Pension and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2014

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 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 September 30, 2014 and December 31, 2013.

The net periodic benefit cost for the three and nine months ended September 30, 2014 and 2013 included the following components: 

	Pension Benefits						Postretirement Benefits
	Three Months Ended   September 30,						Three Months Ended   September 30,
Components of Net Periodic Benefit Cost	2014			2013			2014			2013
Service cost	$	5,551		$	6,030		$	614		$	661
Interest cost	6,704			5,979			834			718
Expected return on plan assets	(6,656		)	(5,977		)	—			—
Amortization of:
Net actuarial loss	4,410			6,593			317			449
Prior service cost (gain)	238			343			(545		)	(545		)
Net periodic benefit cost	$	10,247		$	12,968		$	1,220		$	1,283
	Pension Benefits						Postretirement Benefits
	Nine Months Ended   September 30,						Nine Months Ended   September 30,
Components of Net Periodic Benefit Cost	2014			2013			2014			2013
Service cost	$	16,654		$	18,089		$	1,841		$	1,983
Interest cost	20,113			17,936			2,502			2,154
Expected return on plan assets	(19,968		)	(17,931		)	—			—
Amortization of:
Net actuarial loss	13,229			19,778			951			1,346
Prior service cost (gain)	714			1,031			(1,635		)	(1,635		)
Settlement loss	789			—			—			—
Net periodic benefit cost	$	31,531		$	38,903		$	3,659		$	3,848

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

The Company made contributions to its defined benefit pension plan totaling $10,002 during the three-month periods ended September 30, 2014 and 2013. Contributions made during the nine-month periods ended September 30, 2014 and 2013 totaled $32,863 and $30,680, respectively. Additional contributions totaling $10,002 are expected to be paid during the remainder of 2014.