NOTE 16 - PENSION AND POSTRETIREMENT MEDICAL BENEFITS

We have a qualified, non-contributory, defined-benefit pension plan covering unionized and non-unionized employees hired prior to April 1, 2010, subject to certain eligibility criteria. Under the terms of the Pension Plan, employees are vested after completing five years of service, and can receive a pension benefit when they are at least age 55 with a minimum of 10 years of service. They are eligible to choose between various payment options such as a monthly benefit or a one-time lump-sum amount depending on factors such as years of service earned at the date of retirement. Our funding policy is to contribute to the pension trust fund the greater of the IRS deductible annual actuarial cost or the statutory minimum.

On November 9, 2009, our board of directors voted to approve changes to the pension plan and 401(k) plan with a conversion date of April 1, 2010. The pension plan described above was closed to employees hired after the conversion date. All employees hired after the conversion date are now given, in addition to the existing match on 401(k) contributions up to 4.25 percent, a core 401(k) contribution of 3 percent of base pay, or a total of up to 7.25 percent. The core contribution will be subject to a three-year cliff vesting schedule. For employees hired before the conversion date, the pension benefits described above will remain in effect. In addition, employees hired before the conversion date receive a core 401(k) contribution of .50 percent of eligible base pay into the 401(k) plan in addition to the current 401(k) company match of up to 4.25 percent, or a total of up to 4.75 percent. The pension plan was also enhanced on the conversion date by offering the so-called “Rule of 85.” Under the Rule of 85, if an employee is at least 55 years old with 10 years of service and their combined service and age totals at least 85, they will be eligible for an unreduced pension benefit.

We also sponsor a defined-benefit postretirement medical plan that covers all employees who retire with 10 or more years of service after age 45 and who are at least age 55. We fund this obligation through a Voluntary Employees' Benefit Association and a 401(h) Subaccount in the Pension Plan. Pre-age 65 retirees participate in plan options similar to active employees. Post-age 65 retirees receive limited coverage with a $10,000 annual individual maximum. Company contributions to retiree medical premiums are capped for employees retiring after 1995 at $0.3 million per year for pre-age 65 retirees and are capped at a nominal amount for post-age 65 retirees. There are no retiree contributions for pre-1996 retirees.

Beginning in 2009, the postretirement benefit was enhanced with sharing of one-half of the Medicare Part D subsidy that we received. Under this enhancement, we split the shared subsidy portion evenly between the pre-age 65 and post-age 65 retiree plans. Medicare Part D reduced our postretirement medical benefit costs by less than $0.1 million in 2011, $0.8 million in 2010 and $1.7 million in 2009.

FASB's guidance for employee retirement benefits requires an employer with a defined benefit plan or other postretirement plan to recognize an asset or liability on its balance sheet for the overfunded or underfunded status of the plan. For pension plans, the asset or liability is the difference between the fair value of the plan's assets and the projected benefit obligation. For postretirement benefit plans, the asset or liability is the difference between the fair value of the plan's assets and the accumulated postretirement benefit obligation.

Benefit Obligation The changes in benefit obligation for pension and postretirement medical benefits at the December 31, 2011 and 2010 measurement dates follow (dollars in thousands):

							Postretirement
	Pension Benefits						Medical Benefits
	2011			2010			2011			2010
Benefit obligation at beginning of fiscal year	$	128,502		$	116,958		$	25,241		$	28,861
Service cost		4,566			4,103			793			912
Interest cost		7,403			7,016			1,318			1,580
Plan participants' contributions		0			0			700			606
Actuarial loss (gain)		9,431			7,223			(757	)		(4,706	)
ERRP proceeds		0			0			13			0
Gross benefits paid		(10,877	)		(6,798	)		(2,141	)		(2,242	)
less: federal subsidy on benefits paid		0			0			234			230
Plan amendments		0			0			0			0
Benefit obligation at fiscal year end	$	139,025		$	128,502		$	25,401		$	25,241

Accumulated obligation as of measurement date (December 31)	$	113,769		$	105,930			n/a			n/a

The reduction in our accumulated postretirement benefit obligation due to the impact of the Medicare Part D subsidy was $0.2 million for 2011 and $0.5 million for 2010.

The present value of future contributions from Postretirement Plan participants was $37 million for 2011 and $31.7 million for 2010.

