Employee and Retiree Benefits

Postretirement health care and deferred compensation benefits are as follows:



(In thousands)	May 31, 2014			August 31, 2013
Postretirement health care benefit cost	$	33,342		$	36,244
Non-qualified deferred compensation	21,338			22,366
Executive share option plan liability	5,682			6,959
SERP benefit liability	2,760			2,876
Executive deferred compensation	199			105
Officer stock-based compensation	484			543
Total postretirement health care and deferred compensation benefits	63,805			69,093
Less current portion	(4,586		)	(5,019		)
Long-term postretirement health care and deferred compensation benefits	$	59,219		$	64,074

Postretirement Health Care Benefits

We provide certain health care and other benefits for retired employees hired before April 1, 2001, who have fulfilled eligibility requirements at age 55 with 15 years of continuous service. We use a September 1 measurement date for this plan and our postretirement health care plan currently is not funded. Changes in the postretirement benefit plan include:


•	In Fiscal 2005, we established dollar caps on the amount that we will pay for postretirement health care benefits per retiree on an annual basis so that we were not exposed to continued medical inflation. Retirees are required to pay a monthly premium in excess of the employer dollar caps for medical coverage based on years of service and age at retirement.


•	In January 2012 the employer-established dollar caps were reduced by 10%, which reduced our liability for postretirement health care by $4.6 million and is being amortized as prior service credit over 7.8 years.


•	In January 2013 the employer-established dollar caps were further reduced by 10%, which reduced our liability for postretirement health care by approximately $4.3 million and is being amortized as prior service credit over 7.5 years.


•	In January 2014 the employer-established dollar caps were further reduced by 10%, which reduced our liability for postretirement health care by approximately $3.6 million and is being amortized as prior service credit over 7.3 years.

Net periodic postretirement benefit income consisted of the following components:



	Three Months Ended						Nine Months Ended
(In thousands)	May 31, 2014			June 1, 2013			May 31, 2014			June 1, 2013
Interest cost	$	380		$	373		$	1,160		$	1,136
Service cost	96			140			296			433
Amortization of prior service benefit	(1,482		)	(1,366		)	(4,168		)	(3,803		)
Amortization of net actuarial loss	274			407			803			1,195
Net periodic postretirement benefit income	$	(732	)	$	(446	)	$	(1,909	)	$	(1,039	)

Payments for postretirement health care	$	247		$	271		$	779		$	836