Note 13 - Pension and Postretirement Benefits

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Retirement Benefits [Text Block]

The Company maintains a frozen qualified defined benefit pension plan for certain of its employees through membership in the Pension Plan for Insurance Organizations (the “Pension Plan”), a multiple-employer trust. The Company also applies a cash balance formula to determine future benefits. Under the cash balance formula, each participant has an account, which is credited annually based on the interest earned on the previous year-end cash balance. The Company also has a frozen non-qualified supplemental cash balance plan (“SERP”) for certain employees. The SERP is funded from the general assets of the Company. During the first quarter of 2020, the Company changed its investment guidelines on the Pension Plan assets to target investment allocation of 55% to equity securities and 45% to debt securities from its previous target allocation of 60% to equity securities and 40% to debt securities as of December 31, 2019.

The Company also provides certain healthcare and life insurance benefits to certain qualifying active and retired employees. The Postretirement Health and Life Insurance Plan (the “Postretirement Plan”), which has been frozen, is contributory, requiring participants to pay a stated percentage of the premium for coverage. The components of net periodic (benefit) cost for the three and nine months ended September 30, are summarized below:

	Pension Plan and SERP						Postretirement Plan
	For the Three Months Ended September 30,
	2020			2019			2020			2019
Interest cost	$	2.9		$	3.4		$	—		$	—
Expected return on plan assets		(7.9	)		(7.1	)		(0.1	)		—
Amortization of net actuarial loss		1.7			0.7			0.1			0.1
Net periodic (benefit) cost	$	(3.3	)	$	(3.0	)	$	—		$	0.1
Employer contributions, net	$	0.2		$	0.2		$	0.1		$	(0.1	)

	Pension Plan and SERP						Postretirement Plan
	For the Nine Months Ended September 30,
	2020			2019			2020			2019
Interest cost	$	9.8		$	11.8		$	0.1		$	0.2
Expected return on plan assets		(22.3	)		(22.6	)		(0.2	)		(0.1	)
Amortization of prior service cost (credit)		0.1			0.1			(0.1	)		(0.1	)
Amortization of net actuarial loss		4.6			3.5			0.3			0.3
Net periodic (benefit) cost	$	(7.8	)	$	(7.2	)	$	0.1		$	0.3
Employer contributions, net	$	0.6		$	0.6		$	0.9		$	(0.4	)

The expected contributions to the Pension Plan, SERP and Postretirement Plan for the year ending  December 31, 2020 are consistent with the amounts previously disclosed as of December 31, 2019.