EMPLOYEE BENEFIT PLANS

The components of net periodic benefit cost for Energen’s defined benefit non-contributory pension plan and certain nonqualified supplemental pension plans were as follows:



	Three months ended March 31,
(in thousands)	2016		2015
Components of net periodic benefit cost:
Interest cost	$	—	$	204
Actuarial loss	—		184
Settlement charge	3,325		2,662
Net periodic expense	$	3,325	$	3,050

Energen’s non-qualified supplemental retirement plans were terminated effective December 31, 2014. Distributions under the plans were partially made in the first quarter of 2015 with the remainder of approximately $14.5 million paid in the first quarter of 2016. The Company expects to make no additional benefit payments with respect to the termination of the non-qualified supplemental retirement plans. In the first quarter of 2016 and 2015, Energen incurred a settlement charge of $3.3 million and $2.5 million, respectively, for the payment of lump sums from the non-qualified supplemental retirement plans. Also in the first quarter of 2015, Energen incurred settlement charges of $0.2 million for the payment of lump sums from the qualified defined benefit pension plans.

The components of net periodic postretirement benefit expense for Energen’s postretirement benefit plan were as follows:



	Three months ended March 31,
(in thousands)	2016			2015
Components of net periodic benefit cost:
Service cost	$	23		$	98
Interest cost	66			117
Expected long-term return on assets	(111		)	(114		)
Prior service cost amortization	(125		)	—
Settlement charge	45			—
Curtailment gain	(816		)	—
Net periodic (income) expense	$	(918	)	$	101

There are no required contributions to the postretirement benefit plan during 2016. In the three months ended March 31, 2016, Energen incurred a curtailment gain of $0.8 million in connection with the reduction in workforce.