Note 9. Employee Benefits

The Company provides pension benefits to its employees under a noncontributory, defined benefit plan which is funded on a current basis in compliance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and recognizes costs over the estimated employee service period.

The Company also has a Supplemental Executive Insurance/Retirement Plan (the “Supplemental Plan”) which is limited to certain officers and employees of the Company. The Supplemental Plan is accrued on a current basis and recognizes costs over the estimated employee service period.

Executive officers of the Company and its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary and participants are required to contribute to its cost. Life insurance policies, which are owned by the Company, are purchased covering the lives of each participant.

Components of Net Periodic Benefit Cost for the Three Months Ended June 30,


	Pension Benefits						Supplemental Insurance/ Retirement Plan
	2013			2012			2013		2012
				(In thousands)
Service cost	$	299		$	274		$	381	$	355
Interest		314			323			267		231
Expected return on plan assets		(470	)		(410	)		—		—
Recognized prior service cost (benefit)		(26	)		(26	)		29		29
Recognized net actuarial losses		158			184			129		84

Net periodic benefit cost	$	275		$	345		$	806	$	699

Components of Net Periodic Benefit Cost for the Six Months Ended June 30,


	Pension Benefits						Supplemental Insurance/ Retirement Plan
	2013			2012			2013		2012
				(In thousands)
Service cost	$	598		$	548		$	763	$	711
Interest		628			647			534		462
Expected return on plan assets		(940	)		(820	)		—		—
Recognized prior service cost (benefit)		(52	)		(52	)		58		58
Recognized net actuarial losses		316			368			258		168

Net periodic benefit cost	$	550		$	691		$	1,613	$	1,399

Contributions

The Company currently intends to contribute $1,800,000 to the Pension Plan in 2013. As of June 30, 2013, $900,000 of the contribution had been made. The Company expects to contribute an additional $900,000 by the end of the year. Also, an additional $2,819,000 was contributed to the Pension Plan during the first quarter of 2013 to reduce variable annual premiums payable to Pension Benefit Guarantee Corporation.