PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2021

PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS

PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS

11. PENSION PLAN AND OTHER POST-RETIREMENT BENEFITS

Defined Benefit Plans

We sponsor qualified defined benefit pension plans that are non-contributory covering substantially all of our hourly employees under collective bargaining agreements who fulfill minimum age and service requirements and certain salaried employees.  The defined benefit pension plans are closed to all new entrants. All of our defined benefit pension plans are now frozen to all current employees, and no additional monthly pension benefits will accrue under those plans.

We also have non-qualified supplemental retirement plans (the “Supplemental Plans” and, together with the defined benefit pension plans, the “Pension Plans”).  The Supplemental Plans provide supplemental retirement benefits to certain former employees by providing for incremental pension payments to partially offset the reduction of the amount that would have been payable under the qualified defined benefit pension plans if it were not for limitations imposed by federal income tax regulations. The Supplemental Plans are frozen so that no person is eligible to become a new participant. These plans are unfunded and have no assets.  The benefits paid under the Supplemental Plans are paid from the general operating funds of the Company.

The following table summarizes the components of net periodic pension cost for our Pension Plans for the quarters and six-month periods ended June 30, 2021 and 2020:

	Quarter Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2021		2020		2021		2020
Interest cost	$	5,680	$	6,519	$	11,361	$	13,039
Expected return on plan assets		(9,263)		(8,646)		(18,526)		(17,291)
Net amortization loss		557		311		1,114		622
Net prior service cost amortization		31		31		61		61
Net periodic pension benefit	$	(2,995)	$	(1,785)	$	(5,990)	$	(3,569)

The components of net periodic pension benefit other than the service cost component are included in other, net within other income (expense) in the condensed consolidated statements of operations.

Post-retirement Benefit Obligations

We sponsor various healthcare and life insurance plans (“Post-retirement Plans”) that provide post-retirement medical and life insurance benefits to certain groups of retired employees. Certain plans are frozen so that no person is eligible to become a new participant. Retirees share in the cost of healthcare benefits, making contributions that are adjusted periodically—either based upon collective bargaining agreements or because total costs of the program have changed. Covered expenses for retiree health benefits are paid as they are incurred. Post-retirement life insurance benefits are fully insured. A majority of the healthcare plans are unfunded and have no assets, and benefits are paid from the general operating funds of the Company.  However, a certain healthcare plan is funded by assets that are separately designated within the Pension Plans for the sole purpose of providing payments of retiree medical benefits for this specific plan.  

The following table summarizes the components of the net periodic cost for our Post-retirement Plans for the quarters and six-month periods ended June 30, 2021 and 2020:

	Quarter Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2021		2020		2021		2020
Service cost	$	223	$	258	$	445	$	516
Interest cost		657		885		1,314		1,769
Expected return on plan assets		(50)		(46)		(100)		(92)
Net amortization gain		(142)		(299)		(284)		(598)
Net prior service cost (credit) amortization		(226)		411		(451)		823
Net periodic post-retirement cost	$	462	$	1,209	$	924	$	2,418

The components of net periodic post-retirement benefit cost other than the service cost component are included in other, net within other income (expense) in the condensed consolidated statements of operations.

Contributions

We expect to contribute approximately $20.7 million to our Pension Plans and $8.8 million to our Post-retirement Plans in 2021.  As of June 30, 2021, we have contributed $8.9 million and $4.3 million of the annual contribution to the Pension Plans and Post-retirement Plans, respectively.