Health Net 1998 Annual Report Download - page 50

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4 8 F O U N DAT IO N H EALTH SYST EMS, I N C .
The following table sets forth the plans’funded status and amounts recognized in the Company’s
financial statements:
Pension Benefits Other Benefits
(in thousands) 1998 1997 1998 1997
Change in benefit obligation:
Benefit obligation,beginning of year $ 7,018 $ 5,540 $1,084 $ 1,142
Service cost 1,463 1,122 ——
Interest cost 674 417 73 86
Plan amendments 1,501 —23 —
Benefits paid (188) —(138) (43)
Actuarial loss (gain) 3,479 (61) (46) (101)
Projected benefit obligation,end of year $ 13,947 $ 7,018 $ 996 $ 1,084
Change in fair value of plan assets:
Plan assets, beginning of year $ — —$ — $ —
Actual return on plan assets ————
Employer contribution 188 —138 43
Benefits paid (188) —(138) (43)
Plan assets,end of year ————
Funded status of plans $(13,947) $(7,018) $ (996) $(1,084)
Unrecognized transition obligation ————
Unrecognized prior service cost 5,417 4,209 539 552
Unrecognized (gain)/ loss 834 (713) (432) (421)
Net amount recognized $ (7,696) $(3,522) $ (889) $ (953)
Prepaid benefit cost:
Accrued benefit liability $ (9,391) $(4,572) $ (889) $ (953)
Intangible asset 1,695 1,050 ——
Net amount recognized $ (7,696) $(3,522) $ (889) $ (953)
The components of net periodic benefit costs for the years ended December 31,1998, 1997 and 1996
are as follows:
Pension Benefits Other Benefits
(in thousands) 1998 1997 1996 1998 1997 1996
Service cost $1,463 $1,122 $1,066 $ — $ — $ 94
Interest cost 674 418 348 74 86 48
Amortization of unrecognized
transition obligation —— — —10 14
Amortization of unrecognized
prior service cost 293 293 293 37 37 22
Amortization of unrecognized
(gain)/ loss 37 (17) — (24) (6) 3
2,467 1,816 1,707 87 127 181
Cost of subsidiary plan
curtailment 1,896 — — (13) 531 —
Net periodic benefit cost $4,363 $1,816 $1,707 $ 74 $658 $181