Benefit Obligation Assumptions Weighted-average assumptions used to determine benefit obligations at the December 31 measurement date for 2011 and 2010 are shown in the table that follows. The selection methodology used in determining discount rates includes portfolios of “Aa”-rated bonds; all are United States issues and non-callable (or callable with make-whole features) and each issue is at least $50 million in par value. The following weighted-average assumptions for pension and postretirement medical benefits were used in determining our related liabilities at December 31:

							Postretirement
	Pension Benefits						Medical Benefits
	2011			2010			2011			2010
Discount rates		5.20	%		5.75	%		4.85	%		5.25	%
Rate of increase in future compensation levels		4.25	%		4.25	%		4.25	%		4.25	%

For measurement purposes, an 8.0 percent annual rate of increase in the per capita cost of covered health care benefits was assumed for fiscal 2011, for pre-age 65 and post-age 65 participant claims costs. The rate is assumed to remain at 8.0 percent through 2013, and then the rate is assumed to decrease 0.5 percent each year until 2019 when an estimated ultimate trend rate of 5.0 percent is reached.

Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effect (dollars in thousands):

	Increase		Decrease
Effect on postretirement medical benefit obligation as of December 31, 2011	$	2,187	$	(1,809	)
Effect on aggregate service and interest costs	$	205	$	(168	)

Asset Allocation The asset allocations at the measurement date for 2011 and 2010, and the target allocation for 2012, by asset category, are as follows:

	Pension Plan									Postretirement Medical Plan
	2012 Target			2011			2010			2012 Target			2011			2010
Equity securities		37	%		39	%		58	%		60	%		59	%		62	%
Debt securities		53	%		51	%		42	%		40	%		41	%		38	%
Other		10	%		10	%		0	%		0	%		0	%		0	%
Total		100	%		100	%		100	%		100	%		100	%		100	%

Investment Strategy Our pension investment policy seeks to achieve sufficient growth to enable the Pension Plan to meet our future benefit obligations to participants, maintain certain funded ratios and minimize near-term cost volatility. Current guidelines specify generally that approximately 38 percent of plan assets be invested in equity securities, 52 percent of plan assets be invested in debt securities and 10 percent of assets be invested in alternative investments. The asset allocation guidelines will automatically adjust to predetermined levels as the plan's funded status improves. This approach is expected to reduce the risk of loss in the overall pension portfolio. The debt securities are primarily comprised of long-duration bonds to match changes in plan liabilities.

Our postretirement medical benefit plan investment policy seeks to achieve sufficient funding levels to meet future benefit obligations to participants and minimize near-term cost volatility. Current guidelines specify generally that 60 percent of the plan assets be invested in equity securities and 40 percent be invested in debt securities. Fixed-income securities are of a shorter duration to better match the cash flows of the postretirement medical obligation.

Concentrations of Risk: Benefit plan assets that potentially expose us to concentrations of risk include, but are not limited to, significant investments in a single entity, industry, country, commodity or type of security.

To mitigate concentrations of risk arising from our benefit plan investments in securities, we pursue a range of investment strategies using a well-diversified array of equity, fixed income and alternative funds. We also employ a “liability-driven” investing strategy in our pension portfolio, which is a strategy that matches the duration of liabilities and assets to mitigate the negative impact that movements in the interest rates can have on our funded status. Approximately 30 percent of our liabilities are duration-matched with plan assets.

Change in Plan Assets The changes in Plan assets at the December 31 measurement dates follow (dollars in thousands):

							Postretirement
	Pension Plan						Medical Plan
	2011			2010			2011			2010
Fair value of plan assets at beginning of fiscal year	$	107,434		$	97,205		$	18,407		$	15,027
Actual return on plan assets		7,030			13,731			55			2,239
Employer contributions		4,143			3,296			1,602			2,777
Plan participants' contributions		0			0			700			606
Gross benefits paid		(10,877	)		(6,798	)		(2,141	)		(2,242	)
Fair value of assets at fiscal year end	$	107,730		$	107,434		$	18,623		$	18,407

Funded Status The Plans' funded status at December 31 was as follows (dollars in thousands):

							Postretirement
	Pension Plan						Medical Plan
	2011			2010			2011			2010
Fair value of assets	$	107,730		$	107,434		$	18,623		$	18,407
Benefit obligation		(139,025	)		(128,502	)		(25,401	)		(25,241	)
Funded Status	$	(31,295	)	$	(21,068	)	$	(6,778	)	$	(6,834	)

The decrease in the Pension Plan funded status of $10.2 million for 2011 versus 2010 resulted from a increase of $0.3 million in the fair value of assets as shown in the table above, and an increase of $10.5 million in the benefit obligation, primarily due to actual gains on plan assets as shown in the tables above and changes in actuarial assumptions including the discount rate.

