9. EMPLOYEE BENEFITS The Company maintains a qualified, non-contributory defined benefit pension plan (“Plan”) covering substantially all employees who have reached age twenty-one and who have completed one year of service. Employer contributions to the Plan are in accordance with the minimum funding requirements of the Employee Retirement Income Security Act of 1974. The amortization period for unrecognized pension costs and cr edits, including prior service costs, if any, and actuarial gains and losses, is based on the remaining service period for those employees expected to receive pension benefits. Actuarial gains and losses result when actual experience differs from that assumed or when actuarial assumptions are changed. The following tables set forth the Plan’ funded status, which uses a measurement date of October 1, and amounts recognized in the Company’ consolidated financial statements as of December 31, 2004 and 2003. The following table summarizes the status of the Plan (in thousands): ODYSSEY RE HOLDINGS CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued 2004 2003 Change in projected benefit obligation: Benefit obligation at beginning of year $35,471 $29,537 Service cost 2,210 1,754 Interest cost 2,105 1,897 Actuarial loss 3,493 3,124 Benefits paid (1,265) (841) Other 440 — Benefit obligation at end of year $42,454 $35,471 Change in Plan assets: Fair value of Plan assets at beginning of year $27,549 $25,301 Actual return on Plan assets 1,028 839 Actual contributions during the year 13,743 2,250 Benefits paid (1,265) (841) Fair value of Plan assets at end of year $41,055 $27,549 Fair value of Plan assets consists of: Fixed income securities $34,784 $26,799 Other 6,271 750 Total $41,055 $27,549 Unfunded status $(1,399) $(7,922) Unrecognized prior service cost 557 127 Unrecognized net loss 4,691 581 Prepaid (accrued) pension cost $3,849 $(7,214) 66