Notes To Consolidated Financial Statements company and Atlantic Copper is not provided asset alloca- tions or benefit payment projections. Other Benefits.  FCX and FM Services Company also provide  certain health care and life insurance benefits for retired  employees. FCX and FM Services Company have the right to  modify or terminate these benefits. The initial health care cost  trend rate used for the other benefits was 10 percent for 2005,  decreasing ratably each year until reaching 5 percent in 2010.  A one-percentage-point increase or decrease in assumed health  care cost trend rates would not have a significant impact on  total service or interest cost. Information on the employee  health care and life insurance benefits FCX and FM Services  Company provide follows (in thousands):  The FCX and FM Services Company pension plans were termi- nated in 2000 as discussed above. Therefore, the entire asset  balance of $16.6 million at December 31, 2004, will be liqui- dated and any unfunded benefits will be paid after Internal  Revenue Service and Pension Benefit Guaranty Corporation  approval. The expected benefit payments for FCX’s SERP and  director plan total $0.2 million for each year in the period  2005 through 2008, $15.4 million in 2009 and $14.4 million  thereafter. The rupiah benefit payments that are expected to  be paid for PT Freeport Indonesia‘s pension plan (based on a  December 31, 2004, exchange rate of 9,270 Indonesian rupiah  to one U.S. dollar) total $3.8 million in 2005, $3.4 million in  2006, $4.0 million in 2007, $5.1 million in 2008, $6.0 million  in 2009 and $30.9 million for 2010 through 2014. Atlantic  Copper’s plan is administered by a third-party insurance  2004 ANNUAL REPORT  | 71 The pension plan weighted-average asset allocations for the  FCX and PT Freeport Indonesia plans at December 31, 2004  and 2003, follow: PT Freeport Indonesia  Atlantic Copper 2004  2003  2002  2004  2003  2002 Service cost  $ 3,355  $ 3,148  $ 2,041  $  —  $  —  $  — Interest cost   3,365   3,366   2,166   5,035   4,821   4,266 Expected return on plan assets   (1,829)   (1,888)   (1,217)  —   —  — Amortization of prior service cost  969  894  514  —  —  — Amortization of net actuarial loss  243  478  242   1,517   1,316  785 Net periodic benefit cost  $ 6,103  $ 5,998  $ 3,746  $6,552  $6,137  $5,051 PT Freeport FCX Indonesia 2004  2003  2004  2003 Debt securities  99% 97% 5%  5% Cash and bank deposits  1  3  95  95 Total 100% 100% 100%  100% 2004  2003 Change in benefit obligation: Benefit obligation at beginning of year  $(5,410)  $(4,812) Service cost  (137)  (127) Interest cost  (335)  (327) Actuarial gains (losses)  148  (455) Plan amendment  118  — Participant contributions  (160)  (192) Benefits paid  427  503 Benefit obligation at end of year   (5,349)   (5,410) Change in plan assets: Fair value of plan assets at beginning of year  —  — Employer/participant contributions  427  503 Benefits paid  (427)  (503) Fair value of plan assets at end of year  —  — Funded status   (5,349)   (5,410) Unrecognized net actuarial loss  450  619 Unrecognized prior service cost  (483)  (503) Accrued benefit cost  $(5,382)  $(5,294) Discount rate assumption (percent)  6.00  6.25