Pension Benefit and Other Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2012

Pension Benefit and Other Postretirement Benefit Plans

Pension Benefit and Other Postretirement Benefit Plans

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost for the periods indicated are:

(Dollars in thousands)	Pension Benefits												Retirement Health and Life Insurance Benefits
	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
Change in benefit obligation:	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Service cost	$	1,150		$	1,060		$	3,447		$	3,180		$	149		$	171		$	481		$	523
Interest cost	2,094			2,116			6,336			6,348			92			110			272			304
Expected return on plan assets	(2,495		)	(2,591		)	(7,397		)	(7,773		)	—			—			—			—
Amortization of prior service cost	116			150			347			450			(113		)	(157		)	(338		)	(471		)
Amortization of net loss	1,347			553			4,138			1,659			66			130			247			292
Special termination benefit	—			—			—			—			—			—			1,593			—
Settlement charge	2,023			—			2,023			—			—			—			—			—
Net periodic benefit cost	$	4,235		$	1,288		$	8,894		$	3,864		$	194		$	254		$	2,255		$	648

As a result of the early retirement program that we offered in the first quarter of 2012, we incurred $1.6 million in charges, during that period, related to a special termination benefit associated with our retirement health and life insurance benefits program, as we extended eligibility benefits to certain individuals who chose to participate in the early retirement program.

Early in the third quarter of 2012, we made a one-time cash payment to our former President and Chief Executive Officer of approximately $6.3 million in accordance with the provisions of his retirement contract as part of his Pension Restoration Plan.  This payment resulted in a settlement charge of approximately $2.0 million, which was recognized in the third quarter of 2012.

Employer Contributions

In the third quarter of 2012 and 2011, we did not make any voluntary contributions to our qualified defined benefit pension plan. In the first nine months of 2012, we made voluntary contributions of $16.0 million to our qualified defined benefit pension plan. We did not make any voluntary contributions to this plan during the first nine months of 2011.

The Company made $6.3 million in contributions to our non-qualified defined benefit pension plan in the third quarter of 2012 and only de minimis payments were made in the first nine months of 2011.