Amtrak 2014 Annual Report Download - page 58

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 50
12. Postretirement Employee Benefits (continued)
On March 18, 2015, Amtrak’ s Board of Directors approved an amendment to freeze benefits
under the Retirement Income Plan, effective June 30, 2015. This change will result in no
additional benefits being earned by participants based on service or pay after June 30, 2015.
These plan changes resulted in a curtailment and required a remeasurement as of March 31,
2015. The curtailment and the remeasurement resulted in a net decrease in the projected benefit
obligation as of the remeasurement date of $64.6 million which was offset against existing
unrecognized losses.
Also on March 18, 2015, Amtrak’ s Board of Directors approved an amendment to modify its
postretirement medical benefits program for non-union employees. Effective June 30, 2015:
• Excluding certain Grandfathered Retirees and Retired Executives, retirees age 65 and
older will have to obtain medical coverage through a third party medical exchange.
Amtrak will fund a tax-advantaged health reimbursement account to assist retirees with
medical expenses.
• Eligibility requirements for future retirees will be changed to age 55 with ten years of
service, or age 60 with five years of service for employees who are age 50 or over as of
June 30, 2015.
• Employees less than age 50 on June 30, 2015 will no longer be eligible for subsidized
benefits under the Plan.
These postretirement medical benefit program changes required a remeasurement as of
March 31, 2015. The remeasurement resulted in a net decrease in the projected benefit obligation
as of the remeasurement date of $402.8 million. The decrease in the projected benefit obligation
will be reflected as a prior service credit and will be amortized over approximately four years
beginning April 1, 2015.