13. POSTRETIREMENT PLANS

The following summarizes the company’s balance sheet related pension and other postretirement benefit plan accounts at April 25, 2015 as compared to accounts at January 3, 2015 (amounts in thousands):


	April 25, 2015		January 3, 2015
Current benefit liability	$	1,089	$	1,089
Noncurrent benefit liability	$	87,685	$	93,589
Accumulated other comprehensive loss, net of tax	$	85,869	$	86,612

Defined Benefit Plans and Nonqualified Plan

In September 2014, the company announced a one-time voluntary lump sum offer to approximately 2,500 former employees in Plan No. 1 and 2 who had not yet started monthly payment of their vested benefits. The offer supports the company’s pension risk management strategy and reduced plan obligations by 10%. Distributions of $48.4 million in lump sums from existing plan assets in December 2014 resulted in a settlement charge of $15.4 million for Plan No. 1 only in the fourth quarter of our fiscal 2014. No settlement charge was required for Plan No. 2 as distributions of $2.0 million were not in excess of service costs and interest costs for 2014.

The company used a measurement date of December 31, 2014 for the defined benefit and postretirement benefit plans described below. We believe that the difference in the fair value of plan assets between the measurement date of December 31, 2014 and our fiscal year end date of January 3, 2015 was not material and that for practical purposes the measurement date of December 31, 2014 was used throughout for preparation of our financial statements.

During the sixteen weeks ended April 25, 2015 the company contributed $2.5 million to our qualified pension plans. We expect to contribute an additional $7.5 million during the remainder of fiscal 2015 to our qualified pension plans.

The net periodic pension (benefit) cost, recognized in selling, distribution and administrative expenses, for the company’s plans include the following components (amounts in thousands):


	For the Sixteen Weeks Ended
	April 25, 2015			April 19, 2014
Service cost	$	269		$	197
Interest cost		5,539			6,593
Expected return on plan assets		(9,121	)		(10,405	)
Amortization of net loss		1,532			592

Total net periodic benefit	$	(1,781	)	$	(3,023	)

Post-Retirement Benefit Plan

The company provides certain medical and life insurance benefits for eligible retired employees. The plans incorporate an up-front deductible, coinsurance payments and retiree contributions at various premium levels. Eligibility and maximum period of coverage is based on age and length of service.

The net periodic postretirement benefit (income) cost, recognized in selling, distribution and administrative expenses, for the company includes the following components (amounts in thousands):


	For the Sixteen Weeks Ended
	April 25, 2015			April 19, 2014
Service cost	$	122		$	116
Interest cost		112			137
Amortization of net gain		(180	)		(178	)
Amortization of prior service credit		(144	)		(144	)

Total net periodic benefit	$	(90	)	$	(69	)

401(k) Retirement Savings Plan

The Flowers Foods 401(k) Retirement Savings Plan covers substantially all of the company’s employees who have completed certain service requirements. During the sixteen weeks ended April 25, 2015 and April 19, 2014, the total cost and employer contributions were $8.5 million and $8.4 million, respectively.