14. POST-RETIREMENT PLANS

The following summarizes the company’s balance sheet related pension and other post-retirement benefit plan accounts at October 10, 2015 as compared to accounts at January 3, 2015 (amounts in thousands):

	October 10, 2015		January 3, 2015
Current benefit liability	$	1,089	$	1,089
Noncurrent benefit liability	$	75,004	$	93,589
Accumulated other comprehensive loss, net of tax	$	84,755	$	86,612

Defined Benefit Plans and Nonqualified Plan

Beginning on January 1, 2016, the company will provide employees who leave or retire from the company on or after January 1, 2016 and employees who separated from service prior to January 1, 2016, and who have not commenced benefits prior to January 1, 2016, the option to receive their benefit as a single lump sum payment. This offer supports our pension risk management strategy even though plan obligations are not currently reduced.

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 post-retirement 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 forty weeks ended October 10, 2015 the company contributed $10.0 million to our qualified pension plans. We do not anticipate making additional contributions to our qualified pension plans during the remainder of fiscal 2015.

The net periodic pension cost (income) for the company’s plans include the following components (amounts in thousands):

	For the Twelve Weeks Ended						For the Forty Weeks Ended
	October 10, 2015			October 4, 2014			October 10, 2015			October 4, 2014
Service cost	$	201		$	148		$	671		$	493
Interest cost		4,155			4,944			13,849			16,481
Expected return on plan assets		(6,840	)		(7,804	)		(22,801	)		(26,013	)
Amortization of net loss		1,149			444			3,830			1,480
Total net periodic benefit (income) cost	$	(1,335	)	$	(2,268	)	$	(4,451	)	$	(7,559	)

Post-retirement Benefit Plan

The company provides certain medical and life insurance benefits for eligible retired employees covered under the active medical plans. The plan incorporates 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 post-retirement benefit (income) cost for the company includes the following components (amounts in thousands):

	For the Twelve Weeks Ended						For the Forty Weeks Ended
	October 10, 2015			October 4, 2014			October 10, 2015			October 4, 2014
Service cost	$	92		$	87		$	307		$	290
Interest cost		83			103			277			343
Amortization of prior service (credit) cost		(108	)		(108	)		(361	)		(360	)
Amortization of net (gain) loss		(135	)		(133	)		(449	)		(444	)
Total net periodic benefit (income) cost	$	(68	)	$	(51	)	$	(226	)	$	(171	)

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 forty weeks ended October 10, 2015 and October 4, 2014, the total cost and employer contributions were $20.5 million and $20.1 million, respectively.