9.	Pension and Employee Benefit Plans

We sponsor a non-contributory defined benefit pension plan for certain union employees. The plan is funded in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974.

We also sponsor a postretirement health care plan for office employees retiring before January 1, 1990. The plan allows retirees who have attained the age of 65 to elect the type of coverage desired.

Retirement and health care plan expense is based on valuations performed by plan actuaries as of the beginning of each fiscal year. The components of the expense consisted of the following:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(dollars in thousands)	2013			2012			2013			2012
Pension plan:
Service cost	$	17		$	15		$	34		$	30
Interest cost		78			82			156			164
Expected return on plan assets		(102	)		(94	)		(204	)		(188	)
Amortization of net actuarial loss		92			83			184			166

Net periodic benefit cost	$	85		$	86		$	170		$	172


Health care plan:
Interest cost	$	1		$	1		$	2		$	2
Amortization of gain		(4	)		(2	)		(8	)		(4	)

Net periodic benefit cost	$	(3	)	$	(1	)	$	(6	)	$	(2	)

For the six months ended June 30, 2013, we made contributions to our defined benefit plans totaling $74. We anticipate contributing $133 to fund the pension plan and $8 for the retiree health care plan during the remainder of fiscal of 2013.