Benefit Plans

6 Months Ended

Jun. 30, 2020

Benefit Plans

Qualified Retirement Benefits. The Company has qualified retirement plans covering certain U.S. employees that have been closed to new participants since 2003 and frozen since December 2013. Plans that cover salaried employees provide retirement benefits based on the employee’s compensation during the ten years before the date of the plan freeze or the date of their actual separation from service, if earlier. The Company’s funding policy for salaried plans is to contribute annually based on actuarial projections and applicable regulations. Plans covering hourly employees generally provide benefits of stated amounts for each year of service. The Company’s funding policy for hourly plans is to make at least the minimum annual contributions required by applicable regulations.

The Company's non-U.S. cover eligible employees located predominately in Germany, Switzerland, Belgium, the U.K. and France. Benefits for these plans are based primarily on each employee's final salary, with annual adjustments for inflation. The obligations in Germany consist of employer funded pension plans and deferred compensation plans. The employer funded pension plans are based upon direct performance-related commitments in terms of defined contribution plans. Each beneficiary receives, depending on individual pay-scale grouping, contractual classification, or income level, different yearly contributions. The contribution is multiplied by an age factor appropriate to the respective pension plan and credited to the individual retirement account of the employee. The retirement accounts may be used up at retirement by either a one-time lump-sum payout or payments of up to ten years. In Switzerland, the post-employment benefit plan is required due to statutory provisions. The employees receive their pension payments as a function of contributions paid, a fixed interest rate and annuity factors. Insured events for these plans are primarily disability, death and reaching of retirement age.

The Company has other defined benefit plans outside the U.S., which have not been mentioned here due to their insignificance.

Supplemental Executive Retirement Benefits. The Company has non-qualified pension plans in the U.S. to provide supplemental retirement benefits to certain officers, which were also frozen since December 2013. Benefits are payable at retirement based upon a percentage of the participant’s compensation, as defined.

Other Benefits. In addition to providing retirement benefits, the Company provides post-retirement healthcare and life insurance benefits (referred to as other benefits) for certain retired employees. Retired eligible employees in the U.S. may be entitled to

these benefits based upon years of service with the Company, age at retirement and collective bargaining agreements. There are no plan assets and the Company funds the benefits as the claims are paid. The post-retirement benefit obligation was determined by application of the terms of medical and life insurance plans together with relevant actuarial assumptions and healthcare cost trend rates.

The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans and other benefits for the three months ended June 30:


	Pension Benefits
	U.S.Plans						Non-U.S. Plans						Other Benefits
	2020		2019		2020		2019		2020		2019
Components of net periodic benefit cost
Service cost	$	0.9	$	0.9	$	2.6	$	2.4	$	—	$	—
Interest cost	4.7		5.5		1.0		1.7		0.1		0.4
Expected return on plan assets	(6.4)		(6.2)		(3.2)		(3.2)		—		—
Recognized net actuarial loss	2.0		1.3		(0.2)		(0.4)		—		0.2

Net periodic pension benefit cost	$	1.2	$	1.5	$	0.2	$	0.5	$	0.1	$	0.6

The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans and other benefits for the six months ended June 30:


	Pension Benefits
	U.S.Plans						Non-U.S. Plans						Other Benefits
	2020		2019		2020		2019		2020		2019
Components of net periodic benefit cost
Service cost	$	1.9	$	1.8	$	5.1	$	4.9	$	—	$	—
Interest cost	9.4		11.0		2.0		3.3		0.1		0.5
Expected return on plan assets	(12.7)		(12.4)		(6.5)		(6.3)		—		—
Recognized net actuarial loss	3.9		2.6		(0.3)		(0.8)		(0.1)		0.2
Other	—		—		0.1		—		—		—
Net periodic pension benefit cost	$	2.5	$	3.0	$	0.4	$	1.1	$	—	$	0.7

Contributions

There have been no significant changes to the expected 2020 plan year contribution amounts previously disclosed. For the six months ended June 30, 2020 and June 30, 2019, contributions of $17.9 and $20.5, respectively, were made to the qualified and non-qualified pension plans. The Company received a reimbursement of $13.5 for certain benefits paid from its non-U.S. plan trustee in June 2020. In May 2019, the Company received a reimbursement of $12.9 for certain benefits paid from its non-U.S. plan trustee.

The Company expects that pension benefit costs and financial position will fluctuate year-over-year, along with contribution requirements, due to the performance of plan assets and changes in interest rates, among others. As a result, the Company may not be able to reasonably estimate impact due to the uncertainty and extent of the COVID-19 pandemic and related macroeconomic implications along with actions taken by government authorities.