RETIREMENT PLANS

9 Months Ended

Jun. 30, 2012

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 tables detail the components of net periodic benefit cost for Barnwell’s retirement plans:

	Pension Plan						SERP				Postretirement Medical
	Three months ended June 30,
	2012			2011			2012		2011		2012			2011
Service cost	$	76,000		$	74,000		$	12,000	$	12,000	$	3,000		$	4,000
Interest cost	81,000			78,000			15,000		14,000		12,000			17,000
Expected return on plan assets	(82,000		)	(74,000		)	-		-		-			-
Amortization of prior service cost	1,000			1,000			-		1,000		34,000			34,000
Amortization of net actuarial loss (gain)	28,000			21,000			4,000		4,000		(2,000		)	2,000
Net periodic benefit cost	$	104,000		$	100,000		$	31,000	$	31,000	$	47,000		$	57,000

	Pension Plan						SERP				Postretirement Medical
	Nine months ended June 30,
	2012			2011			2012		2011		2012			2011
Service cost	$	227,000		$	223,000		$	37,000	$	34,000	$	9,000		$	12,000
Interest cost	242,000			233,000			46,000		43,000		37,000			51,000
Expected return on plan assets	(246,000		)	(222,000		)	-		-		-			-
Amortization of prior service cost	4,000			4,000			-		3,000		102,000			102,000
Amortization of net actuarial loss (gain)	84,000			64,000			12,000		11,000		(8,000		)	6,000
Net periodic benefit cost	$	311,000		$	302,000		$	95,000	$	91,000	$	140,000		$	171,000

Barnwell contributed $670,000 to the Pension Plan during the nine months ended June 30, 2012 and does not expect to make any further contributions during the remainder of fiscal 2012.  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 2012 and expected payments under the SERP for fiscal 2012 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.