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Employee Benefit Plans
9 Months Ended
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
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
September 30,
Nine months ended
September 30,
(in thousands)
2016
2015
2016
2015
Components of net periodic benefit cost:
 
 
 
 
Interest cost
$

$
204


612

Actuarial loss

184


553

Settlement charge

546

3,325

3,909

Net periodic expense
$

$
934

$
3,325

$
5,074



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 three months ended and nine months ended September 30, 2015, Energen incurred settlement charges of $0.5 million and $1.4 million, respectively, 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
September 30,
Nine months ended
September 30,
(in thousands)
2016
2015
2016
2015
Components of net periodic benefit cost:
 
 
 
 
Service cost
$
24

$
98

$
71

$
294

Interest cost
52

117

170

350

Expected long-term return on assets
(68
)
(114
)
(248
)
(343
)
Prior service cost amortization
(113
)

(351
)

Settlement charge


45


Curtailment gain


(816
)

Net periodic (income) expense
$
(105
)
$
101

$
(1,129
)
$
301



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