Pension Plan and Postretirement Benefits Other Than Pension

6 Months Ended

Jun. 30, 2012

Pension Plan and Postretirement Benefits Other Than Pension

Pension Plan and Postretirement Benefits Other Than Pension

8.     Pension Plan and Postretirement Benefits Other Than Pension

We provide a non-contributory retirement plan that covers substantially all employees and certain vested employees of our former parent company (the “Pension Plan”).  Benefits payable under the Pension Plan are based on employees’ years of service and compensation during the final 10 years of employment.  We also sponsor an unfunded defined benefit postretirement medical plan that covers substantially all employees, as well as Waddell & Reed and Legend advisors.  The medical plan is contributory with participant contributions adjusted annually.  The medical plan does not provide for post age 65 benefits with the exception of a small group of employees that were grandfathered when such plan was established.

The components of net periodic pension and other postretirement costs related to these plans are as follows:

	Pension Benefits					Other Postretirement Benefits		Pension Benefits				Other Postretirement Benefits
	Three months ended June 30,					Three months ended June 30,		Six months ended June 30,				Six months ended June 30,
	2012			2011		2012	2011	2012		2011		2012	2011
	(in thousands)							(in thousands)
Components of net periodic benefit cost:
Service cost	$	2,478		1,850		173	140	4,687		3,551		346	279
Interest cost	1,973			1,861		100	100	3,785		3,598		200	201
Expected return on plan assets	(2,273		)	(2,196	)	—	—	(4,400	)	(4,382	)	—	—
Actuarial loss amortization	1,260			518		3	—	2,281		902		6	—
Prior service cost amortization	139			139		14	14	278		278		28	28
Transition obligation amortization	2			1		—	—	3		2		—	—
Total	$	3,579		2,173		290	254	6,634		3,949		580	508

During the first six months of 2012, we contributed $15.0 million to the Pension Plan.  We do not expect to make additional contributions for the remainder of 2012.