Pension and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2012

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

The Company has a noncontributory defined benefit pension plan covering substantially all full-time employees.  The plan provides retirement benefits based on an employee’s average earnings and years of service.  Employees become one hundred percent (100%) vested after three years of service, regardless of age.  The Company’s plan funding policy is to make contributions provided that the total annual contributions will not be less than the Employee Retirement Income Security Act ("ERISA") and the Pension Protection Act of 2006 minimums or greater than the maximum tax-deductible amount, to review contribution and funding strategy on a regular basis, and to allow discretionary contributions to be made by the Company from time to time.  The assets of the defined benefit pension plan are invested primarily in fixed income and equity securities, money market funds, and other investments.

The Company provides certain postretirement health care and life insurance benefits to retired employees. Substantially all of the Company’s employees may become eligible for postretirement medical benefits if they reach the age and service requirements of the retiree medical plan and retire on a service pension under the defined benefit pension plan. Benefits are provided through insurance coverage, with premiums based on the benefits paid during the year. The Company funds postretirement benefits on a pay-as-you-go basis, and accordingly, there were no assets held in the postretirement benefits plan at September 30, 2012 and 2011.

The net periodic benefit cost for the three and nine months ended September 30, 2012 and 2011 included the following components: 

	Pension Benefits						Postretirement Benefits
	Three Months Ended September 30,						Three Months Ended September 30,
Components of Net Periodic Benefit Cost	2012			2011			2012			2011
Service cost	$	5,554		$	4,123		$	584		$	535
Interest cost	6,224			5,671			838			920
Expected return on plan assets	(5,918		)	(5,471		)	—			—
Amortization of:
Net actuarial loss	5,279			3,526			430			493
Prior service cost (gain)	346			352			(546		)	(546		)
Net periodic benefit cost	$	11,485		$	8,201		$	1,306		$	1,402
	Pension Benefits						Postretirement Benefits
	Nine Months Ended September 30,						Nine Months Ended September 30,
Components of Net Periodic Benefit Cost	2012			2011			2012			2011
Service cost	$	16,661		$	12,372		$	1,752		$	1,606
Interest cost	18,672			17,013			2,516			2,759
Expected return on plan assets	(17,753		)	(16,413		)	—			—
Amortization of:
Net actuarial loss	15,837			10,578			1,290			1,478
Prior service cost (gain)	1,036			1,054			(1,636		)	(1,636		)
Net periodic benefit cost	$	34,453		$	24,604		$	3,922		$	4,207

The Company made contributions to its defined benefit pension plan totaling $10,000 during each of the three-month periods ended September 30, 2012 and 2011. Contributions made during the nine-month periods ended September 30, 2012 and 2011 each totaled $30,000. Additional contributions totaling $11,300 are expected to be paid during the remainder of 2012.