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PENSION PLANS AND RETIREMENT BENEFITS
 6 Months Ended
Jun. 30, 2012
Compensation and Retirement Disclosure [Abstract]  
PENSION PLANS AND RETIREMENT BENEFITS
PENSION PLANS AND RETIREMENT BENEFITS

Most of our employees participate in defined contribution pension plans.  We provide a contribution to an individual retirement contribution account maintained with the Contributing Employee Ownership Plan (CEOP) primarily equal to 5% of the employee’s eligible compensation if such employee is less than age 45, and 7.5% of the employee’s eligible compensation if such employee is age 45 or older.  The defined contribution pension plans expense was $4.5 million and $3.8 million for the three months ended June 30, 2012 and 2011, respectively, and $8.1 million and $7.4 million for the six months ended June 30, 2012 and 2011, respectively.

A portion of our bargaining hourly employees continue to participate in our domestic defined benefit pension plans under a flat-benefit formula.  Our funding policy for the defined benefit pension plans is consistent with the requirements of federal laws and regulations.  Our foreign subsidiaries maintain pension and other benefit plans, which are consistent with statutory practices.  Our defined benefit pension plan provides that if, within three years following a change of control of Olin, any corporate action is taken or filing made in contemplation of, among other things, a plan termination or merger or other transfer of assets or liabilities of the plan, and such termination, merger, or transfer thereafter takes place, plan benefits would automatically be increased for affected participants (and retired participants) to absorb any plan surplus (subject to applicable collective bargaining requirements).

We also provide certain postretirement health care (medical) and life insurance benefits for eligible active and retired domestic employees.  The health care plans are contributory with participants’ contributions adjusted annually based on medical rates of inflation and plan experience.
 
Pension Benefits
 
Other Postretirement
Benefits
 
Three Months Ended
June 30,
 
Three Months Ended
June 30,
 
2012
 
2011
 
2012
 
2011
Components of Net Periodic Benefit (Income) Cost
($ in millions)
Service cost
$
1.6

 
$
1.6

 
$
0.3

 
$
0.3

Interest cost
22.6

 
23.5

 
0.8

 
1.0

Expected return on plans’ assets
(35.6
)
 
(34.9
)
 
—

 
—

Amortization of prior service cost
0.1

 
0.1

 
(0.1
)
 
—

Recognized actuarial loss
5.9

 
3.6

 
1.0

 
0.7

Curtailment
—

 
1.1

 
—

 
—

Net periodic benefit (income) cost
$
(5.4
)
 
$
(5.0
)

$
2.0


$
2.0

 
Pension Benefits
 
Other Postretirement
Benefits
 
Six Months Ended
June 30,
 
Six Months Ended
June 30,
 
2012
 
2011
 
2012
 
2011
Components of Net Periodic Benefit (Income) Cost
($ in millions)
Service cost
$
3.1

 
$
3.2

 
$
0.7

 
$
0.7

Interest cost
46.1

 
47.2

 
1.7

 
1.9

Expected return on plans’ assets
(69.8
)
 
(69.8
)
 
—

 
—

Amortization of prior service cost
0.1

 
0.2

 
(0.1
)
 
(0.1
)
Recognized actuarial loss
10.2

 
7.5

 
1.9

 
1.4

Curtailment
—

 
1.1

 
—

 
—

Net periodic benefit (income) cost
$
(10.3
)
 
$
(10.6
)

$
4.2


$
3.9



We made cash contributions to our Canadian qualified defined benefit pension plan of $0.4 million and $0.5 million for the six months ended June 30, 2012 and 2011, respectively. In June 2011, we recorded a curtailment charge of $1.1 million related to the ratification of a new five and one half year Winchester, East Alton, IL union labor agreement. This curtailment charge was included in restructuring charges for the three and six months ended June 30, 2011.