Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2013

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Pension and Other Postretirement Benefits

PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company has a noncontributory defined benefit pension plan covering substantially all full-time employees.  The plan provides retirement benefits based on an employee’s average earnings and years of service.  Employees become one hundred percent (100%) vested after three years of service, regardless of age.  The Company’s plan funding policy is to make contributions provided that the total annual contributions will not be less than the Employee Retirement Income Security Act ("ERISA") and the Pension Protection Act of 2006 minimums or greater than the maximum tax-deductible amount, to review contribution and funding strategy on a regular basis, and to allow discretionary contributions to be made by the Company from time to time.  The assets of the defined benefit pension plan are invested primarily in fixed income and equity securities, money market funds, and other investments.

The Company provides certain postretirement health care and life insurance benefits to retired employees. Substantially all of the Company’s employees may become eligible for postretirement medical benefits if they reach the age and service requirements of the retiree medical plan and retire on a service pension under the defined benefit pension plan. Benefits are provided through insurance coverage, with premiums based on the benefits paid during the year. The Company funds postretirement benefits on a pay-as-you-go basis, and accordingly, there were no assets held in the postretirement benefits plan at March 31, 2013 and 2012.

The net periodic benefit cost for the three months ended March 31, 2013 and 2012 included the following components: 

	Pension Benefits						Postretirement Benefits
	Three Months Ended March 31,						Three Months Ended March 31,
Components of Net Periodic Benefit Cost	2013			2012			2013			2012
Service cost	$	6,525		$	5,575		$	675		$	650
Interest cost	5,975			6,325			725			850
Expected return on plan assets	(5,975		)	(5,925		)	—			—
Amortization of:
Net actuarial loss	6,325			5,150			475			425
Prior service cost (gain)	350			350			(550		)	(525		)
Net periodic benefit cost	$	13,200		$	11,475		$	1,325		$	1,400

The Company made contributions to its defined benefit pension plan totaling $10,000 during each of the three-month periods ended March 31, 2013 and 2012. Additional contributions totaling $30,800 are expected to be paid during the remainder of 2013.