37 Investment strategy and objectives are described in the pension plans’ formal investment policy documents. The basic strategy and objectives as adopted in the investment policy are:
• Manage portfolio assets with a long-term time horizon appropriate for the participant demographics and cash flow requirements • Optimize long-term funding requirements by generating rates of return sufficient to fund liabilities and exceed the long-term rate of inflation • Provide competitive investment returns and reasonable risk levels when measured against appropriate benchmarks.
Expected Contributions We expect to contribute approximately $1.0 million to our funded, qualified defined benefit pension plan in 2016. Our actual 2016 contributions could differ from the estimates noted above. Estimated Future Benefits Payments We expect to make the following benefit payments, which reflect expected future service, as appropriate ($ in thousands):
Expected Benefit Payments
Pension SERP Year 2016 $ 1,086 $ – 2017 1,234 – 2018 1,316 – 2019 1,511 243 2020 1,639 – 2021 to 2025 8,571 1,458
The following table sets forth the funding status and weighted average assumptions used to determine postretirement health care benefit obligations ($ in thousands): 2015 Accumulated benefit obligation $ Net liability recognized in the balance sheet $ Net periodic (income) expense $ Discount rate
December 31, 2014 232 $ 79 $ 358 $ 398 $ (153) $ (11) $ 4.55 % 4.10 %
2013 68 338 (12) 4.85 %
For measurement purposes, a 7 percent annual rate of increase in the per capita cost of covered health care benefits was assumed for 2015. The rate was assumed to decrease gradually to 4.5 percent for 2022, and remain at that level thereafter.
NOTE 13 - Equity Effective June 30, 2006, FPI has been authorized to issue 2,000,000 shares each of Class A preferred stock – voting; Class B preferred stock – non-voting; and Class C common stock – non-voting at a par value of $5 per share. At December 31, 2015, FPI had 2,000,000 shares of Class A preferred stock outstanding at a par value of $5 per share and no outstanding shares of Class B preferred stock or Class C common stock.