The increase in the Postretirement Medical Plan funded status of $0.1 million for 2011 versus 2010 resulted from an increase of $0.2 million in the fair value of assets as shown in the table above, offset by an increase of $0.1 million in the benefit obligation, primarily due to the reasons described above and employer contributions.

Fair Value Measures As of December 31, 2009, we adopted FASB guidance that requires additional information about the fair value measurements of plan assets that must be disclosed separately for each annual period for each plan asset category.

Valuation Techniques: Fair value guidance emphasizes that market-based measurement should be based on assumptions that market participants would use to price the benefit plan assets. The fair value guidance includes three valuation techniques to be used at the initial recognition and subsequent measurement of benefit plan assets: 1) Market Approach; 2) Income Approach; and 3) Cost Approach. Also see Note 6 - Fair Value for additional information about these valuation techniques.

The valuation technique used to determine the fair value of the debt and equity securities included in our pension and postretirement medical trust funds is the market approach. The securities are considered to be Level 1 in the fair value hierarchy since quoted prices are available in active markets for these assets. The fair value of the alternative investments is estimated using significant unobservable inputs. Because of this and because we are not assured of the ability to redeem these investments at net asset value as of the measurements date or within the near term, alternative investments are classified as Level 3.

Our alternative investments consist of two multi strategy hedge fund of funds and a diversified strategy of real estate property funds. The hedge funds carry one and two year lock-up provisions. All funds can be redeemed either quarterly or semi-annually with a 65-day or 95-day pre-notification, though redemptions of the real estate fund may be subject to queue. All funds carry a ten percent holdback on final payment, held in escrow until completion of the funds' audits.

Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the benefit plan assets and their placement within the fair value hierarchy levels. The following table sets forth by level within the fair value hierarchy our Pension Plan and Postretirement Medical Plan assets that are measured at fair value (dollars in thousands):

	Target			Pension Plan
	Allocation			Fair Value as of December 31, 2011
	2012			Level 1		Level 2		Level 3		Total
Marketable equity securities
U.S. Large cap		18	%	$	21,583					$	21,583
U.S. Small and mid cap		5	%		5,732						5,732
International		12	%		11,647						11,647
Other		2	%		2,723						2,723
Total marketable equity securities		37	%	$	41,685		0		0	$	41,685
Marketable debt securities
Corporate bonds		44	%	$	28,533					$	28,533
U.S. Government issued debt securities					12,029						12,029
U.S. Agency debt					1,212						1,212
Non-corporate					2,857						2,857
High yield debt		4	%		5,602						5,602
Emerging markets debt		3	%		2,772						2,772
Other		2	%		2,242						2,242
Total marketable debt securities		53	%	$	55,247		0		0	$	55,247
Hedge funds		5	%						5,303		5,303
Real estate fund		5	%						5,285		5,285
Cash and cash equivalents											0
Other					210						210
Total		100	%	$	97,142	$	0	$	10,588	$	107,730

	Target			Pension Plan
	Allocation			Fair Value as of December 31, 2010
	2011			Level 1		Level 2		Level 3		Total
Marketable equity securities
U.S. Large cap		31	%	$	34,893					$	34,893
U.S. Small and mid cap		5	%		5,645						5,645
International		18	%		21,209						21,209
Other											0
Total marketable equity securities		54	%	$	61,747		0		0	$	61,747
Marketable debt securities
Corporate bonds		33	%	$	20,958					$	20,958
U.S. Government issued debt securities					8,058						8,058
U.S. Agency debt					666						666
Non-corporate					1,774						1,774
High yield debt		10	%		10,640						10,640
Emerging markets debt		3	%		3,100						3,100
Other					282						282
Total marketable debt securities		46	%	$	45,478		0		0	$	45,478
Cash and cash equivalents					0						0
Other					209						209
Total		100	%	$	107,434	$	0	$	0	$	107,434

	Target			Postretirement Medical Plan
	Allocation			Fair Value as of December 31, 2011
	2012			Level 1		Level 2		Level 3		Total
Marketable equity securities
U. S. Large cap		35	%	$	6,778					$	6,778
U. S. Small and mid cap		9	%		1,656						1,656
International		16	%		2,787						2,787
Other											0
Total marketable equity securities		60	%	$	11,221		0		0	$	11,221
Marketable debt securities
Corporate bonds		35	%	$	1,553					$	1,553
U.S. Government issued debt securities					1,044						1,044
U.S. Agency debt					2,159						2,159
State and municipal					138						138
High yield debt		5	%		1,021						1,021
Other					1,783						1,783
Total marketable debt securities		40	%	$	7,698		0		0	$	7,698
Cash and cash equivalents											0
Other					28						28
Total Fair Value		100	%	$	18,947		0		0	$	18,947
Less amounts due from Trust to CVPS at December 31, 2011										$	(324	)
Net Plan Assets										$	18,623

