7. Employee Benefit Plans

The Company sponsors a defined benefit pension plan, with benefits frozen as of March 1, 2012, and postretirement health and life insurance benefits for union employees. The Company also sponsors a cash balance pension plan for nonunion employees, with benefits frozen as of April 1, 2007, and certain management employees receive postretirement health and life insurance under grandfathered provisions of a formerly active plan.

The following provides the components of benefit costs (income) for the applicable periods (dollars in thousands):

Pension


	Three Months Ended
	March 31,
	2018		2017
Recognized in other income (expense):
Interest cost	$	1,514	$	1,781
Expected asset return		(2,590)		(2,656)
Amortization of loss		95		124
Net periodic benefit income		(981)		(751)
Settlement loss		—		1,956
Total benefit (income) expense	$	(981)	$	1,205

Other Postretirement Benefits


	Three Months Ended
	March 31,
	2018		2017
Recognized in operating expenses:
Service cost	$	179	$	254
Recognized in other income (expense):
Interest cost		485		596
Amortization of gain		(214)		(38)
		271		558
Total benefit expense	$	450	$	812

During the three months ended March 31, 2017, the Company’s pension plans for union employees and management employees paid lump-sum benefits to certain plan participants in full settlement of obligations due amounting to $10.6 million. This resulted in the recognition of a loss on settlement for both pension plans. Because of the settlements, the Company measured its pension plan obligations and plan assets as of March 31, 2017. The Company used discount rates ranging from 3.81% to 3.82% as of March 31, 2017 to measure the pension plan obligations. The new measurements resulted in recognition in other comprehensive income (loss) of a gain of $1.6 million for the three months ended March 31, 2017. For the three months ended March 31, 2018, lump sum benefits paid for the union and management pension plans did not exceed the threshold requiring settlement accounting.

In January 2017, the Company amended the postretirement health benefits plan for management employees by implementing a cap on the amount of the premium subsidy at 2017 levels. This resulted in recognition of a negative plan amendment as of January 31, 2017. Because of the plan amendment, the Company measured its management postretirement benefits obligation as of January 31, 2017 using a discount rate of 4.07%. The new measurement resulted in a retirement plan gain which was recognized in other comprehensive income of $19.7 million for the three months ended March 31, 2017.

The Company previously disclosed in its consolidated financial statements for the year ended December 31, 2017 that it expected to contribute $5.4 million to its pension plan in 2018. For the three months ended March 31, 2018, the Company has made contributions to the plan amounting to $1.1 million. The Company presently expects to contribute the full amount during the remainder of 2018.