Pensions and Other Benefits

6 Months Ended

Jun. 30, 2012

Pensions and Other Benefits [Abstract]

Pensions and Other Benefits

Note 9 — Pensions and Other Benefits

Net periodic benefit expense for the Company’s defined benefit pension plan and combined supplemental executive retirement plans (“SERPs”) includes the following components:

	Three Months Ended June 30,						Six Months Ended June 30,
(Amounts in thousands)	2012			2011			2012			2011
Interest cost	$	2,639		$	2,841		$	5,278		$	5,682
Expected return on plan assets		(1,968	)		(2,056	)		(3,937	)		(4,111	)
Amortization of prior service cost		7			7			14			14
Recognized net actuarial loss		1,470			1,572			2,940			3,144
Net periodic benefit expense	$	2,148		$	2,364		$	4,295		$	4,729

Benefits paid through the defined benefit pension plan were $2.3 million and $4.7 million for the three and six months ended June 30, 2012, respectively, and $2.3 million and $4.5 million for the three and six months ended June 30, 2011, respectively. The Company made contributions to the defined benefit pension plan of $2.0 million and $3.4 million during the three months and six months ended June 30, 2012, respectively, and $1.4 million and $2.3 million for the three and six months ended June 30, 2011, respectively. Benefits paid through, and contributions made to, the combined SERPs were $0.7 million and $1.6 million for the three and six months ended June 30, 2012, respectively, and $0.8 million and $1.9 million for the three and six months ended June 30, 2011, respectively.

Following is a summary of the net actuarial loss and prior service costs for the defined benefit pension plan and combined SERPs that the Company amortized from “Accumulated other comprehensive (loss) income” into “Net periodic benefit expense”:

	Three Months Ended June 30,						Six Months Ended June 30,
(Amounts in thousands)	2012			2011			2012			2011
Net actuarial loss	$	1,470		$	1,572		$	2,940		$	3,144
Tax benefit on net actuarial loss		(559	)		(597	)		(1,117	)		(1,195	)
Prior service costs		7			7			14			14
Tax benefit on prior service costs		(3	)		(2	)		(6	)		(5	)
Net amortization from accumulated other comprehensive income	$	915		$	980		$	1,831		$	1,958

Net periodic benefit expense for the Company’s postretirement benefit plans includes the following components:

	Three Months Ended June 30,						Six Months Ended June 30,
(Amounts in thousands)	2012			2011			2012			2011
Interest cost	$	24		$	13		$	48		$	26
Amortization of prior service credit		(157	)		(156	)		(313	)		(313	)
Recognized net actuarial loss		97			61			195			122
Net periodic benefit expense	$	(36	)	$	(82	)	$	(70	)	$	(165	)

Benefits paid through, and contributions made to, the postretirement benefit plans were $0.1 million for both the three and six months ended June 30, 2012, respectively, and $0.1 million for both the three and six months ended June 30, 2011, respectively.

Following is a summary of the net actuarial loss and prior service credit for the postretirement benefit plans that the Company amortized from “Accumulated other comprehensive loss” into “Net periodic benefit expense”:

	Three Months Ended June 30,						Six Months Ended June 30,
(Amounts in thousands)	2012			2011			2012			2011
Net actuarial loss	$	97		$	61		$	195		$	122
Tax benefit on net actuarial loss		(37	)		(24	)		(74	)		(47	)
Prior service costs		(157	)		(156	)		(313	)		(313	)
Tax expense on prior service costs		60			59			119			119
Net amortization from accumulated other comprehensive income	$	(37	)	$	(60	)	$	(73	)	$	(119	)

Contribution expense for the 401(k) defined contribution plan was $1.0 million and $1.8 million for the three and six months ended June 30, 2012, respectively, compared to $0.9 million and $1.7 million for the three and six months ended June 30, 2011, respectively.

International Benefit Plans — The Company’s international subsidiaries have certain defined contribution benefit plans. Contributions expense related to international plans was $0.3 million and $0.7 million for the three months and six months ended June 30, 2012, respectively, and $0.3 million and $0.6 million for the three and six months ended June 30, 2011, respectively.

Deferred Compensation Plans — The deferred compensation plans are unfunded and unsecured, and the Company is not required to physically segregate any assets in connection with the deferred accounts. The Company has rabbi trusts associated with each deferred compensation plans that are funded through voluntary contributions by the Company. At June 30, 2012 and December 31, 2011, the Company had a liability related to the deferred compensation plans of $2.6 million and $3.4 million, respectively, recorded in the “Accounts payable and other liabilities” line in the Consolidated Balance Sheets. The rabbi trusts had a market value of $8.3 million and $8.1 million at June 30, 2012 and December 31, 2011, respectively, recorded in “Other assets” in the Consolidated Balance Sheets.

In the first quarter of 2011, the MoneyGram International, Inc. Deferred Compensation Plan, a non-qualified, frozen, deferred compensation plan for a select group of management and highly compensated employees, was amended to terminate all employee deferral accounts on the amendment date and pay each participant the balance of their account in a lump sum no earlier than one year from termination and no later than December 31, 2012. In the six months ended June 30, 2012, the Company made $0.5 million in payments and no further payments are due.