COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS:

Components of net periodic costs (benefits) for the three and six months ended June 30 are as follows:



	Pension Benefits												Other Post-Employment Benefits
	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
	2014			2013			2014			2013			2014			2013			2014			2013
Service cost	$	4,483		$	5,581		$	8,791		$	11,287		$	2,331		$	4,849		$	4,663		$	9,698
Interest cost	8,993			8,909			18,144			17,752			12,097			29,619			24,194			59,237
Expected return on plan assets	(12,765		)	(12,711		)	(25,512		)	(24,855		)	—			—			—			—
Amortization of prior service credits	(346		)	(407		)	(692		)	(815		)	(2,196		)	(7,804		)	(4,392		)	(15,608		)
Recognized net actuarial loss	6,106			10,547			11,997			22,722			6,369			17,595			12,737			35,190
Settlement loss	20,707			5,087			20,707			32,202			—			—			—			—
Net periodic benefit cost	$	27,178		$	17,006		$	33,435		$	58,293		$	18,601		$	44,259		$	37,202		$	88,517

Expenses attributable to discontinued operations included in net periodic cost above were $2,517 and $5,380 for the three and six months ended June 30, 2013, respectively, for the Pension Plans; and were $25,504 and $50,898 for the three and six months ended June 30, 2013, respectively, for the Other Post-Employment Benefit Plan.

For the six months ended June 30, 2014, $16,387 was paid to the pension trust from operating cash flows. Currently, depending upon asset values and asset returns held in the trust, we expect to contribute an additional $9,000 to the pension trust in 2014. Net periodic benefit costs are allocated to Exploration and Production Costs, Direct Administrative and Selling Expenses and Coal Costs, Operating and Other Costs in the Consolidated Statements of Income.

According to the Defined Benefit Plans Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification, if the lump sum distributions made during a plan year, which for CONSOL Energy is January 1 to December 31, exceed the total of the projected service cost and interest cost for the plan year, settlement accounting is required. Lump sum payments exceeded this threshold during the three and six months ended June 30, 2014. Accordingly, CONSOL Energy recognized settlement expense of $20,707 for the three and six months ended June 30, 2014 in Other Costs - Miscellaneous Operating Expense in the Consolidated Statements of Income. The settlement charges represented a pro rata portion of the net unrecognized loss based on the percentage reduction in the projected benefit obligation due to the lump sum payments. The settlement accounting was triggered in May 2014, resulting in a remeasurement at May 31. Additional lump sum distributions during June 2014 resulted in another remeasurement at June 30, 2014. The May 31 and June 30, 2014 remeasurements used a discount rate of 4.26% at May 31 and June 30, 2014, a decrease from 4.87% used at December 31, 2013. The May remeasurement increased the pension liability by $41,527. The May settlement and corresponding remeasurement of the pension plan resulted in a decrease of $14,193 in Other Comprehensive Income, net of $8,276 in deferred taxes. The June remeasurement decreased the pension liability by $6,490. The June settlement and corresponding remeasurement of the pension plan resulted in an increase of $5,141 in Other Comprehensive Income, net of $2,998 in deferred taxes. If CONSOL Energy incurs additional lump sum distributions from the plan in 2014, additional settlement charges will be recorded.

Lump sum payments also exceeded the settlement threshold during the three and six months ended June 30, 2013. Accordingly, CONSOL Energy recognized settlement expense of $5,087 and $32,202 for the three and six months ended June 30, 2013, respectively, in Other Costs - Miscellaneous Operating Expense in the Consolidated Statements of Income. The settlement charges represented a pro rata portion of the net unrecognized loss based on the percentage reduction in the projected benefit obligation due to the lump sum payments. The 2013 settlement charges also resulted in a remeasurement of the pension plan at June 30 and March 31, 2013. The June 30, 2013 remeasurement resulted in a change to the discount rate to 4.84% from 4.12% at March 31, 2013. The June remeasurement reduced the pension liability by $48,957. The June settlement and corresponding remeasurement of the pension plan resulted in an increase of $33,414 in Other Comprehensive Income, net of $20,630 in deferred taxes. The March 31, 2013 remeasurement resulted in a change to the discount rate to 4.12% from 4.00% at December 31, 2012. The March remeasurement reduced the pension liability by $29,916. The March settlement and corresponding remeasurement of the pension plan resulted in an increase of $35,261 in Other Comprehensive Income, net of $21,770 in deferred taxes.

CONSOL Energy does not expect to contribute to the other post-employment benefits plan in 2014. We intend to pay benefit claims as they become due. For the six months ended June 30, 2014, $29,915 of other post-employment benefits have been paid.