Amtrak 2014 Annual Report Download - page 69

National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 61
12. Postretirement Employee Benefits (continued)
Prescription Drug Benefits
On December 8, 2003, the Medicare Prescription Drug, Improvement, and Modernization Act of
2003 (the Medicare Act) was signed into law. The Medicare Act introduced a prescription drug
benefit under Medicare (Medicare Part D) as well as a federal subsidy to sponsors of retiree
health care benefit plans that provide a benefit that is at least actuarially equivalent to Medicare
Part D. Amtrak elected to record an estimate of the effects of the Medicare Act in accounting for
its postretirement benefit plans and provide disclosures required by ASC Topic 715,
Compensation – Retirement Benefits. Amtrak’ s accumulated pension benefit obligation for its
other benefits is reduced by $112.7 million and $57.6 million for FY2014 and FY2013,
respectively, for this prescription drug benefit.
401(k) Savings Plan
Amtrak provides a 401(k) savings plan for non-union employees. Under the plan, Amtrak
matches a portion of employee contributions up to five percent of the participant’ s salary, subject
to applicable limitations. Amtrak’ s expenses under this plan were $11.4 million and
$10.9 million for FY2014 and FY2013, respectively. Subsequent to September 30, 2014, the
maximum employer contribution was increased from five percent to seven percent, effective
July 1, 2015.
Additionally, Amtrak provides a 401(k) saving plan for union employees. Amtrak does not
match any portion of the employee contributions under this plan.
13. Subsequent Events
Train Derailment
On May 12, 2015, Amtrak Train 188, traveling from Washington, D.C., northbound for New
York’ s Penn Station, derailed north of 30th Street Station while traveling through a curve. There
were 250 passengers and eight Amtrak employees on board. Eight passengers were killed and
over 200 were injured.