Components of Net Periodic Benefit Cost

3 Months Ended

Mar. 31, 2015

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

Note G — Components of Net Periodic Benefit Cost

Prior to January 1, 1999, we maintained a defined benefit pension plan for which most of our employees were eligible (the Qualified Pension Plan).  In conjunction with significant enhancements to our 401(k) plan, we elected to freeze benefits under the Qualified Pension Plan as of December 31, 1998.

In 1994, we adopted a non-qualified, unfunded, supplemental pension plan (Restoration 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 were it not for limitations imposed by income tax regulation.  The benefits under the Restoration Pension Plan were intended to provide benefits equivalent to our Qualified Pension Plan as if such plan had not been frozen.

Effective April 1, 2014, we froze benefits under our Restoration Pension Plan, which was accounted for as a curtailment of the plan in the second quarter of 2014.  The plan freeze resulted in a reduction of plan expense of $0.4 million during 2014 and a reduction in the projected benefit obligation of $1.1 million.  This curtailment gain offsets the unrecognized loss held by the Restoration Pension Plan in 2014.  The remaining portion of the unrecognized loss will be amortized over the average life expectancy of all participants.

Net pension cost for both plans included the following components: 

	Three Months Ended March 31,
In thousands	2015			2014
Service cost	$	—		$	100
Interest cost	1,931			1,939
Expected return on plan assets	(2,159		)	(2,109		)
Recognized actuarial loss	1,557			921
Net periodic benefit cost	$	1,329		$	851

We made contributions of $1.0 million to our Qualified Pension Plan in the three months ended March 31, 2015. We plan to make additional contributions of $3.0 million to this pension plan during the remainder of 2015. 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 Restoration Pension Plan in 2015 other than to the extent needed to cover benefit payments.  We made benefit payments under this supplemental plan of $0.4 million in the three months ended March 31, 2015.  In the event of a change of control, as defined in the plan document, the Restoration Pension Plan is required to be fully funded.