	Target			Postretirement Medical Plan
	Allocation			Fair Value as of December 31, 2010
	2011			Level 1		Level 2		Level 3		Total
Marketable equity securities
U. S. Large cap		35	%	$	6,777					$	6,777
U. S. Small and mid cap		9	%		1,874						1,874
International		16	%		3,006						3,006
Other											0
Total marketable equity securities		60	%	$	11,657		0		0	$	11,657
Marketable debt securities
Corporate bonds		35	%	$	1,509					$	1,509
U.S. Government issued debt securities					777						777
U.S. Agency debt					1,964						1,964
State and municipal					26						26
High yield debt		5	%		1,009						1,009
Other					1,923						1,923
Total marketable debt securities		40	%	$	7,208		0		0	$	7,208
Cash and cash equivalents											0
Other					26						26
Total Fair Value		100	%	$	18,891		0		0	$	18,891
Less amounts due from Trust to CVPS at December 31, 2010										$	(484	)
Net Plan Assets										$	18,407

Level 3 Changes There were no transfers into or out of Level 3 during the periods presented. The following table is a reconciliation of changes in the net fair value of pension assets that are classified as Level 3 in the fair value hierarchy at December 31 (dollars in thousands):

	Hedge Funds			Real Estate		2011 Total
Balance Beginning of Period	$	0		$	0	$	0
Gains and losses (realized and unrealized)
Included in earnings		0			0		0
Included in regulatory and other assets/liability		(78	)		0		(78	)
Purchases		5,381			5,285		10,666
Balance at December 31	$	5,303		$	5,285	$	10,588

Amounts recognized in the Consolidated Balance Sheets Amounts related to accrued benefit costs recognized in our Consolidated Balance Sheets at December 31 consisted of (dollars in thousands):

							Postretirement
	Pension Benefits						Medical Benefits
	2011			2010			2011			2010
Current liability	$	0		$	0		$	(89	)	$	(179	)
Non-current liability		(31,295	)		(21,068	)		(6,689	)		(6,655	)
Total	$	(31,295	)	$	(21,068	)	$	(6,778	)	$	(6,834	)

At December 31, 2011, the Postretirement Medical Plan non-current liability shown above included an actuarial estimate of $0.2 million related to our Medicare Part D subsidy payments expected in 2012.

Amounts recognized in Regulatory Assets and Accumulated Other Comprehensive Loss The pre-tax amounts recognized in Regulatory assets and AOCL in our Consolidated Balance Sheet at December 31, 2011 consisted of (dollars in thousands):

	Regulatory Asset		AOCL		Total		Regulatory Asset		AOCL		Total
Net actuarial loss	$	29,032	$	97	$	29,129	$	4,335	$	15	$	4,350
Prior service cost		2,159	$	7		2,166		1,513		5		1,518
Transition obligation		0		0		0		191		1		192
Net amount recognized	$	31,191	$	104	$	31,295	$	6,039	$	21	$	6,060

The pre-tax amounts recognized in Regulatory assets and AOCL in our Consolidated Balance Sheet at December 31, 2010 consisted of (dollars in thousands):

	Pension Benefits						Postretirement Medical Benefits
	Regulatory Asset		AOCL		Total		Regulatory Asset		AOCL		Total
Net actuarial loss	$	18,429	$	59	$	18,488	$	4,190	$	13	$	4,203
Prior service cost		2,572		8		2,580		1,791		6		1,797
Transition obligation		0		0		0		447		1		448
Net amount recognized	$	21,001	$	67	$	21,068	$	6,428	$	20	$	6,448

Changes in Plan Assets and Benefit Obligations Recognized in Regulatory Assets and Other Comprehensive Income Components of pre-tax changes from 2010 to 2011 were as follows (dollars in thousands):

	Pension Benefits									Postretirement Medical Benefits
	Regulatory Asset			AOCL			Total			Regulatory Asset			AOCL			Total
Amounts amortized during the year
Net transition (obligation)/asset	$	0		$	0		$	0		$	(256	)	$	0		$	(256	)
Net prior service (cost)/credit		(413	)		(1	)		(414	)		(278	)		(1	)		(279	)
Net (loss)/gain		(239	)		(1	)		(240	)		(201	)		(1	)		(202	)
Amounts arising during the year
*Net loss/(gain)		10,842			39			10,881			346			3			349
Net amount recognized	$	10,190		$	37		$	10,227		$	(389	)	$	1		$	(388	)
*includes loss/gain of $46,840 related to Medicare Part D subsidy receipts in 2011, lower/(higher) than expected, and ERRP proceeds of $312,015 to reduce the company's cost of providing retiree drug benefits.

