Health Net 2002 Annual Report Download - page 74

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72 | HEALTH NET, INC.
The following table sets forth the plans’ funded status and amounts recognized in our financial statements:
Pension Benefits Other Benefits
(Amounts in thousands) 2002 2001 2002 2001
Change in benefit obligation:
Benefit obligation, beginning of year $16,980 $14,174 $5,209 $6,446
Service cost 836 1,132 316 221
Interest cost 969 1,031 369 331
Plan amendments –––(1,626)
Benefits paid (738) (725) (217) (161)
Actuarial (gain) loss (3,081) 1,368 1,053 (2)
Projected benefit obligation, end of year $14,966 $16,980 $6,730 $5,209
Change in fair value of plan assets:
Plan assets, beginning of year $– $– $– $–
Employer contribution 738 725 217 161
Benefits paid (738) (725) (217) (161)
Plan assets, end of year $– $– $– $–
Funded status of plans $(14,966) $(16,980) $(6,730) $(5,209)
Unrecognized prior service cost 3,581 4,040 285 315
Unrecognized gain (3,763) (956) (170) (1,345)
Net amount recognized as accrued benefit liability $(15,148) $(13,896) $(6,615) $(6,239)
We have multiple postretirement medical benefit plans. The Health Net plan is non-contributory for employees retired
prior to December 1, 1995 who have attained the age of 62; employees retiring after December 1, 1995 who have attained
age 62 contribute from 25% to 100% of the cost of coverage depending upon years of service. We have two other benefit
plans that we have acquired as part of the acquisitions made in 1997. One of the plans is frozen and non-contributory,
whereas the other plan is contributory by certain participants.
The components of net periodic benefit costs for the years ended December 31, 2002, 2001 and 2000 are as follows:
Pension Benefits Other Benefits
(Amounts in thousands) 2002 2001 2000 2002 2001 2000
Service cost $836 $1,132 $1,174 $316 $ 221 $595
Interest cost 969 1,031 972 369 331 388
Amortization of prior service cost 459 459 469 31 31 (6)
Amortization of unrecognized gain (274) (141) (165) (122) (168) (82)
1,990 2,481 2,450 594 415 895
Subsidiary plan curtailment credit –– – –(2,176) –
Net periodic benefit expense (income) $1,990 $2,481 $2,450 $594 $(1,761) $895