SUNation Energy, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Employee Retirement Benefits

Discount rate

Expected return on assets

Employee Retirement Benefits

12 Months Ended

Dec. 31, 2014

Employee Retirement Benefits [Abstract]

NOTE 6 - EMPLOYEE RETIREMENT BENEFITS

The Company has an Employee Savings Plan (401(k)) and matches a percentage of employee contributions up to six percent of compensation. Contributions to the plan in 2014, 2013 and 2012 were $528,000, $457,000, and $471,000, respectively.

The Company’s U.K.-based subsidiary Austin Taylor maintains defined benefit pension plans that cover two active employees. The Company does not provide any other post-retirement benefits to its employees. The following table summarizes the balance sheet impact, including benefit obligations, assets and funded status of Austin Taylor’s pension plans at December 31, 2014 and 2013:



		2014		2013
Change in benefit obligation:
Benefit obligation at the beginning of the year	$	3,340,000	$	5,675,000
Service cost		8,000		5,000
Interest cost		143,000		186,000
Augmentations		-		211,000
Actuarial losses/(gains)		363,000		(198,000)
Benefits paid		(78,000)		(293,000)
Changes due to plan settlement		-		(2,363,000)
Foreign currency (losses)/gains		(192,000)		117,000
Benefit obligation at the end of the year		3,584,000		3,340,000

Change in plan assets:
Fair value of plan assets at beginning of year		3,645,000		5,547,000
Actual return on plan assets		340,000		343,000
Employer contributions		59,000		297,000
Benefits paid		(78,000)		(293,000)
Changes due to plan settlement		-		(2,363,000)
Foreign currency (gains)/losses		(210,000)		114,000
Fair value of plan assets at end of year		3,756,000		3,645,000

Funded status at end of year – net asset	$	172,000	$	305,000

Weighted average assumptions used to determine net periodic pension costs:

The plans are funded through equities and bonds recorded in the financial statements at fair value. The related amounts for each of these investments were $3,756,000 and $3,645,000 as of December 31, 2014 and 2013 and were determined to be level 2 investments, respectively. Level 2 investments are valued based on observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active.

The Company does not expect any plan assets to be returned to the Company during the twelve months subsequent to December 31, 2014.

The Company expects to make contributions of $76,000 to the plan in 2015.

The Company estimates its future pension benefit payments will be as follows:



2015	$	268,000
2016		97,000
2017		165,000
2018		148,000
2019		136,000
2020 thru 2024		801,000

Components of the Company’s net periodic pension (benefit) cost are:



		2014		2013		2012
Service cost	$	8,000	$	5,000	$	275,000
Interest cost		143,000		186,000		244,000
Expected return on assets		(188,000)		(229,000)		(262,000)
Amortization of prior service cost		-		211,000		-
Net periodic pension (benefit) cost	$	(37,000)	$	173,000	$	257,000