Retirement Plans

OneBeacon sponsors qualified and non-qualified, non-contributory, defined benefit pension plans covering substantially all employees who were employed as of December 31, 2001 and former employees who had met the eligibility requirements, as well as retirees. Current plans include the OneBeacon qualified pension plan (the "Qualified Plan") and the OneBeacon non-qualified pension plan (the "Non-qualified Plan") (collectively the "Plans"). OneBeacon's Plans were frozen and curtailed in 2002 and, as a result, the projected benefit obligation is equal to the accumulated benefit obligation.

The benefits for the Plans are based primarily on years of service and employees’ compensation through December 31, 2002. OneBeacon’s funding policy is consistent with the funding requirements of U.S. federal laws and regulations.

The components of net periodic benefit cost for the three months ended March 31, 2014 and 2013 were as follows:



		Three months ended March 31,
		2014			2013
	($ in millions)
Service cost		$	0.1		$	0.2
Interest cost		1.2			1.1
Expected return on plan assets		(2.1		)	(1.8		)
Amortization of unrecognized loss		0.1			0.2
Net periodic pension income before special termination benefits		(0.7		)	(0.3		)
Special termination benefits expense⁽¹⁾		0.3			0.2
Total net periodic benefit income		$	(0.4	)	$	(0.1	)

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⁽¹⁾	Special termination benefits represent additional payments made from the Qualified Plan to certain vested participants when their employment was terminated due to a reduction in force.

OneBeacon does not expect to make a contribution to its Qualified Plan in 2014. OneBeacon anticipates contributing $2.2 million to the Non-qualified Plan in 2014, for which OneBeacon has assets held in a rabbi trust. During the three months ended March 31, 2014, the Company contributed $0.5 million to the Non-qualified Plan.