Pension And Other Postretirement Benefits

6 Months Ended

Jul. 01, 2012

Pension And Other Postretirement Benefits

Note 12—Pension and other postretirement benefits

The Company has a number of defined benefit pension and postretirement plans covering eligible U.S. and non-U.S. employees. The defined benefit pension plans are noncontributory. The benefits under these plans are based primarily on years of service and employees’ pay near retirement. The Company’s funding policy for U.S. plans is to contribute annually, at a minimum, amounts required by applicable laws and regulations. Obligations under non-U.S. plans are systematically provided for by depositing funds with trustees or by book reserves. In 2008 the Company amended the Teleflex Retirement Income Plan (“TRIP”) to cease future benefit accruals for all employees, other than those subject to a collective bargaining agreement and amended its Supplemental Executive Retirement Plans (“SERP”) for all executives to cease future benefit accruals for both employees and executives as of December 31, 2008. The Company replaced the non-qualified defined benefits provided under the SERP with a non-qualified defined contribution arrangement under the Company’s Deferred Compensation Plan, effective January 1, 2009. In addition, in 2008, the Company’s postretirement benefit plans were amended to eliminate future benefits for employees, other than those subject to a collective bargaining agreement, who had not attained age 50 and whose age plus service was less than 65.

The Company and certain of its subsidiaries provide medical, dental and life insurance benefits to pensioners and survivors. The associated plans are unfunded and approved claims are paid from Company funds.

Net benefit cost of pension and postretirement benefit plans consisted of the following:

	Pension Three Months  Ended						Postretirement Benefits Three Months Ended				Pension Six Months Ended						Postretirement Benefits Six Months Ended
	July 1, 2012			June 26, 2011			July 1, 2012		June 26, 2011		July 1, 2012			June 26, 2011			July 1, 2012		June 26, 2011
	(Dollars in thousands)
Service cost	$	711		$	613		$	158	$	198	$	1,389		$	1,192		$	316	$	396
Interest cost		4,125			4,342			473		549		8,251			8,586			946		1,100
Expected return on Plan assets		(5,042	)		(4,943	)		—		—		(10,085	)		(9,843	)		—		—
Net amortization and deferral		1,604			976			122		69		3,210			2,031			245		138
Settlement charge		(124	)		—			—		—		(124	)		—			—		—
Curtailment charge		111			—			—		—		111			—			—		—
Net benefit cost	$	1,385		$	988		$	753	$	816	$	2,752		$	1,966		$	1,507	$	1,634

The increase in net amortization expense for the pension and postretirement benefit plans reflects the loss due to actuarial changes in benefit obligation recorded at December 31, 2011.

The Company is required to make minimum pension contributions totaling $19.5 million during 2012, of which $3.4 million and $11.3 million were made during the three and six months ended July 1, 2012, respectively.