Note H - Components of Net Periodic Benefit Cost

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Retirement Benefits [Text Block]

Note H — Components of Net Periodic Benefit Cost

Prior to January 1, 1999, we provided a defined benefit pension plan for which most of our employees were eligible to participate (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 (the “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 the 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. We elected to freeze benefits under the Restoration Pension Plan as of April 1, 2014.

At the end of 2020, the Board of Directors of the Company approved the division of the Qualified Pension Plan into two distinct plans, “Qualified Pension Plan I” and “Qualified Pension Plan II.”  The assets and liabilities of the Qualified Pension Plan that were attributable to certain participants in Qualified Pension Plan II were spun off and transferred into Qualified Pension Plan II effective as of the end of December 31, 2020, in accordance with Internal Revenue Code section 414 (I) and ERISA Section 4044.

Net pension cost for both plans included the following components:

	Three Months Ended September 30,						Nine Months Ended September 30,
In thousands	2021			2020			2021			2020
Interest cost	$	1,168		$	1,473		$	3,504		$	4,419
Expected return on plan assets		(1,688	)		(1,384	)		(5,064	)		(4,152	)
Recognized actuarial loss		860			812			2,580			2,436
Net periodic benefit cost	$	340		$	901		$	1,020		$	2,703

Based on current estimates, we are required to make a $0.3 million contribution to the combined qualified Pension Plan in 2021.  We made a $0.3 million contribution in the nine months ended September 30, 2021.

We are not required to make, and do not intend to make, any contributions to our Restoration Pension Plan other than to the extent needed to cover benefit payments. We made benefit payments under this supplemental plan of $1.3 million and $1.3 million in the nine months ended September 30, 2021 and 2020, respectively.