Employee Defined Contribution Plans and Multi-Employer Pension Plans
|12 Months Ended|
Dec. 31, 2018
|Postemployment Benefits [Abstract]|
|Employee Defined Contribution Plans and Multi-Employer Pension Plans||
12. Employee Defined Contribution Plans and Multi-Employer Pension Plans
We have a retirement savings plan (the “401k Plan”) for all of our domestic subsidiaries under section 401(k) of the Internal Revenue Code that covers all U.S. salaried and most hourly employees. Participants may elect to defer a percentage of their compensation to the 401k Plan, subject to aggregate limits required by the Internal Revenue Code. The 401k Plan provides for discretionary matching contributions under certain circumstances, for employees based on location, pay status and membership in a collective bargaining unit. In addition, we provide a retirement contribution to certain employees based on location and age. We contributed $9.1 million, $8.7 million and $8.5 million to the 401k Plan in 2018, 2017 and 2016, respectively, which is recorded as compensation expense in the year incurred.
Bargaining unit employees in East Alton, IL and Alliance, OH participate in the IAM Pension Plan. The IAM Pension Plan is a multi-employer pension plan with negotiated fixed company costs per employee hour worked. The risks of participating in these multi-employer plans are different from single-employer plans, as we can be subject to additional risks if other employers do not meet their obligations. In addition, if a participating employer becomes insolvent and ceases to contribute to a multiemployer plan, the unfunded obligation of the plan will be borne by the remaining participating employers. Under current law, an employer that withdraws or partially withdraws from a multi-employer pension plan may incur withdrawal liability to the plan. Given the facts that the IAM Pension Plan is 92% funded, many other participating employers are much larger than us, and the large number of participating employers in the plan, we do not view this to be a significant risk.
We recorded expense for contributions to the IAM Pension Plan of $3.3 million, $3.4 million and $3.5 million in 2018, 2017 and 2016, respectively, which are included in cost of sales in the accompanying consolidated statements of operations. Our participation in the IAM Pension Plan for the annual period ended December 31, 2018, is outlined in the table below. There have been no significant changes that affect the comparability of 2018 and 2017 contributions. The IAM Pension Plan’s year-end is December 31 and the plan reported $434.8 million and $413.7 million in employers’ contributions for 2017 and 2016, respectively.
* Plans in the green zone are at least 80 percent funded.
As of the date of this filing, Forms 5500 were not available for the plan year ended in 2018.
The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef