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 hired or rehired prior to 2014 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. Medical benefits are self-insured and claims are paid through an insurance company. The cost of coverage is determined based on the annual projected plan costs. The participant's premium or cost is determined based on Company guidelines. Postretirement life insurance benefits are insured through an insurance company. The Company funds postretirement benefits as incurred, and accordingly, there were no assets held in the postretirement benefits plan at March 31, 2014 and December 31, 2013.

The net periodic benefit cost for the three months ended March 31, 2014 and 2013 included the following components:



	Pension Benefits						Postretirement Benefits
	Three Months Ended March 31,						Three Months Ended March 31,
	Three Months Ended March 31,						Three Months Ended March 31,
Components of Net Periodic Benefit Cost	2014			2013			2014			2013
Service cost	$	5,597		$	6,525		$	625		$	675
Interest cost	6,799			5,975			825			725
Expected return on plan assets	(6,675		)	(5,975		)	—			—
Amortization of:
Net actuarial loss	4,534			6,325			275			475
Prior service cost (gain)	246			350			(550		)	(550		)
Settlement loss	789			—			—			—
Net periodic benefit cost	$	11,290		$	13,200		$	1,175		$	1,325

The Company recorded a settlement loss that resulted from lump sum pension distributions.

The Company made contributions to its defined benefit pension plan totaling $10,000 during each of the three-month periods ended March 31, 2014 and 2013. Additional contributions totaling $32,900 are expected to be paid during the remainder of 2014.