Pension Plan and Postretirement Benefits Other Than Pension

9 Months Ended

Sep. 30, 2012

Pension Plan and Postretirement Benefits Other Than Pension

Pension Plan and Postretirement Benefits Other Than Pension

9.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 10 years of employment.  We also sponsor an unfunded defined benefit postretirement medical plan that covers substantially all employees, as well as Waddell & Reed and Legend advisors.  The medical plan is contributory with participant 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,
	2012			2011		2012	2011	2012		2011		2012	2011
	(in thousands)							(in thousands)
Components of net periodic benefit cost:
Service cost	$	2,343		1,775		173	139	7,030		5,326		519	418
Interest cost	1,893			1,799		100	100	5,678		5,397		300	301
Expected return on plan assets	(2,200		)	(2,191	)	—	—	(6,600	)	(6,573	)	—	—
Actuarial loss amortization	1,141			451		3	—	3,422		1,353		9	—
Prior service cost amortization	139			139		14	14	417		417		42	42
Transition obligation amortization	1			1		—	—	4		3		—	—
Total	$	3,317		1,974		290	253	9,951		5,923		870	761

During the first nine months of 2012, we contributed $15.0 million to the Pension Plan.  We do not expect to make additional contributions for the remainder of 2012.