NOTES TO CONSOLIDATED FINANCIAL STATEMENTS recognized a deferred tax liability for the undistributed earnings of its wholly-owned domestic and foreign subsidiaries because the Company currently does not expect those unremitted earnings to become taxable to the Company in the foreseeable future. This is due to the fact that the unremitted earnings are not expected to be repatriated in the foreseeable future, or because those unremitted earnings that may be repatriated will not be taxable through the application of tax planning strategies that management would utilize. on years of service and compensation levels. Certain management individuals participate in several nonqualified defined benefit and defined contribution plans sponsored by RGA Reinsurance. Those plans are unfunded and are deductible for federal income  tax purposes when the benefits are paid. The projected obligation was approximately $18.7 million and $16.1 million as of December 31, 2003 and 2002, respectively. The Company’s full-time U.S. employees may participate in a defined contribution profit sharing plan. The plan also has a cash or deferred option under Internal Revenue Code section 401(k). The Company’s contributions, which are partially tied to RGA’s financial results and employee 401(k) contributions, were approximately $1.9 million, $1.2 million and $1.3 million in 2003, 2002 and 2001, respectively.  During 2003, 2002, and 2001, the Company received federal income tax refunds of approximately $1.6 million, $5.2 million  and $5.0 million, respectively. The Company made cash income  tax payments of approximately $8.0 million, $17.4 million and $26.4 million in 2003, 2002 and 2001, respectively. At  December 31, 2003 and 2002, the Company recognized deferred tax assets associated with net operating losses of approximately $487.2 million and $391.9 million, respectively, that will expire between 2011 and 2018. However, these net operating losses are expected to be utilized in the normal course of business during the period allowed for carryforwards and, in any event, are not expected to be lost given tax planning strategies available to the Company.  The Company also provides certain health care and life insurance benefits for retired employees. The health care benefits are  provided through a self-insured welfare benefit plan. Employees become eligible for these benefits if they meet minimum age and service requirements. The retiree’s cost for health care benefits varies depending upon the credited years of service. The Company recorded benefits expense of approximately $0.7 million, $0.6 million, and $0.5 million for 2003, 2002 and 2001, respectively, related to these postretirement plans. The projected obligation was approximately $5.3 million and $4.5 million as of December 31, 2003 and 2002, respectively. The Company’s U.S. tax returns have been audited by the  relevant taxing authorities for all years through 1999. The  Company believes that any adjustments that might be required  for subsequent years will not have a material effect on the Company’s financial statements. Most of the Company’s U.S. employees participate in a  non-contributory qualified defined benefit pension plan sponsored by RGA Reinsurance. The benefits under the pension plan are based (in thousands) December 31, Pension Benefits Other Benefits NOTE 10 EMPLOYEE BENEFIT PLANS  2003 2002 200 3 2002 Change in projected benefit obligation: Projected benefit obligation at beginning of year $16,137 $14,249 $ 4,508 $ 3,467 Service cost 1,473 1,218 314 264 Interest cost 1,052 972 303 261 Participant contributions – – 11 8 Actuarial losses 280 38 265 559 Benefits paid (290) (340) (70) (51) Projected benefit obligation at end of year $18,652 $16,137 $ 5,331 $ 4,508 (in thousands) December 31, Pension Benefits Other Benefits THIS IS RGA. 2003 ANNUAL REPORT 67