Retirement Plans

3 Months Ended

Mar. 31, 2012

Retirement Plans [Abstract]

RETIREMENT PLANS

11. RETIREMENT PLANS

Retirement Plans

The Company has five plans which cover its hourly and salaried employees in the United States; three defined benefit plans (one active / two frozen) and two defined contribution plans.  Employees are eligible to participate in the appropriate plan based on employment classification.  The Company's funding to the defined benefit and defined contribution plans are governed by the Employee Retirement Income Security Act of 1974 (ERISA), applicable plan policy and investment guidelines.  The Company policy is to contribute at least the minimum funding standards of ERISA.

The Company's subsidiary, Portec Rail Products, Inc. (Portec Rail), maintains two defined contribution plans for its employees in Canada, as well as a post-retirement benefit plan.  In the United Kingdom, Portec Rail maintains both a defined contribution plan and a defined benefit plan.  These plans are discussed in further detail below.

United States Defined Benefit Plans

Net periodic pension costs for the United States defined benefit pension plans for the three month periods ended March 31, 2012 and 2011 are as follows:

	Three Months Ended
	March 31,
	2012			2011
	In thousands
Service cost	$	8		$	8
Interest cost		187			200
Expected return on plan assets		(203	)		(191	)
Recognized net actuarial loss		49			28
Net periodic cost	$	41		$	45

The Company expects to contribute approximately $741,000 to its United States defined benefit plans in 2012.  For the three months ended March 31, 2012, the Company contributed approximately $166,000 to these plans.

United Kingdom Defined Benefit Plans

Net periodic pension costs for the United Kingdom defined benefit pension plan for the three months ended March 31 is as follows:

	Three Months Ended
	March 31,
	2012			2011
	In thousands
Interest cost	$	83		$	66
Expected return on plan assets		(71	)		(72	)
Amortization of transition amount		(12	)		(12	)
Recognized net actuarial loss		54			28
Net periodic cost	$	54		$	10

United Kingdom regulations require trustees to adopt a prudent approach to funding required contributions to defined benefit pension plans. The Company anticipates making contributions of $235,000 to the United Kingdom Portec Rail pension plan during 2012.  For the three months ended March 31, 2012, the Company contributed approximately $56,000 to the United Kingdom Portec Rail plan.

Defined Contribution Plans

The Company has a domestic defined contribution plan that covers all non-union hourly and all salaried employees. This plan permits both pretax and after-tax employee contributions. Participants can contribute, subject to statutory limitations, between 1% and 75% of eligible pre-tax pay and between 1% and 100% of eligible after-tax pay.  The Company's employer match is 100% of the first 1% of deferred eligible compensation and up to 50% of the next 6%, based on years of service, of deferred eligible compensation, for a total maximum potential match of 4%.  The Company may also make discretionary contributions to the plan.

The expense associated with this plan for the three months ended March 31 was $467,000 in 2012 and $540,000 in 2011.

The Company also has a domestic defined contribution plan for union hourly employees with contributions made by both the participants and the Company based on various formulas.  The expense associated with this active plan for the three months ended March 31, 2012 and 2011 was $17,000 and $13,000, respectively.

The Company's Portec Rail subsidiary maintains a defined contribution plan covering all non-union employees at its Montreal, Quebec, Canada location.  Under the terms of this plan, Portec Rail may contribute 4% of each employee's compensation as a non-elective contribution and may also contribute 30% of the first 6% of each employee's compensation contributed to the plan.  Contributions to this plan were $27,000 and $23,000 for the three months ended March 31, 2012 and 2011.

The Company's Portec Rail subsidiary also maintains a defined contribution plan covering substantially all employees of Portec Rail Products (UK) Ltd.  Benefits under this plan are provided under no formal written agreement.  Under the terms of the defined contribution plan, Portec Rail may make non-elective contributions of between 3% and 10% of each employee's compensation.  Contributions to this plan were $27,000 and $29,000 for the three months ended March 31, 2012 and 2011, respectively.

Finally, the Company's Portec Rail subsidiary maintains a defined contribution plan covering substantially all of the employees of Kelsan Technologies Corp., a wholly-owned subsidiary of the Company.  Under the terms of this plan, Portec Rail makes a non-elective contribution of 4% of each employee's compensation and may also contribute 30% of the first 6% of each employee's compensation contributed to the plan. Contributions to this plan were $39,000 and $24,000 for the three months ended March 31, 2012 and 2011, respectively.