RETIREMENT PLANS

Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees. Additionally, Barnwell sponsors a Supplemental Employee Retirement Plan (“SERP”), a noncontributory supplemental retirement benefit plan which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan, and a postretirement medical insurance benefits plan (“Postretirement Medical”) covering eligible U.S. employees.

The following tables detail the components of net periodic benefit (income) cost for Barnwell’s retirement plans:



	Pension Plan						SERP					Postretirement Medical
	Three months ended March 31,
	2020			2019			2020		2019			2020		2019
Service cost	$	—		$	50,000		$	—	$	9,000		$	—	$	—
Interest cost	72,000			94,000			15,000		21,000			20,000		25,000
Expected return on plan assets	(172,000		)	(160,000		)	—		—			—		—
Amortization of prior service cost (credit)	—			2,000			—		(1,000		)	—		—
Amortization of net actuarial loss	—			1,000			—		1,000			20,000		13,000
Net periodic benefit (income) cost	$	(100,000	)	$	(13,000	)	$	15,000	$	30,000		$	40,000	$	38,000



	Pension Plan						SERP						Postretirement Medical
	Six months ended March 31,
	2020			2019			2020			2019			2020		2019
Service cost	$	50,000		$	100,000		$	3,000		$	18,000		$	—	$	—
Interest cost	155,000			187,000			33,000			42,000			40,000		50,000
Expected return on plan assets	(335,000		)	(321,000		)	—			—			—		—
Amortization of prior service cost (credit)	1,000			3,000			(1,000		)	(2,000		)	—		—
Amortization of net actuarial loss	35,000			4,000			5,000			2,000			40,000		26,000
Curtailment cost (income)	53,000			—			(53,000		)	—			—		—
Net periodic benefit (income) cost	$	(41,000	)	$	(27,000	)	$	(13,000	)	$	60,000		$	80,000	$	76,000

The net periodic benefit (income) cost, including service cost, is included in “General and administrative” expenses in the Company's Condensed Consolidated Statements of Operations.

On December 12, 2019, the Company’s Board of Directors approved a resolution to freeze all future benefit accruals for all participants under the Company’s Pension Plan and SERP effective December 31, 2019. Accordingly, the Company remeasured the projected benefit obligation of the Pension Plan and SERP as of December 31, 2019. As a result of the remeasurement, the Company recorded an $880,000 actuarial gain in accumulated other comprehensive loss during the quarter ended December 31, 2019. The actuarial gain was primarily due to an increase in the market value of Pension Plan assets as well as an increase in the discount rate for both plans during the period. The impact of the Pension Plan and SERP plan freeze resulted in a $1,699,000 reduction in unrecognized pension benefit costs that were previously included in accumulated other comprehensive loss, with a corresponding benefit in other comprehensive income which was recorded in the first quarter ended December 31, 2019. No remeasurement was required for the three months ended March 31, 2020.

Currently, no contributions are expected to be made to the Pension Plan during fiscal 2020. The SERP and Postretirement Medical plans are unfunded, and Barnwell funds benefits when payments are made. Expected payments under the Postretirement Medical plan and the SERP for fiscal 2020 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods.