PENSION AND OTHER POSTRETIREMENT BENEFITS

We have a noncontributory defined benefit pension plan covering substantially all employees first hired prior to July 1, 2015 after the completion of one year of service and 1,000 hours of service. The plan provides retirement benefits based on an employee’s average earnings and years of service. These employees become 100% vested after three years of service, regardless of age. A supplemental benefit plan provides nonqualified benefits for compensation in excess of the IRS compensation limits applicable to the plan.

Our plan funding policy is to make contributions, provided that the total annual contributions will not be less than ERISA and the Pension Protection Act of 2006 minimums or greater than the maximum tax-deductible amount, to review the contribution and funding strategy on a regular basis, and to allow discretionary contributions to be made by us from time to time. The assets of the defined benefit pension plan are invested primarily in fixed income investments and equity securities. We pay nonqualified pension benefits when they are due according to the terms of the supplemental benefit plan.

We provide certain postretirement health care and life insurance benefits to retired employees. Substantially all of our 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. We fund postretirement benefits as incurred, and accordingly, there were no assets held in the postretirement benefits plan at June 30, 2015 and December 31, 2014.

The net periodic benefit cost for the three and six months ended June 30, 2015 and 2014 included the following components:



	Pension Benefits						Postretirement Benefits
	Three Months Ended June 30,						Three Months Ended June 30,
	Three Months Ended June 30,						Three Months Ended June 30,
Components of Net Periodic Benefit Cost	2015			2014			2015			2014
Service cost	$	6,304		$	5,506		$	577		$	602
Interest cost	6,251			6,610			713			843
Expected return on plan assets	(7,123		)	(6,637		)	—			—
Amortization of:
Net actuarial loss	5,090			4,285			271			359
Prior service cost (gain)	113			230			(545		)	(540		)
Net periodic benefit cost	$	10,635		$	9,994		$	1,016		$	1,264



	Pension Benefits						Postretirement Benefits
	Six Months Ended June 30,						Six Months Ended June 30,
	Six Months Ended June 30,						Six Months Ended June 30,
Components of Net Periodic Benefit Cost	2015			2014			2015			2014
Service cost	$	12,804		$	11,103		$	1,252		$	1,227
Interest cost	12,601			13,409			1,463			1,668
Expected return on plan assets	(14,148		)	(13,312		)	—			—
Amortization of:
Net actuarial loss	10,014			8,819			522			634
Prior service cost (gain)	226			476			(1,090		)	(1,090		)
Settlement loss	—			789			—			—
Net periodic benefit cost	$	21,497		$	21,284		$	2,147		$	2,439

A settlement loss that resulted from lump sum pension distributions was recorded during the six months ended June 30, 2014.

We made qualified and nonqualified pension contributions totaling $10,002 during the three-month periods ended June 30, 2015 and 2014, respectively. Contributions made during the six-month periods ended June 30, 2015 and 2014 totaled $21,534 and $22,862, respectively. Additional contributions totaling $20,003 are expected to be paid during the remainder of 2015.