Pensions

Components of net periodic pension benefit cost are as follows:



	Three months ended				Six months ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
	$’000		$’000		$’000		$’000

Service cost	—		—		—		—
Interest cost on projected benefit obligation	246		279		489		554
Expected return on assets	(259	)	(291	)	(514	)	(578	)
Net amortization and deferrals	187		140		372		279

Net periodic benefit cost	174		128		347		255

From January 1, 2003, a number of non-U.S. Belmond employees participated in a funded defined benefit pension plan in the United Kingdom called the Belmond (UK) Ltd. 2003 Pension Scheme. On May 31, 2006, the plan was closed for future benefit accruals.

A U.K. subsidiary of Belmond is obligated to the plan’s trust to pay £1,272,000 (equivalent to $2,000,000 at June 30, 2015) annually until the plan is fully funded, which, based on its December 2012 actuarial assessment, is projected to occur in 2017. During the three and six months ended June 30, 2015, contributions of $483,000 (June 30, 2014 - $540,000) and $963,000 (June 30, 2014 - $1,077,000), respectively, were made to the pension plan and Belmond anticipates contributing an additional $1,037,000 to fund the plan in 2015 for a total of $2,000,000.

Once the plan is fully funded, the U.K. subsidiary will remain obligated to restore the plan to a fully funded balance should its position deteriorate. In May 2014, Belmond guaranteed the payment obligations of the U.K. subsidiary through 2023, subject to a cap of £8,200,000 (equivalent to $12,895,000 at June 30, 2015), which reduces commensurately with every payment made to the plan since December 31, 2012.