Note 10: Benefit Plans

We sponsor three funded, noncontributory defined benefit pension plans. These plans cover substantially all employees hired prior to July 15, 2007, other than those covered by union-administered plans. Normal retirement age is 65, but the plans contain provisions for earlier retirement. Benefits for the Salaried Plan are generally based on salaries or wages and years of service; the Construction Materials Hourly Plan and the Chemicals Hourly Plan provide benefits equal to a flat dollar amount for each year of service. In addition to these qualified plans, we sponsor three unfunded, nonqualified pension plans.

Effective July 15, 2007, we amended our defined benefit pension plans to no longer accept new participants. In December 2013, we amended our defined benefit pension plans so that future service accruals for salaried pension participants ceased effective December 31, 2013. This change included a special transition provision which will allow covered compensation through December 31, 2015 to be considered in the participants’ benefit calculations. The amendment resulted in a curtailment and remeasurement of the salaried and nonqualified pension plans as of May 31, 2013 that reduced our 2013 pension expense by approximately $7,600,000 (net of the one-time curtailment loss) of which $800,000 was related to discontinued operations.

The following table sets forth the components of net periodic pension benefit cost:



PENSION BENEFITS	Three Months Ended		Six Months Ended
		June 30		June 30
in thousands	2014	2013	2014	2013
Components of Net Periodic Benefit Cost
Service cost	$ 1,040	$ 5,821	$ 2,079	$ 11,894
Interest cost	11,098	10,291	22,196	20,637
Expected return on plan assets	(12,700)	(11,815)	(25,401)	(23,574)
Curtailment loss	0	855	0	855
Amortization of prior service cost	47	85	94	180
Amortization of actuarial loss	2,805	5,575	5,610	11,995
Net periodic pension benefit cost	$ 2,290	$ 10,812	$ 4,578	$ 21,987
Pretax reclassification from AOCI included in
net periodic pension benefit cost	$ 2,852	$ 6,515	$ 5,704	$ 13,030

Prior contributions, along with the existing funding credits, are sufficient to cover required contributions to the qualified plans through 2014. However, we anticipate making an approximate $2,000,000 discretionary pension contribution in 2014.

In addition to pension benefits, we provide certain healthcare and life insurance benefits for retired employees. In the fourth quarter of 2012, we amended our postretirement healthcare plan to cap our portion of the medical coverage cost at the 2015 level. In the third quarter of 2007, we amended our salaried postretirement healthcare coverage to increase the eligibility age for early retirement coverage to age 62, unless certain grandfathering provisions were met. Substantially all our salaried employees and where applicable, hourly employees may become eligible for these benefits if they reach a qualifying age and meet certain service requirements. Generally, company-provided healthcare benefits terminate when covered individuals become eligible for Medicare benefits, become eligible for other group insurance coverage or reach age 65, whichever occurs first.

The following table sets forth the components of net periodic postretirement benefit cost:



OTHER POSTRETIREMENT BENEFITS	Three Months Ended		Six Months Ended
		June 30		June 30
in thousands	2014	2013	2014	2013
Components of Net Periodic Benefit Cost
Service cost	$ 537	$ 707	$ 1,073	$ 1,415
Interest cost	825	815	1,649	1,630
Curtailment gain	0	0	(3,832)	0
Amortization of prior service credit	(1,082)	(1,216)	(2,164)	(2,432)
Amortization of actuarial loss	56	343	113	686
Net periodic postretirement benefit cost	$ 336	$ 649	$ (3,161)	$ 1,299
Pretax reclassification from AOCI included in
net periodic postretirement benefit cost	$ (1,026)	$ (873)	$ (5,883)	$ (1,746)

The reclassifications from AOCI noted in the tables above are related to curtailment gains, amortization of prior service costs or credits and actuarial losses as shown in Note 11.

The March 2014 sale of our cement and concrete businesses in the Florida area (see Note 16) significantly reduced total expected future service of our postretirement plans resulting in a one-time curtailment gain of $3,832,000. This gain was reflected within gain on sale of property, plant & equipment, net in our accompanying Condensed Consolidated Statement of Comprehensive Income for the six months ended June 30, 2014.