Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2015

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

Pension and Other Postretirement Benefits

PENSION AND OTHER POSTRETIREMENT BENEFITS

We have a noncontributory defined benefit pension plan covering substantially all employees after the completion of one year of service and 1,000 hours of service.  The plan provides retirement benefits based on an employee’s average earnings and years of service.  Employees become 100% vested after three years of service, regardless of age.  A supplemental benefit plan provides nonqualified benefits for compensation in excess of the IRS compensation limits applicable to the plan. In December 2014, we amended the pension plan, effective July 1, 2015, to exclude employees hired or rehired on or after July 1, 2015 from participation. Active participants in the plan will continue to accrue benefits.

Our plan funding policy is to make contributions provided that the total annual contributions will not be less than ERISA and the Pension Protection Act of 2006 minimums or greater than the maximum tax-deductible amount, to review the contribution and funding strategy on a regular basis, and to allow discretionary contributions to be made by us from time to time.  The assets of the defined benefit pension plan are invested primarily in fixed income investments and equity securities. We pay nonqualified pension benefits when they are due according to the terms of the supplemental benefit plan.

We provide certain postretirement health care and life insurance benefits to retired employees. Substantially all of our employees hired or rehired prior to 2014 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. Medical benefits are self-insured and claims are paid through an insurance company. The cost of coverage is determined based on the annual projected plan costs. The participant's premium or cost is determined based on Company guidelines. Postretirement life insurance benefits are insured through an insurance company. We fund postretirement benefits as incurred, and accordingly, there were no assets held in the postretirement benefits plan at March 31, 2015 and December 31, 2014.

The net periodic benefit cost for the three months ended March 31, 2015 and 2014 included the following components: 

	Pension Benefits						Postretirement Benefits
	Three Months Ended   March 31,						Three Months Ended   March 31,
Components of Net Periodic Benefit Cost	2015			2014			2015			2014
Service cost	$	6,500		$	5,597		$	675		$	625
Interest cost	6,350			6,799			750			825
Expected return on plan assets	(7,025		)	(6,675		)	—			—
Amortization of:
Net actuarial loss	4,924			4,534			251			275
Prior service cost (gain)	113			246			(545		)	(550		)
Settlement loss	—			789			—			—
Net periodic benefit cost	$	10,862		$	11,290		$	1,131		$	1,175

A settlement loss that resulted from lump sum pension distributions was recorded during the three months ended March 31, 2014.

We made qualified and nonqualified pension contributions totaling $11,532 and $12,860, during the three-month periods ended March 31, 2015 and 2014, respectively. Additional contributions totaling $30,005 are expected to be paid during the remainder of 2015.