Components of pre-tax changes from 2009 to 2010 were as follows (dollars in thousands):

	Pension Benefits									Postretirement Medical Benefits
	Regulatory Asset			AOCL			Total			Regulatory Asset			AOCL			Total
Amounts amortized during the year
Net transition obligation	$	0		$	0		$	0		$	(255	)	$	(1	)	$	(256	)
Net prior service cost		(427	)		(1	)		(428	)		(279	)		0			(279	)
Net loss		0			0			0			(966	)		(3	)		(969	)
Amounts arising during the year
*Net loss (gain)		1,735			8			1,743			(5,703	)		(17	)		(5,720	)
Net amount recognized	$	1,308		$	7		$	1,315		$	(7,203	)	$	(21	)	$	(7,224	)

*includes loss/(gain) of $21,379 related to Medicare Part D subsidy receipts in 2010, lower/(higher) than expected

Components of pre-tax changes from 2008 to 2009 were as follows (dollars in thousands):

	Pension Benefits									Postretirement Medical Benefits
	Regulatory Asset			AOCL			Total			Regulatory Asset			AOCL			Total
Amounts amortized during the year
Net transition obligation	$	0		$	0		$	0		$	(255	)	$	(1	)	$	(256	)
Net prior service cost		(341	)		(1	)		(342	)		(278	)		(1	)		(279	)
Net loss		0			0			0			(1,511	)		(5	)		(1,516	)
Amounts arising during the year
Net prior service cost		1,247			4			1,251			454			1			455
Net gain		(8,189	)		(25	)		(8,214	)		(3,703	)		(11	)		(3,714	)
Net amount recognized	$	(7,283	)	$	(22	)	$	(7,305	)	$	(5,293	)	$	(17	)	$	(5,310	)

Net Periodic Benefit Costs Components of net periodic benefit costs were as follows (dollars in thousands):

	Pension Benefits									Postretirement Benefits
	2011			2010			2009			2011			2010			2009
Service cost	$	4,566		$	4,103		$	3,783		$	793		$	912		$	710
Interest cost		7,403			7,016			6,608			1,318			1,580			1,712
Expected return on plan assets		(8,480	)		(8,251	)		(8,306	)		(1,427	)		(1,205	)		(785	)
Amortization of net actuarial loss		240			0			0			202			969			1,516
Amortization of prior service cost		414			428			342			279			279			279
Amortization of transition obligation		0			0			0			256			256			256
Net periodic benefit cost		4,143			3,296			2,427			1,421			2,791			3,688
Less amounts capitalized		841			678			311			288			574			473
Net benefit costs expensed	$	3,302		$	2,618		$	2,116		$	1,133		$	2,217		$	3,215

Benefit Cost Assumptions Weighted average assumptions are used to determine our annual benefit costs.

	Pension Benefits									Postretirement Medical Benefits
	2011			2010			2009			2011			2010			2009
Weighted-average discount rates		5.75	%		6.00	%		6.15	%		5.25	%		5.50	%		6.05	%
Expected long-term return on assets		7.85	%		7.85	%		7.85	%		7.85	%		7.85	%		7.85	%
Rate of increase in future compensation levels		4.25	%		4.25	%		4.25	%		4.25	%		4.25	%		4.25	%

2012 Cost Amortizations: The estimated amounts that will be amortized from regulatory assets and accumulated other comprehensive income into net periodic benefit cost in 2012 are as follows (dollars in thousands):

			Postretirement
	Pension Benefits		Medical Benefits
Actuarial loss	$	908	$	224
Prior service cost		328		279
Transition benefit obligation		0		192
Total	$	1,236	$	695

Expected Long-Term Rate of Return on Plan Assets The expected long-term rate of return on assets shown in the table above was used to calculate the 2011 pension and postretirement medical benefit expenses. The expected long-term rate of return on assets used to calculate these expenses for 2012 will be 7.25 percent.

