We have a noncontributory defined benefit pension plan (the "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 Pension Plan provides retirement benefits based on an employee’s final 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 pension benefits for compensation in excess of the IRS compensation limits applicable to the Pension Plan and eligible compensation deferred by a participant.

Our funding policy is to make contributions to the Pension Plan, 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 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 healthcare 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 pension (except a deferred pension) under the Pension Plan. Medical benefits are self-insured and claims are administered through a third party administrator. 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 September 30, 2020 and December 31, 2019.

The net periodic benefit cost for the three and nine months ended September 30, 2020 and 2019 includes the following components:



	Pension Benefits				Postretirement Benefits
	Three Months Ended				Three Months Ended
	September 30,				September 30,
Components of Net Periodic Benefit Cost	2020		2019		2020		2019
Selling, general, and administrative expenses:
Service cost	$	7.2	$	6.4	$	0.5	$	0.5
Total selling, general, and administrative expenses	$	7.2	$	6.4	$	0.5	$	0.5
Non-operating expenses:
Interest cost	$	6.9	$	7.5	$	0.6	$	0.7
Expected return on plan assets		(8.3)		(8.5)		—		—
Amortization of:
Net actuarial loss		7.4		4.8		0.2		—
Settlement charge		17.7		—		—		—
Total non-operating expenses	$	23.7	$	3.8	$	0.8	$	0.7
Net periodic benefit cost	$	30.9	$	10.2	$	1.3	$	1.2



	Pension Benefits				Postretirement Benefits
	Nine Months Ended				Nine Months Ended
	September 30,				September 30,
Components of Net Periodic Benefit Cost	2020		2019		2020		2019
Selling, general, and administrative expenses:
Service cost	$	21.5	$	19.2	$	1.6	$	1.5
Total selling, general, and administrative expenses	$	21.5	$	19.2	$	1.6	$	1.5
Non-operating expenses:
Interest cost	$	20.7	$	22.5	$	1.8	$	2.2
Expected return on plan assets		(24.7)		(25.5)		—		—
Amortization of:
Net actuarial loss		22.2		14.3		0.5		0.2
Settlement charge		17.7		—		—		—
Total non-operating expenses	$	35.9	$	11.3	$	2.3	$	2.4
Net periodic benefit cost	$	57.4	$	30.5	$	3.9	$	3.9

For the nine months ended September 30, 2020, we made lump-sum pension benefit distributions exceeding the settlement accounting threshold. A pension settlement charge is required when the cost of all settlements during the year is greater than the sum of the service and interest cost components of the annual net periodic pension cost. Accordingly, we recorded a non-cash pension settlement charge of $17.7 million in non-operating expenses on our condensed consolidated statements of income. This settlement charge represented the immediate recognition into expense of a portion of the unrecognized loss within accumulated other comprehensive loss in proportion to the share of the projected benefit obligation that was settled by the lump-sum pension benefit distributions.

We made qualified and nonqualified pension contributions totaling $20.0 million during the three-month period ended September 30, 2020 and contributions totaling $10.0 million during the three-month period ended September 30, 2019. Contributions made during the nine-month periods ended September 30, 2020 and 2019 totaled $41.8 million and $11.7 million, respectively. No additional contributions are expected to be paid during the remainder of 2020, but may change at our discretion.