Pension Benefit and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2012

Pension Benefit and Other Postretirement Benefit Plans

Note 9 – 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)

(Dollars in thousands)
	Pension Benefits												Retirement Health and Life Insurance Benefits
	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
Change in benefit obligation:	June 30,			June 30,			June 30,			June 30,			June 30,			June 30,			June 30,			June 30,
	2012			2011			2012			2011			2012			2011			2012			2011
Service cost	$	1,108		$	1,060		$	2,297		$	2,120		$	149		$	176		$	331		$	352
Interest cost		2,124			2,116			4,242			4,232			92			97			180			194
Expected return on plan assets		(2,495	)		(2,591	)		(4,903	)		(5,182	)		-			-			-			-
Amortization of prior service cost		116			150			232			300			(113	)		(157	)		(226	)		(314	)
Amortization of net loss		1,442			553			2,791			1,106			66			81			181			162
Special termination benefit		-			-			-			-			-			-			2,300			-
Adjustment to termination benefit		-			-			-			-			(707	)		-			(707	)		-
Net periodic benefit cost	$	2,295		$	1,288		$	4,659		$	2,576		$	(513	)	$	197		$	2,059		$	394

As a result of the early retirement program that we offered in the first quarter of 2012, we incurred $1.6 million in charges related to a special termination benefit associated with our retirement health and life insurance benefits program, as we extended eligibility in the benefits to certain individuals who participated 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 $6.0 million in accordance with the provisions of his retirement contract as part of his Pension Restoration Plan.  We expect that this payment will result in a settlement charge of approximately $2.1 million, which will be recognized in the third quarter of 2012.

Employer Contributions

We made $6.0 million in voluntary contributions to our qualified defined benefit pension plans during the second quarter of 2012 and $10.0 million in the first quarter of 2012.  For the first six months of 2011, we did not make any voluntary contributions.

We made no payments under our non-qualified defined benefit pension plan in the first half of 2012 and only de minimis payments were made in the first half of 2011.