Pension Plan and Postretirement Benefits Other Than Pension

9 Months Ended

Sep. 30, 2011

Pension Plan and Postretirement Benefits Other Than Pension

Pension Plan and Postretirement Benefits Other Than Pension

8.Pension Plan and Postretirement Benefits Other Than Pension

We provide a non-contributory retirement plan that covers substantially all employees and certain vested employees of our former parent company (the “Pension Plan”).  Benefits payable under the Pension Plan are based on employees’ years of service and compensation during the final ten years of employment.  We also sponsor an unfunded defined benefit postretirement medical plan that covers substantially all employees, including Waddell & Reed and Legend advisors.  The medical plan is contributory with retiree contributions adjusted annually.  The medical plan does not provide for post age 65 benefits with the exception of a small group of employees that were grandfathered when such plan was established.

The components of net periodic pension and other postretirement costs related to these plans are as follows:

	Pension Benefits					Other Postretirement Benefits		Pension Benefits				Other Postretirement Benefits
	Three months ended September 30,					Three months ended September 30,		Nine months ended September 30,				Nine months ended September 30,
	2011			2010		2011	2010	2011		2010		2011	2010
	(in thousands)							(in thousands)
Components of net periodic benefit cost:
Service cost	$	1,775		1,535		139	111	5,326		4,605		418	332
Interest cost	1,799			1,649		100	91	5,397		4,947		301	273
Expected return on plan assets	(2,191		)	(1,875	)	—	—	(6,573	)	(5,624	)	—	—
Actuarial loss amortization	451			404		—	—	1,353		1,212		—	—
Prior service cost amortization	139			139		14	11	417		417		42	34
Transition obligation amortization	1			1		—	—	3		3		—	—
Total	$	1,974		1,853		253	213	5,923		5,560		761	639

During the first quarter of 2011, we made a $10.0 million contribution to the Pension Plan.  We do not expect to make additional contributions to the Pension Plan for the remainder of 2011.