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 June 30, 2017, 98% of employees of the Company were eligible for severance benefits.

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

 

		Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
		June 30, 2017								June 30, 2016
Beginning balance		$	140,878			$	130,144			$	139,103			$	135,160
Provisions			3,390				10,776				4,056				9,827
Severance payments			(10,558	)			(18,082	)			(9,004	)			(13,102	)
Translation adjustments			(2,816	)			8,056				(1,355	)			915
			130,894				130,894				132,800				132,800
Less: Cumulative contributions to the National Pension Fund			(245	)			(245	)			(290	)			(290	)
Group severance insurance plan			(599	)			(599	)			(669	)			(669	)
Accrued severance benefits, net		$	130,050			$	130,050			$	131,841			$	131,841

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 2017		$	—
2018			—
2019			527
2020			1,108
2021			1,403
2022			1,432
2023 – 2027			18,868

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.

Korea’s mandatory retirement age is 60 under the Employment Promotion for the Aged Act.