Pension and postretirement benefits

6 Months Ended

Jun. 30, 2018

Disclosure Text Block

Pension and postretirement benefits

Note 29 – Pension and postretirement benefits

The Corporation has a non-contributory defined benefit pension plan and supplementary pension benefit restoration plans for regular employees of certain of its subsidiaries. The accrual of benefits under the plans is frozen to all participants.

The components of net periodic pension cost for the periods presented were as follows:

		Pension Plan				Benefit Restoration Plans
		Quarters ended June 30,				Quarters ended June 30,
(In thousands)		2018		2017		2018		2017
Other operating expenses:
Interest cost	$	6,029	$	6,120	$	344	$	352
Expected return on plan assets		(9,551)		(10,186)		(509)		(502)
Amortization of net loss		4,715		5,053		349		411
Total net periodic pension cost (benefit)	$	1,193	$	987	$	184	$	261

		Pension Plans				Benefit Restoration Plans
		Six months ended June 30,				Six months ended June 30,
(In thousands)		2018		2017		2018		2017
Other operating expenses:
Interest cost	$	12,058	$	12,240	$	688	$	705
Expected return on plan assets		(19,101)		(20,372)		(1,018)		(1,005)
Amortization of net loss		9,431		10,107		699		822
Total net periodic pension cost (benefit)	$	2,388	$	1,975	$	369	$	522

During the quarter ended June 30,2018 the Corporation made a contribution to the pension and benefit restoration plans of $59 thousand. The total contributions expected to be paid during the year 2018 for the pension and benefit restoration plans amount to approximately $235thousand.

During the quarters ended June 30,2018 and 2017, there is no service cost recognized as part of the net periodic pension cost since the accrual of benefits for all participants has been frozen. As part of the implementation of ASU 2017-07, the other components of net periodic pension cost were reclassified from “Personnel costs” to “Other operating expenses” in the consolidated statement of operations in the amount of $1.2 million for the quarter ended June 30,2017 and $2.5 million for the six months ended June 30,2017.

The Corporation also provides certain postretirement health care benefits for retired employees of certain subsidiaries. The table that follows presents the components of net periodic postretirement benefit cost.

		Postretirement Benefit Plan
		Quarters ended June 30,				Six months ended June 30,
(In thousands)		2018		2017		2018		2017
Personnel Costs:
Service cost	$	257	$	256	$	514	$	513
Other operating expenses:
Interest cost		1,390		1,426		2,780		2,851
Amortization of prior service cost		(868)		(950)		(1,735)		(1,900)
Amortization of net loss		321		142		641		284
Total postretirement cost	$	1,100	$	874	$	2,200	$	1,748

Contributions made to the postretirement benefit plan for the quarter ended June 30,2018 amounted to approximately $1.3 million. The total contributions expected to be paid during the year 2018 for the postretirement benefit plan amount to approximately $6.3million.

As part of the implementation of ASU 2017-07, the other components of net periodic postretirement benefit cost other than the service cost components were reclassified from “Personnel costs” to “Other operating expenses” in the consolidated statement of operations in the amount of $0.6 million for the quarter ended June 30,2017 and $1.2 million for the six months ended June 30,2017.