Pension Plan and Postretirement Benefits Other Than Pension

6 Months Ended

Jun. 30, 2016

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 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:

				Other							Other
	Pension Benefits			Postretirement Benefits		Pension Benefits				Postretirement Benefits
	Three months ended June 30,			Three months ended June 30,		Six months ended June 30,				Six months ended June 30,
	2016		2015	2016	2015	2016		2015		2016		2015
	(in thousands)					(in thousands)
Components of net periodic benefit cost:
Service cost		3,106	2,994	185	228		6,099		6,041		370		456
Interest cost		2,277	2,056	92	99		4,716		4,210		184		198
Expected return on plan assets		(3,427)	(3,565)	—	—		(6,963)		(7,256)		—		—
Actuarial (gain) loss amortization		1,469	1,209	(38)	—		3,107		2,585		(77)		—
Prior service cost amortization		93	115	1	5		187		230		2		10
Transition obligation amortization		1	1	—	—		2		2		—		—
Total (1)	$	3,519	2,810	240	332		7,148		5,812		479		664

(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 2016, we contributed $20.0 million to the Pension Plan.