Pension Plan and Postretirement Benefits Other Than Pension

3 Months Ended

Mar. 31, 2015

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 our advisors, who are independent contractors.  The medical plan is contributory with participant retiree 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 were as follows:

	Pension Benefits					Other Postretirement Benefits
	Three months ended March 31,					Three months ended March 31,
	2015			2014		2015	2014
	(in thousands)
Components of net periodic benefit cost:
Service cost	$	3,047		2,725		228	180
Interest cost	2,154			2,153		99	99
Expected return on plan assets	(3,691		)	(3,413	)	—	—
Actuarial (gain) loss amortization	1,377			411		—	(4	)
Prior service cost amortization	115			130		5	14
Transition obligation amortization	1			1		—	—
Total(1)	$	3,003		2,007		332	289

(1) Approximately 60% of net periodic pension and other postretirement benefit costs are included in compensation and related costs on the consolidated statements of income, while the remainder is included in underwriting and distribution expense.

During the first quarter of 2015, we contributed $20.0 million to the Pension Plan.