9. EMPLOYEE BENEFITS

The components of net periodic pension cost associated with the defined benefit pension plans include the following (dollars in thousands):



	For the Three		For the Three
	Months Ended		Months Ended
Pension Benefits	March 30, 2014		March 31, 2013
Net periodic benefit cost
Service cost	$	1,232	$	1,299
Interest cost		5,106		4,618
Expected return on plan assets		(5,834)		(6,029)
Amortization of prior service cost		122		122
Net periodic benefit cost	$	626	$	10

The Company expects to contribute approximately $18.0 million to its funded pension plan in 2014. The Company contributed $6.6 million to the plan during the first three months of 2014.

Certain of the Company’s hourly employees participated in a multi-employer defined benefit plan, the Pace Industry Union-Management Pension Plan (EIN #11-6166763). Participants in this plan included the West Carrollton, Ohio represented manufacturing employees, where the collective bargaining agreement expired April 1, 2012. Participants also included the represented employees at the Kansas City, Kansas distribution center, where the collective bargaining agreement expired December 31, 2011. As a result of labor contracts ratified in June 2012 and September 2012, by the bargaining employees in Kansas City and West Carrollton, respectively, both groups elected to end their participation in this multi-employer plan and instead participate in the defined benefit pension plan sponsored by the Company. This resulted in a full withdrawal from the multi-employer plan, for which, the Company recorded a $7.0 million expense in third quarter 2012 representing its estimated cost to satisfy its complete withdrawal liability under the terms of the plan’s trust agreement. This was in addition to the $18.0 million partial withdrawal liability recorded as a restructuring reserve during first quarter 2012 due to the workforce reduction at West Carrollton resulting from the cessation of papermaking activities. Payments of $0.5 million were made during first quarter 2014, resulting in interest expense of $0.3 million and a $0.2 million reduction of the reserve. Of the total $24.8 million reserve, $0.8 million is classified as short-term and $24.0 million is classified as long-term within the Condensed Consolidated Balance Sheet as of March 30, 2014. The estimated obligation for the complete withdrawal liability was derived from available information, including but not limited to collective bargaining agreements, plan trust agreements, participation agreements, ERISA statutes, regulations and rulings, discussions with the plan trustee, and discussions with legal counsel. The recorded liability is the Company’s best estimate of the amount to satisfy the withdrawal liability, with a payment period that began January 2014 and could extend for up to 20 years, discounted in accordance with ASC Section 450-20-S99-1.