Pension Plan and Postretirement Benefits Other Than Pension

9 Months Ended

Sep. 30, 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 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			Pension Benefits				Other Postretirement Benefits
	Three months ended September 30,					Three months ended September 30,			Nine months ended September 30,				Nine months ended September 30,
	2015			2014		2015	2014		2015		2014		2015	2014
	(in thousands)								(in thousands)
Components of net periodic benefit cost:
Service cost	$	3,020		2,521		227	180		9,061		7,563		683	540
Interest cost	2,105			2,099		99	99		6,315		6,297		297	297
Expected return on plan assets	(3,628		)	(3,504	)	—	—		(10,884	)	(10,512	)	—	—
Actuarial (gain) loss amortization	1,293			373		—	(4	)	3,879		1,121		—	(12	)
Prior service cost amortization	115			117		5	14		345		351		15	42
Transition obligation amortization	1			1		—	—		3		3		—	—
Total(1)	$	2,906		1,607		331	289		8,719		4,823		995	867

(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.