In formulating the assumed rate of return, we considered historical returns by asset category and expectations for future returns by asset category based, in part, on simulated capital market performance over the next 10 years.

The Pension Plan assets earned a return, net of fees, of 6.7 percent in 2011, 14.6 percent in 2010 and 25.2 percent in 2009.

Trust Fund Contributions The Pension Plan currently meets the minimum funding requirements of the Employee Retirement Income Security Act of 1974. In 2011, we contributed $4.1 million to the pension trust fund and $1.6 million to the postretirement medical trust funds.

Expected Cash Flows The table below reflects the total benefits expected to be paid from the external Pension Plan trust fund or from our assets, including both our share of the pension and postretirement benefit costs and the share of the postretirement medical benefit cost funded by participant contributions. Expected contributions reflect amounts expected to be contributed to funded plans. Of the benefits expected to be paid in 2012, approximately $14 million will be paid from the Pension Plan trust fund, and $1.9 million will be paid from the postretirement medical trust funds to reimburse us for out-of-pocket benefit payments. Information about the expected cash flows for the Pension Plan and postretirement medical benefit plans is as follows (dollars in thousands):

	Pension Benefits		Postretirement Medical Benefits
					Expected
			Gross		Federal Subsidy
Expected Contributions During 2012
Employer	$	5,400	$	1,700
Plan participants		n/a	$	849

Expected Benefit Payments
2012		14,007		1,921		221
2013		8,916		2,027		236
2014		10,148		2,094		253
2015		11,308		2,086		279
2016		8,526		2,081		299
2017 - 2021		57,787		10,661		1,731

The estimated Medicare Part D subsidy included in the expected gross postretirement medical benefit payments is shown above.

Other Long-term Disability: We record non-accumulating post-employment long-term disability benefits in accordance with FASB's guidance for Contingencies. For 2011, the year-end post-employment benefit obligation was $1.5 million, of which $1.3 million was recorded as Accrued pension and benefit obligations and $0.2 million was recorded as Other current liabilities. For 2010, the year-end post-employment medical benefit obligation was $1.2 million, of which $1 million was recorded as Accrued pension and benefit obligations and $0.2 million was recorded as Other current liabilities. The pre-tax post-employment benefit costs charged to expense (credit), including insurance premiums, were $0.5 million in 2011, $0.2 million in 2010 and ($0.1) million in 2009.

401(k) Savings Plan: Most eligible employees choose to participate in our 401(k) Savings Plan. This savings plan provides for employee pre-tax and post-tax contributions up to specified limits. We match employee pre-tax contributions after one year of service. Eligible employees are at all times vested 100 percent in their pre-tax and post-tax contribution account and in their matching employer contribution. However, core contributions for employees after April 1, 2010 will be subject to three-year cliff vesting. Our matching contributions amounted to $1.8 million in 2011, $1.7 million in 2010 and $1.5 million in 2009.

Other Benefits: We also provide a SERP to certain of our executive officers. The SERP is designed to supplement the retirement benefits available through our qualified Pension Plan and for officers newly hired after April 1, 2010 to supplement the retirement benefits available through our defined contribution plan.

For 2011, the accumulated year-end SERP benefit obligation, based on a discount rate of 4.65 percent, was $1.8 million, of which $1.6 million was recorded as Accrued pension and benefit obligations and $0.2 million was recorded as Other current liabilities in the Consolidated Balance Sheets. The 2010 accumulated year-end SERP benefit obligation, based on a discount rate of 4.95 percent, was $3.6 million, of which $3.5 million was recorded as Accrued pension and benefit obligations and $0.1 million was recorded as Other current liabilities in the Consolidated Balance Sheets.

The accumulated SERP benefit obligation included a comprehensive loss of $0.1 million in 2011. The accumulated SERP benefit obligation included a comprehensive gain of $0.1 million in 2010 and an immaterial comprehensive loss in 2009. The pre-tax SERP benefit costs charged to expense totaled $0.3 million in 2011, $0.2 million in 2010 and $0.3 million in 2009.

Benefits are funded through life insurance policies held in a Rabbi Trust. Rabbi Trust assets are not considered plan assets for accounting purposes. The year-end balance included in Investments and Other Assets on our Consolidated Balance Sheets was $7.1 million in 2011 and $7 million in 2010. Rabbi Trust expenses, including changes in cash surrender value, are included in Other deductions on our Consolidated Statements of Income. The pre-tax amounts charged (credited) to expense were $0.5 million for 2011, $0.1 million for 2010, and ($0.6) million for 2009.