Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2011

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

Note 7.  Pension and Other Postretirement Benefits

Pension Plans

Substantially all active employees of the Company’s U.S. operations participate in defined benefit pension plans and/or defined contribution retirement plans. Neenah Germany has defined benefit plans designed to provide a monthly pension upon retirement for substantially all its employees in Germany. In addition, the Company maintains a supplemental retirement contribution plan (the “SERP”) which is a non-qualified defined benefit plan. The Company provides benefits under the SERP to the extent necessary to fulfill the intent of its defined benefit retirement plans without regard to the limitations set by the Internal Revenue Code on qualified defined benefit plans.

The following table presents the components of net periodic benefit cost:

Components of Net Periodic Benefit Cost

	Pension Benefits						Postretirement Benefits Other than Pensions
	Three Months Ended June 30,
	2011			2010			2011		2010
Service cost	$	1.0		$	1.0		$	0.5	$	0.4
Interest cost	3.7			3.5			0.6		0.5
Expected return on plan assets (a)	(3.7		)	(3.4		)	—		—
Recognized net actuarial loss	0.4			0.3			—		—
Amortization of prior service cost	—			0.1			0.1		0.1
Net periodic benefit cost	$	1.4		$	1.5		$	1.2	$	1.0

	Pension Benefits						Postretirement Benefits
	Six Months Ended June 30,
	2011			2010			2011		2010
Service cost	$	2.0		$	2.1		$	0.9	$	0.8
Interest cost	7.3			7.0			1.2		1.1
Expected return on plan assets (a)	(7.5		)	(6.8		)	—		—
Recognized net actuarial loss	0.8			0.6			0.1		—
Amortization of prior service cost	0.1			0.1			0.2		0.2
Net periodic benefit cost	$	2.7		$	3.0		$	2.4	$	2.1

(a)The expected return on plan assets is determined by multiplying the fair value of plan assets at the prior year-end (adjusted for estimated current year cash benefit payments and contributions) by the expected long-term rate of return.

The Company expects to make aggregate contributions to qualified and non-qualified defined benefit pension trusts and pay pension benefits for unfunded pension plans of approximately $19 million (based on exchange rates at June 30, 2011) in calendar 2011.  For the six months ended June 30, 2011, the Company made approximately $11.0 million of such payments.  The Company’s marketable securities will be used for the payment of employee benefits.