BENEFIT PLANS

9 Months Ended

Sep. 30, 2022

BENEFIT PLANS [Abstract]

BENEFIT PLANS

Note 10: Benefit Plans

PENSION PLANS

We sponsor two qualified, noncontributory defined benefit pension plans, the Vulcan Materials Company Pension Plan (VMC Pension Plan) and the CMG Hourly Pension Plan (CMG Pension Plan). The VMC Pension Plan has been closed to new entrants since 2007, and benefit accruals ceased in 2005 for hourly participants and 2013 for salaried participants. The CMG Pension Plan is closed to new entrants other than through one small union, and benefits continue to accrue equal to a flat dollar amount for each year of service. In addition to these qualified plans, we sponsor three unfunded, nonqualified pension plans.

During October 2021, we purchased (using pension plan assets) an irrevocable group annuity contract (pension lift-out) from an insurance company to transfer approximately 10% of the total projected benefit obligation as of the purchase date. As a result of this transaction: 1) we incurred a settlement charge of $12.1 million, 2) we were relieved of all responsibility for these pension obligations, and 3) the insurance company is now required to pay and administer the retirement benefits owed to 2,764 U.S. retirees and beneficiaries (representing approximately 50% of retirees in payment status at that time), with no change to the amount, timing or form of retirement benefit payments.

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

PENSION BENEFITS	Three Months Ended		Nine Months Ended
	September 30		September 30
in millions	2022	2021	2022	2021
Components of Net Periodic Benefit Cost
Service cost	$          1.0	$          1.2	$          3.0	$          3.6
Interest cost	5.3	4.9	15.8	14.6
Expected return on plan assets	(7.5)	(11.4)	(22.6)	(34.1)
Amortization of prior service cost	0.4	0.3	1.1	1.0
Amortization of actuarial loss	1.1	2.2	3.2	6.5
Net periodic pension benefit cost (credit)	$          0.3	$        (2.8)	$          0.5	$        (8.4)
Pretax reclassifications from AOCI included in
net periodic pension benefit cost	$          1.5	$          2.5	$          4.3	$          7.5

The contributions to pension plans for the nine months ended September 30, 2022 and 2021, as reflected on the Condensed Consolidated Statements of Cash Flows, pertain to benefit payments under nonqualified plans for both periods.

POSTRETIREMENT PLANS

In addition to pension benefits, we provide certain healthcare and life insurance benefits for some retired employees. In 2021, we amended our postretirement healthcare plan to increase our employer contribution rate from the previously capped level (established in 2015) to a higher level effective 2022. This will serve as a cost reduction for retirees in 2022 that will carry forward as we use this new benchmark for future employer contributions. Substantially all our salaried employees and, where applicable, certain of our hourly employees may become eligible for these benefits if they reach a qualifying age and meet certain service requirements. Generally, Company-provided healthcare benefits end 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 other postretirement benefit cost:

OTHER POSTRETIREMENT BENEFITS	Three Months Ended		Nine Months Ended
	September 30		September 30
in millions	2022	2021	2022	2021
Components of Net Periodic Benefit Cost
Service cost	$          0.6	$          0.3	$          1.7	$          0.8
Interest cost	0.3	0.1	0.7	0.3
Amortization of prior service credit	0.0	(0.5)	(0.2)	(1.4)
Amortization of actuarial gain	(0.3)	(0.4)	(1.0)	(1.1)
Net periodic postretirement benefit cost (credit)	$          0.6	$        (0.5)	$          1.2	$        (1.4)
Pretax reclassifications from AOCI included in
net periodic postretirement benefit credit	$        (0.3)	$        (0.9)	$        (1.2)	$        (2.5)

DEFINED CONTRIBUTION PLANS

In addition to our pension and postretirement plans, we sponsor five defined contribution plans including three plans related to the U.S. Concrete acquisition. Substantially all salaried and nonunion hourly employees are eligible to be covered by one of these plans. Under these plans, we match employees’ eligible contributions at established rates. Expense recognized in connection with these matching obligations totaled $49.1 million and $49.9 million for the nine months ended September 30, 2022 and 2021, respectively.