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Pension plan and 401(k) Program
 9 Months Ended
Sep. 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
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
Service cost
$
638

 
$
718

 
$
1,900

 
$
1,624

Interest cost
62

 
66

 
183

 
149

Expected return on plan assets
(177
)
 
(244
)
 
(526
)
 
(552
)
Amortization of:
 
 
 
 
 
 
 
Prior service (benefit)
(5
)
 
(6
)
 
$
(14
)
 
(14
)
Net actuarial loss
49

 
—

 
$
146

 
—

Participant contributions
(196
)
 
(217
)
 
$
(584
)
 
(491
)
Net periodic benefit cost
$
371

 
$
317

 
$
1,105

 
$
716



The Company contributed approximately $1.2 million for the nine month period ended September 30, 2019, and expects to contribute a total of approximately $1.7 million to the pension plan in 2019.
Akorn's 401(k) Program
All U.S. full-time Akorn employees are eligible to participate in the Company’s 401(k) plan, the Smart Choice! Akorn Inc. 401(k) Retirement Plan. The Company matches employee contributions 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 September 30, 2019 and 2018, plan-related expenses totaled approximately $0.6 million and $0.6 million, respectively. During the nine month periods ended September 30, 2019 and 2018,
plan-related expenses totaled approximately $2.1 million and $2.0 million, respectively. The Company's matching contribution is funded on a current basis.