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Pension plan and 401(k) Program
 6 Months Ended
Jun. 30, 2019
Retirement Benefits [Abstract]  
Pension plan and 401(k) Program Pension plan and 401(k) Program

Akorn AG Pension Plan
The Company maintains a pension plan for its employees in Switzerland as required by local law. The pension plan is funded by contributions by both employees and employers, with the sum of the contributions made by the employer required to be at least equal to the sum of the contributions made by employees. The Company contributes the necessary amounts required by local laws and regulations. Plan assets for the pension plan are held in a retirement trust fund with investments primarily in publicly traded securities and assets.

The purpose of this pension plan is to provide pension benefits. Some of the pension funds also provide benefits in case of disability and to the next of kin in case of premature death. Additionally, the pension funds can be used before retirement to buy a principal residence, to start an independent activity, or when leaving Switzerland permanently. If a participant leaves the company, accumulated pension funds are transferred either into a savings account or into the pension fund of a new employer.
The following table sets forth the components of net periodic cost for our pension plan:
Components of net periodic benefit cost
($ in thousands)
 
($ in thousands)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Service cost
$
629

 
$
352

 
$
1,261

 
$
909

Interest cost
61

 
32

 
122

 
83

Expected return on plan assets
(174
)
 
(120
)
 
(349
)
 
(309
)
Amortization of:
 
 
 
 
 
 
 
Prior service (benefit)
(5
)
 
(3
)
 
$
(10
)
 
(8
)
Net actuarial loss
48

 
—

 
$
97

 
—

Participant contributions
(193
)
 
(106
)
 
$
(387
)
 
(274
)
Net periodic benefit cost
$
366

 
$
155

 
$
734

 
$
401



The Company contributed approximately $0.8 million for the six month period ended June 30, 2019, and expects to contribute a total of approximately $1.6 million to the pension plan in 2019.
Smart Choice! Akorn's 401(k) Program
All U.S. full-time Akorn employees are eligible to participate in the Company’s 401(k) Plan. The Company matches the employee contribution to 50% of the first 6% of an employee's eligible compensation.  Company matching contributions vest 50% after two years of credited service and 100% after three years of credited service. During the three month periods ended June 30, 2019 and 2018, plan-related expenses totaled approximately $0.7 million and $0.8 million, respectively. During the
six month periods ended June 30, 2019 and 2018, plan-related expenses totaled approximately $1.5 million and $1.5 million, respectively. The Company's matching contribution is funded on a current basis.