RETIREMENT PLANS

9 Months Ended

Jun. 30, 2011

RETIREMENT PLANS

RETIREMENT PLANS

7. RETIREMENT PLANS

Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees.  Additionally, Barnwell sponsors a Supplemental Employee Retirement Plan (“SERP”), a noncontributory supplemental retirement benefit plan which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the defined benefit pension plan, and a postretirement medical insurance benefits plan (“Postretirement Medical”) covering eligible U.S. employees.

The following table details the components of net periodic benefit cost for Barnwell’s retirement plans for the three months ended June 30, 2011 and 2010:

	Pension Plan							SERP						Postretirement Medical
	2011				2010			2011			2010			2011			2010
Service cost		$	74,000		$	76,000			$	12,000		$	12,000		$	4,000		$	4,000
Interest cost		78,000			77,000				14,000			14,000			17,000			15,000
Expected return on plan assets		(74,000		)	(71,000		)		-			-			-			-
Amortization of prior service cost		1,000			1,000				1,000			1,000			34,000			34,000
Amortization of net actuarial loss		21,000			27,000				4,000			4,000			2,000			-
Net periodic benefit cost		$	100,000		$	110,000			$	31,000		$	31,000		$	57,000		$	53,000

The following table details the components of net periodic benefit cost for Barnwell’s retirement plans for the nine months ended June 30, 2011 and 2010:

	Pension Plan								SERP						Postretirement Medical
	2011				2010				2011			2010			2011			2010
Service cost		$	223,000			$	223,000			$	34,000		$	33,000		$	12,000		$	11,000
Interest cost		233,000				241,000				43,000			41,000			51,000			46,000
Expected return on plan assets		(222,000		)		(197,000		)		-			-			-			-
Amortization of prior service cost		4,000				4,000				3,000			3,000			102,000			102,000
Amortization of net actuarial loss		64,000				82,000				11,000			10,000			6,000			-
Net periodic benefit cost		$	302,000			$	353,000			$	91,000		$	87,000		$	171,000		$	159,000

Barnwell contributed $250,000 to the Pension Plan during the nine months ended June 30, 2011 and does not expect to make any further contributions during the remainder of fiscal 2011.  The SERP and Postretirement Medical plans are unfunded and Barnwell will fund benefits when payments are made.  Barnwell does not expect to make any benefit payments under the Postretirement Medical plan during fiscal 2011 and expected payments under the SERP for fiscal 2011 are not material.  Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods.