10. Accrued Severance Benefits

The majority of accrued severance benefits are for employees in the Company’s Korean subsidiary. Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of September 30, 2016, 98% of employees of the Company were eligible for severance benefits.

Changes in accrued severance benefits are as follows (in thousands):

 

		Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
		September 30, 2016								September 30, 2015
Beginning balance		$	132,800			$	135,160			$	144,800			$	140,405
Provisions			3,782				13,609				2,296				14,173
Severance payments			(1,076	)			(14,178	)			(3,674	)			(7,905	)
Translation adjustments			8,350				9,265				(8,466	)			(11,717	)
			143,856				143,856				134,956				134,956
Less: Cumulative contributions to the National Pension Fund			(305	)			(305	)			(310	)			(310	)
Group severance insurance plan			(705	)			(705	)			(691	)			(691	)
Accrued severance benefits, net		$	142,846			$	142,846			$	133,955			$	133,955

The severance benefits funded through the Company’s National Pension Fund and group severance insurance plan will be used exclusively for payment of severance benefits to eligible employees. These amounts have been deducted from the accrued severance benefit balance.

The Company is liable to pay the following future benefits to its non-executive employees upon their normal retirement age (in thousands):

 

 

		Severance benefit
Remainder of 2016		$	—
2017			—
2018			—
2019			895
2020			1,651
2021			2,822
2022 – 2026			21,155

The above amounts were determined based on the non-executive employees’ current salary rates and the number of service years that will be accumulated upon their retirement dates. These amounts do not include amounts that might be paid to non-executive employees that will cease working with the Company before their normal retirement ages.

The above table reflects an effect of a mandatory extension of retirement age in Korea from 57 to 60 under the Employment Promotion for the Aged Act effective from the beginning of 2016.