Pension Plan and Postretirement Benefits Other Than Pension

3 Months Ended

Mar. 31, 2013

Pension Plan and Postretirement Benefits Other Than Pension

Pension Plan and Postretirement Benefits Other Than Pension

9. 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 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
	Three months ended					Three months ended
	March 31,					March 31,
	2013			2012		2013	2012
	(in thousands)
Components of net periodic benefit cost:
Service cost	$	2,950		2,209		197	173
Interest cost	1,952			1,812		90	100
Expected return on plan assets	(2,704		)	(2,127	)	—	—
Actuarial loss amortization	1,250			1,021		—	3
Prior service cost amortization	139			139		14	14
Transition obligation amortization	1			1		—	—
Total (1)	$	3,588		3,055		301	290

(1) Net periodic pension benefit cost related to discontinued operations and included in the table above was $196 thousand for the three months ended March 31, 2012. Net periodic cost for the postretirement medical plan related to discontinued operations and included in the table above was $3 thousand for the three months ended March 31, 2012.

During the first quarter of 2013, we contributed $10.0 million to the Pension Plan and contributed an additional $7.0 million to the Pension Plan in April 2013.