Amtrak 2013 Annual Report Download - page 93

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 54
13. Postretirement Employee Benefits
Amtrak has a qualified noncontributory defined benefit retirement plan whose assets are held in
trust covering nonunion employees and certain union employees who at one time held nonunion
positions.
Amtrak provides medical benefits to its qualifying retirees and life insurance to some retirees in
limited circumstances under its postretirement benefits program. Railroad union employees’ life
insurance benefits are covered by a separate policy purchased by Amtrak. Under Amtrak’ s
postretirement benefits program, except as described below, substantially all salaried employees
may become eligible for medical benefits if they meet the service requirement and reach age 55
while they are working for Amtrak. Company-provided medical benefits are reduced when
covered individuals become eligible for Medicare benefits or reach age 65, whichever comes
first. Medical benefits are subject to co-payment provisions and other limitations.
On March 27, 2013 the defined benefit retirement plan and nonunion postretirement benefit plan
were amended to provide that no employee hired, rehired or who transfers from a collectively-
bargained position on or after April 1, 2013 will be eligible to participate in these plans.
However, if a non-union employee terminates employment or transfers to a collective bargaining
position and returns within 90 days of the termination or transfer, he or she will be eligible to re-
enter the plans.
Obligations and Funded Status
The liability of the Company’ s pension plan, as well as other post-retirement benefits plans, as of
September 30, 2013 and 2012 was as follows (in thousands):
Pension Benefits Other Benefits
2013 2012 2013 2012
Reconciliation of projected benefit
obligation:
Obligation at October 1 $ 457,170
$ 453,980
$ 1,356,892
$ 1,074,134
Service cost 17,292 16,408 40,852 28,378
Interest cost 19,551 19,863 57,987 46,870
Change in discount rate (47,946) 6,069 (131,041) 19,359
Actuarial (gain) loss (8,147) (23,870) 25,035 227,374
Change in plan provisions ––(188,038) –
Benefit payments (15,821) (15,280) (41,152) (39,223)
Obligation at September 30 $ 422,099
$ 457,170
$ 1,120,535
$ 1,356,892