9) PENSION PLAN
The Company maintains contributory and non-contributory retirement plans for eligible employees. The Company’s contributions to the contributory plan amounted to $4.2 million, $4.6 million and $3.6 million in 1999, 1998 and 1997, respectively. The non-contributory plan is a defined benefit pension plan which covers employees of one of the Company’s subsidiaries. The benefits are based on years of service and the employee’s highest compensation for any five years of employment. The Company’s funding policy is to contribute annually at least the minimum amount that should be funded in accordance with the provisions of ERISA.
The following table shows reconciliations of the defined benefit pension plan for the Company as of December 31, 1999 and 1998:
| |
(000s) |
| Change in benefit obligation: |
1999 |
1998 |
| Benefit obligation at beginning of year |
$49,285 |
$43,573 |
| Service cost |
1,041 |
904 |
| Interest cost |
3,280 |
3,001 |
| Benefits paid |
(1,629) |
(1,381) |
| Actuarial (gain) loss |
(5,522) |
3,188 |
| Benefit obligation at end of year |
46,455 |
49,285 |
| |
| Change in plan assets: |
|
| Fair value of plan assets at beginning of year |
$50,702 |
$33,974 |
| Actual return on plan assets |
4,096 |
7,998 |
| Company contributions |
0 |
10,203 |
| Benefits paid |
(1,629) |
(1,381) |
| Administrative expenses |
(202) |
(92) |
| Fair value of plan assets at end of year |
$52,967 |
$50,702 |
| |
| Funded status of the plan |
$6,512 |
$1,417 |
| Unrecognized actuarial (gain) |
(8,446) |
(3,559) |
| Net amount recognized |
(1,934) |
(2,142) |
| |
| Total amounts recognized in the balance sheet consist of: |
|
| Accrued benefit liability |
$(1,934) |
$(2,142) |
| |
| Weighted average assumptions as of December 31 |
|
| Discount rate |
7.50% |
6.75% |
| Expected long-term rate of return on plan assets |
9.00% |
9.00% |
| Rate of compensation increase |
4.00% |
4.00% |
| |
(000s) |
| |
1999 |
1998 |
1997 |
| Components of net periodic benefit cost |
|
| Service cost |
$1,041 |
$905 |
$854 |
| Interest cost |
3,280 |
3,001 |
2,783 |
| Expected return on plan assets |
(4,530) |
(3,316) |
(2,446) |
| Net periodic (benefit) cost |
$(209) |
$590 |
$1,191 |
The fair value of plan assets exceeded the benefit obligations of the plan, as of December 31, 1999 and 1998, respectively.
Previous page | Financial Contents | Next page
Annual Report Contents
Home |
Corporate info |
Financial information |
What's News |
Stock price
Annual Report |
Job Openings |
UHS Hospitals
Copyright ©2000 UHS
|
