Employee Benefit Plans

6 Months Ended

Jun. 30, 2013

EmployeeBenefitPlansAbstract

Employee Benefit Plans

Note 8 – Employee Benefit Plans

Pension Benefits

The Company’s Pension Plan covers substantially all employees hired prior to March 31, 2007. Employees hired after March 31, 2007 are not eligible to participate in this plan, but do participate in a defined contribution plan that provides an annual contribution into a self-directed retirement account at the discretion of the Company, based upon a percentage of the participants’ compensation. In order to be eligible for contribution, the participating employee must be employed by the Company on December 31st of the year to which the award relates. For the three months ended June 30, 2013 and 2012, the Company did not make any Pension Plan cash contributions. For the six months ended June 30, 2013 and 2012, the Company made Pension Plan cash contributions of $0.6 and $0.8 million, respectively. The Company expects to make additional Pension Plan cash contributions of approximately $2.7 million over the remainder of the current year. The Company also maintains an unfunded supplemental retirement benefit plan for certain active and retired Company officers and currently pays $0.3 million in annual benefits to the retired participants.

Other Postretirement Benefits

The Company’s postretirement plan other than pensions (Other Benefits Plan) covers substantially all of its retired employees. Employees hired after March 31, 2007 are not eligible to participate in this plan. Coverage includes healthcare and life insurance. Effective January 1, 2013, the Company has amended a provision of the Other Benefits Plan increasing the level of retiree contributions required towards the insurance premiums. Eligible employees retiring in 2013 and beyond will contribute a higher percentage towards their healthcare premiums.  The amendment resulted in a $10.2 million decrease in the Company’s Employee Benefit Plans’ Liability, and related Regulatory Asset, as of January 1, 2013. For the three months ended June 30, 2013 and 2012, the Company did not make any Other Benefits Plan cash contributions. For the six months ended June 30, 2013 and 2012, the Company made Other Benefits Plan cash contributions of $0.7 million and $0.8 million, respectively. The Company expects to make additional Other Benefits Plan cash contributions of approximately $1.5 million over the remainder of the current year.

The following tables set forth information relating to the Company’s periodic costs for its employee retirement benefit plans:

	(In Thousands)
	Pension Benefits						Other Benefits
	Three Months Ended June 30,
	2013			2012			2013			2012
Service Cost	$	575		$	549		$	335		$	446
Interest Cost		617			604			398			467
Expected Return on Assets		(723	)		(614	)		(405	)		(315	)
Amortization of Unrecognized Losses		408			388			517			442
Amortization of Unrecognized Prior Service Cost		3			3			(432	)		—
Amortization of Transition Obligation		—			—			—			34
Net Periodic Benefit Cost	$	880		$	930		$	413		$	1,074

	(In Thousands)
	Pension Benefits						Other Benefits
	Six Months Ended June 30,
	2013			2012			2013			2012
Service Cost	$	1,150		$	1,099		$	669		$	892
Interest Cost		1,234			1,208			797			934
Expected Return on Assets		(1,447	)		(1,229	)		(811	)		(629	)
Amortization of Unrecognized Losses		816			775			1,033			883
Amortization of Unrecognized Prior Service Cost		5			5			(864	)		—
Amortization of Transition Obligation		—			—			—			68
Net Periodic Benefit Cost	$	1,758		$	1,858		$	824		$	2,148