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Components of Net Periodic Pension Benefit Cost
9 Months Ended
Sep. 30, 2013
Components of Net Periodic Pension Benefit Cost  
Components of Net Periodic Pension Benefit Cost

Note G — Components of Net Periodic Pension Benefit Cost

 

Prior to January 1, 1999, we maintained a defined benefit pension plan for which most of our employees were eligible.  We elected to freeze benefits under this defined benefit pension plan as of December 31, 1998.

 

In 1994, we adopted a non-qualified, unfunded, supplemental pension plan covering certain employees, which provides for incremental pension payments so that total pension payments equal those amounts that would have been payable from our principal pension plan if it were not for limitations imposed by income tax regulations.  The benefits under this supplemental pension plan continue to accrue as if the principal pension plan had not been frozen.

 

Net pension cost for both plans included the following components:

 

 

 

Three Months Ended September 30,

 

In thousands

 

2013

 

2012

 

Service cost

 

$

86

 

$

117

 

Interest cost

 

1,809

 

1,960

 

Expected return on plan assets

 

(1,846

)

(1,683

)

Amortization of prior service cost

 

0

 

1

 

Recognized actuarial loss

 

1,672

 

1,500

 

Net periodic benefit cost

 

$

1,721

 

$

1,895

 

 

 

 

Nine Months Ended September 30,

 

In thousands

 

2013

 

2012

 

Service cost

 

$

257

 

$

350

 

Interest cost

 

5,428

 

5,881

 

Expected return on plan assets

 

(5,537

)

(5,050

)

Amortization of prior service cost

 

0

 

3

 

Recognized actuarial loss

 

5,015

 

4,500

 

Net periodic benefit cost

 

$

5,163

 

$

5,684

 

 

We made contributions to our funded, frozen pension plan of $4.6 million in the first nine months of 2013.  We do not plan to make any additional contributions to this pension plan during the fourth quarter of 2013.  These contributions to our funded, frozen pension plan are being made in order to obtain the Pension Protection Act of 2006 full funding limit exemption.

 

We are not required to make and do not intend to make any contributions to our unfunded, supplemental pension plan in 2013 other than to the extent needed to cover benefit payments.  We expect benefit payments under this supplemental pension plan to total $1.5 million in 2013.