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Postretirement Benefits
9 Months Ended
Sep. 30, 2024
Retirement Benefits [Abstract]  
Postretirement Benefits Postretirement Benefits
 
Pension plans
Our pension plans consist of a noncontributory defined benefit pension plan covering substantially all employees and an unfunded supplemental employee retirement plan ("SERP") for certain members of executive and senior management. The pension plan provides benefits to covered individuals satisfying certain age and service requirements. The defined benefit pension plan and SERP each provide benefits through a final average earnings formula.

Although we are the sponsor of these postretirement plans and record the funded status of these plans, there are reimbursements between us and the Exchange and its subsidiaries for their allocated share of pension income or cost. These reimbursements represent pension benefits for employees performing administrative services and an allocated share of plan (income) cost for employees in departments that support the administrative functions. For the nine months ended September 30, 2024, we reimbursed the Exchange and its subsidiaries for approximately 61% of the annual defined benefit pension income, and the Exchange and its subsidiaries reimbursed us for approximately 34% of the annual SERP cost. For our funded pension plan, amounts are settled in cash for the portion of pension (income) cost allocated to the Exchange and its subsidiaries. For our unfunded SERP, we pay the obligations when due and amounts are settled in cash between entities when there is a payout.

Our defined benefit pension plan funding policy is generally to contribute an amount equal to the greater of the target normal cost for the plan year, or the amount necessary to fund the plan to 100%. Accordingly, we made a $33 million contribution in January 2024. The funded pension plan net benefit asset is presented separately from the unfunded plan as a non-current asset on our Statements of Financial Position.

Pension plan cost (income) includes the following components:
Three months ended September 30,Nine months ended September 30,
(in thousands)2024202320242023
Service cost for benefits earned$8,628 $7,190 $25,920 $21,572 
Interest cost on benefit obligation13,195 12,548 39,503 37,644 
Expected return on plan assets(20,199)(17,217)(60,595)(51,652)
Prior service cost amortization413 362 1,199 1,085 
Net actuarial gain amortization(1,695)(3,833)(5,180)(11,498)
Settlement gain (1)
(59)— (1,338)— 
Pension plan cost (income) (2)
$283 $(950)$(491)$(2,849)
(1)Settlement accounting was required due to lump sum payments made under the SERP to four former officers in 2024.
(2)Pension plan cost (income) represents total plan cost (income) before reimbursements between Indemnity and the Exchange and its subsidiaries. The components of pension plan cost (income) other than the service cost components are included in the line item "Other income" in the Statements of Operations, net of reimbursements between Indemnity and the Exchange and its subsidiaries.