Retirement Benefits

3 Months Ended

Sep. 30, 2012

Retirement Benefits [Abstract]

Retirement Benefits

4. RETIREMENT BENEFITS

Pension Benefits

The Company has two non-contributory defined benefit pension plans: the employee pension plan and the agent pension plan. The employee pension plan is for all eligible employees of the Company, and the agent pension plan is for former field employees and agents. The defined benefit pension plans provide benefits based on years of service and final average pay. Both plans are sponsored by Standard and administered by Standard Retirement Services and are closed to new participants. Participation in the defined benefit pension plans is generally limited to eligible employees whose date of employment began before 2003.

Under the employee pension plan, a participant is entitled to a normal retirement benefit once the participant reaches age 65. A participant can also receive a normal, unreduced retirement benefit once the sum of his or her age plus years of service is at least 90.

The Company recognizes the funded status of the pension plans as an asset or liability on the balance sheet. The funded status is measured as the difference between the fair value of the plan assets and the projected benefit obligation as of the year-end balance sheet date. While the Company is not obligated to make any contributions to its pension plans for 2012, it does evaluate the funding status of these plans annually in the fourth quarter.

The following table sets forth the components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for pension benefits:

						Three Months Ended				Nine Months Ended
						September 30,				September 30,
						2012		2011		2012		2011
						(In millions)
Components of net periodic benefit cost:
		Service cost				$	2.5	$	2.4	$	7.4	$	7.4
		Interest cost					4.1		4.5		12.4		13.6
		Expected return on plan assets					(6.6)		(5.6)		(19.9)		(16.8)
		Amortization of prior service cost					0.2		0.2		0.5		0.5
		Amortization of net actuarial loss					2.1		1.0		6.5		2.9
			Net periodic benefit cost				2.3		2.5		6.9		7.6
Other changes in plan assets and benefit obligation recognized
	in other comprehensive income:
		Amortization of prior service cost					(0.2)		(0.2)		(0.5)		(0.5)
		Amortization of net actuarial loss					(2.1)		(1.0)		(6.5)		(2.9)
			Total recognized in other comprehensive income				(2.3)		(1.2)		(7.0)		(3.4)
				Total recognized in net periodic benefit cost and other
					comprehensive income	$	0.0	$	1.3	$	(0.1)	$	4.2

Postretirement Benefits Other Than Pensions

Standard sponsors and administers a postretirement benefit plan that includes medical and prescription drug benefits.A group term life insurance benefit was curtailed as of December 31, 2011. Eligible retirees are required to contribute specified amounts for medical and prescription drug benefits that are determined periodically and are based on retirees' length of service and age at retirement. Participation in the postretirement benefit plan is limited to employees who had reached the age of 40, or whose combined age and length of service was equal to or greater than 45 years as of January 1, 2006. This plan is closed to new participants.

The Company recognizes the funded status of the postretirement benefit plan as an asset or liability on the balance sheet. The funded status is measured as the difference between the fair value of the plan assets and the accumulated benefit obligation.

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income for postretirement benefits:

						Three Months Ended				Nine Months Ended
						September 30,				September 30,
						2012		2011		2012		2011
						(In millions)
Components of net periodic benefit cost:
		Service cost				$	0.3	$	0.4	$	0.7	$	0.8
		Interest cost					0.4		0.6		1.3		1.6
		Expected return on plan assets					(0.2)		(0.2)		(0.6)		(0.6)
		Amortization of prior service credit					(0.1)		(0.1)		(0.3)		(0.2)
			Net periodic benefit cost				0.4		0.7		1.1		1.6
Other changes in plan assets and benefit obligation recognized in
	other comprehensive income:
		Net gain					0.0		0.0		(0.7)		(2.3)
		Amortization of prior service cost					0.1		0.1		0.3		0.2
			Total recognized in other comprehensive income				0.1		0.1		(0.4)		(2.1)
				Total recognized in net periodic benefit cost
					and other comprehensive income	$	0.5	$	0.8	$	0.7	$	(0.5)

Deferred Compensation Plans

Eligible employees are covered by a qualified deferred compensation plan sponsored by Standard under which a portion of the employee contribution is matched. Employees not eligible for the employee pension plan are eligible for an additional non-elective employer contribution. Contributions to the planwere $2.5 million and $2.4 million for the third quarters of2012 and 2011, respectively,and $7.9 million and $8.2 million for the first nine months of2012 and 2011, respectively.

Eligible executive officers, directors, agents and group producers may participate in one of several non-qualified deferred compensation plans under which a portion of the deferred compensation for participating executive officers, agents and group producers is matched. The liability for the plans was $10.4 million atSeptember 30,2012 and$10.7million at December 31, 2011.

Non-Qualified Supplemental Retirement Plan

Eligible executive officers are covered by a non-qualified supplemental retirement plan(“non-qualified plan”). Under the non-qualified plan, a participant is entitled to a normal retirement benefit once the participant reaches age 65. A participant can also receive a normal, unreduced retirement benefit once the sum of his or her age plus years of service is at least 90.The Company recognizes the unfunded status of the non-qualified plan in other liabilities on the balance sheet. The unfunded status was $28.9 million and $28.5 million at September 30,2012and December 31, 2011, respectively. Expenses were $0.6 million and $0.7millionforthe third quarters of2012 and 2011, respectively, and were $1.9million and $2.1 millionfor the first nine months of2012 and 2011, respectively. The net loss and prior service cost, net of tax, excluded from the net periodic benefit cost and reported as a component of accumulated other comprehensive income was$5.3 million and $5.7 million at September 30,2012 and December 31, 2011, respectively.