Advertisement
The funded status of the Company's defined benefit pension plans at year end was as follows:
2012 Accrued Accrued benefit pension asset obligation Plan assets (liability)----------------------------------------------------------------------------Powell Plan $ 53,844 $ 46,634 $ (7,210)Executive Plan 21,843 1,527 (20,316)Other plan assets and obligations 8,046 8,732 686----------------------------------------------------------------------------Accrued pension asset (liability) $ 83,733 $ 56,893 $ (26,840)-------------------------------------------------------------------------------------------------------------------------------------------------------- 2011 Accrued Accrued benefit pension asset obligation Plan assets (liability)----------------------------------------------------------------------------Powell Plan $ 49,228 $ 42,018 $ (7,210)Executive Plan 21,791 2,230 (19,561)Other plan assets and obligations 8,354 8,964 610----------------------------------------------------------------------------Accrued pension asset (liability) $ 79,373 $ 53,212 $ (26,161)--------------------------------------------------------------------------------------------------------------------------------------------------------
The Executive Plan is a supplemental pension plan and is solely the obligation of the Company. The Company is not obligated to fund this plan but is obligated to pay benefits under the terms of the plan as they come due. The Company has posted letters of credit in the amount of $20.2 million to secure the obligations under this plan.
The significant annual actuarial assumptions adopted in measuring the accrued benefit obligations were as follows:
2012 2011----------------------------------------------------------------------------Discount rate 3.90% 4.25%Expected long-term rate of return on plan assets 7.00% 7.00%Rate of compensation increase 4.00% 4.00%
The allocations of plan assets were as follows:
2012 2011----------------------------------------------------------------------------Equity securities 44.6% 39.5%Debt securities 37.8% 44.2%Real estate 16.8% 15.2%Cash and cash equivalents 0.8% 1.1%
No plan assets were directly invested in the Company's securities.
The net pension expense for the years ended December 31 included the following components:
2012 2011----------------------------------------------------------------------------Defined benefit plans Service cost $ 1,209 $ 998 Interest cost 3,392 3,614 Expected return on plan assets (3,742) (3,640)---------------------------------------------------------------------------- 859 972Defined contribution plans 8,648 7,692401(k) matched savings plan 120 104----------------------------------------------------------------------------Net pension expense $ 9,627 $ 8,768--------------------------------------------------------------------------------------------------------------------------------------------------------
