note 17 - Other Postretirement Benefit Plans (continued)
The presentation in the above tables for amounts recognized in accumulated other comprehensive (income) loss on the Consolidated Balance Sheets is before the effect of income taxes.
The current portion of accrued postretirement benefits, which was included in salaries, wages and benefits on the Consolidated Balance Sheets, was $5.3 million and $5.2 million at December 31, 2021 and 2020, respectively. In 2021, the current portion of accrued postretirement benefits related to unfunded plans and represented the actuarial present value of expected payments related to the plans to be made over the next 12 months.
For measurement purposes, the Company assumed a weighted-average annual rate of increase in the per capita cost (health care cost trend rate) for medical benefits of 6.5% for 2022, declining gradually to 5.0% in 2028 and thereafter for medical and prescription drug benefits. For Medicare Advantage benefits, actual contract rates have been set for 2022, and are assumed to increase by 7.25% for 2022, declining gradually to 5.0% in 2031 and thereafter.
Plan Assets:
In January 2020, the Company established a second VEBA trust for certain active employees’ medical benefits. The Company transferred $50 million from the existing VEBA trust to fund the second VEBA trust. The $50 million that was transferred was primarily classified as other current assets based on the portfolio of the assets in the trust. In January 2021, the Company transferred the remaining $11.1 million in the existing VEBA trust to the second VEBA trust. The Company utilized all of the assets of the second VEBA trust in 2021 and 2020 for the payment of certain active employees’ medical benefits.
The following table presents those investments of the Company’s VEBA trust assets as of December 31, 2020:
Balance at December 31, 2020
Assets:NAVLevel 1Level 2Level 3
Cash and cash equivalents $0.5 $— $— $— 
Mutual fund - fixed income— 10.6 — — 
Total Assets$0.5 $10.6 $— $— 
Cash and cash equivalents are valued at redemption value. Common collective funds are valued based on a net asset value per share, which is used as a practical expedient to fair value. When such prices are unavailable, the plan trustee determines a valuation from the market maker dealing in the particular security. Mutual funds are valued at the closing priced reported in the active market in which the individual funds are traded.
Cash Flows:
The Company did not make any employer contributions to the VEBA in 2021 and 2020, and the Company does not expect to make any employer contributions in the future.
Estimated future benefit payments to be funded by the Company are expected to be as follows:
Future Benefit Payments
2022$5 
20234 
20244 
20254 
20264 
2027-203117