MoneyGram 2005 Annual Report Download - page 89

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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The Company's funding policy is to make contributions to the plan as benefits are required to be paid. Net periodic postretirement benefit cost includes the
following components for the year ended December 31:
2005 2004 2003
(Dollars in thousands)
Service cost $ 619 $ 515 $ 490
Interest cost 644 593 578
Amortization of prior service cost (294) (294) (288)
Recognized net actuarial loss 16 14 18
Net periodic benefit cost $ 985 $ 828 $ 798
The benefit obligation and plan assets, changes to the benefit obligation and plan assets and a reconciliation of the funded status of the defined benefit
postretirement plan as of and for the year ended December 31 are as follows:
2005 2004
(Dollars in thousands)
Change in benefit obligation:
Benefit obligation at the beginning of the year $ 11,023 $ 10,570
Service cost 619 515
Interest cost 644 593
Plan amendments — (71)
Actuarial (gain) or loss 345 (456)
Benefits paid (241) (128)
Benefit obligation at the end of the year $ 12,390 $ 11,023
Change in plan assets:
Fair value of plan assets at the beginning of the year $ — $ —
Employer contributions 241 128
Benefits paid (241) (128)
Fair value of plan assets at the end of the year $ — $ —
Reconciliations of funded status:
Funded (unfunded) status $ (12,390) $ (11,023)
Unrecognized actuarial (gain) loss 1,622 1,293
Unrecognized prior service cost (2,487) (2,781)
Accrued benefit liability $ (13,255) $ (12,511)
Benefits expected to be paid are $0.2 million, $0.3 million, $0.3 million, $0.4 million, $0.4 million and a combined $2.8 million for 2006, 2007, 2008, 2009,
2010 and for the five years starting 2011, respectively. Subsidies to be received under the Act beginning in 2006 are not expected to be material. The
Company will continue to make contributions to the plan to the extent benefits are paid.
The Company's actuarial valuation date for the postretirement plan is November 30. The weighted-average discount rate used to determine the actuarial
present value of the accumulated postretirement projected benefit obligation for the years ended December 31, 2005 and 2004 are is 5.90 percent and
6.00 percent, respectively. The weighted-average discount rates used to determine the net postretirement benefit cost for 2005, 2004 and 2003 are
6.00 percent, 6.25 percent and 6.75 percent, respectively. F-35