RETIREMENT PLANS

6 Months Ended

Mar. 31, 2013

RETIREMENT PLANS

RETIREMENT PLANS

6. 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 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 March 31,
	2013				2012				2013				2012			2013			2012
Service cost		$	68,000			$	76,000			$	13,000			$	12,000		$	3,000		$	3,000
Interest cost		74,000				81,000				15,000				15,000			13,000			12,000
Expected return on plan assets		(97,000		)		(82,000		)		-				-			-			-
Amortization of prior service cost (credit)		2,000				2,000				(2,000		)		-			34,000			34,000
Amortization of net actuarial loss (gain)		26,000				27,000				5,000				4,000			-			(2,000		)
Net periodic benefit cost		$	73,000			$	104,000			$	31,000			$	31,000		$	50,000		$	47,000
	Pension Plan								SERP							Postretirement Medical
	Six months ended March 31,
	2013				2012				2013				2012			2013			2012
Service cost		$	136,000			$	151,000			$	26,000			$	25,000		$	7,000		$	6,000
Interest cost		149,000				162,000				29,000				30,000			25,000			24,000
Expected return on plan assets		(194,000		)		(164,000		)		-				-			-			-
Amortization of prior service cost (credit)		3,000				3,000				(3,000		)		-			68,000			68,000
Amortization of net actuarial loss (gain)		52,000				56,000				10,000				8,000			-			(5,000		)
Net periodic benefit cost		$	146,000			$	208,000			$	62,000			$	63,000		$	100,000		$	93,000

Barnwell contributed $250,000 to the Pension Plan during the six months ended March 31, 2013 and does not expect to make any further contributions during the remainder of fiscal 2013. 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 2013 and expected payments under the SERP for fiscal 2013 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.