RETIREMENT PLANS

9 Months Ended

Sep. 30, 2020

RETIREMENT PLANS

RETIREMENT PLANS

9. RETIREMENT PLANS

The Company has noncontributory defined benefit pension and noncontributory defined medical, dental, vision, and life benefit plans for eligible employees in its International Telecom segment who meet certain eligibility criteria.

The Company recorded the net periodic benefit cost identified below (in thousands):

	Three months ended
	September 30, 2020				September 30, 2019
	Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits
Operating expense
Service cost	$	(164)	$	32	$	447	$	37
Non-operating expense
Interest cost		603		45		841		40
Expected return on plan assets		(414)		—		(1,263)		—
Actuarial (gain)/ loss		(7)		(15)		7		(17)
Net periodic pension expense	$	18	$	62	$	32	$	60

	Nine months ended
	September 30, 2020				September 30, 2019
	Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits
Operating expense
Service cost	$	682	$	96	$	1,342	$	111
Non-operating expense
Interest cost		2,361		135		2,524		120
Expected return on plan assets		(2,730)		—		(3,790)		—
Actuarial (gain)/ loss		(21)		(45)		22		(51)
Net periodic pension expense	$	292	$	186	$	98	$	180

In the first quarter of 2020, the Company began the process of winding up one of its pension plans. At December 31, 2019 this plan had assets of $15.1 million and a projected benefit obligation of $15.6 million.

The Company was not required to make contributions to its pension plans during the nine months ended September 30, 2020 and 2019. However, the Company periodically evaluates whether to make discretionary contributions. During the nine months ended September 30, 2020 and 2019, the Company contributed $0.7 million and $0.3 million, respectively, to its pension plans. The Company funds its postretirement benefit plans as claims are made.